Amrize Ltd · NYSE:AMRZ
Amrize — H1 2023 Earnings Presentation
30 slides from Amrize's earnings presentation, Jul 27, 2023
Slide 1: H1 2023 Results
Iconic Tower, New Administrative Capital, Egypt ECOPlanet low carbon cement inside with 60% lower CO2 emissions H1 2023 RESULTS JAN JENISCH | CHAIRMAN AND CEO STEFFEN KINDLER | CFO JULY 27, 2023
Slide 2: Highlights and Key Developments
01. HIGHLIGHTS AND KEY DEVELOPMENTS JAN JENISCH | CHAIRMAN AND CEO HSG Learning Center, St. Gallen, Switzerland ECOCycle® inside with 20% recycled construction demolition materials
Slide 3: H1 2023 Highlights: Excellent Performance
H1 2023 HIGHLIGHTS EXCELLENT PERFORMANCE +7.4% organic Net Sales growth Continued expansion in the attractive North +13.4% organic recurring EBIT growth American market Record H1 EPS of CHF 2.19, up 15% Best positioned to capture profitable growth Record Q2 recurring EBIT margin; well on Acceleratin
Slide 4: Record Q2 Recurring EBIT Margin
RECORD Q2 RECURRING EBIT MARGIN WELL ON TRACK TO DELIVER AN INDUSTRY LEADING MARGIN REC. EBIT MARGIN +2.2 pp In % 21.1 20.2 19.2 18.9 17.3 Q2 19 Q2 20 Q2 21 Q2 22 Q2 23 Ellinikon, Europe’s largest urban regeneration project, Athens Riviera 4 Built with ECOPact, low-carbon concrete
Slide 5: H1 2023 Growth Investments: 18 Value Accretive Acquisitions
H1 2023 GROWTH INVESTMENTS 18 VALUE ACCRETIVE ACQUISITIONS IN H1, ACCELERATED M&A EXECUTION SOLUTIONS & PRODUCTS AGGREGATES & READY-MIX ROOFING Duro-Last | USA US Roofing systems Americas Tezak Heavy Pioneer Landscape Equipment | USA Centers | USA AGG AGG Indar | Mexico PASA® | Mexico Roofing & reta
Slide 6: Continued Investments in Profitable Growth
H1 2023 GROWTH INVESTMENTS CONTINUED INVESTMENTS IN PROFITABLE GROWTH H1 2023 total spend (CHF bn) 1.8 1.3 0.5 10 HIGHLY ACCRETIVE BOLT-ON FURTHER EXPANDING OUR SOLUTIONS ACQUISITIONS TO GROW & PRODUCTS PLATFORMS WITH 8 ACQUISITIONS AGGREGATES AND READY-MIX North America Europe Latin America Small
Slide 7: Continued Expansion in the Attractive North American Market
CONTINUED EXPANSION IN THE ATTRACTIVE NORTH AMERICAN MARKET ON TRACK TO REACH ~40% OF GROUP NET SALES IN 2023 Solutions & Products ASIA PROFORMA MIDDLE EAST NET SALES & AFRICA 2023 Cement USD Net Sales ~12 bn 2023E Ready-Mix EUROPE LATIN Aggregates AMERICA 7
Slide 8: Best Positioned to Drive Profitable Growth in North America
CONTINUED EXPANSION IN THE ATTRACTIVE NORTH AMERICAN MARKET BEST POSITIONED TO DRIVE PROFITABLE GROWTH LEADING POSITIONS ACROSS ALL BUSINESS LINES BEST POSITIONED TO DRIVE PROFITABLE GROWTH Holcim targeting new growth #1 #2 opportunities in all business segments IN CEMENT IN COMMERCIAL F L AT R O O
Slide 9: US Expansion in Solutions & Products: Roofing Platform
US EXPANSION IN SOLUTIONS & PRODUCTS LEADING ROOFING GROWTH PLATFORM ESTABLISHED R O O F I N G P L AT F O R M W I T H 3 0 P R O D U C T I O N FAC I L I T I E S AC R O S S T H E U S Excellent market positions I N NORTH AMERICA #2 #5 IN THE US IN THE COMMERCIAL FLAT RESIDENTIAL US ROOFING with ~20% RO
Slide 10: Leading Range of Advanced Roofing Systems
US EXPANSION IN SOLUTIONS & PRODUCTS LEADING RANGE OF ADVANCED ROOFING SYSTEMS LEADING RANGE OF ADVANCED ROOFING SYSTEMS 70% OF SALES in re-roofing 80% OF SALES in systems selling 10
Slide 11: Accelerating Climate Action: CO2 per Net Sales
ACCELERATING CLIMATE ACTION REDUCTION OF CO2 PER NET SALES OF 18% IN H1 2023 CO2 PER MILLION OF NET SALES1 000 tons 5.1 -18% 4.7 3.7 3.0 2020 2021 2022 H1 2023 Essential Homes Research Project by Holcim and the Norman Foster Foundation 11 1 Scope 1 and 2 emissions Sustainable building made possible
Slide 12: Leader in Sustainability: Accelerating Climate Action
LEADER IN SUSTAINABILITY ACCELERATING CLIMATE ACTION CARBON 2ND ELECTRIFICATION CAPTURE CLIMATE OF OUR FLEET PROJECTS Holcim selected REPORT Deploying up to 1’000 electric for 3 additional Accelerating trucks from Volvo by 2030 grants from the EU Climate Action Contributing to reduce Innovation Fund
Slide 13: Grants from the EU Innovation Fund
ACCELERATING CLIMATE ACTION FIRST IN OUR SECTOR WITH 5 GRANTS FROM THE EU INNOVATION FUND E U I N N O VAT I O N F U N D 2 0 2 2 E U I N N O VAT I O N F U N D 2 0 2 3 GRANTS OF EUR 338 M SELECTED FOR 3 ADDITIONAL GRANTS Carbon2Business Go4ECOPlanet GO4ZERO KOdeCO eM-Rhône Lägerdorf, Germany Kujawy, P
Slide 14: Financial Highlights
02. FINANCIAL HIGHLIGHTS STEFFEN KINDLER | CHIEF FINANCIAL OFFICER Eight Gardens, London, UK Built with ECOPact, the low carbon concrete
Slide 15: H1 2023 Net Sales Bridge
H1 2023 NET SALES BRIDGE STRONG ORGANIC NET SALES GROWTH OF 7.4% CHF m +7.4% 14’681 -1’644 +920 -890 13’067 H1 2022 Acquisitions & Divestments Organic Growth FX H1 2023 15
Slide 16: H1 2023 Recurring EBIT Bridge
H1 2023 RECURRING EBIT BRIDGE OVER-PROPORTIONAL ORGANIC RECURRING EBIT GROWTH OF +13.4% CHF m +13.4% 2’173 -154 2’043 -233 +257 H1 2022 Acquisitions & Divestments Organic Growth FX H1 2023 16
Slide 17: H1 2023 Segment Performance
H1 2023 SEGMENT PERFORMANCE STRONG EARNINGS PROFILE WITH BROAD-BASED GROWTH DRIVERS North America Latin America Europe Asia Middle East & Africa Solutions & Products +10.1% +15.8% -13.9% +3,6% +9.5% +23.7% +25.7% +16.4% +32.8% +15.2% -35.7% 3’044 527 1’403 488 3’694 533 2’046 460 2’590 234 NET SALES
Slide 18: North America: Outstanding Performance
NORTH AMERICA OUTSTANDING PERFORMANCE H1 2023 CHF m +15.8% Organic Net Sales1 3’044 +11.4% Recurring +25.7% Organic 527 EBIT +20.0% 1 Net Sales to external customers Excluding Net Sales and recurring EBIT of Solutions & Products Strong demand in both the Significant over-proportional US and Canada o
Slide 19: Latin America: Another Quarter of Profitable Growth
LATIN AMERICA ANOTHER QUARTER OF PROFITABLE GROWTH H1 2023 CHF m +23.7% Organic Net Sales1 1’403 -1.8% Recurring +16.4% Organic 488 EBIT +7.9% 1 Net Sales to external customers Excluding Net Sales and recurring EBIT of Solutions & Products 12th consecutive quarter of Significant improvement in profi
Slide 20: Europe: Strong Increase in Profitability
EUROPE STRONG INCREASE IN PROFITABILITY H1 2023 CHF m +10.1% Organic Net Sales1 3’694 +6.0% Recurring +32.8% Organic 533 EBIT +27.4% 1 Net Sales to external customers Excluding Net Sales and recurring EBIT of Solutions & Products Broad-based increase in 7 bolt-on acquisitions in profitability across
Slide 21: Asia Middle East & Africa: Outstanding Margin Expansion
ASIA MIDDLE EAST & AFRICA OUTSTANDING MARGIN EXPANSION H1 2023 CHF m +9.5% Organic Net Sales1 2’046 -50.7% Recurring +15.2% Organic 460 EBIT -35.1% 1 Net Sales to external customers 2 Contribution from share of net income from JVs: CHF 122 m in H1 2023 vs. CHF 141 m in H1 2022 Excluding Net Sales an
Slide 22: Solutions & Products: Destocking in Roofing Completed
SOLUTIONS & PRODUCTS DESTOCKING IN ROOFING COMPLETED, SOLID H2 OUTLOOK H1 2023 CHF m -13.9% Organic Net Sales1 2’590 -0.2% Recurring -35.7% Organic 234 EBIT -30.4% 1 Net Sales to external customers Net Sales and recurring EBIT of Solutions & Products are not anymore reported within the regions Desto
Slide 23: Solutions & Products: Strong Growth in Roofing Expected in H2
SOLUTIONS & PRODUCTS STRONG GROWTH IN ROOFING EXPECTED IN H2 Elevate - Net Sales Malarkey - Net Sales Solid H2 outlook Strong growth momentum in Q2 Destocking at contractors completed in Q2 Strong residential re-roofing demand Stocking effect Q2 Q3 Q4 Q1 Q2 Destocking 2022 2022 2022 2023 2023 effect
Slide 24: H1 2023 Financial Performance
H1 2023 FINANCIAL PERFORMANCE REPORTED EPS AT CHF 2.19, UP 15% H1 2022 H1 2023 CHANGE CHF m Net Sales 14’681 13’067 -1’614 RECURRING EBIT 2’173 2’043 -130 Restructuring, litigation and others -18 -23 -5 Before impairment & divestments OPERATING PROFIT (EBIT) 2’155 2’020 -135 Profit/loss on disposals
Slide 25: H1 2023 Free Cash Flow
H1 2023 FREE CASH FLOW FREE CASH FLOW ON TRACK TO ACHIEVE GUIDANCE CHF m H1 2022 H1 2023 CHANGE RECURRING EBITDA after leases 3’107 2’839 -269 Right-of-use assets 182 173 -9 Change in net working capital -1’561 -1’459 102 Income taxes paid -378 -345 33 Net financial expenses paid & FX -225 -256 -31
Slide 26: Outlook and Guidance 2023
03. OUTLOOK AND GUIDANCE 2023 JAN JENISCH | CHAIRMAN AND CEO Boston University, Boston, USA Built with ECOPact, the low carbon concrete
Slide 27: Continued Profitable Growth, Guidance Confirmed
OUTLOOK AND GUIDANCE 2023 CONTINUED PROFITABLE GROWTH, GUIDANCE CONFIRMED Organic Net Sales growth above 6% Organic recurring EBIT growth above 10% Industry leading recurring EBIT margin above 16% Free Cash Flow of around CHF 3 bn Reduction of CO2 per Net Sales above 10% Seven Gardens Oak House quar
Slide 28: Upcoming Events
UPCOMING EVENTS JULY 27, 2023 Half Year 2023 Results SEPTEMBER 21, 2023 US Roofing Day OCTOBER 27, 2023 Q3 2023 Trading Update NOVEMBER 7, 2023 Europe Decarbonization Day FEBRUARY 28, 2024 Full Year 2023 Results APRIL 25, 2024 Q1 2024 Trading Update 28
Slide 29: Disclaimer
DISCLAIMER By accessing this presentation (and the information contained herein), you agree to be bound by and liable for breach of the following terms and conditions: The presentation (and the information contained herein) is provided to you by Holcim Ltd (“Holcim”) or any of its subsidiaries or af
Slide 30: Holcim
HOLCIM