Heidelberg Materials Ag · XETR:HEI
Heidelberg Materials — HeidelbergCement — Investor Day (July 2014)
22 slides from Heidelberg Materials's investor day presentation, Jul 2, 2014
Slide 1: HeidelbergCement Capital Markets Day: Lehigh Hanson – US Overview
HeidelbergCement Capital Markets Day 02 July 2014 / Cupertino, CA Lehigh Hanson – US Overview Dan Harrington, President & CEO – Lehigh Hanson, Inc. Slide 1 - Capital Markets Day – 02 July 2014
Slide 2: Disclaimer
Disclaimer Unless otherwise indicated, the financial information provided herein has been prepared under International Financial Reporting Standards (IFRS). This presentation contains forward-looking statements and information. Forward-looking statements and information are statements that are not h
Slide 3: Contents
Contents Page 1. Delivering Results 4 2. Cement Market Outlook 7 3. Lehigh Hanson Footprint 13 4. Summary 21 Slide 3 - Capital Markets Day – 02 July 2014
Slide 4: 2012 goals have been achieved
2012 goals have been achieved Strong Foundation Enablers Execution Success Superior Footprint Price Strategy Diverse Products Competitive Costs Vertical Integration Operational Excellence Logistics Optimization Disciplined Management Attractive Reserves Growth Opportunities Add’l accomplis
Slide 5: Market recovery is underway, but exciting years lie ahead
Market recovery is underway, but exciting years lie ahead Historical Results Lost Time Incidents reduced from 99 to 35 North America Revenue Environmental Environmental incidents down M€ Stewardship by 33% CAGR +4% 3,441 3,407 3,033 3,035 2,892 OIBD 11.8% 14.8% 15.6% 16.6% 17.8% Margin 2009 2010 201
Slide 6: Contents
Contents Page 1. Delivering Results 4 2. Cement Market Outlook 7 3. Lehigh Hanson Footprint 13 4. Summary 21 Slide 6 - Capital Markets Day – 02 July 2014
Slide 7: U.S. expecting steady growth
U.S. expecting steady growth Market and Outlook General Economic Factors Total Cement Consumption 123 4 Real GDP 2.9% (million tonnes) 118 Growth 113 104 2 95 2.1% Inflation Historic Peak 86 78 80 0 Rate 71 70 72 10 7.3% Unemployment 5 Rate 0 2005 2010 2012 2014E 2016E 2018E 2012 2014E 2016E 2018E H
Slide 8: Reduced U.S. clinker capacity faces cost pressure
Reduced U.S. clinker capacity faces cost pressure Clinker Capacity M metric tons Texas 11 plants 7 plants TX Only 2/3 NC (?) of plants 106 1 IL (?) restart 6 103 3 5 4 96 0 End 2010 New capacity Perm. Temp. Current New capacity New capacity Restart Estimate 2011-2013 closed closed capacity 2014-2015
Slide 9: U.S. capacity utilization continues to climb
U.S. capacity utilization continues to climb Clinker Capacity Utilization PCA expects utilization rates will exceed 80% on a national basis in 2015 and approach 90% by the following year. Lehigh Hanson outperforms the industry capacity utilization average due to strength of micro- markets, integ
Slide 10: Cement imports key for future growth
Cement imports key for future growth Breakdown of Historical & Projected Cement Supply Total US cement consumption (mt) 128.0 127.3 121.3 117.9 113.8 113.5 114.6 Market Growth 112.8 109.5 109.4 4.3% CAGR 104.2 96.7 94.6 86.0 76.5 79.8 70.6 70.3 70.3 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Slide 11: Broad import capabilities demonstrated in historical years
Broad import capabilities demonstrated in historical years Historical Imports by Origin Seattle Boston San Francisco New York Baltimore Los Angeles Norfolk Jacksonville Miami Port Everglades Corpus Christi Houston Extensive footprint of import facilities draws from global resources Slide 11 - Capita
Slide 12: Contents
Contents Page 1. Delivering Results 4 2. Cement Market Outlook 7 3. Lehigh Hanson Footprint 13 4. Summary 21 Slide 12 - Capital Markets Day – 02 July 2014
Slide 13: Broad footprint with strong integrated positions
Broad footprint with strong integrated positions Lehigh Hanson U.S. Plant Network Rochester 12 Aggregate Sites Aggregates 1 Cement Terminal Hot Mix Asphalt Columbus 8 Ready Mix Concrete Cement Plant 7 Aggregate Sites 6 Hot Mix Asphalt Cement Terminal 1 Cement Terminal 7 Ready Mix Concrete Ready Mixe
Slide 14: Attractive positions in key Texas cities
Attractive positions in key Texas cities Deep-dive: Texas Texas Footprint* Houston Cement Co. Terminal • 1 grey cement plant (JV) • 1 white cement plant (JV) • 5 cement terminals (JV) • 18 aggregates locations • 24 ready-mix concrete locations • 25 stabilized sand locations Texas Lehigh Buda Plant C
Slide 15: New York footprint creates a competitive advantage
New York footprint creates a competitive advantage Deep-dive: New York Glens Falls Plant New York Footprint* • 1 cement plant • 1 grinding plant • 2 rail served cement terminals • 1 water-based cement terminal • 27 aggregates locations • 13 asphalt locations • 13 ready-mix concrete locations Competi
Slide 16: Positive outlook for balanced cement footprint
Positive outlook for balanced cement footprint Cement Production & Distribution Locations Cement Outlook in Key States for HC Cement Consumption CAGR 2008 - ‘2013 - State 2013 2018 California -2% 9% Florida -4% 14% New York -3% 6% Texas 1% 6% Lehigh Hanson can serve virtually all high growth regions
Slide 17: Key import positions in New York and Texas
Key import positions in New York and Texas Deep Dive New York Texas • Rural New York markets served by Glens Falls plant • South Texas plant focusing on oil well and other and Union Bridge specialty cements • Metropolitan New York served by Brooklyn terminal, • Houston is traditionally an import mar
Slide 18: Strong integration of core products with RMC plants
Strong integration of core products with RMC plants Ready-Mix Concrete Network Lehigh Hanson U.S. RMC Sites 2013 NAM RMC Volumes Internal RMC Strategic Alliances Total In addition to Lehigh Hanson’s 106 U.S. ready-mix plants, we supply additional plants across the U.S. through strategic alliances
Slide 19: RMC network is strategically positioned for growth
RMC network is strategically positioned for growth Residential Growth Housing Permits CAGR (‘10-‘18) Total Housing Permits Other States LH RMC Network US Total 15.4% 717 688 610 531 440 382 LH RMC 317 15 States 16.1% 1,137 Network 243 1,084 237 246 954 815 581 670 362 483 327 345 Includes states whe
Slide 20: Contents
Contents Page 1. Delivering Results 4 2. Cement Market Outlook 7 3. Lehigh Hanson Footprint 13 4. Summary 21 Slide 20 - Capital Markets Day – 02 July 2014
Slide 21: Positive results in recent years
Positive results in recent years Lehigh Hanson Achievements Achievements since 2012 Investor Day: Best-in-class financial structure Win in the market Optimize organizational performance Integrated marketing in key micro markets #4 in Aggregates + #3 in Cement = #1 Integrated Producer Sup
Slide 22: Current priorities for Lehigh Hanson
Current priorities for Lehigh Hanson Conclusion Lead with safety Strive for zero accidents, injuries and occupational illnesses Enhance attractive market positions through small bolt-on acquisitions and other strategic initiatives Increase focus on gross margin Maximize operating leverage