Slide 1: First Quarter 2017 Results
First Quarter 2017 Results Eric Olsen, CEO and Ron Wirahadiraksa, CFO May 3, 2017 © LafargeHolcim Ltd 2015
Slide 2: Overview of Q1 2017 Results
01 Overview of Q1 2017 Results Eric Olsen, Chief Executive Officer © 2017 LafargeHolcim 2
Slide 3: Good results in Q1
Good results in Q1 Further growth in results LFL net sales up by 5.3% supported by favorable pricing and improved volume momentum in March Operating EBITDA adj. up 14.5% LFL with growth in all regions with the exception of Asia Pacific Further strong Operating EBITDA contribution from Middle
Slide 4: Further earnings growth expected throughout the year
Further earnings growth expected throughout the year Confidence that key countries will deliver growth in Operating EBITDA: • Effective turnaround in Nigeria • Good finish to Q1 in Europe and in the US overall • With volumes up in Q1, demonetization in India behind us at the end of March Commerc
Slide 5: Guidance confirmed for 2017
Guidance confirmed for 2017 Overall global demand expected to increase by 2 to 4% In 2017, we expect to deliver strong growth in Operating EBITDA adjusted and recurring EPS Double-digit LFL growth in Operating EBITDA adjusted over 2016 Significant growth in recurring EPS In 2017, the Group
Slide 6: Regional results and Performance analysis
02 Regional results and Performance analysis Ron Wirahadiraksa, Chief Financial Officer 6
Slide 7: Key financial figures
Key financial figures CHF m Q1 2017 Q1 2016 Like-for-like › Cement volumes notably impacted by China divestment; stable LFL cement volumes supported Volumes by strong end to the quarter Cement (Mt) 48.1 56.6 -15.0% 0.0% › Aggregates LFL volumes up with strong performance Aggregates (Mt) 51.7 51.6 0.
Slide 8: Operating EBITDA adjusted Q1 2017
Operating EBITDA adjusted1) Q1 2017 CHF m +14.5% LFL -215 284 94 -75 -75 -52 876 840 765 801 2) 2) Op. EBITDA adj. Scope LFL Op. EBITDA adj. Volume Price Costs & others Synergies LFL Op. EBITDA adj. FX Op. EBITDA adj. Q1 2016 Q1 2016 Q1 2017 Q1 2017 1) Excluding merger, restructuring and other one-o
Slide 9: Net Sales and Operating EBITDA adjusted by Region – Q1 2017
Net Sales and Operating EBITDA adjusted by Region – Q1 2017 North Net Sales America Operating EBITDA adj. North America 1% Middle East 16% 30% Africa 15% Middle East Asia Africa Asia 31% Pacific 31% Pacific 12% Latin America 26% Latin 26% America 13% Europe Europe CHF m Q1 2017 Q1 2016 Like-for-like
Slide 10: North America
North America Q1 2017 CHF m Sales volumes Q1 2017 Q1 2016 Like-for-like Q1 2016 LFL Net Sales 907 866 4.7% 2.5% 14.4 13.7 Operating EBITDA adj. 8 2 223.9% 242.0% -5% +5% 1) +3% Operating EBITDA adj. margin 0.9% 0.3% 60bp 70bp 3.3 3.4 1.6 1.6 Cash flow from Op activities -217 -234 7.3% 9.3% Capex Net
Slide 11: Europe
Europe Sales volumes Q1 2017 CHF m Q1 2017 Q1 2016 Like-for-like Q1 2016 26.6 25.2 LFL Net Sales 1'481 1'497 -1.1% 4.2% +6% +6% 0% Operating EBITDA adj. 115 117 -1.9% 8.7% Operating EBITDA adj. margin 7.8% 7.8% 0bp 30bp 8.2 7.7 Cash flow from Op activities -210 -134 -56.4% -58.4% 4.0 4.0 Capex Net -
Slide 12: Asia Pacific
Asia Pacific Q1 2017 CHF m Sales volumes Q1 2017 Q1 2016 Like-for-like Q1 2016 LFL Net Sales 1'790 2'148 -16.7% -0.4% 30.1 Operating EBITDA adj. 1) 279 355 -21.6% -13.4% 23.0 +9% -1% Operating EBITDA adj. margin 15.6% 16.5% -100bp -240bp 0% Cash flow from Op activities -127 51 -351.2% -465.9% 7.1 7.
Slide 13: Latin America
Latin America Q1 2017 CHF m Sales volumes Q1 2017 Q1 2016 Like-for-like Q1 2016 LFL Net Sales 693 682 1.6% 3.0% 5.8 6.0 -4% -33% -8% Operating EBITDA adj. 234 210 11.4% 17.7% Operating EBITDA adj. margin 33.8% 30.8% 300bp 440bp 1.1 1.7 1.5 1.7 Cash flow from Op activities -32 14 -328.7% -314.4% Cape
Slide 14: Middle East Africa
Middle East Africa Q1 2017 CHF m Sales volumes Q1 2017 Q1 2016 Like-for-like 10.8 Q1 2016 LFL Net Sales 878 1'049 -16.2% 15.3% 9.1 -4% -9% -9% Operating EBITDA adj. 1) 275 262 5.1% 48.5% Operating EBITDA adj. margin 31.4% 25.0% 640bp 680bp 3.6 Cash flow from Op activities 171 199 -14.0% 35.6% 2.5 1.
Slide 15: Robust delivery on track with 2017 objective
Robust delivery on track with 2017 objective Total synergies realized until Q1 2017 x Q1 2017 CHF m Target run rate 2017 realized synergies Operational 300 26 optimization 200 188 Procurement 12 340 218 SG&A 29 260 Growth & 156 Innovation 200 27 861 Total 94 1’000 Implementation 775 cost 1’100 31 ©
Slide 16: Operating EBITDA to Net Income
Operating EBITDA to Net Income CHF m Q1 2017 Q1 2016 Operating EBITDA 705 790 -10.8% Depreciation & Amortization -549 -547 -0.4% Operating Profit 156 243 -35.8% Other Income 345 2 17150.0% Share of profit of associates 12 4 200.0% Financial Income 37 45 -17.8% Financial Expenses -208 -270 23.0% Net
Slide 17: Operating Free Cash Flow variance Q1 2017 vs. Q1 2016
Operating Free Cash Flow variance Q1 2017 vs. Q1 2016 CHF m -618 -836 -86 -108 35 -60 Q1 2016 Op. EBITDA Change in Operating Net Capex Net Others Q1 2017 Working Capital © 2017 LafargeHolcim 17
Slide 18: Net Financial Debt March 2016 to March 2017
Net Financial Debt March 2016 to March 2017 CHF m -3’226 1) -3'042 1'600 -184 -3'100 2) 661 -103 18'041 1'141 15'014 Q1 2016 CF from operating PPA adjustment Capex Net Disposals Dividends FX Others Q1 2017 activities 1) Includes CHF 90m cash premium paid on bonds buy-back 2) Includes CHF 325m of sha
Slide 19: Financial ratios
Financial ratios Outlook FY Q1 2017 (LTM) Q1 2016 (LTM) 2017 Net financial debt / 2.5 3.2 Improving Op. EBITDA adj. 1) Cash Flow from operating activities / 20.3% 14.2% Improving Net financial debt 1) Operating EBITDA adjusted includes JVs contribution © 2017 LafargeHolcim 19
Slide 20: Outlook and guidance for 2017
Outlook and guidance for 2017 Overall global demand is expected to increase by 2 to 4% In 2017, we expect to deliver strong growth in Operating EBITDA adj. and recurring EPS Double-digit LFL growth in Operating EBITDA adj. over 2016 Recurring EPS growing by more than 20% Targeted net debt
Slide 21: Other elements of guidance for 2017
Other elements of guidance for 2017 Exceeding CHF 1bn synergies target by end 2017 › Incremental synergies of CHF 400 million of operating EBITDA Capex below CHF 1.8bn Increase in energy prices by c.10% 3.2% to 3.4% cost inflation excl. energy Average nominal interest rate on gross debt at
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Slide 23: Appendix
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Slide 24: Cement and Aggregates sales volumes by region
Cement and Aggregates sales volumes by region Cement sales volumes Mt Q1 2017 Q1 2016 Scope Like-for-like Asia Pacific 23.0 30.1 -23.6% -31.0% 0.1% Europe 8.2 7.7 6.3% 0.0% 6.3% Latin America 5.8 6.0 -3.5% 0.0% -3.5% Middle East Africa 9.1 10.8 -16.1% -14.2% -4.1% North America 3.3 3.4 -4.5% 0.0% -4
Slide 25: Net Sales and Operating EBITDA adjusted by region
Net Sales and Operating EBITDA adjusted by region Net Sales CHF m Q1 2017 Q1 2016 Scope FX Like-for-like Asia Pacific 1'790 2'148 -16.7% -20.9% 1.1% -0.4% Europe 1'481 1'497 -1.1% -0.5% -4.9% 4.2% Latin America 693 682 1.6% -0.8% -0.6% 3.0% Middle East Africa 878 1'049 -16.2% -14.2% -19.7% 15.3% Nor
Slide 26: Net Sales and Operating EBITDA adjusted by segment
Net Sales and Operating EBITDA adjusted by segment Cement Aggregates CHF m 2017 2016 2017 2016 Net Sales Q1 Q1 Q1 Q1 Asia Pacific 1'394 1'742 125 114 Europe 645 619 385 396 Latin America 601 582 9 12 Middle East Africa 778 937 26 26 North America 481 465 202 203 Corporate / Eliminations -49 -62 - -
Slide 27: Operating Free Cash Flow
Operating Free Cash Flow CHF m Q1 2017 Q1 2016 Operating EBITDA 705 790 -10.8% Total other non cash items 54 99 -45.5% Change in net working capital -888 -695 -27.8% Share of profit of JVs -29 -16 -81.3% Dividends received 51 22 131.8% Financial expenses paid net -160 -231 30.7% Income taxes paid -2
Slide 28: Net Financial Debt
Net Financial Debt Net Financial Debt (per Mar 31, 2017) Liquidity summary 15’014 284 › Cash + marketable securities: CHF 4’242m › Cash + marketable securities + unused committed 14’730 credit lines: CHF 9’870m Debt summary › Current financial liabilities1: CHF 4’525m Incl. Fair Value adj. Excl. Fai
Slide 29: Maturity profile and cost of debt
Maturity profile and cost of debt Mar. 2017 Dec 31, 2016 CHF mm CHF 4’781 CHF m 4,525 Average Average maturity maturity 3’279 3,229 5.8 y 5.9 y 2,614 2,482 2’286 2,346 2’052 1’979 1’726 1,938 Average 1’590 Average 837 728 cost of 901 534 cost of 433 442 1 150 debt 150 debt 4.6% 2017 2018 2019 2020 2
Slide 30: Condensed Statement of Financial Position
Condensed Statement of Financial Position CHF m Mar 31, 2017 Dec 31, 2016 Mar 31, 2017 Dec 31, 2016 Invested Capital 47’748 46’641 Equity 34’867 34’747 Out of which: Out of which: Goodwill 16’206 16’247 Equity attributable to the LH 30’911 30’822 Prop, Plant & Equipment 32’017 32’052 shareholders In
Slide 31: Net Financial Debt December 2016 to March 2017
Net Financial Debt December 2016 to March 2017 CHF m -490 318 -28 -583 518 187 -121 15'014 14'724 Dec. 2016 CF from operating activities PPA adjustment Capex Net Disposals FX Others Mar. 2017 © 2017 LafargeHolcim 31
Slide 32: Volume and Price development Cement – 3M 2017 vs. 3M 2016
Volume and Price1) development Cement – 3M 2017 vs. 3M 2016 Volume Price & Other Volume Price & Other Volume Price & Other Volume Price & Other Asia Pacific 0.1% 0.0% Latin America -3.5% 8.3% Europe 6.3% 0.6% Middle East Africa -4.1% 17.8% China 4.4% 14.3% Argentina 2) 5.3% #N/A Azerbaijan 9.0% 4.0%
Slide 33: Volume and Price development Aggregates – 3M 2017 vs. 3M 2016
Volume and Price development Aggregates – 3M 2017 vs. 3M 2016 Volum e Price & Other Volum e Price & Other Volum e Price & Other Volum e Price & Other Asia Pacific 9.3% -2.8% Latin America -33.1% 17.7% Europe 5.6% -0.4% Middle East Africa -8.7% 9.6% Australia 11.3% -1.5% Brazil -43.1% -3.6% Belgium 1
Slide 34: 2017 Outlook – Cement Market Overview by Region
2017 Outlook – Cement Market Overview by Region Volumes Highlights Asia Pacific1) 3% to 5% Market growth supported by India post demonetization and the Philippines Europe 0% to 2% Outlook improvement in the region driven by stabilization in most countries in continental Europe. Political uncertainty
Slide 35: 2017 Outlook – Cement Market Overview by Selected Countries
2017 Outlook – Cement Market Overview by Selected Countries Market volumes % Market volumes % Market volumes % Market volumes % Asia Pacific 1) 3 to 5 Latin America 1 to 3 Europe 0 to 2 Middle East Africa 0 to 2 China 2) 0 to 2 Argentina 9 to 11 France 1 to 3 Algeria -1 to +1 India 4 to 6 Brazil 0 t
Slide 36: Contact information and event calendar
Contact information and event calendar Contact information Event calendar Corporate Communications May 8, 2017 Ex date Phone +41 58 858 87 10 Fax +41 58 858 87 19 May 10, 2017 Payment date communications@lafargeholcim.com July 26, 2017 Q2 2017 Results Investor Relations Phone +41 58 858 87 87 invest
Slide 37: Disclaimer
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