Holcim Ltd · SIX:HOLN
Holcim — LafargeHolcim — Investor Day (November 2018)
27 slides from Holcim's investor day presentation, Nov 28, 2018
Slide 1: Delivering Strategy 2022 – Building For Growth
2018 Capital Markets Day Delivering Strategy 2022 – Building For Growth Jan Jenisch, CEO Birmingham, November 28, 2018 © LafargeHolcim Ltd 2015
Slide 2: 2018 Capital Markets Day Agenda and Speakers
2018 Capital Markets Day Delivering Strategy 2022 Agenda Speakers 09:45 The Bardon Hill quarry • Introduction to LafargeHolcim’s UK business Francois Pétry / John Bowater • Site visit 13:00 Lunch, The Belfry Hotel (Birmingham) 13:45 Delivering Strategy 2022 – Building For Growth Jan Jenisch, CEO 14:
Slide 3: Break out sessions
2018 Capital Markets Day Break out sessions Agenda Speakers Shifting Gears to Growth Miljan Gutovic, Head Region Middle East Africa Jamie Gentoso, Head US Cement Close the Gap to best-in-class Performance Jan Hofmann, Head Aggregates Neeraj Akhoury, CEO ACC India Simplification & Performance Marcel
Slide 4: Highlights and Key Developments 2018
2018 Capital Markets Day Delivering Strategy 2022 – Building For Growth 01 Highlights and Key Developments 2018 02 Delivering Strategy 2022 – Building For Growth 03 Key Milestones & Outlook 2019 4
Slide 5: Highlights And Key Developments 2018
Highlights And Key Developments 2018 › Accelerated growth momentum in Q3 with Net Sales up 5.8% LFL › All four business segments contributing › Over proportional increase in Recurring EBITDA of 8.1% LFL in Q3 › CHF 400 million SG&A savings program delivering results ahead of target › Divestment of I
Slide 6: Strategy 2022 – Our four value drivers
Strategy 2022 – Building For Growth Our four value drivers Growth Simplification & Financial Vision Performance Strength & People 6
Slide 7: Strategy 2022 – Our four value drivers
Strategy 2022 – Building For Growth Our four value drivers Growth Simplification & Financial Vision Performance Strength & People 7
Slide 8: Shifting gears to growth – top line & profitability
Strategy 2022 – Building For Growth Shifting gears to growth – top line & profitability › Accelerated growth in Q3 with +5.8% LFL Net Sales › Volume growth and improved pricing drive topline across all business segments › Over proportional increase in EBITDA › Execution of more aggressive market str
Slide 9: Business Segment Cement
Business Segment Cement Strong growth and improving performance › Excellent progress in volume of 5.1% and topline of 6.5% for Q3 2018 › Improving pricing trends › Better capacity utilization › Increasing benefit from alternative fuels and raw materials mitigating rising energy costs › First benefit
Slide 10: Business Segment Aggregates
Business Segment Aggregates Started to close the gap to best-in-class performance › Excellent progress in volume and pricing improving topline by 6.0% in Q3 2018 › Over-proportional growth in EBITDA › P&L leadership and accountability fully established beginning of 2018 › Substantial reserves of qua
Slide 11: Business Segment Ready Mix Concrete
Business Segment Ready Mix Concrete Started to close the gap to best-in-class performance › Excellent progress in volume and pricing driving topline by 3.8% in Q3 2018 › Over-proportional growth in EBITDA › P&L leadership and accountability fully established beginning of 2018 › Continued product and
Slide 12: Business Segment Solutions & Products
Business Segment Solutions & Products Initiate growth plans › Current Solutions & Products segment includes precast, concrete products, asphalt, mortars, contracting & services › Net Sales of CHF 737 million and topline growth of 5.6% in Q3 2018 › Many attractive market segments with high growth pot
Slide 13: Bolt-on Acquisitions
Bolt-on Acquisitions Fast kick start with 4 acquisitions completed in 2018 The Kendall Group Tarrant Concrete Metro Mix Vritz (UK) (Dallas) (Denver) (France) AGG & RMX RMX RMX AGG reserve Fast kick start of bolt-on acquisition strategy 4 companies in highly attractive markets Fast integration
Slide 14: Strategy 2022 – Our four value drivers
Strategy 2022 – Building For Growth Our four value drivers Growth Simplification & Financial Vision Performance Strength & People 14
Slide 15: Simplification & Performance
Simplification & Performance Cost disciplined operating model and corporate light structure Established P&L leadership and accountability for all four business segments Implementation of a simpler and country-focused operating model • Eliminated one layer of management - country focused organization
Slide 16: Strategy 2022 – Our four value drivers
Strategy 2022 – Building For Growth Our four value drivers Growth Simplification & Financial Vision Performance Strength & People 16
Slide 17: Financial Strength
Financial Strength Strengthen balance sheet, accelerate deleveraging › Divestment of Indonesia signed for USD 1.75 billion (100% Enterprise value) › On track for reaching the CHF 2 billion plus divestment target › Accelerate deleveraging, improve debt ratios with the target of 2 times or less Net De
Slide 18: Strategy 2022 – Our four value drivers
Strategy 2022 – Building For Growth Our four value drivers Growth Simplification & Financial Vision Performance Strength & People 18
Slide 19: Vision & People
Vision & People Creating a performance oriented organization › New operating model and leadership team established › Country focused, corporate light operating model in place › Countries empowered and accountable › Performance management culture › New performance management system rolled out globall
Slide 20: One Team. One Strategy.
Strategy 2022 – Building for Growth One Team. One Strategy. North Latin Europe* MEA* CEO* Asia* CFO* Growth & America* America* M. Cobuz M. Gutovic J. Jenisch M. Kriegner G. Picaud Performance* R. Thibault O. Osswald U. Bleisch China Trading Health & Sustainability Communication Digital Legal HR M.
Slide 21: Key Milestones & Outlook 2019
03 Key Milestones & Outlook 2019 21
Slide 22: Guidance and outlook 2018
Strategy 2022 – Building For Growth Guidance and outlook 2018 › Positive momentum expected to continue in Q4 with following underlying market trends › Continued growth in North America › Softer cement demand in Latin America › Strong markets in Europe › Challenging but stabilizing conditions in Midd
Slide 23: Outlook 2019
Strategy 2022 – Building For Growth Outlook 2019 › Solid global market demand expected to continue › Full year targets 2019 › Net Sales growth of 3% to 5% LFL, delivering target of Strategy 2022 › Recurring EBITDA growth of minimum 5% LFL, delivering target of Strategy 2022 › Accelerate deleveraging
Slide 24: Key milestones & initiatives 2019
Strategy 2022 – Building For Growth Key milestones & initiatives 2019 › Complete closure of Paris and Zurich › Continue to close the gap to best-in- offices in Q1 class performance in Aggregates and Ready-Mix Concrete › Complete CHF 400 million savings program in Q1 › Continue bolt-on acquisitions ›
Slide 25: Upcoming Events 2019
Upcoming Events 2019 › March 7, 2019: Full Year 2018 Results › May 15, 2019: Annual General Meeting and Q1 2019 trading update › July 31, 2019: Earnings release half year 2019 › October 25, 2019: Trading update Q3 2019 25
Slide 26: Disclaimer
Disclaimer These materials are being provided to you on a confidential basis, may not be distributed to the press or to any other persons, may not be redistributed or passed on, directly or indirectly, to any person, or published or reproduced, in whole or in part, by any medium or for any purpose.
Slide 27: LafargeHolcim
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