Holcim Ltd · SIX:HOLN
Holcim — LafargeHolcim — Investor Day (2016)
7 slides from Holcim's investor day presentation, 2016
Slide 1: Capital Markets Day 2016 – Nigeria example
Capital Markets Day 2016 Nigeria example Saâd Sebbar, Middle-East & Africa © LafargeHolcim Ltd 2015
Slide 2: Nigeria, a country with huge potential
Nigeria, a country with huge potential • Largest economy in Africa with GDP of $510B* • GDP growth of ~4% p.a. from 2018 onward • Diversified economy with only ~10% of the GDP from Oil & Gas sector • 180M inhabitants, ~+5M inhabitants per year • 40% of the population below 14 years old • Low public
Slide 3: LH holds strong positions in Nigeria in 3 core markets
LH holds strong positions in Nigeria in 3 core markets Demand of 21.4Mt in 2015, expected to Ashaka increase up to 22.5Mt in 2016 Estimated market share of ~30% in 2015 LH ~9.3Mt cement capacity in 2015 Sagamu Edo Ewekoro Calabar The new Calabar line brings an incremental 2.5 Mt capacity end 2016 LH
Slide 4: LH Nigeria declining performance in 2016
LH Nigeria declining performance in 2016 Business challenges in first 9M 2016 Impact on business performance 1. Cement price decrease of ~40-50USD/t in S1 2016 vs. 2015 peak • Significant topline and margin drop 2. Gas & explosives supply shortages • Strong increase in energy costs 3. Naira devaluat
Slide 5: Turnaround plan in place and already delivering results: Top line improvement
Turnaround plan in place and already delivering results Top line improvement Key initiatives & objectives Results already obtained Commercial transformation actions • Price increase of 63% in Naira vs. last • Pricing Academy and Sales Excellence lowest price level in March 2016 • Retail initiatives
Slide 6: Turnaround plan in place and already delivering results: Operations optimization
Turnaround plan in place and already delivering results Operations optimization Key initiatives & objectives Results already obtained • Sustainable industrial performance (dedicated • Good industrial performance since assistance and strong training programs) August … • Fuel flexibility plan - 50% ga
Slide 7: Nigeria Summary: Agility to drive results in a challenging environment
Nigeria Summary Agility to drive results in a challenging environment • Nigeria market potential remains among the world most promising … • …where LH can leverage its current strong footprint and capacity • However, LH Nigeria has experienced a difficult environment in 2016 … • But the turnaround pl