Slide 1: Q3 2022 Trading Update: Record Performance, Successful Transformation
Seven Gardens Oak House quarter in Wiesbaden, Germany Built with Dynamax, the ultimate performance concrete Q3 2022 TRADING UPDATE RECORD PERFORMANCE SUCCESSFUL TRANSFORMATION JAN JENISCH | CEO GÉRALDINE PICAUD | CFO OCTOBER 28, 2022
Slide 2: Highlights and Key Developments
01. HIGHLIGHTS AND KEY DEVELOPMENTS JAN JENISCH | CHIEF EXECUTIVE OFFICER The Seattle Spheres, Amazon headquarters Built with ECOPlanet with an 80% lower CO2 footprint
Slide 3: Q3 2022 Highlights
Q3 2022 HIGHLIGHTS CONTINUED RECORD PERFORMANCE, SUCCESSFUL TRANSFORMATION Continued record performance Successful Transformation Record Q3 Net Sales of CHF 8’045 m, +16.3% LFL Geographic Footprint Record Q3 recurring EBIT of CHF 1’551 m, +7.7% LFL Fast expansion in the most attractive North America
Slide 4: Q3 2022 Results: Continued Record Performance
Q3 2022 RESULTS CONTINUED RECORD PERFORMANCE IN Q3 2022 NET SALES RECURRING EBIT CHF bn CHF bn +16.3% +7.7% LFL LFL 8.0 1.53 1.55 7.4 7.3 7.1 1.44 1.42 6.5 1.31 Q3 18 Q3 19 Q3 20 Q3 21 Q3 22 Q3 18 Q3 19 Q3 20 Q3 21 Q3 22 4 2018 pre-IFRS16
Slide 5: Successful Transformation – Portfolio
SUCCESSFUL TRANSFORMATION – PORTFOLIO SOLUTIONS & PRODUCTS ACQUISITIONS, BOLT-ONS & DIVESTMENTS Solutions & Products Aggregates & Ready-Mix Malarkey FAMY USA France / AGG Roofing systems General Beton SES Foam Romania / USA RMX & AGG Roofing & Insulation Transport Stroy Bulgaria / RMX PRB Concrecar
Slide 6: Successful Transformation – Solutions and Products
SUCCESSFUL TRANSFORMATION – SOLUTIONS AND PRODUCTS ATTRACTIVE SEGMENTS WITH ABOVE MARKET GROWTH & PRICING POWER Roofing Continuous growth through sustainability & innovation From commercial flat roofs to residential shingles Growing and resilient demand in repair and refurbishment Insulation Thermal
Slide 7: Solutions & Products Already 25% of Group's Net Sales in 2022
SUCCESSFUL TRANSFORMATION – SOLUTIONS & PRODUCTS ALREADY 25% OF GROUP’S NET SALES IN 2022 NET SALES BY SEGMENT Solutions & Products Solutions & Products Solutions & Products 8% Aggregates 25% 21% 12% Cement 2020 Q3 2022 Pro-forma 60% 20% 2022 Ready-Mix 7 Pro-forma 2022 includes all acquisitions and
Slide 8: Solutions & Products Driving Profitable Growth
SUCCESSFUL TRANSFORMATION – SOLUTIONS & PRODUCTS DRIVING PROFITABLE GROWTH SOLUTIONS & TOTAL CEMENT AGGREGATES READY-MIX PRODUCTS GROUP 9M 2022 CHF m 11’837 2’324 4’307 4’258 22’725 NET SALES 1 +5.0% +5.1% +12.8% +67.6% +14.5% +564 +113 +490 +1’717 +2’883 2’580 467 114 563 3’724 RECURRING EBIT -7.4%
Slide 9: Successful Transformation – Geographic Profile: Net Sales by Region
SUCCESSFUL TRANSFORMATION – GEOGRAPHIC PROFILE FAST EXPANSION IN THE MOST ATTRACTIVE NORTH AMERICAN MARKET NET SALES BY REGION Asia Pacific Asia Pacific North America North America 9% 24% Middle East Africa 25% 9% 40% 10% Pro-forma 2019 Latin America Middle East Africa 2022 11% 10% 30% 32% Latin Ame
Slide 10: Successful Transformation – Geographic Profile: Recurring EBIT
SUCCESSFUL TRANSFORMATION – GEOGRAPHIC PROFILE STRENGTHENED, RESILIENT EARNINGS PROFILE RECURRING EBIT BY REGION Asia Pacific Asia Pacific North America North America 12% 23% Middle East Africa 30% 7% 41% Pro-forma 2019 Latin America 19% 2022 9% 22% Middle East Africa 16% 21% Latin America Europe Eu
Slide 11: Successful Transformation – Sustainability Profile: Accelerating Green Growth
SUCCESSFUL TRANSFORMATION – SUSTAINABILITY PROFILE ACCELERATING GREEN GROWTH ECOPact with significant World-first 1.5°C ISOGARD Insulation double digit Net Sales growth; science-based framework to Successful transition of all insulation board decarbonize our industry launched by production to ISOGAR
Slide 12: 30% Reduction in CO2 per Million of Net Sales in 2022
SUCCESSFUL TRANSFORMATION – SUSTAINABILITY PROFILE 30% REDUCTION IN CO2 PER MILLION OF NET SALES IN 2022 CO2 PER MILLION OF NET SALES -30% 2020 2021 2022 Pro-forma Striatus, first-of-its-kind 3D concrete printed bridge, Venice, Italy 12 Built with Holcim proprietary TectorPrint 3D printing ink
Slide 13: Financial Highlights
02. FINANCIAL HIGHLIGHTS GÉRALDINE GÉRALDINE PICAUD PICAUD | CHIEF| FINANCIAL CHIEF FINANCIAL OFFICEROFFICER Renovation of Gasholders residential development, London, UK Built with Ductal® Ultra High Performance Concrete
Slide 14: Q3 2022 Net Sales Bridge
Q3 2022 NET SALES BRIDGE SIGNIFICANT NET SALES GROWTH OF +16.3% LFL CHF m +10.4% -146 8’045 +226 +303 7’286 +801 -425 +16.3% LFL Q3 2021 Scope LFL LFL Scope FX Q3 2022 Cement, Aggregates, Ready-Mix Concrete Solutions & Products 14
Slide 15: 9M 2022 Net Sales Bridge
9M 2022 NET SALES BRIDGE SIGNIFICANT NET SALES GROWTH OF +14.5% CHF m +14.5% -269 22’725 +1’044 +664 19’842 -554 +2’000 +13.9% LFL 9M 2021 Scope LFL LFL Scope FX 9M 2022 Cement, Aggregates, Ready-Mix Concrete Solutions & Products 15
Slide 16: Q3 2022 Recurring EBIT Bridge
Q3 2022 RECURRING EBIT BRIDGE RECORD RECURRING EBIT, STRONG GROWTH OF +7.7% LFL CHF m +1.2% 1’534 +17 -9 1’551 -101 +10 +2 +11 +117 -31 +7.7% LFL Q3 2021 Scope Volume Price over cost JVs Depreciation Solutions & Solutions & FX Q3 2022 LFL LFL LFL Products LFL Products scope Cement, Aggregates, Ready
Slide 17: 9M 2022 Recurring EBIT Bridge
9M 2022 RECURRING EBIT BRIDGE RECORD RECURRING EBIT, STRONG GROWTH OF +6.5% LFL CHF m +5.9% -20 3’724 3’516 +156 +29 +12 -81 +37 -148 +224 +6.5% LFL 9M 2021 Scope Volume Price over cost JVs Depreciation Solutions & Solutions & FX 9M 2022 LFL LFL LFL Products LFL Products scope Cement, Aggregates, Re
Slide 18: 9M 2022 Regional Performance
9M 2022 REGIONAL PERFORMANCE PROFITABLE GROWTH IN 4 OUT OF 5 REGIONS North America Latin America Europe Middle East Africa Asia Pacific +22.0% +18.1% +12.3% +3.7% +36.5% +3,6% +11.8% +4.8% +10.9% -31.6% +17.8% 7’614 1’480 2’266 726 6’350 830 1’770 291 4’245 666 NET SALES RECURRING EBIT % Total LFL t
Slide 19: North America: Continued Outstanding Performance
NORTH AMERICA CONTINUED OUTSTANDING PERFORMANCE Q3 2022 9M 2022 CHF m 9M 2022 3’200 7’614 Net Sales from Net Sales1 +25.9% LFL +22.0% LFL Solutions & Products +39.7% +44.3% 772 1’480 38% Recurring EBIT +28.4% LFL +36.5% LFL +35.8% +56.1% 1 Net Sales to external customers Strong market demand Strong
Slide 20: Latin America: Continued Strong Performance
LATIN AMERICA CONTINUED STRONG PERFORMANCE Q3 2022 9M 2022 CHF m 802 2’266 Net Sales1 +24.6% LFL +18.1% LFL +18.8% +16.5% 273 726 Recurring EBIT +18.2% LFL +10.9% LFL +14.7% +9.5% 1 Net Sales to external customers Good demand in Argentina, Successful launch of ECOPact Colombia & El Salvador; & ECOPl
Slide 21: Europe: Resilient Performance
EUROPE RESILIENT PERFORMANCE Q3 2022 9M 2022 CHF m 2’127 6’350 Net Sales1 +10.2% LFL +12.3% LFL -1.3% +5.1% 360 830 Recurring EBIT +1.0% LFL +4.8% LFL -13.1% -6.0% 1 Net Sales to external customers Softer volumes in Europe Positive price over cost, ability to offset cost inflation Significant increa
Slide 22: Middle East Africa: Continued Profitable Growth
MIDDLE EAST AFRICA CONTINUED PROFITABLE GROWTH Q3 2022 9M 2022 CHF m 580 1’770 Net Sales1 +6.8% LFL +11.8% LFL -11.2% -2.5% 91 291 Recurring EBIT2 +17.3% LFL +17.8% LFL -10.3% -3.0% 1 Net Sales to external customers 2 Contribution from share of net income from JVs: CHF 33 m in 9M 2022 vs. CHF 50 m i
Slide 23: Asia Pacific: Challenged by High Inflation
ASIA PACIFIC CHALLENGED BY HIGH INFLATION Q3 2022 9M 2022 CHF m 1’147 4’245 Net Sales1 +3.0% LFL +3.7% LFL -18.3% -3.6% 141 666 Recurring EBIT2 -44.8% LFL -31.6% LFL -53.9% -34.7% 1 Net Sales to external customers 2 Contribution from share of net income from JVs: CHF 189 m in 9M 2022 vs. CHF 257 m i
Slide 24: Solutions & Products: Outstanding Profitable Growth
SOLUTIONS & PRODUCTS OUTSTANDING PROFITABLE GROWTH Q3 2022 9M 2022 CHF m 1’670 4’283 Net Sales1 +26.7% LFL +26.0% LFL +46.1% +66.9% 240 563 Recurring EBIT +114.5% LFL +125.7% LFL +138.4% +225.3% 1 Total Net Sales Net Sales & recurring EBIT of Solutions & Products are reported within the regions Cont
Slide 25: Capital Allocation Strategy
CAPITAL ALLOCATION STRATEGY PROFITABLE GROWTH TO CONTINUE, ATTRACTIVE RETURNS USD 7.3 bn of proceeds from divestments to be used to fund: • Up to 40 million shares for a PROFITABLE GROWTH AND CONTINUED M&A maximum amount of CHF 2 bn if 1 Maintaining strict value discipline market conditions allow •
Slide 26: Outlook and Guidance 2022
H1 2021 03. OUTLOOK AND GUIDANCE 2022 JAN JENISCH | CHIEF EXECUTIVE OFFICER JAN JENISCH | CHIEF EXECUTIVE OFFICER JAN JENISCH | CHIEF EXECUTIVE OFFICER Free Waldorf School, Germany Built with Elevate RubberGard EPDM roofing system
Slide 27: Outlook and Guidance 2022: One-Time Effects on Profit and Cash Flow
OUTLOOK AND GUIDANCE 2022 ONE-TIME EFFECTS ON PROFIT AND CASH FLOW Divestments of Brazil and India with significant positive impact (capital gain) on Net Income of more than CHF 1.5 bn Divestments of India and Brazil, leading to a significantly lower debt leverage of around 1x Resolution with the U.
Slide 28: Net Sales and Recurring EBIT Guidance Upgraded
OUTLOOK AND GUIDANCE 2022 NET SALES AND RECURRING EBIT GUIDANCE UPGRADED Net Sales growth guidance upgraded: from at least 10% LFL to at least 12% LFL, Net Sales reaching CHF 29 bn Double digit Net Sales growth in Solutions and Products, guidance upgraded to achieve Net Sales of above CHF 5.5 bn Rec
Slide 29: Upcoming Events
UPCOMING EVENTS FEBRUARY 24, 2023 Full Year 2022 Results APRIL 21, 2023 Q1 2023 Trading Update JULY 27, 2023 Half Year 2023 Results OCTOBER 27, 2023 Q3 2023 Trading Update 29
Slide 30: 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 31: Holcim
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