Holcim Ltd · SIX:HOLN
Holcim — LafargeHolcim — Investor Day (2016)
9 slides from Holcim's investor day presentation, 2016
Slide 1: Capital Markets Day 2016 - India Update
Capital Markets Day 2016 India Update Martin Kriegner, India and South East Asia © LafargeHolcim Ltd 2015
Slide 2: India – Overview
India – Overview ACC LTM 2016 ACL Net sales (mCHF) 2993 Darlaghat / Rauri Operating EBITDA (mCHF) 521 Asian Gagal Ropar Ro Nalagarh Cement volume sold (mt) 46 Bathinda Bathpa Roorkee inda r Dadri RMX volume sold (mm3) 2 Tikaria Cement capacity (mt) 67 Rabriyawas Lakheri Tik P Lak ari Sindri FTE # (Y
Slide 3: Situation beginning of 2016
Situation beginning of 2016 • Collapse in Pricing towards the end of 2015 • Potential to strengthen pricing management and marketing excellence • Opportunity to benefit from decreasing fuel cost and other cost saving initiatives © 2016 LafargeHolcim 3
Slide 4: Turnaround 2016: Overall, CHF 38m op EBITDA improvement over 2015 YTD
Turnaround 2016 : Overall, CHF 38m op EBITDA improvement over 2015 YTD Operating EBITDA, CHF Million • Focus on Price & Margin Management • Sales and Branding Excellence • Tight cost management while driving operational improvement Actual Actual YTD 2015 YTD 2016 © 2016 LafargeHolcim 4
Slide 5: Focus on price & margin management
Focus on price & margin management Monsoon 2015 2016 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec • Reversed falling price trend from March 2016 • Implemented a monsoon strategy to mitigate price erosion during monsoon period › Detailed targets based on monsoon intensity, price elasticity, brand
Slide 6: Differentiation through Sales & Branding Excellence
Differentiation through Sales & Branding Excellence Strong Increased brands with share of high price Premium premium products Sales & Branding Excellence Customer knowledge Sales force centers & CDL1 effectiveness • Sales Force assessment • Skill enhancement program 1) Construction Development Lab ©
Slide 7: Increased Fuel Flexibility has generated CHF 60 m savings
Increased Fuel Flexibility has generated CHF 60 m savings Fuel Mix Fuel Mix Domestic Coal 9M Sep 2015 9M Sep 2016 Imported Coal Petcoke 4% AFR 4% 24% 30% 41% 13% 59% 25% • Usage of petcoke doubled, from 30% to 60% of total fuel mix, Cement Kilns and Captive Power Plants combined • Favorable pricing
Slide 8: Optimization in Raw Material cost delivered CHF 10 m savings YTD
Optimization in Raw Material cost delivered CHF 10 m savings YTD Overall reduction in Clinker Factor led to a saving of CHF 10 million YTD Clinker versus last year Factor • Increased share of sustainable blended cements reduction • Increased addition of Fly Ash and Slag • Fly Ash and Slag cost lower
Slide 9: Outlook
Outlook • Improving Supply demand equation in coming years › Strong demand growth expected following a good monsoon in 2016 coupled with an acceleration in infrastructure spending (Freight corridors, roads, ports) and demographics › Scaling down of creation of new capacities • Well-positioned asse