Holcim Ltd · SIX:HOLN
Holcim — LafargeHolcim — Investor Day (November 2018)
12 slides from Holcim's investor day presentation, Nov 28, 2018
Slide 1: Financial Strength
2018 Capital Markets Day Financial Strength Géraldine Picaud, Group CFO Eliana Nieto, CFO Holcim Ecuador © LafargeHolcim Ltd 2015
Slide 2: Financial Strength: Disciplined value creation
Financial Strength Disciplined value creation Returns Balance sheet Realize value Investment Pay shareholders an Committed to Fund growth through Disciplined, targeted attractive dividend maintaining a strong divestment of and value creative balance sheet selected assets investments including bolt o
Slide 3: Disciplined Value Creation: Investment policy
Disciplined Value Creation Investment policy Capex Increased selection of projects based on business plans Short payback New investments with ROIC > 10% Supporting growth Reduction of capex cost per ton Bolt-on Fast kick start of bolt-on acquisition strategy 4 companies in highly a
Slide 4: Disciplined and Value Creative Investment
Disciplined and Value Creative Investment Expansion of Bulacan plant in the Philippines New clinker line with alternative fuel and waste heat recovery system in Bulacan (Philippines) Capacity expansion of 2.4 Mt (3-year construction time) Improved industrial design, costs and fast roll out C
Slide 5: Example of Bolt-on – Metro Mix
Disciplined Value Creation Example of Bolt-on – Metro Mix Founded in 1999, Metro Mix, LLC operates 2 RMX plants, one in the city of Denver and the other in Castle Rock, south of Denver Sales ≈ USD 30million Synergies opportunities allowing above 100% of the stand- alone EBITDA, mainly driven b
Slide 6: Reaching the ROIC target
Disciplined Value Creation Reaching the ROIC target ROIC Levers to improve ROIC: >8% Profitable growth Improvement of operational performance Cost savings and manufacturing performance 5.8% Projects with short payback and 5.2% ROIC >10% CAPEX at optimized cost Bolt-ons with significant s
Slide 7: Cash Conversion: Reaching the target of 40%
Cash Conversion Reaching the target of 40% From Recurring EBITDA to FCF Target 2022 CHF, bn Cash Conversion ~6.0 40% ~1.4 Levers to improve FCF: ~1.8 Active management of Working Capital ~0.9 CAPEX closely monitored ~0.5 ~1.7 Reduce interest through deleveraging and refinancing Cash Conversion
Slide 8: Cash Conversion: Example of Ecuador
Cash Conversion Example of Ecuador From Recurring EBITDA to FCF CHF, bn 12 98 9 3 241 137 Rec EBITDA CAPEX Group charges, NWC Others FCF Fin exp & Income tax 2018 Cash Conversion 57% 8
Slide 9: Example of Ecuador - Strengthen NWC
Cash Conversion Example of Ecuador - Strengthen NWC Recent initiatives Future opportunities Accounts Share risk with the banks, Remittances & credit card 1 Receivable suppliers & end users payments Reduction of days of Consignment & minimum 2 Inventories coverage & strict stocks consumption plan Con
Slide 10: Strong Balance Sheet
Strong Balance Sheet Improve financial leverage, increase divestments Leverage ratio Our Objectives (Net Debt / Rec EBITDA) 2.4x Maintain shareholder remuneration: 2 CHF / share Strong deleverage, achieve 2.0x at the end of 2019* Preserve an investment capacity for strategic acquisitions at th
Slide 11: 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 12: LafargeHolcim
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