Holcim Ltd · SIX:HOLN
Holcim — LafargeHolcim — Investor Day (2018)
16 slides from Holcim's investor day presentation, 2018
Slide 1: Close the Gap to Best-in-class Performance
2018 Capital Markets Day Close the Gap to Best-in-class Performance Jan Hofmann, Head Aggregates Neeraj Akhoury, CEO ACC India © LafargeHolcim Ltd 2015
Slide 2: 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 3: Overview of LH Aggregates
Overview of LH Aggregates A world class aggregates business with leading market positions Aggregate Sales Volume by Region, 2017 Europe ~125 Mt 2017 North America Net Sales 3,916 (CHFm) ~110 Mt EBITDA 759 (CHFm) Volumes 279 (Mt) MEA ~10 Mt APAC1 Countries with large LH AGG LatAM ~30 Mt presence ~5 M
Slide 4: Aggregates Life
Aggregates Life Substantial life of quality aggregates in key markets Aggregate Life by Key Market North America Europe ~100 years ~40 years Australia ~50 years Countries with Large LH AGG Others: presence Countries where LH AGG has ~60 years positions in selected markets 4
Slide 5: Attractiveness of Aggregates
Attractiveness of Aggregates Attractive business with strong fundamentals Growing Demand Industry Price Development New Development Revenue Growth › Rising population and › Increasing legislation › Local market business › Sustainable Solutions / urbanization & controls Circular Economy › Limited imp
Slide 6: Global Benchmarking with Key Competitors
Global Benchmarking with Key Competitors Significant potential in closing the gap to best-in-class performance Aggregates performance EBITDA margin, % 2012 2013 2014 2015 2016 2017 Competitor 1 Competitor 3 Competitor 2 LafargeHolcim Source: LH figures from internal reporting; Competitor AGG EBITDA
Slide 7: Attractiveness of Aggregates
Attractiveness of Aggregates Levers for sustained growth and closing the margin gap 1. Growth 2. Profitability Grow Net Sales by >5% p.a. Close margin gap to peers Organic Growth Bolt-ons Performance Portfolio › Leverage existing assets › Multiple high-synergy › Accountable, local P&L › Potential as
Slide 8: LH Aggregates in the US
LH Aggregates in the US Well positioned for growth, driving performance at local market level Case Study: Mid-Atlantic Region US AGG footprint LH US AGG Volume ~60 Mt Fargo Buffalo Boston Michigan Twin Cities Chicago Washington Denver Vegas St. Louis Phoenix 1.0 Rec EBITDA: ~+10% CAGR Dallas 4.0 Rec
Slide 9: LH Aggregates across the World
LH Aggregates across the World Extension of the US model to attractive markets worldwide Europe: ~125 Mta Canada: ~50 Mta Australia ~30 Mta Midlands Bruxelles Warsaw London Frankfurt Brisbane Paris Vancouver Zurich Edmonton Lyon Winnipeg Sydney Marseille Calgary Ottawa Adelaide Perth Melbourne Toron
Slide 10: Success Story – Ready Mix Concrete in India
Success Story – Ready Mix Concrete in India Ambition to be the best player in the industry Focus on high growth segments RMX demand (Mm3) +7% 81 RMX demand expected to grow to 81 76 million m3 by 2020-21 71 66 › ~7% of the total cement consumption is 58 62 by RMX1 › Huge grow potential fueled by 201
Slide 11: Success Story – Ready Mix Concrete in India
Success Story – Ready Mix Concrete in India Fast expansion of operating footprint 2013 2018 YTD 46 Plants 70 Plants 3 3 3 3 8 6 1 1 1 5 3 1 1 5 2 8 3 4 13 4 7 2 6 4 8 3 4 11
Slide 12: Success Story – Ready Mix Concrete in India
Success Story – Ready Mix Concrete in India Growth in top line and profitability Volume sold (million m3) Recurring EBITDA and margin +11% 2.9 Rec EBITDA margin, % Rec EBITDA, CHFm 9.0 2.6 7.2 2.3 5.8 4.4 3.4 16.2 1.8 10.6 7.9 1.6 4.7 3.1 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Strong sale
Slide 13: Success Story – Ready Mix Concrete in India
Success Story – Ready Mix Concrete in India Key success factors › Motivated, competent, passionate teams › Accountable leadership › Expanding the footprint with new sites and mobile plants › Best in class technical capabilities › Continuous innovation › Logistics efficiency, GPS tracking › Control o
Slide 14: The Way Forward
The Way Forward Double the number of plants and increase sales of Value Added Products Volume ramp up by adding new plants Growing Value Added Products (VAS) VAS as % of total sales VAS Volume in ‘000 Cum 140 RMX Plants 23% 22% 21% 2022 19% 20% 18% 90 RMX 15% Plants 13% 14% 1,380 1,250 2019 8% 924 6
Slide 15: 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.
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