Slide 1: Q3 2020 Trading Update
Q3 2020 JAN JENISCH CEO TRADING UPDATE GÉRALDINE PICAUD CFO October 30, 2020 © LafargeHolcim Ltd 2015
Slide 2: Recurring EBIT Margin Significantly Up
Q3 2020 KEY DEVELOPMENTS RECURRING EBIT MARGIN SIGNIFICANTLY UP Resilient demand, Net Sales decrease of 2.6% LFL Action plan “HEALTH, COST & CASH” delivering well ahead of targets Costs decline over-proportional compared to volumes in Q3, recurring EBIT margin up 250bps Recurring EBIT up by 10.0% LF
Slide 3: Fast Volume Recovery in Most Markets, Resilient Demand
Q3 2020 VOLUMES DEVELOPMENT FAST VOLUME RECOVERY IN MOST MARKETS, RESILIENT DEMAND -1% -10% LFL GROUP M ton -1% M m3 +2% -11% -7% 12.7 31.5 5.0 -6% 6.0 35.6 3.0 CEM AGG RMX -1% CEM AGG RMX Europe North America +3% -3% -33% -14% -3% -16% -6% 8.9 1.0 0.8 16.2 7.4 1.8 CEM AGG RMX 52.0 76.7 11.8 CEM AGG
Slide 4: Execution of Action Plan Delivering Well Ahead of Targets
“HEALTH, COST & CASH” ACTION PLAN EXECUTION OF ACTION PLAN DELIVERING WELL AHEAD OF TARGETS HEALTH COST CASH Reduction in fixed costs by CHF Reduction of CAPEX by at least CHF Safeguard the Health and Safety of our staff, partners and communities 300million 1 400million In 2020 9M 2020 Compared to 2
Slide 5: Further Strengthening Our Leadership in Sustainability
FURTHER STRENGTHENING OUR LEADERSHIP IN SUSTAINABILITY BY 2030 LAFARGEHOLCIM WILL… Accelerate the use of green building solutions, with the launch of EcoLabel and the global roll-out of green concrete ECOPact Double the recycling of materials across its businesses to reach 100 m tons Scale up the us
Slide 6: Net Sales Decrease of 2.6% LFL
Q3 2020 NET SALES BRIDGE NET SALES DECREASE OF 2.6% LFL -2.6% LFL 7’142 +27 -184 -530 6’455 Q3 2019 Scope LFL FX Q3 2020 -9.6% CHF M 6
Slide 7: Recurring EBIT Growth of 10.0% LFL
Q3 2020 RECURRING EBIT BRIDGE RECURRING EBIT GROWTH OF 10.0% LFL +10.0% LFL +15 -27 1’418 -121 1’445 +6 +267 -114 Q3 2019 Scope Volume Price over cost JVs contribution Depreciation FX Q3 2020 +1.9% CHF M 7
Slide 8: Strong Margin Increase in Cement, Resilient Downstream
Q3 2020 NET SALES AND RECURRING EBIT BY SEGMENT STRONG MARGIN INCREASE IN CEMENT, RESILIENT DOWNSTREAM CEMENT AGGREGATES RMX SOLUTIONS & PRODUCTS CHF M 4’106 1’081 1’288 599 Net Sales -6.2% LFL -3.5% LFL -13.6% LFL +0.3% LFL Recurring EBITDA 1’450 302 79 82 after leases +14.3% LFL -3.4% LFL -2.7% LF
Slide 9: Rec EBIT Margin Expansion Across All Regions
Q3 2020 REGIONAL PERFORMANCE REC EBIT MARGIN EXPANSION ACROSS ALL REGIONS 0.0% -9.1% 34.5% +3,6% -0.5% +14.6% -3.5% +35.8% +14.7% -2.2% +19.9% +5.4% 1’791 504 623 217 1’992 397 602 106 1’341 317 North America Latin America Europe Middle East Africa Asia Pacific 28.2% 34.5% 19.7% 17.3% 23.6% NET SALE
Slide 10: North America: Rec EBIT Margin Improvement Amid COVID-19
NORTH AMERICA REC EBIT MARGIN IMPROVEMENT AMID COVID-19 H1 2020 Q3 2020 9M 2020 CHF M Net Sales1 1’791 4’357 -9.1% LFL -3.6% LFL Recurring EBITDA after leases 639 1’163 -3.0% LFL +1.7% LFL Recurring EBIT 504 764 -3.5% LFL +3.2% LFL 1 Net Sales to external customers → Volumes in all business segments
Slide 11: Latin America: Outstanding Performance
LATIN AMERICA OUTSTANDING PERFORMANCE H1 2020 Q3 2020 9M 2020 CHF M Net Sales1 623 1’603 +14.6% LFL -3.4% LFL Recurring EBITDA after leases 252 604 +29.0% LFL +3.6% LFL Recurring EBIT 217 492 +35.8% LFL +4.2% LFL 1 Net Sales to external customers → Strong markets in Mexico and Brazil → Excellent cos
Slide 12: Europe: Markets Recovered, Rec EBIT Margin Strongly Up
EUROPE MARKETS RECOVERED, REC EBIT MARGIN STRONGLY UP IN Q3 H1 2020 Q3 2020 9M 2020 CHF M Net Sales1 1’992 5’265 0.0% LFL -6.1% LFL Recurring EBITDA after leases 543 1’098 +14.3% LFL -2.4% LFL Recurring EBIT 397 685 +14.7% LFL -7.0% LFL 1 Net Sales to external customers → Net Sales back to last year
Slide 13: Middle East Africa: Successful Turnaround
MIDDLE EAST AFRICA SUCCESSFUL TURNAROUND DRIVING STRONG PERFORMANCE H1 2020 Q3 2020 9M 2020 CHF M Net Sales1 602 1’780 -2.2% LFL -10.7% LFL Recurring EBITDA after leases 160 426 +10.4% LFL -6.7% LFL Recurring EBIT 2 106 243 +19.9% LFL -11.0% LFL 1 Net Sales to external customers 2 Contribution from
Slide 14: Asia Pacific: Rec EBIT Growth Driven by India
ASIA PACIFIC REC EBIT GROWTH DRIVEN BY STRONG PERFORMANCE IN INDIA H1 2020 Q3 2020 9M 2020 CHF M Net Sales1 1’341 3’754 -0.5% LFL -12.5% LFL Recurring EBITDA after leases 394 1’018 +8.1% LFL -10.9% LFL Recurring EBIT 2 317 754 +5.4% LFL -18.2% LFL 1 Net Sales to external customers 2 Contribution fro
Slide 15: Credit Ratings Confirmed, Strong Balance Sheet & Liquidity
FINANCIAL STRENGTH CREDIT RATINGS CONFIRMED, STRONG BALANCE SHEET & LIQUIDITY STRONG LIQUIDITY STRONG BALANCE SHEET → More than CHF 8billion of cash and unused committed credit lines → Debt maturities 2020-2021 well covered with available liquidity → All credit lines without financial covenants and
Slide 16: Demonstrating Our Commitments Towards Sustainability
SUSTAINABLE FINANCING & LIQUIDITY MANAGEMENT DEMONSTRATING OUR COMMITMENTS TOWARDS SUSTAINABILITY COMMERCIAL PAPER PROGRAM → EUR 3billion commercial paper program for issuance of ESG notes established COMMITTED BILATERAL LINES → All committed Corporate bilateral facilities amended to link cost with
Slide 17: Outlook and Guidance 2020
OUTLOOK AND GUIDANCE 2020 RESILIENT DEMAND EXPECTED, FCF GUIDANCE INCREASED Resilient demand expected for Q4 20201 Execution of action plan “HEALTH, COST & CASH” to continue ahead of targets 2020 Free Cash Flow guidance increased to above CHF 2.75 bn based on strong Q3 performance Strong balance she
Slide 18: Appendix
APPENDIX Hi LafargeHolcim
Slide 19: 9M 2020 Recurring EBIT Bridge
9M 2020 RECURRING EBIT BRIDGE RECURRING EBIT DECREASE OF 7.2% LFL -7.2% LFL 3’085 +3 -67 -50 -227 2’639 -796 +691 9M 2019 Scope Volume Price over cost JVs contribution Depreciation FX 9M 2020 -14.5% CHF M 19
Slide 20: Q3 2019 Recurring EBIT by Region
Q3 2019 RECURRING EBIT BY REGION Latin Middle East North Corporate & Asia Pacific Europe Group America Africa America Trading CHF M 404 522 232 177 736 -85 1’985 RECURRING EBITDA Depreciaton of right of -11 -30 -7 -11 -36 -2 -98 use assets RECURRING EBITDA 393 492 225 165 700 -88 1’888 after leases
Slide 21: Upcoming Events
UPCOMING EVENTS FEBRUARY 26, 2021 Full year 2020 earnings release APRIL 23, 2021 Q1 2021 Trading Update JULY 30, 2021 Half-year 2021 results OCTOBER 29, 2021 Q3 2021 Trading Update 21
Slide 22: Disclaimer
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