Holcim Ltd · SIX:HOLN
Holcim — Q3 2003 Earnings Presentation
19 slides from Holcim's earnings presentation, November 2003
Slide 1: Third quarter + outlook for 2003: The key facts at a glance
Third quarter + outlook for 2003 The key facts at a glance Holcim is on track despite subdued demand in some regions and unfavorable exchange rates in most cases. Higher sales in all segments and revenues up in local currency terms. Improved margins and higher consolidated net income on the ba
Slide 2: Positions in Europe
Positions in Europe Group: Cement plant Grinding plant Terminal Participation: Cement plant Cement capacity Group (Europe): 39.9 m t; additionally with partners: 9.9 m t. 2 Third quarter 2003 Europe Slight recovery in the European construction sector in general. Activity remained buoyant in Sout
Slide 3: Europe: the facts
Europe: the facts Acquisition of Cementos Hispania boosts Holcim Spain and underpins financial results. Buoyant construction activity in Southern and Southeast Europe brings higher sales volume in all three core seg- ments. Difficult sales situation in Germany and declining volume of demand in
Slide 4: North America
North America Subdued picture overall for the construction sector on this conti- nent. In Canada, the order situation in the construction sector remained healthy; the weather-related order shortfall at the start of the year has not yet been fully offset. In the US, volumes and prices declined
Slide 5: Positions in Latin America
Positions in Latin America Group: Cement plant Grinding plant Terminal Participation: Cement plant Grinding plant Terminal Cement capacity Group (Latin America): 31.0 m t; additionally with partners: 9.9 m t. 8 Third quarter 2003 Latin America Positive and negative develop- ments in Latin America
Slide 6: Latin America: the facts
Latin America: the facts Pleasing sales figures for Mexico, the Caribbean and Chile. Marked increase in sales at Minetti in Argentina. Holcim Brazil holds up well in a market that is in need of a fresh boost. Increase in deliveries of cement and ready-mix concrete; fall in demand for aggrega
Slide 7: Africa Middle East
Africa Middle East Very positive market develop- ments in Africa. Morocco and South Africa proved to be the main growth drivers. In Lebanon and West Africa the market situation continued to be strained. Despite persistent pressure on prices, the market situation in Egypt has stabilized sligh
Slide 8: Positions in Asia Pacific
Positions in Asia Pacific Group: Cement plant Grinding plant Important terminal Grinding plant project Participation: Cement plant Grinding plant Important terminal Cement capacity Group (Asia Pacific): 36.0 m t; additionally with partners: 14.6 m t. 14 Third quarter 2003 Asia Pacific Further incr
Slide 9: Asia Pacific: the facts
Asia Pacific: the facts Slightly higher cement sales in the Philippines almost entirely due to consolidation changes. Successful integration of PT Semen Cibinong in Indonesia and correspondingly improvement in financial results. Substantially higher operating profit also being generated by the
Slide 10: Key financial figures
Key financial figures Full Year 9 Months +/- Million CHF 2002 2002 2003 in CHF in loc. curr. Net sales 13'010 9'928 9'395 -5.4% 1.1% Operating profit 1'903 1'559 1'550 -0.6% 8.1% Operating EBITDA 3'341 2'616 2'537 -3.0% 5.2% EBITDA 3'399 2'719 2'597 -4.5% 3.0% Group net income after minority interes
Slide 11: Exchange rates and sales volumes
Exchange rates Statement of income average exchange rates in CHF 9M 01 9M 02 9M 03 +/- 1 EUR 1.52 1.47 1.51 2.7% 1 USD 1.70 1.59 1.36 -14.5% 1 African Basket (EGP, ZAR, MAD) 1) 1.29 1.00 1.02 2.0% 1 Asian Basket (AUD, NZD, THB, PHP) 1) 1.03 1.00 0.93 -7.0% Balance sheet exchange rates in CHF 30.9.02
Slide 12: Net sales and net sales by region
Net sales Million CHF 10'301 9'928 9'395 Volume / price -12 -0.1% 39 0.4% Change in structure 319 3.1% 71 0.7% Forex movements -680 -6.6% -643 -6.5% Total change -373 -3.6% -533 -5.4% 9M 2001 9M 2002 9M 2003 22 Third quarter 2003 Net sales by region Million CHF 3308 3343 9 months 2002 9 months 2003
Slide 13: Net sales by region and Operating EBITDA
Net sales by region Latin America North America 22% 19% Africa Middle East 10% Europe 35% Asia Pacific 14% 9 months 2003 24 Third quarter 2003 Operating EBITDA Million CHF Margin 27.0% 26.3% 24.9% 2'565 2'616 2'537 Volume / price / cost 183 7.1% 82 3.2% Change in structure 53 2.1% 53 2.0% Forex move
Slide 14: EBITDA and Operating profit
EBITDA Million CHF Margin 27.4% 27.6% 26.7% 2'747 2'719 2'597 - 1.0% - 4.5% 9M 2001 9M 2002 9M 2003 26 Third quarter 2003 Operating profit Margin 16.5% Million CHF 15.7% 15.1% 1'553 1'559 1'550 Volume / price / cost 132 8.5% 97 6.2% Change in structure -8 -0.5% 29 1.9% Forex movements -118 -7.6% -13
Slide 15: Operating profit by region and other income
Operating profit by region Million CHF 475 478 9 months 2002 9 months 2003 225 179 201 208 118 151 603 593 ∆ 9M 02/9M 03 Volume/ Change in Currency Total price/cost structure Europe -6.1% 4.4% 2.3% 0.6% North America -10.6% 0.0% -9.8% -20.4% Latin America 14.9% 0.5% -17.1% -1.7% Africa Middle East 7
Slide 16: Group net income and cash flow from operating activities
Group net income Before minority interests in million CHF After minority interests in million CHF 773 727 723 613 514 518 9M 2001 9M 2002 9M 2003 30 Third quarter 2003 Cash flow from operating activities Million CHF Margin 17.4% 16.3% 14.0% 1'732 1'527 1'447 9M 2001 9M 2002 9M 2003 31 Third quarter
Slide 17: Cash flow statement and financing
Cash flow statement Million CHF Full Year 9 Months +/- 2002 2002 2003 Cash flow from operating activities 2'388 1'732 1'527 -11.8% Investments to maintain productive capacity and to secure competitiveness -843 -543 -510 -6.1% Free cash flow 1'545 1'189 1'017 -14.5% Expansion investments -409 -300 -3
Slide 18: Financial position and Outlook for 2003 I
Financial position 94.2% 93.9% 94.3% 9'825 9'435 9'695 9'260 8'857 9'144 30.09.2002 31.12.2002 30.09.2003 Equity in million CHF Net financial debt in million CHF Gearing 34 Third quarter 2003 Outlook for 2003 I Europe: further improvement at operating level against persistently difficult situation
Slide 19: Outlook for 2003 II
Outlook for 2003 II Assuming there are no fundamental changes in the general framework in the final quarter of 2003, we can make the following financial forecasts with regard to the full financial year: Margins will improve further on the back of efficiency improvements. After adjusting for exchan