Amrize Ltd · NYSE:AMRZ
Amrize — FY 2020 Earnings Presentation
40 slides from Amrize's earnings presentation, Feb 26, 2021
Slide 1: FY 2020 Results
FY 2020 JAN JENISCH CEO RESULTS GÉRALDINE PICAUD CFO February 26, 2021 © LafargeHolcim Ltd 2015
Slide 2: Highlights and Key Developments
01 HIGHLIGHTS AND KEY DEVELOPMENTS Jan Jenisch, Chief Executive Officer © LafargeHolcim Ltd 2015
Slide 3: Strong Momentum Since Q4 & Record 2020 Free Cash Flow
2020 KEY DEVELOPMENTS STRONG MOMENTUM SINCE Q4 & RECORD 2020 FREE CASH FLOW Strong momentum in Q4 with Net Sales +1.5% LFL and Recurring EBIT +14.1% LFL Fast and disciplined execution of “HEALTH, COST & CASH” action plan Record Free Cash Flow of CHF 3’249 m for 2020 Strong balance sheet with Net Deb
Slide 4: Strong Momentum Since Q4
2020 KEY DEVELOPMENTS STRONG MOMENTUM SINCE Q4 Cement Recurring Net Sales Volumes EBIT +14.1% +10.0% +1.5% -1.5% -0.3% -3.3% -2.6% -2.6% -5.2% -17.0% -20.2% -26.1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 % LFL Growth / Decline 4
Slide 5: Strong Volumes and Margins Driven by Branded Products
2020 KEY DEVELOPMENTS STRONG VOLUMES AND MARGINS DRIVEN BY BRANDED PRODUCTS SELECTED LAFARGEHOLCIM BRANDED PRODUCTS ROMANIA CHINA Cement volumes by sales mix – H2 2020 COLOMBIA +4.1% EGYPT MEXICO NIGERIA -6.5% BRAZIL Bag Bulk ECUADOR ARGENTINA ALGERIA INDIA PHILIPPINES 5
Slide 6: Fast Execution of Health, Cost & Cash Action Plan
AGILE AND EFFECTIVE CRISIS MANAGEMENT FAST EXECUTION OF “HEALTH, COST & CASH” ACTION PLAN HEALTH COST CASH Reduction in fixed costs1 by CHF Reduction of CAPEX by CHF Safeguard the Health and Safety 300million 400million of our staff, partners and communities In 2020 FY 2020 Compared to 2019 FY 2020
Slide 7: Leader in One of the Most Attractive Market Segments
ACQUISITION OF FIRESTONE BUILDING PRODUCTS LEADER IN ONE OF THE MOST ATTRACTIVE MARKET SEGMENTS Focused on the growing flat roofing systems market Leading brand based on innovation, IP, product certifications and warranty systems Sustainability leader with green, solar and cool roofs Sales 202
Slide 8: A Milestone in the Transformation of LafargeHolcim
ACQUISITION OF FIRESTONE BUILDING PRODUCTS A MILESTONE IN THE TRANSFORMATION OF LAFARGEHOLCIM A milestone in our ambition to be “The Global Leader in Innovative and Sustainable Building Materials and Solutions” A new growth and innovation platform in the attractive market segment for flat roofin
Slide 9: Progress on Firestone Acquisition
ACQUISITION OF FIRESTONE BUILDING PRODUCTS PROGRESS ON FIRESTONE ACQUISITION 2020 2021 OUTLOOK Very good outlook for 2021, based on: 2020 results Encouraging trends in January Better than initially communicated Significant opportunities to come from USD 2 trillion Biden’s “Build Back Better” plan CL
Slide 10: 8 Bolt-On Acquisitions Closed in 2020
BOLT-ON ACQUISITIONS 8 BOLT-ON ACQUISITIONS CLOSED IN 2020 Tanas Concrete Northumbrian Industries Roads CANADA UK RMX Asphalt Q4 2020 Q4 2020 Mixcor Stalybridge Aggregates Readymix CANADA UK AGG RMX Q4 2020 Q1 2020 General CPC AG GENERAL Diversified SWITZERLAND DIVERSIFIED Resources /GERMANY ARIZONA
Slide 11: Key Milestones Reached in 2020
FURTHER STRENGTHENING OUR LEADERSHIP IN SUSTAINABILITY KEY MILESTONES REACHED IN 2020 LafargeHolcim joins as a LafargeHolcim Signs LafargeHolcim recognized as a Founding Member Net Zero Pledge Global Climate with Science-Based Targets: of the MIT Climate and Leader Sustainability Consortium Partners
Slide 12: Global Roll-Out of ECOPact
GREEN BUILDING SOLUTIONS GLOBAL ROLL-OUT OF ECOPACT Adopted across 14 markets THE GREEN CONCRETE WORLDWIDE GERMANY BELGIUM UNITED STATES UK FRANCE CANADA Latin America North America Europe Asia Pacific DEC 2020 JUL 2020 2019 FEB 2020 JUL 2020 JAN 2021 COLOMBIA | MEXICO | US SWITZERLAND GERMANY FRANC
Slide 13: Full-Year 2020 Financial Results
02 FULL-YEAR 2020 FINANCIAL RESULTS Géraldine Picaud, Chief Financial Officer © LafargeHolcim Ltd 2015
Slide 14: Double Digit Growth in Recurring EBIT in Q4
2020 PERFORMANCE HIGHLIGHTS DOUBLE DIGIT GROWTH IN RECURRING EBIT IN Q4 CEMENT NET RECURRING RECURRING VOLUMES SALES EBITDA 2 EBIT 1 1 1 1 -0.3% +1.5% +7.2% +14.1% 51.2 M ton CHF 5’994 m CHF 1’559 m CHF 1’037 m 1 Variance on a like for like basis 2 After leases 14
Slide 15: Strong Finish to the Year and Record Free Cash Flow
2020 PERFORMANCE HIGHLIGHTS STRONG FINISH TO THE YEAR AND RECORD FREE CASH FLOW NET RECURRING RECURRING SALES EBITDA 2 EBIT 1 1 1 -5.6% -0.9% -1.9% CHF 23’142 m CHF 5’616 m CHF 3’676 m EPS 3 FREE CASH FLOW 2 1 Variance on a like for like basis CHF CHF 2 After leases 3.07 3’249 m 3 Before impairment
Slide 16: Resilient Demand in All Regions in Second Half of 2020
2020 VOLUMES BY REGION RESILIENT DEMAND IN ALL REGIONS IN SECOND HALF OF 2020 -6% -5% LFL GROUP M ton -4% M m3 -6% -5% -2% 44.6 111.9 18.1 -5% 19.8 108.0 10.0 CEM AGG RMX -7% CEM AGG RMX Europe -10% North America -6% -45% -27% 0% -15% -10% 33.3 3.5 2.7 63.0 28.1 7.4 CEM AGG RMX 190.4 256.3 42.3 CEM
Slide 17: Net Sales Decrease of 5.6% LFL
2020 NET SALES BRIDGE NET SALES DECREASE OF 5.6% LFL -5.6% LFL 26’722 -134 1 -1’477 -1’968 23’142 FY 2019 Scope LFL FX FY 2020 -13.4% 1 Including divestments of Indonesia, Malaysia and Singapore CHF M 17
Slide 18: Lower Decrease of Recurring EBIT vs Net Sales
2020 RECURRING EBIT BRIDGE LOWER DECREASE OF RECURRING EBIT VS NET SALES -1.9% LFL 4’102 +5 -73 -24 -353 3’676 -775 +793 FY 2019 Scope Volume Price over cost JVs contribution Depreciation FX FY 2020 -10.4% CHF M 18
Slide 19: Strong Margin Expansion in Cement
2020 NET SALES AND RECURRING EBIT BY SEGMENT STRONG MARGIN EXPANSION IN CEMENT SOLUTIONS & CEMENT AGGREGATES RMX PRODUCTS CHF M 15’043 3’713 4’610 1’893 Net Sales -4.7% LFL -5.4% LFL -6.7% LFL -12.2% LFL Recurring EBITDA 4’516 761 166 173 after leases +4.0% LFL -12.3% LFL -33.8% LFL -21.5% LFL 3’112
Slide 20: Recurring EBIT Margin Improvement Across All Regions
2020 REGIONAL PERFORMANCE RECURRING EBIT MARGIN IMPROVEMENT ACROSS ALL REGIONS -4.2% -3.3% -9.1% +3,6% -8.9% +2.4% +5.8% +13.4% -2.5% -4.7% -12.1% 5’749 1’033 2’225 696 7’061 927 2’349 330 5’243 1’103 North America Latin America Europe Middle East Africa Asia Pacific +1.6pp +3.8pp +0.2pp +0.6pp +0.0
Slide 21: North America: Strong Recurring EBIT Margin Improvement
NORTH AMERICA STRONG RECURRING EBIT MARGIN IMPROVEMENT H1 2020 Q4 2020 FY 2020 CHF M Net Sales1 1’392 5’749 -2.4% LFL -3.3% LFL Recurring EBITDA after leases 421 1’584 +6.1% LFL +2.9% LFL Recurring EBIT 269 1’033 +13.9% LFL +5.8% LFL 1 Net Sales to external customers → Recovery of volumes across all
Slide 22: Latin America: Outstanding Performance in Q4
LATIN AMERICA OUTSTANDING PERFORMANCE IN Q4 H1 2020 Q4 2020 FY 2020 CHF M Net Sales1 622 2’225 +20.1% LFL +2.4% LFL Recurring EBITDA after leases 243 847 +35.7% LFL +11.4% LFL Recurring EBIT 204 696 +42.1% LFL +13.4% LFL 1 Net Sales to external customers → Q4 volumes significantly ahead of last year
Slide 23: Europe: Back to Growth in Q4
EUROPE BACK TO GROWTH IN Q4 H1 2020 Q4 2020 FY 2020 CHF M Net Sales1 1’796 7’061 +1.9% LFL -4.2% LFL Recurring EBITDA after leases 410 1’507 +0.1% LFL -1.8% LFL Recurring EBIT 242 927 +13.2% LFL -2.5% LFL 1 Net Sales to external customers → Q4 volumes back to 2019 level → Strong demand in Western Eu
Slide 24: Middle East Africa: Successful Turnaround
MIDDLE EAST AFRICA SUCCESSFUL TURNAROUND WITH INCREASING EBIT MARGIN H1 2020 Q4 2020 FY 2020 CHF M Net Sales1 569 2’349 -3.2% LFL -8.9% LFL Recurring EBITDA after leases 138 563 +3.0% LFL -4.3% LFL Recurring EBIT 2 88 330 +14.4% LFL -4.7% LFL 1 Net Sales to external customers 2 Contribution from sha
Slide 25: Asia Pacific: Back to Growth and Increasing Margin in Q4
ASIA PACIFIC BACK TO GROWTH AND INCREASING MARGIN IN Q4 H1 2020 Q4 2020 FY 2020 CHF M Net Sales1 1’489 5’243 +0.7% LFL -9.1% LFL Recurring EBITDA after leases 440 1’458 +7.7% LFL -6.0% LFL Recurring EBIT 2 349 1’103 +4.8% LFL -12.1% LFL 1 Net Sales to external customers 2 Contribution from share of
Slide 26: Resilient Earnings Per Share of CHF 3.07
2020 FINANCIAL PERFORMANCE 1 RESILIENT EARNINGS PER SHARE OF CHF 3.07 CHF M 2019 2020 Change Before impairment & divestments Before impairment & divestments Net Sales 26’722 23’142 -3’580 RECURRING EBITDA after leases 6’177 5’616 -561 Depreciation & amortization -2’075 -1’940 135 RECURRING EBIT 4’10
Slide 27: Record Free Cash Flow of CHF 3'249 M
1 2020 FREE CASH FLOW RECORD FREE CASH FLOW OF CHF 3’249 M NWC improvement CHF M 2019 2020 Change Days sales outstanding 6’177 5’616 -561 RECURRING EBITDA after leases 42 38 Right of use assets 404 360 -44 Dec-19 Dec-20 Change in net working capital 290 435 146 < Days inventory outstanding Income ta
Slide 28: Net Financial Debt Decrease by CHF 1.6 Bn
NET FINANCIAL DEBT BRIDGE NET FINANCIAL DEBT DECREASE BY CHF 1.6 BN CHF M NET DEBT reduction of CHF 1’627 m -16% 10’110 +1’224 +279 -5 8’483 -3’249 +124 1 2 1 NFD Free Cash Flow Disposals / acquisitions Group Non-controlling Others NFD Dec 2019 shareholders interests Dec 2020 Dividends 1 Excluding h
Slide 29: Target Overachieved, Net Debt Leverage Improved to 1.4x
LEVERAGE TARGET OVERACHIEVED, NET DEBT LEVERAGE IMPROVED TO 1.4x NFD / Recurring EBITDA 2.4x 1 2.2x 1 1.5x 1.4x 2017 2018 2019 2020 29 1 Pre IFRS 16
Slide 30: On Track with 2022 Target
RETURN ON INVESTED CAPITAL ON TRACK WITH 2022 TARGET Return on Invested Capital >8.0% 7.4% 7.4% 6.5% 5.8% 1 1 2 2017 2018 2019 2020 … 2022 1 Pre IFRS 16 30 2 At constant scope
Slide 31: Good Progress on Sustainability Targets
FURTHER STRENGTHENING OUR LEADERSHIP IN SUSTAINABILITY GOOD PROGRESS ON SUSTAINABILITY TARGETS CLIMATE CIRCULAR ENVIRONMENT COMMUNITY & ENERGY ECONOMY CO2 WASTE WATER VALUE LEAD METRIC REDUCED RECYCLED W I THDRAW N SHARED [ kg CO2/t cementitious ] [ Mt ] [ l fresh water / tcem ] [ M total beneficiar
Slide 32: Dividend of CHF 2.0 per Share Proposed
DIVIDEND DIVIDEND OF CHF 2 PER SHARE PROPOSED Dividend per share (CHF) 2.0 2.0 2.0 2.0 2.0 → 2020 dividend of CHF 2.0 per share to be proposed at AGM on May 4, 2021 1.5 → Dividend to be paid out of foreign capital contribution reserve and is not subject to Swiss withholding tax 2015 2016 2017 2018 2
Slide 33: Outlook and Guidance 2021
03 OUTLOOK AND GUIDANCE 2021 Jan Jenisch, Chief Executive Officer © LafargeHolcim Ltd 2015
Slide 34: Extra Demand from Broad Range of Stimulus Programs
SELECTED STIMULUS AND INFRASTRUCTURE PROJECTS EXTRA DEMAND FROM BROAD RANGE OF STIMULUS PROGRAMS FRANCE “France relance”: EUR 100 bn (over 2020-21) to boost industrial, UNITED KINGDOM construction and transportation - Infrastructure program of sectors as announced in Sep 2020 GBP 640 bn (over 2020-2
Slide 35: Good Demand Momentum in 2021
OUTLOOK & TARGETS 2021 GOOD DEMAND MOMENTUM IN 2021 Positive demand trends in all regions Extra demand as of H2 2021 expected from broad range of stimulus programs Unleash Firestone growth platform Acceleration of bolt-ons Accelerated progress towards 2030 sustainability targets Recurring EBIT growt
Slide 36: Appendix
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Slide 37: Reconciliation of Non-GAAP Measures: Net Income
RECONCILIATION OF NON-GAAP MEASURES NET INCOME 2020 Impairment 2020 CHF m before impaiment & divestments & divestments reported Net Sales 23'142 23'142 Recurring EBIT 3'676 3'676 Restructuring, litigation and others -89 -89 Impairment of operating assets 0 -215 -215 Operating Profit (EBIT) 3'587 -21
Slide 38: Upcoming Events
UPCOMING EVENTS APRIL 23, 2021 Q1 2021 Trading Update MAY 4, 2021 Annual General Meeting JULY 30, 2021 Half-year 2021 results OCTOBER 29, 2021 Q3 2021 Trading Update NOVEMBER 18, 2021 Capital Markets Day 38
Slide 39: 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 40: LafargeHolcim
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