Slide 1: Q3 2018 Trading Update
Q3 2018 Trading Update Jan Jenisch, CEO Géraldine Picaud, CFO October 26, 2018 © LafargeHolcim Ltd 2015
Slide 2: Q3 2018 highlights
Q3 2018 highlights › Accelerated growth momentum with Net Sales up 5.8% LFL › All four business segments contributing › Over-proportional increase in Recurring EBITDA of 8.1% LFL › Stabilization in Middle East Africa in August and September › SG&A cost savings program delivering results ahead of tar
Slide 3: Strategy 2022 – Building for Growth
Strategy 2022 – “Building for Growth” Execution at full speed Accelerated growth momentum with +5.8% LFL Net Sales growth in Q3 All 4 business segments growing 3 bolt-on acquisitions in Q3 (Tarrant & Metro Mix in the US, Vritz quarry in France) Simplification Corporate offices in Singapore a
Slide 4: Performance highlights
Performance highlights Strong acceleration in Q3 Recurring Net Sales EBITDA 2) Q3 2018 9M 2018 Q3 2018 9M 2018 +5.8% 1) +5.1% 1) +8.1% 1) +2.5% 1) CHF 7’362 m CHF 20’634 m CHF 1’867 m CHF 4’351 m 1) Like-for-like 2) Variance calculated on 2017 Recurring EBITDA restated for the inclusion of the Group
Slide 5: Q3 2018 Net Sales bridge
Q3 2018 Net Sales bridge Solid growth above 5% LFL CHF m +2.6% +5.8% LFL -2.4% -0.7% 7'532 -0.8% +414 -169 7’362** 7’175* 7'118 -57 Q3 2017 Scope Q3 2017 LFL LFL Q3 2018 LFL FX Q3 2018 * Net Sales Q3 2017 restated by CHF 231 million due to the reporting of gross sales from Trading activities, follow
Slide 6: Q3 2018 total Net Sales by segment
Q3 2018 total Net Sales by segment Net Sales growth across all business segments Cement Aggregates RMX Solutions & Products Group Net Sales split by segment +6.5% +6.0% +3.8% +5.6% 4'707 1'454 4'628 9% 1'408 18% 58% 1'175 15% 1'120 737 694 Q3 2017 Q3 2017 Q3 2017 Q3 2017 Cement Aggregates RMX SOP Q3
Slide 7: Q3 2018 Recurring EBITDA bridge
Q3 2018 Recurring EBITDA bridge Recurring EBITDA growth further accelerating in Q3 CHF m +5.2% +8.1% LFL +45 -2.3% -0.6% +98 1'908 -41 1'774 -10 1'764 1’867 Q3 2017 Scope Q3 2017 LFL Volume Price / cost Q3 2018 LFL FX Q3 2018 * Recurring EBITDA Q3 2017 restated by CHF 24 million due to the reclassif
Slide 8: 9M 2018 Recurring EBITDA bridge
9M 2018 Recurring EBITDA bridge Recurring EBITDA growth further accelerating in Q3 CHF m -0.1% +2.5% LFL -131 -1.9% +239 4'433 -0.7% -82 4'356 -30 4'326 4’351 9M 2017 Scope 9M 2017 LFL Volume Price / cost 9M 2018 LFL FX 9M 2018 * Recurring EBITDA 9M 2017 restated by CHF 71 million due to the reclass
Slide 9: Q3 2018 regional performance
Q3 2018 regional performance Growth in Net Sales and Recurring EBITDA in most regions North America Latin America Europe Middle East Africa Asia Pacific +6.9% +4.7% +7.0% 2'027 1'891 1'770 -1.3% 772 +7.8% 698 +35.0% +2.9% -5.5% +4.4% -9.8% 378 643 480 200 251 Net Sales to external customers (CHF m)
Slide 10: North America
North America Robust contribution of the region CHF m Q3 2018 9M 2018 Net Sales1) 1’891 4’366 LFL growth +4.7% +3.3% 1) Reported growth +5.6% +4.1% Recurring EBITDA 643 1’113 LFL growth +2.9% +2.5% › Solid underlying market trends in the US and Canada West › Strong growth in aggregates volumes; prof
Slide 11: Latin America
Latin America Performance impacted by weakening volumes and cost inflation CHF m Q3 2018 9M 2018 Net Sales1) 698 2’126 LFL growth +7.8% +11.1% Reported growth -6.5% -3.6% Recurring EBITDA 251 739 LFL growth -5.5% +1.2% › Softening cement demand post elections in Mexico › Weaker cement volumes in Ecu
Slide 12: Europe
Europe Further growth in Q3 CHF m Q3 2018 9M 2018 Net Sales1) 2’027 5’692 LFL growth +6.9% +4.6% Reported growth +7.7% +9.3% Recurring EBITDA 480 1’079 LFL growth +4.4% +2.7% › Positive underlying market trends across the region › Momentum continues in Eastern Europe with further growth in e.g. Roma
Slide 13: Middle East Africa
Middle East Africa Signs of stabilization in some markets in the region CHF m Q3 2018 9M 2018 Net Sales1) 772 2’306 LFL growth -1.3% -5.5% Reported growth -3.8% -9.2% Recurring EBITDA2) 200 566 LFL growth -9.8% -26.9% › Turnaround initiatives delivering first results › Signs of stabilization in Alge
Slide 14: Asia Pacific
Asia Pacific Another strong quarter for the region CHF m Q3 2018 9M 2018 Net Sales1) 1’770 5’576 LFL growth +7.0% +8.6% Reported growth -0.9% +2.1% Recurring EBITDA2) 378 1’151 LFL growth +35.0% +22.6% › Continuous momentum in China supported by prices and industrial performance › Strong Net Sales g
Slide 15: 2018 guidance and outlook
2018 guidance and outlook › Positive momentum expected to continue in Q4 with following underlying market trends › Continued growth in North America › Softer cement demand in Latin America › Strong markets in Europe › Challenging but stabilizing conditions in Middle East Africa › Continued demand gr
Slide 16: Upcoming Events
Upcoming Events › November 28, 2018: Capital Markets Day › March 7, 2019: Full-year 2018 earnings release 16
Slide 17: 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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