Holcim Ltd · SIX:HOLN
Holcim — LafargeHolcim — Q3 2019 Earnings Presentation
20 slides from Holcim's earnings presentation, Oct 25, 2019
Slide 1: Q3 2019 Trading update
Q3 2019 Trading update Jan Jenisch, CEO Géraldine Picaud, CFO October 25, 2019 © LafargeHolcim Ltd 2015
Slide 2: Another strong quarter
Q3 2019 HIGHLIGHTS ANOTHER STRONG QUARTER Net Sales up 4.0%, Recurring EBITDA 1 up 9.0% LFL in 9M Net Sales up 4.9%, Recurring EBITDA 1 up 6.4% LFL in Q3 Fifth consecutive quarter of over-proportional growth of Recurring EBITDA 1 over Net Sales 2019 targets confirmed Appointment of Chief Sustainabil
Slide 3: Strengthening our leadership on sustainability
Q3 2019 HIGHLIGHTS STRENGHTENING OUR LEADERSHIP ON SUSTAINABILITY Appointment of the first Chief Sustainability Officer to the Executive Committee Project launched to improve carbon efficiency in Q3 allocation of CHF 160 m to reduce carbon footprint in Europe commitment to reduce CO2 emissions in Eu
Slide 4: Cement and aggregates volumes growth in Q3
Q3 2019 VOLUMES DEVELOPMENT CEMENT AND AGGREGATES VOLUMES GROWTH IN Q3 M ton M m3 North America Europe LFL +6% -1% 39.0 31.9 +2% Asia Pacific +11% +10% -2% 12.9 3.3 4.9 6.8 0% Group CEM AGG RMX CEM AGG RMX +3% 15.8 +22% 80.7 +1% Middle East Africa +1% 7.1 2.2 -1% 52.6 Latin America CEM AGG RMX +4% -
Slide 5: Net sales up 4.9% LFL
Q3 2019 NET SALES BRIDGE NET SALES UP 4.9% LFL CHF m +4.9% LFL 7’362 7'142 * +347 -283 -284 Q3 2018 Scope LFL FX Q3 2019 -3.0% 5 * Including divestments of Indonesia, Malaysia and Singapore
Slide 6: Over-proportional recurring EBITDA growth of 6.4% LFL
Q3 2019 RECURRING EBITDA BRIDGE OVER-PROPORTIONAL RECURRING EBITDA GROWTH OF 6.4% LFL CHF m +6.4% LFL 1’985 +104 1’867 -30* +63 -74 1'881 +55 Q3 2018 Scope Volume Price FX Q3 2019 IFRS 16 Q3 2019 (pre-IFRS 16) over cost (pre-IFRS 16) Impact (post-IFRS 16) +0.8% 6 * Including divestments of Indonesia
Slide 7: Over-proportional recurring EBITDA growth of 9.0% LFL
9M 2019 RECURRING EBITDA BRIDGE OVER-PROPORTIONAL RECURRING EBITDA GROWTH OF 9.0% LFL CHF m +9.0% LFL 4’863 -144 +320 4'543 +378 4’351 -48* +7 9M 2018 Scope Volume Price FX 9M 2019 IFRS 16 9M 2019 (pre-IFRS 16) over cost (pre-IFRS 16) Impact (post-IFRS 16) +4.4% 7 * Including divestments of Indonesi
Slide 8: Profitable growth in all business segments
Q3 2019 NET SALES AND RECURRING EBITDA BY SEGMENT PROFITABLE GROWTH IN ALL BUSINESS SEGMENTS Cement Aggregates RMX Solutions & Products +5.9% +6.8% +1.8% 4'512 +5.8% 1'407 1'378 1'198 +3.6% 706 +3.1% 324 +1.6% +18.8% 89 90 31% Rec. EBITDA 27% Rec. EBITDA 6% Rec. EBITDA 13% Rec. EBITDA margin (+1.3pp
Slide 9: Profitable growth in all business segments
9M 2019 NET SALES AND RECURRING EBITDA BY SEGMENT PROFITABLE GROWTH IN ALL BUSINESS SEGMENTS Cement Aggregates RMX Solutions & Products +5.5% 13’294 +0.4% +3.1% 4’002 3’105 +7.9% 3'551 +2.0% +5.4% 1’702 653 +30.8% +31.6% 181 159 27% Rec. EBITDA 21% Rec. EBITDA 5% Rec. EBITDA 9% Rec. EBITDA margin (+
Slide 10: Net sales growth in all regions
Q3 2019 REGIONAL PERFORMANCE NET SALES GROWTH IN ALL REGIONS North America Latin America Europe Middle East Africa Asia Pacific +9.6% +5.0% +0.6% +6.9% +2.2% 2’109 +7.0% 2'040 1'461 713 697 642 +7.1% +17.6% 491 +3.0% 394 -6.6% 224 163 Net Sales (CHF m) Recurring EBITDA pre-IFRS 16 (CHF m) % LFL grow
Slide 11: North America: Strong catch up in Q3
NORTH AMERICA STRONG CATCH UP IN Q3 CHF m Q3 2019 9M 2019 Net Sales1 2’109 4’755 LFL Growth +9.6% +5.7% Recurring EBITDA pre-IFRS 16 697 1’192 LFL Growth +6.9% +4.4% Recurring EBITDA post-IFRS 16 736 1’296 Catch up in the US with strong volumes growth in all business segments Positive price momentum
Slide 12: Latin America: Performance stabilization
LATIN AMERICA PERFORMANCE STABILIZATION CHF m Q3 2019 9M 2019 Net Sales1 642 1’973 LFL Growth +7.0% +4.4% Recurring EBITDA pre-IFRS 16 224 669 LFL Growth +3.0% -1.7% Recurring EBITDA post-IFRS 16 232 693 Softer markets in Mexico and Ecuador Good performance in Colombia, cement volumes growth in Braz
Slide 13: Europe: Continuing momentum
EUROPE CONTINUING MOMENTUM CHF m Q3 2019 9M 2019 Net Sales1 2’040 5’836 LFL Growth +5.0% +6.4% Recurring EBITDA pre-IFRS 16 491 1’170 LFL Growth +7.1% +12.6% Recurring EBITDA post-IFRS 16 522 1’263 Good market demand across the region Further margin improvement driven by effective price management a
Slide 14: Middle East Africa: Turnaround mitigating challenges
MIDDLE EAST AFRICA TURNAROUND MITIGATING CHALLENGES IN THE REGION CHF m Q3 2019 9M 2019 Net Sales1 713 2’189 LFL Growth +2.2% +0.9% Recurring EBITDA2 pre-IFRS 16 163 490 LFL Growth -6.6% -6.6% Recurring EBITDA2 post-IFRS 16 177 544 Good progress in turnaround initiatives Ongoing challenging market c
Slide 15: Asia Pacific: Strong margin improvement
ASIA PACIFIC STRONG MARGIN IMPROVEMENT IN THE REGION CHF m Q3 2019 9M 2019 Net Sales1 1’461 4’879 LFL Growth +0.6% +1.6% Recurring EBITDA2 pre-IFRS 16 394 1’254 LFL Growth +17.6% +17.5% Recurring EBITDA2 post-IFRS 16 404 1’289 Good progress in India driven by prices and increasing efficiencies, desp
Slide 16: Outlook 2019: Solid global market demand expected to continue
OUTLOOK 2019 SOLID GLOBAL MARKET DEMAND EXPECTED TO CONTINUE NORTH AMERICA Continued market growth LATIN AMERICA Softer but stabilizing cement demand EUROPE Continued demand growth across most countries MIDDLE EAST AFRICA Challenging market conditions ASIA PACIFIC Continued demand growth 16 • 16
Slide 17: Targets 2019 confirmed
TARGETS 2019 TARGETS 2019 CONFIRMED Net Sales growth of 3% to 5% LFL, delivering target of Strategy 2022 Recurring EBITDA growth1 of at least 5% LFL, delivering target of Strategy 2022 Over-achievement of deleveraging target, well below 2 times Net Debt to Recurring EBITDA ratio by end of 20192 Sign
Slide 18: Upcoming events 2020
UPCOMING EVENTS 2020 February 27, 2020: Full year 2019 earnings release April 30, 2020: Q1 2020 trading update May 12, 2020: Annual General Meeting 18
Slide 19: 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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