Holcim Ltd · SIX:HOLN
Holcim — LafargeHolcim — Investor Day (December 2015)
11 slides from Holcim's investor day presentation, Dec 1, 2015
Slide 1: LafargeHolcim Capital Markets Day 2015: Lean capital spending
LafargeHolcim Capital Markets Day 2015 Lean capital spending Urs Bleisch | Member of the Executive Committee (Performance and Cost) | December 1st, 2015
Slide 2: Capex – substantially lower Capex going forward
Capex – substantially lower Capex going forward GROWTH WITH LOWER CAPEX DEVELOPMENT CAPEX MAINTENANCE CAPEX leveraging current capacity and opportunity pursuing new asset-light model for lower spend NEW CAPEX WAY Stricter Capex management and execution, closer to strategy CAPITAL MARKETS DAY 2015 ©
Slide 3: Looking forward, targeting significantly lower capex
Looking forward, targeting significantly lower capex CHF bn • Historical Plan looking forward 2.8 - 2.9 3.5 < 2.0 (run-rate) New 2.0 Development development 1.5 è Completion of on-going projects Maintenance Maintenance Average 2016 2017 2018 2010-14 Note: Excluding integration related IT implementat
Slide 4: New capacity construction of ~14mt clinker and ~13mt grinding coming on stream
New capacity construction of ~14mt clinker and ~13mt grinding coming on stream in the next 2 years TOTAL CAPACITY CONSTRUCTION1 RAVENA VOLSK MODERNIZATION REPLACEMENT Clinker: 1.7mt Clinker: 1.4mt EXSHAW EXPANSION Clinker: 1.3mt Grinding: 1.6mt SINDRI EXPANSION ADA UPGRADE Grinding: 1.4mt Clinker: 0
Slide 5: Enough headroom to grow with market momentum without additional Capex
Enough headroom to grow with market momentum without additional Capex in a majority of markets IN PERCENT UTILIZATION IN 2014 PER COUNTRY 95 88 86 86 86 85 85 84 83 83 83 85 80 79 76 76 76 75 75 74 73 73 73 72 72 72 72 71 70 70 69 68 67 66 66 65 64 63 62 62 61 60 57 57 57 56 51 51 48 46 45 43 42 42
Slide 6: Pursuing an asset-light model
Pursuing an asset-light model CEMENT RMX PLANT RETAIL DISTRIBUTION (fixed, mobile) NETWORK • Terminals, grinding stations and • Franchise models • Franchise models logistics versus integrated plants • Licensing (VAPs) • Online sales • Cross-border optimization • "Uber" model (shared facilities • Tra
Slide 7: Specific examples of cash spend reduction through the new asset-light model
Specific examples of cash spend reduction through the new asset-light model PHILIPPINES INITIAL OPTION ASSET-LIGHT ALTERNATIVE CASH SAVINGS VERSUS INITIAL Bulacan Line 3 brownfield Debottlenecking project OPTION Bulacan plant • Phase I (Rationalization Capex): Calaca • Extension of existing asset ad
Slide 8: Maintenance Capex – structured approach to maintain assets with lower Capex
Maintenance Capex – structured approach to maintain assets with lower Capex Plant equipment More transparency Leverage ex-Holcim and ex-Lafarge best practices Mobile equipment Disciplined review Reserves Lifecycle cost optimization Target Value CAPITAL MARKETS DAY 2015 © LafargeHolcim 2015 8
Slide 9: Implementing 3rd generation maintenance at scale
Implementing 3rd generation maintenance at scale 3RD GENERATION • Big Data/digital paradigm shift: 2ND GENERATION - Condition monitoring for replacement - Predictive maintenance • Scheduled overhauls - Inventory management 1ST GENERATION • Planning and controlling systems • Adaptation to market • Co
Slide 10: Capex – substantially lower Capex going forward
Capex – substantially lower Capex going forward GROWTH WITH LOWER CAPEX DEVELOPMENT CAPEX MAINTENANCE CAPEX • Management cycle leveraging current capacity and opportunity • Governance pursuing new asset-light model for lower spend • Criteria (financial, strategic considerations, and project and mark
Slide 11: Disclaimer
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