Holcim Ltd · SIX:HOLN
Holcim — LafargeHolcim — Investor Day (December 2015)
16 slides from Holcim's investor day presentation, Dec 1, 2015
Slide 1: LafargeHolcim Capital Markets Day 2015: Commercial excellence and transformation
LafargeHolcim Capital Markets Day 2015 Commercial excellence and transformation Gérard Kuperfarb | Member of the Executive Committee | December 1st, 2015
Slide 2: Commercial excellence: drive margin and growth
Commercial excellence: drive margin and growth 1. DELIVERING GROWTH/MARGIN SYNERGIES (CHF 220M) 2. ENHANCING GO-TO-MARKET MODELS AND DIFFERENTIATED OFFERINGS ~ share of total sales RETAIL BUILDING & INFRASTRUCTURE SPECIALTY SMALL/MID SIZE SOLUTIONS PROJECTS i.e., bag market e.g., bulk market e.g., p
Slide 3: Decisive action underway for each of the priorities: CHF 30m already delivered
Decisive action underway for each of the priorities: CHF 30m already delivered Synergy levers > CHF 120m value of customer action plans • Margin already defined management >1,000 Sales and marketing team members working on best practices synergy capture and optimization • Replication (cross- >20 cou
Slide 4: Pricing best practices and optimization with potential to contribute ~CHF 60m EBITDA by 2016
Pricing best practices and optimization with potential to contribute ~CHF 60m EBITDA by 2016 (run-rate) PRIORITY PRICING LEVERS Targeted pricing strategies by customer segments and micro markets • Enhanced pricing capabilities for short term impact and sustainable approach Wave 1 • >1,500 actions id
Slide 5: Action plans in place for cement cross-selling in first 13 countries
Action plans in place for cement cross-selling in first 13 countries with EBITDA of CHF 28m in 2016 UNITED STATES 3 1 Sparrows Point Ex-Lafarge Grinding Station Joppa 2 Ex-Lafarge plant Holy Hill 4 Ex-Holcim plant Reaching markets where ex-Lafarge had presence with Additional cementitious volumes by
Slide 6: Action plans in place for RMX cross-selling in first 8 countries
Action plans in place for RMX cross-selling in first 8 countries with EBITDA of CHF 8m > CHF 8M VALUE OF ACTION PLANS ALREADY DEFINED SELECTED PRODUCTS WITH DISTINCT ADVANTAGES AND GLOBAL CROSS-SELLING OPPORTUNITY Ultra High Concrete flooring Fast setting concrete Insulating concrete Performance sol
Slide 7: Ongoing actions of pricing optimization and cross-selling delivering CHF 220m synergies
Ongoing actions of pricing optimization and cross-selling at the center of delivering CHF 220m of growth/margin synergies EXPECTED P&L IMPACT SYSTEMATIC TRACKING CHF1 million OF GROWTH SYNERGIES with same rigor as cost synergies è 220 220 ACCELERATED SCALE-UP OF PROVEN END-USER CONCEPTS across LH co
Slide 8: In Retail, potential identified to transfer proven concepts to about 40 countries by 2018
In Retail, potential identified to transfer proven concepts to about 40 countries by 2018 APPLYING “FMCG” MINDSET AND METHODOLOGY Implement best-in- WHOLESALERS TRADERS è class go to market Key distribution partnerships approaches DISTRIBUTOR è Differentiated customer experience RETAIL STORES MEGAST
Slide 9: Retail – differentiated initiatives creating end-user pull, delivering volume growth and price premium
Retail – differentiated initiatives creating end-user pull, delivering volume growth and price premium COMMERCIAL BRANDING INNOVATIVE PACKAGING LOYALTY PROGRAMS INDIA FRANCE MEXICO Differentiated product with Unique bag more resistant to Loyalty program implemented premium branding consistently rain
Slide 10: Retail – new retail store concepts and disintermediation increasing customer loyalty
Retail – new retail store concepts and disintermediation increasing customer loyalty and creating new revenue streams BATISTORE BATIPRO ALGERIA MOROCCO New concept of one stop store for small & mid-size First network in distribution of building materials contractors in a fragmented, non-organized di
Slide 11: Infrastructure – creating and capturing additional value through early project involvement
Infrastructure – creating and capturing additional value through early project involvement and integrated offerings OVERALL PLANNING & PROGRAM STRONG è • International key account management PARTNERSHIPS PRELIMINARY DESIGN PROJECT AWARD • Understanding of sector ecosystems PROCESS SECTOR • Early inv
Slide 12: Infrastructure – executing systematically new go-to-market approach allowing for a premium
Infrastructure – executing systematically new go-to-market approach allowing for a significant premium ROADS TRANSPORT (EG. RAILWAYS) MINING OPERATIONS MAJOR ENERGY PROJECTS S8 POLISH PROJECT WITH WORKING WITH CHINESE FROM CANADA TO NEWER WORKING WITH KOREAN SPANISH CONTRACTOR CONTRACTOR IN KENYA MA
Slide 13: Long term innovation pipeline with sizeable EBITDA potential
Long term innovation pipeline with sizeable EBITDA potential AMBITIOUS INNOVATION … POWERED BY DISTINCTIVE PIPELINE … PRODUCT DEVELOPMENTS IP protected and consumer tested INITIAL EBITDA Solidia technology that step POTENTIAL OF CementTM changes economics è CHF 35M IDENTIFIED of CO2 emissions and IN
Slide 14: Next level pricing and salesforce excellence as a key lever
Next level pricing and salesforce excellence as a key lever to deliver EBITDA improvement WHAT WE ARE DOING ON PRICING … … AND SALESFORCE EXCELLENCE Pricing manager Sales people assessment in each country Rigorous pricing Sales training on best-practice improvement targets approach and joint portfol
Slide 15: In summary – delivery of growth/margin synergies with upside through commercial excellence
In summary – delivery of growth/margin synergies with upside through commercial excellence at scale ON TRACK TO DELIVER NEW APPROACH FOR GROWTH/MARGIN NUMEROUS HIGH MORE EFFECTIVE SIGNIFICANT FURTHER SYNERGIES IMPACT LOCAL CASES GLOBAL SCALE UP UPSIDE OVER TIME CHF 220m by end 2017 Identified numero
Slide 16: 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.