Amrize Ltd · NYSE:AMRZ
Amrize — H1 2022 Earnings Presentation
29 slides from Amrize's earnings presentation, Jul 27, 2022
Slide 1: H1 2022 Results
Eight Gardens, London, UK Built with ECOPact with a 64% lower CO2 footprint H1 2022 RESULTS JAN JENISCH | CEO GÉRALDINE PICAUD | CFO JULY 27, 2022
Slide 2: Highlights and Key Developments
01. HIGHLIGHTS AND KEY DEVELOPMENTS JAN JENISCH | CHIEF EXECUTIVE OFFICER The Seattle Spheres, Amazon headquarters Built with ECOPlanet with an 80% lower CO2 footprint
Slide 3: H1 2022 Highlights: Profitable Growth Continues with Record Results
H1 2022 HIGHLIGHTS PROFITABLE GROWTH CONTINUES WITH RECORD RESULTS Record H1 with Net Sales of CHF 14’681m, Strong balance sheet growth of +16.9% and recurring EBIT of Rating upgrades to BBB+ (Standard & Poor’s) CHF 2’173 m, growth of +9.6% and Baa1 (Moody’s) Accelerated portfolio transformation Acc
Slide 4: Half Year Results: A Record Performance in H1 2022
HALF YEAR RESULTS A RECORD PERFORMANCE IN H1 2022 NET SALES RECURRING EBIT CHF bn CHF bn +16.9% +9.6% 14.7 2.17 1.98 13.3 13.1 1.67 12.6 1.38 1.19 10.7 H1 18 H1 19 H1 20 H1 21 H1 22 H1 18 H1 19 H1 20 H1 21 H1 22 NET INCOME GROUP SHARE EPS CHF bn CHF per share +48% +50% 1.30 2.14 0.88 1.28 1.43 0.77
Slide 5: Portfolio Update H1 2022: Strong Progress on Portfolio Transformation
PORTFOLIO UPDATE H1 2022 STRONG PROGRESS ON PORTFOLIO TRANSFORMATION Solutions & Products Malarkey Bolt-on acquisitions USA Roofing systems Successful closing of Malarkey FAMY France / AGG acquisition as of February 28th, 2022 General Beton SES Foam* Romania / USA RMX & AGG Roofing & Insulation solu
Slide 6: Solutions and Products Business Unit on Fast Track to 30% of Net Sales
SOLUTIONS AND PRODUCTS BUSINESS UNIT ON FAST TRACK TO REACH 30% OF TOTAL NET SALES BY 2025 NET SALES BY SEGMENT Solutions & Products 8% Aggregates 18% 24% 12% Cement 2020 H1 2022 Pro-forma1 60% 20% 2022 Ready-Mix 1 Proforma 2022 includes all acquisitions and divestments signed in 2022 on a full year
Slide 7: Roofing and Insulation Business on Track to Reach Pro-Forma Net Sales
ROOFING AND INSULATION BUSINESS ON TRACK TO REACH PRO-FORMA NET SALES OF CHF 3.5 BN IN 2022 FIRESTONE becomes MALARKEY SES FOAM* ROOFING PRODUCTS (announced on June 22) A proven growth engine in the highly Advanced energy-efficiency and bio-based The market and technology leader in profitable and gr
Slide 8: Specialty Building Solutions on Track to Reach Pro-Forma Net Sales
SPECIALTY BUILDING SOLUTIONS ON TRACK TO REACH PRO-FORMA NET SALES OF CHF 600 M IN 2022 PRB (closed on May 2) PTB Compaktuna CANTILLANA* Biggest independent specialty building A local premium mortar supplier in One of the leading specialty building solutions business in France; ideally Belgium. Solu
Slide 9: Accelerating Green Growth, Further Strengthening Our Leadership
ACCELERATING GREEN GROWTH FURTHER STRENGTHENING OUR LEADERSHIP Construction ECOPact with significant Demolition Waste Holcim ranked 1st by double digit Net Sales growth; 10% of Ready-Mix Net Sales 2.9 Mt recycled into new Vigeo in the Building materials sector products in H1 2022 with A1+ rating and
Slide 10: Financial Highlights
02. FINANCIAL HIGHLIGHTS GÉRALDINE GÉRALDINE PICAUD PICAUD | CHIEF| FINANCIAL CHIEF FINANCIAL OFFICEROFFICER Renovation of Gasholders residential development, London, UK Built with Ductal® Ultra High Performance Concrete
Slide 11: H1 2022 Performance Highlights
H1 2022 PERFORMANCE HIGHLIGHTS RECORD NET SALES AND RECURRING EBIT, STRONG MOMENTUM IN Q2 NET RECURRING EPS1 FREE CASH SALES EBIT FLOW2 CHF CHF +12.7% +16.9% LFL +5.7% +9.6% LFL 2.14 PER SHARE 275 M CHF 14’681 M CHF 2’173 M +50% -66% Q2 2022 Q2 2022 +13.6% LFL +7.0% LFL +14.6% +7.2% CHF 8’240 M CHF
Slide 12: H1 2022 Net Sales Bridge
H1 2022 NET SALES BRIDGE SIGNIFICANT NET SALES GROWTH OF 16.9% CHF m +16.9% -124 14’681 +818 +361 +1’199 12’556 -129 +12.7% LFL H1 2021 Scope LFL LFL Scope FX H1 2022 Cement, Aggregates, Ready-Mix Concrete Solutions & Products 12
Slide 13: H1 2022 Recurring EBIT Bridge
H1 2022 RECURRING EBIT BRIDGE RECORD RECURRING EBIT, STRONG GROWTH OF 9.6% CHF m +9.6% -11 2’173 +139 1’983 +19 +9 +106 -48 +26 -51 +5.7% LFL H1 2021 Scope Volume Price over cost JVs Depreciation Solutions & Solutions & FX H1 2022 LFL LFL LFL Products LFL Products scope Cement, Aggregates, Ready-Mix
Slide 14: Q2 2022 Recurring EBIT Bridge
Q2 2022 RECURRING EBIT BRIDGE RECORD RECURRING EBIT, STRONG POSITIVE PRICE OVER COST CHF m +7.2% +2 1’559 +39 1’455 +97 +68 -55 +7 -37 -17 +7.0% LFL Q2 2021 Scope Volume Price over cost JVs Depreciation Solutions & Solutions & FX Q2 2022 LFL LFL LFL Products LFL Products scope Cement, Aggregates, Re
Slide 15: H1 2022 Net Sales and Recurring EBIT by Segment
H1 2022 NET SALES AND RECURRING EBIT BY SEGMENT SIGNIFICANT INCREASE OF PROFITABILITY IN SOLUTIONS & PRODUCTS SOLUTIONS & CEMENT AGGREGATES RMX PRODUCTS CHF m 8’596 1’974 2’764 2’613 NET SALES +8.4% +5.9% +12.3% +83.6% +12.2% LFL +6.2% LFL +12.2% LFL +25.4% LFL 1’563 236 52 323 RECURRING EBIT -5.5%
Slide 16: H1 2022 Regional Performance
H1 2022 REGIONAL PERFORMANCE PROFITABLE GROWTH IN 4 OUT OF 5 REGIONS North America Latin America Europe Middle East Africa Asia Pacific +47.9% +8.7% +3.3% +15.3% +3,6% +2.4% +86.4% +6.7% +0.3% +0.8% -26.4% 4’414 709 1’464 454 4’223 470 1’190 199 3’098 525 NET SALES RECURRING EBIT % Total growth / de
Slide 17: North America
NORTH AMERICA OUTSTANDING PERFORMANCE WITH STRONG DOUBLE-DIGIT GROWTH Q2 2022 H1 2022 CHF m H1 2022 2’764 4’414 Net Sales Net Sales1 +19.8% LFL +19.0% LFL from S&P2 +33.5% +47.9% 38% 641 709 Recurring EBIT +36.2% LFL +48.7% LFL +48.1% +86.4% 1 Net Sales to external customers 2 Solutions and Products
Slide 18: Latin America
LATIN AMERICA ANOTHER QUARTER OF STRONG PROFITABLE GROWTH Q2 2022 H1 2022 CHF m 782 1’464 Net Sales1 +17.4% LFL +14.9% LFL +19.5% +15.3% 233 454 Recurring EBIT +13.8% LFL +6.9% LFL +15.5% +6.7% 1 Net Sales to external customers Good market demand, Strong pricing across the especially in Argentina an
Slide 19: Europe
EUROPE GOOD PERFORMANCE AND ABILITY TO OFFSET COST INFLATION Q2 2022 H1 2022 CHF m 2’341 4’223 Net Sales1 +11.0% LFL +13.4% LFL +4.3% +8.7% 396 470 Recurring EBIT +5.4% LFL +8.0% LFL -4.0% +0.3% 1 Net Sales to external customers Positive price over cost, Growth accelerated by bolt- ability to offset
Slide 20: Middle East Africa
MIDDLE EAST AFRICA RECURRING EBIT MARGIN EXPANSION IN Q2 Q2 2022 H1 2022 CHF m 590 1’190 Net Sales1 +12.8% LFL +14.6% LFL -1.5% +2.4% 113 199 Recurring EBIT2 +18.4% LFL +17.9% LFL +1.6% +0.8% 1 Net Sales to external customers 2 Contribution from share of net income from JVs: CHF 22 m in H1 2022 vs.
Slide 21: Asia Pacific
ASIA PACIFIC CHALLENGED BY HIGH COST INFLATION Q2 2022 H1 2022 CHF m 1’584 3’098 Net Sales1 +6.0% LFL +4.0% LFL +6.3% +3.3% 276 525 Recurring EBIT2 -33.6% LFL -26.7% LFL -32.8% -26.4% 1 Net Sales to external customers 2 Contribution from share of net income from JVs: CHF 126 m in H1 2022 vs. CHF 167
Slide 22: H1 2022 Financial Performance
H1 2022 FINANCIAL PERFORMANCE RECORD EARNINGS PER SHARE1 AT CHF 2.14, UP 50% CHF m H1 20211 H1 20221 Change Net Sales 12’556 14’681 2’125 RECURRING EBITDA after leases 2’928 3’107 179 +6% Depreciation & amortization -945 -934 11 RECURRING EBIT 1’983 2’173 190 +10% Restructuring, litigation and other
Slide 23: H1 2022 Free Cash Flow
H1 2022 FREE CASH FLOW FREE CASH FLOW OF CHF 275 M CHF m H1 2021 H1 2022 Change RECURRING EBITDA after leases 2’928 3’107 179 Right-of-use assets 176 182 6 Change in net working capital -879 -1’561 -682 Income taxes paid -328 -378 -50 Net financial expenses paid & FX -217 -225 -8 Share of profit of
Slide 24: Net Financial Debt Bridge
NET FINANCIAL DEBT BRIDGE BALANCE SHEET REMAINS STRONG CHF m +221 +135 13’365 12’438 +1’330 -2’450 +1’966 -275 NFD 1 FCF 2 FCF 2 Acquisitions / Group Non-controlling Others NFD 1 June 2021 H2 2021 H1 2022 Disposals shareholders interests June 2022 Dividends 1 Excluding hybrid bond | 2 After leases 2
Slide 25: Outlook and Guidance 2022
H1 2021 03. OUTLOOK AND GUIDANCE 2022 JAN JENISCH | CHIEF EXECUTIVE OFFICER JAN JENISCH | CHIEF EXECUTIVE OFFICER JAN JENISCH | CHIEF EXECUTIVE OFFICER Free Waldorf School, Germany Built with Elevate RubberGard EPDM roofing system
Slide 26: Outlook and Guidance 2022
OUTLOOK AND GUIDANCE 2022 PROFITABLE GROWTH TO CONTINUE, OUTLOOK UPGRADED Profitable growth to continue Net Sales growth of at least 10% LFL, Net Sales growth in CHF of at least 10% Double digit Net Sales growth in Solutions and Products, to achieve Net Sales of above CHF 5 bn Accelerated progress t
Slide 27: Upcoming Events
UPCOMING EVENTS OCTOBER 28, 2022 Q3 2022 Trading Update FEBRUARY 24, 2023 Full Year 2022 Results APRIL 21, 2023 Q1 2023 Trading Update JULY 27, 2023 Half Year 2023 Results 27
Slide 28: 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 29: Holcim
HOLCIM