Holcim Ltd · SIX:HOLN
Holcim — Merger or Acquisition (January 2021)
38 slides from Holcim's merger presentation, Jan 7, 2021
Slide 1: Acquisition of Firestone Building Products
Picture: Apple Park, Cupertino, California, USA Product: RubberGard EPDM, Solar roof Acquisition of Firestone Building Products A milestone in the transformation of LafargeHolcim JAN JENISCH CEO © LafargeHolcim Ltd 2015 January 7, 2021
Slide 2: Agenda
AGENDA AGENDA ACQUISITION OF FIRESTONE ACQUISITION BUILDINGBUILDING OF FIRESTONE PRODUCTS PRODUCTS 01 THE TRANSACTION 02 FIRESTONE BUILDING PRODUCTS 03 FLAT ROOFING SYSTEMS MARKET 04 STRATEGIC RATIONALE & SYNERGIES 05 FINANCIAL IMPACT 06 SUMMARY 07 ANNEX 2
Slide 3: The Transaction
PICTURE? Picture: McLaren Technology Center, UK Product: RubberGard EPDM, Fully Adhered system 01 THE TRANSACTION © LafargeHolcim Ltd 2015
Slide 4: Acquisition of Firestone Building Products: A milestone in the transformation of LafargeHolcim
ACQUISITION OF FIRESTONE BUILDING PRODUCTS A MILESTONE IN THE TRANSFORMATION OF LAFARGEHOLCIM A milestone in our ambition to be “The Global Leader in Innovative and Sustainable Building Materials and Solutions” A new growth and innovation platform in the attractive market segment for flat roofin
Slide 5: Acquisition of Firestone Building Products: The Transaction
ACQUISITION OF FIRESTONE BUILDING PRODUCTS THE TRANSACTION Market and technology leader in flat roofing products and systems in the USA Company 15 Manufacturing facilities, 1’800 Distribution points, 3 R&D laboratories Overview 2020F Net Sales of USD 1.8 billion, EBITDA USD 270 million, EBIT U
Slide 6: Firestone Building Products
PICTURE? Picture: Etihad Museum, UAE Product: UltraPly TPO, Mechanically attached system 02 FIRESTONE BUILDING PRODUCTS © LafargeHolcim Ltd 2015
Slide 7: Leader in roofing systems in the No.1 building materials market
FIRESTONE BUILDING PRODUCTS LEADER IN ROOFING SYSTEMS IN THE NO.1 BUILDING MATERIALS MARKET Firestone Building Products Owned by Bridgestone is the market and technology Corporation since 1989, the world’s leader in roofing products and biggest tire and rubber company stock systems in the USA listed
Slide 8: The leader in system selling
FIRESTONE BUILDING PRODUCTS THE LEADER IN SYSTEM SELLING Example of Flat Roofing System Firestone supplies the full system from membrane, insulation to adhesives and vapor barriers Specification and supply of entire system is a winning differentiator System selling supported by design Primer s
Slide 9: Geographic focus on US market with significant potential to globalize
FIRESTONE BUILDING PRODUCTS GEOGRAPHIC FOCUS ON US MARKET WITH SIGNIFICANT POTENTIAL TO GLOBALIZE THE BUSINESS Net Sales 2020F (USD 1.8 billion) - by region - Others Europe 5% 8% 87% United States 9 Picture: Nike Headquarter, Oregon, USA
Slide 10: Leading US production and distribution footprint
FIRESTONE BUILDING PRODUCTS LEADING US PRODUCTION & DISTRIBUTION FOOTPRINT → 15 state of the art manufacturing facilities worldwide, 13 in the USA, 2 in Europe → 4 distribution centers servicing 1’800 distribution points in the US market → Full in-house manufacturing of waterproofing membranes and i
Slide 11: Roofing mega trends
ROOFING MEGA TRENDS FIRESTONE’S PRODUCTS MAKING URBAN AREAS AND MEGA CITIES MORE SUSTAINABLE Build Greener Build Cooler Build Solar Green roof on the Chicago city hall, Chicago Both New York City and Los Angeles promote San Francisco became the first major city to has more green roofs than any other
Slide 12: Industry leading R&D resources and innovations
FIRESTONE BUILDING PRODUCTS INDUSTRY LEADING R&D RESOURCES AND INNOVATIONS Industry leading R&D capabilities with 3 Technical Centers in Waukesha (Wisconsin), Fishers (Indiana) and Brussels (Belgium) Latest breakthrough products include fully self-adhered membrane systems and fire resistant insu
Slide 13: Leader in one of the most attractive market segments
FIRESTONE BUILDING PRODUCTS LEADER IN ONE OF THE MOST ATTRACTIVE MARKET SEGMENTS Focused on the growing flat roofing systems market Leading brand based on innovation, IP, product certifications and warranty systems Sustainability leader with green, solar and cool roofs 60% of sales in the re
Slide 14: Flat Roofing Systems Market
Picture: Les Trèfles school, Belgium Product: UltraPly TPO, Green Roof 03 FLAT ROOFING SYSTEMS MARKET © LafargeHolcim Ltd 2015
Slide 15: A USD billion addressable market globally
FLAT ROOFING SYSTEMS MARKET A USD 50 BILLION ADDRESSABLE MARKET GLOBALLY Global market for Flat Roofing Systems Global market for Flat Roofing Systems - by technology - - by region - Europe Assembly Components 15% Bituminous 25% Middle East Africa Membrane 32% 4% 27% North America 31% Roofing Insula
Slide 16: A fragmented market with opportunities for consolidation
FLAT ROOFING SYSTEMS MARKET A FRAGMENTED MARKET WITH OPPORTUNITIES FOR CONSOLIDATION Global market for Flat Roofing Systems - market shares by company - No. 1 Company → Firestone Building Products is the market 7% No. 2 Company leader in the USA 6% No. 3 Company 6% No.4 Firestone → Globally Fireston
Slide 17: Above market growth in flat and single-ply roofing systems
ROOFING SYSTEMS MARKET ABOVE MARKET GROWTH IN FLAT & SINGLE-PLY ROOFING SYSTEMS Growth in Roofing Systems (%) → Global Roofing systems are expected to CAGR grow by 2-3% p.a. 4 - 5% → Flat Roofing Systems are growing over- proportionally driven by the mega trends CAGR 3 - 4% → Accelerated growth in S
Slide 18: Very attractive market segment with above market growth
FLAT ROOFING SYSTEMS MARKET VERY ATTRACTIVE MARKET SEGMENT WITH ABOVE MARKET GROWTH AND STRONG MARGINS Above-market growth for flat roofing systems through → Access to growing and resilient demand in repair and refurbishment applications → Improved demand and regulations for thermal performance an
Slide 19: Strategic Rationale & Synergies
Picture: Pamplona Art Museum, Spain Product: RubberGard EPDM, Ballasted system 04 STRATEGIC RATIONALE & SYNERGIES © LafargeHolcim Ltd 2015
Slide 20: A milestone in the transformation of LafargeHolcim
A MILESTONE IN THE TRANSFORMATION OF LAFARGEHOLCIM OUR AMBITION IS TO BECOME THE GLOBAL LEADER IN FLAT ROOFING SYSTEMS Roofing offers above market growth and value selling through continuous innovation, branding, system selling and access to resilient repair and refurbishment markets Highly compleme
Slide 21: Highly complementary and synergistic
HIGHLY COMPLEMENTARY AND SYNERGISTIC SYNERGIES OF USD 110 MILLION DEFINED Market leaders with complementary access to key projects, key owners and specifiers for buildings and infrastructure Complementary distribution channels in the US Revenue Leverage LafargeHolcim’s leadership position in E
Slide 22: Significant revenue synergies in the US
HIGHLY COMPLEMENTARY AND SYNERGISTIC SIGNIFICANT REVENUE SYNERGIES IN THE US TWO BUILDING MATERIAL MARKET LEADERS! MORE PROJECTS, MORE VALUE !! VAST CONCRETE SUSTAINABLE → Market leaders with complementary FLOORS access to key projects, key owners and specifiers for buildings and infrastructure #1 i
Slide 23: Significant cost synergies in the US
HIGHLY COMPLEMENTARY AND SYNERGISTIC SIGNIFICANT COST SYNERGIES IN THE US FOCUSED ON TWO BUILDING MATERIAL MARKET LEADERS! THE CHALLENGES TOGETHER !! → Significant opportunity for operational optimization in both manufacturing and logistics with combined organization #1 in cement → Material Cost opp
Slide 24: A new growth profile in the most attractive US market
A MILESTONE IN THE TRANSFORMATION OF LAFARGEHOLCIM A NEW GROWTH PROFILE IN THE MOST ATTRACTIVE US MARKET Net Sales – US - by business segments - Solutions & Products Solutions & Products 10% Ready Mix Cement 37% Concrete 18% With 37% Cement 53% Firestone 18% 13% Aggregates Ready Mix 13% Concrete Agg
Slide 25: Accelerated expansion in Europe
ACCELERATED EXPANSION IN EUROPE LEVERAGE ON LAFARGEHOLCIM’S LEADERSHIP POSITION Firestone Overseas EPDM plant → Firestone has limited footprint in Firestone Overseas Polyiso plant Firestone Sales offices, Technical Center Europe with net sales of USD 139 LafargeHolcim presence million in a market of
Slide 26: Expansion in Latin America
EXPANSION IN LATIN AMERICA LEVERAGE ON LAFARGEHOLCIM’S LEADERSHIP POSITION TO ROLL OUT FIRESTONE PRODUCTS → Firestone has an international office in Brazil only → Firestone’s Liquid applied membrane range of products (GACO) is the ideal technology for Latin American countries → LafargeHolcim provide
Slide 27: Financial Impact
Picture: Encon, Belgium Product: RubberGard EPDM, Green Roof / Ballasted Roof 05 FINANCIAL IMPACT © LafargeHolcim Ltd 2015
Slide 28: Key transaction parameters
ACQUISITION OF FIRESTONE BUILDING PRODUCTS KEY TRANSACTION PARAMETERS 100% of the business to be acquired Acquisition EV Debt free, Cash free, at USD 3.4 billion Price Payable at closing, no deferred payment Estimated 2020 Firestone Buildings Products EBITDA: USD 270 million 2020 EBITDA Sy
Slide 29: Summary
Picture: Eishalle Ice Rink, Germany Product: UltraPly TPO , Mechanically attached system 06 SUMMARY © LafargeHolcim Ltd 2015
Slide 30: Acquisition of Firestone Building Products: A milestone in the transformation of LafargeHolcim
ACQUISITION OF FIRESTONE BUILDING PRODUCTS A MILESTONE IN THE TRANSFORMATION OF LAFARGEHOLCIM A milestone in our ambition to be “The Global Leader in Innovative and Sustainable Building Materials and Solutions” A new growth and innovation platform in the attractive market segment for flat roofin
Slide 31: Annex
PICTURE? Picture: Inner Mongolia Science and Technology Museum Product: UltraPly TPO , Mechanically attached system 07 ANNEX © LafargeHolcim Ltd 2015
Slide 32: Build energy efficient
BUILD ENERGY EFFICIENT GROWING DEMAND FOR ENERGY EFFICIENT SOLUTIONS DRIVEN BY INCREASING REGULATION Extended Thermal Insulation Benefits For Building Owners → Reduced energy consumption by minimizing energy loss → Provides enhanced comfort for better living → Protect the Buildings from heat, cold a
Slide 33: Build greener
BUILD GREENER INCREASING DEMAND FOR GREEN ROOFING SYSTEMS Green Roof Benefits For Building Owners → Reduced energy consumption by minimizing energy loss → Cooling Effect (by evaporation of heat) → Protects waterproofing layer against hazardous weather → Aesthetic appeal Benefits For Governing Author
Slide 34: Build cooler
BUILD COOLER INCREASING DEMAND FOR COOL ROOFING SYSTEMS Cool Roof Benefits For Building Owners → Reduced energy consumption → Cooling effect due to lower roof surface temperature → Extends longevity of membrane Benefits For Governing Authorities → Reduces Heat Island effect Picture: Carrefour St- Ma
Slide 35: Build solar
BUILD SOLAR INCREASING DEMAND AND REGULATION FOR SOLAR ROOFING SYSTEMS Solar Roof Benefits For Building Owners → Use of roof surface for generating renewable energy → Captive source of electricity Benefits For Governing Authorities → Reduces reliance on traditional power sources → Reduces peak deman
Slide 36: Build faster
BUILD FASTER SELF ADHERED SOLUTIONS REDUCE INSTALLATION TIME Self Adhered Membrane Benefits For Building Owners → Simplification of installation process → Fast installation and less workers required (approx. half of conventional method) → Reduces cost and address the shortage of skilled labor → Redu
Slide 37: Sustainability certifications
SUSTAINABILITY CERTIFICATIONS FIRESTONE PRODUCTS CONTRIBUTE TO ACHIEVE THE HIGHEST LEVEL OF LEED CERTIFICATIONS → Leadership in Energy and Environmental Design PRODUCTS AND SYSTEMS OFFERED BY FIRESTONE (LEED) is a green building rating system in the US and other parts of the world RubberGardTM EPDM
Slide 38: LafargeHolcim
Li LafargeHolcim