Holcim Ltd · SIX:HOLN
Holcim — Q1 2024 Earnings Presentation
23 slides from Holcim's earnings presentation, Apr 25, 2024
Slide 1: Q1 2024 Trading Update
Ellinikon project in Athens, Greece, built with ECOPlanet low carbon cement Q1 2024 TRADING UPDATE JAN JENISCH – CHAIRMAN AND CEO | STEFFEN KINDLER – CFO | MILJAN GUTOVIC – CEO DESIGNATE APRIL 25, 2024
Slide 2: Highlights and Key Developments
01. HIGHLIGHTS AND KEY DEVELOPMENTS JAN JENISCH | CHAIRMAN AND CEO Wood Wharf, London, UK Built with ECOPact with construction demolition materials inside
Slide 3: Q1 2024 Highlights: Strong Start to the Year
Q1 2024 HIGHLIGHTS STRONG START TO THE YEAR Net Sales of CHF 5,586 million Strong contribution from Solutions & Products; +3.4% growth in local currency Roofing sales up 67% in local currency Over proportional recurring EBIT growth of Continued M&A execution with 5 acquisitions +17.1% in local curre
Slide 4: Growth Momentum Continues in 2024: Profitable Growth Offsetting Strong CHF
GROWTH MOMENTUM CONTINUES IN 2024 PROFITABLE GROWTH MORE THAN OFFSETTING STRONG CHF RECURRING EBIT GROWTH Q4 2023 vs Q4 2022 Q1 2024 vs Q1 2023 18.3% 17.1% 8.7% 7.8% Local Currency CHF Local Currency CHF +1.0pp margin expansion +0.9pp margin expansion Roche Towers, Basel, Switzerland Built with Holc
Slide 5: Value Accretive and Disciplined M&A
VALUE ACCRETIVE AND DISCIPLINED M&A CONTINUED M&A EXECUTION WITH 5 ACQUISITIONS, 4 DIVESTMENTS ACQUISITION OF 5 FAMILY-OWNED BUSINESSES 4 DIVESTMENTS Solutions & Products CLOSED ZinCo Tensolite Germany | Green Argentina | Precast • Uganda roofing systems • Tanzania • South Africa Aggregates & Ready-
Slide 6: Accelerating Advanced Branded Solutions, Leading in Sustainability
ACCELERATING ADVANCED BRANDED SOLUTIONS LEADING IN SUSTAINABILITY A “One-Billion” A “Two-Billion” Brand in 2023 Brand in 2023 New Salt Lake City plant 26% of Ready-Mix Net Sales Increasing capacity with state-of-the-art 26% of Cement Net Sales in Q1 2024 (Q1 2023: 16%) in Q1 2024 (Q1 2023: 16%) insu
Slide 7: Financial Highlights
02. FINANCIAL HIGHLIGHTS STEFFEN KINDLER | CHIEF FINANCIAL OFFICER Marina de Marseille, Marseille, France Built with ECOPlanet with calcined clay inside
Slide 8: Growth Momentum Continues in 2024: Continuous Increase in Profitability
GROWTH MOMENTUM CONTINUES IN 2024 CONTINUOUS INCREASE IN PROFITABILITY RECURRING EBIT GROWTH IN LOCAL CURRENCY VS PRIOR YEAR PERIOD 18.3% 17.1% 13.3% 6.9% Q2 23 Q3 23 Q4 23 Q1 24 Georgetown Residence 55 H Street, Washington, USA Built with ECOPact and contributed to the building’s 8 LEED® Platinum s
Slide 9: Q1 2024 Net Sales Bridge
Q1 2024 NET SALES BRIDGE 3.4% GROWTH IN LOCAL CURRENCY CHF m +3.4% in LC 1 5’725 192 -332 5’586 Q1 2023 Acquisitions & Divestments Organic Growth FX Q1 2024 +3.4% +0% 9
Slide 10: Q1 2024 Recurring EBIT Bridge
Q1 2024 RECURRING EBIT BRIDGE 17.1% GROWTH IN LOCAL CURRENCY CHF m +17.1% in LC -46 532 493 4 80 Q1 2023 Acquisitions & Divestments Organic Growth FX Q1 2024 +0.8% +16.3% 10
Slide 11: Q1 2024 Segment Performance
Q1 2024 SEGMENT PERFORMANCE OVER PROPORTIONAL EBIT GROWTH ACROSS ALL SEGMENTS North America Latin America Europe Asia Middle East & Africa Solutions & Products -2.3% -0.3% +24.0% +2.6% -1.3% +4.4% +23.4% +12.6% +115.4% +3.9% 1,134 35 691 252 1,595 116 874 180 1,190 56 NET SALES RECURRING EBIT % Loca
Slide 12: North America: Margin Expansion and Strong Outlook
NORTH AMERICA MARGIN EXPANSION AND STRONG OUTLOOK Q1 2024 CHF m -0.3% in LC Net Sales1 1’134 -5.8% Recurring +3.9% in LC 35 EBIT -1.8% 1 Net Sales to external customers Strong underlying market Expansion at flagship plant demand Ste. Genevieve on track Q1 impacted by fewer Strong performance shippin
Slide 13: Latin America: Record Q1 Net Sales and Margin Expansion
LATIN AMERICA RECORD Q1 NET SALES AND MARGIN EXPANSION Q1 2024 CHF m -1.3% in LC Net Sales1 691 +0.7% Recurring +4.4% in LC 252 EBIT +3.7% 1 Net Sales to external customers Record Q1 Net Sales and Nearshoring trend recurring EBIT accelerates in Mexico Strong margin of above 36% Strong pipeline of in
Slide 14: Europe: Strong Over Proportional EBIT Growth
EUROPE STRONG OVER PROPORTIONAL EBIT GROWTH Q1 2024 CHF m -2.3% in LC Net Sales1 1’595 -5.5% Recurring +23.4% in LC 116 EBIT +19.7% 1 Net Sales to external customers Record Q1 recurring EBIT 2 acquisitions in Aggregates and Construction Demolition Materials Margin expansion of 1.5pp, Strong results
Slide 15: Asia Middle East & Africa: Profitable Growth and Margin Expansion
ASIA MIDDLE EAST & AFRICA PROFITABLE GROWTH AND MARGIN EXPANSION Q1 2024 CHF m +2.6% in LC Net Sales1 874 -14.0% Recurring +12.6% in LC 180 EBIT2 -5.9% 1 Net Sales to external customers 2 Contribution from share of net income from JVs: CHF 41 m in Q1 2024 vs. CHF 43 m in Q1 2023 Profitable growth in
Slide 16: Solutions & Products: Strong Results Driven by Roofing
SOLUTIONS & PRODUCTS STRONG RESULTS DRIVEN BY ROOFING Q1 2024 CHF m +24.0% in LC Net Sales1 1’190 +18.8% Recurring +115.4% in LC 56 EBIT +102.4% 1 Net Sales to external customers Roofing sales up 67% 2 acquisitions in Europe in local currency and Latin America Profitable growth, Strong outlook for t
Slide 17: Solutions & Products: Roofing Growth Driven by Resurgent Demand
SOLUTIONS & PRODUCTS ROOFING GROWTH DRIVEN BY RESURGENT DEMAND ROOFING SYSTEMS – NET SALES1 Normalization of demand after +67% in LC destocking, Organic Net Sales growth of +38% Contribution of Duro-Last acquisition, +22% to Net Sales growth Profitable growth, margin expansion of 2.2pp New Salt Lake
Slide 18: Capital Allocation: Share Buyback Program Launched
CAPITAL ALLOCATION SHARE BUYBACK PROGRAM LAUNCHED INCREASING SHAREHOLDER RETURNS CHF 11.4 billion cash returned to shareholders between 2018 and 2024 Expected cumulative cash returned to shareholders by the end of 2024, in CHF bn 11.4 • 3rd consecutive year of dividend increase Share • Share buyback
Slide 19: Outlook and Guidance 2024
03. OUTLOOK AND GUIDANCE 2024 MILJAN GUTOVIC | CEO DESIGNATE Ellinikon project, Greece Built with ECOPlanet low-carbon cement
Slide 20: Outlook and Guidance 2024: Guidance Confirmed
OUTLOOK AND GUIDANCE 2024 GUIDANCE CONFIRMED CONTINUED MARGIN EXPANSION IN Q1 STRONG OUTLOOK FOR THE YEAR Organic Net Sales growth of above 4% Additional growth from M&A of above 2% Over proportional growth in recurring EBIT Increase in recurring EBIT margin to 18% Free Cash Flow of above CHF 3 bill
Slide 21: Upcoming Events
UPCOMING EVENTS MAY 8, 2024 Annual General Meeting JULY 26, 2024 Half Year 2024 Results OCTOBER 25, 2024 Q3 2024 Trading Update FEBRUARY 28, 2025 Full Year 2024 Results APRIL 25, 2025 Q1 2025 Trading Update 21
Slide 22: Disclaimer
DISCLAIMER By accessing this presentation (and the information contained herein), you agree to be bound by and liable for breach of the following terms and conditions: The presentation (and the information contained herein) is provided to you by Holcim Ltd (“Holcim”) and/or any of its subsidiaries o
Slide 23: Holcim
HOLCIM