Amrize Ltd · NYSE:AMRZ
Amrize — Q1 2020 Earnings Presentation
18 slides from Amrize's earnings presentation, Apr 30, 2020
Slide 1: Q1 2020 Trading Update
Title picture to be changed Q1 2020 JAN JENISCH CEO TRADING UPDATE GÉRALDINE PICAUD CFO April 30, 2020 © LafargeHolcim Ltd 2015
Slide 2: Resilient Q1 2020 results amid COVID-19 impact
Q1 2020 KEY DEVELOPMENTS RESILIENT Q1 2020 RESULTS AMID COVID-19 IMPACT Early priorities on health measures for employees, partners and communities Resilient results despite COVID-19 outbreak in China in January; other key markets disrupted as of mid-March -3.3% LFL in Net Sales, -2.6% LFL in Recurr
Slide 3: Strong volume growth in North America
Q1 2020 VOLUMES DEVELOPMENT STRONG VOLUME GROWTH IN NORTH AMERICA -3% +12% LFL GROUP1 M ton -2% M m3 -11% +8% +5% 9.3 25.5 4.1 +1% 3.6 15.9 1.9 CEM AGG RMX -5% CEM AGG RMX -5% Europe North America -12% -6% -9% -44% -23% 44.9 49.1 9.8 8.4 1.0 0.7 -4% -4% CEM AGG RMX CEM AGG RMX 15.8 5.6 2.1 +35% -17%
Slide 4: Net sales decrease of 3.3% LFL
Q1 2020 NET SALES BRIDGE NET SALES DECREASE OF 3.3% LFL -3.3% LFL 5’959 -168 1 -191 -307 5’293 Q1 2019 Scope LFL FX Q1 2020 -11.2% 1 Including divestments of Indonesia, Malaysia and Singapore CHF M 4
Slide 5: Resilient recurring EBIT, slight decrease of 2.6% LFL
Q1 2020 RECURRING EBIT BRIDGE RESILIENT RECURRING EBIT, SLIGHT DECREASE OF 2.6% LFL -2.6% LFL 305 -13 1 -44 +12 -22 262 +136 -110 Q1 2019 Scope Volume Price over cost JVs contribution Depreciation FX Q1 2020 & Leases -14.1% 1 Including divestments of Indonesia, Malaysia and Singapore CHF M 5
Slide 6: North America: strong volume growth and solid performance
NORTH AMERICA STRONG VOLUME GROWTH AND SOLID PERFORMANCE Q1 2020 Q1 2019 LFL CHF M Net Sales1 1’019 951 +10.0% Recurring EBIT -76 -114 +31.5% 1 Net Sales to external customers → Strong volume growth in all business segments → Solid operational performance → Minor impact from COVID-19 in the quarter
Slide 7: Latin America: resilient performance
LATIN AMERICA RESILIENT PERFORMANCE Q1 2020 Q1 2019 LFL CHF M Net Sales1 565 636 -0.5% Recurring EBIT 159 176 -2.7% 1 Net Sales to external customers → Solid performance of Mexico → Brazil, Argentina, Ecuador and Colombia impacted by COVID-19 lockdown measures since mid-March → Resilient recurring E
Slide 8: Europe: solid results despite disruptions in key markets
EUROPE SOLID RESULTS DESPITE DISRUPTIONS IN KEY MARKETS Q1 2020 Q1 2019 LFL CHF M Net Sales1 1’569 1’703 -3.9% Recurring EBIT 27 22 +9.3% 1 Net Sales to external customers → Good market growth in Eastern Europe, resilient performance in Switzerland and Germany → Volumes in France, UK and Spain impac
Slide 9: Middle East Africa: over-proportional increase of rec EBIT
MIDDLE EAST AFRICA OVER-PROPORTIONAL INCREASE OF REC EBIT Q1 2020 Q1 2019 LFL CHF M Net Sales1 650 736 -7.2% Recurring EBIT2 74 75 +3.3% 1 Net Sales to external customers 2 Contribution from share of net income from JVs: CHF 14 m in Q1 2020 vs. CHF 18 m in Q1 2019 → Solid performance in Nigeria, Alg
Slide 10: Asia Pacific: performance impacted by COVID-19 outbreak
ASIA PACIFIC PERFORMANCE IMPACTED BY COVID-19 OUTBREAK Q1 2020 Q1 2019 LFL CHF M Net Sales1 1’327 1’745 -9.2% Recurring EBIT2 169 243 -20.7% 1 Net Sales to external customers 2 Contribution from share of net income from JVs: CHF 32 m in Q1 2020 vs. CHF 78 m in Q1 2019 → China significantly impacted
Slide 11: Financial strength: credit ratings confirmed, strong liquidity secured
FINANCIAL STRENGTH CREDIT RATINGS CONFIRMED, STRONG LIQUIDITY SECURED STRONG LIQUIDITY STRONG BALANCE SHEET → CHF 8 bn of cash and unused committed credit lines → NFD / Recurring EBITDA of 1.5x as of end of 2019 → All credit lines without financial covenants and material → Maturities 2020-2021 well
Slide 12: Action plan Health, Cost & Cash in full execution
COVID-19 ACTION PLAN “HEALTH, COST & CASH” IN FULL EXECUTION HEALTH COST CASH Safeguard the Reduction in fixed cost by CHF Reduction of CAPEX by at least CHF Health and Safety of our staff, partners and communities 300million 400million In 2020 Compared to 2019 Early establishment of Business Realiz
Slide 13: Outlook 2020: well positioned to weather the crisis
OUTLOOK 2020 WELL POSITIONED TO WEATHER THE CRISIS Early implementation and execution of action plan “HEALTH, COST & CASH” Reduction of fixed costs by CHF 300 m, reduction of CAPEX by at least CHF 400 m, reduction of NWC1 Strong balance sheet with NFD / Recurring EBITDA of 1.5x as of end of 2019 Str
Slide 14: Upcoming events 2020
UPCOMING EVENTS 2020 MAY 12, 2020 Annual General Meeting JULY 30, 2020 Half-Year 2020 Results OCTOBER 30, 2020 Q3 2020 Trading Update 14
Slide 15: Appendix
APPENDIX 15
Slide 16: Q1 2019 recurring EBIT by region
Q1 2019 RECURRING EBIT BY REGION Middle East Corporate & Asia Pacific Europe Latin America North America Group CHF M Africa Trading Recurring EBITDA 356 188 227 171 46 -68 920 Depreciation of right of use assets -18 -32 -7 -18 -30 -3 -107 Recurring EBITDA after lease 339 156 220 153 16 -71 813 D&A P
Slide 17: Disclaimer
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