Holcim Ltd · SIX:HOLN
Holcim — LafargeHolcim — Investor Day (2018)
11 slides from Holcim's investor day presentation, 2018
Slide 1: Simplification & Performance
2018 Capital Markets Day Simplification & Performance Marcel Cobuz, Region Head Europe Marta Vlatchkova, Head Corporate Controlling © LafargeHolcim Ltd 2015
Slide 2: Cost disciplined operating model and corporate light structure
Simplification & Performance Cost disciplined operating model and corporate light structure Established P&L leadership and accountability for all four business segments Implementation of a simpler and country-focused operating model • Eliminated one layer of management - country focused organization
Slide 3: CHF 400 million SG&A savings on track to hit the bottom line
Simplification & Performance CHF 400 million SG&A* savings on track to hit the bottom line SG&A cost CHF, bn 0.2 Inflation 0.6 › Reduction of Corporate footprint (2 years) (offices, FTE) Gross › Two Corporate business functions savings merged 2.7 CHF 400 m net › Restructuring at countries cost savin
Slide 4: Reduction of Corporate footprint
Simplification & Performance Reduction of Corporate footprint Overall 25% reduction in FTE expected in Q1 2019 Singapore & Miami sites closed Zurich and Paris offices to be closed in Q1 2019 CHF 40 million cost reduction achieved in 9M 2018 4
Slide 5: SG&A program at Regions and Countries on track
Simplification & Performance SG&A program at Regions and Countries on track Savings plans for countries under execution and on track Optimization of 6 Regional Shared Service centers footprint and creation of 1 Global hub New IT organization and governance to be implemented • IT footprint at C
Slide 6: Internal Benchmarking
Internal Benchmarking Creating competition to foster performance culture Internal Performance ranking of country segments Example of internal RMX performance ranking Return Net Sales Growth EBITDA Growth & Rank Company Net Sales Capital Efficiency Absolute Relative Absolute Relative EBITDA ROIC (mCH
Slide 7: Global Benchmarking with Key Competitors
Global Benchmarking with Key Competitors Significant potential in closing the gap to best-in-class performance Aggregates performance EBITDA margin, % 2012 2013 2014 2015 2016 2017 Competitor 1 Competitor 3 Competitor 2 LafargeHolcim Source: LH figures from internal reporting; Competitor AGG EBITDA
Slide 8: SG&A savings on track in the USA
Simplification & Performance SG&A* savings on track in the USA SG&A reduction of ~12% 2017 Run rate 2019 *SG&A = Fixed Costs included in the Rec. EBITDA, include Sales & Marketing , Administration, Corporate Manufacturing & Logistics 8
Slide 9: SG&A savings on track in the USA
Simplification & Performance SG&A savings on track in the USA SG&A key cost reduction initiatives Significant headcount reduction • Transfer of administrative activities to Shared Service Headcount Center reduction • Streamlining of shared functional teams • Task optimization Plan to reduce 3rd part
Slide 10: 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 11: LafargeHolcim
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