Holcim Ltd · SIX:HOLN
Holcim — Lafarge — Q1 2015 Earnings Presentation
47 slides from Holcim's earnings presentation, Apr 30, 2015
Slide 1: 2015 First Quarter Results
© Médiathèque Lafarge - Charles Plumey-Faye - Rudy Ricciotti (architect) 2015 First Quarter Results Jean-Jacques Gauthier France, Marseille – Mucem (Museum of European & Mediterranean Civilizations) April 30, 2015
Slide 2: Disclaimer
Disclaimer This document contains forward-looking trends, targets or objectives, as the case may be, including with respect to plans, initiatives, events, products, solutions and services. Their development and potential do not constitute forecasts regarding results or any other performance indicato
Slide 3: Q1 Highlights
Q1 Highlights Solid start of the year with EBITDA up 17% supported by cost reduction, pricing and innovation actions Cost-saving and Innovation measures delivered €125M in Q1, on track with plan, and supported the solid improvement in margins Cement prices up 0.6% versus last year and up 2.7% compar
Slide 4: Significant Organic Growth
Significant Organic Growth Positive Impact on EBITDA of Cost Cutting and Innovation Measures M€ EBITDA FX and Volume Price / costs EBITDA Q1 2014 scope impact and other Q1 2015 effects 4
Slide 5: Key Figures
Key Figures 1st Quarter 2015 2014 Variation lfl (2) Volumes Cement (MT) 25.0 25.9 -4% -3% Pure aggregates (MT) 26.5 26.9 -2% - Ready-Mix Concrete (Mm3) 5.5 5.7 -5% -5% Sales 2,779 2,633 6% -1% EBITDA 403 343 17% 14% EBITDA Margin 14.5% 13.0% 150bps 180bps Current Operating Income 205 146 40% 41% Net
Slide 6: Operational Review
M. Kadri - CAPA Pictures Copyright: © Library Lafarge Operational Review Algeria, City of Algiers – Building better cities - Notre-Dame d'Afrique cable car
Slide 7: North America
North America Earnings Growth Supported by Pricing Gains and Lower Costs Volumes 2015 2014 Variation lfl Cement (MT) 1.5 1.5 1% 1% Pure aggregates (MT) 10.6 10.3 3% 9% Ready-Mix Concrete (Mm3) 0.8 0.8 -4% -1% Sales 435 376 16% 6% EBITDA (44) (62) nm nm EBITDA Margin nm nm Current Operating Income (7
Slide 8: Western Europe
Western Europe Significant Cost Reduction Driving Solid Earnings Improvement 1st Quarter Volumes 2015 2014 Variation lfl(1) Cement (MT) 2.4 2.6 -8% -8% Pure aggregates (MT) 7.1 8.2 -14% -14% Ready-Mix Concrete (Mm3) 1.6 1.8 -12% -12% Sales 457 503 -9% -10% EBITDA 57 39 46% 4% EBITDA Margin 12.5% 7.8
Slide 9: Central and Eastern Europe
Central and Eastern Europe Higher Volumes and Cost Containment 1st Quarter Volumes 2015 2014 Variation lfl Cement (MT) 1.8 1.9 -3% 5% Pure aggregates (MT) 3.6 3.3 10% 10% Ready-Mix Concrete (Mm3) 0.4 0.4 6% -3% Sales 156 173 -10% - EBITDA (10) (17) nm nm EBITDA Margin nm nm Current Operating Income
Slide 10: Middle East and Africa
Middle East and Africa Solid Market Trends Overall and Self-Help Measures 1st Quarter Volumes 2015 2014 Variation lfl(1) (2) Cement (MT) 9.9 10.5 -6% 3% Pure aggregates (MT) 2.4 2.4 1% 1% Ready-Mix Concrete (Mm3) 1.3 1.3 -3% -3% Sales 972 893 9% 2% EBITDA 259 250 4% 3% EBITDA Margin 26.6% 28.0% -140
Slide 11: Latin America
Latin America Significant Scope Impact and Soft Volumes 1st Quarter Volumes 2015 2014 Variation lfl Cement (MT) 1.4 1.9 -26% -9% Pure aggregates (MT) 0.6 0.6 3% 3% Ready-Mix Concrete (Mm3) 0.2 0.3 -32% -32% Sales 120 173 -31% -14% EBITDA 20 38 -47% -19% EBITDA Margin 16.7% 22.0% -530bps -90bps Curre
Slide 12: Asia
Asia Higher Volumes and Strict Cost Management 1st Quarter Volumes 2015 2014 Variation lfl Cement (MT) 8.0 7.5 6% 6% Pure aggregates (MT) 2.2 2.1 2% 2% Ready-Mix Concrete (Mm3) 1.2 1.1 7% 7% Sales 639 515 24% 5% EBITDA 121 95 27% 8% EBITDA Margin 18.9% 18.4% 50bps 50bps Current Operating Income 83 6
Slide 13: Positive Operational Trends also Prevail in Joint Ventures
Positive Operational Trends also Prevail in Joint Ventures EBITDA margin up 190bps like-for-like including JV Contribution 1st Quarter including the contribution Joint ventures of the joint-ventures (1) contribution (1) 2015 2014 Gross lfl (2) Pro forma Pro forma Variation 2015 2014 (1) (1) Volumes
Slide 14: Net Income
©Iwan Baan 2014 France, Paris – Fondation Louis Vuitton Net Income
Slide 15: Net Income
Net Income Higher Current Operating Profit and Lower Financial Expenses 1st Quarter €m 2015 2014 EBITDA 403 343 Depreciation (198) (197) Current Operating Income 205 146 Other income (expenses) (106) (4) Net financial costs (190) (232) Income from JV and associates (8) (11) (2) Income taxes 23 (4) N
Slide 16: Cash Flow and Debt Highlights
T. Campagne - CAPA Pictures - Jean-Paul Viguier (architect) Copyright: © Library Lafarge Cash Flow and Debt Highlights France, City of Lyon – Lyon Confluence district, in the Lyon former Docks district. Shopping center designed by architect Jean-Paul Viguier. Lafarge concrete has been used for the e
Slide 17: Cash Flow
Cash Flow Robust Operational Performance; Adverse Seasonality and Forex 1st Quarter €m 2015 2014 Cash flow from operations excluding merger costs 140 85 Merger costs (18) - Change in working capital (204) (154) Sustaining capex (59) (54) Free cash flow (141) (123) Development investments (1) (235) (
Slide 18: Outlook 2015
© Lafarge Medialibrary - Ron Saari Outlook 2015 United States - Elmwood, New Jersey – Refurbishment in Ductal, the ultra-high performance concrete of Lafarge, of the Pulaski Skyway Bridge carrying a four-lane freeway over the Passaic and Hackensack rivers linking Jersey City to Newark airport.
Slide 19: 2015 Outlook – Market Overview
2015 Outlook – Market (1) Overview Cement Volumes (%) Price Highlights Market growth, notably supported by North America 3 to 6 + positive trends in the US residential and commercial sectors Improvement expected in most markets; Western Europe 0 to 3 =/+ slight decrease in France Market growth in mo
Slide 20: 2015 Outlook – Other Elements
2015 Outlook – Other Elements EBITDA for the year 2015 between €3.0bn and €3.2bn -1% for energy cost inflation (-0.1 euro per tonne), reflecting a drop in fuel prices (petcoke and coal), partly compensated by increases in power in regulated markets Continuous focus on our Cost reduction and Innovati
Slide 21: Conclusion
Philippines – Affordable Housing Conclusion
Slide 22: Other Information: Outlook 2015 – Market Overview
© Lafarge Medialibrary - Ron Saari I. Other Information Outlook 2015 – Market Overview United States - Elmwood, New Jersey – Refurbishment in Ductal, the ultra-high performance concrete of Lafarge, of the Pulaski Skyway Bridge carrying a four-lane freeway over the Passaic and Hackensack rivers linki
Slide 23: 2015 Outlook – Market overview
2015 Outlook – Market (1) overview Cement Market Volumes Market Volumes (%) (%) North America 3 to 6 Middle East and Africa 5 to 8 United States 5 to 8 Algeria 4 to 7 Canada -1 to 2 Egypt 4 to 7 Iraq 7 to 10 Western Europe 0 to 3 Kenya 8 to 11 France -2 to 1 Morocco -1 to 2 United Kingdom 5 to 8 Nig
Slide 24: 2015 Outlook – Market overview: Aggregates and Concrete
2015 Outlook – Market overview Aggregates and Concrete Main markets North America: Market growth, notably supported by positive trends in the US residential and commercial sectors. Western Europe: Overall stabilization at a low level. Growth expected in the UK, supported by the residential sector; d
Slide 25: Scope and Foreign Exchange Effects
T. Campagne - CAPA Pictures - Jean-Paul Viguier (architect) Copyright: © Library Lafarge II. Other information Scope and Foreign Exchange Effects France, City of Lyon – Lyon Confluence district, in the Lyon former Docks district. Shopping center designed by architect Jean-Paul Viguier. Lafarge concr
Slide 26: Sales by Geographical Area
Sales by Geographical Area Scope and Foreign Exchange Effects 1st Quarter In million euros 2015 2014 Variation Scope FX effect lfl North America 435 376 16% -4% 14% 6% Western Europe 457 503 -9% 1% - -10% Central and 156 173 -10% -5% -5% - Eastern Europe Middle East and 972 893 9% -2%(1) 9% 2% Afric
Slide 27: EBITDA by Geographical Area
EBITDA by Geographical Area Scope and Foreign Exchange Effects 1st Quarter Impact of In million euros 2015 2014 Variation Scope FX effect lfl (1) one-off (1) North America (44) (62) 29% - -11% - 40% Western Europe 57 39 46% 5% - 37% 4% Central and (10) (17) 41% - 6% - 35% Eastern Europe Middle East
Slide 28: Information per Activity
© Lafarge Medialibrary - II. Other information A. Esiebo - CAPA Pictures Information per Activity Nigeria, City of Lagos
Slide 29: Cement
Cement 1st Quarter 2015 2014 Variation lfl(1) Volumes Cement (MT) 25.0 25.9 -4% -3% Sales (€m) 2,103 1,983 6% 1% EBITDA Margin 20.6% 18.4% 220bps 240bps 1st Quarter By geographical zone 2015 2014 Variation lfl(1) Sales 2,103 1,983 6% 1% North America 197 169 17% 3% Western Europe 249 266 -6% -7% Cen
Slide 30: Aggregates and Concrete
Aggregates and Concrete 1st Quarter 2015 2014 Variation lfl Sales (€m) 789 772 2% -2% EBITDA (23) (19) nm 3% EBITDA Margin nm nm 30
Slide 31: Aggregates and other related activities
Aggregates and other related activities 1st Quarter By geographical zone 2015 2014 Variation lfl Volumes Pure Aggregates (MT) 26.5 26.9 -2% - Sales 338 334 1% - Out of which Pure aggregates 320 315 2% -1% North America 137 119 15% 8% Western Europe 104 120 -13% -13% Other 79 76 4% 3% EBITDA (17) (17
Slide 32: Ready-Mix and Concrete Products
Ready-Mix and Concrete Products 1st Quarter By geographical zone 2015 2014 Variation lfl Volumes Ready-Mix (Mm3) 5.5 5.7 -5% -5% Sales 514 502 2% -3% Out of which Ready-Mix 492 483 2% -4% North America 120 104 15% 6% Western Europe 173 197 -12% -12% Other 199 182 9% -2% EBITDA (6) (2) nm nm Out of w
Slide 33: Sales variances for a selection of countries
© Lafarge Medialibrary - A. Esiebo - CAPA II. Other information Pictures Sales variances for a selection of countries Nigeria, City of Lagos
Slide 34: YTD Like-for-Like Sales Variance – Cement
YTD Like-for-Like Sales Variance – Cement Analysis by Region and Major Volume effect Other effects (1) Activity variation vs. 2014 Market as at March 31, 2015 North America 0.5% 2.3% 2.8% United States -4.1% 7.5% 3.4% Canada 5.0% -2.8% 2.2% Western Europe -5.9% -1.4% -7.3% France -7.1%(2) -2.2%(2) -
Slide 35: YTD Like-for-Like Sales Variance – Aggregates and Concrete
YTD Like-for-Like Sales Variance Aggregates and Concrete Analysis by Major Market Volume effect Other effects (1) Activity variation vs. 2014 as at March 31, 2015 Pure Aggregates 0.5% -1.3% -0.8% France -16.8% 2.9% -13.9% Poland 2.3% -3.9% -1.6% United States 7.4% -1.4% 6.0% Canada 9.9% -1.0% 8.9% S
Slide 36: Income statement
T. Campagne - CAPA Pictures - Jean-Paul Viguier (architect) Copyright: © Library Lafarge VI. Other Information France, City of Lyon – Lyon Confluence district, in the Lyon former Docks district. Shopping center designed Income statement by architect Jean-Paul Viguier. Lafarge concrete has been used
Slide 37: Other Income (Expenses)
Other Income (Expenses) 1st Quarter €m 2015 2014 Net gains (losses) on disposals 2 26 Impairment of assets (27) (6) Restructuring (21) (11) Merger-related costs (38) - Others (22) (13) Total (106) (4) 37
Slide 38: Finance Costs and Average Interest Rate
Finance Costs and Average Interest Rate 1st Quarter €m 2015 2014 Financial charges on net debt (174) (190) Foreign exchange 19 (2) Net interest cost related to pensions, bank commissions, amortization of debt issuance costs and (35) (40) other financial costs Total (190) (232) March 31, 2015 Decembe
Slide 39: Statement of Financial Position & Cash Flow Statement
© Lafarge Medialibrary - Ronnel Cuison VI. Other Information Statement of Financial Position & Cash Flow Statement Philippines - Affordable housing, colored houses in the village of Iliga
Slide 40: Statement of Financial position
Statement of Financial position March Dec. March Dec. €m €m 31, 2015 31, 2014 31, 2015 31, 2014 Capital Employed 29,083 27,403 Equity 18,486 17,289 Out of which: Out of which: Goodwill 12,026 11,360 Equity attributable to the Prop, plant & equip. 12,659 12,052 owners of the parent 16,559 15,453 comp
Slide 41: Investments and Divestments
Investments and Divestments 1st Quarter €m 2015 2014 Sustaining capital expenditures (59) (54) Development capital expenditures (176) (135) Acquisitions (1) (59) (49) Capital expenditures (294) (238) Divestments (2) 37 348 (1) Including net debt acquired and the acquisitions of ownership interests w
Slide 42: Balanced Debt Maturity Schedule
Balanced Debt Maturity Schedule Average maturity of gross debt is 3 years and 11 months As at March 31, 2015 (1) In million euros 2200 Lafarge SA short-term borrowings 2000 Lafarge SA Bonds & other MLT instruments 1800 Subsidiaries debt instruments Securitization programs 1600 1400 1200 1000 800 600
Slide 43: Gross Debt by Currency and by Source of Financing
Gross Debt (1) by Currency and by Source of Financing As at March 31, 2015 Split by source of financing (2) Split by currency (2) 9% 14% 6% 8% 13% 72% 78% EUR USD Debentures Notes / private placements Banks GBP Other Total Gross Debt (1): € 11.8Bn (1) Excluding puts on shares and derivatives instrum
Slide 44: Strong Liquidity Backed by Well Balanced Committed Credit Lines
Strong Liquidity Backed by Well Balanced Committed Credit Lines Lafarge SA committed credit lines of 3.0 billion euros with average maturity of 2.5 years €bn, as at March 31, 2015 Amount 2015 2016 2017 2018 Syndicated committed credit lines 1.5 - - 1.5 - Bilateral committed credit lines 1.5 - 0.2 0.
Slide 45: IFRS 11 on Joint Arrangements - Main Impacts
© Lafarge Medialibrary - Ronnel Cuison VII. Other Information IFRS 11 on Joint Arrangements - Main Impacts on Group Key Figures Philippines - Affordable housing, colored houses in the village of Iliga
Slide 46: IFRS 11 - New Accounting Standard on Joint Arrangements
IFRS 11 - New Accounting Standard on Joint Arrangements 1st Quarter, after Joint ventures 1st Quarter before IFRS 11 application contribution IFRS 11 application Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 (1) reported reported Pro forma Pro forma (1) Volumes Cement (MT) 25.0 25.9 4.8 5.1 29.8 3
Slide 47: Key definitions
Key definitions Amounts are generally given in million euros, and exceptions are mentioned. Variations are calculated based on amounts that include decimals, and may therefore not be totally consistent when calculated based on rounded disclosed figures. Volumes Volumes are shown by origin Group Sale