Holcim Ltd · SIX:HOLN
Holcim — LafargeHolcim — Q1 2019 Earnings Presentation
19 slides from Holcim's earnings presentation, May 15, 2019
Slide 1: Q1 2019 trading update
Q1 2019 trading update Jan Jenisch, CEO Géraldine Picaud, CFO May 15, 2019 © LafargeHolcim Ltd 2015
Slide 2: Q1 2019 Highlights: Strong start of the year
Q1 2019 HIGHLIGHTS STRONG START OF THE YEAR Strong growth in Net Sales, up 6.4% LFL Over-proportional increase in Rec EBITDA, up 20.6% LFL1 Profitability increase in all business segments Continuation of positive H2 2018 momentum Cost savings plan completed and on track to deliver the CHF 400 m on a
Slide 3: Value accretive divestments signed
NEW LEVEL OF FINANCIAL STRENGTH VALUE ACCRETIVE DIVESTMENTS SIGNED Strong valuation achieved: Divestment of Indonesia closed; Malaysia, Singapore and the Philippines signed Total Enterprise Value of USD 4.9 bn Attractive 2018 EV / Rec EBITDA multiple above 21x Financial strength: Reduction of Net De
Slide 4: Strong net sales & over-proportional Rec EBITDA growth
Q1 2019 PERFORMANCE STRONG NET SALES & OVER-PROPORTIONAL REC EBITDA GROWTH Net Sales Recurring EBITDA CHF m CHF m, pre-IFRS 16 +6.4% LFL +20.6% LFL 5’959 809 5’830 700 Q1 2018 Q1 2019 Q1 2018 Q1 2019 4
Slide 5: Volume growth in all business segments
Q1 2019 VOLUMES DEVELOPMENT VOLUME GROWTH IN ALL BUSINESS SEGMENTS M ton M m3 Europe North America LFL +6% +1% 26.2 14.2 +16% +12% Asia Pacific +5% -4% 9.6 +2% 1.8 4.6 3.4 CEM AGG RMX CEM AGG RMX 20.9 Group -9% +1% +5% +2% Middle East Africa 6.6 2.9 -2% 50.1 49.6 Latin America CEM AGG RMX -3% -10% +
Slide 6: Net sales up 6.4% LFL
Q1 2019 NET SALES BRIDGE NET SALES UP 6.4% LFL CHF m +6.4% LFL -130 5'959 5’830 +364 -105 Q1 2018 Scope LFL FX Q1 2019 +2.2% 6
Slide 7: Over-proportional recurring EBITDA growth of 20.6% LFL
Q1 2019 RECURRING EBITDA BRIDGE OVER-PROPORTIONAL RECURRING EBITDA GROWTH OF 20.6% LFL CHF m +20.6% LFL 920 +111 -21 809 +99 700 -12 +42 Q1 2018 Scope Volume Price FX Q1 2019 IFRS 16 Q1 2019 (pre-IFRS 16) over cost (pre-IFRS 16) Impact (post-IFRS 16) +15.5% 7
Slide 8: Recurring EBITDA increase in all business segments
Q1 2019 NET SALES AND RECURRING EBITDA BY SEGMENT RECURRING EBITDA INCREASE IN ALL BUSINESS SEGMENTS Cement Aggregates RMX Solutions & Products +7.5% +4.8% 4’079 +7.6% 1’223 +12.0% 813 739 +62.2% +4.0% 51 417 +225.5% 19 +118.3% 0 18% Rec. EBITDA 6% Rec. EBITDA 2% Rec. EBITDA 0% Rec. EBITDA margin (+
Slide 9: Strong global momentum
Q1 2019 REGIONAL PERFORMANCE STRONG GLOBAL MOMENTUM North America Latin America Europe Middle East Africa Asia Pacific +15.7% +4.3% +4.0% 1’703 1’745 -2.4% +22.5% 951 +4.2% 736 341 636 -1.6% +76.7% -15.8% 220 +38.1% 155 151 14 Net Sales (CHF m) Recurring EBITDA pre-IFRS 16 (CHF m) % LFL growth / dec
Slide 10: North America: Good start of the year
NORTH AMERICA GOOD START OF THE YEAR CHF m Q1 2019 % LFL Net Sales1 951 +9.7% +4.0% Recurring EBITDA 14 +76.1% +38.1% pre-IFRS 16 Recurring EBITDA 46 post-IFRS 16 Good cement volumes Strong order book, several multi-year construction contracts awarded Further progressing on cost savings program Aggr
Slide 11: Latin America: Resilient performance in a softer market
LATIN AMERICA RESILIENT PERFORMANCE IN A SOFTER MARKET ENVIRONMENT CHF m Q1 2019 % LFL Net Sales1 636 -7.4% +4.2% Recurring EBITDA 220 -6.7% -1.6% pre-IFRS 16 Recurring EBITDA 227 post-IFRS 16 Effective price management and cost savings nearly offsetting challenges in key countries Ongoing recovery
Slide 12: Europe: Very good results
EUROPE VERY GOOD RESULTS CHF m Q1 2019 % LFL Net Sales1 1’703 +12.2% +15.7% Recurring EBITDA 155 +72.9% +76.7% pre-IFRS 16 Recurring EBITDA 188 post-IFRS 16 Early start of construction season Strong volume growth in all business segments and good pricing Margin growth further supported by improved o
Slide 13: Middle East Africa: Challenging but stabilizing conditions
MIDDLE EAST AFRICA CHALLENGING BUT STABILIZING MARKET CONDITIONS CHF m Q1 2019 % LFL Net Sales1 736 -1.9% -2.4% Recurring EBITDA2 151 -14.5% -15.8% pre-IFRS 16 Recurring EBITDA 171 post-IFRS 16 Stabilizing markets in the region Turnaround plans in several countries delivering visible results Change
Slide 14: Asia Pacific: Continuation of strong momentum
ASIA PACIFIC CONTINUATION OF STRONG MOMENTUM CHF m Q1 2019 % LFL Net Sales1 1’745 -5.0% +4.3% Recurring EBITDA2 341 +14.0% +22.5% pre-IFRS 16 Recurring EBITDA 356 post-IFRS 16 Strong cement demand in India, progressive price improvement in most markets Higher profitability in Australia and the Phili
Slide 15: Outlook 2019: Solid global market demand expected to continue
OUTLOOK 2019 SOLID GLOBAL MARKET DEMAND EXPECTED TO CONTINUE NORTH AMERICA Continued market growth LATIN AMERICA Softer but stabilizing cement demand EUROPE Continued demand growth across most countries MIDDLE EAST AFRICA Challenging but stabilizing market conditions ASIA PACIFIC Continued demand gr
Slide 16: Targets 2019 confirmed
TARGETS 2019 TARGETS 2019 CONFIRMED Net Sales growth of 3% to 5% LFL, delivering target of Strategy 2022 Recurring EBITDA growth1 of at least 5% LFL, delivering target of Strategy 2022 Accelerate deleveraging, achieve 2 times or less Net Debt to Recurring EBITDA ratio by end of 20192 Continue improv
Slide 17: Upcoming events 2019
UPCOMING EVENTS 2019 May 15, 2019: Annual General Meeting June 25, 2019: Payment of the dividend and delivery of the new shares July 31, 2019: Earnings release half year 2019 October 25, 2019: Q3 2019 trading update 17
Slide 18: 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.
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