Amrize Ltd · NYSE:AMRZ
Amrize — H1 2020 Earnings Presentation
31 slides from Amrize's earnings presentation, Jul 30, 2020
Slide 1: H1 2020 Results
H1 2020 JAN JENISCH CEO RESULTS GÉRALDINE PICAUD CFO July 30, 2020 © LafargeHolcim Ltd 2015
Slide 2: Highlights and Key Developments
01 HIGHLIGHTS AND KEY DEVELOPMENTS Jan Jenisch, Chief Executive Officer © LafargeHolcim Ltd 2015
Slide 3: H1 2020 Key Developments: Resilient Performance
H1 2020 KEY DEVELOPMENTS RESILIENT PERFORMANCE Early priorities on health measures for employees, partners and communities Resilient performance with Net Sales decrease of 10.8% LFL, Recurring EBIT decrease of 22.0% LFL Rapid execution of action plan “HEALTH, COST & CASH” delivering visible results
Slide 4: Net Sales Development: Full Recovery in June
H1 2020 NET SALES DEVELOPMENT FULL RECOVERY IN JUNE Group monthly Net Sales vs PY (LFL) +5% +3% +5% • Very good start of the year despite Covid-19 outbreak in China • Biggest impact of Covid-19 in April -15% -18% • Full recovery in June • Encouraging outlook for the second -37% half of 2020 Jan-20 F
Slide 5: Rapid and Agile Response to Covid-19
BUILDING A HEALTHIER WORLD TOGETHER RAPID AND AGILE RESPONSE TO COVID-19 • Rigorous global approach to prepare, monitor and respond to Covid-19 since beginning of January • Fast country implementation and accountability • Recognized best in class for rapid and effective response by International SOS
Slide 6: Health, Cost & Cash Action Plan Delivering Visible Results
AGILE AND EFFECTIVE CRISIS MANAGEMENT “HEALTH, COST & CASH” ACTION PLAN DELIVERING VISIBLE RESULTS HEALTH COST CASH Reduction in fixed costs by CHF Reduction of CAPEX by at least CHF Safeguard the Health and Safety of our staff, partners and communities 300million 400million In 2020 H1 2020 Compared
Slide 7: Leading the Way in Green Construction
FURTHER STRENGTHENING OUR LEADERSHIP IN SUSTAINABILITY LEADING THE WAY IN GREEN CONSTRUCTION #1 ESG Sustainalytics ranking in construction sector: High marks for governance, sustainable solutions & resource management Global roll-out of ECOPact green concrete: 30%-100% more sustainable than traditio
Slide 8: Half-Year 2020 Financial Results
02 HALF-YEAR 2020 FINANCIAL RESULTS Géraldine Picaud, Chief Financial Officer © LafargeHolcim Ltd 2015
Slide 9: Resilient Performance and Strong Free Cash Flow
H1 2020 PERFORMANCE HIGHLIGHTS 2 RESILIENT PERFORMANCE AND STRONG FREE CASH FLOW Recurring Recurring Net Sales EPS 3 Free cash flow 2 EBITDA 2 EBIT CHF CHF -10.8% 1 -12.8% 1 -22.0% 1 0.80 749 m per share CHF 10’693 m CHF 2’152 m CHF 1’194 m -37.1% +198% Q2 2020 Q2 2020 Q2 2020 5’400 m 1’410 m 932 m
Slide 10: Full Recovery in June in All Regions
H1 2020 NET SALES DEVELOPMENT FULL RECOVERY IN JUNE IN ALL REGIONS Monthly Net Sales vs PY (LFL) North America Latin America Europe Middle East Asia Pacific Africa Jan-20 +11% +9% +10% -6% +1% Feb-20 +15% +7% +1% 0 +3% Mar-20 +6% -16% -17% -15% -27% Apr-20 -13% -40% -33% -38% -62% May-20 -10% -29% -
Slide 11: Volumes Impacted by the Pandemic
H1 2020 VOLUMES DEVELOPMENT VOLUMES IMPACTED BY THE PANDEMIC -9% -1% LFL GROUP M ton -7% M m3 -15% -1% +2% 20.9 51.9 8.3 -6% 8.9 45.2 4.5 CEM AGG RMX -13% CEM AGG RMX Europe -21% North America -12% -60% -36% +2% -16% -16% 15.6 1.4 1.2 28.0 13.1 3.6 CEM AGG RMX 87.2 113.8 19.2 CEM AGG RMX -14% Middle
Slide 12: Net Sales Decrease of 10.8% LFL
H1 2020 NET SALES BRIDGE NET SALES DECREASE OF 10.8% LFL -10.8% LFL 13’059 -172 1 -1’390 -804 10’693 H1 2019 Scope LFL FX H1 2020 -18.1% 1 Including divestments of Indonesia, Malaysia and Singapore CHF M 12
Slide 13: Recurring EBIT Decrease of 22.0% LFL
H1 2020 RECURRING EBIT BRIDGE RECURRING EBIT DECREASE OF 22.0% LFL -22.0% LFL 1’667 -2 -82 -23 -682 -107 1’194 +424 H1 2019 Scope Volume Price over cost JVs contribution Depreciation FX H1 2020 -28.4% CHF M 13
Slide 14: Net Sales and Recurring EBIT by Segment
H1 2020 NET SALES AND RECURRING EBIT BY SEGMENT RESILIENT PERFORMANCE SOLUTIONS & CEMENT AGGREGATES RMX PRODUCTS CHF M 7’029 1’699 2’103 819 Net Sales -5.5% LFL -12.3% LFL -13.9% LFL -11.6% LFL Recurring EBITDA 1’845 242 21 40 after leases -7.9% LFL -23.1% LFL -75.7% LFL -49.2% LFL 1’131 101 -47 6 R
Slide 15: Regional Performance
H1 2020 REGIONAL PERFORMANCE REC EBIT MARGIN IMPROVEMENT IN NORTH AND LATIN AMERICA -9.4% +0.8% -18.0% +3,6% -14.8% -12.1% +19.7% -12.0% -26.2% -27.0% -29.6% 2’566 260 980 275 3’274 288 1’177 137 2’413 437 North America Latin America Europe Middle East Africa Asia Pacific NET SALES RECURRING EBIT %
Slide 16: North America
NORTH AMERICA REMARKABLE PERFORMANCE WITH REC EBIT UP 20% LFL IN H1 H1 2020 Q2 2020 H1 2020 CHF M Net Sales1 1’547 2’566 -4.4% LFL +0.8% LFL Recurring EBITDA after leases 471 523 +1.1% LFL +8.4% LFL Recurring EBIT 335 260 +2.4% LFL +19.7% LFL 1 Net Sales to external customers → Recurring EBIT margin
Slide 17: Latin America
LATIN AMERICA EXPANDING RECURRING EBIT MARGIN AMID COVID-19 H1 2020 Q2 2020 H1 2020 CHF M Net Sales1 415 980 -22.6% LFL -12.1% LFL Recurring EBITDA after leases 152 352 -17.0% LFL -9.2% LFL Recurring EBIT 116 275 -21.1% LFL -12.0% LFL 1 Net Sales to external customers → Strong contribution from Mexi
Slide 18: Europe
EUROPE IMPACTED BY COVID-19, FULL RECOVERY IN JUNE H1 2020 Q2 2020 H1 2020 CHF M Net Sales1 1’705 3’274 -13.9% LFL -9.4% LFL Recurring EBITDA after leases 392 555 -20.7% LFL -14.5% LFL Recurring EBIT 260 288 -28.2% LFL -26.2% LFL 1 Net Sales to external customers → Resilient markets in Germany, Cent
Slide 19: Middle East Africa
MIDDLE EAST AFRICA RESILIENT MARGIN AND RECOVERY IN JUNE H1 2020 Q2 2020 H1 2020 CHF M Net Sales1 527 1’177 -22.4% LFL -14.8% LFL Recurring EBITDA after leases 124 266 -27.1% LFL -15.2% LFL Recurring EBIT 2 63 137 -46.3% LFL -27.0% LFL 1 Net Sales to external customers 2 Contribution from share of n
Slide 20: Asia Pacific
ASIA PACIFIC BIGGEST DISRUPTION FROM PANDEMIC, FULL RECOVERY IN JUNE H1 2020 Q2 2020 H1 2020 CHF M Net Sales1 1’086 2’413 -26.4% LFL -18.0% LFL Recurring EBITDA after leases 360 625 -23.8% LFL -19.8% LFL Recurring EBIT 2 268 437 -34.1% LFL -29.6% LFL 1 Net Sales to external customers 2 Contribution
Slide 21: Financial Performance: EPS of CHF 0.80
H1 2020 FINANCIAL PERFORMANCE EARNINGS PER SHARE1 OF CHF 0.80 CHF M H1 2019 H1 2020 Change Before impairment & divestments Before impairment & divestments Net Sales 13’059 10’693 -2’366 RECURRING EBITDA after leases 2’673 2’152 -522 Depreciation & amortization -1’007 -958 49 RECURRING EBIT 1’667 1’1
Slide 22: Free Cash Flow: CHF 749 m, Up 198%
H1 2020 FREE CASH FLOW 2 EXCELLENT CASH GENERATION OF CHF 749 M, UP 198% CHF M H1 2019 H1 2020 Change RECURRING EBITDA after leases 2’673 2’152 -522 NWC improvement Right of use assets 205 184 -21 Days sales outstanding Change in net working capital -968 -314 653 54 Income taxes paid -344 -254 91 46
Slide 23: Net Financial Debt Bridge
NET FINANCIAL DEBT BRIDGE NET FINANCIAL DEBT DOWN CHF 2 BN VS JUNE 2019 CHF M NET DEBT reduction of CHF 1’998 m 12’650 -16% -2’767 123 29 10’652 1’224 -749 142 NFD 1 FCF 2 FCF 2 Disposals / Group Non-controlling Others NFD 1 June 2019 H2 2019 H1 2020 acquisitions shareholders interests June 2020 Div
Slide 24: Financial Strength: Credit Ratings and Liquidity
FINANCIAL STRENGTH CREDIT RATINGS CONFIRMED, STRONG BALANCE SHEET & LIQUIDITY STRONG LIQUIDITY STRONG BALANCE SHEET → More than CHF 8 bn of cash and unused committed credit lines → Debt maturities 2020-2021 well covered with available liquidity → All credit lines without financial covenants and mate
Slide 25: Outlook and Guidance 2020
03 OUTLOOK AND GUIDANCE 2020 Jan Jenisch, Chief Executive Officer © LafargeHolcim Ltd 2015
Slide 26: Solid Second Half of the Year Expected
OUTLOOK AND GUIDANCE 2020 SOLID SECOND HALF OF THE YEAR EXPECTED Fast demand recovery with an encouraging outlook for the second half of 2020 Execution of action plan “HEALTH, COST & CASH” to continue ahead of targets Free Cash Flow generation above CHF 2 bn Debt leverage below 2x 1 Solid second hal
Slide 27: Appendix
APPENDIX
Slide 28: Q2 2019 Recurring EBIT by Region
Q2 2019 RECURRING EBIT BY REGION Latin Middle East North Corporate & Asia Pacific Europe Group America Africa America Trading CHF M 529 554 234 197 515 -70 1’958 RECURRING EBITDA Depreciaton of right of -12 -28 -6 -16 -30 -5 -97 use assets RECURRING EBITDA 517 525 228 180 485 -75 1’860 after leases
Slide 29: Upcoming Events
UPCOMING EVENTS OCTOBER 30, 2020 Q3 2020 Trading Update FEBRUARY 26, 2021 Full year 2020 earnings release APRIL 23, 2021 Q1 2021 Trading Update 29
Slide 30: Disclaimer
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Slide 31: LafargeHolcim
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