Slide 1: First Quarter 2016 Results
First Quarter 2016 Results Eric Olsen, CEO and Ron Wirahadiraksa, CFO May 12, 2016 © LafargeHolcim Ltd 2015
Slide 2: Overview of Q1 2016 Results
01 Overview of Q1 2016 Results Eric Olsen, Chief Executive Officer © 2016 LafargeHolcim 2
Slide 3: Q1 2016 Highlights
Q1 2016 Highlights Overall pricing environment strengthening - average cement prices up 2.1% from Q4 2015 to Q1 2016, excluding India Q1 synergies at CHF 104 million, on track to exceed CHF 450 million target for 2016 China, Indonesia and India turnarounds are underway Strong cash flow gener
Slide 4: Q1 2016 results and Performance analysis
02 Q1 2016 results and Performance analysis Ron Wirahadiraksa, Chief Financial Officer © 2016 LafargeHolcim 4
Slide 5: Key financial figures
Key financial figures CHF m Q1 2016 Q1 2015 % Like-for-like % › Positive sales volume development in all product Volumes lines on a like-for-like basis Cement (Mt) 56.6 55.8 1.4% 1.4% › Top line impacted by challenging pricing conditions Aggregates (Mt) 51.6 52.3 -1.4% 1.0% in Nigeria, India and Chi
Slide 6: Net sales and operating EBITDA adjusted by Region
Net sales and operating EBITDA adjusted1) by Region Europe Europe Net sales 24% Operating EBITDA Adj. 13% Middle East Africa North 17% Middle Asia America East Pacific 14% Africa 37% 27% Latin America 11% Asia Latin Pacific America 34% 23% CHF m Q1 2016 Q1 2015 % Like-for-like % CHF m Q1 2016 Q1 201
Slide 7: Asia Pacific
Asia Pacific 6.6% LfL Q1 2016 CHF m Q1 2016 Q1 2015 % Like-for-like % Q1 2015 Volumes 30.1 28.2 Cement (Mt) 30.1 28.2 6.6% 6.6% Aggregates (Mt) 7.3 7.8 -5.6% 9.2% Ready-mix (Mm³) 3.9 3.8 2.7% 2.7% 9.2% LfL 2.7% LfL Net sales 2'148 2'215 -3.0% 0.9% 7.3 7.8 Operating EBITDA adj. 1) 344 424 -18.9% -15.
Slide 8: Europe
Europe Q1 2016 CHF m -1.8% LfL Q1 2016 Q1 2015 % Like-for-like % Q1 2015 Volumes 25.7 25.2 Cement (Mt) 7.7 8.0 -3.1% -3.1% Aggregates (Mt) 25.2 25.7 -1.8% -1.8% Ready-mix (Mm³) 4.0 4.0 0.2% 0.2% -3.1% LfL 0.2%LfL Net sales 1'497 1'552 -3.6% -3.5% 7.7 8.0 Operating EBITDA adj. 1) 119 161 -26.4% -28.0
Slide 9: Latin America
Latin America Q1 2016 CHF m -10.7% LfL Q1 2016 Q1 2015 % Like-for-like % Q1 2015 Volumes 6.7 Cement (Mt) 6.0 6.7 -10.7% -10.7% 6.0 Aggregates (Mt) 1.7 1.8 -4.4% 0.6% Ready-mix (Mm³) 1.7 1.8 -6.2% -6.2% 0.6% LfL -6.2% LfL Net sales 682 809 -15.7% -1.7% 1.7 1.8 1.7 1.8 Operating EBITDA adj. 1) 210 255
Slide 10: Middle East Africa
Middle East Africa 3.1% LfL Q1 2016 CHF m Q1 2016 Q1 2015 % Like-for-like % Q1 2015 Volumes 10.8 10.5 Cement (Mt) 10.8 10.5 3.1% 3.1% Aggregates (Mt) 3.6 2.4 45.8% 45.8% 45.8% LfL Ready-mix (Mm³) 1.4 1.3 10.1% 10.1% 10.1% LfL Net sales 1'049 1'164 -9.9% -4.4% 3.6 Operating EBITDA adj. 1) 256 364 -29
Slide 11: North America
North America -5.9% LfL Q1 2016 CHF m Q1 2016 Q1 2015 % Like-for-like % Q1 2015 Volumes 14.6 13.7 Cement (Mt) 3.4 2.9 18.9% 18.9% Aggregates (Mt) 13.7 14.6 -5.9% -5.9% Ready-mix (Mm³) 1.6 1.5 4.9% 6.0% 18.9% LfL Net sales 866 776 11.6% 10.1% 6.0% LfL 3.4 Operating EBITDA adj. 1) 3 -26 n/a n/a 2.9 1.
Slide 12: Operating EBITDA adjusted Q1 2016
Operating EBITDA adjusted1) Q1 2016 CHF m Of which CHF -170m from: - India: CHF -74m 48 - Nigeria: CHF -65m - China: CHF-31m 169 145 50 1,049 17 3 104 43 ,824 774 Adj. op.EBITDA Volume Price Cost & Others CO2 CIS FX Synergies Adj. op.EBITDA Merger, Restruct. & op.EBITDA Q1 2015 Q1 2016 other one-off
Slide 13: Quarter-on-quarter price trend
Quarter-on-quarter price trend Cement price increased 2.1% excluding India in Q1 2016 versus Q4 2015. In this quarter, price increases have been implemented in 2/3 of our operations 2.1 Excl. India 2) 1.2 1) Sequential QoQ price development calculated at constant geographical mix effect 2) Price i
Slide 14: 2016 synergy delivery, on track
2016 synergy delivery, on track CHF m Operational 2015 Q1 16 Target optimisation / best 44 38 • Cement productivity best-practices deployment practice 220 • Network optimization in major overlapping countries Procurement 38 21 • Reduction of external spending by renegotiating top 2000 contracts, swi
Slide 15: Operating Free Cash Flow
Operating Free Cash Flow CHF m -,618 -,761 74 135 -143 77 operating FCF Q1 15 Op. EBITDA Net Working Capital Capex Net Others operating FCF Q1 16 © 2016 LafargeHolcim 15
Slide 16: Net Financial Debt
Net Financial Debt CHF m 115 43 353 264 18,041 17,266 Dec. 2015 CF from operating activities Capex Net FX Others Mar. 2016 © 2016 LafargeHolcim 16
Slide 17: Outlook and Update on Strategic Initiatives
03 Outlook and Update on Strategic Initiatives Eric Olsen, Chief Executive Officer © 2016 LafargeHolcim 17
Slide 18: Outlook for 2016
Outlook for 2016 Overall cement demand in our markets expected to grow between 2% to 4% Self-help measures in place to focus on pricing, reduce costs and capture future opportunities Strategic plan to gain momentum in 2016 › Capex less than CHF 2.0 billion › Incremental synergies of more than
Slide 19: Strategic pillars
Strategic pillars Commercial transformation Cost leadership › Customer led › Synergy delivery › Focus on pricing › On-going cost management Asset light strategy Sustainability › Active portfolio management › Strong tradition of sustainable development, health and safety › Lean capital spending › The
Slide 20: On track for 2018 targets
On track for 2018 targets¹) Free Cash Flow Capex ROIC AT › At least CHF 10.0bn › Max CHF 3.5bn › At least 300bps improvement cumulative 2016-2018 cumulative 2016-2017 from 2015 level by 2018 › CHF 3.5-4.0bn run rate by 2018 from operational improvement › At least CHF 6 per share run rate by 2018 Ope
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Slide 22: Appendix
04 Appendix © 2016 LafargeHolcim 22
Slide 23: Net sales and adjusted operating EBITDA – Cement
Net sales and adjusted operating EBITDA – Cement CHF m 2016 2015 2) Net Sales Q1 Q1 Q2 Q3 Q4 FY 2015 Asia Pacific 1'742 1'794 1'893 1'692 1'920 7'299 Europe 619 650 939 889 793 3'271 Latin America 582 690 688 721 664 2'764 Middle East Africa 937 1'052 1'101 957 963 4'072 North America 465 390 722 86
Slide 24: Net sales and adjusted operating EBITDA – Aggregates
Net sales and adjusted operating EBITDA – Aggregates CHF m 2016 2015 2) Net Sales Q1 Q1 Q2 Q3 Q4 FY 2015 Asia Pacific 114 123 130 134 141 528 Europe 396 403 501 511 463 1'879 Latin America 12 16 16 15 14 60 Middle East Africa 26 30 32 31 29 123 North America 203 200 400 489 385 1'474 Corporate / Eli
Slide 25: Net sales and adjusted operating EBITDA – Other
Net sales and adjusted operating EBITDA – Other CHF m 2016 2015 2) Net Sales Q1 Q1 Q2 Q3 Q4 FY 2015 Asia Pacific 292 299 311 309 303 1'222 Europe 482 499 581 599 527 2'206 Latin America 88 103 104 104 106 417 Middle East Africa 86 83 92 82 85 342 North America 198 186 390 532 410 1'519 Corporate / E
Slide 26: Operating Free Cash Flow
Operating Free Cash Flow CHF m Q1 2016 Q1 2015 % Like-for-like % Operating EBITDA 774 917 -15.6% -10.7% Total other non cash items 85 52 63.5% Change in net working capital -695 -772 10.0% Financial expenses paid net -235 -251 6.4% Income taxes paid -237 -232 -2.2% Other cash items 44 13 238.5% Cash
Slide 27: Net Financial Debt
Net Financial Debt CHF m Net Financial Debt (per March 31, 2016) › Liquidity summary • Cash + marketable securities: mCHF 3’898 • Cash + marketable securities + unused committed credit lines: mCHF 10’044 18,041 17,360 › Debt summary • Current financial liabilities1): mCHF 5’590 Incl. fair value adju
Slide 28: Operating EBITDA to Net Income
Operating EBITDA to Net Income CHF m Q1 2016 Q1 2015 % Operating EBITDA 774 917 -15.6% Depreciation & Amortization -547 -605 9.6% Operating Profit 227 312 -27.2% Other Expenses / Income 2 434 -99.5% Share of profit of associates and Joint-Ventures 21 33 -36.4% Financial Income 45 99 -54.5% Financial
Slide 29: Condensed Statement of Financial Position
Condensed Statement of Financial Position CHF m Mar 31, 2016 Dec 31, 2015 Mar 31, 2016 Dec 31, 2015 Invested Capital 53’852 55’290 Equity 34’833 35’722 Out of which: Out of which: 16’688 16’490 Equity attributable to the LH 30’501 31’365 Goodwill shareholders Prop, Plant & Equipment 35’009 36’747 1’
Slide 30: Volume and price development Cement – Q1 16 vs. Q1 15
Volume and price development Cement – Q1 16 vs. Q1 15 Volum e Price & Other Volum e Price & Other Volum e Price & Other Volum e Price & Other Asia Pacific 6.6% -6.6% Latin America -10.7% 11.8% Europe -3.1% -2.7% Middle East Africa 3.1% -7.9% Bangladesh 12.6% -4.4% Argentina -10.7% 42.0% Azerbaijan -
Slide 31: Volume and price development Aggregates – Q1 16 vs. Q1 15
Volume and price development Aggregates – Q1 16 vs. Q1 15 Volum e Price & Other Volum e Price & Other Volum e Price & Other Volum e Price & Other Asia Pacific 9.2% -5.1% Latin America 0.6% -9.1% Europe -1.8% -4.4% Middle East Africa 45.8% -30.1% Australia 8.1% -3.9% Brazil -16.1% -17.4% Belgium 5.8%
Slide 32: 2016 Outlook – Cement Market Overview by Region
2016 Outlook – Cement Market Overview by Region Volumes Highlights Asia Pacific* 3 - 5% Market growth across the region supported by an acceleration in India and Indonesia; China adjustment to continue Europe Stable Improvement expected in most markets; decline in Russia, Azerbaijan Latin America -5
Slide 33: 2016 Outlook – Cement Market Overview by Selected Countries
2016 Outlook – Cement Market Overview by Selected Countries Market volum es Market volum es Market volum es Market volum es % % % % Asia Pacific 1) 3 to 5 Latin America -5 to -3 Europe Flat Middle East Africa 3 to 5 Bangladesh 9 to 11 Argentina -4 to -2 Azerbaijan -17 to -15 Algeria 1 to 3 China 2)
Slide 34: Contact information and event calendar
Contact information and event calendar Contact information Event calendar Corporate Communications August 5, 2016 Q2 2016 Results Phone +41 58 858 87 10 November 4, 2016 Q3 2016 Results Fax +41 58 858 87 19 communications@lafargeholcim.com Investor Relations Phone +41 58 858 87 87 investor.relations
Slide 35: 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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