Slide 1: Half-Year 2018 Results
Half-Year 2018 Results Jan Jenisch, CEO Géraldine Picaud, CFO July 27, 2018 © LafargeHolcim Ltd 2015
Slide 2: Highlights and Key Developments
01 Highlights and Key Developments Jan Jenisch, Chief Executive Officer 2
Slide 3: Half-year 2018 highlights
Half-year 2018 highlights › Strong revenue growth of 6.2% LFL in Q2 and 4.8% LFL in the first half, supported by volume increase with accelerating momentum in Q2 › Recurring EBITDA improvement in Q2 with a LFL growth of 1.5%; first half recurring EBITDA of CHF 2’484 million, down 1.4% on a LFL basis
Slide 4: Strategy 2022 – "Building for Growth"
Strategy 2022 – “Building for Growth” Execution on track Three bolt-on acquisitions in the UK, the US and France Capturing organic growth in key markets: +4.8% Net Sales growth in H1 Growth Winning of major infrastructure contracts (e.g. UK highway project) Simplification Closure of regional
Slide 5: First bolt-on acquisitions - Executing on our growth strategy
Half-year 2018 bolt-on acquisitions First bolt-on acquisitions - Executing on our growth strategy Tarrant Concrete, US (announced July 2018) › Leading provider of ready-mix concrete in the Dallas/Fort Worth area in Texas › Net Sales USD 40 million › Will strengthen the Group’s existing operations in
Slide 6: Half-year 2018 financial results
02 Half-year 2018 financial results Géraldine Picaud, Chief Financial Officer 6
Slide 7: Half-year 2018 performance highlights
Half-year 2018 performance highlights Solid progress on Net Sales and Free cash flow in the first half Recurring Net Sales Free cash flow EBITDA 2) H1 2018 Q2 2018 H1 2018 Q2 2018 H1 2018 +4.8% 1) +6.2% 1) -1.4% 1) +1.5% 1) +28% CHF 13’272 m CHF 7’442 m CHF 2’484 m CHF 1’784 m CHF -473 m 1) Like-for
Slide 8: Net Sales bridge
Half-year 2018 Net Sales bridge Acceleration in Net Sales momentum over the first half CHF m +2.7% +4.8% LFL › In Q2, Net Sales of CHF 7’442 m › LFL of CHF 430 m (+6.2%, vs +3.1% in Q1 2018) -0.7% -1.3% +605 13'357 › Scope of CHF -76 m (-1.1%) 13’272** › FX of CHF 3 m (neutral) -85 12’918* -166 12'7
Slide 9: Half-year 2018 total Net Sales by segment
Half-year 2018 total Net Sales by segment Improving top line in most segments Cement Aggregates RMX Solutions & Products Group Net Sales split by segment +5.6 % +4.6% +5.0% -0.8% 8'755 8'866 2'657 8% 2'475 18% 61% 1'917 1'796 13% 1'029 1'050 H1 2017 H1 2017 H1 2017 H1 2017 Cement Aggregates RMX SOP
Slide 10: Recurring EBITDA bridge
Half-year 2018 Recurring EBITDA bridge Growth in Q2 largely offsets soft Q1 CHF m -3.8% -1.4% LFL › In Q2, Recurring EBITDA of CHF 1’784 m -0.8% +142 -177 › LFL of CHF 26 m (+1.5%, vs -7.7% in Q1 2018) 2'582 -21 -1.6% › Scope of CHF -7 m (-0.4%) 2'561 2'526 -42 › FX of CHF -8 m (-0.5%) 2’484 H1 2017
Slide 11: Half-year 2018 regional performance
Half-year 2018 regional performance Growth in Net Sales and Recurring EBITDA in 4 regions out of 5 North America Latin America Europe Middle East Africa Asia Pacific +3.4% +9.4% +2.3% 3'807 +17.1% 3'664 -7.4% 2'475 +1.2% 773 +12.9% 1'535 +2.0% +5.2% -33.5% 599 1'428 488 365 470 Net Sales to external
Slide 12: North America
North America Continued earnings progression, acceleration in volume growth throughout the first half CHF m H1 2018 Q2 2018 Net Sales1) 2’475 1’608 LFL growth +2.3% +5.5% 1) Reported growth +3.0% +7.4% Recurring EBITDA 470 462 LFL growth +2.0% +1.6% › Further solid contribution of the region › Accel
Slide 13: Latin America
Latin America Strong growth in top line and earnings CHF m H1 2018 Q2 2018 Net Sales1) 1’428 742 LFL growth +12.9% +11.7% Reported growth -2.1% -3.2% Recurring EBITDA 488 253 LFL growth +5.2% +3.0% › Continued strong contribution from the region › Further solid trends in Mexico supported by RMX acti
Slide 14: Europe
Europe Acceleration in top line and profit growth in the first half CHF m H1 2018 Q2 2018 Net Sales1) 3’664 2’147 LFL growth +3.4% +7.2% Reported growth +10.2% +14.1% Recurring EBITDA 599 509 LFL growth +1.2% +9.3% › Strong market trends in most countries leading to acceleration in volumes in main s
Slide 15: Middle East Africa
Middle East Africa Challenging conditions in several countries CHF m H1 2018 Q2 2018 Net Sales1) 1’535 785 LFL growth -7.4% -6.3% Reported growth -11.7% -9.2% Recurring EBITDA2) 365 189 LFL growth -33.5% -36.4% › Difficult H1 and challenging market conditions in several countries, notably reflecting
Slide 16: Asia Pacific
Asia Pacific Strong Net Sales and earnings growth CHF m H1 2018 Q2 2018 Net Sales1) 3’807 1’971 LFL growth +9.4% +9.3% Reported growth +3.6% +4.0% Recurring EBITDA2) 773 475 LFL growth +17.1% +20.9% › In China, continued increase in profits supported by pricing momentum and benefit from vertically-i
Slide 17: On track: Update on fixed-cost savings program
On track: Update on CHF 400 m fixed-cost savings program 2018 Q1 2019 Q2 2019 onwards Major SG&A restructuring plans All measures implemented by committed and announced end Q1 2019 CHF 400 m cost savings full year Streamlining of regional and top run rate 1) management organization Run rate on
Slide 18: Half-year 2018 financial performance
Half-year 2018 financial performance EPS of CHF 0.62 in the first half H1 2018 before H1 2017 before H1 2018 Variation impair. & divest. impair. & divest. CHF m Net Sales 1) 13'272 13'272 12'918 354 2) Recurring EBITDA 2'484 2'484 2'582 -97 Depreciation, amortization & impairment -1'106 -1'104 -1'12
Slide 19: Free Cash Flow bridge
Half-year Free Cash Flow bridge Good progress on Free Cash Flow driven by Net Working Capital improvement CHF m -473 -473 -661 -2 -101 +76 +312 -97 H1 2017 Recurring EBITDA Net Working Capital Capex Share of JVs Others H1 2018 19
Slide 20: Net Financial Debt December 2017 to June 2018
Net Financial Debt December 2017 to June 2018 Net debt of CHF 16.1 billion at end of June CHF m -88 +170 +1’270 -44 +473 16'127 14'346 NFD Free cash flow Disposals/ Acquisitions Dividends FX Others NFD (Dec 2017) (June 2018) 20
Slide 21: Outlook 2018
03 Outlook 2018 Jan Jenisch, Chief Executive Officer 21
Slide 22: 2018 Outlook and targets confirmed
2018 Outlook and targets confirmed › Positive prospects for demand in 2018 › Strong market trends in Europe › Continued solid growth in North America › Good growth prospects in most countries in Latin America › China and India to remain supportive; South East Asia to stabilize › Challenging outlook
Slide 23: Upcoming Events
2018 Upcoming Events › October 26, 2018: Q3 earnings release › November 2018: Capital Markets Day 23
Slide 24: 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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