Results 2009 and outlook for 2010 2010 holcim ltd switzerland

Results 2009 and outlook for 2010 2010 holcim ltd switzerland

© 2010 Holcim Ltd/Switzerland Phu My Bridge, Vietnam Results 2009 and outlook for 2010 1 Results 2009 © 2010 Holcim Ltd/Switzerland Challenging economic environment y Decreasing demand for building materials in Europe and North America y Growing or stable demand for building materials in most of the Emerging Markets y No significant trend change visible in the fourth quarter of 2009 2 Results 2009 © 2010 Holcim Ltd/Switzerland Holcim reacts swiftly and increases its efficiency y Reduction of fixed costs reached CHF 857 million on a like-for-like basis y Higher operating EBITDA margin in all segments in the second half of the year y Cement capacity scaled back by more than 10 million t y More than 100 aggregates and ready-mix concrete plants closed y Strategic capacity expansion program continued y Acquisition in Australia strengthens the Group 3 Results 2009 © 2010 Holcim Ltd/Switzerland Strong liquidity, lower net debt y Beginning of 2009, high priority was given to securing liquidity y Capital market transactions strengthened balance sheet and extended the average maturity of existing debt y Higher cash flow from operating activities y Unchanged dividend payout ratio; proposed cash dividend of CHF 1.50 per registered share y Non-binding advisory vote on the compensation report y Executive Committee to be enlarged 4 Results 2009 © 2010 Holcim Ltd/Switzerland Difficult economic situation in Europe y Decreasing construction activity in the eurozone, but solid order book in Switzerland y Aggravated market conditions in Spain, the UK, Italy, Eastern Europe and Russia y Volume decline in all segments y Capacity adjustments and extensive cost-cutting programs eased the pressure on the income statement y Lower operating EBITDA as a result of market conditions and currency factors 5 Results 2009 © 2010 Holcim Ltd/Switzerland North America hit by the crisis y Difficult situation on the US construction market persists; US government’s stimulus programs with no significant impact y Situation in Canada slightly better y Declining sales volumes in all segments y Rigorous cost management and plant closures y Market environment adversely impacted results of Holcim US y Aggregate Industries US achieved better results y Slightly higher operating margins 6 Results 2009 © 2010 Holcim Ltd/Switzerland Resilient Latin America y Government programs supported construction activity y Declining construction activity in Mexico and Central America y Only moderate sales declines on a like-for-like basis y Results improved especially in Ecuador, Brazil and Argentina y Organic growth in operating EBITDA 7 Results 2009 © 2010 Holcim Ltd/Switzerland Solid business activity in Africa Middle East y Sales volumes remained on high levels y Strong demand for construction materials in Morocco and the Lebanon y Decrease in cement deliveries in the Indian Ocean region y Higher operating EBITDA and organic growth 8 Results 2009 © 2010 Holcim Ltd/Switzerland Growing demand in Asia Pacific y Construction industry still on the up, especially in India y Higher sales volumes in all segments y Acquisition in Australia strengthens the Group y Above-average increase of operating EBITDA y Remarkable performance improvement in India, the Philippines and Indonesia 9 Results 2009 © 2010 Holcim Ltd/Switzerland Key financial figures – Full year 2009 1 Includes a capital gain on the sale of a stake in Holcim South Africa of CHF 1,110 million and a special dividend of CHF 150 million, net 2 Includes a special dividend of CHF 150 million, net related to the sale of a stake in Holcim South Africa 3 Calculated on the weighted average number of shares outstanding retrospectively restated in accordance with IAS 33 4 Paid as a stock dividend 5 Proposed by the Board of Directors LFL CIS FX Total Sales volumes - Cement (mt) 149.6 143.4 131.9 -6.8% -1.2% -8.0% - Aggregates (mt) 187.9 167.7 143.4 -19.6% 5.1% -14.5% - Ready-mix (mm 3 ) 45.2 48.5 41.8 -17.5% 3.7% -13.8% Net sales 27,052 25,157 21,132 -10.0% 0.8% -6.8% -16.0% Operating EBITDA 6,930 5,333 4,630 -5.1% -0.7% -7.4% -13.2% Operating profit 5,024 3,360 2,781 -7.3% -2.1% -7.8% -17.2% Net income before minorities 4,545 1 2,226 1,958 -5.8% -1.0% -5.2% -12.0% Net income attr. to Holcim shareholders 3,865 1 1,782 1,471 -11.2% -1.7% -4.6% -17.5% Cash flow 5,323 2 3,703 3,888 12.0% 1.6% -8.6% 5.0% EPS CHF 3 9.21 6.27 4.93 -21.4% Dividend/share CHF 3.30 2.25 4 1.50 5 -33.3% Million CHF (if not otherwise stated) +/- 2007 2008 2009 [...]... 23 © 2010 Holcim Ltd/ Switzerland Results 2009 Net income Million CHF Net income Net income - shareholders of Holcim Ltd 4,545 3,865 2,226 1,782 +67.2% +83.7% 2007 1 1 1,958 -12.0% -51.0% 1,471 -53.9% 2008 -17.5% 2009 Includes a capital gain on the sale of a stake in Holcim South Africa of CHF 1,110 million and a special dividend of CHF 150 million, net © 2010 Holcim Ltd/ Switzerland 24 Results 2009. .. © 2010 Holcim Ltd/ Switzerland Results 2009 Major changes in the scope of consolidation Effective as at – Egyptian Cement Company January 23, 2008 – Holcim Venezuela December 31, 2008 – Panamá Cement and Cementos Colón December 31, 2008 – United Cement Company of Nigeria + Holcim Australia and Cement Australia April 1, 2009 October 1, 2009 +/– Various smaller companies 11 © 2010 Holcim Ltd/ Switzerland. .. 2010 Holcim Ltd/ Switzerland Results 2009 Operating profit Million CHF 18.6% Margin 13.8% 13.4% 5,024 13.2% 3,360 Like -for- Like (LFL) Change in structure Forex movements Total change Margin on a like -for- like basis © 2010 Holcim Ltd/ Switzerland 569 13.0% 23 0.5% 47 1.1% 639 14.6% -977 -19.4% -311 -6.2% -376 -7.5% -1,664 -33.1% 2007 1 1 2008 2,781 -245 -72 -262 -579 -7.3% -2.1% -7.8% -17.2% 2009 22 Results. .. -19.7% -10.9% 5.1% -16.0% 18 © 2010 Holcim Ltd/ Switzerland Results 2009 Net sales by region Net sales 2009 Europe 33.6% North America 16.0% Asia Pacific 29.5% Latin America 15.4% Africa Middle East 5.5% 19 © 2010 Holcim Ltd/ Switzerland Results 2009 Operating EBITDA Million CHF 25.6% Margin 1 22.4% 21.2% 6,930 21.9% 5,333 4,630 Like -for- Like (LFL) Change in structure Forex movements Total change 660... -11.9% -3.7% 121.3% -14.5% 13 © 2010 Holcim Ltd/ Switzerland Results 2009 Ready-mix concrete and asphalt – Sales volumes by region Million m3/t Total Ready-mix 2007 45.2 2008 48.5 2009 41.8 21.0 19.8 17.0 7.3 8.0 7.3 6.8 6.8 5.5 5.4 1.7 10.6 11.7 6.6 1.2 5.6 * Ready-mix concrete only © 2010 Holcim Ltd/ Switzerland 8.1 7.3 10.1 Δ 2008 /2009 * Total Asphalt 2007 14.8 2008 13.5 2009 11.0 5.8 1.1 Europe North... 2010 Holcim Ltd/ Switzerland Results 2009 Ready for new growth The cost advantages realized will be retained Focus remains on process efficiency and strengthening competitiveness Holcim will start the next upturn from a stronger position 30 © 2010 Holcim Ltd/ Switzerland Results 2009 Europe – mature and emerging market highlights Million CHF (if not otherwise stated) 2008 2009 +/LFL CIS FX Total Cement... 31.12.2008 2007 31.12 .2009 2008 50.2 % (40.4%) 2 (1.8x) 2 1.5 x Net income plus depreciation, amortization and impairment © 2010 Holcim Ltd/ Switzerland 13,833 2 2009 28.0 % 27.6 % 2.6 x 2.6 x Excluding gain on sale of Holcim South Africa 27 Results 2009 Financial debt, maturities and liquidity as of December 31, 2009 Maturity profile (CHF million) 1 Liquidity summary 5,000 Current financial liabilities 1: CHF... Margin Million CHF 19.7% 5,323 18.4% 14.7% 3,703 Like -for- Like (LFL) Change in structure Forex movements Total change 710 137 53 900 16.0% 3.1% 1.2% 20.3% 2007 -1003 -18.8% -248 -4.7% -369 -6.9% -1620 -30.4% 2008 3,888 446 12.0% 61 1.6% -322 -8.6% 185 5.0% 2009 25 © 2010 Holcim Ltd/ Switzerland Results 2009 Cash flow statement Million CHF 2007 2008 2009 +/- Cash flow from operating activities 5,323 3,703... shareholders of Holcim Ltd Cash flow from operating activities 47 1.1% -376 -7.5% -262 -7.8% 16 0.8% -152 -3.9% -81 -4.6% 53 1.2% -369 -6.9% -322 -8.6% Total shareholders' equity -450 -2.4% -4,687 -21.4% 277 1.5% Net financial debt -342 -2.7% -1,877 -14.6% 102 0.7% 16 © 2010 Holcim Ltd/ Switzerland Results 2009 Net sales Million CHF 27,052 25,157 21,132 Like -for- Like (LFL) Change in structure Forex movements... 10.8% 110 1.8% 74 1.3% 844 13.9% 2007 1 Margin on a like -for- like basis © 2010 Holcim Ltd/ Switzerland -703 -301 -593 -1,597 -10.1% -4.3% -8.6% -23.0% 2008 -270 -39 -394 -703 -5.1% -0.7% -7.4% -13.2% 2009 20 Results 2009 Operating EBITDA by region Million CHF 2007 2008 2009 2399 1 2003 1232 999 486 400 1844 1760 1495 653 1256 1194 1076 368 Δ 2008 /2009 Europe North America Latin America Africa Middle East . © 2010 Holcim Ltd/ Switzerland Phu My Bridge, Vietnam Results 2009 and outlook for 2010 1 Results 2009 © 2010 Holcim Ltd/ Switzerland Challenging economic environment y Decreasing demand for. declines on a like -for- like basis y Results improved especially in Ecuador, Brazil and Argentina y Organic growth in operating EBITDA 7 Results 2009 © 2010 Holcim Ltd/ Switzerland Solid business. operating EBITDA y Remarkable performance improvement in India, the Philippines and Indonesia 9 Results 2009 © 2010 Holcim Ltd/ Switzerland Key financial figures – Full year 2009 1 Includes a capital