holcim strength performance passion holcim leadership journey bernard fontana ceo holcim group

Strength. Performance. Passion. © 2012 Holcim Ltd Holcim Leadership Journey Bernard Fontana, CEO Holcim Group Investor and Analyst Day 2012 © 2012 Holcim Ltd Agenda 2 Assessing our strategy 5 Streamlined organizational structure 11 Where do we want to go? 15 Holcim Leadership Journey – achieving our targets 19 Putting it all together – ROIC 44 Investor and Analyst Day 2012 Safety is our first priority 3 © 2012 Holcim Ltd Safety is our first priority • Lost-Time Injury Frequency Rate (LTIFR) for own employees has dropped to 1.6 in 2011 • Puts us amongst the top per- formers in the industry for LTIFR • LTIFR YTD June 2012 was 1.4 which is within our current target of 1.5 • Aim to improve even further – want to achieve <1 by 2013 3 Investor and Analyst Day 2012 © 2012 Holcim Ltd Agenda 4 Assessing our strategy 5 Streamlined organizational structure 11 Where do we want to go? 15 Holcim Leadership Journey – achieving our targets 19 Putting it all together – ROIC 44 Investor and Analyst Day 2012 Safety is our first priority 3 © 2012 Holcim Ltd Building on a proven strategy Creation of Value Mindsets Strategy Goal Base Product Focus Geographic Diversification Local Management Global Standards People Better Cost Management Permanent Marketing Innovation Human Resources Excellence Corporate Social Responsibility Sustainable Environmental Performance 5 Investor and Analyst Day 2012 © 2012 Holcim Ltd Increased focus on ROIC 6 Creation of Value ROIC & HVA (Holcim Value Added) Outside view Market capitalization (incl. minority interests) + financial debt (Dividend paid + share price appreciation) / Share Price Company result after consideration of all costs of capital, incl. cost of equity Key operational indicator focused on cash-generation/ efficiency TSR (Total Shareholder Return) Op. EBITDA / Op. EBITDA - Margin ROIC & EV (Enterprise Value) - Credit Rating Investor and Analyst Day 2012 Internal view © 2012 Holcim Ltd Holcim’s corporate strategy is based on three pillars 7 Product Focus Geographic Diversification Local Management Global Standards • Two basic resources • Cement • Aggregates • Value-adding products and services • Ready-mix concrete • Asphalt • Concrete products • Truly global • Balanced between • Regions • Mature / emerging markets • Fast growth in emerging markets • Business – strongly anchored in local markets • Supported by global standards • Policies & directives • Exchange of know how & best practices / benchmarking Asia Pacific Latin America Europe North America Africa Middle East Net Sales 2011 Op. EBITDA 2011 Investor and Analyst Day 2012 Customer excellence & cost leadership © 2012 Holcim Ltd Holcim’s strategy is aligned with the five mindsets 8 Mindsets to guide value creation Mindsets Better Cost Management Permanent Marketing Innovation Human Resources Excellence Corporate Social Responsibility Sustainable Environmental Performance Investor and Analyst Day 2012 © 2012 Holcim Ltd The human face of our global positioning 9 • Over 80’000 people in around 70 markets and roughly 2’000 operations are driven by an environment of: • Multicultural management teams • Local management and global standards • Performance and rewards culture • Talent management • Succession planning • Fostering best practice & experience multiplication • Skilled and motivated workforce • Continuous training and development Investor and Analyst Day 2012 © 2012 Holcim Ltd Agenda 10 Assessing our strategy 5 Streamlined organizational structure 11 Where do we want to go? 15 Holcim Leadership Journey – achieving our targets 19 Putting it all together – ROIC 44 Investor and Analyst Day 2012 Safety is our first priority 3 [...]... Urs Kern Holcim South-Germany Todor Kostov Holcim Bulgaria Leo Mittelholzer Holcim Germany Kaspar E.A Wenger Holcim Switzerland Mario Grassl Holcim Croatia Vincent Lefebvre Holcim Spain Patrick Stapfer Holcim Czech Republic Richard Skene Holcim Hungary Daniel Bach Holcim Romania Horia Adrian (a.i.) Holcim Russia Gustavo Navarro Holcim Serbia Alan Sisinacki Holcim Slovak Republic 1 excluding UK Status... excluding UK Status as of September 1st, 2012 Investor and Analyst Day 2012 © 2012 Holcim Ltd 12 Holcim Leadership Journey – Project Management Office organization Holcim Executive Committee Regional EXCOMs Program Management Office - Holcim Leadership Journey Regional teams Customer Excellence South Asia ASEAN East Asia Oceania Cost Leadership • • • • • • Energy Alternative fuels and raw materials Logistics...Streamlined organizational structure Holcim Group Board of Directors Holcim Ltd Governance, Nomination & Compensation Committee Audit Committee Bernard Fontana CEO Internal Audit1 Executive Committee Paul Hugentobler Area Managers/ Corporate Functional Managers Ian Thackwray Andreas Leu Aidan Lynam Roland Köhler Urs Fankhauser Onne van der Weijde Thomas Aebischer CFO Bernard Terver Javier de Benito Urs... © 2012 Holcim Ltd 13 Agenda Safety is our first priority Assessing our strategy Streamlined organizational structure Where do we want to go? Holcim Leadership Journey – achieving our targets Putting it all together – ROIC Investor and Analyst Day 2012 3 5 11 15 19 44 © 2012 Holcim Ltd 14 Driving ROIC based on strategy, people, execution ROIC* 2011 ROIC* 2014 Proven strategy < 8% Leadership Journey. .. enhancing services and products People • Implement performance management • Foster leadership- and talent management • Develop skills trough Holcim Academy * After tax Investor and Analyst Day 2012 © 2012 Holcim Ltd 17 Agenda Safety is our first priority Assessing our strategy Streamlined organizational structure Where do we want to go? Holcim Leadership Journey – achieving our targets Putting it all together... 2012 Holcim Ltd 11 Streamlined organizational structure Europe Roland Köhler Member of the Executive Committee – Europe 1 Urs Fankhauser Area Manager - Western Europe Kaspar E.A Wenger Area Manager - Central Europe Horia Adrian Area Manager - Eastern & Southeastern Europe Lukas Epple Holcim Belgium Piero Corpina Holcim Italy Raoul Waldburger Holcim Azerbaijan Gerard Letellier Holcim France Urs Kern Holcim. .. customer needs * Leadership in Energy and Environmental Design Investor and Analyst Day 2012 © 2012 Holcim Ltd 24 Customer Excellence - Holcim s way of differentiation Customer Excellence Product: • Ecological products, e.g cements with low clinker factor, CO2-reduced concrete, recycled concrete, insulating concrete • High durability for special uses like dams, bridges, etc • High early strength, e.g... successfully position our products and services, thereby strengthening and expanding our customer relationships along the value chain resulting in higher profitability Investor and Analyst Day 2012 © 2012 Holcim Ltd 29 Driving profit growth through Cost Leadership Additional operating profit (CHF m) Energy and AFR Logistics Procurement Value Proposition: “Cost Leadership Optimization of cost base Fixed cost... technical support and training  Holcim as service provider Shorter delivery times etc IUCN Conservation Centre in Gland: Built with CO2-reduced concrete, recycled concrete, insulating concrete, etc Reduces energy running costs to one fifth of that for comparable buildings Basic Requirements Composition, e.g in Europe: CEM-I, CEM-II, etc Strength class – for early and late strength Chemical and physical... visible differentiation in the market by creating value with and for our customers Global replication potential is ensured through the measurable performance improvements Investor and Analyst Day 2012 © 2012 Holcim Ltd 27 Customer Excellence – Value based pricing at Holcim Slovakia Our target • Customer analysis and segmentation according to their focus and needs • Analysis of our product and service range . Strength. Performance. Passion. © 2012 Holcim Ltd Holcim Leadership Journey Bernard Fontana, CEO Holcim Group Investor and Analyst Day 2012 © 2012 Holcim Ltd Agenda 2. Europe 1 © 2012 Holcim Ltd OpCo teams Holcim Leadership Journey – Project Management Office organization Regional EXCOMs Program Management Office - Holcim Leadership Journey Holcim Executive. Piero Corpina Holcim Italy Urs Kern Holcim South-Germany Kaspar E.A. Wenger Holcim Switzerland Lukas Epple Holcim Belgium Gerard Letellier Holcim France Leo Mittelholzer Holcim Germany