holcim strength performance passion third quarter results 2009 and outlook

© 2009 Holcim Ltd/Switzerland Third quarter results 2009 and outlook © Herzog & de Meuron 1 3. Quartal 2009 © 2009 Holcim Ltd/Switzerland First positive signals from world economy y In mature markets, construction industry remained tough  Some market stabilization in Western and Central Europe  Unchanged difficult situation in Eastern Europe and Russia  Significant impulses not yet visible in North America y Growing construction industry in many emerging markets  More or less stable development in Latin America  Africa Middle East is holding up well  Asia growing with China and India as drivers 2 3. Quartal 2009 © 2009 Holcim Ltd/Switzerland Quick reactions supported Holcim‘s results y Shut down of approx. 10 million tonnes of cement capacity y More than 100 plant closures in the aggregates segment and in ready-mix concrete y Fixed costs have already been reduced by CHF 573 million y High cash liquidity of CHF 5.7 billion y Financing of CHF 7 billion significantly lengthened the average term of liabilities y Strategic capacity expansion program was pursued y Acquisition in Australia strengthens the Group 3 3. Quartal 2009 © 2009 Holcim Ltd/Switzerland Higher cost efficiency in Europe y Lower sales volumes in all segments y Difficult situation in Spain, the UK, Italy and Eastern Europe y Construction level held up well in Switzerland y Capacity reduction and large-scale cost-cutting measures had a positive impact on results y Demand decline slowed in the third quarter 4 3. Quartal 2009 © 2009 Holcim Ltd/Switzerland Better third quarter in North America y The recession in the construction market heavily affected Holcim US y Two cement plants were shut down and two others mothballed; shut downs also in all other segments y Cost savings partially offset the decline in volumes and prices y New cement plant Ste. Genevieve exemplary from an ecological and efficiency standpoint 5 3. Quartal 2009 © 2009 Holcim Ltd/Switzerland Organic growth in Latin America y Declining sales volumes mainly due to deconsolidation in Venezuela and in the Caribbean y In Mexico and Central America, the proximity to the US negatively impacted demand y Cost reductions, lower energy costs and stable prices strengthened results y Better results in Ecuador, Brazil and Argentina 6 3. Quartal 2009 © 2009 Holcim Ltd/Switzerland Holcim held up well in Africa Middle East y Good capacity utilization in Morocco and the Lebanon y Declining cement deliveries in the Indian Ocean y Due to the deconsolidation in Egypt, sales volumes decreased y Majority had better operating results 7 3. Quartal 2009 © 2009 Holcim Ltd/Switzerland Significant improvement of results in Asia Pacific y Increasing cement sales primarily in India, Vietnam and the Philippines y Effective cost control and lower purchase prices for energy led to better margins despite currency losses y Solid results also in the third quarter y Excellent start of integration process at Holcim Australia; Group company fully consolidated since the fourth quarter 8 3. Quartal 2009 © 2009 Holcim Ltd/Switzerland Key financial figures 2008 2008 2009 LFL CIS FX Total Net sales 25,157 19,340 15,774 -10.3% -0.7% -7.4% -18.4% Operating EBITDA 5,333 4,365 3,614 -7.3% -2.1% -7.8% -17.2% Operating profit 3,360 3,087 2,337 -13.6% -3.0% -7.7% -24.3% Net income 2,226 2,107 1,577 -16.5% -2.1% -6.6% -25.2% Cash flow from operating activities 3,703 1,658 2,192 47.2% -1.4% -13.6% 32.2% 6.27 6.99 2 EPS in CHF 1 Million CHF 9M +/-12M 6.10 4.10 -32.8% 1 Calculated on the weighted average number of shares outstanding retrospectively restated in accordance with IAS 33 2 Net of plant closure costs 9 3. Quartal 2009 © 2009 Holcim Ltd/Switzerland Key financial figures - third quarter 2008 2009 LFL CIS FX Total Net sales 6,906 5,692 -8.9% -1.2% -7.5% -17.6% Operating EBITDA 1,563 1,471 5.5% -2.5% -8.9% -5.9% Operating profit 1,123 1,031 4.0% -2.9% -9.3% -8.2% Net income 769 790 13.7% -2.5% -8.5% 2.7% Cash flow from operating activities 994 1,387 53.3% -1.9% -11.9% 39.5% Op. EBITDA margin Million CHF Q3 +/- 22.6% 25.8% 3.2pp [...]... cash equivalents -96.8% 190.3% 26 © 2009 Holcim Ltd/Switzerland 3 Quartal 2009 Financial position Million CHF Net financial debt Total shareholders' equity 77.7% 83.7% Gearing 59.7% 21,599 20,449 17,974 15,881 15,047 12,905 30.09.2008 31.12.2008 30.09 .2009 27 © 2009 Holcim Ltd/Switzerland 3 Quartal 2009 Financial debt, maturities and liquidity as of September 30, 2009 Maturity profile (million CHF)... -7.3% -2.1% -7.8% Total -39.7% -26.1% -11.5% -9.1% 14.9% -17.2% 19 © 2009 Holcim Ltd/Switzerland 3 Quartal 2009 Positive EBITDA growth in the third quarter 2009 Variance in operating EBITDA 1 Europe North America Latin America Africa Middle East Asia Pacific Corporate Total Group 1 Like-for-like millions CHF © 2009 Holcim Ltd/Switzerland Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 10 -31 18 26 -17 27 -85... 2008 8.1 -21.4% 9M 2009 14 © 2009 Holcim Ltd/Switzerland 3 Quartal 2009 Net sales Million CHF 20,286 19,340 15,774 Like-for-Like (LFL) Change in structure Forex movements Total change 1,340 6.6% -348 -1.7% -1,938 -9.6% -946 -4.7% 9M 2007 © 2009 Holcim Ltd/Switzerland 1,511 8.6% 892 5.1% 369 2.1% 2,772 15.8% 9M 2008 -2,000 -134 -1,432 -3,566 -10.3% -0.7% -7.4% -18.4% 9M 2009 15 3 Quartal 2009 Net sales... currencies © 2009 Holcim Ltd/Switzerland 1 Calculation in USD 31 3 Quartal 2009 Cement - Price/volume variances per region Domestic cement prices +/- 9M 08/9M 09 * Africa Middle East Morocco Lebanon Indian Ocean * If not otherwise indicated calculation based on local currencies © 2009 Holcim Ltd/Switzerland 6.3% 3.7% -4.6% Domestic clinker and cement volumes +/- 9M 08/9M 09 -1.3% 4.5% -16.7% 32 3 Quartal 2009. .. information and event calendar Contact information Event calendar Corporate Communications Phone +41 58 858 87 10 Fax +41 58 858 87 19 communications @holcim. com March 3, 2010 Press and analyst conference for the annual results 2009 May 4, 2010 Results for the first quarter 2010 May 6, 2010 General meeting of shareholders August 19, 2010 Half-year results for 2010 November 10, 2010 Press and analyst... 19, 2010 Half-year results for 2010 November 10, 2010 Press and analyst conference for the third quarter 2010 Investor Relations Phone +41 58 858 87 87 Fax +41 58 858 80 09 investor.relations @holcim. com www .holcim. com/investors Mailing list: www .holcim. com/subscribe 34 © 2009 Holcim Ltd/Switzerland 3 Quartal 2009 Disclaimer Cautionary statement regarding forward-looking statements This presentation... Million CHF Net income Net income - equity holders of Holcim Ltd 3,857 3,300 2,107 1,739 1,577 1,200 +97.8% +119.3% 9M 2007 1 1 -45.4% -47.3% 9M 2008 Including 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 © 2009 Holcim Ltd/Switzerland -25.2% -31.0% 9M 2009 23 3 Quartal 2009 Cash flow from operating activities Margin Million... developments; (7) litigation; (8) adverse publicity and news coverage, which could cause actual development and results to differ materially from the statements made in this presentation Holcim assumes no obligation to update or alter forward-looking statements whether as a result of new information, future events or otherwise 35 © 2009 Holcim Ltd/Switzerland 3 Quartal 2009 ... solid In Asia Pacific, many of the countries can expect to see strong demand The acquisition in Australia will be a solid contributor to the Group’s performance next year The Group will grow again in 2010 29 © 2009 Holcim Ltd/Switzerland 3 Quartal 2009 Cement - Price/volume variances per region +/- 9M 08/9M 09 * Domestic clinker and cement volumes +/- 9M 08/9M 09 3.2% 4.9% 10.0% 6.6% -4.8% 2.5% 0.9%... sales 9M 2009 North America 16.2% Latin America 15.5% Europe 34.8% Asia Pacific 27.9% Africa Middle East 5.6% 17 © 2009 Holcim Ltd/Switzerland 3 Quartal 2009 Operating EBITDA Margin Million CHF 26.3% 1 23.3% 22.9% 22.6% 5,340 4,365 3,614 Like-for-Like (LFL) Change in structure Forex movements Total change 586 13.1% 185 4.1% 80 1.8% 851 19.0% 9M 2007 1 Margin on a like-for-like basis © 2009 Holcim Ltd/Switzerland . © 2009 Holcim Ltd/Switzerland Third quarter results 2009 and outlook © Herzog & de Meuron 1 3. Quartal 2009 © 2009 Holcim Ltd/Switzerland First positive signals from. Switzerland y Capacity reduction and large-scale cost-cutting measures had a positive impact on results y Demand decline slowed in the third quarter 4 3. Quartal 2009 © 2009 Holcim Ltd/Switzerland Better. results y Better results in Ecuador, Brazil and Argentina 6 3. Quartal 2009 © 2009 Holcim Ltd/Switzerland Holcim held up well in Africa Middle East y Good capacity utilization in Morocco and the Lebanon