results 2010 and outlook for 2011 holcim ltd

© 2010 Holcim Ltd/Switzerland New Hermosillo plant (Mexico) Results 2010 and outlook for 2011 1 Results 2010 © 2011 Holcim Ltd/Switzerland Holcim at a glance y Increasing sales of cement, aggregates and ready-mix concrete y Higher turnover and slightly lower operating EBITDA y Holcim has been implementing a tight cost-cutting program worldwide since the 2 nd half of 2008 y Despite capacity expansion, fixed costs have been reduced by a further CHF 312 million in 2010 y Board of Directors will be proposing a payout from capital contribution reserves corresponding to last year’s level despite lower net income 2 Results 2010 © 2011 Holcim Ltd/Switzerland Realized and planned capacity expansions 2008-13 21.7 million tonnes of additional cement capacity has come on stream since 2008. Further 7.8 million tonnes by 2013. Capacity expansions* Completed Under construction or planned * As per end of February, 2011 3 Results 2010 © 2011 Holcim Ltd/Switzerland Mixed market development in Europe y First signs of improving construction activity in Western Europe y Higher asphalt sales volumes and only slightly lower cement and aggregates deliveries y Cost-cutting and particularly lower fixed costs supported operating results 4 Results 2010 © 2011 Holcim Ltd/Switzerland Some stimuli in North America y In the US, construction activity improved in the course of the year and Canada achieved robust growth y Increasing sales volumes of cement and ready-mix concrete; slightly declining shipments of aggregates y Streamlined organizational structure in the US y Cost-cutting measures, new US cement plant and better results added up to a higher operating EBITDA 5 Results 2010 © 2011 Holcim Ltd/Switzerland Latin America largely resistant to crisis y Stable cement sales volumes and increased deliveries of aggregates and ready-mix concrete y New cement plant strengthens Holcim Apasco in Mexico and reduces logistics costs y Higher capacity in Colombia too, and ongoing plant expansion in Ecuador y Good results in Brazil and Argentina; overall, slightly lower operating EBITDA 6 Results 2010 © 2011 Holcim Ltd/Switzerland Stable demand for building materials in Africa Middle East y Brisk construction activity in Lebanon and West Africa; temporarily slower pace of growth in Morocco y Increasing cement sales, virtually stable ready-mix concrete deliveries and declining aggregates shipments y Doubling clinker capacity at the Fès plant progresses according to schedule y Slightly lower operating EBITDA, but better operating margins 7 Results 2010 © 2011 Holcim Ltd/Switzerland Building activity solid in Asia Pacific y Demand for construction materials increased y Overall, higher sales volumes, supported by Australia y Further cement capacity expansion in India and start of construction for a new cement plant in Indonesia y Heavy rainfall impacted 4 th quarter results in Australia y Despite temporary price pressure in India and higher production and distribution costs, better operating EBITDA 8 Results 2010 © 2011 Holcim Ltd/Switzerland Protection of resources and biodiversity y Holcim wants to preserve resources and conserve biodiversity y In 2007, a three-year partnership with IUCN was launched y Biodiversity management system was developed for limestone and aggregates quarries y Partnership extended for another three years based on positive experience y Holcim’s achievements in promoting sustainable development acknowledged by SAM 9 Results 2010 © 2011 Holcim Ltd/Switzerland Key financial figures – Full year 2010 1 Calculated on the weighted average number of shares outstanding. 2008 has been retrospectively restated in accordance with IAS 33 2 Paid as a stock dividend 3 Proposed by the Board of Directors for a payout from capital contribution reserves LFL CIS FX Total Sales volumes - Cement (mt) 143.4 131.9 136.7 2.4% 1.2% 3.6% - Aggregates (mt) 167.7 143.4 157.9 -1.6% 11.7% 10.1% - Ready-mix (mm 3 ) 48.5 41.8 45.9 0.2% 9.6% 9.8% Net sales 25,157 21,132 21,653 -2.1% 5.4% -0.8% 2.5% Operating EBITDA 5,333 4,630 4,513 -6.1% 4.1% -0.5% -2.5% Operating profit 3,360 2,781 2,619 -10.1% 3.7% 0.6% -5.8% Net income 2,226 1,958 1,621 -18.2% 2.2% -1.2% -17.2% Net income attr. to Holcim shareholders 1,782 1,471 1,182 -21.1% 3.0% -1.5% -19.6% Cash flow 3,703 3,888 3,659 -8.3% 3.5% -1.1% -5.9% EPS CHF 1 6.27 4.93 3.69 -25.2% Dividend / payout per share CHF 2.25 2 1.50 1.50 3 0.0% Million CHF (if not otherwise stated) +/- 2008 2009 2010 [...]... -5.4% -5.8% 23 © 2011 Holcim Ltd/ Switzerland Results 2010 Net income Million CHF Net income Net income - shareholders of Holcim Ltd 2,226 1,782 -51.0% -53.9% 2008 1,958 1,471 1,621 -17.5% -17.2% -12.0% 2009 1,182 -19.6% 2010 24 © 2011 Holcim Ltd/ Switzerland Results 2010 Cash flow from operating activities Million CHF Margin 18.4% 16.9% 14.7% 3,703 Like -for- Like (LFL) Change in structure Forex movements... -10.7% -6.9% 2.8% -9.0% 24.0% 2.5% 18 © 2011 Holcim Ltd/ Switzerland Results 2010 Net sales by region Net sales 2010 Europe 29.3% North America 14.6% Asia Pacific 35.7% Latin America 15.5% Africa Middle East 4.9% 19 © 2011 Holcim Ltd/ Switzerland Results 2010 Operating EBITDA Million CHF Margin 21.9% 21.2% 1 21.0% 20.8% 5,333 4,630 Like -for- Like (LFL) Change in structure Forex movements Total change -703 -301... 0.9% 10 © 2011 Holcim Ltd/ Switzerland Results 2010 Major changes in the scope of consolidation Effective as at – United Cement Company of Nigeria + Holcim Australia and Cement Australia April 1, 2009 October 1, 2009 +/– Various smaller companies 11 © 2011 Holcim Ltd/ Switzerland Results 2010 Cement – Sales volumes by region Million t 33.7 26.9 14.4 10.7 26.2 Total Group 2008 143.4 2009 131.9 2010 136.7... © 2011 Holcim Ltd/ Switzerland Results 2010 Operating profit Million CHF Margin 13.4% 13.2% 1 12.1% /12.1% 3,360 2,781 1 Margin on a like -for- like basis © 2011 Holcim Ltd/ Switzerland -977 -19.4% -311 -6.2% -376 -7.5% -1,664 -33.1% -245 -7.3% -72 -2.1% -262 -7.8% -579 -17.2% -281 -10.1% 104 3.7% 15 0.6% -162 -5.8% 2008 Like -for- Like (LFL) Change in structure Forex movements Total change 2,619 2009 2010. .. Long-term corporate credit rating (February 2011) 2008 2009 2010 Current Standard & Poor's BBB BBB BBB BBB Fitch BBB+ BBB BBB BBB Moody's 1 11.0 Baa1 Baa2 Baa2 Baa2 Adjusted by plant closure costs, RONOA in 2008 was 12% © 2011 Holcim Ltd/ Switzerland 32 Results 2010 Cement – Price/volume variances per region +/- 2009 /2010 * Domestic clinker and cement volumes +/- 2009 /2010 -4.4% -3.5% 1.2% -1.9% -1.1% -23.6%... Ltd/ Switzerland Results 2010 Financial position Million CHF Net financial debt Total shareholders' equity Gearing 83.7% 62.8% 53.8% 22,044 21,121 17,974 15,047 13,833 11,363 31.12.2008 Debt ratios FFO 1/Net financial debt 31.12.2009 2008 2009 2010 28.0% 27.6% 31.3% 2.6x 2.6x 2.3x Net financial debt/EBITDA 1 Net income plus depreciation, amortization and impairment © 2011 Holcim Ltd/ Switzerland 31.12 .2010 27 Results. .. shareholders of Holcim Ltd Cash flow from operating activities -376 -7.5% -262 -7.8% -152 -3.9% -81 -4.6% -22 -1.5% -369 -6.9% -322 -8.6% -42 -1.1% +/- 2009 in CHF +/- 2010 in CHF 15 +/- 0.6% Total shareholders' equity -4,687 -21.4% 277 1.5% -2,052 -9.3% Net financial debt -1,877 -14.6% 102 0.7% -1,109 -8.0% 16 © 2011 Holcim Ltd/ Switzerland Results 2010 Net sales Million CHF 25,157 21,132 Like -for- Like (LFL)... -593 -1,597 -10.1% -4.3% -8.6% -23.0% 2008 1 Margin on a like -for- like basis © 2011 Holcim Ltd/ Switzerland -270 -39 -394 -703 -5.1% -0.7% -7.4% -13.2% 2009 4,513 -284 -6.1% 188 4.1% -21 -0.5% -117 -2.5% 2010 20 Results 2010 Operating EBITDA by region Million CHF 1 2003 1232 486 400 2008 2009 2010 1045 460 1760 1820 1495 368 1194 1076 373 Δ 2009 /2010 999 Europe North America Latin America Africa Middle... Ltd/ Switzerland 28 Results 2010 Outlook Europe: better demand trend North America: slightly increasing sales volumes Latin America: growing demand for construction materials Africa Middle East: rather subdued development Asia Pacific: solid growth and additional stimuli from Australia in 2nd half Holcim will be successful in securing its share of future growth in the emerging markets, and its lean... Like -for- Like (LFL) Change in structure Forex movements Total change 1,157 4.3% -303 -1.1% -2,749 -10.2% -1,895 -7.0% -2,510 -10.0% 195 0.8% -1,710 -6.8% -4,025 -16.0% 2008 2009 21,653 -444 1,147 -182 521 -2.1% 5.4% -0.8% 2.5% 2010 17 © 2011 Holcim Ltd/ Switzerland Results 2010 Net sales by region Million CHF 2008 2009 2010 10043 7320 6535 4527 3480 3240 7958 6109 1354 1206 Δ 2009 /2010 4170 3348 3442 Europe North . © 2010 Holcim Ltd/ Switzerland New Hermosillo plant (Mexico) Results 2010 and outlook for 2011 1 Results 2010 © 2011 Holcim Ltd/ Switzerland Holcim at a glance y Increasing. slightly lower cement and aggregates deliveries y Cost-cutting and particularly lower fixed costs supported operating results 4 Results 2010 © 2011 Holcim Ltd/ Switzerland Some stimuli in North. cement plant and better results added up to a higher operating EBITDA 5 Results 2010 © 2011 Holcim Ltd/ Switzerland Latin America largely resistant to crisis y Stable cement sales volumes and increased