2004 annual results and outlook for 2005 holcim ltd

2004 annual results and outlook for 2005 1 2004 annual results Key facts at a glance  World economy gained momentum  Construction activity strong – even buoyant in some places  Solid internal growth in all Group regions/segments  Improved EBITDA margin despite higher energy costs  Further increase in operating profit and Group net income  Higher earnings per share  Renewed proposal for dividend increase  2004 capital increase allowed buyout of minority shareholders  Cement company taken over in El Salvador  January 2005: announcement of strategic Group expansion 2 2004 annual results Europe  Upswing in construction activity  Housebuilding and infrastructure support economic growth  Rising demand above all in Spain and Italy  EU expansion stimulates growth in eastern and southeastern Europe 3 2004 annual results Operations in Europe Cement plant Grinding plant Terminal Participation: Cement plant Cement capacity Group (Europe): 45.3 million t; further 1.0 million t with partners 4 2004 annual results Facts on Europe  Stronger presence in key markets ensuring rise in volumes across all segments  In western Europe very sound results achieved in Spain, Italy and Switzerland  Slight price recovery in Germany  Substantial progress made by Group companies in southeastern Europe  Practically all Group companies posted higher operating results  In Europe consolidated operating profit was up by 37.3 percent to CHF 662 million 5 2004 annual results North America  Robust economic growth  Strong increase in private residential and industrial construction  Capacity of US cement industry fully utilized 6 2004 annual results Operations in North America Cement plant Grinding station Terminal Cement plant (project) Cement capacity Group (North America): 22.0 million t 7 2004 annual results Facts on North America  Holcim US stepped up own output  Capacity considerations prompted concentration on key customers  In Canada deliveries were up in all segments  St. Lawrence Cement’s sales down marginally in the northeast of the USA  Capacity renewal and strict cost management had positive impact  In North America operating profit rose by 19 percent to CHF 325 million 8 2004 annual results Latin America  Generally positive year for region’s economies  Accelerated growth in Mexico and Brazil  Rising oil revenues  Building activity shored up by housing construction and infrastructure improvement projects 9 2004 annual results Operations in Latin America Cement plant Grinding station Terminal Participation: Cement plant Grinding station Terminal Cement capacity Group (Latin America): 34.5 million t; further 7.8 million t with partners [...]... results Practically all Group companies improved operating results In Africa Middle East operating profit grew by 28.9 percent to CHF 370 million 13 2004 annual results Asia Pacific Accelerated growth Strong economic upswing in Thailand and Vietnam Major local projects and residential construction stimulated demand for cement 14 2004 annual results Operations in Asia Pacific Cement plant Grinding station... 219 million in Group region Asia Pacific 16 2004 annual results Committed to sustainability Holcim included in the Dow Jones Sustainability Index and the FTSE4Good Index ISO certification for quality and environment completed Holcim Foundation for Sustainable Construction and ETH Zurich organized international forum Foundation also launched global competition for sustainable building projects We provided... +8.5% 2004 25 2004 annual results Net sales Million CHF 13'010 Volume/price Change in structure Forex movements Total change -108 398 -924 -634 -0.8% 2.9% -6.7% -4.6% 2002 12'600 270 47 -727 -410 2.1% 0.3% -5.6% -3.2% 2003 13'215 908 99 -392 615 7.2% 0.8% -3.1% 4.9% 2004 26 2004 annual results Net sales by region Million CHF 4320 2755 2507 2002 2003 2004 4744 2630 1136 3248 2842 4441 2785 1280 ∆ 2003 /2004. .. million t; further 20.3 million t with partners 15 2004 annual results Facts on Asia Pacific Sales up significantly Growth in cement delivery volumes highest in Thailand, Vietnam, Indonesia, Sri Lanka and New Zealand Strong rise in ready-mix concrete sales Prices picked up on the Philippines Thailand, the Philippines, Vietnam, Australia and New Zealand made significant contributions to operating result... -257 -30 5.3% 1.5% -7.7% -0.9% 2003 376 28 -127 277 11.4% 0.8% -3.8% 8.4% 2004 29 2004 annual results EBITDA Million CHF 26.1% Margin 26.8% 3'399 3'383 - 4.9% 2003 3'619 - 0.5% 2002 27.4% + 7.0% 2004 30 2004 annual results Operating profit Million CHF Margin 17.0% 14.6% 15.3% 2'251 1'903 Volume/price/cost Change in structure Forex movements Total change 133 -20 -155 -42 6.8% -1.0% -8.0% -2.2% 2002... -5.6% 28.9% 10.6% 16.9% 32 2004 annual results Group net income Before minority interests in million CHF After minority interests in million CHF 1'153 +23.7% 932 914 +16.9% +33.2% 797 -22.7% 686 +35.6% 506 -37.7% 2002 2003 2004 33 2004 annual results Cash flow from operating activities Million CHF 20.8% 19.8% 18.4% 2'619 2'622 2'388 Volume/price/cost Change in structure Forex movements Total change... after tsunami disaster 17 2004 annual results Key strategic expansion moves In mature markets Holcim aims to operate increasingly as an integrated supplier of building materials Reserves of raw materials and aggregates gaining in significance Aggregate Industries expands our product range in the USA and gives us access to the attractive UK aggregates market In the cement sector Holcim is focusing on growth... million tonnes of cement Holcim would be India’s second largest supplier of cement 18 2004 annual results Market maturity defines investment focus Added value through business integration N America, UK France, Spain Eastern Europe Aggregates Downstream Thailand Aggregates India Ready-mix concrete Cement Emerging markets Transition markets Mature markets Market maturity 19 2004 annual results Key financial... lifted in all segments Solid performance by Group companies in Mexico and Central America Strong sales increases in Argentina, Ecuador, Venezuela and Colombia Holcim Apasco again the main contributor to the Group’s success in Latin America Holcim Brazil was unable to repeat the previous year’s result due to demand and price developments Programs to increase efficiency and strict cost control paid off... Total 7.2% 0.8% -3.1% 1945 Total 6.8% 4.9% -2.0% 20.3% 10.5% 4.9% 27 2004 annual results Net sales by region Sales 2004 Europe 36% North America 19% Asia Pacific 14% Latin America 20% Africa Middle East 11% 28 2004 annual results Operating EBITDA Million CHF Margin 25.7% 27.2% 26.3% 3'588 3'341 Volume/price/cost Change in structure Forex movements Total change 184 73 -251 6 5.5% 2.2% -7.5% 0.2% 2002 . 2004 annual results and outlook for 2005 1 2004 annual results Key facts at a glance  World economy gained momentum  Construction. Pacific 17 2004 annual results Committed to sustainability  Holcim included in the Dow Jones Sustainability Index and the FTSE4Good Index  ISO certification for quality and environment completed  Holcim. million 5 2004 annual results North America  Robust economic growth  Strong increase in private residential and industrial construction  Capacity of US cement industry fully utilized 6 2004 annual