société générales premium review conference bernard fontana ceo holcim group

Strength. Performance. Passion. © 2012 Holcim Ltd Société Générale's Premium Review Conference Bernard Fontana, CEO Holcim Group Société Générale's Premium Review Conference © 2012 Holcim Ltd Agenda Assessing our strategy 3 Holcim Leadership Journey – achieving our targets 8 Putting it all together – ROIC 19 Société Générale's Premium Review Conference 2 © 2012 Holcim Ltd Holcim’s corporate strategy is based on three pillars 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 Société Générale's Premium Review Conference Customer excellence & cost leadership 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 Société Générale's Premium Review Conference 4 © 2012 Holcim Ltd The human face of our global positioning • 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 Société Générale's Premium Review Conference 5 © 2012 Holcim Ltd Increased focus on ROIC 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 Société Générale's Premium Review Conference Internal view 6 © 2012 Holcim Ltd Agenda Assessing our strategy 3 Holcim Leadership Journey – achieving our targets 8 Putting it all together – ROIC 19 Société Générale's Premium Review Conference 7 © 2012 Holcim Ltd Driving ROIC based on strategy, people, execution < 8% ROIC* 2011 ROIC* 2014 Focusing on execution, building on competencies Proven strategy Leadership Journey Dedicated people > 8% Société Générale's Premium Review Conference * After tax 8 © 2012 Holcim Ltd OpCo teams Holcim Leadership Journey – Project Management Office organization Regional EXCOMs Program Management Office - Holcim Leadership JourneyProgram Management Office - Holcim Leadership Journey Holcim Executive Committee Regional teams East Asia Oceania Latin America Europe North America UK Africa Middle East South Asia ASEAN Customer Excellence Cost Leadership • Energy • Alternative fuels and raw materials • Logistics • Procurement • Fixed costs • Net working capital and selective divestments • Reduction of the investment cost per tonne of new cement capacity Société Générale's Premium Review Conference 9 © 2012 Holcim Ltd Driving additional growth through customer excellence Customer value management Value expansion Customer focus Marketing and sales An increasingly targeted use of push factors to result in pull factors driving both growth and profitability resulting in an increasing return on invested capital Additional operating profit (CHF m) Value Proposition: “Customer Excellence” - creation & capture of demand through advice & service Value management Pricing policies Société Générale's Premium Review Conference 50 150 500 50 50 2012 2013 2014 10 [...]... to at least CHF 200 m by end 2014 * Compared to FY 2011 costs Société Générale's Premium Review Conference © 2012 Holcim Ltd 17 Agenda Assessing our strategy Holcim Leadership Journey – achieving our targets Putting it all together – ROIC Société Générale's Premium Review Conference 3 8 19 © 2012 Holcim Ltd 18 Customer Excellence Internal Holcim Leadership Journey Growing ROIC through different levers... customer needs * Leadership in Energy and Environmental Design Société Générale's Premium Review Conference © 2012 Holcim Ltd 11 Customer Excellence – Customer Value Management at Holcim Morocco Our target • Increasing competition from new market entrants put pressure on prices • Created and offered value added solutions to various customer groups along the value chain What we are doing • Developed and... 250 m by end 2014 * Compared to FY 2011 costs Société Générale's Premium Review Conference © 2012 Holcim Ltd 16 Tailoring fixed costs to fit requirements Fixed cost reduction opportunities* Key fixed cost levers Process • • Benchmarking Service centers Contracting > CHF 200 m reduction • Reduction of external sourcing Renegotiation • Asset tailoring • Review and adjustment of asset base Strategic initiatives... External + ROIC Market growth Combining these three levers of growth Holcim is able to capture the market growth, the growth coming from customer excellence and in addition the growth coming from cost leadership and efficiency improvements that together result in a considerable increase of ROIC Société Générale's Premium Review Conference © 2012 Holcim Ltd 19 Contact information and event calendar Contact... Press and analyst conference for the third quarter 2013 Mailing list: www .holcim. com/subscribe Société Générale's Premium Review Conference © 2012 Holcim Ltd 20 Disclaimer Cautionary statement regarding forward-looking statements This presentation may contain certain forward-looking statements relating to the Group s future business, development and economic performance Such statements may be subject... 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 Société Générale's Premium Review Conference © 2012 Holcim Ltd 21 ... 2014 Value expansion A thorough analysis of the asset base, energy and AFR, logistics and procurement reduces costs while increasing efficiency and return on invested capital Société Générale's Premium Review Conference © 2012 Holcim Ltd 13 Expanding energy and AFR opportunities Energy cost reduction potential* Key energy cost reduction levels Efficiency • • • Grinding Fans and filters Burners Mixture... or > CHF 300 m Identified energy and AFR cost saving opportunities amount to at least CHF 300 m by end 2014 – necessary capex launched * Compared to FY 2011 total energy costs Société Générale's Premium Review Conference © 2012 Holcim Ltd 14 Moving goods more efficiently and at lower costs Logistics cost reduction potential* Key logistics efficiency and cost levers • • Cycle management RRS** portfolio... analyst conference on annual results for 2012 April 17, 2013 General meeting of shareholders Investor Relations Phone +41 58 858 87 87 Fax +41 58 858 80 09 investor.relations @holcim. com www .holcim. com/investors May 8, 2013 Results for the first quarter 2013 August 15, 2013 Half-year results for 2013 November 5, 2013 Press and analyst conference for the third quarter 2013 Mailing list: www .holcim. com/subscribe... improvements of efficiency and costs Identified logistics efficiency and cost saving opportunities amount to at least CHF 250 m by end 2014 * Compared to FY 2011 ** Road, rail, ship Société Générale's Premium Review Conference © 2012 Holcim Ltd 15 Getting more for less through managed procurement More for less with procurement* > CHF 250 m reduction Key procurement levers Standards / pooling • • Standardized . Performance. Passion. © 2012 Holcim Ltd Société Générale's Premium Review Conference Bernard Fontana, CEO Holcim Group Société Générale's Premium Review Conference © 2012 Holcim Ltd Agenda Assessing. Ltd Agenda Assessing our strategy 3 Holcim Leadership Journey – achieving our targets 8 Putting it all together – ROIC 19 Société Générale's Premium Review Conference 2 © 2012 Holcim Ltd Holcim s corporate. costs Société Générale's Premium Review Conference 17 © 2012 Holcim Ltd Agenda Assessing our strategy 3 Holcim Leadership Journey – achieving our targets 8 Putting it all together – ROIC 19 Société