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LafargeHolcim The global leader in sustainable and innovative building materials and solutions

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Page 1: LafargeHolcim company presentation August 2020...LafargeHolcim company presentation August 2020 Author: LafargeHolcim Ltd Subject: LafargeHolcim company presentation August 2020 Keywords:

LafargeHolcim The global leader in sustainable and innovative building materials and solutions

Page 2: LafargeHolcim company presentation August 2020...LafargeHolcim company presentation August 2020 Author: LafargeHolcim Ltd Subject: LafargeHolcim company presentation August 2020 Keywords:

LafargeHolcim is active in

four segments

Cement Aggregates Ready-mix Concrete

Solutions & Products

Page 3: LafargeHolcim company presentation August 2020...LafargeHolcim company presentation August 2020 Author: LafargeHolcim Ltd Subject: LafargeHolcim company presentation August 2020 Keywords:

Demand is driven by population growth, urbanization, improved living standards and

sustainable construction

The global building materials market is worth

$2.5 trillion, and continuously growing

Page 4: LafargeHolcim company presentation August 2020...LafargeHolcim company presentation August 2020 Author: LafargeHolcim Ltd Subject: LafargeHolcim company presentation August 2020 Keywords:

Around 72,000 people work for the company, in around 75 countries that are

balanced between developing and mature markets

The largest footprint in the

industry

Page 5: LafargeHolcim company presentation August 2020...LafargeHolcim company presentation August 2020 Author: LafargeHolcim Ltd Subject: LafargeHolcim company presentation August 2020 Keywords:

Listed on SIX and

Euronext

~75 countries

~2,300 operating sites

~72,000 employees

26.7 billion CHF net sales

Like-for-like

All figures represent FY 2019

Page 6: LafargeHolcim company presentation August 2020...LafargeHolcim company presentation August 2020 Author: LafargeHolcim Ltd Subject: LafargeHolcim company presentation August 2020 Keywords:

Record 2019 Performance

CHF 26,722m +3.1% Net sales1 2018: CHF 27,466m

CHF 3,047m +79% Free Cash Flow (pre-IFRS16) 2018: CHF 1,703m

CHF 8,811m -35% Net Debt (pre-IFRS16) 2018: CHF 13,518m

CHF 6,153m +6.5% Recurring EBITDA (pre-IFRS16)1 2018: CHF 6,016m

CHF 2,072m +32% Net income (pre-IFRS16)2 2018: CHF 1,569m

CHF 3.40 +29% Earnings per share (pre-IFRS16) 2018: CHF 2.63

561kg Net CO2 emitted per ton of cementitious material (scope 1)3 2019: -1.4%4

4.3% Increase in waste reused in operations 3,4 2019: 48 million tons

-5.7% Reduction of freshwater withdrawn per ton of cementitious material 3,4 2018: CHF 27,466m

-15.2% Reduction in long-term injury frequency rate (LTIFR) 3,4 2018: CHF 1,703m

1 Percentage change figures compare 2019 and 2018 on a like-for-like basis. 2 Group share before impairment and divestment 3 Information on scope and methodology of data collection can be found on our website 4 At constant 2019 scope

Page 7: LafargeHolcim company presentation August 2020...LafargeHolcim company presentation August 2020 Author: LafargeHolcim Ltd Subject: LafargeHolcim company presentation August 2020 Keywords:

GROWTH SIMPLIFICATION & PERFORMANCE

FINANCIAL STRENGTH

VISION & PEOPLE

2019 Performance1 2022 Targets1

Net sales growth Recurring EBITDA growth Free cash flow to Recurring EBITDA Return on Invested Capital

Net sales growth Recurring EBITDA growth Free cash flow to Recurring EBITDA Return on Invested Capital

3.1%

6.5%

45.9%

7.6%

3-5%

>5%

>40%

>8%

1 All figures are like-for-like, pre-IFRS 16

Strategy 2022 – “Building for

Growth”

Page 8: LafargeHolcim company presentation August 2020...LafargeHolcim company presentation August 2020 Author: LafargeHolcim Ltd Subject: LafargeHolcim company presentation August 2020 Keywords:

Creating sustainable value

We are committed to living up to the responsibilities that come with being the global leader in building materials and solutions. We spearhead the transition towards low-carbon construction and are the leader in promoting a circular economy, from alternative fuels to recycling.

Four strategic sustainability pillars:

Climate and energy

Circular economy Environment Community

561kg +4.3% -5.7% +5.4% Net CO2 emissions per ton of cementitious material (scope 1) (Scope 2: 37kg)

Tons of waste reused in operations (48m)

Freshwater withdrawn per ton of cementitious material (299L)

Beneficiaries of our community investments (5.9m)

Percentage change compares 2019 results to 2018 results at the same consolidation scope

Page 9: LafargeHolcim company presentation August 2020...LafargeHolcim company presentation August 2020 Author: LafargeHolcim Ltd Subject: LafargeHolcim company presentation August 2020 Keywords:

Resources Business Segments Our four value drivers Value created in 2019

~72,000 Employees

264 Cement and grinding plants

649 Aggregates plants

1,402 Ready-mix concrete plants

170 Patents in our patent portfolio, balanced across our value chain

40% Of these patents relate to low-carbon solutions, the most recent focusing on low-carbon products and carbon capture and use from our cement plants

3.1% Net sales growth (like-for-like)

6.5% Recurring EBITDA growth (pre-IFRS 16, like-for-like)

49.5% Free cash flow to Recurring EBITDA (pre-IFRS 16)

7.6% Return on invested capital

561 kg CO2 emitted per ton of cementitious material

48 m Tons of waste reused in operations

299 l Freshwater withdrawn per ton of cementitious material

5.9 m People benefiting from our community investments

FINANCIALS

NON-FINANCIALS

GROWTH

SIMPLIFICATION & PERFORMANCE

FINANCIAL STRENGTH

VISION & PEOPLE

Cement

Solutions & Products

Ready-mix concrete

Aggregates

Building for Growth

Page 10: LafargeHolcim company presentation August 2020...LafargeHolcim company presentation August 2020 Author: LafargeHolcim Ltd Subject: LafargeHolcim company presentation August 2020 Keywords:

North America

Europe

Asia Pacific

Latin America

Middle East Africa

12,614 employees

20,880 employees

17,505 employees

11,277 employees

8,871 employees

608 operating sites

960 operating sites

367 operating sites

158 operating sites

133 operating sites

6,311m net sales (CHF)

7,670m net sales (CHF)

6,491m net sales (CHF)

2,903m net sales (CHF)

2,620m net sales (CHF)

All figures represent FY 2019

Page 11: LafargeHolcim company presentation August 2020...LafargeHolcim company presentation August 2020 Author: LafargeHolcim Ltd Subject: LafargeHolcim company presentation August 2020 Keywords:

Five megatrends shaping the industry

Population growth

Urbanization

Living standards

Sustainable construction

Digitalization

Population expected to grow 22% by 2050 from 7.6 billion to 9.7 billion

Approximately 2.5 billion more people are expected to live in cities by 2050

Increased demand for better living standards and more efficient infrastructure

Increased demand for sustainable construction solutions and increasing resource scarcity

Digitalization is opening new avenues for growth and innovation

Page 12: LafargeHolcim company presentation August 2020...LafargeHolcim company presentation August 2020 Author: LafargeHolcim Ltd Subject: LafargeHolcim company presentation August 2020 Keywords: