© Holcim Ltd 2011BAML Pan European Building Conference 2011 Thomas Aebischer – Chief Financial Officer John M... © Holcim Ltd 2011 BAML Pan European Building Conference 2011 Founded 1912
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BAML Pan European Building Conference 2011
Thomas Aebischer – Chief Financial Officer
John M Feigl – Investor Relations Officer
October 11 th , 2011
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Agenda
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Founded 1912, Holcim expanded over time and is present today in the most attractive construction markets worldwide
Trang 4• ~ 2500 locations
• Supported by global standards
Policies & directives
Exchange of know how &
best practices / benchmarking
Latin America Africa Middle East Asia Pacific
Europe North America
Net sales 1 Op EBITDA 1
Trang 5Holcim sales split development
Holcim operating EBITDA split development
• Additional 2 billion people (+40%) in emerging markets
• No growth between 2010 and 2050 on average in mature markets
• Emerging markets: Urban population + 103% / Rural population -14%
• Mature markets: Urban population + 18% / Rural population -43%
• Mature markets: Huge need for major modernization / replacement projects
Source: United Nations (World Urbanization Prospects & World Population Prospects - 2010), Oxford Economics (2009)
BAML Pan European Building Conference 2011 October 11, 2011
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0 1'000 2'000 3'000 4'000 5'000 6'000 7'000
GDP / capita emerging markets
Mature markets Emerging markets
The boost in demand will be strongly driven by the evolving middle class in the emerging markets…
Sources: Oxford Economics, November 2010, The Economist, Pocket World in Figures, 2011, Euromonitor International, March 2010
• Between 2010 and 2020 China and India for example are expected to see the number of middle class households increase from around 150 million to over 300 million
BAML Pan European Building Conference 2011 October 11, 2011
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Global construction outlook still rock-solid and dynamic!
With a presence in 14 of the top construction markets, Holcim
is well positioned to capture growth opportunities
Largest construction markets (global ranking)
Source: Global Construction 2020, Global Construction Perspectives, Oxford Economics, March 2011
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Agenda
Trang 10Holcim kg CO 2 /tonne cement) 1
International Union for the Conservation of Nature
hand in hand with improving:
management including a partnership with the IUCN
Exceeded our target of >20% reduction (21% in 2010)
New target is a 25% reduction by 2015
> 25%
BAML Pan European Building Conference 2011 October 11, 2011
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London Olympics 2012 – “The Sustainable Games”
Sustainable solution provider
tonnes AGG and 0.9 million m3 RMX
environmental customer requirements:
BAML Pan European Building Conference 2011 October 11, 2011
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Talent – Ensure we have the best people in the right jobs
• Attract the best talent and promote from within
• Hire for attitude and leverage diversity to maximize potential
• Provide constructive quality feedback
• Invest in training, leadership and management education
• Active succession planning enhances performance
Strength Performance Passion.
BAML Pan European Building Conference 2011 October 11, 2011
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Succession planning – translating talent potential into
performance
• A formal process of succession management creates a
supply of the best people for key roles
• Ongoing management task to develop talent
• Renewal of senior management level in the last three years
• Over 20 new local top-level executives appointed in the last
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Agenda
Trang 15-FY 2010 Sales volume
+5%
Sales price +5%
Variable costs -5%
BAML Pan European Building Conference 2011 October 11, 2011
Fixed cost reduction of CHF 1.2 billion has improved
Operating EBITDA sensitivities to price, volume and cost
Trang 16Asset divestments and Net working capital / sales
Working capital management, pruning of assets and
expansion capex paved the way for profitable growth
A stringent focus on efficiency improvements and asset divestments contributed to the financing of expansion capex and thus a
considerable increase of capacities of 32 mt (2008 – 2014)
Capex development
NWC / Sales (%) Disposed assets (CHF 8.1 bn)
0 1'000 2'000 3'000 4'000 5'000
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Holcim investment criteria secures long-term returns
Success factor – rigorous investment analysis and discipline
Diversification
Local Management Global Standards
• Strategic fit
• Position taking in line
with maturity profile of
the respective market
• Resource management
• Local culture embedment
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Emerging markets
Growth capacity expansion
~ CHF 500 m
BAML Pan European Building Conference 2011 October 11, 2011
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Agenda
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Conclusions
• Consistent and effective execution is the base for our success
• Growth areas are located in emerging markets where Holcim
is very well positioned to benefit from demographic trends
such as “Popurbanization” (population growth + urbanization shifts) boosting demand – in mature markets, infrastructure renewal will support demand
• Sustainability and talent management are two main
differentiators in the execution of Holcim’s strategy
• Efficiency, cost focus, the strong capital structure, together with the potential for additional operating EBITDA lend ample financial flexibility to grasp growth opportunities
Holcim – ready to shift gears
BAML Pan European Building Conference 2011 October 11, 2011
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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 to a number of risks, uncertainties and other important factors, such as but not limited to (1) competitive pressures; (2) legislative and regulatory developments; (3) global,
macroeconomic and political trends; (4) fluctuations in currency
exchange rates and general financial market conditions; (5) delay or inability in obtaining approvals from authorities; (6) technical
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.
BAML Pan European Building Conference 2011 October 11, 2011
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Event calendar
November 9, 2011 Press and analyst conference for
the third quarter 2011 February 29, 2012 Press and analyst conference for
the annual results for 2011 April 17, 2012 General meeting of shareholders May 9, 2012 First quarter results for 2012
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Strength Performance Passion.