concentrate on what we can influence markus akermann ceo holcim group stlouis september 14 2010

• We cannot jump start the economy, but we have adjusted cost and structures to be fit for the upswing • Leaner structures, the current asset base and the commissioning pipeline will gen

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Concentrate on what we can influence

Markus Akermann – CEO Holcim Group

St Louis, September 14, 2010

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• We cannot jump start the economy, but we have adjusted cost and structures to be fit for the upswing

• Leaner structures, the current asset base and the commissioning pipeline will generate substantially higher cash flow

• De-commoditization and differentiation of our core products

enhance relationship with our customers – we are winning more

businesses with higher value

• Our superior positions in emerging markets allow us to further

expand our cement asset base

• Strong Balance Sheet for capturing M&A growth

• A performance driven culture combined with talent management

and a strong succession pipeline is the base for continuous

success

Executive Summary – concentrate on what we can influence

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1 Superior strategy in our markets

2 Value added solutions for our customers

3 Global portfolio geared to growth

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Our portfolio strength allows us to continue our expansion and

acquisition plans through the economic cycle

• Growth in emerging markets, above all Asia

• Manage margins and cash flow with austerity program

Fixed costs reductions of > CHF 850 million

Strict capex austerity

Capacity re-balancing (mothballing/closure of 23 out of 150 kilns and > 100 ready-mix concrete and aggregates plants)

• Execute expansion plans and acquisition moves

Continued the expansion program in growth markets

Acquired the Australia business

Significantly strengthened our financial position

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Strong cash flow is proof of management’s agility and cohesion

CAPEX austerity Asset Reduction Program (ARP)

Free op CF

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140 85

523 543

500 559

209 186

1072 873

Op EBITDA in million CHF

6M 2009 6M 2010

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In the near term, Holcim’s performance driven by emerging markets, with our strong portfolio positions in Asia

GDP by >5%, some even >8% (e.g India)

Philippines, India, Indonesia)

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69

2009 2020

Note (1): China cement consumption per capita kept at 2009 level, but growing with population.

Note (2): Western Europe = FR, DE, IT, GR, ES, UK / Eastern Europe = BU, CZ, HU, RO, RU, / North America = CA, USA / South America = AG, BR, CL, CO /

Asia Pacific (developed) = AU, JP / Asia Pacific (developing) = ID, PH, KR, TH, VN / Africa-Middle East = EG, MA, NG, SA, ZA, AE

Longer term, emerging market dynamics and recovery of construction activity in mature markets drive demand

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Holcim‘s strategy has been validated during the recent turbulences and remains the right blueprint for the future

• Value added solutions for our customers

• Superior portfolio and local positioning to capture growth opportunities

• Competent local management teams around the world with a shared vision how to develop the business

People

Better Cost Management

Permanent Marketing Innovation

Human Resources Excellence

Corporate Social Responsibility

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Offering a bag of cement or a ton of aggregates is not enough –

we focus on differentiation and de-commoditization

Added value through

business integration

Market maturity

• Differentiation of market maturity levels within countries

• Differentiation of product & service offer in all segments

• Tailor-made solutions for customer segments and single projects allow us to win more work with higher value

• An opportunity to create value for them … and us

Consistent Quality

Customer Care Solid Quote-to- Cash Processes

Competitive Price

Technical Consulting &

Sales

Innovative Solutions Range of Products &

Services

Early Supplier Involvement

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Example of sustainable solution provider – Aggregate Industries UK

London Olympics 2012 “The Sustainable Games”

environmental customer requirements:

goals during all project phases

site

site, to support the Olympic Delivery Authority‘s

delivery partner with the material supply contracts

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Examples of cement bag markets differentiation – sophisticated

distribution formats and market intelligence

”Mi obra” (professional segment) and “Mi casa” (self builders and informal masons) providing access to bank financing, retailer support and end-user services

shopping for design consultation, quality construction materials, an effective and efficient construction system and access to bank

financing for affordable housing

Cements (India) – superior services to dealers and retailers based on real time information (application on mobile phones)

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Examples of service solutions – offer superior customer satisfaction

(Holcim Brazil)

Special mix design

RMX for pre-cast concrete parts

Self-leveling concrete

Technical support supplied by Holcim along the entire construction chain

Product and individual logistic delivery solution are perfectly meeting customer needs

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Examples of multiplication and sharing expertise within Holcim – Group size matters; as does the effectiveness of know-how turntables

Transfer from Aggregate Industries UK to Holcim Indonesia

live mortar (36h) delivered in small quantities

Transfer from Holcim France to Holcim Lebanon

truck chute at the jobsite

Transfer from Dufferin Concrete to Aggregate Industries UK

Transfer from Dufferin Construction and Holcim France to Holcim Bulgaria

paver and compacted with a steel roller

Transfer HGRS to Bardon Concrete (UK), Demix (Canada),

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Providing innovative solutions to the market based on collaboration

from R&D to the field and on close cooperation with external partners

and unique durability

HGRS collaboration with Group companies

produced with low clinker composite cements

Cooperation with admixture supplier

peak temperature in urbanized areas

HGRS collaboration with Group companies

to activate cement hydration at the right moment

Cooperation with university

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• In recovery, Europe and the US will deliver substantial additional op EBITDA & FCF

• Both regions have the substance to double their

op EBITDA contribution to the Group

• Based on stream-lined operations and leaner structures

Holcim‘s underpinning business has the financial strength and B/S for expansions and acquisitions

US – additional CHF

500 million op EBITDA

Europe – additional CHF 1 billion op EBITDA

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In the emerging markets we continue to expand the cement asset base ahead of expected market growth

USA – Ste Genevieve

Java

Multiplication of learnings transferred to new projects

Execution capacity in India for multiple projects simultaneously

Chandrapur

BathindaRoparDarlaghat

Pli

Wadi

Lakher

moreJamBarh

Gagal

Chanda

TikariaSindriBhataparaSankrailDamodarSindriTikaria

ChandaGagal

BargarhJamul KymoreLakheri

WadiRabriyawasDarlaghat

Kodinar

RoparBathinda

ChandrapurBhataparaMumbai

ChaibasaSanand

Surat

RoorkeeDadriNalagarh

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1995 2000 2005 2010 2015

Cement demand growth outpaces GDP growth

India – a case study: to enter a new market with local partners building

Strategy – resources management

• Complete current capacity expansion

projects (+10% new capacity by 2011)

• CAGR 2010/15 cement volumes: +8 to

10% – calls for further capacity additions

• Focus on RMX business in consumption

centres to extend our market reach

BathindaRoparDarlaghat

Pa

Wadi

Maduk

Lakher

i Ky

moreJamBarh

Gagal

Chanda

Tikaria

SindriBhatapara

SankrailDamodarSindriTikaria

ChandaGagal

BargarhJamul

KymoreLakheri

MadukkaraiWadiRabriyawas

Darlaghat

Kodinar

RoparBathinda

Chandrapur

BhataparaMumbai

FarakkaChaibasa

Integrated Plant Grinding Station Import Terminal ACC

ACL

Integrated Plant Grinding Station Import Terminal ACC

ACL Product flows

SanandSurat

RoorkeeDadriNalagarh

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For the right price we are ready to mobilize the funds to do substantial acquisitions to strengthen our position in strategic markets

Huaxin footprint is our platform in China

>3,000 km

Brazil is a building site

we explore all options

J Santos

Ciplan

Total

2009 [considers pro-forma transactions

Voto-Lafarge & Camargo-Cimpor]

27

63

7655

25

VotorantimCamargo

J Santos

Ciplan

Total

2009 [considers pro-forma transactions

Voto-Lafarge & Camargo-Cimpor]

27

63

7655

25

VotorantimCamargo

Business integration completed

in Australia in less than a year

Company

lgdXObCol1Cement Australia

lgdXObCol2Holcim Australia

Company

Holcim Australia

83 Aggregates plants

249 RMX plants

16 Pipe and precast plants

Holcim Australia

83 Aggregates plants

249 RMX plants

16 Pipe and precast plants

done

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Create value from our asset base and superior positioning

Customers needs and our position in the market

Operational

performance

excellence

People development

Resources management excellence

„Glue“ of the Holcim culture

Create value from our asset base and superior positioning

Customers needs and our position in the market

Operational

performance

excellence

People development

Resources management excellence

„Glue“ of the Holcim culture

As a Group our success rests on local management teams who can excel in the following five areas

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• Drivers for construction are urbanization & infrastructure

• Sharpen our front-end skills and understand what our customers and our customer‘s customers really need

• Product innovation & value added services have to be geared to this end

• As solution provider we can differentiate & create value

Our positioning in the market and focus on customer needs

Create value from

our asset base and

„Glue“ of theHolcim cultureCreate value from

our asset base and

„Glue“ of theHolcim culture

Transactional

Mortars

Ready -mix Concrete

Asphalt

Concrete Products

Cementitious Materials

(cement,mineralcomponents)

Direct Sales

Infrastructure

Commercial / Industrial Building Housing

Demand Supply

Basic Materials Processing

Direct Sales

Aggregates

(sand, gravel, stone, recycled aggregates)

l i c

t i o n s

Applications and Construction Fields End - users

General Contractors

Civil engineering contractors

Masons, Self - builders

Channels Transformational Transactional

Mortars

Ready -mix Concrete

Asphalt

Concrete Products

Cementitious Materials

(cement,mineralcomponents)

Direct Sales

Infrastructure

Commercial / Industrial Building Housing

Demand Supply

Basic Materials Processing

Direct Sales

Aggregates

(sand, gravel, stone, recycled aggregates)

l i c

t i o n s

Applications and Construction Fields End - users

General Contractors

Civil engineering contractors

Masons, Self - builders

Channels Transformational

Pulling from the customer side

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• What we want to achieve is defined top down

• How to do it, is driven by field management bottom-up

• Benchmark is best-in-class performance, in all segments

• Global and regional support organizations provide expertise and facilitate knowledge turntable

Operational performance drives margins

Create value from

our asset base and

HR Management

Sustainable Development

Customers, products & services

Operational management

General / Finance

Focus targets

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Manufacturing Performance Concept – various layers

Operational performance in Cement drives margins

facturing Excellence

Manu-Measuring excellence in cement manufacturing

Best in class

Best in class Best in class Best in class

Benchmarking fosters continuous improvement

Create value from

our asset base and

Analysis of the whole process from quarry to lorry

Manufacturing Performance Review

Underperforming kiln line

Kiln Watch List

Top Class Maintenance

Sustainable high equipment availability at adequate maintenance costs and replacement investments

For strategic development of the plant

Plant Master Plan

Plant Fitness – toolbox and focus

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Key Performance Improvement Products & Services

Operational performance in Aggregates drives margins

Methodology – Overall Performance Enhancement

Operational Performance

Monitoring Reporting Activities Tools

Evaluations, Results plans

Daily/weekly operating reports, Energy reports

Daily/weekly reviews, Action log updates, Plant tours

Short interval control, Lost time tracker, Daily checklist, Maintenance schedule, Energy monitoring

OPE

AGG Operational Reviews (AOR) Overall Performance Enhancement Maintenance Processes for AGG AGG Managers Training

Performance Excellence

in AGG 1

Example AOR – Review of reserves & mining practices Example: AOR – Process Optimization

Create value from

our asset base and

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Key Performance Improvement Products & Services

Operational performance in Ready-mix Concrete drives margins

Delivery pattern in 2007: Optimized delivery pattern:

(with current Progresul plant)

Delivery pattern in 2007: Optimized delivery pattern:

(with current Progresul plant)

• Data input

• Data analysis

• Numerical Mix Design Optimization (MDO)

• Perform comparative fresh concrete tests (in lab and/or plant)

• Prepare samples for testing hardened concrete properties

• Testing hardened concrete properties (cubes/cylinders)

• Analysis of test results

• ev fine-tuning of Mix Design

• Put optimized Mix Designs into production 1.

Performance Excellence

in RMX

Methodology: Concrete Operational Review

MARKET & SALES

Consumption Centre

Strategy Implementation and Market Positioning

PRODUCTION

Plant Level Plant Level

CONCRETE TECHNOLOGY

Management & Organisation

DISTRIBUTION

Consumption Centre

Maximizing Fleet Efficiency, Resources and Productivity

Maximize Operational Efficiency/Productivity

Minimize Mix Cost & Optimize Process Control

Create value from

our asset base and

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Our people drive Holcim – maintaining the “glue” and integrity of the Holcim culture

• Growth is the dynamo of success of this Group

• We follow a truly global and multi-cultural growth strategy

• People need time to adapt – they set the pace of change

• In essence, it is all about winning hearts and minds

Create value from

our asset base and

Strength Performance Passion.

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Our people drive Holcim – people development

• People development is a key leadership competency

• From shop floor skills training to management programs

• Line management relies on competent HR support

• Bench-strength is essential and the result of these efforts

• Hire for attitude & develop the skills along the career path

Create value from

our asset base and

Holcim Leadership Competency Model

Vocational Education / Apprenticeship Schools

Manuf Workforce Training Basic Trade Skills

Core Curriculum Dialogue Training

Management Education

Executive Education

Vocational Education / Apprenticeship Schools

Manuf Workforce Training Basic Trade Skills

Core Curriculum Dialogue Training

Management Education

Executive Education

Tiêu đề	Concentrate on what we can influence
Thể loại	speech
Năm xuất bản	2010
Thành phố	St. Louis

Định dạng
Số trang	36
Dung lượng	3,36 MB