LAFARGEHOLCIM

LafargeHolcim makes good progress in 2017

Net sales grew 4.7 % on a like-for-like basis for the full year, largely driven by higher cement volumes. Recurring EBITDA reached CHF 5990 million for the full year.

Free cash flow grew by 1.5 % for the full year. Net debt stood at CHF 14346 million as of 31.12.2017, a reduction of around CHF 400 million compared to the previous year.

Strategy 2022 – “Building for Growth” to drive growth

LafargeHolcim launched its new Strategy 2022 – ‘Building for Growth’, aiming to drive profitable growth and simplify the business to deliver resilient returns.

The new strategy will shift gears towards growth of the top and bottom line over the next five years. Over this period, the group commits to the following targets:

annual net sales growth of 3 to 5 %

annual recurring EBITDA growth of at least 5 %

improvement in free cash flow to over 40 % of recurring EBITDA

improvement in ROIC to more than 8 %

The strategy is based on the four value drivers of Growth, Simplification & Performance, Financial Strength and Vision & People.

The building materials market is a CHF 2500 billion fragmented global market which is forecast to grow 2 to 3 % per annum, faster than GDP.

LafargeHolcim will invest in markets where greater opportunities exist while being more selective in other markets. The group will build a fourth business segment, Solutions & Products, to take advantage of products and applications that are closer to the customer.

The value driver Simplification & Performance will create a cost disciplined operating model and a corporate-light structure. There will be a greater focus on countries, with local markets empowered and fully profit and loss accountable. The 35 biggest markets will report directly to group management and local profit and loss leaders will be assigned for all four business segments. The two corporate business functions Performance & Cost and Growth & Innovation have been merged and the group management is reduced to nine members. The simplification will allow LafargeHolcim to improve its cost efficiency considerably. This is expected to create an SG&A cost saving of CHF 400 million per annum with the related program expected to be completed by Q1 2019. As part of this program, the corporate offices in Singapore and Miami will be closed by mid-year.

Outlook 2018

For 2018, LafargeHolcim targets net sales growth of 3 to 5 % and an over-proportional increase in recurring EBITDA of at least 5 % on a like-for-like basis. While there is a focus on selected growth initiatives, Capex spending will remain below CHF 2 billion.

//www.lafargeholcim.com" target="_blank" >www.lafargeholcim.com:www.lafargeholcim.com

x

Related articles:

Issue 5/2019 LAFARGEHOLCIM

Strong sales growth and increase of net income in 2018

Net sales grew 5.1?% on a like-for-like basis for the full year, largely driven by higher cement volumes. Net sales reached CHF 27466 million. 2018 reported net income amounted to CHF 1719 million....

more
Issue 6/2019 LAFARGEHOLCIM

LafargeHolcim divests activities in Malaysia and Singapore ...

LafargeHolcim has signed an agreement with YTL Cement Berhad for the divestment of its entire 51 % shareholding in Lafarge Malaysia Berhad for a consideration of US$ 396 million fully payable in cash,...

more
Issue 4/2018 LAFARGEHOLCIM

LafargeHolcim to invest CHF 200 million to drive further growth in India

LafargeHolcim will strengthen its presence in India with the construction of a new cement plant in the state of Rajasthan in the north of the country. The CHF 200 million investment will serve...

more
Issue 6/2019

... as well as in the Philippines

LafargeHolcim has signed an agreement with San Miguel Corporation for the divestment of its entire 85.7 % shareholding in Holcim Philippines Inc. for an enterprise value of US$ 2.15 billion, on a 100...

more
Issue 5/2016 SIKA GROUP

Continued growth momentum with record profit in 2015 for Sika

In the 2015 business year, the profitable growth strategy continued with a record year and sales of CHF 5489.2 million. This equates to an increase of 6.2?% in local currencies. All regions...

more