Société Générale's Premium Review Conference

Transcription

1 Strength. Performance. Passion. Société Générale's Premium Review Conference Bernard Fontana, CEO Holcim Group Société Générale's Premium Review Conference 2012 Holcim Ltd

2 Agenda Assessing our strategy 3 Holcim Leadership Journey achieving our targets 8 Putting it all together ROIC 19 Société Générale's Premium Review Conference 2012 Holcim Ltd 2

3 Holcim s corporate strategy is based on three pillars Product Focus Two basic resources Cement Aggregates Value-adding products and services Ready-mix concrete Asphalt Concrete products Geographic Diversification Truly global Balanced between Regions Mature / emerging markets Fast growth in emerging markets Net Sales 2011 Op. EBITDA 2011 Local Management Global Standards 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 Customer excellence & cost leadership Société Générale's Premium Review Conference 2012 Holcim Ltd 3

4 Building on a proven strategy Goal Creation of Value Strategy Product Focus Geographic Diversification Local Management Global Standards Mindsets Sustainable Environmental Performance Better Cost Management Permanent Marketing Innovation Human Resources Excellence Corporate Social Responsibility Base People Société Générale's Premium Review Conference 2012 Holcim Ltd 4

5 The human face of our global positioning Over people in around 70 markets and roughly 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 2012 Holcim Ltd 5

6 Increased focus on ROIC Creation of Value Outside view Internal view ROIC & EV (Enterprise Value) - Credit Rating TSR (Total Shareholder Return) Op. EBITDA / Op. EBITDA - Margin ROIC & HVA (Holcim Value Added) Market capitalization (incl. minority interests) + financial debt (Dividend paid + share price appreciation) / Share Price Key operational indicator focused on cash-generation/ efficiency Company result after consideration of all costs of capital, incl. cost of equity Société Générale's Premium Review Conference 2012 Holcim Ltd 6

8 Driving ROIC based on strategy, people, execution ROIC* 2011 ROIC* 2014 Proven strategy > 8% < 8% Leadership Journey Dedicated people Focusing on execution, building on competencies * After tax Société Générale's Premium Review Conference 2012 Holcim Ltd 8

9 Holcim Leadership Journey Project Management Office organization Holcim Executive Committee Regional EXCOMs Program Management Office - Holcim Leadership Journey 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 Regional teams South Asia ASEAN East Asia Oceania Latin America Europe North America UK Africa Middle East OpCo teams Société Générale's Premium Review Conference 2012 Holcim Ltd 9

10 Driving additional growth through customer excellence Customer focus Value management Pricing policies Marketing and sales Value Proposition: Customer Excellence - creation & capture of demand through advice & service Additional operating profit (CHF m) Customer value management Value expansion 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 Société Générale's Premium Review Conference 2012 Holcim Ltd 10

11 Combining services with products into a solution in order to optimally satisfy customer needs Construction Process Specifiers Products + e.g. Permeable Concrete AGG for sub-base Solution Value added Services e.g. Structural / sustainable design Advise on LEED* certification Cost-benefit analysis Strategic partnerships Training for placing Certified contractors Tender / Specification A true solution is defined by and designed around customer needs * Leadership in Energy and Environmental Design Société Générale's Premium Review Conference 2012 Holcim Ltd 11

12 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 implemented the channel strategy along different stages the Holcim value chain according to the customer needs and objectives Focused on levers such as products, logistics, customer loyalty, technological tools, financing possibilities, training, and marketing Results Customer value management allows to successfully position our products and services, thereby strengthening and expanding our customer relationships along the value chain resulting in higher profitability Société Générale's Premium Review Conference 2012 Holcim Ltd 12

13 Driving profit growth through Cost Leadership Energy and AFR Additional operating profit (CHF m) Logistics Procurement Fixed cost Value Proposition: Cost Leadership - Optimization of cost base Cost management 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

14 Expanding energy and AFR opportunities Energy cost reduction potential* > 12.5% reduction or > CHF 300 m Key energy cost reduction levels Efficiency Grinding Fans and filters Burners Mixture Increased usage of petcoke, low rank coal, natural gas Procurement Contract management Spot market Portfolio optimization Strategic initiatives Identified initiatives allow for a considerable cost reduction 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

15 Moving goods more efficiently and at lower costs Logistics cost reduction potential* > 5% reduction or > CHF 200 m Key logistics efficiency and cost levers Efficiency Cycle management RRS** portfolio management Routing Optimized plant routes GPS implementation Optimized processes Contracts Outsourcing options Contract management Service provider analysis (2011 cement volumes transported) Strategic initiatives Identified initiatives allow for further 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

16 Getting more for less through managed procurement More for less with procurement* Key procurement levers > CHF 250 m reduction Standards / pooling Diversify / concentrate Standardized terms and conditions Economies of scale Manage supplier network Optimize geographical level of sourcing Contracts Contract management Service provider analysis Organization Redefining and adapting the procurement organization Identified procurement efficiency and cost saving opportunities amount to at least CHF 250 m by end 2014 * Compared to FY 2011 costs Société Générale's Premium Review Conference 2012 Holcim Ltd 16

17 Tailoring fixed costs to fit requirements Fixed cost reduction opportunities* > CHF 200 m reduction Key fixed cost levers Process Benchmarking Service centers Contracting Reduction of external sourcing Renegotiation Asset tailoring Review and adjustment of asset base Strategic initiatives Identified initiatives allow for further improvements of efficiency and costs Identified fixed cost tailoring and efficiency opportunities amount to at least CHF 200 m by end 2014 * Compared to FY 2011 costs Société Générale's Premium Review Conference 2012 Holcim Ltd 17

19 Growing ROIC through different levers Holcim Leadership Journey Internal Customer Excellence Cost Leadership NWC improvement Selective divestments Investment efficiency + ROIC External 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

20 Contact information and event calendar Contact information Event calendar Bernhard A. Fuchs Binit B. Sanghvi John M. Feigl Investor Relations Phone Fax February 27, 2013 April 17, 2013 Press and analyst conference on annual results for 2012 General meeting of shareholders 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: Société Générale's Premium Review Conference 2012 Holcim Ltd 20

21 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. Société Générale's Premium Review Conference 2012 Holcim Ltd 21

22