Strength. Performance. Passion.
Third Quarter Interim Report 2011 Holcim Ltd
Key figures Group Holcim
January–September
2011
2010
±%
±% like-forlike
Annual cement production capacity
million t
215.2
211.5
Sales of cement
million t
108.1
102.8
+5.2
+5.2
Sales of mineral components
million t
3.8
3.1
+22.9
+22.9
Sales of aggregates
million t
130.4
118.8
+9.8
+5.1
36.1
34.4
+5.0
+1.9
7.6
7.8
–2.2
–2.2
1
+1.8
+1.8
Sales of ready-mix concrete
million m
Sales of asphalt
million t
Net sales
million CHF
15,461
16,568
–6.7
+5.8
Operating EBITDA
million CHF
2,971
3,577
–16.9
–4.4
Operating EBITDA margin
%
19.2
21.6
EBITDA
million CHF
3,167
3,897
–18.7
Operating profit
million CHF
1,753
2,178
–19.5
–6.4
Operating profit margin
%
11.3
13.1
Net income
million CHF
1,004
1,223
–17.9
–5.1
Net income margin
%
6.5
7.4
Net income – shareholders of Holcim Ltd
million CHF
713
875
–18.5
–6.3
Cash flow from operating activities
million CHF
930
2,053
–54.7
–47.1
Cash flow margin
%
6.0
12.4
Net financial debt
million CHF
12,127
11,3631
+6.7
+9.0
Total shareholders’ equity
million CHF
19,424
21,121
–8.0
Gearing2
%
3
62.4
53.81
82,432
80,3101
+2.6
CHF
2.23
2.73
–18.3
CHF
2.23
2.73
–18.3
Personnel Earnings per share
3
Fully diluted earnings per share3
1
Due to rounding, numbers presented throughout this report may not add up precisely to the totals provided. All ratios and variances are calculated using the underlying amount rather than the presented rounded amount.
+2.1
Principal key figures in USD (illustrative) 4
Net sales
million USD
17,569
15,630
+12.4
Operating EBITDA
million USD
3,376
3,375
0.0
Operating profit
million USD
1,992
2,055
–3.1
Net income – shareholders of Holcim Ltd
million USD
810
825
–1.8
Cash flow from operating activities
million USD
1,057
1,937
–45.4
Net financial debt
million USD
13,474
12,0881
+11.5
Total shareholders’ equity
million USD
21,582
22,4691
–3.9
Earnings per share3
USD
2.53
2.58
–1.9
Principal key figures in EUR (illustrative)
428.indd 3
s of December 31, A 2010.
2
et financial debt N divided by total shareholders’ equity.
3
PS calculation based E on net income attributable to shareholders of Holcim Ltd weighted by the average number of shares.
4
tatement of income S figures translated at average rate; statement of financial position figures at closing rate.
4
Net sales
million EUR
12,469
11,834
Operating EBITDA Operating profit
million EUR
2,396
2,555
–6.2
million EUR
1,414
1,556
–9.1
Net income – shareholders of Holcim Ltd
million EUR
575
625
–8.0
Cash flow from operating activities
million EUR
750
1,466
–48.8
Net financial debt
million EUR
9,940
9,0901
+9.4
Total shareholders’ equity
million EUR
15,921
16,897
Earnings per share
EUR
1.80
1.95
3
1
1
+5.4
–5.8 –7.7
07.11.2011 14:52:13
Third Quarter 2011
Better results in third quarter and organic growth in four of the five Group regions Higher sales volumes in cement, aggregates and ready-mix concrete over nine months and in the third quarter Latin America and Asia/Pacific on growth path Europe and North America lack key stimuli As of end of September, operating EBITDA impacted by CHF 458 Million, due to the strong Swiss franc Declining operating EBITDA as per end of September due to cost increases which could not yet be passed on completely to sales prices
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Shareholders’ Letter
Dear Shareholder As expected, many emerging markets enjoyed brisk construction activity. However, in the eurozone and in North America, growth mainly remained restrained. Despite this, Holcim increased its third quarter and nine months sales volumes for cement, aggregates and readymix concrete. Only asphalt declined slightly. The higher demand was accompanied by above-average inflation for energy, transport and raw materials. These cost increases could for the time being only partially be passed on to sales prices. However, the Group’s operating EBITDA was also negatively impacted in the amount of CHF 458 Million by the strong Swiss franc, and by the fact that, contrary to last year, sales of CO2 emissions certificates in Europe are still outstanding. Costs which could be influenced were kept well under control. On a like-for-like basis, operating EBITDA was higher than last year in Latin America and Asia Pacific. Europe fared less well, mainly because of the still outstanding sales of CO2 certificates. In the US, the ongoing insufficient demand for construction materials and the stabilization of prices at a low level both impacted results. Group
Jan–Sept
Jan–Sept
±%
±%
2011
2010
Sales of cement in million t
108.1
102.8
+5.2
Sales of aggregates in million t
130.4
118.8
+9.8
+5.1
36.1
34.4
+5.0
+1.9
7.6
7.8
–2.2
–2.2
Sales of ready-mix concrete in million m3 Sales of asphalt in million t Net sales in million CHF
like-for-like +5.2
15,461
16,568
–6.7
+5.8
Operating EBITDA in million CHF
2,971
–16.9
–4.4
Net income in million CHF
1,004
3,577 1,223
–17.9
–5.1
Net income – shareholders of Holcim Ltd in million CHF
713
875
–18.5
–6.3
Cash flow from operating activities in million CHF
930
2,053
–54.7
–47.1
July–Sept
July–Sept
±%
2011
2010
Sales of cement in million t
37.2
35.0
+6.2
+6.1
Sales of aggregates in million t
49.2
45.6
+8.0
+3.3
Sales of ready-mix concrete in million m3
13.0
12.5
+3.8
+0.4
3.3
3.4
–3.5
–3.5
Group
Sales of asphalt in million t
±% like-for-like
Net sales in million CHF
5,318
5,666
–6.1
+8.2
Operating EBITDA in million CHF
1,074
1,234
–13.0
+1.1
418
612
–31,6
–21.0
Net income in million CHF Net income – shareholders of Holcim Ltd in million CHF
356
544
–34.5
–25.0
Cash flow from operating activities in million CHF
858
1,147
–25.2
–14.5
2 3
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Third Quarter 2011
Development of sales volumes Consolidated cement deliveries increased by 5.2 percent to 108.1 million tonnes by end of September 2011. Shipments of aggregates increased by 9.8 percent to 130.4 million tonnes, and ready-mix concrete rose by 5 percent to 36.1 million cubic meters. The cement segment in Group region Latin America achieved the strongest rise, followed by Asia Pacific and Europe. Latin America also ranked first in terms of aggregates, while Asia Pacific too achieved double-digit growth. North America experienced a particularly sharp rise in sales of ready-mix concrete. Financial results Consolidated net sales decreased by 6.7 percent to CHF 15.5 billion, mainly because of exchange rate factors. On a like-for-like basis, it rose by 5.8 percent. Operating EBITDA fell by 16.9 percent to CHF 3 billion, but on a like-forlike basis the decline came to a smaller 4.4 percent, and organic growth reached 1.1 percent in the third quarter. In particular, the Group companies in Russia, Singapore, Indonesia, Colombia as well as Holcim Australia made larger contributions in Swiss francs to the result. While many other Group companies improved their results in local currency terms, in the consolidated financial statements these successes were cancelled out by the strong Swiss franc however. The Group company in the Philippines was among those to see their performance hit by rising costs and regional falls in selling prices. The operating EBITDA margin reached 19.2 percent (nine months 2010: 21.6) despite the still outstanding sales of CO2 emissions certificates. Signs of a slight improvement in operating EBITDA did start to emerge in the third quarter, as demand clearly increased, particularly in the emerging markets and in North America. As a result of the increase in net current assets, one-off tax refunds in the previous year and lower operating EBITDA, cash flow from operating activities came to CHF 930 million. From January to September 2011, net income decreased by 17.9 percent to CHF 1 billion and net income attributable to shareholders of Holcim Ltd declined by 18.5 percent to CHF 713 million. In the past twelve months, net financial debt decreased by 4.7 percent from CHF 12.7 billion to CHF 12.1 billion, due to cash flow from operating activities and the depreciation of various currencies against the Swiss franc. Positive volume development in Europe in cement and aggregates In Group region Europe demand increased. However, these was still a lack of building material intensive projects. More construction work is ongoing in Russia, primarily in the greater Moscow area. In Group region Europe, Holcim sold more cement and aggregates in the first nine months of 2011, despite the difficult market situation in Spain. Ready-mix concrete deliveries nearly matched the previous year’s level.
Europe Sales of cement in million t
Jan–Sept
Jan–Sept
2011
2010
±%
±%
20.6
20.1
+2.3
+2.3
like-for-like
Sales of aggregates in million t
63.6
59.5
+6.9
+1.8
Sales of ready-mix concrete in million m3
12.2
12.4
–1.4
–1.6
Sales of asphalt in million t Net sales in million CHF Operating EBITDA in million CHF
4.2
4.4
–6.5
–6.5
4,691
5,136
–8.7
+1.9
707
855
–17.3
–9.4
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July–Sept
July–Sept
2011
2010
7.8
8.1
–3.9
–3.9
22.4
22.0
+2.0
–3.5
Sales of cement in million t Sales of aggregates in million t Sales of ready-mix concrete in million m
like-for-like
4.2
4.6
–7.9
–7.6
1.5
–12.1
–12.1
1,605
1,832
–12.4
–0.9
329
355
–7.3
+1.5
Sales of asphalt in million t Operating EBITDA in million CHF
±%
1.4
3
Net sales in million CHF
±%
Shareholders’ Letter
Europe
Aggregate Industries UK saw its shipments of aggregates fall back slightly amid declining exports to continental Europe; asphalt volumes also decreased. Ready-mix concrete volumes were supported by supplies for major construction projects in London. Holcim France achieved higher delivery volumes in all segments, with the aggregates and ready-mix concrete acquisitions made in Alsace at the beginning of the year having a positive effect. The price pressure eased slightly in the course of the year. In Belgium, competition remained fierce, putting pressure on cement and ready-mix concrete prices. Holcim Germany benefited from infrastructure projects and increased its sales volumes in all segments. Primarily in the ready-mix business sales prices remained under pressure. The Group company in southern Germany also recorded higher sales across its entire product range, due in part to an increase in exports to Switzerland. In Switzerland, where conditions for the construction sector were robust, Holcim achieved an increase in volumes in all segments despite growing pressure on prices. Due to slow construction activity and deconsolidations, sales volumes at Holcim Italy decreased. However, cement prices started to recover slightly from the low level of 2010. Construction projects in preparation for the 2015 World Expo in Milan generated some positive stimuli. At Holcim Spain, demand was depressed by the lack of activity in the private house-building sector and the decline in public spending on construction projects. Holcim Spain decided to close 25 ready-mix concrete plants; this led to nonrecurring costs. In Eastern and Southeastern Europe the construction sector mainly stagnated. A few infrastructure projects made a positive impact on demand, so most Group companies increased their shipments of cement. The strongest volume increase was achieved in Romania and Slovakia. The aggregates segment also recorded an increase in sales volumes, driven by the Group companies in the Czech Republic, Romania, Croatia and Bulgaria. Overall, volumes of ready-mix concrete declined slightly despite positive trends in Croatia, Romania and Serbia. Due to the difficult market conditions, Holcim Hungary lagged behind its previous-year figures in all segments. In Russia, Holcim benefited from a revival in construction activity in the greater Moscow area and increased its sales of cement significantly. Due to the brisk demand, prices also increased. At Garadagh Cement in Azerbaijan cement deliveries declined in the face of a sharp rise in imports. Cement sales in Group region Europe increased by 2.3 percent to 20.6 million tonnes in the first nine months of 2011. Deliveries of aggregates rose by 6.9 percent to 63.6 million tonnes. However, volumes of ready-mix concrete decreased by 1.4 percent to 12.2 million cubic meters.
4 5
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Third Quarter 2011
Operating EBITDA for Group region Europe decreased by 17.3 percent to CHF 707 million. In Swiss franc terms, the results were depressed by a combination of the weak euro and the still outstanding sales of CO2 emissions certificates. These came to CHF 11 million, compared to CHF 75 million during the same period last year. Many Group companies were only partially able to offset the rise in costs with price increases. Better results were achieved primarily at Holcim Russia and Holcim Switzerland. Internal operating EBITDA development came to –9.4 percent, and was positive with 1.5 percent in the third quarter. Slightly better demand for building materials in North America There is still a lack of important stimuli in the US construction sector. However, public road-building did create some activity, primarily in the third quarter. Canada’s economy developed weakly in those markets relevant to us. North America Sales of cement in million t Sales of aggregates in million t Sales of ready-mix concrete in million m
3
Sales of asphalt in million t Net sales in million CHF Operating EBITDA in million CHF North America Sales of cement in million t Sales of aggregates in million t Sales of ready-mix concrete in million m3 Sales of asphalt in million t
Jan–Sept
Jan–Sept
2011
2010
±%
±% like-for-like
8.5
8.4
+1.2
+1.2
31.9
28.8
+11.0
+2.2
5.1
4.2
+21.0
–3.3
3.5
3.4
+3.1
+3.1
2,151
2,449
–12.1
–1.0
264
366
–28.0
–17.1
July–Sept
July–Sept
±%
±%
2011
2010
3.5
3.4
14.4 2.2
like-for-like +3.6
+3.6
13.3
+8.7
+1.7
1.7
+26.9
+2.1
1.9
1.9
+3.6
+3.6
Net sales in million CHF
962
1,044
–7.9
+5.0
Operating EBITDA in million CHF
172
226
–24.2
–12.1
In August, cement sales by Holcim US exceeded one million tonnes for the first time since October 2008. Demand remained weak in the southern US states. Aggregate Industries US significantly increased its deliveries of aggregates, ready-mix concrete and asphalt. In the aggregates segment, the Group company benefited from slightly stronger demand in the mid-Atlantic region and in Minneapolis/St. Paul. Sales of asphalt increased in the northeast of the country and in the west central region. The full takeover in March of Lattimore Materials strengthened the market presence in Texas. Holcim Canada felt the decline in construction activity in all relevant markets. In Ontario, construction activity increased again slightly in the house-building segment, but commercial construction remained sluggish. On balance, the Group company sold less cement and ready-mix concrete. Volumes increased in the aggregates segment, but there was less demand for high-grade gravel and prices came under pressure. However, like-for-like, operating EBITDA of Holcim Canada improved by 3.8 percent in the third quarter. Consolidated cement shipments in Group region North America increased by 1.2 percent to 8.5 million tonnes. Primarily due to an acquisition, deliveries of aggregates increased by 11 percent to 31.9 million tonnes, and readymix concrete sales were up by 21 percent to 5.1 million cubic meters.
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Shareholders’ Letter
Operating EBITDA for Group region North America fell by 28 percent to CHF 264 million. All three Group companies were unable to improve on their previous year’s results. Higher energy and distribution costs had a negative impact on the operating result of Holcim US. Expenses were also incurred for the temporary closure of the Catskill plant in New York State. Due to increased production costs Aggregate Industries US recorded lower results. At Holcim Canada, rising price pressure, particularly in the ready-mix concrete business, and higher cement manufacturing costs had a negative impact on the income statement. Internal operating EBITDA development in Group region North America came to –17.1 percent (third quarter 2011: –12.1). Solid markets in Latin America In Group region Latin America, the economy made positive headway in most countries. Numerous infrastructure projects supported demand for building materials, particularly in Brazil, Argentina, Colombia and Chile. All Group companies sold more cement than in the previous year and nearly all also increased their sales of aggregates and ready-mix concrete. Latin America
Jan–Sept
Jan–Sept
2011
2010
Sales of cement in million t
18.0
16.8
+6.7
+6.7
Sales of aggregates in million t
10.9
9.0
+21.4
+21.4
Sales of ready-mix concrete in million m3
±%
±% like-for-like
8.2
7.7
+7.1
+7.1
2,467
2,587
–4.6
+10.7
662
762
–13.1
+1.6
July–Sept
July–Sept
±%
2011
2010
Sales of cement in million t
6.3
5.7
+9.2
+9.2
Sales of aggregates in million t
3.9
3.1
+25.8
+25.8
Sales of ready-mix concrete in million m3
2.9
2.8
+8.0
+8.0
Net sales in million CHF Operating EBITDA in million CHF Latin America
±% like-for-like
Net sales in million CHF
823
862
–4.5
+14.3
Operating EBITDA in million CHF
224
239
–6.3
+12.5
The Mexican construction sector recovered a little due to the national infrastructure plan and private housebuilding activity. However, commercial construction projects remained thin on the ground, and some public sector construction projects continued to be postponed. However, Holcim Apasco sold more building materials in all segments, with aggregates exhibiting strong growth. El Salvador enjoyed good levels of construction activity. The local Group company increased sales across all segments, in some cases significantly so. Holcim Costa Rica and Holcim Nicaragua combined increased shipments of aggregates and ready-mix concrete. The Colombian economy continued to develop well. There were particularly sharp increases in demand for building materials in the infrastructure segment, as well as in the residential and industrial construction sectors. The expansion of grinding capacity at the Nobsa plant allowed the Group company to sell significantly more cement, and sales of aggregates and ready-mix concrete also made good progress. Thanks to road-building and infrastructure projects, Holcim Ecuador increased deliveries of construction materials in all segments. Indeed, demand was such that clinker had to be bought in occasionally.
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Third Quarter 2011
In Brazil, the construction sector remained on its upward trend. Due to the high capacity utilization rate, Holcim Brazil concentrated on sales of higher value cement types. Nevertheless, shipments also slightly increased. With the commissioning of the second kiln line at the Barroso plant, from 2014, Holcim Brazil will increase its cement capacity in this dynamic growth market by 2.6 million tonnes to a total of 7.9 million tonnes. Deliveries of aggregates and ready-mix concrete remained stable. Argentina’s construction sector benefited from public sector investment ahead of the country’s presidential elections, but private investors tended to hold back. Minetti, which started marketing under the name Holcim Argentina in September, increased sales of cement and aggregates. Shipments of ready-mix concrete declined following the completion of infrastructure projects. In a difficult competitive environment, Cemento Polpaico in Chile experienced good volume growth in all segments. Consolidated cement sales in Group region Latin America increased by 6.7 percent to 18 million tonnes. Deliveries of aggregates rose by 21.4 percent to 10.9 million tonnes. Deliveries of ready-mix concrete also advanced by 7.1 percent to 8.2 million cubic meters. As a result of rising energy costs, particularly for petcoke, higher distribution costs and the fact that price increases could not yet be adjusted everywhere, operating EBITDA declined despite the volume growth by 13.1 percent to CHF 662 million. In Ecuador, higher maintenance costs and clinker purchases affected the income statement. The strong Swiss franc impacted above all on the results of the Group companies in Mexico, Ecuador and Argentina. Worthy of particular mention is the gratifying result achieved by Holcim Colombia. In Group region Latin America, internal operating EBITDA growth came to 1.6 percent and reached 12.5 percent in the third quarter. Unchanged market conditions in Africa Middle East In Morocco and Lebanon, the two most important markets in this Group region, construction activity remained brisk. Whereas in Morocco demand was supported by government stimulus programs in the social housing and infrastructure sectors, in Lebanon sales of construction materials were supported by private house-building. Africa Middle East
Jan–Sept
Jan–Sept
2011
2010
±%
±% like-for-like
Sales of cement in million t
6.5
6.8
–4.7
–4.7
Sales of aggregates in million t
1.7
1.9
–9.0
–9.0
0.8
0.8
+4.0
+4.0
Net sales in million CHF
706
849
–16.9
–3.1
Operating EBITDA in million CHF
237
286
–17.0
–3.7
July–Sept
July–Sept
±%
±%
2011
2010
2.1
2.1
+2.8
+2.8
Sales of ready-mix concrete in million m
3
Africa Middle East Sales of cement in million t
like-for-like
Sales of aggregates in million t
0.6
0.6
–2.7
–2.7
Sales of ready-mix concrete in million m3
0.3
0.3
–6.7
–6.7
223
253
–12.0
+2.6
69
77
–10.9
+3.3
Net sales in million CHF Operating EBITDA in million CHF
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Shareholders’ Letter
In an increasingly tight competitive environment, Holcim Morocco sold less cement and aggregates. However, a clear increase was achieved in sales of ready-mix concrete, mainly in the region of Fès. Despite some project delays at construction sites in Beirut, Holcim Lebanon sold slightly more cement and ready-mix concrete; exports remained negligible. The Indian Ocean companies sold more cement and ready-mix concrete. The Group companies in Mauritius and La Réunion in particular witnessed positive volume development, as did the Group company in Madagascar. Deliveries of aggregates declined slightly. In West Africa and the Arabian Gulf, volumes sold by the operations managed by Holcim Trading remained quite stable. Ivory Coast markets in particular firmed again slightly. Cement sales in Group region Africa Middle East decreased by 4.7 percent to 6.5 million tonnes, mainly due to the volume decline in Morocco. Aggregates also contracted by 9 percent to 1.7 million tonnes, while ready-mix concrete sales rose by 4 percent to 0.8 million cubic meters. Compared with the previous-year period, the operating EBITDA of Group region Africa Middle East declined primarily due to the currency impact by 17 percent to CHF 237 million. The internal operating EBITDA development came to –3.7 percent, but was positive in the third quarter with 3.3 percent. Continuing volume growth in Asia Pacific The Asian markets remained on their path of growth driven by brisk demand for building materials. Public spend ing on infrastructure was important in a number of countries, with cement consumption also increased by private residential and commercial construction activity. In Oceania, construction activity failed to gain real momentum due to a lack of concrete-intensive projects. Asia Pacific
Jan–Sept
Jan–Sept
2011
2010
Sales of cement in million t
56.2
53.2
+5.7
+5.7
Sales of aggregates in million t
22.3
19.6
+13.5
+13.5
Sales of ready-mix concrete in million m3
±%
±% like-for-like
9.8
9.3
+4.5
+4.5
Net sales in million CHF
5,929
6,020
–1.5
+12.4
Operating EBITDA in million CHF
1,264
1,439
–12.2
+1.1
July–Sept
July–Sept
±%
2011
2010
18.1
16.7
+8.7
+8.7
7.9
6.6
+19.2
+19.2
Asia Pacific Sales of cement in million t Sales of aggregates in million t Sales of ready-mix concrete in million m3 Net sales in million CHF Operating EBITDA in million CHF
±% like-for-like
3.4
3.1
+5.1
+5.1
1,865
1,825
+2.2
+18.7
335
367
–8.6
+7.6
In India, demand in the private construction sector declined slightly, particularly in the south of the country, due to higher interest rates and inflation. By contrast, the government’s extensive road-building program boosted the construction sector in virtually all parts of the country. Due to the successful commissioning of additional capacity, ACC achieved a significant increase in cement volumes. Sales of ready-mix concrete remained at previous year’s level. Ambuja Cements increased cement deliveries further in the northern parts of the country. In September, the Group company took a 60 percent majority stake in Dirk India, a fly ash dealer, thereby strengthening its activities in the production of composite cements.
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Third Quarter 2011
In Sri Lanka, the construction boom continued in a favorable market environment. Holcim Lanka had to import cement to meet the strong demand, but pressure on prices increased significantly. Holcim Bangladesh also delivered more cement. Siam City Cement in Thailand saw a rise in sales of cement in the growing domestic market. Deliveries of aggregates and ready-mix concrete rose substantially. Holcim Malaysia also sold more cement and ready-mix concrete amid positive market conditions. In Singapore shipments of ready-mix concrete declined slightly. In Indonesia, the construction sector remained on track for growth due to government infrastructure projects and expansion work in the industrial sector. Major projects in the transport and energy sectors, coupled with the construction of office buildings, shopping centers and entire residential developments fuelled a dynamic market. Across its whole product range Holcim Indonesia sold significantly more building materials than during the same period last year. The Philippine construction sector felt the lack of public sector investment activity. The situation improved slightly from August onward as both the government and private investors increasingly returned to the market to develop projects. During the first nine months of the year, cement deliveries nevertheless declined in a competitive market. However, sales of aggregates and ready-mix concrete increased. Construction activity in Oceania remained subdued. Despite a boom in Australia’s mining industry, there was a clear lack of cement and concrete intensive projects. Road-building in the aftermath of the floods impacted positively on cement demand only from the third quarter. On balance, Cement Australia sold less cement. Holcim Australia delivered more aggregates on both the east and west coasts, and increased deliveries overall in this segment. In the third quarter, shipments of ready-mix concrete also picked up slightly. Sales were more moderate in the pipe and concrete products segment at Humes due to project delays. Holcim New Zealand sold less building materials in all segments. This reflects private investors’ uncertainty over the future development of the economy. Consolidated cement shipments in Group region Asia Pacific climbed by 5.7 percent to 56.2 million tonnes. Aggregates saw an increase of 13.5 percent to 22.3 million tonnes. Deliveries of ready-mix concrete rose by 4.5 percent to 9.8 million cubic meters. Operating EBITDA in Group region Asia Pacific decreased by 12.2 percent to CHF 1.3 billion. Stronger results were achieved above all by the Group companies in Thailand, Vietnam, Malaysia, Singapore and Indonesia. However, negative currency effects depressed the results of all Group companies. Furthermore, at Cement Australia one-off costs for the closure of the Kandos plant occurred. Like-for-like, ACC exceeded its previous year result, but it proved impossible to pass on the full impact of inflation to prices. The internal operating EBITDA growth came to 1.1 percent and even reached 7.6 percent in the third quarter.
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07.11.11 14:50
Shareholders’ Letter
Outlook As a leading producer of construction materials, Holcim heavily depends on developments in economic activity. In Europe, the demand for construction materials should remain solid in many places. In North America we expect a slight improvement in the construction sector. Most emerging markets in Latin America and Asia should remain on track for growth. No change is anticipated in business conditions in Group region Africa Middle East. The sharp global rise in energy, raw material and transportation costs call for further price adjustments. This and continuous, consistent cost management are focal points at all levels of the Group. For the current financial year, Holcim expects a like-for-like operating EBITDA that will be close to last year’s level. The Group will be successful in securing its share of future growth in the emerging countries due to its consistently expanded presence in these markets. In Europe and North America, Holcim’s lean cost structure will enable it to benefit more than average from economic recovery.
Rolf Soiron
Markus Akermann
Chairman of the Board of Directors
Chief Executive Officer
November 9, 2011
10 11
3.Quartal_e_2011.indd 11
07.11.11 14:50
Third Quarter 2011
3.Quartal_e_2011.indd 12
07.11.11 14:50
Million CHF
Notes
Jan–Sept
Jan–Sept
July–Sept
July–Sept
2011
2010
2011
2010
Unaudited
Unaudited
Unaudited
Unaudited
15,461
16,568
5,318
5,666
(8,827)
(9,372)
(3,036)
(3,256)
6,633
7,196
2,282
2,410
Distribution and selling expenses
(3,874)
(3,988)
(1,291)
(1,338)
Administration expenses
(1,007)
(1,030)
(323)
(310)
1,753
2,178
669
762
8
3
(6)
4
(35)
104
119
24
42
9
161
237
85
220
10
(606)
(682)
(196)
(216)
1,416
1,846
585
773
(412)
(623)
(166)
(161)
1,004
1,223
418
612
Shareholders of Holcim Ltd
713
875
356
544
Non-controlling interest
291
348
62
68
Earnings per share1
2.23
2.73
1.11
1.70
Fully diluted earnings per share1
2.23
2.73
1.11
1.70
4, 7
2,971
3,577
1,074
1,234
4
3,167
3,897
1,161
1,466
Net sales
6
Production cost of goods sold Gross profit
Operating profit Other income (expenses) Share of profit of associates Financial income Financial expenses Net income before taxes Income taxes
11
Net income
Consolidated Financial Statements
Consolidated statement of income of Group Holcim
Attributable to:
Earnings per share in CHF
Million CHF Operating EBITDA EBITDA 1
EPS calculation based on net income attributable to shareholders of Holcim Ltd weighted by the average number of shares.
12 13
428.indd 13
07.11.2011 14:52:13
Third Quarter 2011
Consolidated statement of comprehensive earnings of Group Holcim Million CHF
Notes
Net income
Jan–Sept
Jan–Sept
July–Sept
July–Sept
2011
2010
2011
2010
Unaudited
Unaudited
Unaudited
Unaudited
1,004
1,223
418
612
(1,693)
(1,027)
299
(1,316)
Other comprehensive earnings Currency translation effects – Exchange differences on translation – Realized through statement of income
9
– Tax effect
10
10
2
1
(4)
423
(64)
(174)
(3)
12
4
(1)
Available-for-sale financial assets – Change in fair value – Realized through statement of income
9
424 (64)
(174)
– Tax effect Cash flow hedges – Change in fair value – Realized through statement of income – Tax effect
(1)
(1)
(1)
1
Net investment hedges in subsidiaries – Change in fair value – Tax effect Total other comprehensive earnings Total comprehensive earnings
(1,754)
(765)
249
(1,067)
(750)
458
667
(455)
(752)
196
592
(344)
2
262
75
(111)
Attributable to: Shareholders of Holcim Ltd Non-controlling interest
428.indd 14
07.11.2011 14:52:13
Million CHF
Notes
30.9.2011
31.12.2010
30.9.2010
Unaudited
Audited
Unaudited
3,071
3,386
3,641
22
30
27
Accounts receivable
3,212
2,590
3,796
Inventories
2,162
2,072
2,224
425
416
468
Cash and cash equivalents Marketable securities
Prepaid expenses and other current assets Assets classified as held for sale Total current assets Long-term financial assets Investments in associates Property, plant and equipment Intangible assets
18
18
36
8,910
8,512
10,192
772
921
549
1,339
1,432
1,425
22,017
23,343
24,144
8,480
9,061
9,487
Deferred tax assets
448
385
263
Other long-term assets
500
605
603
Total long-term assets
33,557
35,747
36,471
Total assets
42,467
44,259
46,663
Trade accounts payable
1,988
2,303
2,035
Current financial liabilities
3,584
2,468
3,764
447
555
680
1,732
1,632
1,805
Current income tax liabilities Other current liabilities Short-term provisions Total current liabilities Long-term financial liabilities Defined benefit obligations Deferred tax liabilities Long-term provisions
12
237
256
266
7,988
7,214
8,550
11,614
12,281
12,600
293
317
346
2,028
2,203
2,232
1,119
1,123
1,130
Total long-term liabilities
15,054
15,924
16,308
Total liabilities
23,042
23,138
24,858
654
654
654
Capital surplus
8,892
9,371
9,369
Treasury shares
(489)
(476)
(478)
Reserves
7,614
8,552
9,169
16,671
18,101
18,714
2,753
3,020
3,091
Total shareholders’ equity
19,424
21,121
21,805
Total liabilities and shareholders’ equity
42,467
44,259
46,663
Share capital
Total equity attributable to shareholders of Holcim Ltd Non-controlling interest
Consolidated Financial Statements
Consolidated statement of financial position of Group Holcim
14 15
428.indd 15
07.11.2011 14:52:13
Third Quarter 2011
Statement of changes in consolidated equity of Group Holcim Million CHF
Equity as at January 1, 2011
Share
Capital
Treasury
Retained
capital
surplus
shares
earnings
654
9,371
(476)
15,688
Net income
713
Other comprehensive earnings Total comprehensive earnings
713
Payout
(480)
Change in treasury shares Share-based remuneration
(23)
1
1
10
1
Capital paid-in by non-controlling interest Acquisition and disposal of participation in Group companies Change in participation in existing Group companies
(188)
Equity as at September 30, 2011 (unaudited)
654
8,892
(489)
16,215
Equity as at January 1, 2010
654
9,368
(455)
15,019
Net income
875
Other comprehensive earnings Total comprehensive earnings
875
Payout
(480)
Change in treasury shares
(30)
Share-based remuneration
1
7
9,369
(478)
3
Capital paid-in by non-controlling interest Change in participation in existing Group companies Equity as at September 30, 2010 (unaudited)
428.indd 16
(10) 654
15,407
07.11.2011 14:52:13
Cash flow
Currency
Total
Total equity
Non-controlling
Total
reserve
hedging
translation
reserves
attributable to
interest
shareholders’
reserve
adjustments
shareholders
equity
Consolidated Financial Statements
Available-for-sale
of Holcim Ltd 249
7
(7,392)
8,552
18,101
3,020
21,121
713
713
291
1,004
(1,465)
(289)
(1,754)
(68)
(4)
(1,393)
(1,465)
(68)
(4)
(1,393)
(752)
(752)
2
(750)
(480)
(207)
(687)
1
(22)
1
12
(22) 1
13
23
23
23
23
(188)
(188)
(109)
(297)
181
3
(8,785)
7,614
16,671
2,753
19,424
(2)
(2)
(5,549)
9,466
19,033
3,011
22,044
875
875
348
1,223
(679)
(679)
(86)
(765)
249
12
(940)
249
12
(940)
196
196
262
458
(480)
(480)
(210)
(690)
3
(27) 8
247
10
(27) 3
11
22
22
(6)
(16)
(16)
3
(13)
(6,495)
9,169
18,714
3,091
21,805
16 17
428.indd 17
07.11.2011 14:52:13
Third Quarter 2011
Consolidated statement of cash flows of Group Holcim Million CHF
Notes
Net income before taxes Other (income) expenses
8
Jan–Sept
July–Sept
July–Sept
2011
2010
2011
2010
Unaudited
Unaudited
Unaudited
Unaudited
1,416
1,846
585
773
(3)
6
(4)
35
(104)
(119)
(24)
(42)
445
445
112
(4)
Operating profit
1,753
2,178
669
762
Depreciation, amortization and impairment of operating assets
1,218
1,399
405
472
178
223
60
86
(1,341)
(1,101)
(39)
(75)
1,809
2,699
1,095
1,245
133
175
10
8
Share of profit of associates Financial expenses net
9, 10
Other non-cash items Change in net working capital Cash generated from operations Dividends received Interest received
92
115
32
47
Interest paid
(494)
(623)
(116)
(142)
Income taxes paid
(581)
(286)
(154)
7
Other expenses
(30)
(27)
(10)
(18)
Cash flow from operating activities (A)
930
2,053
858
1,147
Purchase of property, plant and equipment
(1,075)
(1,174)
(425)
(414)
Disposal of property, plant and equipment
65
90
35
23
(25)
(60)
(3)
0
3
0
0
0
(78)
(312)
(4)
(193)
Acquisition of participation in Group companies Disposal of participation in Group companies Purchase of financial assets, intangible and other assets Disposal of financial assets, intangible and other assets Cash flow used in investing activities (B) Dividends paid on ordinary shares
14
155
638
93
538
(955)
(818)
(304)
(46)
(480)
(480)
0
0
Dividends paid to non-controlling interest
(223)
(218)
(104)
(86)
Capital paid-in by non-controlling interest
23
22
19
2
Movements of treasury shares
(22)
(27)
0
(4)
Proceeds from current financial liabilities
4,355
4,622
1,317
1,492
Repayment of current financial liabilities
(3,759)
(5,208)
(1,442)
(1,560)
Proceeds from long-term financial liabilities
2,564
2,453
399
426
Repayment of long-term financial liabilities
(2,512)
(3,307)
(965)
(1,215)
(322)
(46)
(5)
(3)
Increase in participation in existing Group companies Decrease in participation in existing Group companies
27
30
0
0
Cash flow used in financing activities (C)
(349)
(2,159)
(782)
(948)
(De)Increase in cash and cash equivalents (A+B+C)
(375)
(924)
(227)
153
Cash and cash equivalents as at the beginning of the period (net)
3,069
4,261
2,701
3,237
(De)Increase in cash and cash equivalents
(375)
(924)
(227)
153
Currency translation effects
(154)
(121)
67
(174)
Cash and cash equivalents as at the end of the period (net)1
2,540
3,216
2,540
3,216
1
428.indd 18
Jan–Sept
Cash and cash equivalents at the end of the period include bank overdrafts of CHF 531 million (2010: 425), disclosed in current financial liabilities.
07.11.2011 14:52:13
2 Changes in the scope of consolidation
The unaudited consolidated third quarter interim financial
During the first nine months of 2011 and 2010, there were no
statements (hereafter “interim financial statements”) are pre-
business combinations that were either individually material
pared in accordance with IAS 34 Interim Financial Reporting.
or that were considered material on an aggregated basis.
Notes to the Consolidated Financial Statements
1 Basis of preparation
The accounting policies used in the preparation and presentation of the interim financial statements are consistent with those used in the consolidated financial statements for the year ended December 31, 2010 (hereafter “annual financial
3 Seasonality
statements”) except for the adoption as of January 1, 2011 of
Demand for cement, aggregates and other construction mate-
IAS 24 (amended) Related Party Disclosures, IFRIC 14 (amended)
rials and services is seasonal because climatic conditions affect
IAS 19 – Prepayment of a minimum funding requirement and
the level of activity in the construction sector.
Improvements to IFRSs. The amendments to IAS 24 (amended) are disclosure-related only and have no impact on the Group’s
Holcim usually experiences a reduction in sales during the first
financial statements. The amendment to IFRIC 14 (amended)
and fourth quarters reflecting the effect of the winter season
clarifies that companies recognize the benefit of a prepayment
in its principal markets in Europe and North America and tends
as a pension asset. The effect of applying this amendment has
to see an increase in sales in the second and third quarters
no material effect on the Group’s financial statements. The
reflecting the effect of the summer season. This effect can be
improvements to IFRSs relate largely to clarification issues only.
particularly pronounced in harsh winters.
Therefore, the effect of applying these amendments has no material impact on the Group’s financial statements. The interim financial statements should be read in conjunction with the annual financial statements as they provide an update of previously reported information. Due to rounding, numbers presented throughout this report may not add up precisely to the totals provided. All ratios and variances are calculated using the underlying amount rather than the presented rounded amount. The preparation of interim financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities and disclosure of contingent liabilities at the date of the interim financial statements. If in the future such estimates and assump tions, which are based on management’s best judgment at the date of the interim financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate during the period in which the circumstances change.
18 19
428.indd 19
07.11.2011 14:52:14
Third Quarter 2011
4 Information by reportable segment Europe
North
Latin
America January–September (unaudited)
Africa
America
Asia
Middle East
Pacific
Corporate/
Total
Eliminations
Group
2011
2010
2011
2010
2011
2010
2011
2010
2011
2010
2011
2010
2011
2010
50.0
50.0
23.2
23.2
33.4
33.4
11.2
11.2
97.4
93.7
215.2
211.5
18.0
16.8
6.5
6.8
56.2
53.2
(1.7)
3.5
3.6
(0.8)
(2.5)
108.1
102.8
(0.4)
23.9
24.0
52.7
49.6
(0.9)
(2.1)
84.2
78.8
0.9
0.8
3.8
3.1
22.3
19.6
130.4
118.8
19.4
17.4
106.9
99.8
2.9
2.2
23.5
19.0
7.6
7.8
Capacity and sales Million t Annual cement production capacity1 Sales of cement
20.6
20.1
8.5
8.4
– of which mature markets
12.7
12.4
8.5
8.4
7.9
7.7
1.8
1.2
1.1
1.1
Sales of aggregates
63.6
59.5
31.9
28.8
– of which mature markets
31.9
28.8
– of which emerging markets
18.0
16.8
6.5
6.8
Sales of mineral components
55.6
53.6
– of which emerging markets
8.0
5.9
Sales of asphalt
4.2
4.4
3.5
3.4
Sales of ready-mix concrete
12.2
12.4
5.1
4.2
– of which mature markets
10.8
10.9
5.1
4.2
1.4
1.5
Net sales to external customers 4,522
5,026
Million m
10.9
9.0
1.7
1.9
10.9
9.0
1.7
1.9
3
– of which emerging markets
8.2
7.7
0.8
0.8
9.8
9.3
36.1
34.4
4.3
4.4
20.2
19.5
15.9
14.9
8.2
7.7
0.8
0.8
5.5
4.9
2,587
706
849
5,676
5,657
253
363
(484)
(473)
2,587
706
849
5,929
6,020
(484)
(473) 15,461 16,568
1,784
1,732
(237)
(234)
Statement of income and statement of financial position Million CHF Net sales to other segments
2,449
2,406 2,467
169
110
Total net sales
4,691
5,136
2,151
2,449
– of which mature markets
3,858
4,247
2,151
2,449
62
– of which emerging markets
833
889
Operating EBITDA
707
855
264
366
– of which mature markets
494
572
264
366
15,461 16,568
7,556
8,194
2,467
2,587
706
849
4,145
4,288
(246)
(239)
7,905
8,374
662
762
237
286
1,264
1,439
(163)
(131)
2,971
3,577
268
298
(81)
(44)
945
1,192
(81)
(87)
2,027
2,385
19.2
21.6
– of which emerging markets
213
283
662
762
237
286
995
1,141
Operating EBITDA margin in %
15.1
16.6
12.3
14.9
26.8
29.5
33.6
33.7
21.3
23.9
EBITDA
691
855
242
845
549
651
224
272
1,271
1,448
191
(174)
3,167
3,897
Operating profit
295
377
30
95
515
608
201
245
890
1,003
(178)
(150)
1,753
2,178
6.3
7.3
1.4
3.9
20.9
23.5
28.5
28.9
15.0
16.7
11.3
13.1
8,728
8,738
6,760
6,809
3,591
4,000
687
695
8,916
9,371
180
204 28,863 29,817
14,807 14,379
7,972
7,882
4,747
5,315
1,363
1,250 13,259 14,095
318
1,338 42,467 44,259
Operating profit margin in % Net operating assets Total assets 1
428.indd 20
2,151
1
1
Prior-year figures as of December 31, 2010.
07.11.2011 14:52:14
North
Latin
America July–September (unaudited)
2011
2010
2011
Africa
America
Asia
Middle East
Pacific
Corporate/
Total
Eliminations
Group
2010
2011
2010
2011
2010
2011
2010
2011
2010
2011
2010
6.3
5.7
2.1
2.1
18.1
16.7
1.3
1.3
(0.6)
(1.0)
37.2
35.0
(0.3)
(0.2)
9.0
9.1
16.8
15.4
(0.3)
(0.8)
28.2
25.9
0.3
0.3
1.5
1.4
Notes to the Consolidated Financial Statements
Europe
Sales Million t
Sales of cement
7.8
8.1
3.5
3.4
– of which mature markets
4.4
4.6
3.5
3.4
– of which emerging markets
3.3
3.5
0.7
0.6
6.3
5.7
2.1
2.1
Sales of mineral components
0.5
0.5
Sales of aggregates
22.4
22.0
14.4
13.3
– of which mature markets
18.9
19.4
14.4
13.3
– of which emerging markets
3.5
2.6
Sales of asphalt
1.4
1.5
1.9
1.9
4.2
4.6
2.2
1.7
2.2
1.7
3.9 3.9
3.1 3.1
0.6 0.6
0.6 0.6
7.9
6.6
49.2
45.6
6.8
5.8
40.1
38.5
1.1
0.8
9.1
7.1
3.3
3.4
13.0
12.5
Million m 3 Sales of ready-mix concrete – of which mature markets
3.6
3.9
– of which emerging markets
0.6
0.7
1,525
1,787
2.9
2.8
0.3
0.3
3.4
3.1
2.9
2.8
0.3
0.3
1.6
1.6
7.4
7.2
1.8
1.5
5.6
5.3
862
223
253
1,808
1,720
5,318
5,666
862
223
56
105
(160)
(150)
253
1,865
1,825
(160)
(150)
5,318
5,666
629
595
(84)
(81)
2,765
3,013
Statement of income Million CHF Net sales to external customers Net sales to other segments
962
1,044
799 823
79
45
Total net sales
1,605
1,832
962
1,044
24
– of which mature markets
1,257
1,455
962
1,044
– of which emerging markets
348
377
Operating EBITDA
329
355
172
226
– of which mature markets
218
229
172
226
823
862
223
253
1,235
1,230
(76)
(69)
2,553
2,653
224
239
69
77
335
367
(55)
(30)
1,074
1,234
86
116
(29)
(17)
446
554
(26)
(13)
– of which emerging markets
111
126
224
239
69
77
249
251
Operating EBITDA margin in %
20.5
19.4
17.8
21.6
27.2
27.7
30.9
30.4
18.0
20.1
EBITDA
321
362
166
185
188
200
66
74
339
377
81
268
(60)
(36)
Operating profit
188
184
93
135
179
189
58
64
212
226
Operating profit margin in %
11.7
10.0
9.6
12.9
21.7
21.9
25.8
25.3
11.4
12.4
628
680
20.2
21.8
1,161
1,466
669
762
12.6
13.4
20 21
428.indd 21
07.11.2011 14:52:14
Third Quarter 2011
Reconciling measures of profit and loss to the consolidated statement of income of Group Holcim Million CHF
Notes
Jan–Sept
Jan–Sept
July–Sept
July–Sept
(unaudited)
2011
2010
2011
2010
Operating profit
1,753
2,178
669
762
Depreciation, amortization and impairment of operating assets
1,218
1,399
405
472
Operating EBITDA
2,971
3,577
1,074
1,234
Dividends earned
8
3
4
2
1
Other ordinary income (expenses)
8
3
25
2
(4)
104
119
24
42
85
172
59
193
3,167
3,897
1,161
1,466
(1,218)
(1,399)
(405)
(472)
Share of profit of associates Other financial income
9
EBITDA Depreciation, amortization and impairment of operating assets Depreciation, amortization and impairment of non-operating assets
8
(3)
(35)
0
(32)
Interest earned on cash and marketable securities
9
76
65
26
27
10
(606)
(682)
(196)
(216)
1,416
1,846
585
773
Financial expenses Net income before taxes
428.indd 22
07.11.2011 14:52:14
Notes to the Consolidated Financial Statements
5 Information by product line Million CHF
Cement1
Aggregates
Other
Corporate/
Total
construction
Eliminations
Group
materials and services January–September (unaudited)
2011
2010
2011
2010
2011
2010
9,015
9,644
1,223
1,197
5,222
5,727
999
1,042
674
714
477
10,015 10,686
1,897
1,911
5,699
2011
2010
2011
2010
Statement of income and statement of financial position Net sales to external customers Net sales to other segments Total net sales Operating EBITDA Operating EBITDA margin in % Net operating assets 1 2
2
15,461 16,568
445 (2,150) (2,201) 6,172 (2,150) (2,201) 15,461 16,568
2,452
2,990
396
396
123
191
2,971
3,577
24.5
28.0
20.9
20.7
2.2
3.1
19.2
21.6
18,882 19,907
5,685
5,822
4,295
4,088
28,863 29,817
ement, clinker and other cementitious materials. C Prior-year figures as of December 31, 2010.
Million CHF
Cement1
Aggregates
Other
Corporate/
Total
construction
Eliminations
Group
materials and services July–September (unaudited)
2011
2010
2011
2010
2011
2010
2,970
3,135
345
377
3,315
3,512
675
2011
2010
443
440
1,904
2,091
232
254
148
128
(724)
(759)
694
2,053
2,219
(724)
(759)
2011
2010
5,318
5,666
5,318
5,666
Statement of income Net sales to external customers Net sales to other segments Total net sales Operating EBITDA
816
946
174
174
84
114
1,074
1,234
Operating EBITDA margin in %
24.6
26.9
25.8
25.1
4.1
5.1
20.2
21.8
1
Cement, clinker and other cementitious materials.
22 23
428.indd 23
07.11.2011 14:52:14
Third Quarter 2011
6 Change in net sales Million CHF
Jan–Sept
Jan–Sept
July–Sept
July–Sept
2011
2010
2011
2010
Volume and price
967
(358)
464
(273)
Change in structure
130
1,106
42
426
Currency translation effects
(2,205)
46
(854)
(179)
Total
(1,107)
794
(348)
(26)
Jan–Sept
Jan–Sept
July–Sept
July–Sept
2011
2010
2011
2010
(156)
(241)
14
(283)
7 Change in operating EBITDA Million CHF Volume, price and cost Change in structure
8
183
8
78
Currency translation effects
(458)
21
(181)
(32)
Total
(605)
(37)
(160)
(237)
Jan–Sept
Jan–Sept
July–Sept
July–Sept
8 Other income (expenses) Million CHF
2011
2010
2011
2010
Dividends earned
3
4
2
1
Other ordinary income (expenses)
3
25
2
(4)
(3)
(35)
0
(32)
3
(6)
4
(35)
Jan–Sept
Jan–Sept
July–Sept
July–Sept
2011
2010
2011
2010
76
65
26
27
85
172
59
193
161
237
85
220
Depreciation, amortization and impairment of non-operating assets Total
9 Financial income Million CHF Interest earned on cash and marketable securities Other financial income Total
In the third quarter the partial realization of the change in fair value of the compensation related to the nationalization of Holcim Venezuela in the amount of CHF 54 million (2010: 174) has been recognized in the position “other financial income”. In the first nine month of 2010, the position also includes a value adjustment of CHF 44 million on long-term financial receivables – associates. The remaining amount in the position “other financial income” relates primarily to interest income from loans and receivables.
428.indd 24
07.11.2011 14:52:14
Million CHF
Jan–Sept
Interest expenses
Jan–Sept
July–Sept
July–Sept
2011
2010
2011
2010
(493)
(606)
(160)
(194)
(7)
(8)
(2)
(3)
Amortization on bonds and private placements Unwinding of discount on provisions
(35)
(23)
(25)
(10)
Other financial expenses
(69)
(86)
(16)
(40)
Foreign exchange (loss) gain net
(31)
1
(11)
15
Financial expenses capitalized Total
29
40
18
16
(606)
(682)
(196)
(216)
The positions “interest expenses” and “other financial expenses”
CHF 210 million and with respect to the CHF 250 million bond
relate primarily to financial liabilities measured at amortized
was CHF 95 million. The tendered bonds were accepted in full
cost.
and cancelled.
The position “financial expenses capitalized” comprises interest
Concurrent with the invitation to tender bonds for cash, Holcim
expenditures on large-scale projects during the reporting period.
Overseas Finance Ltd. issued a CHF 425 million bond with a
Notes to the Consolidated Financial Statements
10 Financial expenses
coupon of 3.375 percent and a tenor of 10 years, guaranteed by Holcim Ltd. The proceeds were used to finance the cash tender offer for the CHF 250 million bond and for general corporate pur 11 Income taxes
poses.
As a last restructuring step following the buyout of the noncontrolling interest in Holcim (Canada) Inc., Holcim (US) Inc. transferred in the first quarter 2010 its entire stake in Holcim (Canada) Inc. to its parent company Holcim Ltd. As a conse-
13 Contingencies and commitments
quence, Holcim (US) Inc. realized a capital gain in the amount
The Group’s commitments amounted to CHF 1,315 million
of CHF 518 million, which is eliminated in the Group’s conso
(December 31, 2010: 1,236). The increase is mainly related to
lidated accounts. The non-recurring tax charge of USD 171 mil-
capital expenditures for a new cement plant in Indonesia.
lion (CHF 181 million) on the capital gain appears as of the
There have been no significant changes for contingencies.
first quarter 2010 in deferred taxes. However, this charge is cash-neutral as it is fully offset by tax losses carried forward. “Income taxes paid” in the first nine months of 2011 were higher
14 Payout
in comparison to the previous corresponding period. In the
In conformity with the decision taken at the annual general
second quarter of 2010, Holcim (US) Inc. received a tax refund
meeting on May 5, 2011, a payout related to 2010 of CHF 1.50
pursuant to a change in local tax law which enabled it to offset
per registered share has been paid out of capital contribution
tax losses incurred in 2009 against taxable income of the pre
reserves. This resulted in a total payment of CHF 480 million.
vious five years. Further tax refunds were received by the two Indian companies in the third quarter 2010. 15 Events after the reporting period
There were no significant events after the reporting period. 12 Bonds
On May 18, 2011, Holcim Ltd and Holcim Overseas Finance Ltd. invited holders of the CHF 500 million bond due June 2012 and of the CHF 250 million bond due February 2013 to tender their bonds for cash. The aggregate principal amount of the bonds tendered with respect to the CHF 500 million bond was 24 25
428.indd 25
07.11.2011 14:52:14
Third Quarter 2011
16 Principal exchange rates Statement of income
Statement of financial position
Average exchange rates
Closing exchange rates
in CHF January–September
in CHF
2011
2010
30.9.2011
31.12.2010
30.9.2010
1 EUR
1.24
1.40
1.22
1.25
1.33
1 USD
0.88
1.06
0.90
0.94
0.98
1 GBP
1.42
1.63
1.40
1.45
1.55
1 AUD
0.92
0.96
0.88
0.95
0.95
53.94
59.79
48.85
56.33
57.53
1 CAD
0.90
1.03
0.87
0.94
0.95
1,000 IDR
0.10
0.12
0.10
0.10
0.11
100 INR
1.95
2.31
1.83
2.09
2.18
100 MXN
7.30
8.38
6.55
7.56
7.80
100 PHP
2.04
2.34
2.05
2.14
2.23
Holcim securities
Cautionary statement regarding forward-looking statements
The Holcim shares (security code number 1221405) are listed
This document may contain certain forward-looking state-
on the SIX Swiss Exchange and traded on the Main Standard of
ments relating to the Group’s future business, development
SIX Swiss Exchange. Telekurs lists the registered share under
and economic performance.
100 BRL
HOLN. The corresponding code under Bloomberg is HOLN VX, while Thomson Reuters uses the abbreviation HOLN.VX. Every
Such statements may be subject to a number of risks, uncer-
share carries one vote. The market capitalization of Holcim Ltd
tainties and other important factors, such as but not limited to
amounted to CHF 15.9 billion at September 30, 2011.
(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 document. Holcim assumes no obligation to update or alter forward- looking statements whether as a result of new information, future events or otherwise.
Financial reporting calendar
Press and analyst conference on annual results for 2011
April 17, 2012
Results for the first quarter 2012
May 9, 2012
Half-year results for 2012
Press and analyst conference for the third quarter 2012
428.indd 26
February 29, 2012
General meeting of shareholders
August 15, 2012 November 7, 2012
07.11.2011 14:52:14
Consolidated Financial Statements Holcim Ltd Zßrcherstrasse 156 CH-8645 Jona/Switzerland Phone +41 58 858 86 00 Fax +41 58 858 86 09 info@holcim.com www.holcim.com Corporate Communications Roland Walker Phone +41 58 858 87 10 Fax +41 58 858 87 19 communications@holcim.com Investor Relations Bernhard A. Fuchs Phone +41 58 858 87 87 Fax +41 58 858 80 09 investor.relations@holcim.com The German version is binding Š 2011 Holcim Ltd Printed in Switzerland on FSC paper 26 27
3.Quartal_e_2011.indd 27
07.11.11 14:50
3.Quartal_e_2011.indd 28
07.11.11 14:50
Holcim is a worldwide leading producer of cement and aggregates. Further activities include the provision of ready-mix concrete and asphalt as well as other services. The Group works in around 70 countries and employs more than 80,000 people.