Strength. Performance. Passion.
Holcim at a Glance Providing foundations for society’s future
Contents
Providing foundations for society’s future
4
Strategic pillars
6
Solutions and products
7
Holcim Leadership Journey
8
Innovation
9
Present on all continents
10
Committed to environment and society
12
People
13
Corporate Governance
14
Key financial figures
15
Holcim at a Glance
3
Providing foundations for society’s future
Our vision is to provide foundations for society's future.
Our mission is to be the world's most respected and attractive company in our industry - creating value for all our stakeholders.
Employees: Sites:
70,000
1,750 Countries:
Figures as of December 31, 2013
4
Holcim at a Glance
70
Our profile Holcim is one of the world’s leading building materials companies and has a presence on all continents. With its solutions based on innovative products and services and a commitment to sustainable construction, Holcim is contributing to the success of its customers around the world – as a trusted partner for more than 100 years. In 2013, the Group’s global workforce of around 70,000 employees continued to work hard in order to further strengthen Holcim’s position as a market leader in cement, aggregates, and ready-mix concrete.
Net sales: CHF
19.7 billion
Operating EBITDA: CHF
3.9 billion
Holcim at a Glance
5
Strategic pillars
1
Cement and aggregates as a basis
2
Holcim focuses on its core business of cement and aggregates. In mature markets with specific customer needs, we also offer readymix concrete, concrete goods and asphalt including associated services. Innovative, application-driven quality products make us the provider of first choice.
3
Globally active and firmly rooted
Local responsibility with global leadership
Holcim is one of the most globally active building materials groups, with a strong foothold in each individual market. The Group’s broadbased presence demonstrates the value of a balanced portfolio, as it smoothes out cyclical fluctuations in individual markets and stabilizes earnings. Holcim is also committed to actively manage its portfolio.
Our business has local roots and is geared to the conditions and needs of each specific market because that is where value is created. Group wide standards and systematic benchmarking allow us to enhance our efficiency. The key to success lies in striking a balance between local responsibility and global leadership.
Based on the three strategic pillars the
creation of value for its customers is Holcim’s paramount objective.
6
Holcim at a Glance
Solutions and products
Customer excellence is a main driver of Holcim’s business. We build lasting relationships and provide the best possible solutions for our customers based on our three customer commitments of being easy to do business with, keeping our promises, and creating value. The main product categories for our solutions are:
Cement is manufactured through a large-scale, complex, and capital and energy-intensive process. At the core of the production process is a rotary kiln, in which limestone and clay are heated to approximately 1,450 degrees Celsius. The semifinished product, called clinker, is created by sintering. In the cement mill, gypsum is added to the clinker and the mixture is ground to a fine powder – traditional Portland cement. Holcim offers customers a very wide range of cements.
Aggregates include crushed stone, gravel, and sand. The production process centers around quarrying, preparing and sorting the raw material as well as quality testing. Aggregates are mainly used in the manufacturing of ready-mix concrete, concrete products, and asphalt, as well as for road building and railway track beds.
Concrete
and other construction materials Globally, concrete is the second most consumed commodity by volume. One cubic meter consists of approximately 300 kilograms of cement, 150 liters of water, and 2 tonnes of aggregates. Asphalt is a bituminous construction material used primarily for road paving. It consists mainly of aggregates of differing grain size. Holcim’s offering also includes construction services and international trading.
Holcim at a Glance
7
Holcim Leadership Journey
The Holcim Leadership Journey with its focus on customer excellence and cost leadership aims at increasing the return on invested capital to at least 8Â percent after tax. This corresponds to an increase in operating profit of at least CHF 1.5 billion under similar market conditions. Thus, Holcim will fully generate its cost of capital, improve its balance sheet, and be in a position to sustainably finance further growth. The program, launched Group-wide in May 2012, has continued to gain momentum in 2013. Cumulative with 2012 benefits, it has delivered an overall contribution of CHF 1.1 billion, stimulated a series of improvements on all levels, and strengthened functional excellence.
8
Holcim at a Glance
Innovation
Megatrends require innovative solutions Resource depletion and scarcity, urbanization, climate change, unmet and emerging customer needs – the world and with it the demands of customers and society are changing faster than ever. Here, innovation has to respond by developing new solutions to meet the market needs. Holcim is dedicated to best serve customers with innovative solutions and contribute to solve societal and environmental challenges.
Innovation happens centrally and locally A variety of innovations are developed in Holcim’s Group companies and at Holcim Technology and Services. They strengthen our position as a global leader in the segments of high quality building materials. Holcim focuses on the six innovation fields with the greatest potential to add value: integrated market solutions, new materials/functionalities, low-carbon solutions, low energy solutions, waste/recycling opportunities, and lean/clean/efficient operations.
Holcim at a Glance
9
Ready-mix concrete plants Ready-mix concrete plants Personnel Personnel
320 320 34,080 34,080
Consolidated key figures for Africa Middle East Consolidated key figures for Africa Middle East
Present on all continents
Net sales in million CHF Net sales in million CHF Operating EBITDA in million CHF Operating EBITDA in million CHF Cement and grinding plants Cement and grinding plants Aggregates plants Aggregates plants Ready-mix concrete plants Ready-mix concrete plants Personnel Personnel
884 884 283 283 12 12 5 5 17 17 2,128 2,128
Consolidated key figures for North America Consolidated key figures for North America
Net sales in million CHF Net sales in million CHF Operating EBITDA in million CHF Operating EBITDA in million CHF Cement and grinding plants Cement and grinding plants Aggregates plants Aggregates plants Ready-mix concrete and asphalt plants Ready-mix concrete and asphalt plants Personnel Personnel
3,171 3,171 494 494 17 17 116 116 263 263 6,791 6,791
Consolidated key figures for Latin America Consolidated key figures for Latin America
Net sales in million CHF Net sales in million CHF Operating EBITDA in million CHF Operating EBITDA in million CHF Cement and grinding plants Cement and grinding plants Aggregates plants Aggregates plants Ready-mix concrete plants Ready-mix concrete plants Personnel Personnel
3,349 3,349 938 938 27 27 18 18 119 119 11,181 11,181
% of net sales
Figures as of December 31, 2013
10
Holcim at a Glance
North America 15.6%
South America 16.5%
Consolidated key figures for Europe
Net sales in million CHF
5,611
Operating EBITDA in million CHF
946
Cement and grinding plants
35
Aggregates plants
203
Ready-mix concrete and asphalt plants Personnel
463 15,868
Consolidated key figures for Asia Pacific
Europe 27.6%
Consolidated key figures for Europe
Net sales in million CHF
7,282
Operating EBITDA in million CHF
1,473
Cement and grinding plants
51
Aggregates plants
84
Ready-mix concrete plants
320
Personnel 5,611
Operating EBITDA in million CHF
34,080
946
Cement and grinding plants
35
Aggregates plants
203
Ready-mix concrete and asphalt plants Personnel
Net sales in million CHF
Africa and Middle East 4.4%
Consolidated key figures for Asia Pacific
Net sales in million CHF Operating EBITDA in million CHF Cement and grinding plants
463
Consolidated key figures for Africa Middle East
15,868 Net sales in million CHF
Cement and grinding plants Aggregates plants 7,282 Ready-mix concrete plants 1,473 Personnel 51
Aggregates plants
84
Ready-mix concrete plants Personnel
884
Asia Pacific 35.9%
Operating EBITDA in million CHF
320 34,080
283
12
5
17
2,128
Consolidated key figures for Europe
Net sales in million CHF
Operating EBITDA in million CHF Cement and grinding plants Aggregates plants
Consolidated key figures for Africa Middle East
Net sales in million CHF Operating EBITDA in million CHF Cement and grinding plants Aggregates plants Ready-mix concrete plants Personnel
Operating EBITDA in million CHF
946 35 203
Ready-mix concrete and asphalt plants Consolidated key figures for North America Net sales in million CHF Personnel
5,611
463 15,868
3,171 494
Cement and grinding plants 17 884 Consolidated key figures for Asia Pacific Aggregates plants 116 283 Net sales in million263 CHF Ready-mix concrete and asphalt plants 12 Operating EBITDA in million CHF Personnel 6,791 5 Cement and grinding plants 17 Aggregates plants 2,128 Ready-mix concrete plants
1,473
Personnel
34,080
7,282 51 84 320
Consolidated key figures for Latin America
Net sales in million CHF
Cement and grinding plants
Consolidated key figures for North America
Net sales in million CHF
3,349
Operating EBITDA in million CHF Aggregates plants 3,171
938
Holcim at a Glance 27
11
18 for Africa Middle East Consolidated key figures
Committed to environment and society
Long-term ambitions until 2030 Holcim has defined Sustainable Development as one of the key elements of its business strategy for many years, because we believe it contributes in adding value and ensuring continued success. The Group has been included in the DJSI Europe Index for 2013/2014 in the building materials industry. Holcim has now been included in a DJSI Index for twelve consecutive years. In 2014, Holcim has renewed its commitment to sustainability by outlining the Group’s long term ambitions and interim targets for sustainable development as part of its Holcim Sustainable Development Ambition 2030. Aligned with our vision “to provide foundations for society’s future,” Holcim aims to significantly increase the interest in, and uptake of, our innovative range of sustainability enhancing products and services. By 2030, we aspire to generate one third of our revenue from a portfolio of Sustainability Enhanced Solutions.
Contributing to environmental and societal well-being Our products are dependent on quarrying and the manufacture of cement requires substantial amounts of energy. Efficient use of natural resources, aimed among other things at reducing CO2 emissions, is a cornerstone of our business policy. Improving our energy efficiency, recycling waste, and replacing clinker with other mineral binders are the main thrusts of our efforts in this area. Holcim also has a long-standing commitment to the communities in which our facilities are located. We recognize our social responsibility and our Group companies promote education and training, sustainable community development and improvements in local infrastructure.
12
Holcim at a Glance
People
Health and safety as the key priority Holcim’s ambition strives for “Zero Harm to People” because the company cares for the people working on its sites. A safe and healthy workplace is a prerequisite for productive and committed employees and therefore a high priority for Holcim. Across the entire Group, excellent safety performance is considered as a “license to lead”.
Motivate and demand Holcim offers attractive and challenging jobs with development potential. We see ourselves as an exemplary employer able to recruit the best staff and motivate them over the long term. To encourage employees and demand achievement from them is the fundamental philosophy that moves Holcim forward. Openness, respect and understanding for a wide range of different cultures has always been part of how Holcim perceives itself.
Training as a continuous process Regular training at all levels ensures that employees develop and fulfill their potential in the best possible way. To strengthen know-how and skills, Holcim has developed tools that enable the Group to rapidly spread expertise.
Holcim at a Glance
13
Corporate Governance
Board of Directors Prof. Dr. Wolfgang Reitzle, Chairman of the Board of Directors Dr. Beat Hess, Deputy Chairman of the Board of Directors Dr. Alexander Gut Adrian Loader Jürg Oleas Dr. h.c. Thomas Schmidheiny Hanne Birgitte Breinbjerg Sørensen Dr. Dieter Spälti Anne Wade
Executive Committee Bernard Fontana, CEO Thomas Aebischer, Member of the Executive Committee, and CFO Urs Bleisch, Holcim Group Services Ltd and Holcim Technology Ltd, Holcim Leadership Journey
Roland Köhler, Europe Andreas Leu, Americas Bernard Terver, South Asia, Africa Middle East Ian Thackwray, East Asia Pacific, Holcim Trading
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Holcim at a Glance
Key financial figures
Million CHF Net sales
2013
2012
± %
19,719
21,160
−6.8
Operating EBITDA
3,896
3,889
+0.2
Operating profit
2,357
1,749
+34.8 +108.4
Net income – shareholders of Holcim Ltd
1,272
610
Cash flow from operating activities
2,787
2,643
+5.4
18,677
19,234
−2.9
Total shareholders’ equity Net capital expenditures on property, plant and equipment to maintain productive capacity and to secure competitiveness Investments in property, plant and equipment for expansion Financial divestments net
(719)
(790)
+9.0
(1,282)
(803)
−59.5
336
396
−15.2
Cement Cement and grinding plants Production capacity in million t Sales of cement in million t
142 206.2 138.9 12,939
Net sales in million CHF Operating EBITDA in million CHF
3,252 47,179
Personnel Aggregates
426
Aggregates plants Sales of aggregates in million t
154.5
Net sales in million CHF
2,428
Operating EBITDA in million CHF
448 5,812
Personnel Other construction materials and services Ready-mix concrete plants
1,091 91
Asphalt plants Sales of ready-mix concrete in million m3 Sales of asphalt in million t
39,5 8,9 6,812
Net sales in million CHF Operating EBITDA in million
195 17,376
Personnel
Holcim at a Glance
15
Holcim Ltd Hagenholzstrasse 85 CH-8050 Zurich Switzerland www.holcim.com Corporate Communications: Tel. +41 58 858 87 10 Investor Relations: Tel. +41 58 858 87 87
Š 2014 Holcim Ltd