Regulatory News:
- Q4 Net Sales up 5.1%
LFL1, Recurring EBITDA2 up 6.5%
LFL
- 2018 Net Sales up 5.1% LFL,
Recurring EBITDA up 3.6% LFL
- Over-proportional increase of Net
Income3 (+10.8%) and EPS3
(+11.9%)
- CHF 400 million SG&A cost
savings delivering results ahead of target
- Net Financial Debt improves to 2.2x
Recurring EBITDA (2.4x in 2017)
- Accelerating momentum expected to
continue in 2019
PERFORMANCE OVERVIEW
Group Full Year FY 2018
FY 2017 ±% ±%
like-for-like Net Sales4 million CHF 27,466 27,021 1.6 5.1
Recurring EBITDA million CHF 6,016 5,990 0.4 3.6 Recurring EBITDA
margin % 21.9 22.2 Operating profit (loss) million
CHF 3,312 (478) Operating profit before impairment
million CHF 3,306 3,229 2.4 Net income3 million CHF 1,569
1,417 10.8 EPS3 CHF 2.63 2.35 11.9 Cash flow from
operating activities million CHF 2,988 3,040 -1.7 Free Cash
Flow million CHF 1,703 1,685 1.1 Net financial debt million
CHF 13,518 14,346 -5.8
Jan Jenisch, CEO: “Our momentum accelerated in the second half
of 2018 during which we exceeded our sales targets while
profitability increased over-proportionally. We completed a very
successful 2018 with a double-digit EPS growth and progressed
significantly towards our deleveraging target. I am very proud of
the fast roll-out of Strategy 2022 – ‘Building for Growth’ and
congratulate all employees and teams on the impressive results. We
are well-positioned and I am expecting a further acceleration of
our growth and earnings dynamic in 2019.”
1 LFL : Like-for-like2 EBITDA : Earnings before interest, tax,
depreciation and amortization3 Before impairment and divestments,
attributable to shareholders of LafargeHolcim Ltd4 Net Sales 2017
restated by CHF 893 million due to the reporting of Gross Sales
from trading activities, following the application of IFRS 15,
effective 1 January 2018. This had no impact on Recurring
EBITDA.
Year of strong growth,
over-proportional increase of Net Income and EPS before impairment
and divestments
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 27,466 million.
Recurring EBITDA reached CHF 6,016 million, up 3.6% LFL
for the full year, with Cement, Aggregates and Ready-Mix Concrete
segments all contributing to the solid outcome.
Net Income attributable to shareholders of LafargeHolcim
Ltd before impairment and divestments was 10.8% higher than in
2017.
Earnings per Share before impairment and divestments
amounted to CHF 2.63 for the full year compared to CHF 2.35 for
2017.
Free Cash Flow stood at CHF 1,703 million versus CHF
1,685 million in the previous year.
Net debt amounted to CHF 13,518 million at year-end, an
improvement of CHF 828 million over the prior year, reflecting the
cash conversion of 28.3% and a positive impact following the
classification of Indonesia’s local external net debt as
held-for-sale. The Indonesia divestment closed successfully at the
end of January 2019, full effect will be reflected in 2019.
Return on Invested Capital was 6.5%, compared to 5.8% in
2017, due to continuous improvement in capital allocation.
Good progress on Strategy 2022 –
“Building for Growth”
The global roll out of the new Strategy 2022 – “Building for
Growth” has been successfully started. Strong progress was made in
all four drivers of the strategy delivering results ahead of
plan.
Switching gears to growth is the most fundamental principle of
Strategy 2022. First results have been achieved and the growth
momentum accelerated throughout the year with a strong sales
increase of 5.1% LFL. All four business segments were contributing
to this growth. Four bolt-on acquisitions were completed in 2018 in
Europe and North America which drove Growth and added to the
company’s presence in Ready-Mix Concrete and Aggregates. These
acquisitions had immediate impact on profitability and brought the
company closer to its end-customers. Four more bolt-on acquisitions
have been signed in 2019 in Europe, Australia and North
America.
In terms of Simplification & Performance, the closure
of four corporate offices in Singapore, Miami, Zurich and Paris has
been completed. The 400 million SG&A savings program is
executed successfully and delivering results ahead of target.
Strong progress was made towards closing the gap to best-in-class
performance in Aggregates and Ready Mix Concrete. Both businesses
achieved significant improvements in profitability.
The strategy driver Financial Strength has led to
improvements across all key performance indicators. More than CHF
1.5 billion was refinanced at attractive terms, thereby improving
the company’s debt maturity profile and reducing financing costs.
The sale of Indonesia contributes to the strengthening of the
balance sheet. All initiatives resulted into a successful
de-leveraging with the net financial debt / recurring EBITDA ratio
improving to 2.2x (from 2.4x in 2017).
With regard to Vision & People, the new operating
model and the leadership team have been effectively established.
Globally leaders are empowered and the simplified performance
management system and the corresponding incentive system was
implemented in all countries. All initiatives are supported by the
launch of the new LafargeHolcim Business School.
OUTLOOK 2019
Solid global market demand is expected to continue in 2019 with
the following market trends:
- Continued market growth in North
America
- Softer but stabilizing cement demand in
Latin America
- Continued demand growth in Europe
- Challenging but stabilizing market
conditions in Middle East Africa
- Continued strong demand growth in Asia
Pacific
Based on the above trends and the successful execution of
Strategy 2022, the previously communicated targets are confirmed
for 2019:
- Net Sales growth of 3 to 5 percent on a
like-for-like basis
- Recurring EBITDA growth of at least 5
percent on a like-for-like basis
- Ratio of Net Debt to Recurring EBITDA 2
times or less5 by end of 2019
For the 2018 financial year, the Board is proposing a dividend
from the capital contribution reserves in the amount of CHF 2.00
per registered share. Subject to approval by the Annual General
Meeting, shareholders will be given the choice of having the
dividend paid out in cash, in new shares in LafargeHolcim Ltd at a
discount to the market price, or as a combination of cash and
shares. Via this so-called scrip dividend, investors can have the
opportunity to participate in the company’s future growth.
5 Before application of IFRS 16 and at constant foreign
exchange
KEY GROUP FIGURES 2018
Group Q4 Q4 2018
Q4 20171 ±% ±%
like-for-like Sales of cement million t 56.5 56.5 0.0 3.6 Sales
of aggregates million t 68.4 70.5 -2.9 0.0 Sales of ready-mix
concrete million m3 12.9 13.0 -0.4 -1.4 Net Sales million CHF 6,831
6,928 -1.4 5.1 Recurring EBITDA million CHF 1,665 1,634 1.9 6.5
Recurring EBITDA margin % 24.4 23.6
Group
Full Year FY 2018 FY 20171
±% ±% like-for-like Sales of cement million t 221.9
220.2 0.8 4.4 Sales of aggregates million t 273.8 278.7 -1.8 1.2
Sales of ready-mix concrete million m3 50.9 50.6 0.6 0.6 Net Sales
million CHF 27,466 27,021 1.6 5.1 Recurring EBITDA million CHF
6,016 5,990 0.4 3.6 Recurring EBITDA margin % 21.9 22.2
Impairment3 million CHF (12) (3,829) Operating
profit (loss) million CHF 3,312 (478) Operating
profit before impairment million CHF 3,306 3,229 2.4 Net
income (loss)2 million CHF 1,502 (1,675) Net income
before impairment and divestments2 million CHF 1,569 1,417 10.8
EPS CHF 2.52 (2.78) EPS before impairment and
divestments CHF 2.63 2.35 11.9 Cash flow from operating
activities million CHF 2,988 3,040 -1.7 Free Cash Flow
million CHF 1,703 1,685 1.1 Net financial debt million CHF
13,518 14,346 -5.8
1 Restatement of Sales from trading activities impacting both Q4
and FY. Recurring EBITDA Q4 restated by CHF -70 million due to the
reclassification of the Group share of net income of Huaxin to
joint ventures, no impact on FY.2 Attributable to shareholders of
LafargeHolcim Ltd3 Of which CHF 6 million included in Operating
profit in FY 2018 and CHF -3,707 million included in Operating loss
in FY 2017.
Group results by business segment
FY 2018 FY 20171
±%
±% like-for-like
Net Sales Cement (CEM) million CHF 18'052 17'964 0.5 6.0 CEM
Recurring EBITDA million CHF 4'688 4'810 -2.5 1.7 CEM Recurring
EBITDA margin % 26.0 26.8
Net Sales Aggregates (AGG) million CHF 4'091 3'925
4.2 4.5 AGG Recurring EBITDA million CHF 893 767 16.4 15.1 AGG
Recurring EBITDA margin % 21.8 19.5
Net Sales Ready-Mix Concrete (RMX)
million CHF 5'481 5'263 4.2 3.8 RMX Recurring EBITDA million CHF
232 148 56.6 54.1 RMX Recurring EBITDA margin % 4.2 2.8
Net Sales
Solutions & Products (SOP) million CHF 2'396 2'313 3.6 2.7 SOP
Recurring EBITDA million CHF 203 264 -23.3 -24.3 SOP Recurring
EBITDA margin % 8.5 11.4
1 Net Sales restated due to the reporting of Gross Sales from
trading activities, following the application of IFRS 15, effective
1 January 2018. This had no impact on Recurring EBITDA.
REGIONAL PERFORMANCE
Asia Pacific
The Asia Pacific region benefited from favorable market
conditions in most countries, leading to strong Net Sales and
Recurring EBITDA growth. China was a key driver of higher
profitability. India’s solid demand was driven by infrastructure
and rural housing, whereas in the Philippines demand was mainly
supported by the public sector. The Malaysian market continued to
remain challenging.
The divestment of the entire Indonesian shareholding to Semen
Indonesia for an enterprise value of CHF 1.75 billion, on a 100%
basis, was successfully closed at the end of January 2019.
Net Sales for the Asia Pacific region overall grew by a strong
8.3% on a like-for-like basis. All segments benefited from pricing
traction and contributed to the positive Net Sales development.
Recurring EBITDA showed very strong growth of 22.5% on a
like-for-like basis. Strict cost management and price discipline
more than compensated for increasing energy costs across the
region. The share of Huaxin joint venture profits in China was
recognized in the 2018 result, amounting to CHF 334 million of
Recurring EBITDA.
Asia Pacific Q4 Q4 2018
Q4 20171 ±% ±%
like-for-like Sales of cement million t 23.1 24.4 -5.1 3.2
Sales of aggregates million t 7.7 8.0 -3.5 -3.5 Sales of ready-mix
concrete million m3 3.2 3.3 -3.7 -3.7 Net Sales million CHF 1,870
1,940 -3.6 7.3 Recurring EBITDA million CHF 457 418 9.5 22.4
Recurring EBITDA margin % 24.3 21.4
Asia
Pacific Full Year FY 2018 FY
20171 ±% ±% like-for-like Sales of cement
million t 89.7 92.6 -3.1 4.7 Sales of aggregates million t 31.4
31.8 -1.2 -1.2 Sales of ready-mix concrete million m3 12.5 12.8
-2.3 -2.0 Net Sales million CHF 7,446 7,402 0.6 8.3 Recurring
EBITDA million CHF 1,609 1,418 13.4 22.5 Recurring EBITDA margin %
21.5 19.1
1 Net Sales restated due to the reporting of Gross Sales from
trading activities, following the application of IFRS 15, effective
1 January 2018. This had no impact on Recurring EBITDA. Recurring
EBITDA Q4 restated by CHF -70 million due to the reclassification
of the Group share of net income of Huaxin to joint ventures, no
impact on FY.
Europe
2018 was a strong year for the Europe region. Increased public
infrastructure spending in Eastern and Central Europe combined with
a rebound in construction and residential segments. The favorable
market environment was also supported by the SG&A savings
program to drive the region’s Recurring EBITDA growth.
Net Sales for Europe grew 5.0% on a like-for-like basis as a
result of sales volume gains in all segments combined with price
improvements in key markets of Germany, Spain, Poland and
Russia.
Recurring EBITDA for the region grew by 5.0% like-for-like, as
good volumes and price management combined with improved results in
Ready-Mix Concrete. These positive drivers more than offset
continuous inflation in fuel and energy costs.
Europe Q4 Q4 2018
Q4 20171 ±% ±%
like-for-like Sales of cement million t 11.3 10.7 6.0 6.0 Sales
of aggregates million t 29.5 31.3 -6.0 0.6 Sales of ready-mix
concrete million m3 5.0 4.7 5.6 4.5 Net Sales million CHF 1,862
1,800 3.5 6.2 Recurring EBITDA million CHF 420 385 9.2 11.0
Recurring EBITDA margin % 22.2 20.9
Europe Full Year FY 2018 FY
20171 ±% ±% like-for-like Sales of cement
million t 45.3 43.1 5.2 5.2 Sales of aggregates million t 120.4
125.2 -3.8 2.2 Sales of ready-mix concrete million m3 19.3 18.2 6.0
5.2 Net Sales million CHF 7,554 7,008 7.8 5.0 Recurring EBITDA
million CHF 1,499 1,385 8.2 5.0 Recurring EBITDA margin % 19.5 19.3
1 Net Sales restated due to the reporting of Gross Sales from
trading activities, following the application of IFRS 15, effective
1 January 2018. This had no impact on Recurring EBITDA.
Latin America
After a strong first half of 2018, the Latin America region
suffered an overall softening of cement demand in the last six
months. The pressure on margins intensified due to high cost
inflation.
In the first part of the year, the Cement and Ready-Mix Concrete
segments delivered double-digit like-for-like growth in volumes and
Net Sales. This strong performance was boosted by large
infrastructure projects in Mexico, solid demand in Argentina and
economic acceleration in Brazil. However in the second half of the
year, we incurred a decline in volumes due to the post-election
slowdown in Mexico, Argentina's economic collapse and a generally
weaker demand in Ecuador and Central America.
Net Sales for the region grew by 9.4% like-for-like, reflecting
price increases to compensate for high cost inflation.
Recurring EBITDA in 2018 is slightly below the prior year,
impacted by sharp increases in the cost of raw materials and
energy, balanced by price increases and strict cost control.
Latin America Q4 Q4 2018
Q4 2017 ±% ±%
like-for-like Sales of cement million t 6.1 6.4 -4.2 -4.2 Sales
of aggregates million t 0.9 0.9 3.1 3.1 Sales of ready-mix concrete
million m3 1.3 1.4 -5.0 -5.0 Net Sales million CHF 605 737 -17.9
4.5 Recurring EBITDA million CHF 220 271 -18.9 -9.2 Recurring
EBITDA margin % 36.0 36.7
Latin America
Full Year FY 2018 FY 2017 ±%
±% like-for-like Sales of cement million t 25.1 24.9 0.7 3.5
Sales of aggregates million t 3.6 4.2 -14.2 -0.3 Sales of ready-mix
concrete million m3 5.5 5.8 -5.5 7.3 Net Sales million CHF 2,731
2,943 -7.2 9.4 Recurring EBITDA million CHF 959 1,055 -9.2 -1.5
Recurring EBITDA margin % 35.0 35.9
Middle East Africa
Market conditions in the Middle East Africa region remained
challenging driven by a changing competitive profile, shifts in
supply and demand, sluggish economies and a rise in energy and
distribution costs.
Consolidated cement volumes grew by 0.4% on a like-for-like
basis. Despite the increase in volumes, Net Sales for the region
were down by 4.3% on a like-for-like basis. This decrease in Net
Sales was largely driven by price pressure and lower volumes in
oversupplied markets, particularly Algeria, Iraq and Jordan, and by
the slowdown in Lebanon and Egypt in the second half of 2018. Net
Sales developed favorably in Nigeria, Egypt and countries in East
Africa.
These overall headwinds, combined with rising distribution and
energy costs, resulted in a decrease in Recurring EBITDA of 28.2%
on a like-for-like basis.
Middle East Africa Q4 Q4
2018 Q4 20171 ±%
±% like-for-like Sales of cement million t 9.0 8.8 1.6 1.6
Sales of aggregates million t 2.0 2.4 -14.8 -14.8 Sales of
ready-mix concrete million m3 1.1 1.2 -4.0 -4.0 Net Sales million
CHF 774 812 -4.7 -0.5 Recurring EBITDA million CHF 169 262 -35.6
-32.4 Recurring EBITDA margin % 21.6 32.1
Middle East Africa
Full Year FY 2018 FY 20171
±% ±% like-for-like Sales of cement million t 35.9
35.8 0.4 0.4 Sales of aggregates million t 8.7 10.4 -15.9 -15.9
Sales of ready-mix concrete million m3 4.2 4.7 -11.2 -11.2 Net
Sales million CHF 3,080 3,353 -8.1 -4.3 Recurring EBITDA million
CHF 734 1,085 -32.4 -28.2 Recurring EBITDA margin % 23.5 32.2
1 Net Sales restated due to the reporting of Gross Sales from
trading activities, following the application of IFRS 15, effective
1 January 2018. This had no impact on Recurring EBITDA.
North America
A growth strategy coupled with effective price management and
rigorous cost control laid the basis for solid 2018 results in
North America compared to the prior year despite challenging
conditions, notably harsh weather conditions in the first quarter
and an early winter in the fourth quarter.
The growth strategy was further supported by two bolt-on
acquisitions completed in 2018: Tarrant Concrete in Texas and Metro
Mix in Colorado; as well as several multi-year construction
contract awards in the Denver, Las Vegas, Minneapolis, and
Vancouver markets, further bolstering the Solutions & Products
segment.
Net Sales grew by 3.0% on a like-for-like basis supported both
by the US and Canada. On a segment view, Net Sales from Cement and
Aggregates increased while Ready-Mix Concrete decreased
slightly.
Recurring EBITDA grew by 2.7% on a like-for-like basis at a
stable margin. Fuel and energy cost inflation across the region was
compensated by good cost management, including SG&A
cost-cutting programs.
North America Q4 Q4 2018
Q4 2017 ±% ±%
like-for-like Sales of cement million t 4.9 4.8 1.3 1.3 Sales
of aggregates million t 28.3 27.9 1.5 1.5 Sales of ready-mix
concrete million m3 2.3 2.4 -3.3 -6.8 Net Sales million CHF 1,509
1,470 2.7 2.1 Recurring EBITDA million CHF 410 389 5.3 3.1
Recurring EBITDA margin % 27.2 26.5
North America Full
Year FY 2018 FY 2017
±% ±% like-for-like Sales of cement million t 19.8
19.2 3.1 3.1 Sales of aggregates million t 109.6 107.1 2.4 2.4
Sales of ready-mix concrete million m3 9.4 9.1 3.7 -2.6 Net Sales
million CHF 5,875 5,664 3.7 3.0 Recurring EBITDA million CHF 1,523
1,483 2.7 2.7 Recurring EBITDA margin % 25.9 26.2
OTHER PROFIT & LOSS and FREE CASH
FLOW ITEMS
Restructuring, litigation, implementation and
other non-recurring costs stood at CHF 476 million,
compared to CHF 461 million in 2017 and CHF 582 million in 2016.
2018 restructuring costs amounted to CHF 301 million, reflecting
the implementation of the SG&A savings program.
Net financial expenses for 2018 totaled CHF 886 million
versus CHF 958 million in the prior year as a result of optimized
indebtedness cost.
The income tax rate excluding impairment and divestments
was 27.7%, approximately 3% lower than in 2017, benefiting mainly
from the US corporate tax reduction.
2018 reported Net income amounted to CHF 1,719
million.
Excluding impairment and divestments, EPS was up
11.9% to CHF 2.63 for 2018. On a reported basis, EPS was CHF 2.52
for 2018.
Net capital expenditure for 2018 was CHF 1,285 million.
Free Cash Flow stood at CHF 1,703 million, up 1.1%
compared to 2017. This led to a ratio of cash conversion, defined
as Free Cash Flow relative to Recurring EBITDA, of 28.3% in
2018.
Follow-up on bolt-on acquisitions: After Alfons Greten
Betonwerk in Germany in January 2019 and Transit Mix Concrete in
USA (Colorado) in February 2019, the acquisition of Colorado River
Concrete has been successfully completed on March 1, 2019. On the
same day the Group closed the acquisition of the ready-mix
businesses of Donmix in Australia, comprising of five ready-mix
plants on the Bass Coast in the state of Victoria.
RECONCILIATION TO GROUP
ACCOUNTS
Reconciling measures of profit and loss to LafargeHolcim
Group consolidated statement of income
Million CHF FY 2018 FY
2017
1 Net Sales 27,466 27,021 Recurring
costs excluding SG&A (19,511) (18,615) Recurring
SG&A (2,441) (2,701) Share of profit of joint
ventures 502 286
Recurring EBITDA 6,016
5,990 Depreciation and amortization (2,235)
(2,300) Restructuring, litigation, implementation and other
non-recurring costs (476) (461)
Operating profit
before impairment 3,306 3,229
Impairment of operating assets 6 (3,707)
Operating
profit (loss) 3,312 (478)
1 Net Sales restated due to the reporting of Gross Sales from
trading activities, following the application of IFRS 15, effective
1 January 2018. This had no impact on Recurring EBITDA.
Reconciliation of Net Income before impairment and
divestments with Net Income as disclosed in Financial
Statements
Million CHF
FY 2018
FY 2017
Net income (loss) 1,719 (1,716) Impairment
22 (3,501) (Loss)/profit on divestments (74)
226
Net income before impairment and divestments
1,772 1,560 Net income before
impairment and divestment Group share 1,569 1,417
Adjustments disclosed net of taxation
Reconciliation of Free Cash Flow to consolidated cash flows
of LafargeHolcim Group
Million CHF
FY 2018
FY 2017
Cash flow from operating activities 2,988
3,040 Purchase of property, plant and equipment (1,411)
(1,522) Disposal of property and equipment 126
167
Free Cash Flow 1,703 1,685
Reconciliation of Net Financial Debt to consolidated
statement of LafargeHolcim Group
Million CHF 31 December 2018
31 December 2017 Current financial liabilities 3,063
3,843 Long-term financial liabilities 13,061
14,779 Cash and cash equivalents 2,515 4,217
Short-term derivative assets 66 44 Long-term
derivative assets 26 14
Net Financial Debt
13,518 14,348
NON-GAAP DEFINITIONS
Some non-GAAP measures are used in this release to help describe
the performance of LafargeHolcim. A full set of these non-GAAP
definitions can be found on our website.
Measures Definition
Like-for-like Factors out changes in the scope of
consolidation (such as divestments and acquisitions occurring in
2018 and 2017) and currency translation effects (2018 figures are
converted with 2017 exchange rates in order to calculate the
currency effects).
Recurring SG&A Fixed Costs
related to Administrative, Marketing & Sales, Corporate
Manufacturing and Corporate Logistics costs included in Recurring
EBITDA
Restructuring, litigation, implementation and other
non-recurring costs Significant items that, because of
their exceptional nature, cannot be viewed as inherent to the
Group's ongoing performance, such as strategic restructuring, major
items relating to antitrust fines and other business related
litigation cases. In 2017, they also included costs directly
related to the merger such as legal, banking fees and advisory
costs, employee costs related to redundancy plans and IT
implementation costs.
Profit/loss on disposals and non-operating
items Comprises capital gains or losses on the sale of
Group companies and of property, plant and equipment and other
non-operating items that are not directly related to the Group's
normal operating activities such as revaluation gains or losses on
previously held equity interests, disputes with non-controlling
interests and other major lawsuits.
Recurring EBITDA (Earnings
before interest, tax, depreciation and amortization)
Previously Operating EBITDA Adjusted, defined as:
+/– Operating profit
- depreciation, amortization and
impairment of operating assets
- restructuring, litigation,
implementation and other non-recurring costs
Recurring EBITDA Margin Recurring EBITDA divided by
Net Sales
Operating profit before impairment +/-
Operating profit (loss)
- impairment of goodwill and assets
Net income before impairment and divestments +/- Net
income (loss)
- capital gains or losses on the sale of
Group companies
- impairment of goodwill and assets
EPS (Earnings Per Share) before impairment and divestments
Net income before impairment and divestments attributable to
the shareholders of LafargeHolcim divided by the weighted average
number of shares outstanding.
Capex or Capex Net (Net
Maintenance and Expansion Capex) + Expenditure to
increase existing or create additional capacity to produce,
distribute or provide services for existing products (expansion) or
to diversify into new products or markets (diversification)
+ Expenditure to sustain the functional
capacity of a particular component, assembly, equipment, production
line or the whole plant, which may or may not generate a change of
the resulting cash flow
– Proceeds from sale of property, plant
and equipment
Free Cash Flow +/– Cash flow from operating
activities
– Net Maintenance and expansion Capex
Net financial debt (“Net debt”) + Financial
liabilities (Long Term & Short Term) including derivative
liabilities
– Cash and cash equivalents
– Derivative assets (Long Term & Short
Term)
Invested Capital The Invested Capital is an indicator
that measures total funds invested by shareholders, lenders and any
other financing sources. It is defined as:
+ Total shareholders’ equity
+ Net financial debt
– Assets classified as held for sale
+ Liabilities classified as held for
sale;
– Current financial receivables; and
– Long-term financial investments and
other long-term assets.
NOPAT (Net Operating Profit After Tax) +/– Net
Operating Profit (being the Recurring EBITDA, adjusted for
depreciation and amortization of operating assets but excluding
impairment of operating assets)
– Standard Taxes (being the taxes applying
the Group's tax rate to the Net Operating Profit as defined
above)
ROIC (Return On Invested Capital) Net Operating
Profit After Tax (NOPAT) divided by the average Invested Capital.
The average is calculated by adding the Invested Capital at the
beginning of the period to that at the end of the period and
dividing the sum by 2 (based on a rolling 12 month calculation)
Cash conversion Free Cash Flow divided by Recurring
EBITDA
ADDITIONAL INFORMATION
The analyst presentation of the results and our 2018 annual
report are available on our website at www.lafargeholcim.com
The financial statements based on IFRS can be found on the
LafargeHolcim Group website.
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About LafargeHolcim
LafargeHolcim is the global leader in building materials and
solutions. We are active in four business segments: Cement,
Aggregates, Ready-Mix Concrete and Solutions & Products.
With leading positions in all regions of the world and a
balanced portfolio between developing and mature markets,
LafargeHolcim offers a broad range of high-quality building
materials and solutions. LafargeHolcim experts solve the challenges
that customers face around the world, whether they are building
individual homes or major infrastructure projects. Demand for
LafargeHolcim materials and solutions is driven by global
population growth, urbanization, improved living standards and
sustainable construction. Around 75,000 people work for the company
in around 80 countries.
More information is available on www.lafargeholcim.com
Important disclaimer - forward-looking statements:
This document contains forward-looking statements. Such
forward-looking statements do not constitute forecasts regarding
results or any other performance indicator, but rather trends or
targets, as the case may be, including with respect to plans,
initiatives, events, products, solutions and services, their
development and potential. Although LafargeHolcim believes that the
expectations reflected in such forward-looking statements are based
on reasonable assumptions as at the time of publishing this
document, investors are cautioned that these statements are not
guarantees of future performance. Actual results may differ
materially from the forward-looking statements as a result of a
number of risks and uncertainties, many of which are difficult to
predict and generally beyond the control of LafargeHolcim,
including but not limited to the risks described in LafargeHolcim's
annual report available on its website (www.lafargeholcim.com) and
uncertainties related to the market conditions and the
implementation of our plans. Accordingly, we caution you against
relying on forward-looking statements. LafargeHolcim does not
undertake to provide updates of these forward-looking
statements.
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