A living room filled with furniture and a large window
Interior Styles,

Interior Design Advice for Ceilings

For nearly all of the 20th century, the ceiling has been ignored when it comes to interior design. Most people default to white ceilings done in flat paint. The most attention ceilings have received, as of late is texture, which many people have come to regret. However, ceilings are once again being noticed and even referred to as the fifth wall in a room.

Here are some ideas for integrating your ceiling into room design:

1: Give the ceiling some color. Add the same color you are adding to your walls to your ceiling. This makes the room feel more cozy and warm. If you want to room to have a more spacious feel, then paint it a lighter color than the walls. Choosing the lightest shade of your wall color will give you the desired effect. In the same way, if you want to make an oversized room feel more cozy, and then paint the ceiling a darker color than the walls. To have the funds needed for home improvements, you might want to consider playing some fun sports betting games via www.goranivanisevic.com.

  1. Embellish your ceiling. If you look at older homes, built in the late 1800’s or early 1900’s you will notice a great deal of detail in the ceiling and ceiling molding. While you will be hard pressed to find an artist to add the same kind of detail into your ceiling, you can purchase molded embellishments reminiscent of times past at the hardware store. Embellishments can be anything from ceiling roses to cornices to entire tin ceilings and faux tin ceilings.
  2. Consider decorative painting for your ceiling. If you want to details of a highly embellished ceiling, but do not have the budget for it, you can consider decorative painting. You can commission a detailed mural to be painted on your ceiling, or stencil simple designs on the ceiling yourself.
  3. Add fabric to your ceiling: You can decorate the ceiling of your room with fabric. This works best in bedrooms for adults and children as fabric ads a luxurious and relaxing feel to the room. Your options with fabric are unlimited. You can use sheer fabric to give a room an ethereal feel, or any combination of bright silky fabrics to the ceiling. Your fabric can be installed to resemble the inside of a circus tent or in gently swags across the room.

Disclaimer: One of the reasons ceilings have been painted white and with flat paint, or textured is because color and satin paints show flaws. As the art of building became simply a trade to be done quickly, less care has been taken the surface of the ceiling. You have to take possible imperfections in the ceiling into account when painting it.

A silver car
Interior Styles,

Mercedes Benz B Class Unveils Its Interior

The first images of the interior of the upcoming Mercedes Benz B Class broke loose on the Internet almost two months before the car’s official debut, scheduled for the Frankfurt Motor Show. The model will go on sale on the European market by the end of next year.

First of all, the general impression this interior leaves is that it looks very attractive, successfully combining modern and retro elements. The first thing we notice is the disappearance of the gearbox knob, which has been moved from the traditional position on the central dashboard to a brand new location on the steering wheel column. However, this only applies to the models equipped with an automatic transmission; manual gearbox versions will get the regular knob between the front seats, like most cars out there. If you are looking to buy top of the line cars, you might want to look into playing some fun sports betting games via townvibe since they could be really expensive. 

The dashboard features a touchscreen display on the upper part of the central console, while the sporty three-spoke steering wheel reminds us of the one from the CLS flagship. The air vents also feature sporty accents and are pretty similar to the ones from the German carmaker’s sports car range, like the SLS AMG or the new SLK.

The new Mercedes Benz B Class promises to make a revolutionary leap in the compact class and has a total length of 4,359 mm (14.3 feet), a total width of 1,785 mm (5.8 feet) and is 1,557 mm (5.1 feet) tall. Thanks to several special optimizations, the car’s drag coefficient is only 0.26 and was the result of more than 1,100 hours spent by the German engineers testing the car in the wind tunnel.

Besides these, customers will also be able to choose an optional package, called ECO Technology, which further improves the car’s drag, lowering it to 0.24. The package features a lowered ride height, several new parts mounted under the car to improve air flow and better frames for the lateral windows.

Regarding the engine range, the new B Class will be offered with several four-cylinder engines. The entry level unit has a 1.6-liter displacement and delivers 122 hp and 200 Nm of peak torque, while the top of the range powerplant is a turbocharged version of the same engine and produces 156 hp and 250 Nm of torque.

As for the diesel engines, Mercedes Benz will offer a 1.8-liter delivering 109 hp and 250 Nm and an optional version of the same engine that produces 136 hp and 300 Nm. These will be the engines the new B Class will debut with, but Mercedes also considers a top of the line 2.0-liter engine, which will be the most powerful unit in the range. All powertrains will come with Start/Stop technology as standard and customers will be able to choose between a six-speed manual or a seven-speed 7G Tronic automatic transmission. Mercedes also plans hybrid, electric and hydrogen-powered versions, but we’ll probably only going to see these in a few years.

A person standing next to a body of water
Business,

Strong sales growth and over-proportional profitability increase in Q4

  • Q4 Net Sales up 5.1% LFL , Recurring EBITDA up 6.5% LFL
  • 2018 Net Sales up 5.1% LFL, Recurring EBITDA up 3.6% LFL
  • Over-proportional increase of Net Income (+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

1 LFL : Like-for-like

2 EBITDA : Earnings before interest, tax, depreciation and amortization

3 Before impairment and divestments, attributable to shareholders of LafargeHolcim Ltd

4 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. 

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.”

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 (loss) income2 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 Ltd
3 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 20171
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 (loss) income 1,719 (1,716)
Impairment 22 (3,501)
Profit/(loss) 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

Additional information

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.

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.

A double decker bus driving down a street
Business,

Improving transport and daily life of millions of Parisians with Grand Paris Express

The Grand Paris Express (GPE) is the largest transport infrastructure project in Europe. LafargeHolcim has been awarded major long-term contracts worth EUR 110 million as part of this larger-than-life project.

Major contributions from every segment

The numbers involved in realizing the Grand Paris Express (GPE) are staggering. LafargeHolcim will deliver 600,000 tonnes of aggregates and 260,000 tonnes of cement to produce 650,000m3 of ready-mix concrete to help realize the anticipated 200 kilometers of new railway and 68 new rail stations. What’s more, LafargeHolcim will use barges on the Seine to sustainably manage huge quanitities of excavated earth. The amount to be moved is equal to six times the weight of Burj Khalifa, the tallest building in the world!

Grand Paris Express, Paris expands its borders

Among the major international megacities, Paris is surprisingly small; London is fifteen times bigger than Paris (1,583 kilometers2 versus 105 kilometers2). This presents economic development challenges as well as transportation difficulties for the residents of the capital and its suburbs. The Grand Paris Express (GPE) Project will meet the growing city’s needs for improved transport infrastructure and will prepare Paris for the 2024 Olympic Games.

Olympics 2024 and Grand Paris

Paris will host the Olympic and Paralympic Games in 2024. With new metro lines that will serve major Olympic venues and the international airports, the Grand Paris Express (GPE) is a key factor of this winning application. This includes the development and modernization of the existing network with the extensions of existing lines 11 and 14. as well as the extension of four metro lines now known as 15, 16, 17, and 18. If you are a huge sports fan, you could support your favorite games and athletes by placing bets and playing casino games via kamakazeebaitco.com.

A bridge over a body of water
Business, Construction,

LafargeHolcim wins contracts for Europe’s largest transport infrastructure project in Paris

LafargeHolcim has been awarded major long-term contracts worth EUR 110 million as part of the Grand Paris Express (GPE) project. The GPE is the largest transport infrastructure project in Europe and represents a total investment of about EUR 38.5 billion. The project will meet the growing city’s needs for an improved transport infrastructure and will prepare Paris for the 2024 Olympic Games.

To help realize the GPE’s anticipated 200 kilometers of new railway and 68 new rail stations, LafargeHolcim will deliver 600,000 tonnes of aggregates and 260,000 tonnes of cement to produce 650,000 cubic meters of ready-mix concrete. Further LafargeHolcim will use barges on the Seine to sustainably manage excavated earth equal to six times the weight of Burj Khalifa, the tallest building in the world. Jan Jenisch, CEO: “We are proud to be a key partner on this historic project. With this partnership we are demonstrating our leadership in the building materials industry, making a lasting contribution to improving the transport experience of the people living and working in the Paris area. The project once more shows our capacity and reliability in delivering a large amount of high-quality concrete and our ability to provide efficient logistics and supply solutions. As part of our Strategy 2022 – ‘Building for Growth’ we have committed to grow our Aggregates and Ready-Mix Concrete segments and the GPE is a major milestone in the delivery of this commitment.”

To meet the project’s challenging schedule, LafargeHolcim has added mobile ready-mix concrete plants to its existing Parisian ready-mix concrete network, enabling an average production of 300 cubic meters per hour for the GPE. Further LafargeHolcim will remove and treat at least 3 million tonnes of earth from the construction site, then use the excavated material to re-landscape its nearby quarries. For the transportation of both aggregates coming from nearby quarries situated in the Seine valley and the excavated earth, LafargeHolcim will use barges on the Seine river. This solution is more efficient and sustainable than road transportation as two barges can handle the load of 220 trucks. With this concept LafargeHolcim will also meet the challenge of transporting large amounts of material through an urban area with over seven million inhabitants. With the contract LafargeHolcim is continuing a tradition of supplying aggregates and concrete to the French market that has endured for more than one-hundred years. The company aims to work on the GPE over the next 15 years.

About LafargeHolcim

LafargeHolcim is the global leader in building materials and solutions and operates four businesses segments: Cement, Aggregates, Ready-Mix Concrete and Solutions & Products, which includes precast concrete, asphalt, mortar and building solutions. With its broad portfolio LafargeHolcim solves the toughest challenges masons, builders, architects and engineers are faced with, from urbanization to population growth and the demand for affordable housing. Headquartered in Switzerland, LafargeHolcim holds leading positions in all regions across the globe. It employs approximately 80,000 employees in around 80 countries and has a portfolio that is equally balanced between developing and mature markets. LafargeHolcim is listed on the SIX Swiss Exchange and on Euronext Paris, and is a member of the Dow Jones Sustainability Indices (DJSI) European Index.

About LafargeHolcim in France

In France LafargeHolcim operates in three business segments: Cement, Aggregates and Ready-Mix Concrete, LafargeHolcim France develops innovative solutions to meet the challenges in sustainable construction and circular economy. The company is also strongly engaged in reducing its impact on the environment (ISO certifications, Unicem CSR chart, engagement in biodiversity recognized by the SNB (National Strategy for Biodiversity)).

A small boat in a body of water
Business,

LafargeHolcim successfully launches a EUR 500m Hybrid bond

LafargeHolcim today successfully settled a EUR 500 million perpetual hybrid bond at an initial fixed coupon of 3 percent with a non-call period of 5 years and a quarter. Investors have expressed a strong interest, with a total order book above EUR 5 billion.

Earlier this week, the Group also recorded successful results with its tender offer on three outstanding euro series of notes, bearing interest from 4.75 percent to 5.875 percent and maturing from July 2019 to March 2020.

Both transactions reduce the financing costs of the Group.

LafargeHolcim reaffirms its objective to strengthen its financial structure in line with the “Financial Strength” value driver of Strategy 2022 – “Building for Growth” and to reach a leverage* (Net Debt divided by Recurring EBITDA) at 2.0 x or less by end of 2019.

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.

A bridge over a body of water
Business,

ACC sets a world record in northern India

ACC, our Indian subsidiary, had its technical know-how put to the test when it supported its customer Hindustan Construction Company in pumping high-quality concrete for the Sainj Hydroelectric Power Project over a world-record distance of nearly 2.5 kilometers. This challenging build on the Sainj river, around 500km north of New Delhi, India, will provide sustainable energy to one million people

Sustaining long-term economic growth requires the discovery of new, sustainable sources of energy. For the people of northern India, the Sainj Hydroelectric Power Project is one such source. Situated in the hilly terrain and high altitude of Kullu, the project has been developed by the Himachal Pradesh Power Corporation Limited (HPPCL) to provide 100 MW project for one million people.

The project’s main construction partner is the Hindustan Construction Company (HCC). We have supported the plant and HCC for five years by supplying 75,000 tonnes of cement from our Indian subsidiary ACC, drawing on their plant in nearby Gagal. Over this time HCC has trusted us to maintain a timely and high-quality supply — no matter the challenge.

Demonstrated expertise

Nowhere was ACC’s can-do attitude more on display than in pumping high-quality concrete over a world-record distance of 2.43 km. The project required rigorous concrete mix design trials at the customer’s lab so that the concrete could be pumped across that world-record distance and still meet HCC’s standards of quality and workability when applied on the other side.

Building customer trust

Thanking ACC for providing support during this record-breaking feat, HCC’s Contracts Engineer Prajakt Atey said, “The Sainj extends its regards to ACC for achieving this record feat. We look forward to working with ACC again in the future.”

A path with trees on the side of a building
Construction,

SGR project spotlight: Sustainability

Lasting, strong infrastructure requires appropriate materials, and for many projects there is but one choice: concrete. Those who understand construction know it is a material not without challenges and effects on the environment. The partnership of Bamburi Cement with the CCCC on the SGR allows us to share the story of a team dedicated to going a step further to protect the natural world beyond our plants.

Cleaning up our act

Bamburi Cement and LafargeHolcim are no strangers to environmental concerns in Kenya. Environmental challenges emerge at almost every stage of the cement manufacturing process. The exhausted limestone quarry in Mombasa seemed to be an example of what concrete-making can leave behind. The area just outside the Bamburi plant is within walking distance to the ocean and there was a concern that any more exploitation could risk groundwater pollution.

In 1971, hoping to find ways to heal the landscape, Bamburi Cement reached out to René Haller, a Swiss naturalist, to transform the area. Today, the area where this journey took place is not recognizable as a quarry. It is now a nature park teeming with animals, some of which cross and visit the cement plant next door to the extent that plant safety protocols have to account for visiting antelopes.

Lasting results for local species

Haller Park has become a popular tourist destination in Mombasa, a testament to the dedicated rehabilitation and conservation efforts of many over nearly 50 years. Today, the area surrounding the quarry has more than 400 species of indigenous trees, shrubs, and lianas. Many of the indigenous species are now reproducing in the restored ecosystems and supporting a diverse animal population, including more than 180 species of birds, 80 species of butterflies, 17 species of dragonflies, 14 amphibian species and 34 different mammals.

Haller Park and Forest Trails demonstrate that a dedicated long-term approach to rehabilitation really bears sustainable results. Lafarge Eco Systems Ltd.’s greening of over 600 hectares of land has also contributed to pollution control, helped retain hydrology and provided a renewable source of timber and firewood. No longer a wasteland around a cement operation, the area has been transformed into a thriving and self-sustaining ecosystem.