A plane sitting on the ground
Construction,

Tailored solutions for major construction projects

Every infrastructure sector has its own specific challenges when it comes to construction and operations. LafargeHolcim’s expert infrastructure teams work from the design stage to deliver sector-specific solutions so that infrastructure projects are more efficient and sustainable, anywhere in the world.

Built to last

Mexico City’s new international airport will be the most sustainable in the world — and we are proud to support it. Our teams designed special concretes able to withstand aggressive sulfate and chloride conditions for 75 years, with a minimal environmental footprint. This project adds to the list of major airports we helped build, a list which already includes Jeddah International and Kuala Lumpur International.

Specific solutions

We also have expertise in mining. In Canada’s Timmins mining camp, we are on-site at one of the worlds deepest underground mines where we’ve developed and continue to supply specialty backfill products to help increase mine output. LafargeHolcim has deployed such mine-specific solutions in more than forty mines across North America, Africa, Europe and Asia Pacific. In Algeria LafargeHolcim worked with contractors and local authorities to develop a range of solutions for road foundations and pavement. As a result we helped lower the cost and construction time of road projects and at the same time made them far more durable (enabling a typical lifespan of 15–20 years, as compared to 2–5 years for conventional road projects). These specific road solutions are now available in more than twenty countries.

A train on a steel track
Construction,

Geocycle solves a mounting challenge

Geocycle offers a unique and sustainable solution to the problem of increasing global urbanization; co-processing waste for use as fuel in cement kilns.

Building to a circular economy

Fifty million people move to cities each year to find better opportunities for themselves and their children. One consequence is a lot more waste. Between 2012 and 2025, the amount of municipal solid waste generated each year will increase from 1.3 billion tonnes to 2.2 billion tonnes, according to World Bank estimates.

Our Geocycle business offers a unique and sustainable solution to this growing challenge. Today Geocycle treats around 10 million tons of waste annually, serving more than 10,000 customers in over 50 countries. Our aim is to reach 22 million tons by 2025.

Using state-of-the art technology, tailored processes and in-depth expertise, Geocycle converts industrial, municipal and agricultural waste into a suitable material from which mineral and/or combustible components can be recovered in our cement kilns.

The extremely high temperatures required for cement production offer a unique and safe solution to dispose of waste for which no other solution exists. Geocycle thus opens a channel for a ‘circular’ economy: it takes waste that cannot be reused or recycled, treats it and then converts it into a resource. To be more financially stable, you might want to look into playing some fun sports betting games via https://www.ufabet168.bet/.

Geocycle contributes to lower CO2 emissions from cement production by reducing use of natural resources such as fossil fuels and virgin raw materials. Simultaneously it conserves land which would otherwise be used for landfill and reduces air and water pollution as compared to either landfill or incineration. This also significantly reduces the burden on municipalities who need solutions to this ever-growing problem.

Geocycle in Goa

In India about 80% of municipal waste is uncontrolled, dumped and openly burned. The problem is felt acutely in Goa, where the economy thrives on tourism. Local authorities are tackling the problem head-on, showcasing new methods to create a clean and green Goa. In 2017 Geocycle India met with public and private sector players working on landfill remediation.

To demonstrate how they could help, Geocycle co-processed approximately 5,000 tonnes of refuse-derived fuel, winning the trust of authorities. The pilot provided a sustainable model for cleaning up landfills without any future liability for the state government. The Goa site is now being visited by city officials from all over India as a showcase of successful partnership between Geocycle and municipalities. Municipalities of Bangalore, Chennai, Mumbai and others are now looking at similar projects.

A person smiling for the camera
Business,

Appointment of Magali Anderson as first Chief Sustainability Officer to the Executive Committee

LafargeHolcim made today a major step with the creation of its first Chief Sustainability Officer position as part of the Executive Committee. LafargeHolcim is accelerating its efforts to be the industry leader on decarbonization, circular economy, health and safety and corporate social responsibility. Magali Anderson has been appointed to the position effective October 1, 2019.

Jan Jenisch, CEO: “I am very pleased with the appointment of Magali as our first Chief Sustainability Officer. This will accelerate our vision of running our operations with zero harm to people and contributing to a built environment that will be carbon neutral, fully recyclable and with a positive environmental impact.”

“I am very excited to lead our company’s sustainability efforts,” said Magali Anderson. “We are uniquely positioned to be at the forefront of our industry and we must continue challenging ourselves to create value for all our stakeholders while helping the world build as sustainably and safely as possible.”

Magali Anderson a French national and a mechanical engineer, has an extensive international industry experience, acquired in a variety of general management, operational and functional roles in countries such as Brazil, Nigeria, Indonesia, Angola, Romania and China. She joined LafargeHolcim in 2016 as Head of Health & Safety and has since significantly improved the safety performance of the company.

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.

Text
Business, Finance,

Record net income and free cash flow

 Net sales up 3.1% like-for-like with an over-proportional Recurring EBITDA1 growth of 6.5% like-for-like

• Record net income2 of CHF 2,072 million (+32%), EPS3 up 29%

• Record free cash flow1 of CHF 3,047 million (+79%)

• Cash conversion1 at 49.5% (28.3% in 2018)

• Net debt1  reduced from CHF 13.5 billion to CHF 8.8 billion (-35%); Net debt to Recurring EBITDA at 1.4x1

• All 2019 targets achieved

• Strengthening leadership in sustainability

PERFORMANCE OVERVIEW

Group Full Year (in million CHF) 2019 2018 ±% ±% LfL
Net sales 26,722 27,466 -2.7 3.1
Recurring EBITDA (pre-IFRS16) 6,153 6,016 2.3 6.5
Recurring EBITDA (pre-IFRS16) margin (%) 23.0 21.9
Operation profit (EBIT) 3,833 3,312 15.7
Net income, group share 2,246 1,502 49.5
Net income before impairment & divestments (pre-IFRS16)4 2,072 1,569 32.1
EPS in CHF/share 3.69 2.52 46.3
EPS before impairment & divestments in CHF/share (pre-IFRS 16) 3.40 2.63 29.1
Free Cash Flow (pre-IFRS 16) 3,047 1,703 79.0
Net financial debt (pre-IFRS 16) 8,811 13,518

Jan Jenisch, CEO: “2019 was a very successful year for us and we achieved record results in Operating profit, Net income, EPS and Free Cash Flow. Our sharp decrease in net debt has significantly strengthened our balance sheet. We have achieved all our targets for 2019 and have moved our company to a new level of performance.

On top of these record financial results, we strengthened our leadership in sustainability by setting more ambitious targets for carbon emissions and by joining the Science-Based Target initiative. We introduced our first carbon-neutral concrete in key markets and will further focus on expanding our range of low-carbon building solutions.

I congratulate all our employees and teams on these impressive results and would like to thank them for their dedication and efforts in making this possible. We stand in solidarity with our colleagues in our Chinese operations and in our joint venture Huaxin in view of the current coronavirus crisis. We are taking all necessary measures to protect the health of our employees and their families.”

A RECORD PERFORMANCE

Midway through Strategy 2022 “Building for Growth” LafargeHolcim has achieved almost all 2022 targets. The company significantly strengthened its balance sheet and is now well positioned to continue growing profitably with strong market positions in all regions. On top, eight bolt-on acquisitions in the attractive Ready-Mix and Aggregates markets have been accomplished in 2019.

Net sales of CHF 26,722 million grew 3.1% on a like-for-like basis compared to the prior year, driven by good growth in Europe and North America, good price dynamics across all business segments and higher prices in most markets.

Recurring EBITDA1 reached CHF 6,153 million, up 6.5% like-for-like for the full year, driven by good pricing, improvement in efficiencies and our CHF 400 million SG&A cost savings program. The Recurring EBITDA margin1 increased from 21.9% in 2018 to 23% in 2019.

Record Net income2 of CHF 2,072 million increased by 32% compared to 2018 (CHF 1,569 million), driven by less restructuring costs, lower financial expenses as well as a decrease in the tax rate.

Earnings per Share3 were up by 29% accordingly to reach CHF 3.40 for the full year 2019 versus CHF 2.63 for 2018.

Record Free Cash Flow1 generation of CHF 3,047 million (+79%) and strong improvement of cash conversion1 reaching 49.5%, well above the target of 40%, as defined in Strategy 2022 – “Building for Growth”. This achievement reflects reduced cash paid for tax, financial and restructuring costs as well as improved net working capital.

Net debt1 was substantially reduced by CHF 4.7 billion (-35%) to CHF 8.8 billion at year-end 2019, reflecting the strong Free Cash Flow and the positive impact following the sale of Indonesia and Malaysia. This resulted in a significant deleveraging with a ratio of Net debt to Recurring EBITDA of 1.4x1  (2.2x in 2018).

Return on Invested Capital1 (ROIC) was a strong 7.6% for 2019, close to the 2022 target of above 8% and compared to 6.5% in the previous year. ROIC is now above cost of capital thanks to higher profitability, lower tax rate and disciplined Capex.

In 2019, LafargeHolcim delivered a record performance and reached a new level of financial strength which puts the company in a perfect position for further profitable growth for the second half of Strategy 2022 and beyond.

STRENGTHENING LEADERSHIP IN SUSTAINABILITY

In 2019, LafargeHolcim made significant progress in reducing its carbon footprint. Compared to 2018 the company reduced its net CO2 scope 1 emissions per ton of cementitious material by 1.4%5to 561 kg/ton in 2019, nearly meeting its 2022 target of 560 kg/ton.

Given this strong progress, the company has revised its 2022 target to 550 kg/ton as it moves to reduce its carbon footprint to 520 kg/ton by 2030. In 2019, the Science-Based Targets initiative (SBTi) has validated the targets to reduce the company’s global carbon footprint as adequate and consistent with the effort to keep temperatures below the ‘2°C’ threshold agreed at the COP21 world climate conference in Paris.

Compared to 1990, the company had already reduced its directly attributable (‘scope 1’) net CO2 emissions per ton of cementitious material by 27%, by far the leader among international cement groups.

In October 2019, Chief Sustainability Officer Magali Anderson was appointed as a member of the Group Executive Committee, underlining LafargeHolcim’s industry leadership in regard to social and ecological responsibility.

Recently LafargeHolcim introduced its first fully carbon-neutral concrete6 in Switzerland and Germany, demonstrating the company’s move toward building a global family of carbon-neutral products.

To keep up this momentum, the company has also revised its incentive scheme so that one-third of the Executive Committee’s performance share rewards is based on progress in carbon emissions, waste recycling and freshwater withdrawal. The health and safety component of the annual incentive scheme will also include a scorecard including both leading and lagging performance metrics. Both changes to the incentives scheme begin in 2020.

OUTLOOK 2020

For 2020, LafargeHolcim anticipates a continued solid market environment:

  • Continued market growth in North America
  • Improving market conditions in Latin America
  • Continued demand growth across most countries in Europe
  • Challenging market conditions in Middle East Africa
  • Demand growth in India, challenging environment in China. This outlook doesn’t take into account the impact that the Coronavirus (COVID-19) might have on the operating results in China

Based on the above trends and the successful execution of Strategy 2022, we are confident to achieve the following targets for 2020:

  • Net sales growth of 3 to 5% on a like-for-like basis
  • Recurring EBIT* growth of at least 7%7 on a like-for-like basis
  • Ratio of Net debt to Recurring EBITDA below 2 times by the end of 2020
  • Cash conversion of 40%
  • Capex and bolt-on acquisitions of less than CHF 2 billion

For the 2019 financial year, the Board of Directors is proposing a cash dividend of CHF 2.00 per registered share, subject to approval by the shareholders at the Annual General Meeting on 12 May 2020. The dividend will be fully paid out of the foreign capital contribution reserve and is not subject to Swiss withholding tax.

* LafargeHolcim announces Recurring EBIT as its new key performance indicator starting in 2020, replacing Recurring EBITDA. The new indicator provides full transparency and accountability under IFRS 16 as it fully captures operational achievements and better reflects financial discipline on investments. The key performance indicator changes from the previously used Recurring EBITDA growth of at least 5% like-for-like to Recurring EBIT growth of at least 7% like-for-like.

KEY GROUP FIGURES 2019

Group Q4 (in million CHF) 2019 2018 ±% ±% LfL
Net sales 6,521 6,831 -4.5 0.6
Recurring EBITDA pre-IFRS 16 1,610 1,665 -3.3 0.1
Recurring EBITDA margin pre- IFRS 16 (%) 24.7 24.4
Group Full Year (in million CHF) 2019 2018 ±% ±% LfL
Net sales 26,722 27,466 -2.7 3.1
Recurring EBITDA pre-IFRS 16 6,153 6,016 2.3 6.5
Recurring EBITDA margin pre-IFRS 16 (%) 23.0 21.9
Operating profit (EBIT) 3,833 3,312 15.7
Net income, group share 2,246 1,502 49.5
Net Income before impairment & divestments (pre-IFRS 16) group share 2,072 1,569 32.1
EPS before impairment & divestments (pre-IFRS 16) 3.40 2.63 29.1
Cash flow from operating activities 4,825 2,988 61.5
Free Cash Flow pre-IFRS 16 3,047 1,703 79.0
Net financial debt pre-IFRS 16 8,811 13,518 -34.8
Group Results by Segment Full Year 2019 2018 ±% ±% LfL
Sales of Cement (mt) 207.9 221.9 -6.3 0.5
Net sales of Cement (CHFm) 17,498 18,052 -3.1 4.0
Recurring EBITDA of Cement pre-IFRS 16 (CHFm) 4,759 4,688 1.5 6.1
Recurring EBITDA margin of Cement pre-IFRS 16 (%) 27.2 26.0
Sales of Aggregates (mt) 269.9 273.8 -1.4 -0.3
Net sales of Aggregates (CHFm) 4,125 4,091 0.8 3.5
Recurring EBITDA of Aggregates pre-IFRS 16 (CHFm) 902 893 1.0 3.0
Recurring EBITDA margin of Aggregates pre-IFRS 16 (%) 21.9 21.8
Sales of Ready-Mix-Concrete (m m3) 47.7 50.9 -6.3 -2.0
Net sales of Ready-Mix-Concrete (CHFm) 5,289 5,481 -3.5 -0.2
Recurring EBITDA of Ready-Mix-Concrete pre-IFRS 16 (CHFm) 276 232 18.9 18.0
Recurring EBITDA margin of Ready-Mix-Concrete pre-IFRS 16 (%) 5.2 4.2
Net sales of Solutions & Products (CHFm) 2,248 2,396 -6.2 0.2
Recurring EBITDA of Solutions & Products pre-IFRS 16 (CHFm) 217 203 7.1 20.0
Recurring EBITDA margin of Solutions & Products pre-IFRS 16 (%) 9.7 8.5

Regional performance
Asia Pacific

The Asia Pacific region continued to generate strong Recurring EBITDA pre-IFRS 16 growth. Overall there was a strong over-proportional improvement of Recurring EBITDA pre-IFRS 16 in India. The turnaround initiatives in Australia offset the current market slowdown. The contribution from China continued to be solid.

Asia Pacific Full Year 2019 2018 ±% ±% LfL
Sales of cement (mt) 73.5 89.7 -18.1 -0.3
Sales of aggregates (mt) 27.3 31.4 -13.0 -0.5
Sales of ready-mix concrete (m m3) 9.6 12.5 -23.3 -0.4
Net sales to external customers (CHFm) 6,491 7,446 -12.8 2.5
Recurring EBITDA pre-IFRS 16 (CHFm) 1,694 1,609 5.3 14.2
Recurring EBITDA margin pre-IFRS 16 (%) 26.1 21.5

Europe

2019 was another excellent year for the Europe region with a very strong over-proportional growth in Recurring EBITDA pre-IFRS 16. Eastern and Central European markets were especially robust with ongoing public infrastructure spending across Europe. Successful price increases were implemented in all segments and for instance in the key markets of France, Germany, Poland and Russia. The strong margin improvement was supported by operational efficiencies and effective price management in all business segments.

Europe Full Year 2019 2018 ±% ±% LfL
Sales of cement (mt) 46.3 45.3 2.3 2.3
Sales of aggregates (mt) 118.7 120.4 -1.4 -1.8
Sales of ready-mix concrete (m m3) 19.3  19.3 -0.1 -0.4
Net sales to external customers (CHFm) 7,670 7,554 1.5 4.9
Recurring EBITDA pre-IFRS 16 (CHFm) 1,596 1,499 6.5 10.2
Recurring EBITDA margin pre-IFRS 16 (%) 20.5 19.5

Latin America

In 2019, the Latin America region continued to see soft but stabilizing cement demand. Markets in Mexico and Ecuador were weaker, while Colombia delivered a good performance. Cement demand recovered in Brazil. Effective cost and price management across the region partially mitigated the challenges in key markets such as Mexico and provided for an overall resilient regional performance.

Latin America Full Year 2019 2018 ±% ±% LfL
Sales of cement (mt) 24.7 25.1 -1.5 -1.5
Sales of aggregates (mt) 4.1 3.6 14.6 14.6
Sales of ready-mix concrete (m m3) 4.9 5.5 -10.7 -10.7
Net sales to external customers (CHFm) 2,620 2,731 -4.1 3.6
Recurring EBITDA pre-IFRS 16 (CHFm) 887 959 -7.5 -1.7
Recurring EBITDA margin pre-IFRS 16 (%) 33.7 35.0

Middle East Africa

Market conditions in the Middle East Africa region remained challenging in 2019, albeit with further progress towards stabilization. Price pressure continued in oversupplied markets such as Algeria and Nigeria. The good progress in turnaround initiatives partially offset challenging conditions in these key markets. Robust cement demand in Iraq and several countries in Eastern Africa helped to further mitigate these challenges. Overall cement volumes remained stable across the region, matching the prior-year level.

Middle East Africa Full Year 2019 2018 ±% ±% LfL
Sales of cement (mt) 35.6 35.9 -0.8 -0.8
Sales of aggregates (mt) 6.3 8.7 -28.1 -28.1
Sales of ready-mix concrete (m m3) 3.8 4.2 -10.1 -10.1
Net sales to external customers (CHFm) 2,903 3,080 -5.8 -0.8
Recurring EBITDA pre-IFRS 16 (CHFm) 656 734 -10.7 -5.1
Recurring EBITDA margin pre-IFRS 16 (%) 22.3 23.5

North America

The macroeconomic environment remained favorable in the US and Eastern Canada with a strong order backlog and several large projects already captured. Western Canada experienced some challenges triggered by the economic downturn in the oil and gas dependent provinces of the Prairies. Overall, North America delivered a solid performance with an over-proportional Recurring EBITDA pre-IFRS 16 growth in Q4 2019.

North America Full Year 2019 2018 ±% ±% LfL
Sales of cement (mt) 20.8 19.8 5.3 5.3
Sales of aggregates (mt) 113.5 109.6 3.6 3.0
Sales of ready-mix concrete (m m3) 10.2 9.4 7.6 1.6
Net sales to external customers (CHFm) 6,311 5,875 7.4 4.9
Recurring EBITDA pre-IFRS 16 (CHFm) 1,621 1,523 6.4 4.4
Recurring EBITDA margin pre-IFRS 16 (%) 25.7 25.9

OTHER PROFIT & LOSS ITEMS

Depreciation and amortization pre-IFRS 16 stood at CHF 2,096 million versus CHF 2,235 million in 2018, reflecting the divestment in South East Asia and discipline in Capex.

Restructuring, litigation, implementation and other non-recurring costs stood at CHF 190 million, compared to CHF 476 million in 2018 and CHF 461 million in 2017. 2019 restructuring costs amounted to CHF 101 million, reflecting the completion of the implementation of the SG&A savings program.

Profit and Loss on disposals and other non-operating items amounted to CHF 186 million, reflecting mainly the capital gain on the Indonesia and Malaysia divestments.

Net financial expenses pre-IFRS 16 for 2019 amounted to CHF 638 million versus CHF 886 million in the prior year, a strong improvement by CHF 248 million. This was driven by refinancing actions and deleverage.

The income tax rate pre-IFRS 16 excluding impairment and divestments was 26%, 1.7 percentage points lower than in 2018.

Reflecting all the above, 2019 Net income group share amounted to CHF 2,246 million.

Excluding impairment and divestments, EPS pre-IFRS 16 was up 29.1% to CHF 3.40 for 2019. On a reported basis, EPS was CHF 3.69 for 2019.

Net capital expenditure for 2019 was CHF 1,396 million. Free Cash Flow pre-IFRS 16 stood at CHF 3,047 million, up 79.0% compared to 2018. This led to a ratio of cash conversion pre-IFRS 16, defined as Free Cash Flow relative to Recurring EBITDA, of 49.5% in 2019.\

RECONCILIATION TO GROUP ACCOUNTS

Reconciliation of IFRS 16 impacts in Statement of income with the Consolidated Financial Statements

Group Full Year (in million CHF) 2019
post-IFRS 16		 IFRS 16
impact		 2019
pre-IFRS 16		 2018
Net sales 26,722 26,722 27,466
Recurring costs excluding SG&A (18,678) 364 (19,042) (19,511)
Recurring SG&A (2,011) 64 (2,075) (2,441)
Share of profit of joint ventures 548 548 502
Recurring EBITDA 6,581 428 6,153 6,016
Depreciation and amortization (2,479) (383) (2,096) (2,235)
Recurring EBIT 4,102 45 4,057 3,781
Impairment of operating assets (80) (80) 6
Restructuring, litigation, implementation and other non-recurring costs (190) (190) (476)
Operating profit (EBIT) 3,833 45 3,787 3,312
Profit (loss) on disposal and other non-operating items 186 4 182 (73)
Net financial expenses (712) (74) (638) (886)
Share of profit of associates 12 12 22
Net Profit before tax 3,319 (25) 3,344 2,375
Income tax (806) 7 (813) (656)
Net income 2,513 (18) 2,531 1,719

Reconciliation of Net Income before impairment and divestments with the Consolidated Financial Statements

Group Full Year (in million CHF) 2019
post-IFRS 16		 IFRS 16
impact		 2019
pre-IFRS 16		 2018
Net income 2,513 (18) 2,531 1,719
Impairment (66) (66) 22
Profit (loss) on divestments 255 255 (74)
Net income before impairment and divestments  2,323 (18) 2,341 1,772
Net income before impairment and divestments Group share 2,072 1,569

Adjustments disclosed net of taxation

Reconciliation of Free Cash Flow with the Consolidated Financial Statements

Group Full Year (in million CHF) 2019
post-IFRS 16		 IFRS 16
impact		 2019
pre-IFRS 16		 2018
Cash flow from operating activities 4,825 381 4,444 2,988
Purchase of property, plant and equipment (1,534) (1,534) (1,411)
Disposal of property, plant and equipment 137 137 126
Repayment of long-term lease liabilities (409) (409)
Free Cash Flow 3,019 (28) 3,047 1,703

Reconciliation of Net financial debt with the Consolidated Financial Statements

Group Full Year (in million CHF) 2019
post-IFRS 16		 IFRS 16
impact		 2019
pre-IFRS 16		 2018
Current financial liabilities 2,089 304 1,785 3,063
Long-term financial liabilities 12,202 995 11,207 13,061
Cash and cash equivalents 4,148 4,148 2,515
Short-term derivative assets 28 28 66
Long-term derivative assets 5 5 26
Net financial debt 10,110 1,299 8,811 13,518

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 at the link above.

ADDITIONAL INFORMATION

Moving towards Integrated Annual Reporting

For its 2019 annual report, LafargeHolcim applies the principles of Integrated Reporting. Besides the financial results, the report includes more information on our sustainability performance. Sustainability is central to the strategy and principles of our company.

The Integrated Annual Report 2019 and the analyst presentation of the results are available on www.lafargeholcim.com A summary report is available in English and German; the full report is available in English.

The financial statements are based on IFRS can be found on the LafargeHolcim Group website.

About LafargeHolcim

LafargeHolcim is the global leader in building materials and solutions and active in four business segments: Cement, Aggregates, Ready-Mix Concrete and Solutions & Products. Its ambition is to lead the industry in reducing carbon emissions and shifting towards low-carbon construction. With the strongest R&D organization in the industry, the company seeks to constantly introduce and promote high-quality and sustainable building materials and solutions to its customers worldwide – whether individual homebuilders or developers of major infrastructure projects. LafargeHolcim employs over 70,000 employees in over 70 countries and has a portfolio that is equally balanced between developing and mature markets.

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 the 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 group of people standing around a plane
Business,

LafargeHolcim implements action plan regarding Coronavirus (Covid-19) pandemic

• Execution of action plan “HEALTH, COST & CASH” in all countries

• Reduction of CAPEX by at least CHF 400 million compared to 2019

• Reduction in fixed cost by at least CHF 300 million in 2020

• Reduction of Net Working Capital at least in line with level of activity

• Strong liquidity of CHF 8 billion as of March 26, 2020

• Confirmation of Annual General Assembly on May 12, 2020 and confirmation of dividend proposal

Since the beginning of the Coronavirus (Covid-19) pandemic, LafargeHolcim has taken the necessary measures to protect the health of its employees, customers, suppliers and other stakeholders. We are closely monitoring all markets according to the evolving situation and to the guidance provided by the authorities in each country.

While the construction sector and construction sites are generally more resilient than other sectors, LafargeHolcim is now experiencing disruptions in operations in various countries. In China, the recovery of the construction sector has started and all our plants outside of Hubei Province are operating. We forecast the market demand to further recover and to supply 70% of last year’s volume in April 2020. In most of the other key markets, the construction sector is disrupted and we forecast significant volume declines in April and May. While demand in Q1 was solid overall, LafargeHolcim expects a significant negative impact on its business in Q2.

Currently the development of the Coronavirus pandemic and its implications for the business are volatile and very different from country to country. In order to mitigate the financial impact of the situation, we have launched the action plan “HEALTH, COST & CASH” for immediate execution in all countries. Targets are:

  • Reduction of CAPEX by at least CHF 400 million compared to 2019
  • Reduction in fixed cost by CHF 300 million in 2020
  • Realization of reduction of energy prices and full review of all third party products and services
  • Reduction of Net Working Capital at least in line with level of activity

Based on the significantly strengthened balance sheet, LafargeHolcim has strong liquidity of CHF 8 billion as of March 26, 2020.

Due to the impact of the Coronavirus pandemic, the guidance for 2020 is no longer valid. While the implementation of the action plan “HEALTH, COST & CASH” is in full execution, the dynamic, volatile development of the Coronavirus pandemic makes it currently no longer possible to fully evaluate its impact on the performance of LafargeHolcim in 2020. We will provide a more comprehensive business update at the first quarter 2020 results release on April 30, 2020.

In its meeting on March 26, 2020, the Board of Directors confirmed the date of the Annual General Assembly and the proposal for the payment of a cash dividend.

The Annual General Assembly will be held on May 12, 2020, as planned. In accordance with the requirements as defined in the Ordinance of the Federal Council of Switzerland, dated March 16, 2020, to protect the public, shareholders will not be allowed to attend the event in person. Shareholders are requested to vote their shares in advance by giving a power of attorney to the independent proxy.

For the 2019 financial year, the Board of Directors confirms the proposal of a cash dividend of CHF 2.00 per registered share, subject to approval by the shareholders at the Annual General Meeting on May 12, 2020. The dividend will be fully paid out of the foreign capital contribution reserve and is not subject to Swiss withholding tax.

About LafargeHolcim 

LafargeHolcim is the global leader in building materials and solutions and active in four business segments: Cement, Aggregates, Ready-Mix Concrete and Solutions & Products. Its ambition is to lead the industry in reducing carbon emissions and shifting towards low-carbon construction. With the strongest R&D organization in the industry, the company seeks to constantly introduce and promote high-quality and sustainable building materials and solutions to its customers worldwide – whether individual homebuilders or developers of major infrastructure projects. LafargeHolcim employs over 70,000 employees in over 70 countries and has a portfolio that is equally balanced between developing and mature markets.

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 the 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 man holding a sign
Business,

LafargeHolcim CEO endorses worldwide initiative to promote human rights

LafargeHolcim CEO Jan Jenisch has joined today the Call to Action for Business Leadership on Human Rights by the World Business Council for Sustainable Development (WBCSD).

Leaders who join the initiative commit to making human rights more than just a risk and compliance issue for their companies – they will actively promote them as part of their company’s commitment to social responsibility.

“I hope that by giving my personal commitment to this Call to Action we can highlight the importance of this topic for LafargeHolcim. We have always strived to be a valued member of the communities where we live and work and a model corporate citizen on a global level. Standing up as a promoter of human rights shall further advance these goals,” comments Jan Jenisch, CEO of LafargeHolcim and member of the Executive Committee of WBCSD.

LafargeHolcim’s approach to managing human rights is fully aligned with the UN Guiding Principles on Business and Human Rights, which establish guidelines for preventing, addressing and remedying infringements of human rights.

Over the last five years, LafargeHolcim has invested CHF 240 million in community projects. In 2019, 6 million people benefitted from these investments.

LafargeHolcim promotes transformative change in the human rights dimension through such longstanding policies as its Supplier Code of Conduct and its Human Rights due diligence methodology. At the same time LafargeHolcim champions human rights internally, for example by setting concrete targets for diversity and inclusion across its operations. The company invests significantly to support community development, for example by providing education and medical care in line with its human rights agenda.

The Call to Action is part of WBCSD´s CEO Guide to Human Rights, which was released in June 2019, and summarizes a set of principles and actions for CEOs to ensure that their companies effectively advance on defending and respecting Human Rights, boosting positive changes in the lives of the people and communities around which they operate.

With the promotion of the CEO Guide to Human Rights, the 41 signing leaders in 20 countries send a clear message on the need to elevate the ambition concerning human rights.

Peter Bakker, President and CEO of WBCSD: “The Guide presents a bold unprecedented declaration by company leaders, whose companies’ actions and policies influence vast global supply chains. We are very happy to see Jan Jenisch from LafargeHolcim personally endorse our global initiative to promote human rights in business and we are convinced that his leadership will inspire other CEOs to support this critical cause for a fairer and more sustainable world.”

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 view of a city
Health & Fitness,

Svante, LafargeHolcim, Oxy Low Carbon Ventures and Total launch study for commercial-scale carbon capture and end-use at U.S. plant

Vancouver/Zurich/Houston/Paris, January 6, 2020 – Svante Inc., LafargeHolcim, Oxy Low Carbon Ventures, LLC (OLCV), a wholly-owned subsidiary of Occidental, and Total today announced a joint study to assess the viability and design of a commercial-scale carbon-capture facility at the Holcim Portland Cement Plant in Florence, Colorado, U.S.

The study will evaluate the cost of the facility designed to capture up to 725,000 tonnes of carbon dioxide per year directly from the LafargeHolcim cement plant, which would be sequestered underground permanently by Occidental.

“OLCV is dedicated to advancing low-carbon solutions that will enhance Occidental’s business while reducing emissions,” OLCV President Richard Jackson said. “Participating in this study aligns with our goals of finding an economical pathway toward large-scale application of carbon-capture technologies to reduce emissions.”

The carbon-capture facility under review will employ Svante’s technology to capture carbon directly from industrial sources at half the capital cost of existing solutions. Occidental, the industry leader in CO2 management and storage, would sequester the captured CO2. Pairing carbon capture from a cement plant with CO2 sequestration is a significant step forward for the cement industry in reducing its carbon footprint.

“Being at the forefront of the low-carbon transition requires continuous innovation and partnerships,” LafargeHolcim CEO Jan Jenisch said. “LafargeHolcim has significantly invested in the development of low-carbon solutions. Collaborating with Svante, OLCV and Total, we expect to realize a successful U.S. carbon-capture project in the near future.”

“Svante’s capital cost advantage, combined with progressive tax credit policies such as the 45Q tax credit in the U.S., can make carbon capture profitable across a range of large-scale industrial applications like cement,” said Claude Letourneau, president and CEO of Svante Inc.

“Total has slated 10% of its annual R&D budget to make significant advances in Carbon Capture, Utilization and Storage (CCUS) technology, a key technology to curb worldwide CO2 emissions. Our investment in this joint study is directly aligned with our strategy. The learnings from this study will help us pursue our commitment to the commercial development of CCUS,” said Marie-Noëlle Semeria, Senior Vice President, Group CTO at Total. This joint initiative follows the recently-launched Project CO2MENT between Svante, LafargeHolcim and Total in Canada at the Lafarge Richmond cement plant, where progress has been made towards re-injecting captured CO2 into concrete.

About Total

Total is a major energy player that produces and markets fuels, natural gas and low-carbon electricity. Our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major. www.total.com

About Oxy Low Carbon Ventures

Oxy Low Carbon Ventures, LLC (OLCV) is a subsidiary of Occidental, an international oil and gas exploration and production company with operations in the United States, Middle East and Latin America. OLCV is focused on advancing leading-edge, low-carbon technologies and business solutions that economically grow our business while reducing emissions. OLCV also invests in the development of low-carbon fuels and products, as well as sequestration services to support carbon capture projects globally.

Cautionary Statement Regarding Forward-Looking Statements

Any statements in this release relating to expectations, beliefs, plans or forecasts, including any statements relating to the success, capability or scalability of the project, that are not historical facts are forward-looking statements. These statements are typically identified by words such as “potential,” “will,” “would,” “should,” “may,” “plan,” “believe,” “expect,” “designed to,” or similar expressions that convey the prospective nature of events or outcomes. Actual results, including those related to project plans and timing and the impact and results of new technologies, including emission reductions, could vary from anticipated results. Factors that could cause actual results to differ include, but are not limited to: global commodity pricing fluctuations; supply and demand considerations for carbon capture and sequestration technologies; the competitiveness of alternative energy sources or product substitutes; higher-than-expected costs; the regulatory environment; availability of funding, personnel and materials; litigation; actions by third parties; failures in risk management; and changes in laws, regulations or tax rates. Material risks that may affect the results of Occidental and its subsidiaries appear in Part I, Item 1A “Risk Factors” of Occidental’s Annual Report on Form 10-K for the year ended December 31, 2018, and in Occidental’s other filings with the SEC.

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.

About Svante

Svante offers companies in emissions-intensive industries a commercially viable way to capture large-scale CO2 emissions from existing infrastructure, either for safe storage or to be recycled for further industrial use in a closed loop. With the ability to capture CO2 directly from industrial sources at less than half the capital cost of existing solutions, Svante makes industrial-scale carbon capture a reality. Svante’s Board of Directors includes Nobel Laureate and former Secretary of Energy, Steven Chu; former Airbus Group’s Chief Technical Officer Jean Botti; and Steven Berkenfeld, former Head of Industrial & Cleantech Practice at Barclays Capital.
To learn more about Svante’s technology:

R&D Centre
Construction,

LafargeHolcim ramps up partnership with Solidia Technologies to capture CO2 in building materials

• LafargeHolcim signs long-term Collaboration Framework Agreement with Solidia

• Commercialization begins in US and Western Europe; rapid scaling planned for other European markets

• New phase marks long-term ambition toward a full-scale CO2 solution that captures CO2 from the cement plants and injects into final products

LafargeHolcim ramps up its partnership with Solidia Technologies to reduce CO2 across its value chain. With this announcement the collaboration with the US-based cement and concrete technology company, which began in 2013, is formally agreed until 2025, with an option to extend.

Together the two companies’ solutions not only emit up to 30% less CO2 during cement production, they also capture and store CO2, leading to a 70% carbon reduced concrete. Together with Solidia LafargeHolcim will continue to develop new innovative solutions focused on non-reinforced concrete structures and paving while also aiming to make it increasingly applicable for structural applications.

Marcel Cobuz, Region Head Europe: “Leading the way in low-carbon construction, we plan to facilitate a wider and faster roll-out of the innovative Solidia solution across our operations around the world. By scaling up Solidia’s solutions, we can fast forward our vision of carbon-neutral cities.”

Tom Schuler, President and CEO of Solidia Technologies, added: “By providing market access, technical expertise and market intelligence, LafargeHolcim helped us develop a better cement and concrete. Thanks to our collaboration, we are in market and expanding. Moving forward, we will advance carbon capture, utilization and storage technologies and develop solutions for the full, global concrete market.”

Key US customers have already placed orders for Solidia Cement™ to produce concrete paving blocks using the Solidia technology. In addition to delivering a low CO2 product from a low CO2 cement and permanent CO2 sequestration in concrete materials, Solidia cement can also increase precast production output from full product strength in under 24 hours (compared to 28 days for traditional concrete) and less equipment down time for cleaning. Solidia Concrete™ products are more durable and have a wider color palette and no efflorescence.

Industrial pilots are currently also ongoing in Canada, Germany, France and UK, with further pilots being prepared.

Initially the required CO2 will be supplied by third parties while Solidia supplies the required curing chambers in which the CO2 is injected into the concrete. Over the long term LafargeHolcim aims to utilize CO2 captured from cement kilns in North America and Europe.

Thanks to its efforts in the field of decarbonization – from operations to products and solutions – LafargeHolcim contributes to a built environment that will be carbon neutral, fully recyclable and with a positive environmental impact. Putting its innovation to work, more than 50% of the Group’s research resources are focused on low-carbon products and solutions, with 40% of patents currently in this area. Working across the entire construction value chain, approximately one-third of 2019 sales were in sustainable solutions and products.

About LafargeHolcim

LafargeHolcim is the global leader in building materials and solutions and active in four business segments: Cement, Aggregates, Ready-Mix Concrete and Solutions & Products. Its ambition is to lead the industry in reducing carbon emissions and shifting towards low-carbon construction. With the strongest R&D organization in the industry, the company seeks to constantly introduce and promote high-quality and sustainable building materials and solutions to its customers worldwide – whether individual homebuilders or developers of major infrastructure projects. LafargeHolcim employs over 70,000 employees in over 70 countries and has a portfolio that is equally balanced between developing and mature markets.

About Solidia Technologies

Based in Piscataway, N.J. (USA), Solidia Technologies® is a cement and concrete technology company that makes it easy and profitable to use CO2 to create superior and sustainable building and construction materials. Thanks to Solidia’s patented processes that cure concrete with carbon dioxide (CO2) instead of water, the next-generation Solidia Cement® allows the entire industrial chain to reduce the environmental footprint of concrete of up to 70% compared to traditional concrete. Solidia’s technology has recently been awarded a Solar Impulse Label promoting Solidia among the 1,000 profitable and environmentally friendly solutions.