In May 2019 LafargeHolcim signed an agreement with San Miguel Corporation for the sale of its entire 85.7 percent shareholding in Holcim Philippines Inc. subject to customary and regulatory approvals, including those required by the Philippines Competition Authority (PCC).

The PCC did not issue an approval of the transaction within the required time period and consequently the agreement lapsed.

With today’s unprecedented COVID-19 crisis, Holcim Philippines’ number one priority is to protect the health of its people while supporting its partners and communities, in full alignment with local authorities. The Group is very proud of its people’s swift response to this new reality, for example their extraordinary participation in providing food, water and other essential products for their communities as well as medical protective equipment for government frontline staff.

With construction playing an essential role to keep society running, Holcim Philippines has resumed operations in three out of its four integrated cement plants and is well-positioned for a quick and efficient recovery. Working closely with its customers, the Group looks forward to supporting the country’s strong and sustainable growth coming out of the crisis.

As the number one building materials company in the country, Holcim Philippines operates a unique network of production and distribution assets from Luzon to Mindanao, close to the urban centers where building materials are most needed. LafargeHolcim will continue to focus on strengthening its leadership in the Philippines, one of the most high-growth countries in the Asia-Pacific region, building on its brand, its valued customer base and loyal employees.

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.

Two new members will be proposed for election to the Board of Directors of LafargeHolcim at its Annual General Meeting of shareholders, which is scheduled to take place on May 12, 2020.

The Board of Directors of LafargeHolcim will request its shareholders to approve at the Annual General Meeting the appointment of Professor Dr. Philippe Block and Mr. Kim Fausing as new members, adding perspectives from academia and building industry to an already expert, diverse Board.

Professor Dr. Philippe Block, Belgian national, born in 1980, is Professor of Architecture and Structure at the Swiss Federal Institute of Technology (ETH) Zurich, Switzerland. He is the Founder and Co-Director of the Block Research Group at ETH where his research focuses on the analysis of unreinforced masonry structures, structural design, computational form finding, and new construction techniques. He is also the Director of the Swiss National Centre of Competence in Research (NCCR) for Digital Fabrication. Since 2014 he has served on the Academic Committee of the LafargeHolcim Foundation for Sustainable Construction.

Mr. Kim Fausing, Danish national born in 1964, began his professional career with the Hilti Group in Denmark 1990. He went on to run its operations then took over country operations in Austria and Japan before becoming Division President at its headquarters in Liechtenstein. In 2007 Mr. Kim Fausing moved to the Danish Danfoss Group to assume the role of Chief Operating Officer. In January 2008 he became a member of its executive committee, which he has chaired since July 2017 as President and CEO.

Except for Paul Desmarais, Jr., all other existing members of the Board would stand for re-election, with Mr. Beat Hess remaining as Chairman.

Beat Hess, Chairman of the Board of Directors: “On behalf of the entire Board of Directors I would like to thank Paul Desmarais, Jr., for his generous contributions over the past years. He will be missed. At the same time I am glad we can propose these two outstanding candidates. I’m confident they would strengthen our Board’s expertise by adding vast experience with multinational corporations as well as the perspective of a renowned academic who has focused on creating sustainable solutions.”

In addition to the votes on election and re-election of the Board of Directors, shareholders will also be asked to vote on compensation and to consider a dividend proposal of CHF 2.00 per registered share of LafargeHolcim Ltd, to be paid from foreign capital contribution reserves and not subject to Swiss withholding tax.

Invitations including the complete agenda and motions will be sent to shareholders today. All materials that are part of the invitation to the Annual General Meeting can also be accessed at www.lafargeholcim.com/agm.

Due to the exceptional circumstances of the COVID-19 (coronavirus) pandemic, the personal attendance of shareholders on site will not be possible. The Board of Directors has resolved that shareholders shall be represented at the Annual General Meeting exclusively by the independent proxy.

The results of the Annual General Meeting will be available following the meeting at www.lafargeholcim.com/agm.

The Integrated Annual Report 2019 and the analyst presentation of the results are available on www.lafargeholcim.com/full-year-results-2019

The financial statements are based on IFRS can be found on www.lafargeholcim.com/investor-presentations

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.

LafargeHolcim announces it will work with IBM Services to further develop the first digital platform for road design optimization, ORIS. The solution can reduce road project costs by up to one-third and carbon emissions by up to half while tripling road durability and usage lifespans.

ORIS allows decision-makers, road infrastructure authorities and project investors to improve road construction and sustainability and reduce inefficiencies through smart project design. This is especially timely as governments design stimulus packages to revive economic activity post COVID-19 while also responding to the impact of climate change.

An average of 700,000 kilometres (435,000 miles) of new roads are being built globally every year. Improving road quality and resilience will help reduce the massive amount of carbon emissions attributed to transportation. Because roads vary depending on location, climate, vehicle types and traffic volumes, it is a complex challenge to define the most sustainable and cost-effective mix of building materials and technologies early in the design phase. ORIS assesses road pavement designs from different perspectives and recommends efficient construction and maintenance patterns with local materials availability and capabilities. ORIS is supporting public policies that conserve natural resources, enabling a more local and circular economy in road construction.

“We are accelerating the digitalization of our solutions for sustainable and high-performance construction,” said Marcel Cobuz, Region Head of Europe, Member of the Executive Committee with responsibility for innovation at LafargeHolcim on a global level. “With global solutions like ORIS, we are committed to leading the way in low-carbon and circular construction as well as responsible natural resource consumption for roads and beyond. We have already entered into pilots with different partners such as road authorities, international financing institutions and engineering firms to use ORIS in both developed and emerging markets.”

LafargeHolcim will leverage IBM’s portfolio of digital platforms, hybrid clouds, digital design services, as well as IBM’s expertise in machine learning, artificial intelligence, industrial Internet-of-Things and data analytics to enhance even further its materials knowledge in cement and ready-mix concrete products, as well as its solutions and products, including precast concrete, asphalt, mortar and building solutions.

“Data-driven solutions and digital technologies have the potential to transform road construction towards more sustainable, circular, low-carbon, low-resource and cost-efficient techniques. ORIS is instrumental in recommending appropriate and tailored approaches to road-building, thus minimizing costs, environmental impacts and project delays,” says Hervé Rolland, Vice President, Industrial solutions, IBM Europe. “IBM Services help businesses establish the right industry-relevant platforms that support rapid digitization, standardization and simplification, as well as vertically integrating both industrial and business operations.”

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.

More information on ORIS is available on www.lafargeholcim.com/oris

About IBM

IBM iX is the global business design arm of IBM Services, and works at the intersection of strategy, creativity and technology to help clients digitally reinvent their businesses. IBM has been involved in the Industrial Sector for decades, and has re-invented Industrial offerings to add services, software, data handling, cloud, AI and blockchain capabilities. IBM’s focus is to support the industrial industry in managing data as a strategic asset; helping the industry to capture, monetize and secure it, all on the road to embracing Industry 4.0 and support the move towards the digital construction of the future. IBM is a full-service industrial partner focused on user experiences using technology for transforming various functions across the construction ecosystem. IBM’s portfolio features a set of offerings targeting enterprise & operations transformation, technologies, outsourcing, SAP implementations and helping clients use their data to their specific strategic advantage.

• Early priorities on health measures for employees, partners and communities

• Resilient performance with net sales decrease 10.8% LFL, Recurring EBIT decrease 22.0% LFL

• Rapid execution of action plan “HEALTH, COST & CASH” delivering visible results

• Over-proportional cost decline vs volumes development in May and June

• Excellent free cash flow¹ generation of CHF 749m (+198%), strong balance sheet and liquidity

• Further strengthening leadership in green construction

• Fast demand recovery with an encouraging outlook for second half of 2020

PERFORMANCE OVERVIEW

Jan Jenisch, CEO: “I’m very proud of our teams’ rapid and agile response to the crisis since the beginning of January. We were quick to respond and take all necessary measures to protect the health of our people while supporting our communities, from donating materials to build emergency field hospitals all the way to supplying essential goods, touching the lives of over four million people around the world.

“Our half-year results demonstrate the great resilience of our business. I’m encouraged by our team’s agility to weather the storm with the rapid execution of our “HEALTH, COST & CASH” action plan, effectively driving cost savings ahead of expectations, improving net working capital and delivering record free cash flow1.

“The peak of the crisis is behind us. We expect a solid second half of the year based on June’s full recovery, the trend of our order book and upcoming government stimulus packages.

“As an essential sector to keep society running, we look forward to playing our part in driving the recovery. We are accelerating our sustainability efforts to ensure our green solutions are fully part of the recovery. I am confident LafargeHolcim will emerge stronger from this crisis.”
RESILIENT PERFORMANCE AND RECORD FREE CASH FLOW¹

Net sales of CHF 10,693 million decreased by 18.1% compared to the prior year, of which 10.8% was on a like-for-like basis, reflecting the severe impact of the implementation of strict lockdowns of construction sites in several major operating countries. The strong appreciation of the CHF against all currencies accounted for 6.2% of the absolute decrease. Following the easing of the lockdowns, net sales in all five regions resumed prior-year levels by the end of June.

Recurring EBIT reached CHF 1,194 million, a decrease of 22.0% like-for-like for the half year. Swift implementation of the “HEALTH, COST & CASH” action plan helped to offset the earnings impact of the crisis.

Tax and financial expenses have continued to reduce, allowing net income2, to reach CHF 501 million.

Earnings per share³ were CHF 0.80 for the first half of 2020 compared to CHF 1.28 in the prior-year period.

Free cash flow¹ reached a record CHF 749 million in the six-month period, up 198% compared to CHF 252 million in the first half of 2019.

Net debt amounted to CHF 10.7 billion as at 30 June 2020, down by 15.8% compared to CHF 12.7 billion as at 30 June 2019.
BUILDING A HEALTHIER WORLD TOGETHER
Since the beginning of the crisis, LafargeHolcim teams around the world have undertaken extraordinary measures to fight COVID-19 across their communities, touching the lives of more than four million people. Advancing access to health infrastructure for all, LafargeHolcim donated five million kilograms of material to build emergency field hospitals from Wuhan to Boston. Furthermore, the Group donated over two million relief and emergency kits, including personal protective equipment, food and water.

In the first half of 2020 LafargeHolcim achieved a number-one Environmental, Social and Governance (ESG) ranking in the construction materials sector out of more than one-hundred peer companies, according to ESG research and ratings agency Sustainalytics. Playing its part in a green recovery, LafargeHolcim is advancing its leadership in sustainable and circular construction, notably with the worldwide rollout of ECOPact, its green concrete. Further accelerating the transition to renewable energy, LafargeHolcim leveraged 3D printing in an innovative partnership with GE Renewable Energy and COBOD to build more powerful wind turbines.
OUTLOOK 2020
Based on the speed of June’s rebound, the company expects a solid second half of the year and anticipates for full year 2020³:

• Fast demand recovery with an encouraging outlook for the second half of 2020
• Execution of action plan “HEALTH, COST & CASH” to continue ahead of targets
• Free cash flow1 generation above CHF 2 billion
• Debt leverage below 2x
• Solid second half of the year expected

KEY GROUP FIGURES

REGIONAL PERFORMANCE H1

Asia Pacific

The Asia Pacific region experienced the most severe COVID-19 related disruption yet delivered a resilient Recurring EBIT margin, led by India and supported by effective cost and price management as well as lower input costs. China delivered a full recovery over the second quarter with volumes closing at higher levels than in the prior-year period and activity was also resilient in Australia.

Europe

Results for the Europe region were impacted by COVID-19 with full recovery in June. Markets in Germany, Central and Eastern Europe were resilient. Strict lockdown measures in the UK and France impacted the performance of the region. Volumes suggest a V-shaped recovery in June for the majority of markets, except in the UK.

Latin America

The Latin America region showed an expanding Recurring EBIT margin amid COVID-19, with an especially strong contribution from Mexico. Performances in Ecuador, Colombia and El Salvador were significantly impacted by the pandemic. Most markets experienced a strong recovery in June.

Middle East Africa

The Middle East Africa region showed resilient margins and recovery from the impact of COVID-19 by June. Volumes declined in Algeria, Egypt, Iraq and South Africa due to government restrictions and curfews. Ramadan in May slowed down the recovery in the respective countries. Nigeria delivered a resilient performance.

North America

The North America region delivered a remarkable performance with a Recurring EBIT up 20 percent for the first half of 2020 over the prior-year period on a like-for-like basis. This leading performance amid COVID-19 was largely due to fast and effective cost management in the US, partly offset by the impact of lockdowns in Eastern Canada and the economic challenges facing Western Canada due to a slowdown in the oil & gas industry.

RECONCILIATION TO GROUP ACCOUNTS

Reconciling measures of profit and loss to the LafargeHolcim Group’s consolidated statement of income

Reconciliation of the Free Cash Flow after leases to the consolidated cash flows of the LafargeHolcim Group

Reconciliation of Net financial debt to the consolidated statement of financial position of the LafargeHolcim Group

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 links on the right of the page.

Additional information

The analyst presentation of the results and our 2020 half-year report are available in the links to the right of the page.

The financial statements are based on IFRS can be found here.

Media conference: 09:00 CET                                            Analyst conference: 10:00 CET
Switzerland: +41 58 310 5000
France: +33 1 7091 8706
UK: +44 207 107 0613
US: +1 631 570 5613

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.