HeidelbergCement - Group Presentation
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Transcript of HeidelbergCement - Group Presentation
March 20171 - Group Communication & IR
HeidelbergCementGroup presentation
Matera cement plant. Italy
March 20172 - Group Communication & IR
HeidelbergCement: history and development
Founded in 1873,today, leading market positions in aggregates, cement, and ready-mixed concrete
g
1873
1977
1989
1993
1995/96
ss
1999
2001
2005/06
Lehigh, USA
Foundation
Central and Eastern Europe
CBR
China, Turkey
Indocement, Indonesia
Kazakhstan, India, Georgia
2007
2010 Democratic Republic Congo
2015
2016 Italcementi
Sale of building products North America & UK
Hanson
Scancem
March 20173 - Group Communication & IR
HeidelbergCement in the world – in around 60 countriesNumber 1 in aggregates, number 2 in cement,and number 3 in ready-mixed concrete
March 20174 - Group Communication & IR
HeidelbergCement in figures 60,000 employees Core business
– Aggregates– Cement– Downstream activities: ready-mixed concrete and asphalt
3,030 locations in around 60 countries (incl. joint ventures)– 595 production sites for sand, gravel, and crushed rock– 160 cement and grinding plants– 1,723 ready-mixed concrete plants– 115 asphalt plants
Cement capacity 194 million tonnes (incl. joint ventures) Aggregates reserves and resources 20 billion tonnes
March 20175 - Group Communication & IR
Managing Board
Dr. Albert ScheuerNorthern and Eastern Europe-Central Asia
Hakan GurdalAfrica-Eastern
Mediterranean Basin
Jon MorrishNorth America
Kevin GluskieAsia-Pacific
Dr. Bernd ScheifeleChairman of theManaging Board
Dr. Lorenz NägerChief Financial Officer
Dr. Dominik v. AchtenDeputy Chairman and Western and Southern Europe
March 20176 - Group Communication & IR
2016 – accelerated growth and improved creditworthiness Result significantly increased and premium on cost of capital earned
– Revenue up 13% to €15.2 billion– Earnings per share, ajusted1) for non-recurring effects, rose by 23% to €5.34– Premium on cost of capital earned: HeidelbergCement continued its profitable
growth after the acquisition of Italcementi– Investment grade classification by the rating agencies S&P Global Ratings,
Moody‘s Investors Service, and Fitch Ratings Integration of Italcementi: realisation of synergies ahead of plan Outlook for 2017
– Rise in sales volumes in all business lines on a pro forma basis2)
– Moderate increase in revenue and result from current operations on a comparable pro forma basis3)
– Significant rise in profit for the financial year excluding non-recurring effects
1) Excluding no-recurring expenses resulting from the Italcementi acquisition2) Including Italcementi for the whole year of 20163) Including Italcementi for the whole year of 2016 and adjusted for currency and consolidation effects
March 20177 - Group Communication & IR
81
104
2015
+28%
2016
+9%
2016
272
2015
249
37 43
+16%
20162015
9 9
+3%
20162015
Sales volumes (Italcementi included since 1 July 2016)
January–December
Ready-mixed concrete (mm3)
Cement (mt) Aggregates (mt) Asphalt (mt)
March 20178 - Group Communication & IR
+3%
2016
125
2015
122
+3%
2016
287
2015
278
4847
+1%
20162015
9 9
+3%
20162015
Pro forma sales volumes1) January–December
Ready-mixed concrete (mm3)
Cement (mt) Aggregates (mt) Asphalt (mt)
1) Including Italcementi in 2015 and the whole year of 2016
March 20179 - Group Communication & IR
500
400
300
200
100
0
1.000
900
800
700
600
-9%
2016
896
2015
983
14,000
12,000
10,000
8,000
6,000
4,000
2,000
16,000
0
+13%*
2016
15,166
2015
13,465
2,000
1,500
1,000
500
0
+7%*
2016
1,984
2015
1,846
11
Revenue Result from current operations1)
Profit for the financial year
Key figures (Italcementi included since 1 July 2016)(€m)
* Adjusted for consolidation and exchange rate effects: revenue -2% and result from current operations +3%
1) The result from current operations (RCO) corresponds to operating income (OI) reported in previous years. The name was changed due to the application of an ESMA directive (European Securities and Markets Authority).
March 201710 - Group Communication & IR
8,000
6,000
16,000
14,000
10,000
12,000
2,000
4,000
0
18,000-1%*
17,331
2015
17,084
20160
2,500
500
1,000
2,000
1,500
2015
2,0732,037
2016
+2%*
11
Revenue Result from currentoperations2)
Pro forma key figures1) (€m)
1) Including Italcementi in 2015 and the whole year of 2016
* Adjusted for consolidation and exchange rate effects: revenue -1% and result from current operations +6%
2) The result from current operations (RCO) corresponds to operating income (OI) reported in previous years. The name was changed due to the application of an ESMA directive (European Securities and Markets Authority).
March 201711 - Group Communication & IR
Split of the Group areas
North America
(Jon Morrish)
Western and Southern Europe(Dr. Dominik von Achten)
Northern and Eastern Europe-Central Asia(Dr. Albert Scheuer)
Africa-EasternMediterranean Basin(Hakan Gurdal)
Asia-Pacific
(Kevin Gluskie)
March 201712 - Group Communication & IR
Group areas and countries
Western and Southern Europe
Belgium, France, Germany, Italy, Netherlands, Spain, United Kingdom
Northern and Eastern Europe-Central Asia
Denmark, Estonia, Iceland, Latvia, Lithuania, Norway, Sweden; Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Czechia, Georgia, Greece, Hungary, Kazakhstan, Poland, Romania, Russia, Slovakia, Ukraine
Africa-Eastern Mediterranean Basin
Benin, Burkina Faso, DR Congo, Egypt, Gambia, Ghana, Liberia, Mauritania, Morocco, Mozambique, Sierra Leone, Tanzania, Togo; Israel, Turkey
Asia-Pacific
Bangladesh, Brunei, China (incl. Hong Kong), India, Indonesia, Malaysia, Singapore, Sri Lanka, Thailand; Australia
North America
Canada, USA (incl. Puerto Rico)
Group Services
March 201713 - Group Communication & IR
High aggregates reserves and resources of 20 bnt: focus on mature markets
North America bnt
Aggregates reserves 4.3
Aggregates resources 7.9
Total 12.2
Western and Southern Europe
bnt
Aggregates reserves 1.6
Aggregates resources 2.0
Total 3.6
Northern and Eastern Europe-Central Asia
bnt
Aggregates reserves 0.8
Aggregates resources 0.6
Total 1.4
Africa-EasternMediterranean Basin
bnt
Aggregates reserves 0.04
Aggregates resources 0.06
Total 0.1
Asia-Pacific bnt
Aggregates reserves 1.4
Aggregates resources 1.4
Total 2.8
March 201714 - Group Communication & IR
Cement capacity of 194 mt (incl. joint ventures)
North America mt
Cement capacity 17.4
Western and Southern Europe
mt
Cement capacity 47.1Northern and Eastern Europe-Central Asia
mt
Cement capacity 41.4
Africa-EasternMediterranean Basin
mt
Cement capacity 30.8
Asia-Pacific mt
Cement capacity 56.8
March 201715 - Group Communication & IR
Production sites in 7 countries – mature markets In most countries we are the market leader in
cement Dense network of production sites for
aggregates and ready-mixed concrete The United Kingdom, France, and Germany are
the largest market regions in the Group area
Western and Southern Europe
Production sites Total
Cement/grinding/GGBS 52
Cement terminals 18
Aggregates 201
Aggregates terminals 92
Ready-mixed concrete 773
Asphalt 42
Concrete products 23
March 201716 - Group Communication & IR
Production sites in 21 countries – mature and emerging markets
We are either the market leader or hold leading market positions in cement in most countries
Dense network of ready-mixed concreteplants in Northern and Eastern Europe; expansion of aggregates extraction
Northern and Eastern Europe-Central Asia
Production sites Total
Cement/grinding 32
Cement terminals 79
Aggregates 98
Aggregates terminals 19
Ready-mixed concrete 320
Concrete products 20
March 201717 - Group Communication & IR
North America Leading positions in aggregates, cement,
ready-mixed concrete, and asphalt Production sites mainly in the eastern part of the
USA, Texas, the Gulf Coast, the Pacific Coast as well as western and eastern Canada
Integrated market approach for cement, aggregates, asphalt, and ready-mixed concretein four regions: North, South, West, and Canada
Production sites Total
Cement/grinding/GGBS 24
Cement terminals 69
Aggregates 189
Aggregates terminals 17
Ready-mixed concrete 174
Asphalt 51
Concrete products 3
March 201718 - Group Communication & IR
Asia-Pacific Asia
– Activities in 9 countries: Bangladesh, Brunei, China, India, Indonesia, Malaysia, Singapore, Thailand, andSri Lanka
– Strong market position in ready-mixed concrete and aggregates in Malaysia, Indonesia, Hong Kong, and Thailand
Australia– Mainly production of aggregates and ready-mixed
concrete– Production sites on the east coast, Tasmania, and
in the southwest– Joint venture in four cement plants
Production sites Total
Cement/grinding 25
Cement terminals 17
Aggregates 99
Ready-mixed concrete 336
Asphalt 20
Concrete products 2
March 201719 - Group Communication & IR
Africa-Eastern Mediterranean Basin Africa
– Production sites in 13 countries: Benin, Burkina Faso, DR Congo, Egypt, Gambia, Ghana,
Liberia, Mauritania, Morocco, Mozambique, Sierra Leone, Tanzania und Togo
– In Egypt and Morocco we are among the market leaders in the cement business; strong positions in ready-mixed concrete
– Mainly cement production in sub-Saharan countries; market leader in most countries
Eastern Mediterranean Basin– Turkey: leading position in cement and ready-mixed
concrete; production of aggregates– Israel: ready-mixed concrete, aggregates, and asphalt– Palestine: installation of a local building materials business
Production sites Total
Cement/grinding 27
Cement terminals 10
Aggregates 8
Aggregates terminals 4
Ready-mixed concrete 120
Asphalt 2
March 201720 - Group Communication & IR
Group Services International trading activities of HeidelbergCement
– HC Trading is one of the largest cement and clinker trading companies in the world
– Deliveries via sea routes to own locations and other cement companies 16.5 mt of cement, clinker, and other building products in 2016 7.4 mt of coal and petroleum coke in 2016 One third of all deliveries within the Group and two thirds go to other
companies
March 201721 - Group Communication & IR
HeidelbergCement strategy Strategic priorities 2015-2019
‒ Attractive rate of return for shareholders‒ Continuous growth in mature and emerging countries
Vertical integration in urban centers Maintenance of cost leadership
‒ Continuous improvement in the cement and aggregates business lines Performance and result-oriented corporate culture Proximity to operating business Increasing customer satisfaction due to proximity to the markets and
the customers Openness and fairness as soft factors of success
March 201722 - Group Communication & IR
Building on sustainability Economy
– Long-term prospects to everyone connected with our economic activities
Ecology– Climate protection, saving natural resources,
minimising environmental impacts Social responsibility towards our employees and
communities– Opportunities for personal and professional
development– Open dialogue with local communities– Involvement in numerous local social
activities
March 201723 - Group Communication & IR
21.0%
5.5%
1990 2016
600783
1990 2016
-22.6%
Biodiversity andnatural resources
Alternative fuel rate(in % of fuel mix)
Cement with lowerclinker content
Recyclable products Innovative products:
e.g. TioCem®
Occupational health and safety
Sustainability at HC
Using waste as a resource
Protection of climate and environment
Sustainableconstruction
Zero accidents mentality Policies introduced Compliance
Conservation of resources Restoration of quarries Promotion of biodiversity Dialogue with stakeholders
Reduction of specific CO2 emissions (kg CO2/t cement)
Long-term commitment for sustainability
Sustainability at HC
March 201724 - Group Communication & IR
Research and innovation at HeidelbergCement
R&D and product innovation in the cement, aggregates, and ready-mixed concrete business lines are concentrated in two research centers
– Leimen: focus on reduction of CO2 emissions, resource efficiency, decrease in production costs, and value added concrete solutions
– Bergamo: focus on product innovations, development of high-endconcrete applications, and new market opportunities
All projects are defined and implemented by the teams at both centersin close coordination with the operating companies
– The close collaboration from the start of the project facilitates the efficient implementation of the development results and a quick market launch
March 201725 - Group Communication & IR
Conclusion
HeidelbergCement is a company with– excellent market positions and attractive product portfolio– strong corporate culture with strict focus on costs
HeidelbergCement focuses on‒ attractive rate of return for shareholders ‒ continuous growth in mature and emerging countries
Success factors of HeidelbergCement’sbusiness strategy:
Cost Leadership, Customer Satisfaction,
and Operational Excellence
March 201726 - Group Communication & IR
for better building