Post on 18-Dec-2014
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April 2014 1 - Group Communication & IR
HeidelbergCement – for better building Group Presentation 2014
April 2014 2 - Group Communication & IR
HeidelbergCement: history and development
1873 Foundation
1977 Lehigh, USA
1989 Central and Eastern Europe
1993 CBR
1995/96 China, Turkey
1999 Scancem
2001 Indocement, Indonesia 2002/03
2005/06 Kazakhstan, India, Georgia
2007 Hanson
2010 Democratic Republic Congo
Market leader in Romania, Ukraine, Germany
Founded in 1873; today, no 1 in aggregates and one of the largest cement producers in the world
April 2014 3 - Group Communication & IR
HeidelbergCement in the world
Cement Aggregates
No 1 in aggregates No 2 in ready-mixed concrete No 3 in cement
April 2014 4 - Group Communication & IR
HeidelbergCement in figures 52,560 employees Core business
– Aggregates – Cement – Downstream activities
2,500 locations in more than 40 countries – 538 production sites for sand, gravel, and crushed rock – 102 cement and grinding plants – 1,307 ready-mixed concrete plants – 101 asphalt plants
Cement capacity 128 million tonnes Aggregates reserves 19 billion tonnes
April 2014 5 - Group Communication & IR
Managing Board – responsibilities since 2009
Dr. Bernd Scheifele Chairman of the Managing Board
Dr. Lorenz Näger Chief Financial Officer
Dr. Dominik v. Achten North America
Daniel Gauthier Western and Northern Europe (excl. Germany), Africa-Mediterran. Basin, Group Services
Andreas Kern Eastern Europe-Central Asia, Germany
Dr. Albert Scheuer Asia-Pacific
Regional responsibilities:
April 2014 6 - Group Communication & IR
2013: Best result since beginning of the financial crisis
1) Adjusted for consolidation and exchange rate effects
Strong operational performance, but results affected by high negative exchange rate effects
– Revenue: €bn 13.94 (-1%; like-for-like1) +3%) – Operating income: €bn 1.6 (±0%; like-for-like1) +5%) – Net profit: €m 945 (+79%) – Earnings per share more than doubled to €3.98 (2012: €1.52)
Growth in attractive markets continues – 2013: 5 mt new capacities commissioned – 2014: around 5 mt to come on-line in Indonesia, Togo, Ghana, Burkina Faso, Tanzania, and
Kazakhstan Continuous focus on performance and margin improvement
– Price increases contributed €m 252 to margin improvement in 2013 “PERFORM” and “CLIMB Commercial” very succesful
– “FOX 2013” achieved €m 391 of cash-relevant savings in 2013 (€m 1,158 since 2011) – “LEO”: Logistics optimisation on track with a target of €m 150 cost reduction
April 2014 7 - Group Communication & IR
7888 89
2013 2011
91
2012 2010
240 254 243
2013 2011
241
2012 2010
35 39 39
2013
40
2012 2010 2011
9 10 9
2010 2012 2013
9
2011
+1% +6%
+12%
+5%
+3% -1%
+0%
±0%
+12% -4%
+3%
-10%
Ready-mixed concrete (mm3)
Cement (mt) Aggregates (mt) Asphalt (mt)
January–December Development of sales volumes
April 2014 8 - Group Communication & IR
511 534 529
0
100
200
300
400
500
600
700
800
900
1.000
2013
945
20122) 2011 2010
5,000
0
10,000
15,000
13,936
2013 2012
14,020
2011
12,902
2010
11,762
+10%
+5%
1,400
1,600
1,200
1,000
800
1,800
2010
1,430
2011
1,474 1,607
2013 0
200
400
600
1,604
20122)
+3%
-1%1) +9% ±0%1) +9%
-1%
Revenue Operating income Profit for the financial year
Key figures (€m)
+79%
1) Adjusted for consolidation and exchange rate effects: Revenue +3% and operating income +5% 2) 2012 figures have been restated due to the retrospective application of IAS 19R and IFRIC 20
April 2014 9 - Group Communication & IR
Eastern Europe- Central Asia
Bosnia-Herzegovina, Croatia, Czech Republic, Georgia, Hungary, Kazakhstan, Poland, Romania, Russia, Slovakia, Ukraine
Group areas and countries
North America Canada USA
Group Services
Asia-Pacific Bangladesh, Brunei, China,
India, Indonesia, Malaysia, Singapore
Australia
Western and Northern Europe
Belgium, Denmark, Estonia, Germany, Latvia, Lithuania, Netherlands, Norway, Sweden, UK
Africa- Mediterranean Basin Benin, Burkina Faso, DR Congo, Ghana, Liberia, Sierra Leone, Tanzania, Togo
Israel, Spain, Turkey
April 2014 10 - Group Communication & IR
HeidelbergCement’s Group areas Split up into mature and emerging markets
North America Western and Northern Europe
Asia-Pacific
Eastern Europe-Central Asia
Africa- Mediterranean Basin
8%
26%
10%
25%
31%
Revenue in 2013
44% emerging markets
56% mature markets
April 2014 11 - Group Communication & IR
High aggregates reserves of 19 bnt Focus on mature markets
North America 2012 2013
Aggregates sales (mt) 104.5 104.1
Total aggregates reserves: 13.2 bnt
Western and Northern Europe
2012 2013
Aggregates sales (mt) 72.2 70.0
Total aggregates reserves: 3.4 bnt
Eastern Europe- Central Asia
2012 2013
Aggregates sales (mt) 19.2 19.6
Total aggregates reserves: 0.9 bnt
Africa- Mediterranean Basin
2012 2013
Aggregates sales (mt) 13.7 12.5
Total aggregates reserves: 0.3 bnt Asia-Pacific 2012 2013
Aggregates sales (mt) 37.0 38.8
Total aggregates reserves: 1.3 bnt 2%
17% 7% 5%
69%
14% emerging markets
86% mature markets
Aggregates reserves
Total AGG reserves: ~ 19 bnt - Thereof mature markets: ~ 16 bnt Years of production: ~ 60 y
High intrinsic value potential
April 2014 12 - Group Communication & IR
Cement capacity of 128 mt: focus on emerging markets GDP prognosis 2012–2017 in %*
+2.9%
+1.6% +3.4%
+5.5%
+7.8%
Africa- Mediterranean Basin
2012 2013
Cement sales (mt) 9.2 9.6
Total cement capacity: 12.1 mt p.a.
Western and Northern Europe
2012 2013
Cement sales (mt) 21.3 20.9
Total cement capacity: 33.1 mt p.a.
Eastern Europe-Central Asia
2012 2012
Cement sales (mt) 17.2 16.7
Total cement capacity: 31.1 mt p.a.
Asia-Pacific 2012 2013
Cement sales (mt) 30.0 31.9
Total cement capacity: 38.6 mt p.a.
North America 2012 2013
Cement sales (mt) 11.7 12.5
Total cement capacity: 13.5 mt p.a.
9%
30%
24%
11%
26%
* Source: International Monetary Fund
63% emerging markets
37% mature markets
Cement capacity
April 2014 13 - Group Communication & IR
Production sites in 10 countries – mature markets
UK second largest market area in the Group
Market leader in cement in most countries of the Group area
Tight network of production sites for aggregates and ready-mixed concrete
Production of concrete parts and paving blocks in some countries; market leader in bricks in the UK
Western and Northern Europe
Cement/grinding 29 GGBS 3 Cement terminals 58 Aggregates 169 Asphalt 38 Ready-mixed concrete 570 Concrete products 34 Bricks 22
April 2014 14 - Group Communication & IR
Eastern Europe-Central Asia Production sites in 11 countries – growth markets Market leader in cement in most countries of the Group area
– Expansion of cement capacities in Kazakhstan Expansion of aggregates and ready-mixed
concrete activities
Cement/grinding 22 Cement terminals 28 Aggregates 67 Ready-mixed concrete 206 Concrete products 3
April 2014 15 - Group Communication & IR
Cement/grinding 16 GGBS 1 Cement terminals 35 Aggregates 208 Asphalt 39 Ready-mixed concrete 146 Concrete products 71 Bricks and roof tiles 21
Leading positions in aggregates, cement, ready-mixed concrete, asphalt, and building products, e.g. pipes, precast concrete parts, roof tiles, and bricks
Production sites mainly in the eastern part of the USA, in the southwest and on the west coast of the USA, as well as in the western provinces of Canada
Integrated market approach for cement, aggregates, asphalt, and ready-mixed concrete in four regions: North, South, West, and Canada
Building products are divided into product areas
North America
April 2014 16 - Group Communication & IR
Asia – Activities in 7 countries: Bangladesh, Brunei, China, India,
Indonesia, Malaysia, Singapore – Expansion of cement capacities in Indonesia – Strong market position in aggregates and ready-mixed concrete
in Malaysia; expansion in Indonesia Australia
– Mainly production of aggregates and ready-mixed concrete – Production sites on the east coast, Tasmania, and in the
south west – 50:50 joint venture in three cement plants
Cement/grinding 17 Cement terminals 12 Aggregates 79 Asphalt 22 Ready-mixed concrete 309 Concrete products 2
Asia-Pacific
April 2014 17 - Group Communication & IR
Cement/grinding 14 Cement terminals 8 Aggregates 15 Asphalt 2 Ready-mixed concrete 76
Africa-Mediterranean Basin Africa
– Production sites in 8 countries: Benin, Burkina Faso, DR Congo, Ghana, Liberia, Sierra Leone, Tanzania, and Togo
– Mainly cement production and little production of aggregates; market leader in most countries
– Expansion of cement capacities (e.g. in Togo, Ghana, Tanzania, and Burkina Faso)
Mediterranean Basin – Production sites in Turkey, Israel, Spain – Turkey: leading position in cement and ready-mixed concrete;
production of aggregates – Israel and Spain: ready-mixed concrete and aggregates
April 2014 18 - Group Communication & IR
Revenue: €m 941
Group Services HC Trading
– One of the largest cement and clinker trading companies in the world – Deliveries via sea routes to own locations and other cement companies
– 13.6 mt cement, clinker, and other building products in 2013 – 4.9 mt coal and petroleum coke in 2013
– Worldwide trading network with offices in five countries
April 2014 19 - Group Communication & IR
Vancouver
San Francisco Los Angeles Dallas
Atlanta New York
Toronto
Chicago London Frankfurt
St. Petersburg Moscow
Istanbul Delhi
Mumbai Bangalore
Guangzhou Hong Kong
Singapore
Kuala Lumpur
Jakarta
Perth
Edmonton
Seattle
San Diego Houston
HeidelbergCement well positioned in attractive micro markets Cement Aggregates Metropolis
• Strong market position in urban centers (Frankfurt, Munich, London, San Francisco, Los Angeles, Jakarta, Kuala Lumpur, Hong Kong, Sydney…)
• Nearby important raw material markets (Western Canada, Texas, Norway, Ghana, Tanzania, Australia)
Brisbane Sydney
Melbourne
April 2014 20 - Group Communication & IR
Kazakhstan (2014): Shetpe 0.8 mt cement
India (2013): Damoh 2.9 mt cement
Indonesia (2015/17): 2−2.5 mt cement
Brownfield Greenfield
Burkina Faso (2014): 0.65 mt cement
Ghana: 1.0 mt cement (2012) 0.8 mt cement (2014)
Indonesia – outside Java (2015/17): 2−2.5 mt cement
Indonesia (2015): Citeureup expansion 4.4 mt cement
Togo (2014): 1.5 mt clinker
Indonesia (2013): 1.9 mt cement
Togo (2016): 0.25 mt cement
Tanzania: 0.25 mt clinker (2012) 0.7 mt cement (2014)
Liberia (2013): 0.5 mt cement
Expansion – around 5 mt to come on-line in 2014
Further growth in attractive emerging markets at efficient investment costs
April 2014 21 - Group Communication & IR
HeidelbergCement strategy Dual external growth strategy
– Cement in emerging markets – Aggregates and downstream activities such as ready-mixed concrete and
concrete products in mature markets and North America Focus on continuing increase in efficiency
in all areas and cost leadership Performance and result-oriented corporate culture Proximity to operating business Openness and fairness as soft factors of success
April 2014 22 - 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
April 2014 23 - Group Communication & IR
5.5%
21.0%
1990 2013
783 612
1990 2013
-22%
Biodiversity and natural resources
Alternative fuel rate (in % of fuel mix)
Cement with low clinker content Recyclable products Innovative products:
e.g.TioCem®
Occupational health and safety
Using waste as a resource
Protection of climate and environment
Sustainable construction
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 of cement)
Long-term commitment for sustainability
Sustainability at HC
April 2014 24 - Group Communication & IR
Continued strong recovery in the USA and the UK Growing demand in Asia and Africa Strong development in Germany, Poland, and Russia; stabilisation of other
European markets, especially in Benelux, the Czech Republic, and Hungary Further price increases supported by “PERFORM” and “CLIMB commercial”
programmes Target: keep energy costs flat; slight to moderate increase in the costs for raw
materials and staff
Outlook 2014
Sales volume growth in all Group areas Increase in revenue, operating income, and profit for
the financial year1) Further decrease in financing costs Reduction of net debt
1) Adjusted for consolidation, exchange rate, and one-off effects
April 2014 25 - Group Communication & IR
Conclusion
HeidelbergCement is a company with
– excellent market position and attractive product portfolio
– strong corporate culture with strict focus on costs
HeidelbergCement focuses on increasing liquidity and deleveraging with the clear goal to return to investment grade
Disciplined investment policy: focus on emerging markets
HeidelbergCement is well positioned to benefit over-proportionally from economic recovery
April 2014 26 - Group Communication & IR
for better building