October 27, 2017/LafargeHolcim

 Q3 Net Sales grow 4.1% year-on-year to CHF 6.9 billion on a like-for-like basis

 Q3 Operating EBITDA Adjusted up 5.9% to CHF 1.75 billion on a like-for-like basis

 Delivery of synergies ahead of target helped improve Group Operating EBITDA Margin Adjusted by 80 basis points in Q3 and 100 basis points year to date

 Net Income Group share up 8.1% year to date, down in Q3 on disposal gains in prior year

 2017 and 2018 outlook reset to reflect current business dynamics

Jan Jenisch, Group CEO of LafargeHolcim said: “In the past two months I have visited many of our operations and have been impressed by the experience and enthusiasm of our employees. LafargeHolcim is a first-class company with growing profits in an attractive industry. While the company delivered solid quarterly results, they do not reflect our full potential. As the market leader, we will hold ourselves to a higher standard than anyone else in our sector.

“Today we have reset expectations for the Group’s outlook to a level that reflects the current business dynamics. While I am reviewing the business, I have an immediate focus on simplification, cost discipline and performance management. We will reduce complexity and focus on operational excellence in order to fully realize the potential of LafargeHolcim. My goal is to generate leading margins and an attractive growth profile, positioned for sustainable value creation for our employees, customers and shareholders.”

GROUP PERFORMANCE

LafargeHolcim delivered solid like-for-like Operating EBITDA Adjusted growth in the third quarter with positive contributions from Latin America, North America and Europe. Market conditions were challenging in Asia Pacific and Middle East Africa where actions are being taken to address weakness in key countries.

Like-for-like cement volumes were up 4.7 percent in Q3 and 1.8 percent for the year to date. Globally, cement prices improved by 5.6 percent in the quarter compared to the prior year on a like-for-like basis.

Synergies of CHF 97 million were delivered in Q3, with the Group exceeding its year-end target of CHF 1 billion of total synergies already in July.

Operating EBITDA Adjusted increased by 5.9 percent in the quarter to CHF 1,750 million on a like-for-like basis and was 9.2 percent higher for the year to date.

Pricing, cost discipline and synergies contributed to higher margins with Operating EBITDA Margin Adjusted improving by 80 basis points in Q3 and 100 basis points for the first nine months.

Net Income Group share, at CHF 1,446 million, was up 8.1 percent year to date reflecting the increase in Operating EBITDA and a lower effective tax rate for the nine months 2017. Net Income Group share for the quarter declined to CHF 433 million on higher proceeds from disposals in the prior year period. Recurring Net Income grew by 7.9 percent to CHF 1,270 million for the year to date and was down to CHF 589 million for Q3.

Year to date, Recurring Earnings Per Share improved by 8.2 percent to CHF 2.10. Viewed on a quarterly basis, Recurring EPS was CHF 0.98, down on CHF 1.13 for the same period in 2016.

Net debt stood at CHF 15.5 billion at quarter end.

OUTLOOK: 2017 AND 2018

Overall cement demand globally is expected to increase by 1 to 3 percent in aggregate for 2017. Following a strong first half and solid Q3, growth in like-for-like Operating EBITDA Adjusted is expected to moderate further for the remainder of 2017.

For 2017, the Group expects to deliver:

 5 to 7 percent growth in Operating EBITDA Adjusted over 2016 on a like-for-like basis

 Growth in Recurring EPS

 Net debt / Operating EBITDA Adjusted of around 2.5x

For 2018, the Group has reset some of the volume and pricing assumptions that underpinned earnings targets to reflect current business dynamics. We expect that this will translate into a growth rate for Operating EBITDA Adjusted on a like-for-like basis of at least 5 percent.

The business review is under way, including country strategies and a focus on simplification, cost discipline and performance management. A strategic and outlook update will be provided in March 2018 when full year 2017 results are published. On this occasion, the Group will also give an update on portfolio management. So far, the disposal program has completed CHF 4.4 billion in enterprise value.

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