July 27, 2018/LafargeHolcim

• Strong revenue growth of 6.2% in Q2 and 4.8% in first half on a like-forlike basis • Recurring EBITDA up 1.5% for Q2, -1.4% for first half on a like-for-like basis • Full year 2018 targets confirmed • On track to deliver Strategy 2022 – “Building for Growth”
PERFORMANCE OVERVIEW1

CHFm 2018 2017 ±% ±% LfL

Operational performance

Net Sales H1 13,272 12,918 2.7 4.8

Net Sales Q2 7,442 7,085 5.0 6.2

Recurring EBITDA H1 2,484 2,582 -3.8 -1.4

Recurring EBITDA Q2 1,784 1,774 0.6 1.5

Half year performance

Operating profit 1,078 1,413 -23.7

Net Income Group Share bef. Impairment & Divestments 371 651 -43.0

Free Cash Flow -473 -661 28.4

Net financial debt 16,127 15,745 2.4

Jan Jenisch, Chief Executive Officer of LafargeHolcim said: “I am very satisfied with the sales growth we achieved in the first half of the year, especially as we gained momentum in the second quarter. Increasing energy prices and cost inflation have been challenging. Operational issues in some markets have been addressed and we expect to deliver increasing margins as we capture the upward trend in demand through the second half of 2018.

“We remain focused on delivering Strategy 2022 – ‘Building for Growth.’ Recent bolt-on acquisitions in the US and France demonstrate our focus on capturing the growth opportunities in our most attractive markets. The beneficial effects of simplification and cost reduction are also becoming more visible. We continue to focus on delivering our 2018 targets.”

Revenue grew 6.2% in the second quarter, with total Net Sales of CHF 7,442 million. For the first six months Net Sales grew 4.8% on a like-for-like basis. Over the first six-month Recurring EBITDA was down -1.4% on a like-for-like basis but earnings increased in the second quarter, with Recurring EBITDA up by 1.5%, largely offsetting a soft first quarter. These strong overall trends are reflected in earnings and revenue growth for the six months in all regions apart from Middle East Africa, where conditions remained difficult. Given these trends, as well as the solid execution of simplification and performance measures, the full-year targets for 2018 have been confirmed.

The Net Income attributable to shareholders for the first half of 2018 before Impairment and Divestments decreased from CHF 651 million in 2017 to CHF 371 million in the current year. As is the case with the operating profit, both figures are predominantly impacted by restructuring costs in connection with the simplification plan that is being implemented and that will lead to yearly CHF 400 million cost savings from Q2 2019 onwards.

STRATEGY 2022

The execution of Strategy 2022 – “Building for Growth” is well on track across all regions and segments. Bolt-on acquisitions in France, the UK and the US in 2018 illustrate one important lever for growth going forward.

There has been good progress on all initiatives to deliver a cost-disciplined operating model and corporate-light structure: the regional and top management organizations have been successfully streamlined, Miami and Singapore regional offices have been closed, the Zurich and Paris corporate office reorganization is progressing and countries have initiated extensive fixed-cost restructuring. As previously announced, all actions are expected to be completed by Q1 2019, delivering cost savings of CHF 400 million per year, measured at 2017 currency exchange rates.

The commitment to maintaining an investment-grade rating is confirmed as well as building financial strength and shareholder value.

OUTLOOK 2018

The Group confirms its targets for 2018 for Net Sales growth of 3 to 5 percent and an overproportional increase in Recurring EBITDA of at least 5 percent on a like-for-like basis.

• Strong market trends in Europe

• Continued solid growth in North America

• Good growth prospects in most countries in Latin America • India and China to remain supportive; Southeast Asia to stabilize

• Challenging outlook in a number of countries in Middle East Africa

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Click here to download full PDF copy of Half Year 2018 Report