The Pro Forma Financial Information for the year ended December 31, 2015 reflects the merger of Holcim and Lafarge as if the Merger had occurred on January 1, 2015.
It reflects a hypothetical situation and is presented exclusively for illustrative purposes, as such it does not provide an indication of the results of operating activities that would have been obtained for the period ended on December 31, 2015.
LafargeHolcim performance by country
In Egypt, the drive for infrastructure improvements and urban development resulted in higher deliveries in all three segments in the year under review, with an acceleration of the development in the fourth quarter. Cement volumes continued to be driven by solid demand from both the residential and infrastructure sectors. Increased use of petcoke and alternative fuels partly offset the impact of lower prices, nonetheless resulting in overall lower financial performance in Egypt.
All three segments in Algeria saw significant volume growth in 2015, thanks to a stable political environment and ongoing infrastructure investment, including the construction of the world’s third largest mosque. All segments also benefitted from favourable weather conditions. Operating EBITDA rose accordingly, reflecting higher cement volumes and favourable pricing.
Moderate growth in public infrastructure investment in Morocco drove a slight increase in cement volumes in comparison with the previous year, also supported by favorable weather conditions at the end of the year. The segment additionally benefited from bag cement increases, as individual home-building grew thanks to a strong agricultural cycle. Aggregates and ready-mix volumes decreased. Financial performance was higher than in 2014 as improved results in the cement segment mitigated lower performance in the aggregates and ready-mix concrete segments.
The challenging political situation in Lebanon dampened cement demand from the residential sector, the key driver behind Lebanon’s construction industry. Accordingly, cement and ready-mix volumes experienced a decline and operating EBITDA was lower as well. Jordan also reported lower cement volumes, while Iraq suffered from political instability and logistics constraints in major parts of the country.
In Nigeria, cement deliveries decreased slightly in 2015. This reflected competitive pressure in the year under review as well as a temporary slowdown in public investment as a result of the drop in oil prices, mostly offset by steady demand for infrastructure developments and high-end housing for the country’s emerging middle class. Ready-mix concrete volumes rose in the year under review. Operating EBITDA declined.
In Kenya, cement volumes benefited from strong infrastructure investment and sales to individual home-builders. Increased demand in the domestic market contributed to significantly improved financial performance. Uganda benefited from the ongoing high demand for building materials and was able to increase cement volumes in the year under review, despite lower exports to Rwanda. Financial performance was higher as well.
Cement volumes in Zambia decreased due to a decline in exports to the Democratic Republic of Congo. Despite strong competition, domestic volumes were higher, partially due to investments in infrastructure. An increase in road and infrastructure developments accounted for a rise in aggregates volumes. However, operating EBITDA declined due to price adjustments following stronger competitive pressure and the impact of the strong devaluation of the Kwacha, in a market where a significant proportion of costs is handled in US dollars.
South Africa was able to sell more cement and aggregates in the year under review despite low levels of economic growth and lack of investor confidence. However, operating EBITDA decreased as a result of competitive pressure.