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.
2016 will be a year of progress towards our 2018 targets. Demand in our markets is expected to grow between 2 percent to 4 percent taking into account the challenging economic headwinds in selected emerging markets that will continue. This further illustrates that our merger was an essential first step in building a new business, ready to exploit opportunities in the coming years.
This year our strategic plan will gain further momentum and in 2016 we expect:
- CAPEX to remain below CHF 2.0 billion
- Incremental synergies of more than CHF 450 million of operating EBITDA
- Our pricing recovery actions and commercial excellence initiatives will demonstrate tangible results in 2016.
- Net debt expected to decrease to around CHF 13.0 billion at year end, including the effect of our planned divestment program
- CHF 3.5 billion divestment program to be completed with more than one third already secured
- We are committed to maintaining a solid investment grade rating and commensurate to this rating, returning excess cash to shareholders, notably with a progressive dividend policy
We reconfirm our commitment to the 2018 targets announced in November 2015.