Pro Forma Financial Information

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.

The Pro Forma Financial Information is derived from:

  • the audited financial information of LafargeHolcim for the period ended December 31, 2015;
  • Lafarge interim financial information for the six month period ended June 30, 2015 translated into Swiss Francs; and
  • the financial impact corresponding to the 10 days between July 1 and July 10, 2015 (Merger date)

The Pro Forma Financial Information also reflects the following effects:

  • the impacts of the fair value adjustments for the six month period ended June 30, 2015. They mainly relate to long-term financial debt and depreciation and amortization of
    property, plant and equipment;
  • the change of scope resulting from the Merger (mainly the full consolidation of operations in China and Nigeria); and
  • the divestments carried out as part of a rebalancing of the Group global portfolio and completed in the second semester of 2015 mainly to CRH for operations in Europe, North America, Brazil and the Philippines.

Additional details are provided in Note 4 to the audited financial statements.

LafargeHolcim Pro Forma Statement of Income for the year ended December 31, 2015

CHF million

LafargeHolcim published information for the year ended December 31, 2015

Lafarge pro forma information for the period from January 1, 2015 to July 10, 2015

Fair value adjustments

Scope effect (China, Nigeria)

Divestments

2015 LafargeHolcim Pro Forma Information

Net sales

23,584

6,955

784

(1,841)

29,483

 

 

 

 

 

 

 

Operating EBITDA

3,682

1,081

147

(356)

4,555

Depreciation, amortization and impairment of operating assets

(4,421)

(530)

(194)

(83)

142

(5,087)

Operating profit (loss)

(739)

551

(194)

64

(214)

(533)

Net loss

(1,361)

(415)

(40)

(25)

(243)

(2,085)

Certain non recurring items have been adjusted from the above pro forma figures. The reconciliation with the adjusted net income and operating EBITDA is presented below:

CHF million

2015 LafargeHolcim Pro Forma Information

1

Corresponds to 12 month impacts.

2

Mainly includes the impairments on property, plant and equipment, goodwill and intangible assets booked in Q4 2015.

3

Mainly includes gains on disposals and revaluation gains of previously held interests.

4

Corresponds to 12 month impact in connection with inventory fair value.

Pro forma net loss

(2,085)

Impact of fair value adjustments1

82

Merger, restructuring and other one-offs (impact on operating EBITDA)

1,106

Impairment and other charges (impact on operating profit)2

2,955

Other one-offs (impact below operating profit)3

(678)

Tax impact

(596)

Pro forma net income adjusted

784

 

 

Pro forma operating EBITDA

4,555

Impact of fair value adjustments4

90

Merger, restructuring and other one-offs (impact on operating EBITDA)

1,106

Pro forma operating EBITDA adjusted

5,751