Asia Pacific

LafargeHolcim’s Asia Pacific region delivered a solid improvement in margins in Q3 and a 6.7 percent growth in Adjusted Operating EBITDA on a like-for-like basis.

Volumes increased in a number of markets including the Philippines, China and Vietnam. China, which delivered improved Adjusted Operating EBITDA growth, continued to benefit from our segmented market strategy in key regions. Costs were also lower as the business benefited from favorable energy price trends, optimizing raw material consumption and more effective procurement management.

In the Philippines, like-for-like Adjusted Operating EBITDA growth was supported by cost discipline and improved pricing in a market that is enjoying healthy demand in housing and infrastructure.

India continued the turnaround in business performance, though a more intense and extended monsoon season, which is positive for demand going forward, had a softening effect on volumes in Q3. More widely, good cost performance, combined with our focus on price and margin improvement had a positive effect on like-for-like Adjusted Operating EBITDA growth.

Australia saw lower aggregate volumes and reduced Adjusted Operating EBITDA following the completion earlier this year of the construction phase of the Gorgon gas project in Western Australia. Indonesia and Malaysia were affected by overcapacity and a difficult competitive environment. LafargeHolcim is taking specific measures in both countries to improve competitiveness and performance in light of challenging market conditions.

Asia Pacific – Pro forma information

 

 

July–Sept
2016

July–Sept
2015

±%

±%
like-for-like

1

Excluding merger, restructuring and other one-offs.

2

Cash flow from operating activities less net maintenance and expansion capex.

Sales of cement

million t

25.8

29.5

–12.7

–4.9

Sales of aggregates

million t

7.8

9.5

–17.5

–9.4

Sales of ready-mix concrete

million m3

3.9

4.1

–6.0

–6.0

Net sales

million CHF

1,894

2,136

–11.3

–5.9

Operating EBITDA

million CHF

323

345

–6.2

+3.6

Operating EBITDA adjusted1

million CHF

338

350

–3.4

+6.7

Operating EBITDA margin

%

17.1

16.1

 

 

Operating EBITDA margin adjusted1

%

17.8

16.4

 

 

Cash flow from operating activities

million CHF

152

204

–25.6

–19.9

Operating Free Cash Flow2

million CHF

73

70

+4.7

+22.7

Asia Pacific – Pro forma information

 

 

Jan–Sept
2016

Jan–Sept
2015

±%

±%
like-for-like

1

Excluding merger, restructuring and other one-offs.

2

Cash flow from operating activities less net maintenance and expansion capex.

Sales of cement

million t

86.4

90.1

–4.1

+0.3

Sales of aggregates

million t

23.8

25.4

–6.4

+6.3

Sales of ready-mix concrete

million m3

11.9

11.9

+0.4

+0.4

Net sales

million CHF

6,236

6,685

–6.7

–1.5

Operating EBITDA

million CHF

1,083

1,129

–4.1

+2.5

Operating EBITDA adjusted1

million CHF

1,120

1,165

–3.9

+2.6

Operating EBITDA margin

%

17.4

16.9

 

 

Operating EBITDA margin adjusted1

%

18.0

17.4

 

 

Cash flow from operating activities

million CHF

571

562

+1.4

+10.7

Operating Free Cash Flow2

million CHF

327

169

+93.8

+135.8