Notes to the financial statements of Holcim Ltd

Contingent liabilities

 

 

Million CHF

31.12.2014

31.12.2013

1

Exchange rate USD: CHF 0.9891.

2

Exchange rate MXN: CHF 0.0672.

3

Exchange rate THB: CHF 0.0301.

4

Exchange rate AUD: CHF 0.8104.

5

Exchange rate CAD: CHF 0.8522.

6

Exchange rate EUR: CHF 1.2027.

7

Exchange rate GBP: CHF 1.5391.

Holcim Capital Corporation Ltd.

 

 

Guarantees in respect of holders of

 

 

6.59% USD 165 million private placement due in 2014

0

160

7.65% USD 50 million private placement due in 2031

831

68

6.88% USD 250 million bonds due in 2039

2721

245

6.50% USD 250 million bonds due in 2043

2721

245

Holcim Capital México, S.A. de C.V.

 

 

Guarantees in respect of holders of

 

 

3.86% MXN 1,500 million bonds due in 2015

1112

112

3.98% MXN 800 million bonds due in 2016

592

60

3.68% MXN 2,000 million bonds due in 2018

1482

0

7.00% MXN 1,700 million bonds due in 2019

1262

127

Holcim Capital (Thailand) Ltd.

 

 

Guarantees in respect of holders of

 

 

3.52% THB 1,220 million bonds due in 2015

403

36

Holcim Finance (Australia) Pty Ltd

 

 

Guarantees in respect of holders of

 

 

7.00% AUD 250 million bonds due in 2015

2234

218

6.00% AUD 250 million bonds due in 2017

2234

218

5.25% AUD 200 million bonds due in 2019

1784

174

Holcim Finance (Belgium) S.A.

 

 

Commercial Paper Program, guarantee based on utilization, EUR 500 million maximum

376

0

Holcim Finance (Canada) Inc.

 

 

Guarantees in respect of holders of

 

 

6.91% CAD 10 million private placement due in 2017

105

10

3.65% CAD 300 million bonds due in 2018

2815

276

Holcim Finance (Luxembourg) S.A.

 

 

Guarantees in respect of holders of

 

 

4.38% EUR 600 million bonds due in 2014

0

809

9.00% EUR 650 million bonds due in 2014

0

877

6.35% EUR 200 million bonds due in 2017

2656

270

3.00% EUR 500 million bonds due in 2024

6616

0

Holcim GB Finance Ltd.

 

 

Guarantees in respect of holders of

 

 

8.75% GBP 300 million bonds due in 2017

5087

485

Holcim Overseas Finance Ltd.

 

 

Guarantees in respect of holders of

 

 

3.38% CHF 425 million bonds due in 2021

468

468

Holcim US Finance S.à r.l. & Cie S.C.S.

 

 

Commercial Paper Program, guarantee based on utilization, USD 1,000 million maximum

2631

439

Guarantees in respect of holders of

 

 

6.10% USD 125 million private placement due in 2016

1241

111

6.21% USD 200 million private placement due in 2018

1981

178

6.00% USD 750 million bonds due in 2019

8161

734

2.63% EUR 500 million bonds due in 2020

6616

674

4.20% USD 50 million bonds due in 2033

541

49

5.15% USD 500 million bonds due in 2023

5441

489

 

 

 

Guarantees for committed credit lines, utilization CHF 283 million (2013: 209)

3,004

3,697

Other guarantees

16

20

Holcim Ltd is part of a value added tax group and therefore jointly liable to the Swiss Federal Tax Administration for the value added tax liabilities of the other members.

Issued bonds

The outstanding bonds and private placements as of December 31, 2014, are listed under note 27.

Principal investments

The principal direct and indirect investments of Holcim Ltd are listed under the heading “Principal companies of the Holcim Group”.

Treasury Shares

 

 

Number

Price per share in CHF

Million CHF

01.01.2014

Treasury shares

1,522,510

66.72

101.6

01.01. to 31.12.2014

Purchases

61,542

74.92

4.6

01.01. to 31.12.2014

Sales

(364,713)

62.45

(24.4)

31.12.2014

Treasury shares

1,219,339

67.08

81.8

 

 

 

 

 

01.01.2013

Treasury shares

1,736,538

65.81

114.3

01.01. to 31.12.2013

Purchases

163,846

75.20

12.3

01.01. to 31.12.2013

Sales

(377,874)

62.14

(25.0)

31.12.2013

Treasury shares

1,522,510

66.72

101.6

Conditional share capital

 

 

Number

Price per share in CHF

Million CHF

01.01.2014

Conditional shares par value

1,422,350

2.00

2.8

01.01. to 31.12.2014

Movement

0

0

0

31.12.2014

Conditional shares par value

1,422,350

2.00

2.8

 

 

 

 

 

01.01.2013

Conditional shares par value

1,422,350

2.00

2.8

01.01. to 31.12.2013

Movement

0

0

0

31.12.2013

Conditional shares par value

1,422,350

2.00

2.8

Share interests of Board of Directors and senior management

As of December 31, 2014, the members of the Board of Directors and senior management of Holcim held directly and indirectly in the aggregate 66,017,050 registered shares (2013: 66,088,807) and no rights to acquire further registered shares and 548,184 call options on registered shares (2013: 550,151).

Number of shares held by the Board of Directors as of December 31, 20141

Name

Position

Total number of shares 2014

1

From allocation, shares are subject to a five-year sale and pledge restriction period.

Wolfgang Reitzle

Chairman,
Governance & Strategy Committee Chairman

2,241

Beat Hess

Deputy Chairman

4,693

Alexander Gut

Member, Audit Committee Chairman

4,092

Adrian Loader

Member,
Nomination and Compensation Committee Chairman

10,493

Jürg Oleas

Member

0

Thomas Schmidheiny

Member

65,777,912

Hanne Sørensen

Member

1,015

Dieter Spälti

Member

41,912

Anne Wade

Member

985

Total Board of Directors

 

65,843,343

Number of shares held by the Board of Directors as of December 31, 20131

Name

Position

Total number of shares 2013

1

From allocation, shares are subject to a five-year sale and pledge restriction period.

Rolf Soiron

Chairman,
Governance & Strategy Committee Chairman

39,514

Beat Hess

Deputy Chairman

3,515

Erich Hunziker

Deputy Chairman,
Nomination & Compensation Committee Chairman

13,551

Alexander Gut

Member, Audit Committee Chairman

2,914

Adrian Loader

Member

9,315

Andreas von Planta

Member

13,309

Wolfgang Reitzle

Member

1,063

Thomas Schmidheiny

Member

65,776,734

Hanne Sørensen

Member

230

Dieter Spälti

Member

40,413

Anne Wade

Member

200

Total Board of Directors

 

65,900,758

Shares and options owned by Senior Management

As of December 31, 2014, members of Senior Management held a total of 173,707 registered shares in Holcim Ltd. This figure includes both privately acquired shares and those allocated under the Group’s participation and compensation schemes.

Furthermore, at the end of 2014, Senior Management held a total of 548,184 share options; these arose as a result of the participation and compensation schemes of various years. Options are issued solely on registered shares in Holcim Ltd. One option entitles the holder to subscribe to one registered share in Holcim Ltd.

Number of shares and options held by the senior management as of December 31, 20141

Name

Position

Total number of shares 2014

Total number of call options 2014

1

From allocation, shares are subject to a five-year and options to a three-year and nine-year sale restriction period respectively.

2

Since October 1, 2014.

3

Since January 1, 2014.

4

Since February 6, 2014.

Bernard Fontana

CEO

10,113

73,794

Thomas Aebischer

Member of the Executive Committee, CFO

12,285

67,474

Urs Bleisch

Member of the Executive Committee2

3,921

38,563

Roland Köhler

Member of the Executive Committee

18,291

87,495

Andreas Leu

Member of the Executive Committee

19,302

69,934

Bernard Terver

Member of the Executive Committee

25,439

49,123

Ian Thackwray

Member of the Executive Committee

11,696

81,719

Horia Adrian

Area Manager

2,500

4,251

Daniel Bach

Area Manager3

1,785

0

Alain Bourguignon

Area Manager3

4,358

0

Javier de Benito

Area Manager

23,737

16,501

Urs Fankhauser

Area Manager

6,175

11,077

Kaspar E.A. Wenger

Area Manager

19,932

4,952

Jacques Bourgon

Corporate Functional Manager

5,480

24,872

Xavier Dedullen

Corporate Functional Manager

333

2,373

Aidan Lynam

Corporate Functional Manager4

8,360

16,056

Total senior management

 

173,707

548,184

Number of shares and options held by the senior management as of December 31, 20131

Name

Funktion

Total number of shares 2013

Total number of call options 2013

1

From allocation, shares are subject to a five-year and options to a three-year and nine-year sale restriction period respectively.

Bernard Fontana

CEO

5,489

55,302

Thomas Aebischer

Member of the Executive Committee, CFO

9,464

56,548

Paul Hugentobler

Member of the Executive Committee

40,843

96,050

Roland Köhler

Member of the Executive Committee

15,470

80,402

Andreas Leu

Member of the Executive Committee

16,481

69,934

Bernard Terver

Member of the Executive Committee

22,618

42,819

Ian Thackwray

Member of the Executive Committee

8,875

70,091

Horia Adrian

Area Manager

2,280

1,228

Javier de Benito

Area Manager

22,858

27,269

Urs Fankhauser

Area Manager

5,107

7,835

Aidan Lynam

Area Manager

7,482

12,718

Onne van der Weijde

Area Manager

3,152

3,378

Kaspar E.A. Wenger

Area Manager

19,759

1,228

Urs Bleisch

Corporate Functional Manager

3,306

939

Jacques Bourgon

Corporate Functional Manager

4,865

24,410

Xavier Dedullen

Corporate Functional Manager

0

0

Total senior management

 

188,049

550,151

Movements in the number of share options outstanding held by Senior Management are as follows:

 

Number1
2014

Number1
2013

1

Adjusted to reflect former share splits and/or capital increases.

January 1

550,151

508,587

Decrease due to change in senior management

6,116

0

Decrease due to retirements

70,499

0

Granted and vested (individual component of variable compensation)

99,532

96,480

Granted and vested (single allotment)

33,550

11,183

Exercised

11,530

66,099

Lapsed

46,904

0

December 31

548,184

550,151

Of which exercisable at the end of the year

85,982

136,963

The share options outstanding held by senior management (including former members) at year-end 2014 have the following expiry dates and exercise prices:

Option grant date

Expiry date

Exercise price1

Number1
2014

Number1
2013

1

Adjusted to reflect former share splits and/or capital increases.

2

Due to trade restrictions in 2008, the expiry date of the annual options granted for the years 2003 to 2005 has been extended by one year.

2002

2014

CHF

67.15

0

122,737

2003

20152

CHF

67.15

0

33,550

2004

20162

CHF

67.15

23,550

33,550

2005

20142

CHF

74.54

0

71,423

2006

2014

CHF

100.69

0

58,573

2007

2015

CHF

125.34

49,674

49,674

2008

2016

CHF

104.34

71,083

71,083

2008

2020

CHF

67.15

33,550

33,550

2009

2017

CHF

38.26

153,482

224,478

2010

2018

CHF

71.15

99,493

131,631

2010

2022

CHF

75.40

33,550

33,550

2010

2022

CHF

81.45

33,550

33,550

2011

2019

CHF

67.15

113,957

149,763

2011

2023

CHF

71.50

67,100

67,100

2012

2020

CHF

58.50

179,894

179,894

2012

2024

CHF

67.15

33,550

33,550

2013

2021

CHF

71.90

122,770

122,770

2013

2025

CHF

71.50

11,183

11,183

2014

2022

CHF

69.15

99,532

0

2014

2026

CHF

71.50

33,550

0

Total

 

 

 

1,159,468

1,461,609

In 2014, one new Executive Committee member was granted in total 33,550 options.

Important shareholders1

As per December 31, 2014, Thomas Schmidheiny directly and indirectly held 65,777,912 shares (20.11 percent) (2013: 65,776,734 shares or 20.11 percent)2. Eurocement Holding AG declared holdings of 35,402,772 shares (10.82 percent) as per December 31, 2014 (2013: 35,402,772 shares or 10.82 percent). Harris Associates L.P. declared holdings of 16,163,815 shares (4.94 percent) as per April 14, 2014 (2013: 16,711,883 shares or 5.11 percent), Harbour International Fund declared holdings of 9,840,977 shares (3.01 percent) as per August 4, 2014 and BlackRock Inc. declared holdings of 9,582,830 shares (2.93 percent) as per January 26, 2015 (April 9, 2014: 11,398,633 shares or 3.48 percent).

The information disclosed complies with Swiss legal requirements. Further information can be found in the remuneration report and in the notes to the consolidated financial statements. Specific information in accordance with Art. 663b para. 12 (risk assessment) and Art. 663c para. 3 (transparency law) of the Swiss Code of Obligations are disclosed in the section “Risk management”.

Share capital

Shares

Number

2014
Million CHF

Number

2013
Million CHF

Registered shares of CHF 2 par value

327,086,376

654.2

327,086,376

654.2

Total

327,086,376

654.2

327,086,376

654.2

Appropriation of retained earnings

 

 

2014
Million CHF

 

2013
Million CHF

Retained earnings brought forward

 

828.4

 

563.5

Net income of the year

 

377.3

 

1,064.9

Retained earnings available for annual general meeting of shareholders

 

1,205.7

 

1,628.4

The Board of Directors proposes to the annual general meeting of shareholders the following appropriation:

 

 

 

 

 

 

 

 

 

Allocation to free reserves

 

(600.0)

 

(800.0)

Balance to be carried forward

 

605.7

 

828.4

Payout from capital contribution reserves

The Board of Directors proposes to the annual general meeting of shareholders an appropriation from capital contribution reserves to free reserves and payout of CHF 1.30 per registered share up to an amount of CHF 425 million3.

 

2014
Cash payout CHF

2013
Cash payout CHF

Payout per share, gross

 

1.30

 

1.30

Less withholding tax

 

0

 

0

Payout per share, net

 

1.30

 

1.30

1 Shareholding of more than 3 percent.

2 Included in share interests of Board of Directors and senior management.

3There is no payout on treasury shares held by Holcim. On January 1, 2015, treasury holdings amounted to 1,219,339 registered shares.