Capital market information

The Holcim Leadership Journey gained momentum in 2014 and made substantial contributions to the Group’s results. A strong recovery in the United States and the United Kingdom and an improving sentiment in emerging markets mainly India and Mexico were slightly offset by a slowdown in continental Europe. With a total contribution of over CHF 1.8 billion, the Holcim Leadership Journey’s target of 1.5 billion in operating profit contribution has been significantly exceeded. As a result Holcim’s return on invested capital ROICBT improved (adjusted for restructuring and merger related cost).

Performance of Holcim share versus Swiss Market Index (SMI)

Swiss Market rebased against Holcim share price

Equity markets remained volatile throughout 2014 as geopolitical tensions, a weakening economic situation in Europe, and the oil price deterioration towards the end of 2014 prevented a stable development. Share prices recovered somewhat during the year however experienced a massive drop in October with a number of dramatic sell-offs and rebounds as a result of growing fears about the global economic outlook and the US Federal Reserve raising interest rates sooner than expected. Holcim’s share price started the year in line with the market but then was significantly boosted by the announcement of the planned merger with Lafarge in April 2014. After a high of CHF 82.80 beginning of June, Holcim shares corrected and ended the year at CHF 71.35 underperforming the Swiss Market Index SMI slightly. The average trading volume in 2014 amounted to approximately 1.1 million shares a day.

Current rating (February 2015)

 

Standard & Poor’s

Fitch

Moody’s

Long-term rating

BBB, outlook stable

BBB, outlook stable

Baa2, outlook negative

Short-term rating

A-2

F2

P-2