Financial contribution of the Holcim Leadership Journey and Return on Invested Capital

The Holcim Leadership Journey has achieved total benefits of CHF 1.848 billion since 2011 and as such has significantly exceeded the improvement target of CHF 1.5 billion. Whereas the savings in 2012 were modest, with a contribution of CHF 158 million, Holcim managed to realize continuous performance improvements, generating additional benefits of CHF 943 million in 2013 and CHF 748 million in 2014.

Thanks to the Holcim Leadership Journey absolute operating profit as well as the operating profit margin increased, despite partially adverse markets and extraordinary effects such as merger costs. Group return on invested capital before tax (ROICBT) reached 9.0 percent in 2014 (2013: 9.1 percent). After adjusting for merger and restructuring costs, the ROICBT increased to 9.4 percent.

Holcim Value Added (HVA)1

1 Excluding cash and cash equivalents.
2 WACC before tax of 11.76 percent.

Savings in million CHF

 

2014 realized

cumulative since 2012

Target by end of 2014

Increase in customer excellence

248

414

>500

 

 

 

 

Cost leadership

500

1,434

>1,000

Energy and alternative fuels

97

324

>300

Logistics

105

267

>250

Procurement process

187

438

>250

Fixed costs

111

405

>200

 

 

 

 

Total contribution

748

1,848

>1,500

 

 

 

 

Additional CAPEX net

46

264

100–180