Holcim implements action plan regarding Coronavirus pandemic

Execution of action plan “HEALTH, COST & CASH” in all countries
Reduction of CAPEX by at least CHF 400 million compared to 2019
Reduction in fixed cost by at least CHF 300 million in 2020
Reduction of Net Working Capital at least in line with level of activity
Strong liquidity of CHF 8 billion as of March 26, 2020
Confirmation of Annual General Assembly on May 12, 2020 and confirmation of dividend proposal

Since the beginning of the Coronavirus pandemic, Holcim has taken the necessary measures to protect the health of its employees, customers, suppliers and other stakeholders. We are closely monitoring all markets according to the evolving situation and to the guidance provided by the authorities in each country.

While the construction sector and construction sites are generally more resilient than other sectors, Holcim is now experiencing disruptions in operations in various countries. In China, the recovery of the construction sector has started and all our plants outside of Hubei Province are operating. We forecast the market demand to further recover and to supply 70 of last year’s volume in April 2020. In most of the other key markets, the construction sector is disrupted and we forecast significant volume declines in April and May. While demand in Q1 was solid overall, Holcim expects a significant negative impact on its business in Q2.

Currently the development of the Coronavirus pandemic and its implications for the business are volatile and very different from country to country. In order to mitigate the financial impact of the situation, we have launched the action plan “HEALTH, COST & CASH” for immediate execution in all countries. Targets are:

Reduction of CAPEX by at least CHF 400 million compared to 2019
Reduction in fixed cost by CHF 300 million in 2020
Realization of reduction of energy prices and full review of all third party products and services
Reduction of Net Working Capital at least in line with level of activity