Event: feedback from the Combined General Meeting of May 7, 2015

Our Combined General Meeting was held on May 7, 2015 at the Carrousel du Louvre in Paris. The meeting offered an opportunity to review the past year and update our shareholders on the progress and next steps of our merger project with Holcim.

05.07.2015
 

Strong results in 2014 and positive outlooks for 2015

 

Lafarge Shareholders' Meeting, 7 May 2015

Bruno Lafont and Jean-Jacques Gauthier opened the Combined General Meeting with a review of our performance in 2014. "All the transformation work we have done over a period of several years is now paying off," said Bruno Lafont. "By refocusing on our core business, by further consolidating our market-based approach to work even more closely with our customers, by putting innovation at the heart of strategy, and by redrawing the geography of our portfolio to support urban growth, we have delivered strong results."

 

Compared with 2013:

  • our annual revenue increased by 3%;
  • our EBITDA was 5% higher;
  • our net income Group share was up by 10%.

 

We also hit our cost reduction target a full year early, and succeeded in reducing our debt to just over €9 billion.

 

Given our strengths, 2015 should be a good year for the Group in what is a more favorable economic climate. Bruno Lafont confirmed our targets for this year:

  • To achieve EBITDA of between €3 billion and €3.2 billion, with at least €550 million attributable to cost cutting and innovation.
  • To remain on target with improving our financial structure through investments totaling €1.1 billion.
  • To continue the process of reducing our debt to between €8.5 billion and €9 billion by the end of the year.

 

Leading by example in governance

Reviews of its governance conducted in 2014 resulted in two awards for Lafarge! We received:

  • the Top Award in the 'Management Structure Operation'  category of the 2014 Corporate Governance Awards presented by the French financial publisher AGEFI.
  • the 'Shareholder Meeting Invitation' Award, including 'Say on Pay' of the Grands Prix de la Transparence 2014 awards.

 

 

LafargeHolcim: the merger project progresses

The plan to merge with Holcim was one of the headline issues at this meeting. Bruno Lafont presented an update on the decisive milestones we have already reached in preparing for this merger of equals, with particular emphasis on governance and competition regulator approvals.

 

LafargeHolcim will become a global leader with the ability to respond effectively to the great construction challenges of today and tomorrow. This leadership will be visible in four distinct areas of our business:

  • We will be better positioned to support the trend towards urbanization.
  • We will have the best innovation policy focused on building better cities.
  • We will have the greatest technical and industrial expertise delivered by the best professionals in the industry using the very latest technologies installed in our cutting-edge plants.
  • We will set the benchmark for sustainability.

 

View the major construction challenges worldwide as presented to our shareholders.

 

 

The final section of the Combined General Meeting was devoted to the public exchange offer. As part of his presentation, Bruno Lafont explained shareholders how to exchange their Lafarge shares for LafargeHolcim shares. This exchange offer is the final stage before the effective formation of the future Group, which is expected to take place mid-July.