... as well as in the Philippines

LafargeHolcim has signed an agreement with San Miguel Corporation for the divestment of its entire 85.7 % shareholding in Holcim Philippines Inc. for an enterprise value of US$ 2.15 billion, on a 100 % basis. Closing of the transaction is expected in Q4 2019 and is subject to customary and regulatory approvals.

Holcim Philippines Inc. operates four integrated cement plants and one grinding plant. The San Miguel Corporation is one of the Philippines’ leading diversified conglomerates with operations in beverages, food, packaging, fuel and oil, power and infrastructure.

The proceeds of this transaction will allow LafargeHolcim to further improve its debt ratio by approximately 0.3 times. With the divestment of its activities in Indonesia, Malaysia, Singapore and the Philippines, LafargeHolcim exits South East Asia at a total enterprise value (EV) of US$ 4.9 billion representing a 2018 EV/Recurring EBITDA multiple above 21 times. These transactions are highly value accretive and result in a significant deleverage of 0.6 times Net Debt to Recurring EBITDA ratio*.

Jan Jenisch, CEO: “With the divestment of our activities in the Philippines, we are completing our exit from the increasingly hyper-competitive arena in South East Asia. While this decision is based on our strategic portfolio review, we have reached very attractive valuations allowing us to achieve a new level of financial strength. We will have over performed our target ratio of Net Debt to Recurring EBITDA of 2 times or less* by the end of 2019. We have delivered on the promised strengthening of our balance sheet and we are on track to accelerate the execution of our Strategy 2022 – ‘Building for Growth’.”

www.lafargeholcim.com

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