Holcim Ltd · SIX:HOLN
Holcim — Shareholder Meeting (April 2024)
45 slides from Holcim's shareholder meeting presentation, April 2024
Slide 1: Engagement Presentation – AGM 2024
The Spheres Seattle, ECOPlanet Cement ENGAGEMENT PRESENTATION – AGM 2024 MARCH - APRIL 2024 / AGM 2024
Slide 2: Holcim Highlights, Leadership, Remuneration, Climate Report
01. HOLCIM HIGHLIGHTS 02. LEADERSHIP 03. REMUNERATION 04. CLIMATE REPORT Striatus Bridge, 3D Printed with Tector, Venice, Italy
Slide 3: Key Highlights in 2023: Delivering Record Results
KEY HIGHLIGHTS IN 2023 DELIVERING RECORD RESULTS 1. Mature markets comprise North America, Europe and Oceania (Australia & New Zealand) 2. 2023 Scope 1 + Scope 2 CO2 emissions per million of net sales compared to 2022 3 3. Compared to 2022
Slide 4: 2023 Highlights: Achieving Strategy 2025 Ahead of Plan
2023 HIGHLIGHTS ACHIEVING STRATEGY 2025 AHEAD OF PLAN Record results 2023 Achieving Strategy 2025 ahead of plan • Recurring EBIT of CHF 4’760 million • Industry-leading margins with 17.6% in recurring EBIT +14.7% organic growth and 13.7% in Free Cash Flow • Free Cash Flow of CHF 3’705 million • Fina
Slide 5: Strategy 2025 Accelerating Green Growth: Financial Targets Achieved
STRATEGY 2025 “ACCELERATING GREEN GROWTH” FINANCIAL TARGETS ACHIEVED 2 YEARS AHEAD OF PLAN STRATEGY 2025 2023 Net Sales Growth 3 - 5% organic p.a. +6.1% organic Recurring EBIT Growth OVER PROPORTIONAL TO NET SALES GROWTH ANNUALLY +14.7% organic Accelerate Growth in 30% Solutions & Products IN % OF G
Slide 6: Holcim Highlights, Leadership, Remuneration, Climate Report
01. HOLCIM HIGHLIGHTS 02. LEADERSHIP 03. REMUNERATION 04. CLIMATE REPORT Striatus Bridge, 3D Printed with Tector, Venice, Italy
Slide 7: Leadership: Updates on Leadership Transition
LEADERSHIP UPDATES ON LEADERSHIP TRANSITION • Jan Jenisch will conclude his CEO role, handing over responsibilities for Holcim’s daily operations following the AGM 2024 • Miljan Gutovic will transition into his new role as CEO, starting from May 2024 • Jan Jenisch will continue to serve as Chairman
Slide 8: Proposed New Board Member Catrin Hinkel
LEADERSHIP UPDATES ON LEADERSHIP TRANSITION Proposed New Board Member Catrin Hinkel A German national born in 1969, Catrin Hinkel holds a Bachelor of Arts from the European Partnership of Business Schools (ESB), Reutlingen and London Catrin Hinkel serves as CEO of Microsoft Switzerland since May 202
Slide 9: Proposed New Board Member Michael H. McGarry
LEADERSHIP UPDATES ON LEADERSHIP TRANSITION Proposed New Board Member Michael H. McGarry A U.S. national born in 1958, Michael H. McGarry is a mechanical engineering graduate of the University of Texas and has completed the Advanced Management Program at Harvard Business School Michael H. McGarry se
Slide 10: Board Composition: Committed to Responsible Governance
BOARD COMPOSITION COMMITTED TO RESPONSIBLE GOVERNANCE Philippe Block • Chairman of the Health, Safety & Sustainability Committee Kim Fausing Ilias Läber • Member of the Audit Committee • Member of the Audit Committee • Member of the Nomination, Compensation Jan Jenisch & Governance Committee • Chair
Slide 11: Board Effectiveness and Commitment
BOARD EFFECTIVENESS AND COMMITMENT BOARD AND COMMITTEE ATTENDANCE AT SCHEDULED ORDINARY MEETINGS - 2023 MANDATES IN LISTED COMPANIES Name Position Board Audit Nomination, Health, Safety (incl Committee Compensation & Strategy AC & Governance Sustainability meeting) Committee Committee NCGC HSSC Jan
Slide 12: Board Composition AGM 2023+: Non-Independent Chairman
BOARD COMPOSITION AGM 2023+ CORPORATE GOVERNANCE WITH A NON-INDEPENDENT CHAIRMAN • To safeguard Holcim’s current transformation, fast-paced execution and LID responsibilities include leadership continuity, Jan Jenisch has been elected new Chairman of the Board of Directors at the AGM 2023 while cont
Slide 13: Board Composition AGM 2023+: A Diversified Board Composition
BOARD COMPOSITION AGM 2023+ A DIVERSIFIED BOARD COMPOSITION Board experience, skills and knowledge matrix It is our ambition to have a Board of Directors adding up to a well-balanced and diverse skill set aligned with Holcim’s strategic ambitions 13
Slide 14: Board Composition AGM 2023+: A Diverse Board
BOARD COMPOSITION AGM 2023+ A DIVERSE BOARD Nationality Gender Tenure (years) Independence Canadian 11% Belgian 11% 22% 11% 11% Brazilian 11% <5 Danish 44% Female Independent 11% 11% 5 to 10 German 56% Male Non-Independent Indian ≥ 10 11% 22% 78% Swiss 89% AGM2023+ composition of the Board of Direct
Slide 15: Board Refreshment: Thorough Succession Planning
BOARD REFRESHMENT A THOROUGH SUCCESSION PLANNING IN THE INTEREST OF THE COMPANY The Nomination, Compensation & Governance Committee (NCGC) is responsible for talent management on Board and Executive levels as well as the oversight of overall corporate culture ambitions Together with the Board, the N
Slide 16: Executive Management: Committed to Accelerating Green Growth
EXECUTIVE MANAGEMENT COMMITTED TO “ACCELERATING GREEN GROWTH” Steffen Kindler • CFO Toufic Tabbara • Region Head North America Jamie Gentoso • Global Head Solutions & Products Business Unit Jan Jenisch Nollaig Forrest • CEO 1 • Chief Sustainability Officer • Chairman of the Miljan Gutovic Board of D
Slide 17: Executive Composition: A Diverse Management
EXECUTIVE COMPOSITION A DIVERSE MANAGEMENT Nationality Gender Tenure 20% German 20% 30% American Spanish Female <5 10% Canadian 50% 50% Male 5 to 10 Austrian 10% 10% Australian Swiss 80% 10% 10% The composition of the Executive Committee is well balanced in terms of diversity, nationality, cultural
Slide 18: Holcim Highlights, Leadership, Remuneration, Climate Report
01. HOLCIM HIGHLIGHTS 02. LEADERSHIP 03. REMUNERATION 04. CLIMATE REPORT Striatus Bridge, 3D Printed with Tector, Venice, Italy
Slide 19: Remuneration Updates
REMUNERATION UPDATES Remuneration following Leadership Transition • During the double mandate until AGM 2024, the Board Chairman receives regular compensation for the CEO position and does not receive any additional compensation for the function on the Board • For the period after the appointment of
Slide 20: Compensation Governance: Nomination, Compensation & Governance Committee
COMPENSATION GOVERNANCE COMPENSATION GOVERNANCE NOMINATION, NOMINATION, COMPENSATION COMPENSATION & GOVERNANCE & GOVERNANCE COMMITTEE COMMITTEE (NCGC)(NCGC) The NCGC supports the Board with all nomination, compensation and governance related decisions NCGC tasks & responsibilities Annual schedule of
Slide 21: Compensation Governance: Compensation & Performance Benchmarking
COMPENSATION GOVERNANCE COMPENSATION GOVERNANCE COMPENSATION COMPENSATION & PERFORMANCE & PERFORMANCE BENCHMARKING BENCHMARK Benchmarks based on two primary peer groups: one focused on Swiss listed firms of similar size and the other on global firms in comparable industries Compensation strategy and
Slide 22: Compensation Governance: Decision Authorities on Compensation
COMPENSATION GOVERNANCE COMPENSATION GOVERNANCE NOMINATION, DECISION COMPENSATION AUTHORITIES & GOVERNANCE COMMITTEE (NCGC) ON COMPENSATION Balanced decision making between shareholders and Board of Directors NCGC Board of Directors Annual General Meeting Compensation strategy and design Proposes Ap
Slide 23: Board of Directors' Compensation: Fixed Compensation Only
BOARD OF DIRECTORS COMPENSATION BOARD OF DIRECTORS’ COMPENSATION FIXED FIXED COMPENSATION COMPENSATION ONLY ONLY To strengthen their independence, Board members receive fixed compensation only Annual Board retainer + Annual committee fees 50% in cash / 50% in restricted shares In cash Annual retaine
Slide 24: Board of Directors' Compensation 2024+
BOARD OF DIRECTORS COMPENSATION BOARD OF DIRECTORS’ COMPENSATION FIXED COMPENSATION COMPENSATION 2024+ ONLY • During the double mandate until AGM 2024, the Board Chairman receives regular compensation for the CEO position and does not receive any additional compensation for the function on the Board
Slide 25: Executive Committee Compensation Principles
EXECUTIVE COMMITTEE COMPENSATION EXECUTIVE COMMITTEE COMPENSATION PRINCIPLES MAIN PRINCIPLES The compensation principles were revised in 2022, ensuring that Holcim’s incentives all point in one direction: accelerating green growth DRIVE SUSTAINABLE AND SOCIAL IMPACT CREATE SHAREHOLDER VALUE Our comp
Slide 26: Executive Committee Compensation: Overview of Compensation Model
EXECUTIVE COMMITTEE COMPENSATION EXECUTIVE COMMITTEE COMPENSATION AOVERVIEW OF COMPENSATION WELL-BALANCED MODEL MODEL The compensation model is well balanced between short-term and long-term elements and between cash and equity Time horizon (years) Vehicle Purpose Pension & Insurances … END Personal
Slide 27: Executive Committee Compensation: Short-Term Incentive
EXECUTIVE COMMITTEE COMPENSATION EXECUTIVE COMMITTEE COMPENSATION SHORT-TERM SHORT-TERM INCENTIVE INCENTIVE (STI) (STI) SCHEME STI STI Payout = x payout target factor STI target in 2023 Maximum payout factor = 200% CEO 125% of ABS1 ExCo 75%2 of ABS1 Group and regional level KPIs Weighting Top line R
Slide 28: Executive Committee Compensation: HSE Scorecard
EXECUTIVE COMMITTEE COMPENSATION EXECUTIVE COMMITTEE COMPENSATION HEALTH, HEALTH, SAFETY SAFETY AND AND ENVIRONMENT ENVIRONMENT (HSE)(HSE) SCORECARD SCORECARD Achievement of the HSE objectives measured as a scorecard including both leading and lagging performance objectives and based on four element
Slide 29: Executive Committee Compensation: Long-Term Incentive Scheme
EXECUTIVE COMMITTEE COMPENSATION LONG-TERM INCENTIVE SCHEME (LTI) The long-term incentive rewards long-term company success and strengthens alignment with shareholders’ interests 1 Performance Shares (PS) granted: The number of PSU granted is PS1 PS calculated by dividing the individual grant amount
Slide 30: Executive Committee Compensation: Sustainability Objective
EXECUTIVE COMMITTEE COMPENSATION SUSTAINABILITY OBJECTIVE In addition to the existing EPS and ROIC performance conditions LTI includes a sustainability objective applicable to the performance shares The sustainability objective covers three pillars of the sustainability strategy Climate and energy C
Slide 31: Executive Committee Compensation: Compensation Mix & Mitigation Features
EXECUTIVE COMMITTEE COMPENSATION COMPENSATION MIX & MITIGATION FEATURES The compensation system aligns pay with performance without encouraging excessive risk taking or unintended behaviors Compensation mix at target Mitigation features CEO ExCo • Cap on incentives (maximum potential at 200% of targ
Slide 32: Evolution of the Compensation System
EXECUTIVE COMMITTEE COMPENSATION EVOLUTION OF THE COMPENSATION SYSTEM FY19 FY 20 FY 21 FY 22 FY 23 FY 24 Max payout increased to New HSE scorecard Target amount for ExCo 200% of target will be increased to 90% Rebalance weighting of of ABS Clawback provisions EBIT and Free Cash Flow STI (both 35%) T
Slide 33: Holcim Highlights, Leadership, Remuneration, Climate Report
01. HOLCIM HIGHLIGHTS 02. LEADERSHIP 03. REMUNERATION 04. CLIMATE REPORT Thammasat University Rooftop Farm (TURF) with Elevate green roofing solution, Thailand Striatus Bridge, 3D Printed with Tector, Venice, Italy
Slide 34: Holcim Accelerates Climate Action: 2023 Highlights
HOLCIM ACCELERATES CLIMATE ACTION 2023 HIGHLIGHTS ● CO2 per net sales reduction of 20% in 2023, 3% reduction in CO2 per tons of cementitious in 2023 ● Upgrade of CO2 targets, validated by the Science Based Targets initiative: upgrade of 2030 scope 1+2 targets to align with the latest SBTi criteria.
Slide 35: Leading the Way to Sustainable Building
LEADING THE WAY TO SUSTAINABLE BUILDING BUILDINGS ACCOUNT FOR 37% OF GLOBAL EMISSIONS 10% UPFRONT CARBON 27% OPERATIONAL CARBON from materials and the construction phase from heating, cooling and powering BECOMING A FOR A NET-POSITIVE NET ZERO COMPANY FUTURE Low-carbon Circular Energy efficient Gree
Slide 36: Delivered Through Strategy 2025
DELIVERED THROUGH STRATEGY 2025 ACCELERATING GREEN GROWTH We are accelerating green growth across all our markets with industry-leading profitability and cash flow EXPANDING SOLUTIONS & PRODUCTS We are accelerating green growth across all our markets with industry-leading profitability and cash flow
Slide 37: On Track to Meet Our Sustainability Targets
HOLCIM STRATEGY 2025 – ACCELERATING GREEN GROWTH ON TRACK TO MEET OUR SUSTAINABILITY TARGETS HOLCIM SUSTAINABILITY IMPROVEMENT 2023 RESULTS 2025 TARGETS PERFORMANCE vs FY 2022 CLIMATE & ENERGY KG CO2 NET / TON OF CEMENT 545 520 LTI RELEVANT -2.9% CONSTRUCTION DEMOLITION MATERIALS MILLION TONS 8.4 10
Slide 38: Sustainability Performance Highlights 2023
SUSTAINABILITY PERFORMANCE HIGHLIGHTS 2023 GREAT PROGRESS ACROSS ALL OUR SUSTAINABILITY PILLARS CO2 PER NET SALES PROJECTS CIRCULAR FRESHWATER COMMUNITIES CONSTRUCTION WITHDRAWAL -20% 6 8.4, +24% 298 (2022: 304) 25M REDUCTION IN 2023 CCUS PROJECTS IN M TONS OF CDM RECYCLED L /FRESHWATER WITHDRAWN CH
Slide 39: Next Level of ESG Transparency
NEXT LEVEL OF ESG TRANSPARENCY ENHANCED TRANSPARENCY AND REPORTING IN THE 2023 ANNUAL REPORT SWISS CODE OF EU TAXONOMY SAY ON CLIMATE OBLIGATION ● Holcim has successfully ● Reporting on non- ● Holcim 3rd climate finalized its assessment of financial matters under report presented to its EU Taxonomy
Slide 40: Growing Multi-Billion Brands to Meet Customers' Needs
GROWING MULTI-BILLION BRANDS TO MEET CUSTOMERS’ NEEDS LEADING THE TRANSITION TO SUSTAINABLE BUILDING 30% OF NET SALES FROM ADVANCED BRANDED SOLUTIONS IN 2023 A “2+ Billion CHF” A “1+ Billion CHF” Leader in circular construction Brand Brand 8.4 Mt, +24% recycled 19% of Cement Net Sales 19% of Ready-m
Slide 41: Climate Reporting Fully Embedded in Annual Report
CLIMATE REPORTING FULLY EMBEDDED IN ANNUAL REPORT ENHANCING HOLCIM’S CLIMATE RELATED DISCLOSURES We have further updated our 2030 and 2050 targets by: ● Upgrading our combined Scope 1 & 2 2030 targets to meet the latest SBTi validation criteria ● Extending our 2050 target coverage to include all 15
Slide 42: AGM Sustainability Proposals
AGM 2024 AGM SUSTAINABILITY PROPOSALS Our AGM Sustainability Proposals 1) Shareholder vote on the Report on Non-financial Matters • Shareholder vote required by the Swiss Code of Obligations as of 2024 on a broad set of non-financial information • Advisory vote, aligned with our proven approach 2) C
Slide 43: Say on Climate: Third Climate Report for Advisory Vote
SAY ON CLIMATE HOLCIM PUBLISHED ITS 3RD CLIMATE REPORT FOR AN ADVISORY VOTE • In 2023, our Chairman of the Board of Directors conducted extensive engagement activities on SAY ON CLIMATE climate strategy and reporting with the Holcim shareholders • Shareholders’ feedback will be taken into considerat
Slide 44: Say on Climate: Shareholder Engagement
SAY ON CLIMATE SHAREHOLDER ENGAGEMENT Climate issues are addressed at the highest level of the organization by the Board of SAY ON CLIMATE Directors and the Executive Committee, which have fully committed to transforming Holcim into the Global Leader in innovative and sustainable building solutions
Slide 45: Holcim
HOLCIM