Slide 1: FY 2021 Results
The Spheres Seattle, Amazon HQ Built with ECOPlanet solution with an 80% lower CO2 footprint FY 2021 RESULTS JAN JENISCH | CEO GÉRALDINE PICAUD | CFO FEBRUARY 25, 2022
Slide 2: Highlights and Key Developments
01. HIGHLIGHTS AND KEY DEVELOPMENTS JAN JENISCH | CHIEF EXECUTIVE OFFICER The Spheres Seattle, Amazon HQ Newwith Built CAPECOPlanet Group Headquarters, solution withMilan an 80% lower CO2 footprint
Slide 3: 2021 Highlights
2021 HIGHLIGHTS RECORD RESULTS, STRATEGY 2022 ACHIEVED ONE YEAR IN ADVANCE Record FY 2021 Net Sales growth of Accelerating the expansion of Solutions & Products with 11.3% LFL, record FY 2021 Recurring the acquisitions of Firestone, Malarkey & EBIT growth of 25.7% LFL PRB Record EPS1 ofCHF 3.98 per
Slide 4: Strategy 2022 Targets Achieved One Year in Advance
STRATEGY 2022 TARGETS ACHIEVED ONE YEAR IN ADVANCE STRATEGY 2022 2021 NET 3%-5% LFL P.A. +11.3% LFL SALES RECURRING EBIT AT LEAST 7% LFL P.A. +25.7% LFL CASH CONVERSION > 40% 50% ROIC > 8% 8.9% LEVERAGE BELOW 2x 1.4x 4
Slide 5: Expansion of Solutions & Products
EXPANSION OF SOLUTIONS & PRODUCTS ACCELERATING GROWTH TO REACH 30% OF GROUP SALES BY 2025 NET SALES BY SEGMENT Solutions & Products 8% Aggregates 13% 12% 30% 11% Cement 2020 2021 TARGETIN TARGET 60% 20% 57% 2025 2025 19% Ready-Mix → 2021 includes 9 months of Firestone Building Products → Malarkey Ro
Slide 6: Acquiring Businesses with Double Digit Growth
EXPANSION OF SOLUTIONS & PRODUCTS ACQUIRING BUSINESSES WITH DOUBLE DIGIT GROWTH FIRESTONE BUILDING MALARKEY ROOFING PRB Group PRODUCTS PRODUCTS The market and technology A proven growth engine in the Biggest independent specialty leader in roofing products and highly profitable and growing US buildi
Slide 7: Solutions and Products Becomes the Biggest Segment in the US
EXPANSION OF SOLUTIONS & PRODUCTS SOLUTIONS AND PRODUCTS BECOMES THE BIGGEST SEGMENT IN THE US NET SALES BY SEGMENT IN THE US Solutions & Products Cement 10% Aggregates 34% 18% 2020 with 2022E 42% 53% USD 4.3 bn Firestone & > USD 7 bn Malarkey 18% 12% Ready-Mix 12% 7
Slide 8: Portfolio Update 2021
PORTFOLIO UPDATE 2021 ACCELERATING EXPANSION OF SOLUTIONS & PRODUCTS Bolt-on acquisitions Xtree France / 3D printing Cemex Solutions & Products France / AGG & RMX Heinrich Teufel Firestone Germany / AGG & RMX USA Roofing systems Buhler Switzerland / AGG Malarkey Polcalc USA Poland / Granulated Roofi
Slide 9: Accelerating Green Growth: Strengthening Our Leadership
ACCELERATING GREEN GROWTH FURTHER STRENGTHENING OUR LEADERSHIP Holcim announced Holcim launched Industry 1st 2050 Partnership with ENI to advance its First Sustainability-linked bonds Net-zero targets validated carbon capture portfolio in the CHF market by SBTi Explore breakthrough carbon capture st
Slide 10: Global Roll Out of ECOPact
ACCELERATING GREEN GROWTH GLOBAL ROLL OUT OF ECOPACT Launched in THE GREEN CONCRETE 24 markets Ta r g e t 2021 2025 > 1 M m3 Ready Mix 25% delivered of Ready Mix > 600 RMX trucks per day Net Sales 10
Slide 11: Scaling Up Circular Construction
ACCELERATING GREEN GROWTH SCALING UP CIRCULAR CONSTRUCTION Waste recycled increase of +17% in 2021 Target 2030 100 MT 2021 2020 54 MT 46 MT The world's first cement with 20% construction & demolition waste inside Out of which… 6.6 Mt of Construction & Demolition Waste recycled into new products > 1’
Slide 12: Financial Highlights
H1 2021 02. FINANCIAL HIGHLIGHTS GÉRALDINEPICAUD GÉRALDINE PICAUD| CHIEF | CHIEF FINANCIAL FINANCIAL OFFICER OFFICER Gasholders Renovation, King's Cross, London Built with Ductal® Ultra High Performance Concrete
Slide 13: 2021 Performance Highlights
2021 PERFORMANCE HIGHLIGHTS RECORD RESULTS, STRATEGY 2022 ACHIEVED ONE YEAR IN ADVANCE NET RECURRING EPS2 FREE CASH SALES EBIT FLOW3 CHF CHF 3’264 m 1 1 +11.3% +5.6% VS 2019 +25.7% +24.2% VS 2019 3.98 PER SHARE CHF 26’834 m CHF 4’612 m +30% Cash conversion: 50% 1 Variance on a like for like basis |
Slide 14: 2021 Volumes Development
2021 VOLUMES DEVELOPMENT VOLUMES GROWTH IN ALL REGIONS AND BUSINESS SEGMENTS +4% LFL 0% +3% M ton GROUP +8% M m3 vs 2020 +4% 46.0 115.9 20.0 +3% CEM AGG RMX +4% 20.6 108.8 10.4 +5% Europe +11% CEM AGG RMX North America +4% +23% +9% +12% +7% 36.2 4.2 3.5 +6% CEM AGG RMX 69.7 34.6 7.9 Middle East CEM
Slide 15: 2021 Net Sales Bridge
2021 NET SALES BRIDGE RECORD NET SALES GROWTH +11.3% LFL -509 26’834 +26’722 +2’606 23’142 +1’594 FY 2019 FY 2020 Scope LFL FX FY 2021 +16.0% CHF m 15
Slide 16: 2021 Recurring EBIT Bridge
2021 RECURRING EBIT BRIDGE RECORD RECURRING EBIT GROWTH OF 25.7% LFL +25.7% LFL +8 +15 -161 4’612 +317 4’102 +603 3’676 +154 FY 2019 FY 2020 Scope Volume Price over cost JVs contribution Depreciation FX FY 2021 +25.5% CHF m 16
Slide 17: 2021 Net Sales and Recurring EBIT by Segment
2021 NET SALES AND RECURRING EBIT BY SEGMENT OVER-PROPORTIONAL RECURRING EBIT GROWTH LFL IN ALL SEGMENTS CEMENT AGGREGATES RMX SOLUTIONS & PRODUCTS 1 CHF m 16’399 4’037 5’167 3’612 Net Sales +13.3% LFL +6.1% LFL +8.8% LFL +90.8% (+10.1% LFL) Recurring EBITDA 4’954 921 295 392 after leases +14.2% LFL
Slide 18: 2021 Regional Performance
2021 REGIONAL PERFORMANCE OVER-PROPORTIONAL RECURRING EBIT GROWTH LFL IN ALL REGIONS +9.2% +4.6% +13.5% +3,6% +14.0% +30.2% +16.5% +38.9% +17.7% +37.9% +19.9% 7’316 1’333 2’611 865 8’032 1’114 2’430 388 5’947 1’330 North America Latin America Europe Middle East Africa Asia Pacific NET SALES RECURRIN
Slide 19: North America
NORTH AMERICA OUTSTANDING PERFORMANCE IN Q4 Q4 2021 FY 2021 CHF m Net Sales1 2’041 7’316 +11.8% LFL +4.6% LFL Recurring EBIT 384 1’333 +21.5% LFL +16.5% LFL 1 Net Sales to external customers → Good market growth in the region → Volumes growth across all business segments → Positive price over cost i
Slide 20: Latin America
LATIN AMERICA STRONG PROFITABLE GROWTH BD Bacatá Building, Colombia Q4 2021 FY 2021 Built with green concrete CHF m Net Sales1 667 2’611 +14.8% LFL +30.2% LFL Recurring EBIT 202 865 +6.2% LFL +38.9% LFL 1 Net Sales to external customers → Good market demand driven by residential and infrastructure i
Slide 21: Europe
EUROPE DELIVERING HIGHER PROFITABILITY Tertiary Forest, Aubervilliers, France Q4 2021 FY 2021 Built with Hydromedia permeable concrete CHF m Net Sales1 1’990 8’032 +7.2% LFL +9.2% LFL Recurring EBIT 232 1’114 -4.2% LFL +17.7% LFL 1 Net Sales to external customers → Good demand overall in Western Eur
Slide 22: Middle East Africa
MIDDLE EAST AFRICA STRONG PERFORMANCE Q4 2021 FY 2021 CHF m Net Sales1 615 2’430 +15.2% LFL +14.0% LFL Recurring EBIT2 88 388 +11.5% LFL +37.9% LFL 1 Net Sales to external customers 2 Contribution from share of net income from JVs: CHF 61 m in 2021 vs. CHF 48 m in 2020 → Strong market growth in Nige
Slide 23: Asia Pacific
ASIA PACIFIC EXCELLENT PERFORMANCE IN 2021 Q4 2021 FY 2021 CHF m Net Sales1 1’545 5’947 +2.7% LFL +13.5% LFL Recurring EBIT2 310 1’330 -14.1% LFL +19.9% LFL 1 Net Sales to external customers 2 Contribution from share of net income from JVs: CHF 387 m in 2021 vs. CHF 394 m in 2020 → Strong performanc
Slide 24: 2021 Financial Performance
2021 FINANCIAL PERFORMANCE EARNINGS PER SHARE1 AT CHF 3.98, UP 30% CHF m 2020 2021 Before impairment & Before impairment & Change divestments divestments Net Sales 23’142 26’834 3’692 RECURRING EBITDA after leases 5’616 6’562 946 Depreciation & amortization -1’940 -1’949 -9 RECURRING EBIT 3’676 4’61
Slide 25: 2021 Free Cash Flow
2021 FREE CASH FLOW1 RECORD FREE CASH FLOW OF CHF 3’264 M CHF m 2020 2021 Change RECURRING EBITDA after leases 5’616 6’562 946 Right of use assets 360 370 10 Change in net working capital 435 -40 -475 Income taxes paid -715 -828 -112 Net financial expenses paid & FX -534 -423 111 Share of profit of
Slide 26: Free Cash Flow
FREE CASH FLOW THIRD CONSECUTIVE YEAR ABOVE CHF 3 BN CHF m CHF 9.5 Bn 3’249 3’264 3’019 CHF 5 Bn 1’660 1’685 1’703 1 1 1 2016 2017 2018 2019 2020 2021 1 After leases 26
Slide 27: Net Financial Debt Bridge
NET FINANCIAL DEBT BRIDGE STRONG BALANCE SHEET CHF m +139 -24 9’977 +1’222 8’483 -3’264 +3’421 NFD 1 FCF 2 Disposals / acquisitions Group Non-controlling Others NFD 1 Dec 2020 shareholders interests Dec 2021 1 Excluding hybrid bond Dividends 2 After leases 27
Slide 28: Leverage
LEVERAGE LEVERAGE TARGET OVERACHIEVED, CONTINUED NET DEBT LEVERAGE IMPROVED TO 1.4X FINANCIAL STRENGTH NFD / Recurring EBITDA 2.4x 2.2x 1.5x 1.4x 1.4x 1 1 2017 2018 2019 2020 2021 1 Pre IFRS 16 28
Slide 29: Return on Invested Capital
RETURN ON INVESTED CAPITAL RETURN ON INVESTED CAPITAL ON TRACK RECORD ROICWITH 2022 TARGET OF 8.9% Return on Invested Capital 8.9% 7.4% 7.4% 6.5% 5.8% 1 1 2017 2018 2019 2020 2021 1 Pre IFRS 16 29
Slide 30: 2021 Dividend
2021 DIVIDEND DIVIDEND OF CHF 2.2 PER SHARE PROPOSED → 10% increase in dividend, equivalent to CHF 2.2 per share to be proposed at AGM on May 4, 2022 → Dividend to be paid out of foreign capital contribution reserve and is not subject to Swiss withholding tax Miro Office Building, Bucharest Built wi
Slide 31: Sustainability KPIs
SUSTAINABILITY KPIS PROGRESSING TOWARDS OUR SUSTAINABILITY TARGETS CLIMATE CIRCULAR ENVIRONMENT PEOPLE & ENERGY ECONOMY CO2 WASTE WATER SOCIAL LEAD METRIC REDUCED RECYCLED W I THDRAW N I N I T I AT I V E S [ kg CO2/t cementitious ] [ Mt ] [ l fresh water / tcem ] [ Total spend / CHF m ] PERFORMANCE
Slide 32: Outlook and Guidance 2022
H1 2021 03. OUTLOOK AND GUIDANCE 2022 JAN JENISCH | CHIEF EXECUTIVE OFFICER JAN JENISCH | CHIEF EXECUTIVE OFFICER JAN JENISCH | CHIEF EXECUTIVE OFFICER Free Waldorf School, Germany Built with Firestone's RubberGard EPDM
Slide 33: Outlook and Guidance 2022
OUTLOOK AND GUIDANCE 2022 GROWTH MOMENTUM TO CONTINUE IN ALL REGIONS Growth momentum to continue in all regions Double digit Net Sales growth in Solutions & Products Accelerated progress towards 2025 sustainability targets Growth in Net Sales of above 6% LFL Positive growth in Recurring EBIT LFL Fre
Slide 34: Appendix
H1 2021 04. APPENDIX JAN JENISCH | CHIEF EXECUTIVE OFFICER JAN JENISCH | CHIEF EXECUTIVE OFFICER Elliot Skate Park, USA Built with green concrete and colored concrete
Slide 35: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES NET INCOME 2021 Impairment & 2021 Before impairment & divestments divestments Reported CHF m Net Sales 26’834 26’834 RECURRING EBIT 4’612 4’612 Restructuring, litigation and others -194 -194 Impairment of operating assets 0 -17 -17 OPERATING PROFIT (EBIT) 4’419 -1
Slide 36: Upcoming Events
UPCOMING EVENTS APRIL 22, 2022 Q1 2022 Trading Update MAY 4, 2022 Annual General Meeting JULY 27, 2022 Half-Year 2022 Results OCTOBER 28, 2022 Q3 2022 Trading Update 36
Slide 37: Disclaimer
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Slide 38: Holcim
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