Holcim Ltd · SIX:HOLN
Holcim — Investor Day (November 2023)
36 slides from Holcim's investor day presentation, Nov 7, 2023
Slide 1: European Decarbonization as a Growth Opportunity
Recygénie, France The world’s first fully recycled concrete building with ECOCycle® inside Winner of Circular Transition Award DECARBONIZATION DAY 2023 EUROPEAN DECARBONIZATION AS A GROWTH OPPORTUNITY ZURICH, SWITZERLAND NOVEMBER 7TH, 2023 MILJAN GUTOVIC - HEAD OF EUROPE
Slide 2: Content
EUROPEAN DECARBONIZATION AS A GROWTH OPPORTUNITY CONTENT 01 Strategy 2025 – Accelerating Green Growth 02 Mega Trends Shaping European Construction 03 Industry-Leading Decarbonization Roadmap 04 Circularity as a Driver of Profitable Growth 05 Meeting Customers' Sustainability Needs 06 Sustainable Sol
Slide 3: Strategy 2025 – Accelerating Green Growth
STRATEGY 2025 – ACCELERATING GREEN GROWTH DELIVERING ON STRATEGY 2025 “ACCELERATING GREEN GROWTH” GROWTH X XXXXXXXXXXXX SUPERIOR PERFORMANCEXXX LEADER IN SUSTAINABILITY • Rapid expansion in Solutions & • Record results in 2022 • Accelerated reduction of CO2 Products per Net Sales • New level of sust
Slide 4: Europe – Record Recurring EBIT
EUROPE – RECORD RECURRING EBIT REACHING A NEW LEVEL OF PROFITABILITY Europe - 9M 2023 Performance Growth Enablers Record EBIT Margin driven by Shift from Volume to Value Europe Decarbonization Initiatives driving profitable growth +8.9% ECOPact and ECOPlanet becoming Delivering multi-billion CHF bra
Slide 5: Region Europe's Ambition 2030
REGION EUROPE’S AMBITION 2030 DECARBONIZATION UNLOCKING THE NEXT LEVEL OF PROFITABLE GROWTH Ambition 2030 above 4% Net Sales Organic Growth annually Target 2026 above 8% EBIT Organic Growth annually CHF 10+ Billion Net Sales CHF 1.6+ Billion 2022 EBIT CHF 8.4 Billion Net Sales CHF 1.1 Billion EBIT 5
Slide 6: 02 Mega Trends Shaping European Construction
EUROPEAN DECARBONIZATION AS A GROWTH OPPORTUNITY CONTENT 01 Strategy 2025 – Accelerating Green Growth 02 Mega Trends Shaping European Construction 03 Industry-Leading Decarbonization Roadmap 04 Circularity as a Driver of Profitable Growth 05 Meeting Customers' Sustainability Needs 06 Sustainable Sol
Slide 7: Mega Trends Shaping European Construction
MEGA TRENDS SHAPING EUROPEAN CONSTRUCTION TRENDS & ENABLERS SHAPING THE FUTURE OF THE CONSTRUCTION SECTOR Trends Enablers Climate Change Regulation & Policy Need for climate resilient infrastructure Revised Building Codes EU Taxonomy Emission Trading System Scarcity of Resources Transformation into
Slide 8: 03 Industry-Leading Decarbonization Roadmap
EUROPEAN DECARBONIZATION AS A GROWTH OPPORTUNITY CONTENT 01 Strategy 2025 – Accelerating Green Growth 02 Mega Trends Shaping European Construction 03 Industry-Leading Decarbonization Roadmap 04 Circularity as a Driver of Profitable Growth 05 Meeting Customers' Sustainability Needs 06 Sustainable Sol
Slide 9: Industry-Leading Decarbonization Roadmap
INDUSTRY-LEADING DECARBONIZATION ROADMAP LEADING PROFITABLE GROWTH GREEN OPERATIONS BUILDING BETTER Decarbonizing Holcim WITH LESS from quarry to lorry Decarbonizing construction with ECOPact and ECOPlanet CIRCULAR MAKING BUILDINGS CONSTRUCTION SUSTAINABLE Building new from old Decarbonizing cities
Slide 10: Decarbonizing Holcim's Operations from Quarry to Lorry
INDUSTRY-LEADING DECARBONIZATION ROADMAP DECARBONIZING HOLCIM’S OPERATIONS FROM QUARRY TO LORRY Key decarbonization drivers Energy [Decarbonized Power] Formulation [Alternative Raw Material] Carbon Capture SCOPE 1 Energy [Alternative Fuel] Formulation [Mineral Components] Green Mobility 10
Slide 11: Most Ambitious CO2 Reduction Target in the Industry
EUROPE - INDUSTRY-LEADING DECARBONIZATION ROADMAP MOST AMBITIOUS CO2 REDUCTION TARGET IN THE INDUSTRY Europe Scope 1: Specific NET Emissions (kg CO2 / t cementitious) 11
Slide 12: Formulation Is Leading Innovation for Low Carbon Products
INDUSTRY-LEADING DECARBONIZATION ROADMAP FORMULATION IS LEADING INNOVATION FOR LOW CARBON PRODUCTS Growth Enablers Clinker Factor in Europe (% clinker per ton of cement) Mineral Components to increase substitution of clinker in cement Foster Innovation to sustain the industry leadership position in
Slide 13: Formulation: Rising Share of Innovative Mineral Components
INDUSTRY-LEADING DECARBONIZATION ROADMAP FORMULATION: RISING SHARE OF INNOVATIVE MINERAL COMPONENTS Mineral Components in Europe (million tons) Growth Enablers Construction Demolition Materials Upcycling fines as cementitious material in low carbon cement Innovative Mineral Components Calcined Clay,
Slide 14: Energy: Leading the Transition to Alternative Fuels
INDUSTRY-LEADING DECARBONIZATION ROADMAP ENERGY: LEADING THE TRANSITION TO ALTERNATIVE FUELS Growth Enablers Thermal Substitution Rate in Europe (% vs. Traditional Fuels) Alternative Fuels to increase substitution of fossil fuels in the clinker production process Foster Innovation to increase the Bi
Slide 15: Alternative Fuels Substitution Above 80% Is Already a Reality
INDUSTRY-LEADING DECARBONIZATION ROADMAP ENERGY: ALTERNATIVE FUELS SUBSTITUTION ABOVE 80% IS ALREADY A REALITY More than 3 million tons of alternative fuels 98% processed in Europe in 2023 Austria - Retznei plant 94% Czech Rep - Cizcovice plant 37 Reception platforms 90% 14 Waste-to-fuel facilities
Slide 16: Grants Awarded for CCUS Projects by the EU Innovation Fund
INDUSTRY-LEADING DECARBONIZATION ROADMAP 6 GRANTS AWARDED FOR CCUS PROJECTS BY THE EU INNOVATION FUND EU INNOVATION FUND 6 GRANTS AWARDED FOR CARBON CAPTURE USAGE AND STORAGE (CCUS) Carbon2Business Go4ECOPlanet GO4ZERO KOdeCO eM-Rhône Olympus Lägerdorf, Germany Kujawy, Poland Obourg, Belgium Koromač
Slide 17: Europe Accelerating CCUS with Projects
INDUSTRY-LEADING DECARBONIZATION ROADMAP EUROPE ACCELERATING CCUS WITH 14 PROJECTS Growth Enablers 6 CCUS projects to go live before 2030 6 full-scale Carbon Capture Utilization & Storage (CCUS) projects across Europe will go live at Holcim before 2030 Holcim will capture 5 million tons CO2 p.a. in
Slide 18: Decarbonizing Holcim's Operations from Quarry to Lorry
INDUSTRY-LEADING DECARBONIZATION ROADMAP DECARBONIZING HOLCIM’S OPERATIONS FROM QUARRY TO LORRY Key decarbonization drivers Energy [Decarbonized Power] SCOPE 2 Formulation [Alternative Raw Material] Carbon Capture Energy [Alternative Fuel] Formulation [Mineral Components] Green Mobility SCOPE 3 18
Slide 19: Energy: Accelerating Shift to Decarbonized Power
INDUSTRY-LEADING DECARBONIZATION ROADMAP ENERGY: ACCELERATING SHIFT TO DECARBONIZED POWER Decarbonized Power in Europe (% of Consumption) Growth Enablers 2021 2025 2030 Power Purchase Agreements Traditional Power Bi-lateral green power contracts directly with the producer of decarbonized power Equit
Slide 20: Green Mobility: Working on Key Levers
INDUSTRY-LEADING DECARBONIZATION ROADMAP GREEN MOBILITY: WORKING ON 4 KEY LEVERS Green Mobility in Europe Moving to Low Dispatch Emission Trucks Optimization Moving to Rail & ECO-DRIVING Waterways (Fuel Efficiency) All measures combined drive the reduction of Scope 3 Emissions 2020 7 kg CO2 / t ceme
Slide 21: 04 Circularity as a Driver of Profitable Growth
EUROPEAN DECARBONIZATION AS A GROWTH OPPORTUNITY CONTENT 01 Strategy 2025 – Accelerating Green Growth 02 Mega Trends Shaping European Construction 03 Industry-Leading Decarbonization Roadmap 04 Circularity as a Driver of Profitable Growth 05 Meeting Customers' Sustainability Needs 06 Sustainable Sol
Slide 22: Europe Is Leading the Shift to Circular Construction
CIRCULARITY AS A DRIVER OF PROFITABLE GROWTH EUROPE IS LEADING THE SHIFT TO CIRCULAR CONSTRUCTION Growth Enablers Up to 100% construction demolition materials in concrete, cement and aggregates More than 6 million tons of recycled construction demolition materials in 2023E More than 1’000 truck load
Slide 23: ECOCycle: Leader in Upcycling Construction Demolition Materials
CIRCULARITY AS A DRIVER OF PROFITABLE GROWTH ECOCYCLE: LEADER IN UPCYCLING CONSTRUCTION DEMOLITION MATERIALS IN EUROPE Growth Enablers Construction and Demolition Materials (CDM) in Europe Volume Revenue Accelerating Circular Construction by 2030: in million tons in million CHF ● 150 ECOCycle circul
Slide 24: 05 Meeting Customers' Sustainability Needs
EUROPEAN DECARBONIZATION AS A GROWTH OPPORTUNITY CONTENT 01 Strategy 2025 – Accelerating Green Growth 02 Mega Trends Shaping European Construction 03 Industry-Leading Decarbonization Roadmap 04 Circularity as a Driver of Profitable Growth 05 Meeting Customers' Sustainability Needs 06 Sustainable Sol
Slide 25: Fast Growing Multi-Billion Brands Delivering Premium Margins
MEETING CUSTOMERS' SUSTAINABILITY NEEDS FAST GROWING MULTI-BILLION BRANDS DELIVERING PREMIUM MARGINS ECOPACT ECOPACT in Europe A “One-Billion” Brand in 2023 >55% of Ready-Mix Net Sales by 2030 19% of Group Ready-Mix Net Sales in 9M 2023 Launch ECOPLANET ECOPLANET in Europe A “Two-Billion” Brand in 2
Slide 26: Green Price Premium Becomes Profitability Driver in Europe
MEETING CUSTOMERS' SUSTAINABILITY NEEDS GREEN PRICE PREMIUM BECOMES PROFITABILITY DRIVER IN EUROPE 2020 2025 2030 2035 ECOPlanet Zero Rise of ECOPlanet ECOPlanet Zero complements ECOPlanet ECOPlanet Zero Market Size 8mt sold ECOPlanet Zero ECOPlanet Price Premium ECOPlanet ~5% ECOPlanet Zero ~20% to
Slide 27: 06 Sustainable Solutions & Products
EUROPEAN DECARBONIZATION AS A GROWTH OPPORTUNITY CONTENT 01 Strategy 2025 – Accelerating Green Growth 02 Mega Trends Shaping European Construction 03 Industry-Leading Decarbonization Roadmap 04 Circularity as a Driver of Profitable Growth 05 Meeting Customers' Sustainability Needs 06 Sustainable Sol
Slide 28: Expanding Solutions & Products in Europe
EXPANDING SOLUTIONS & PRODUCTS IN EUROPE FROM ADVANCED MORTARS TO ROOFING Roofing From commercial flat roofs to residential roofs Technologies and innovation offering sustainable and energy efficient solutions Insulation Thermal insulation systems Growing and resilient demand from repair and refurbi
Slide 29: Growing Over Proportionally with Innovative Product Portfolio
SUSTAINABLE SOLUTIONS & PRODUCTS GROWING OVER PROPORTIONALLY WITH INNOVATIVE PRODUCT PORTFOLIO Net Sales Ambition in Europe (CHF billion) Growth Enablers Regulatory push towards thermal efficiency & insulation will increase demand Government funding for sustainable repair and renovation Organic grow
Slide 30: 07 Region Europe - Leader in Green Growth
EUROPEAN DECARBONIZATION AS A GROWTH OPPORTUNITY CONTENT 01 Strategy 2025 – Accelerating Green Growth 02 Mega Trends Shaping European Construction 03 Industry-Leading Decarbonization Roadmap 04 Circularity as a Driver of Profitable Growth 05 Meeting Customers' Sustainability Needs 06 Sustainable Sol
Slide 31: Region Europe's Ambition 2030
REGION EUROPE’S AMBITION 2030 DECARBONIZATION UNLOCKING THE NEXT LEVEL OF PROFITABLE GROWTH Ambition 2030 above 4% Net Sales Organic Growth annually Target 2026 above 8% EBIT Organic Growth annually CHF 10+ Billion Net Sales CHF 1.6+ Billion 2022 EBIT CHF 8.4 Billion Net Sales CHF 1.1 Billion EBIT 3
Slide 32: Increasing Profit Margins and High Cash Generation
EUROPE DECARBONIZATION ROADMAP INCREASING PROFIT MARGINS AND HIGH CASH GENERATION Free Cash Flow over 2023-2030 (CHF) Cash Generation and Capex Increasing profit margins and high cash generation Around 70% of total CAPEX 2023-2030 is taxonomy-aligned invested to execute the full decarbonisation road
Slide 33: Industry-Leading Decarbonization Roadmap
INDUSTRY-LEADING DECARBONIZATION ROADMAP LEADING PROFITABLE GROWTH GREEN OPERATIONS BUILDING BETTER Decarbonizing Holcim WITH LESS from quarry to lorry Decarbonizing construction with ECOPact and 285kg ECOPlanet of Scope 1 emissions by 2030 >50% of Net Sales by 2030 >60% reduction of Scope 1 and 2 C
Slide 34: European Decarbonization as a Growth Opportunity
EUROPEAN DECARBONIZATION AS A GROWTH OPPORTUNITY INDUSTRY-LEADING DECARBONIZATION ROADMAP DRIVING PROFITABLE GROWTH Driving Profitable Growth in Europe with CHF 10+ Billion Net Sales and CHF 1.6+ Billion EBIT by 2026 with increasing EBIT Margins driven by Decarbonization Industry-leading Decarboniza
Slide 35: Disclaimer
DISCLAIMER By accessing this presentation (and the information contained herein), you agree to be bound by and liable for breach of the following terms and conditions: The presentation (and the information contained herein) is provided to you by Holcim Ltd (“Holcim”) or any of its subsidiaries or af
Slide 36: Holcim
HOLCIM