Holcim Ltd · SIX:HOLN
Holcim — Investor Day (November 2021)
36 slides from Holcim's investor day presentation, Nov 18, 2021
Slide 1: Strategy 2025 – Accelerating Green Growth
The Spheres Seattle, ECOPlanet Cement STRATEGY 2025 – “ACCELERATING GREEN GROWTH” CAPITAL MARKETS DAY 2021 – 18 NOVEMBER 2021 JAN JENISCH, CEO
Slide 2: 2021 Capital Markets Day Agenda and Speakers
2021 CAPITAL MARKETS DAY ACCELERATING GREEN GROWTH Agenda Speakers 10:00 Basel field trip • Introduction to Holcim’s business in Switzerland • Simon Kronenberg • Site visit (Birsfelden exhibition, boat tour) • Holcim Switzerland team 13:00 Lunch 14:00 Strategy 2025 – Accelerating Green Growth • Jan
Slide 3: Strategy 2025 – Accelerating Green Growth
The Spheres Seattle, ECOPlanet Cement STRATEGY 2025 – “ACCELERATING GREEN GROWTH” CAPITAL MARKETS DAY 2021 – 18 NOVEMBER 2021 JAN JENISCH, CEO
Slide 4: Strategy 2022 – Building for Growth: We delivered what we promised
STRATEGY 2022 – “BUILDING FOR GROWTH” WE DELIVERED WHAT WE PROMISED ONE YEAR IN ADVANCE STRATEGY 2022 2021 OUTLOOK NET 3% - 5% LFL SALES P.A. AT LEAST RECURRING EBIT 7% LFL P.A. CASH CONVERSION > 40% ROIC > 8% LEVERAGE BELOW 2x 4
Slide 5: A strong foundation for our next chapter of growth
STRATEGY 2022 – “BUILDING FOR GROWTH” A STRONG FOUNDATION FOR OUR NEXT CHAPTER OF GROWTH Lean and agile OPERATING MODEL with fully EMPOWERED P&L LEADERS in the markets Strong financial and operational performance with OVER-PROPORTIONAL EBIT GROWTH and HIGH CASH CONVERSION SUSTAINABILITY and ESG at t
Slide 6: Our next chapter of growth
OUR NEXT CHAPTER OF GROWTH BECOME THE GLOBAL LEADER IN INNOVATIVE & SUSTAINABLE BUILDING SOLUTIONS FROM: THE GLOBAL LEADER IN BUILDING MATERIALS TO: THE GLOBAL LEADER in INNOVATIVE and SUSTAINABLE building solutions 6
Slide 7: Six megatrends driving construction
SIX MEGATRENDS DRIVING CONSTRUCTION OUR MARKETS HAVE NEVER BEEN AS ATTRACTIVE POPULATION URBANIZATION AND Higher demand for Increased demand for INNOVATION DRIVING More REPAIR & GROWTH MEGACITIES SUSTAINABLE BETTER LIVING BUILDING REFURBISHMENT From ~8 billion today to Approximately 2.5 billion CONS
Slide 8: The opportunities we have are enormous and we are ready to capture them
THE OPPORTUNITIES WE HAVE ARE ENORMOUS AND WE ARE READY TO CAPTURE THEM AT THE FOREFRONT OF LEADING THE CIRCULAR MOVING CLOSER TO CREATING SUPERIOR INNOVATIVE & GREEN ECONOMY & REDUCING CUSTOMERS WITH STAKEHOLDER VALUE BUILDING SOLUTIONS OUR CARBON FOOTPRINT SOLUTIONS & PRODUCTS Making green buildin
Slide 9: Strategy 2025 – Accelerating Green Growth
STRATEGY 2025 – “ACCELERATING GREEN GROWTH” TO BECOME THE GLOBAL LEADER IN INNOVATIVE & SUSTAINABLE BUILDING SOLUTIONS Expanding Leading in Delivering Accelerating SOLUTIONS & INNOVATION & SUPERIOR GROWTH PRODUCTS SUSTAINABILITY PERFORMANCE 9
Slide 10: Accelerating Growth
ACCELERATING GROWTH Striatus Bridge, 3D Printed with Tector, Venice, Italy
Slide 11: Deliver profitable above market growth across our businesses
ACCELERATING GROWTH DELIVER PROFITABLE ABOVE MARKET GROWTH ACROSS OUR BUSINESSES Capitalize on MEGATRENDS in construction Accelerate growth in SOLUTIONS & PRODUCTS to reach 30% OF GROUP NET SALES by 2025 Continue successful BOLT-ON ACQUISITIONS strategy Accelerate Growth in our AGGREGATES and READY
Slide 12: Bolt-on acquisitions
BOLT-ON ACQUISITIONS ACCELERATE OUR SUCCESSFUL BOLT-ON ACQUISITION STRATEGY • 28 Bolt-on acquisitions completed since 2018 • Strong synergy delivery leading to higher EXAMPLE: SCHOTTER TEUFEL growth and margins DESCRIPTION SYNERGIES • Strengthens our footprint in local markets and • 1x Aggregates qu
Slide 13: Scaling up digital across our customers and operations
SCALING UP DIGITAL ACROSS OUR CUSTOMERS AND OPERATIONS Our Customers Our Logistics Our Plants of Tomorrow Digital E-Ordering Logistics Toolbox TA R G E T S TA R G E T S TA R G E T S 2021 2025 2021 2025 2021 2025 50% 80% 54 countries in All Markets & 30% 80% Product Lines of all sites of Cement Sales
Slide 14: Expanding Solutions & Products
EXPANDING SOLUTIONS & PRODUCTS Apple Park, EPDM, Firestone, Cupertino, USA
Slide 15: Solutions & Products: expanding in most attractive market segments
SOLUTIONS & PRODUCTS EXPANDING IN MOST ATTRACTIVE MARKET SEGMENTS Accelerate growth in Solutions & Products to reach 30% of Group Net Sales by 2025 Breakthrough acquisition in roofing systems delivering above market growth and synergies Strategic investments & acquisitions to double roofing systems
Slide 16: Solutions & Products: attractive market segments
SOLUTIONS & PRODUCTS ATTRACTIVE MARKET SEGMENTS WITH ABOVE MARKET GROWTH & PRICING POWER Continuous growth through sustainability & innovation Growing and resilient demand in repair and refurbishment Increased demand of value added products through system and specification selling Technologies that
Slide 17: Solutions & Products: accelerate growth to reach 30% of group sales by 2025
SOLUTIONS & PRODUCTS ACCELERATE GROWTH TO REACH 30% OF GROUP SALES BY 2025 NET SALES BY SEGMENT 8% 15% 12% 30% 11% IN 2020 2021 TARGETININ TARGET 56% Proforma* 60% 20% 2025 2025 19% Cement Solutions & Products Aggregates Ready Mix 17 *2021 proforma includes 12 months of Firestone
Slide 18: Leading in roofing systems
LEADING IN ROOFING SYSTEMS NEW PLATFORM DELIVERING SUSTAINABLE GROWTH AND SYNERGIES HIGHLY MOTIVATED TEAM, LAUNCHED GACO INTO winning in the market, LATIN AMERICA starting with delivering on price over cost Mexico, Colombia, and and business synergies Ecuador, fully leveraging First 6 months achieve
Slide 19: Solutions & Products: accelerate growth to reach 30% of group net sales
SOLUTIONS & PRODUCTS ACCELERATE GROWTH TO REACH 30% OF GROUP NET SALES BY 2025 • Strong growth in roofing market driven by re-roofing, increasing demand, regulations for thermal performance and expanding lifespan of roofs • Ambition to double Net Sales to USD 4 billion by 2025 in roofing systems › S
Slide 20: Leading in Innovation & Sustainability
LEADING IN INNOVATION & SUSTAINABILITY Thammasat University, UltraPly TPO, Firestone, Bangkok, Thailand
Slide 21: ECOPact: industry's largest range of green concrete
AT THE FOREFRONT OF GREEN BUILDING SOLUTIONS WITH ECOPACT INDUSTRY’S LARGEST RANGE OF GREEN CONCRETE ADDRESSING GREEN DEMAND Launched in 24 Markets • Low carbon concrete with CO2 reduction of 30% to 100% • Largest range of branded Green Concrete • High performance, sustainable & circular designed fo
Slide 22: Our journey to net zero
OUR JOURNEY TO NET ZERO FIRST COMPANY WITH 2050 TARGETS APPROVED BY SBTI CLINKER FACTOR AND ALTERNATIVE Maximize usage of alternative fuels and mineral FUELS components in cement Expanding wind turbines, solar panel farms, waste RENEWABLE ENERGY heat recovery systems GREEN PRODUCTS Accelerating Gree
Slide 23: Innovating to accelerate green growth
AT THE FOREFRONT OF GREEN BUILDING SOLUTIONS INNOVATING TO ACCELERATE GREEN GROWTH Low Carbon Circular Economy Build More with Less Buildings Efficiency ECO PACT ECO PL ANET SUST ENO AG G NEO DY NAM AX DUCT AL FIREST ONE AIRI UM The Green The Green cement Cement with Recycled The Ultimate Ultra ligh
Slide 24: Leader in circular economy
LEADER IN CIRCULAR ECONOMY OUR INTEGRATED BUSINESS MODEL RECYCLING OVER 46 MILLION TONS Construction & Demolition Addressing refurbishment markets Waste High quality aggregate from 100% recycled content Extend lifetime Cool roofs, green roofs extending of buildings lifetime of roofing membranes and
Slide 25: Continued progress in ESG ratings
CONTINUED PROGRESS IN ESG RATINGS RECOGNITION OF ESG EFFORTS BY GLOBAL RATING AGENCIES Climate 65 24 A A 21 21 A- BBB BBB BBB ANNOUNCED 43 MEASURED 42 38 NOT NOT B 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 25 Note: Systainalytics Risk score | Sustainalytics chan
Slide 26: Sustainability targets 2025
SUSTAINABILITY TARGETS 2025 ACCELERATING GREEN GROWTH Circular Construction Demolition Waste Green Capex Economy 25% 75 10 0.5 % OF READY MIX MILLION TONS MILLION TONS BILLION CHF NET SALES Fresh Water Sustainable Diversity Climate Withdrawal Financing -25% +40% 520 > 40% MORE WOMEN IN LINKED TO LIT
Slide 27: Delivering Superior Performance
DELIVERING SUPERIOR PERFORMANCE Shopping Center Austria, Firestone RubberGard EPDM
Slide 28: Cement: leading the green transformation
CEMENT LEADING THE GREEN TRANSFORMATION • Leading market positions with strong profitability and cash flows • Accelerate our Solutions and Green Products offering across all markets • First company in the industry with 2050 targets approved by SBTi • Innovative technologies to lead decarbonization a
Slide 29: Aggregates
AGGREGATES ATTRACTIVE BUSINESS FUNDAMENTALS WITH STRONG GROWTH & PROFITABILITY • Excellent business fundamentals from above inflation pricing, increasing regulations, limited import threat and limited substitutes • Focus established with dedicated P&L leaders driving growth and performance • Continu
Slide 30: Ready Mix Concrete: the green concrete company
READY MIX CONCRETE “THE GREEN CONCRETE COMPANY” • Concrete is the best and most sustainable building material based on its durability, strength, design, safety, cost effectiveness & links to circular economy • Accelerate our green products offering across all local markets • Ensure innovation & prod
Slide 31: Solutions & Products: build up market segments
SOLUTIONS & PRODUCTS BUILD UP MARKET SEGMENTS WITH ABOVE MARKET GROWTH • Accelerate growth in Solutions & Products to reach 30% of Group Net Sales by 2025 • Breakthrough acquisition in roofing systems delivering above market growth and synergies • Strategic investments and acquisitions to double roo
Slide 32: Empowering our people
EMPOWERING OUR PEOPLE A BASIS FOR A HIGH PERFORMANCE ORGANIZATION GEARED FOR GROWTH TALENT & SUCCESSION DIVERSITY & INCLUSION LEARNING FOR GROWTH PERFORMANCE CULTURE AM B I T I O N Talent oriented organization Improved Diversity and High performance organization based on the empowerment established
Slide 33: Strategy 2025 Targets
STRATEGY 2025 TARGETS Bosco Verticale Milan, Green Concrete Holcim Italy
Slide 34: Strategy 2025 – Targets
STRATEGY 2025 – TARGETS ACCELERATING GREEN GROWTH AND DELIVERING SUPERIOR PERFORMANCE Accelerate Growth in Net Sales Recurring Solutions & Products Growth EBIT Growth 30% 3% - 5% Over Proportional TO NET SALES A N N U A L LY IN % OF GROUP NET SALES G R O W T H A N N U A L LY Sustainability Cash Net
Slide 35: Sustainability targets 2025
SUSTAINABILITY TARGETS 2025 ACCELERATING GREEN GROWTH Circular Construction Demolition Waste Green Capex Economy 25% 75 10 0.5 % OF READY MIX MILLION TONS MILLION TONS BILLION CHF NET SALES Fresh Water Sustainable Diversity Climate Withdrawal Financing -25% +40% 520 > 40% MORE WOMEN IN LINKED TO LIT
Slide 36: Holcim
HOLCIM