Slide 1: Q3 2023 Trading Update
Pictures in the presentation will be replaced this week Recygénie, Paris, France The world’s first fully recycled concrete building with ECOCycle® inside Q3 2023 TRADING UPDATE JAN JENISCH | CHAIRMAN AND CEO STEFFEN KINDLER | CFO OCTOBER 27, 2023
Slide 2: Highlights and Key Developments
01. HIGHLIGHTS AND KEY DEVELOPMENTS JAN JENISCH | CHAIRMAN AND CEO Alamein Downtown Towers, Egypt Built with ECOPlanet, the low-carbon cement
Slide 3: Q3 2023 Highlights: Continued Profitable Growth, Record Q3 Recurring EBIT
Q3 2023 HIGHLIGHTS CONTINUED PROFITABLE GROWTH, RECORD Q3 RECURRING EBIT +6.2% organic 9M Net Sales growth Roofing strategy – new ambition 2026 +13.8% organic 9M recurring EBIT growth USD 6.0+ bn Net Sales and USD 1.3+ bn EBIT Record Q3 recurring EBIT of CHF 1’600 m Accelerating climate action Recor
Slide 4: Q3 Recurring EBIT: Record EBIT in Q3
Q3 RECURRING EBIT RECORD EBIT IN Q3 REC. EBIT AND ORGANIC GROWTH In CHF m +14.1% +7.7% 1’600 +4.7% 1’551 1’534 +10.0% +4.5% 1’445 1’418 Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 Ellinikon, Europe’s largest urban regeneration project, Athens Riviera, Greece Built with ECOPact, the low-carbon concrete 4
Slide 5: Upgrading 2023 Recurring EBIT Margin Guidance
UPGRADING 2023 RECURRING EBIT MARGIN GUIDANCE ON TRACK TO DELIVER AN INDUSTRY-LEADING MARGIN OF ABOVE 17% REC. EBIT MARGIN In % +1.5 pp >17 17.7 17.9 >16 16.4 15.3 15.4 9M 19 9M 20 9M 21 9M 22 9M 23 Initial Upgraded 2023E Guidance 5
Slide 6: 2023 Growth Investments: 21 Value Accretive Acquisitions
2023 GROWTH INVESTMENTS 21 VALUE ACCRETIVE ACQUISITIONS SOLUTIONS & PRODUCTS AGGREGATES & READY-MIX ROOFING USA Indar Tezak Heavy Pioneer Landscape Duro-Last Mexico | Roofing Equipment | AGG Centers | AGG USA | Roofing systems & retail offering Canada Australia Westridge Vic Mix | RMX PASA® Quimexur
Slide 7: Holcim's Roofing Strategy: New Ambition 2026
HOLCIM’S ROOFING STRATEGY NEW ROOFING AMBITION DRIVEN BY SUPERIOR PROFITABLE GROWTH Ambition 2026 $6+ Billion Net Sales $1.3+ Billion EBIT 2021 Start of Holcim’s Roofing Strategy with the acquisition of Firestone Building Products 7
Slide 8: Accelerating Climate Action: 20% CO2 Reduction per Net Sales
ACCELERATING CLIMATE ACTION REDUCTION OF CO2 PER NET SALES OF 20% IN 9M 2023 CO2 PER MILLION OF NET SALES1 000 tons -43% -20% 5.1 4.7 3.7 2.9 2020 2021 2022 9M 2023 Essential Homes Research Project by Holcim and the Norman Foster Foundation 8 1 Scope 1 and 2 emissions Sustainable building made possi
Slide 9: Leader in Sustainability: Accelerating Climate Action
LEADER IN SUSTAINABILITY ACCELERATING CLIMATE ACTION ECOPACT ECOPLANET ACCELERATING CIRCULAR A “One-Billion” A “Two-Billion” CONSTRUCTION Brand in 2023 Brand in 2023 +17% in Recycled 19% of Ready-Mix Net Sales 19% of Cement Net Sales Construction Demolition in 9M 2023 in 9M 2023 Materials in 9M 2023
Slide 10: 6 Grants Awarded for CCUS Projects by the EU Innovation Fund
ACCELERATING CLIMATE ACTION 6 GRANTS AWARDED FOR CCUS PROJECTS BY THE EU INNOVATION FUND E U I N N O VAT I O N F U N D 6 G R A N T S AW A R D E D F O R C A R B O N C A P T U R E U S A G E A N D S TO R A G E ( C C U S ) Carbon2Business Go4ECOPlanet GO4ZERO KOdeCO eM-Rhône Olympus Lägerdorf, Germany K
Slide 11: Financial Highlights
02. FINANCIAL HIGHLIGHTS STEFFEN KINDLER | CHIEF FINANCIAL OFFICER Al Nahr, the Zeena tower, Beirut, Lebanon Built with Ductal®
Slide 12: 9M 2023 Net Sales Bridge
9M 2023 NET SALES BRIDGE ORGANIC NET SALES GROWTH OF +6.2% CHF m +6.2% 22’725 -2’014 1’234 -1’538 20’407 9M 2022 Acquisitions & Divestments Organic Growth FX 9M 2023 12
Slide 13: 9M 2023 Recurring EBIT Bridge
9M 2023 RECURRING EBIT BRIDGE ORGANIC EBIT GROWTH OF +13.8% CHF m +13.8% 3’724 -311 3’643 +472 -242 9M 2022 Acquisitions & Divestments Organic Growth FX 9M 2023 13
Slide 14: 9M 2023 Segment Performance
9M 2023 SEGMENT PERFORMANCE STRONG EARNINGS PROFILE WITH BROAD-BASED GROWTH DRIVERS North America Latin America Europe Asia Middle East & Africa Solutions & Products +8.9% +12.8% -11.9% +8.6% +3,6% +22.6% +19.8% +28.2% +16.9% +16.4% -21.0% 5’071 1’123 2’116 739 5’552 934 3’014 678 4’232 481 NET SALE
Slide 15: North America: Record Net Sales and Recurring EBIT
NORTH AMERICA RECORD NET SALES AND RECURRING EBIT 9M 2023 CHF m +12.8% Organic Net Sales1 5’071 +6.6% Recurring +19.8% Organic 1’123 EBIT +11.7% 1 Net Sales to external customers Excluding Net Sales and recurring EBIT of Solutions & Products Record Net Sales and 3 bolt-on acquisitions in recurring E
Slide 16: Latin America: Another Quarter of Profitable Growth
LATIN AMERICA ANOTHER QUARTER OF PROFITABLE GROWTH 9M 2023 CHF m +22.6% Organic Net Sales1 2’116 -4.4% Recurring +16.9% Organic 739 EBIT +2.0% 1 Net Sales to external customers Excluding Net Sales and recurring EBIT of Solutions & Products 13th consecutive quarter of Good progress in sustainability
Slide 17: Europe: Strong Increase in Profitability
EUROPE STRONG INCREASE IN PROFITABILITY 9M 2023 CHF m +8.9% Organic Net Sales1 5’552 +6.8% Recurring +28.2% Organic 934 EBIT +25.2% 1 Net Sales to external customers Excluding Net Sales and recurring EBIT of Solutions & Products Record recurring EBIT with 8 bolt-on acquisitions in strong margin expa
Slide 18: Asia Middle East & Africa: Strong Margin Expansion
ASIA MIDDLE EAST & AFRICA STRONG MARGIN EXPANSION 9M 2023 CHF m +8.6% Organic Net Sales1 3’014 -48.2% Recurring +16.4% Organic 678 EBIT2 -27.5% 1 Net Sales to external customers 2 Contribution from share of net income from JVs: CHF 202 m in 9M 2023 vs. CHF 213 m in 9M 2022 Excluding Net Sales and re
Slide 19: Solutions & Products: Margin Improvement in Q3
SOLUTIONS & PRODUCTS MARGIN IMPROVEMENT IN Q3 9M 2023 CHF m -11.9% Organic Net Sales1 4’232 -0.6% Recurring -21.0% Organic 481 EBIT -17.4% 1 Net Sales to external customers Net Sales and recurring EBIT of Solutions & Products are not anymore reported within the regions Healthy underlying market Marg
Slide 20: Solutions & Products: Strong Growth in Roofing Expected in Q4
SOLUTIONS & PRODUCTS STRONG GROWTH IN ROOFING EXPECTED IN Q4 Roofing Systems – Net Sales In USD Stocking effect Duro-Last Destocking Malarkey effect Elevate Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 Architectural Shingles on a residential home, USA 20 Built with Malarkey’s NEX® sustainable shingl
Slide 21: Outlook and Guidance 2023
03. OUTLOOK AND GUIDANCE 2023 JAN JENISCH | CHAIRMAN AND CEO Eleven on the river, Minneapolis, USA Built with ECOPact, the low-carbon concrete
Slide 22: Outlook and Guidance 2023: Guidance Upgraded for Recurring EBIT Margin
OUTLOOK AND GUIDANCE 2023 GUIDANCE UPGRADED FOR RECURRING EBIT MARGIN Organic Net Sales growth above 6% Organic recurring EBIT growth above 10% Industry-leading recurring EBIT margin >17%, up from >16% Free Cash Flow of around CHF 3 bn Reduction of CO2 per Net Sales above 10% San Raffaele Hospital,
Slide 23: Upcoming Events
UPCOMING EVENTS NOVEMBER 7, 2023 Europe Decarbonization Day FEBRUARY 28, 2024 Full Year 2023 Results APRIL 25, 2024 Q1 2024 Trading Update JULY 26, 2024 Half Year 2024 Results OCTOBER 25, 2024 Q3 2024 Trading Update FEBRUARY 28, 2025 Full Year 2024 Results 23
Slide 24: 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 25: Holcim
HOLCIM