Slide 1: FY 2022 Results: Record Performance, Successful Transformation
ECOPact, green concrete - one of Holcim's green building solutions FY 2022 RESULTS RECORD PERFORMANCE SUCCESSFUL TRANSFORMATION JAN JENISCH | CEO GÉRALDINE PICAUD | CFO FEBRUARY 24, 2023
Slide 2: Highlights and Key Developments
01. HIGHLIGHTS AND KEY DEVELOPMENTS JAN JENISCH | CHIEF EXECUTIVE OFFICER The Seattle Spheres, Amazon headquarters Built with ECOPlanet with an 80% lower CO2 footprint
Slide 3: 2022 Highlights: Record Performance, Successful Transformation
2022 HIGHLIGHTS RECORD PERFORMANCE, SUCCESSFUL TRANSFORMATION Record performance Successful Transformation Net Sales of CHF 29’189 m, +12.9% LFL Solutions & Products driving profitable growth Recurring EBIT of CHF 4’752 m, +7.2% LFL Reaching 19% of Group’s Net Sales EPS1 of CHF 4.96 per share2, up 2
Slide 4: 2022 Results: Record Performance
2022 RESULTS RECORD PERFORMANCE NET SALES RECURRING EBIT CHF bn CHF bn +12.9% +7.2% LFL LFL 29.2 4.75 27.5 26.7 26.8 4.61 23.1 4.10 3.78 3.68 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 NET DEBT LEVERAGE ROIC 2.2x 9.5% 8.9% 1.5x 1.4x 1.4x 7.4% 7.4% 0.9x 6.5% 2018 2019 2020 2021 2022 2018 2019
Slide 5: Value Accretive Acquisitions in Solutions & Products
SUCCESSFUL TRANSFORMATION VALUE ACCRETIVE ACQUISITIONS IN SOLUTIONS & PRODUCTS 6 acquisitions in Solutions & Products Total spend: CHF 2.3 bn EV/EBITDA ~11x US: Roofing & Insulation Divestments closed Total proceeds: USD 7.3 bn EV/EBITDA >15x Europe: Specialty Building Solutions Brazil Successful cl
Slide 6: Solutions & Products Driving Profitable Growth
SUCCESSFUL TRANSFORMATION SOLUTIONS & PRODUCTS DRIVING PROFITABLE GROWTH SOLUTIONS & TOTAL CEMENT AGGREGATES READY-MIX PRODUCTS GROUP 2022 CHF m 14’859 3’102 5’711 5’518 29’189 NET SALES 1 -2.0% +4.3% +11.4% +54.2% +8.8% -296 +129 +583 +1’939 +2’355 3’301 646 137 668 4’752 RECURRING EBIT -8.0% +4.4%
Slide 7: Rapid Expansion in Solutions & Products
SUCCESSFUL TRANSFORMATION RAPID EXPANSION IN SOLUTIONS & PRODUCTS NET SALES BY BUSINESS SEGMENT Solutions & Products Solutions & Products Solutions & Products 8% Aggregates 19% 12% 30% Cement 2020 2022 TARGET 60% 20% 2025 Ready-mix concrete 7 Net Sales to external customers
Slide 8: Solutions and Products: Higher Profitability with Above Market Growth
SOLUTIONS AND PRODUCTS HIGHER PROFITABILITY WITH ABOVE MARKET GROWTH 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 refurbishmen
Slide 9: Duro-Last, a Highly Synergistic Strategic Fit
SUCCESSFUL TRANSFORMATION DURO-LAST, A HIGHLY SYNERGISTIC STRATEGIC FIT * 2023 E HIGHLY SYNERGISTIC ACQUISITION XXX NET SALES USD 540 M Completing Holcim’s commercial roofing systems portfolio with leading innovative and sustainable solutions SYNERGIES USD ~ 60 M Providing access to new sales ch
Slide 10: On-going Expansion in Highly Attractive Roofing Business
SUCCESSFUL TRANSFORMATION ON-GOING EXPANSION IN HIGHLY ATTRACTIVE ROOFING BUSINESS HIGHLY ATTRACTIVE ROOFING BUSINESS NORTH AMERICAN XXXXXXXXXXXXX ROOFING MARKET • Attractive and large building materials segment expected to grow over-proportionally • Holcim to reach USD 4 bn Net Sales proforma Comme
Slide 11: Expansion in the Most Attractive North American Market
SUCCESSFUL TRANSFORMATION EXPANSION IN THE MOST ATTRACTIVE NORTH AMERICAN MARKET NET SALES BY REGION North America North America North America Asia Pacific 24% 17% 25% 35% 8% ~40% 2019 2022 2023E Middle East 11% 10% Africa 10% 30% 30% Latin America Europe 11 Net Sales to external customers, excludin
Slide 12: Strengthened Earnings Profile
SUCCESSFUL TRANSFORMATION STRENGTHENED EARNINGS PROFILE RECURRING EBIT BY REGION North America North America North America Asia Pacific 23% 15% 30% 37% 8% >40% 2019 2022 2023E Middle East 9% 19% Africa 16% 22% 21% Latin America Europe 12 Recurring EBIT excluding corporate costs
Slide 13: 21% Reduction in CO2 per Net Sales in 2022
SUCCESSFUL TRANSFORMATION 21% REDUCTION IN CO2 PER NET SALES IN 2022 CO2 PER MILLION OF NET SALES1 000 tons -8% -21% over -10% 5.1 4.7 3.7 < 3.3 2020 2021 2022 2023E Striatus, first-of-its-kind 3D concrete printed bridge, Venice, Italy 13 1 Scope 1 and 2 emissions Built with Holcim proprietary Tecto
Slide 14: Leader in Sustainability
SUCCESSFUL TRANSFORMATION LEADER IN SUSTAINABILITY EU Innovation Fund ECOPact Grant of EUR 328 m Leader in ESG ratings: Already 13% of Ready-Mix Net Sales to fund 2 carbon capture projects in: Moody’s: 1st in the sector with • Carbon2Business – Germany A1+ rating and a score of 71/100 ECOPlanet • GO
Slide 15: Delivering on Strategy 2025 Accelerating Green Growth
SUCCESSFUL TRANSFORMATION 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 & Products CO2 per Net Sales • New level of sustainable Free • H
Slide 16: Financial Highlights
02. FINANCIAL HIGHLIGHTS GÉRALDINE GÉRALDINE PICAUD PICAUD | CHIEF| FINANCIAL CHIEF FINANCIAL OFFICER OFFICER Renovation of Gasholders residential development, London, UK Built with Ductal® Ultra High Performance Concrete
Slide 17: 2022 Performance Highlights: Record Results
2022 PERFORMANCE HIGHLIGHTS RECORD RESULTS NET RECURRING EPS1 FREE CASH SALES EBIT Before impairment & divestments FLOW1 After leases CHF CHF +12.9% +8.8% VS 2021 LFL +7.2% LFL +3.0% VS 2021 4.96 PER SHARE 3’544 m CHF 29’189 m CHF 4’752 m +25% Cash conversion: 54% 1 Before resolution with DOJ 17
Slide 18: 2022 Net Sales Bridge
2022 NET SALES BRIDGE RECORD NET SALES ABOVE CHF 29BN, GROWTH OF +12.9% LFL CHF m +8.8% -495 29’189 +665 +1’263 +12.0% LFL 26’834 +18.5% LFL +2’553 -1’631 +12.9% LFL 2021 Scope LFL LFL Scope FX 2022 Cement, Aggregates, Ready-Mix concrete Solutions & Products 18
Slide 19: 2022 Recurring EBIT Bridge
2022 RECURRING EBIT BRIDGE RECORD RECURRING EBIT ABOVE CHF 4.7 BN, GROWTH OF +7.2% LFL CHF m +3.0% 4’752 -62 +151 4’612 +254 -265 -66 -41 +169 +7.2% LFL 2021 Scope Volume Price over cost JVs & others Solutions & Solutions & FX 2022 LFL LFL Products LFL Products scope Cement, Aggregates, Ready-Mix co
Slide 20: 2022 Regional Performance
2022 REGIONAL PERFORMANCE BROAD-BASED PROFITABLE GROWTH North America Latin America Europe Middle East Africa Asia Pacific +17.5% +19.5% +11.2% +3.7% +14.1% +27.7% +3,6% +9.9% +13.6% +20.1% -32.7% 10’002 1’902 2’926 956 8’393 1’091 2’400 381 4’842 789 NET SALES RECURRING EBIT % Total LFL to external
Slide 21: North America: Outstanding Performance
NORTH AMERICA OUTSTANDING PERFORMANCE, SUCCESSFUL TRANSFORMATION Q4 2022 2022 CHF m 2’387 10’002 Net Sales1 +6.0% LFL +17.5% LFL +17.0% +36.7% 422 1’902 Recurring EBIT +5.9% LFL +27.7% LFL +9.7% +42.7% 1 Net Sales to external customers Growth driven by Solutions Over-proportional recurring & Product
Slide 22: North America Net Sales by Business Segment
SUCCESSFUL EXPANSION IN THE ATTRACTIVE NORTH AMERICAN MARKET WITH SOLUTIONS & PRODUCTS ALREADY OUR NUMBER ONE SEGMENT NORTH AMERICA NET SALES BY BUSINESS SEGMENT Solutions & Products Solutions & Products Cement 13% Aggregates 37% 31% 44% 2020 19% 2022 CHF 5.7 bn CHF 10.0 bn 13% 24% 19% Ready-Mix Bos
Slide 23: Latin America: Strong Profitable Growth
LATIN AMERICA STRONG PROFITABLE GROWTH Q4 2022 2022 CHF m 661 2’926 Net Sales1 +24.0% LFL +19.5% LFL -0.9% +12.1% 229 956 Recurring EBIT +22.4% LFL +13.6% LFL +13.4% +10.4% 1 Net Sales to external customers Good performance in Strong growth in ready-mix Mexico, Colombia & El Salvador Excellent pipel
Slide 24: Europe: Delivering Strong Results
EUROPE DELIVERING STRONG RESULTS Q4 2022 2022 CHF m 2’043 8’393 Net Sales1 +7.8% LFL +11.2% LFL +2.7% +4.5% 261 1’091 Recurring EBIT +28.8% LFL +9.9% LFL +12.6% -2.1% 1 Net Sales to external customers Good profitability despite Positive price over cost softer volumes High demand for low Acceleration
Slide 25: Middle East Africa: Over-proportional Recurring EBIT Growth
MIDDLE EAST AFRICA OVER-PROPORTIONAL RECURRING EBIT GROWTH Q4 2022 2022 CHF m 630 2’400 Net Sales1 +20.7% LFL +14.1% LFL +2.5% -1.2% 90 381 Recurring EBIT2 +28.1% LFL +20.1% LFL +2.1% -1.8% 1 Net Sales to external customers 2 Contribution from share of net income from JVs: CHF 41 m in 2022 vs. CHF 6
Slide 26: Asia Pacific: Challenging Markets in India and China
ASIA PACIFIC CHALLENGING MARKETS IN INDIA AND CHINA Q4 2022 2022 CHF m 597 4’842 Net Sales1 +3.8% LFL +3.7% LFL -61.4% -18.6% 123 789 Recurring EBIT2 -37.9% LFL -32.7% LFL -60.5% -40.7% 1 Net Sales to external customers 2 Contribution from share of net income from JVs: CHF 244 m in 2022 vs. CHF 387
Slide 27: Focus on Solutions & Products: Outstanding Results
FOCUS ON SOLUTIONS & PRODUCTS OUTSTANDING RESULTS Q4 2022 2022 CHF m 1’260 5’518 Net Sales1 +0.1% LFL +18.6% LFL +21.4% +54.2% 105 668 Recurring EBIT +38.2% LFL +99.1% LFL +33.8% +165.6% 1 Net Sales to external customers Net Sales & recurring EBIT of Solutions & Products are reported within the regi
Slide 28: 2022 Financial Performance: EPS at CHF 4.96, Up 25%
2022 FINANCIAL PERFORMANCE EPS AT CHF 4.96, UP 25% CHF m 2021 2022 CHANGE +9% Before impairment & divestments Net Sales 26’834 29’189 2’355 +3% RECURRING EBIT 4’612 4’752 140 Restructuring, litigation and others -194 -846 -652 OPERATING PROFIT (EBIT) 4’419 3’906 -513 Profit/loss on disposals and oth
Slide 29: 2022 Free Cash Flow
2022 FREE CASH FLOW RECORD FREE CASH FLOW OF CHF 3.5 BN1 CHF m 2021 2020 2022 2021 CHANGE Change RECURRING EBITDA after leases 6’562 6’554 -7 Right of use assets 370 358 -12 Change in net working capital -40 -325 -285 Income taxes paid -828 -802 25 Net financial expenses paid & FX -423 -424 -1 Share
Slide 30: 2022 Net Financial Debt Bridge
2022 NET FINANCIAL DEBT BRIDGE VALUE ACCRETIVE TRANSFORMATION, NET DEBT REDUCED BY 40% CHF m 9’977 -2’765 +2’630 -6’324 +544 6’032 +405 +234 +1’330 NFD 1 FCF 2 Acquisitions Disposals Group Non-controlling Share Buyback Treasury shares & NFD 1 December 2021 shareholders interests others December 2022
Slide 31: Capital Allocation
CAPITAL ALLOCATION INVESTING IN GROWTH, DRIVING ATTRACTIVE SHAREHOLDER RETURNS 1 PROFITABLE GROWTH AND VALUE ACCRETIVE M&A 2 STRONG BALANCE SHEET 3 ATTRACTIVE RETURNS TO SHAREHOLDERS • 14% increase in dividend to CHF 2.5 per share to be proposed at AGM on May 4, 2023 • Share buyback program of up to
Slide 32: 2022 Dividend: CHF 2.5 per Share Proposed
2022 DIVIDEND DIVIDEND OF CHF 2.5 PER SHARE PROPOSED DIVIDEND PER SHARE (CHF) • 14% increase in dividend to CHF 2.5 per share to be proposed at AGM on May 4, 2023 • Dividend to be paid out of foreign capital contribution reserve and is not subject to Swiss withholding tax 2.0 2.2 2.5 2020 2021 2022
Slide 33: Outlook and Guidance 2023
03. OUTLOOK AND GUIDANCE 2023 JAN JENISCH | CHIEF EXECUTIVE OFFICER Free Waldorf School, Germany Built with Elevate RubberGard EPDM roofing system
Slide 34: Outlook and Guidance 2023
OUTLOOK AND GUIDANCE 2023 CONTINUED PROFITABLE GROWTH AND ON-GOING SUCCESSFUL TRANSFORMATION Net Sales growth of 3 to 5% LFL Over proportional growth in recurring EBIT LFL Free Cash Flow of around CHF 3 bn Reduction of CO2 per Net Sales by over 10% 55 H Street, Georgetown University, Washington 34 B
Slide 35: Upcoming Events
UPCOMING EVENTS APRIL 21, 2023 Q1 2023 Trading Update MAY 4, 2023 Annual General Meeting JULY 27, 2023 Half Year 2023 Results OCTOBER 27, 2023 Q3 2023 Trading Update 35
Slide 36: 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 37: Holcim
HOLCIM