Slide 1: Full-Year 2023 Record Results
New York City One World Trade Center, built with Holcim advanced concrete with recycled materials inside FULL-YEAR 2023 RECORD RESULTS ACHIEVING STRATEGY 2025 AHEAD OF PLAN JAN JENISCH – CHAIRMAN AND CEO | STEFFEN KINDLER – CFO | MILJAN GUTOVIC – CEO DESIGNATE FEBRUARY 28, 2024
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: 2023 Highlights: Achieving Strategy 2025 Ahead of Plan
2023 HIGHLIGHTS ACHIEVING STRATEGY 2025 AHEAD OF PLAN Record results 2023 Achieving Strategy 2025 ahead of plan • Recurring EBIT of CHF 4’760 million • Industry-leading margins with 17.6% in recurring EBIT +14.7% organic growth and 13.7% in Free Cash Flow • Free Cash Flow of CHF 3’705 million • Fina
Slide 4: Delivering Superior Performance Quarter by Quarter
RECORD RESULTS IN 2023 DELIVERING SUPERIOR PERFORMANCE QUARTER BY QUARTER ORGANIC NET SALES AND RECURRING EBIT GROWTH 17.9% 13.9% 14.1% 12.0% 8.0% 7.0% 5.5% 4.3% Q1 23 Q2 23 Q3 23 Q4 23 Net Sales Recurring EBIT Boston University, Center for Computing & Data Sciences, USA 4 Built with ECOPact low car
Slide 5: Profitable Growth More Than Offsetting Strong CHF in Q4
RECORD RESULTS IN 2023 PROFITABLE GROWTH MORE THAN OFFSETTING STRONG CHF IN Q4 NET SALES GROWTH RECURRING EBIT GROWTH Q4 2023 Q4 2023 5.5% 17.9% 8.7% 2.1% Organic CHF Organic CHF New York City One World Trade Center Built with Holcim advanced concrete with 5 recycled materials inside
Slide 6: Strategy 2025: Financial Targets Achieved 2 Years Ahead of Plan
STRATEGY 2025 “ACCELERATING GREEN GROWTH” FINANCIAL TARGETS ACHIEVED 2 YEARS AHEAD OF PLAN STRATEGY 2025 2023 Net Sales Growth 3 - 5% organic p.a. +6.1% organic Recurring EBIT Growth OVER PROPORTIONAL TO NET SALES GROWTH ANNUALLY +14.7% organic Accelerate Growth in 30% Solutions & Products IN % OF G
Slide 7: Industry-Leading EBIT Margin of 17.6%
ACHIEVING STRATEGY 2025 AHEAD OF PLAN INDUSTRY-LEADING EBIT MARGIN OF 17.6% RECURRING EBIT MARGIN • a2 +3.8pp 17.6% 17.2% 16.3% 15.9% 15.4% 13.8% 2018 2019 2020 2021 2022 2023 La Confluence, Belgium with Elevate RubberGard EPDM 7 2018 figures in this presentation are on a pre-IFRS 16 basis Copyright
Slide 8: Outstanding Growth in Earnings
ACHIEVING STRATEGY 2025 AHEAD OF PLAN OUTSTANDING GROWTH IN EARNINGS EARNINGS PER SHARE In CHF, before impairment and divestments +15.6% • a2 CAGR 5.42 4.96 3.98 3.37 3.07 2.63 2018 2019 2020 2021 2022 2023 Marina Olympics 2024, Marseille, France 8 2022 before DOJ resolution Built with ECOPact and E
Slide 9: Record Free Cash Flow Generation and Cash Conversion
ACHIEVING STRATEGY 2025 AHEAD OF PLAN RECORD FREE CASH FLOW GENERATION AND CASH CONVERSION FREE CASH FLOW in CHF million 3'705 3'544 3'264 3'249 3'019 1'703 2018 2019 2020 2021 2022 2023 Cash Conversion - Free Cash Flow divided by Recurring EBITDA (after leases) 28% 49% 58% 50% 54% 58% Generali Towe
Slide 10: Sustainable Industry-Leading Free Cash Flow Margin
ACHIEVING STRATEGY 2025 AHEAD OF PLAN SUSTAINABLE INDUSTRY-LEADING FREE CASH FLOW MARGIN FREE CASH FLOW MARGIN¹ • a2 +7.5pp 13.7% 14.0% 12.2% 12.1% 11.3% 6.2% 2018 2019 2020 2021 2022 2023 Amazon headquarters campus, Seattle Spheres, USA 10 ¹ Free Cash Flow over net sales | 2022 before DOJ resolutio
Slide 11: Financial Strength from Balance Sheet to Credit Rating
ACHIEVING STRATEGY 2025 AHEAD OF PLAN FINANCIAL STRENGTH FROM BALANCE SHEET TO CREDIT RATING ROIC NET DEBT DEBT LEVERAGE CREDIT RATING in CHF billion Net Debt / recurring EBITDA +4.1 pp -5.6 bn -1.0x 2018 2023 10.6% 2.2 BBB | Baa2 BBB+ | Baa1 13.5 Outlook Outlook 6.5% negative stable 7.9 1.2 2018 20
Slide 12: Delivering Superior Shareholder Returns
ACHIEVING STRATEGY 2025 AHEAD OF PLAN DELIVERING SUPERIOR SHAREHOLDER RETURNS DIVIDEND PER SHARE in CHF • Delivering superior shareholder returns with 12% annual growth in •+12% a2 dividends since 2020 CAGR • Dividends paid out of foreign capital contribution reserves and not subject to Swiss withho
Slide 13: 97 Value Accretive Transactions 2018-2023
ACHIEVING STRATEGY 2025 AHEAD OF PLAN 97 VALUE ACCRETIVE TRANSACTIONS 2018-2023 Solutions & Products 6 major Bolt-ons acquisitions 72 acquisitions Europe 41 North America 22 Latin America 5 Asia Pacific 4 8 0 % f a m i l y- o wn e d businesses Acquisitions / Bolt-ons Divestments Divested 19 divestme
Slide 14: Disciplined M&A for Superior Value Creation
ACHIEVING STRATEGY 2025 AHEAD OF PLAN DISCIPLINED M&A FOR SUPERIOR VALUE CREATION EV MULTIPLES, CASH SPEND AND DIVESTMENT PROCEEDS (2018-2023) Solutions & Bolt-ons Divestments Acquisitions Products EV/EBITDA1 (incl. synergies) 8.1x 5.1x 15.6x Cash spend, CHF bn Cash proceeds, CHF bn 6.6 2.2 8.9 14 1
Slide 15: Value Accretive and Disciplined M&A Process
ACHIEVING STRATEGY 2025 AHEAD OF PLAN VALUE ACCRETIVE AND DISCIPLINED M&A PROCESS Growing momentum with 28 acquisitions in 2023 Representing 4% of Net Sales on a pro forma basis 80% of bolt-on acquisitions are family-owned companies with significant synergy upside Disciplined M&A process with averag
Slide 16: Rapid Expansion of Solutions & Products
ACHIEVING STRATEGY 2025 AHEAD OF PLAN RAPID EXPANSION OF SOLUTIONS & PRODUCTS NET SALES BY BUSINESS SEGMENT Solutions & Products Solutions & Products 9% 21% 10% 2018 2023 61% 20% Cement Solutions & Products Aggregates Ready-mix 16
Slide 17: Fast Growth in Most Attractive Markets
ACHIEVING STRATEGY 2025 AHEAD OF PLAN FAST GROWTH IN MOST ATTRACTIVE MARKETS NET SALES1 BY MARKET Europe North America 22% 28% 34% 39% 2018 2023 11% 39% 11% Latin America 16% Asia, Middle East & Africa 17 1 Net Sales to external customers excl. trading activities
Slide 18: Decarbonization Driving Profitable Growth
ACHIEVING STRATEGY 2025 AHEAD OF PLAN DECARBONIZATION DRIVING PROFITABLE GROWTH CO2 PER MILLION OF NET SALES 000 tons •-42% a2 5.1 4.7 3.7 2.9 2020 2021 2022 2023 Essential Homes Research project Holcim and the Norman Foster Foundation 18 Built with ECOPact, ECOCycle and Elevate inside
Slide 19: Growing Multi-Billion Brands to Meet Customers' Needs
ACHIEVING STRATEGY 2025 AHEAD OF PLAN GROWING MULTI-BILLION BRANDS TO MEET CUSTOMERS’ NEEDS 30% OF NET SALES FROM ADVANCED BRANDED SOLUTIONS IN 2023 A “2+ Billion CHF” A “1+ Billion CHF” Leader in circular construction Brand Brand 8.4 Mt, +24% recycled 19% of Cement Net Sales 19% of Ready-mix Net Sa
Slide 20: Empowered Leadership with Strong Performance Culture
ACHIEVING STRATEGY 2025 AHEAD OF PLAN EMPOWERED LEADERSHIP WITH STRONG PERFORMANCE CULTURE Deeply embedded performance culture with 500+ P&L Leaders empowered for customer-centric decision making Transparent and accountable performance management with focus on Group targets Proven track record in va
Slide 21: Financial Highlights
02. FINANCIAL HIGHLIGHTS STEFFEN KINDLER | CHIEF FINANCIAL OFFICER Al Nahr, the Zeena tower, Beirut, Lebanon Built with Ductal®
Slide 22: Q4 2023 Net Sales Bridge
Q4 2023 NET SALES BRIDGE ORGANIC NET SALES GROWTH OF +5.5%, +2.1% IN CHF CHF m +3.8% +5.5% -7.1% 355 -459 6’602 6’463 243 Q4 2022 Acquisitions & Divestments Organic Growth FX Q4 2023 +2.1% 22
Slide 23: Q4 2023 Recurring EBIT Bridge
Q4 2023 RECURRING EBIT BRIDGE PROFITABLE GROWTH MORE THAN OFFSETTING STRONG CHF CHF m +0.4% +17.9% -9.6% -98 1’117 183 1’028 4 Q4 2022 Acquisitions & Divestments Organic Growth FX Q4 2023 +8.7% 23
Slide 24: Q4 2023 Segment Performance
Q4 2023 SEGMENT PERFORMANCE PROFITABLE GROWTH ACROSS ALL REGIONS North America Latin America Europe Asia Middle East & Africa Solutions & Products +12.2% +2.8% +2.8% +3,6% +15.5% -2.2% +13.2% +13.8% +40.9% +11.2% +24.7% 1,639 360 745 246 1,733 268 968 220 1,376 133 NET SALES RECURRING EBIT % Total o
Slide 25: 2023 Net Sales Bridge
2023 NET SALES BRIDGE ORGANIC NET SALES GROWTH OF +6.1% CHF m +6.1% 29’189 -1’771 1’588 -1’997 27’009 FY 2022 Acquisitions & Divestments Organic Growth FX FY 2023 25
Slide 26: 2023 Recurring EBIT Bridge
2023 RECURRING EBIT BRIDGE ORGANIC GROWTH OF +14.7%, RECORD RECURRING EBIT IN CHF CHF m +14.7% -409 4’752 656 4’760 -238 FY 2022 Acquisitions & Divestments Organic Growth FX FY 2023 26
Slide 27: 2023 Segment Performance
2023 SEGMENT PERFORMANCE STRONG EARNINGS PROFILE WITH BROAD-BASED GROWTH North America Latin America Europe Asia Middle East & Africa Solutions & Products +7.4% +12.6% -8.6% +5.8% +3,6% +20.8% +18.1% +24.8% +15.4% +18.3% -11.8% 6’711 1’483 2’861 985 7’284 1’202 3’982 898 5’608 614 NET SALES RECURRIN
Slide 28: North America: Record Results
NORTH AMERICA RECORD RESULTS 2023 CHF m +12.6% Organic Net Sales1 6’711 +5.9% Recurring +18.1% Organic 1’483 EBIT +9.6% 1 Net Sales to external customers Record in Net Sales and Significant price over cost recurring EBIT across all segments Strong margin of 21.7% Strong cement sales 3 bolt-on acquis
Slide 29: Latin America: A Year of Record Profitability
LATIN AMERICA A YEAR OF RECORD PROFITABILITY 2023 CHF m +20.8% Organic Net Sales1 2’861 +0.3% Recurring +15.4% Organic 985 EBIT +3.0% 1 Net Sales to external customers 14th consecutive quarter of Strong performance across profitable organic growth the region led by Mexico Record recurring EBIT Signi
Slide 30: Europe: Record Performance in 2023
EUROPE RECORD PERFORMANCE IN 2023 2023 CHF m +7.4% Organic Net Sales1 7’284 +6.0% Recurring +24.8% Organic 1’202 EBIT +22.5% 1 Net Sales to external customers Record in Net Sales and 12 bolt-on acquisitions in recurring EBIT Aggregates, Ready-mix and Strong margin of 15.8% Construction Demolition Ma
Slide 31: Asia Middle East & Africa: Significant Increase in Margin
ASIA MIDDLE EAST & AFRICA SIGNIFICANT INCREASE IN MARGIN 2023 CHF m +5.8% Organic Net Sales1 3’982 -43.0% Recurring +18.3% Organic 898 EBIT2 -21.5% 1 Net Sales to external customers 2 Contribution from share of net income from JVs: CHF 252 m in 2023 vs. CHF 273 m in 2022 Strong margin of 21.2% 2 bol
Slide 32: Solutions & Products: Demand Recovery in Q4
SOLUTIONS & PRODUCTS DEMAND RECOVERY IN Q4 2023 CHF m -8.6% Organic Net Sales1 5’608 +1.6% Recurring -11.8% Organic 614 EBIT -10.3% 1 Net Sales to external customers Positive growth momentum in Strong growth in advanced Q4 to continue into 2024 mortars in Europe Margin expansion in Q4 11 acquisition
Slide 33: Solutions & Products: Destocking Over, Good Demand Ahead
SOLUTIONS & PRODUCTS DESTOCKING OVER, GOOD DEMAND AHEAD Roofing Systems – Net Sales In USD Stocking effect Destocking Duro-Last effect Malarkey Elevate Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 QQ44 2021 2022 2023 Architectural Shingles on a residential home, USA 33 Built with Malarkey’s NEX® sustainable shingl
Slide 34: 2023 Financial Performance: Record EPS of CHF 5.42
2023 FINANCIAL PERFORMANCE RECORD EPS OF CHF 5.42, UP 9.2% CHF m 2022 2023 CHANGE Before impairment, divestments & DOJ resolution Net Sales 29’189 27’009 -2’180 Record RECURRING EBIT 4’752 4’760 8 recurring EBIT Restructuring, litigation and others -66 -84 -18 OPERATING PROFIT (EBIT) 4’686 4’676 -10
Slide 35: 2023 Free Cash Flow Bridge
2023 FREE CASH FLOW BRIDGE RECORD FREE CASH FLOW OF CHF 3’705 MILLION CHF m 153 -1'408 -702 -438 -278 6'378 Record cash conversion of 58% 3'705 Recurring Change in CapEx Income taxes paid Net financial expenses Others Free Cash Flow EBITDA after leases Net Working Capital paid 35
Slide 36: Net Financial Debt and Cash Returned to Shareholders
NET FINANCIAL DEBT CHF 3’011 MILLION CASH RETURNED TO SHAREHOLDERS IN 2023 CHF m 373 1'597 1’414 91 -3'705 CHF 3’011 million 7'896 2'094 cash returned to shareholders 6'032 Net Financial Debt Free Cash Flow Acquisitions Non-controlling Group Share Buyback Others Net Financial Debt December 2022 inte
Slide 37: Capital Allocation: Attractive Shareholder Returns
CAPITAL ALLOCATION ATTRACTIVE SHAREHOLDER RETURNS INCREASING SHAREHOLDER RETURNS… …WHILE STRENGTHENING THE BALANCE SHEET CHF 8.8 billion cash returned to shareholders since 2018 Cumulative cash returned to shareholders, CHF bn Net Financial Debt / Recurring EBITDA 8.8 2.2x Share buyback 5.8 1.5x 1.4
Slide 38: Capital Allocation: Delivering Increasing Dividend
CAPITAL ALLOCATION DELIVERING INCREASING DIVIDEND DIVIDEND PER SHARE in CHF • 12% increase in dividend vs 2022 to CHF 2.80 per share to be proposed at AGM on May 8, 2024 •+12% 2 • Dividend to be paid out of foreign capital contribution reserves and not subject to Swiss withholding 2.80 tax 2.50 2022
Slide 39: Capital Allocation: Initiating a New Share Buyback
CAPITAL ALLOCATION INITIATING A NEW SHARE BUYBACK 1 RECORD FREE CASH FLOW AND POSITIVE OUTLOOK 2 STRONG BALANCE SHEET 3 ATTRACTIVE SHAREHOLDER RETURNS LAUNCH OF NEW SHARE BUYBACK PROGRAM • New share buyback of CHF 1 billion in 2024 • Share buyback program to be executed on a 2nd trading line at SIX
Slide 40: Outlook and Guidance 2024
03. OUTLOOK AND GUIDANCE 2024 MILJAN GUTOVIC | CEO DESIGNATE Eleven on the river, Minneapolis, USA Built with ECOPact, the low-carbon concrete
Slide 41: Continued Profitable Growth and Strong Cash Generation
OUTLOOK AND GUIDANCE 2024 CONTINUED PROFITABLE GROWTH AND STRONG CASH GENERATION Organic Net Sales growth of above 4% Additional growth from M&A of above 2% Over proportional growth in recurring EBIT Increase in recurring EBIT margin to 18% Free Cash Flow of above CHF 3 billion 20% growth in recycle
Slide 42: Upcoming Events
UPCOMING EVENTS APRIL 25, 2024 Q1 2024 Trading Update MAY 8, 2024 Annual General Meeting JULY 26, 2024 Half Year 2024 Results OCTOBER 25, 2024 Q3 2024 Trading Update FEBRUARY 28, 2025 Full Year 2024 Results 42
Slide 43: 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”) and/or any of its subsidiaries o
Slide 44: Holcim
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