Heidelberg Materials Ag · XETR:HEI
Heidelberg Materials — Debt Investor Presentation (May 2024)
25 slides from Heidelberg Materials's debt investor presentation, May 29, 2024
Slide 1: Green Finance Framework | Heidelberg Materials AG
Nicola Kimm, Board Member & Chief Sustainability Officer René Aldach, Board Member & Chief Financial Officer Green Finance Framework | Heidelberg Materials AG 29.05.2024
Slide 2: Contents
Contents 1. About Heidelberg Materials 2. Heidelberg Materials’ Sustainability Strategy 3. Green Finance Framework 2 29.05.2024 Green Finance Framework | Heidelberg Materials AG
Slide 3: About Heidelberg Materials
1 About Heidelberg Materials
Slide 4: Heidelberg Materials is one of the world's largest building materials companies
About Heidelberg Materials Heidelberg Materials is one of the world’s largest building materials companies 51,000 3,000 Leading positions in cement, employees locations aggregates, and ready-mixed on 5 continents worldwide concrete 4 29.05.2024 Green Finance Framework | Heidelberg Materials AG
Slide 5: Global operations generated over 21 billion EUR revenues in 2023
About Heidelberg Materials Global operations generated over 21 billion EUR revenues in 2023 North America €5,219m Europe €9,566m Asia-Pacific €3,705m Group €21,178m Africa- Mediterranean – Western Asia Adjusted for scope and exchange rate effects. 5 29.05.2024 Green Finance Framework | Heidelberg Ma
Slide 6: Our concrete promises
Our concrete promises 1. We focus on heavy building materials. 2. We commit to generate 50% of our revenue from sustainable products by 2030. 3. We commit to reduce CO2 emissions by almost 50% to 400 kg CO2/t CEM by 2030. 4. We will make this transition a successful business case: on growth, margins
Slide 7: Heidelberg Materials' Sustainability Strategy
2 Heidelberg Materials’ Sustainability Strategy
Slide 8: Sustainability Commitments 2030 – stronger and more comprehensive
Heidelberg Materials’ Sustainability Strategy Sustainability Commitments 2030 – stronger and more comprehensive We place the health and We drive the wellbeing of employees, decarbonisation of our communities, and suppliers sector and provide at the core of our business low-carbon products operations
Slide 9: Our industry-leading carbon reduction targets
Heidelberg Materials’ Sustainability Strategy Our industry-leading carbon reduction targets 400kg CO2/t cementitious material as average across the whole portfolio in 20301 10mt 47% emission reduction2 across the cementitious cumulative CO2 reduction through materials portfolio by 2030 CCUS by 2030
Slide 10: Our CCUS project portfolio
Heidelberg Materials’ Sustainability Strategy Our CCUS project portfolio 10 29.05.2024 Green Finance Framework | Heidelberg Materials AG
Slide 11: CCS: Brevik, Norway
Heidelberg Materials’ Sustainability Strategy CCS: Brevik, Norway World's first industrial-scale carbon capture plant in the cement industry 400,000 tonnes CO2 reduction p.a. (50% of plant’s total CO2 emission) Brevik 11 29.05.2024 Green Finance Framework | Heidelberg Materials AG
Slide 12: Circular economy: A second, full-value life for concrete
Heidelberg Materials’ Sustainability Strategy Circular economy: A second, full-value life for concrete Selective dismantling Professional recycling Distribution of sustainable building materials Recently completed acquisitions: May 2024: B&A, United Kingdom May 2024: Mick George, United Kingdom Apr
Slide 13: evoZero: The world's first carbon captured net-zero cement
Heidelberg Materials’ Sustainability Strategy evoZero®: The world’s first carbon captured net-zero cement Applies to cement and concrete products • Globally unique product: CCS technology, applied for the first time at a large scale in Brevik, enables net-zero carbon footprint of evoZero® • Broadest
Slide 14: Our new global evoBuild product range is setting a new global standard
Heidelberg Materials’ Sustainability Strategy Our new global evoBuild® product range is setting a new global standard Low carbon cement 30% 30% less CO2 vs. CEM I in 20201 Low carbon concrete 30% less CO2 vs. CEM I based 30% concrete in 20201 Applies to all business lines: cement, concrete, aggregat
Slide 15: High recognition for transparency and performance on climate change
Heidelberg Materials’ Sustainability Strategy High recognition for transparency and performance on climate change 27.4 C+ 77/100 AA Top grade A in (0 to 40+) CDP Climate Score Stable A- water score For Validation: 2050 targets submitted to Science Based Targets initiative (SBTi) 15 29.05.2024 Green
Slide 16: Green Finance Framework
3 Green Finance Framework
Slide 17: Rationale for Green Financing
Green Finance Framework Rationale for Green Financing Align funding needs with sustainability strategy • Subsequent step after issuing 1.5bn EUR sustainability-linked bonds in 2023 • Additional transparency on financing of our way to a low-carbon and climate resilient economy • Supports accountabili
Slide 18: More than 70% of our total financial instruments will be sustainable by 2025
Green Finance Framework More than 70 % of our total financial instruments will be sustainable by 2025 Linking financing to climate change and innovation [ Sustainable finance instruments as % of total financial debt instruments [ >70% Heidelberg Materials‘ Green Instruments & Initiatives Credit marg
Slide 19: Green Finance Framework overview
Green Finance Framework ” Green Finance Framework overview Use of proceeds The key sustainability Financing or refinancing of Eligible Green Projects, which objectives and the rationale The Framework is aligned with for issuing Green Finance meet or will meet the defined Eligibility Criteria for: th
Slide 20: Use of proceeds: Defining Eligible Green Projects
Green Finance Framework Use of proceeds: Defining Eligible Green Projects Eligible Green Projects may include the Assets, CapEx and/or OpEx associated with economic activities that • Fulfil the relevant EU Taxonomy’s Technical Screening Criteria (“TSC”) for Substantial Contribution (“SC”) to Climate
Slide 21: Process for Project Evaluation and Selection
Green Finance Framework Process for Project Evaluation and Selection Heidelberg Materials has established a decision-making process to determine the eligibility of Eligible Green Projects, following criteria outlined in the Use of Proceeds section of the framework. Green Finance Committee Committee
Slide 22: Eligible Green Projects – Indicative Overview of our Portfolio
Green Finance Framework Eligible Green Projects – Indicative Overview of our Portfolio Eligible Green Projects based on CapEx1) Geographical split in % Eligibility criteria category split in % Other Belgium 2% 4% Bulgaria 2% 1.4% Canada 8% USA 33% Total size € 600 m # projects to France ~30 26% UK €
Slide 23: Thank You.
Thank You.
Slide 24: Disclaimer
Heidelberg Materials AG Disclaimer This presentation about the Green Finance Framework (the “Presentation”) of, any debt instruments or other securities (“securities”) of Heidelberg is intended to provide non-exhaustive, general information. This Document Materials and is not intended to provide the
Slide 25: Materials
Heidelberg Materials
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