Holcim Ltd · SIX:HOLN
Holcim — Investor Day (September 2023)
40 slides from Holcim's investor day presentation, Sep 21, 2023
Slide 1: Roofing Day 2023: Meet Holcim's World-Leading Roofing Business
Change picture Bishop Elementary, Duro-Last PVC Roof System, Ypsilanti, USA ROOFING DAY 2023 MEET HOLCIM'S WORLD-LEADING ROOFING BUSINESS BRISTOL, CONNECTICUT SEPTEMBER 21ST, 2023 JAMIE GENTOSO – HEAD SOLUTIONS & PRODUCTS GLOBAL BUSINESS
Slide 2: Content
CONTENT Strategy 2025 – Accelerating Green Growth Holcim’s Roofing Strategy Global Leader in Advanced Roofing Systems State of the Art Supply Chain Advanced System Selling Solutions Leading in Innovation & Sustainability Strong Focus on Re-Roofing Above Market Organic Growth and Acquisitions
Slide 3: Successful Transformation: Delivering on Strategy 2025
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 4: Solutions & Products: Higher Profitability with Above Market Growth
SOLUTIONS & 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 refurbishment
Slide 5: Successful Transformation: 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% 30% 30% Cement 2020 2022 TARGET 2025 Ready-mix concrete 5
Slide 6: Content: Holcim's Roofing Strategy
CONTENT Strategy 2025 – Accelerating Green Growth Holcim’s Roofing Strategy Global Leader in Advanced Roofing Systems State of the Art Supply Chain Advanced System Selling Solutions Leading in Innovation & Sustainability Strong Focus on Re-Roofing Above Market Organic Growth and Acquisitions
Slide 7: New Ambition 2026
HOLCIM’S ROOFING STRATEGY NEW AMBITION 2026 – REACHING THE NEXT LEVEL OF PERFORMANCE IN ROOFING Ambition 2026 Net Sales EBIT 2021 Start of Holcim’s Roofing Strategy with the acquisition of Firestone Building Products 7
Slide 8: Holcim's Roofing Strategy: Drivers of Over Proportional Growth
HOLCIM’S ROOFING STRATEGY DRIVERS OF OVER PROPORTIONAL GROWTH Most comprehensive line of Advanced Roofing Systems with iconic brands and high level of customer loyalty State of the art supply chain with over 40 production facilities High value, system selling from full roof design and insulation to
Slide 9: Content
CONTENT Strategy 2025 – Accelerating Green Growth Holcim’s Roofing Strategy Global Leader in Advanced Roofing Systems State of the Art Supply Chain Advanced System Selling Solutions Leading in Innovation & Sustainability Strong Focus on Re-Roofing Above Market Organic Growth and Acquisitions
Slide 10: Global Leader in Advanced Roofing Systems
GLOBAL LEADER IN ADVANCED ROOFING SYSTEMS LEADING ROOFING PLATFORM FROM COMMERCIAL TO RESIDENTIAL APPLICATIONS April 2021 August 2022 January 2023 GlassTech from 2021 To date we invested 2 0 2 >USD 2 6.5 bn in our Roofing Platform 2023 February 2022 October 2022 March 2023 10
Slide 11: Elevate – A Milestone in Holcim's Transformation
GLOBAL LEADER IN ADVANCED ROOFING SYSTEMS ELEVATE – A MILESTONE IN HOLCIM’S TRANSFORMATION Comprehensive Line of Membranes & System Solutions ✓ Global entry into the advanced roofing systems market, offering a comprehensive line of membranes & system solutions ✓ 40-year history leading in systems &
Slide 12: Malarkey – Leader in Sustainable, High-Performance Roofing Shingles
GLOBAL LEADER IN ADVANCED ROOFING SYSTEMS MALARKEY – LEADER IN SUSTAINABLE, HIGH-PERFORMANCE ROOFING SHINGLES Only Manufacturer of 100% Polymer Modified Shingles ✓ Entry into residential roofing ✓ Only manufacturer with advanced 100% polymer modified (PMA) shingles ✓ Most durable advanced high perfo
Slide 13: Duro-Last – Strong Track Record of Innovation & Customer Loyalty
GLOBAL LEADER IN ADVANCED ROOFING SYSTEMS DURO-LAST – STRONG TRACK RECORD OF INNOVATION & CUSTOMER LOYALTY Completing advanced Single-Ply Membrane Offering ✓ Entry into the high value premium PVC membrane market completing our advanced single ply membrane solutions ✓ Duro-Last has a high level of lo
Slide 14: Spray Foam, Adhesives, Liquid Applied Membranes & Sealants
GLOBAL LEADER IN ADVANCED ROOFING SYSTEMS SPRAY FOAM, ADHESIVES, LIQUID APPLIED MEMBRANES & SEALANTS COMPLETE SYSTEM SALES COMPLETE LINE OF SPRAY FOAM COMPLETE LINE OF LIQUID INSULATION APPLIED MEMBRANES & OTHER INSTALLATION SYSTEMS ✓ Complements our Gaco advanced spray ✓ Complements our Gaco liquid
Slide 15: Most Comprehensive Line of Advanced Roofing Technologies
GLOBAL LEADER IN ADVANCED ROOFING SYSTEMS MOST COMPREHENSIVE LINE OF ADVANCED ROOFING TECHNOLOGIES COMPANY COMPANY COMPANY COMPANY COMPANY COMPANY COMPANY A B C D E F G TPO ADVANCED ROOFING SOLUTIONS PVC EPDM PIR Insulation PMA Shingles Installation System Offering Metal Bitumen Liquid Applied Membr
Slide 16: Content
CONTENT Strategy 2025 – Accelerating Green Growth Holcim’s Roofing Strategy Global Leader in Advanced Roofing Systems State of the Art Supply Chain Advanced System Selling Solutions Leading in Innovation & Sustainability Strong Focus on Re-Roofing Above Market Organic Growth and Acquisitions
Slide 17: State of the Art Supply Chain: Leading Roofing Growth Platform
STATE OF THE ART SUPPLY CHAIN LEADING ROOFING GROWTH PLATFORM S TAT E O F T H E AR T S U P P LY C H AI N W I T H O V E R 3 0 P R O D U C T I O N FAC I L I T I E S AC R O S S T H E U S #2 IN THE US COMMERCIAL FLAT ROOFING MARKET with ~20% market share #5 IN THE US RESIDENTIAL ROOFING MARKET with 3-5%
Slide 18: Key Investments with Low Capital Intensity & Fast Paybacks
STATE OF THE ART SUPPLY CHAIN KEY INVESTMENTS WITH LOW CAPITAL INTENSITY & FAST PAYBACKS New Existing Salt Lake City, Elevate PolyIso Glass Mat Facility Insulation Plant Williamsport ✓ New PolyIso plant tripling our ✓ Expanding platform of our capacity in the West high-performing and durable roofing
Slide 19: Content
CONTENT Strategy 2025 – Accelerating Green Growth Holcim’s Roofing Strategy Global Leader in Advanced Roofing Systems State of the Art Supply Chain Advanced System Selling Solutions Leading in Innovation & Sustainability Strong Focus on Re-Roofing Above Market Organic Growth and Acquisitions
Slide 20: Advanced System Selling Solutions
ADVANCED SYSTEM SELLING SOLUTIONS DELIVERING SUPERIOR VALUE WITH HIGH SPECIFICATION RATES FOR OUR ROOFING SYSTEMS HOLCIM’S SYSTEM SELLING SOLUTIONS High value, system selling represents 80% of Holcim’s sales Triple revenue from a single project with the SYSTEM sale of a roofing system, from underlay
Slide 21: Warranties Build Long-Lasting Trusted Customer Relationships
ADVANCED SYSTEM SELLING SOLUTIONS WARRANTIES BUILD LONG-LASTING TRUSTED CUSTOMER RELATIONSHIPS INDUSTRY LEADING WARRANTIES & HOLCIM SELF-ADHERED ROOFING SYSTEM SERVICES RubberGard EPDM ✓ Warranties create higher value sales and develop strong loyalty relationships Installation Systems and a greater
Slide 22: Content
CONTENT Strategy 2025 – Accelerating Green Growth Holcim’s Roofing Strategy Global Leader in Advanced Roofing Systems State of the Art Supply Chain Advanced System Selling Solutions Leading in Innovation & Sustainability Strong Focus on Re-Roofing Above Market Organic Growth and Acquisitions
Slide 23: Strong Network of R&D Centers Driving Innovation
LEADING IN INNOVATION & SUSTAINABILITY STRONG NETWORK OF R&D CENTERS DRIVING INNOVATION 8 R & D C E N T E R S AC R O S S T H E U S AN D E U R O P E PMA Shingles Adhesives, Sealants & Liquid Membranes PVC TPO & PIR EPDM R&D TPO, EPDM & PIR PIB Centers Scientists Spray Foam Technical & Training Expert
Slide 24: Smarter, Faster and Greener Solutions
LEADING IN INNOVATION & SUSTAINABILITY DELIVERING SUPERIOR VALUE THROUGH SMARTER, FASTER AND GREENER SOLUTIONS S M AR T E R F AS T E R GREENER RFID Chips on Shingles Elevate self-adhered UltraPly TPO Patented ISOGARD PIR Insulation Sustainable building Leverage smart Do more with same or products to
Slide 25: Decarbonizing Roofing Systems Across Entire Lifecycle
LEADING IN INNOVATION & SUSTAINABILITY DECARBONIZING ROOFING SYSTEMS ACROSS ITS ENTIRE LIFECYCLE Low Impact Operations Product Design ✓ Renewable energy ✓ Reduced material use ✓ Equipment efficiency ✓ Low impact materials ✓ Reduction in water use ✓ Design for circularity ✓ Reduction of scrap ✓ Custo
Slide 26: Content
CONTENT Strategy 2025 – Accelerating Green Growth Holcim’s Roofing Strategy Global Leader in Advanced Roofing Systems State of the Art Supply Chain Advanced System Selling Solutions Leading in Innovation & Sustainability Strong Focus on Re-Roofing Above Market Organic Growth and Acquisitions
Slide 27: Holcim Is Best Positioned in Fast-Growing Re-Roofing Market
STRONG FOCUS ON RE-ROOFING HOLCIM IS BEST POSITIONED IN THE FAST-GROWING RE-ROOFING MARKET R E - R O O F I N G E X P E C T E D TO O U T PAC E N E W B U I L D Re-Roof Increase of aging housing stock HO L CI M More frequent severe weather events SAL ES BY END-MARKET IN 2023 Demand for greater energy e
Slide 28: Severe Weather Events Increase Demand for Roofs and Better Systems
STRONG FOCUS ON RE-ROOFING SEVERE WEATHER EVENTS INCREASE DEMAND FOR ROOFS AND BETTER SYSTEMS US Disaster Statistic (>USD 1bn Events) Exponential increase of severe weather events ✓ Resulting in an increased demand for re-roofing and more resilient systems ✓ Benefitting our self-adhered systems and
Slide 29: Content
CONTENT Strategy 2025 – Accelerating Green Growth Holcim’s Roofing Strategy Global Leader in Advanced Roofing Systems State of the Art Supply Chain Advanced System Selling Solutions Leading in Innovation & Sustainability Strong Focus on Re-Roofing Above Market Organic Growth and Acquisitions
Slide 30: Holcim Is Best Positioned to Benefit from Changes in Underlying Market
ABOVE MARKET ORGANIC GROWTH & ACQUISITIONS HOLCIM IS BEST POSITIONED TO BENEFIT FROM CHANGES IN UNDERLYING MARKET AT T R A C T I V E N O R T H CHIPS & SCIENCE ACT AMERICAN ROOFING MARKET INFLATION REDUCTION ACT Commercial ✓ Onshoring of manufacturing increases the demand for Roofing large roofing sy
Slide 31: Europe – Extraordinary Growth Opportunities for Holcim
ABOVE MARKET ORGANIC GROWTH & ACQUISITIONS EUROPE – EXTRAORDINARY GROWTH OPPORTUNITIES FOR HOLCIM ✓ Focus on USD 10bn flat roofing market and drive system sales ✓ #3 position in Europe in single-ply membranes ✓ Elevate is a highly regarded brand and is the only company offering the full range of Roy
Slide 32: Europe – Accelerated Expansion of Our Roofing Platform
ABOVE MARKET ORGANIC GROWTH & ACQUISITIONS EUROPE – ACCELERATED EXPANSION OF OUR ROOFING PLATFORM New TPO Line Location TBD ACQUISITIONS ✓ Widen our advanced single ply offering FDT Flachdach Technologie ✓ Start of production in H1 2026 Mannheim, Germany Roofing Systems Closed Q1 2023 Technical Rubb
Slide 33: Latin America – Extraordinary Growth Opportunities for Holcim
ABOVE MARKET ORGANIC GROWTH & ACQUISITIONS LATIN AMERICA – EXTRAORDINARY GROWTH OPPORTUNITIES FOR HOLCIM ✓ Elevate #1 in single-ply market in Latin America selling through strong specifications ✓ Only company offering a full range of advanced technologies ✓ Fast track launch of Gaco products in Mexi
Slide 34: Latin America – Accelerated Expansion of Our Roofing Platform
ABOVE MARKET ORGANIC GROWTH & ACQUISITIONS LATIN AMERICA – ACCELERATED EXPANSION OF OUR ROOFING PLATFORM ACQUISITIONS New Facility Colombia Quimexur Argentina ✓ Manufacturing of liquid applied Roofing & waterproofing membranes Closed Q1 2023 ✓ Start of production in Q1 2024 PASA® Mexico Roofing & wa
Slide 35: Holcim Is Positioned for Above Market Growth
ABOVE MARKET ORGANIC GROWTH AND ACQUISITIONS HOLCIM IS POSITIONED FOR ABOVE MARKET GROWTH NET SALES DEVELOPMENT DRIVERS OF USD, proforma, incl. 2023 acquisitions ABOVE MARKET GROWTH 4.1bn ✓ Most comprehensive line of Advanced Latin Roofing Systems & high-level of America customer loyalty Europe 10%
Slide 36: Delivering on Synergies with Every Acquisition
ABOVE MARKET ORGANIC GROWTH & ACQUISITIONS DELIVERING ON SYNERGIES WITH EVERY ACQUISITION IN ROOFING SYSTEMS SINCE APRIL 2021 EBIT MARGIN EXPANSION FROM 10% TO 19% ✓ Successful start of cross selling ✓ Leverage geographic exposure and footprint ✓ Combine expertise in R&D and manufacturing ✓ Global p
Slide 37: Significant Increase in Profitability
ABOVE MARKET ORGANIC GROWTH AND ACQUISITIONS SIGNIFICANT INCREASE IN PROFITABILITY EBIT MARGIN DEVELOPMENT DRIVERS OF OVER PROPORTIONAL Actual figures 2021 & 2022 / proforma 2017 to 2020 MARGIN GROWTH ✓ Investments in highly efficient, state of the art, automated facilities ✓ Leading supply chain th
Slide 38: New Ambition 2026
HOLCIM’S ROOFING STRATEGY NEW AMBITION 2026 – REACHING THE NEXT LEVEL OF PERFORMANCE IN ROOFING Ambition 2026 Net Sales EBIT 2021 Start of Holcim’s Roofing Strategy with the acquisition of Firestone Building Products 38
Slide 39: 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 40: Holcim
HOLCIM