Holcim's Strategy 2025- “Accelerating Green Growth”

We delivered what we promised with our Strategy 2022 one year in advance, setting strong foundations for our next era of growth. With our new level of performance, we have the firepower to invest in Solutions & Products to make it 30% of our company, while leading the way in green building solutions from ECOPact green concrete to energy-efficient roofs. With our strategy ‘Accelerating Green Growth’ we are ready to seize the opportunities ahead, on our way to become the global leader in innovative and sustainable building solutions.?

Our Strategy 2025 is built around four key value drivers:

Accelerating Growth

We aim to deliver profitable growth across the company. Holcim’s profitable growth will be driven by innovative building solutions, from ECOPact green concrete to roofing systems, all the way to ECOPlanet, the world’s first cement with 20% construction & demolition waste inside. We will further fuel our growth with bolt-on acquisitions in mature markets in the aggregates and ready-mix concrete businesses. Digital technology will continue to transform all areas of our business, from day-to-day operations and distribution to changing the way we engage and communicate with our customers.

Expanding Solutions & Products

We will reach 30% of its Group net sales in Solutions & Products. Growing closer to our customers, this business will expand our range of integrated solutions and systems from construction and energy efficiency to repair and refurbishment. This builds on our acquisition of Firestone Building Products, a global leader in roofing systems, as a new growth and innovation engine for the company. Roofing sales are already delivering double-digit growth in the USD 50 billion global flat roofing market and will double to USD 4 billion by 2025 with strategic investments and acquisitions.

Leading in Sustainability and Innovation

Sustainability is at the core of our strategy, with our 2050 net-zero targets endorsed by SBTi. As a company, I am proud that Holcim will continue to stay at the forefront of green building solutions. At least 25% of our concrete sales will come from ECOPact, ranging from 30% to 100% lower CO2 footprint. Leading the circular economy, Holcim will recycle 75 million tons of materials, including 10 million tons of construction & demolition waste, by 2025. Holcim will continue to deploy smart technologies, from 3D printing using 70% less materials to green mineral components like calcined clay. We will further develop next-generation technologies including 30 pilot projects in carbon capture, utilization and storage, in line with our target to operate at least one net-zero plant by 2030.

Delivering Superior Performance

Advances in sustainable practices and innovative technology must go hand in hand with financial success. Our sustainable growth will be achieved with best-in-class financial targets including?

• ?3%-5% net sales growth like for like (lfl)
• Over-proportional increase in Recurring EBIT lfl
• 45% cash conversion
• 10% return on invested capital in 2025
• Ratio of net financial debt to EBITDA of under 1.5x in 2025?

The strategy includes ambitious 2025 sustainability targets in line with Holcim’s net-zero roadmap, validated by the SBTi:

• >25% of ready-mix sales from ECOPact, with 30% to 100% lower CO2 footprint
• 10 million tons of construction & demolition waste recycled in its products and 75 million tons of recycled materials overall
• Green CAPEX of CHF 500 million?
• >40% of financing agreements linked to sustainability goals??

We will deliver these results by fostering a high-performance culture while operating at the highest level of ethics and integrity.

With our strategy ‘Accelerating Green Growth’ we are ready to seize the opportunities ahead, on our way to become the global leader in innovative and sustainable building solutions.