2023 REPORT

ON NON-FINANCIAL MATTERS

DISCLOSURES FOR SWISS CODE OF OBLIGATIONS (ART. 964B)

The following sections comprise the report on non-financial matters in accordance with Art. 964b

of the Swiss Code of Obligations.

Sustainability is at the core of Holcim's business and is deeply embedded in its corporate strategy. Recognizing that sustainability cannot be viewed separately from our broader business activities, Holcim adopts an integrated approach for the report on non-financial matters pursuant to Art. 964b of the Swiss Code of Obligations. Through the integration of sustainability topics alongside other relevant topics covered in the Integrated Annual Report, we aim to provide our shareholders and other stakeholders with a comprehensive view of our business activities.

Cover Image:

The Generali Tower in Milan is part of CityLife - one of the most important urban redevelopment projects in Europe. Iconic skyscrapers set in a new park, a brand new shopping district, and a new metro line have all been built with Holcim products

CONTENTS

DESCRIPTION OF THE BUSINESS MODEL

ENVIRONMENTAL MATTERS, IN PARTICULAR CO2 GOALS

  1. Sustainability performance highlights
  1. 2023 Climate Report

EMPLOYEE-RELATED ISSUES

86 Holcim people

92 Health, Safety & Environment

SOCIAL ISSUES AND RESPECT FOR HUMAN RIGHTS

  1. Human rights and our communities
  1. Just transition
  1. Report on due diligence and transparency
    in relation to minerals and metals from conflict- affected areas and child labor

SUPPLY CHAIN

110 Sustainable Supply Chain

114 Report on due diligence and transparency

in relation to minerals and metals from conflict- affected areas and child labor

COMBATING CORRUPTION

  1. Corporate governance
  2. Compliance program - performance with integrity

MATERIAL RISKS

  1. Risk and control
  1. Material priorities
  1. Climate and nature risks and opportunities
  1. Scenario analysis

NON-FINANCIAL PERFORMANCE INDICATORS

  1. Compliance program - performance with integrity
  1. 2023 Sustainability Performance Report
  1. Scope and methodology
  1. Assurance statement

LEADING IN ESG DISCLOSURES &

TRANSPARENCY

Read more about our transparent ESG disclosures in the 2023 Integrated Annual Report.

Art. 964b Swiss Code of Obligations.

Read on page 434

EU Taxonomy. Read on page 266

TCFD. Read on page 238

TNFD. Read on page 238

HOLCIM  2023 Report on Non-financial matters  1

DESCRIPTION OF THE BUSINESS MODEL

2  HOLCIM  2023 Report on Non-financial matters  Description of the business model

ART. 946B CONTENT REQUIREMENT

HOLCIM  2023 Report on Non-financial matters  Description of the business model3

DELIVERING RECORD RESULTS

We achieved our Strategy 2025 financial targets ahead of plan. By accelerating growth, expanding Solutions & Products and leading in sustainability and innovation, we are transforming and delivering superior performance.

Washington, D.C. is the world's first LEED® Platinum city with the full spectrum of Holcim's sustainable building solutions inside

4  HOLCIM  2023 Report on Non-financial matters  Description of the business model

IN THIS SECTION

  • Achieving Strategy 2025
    12 Acquisitions in 2023
    14 Holcim at a glance
    16 The strength of Holcim
    18 Creating value for all
    20 Global megatrends

ACHIEVING STRATEGY 2025

Delivering record results

When Holcim launched "Strategy 2025 - Accelerating Green Growth" in 2021, our aim was to transform the company to become the global leader in innovative and sustainable building solutions. Today, we are achieving our financial targets two years ahead of plan.

We have moved our business from volume to value, and successfully shifted to the most attractive markets, as well as segments with strong growth drivers and high margins, such as North America.

At the same time, we have invested in innovation to develop low-carbon, circular and energy-efficient building solutions and grow our leading brands.

Throughout this journey, we have put sustainability at the core of our business, rethinking our operations from end-to-end and positioning ourselves as a first mover on net zero, circularity and nature.

The result is record performance. Holcim has delivered strong net sales and Recurring EBIT growth, while focusing on high value creation. The value we have created benefits all of our stakeholders - investors and customers, our people, communities and the planet.

Learn more on our website

"In 2023, we delivered on our strategy, and shifted to the most attractive markets."

JAN JENISCH

Chairman & CEO

HOLCIM  2023 Report on Non-financial matters  Description of the business model5

RECORD RESULTS

In 2023, Holcim achieved the financial targets of "Strategy 2025 - Accelerating Green Growth" two years ahead of plan.

STRATEGY 2025

NET SALES GROWTH

3-5% ORGANIC P.A.

RECURRING EBIT GROWTH

OVER-PROPORTIONAL

TO NET SALES

GROWTH ANNUALLY

ACCELERATE GROWTH

30%

OF GROUP

IN SOLUTIONS & PRODUCTS

NET SALES

CASH CONVERSION

45%

ROIC

10%

NET FINANCIAL DEBT

<1.5×

TO EBITDA

6  HOLCIM  2023 Report on Non-financial matters  Description of the business model

2023 RESULTS

+6.1% ORGANIC

+14.7% ORGANIC

21%

58%

10.6%

1.2×

"Holcim's new level of financial performance is driven by its superior earnings profile, which is based on industry-leading margins and a strong balance sheet, to deliver attractive shareholder returns."

JAN JENISCH

Chairman & CEO

ACHIEVING

STRATEGY 2025

FINANCIAL

TARGETS TWO

YEARS AHEAD

OF PLAN

HOLCIM  2023 Report on Non-financial matters  Description of the business model7

RECORD RESULTS CONTINUED

ACHIEVING STRATEGY 2025 FINANCIAL TARGETS TWO YEARS AHEAD OF PLAN

ACCELERATING GROWTH

STRATEGIC AIM

Holcim is capitalizing on megatrends and specific regional growth drivers to achieve profitable above-market growth. By investing in innovative and sustainable building solutions, we offer high-value benefits to our customers, helping to address their sustainability challenges.

2023 PROGRESS

Holcim continued to drive growth through acquisitions, investing in innovation and sharpening our portfolio towards high-value end markets and attractive regions.

We acquired 28 businesses: 17 bolt-on acquisitions in cement, aggregates and ready-mix, and 11 acquisitions in Solutions & Products. Leveraging regional growth drivers in 2023, we enhanced value creation and saw strong performance across all regions.

2023 Highlights

  • Record Recurring EBIT of CHF 4.8 billion driven by low-carbon products
  • 28 acquisitions in high-value markets
  • Rebalanced portfolio with mature markets1 representing 78 percent of net sales

In the North America region, increased demand led to record net sales of CHF 6.7 billion and profitability of 21.7 percent Recurring EBIT margin.

A strong increase in profitability in Europe (15.8 percent Recurring EBIT margin), was driven by decarbonization.

Latin America saw continued profitable growth with 15.4 percent organic growth in Recurring EBIT due to near-shoring and infrastructure projects. In Asia, Middle East and Africa, organic growth

of 5.8 percent net sales was broad based, despite softness in China.

2023 Related KPIs

  • +6.1 percent organic net sales growth
  • +14.7 percent organic growth in Recurring EBIT
  • 17.6 percent Recurring EBIT margin
  • 58 percent cash conversion

2024 PRIORITIES

  • Invest in decarbonization and circular construction to drive profitable growth in Europe
  • Pursue further value-accretive acquisitions
  • Continue our expansion in the attractive North American market
  • Accelerate growth in advanced roofing and insulation systems
  • Maintain focus on deal execution and value for shareholders, including profitable growth and shareholder returns

Read how we are Growing in the Most Attractive Markets on page 34 in the 2023 Integrated Annual Report

Holcim contributed to the Arlington Memorial Bridge's first rehabilitation since its opening in 1932 - one of the largest infrastructure projects in the U.S. National Park Service's history

  • Mature markets comprise North America, Europe and Oceania (Australia & New Zealand)

8  HOLCIM  2023 Report on Non-financial matters  Description of the business model

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Holcim AG published this content on 01 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 09:35:57 UTC.