Holcim announces its “Strategy 2025 – Accelerating Green Growth” to become the global leader in innovative and sustainable building solutions, following the overachievement of “Strategy 2022” one year in advance. With “Accelerating Green Growth,” Holcim will achieve profitable growth across all its businesses, fueled by sustainability and innovation. It will accelerate the expansion of its Solutions & Products business to reach 30% of Group sales, positioning itself in the most attractive segments of the construction value chain with new technologies.
Jan Jenisch, CEO Holcim: “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.”
Holcim’s new “Strategy 2025 - Accelerating Green Growth” has four value drivers:
Accelerating Growth
Holcim will accelerate growth across all its markets with leading profitability and cash flow. Holcim’s profitable growth will be driven by innovative building solutions, from ECOPact green concrete to energy-efficient roofing systems. It will lead cement’s green transformation, with solutions like ECOPlanet, including the world’s first cement with 20% construction & demolition waste inside. The company will further fuel its growth with bolt-on acquisitions in mature markets in the aggregates and ready-mix concrete businesses. Strengthening its performance, Holcim will scale up digitalization across its value chain, from its operations and distribution to its customer experience.
Expanding Solutions & Products
Holcim plans to reach 30% of its Group net sales in Solutions & Products. Growing closer to its customers, this business will expand its range of integrated solutions and systems from construction and energy efficiency to repair and refurbishment. This builds on Holcim’s 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
Holcim plans to remain at the forefront of green building solutions, with 25% of ready-mix net sales coming from ECOPact, ranging from 30% to 100% lower CO2 footprint. Holcim will recycle 75 million tons of materials across its business 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. It will further develop next-generation technologies including 30 pilot projects in carbon capture, utilization and storage, in line with its target to operate at least one net-zero plant by 2030.
Delivering Superior Performance
Holcim’s “Strategy 2025 – Accelerating Green Growth” financial targets are:
· 3%-5% net sales growth 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
