STRATEGY NEXTGEN GROWTH 2030

With its NextGen Growth 2030 strategy Holcim has the vision to be the leading partner for sustainable construction, and unlock significant growth opportunities to create superior value for people, customers and shareholders. 

With NextGen Growth 2030, Holcim will leverage our sustainability leadership to deliver profitable growth in Europe, Australia and North Africa, while accelerating growth in Latin America to benefit from strong fundamentals and industrialization trends.

We will grow our addressable markets by expanding in high-value Building Solutions – from building systems to high-performance concrete. NextGen Growth 2030 will drive shareholder value with growth-focused capital allocation and value-accretive M&A.

“Holcim is best positioned through NextGen Growth 2030 to benefit from the powerful megatrends shaping the future of construction. With this new strategy, we are unlocking significant opportunities to drive shareholder value.”

Miljan Gutovic| Chief Executive Officer

NextGen Growth 2030 Strategic Drivers

Focused investment in attractive markets

With established leadership positions in key markets, Holcim will accelerate growth through organic investments and value-accretive M&A. Holcim will benefit from increasing demand for its sustainable offering in Europe, and is best positioned to capture growth from industrialization trends and demand for mega construction projects in Latin America. In Asia, Middle East & Africa, Holcim will benefit from the strong growth fundamentals in its markets.

Sustainability driving profitable growth

Sustainability will advance net sales and margin expansion, as Holcim scales up its sustainable offering tailored to customer demand with ECOPact and ECOPlanet. Holcim is best positioned to scale up circular construction, with its well-established footprint in metropolitan areas and circular technology ECOCycle®, and will target 20 million tons of recycled construction demolition materials in 2030. It will invest and further innovate to accelerate decarbonization.

Expanding high-value building solutions

Holcim will expand its high-value Building Solutions, from foundation and flooring to walling and roofing systems. It will grow its addressable market by leveraging new sales channels, amplifying synergies, and through organic investments and value-accretive M&A. Holcim’s energy-efficient building systems will capture growing demand for repair and refurbishment solutions.

Performance culture and value creation

Holcim’s embedded performance culture stems from a decentralized, lean business model that can swiftly adapt to market opportunities. Holcim post spin-off will have over 450 empowered local P&L leaders across its three regions. With a total estimated capital deployment capacity of CHF 18-22 billion from 2025 to 2030, Holcim will invest in organic growth and value-accretive M&A with attractive and progressive dividends. Excess capital will be allocated to large strategic acquisitions and opportunistic share buybacks.

FINANCIAL
 

3% to 5% NET SALES GROWTH1

average per annum

 

6% to 10% RECURRING EBIT GROWTH1

average per annum

 

50% CASH CONVERSION2 RATE

average per annum

 

50% / 50% BUILDING MATERIALS3 & BUILDING SOLUTIONS4

split of net sales


1 In local currency, which excludes currency translation effects and large M&A, defined as divestments & acquisitions with annual net sales over CHF 200 million
2 Cash conversion is free cash flow divided by recurring EBITDA. For the post spin-off strategy measures are presented before leases. 
3 Building Materials refers to cement & aggregates. 
4 Building Solutions refers to activities related to building systems & concrete and surfacing.

SUSTAINABILITY
 

>50% ECOPACT AND ECOPLANET

net sales of ready-mix and cement

 

20+MT CONSTRUCTION DEMOLITION MATERIALS

3x recycled volume of 2024

 

<400 SCOPE 1 EMISSIONS5

30% reduction vs 2020

 

33% FRESHWATER 
WITHDRAWAL6

reduction vs 2020
 

5 kg CO2 net / t cementitious.
6 liter / t cementitious.


 

Post spin-off Holcim financial information excludes the contribution of the North American business and transactions and separation costs in connection with the spin-off.

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