[Music] we are wholesome at the forefront of green building solutions with our world's rising population and urbanization growing demand for better living standards and unprecedented stimulus spending we are building greener cities from rooftop to foundation [Music] from eco-packed green concrete to firestone roofing systems we are enabling smarter infrastructure from renewable energy to green mobility we are deploying innovative solutions like 3d printing to build more with less driving the circular economy we are a world leader in recycling our eco planet range includes the world's first green cement with 20 construction and demolition waste inside pushing the boundaries of innovation we are increasing buildings performance across their life cycle from construction and energy efficiency to repair and refurbishment we are driving digitalization from smarter operations to better customer experience we are 70 000 people around the world empowered to make a difference with our strategy 2025 we are accelerating green growth becoming the global leader in innovative and sustainable building solutions [Music] good afternoon everyone and welcome to our capital market day and welcome to the lounge of our new strategy at 2025. very excited to have so many of you today here live with us in basel and to those of you who can who are connecting by video also a very warm welcome to our capital market day we had a great start this morning um we showed you a bit how our strategy is working is executed in the local markets everything we do is local we have local supply chains local customers and i think it was very exciting this morning to see how wholesome switzerland is leading the way uh in circular construction in digitalization in introducing the new green products and making uh wholesome here in switzerland the global leader in innovative and sustainable building solutions very exciting i think showcase also for how we will build smarter in the future from 3d printing to a new insulation material i would now like to share with you for the next 30 minutes our new strategy what are the targets what are the key initiatives we're going to execute the next five years and then we have exciting uh breakout groups where we address all the key topics or the success factors we want to execute over the next five years time so let me start with an overview on the strategy and then we go in the breakout sessions and after the breakout sessions we have time for your questions and your comments strategy 2022 we delivered what we promised to you three and a half years ago we have set the targets for 2022 and you have seen that we delivered the promised growth significant increase in profitability we have achieved the cash conversion we promised for the last three years so 2021 will be the third consecutive year with the cash conversion above 40 percent very excited to achieve that we have return on invested capital that was always a big question mark from you uh when do we earn our capital cost and i think uh 2021 is the year we can well say that we are now well above 8 in return invested capital and i'm i'm very proud that our teams have achieved this and this will also be a key parameter going forward we also worked on the leverage we promised in the strategy below two times ebta to net debt you know we are well below two times and also here we achieved a new level of financial strength balance sheet strength which is important for us going forward so very excited here to share with you that we deliver one year ahead of plan our targets most important we not only achieved the target but we set the foundation for the future here at olsim most importantly our operating model with the strong local leadership we have taken out one layer of management as you know we have reduced the corporate cost by i think 200 million swiss francs over this strategy period and very happy that this is fully in place fully operating and i think you had a taste this morning about the team of wholesome switzerland how motivated inspired and how empowered they are to lead the markets here in their markets we have then i think our growth model is established where we have growth again and over proportional growth in profitability and also all this then hitting the bottom line most important our strong cash generation we have put sustainability and esg at the heart of what we do fair to say it all started with the new strategy where we are now trying much more holistic view not only focusing on the factory especially focusing on how we make buildings more sustainable to build more sustainable but also to operate the building much more sustainable much more energy efficient and then we want to be the leader of the circular economy in our markets we want to make construction a circular business making new out of old buildings and that's i think super exciting we made a big progress with solutions and products our big acquisition of firestone we will have more details later in the breakout session but we had a superstart 15 organic growth in the first six months of ownership that's i would say a dream start and shows the potential here with our new business segment solutions and products board on acquisitions is also a very big part of our new foundation we have done 28 acquisitions in the last three and a half years very value accretive and you will hear later from our cfo in the breakout session how this is working and how much this is contributing not only to the growth but also to the bottom line so very excited that we are ready now for the next chapter of growth for our new strategy 2025 to become the most innovative and sustainable provider of building solutions come from building material company to a solution company to the global leader in innovative and sustainable building solutions let's look a little bit into the details um first of all construction and building materials is the place to be it's an exciting and growing market based on six megatrends we have listed here it starts with the need for more people to live on the planet more urbanization which needs much more sophisticated building solutions than living on the countryside and of course better living standards demanded by the people and now we have the new requirement of sustainable construction solutions to fight climate change but also to make our economy and construction truly circular so we will have a lot of innovation in the driving building technologies going forward to make building not only decarbonated but especially making building much more efficient going forward we have when you look at buildings today you have 30 percent of the carbon emission in the build phase of the building so in the building materials but 70 is still while operating the building so we not only have to build with less carbon we also have to make the buildings much more efficient during their lifetime and very important we will have more and more repair and refurbishment you know the infrastructure in europe but also in north america plenty of potential here plenty of need to properly refurbish and repair so very exciting market and i'm super excited that at wholesome now we are here placed in the right spot and leading here green solutions for building and for the construction market so we are ready we want to be at the forefront for innovative and green building solutions you saw this morning how in switzerland we introduced the first cement containing 20 recycled demolition waste super exciting and we will also do that kind of products in other markets you will learn more about the green products later we have a special breakout sessions here then the circular economy this is a big part we see ourselves as the main recycler of demolition waste we have the supply chain in the local markets all the points you need to take demolition waste in but also to recycle it and then to put it back into cement and into concrete to build new with old we also have on circular economy one breakout session later where you will learn more details how we do it um very exciting is our solutions and products segment where we are building now new platforms for innovation and above market growth also here later we have a breakout session and you will learn more here why this is so exciting and last but not least we do this of course to increase and further improve the return for our shareholders with superior growth with superior returns and also leading the esg ratings let me go a bit in the detail and i would like to talk about our four value drivers of the new strategy how we want to accelerate growth how we want to expand our new segment of solutions and products how we want to lead innovation sustainability and then also how we deliver superior performance let me start with the growth we will later see much more details i talked already about the fantastic fundamentals of the construction market with the mega trends making it a growth sector but also a sector now for innovation and to make better buildings to make decarbonization a reality in construction we set the new target to grow solutions and products to 30 percent of group sales already by 2025. that's um we are very now convinced this is the right new segment for us after seeing the success we have with firestone very valuable to the company so we are very excited to accelerate here and to double here solutions and products in the next five years we will also continue our bolt-on acquisitions we have actually since the start of the strategy we have increased every year the number of deals in the first year we did four deals this year we're going to do around 12 deals and all very value accretive and we want to also here accelerate here the bolt-on acquisitions we have growth in aggregates and ready-mix business this was also a part of the old strategy to accelerate to close the gap in performance we closed the gap quite a bit we improved growth but especially margins and returns in both in aggregates and ready mix concrete and we want to continue here and capture the full potential digital will be a big part of our future you saw this morning also you will see in the breakout session that we digitalize not only the interface with the customer but also the whole operations uh to have our factories running fully sensorized on big data and then also to have all digital organized with our suppliers solutions and products i like to make a few comments first of all we're going to grow that to 30 of group sales so make it the second biggest business for wholesome by 2025 we have already established a super platform for roofing already firestone when we bought the business it had a run rate of 1.8 billion dollars uh already in the first 12 months we will exceed 2 billion with very good returns that's very encouraging for us and we will uh be very excited here to double the business now in the next five years this roofing platform about half will come from organic growth and the other half will come from acquisitions besides roofing we have other growth platforms there are other interesting market segments with above market growth and also the characteristics we look for in solutions and products i think i have them on the next slide we look for segments which have sustainability innovation a large part of it is focused on repair and refurbishment so ongoing business with strong pricing power we like businesses which are system selling based or specification based selling and then of course technology which help us to reduce the carbon footprint of construction and then at the end this comes with high cash conversion and rather low capital intensity this is all true for our roofing business but there are also other segments in building materials where we could enter in the near future this is um the outlook for 2025. you see the green part solutions and products coming from eight percent so already now with firestone we move 15 maybe already well above 15 with this high organic growth rate and then we want to double that share for the group in the next five years by organic growth but also especially by acquiring other businesses we have i think i talked about this already how we want to grow solutions and products i move to the next slide innovation and sustainability here we are the first company in billing materials who has not only committed to net zero by 2050 but our roadmap is fully fully checked by the science-based targets initiative and this is very important to us we not just make announcements we have road maps and action plans behind how we're going to reach net zero and you see here all these elements which are important to us to go forward from using lower clinker factors alternative fuels we want to go stronger into renewable energies long-term target is that all our factories are run on renewables and then the green product is a huge part where we have a big success with the introduction of eco pact and eco planet our complete range for concrete and cement where we already have a 30 plus carbon reduction on the product plants of tomorrow here to be more efficient is a big part circular economy i'm personally the most excited about that all our sites can become circular can become recycling centers we have all the locations in place to take in the demolition waste to recycle it and to put it back into our new products carbon capture we also talked later in the breakout session about this we have 30 projects at the moment it will become a reality for us and we want to operate the first plant with carbon capture by 2030 to demonstrate it's possible and also to demonstrate how we make it commercially work and have a return then we are active here across the value chain so we are trying to work with other leading companies in the world to make our solutions uh faster a reality you see the examples how we want to electrify our whole trucking we are one of the biggest logistics company in the world with around 100 000 trucks on the road every day and we want to electrify those trucks you saw the examples how we electrify already the trucks also in the plant it's going to be a big part of our future and this cannot be done alone we need partners for this and this is why we partner here with other leading companies we are esg ratings some is very important to us you all as investors know the difficulties with the esg ratings there is a handful on the market with a bit different angles also shows a bit i think that the sustainability and decarbonization is is on the move it's developing is progress in action and there is no one golden bullet or there is not one framework i think this which fits for everyone this is why we still have quite a fragmented view here nevertheless wholesim we believe it's important to engage with everyone and it's important to progress with everyone so this is just the overview and you can expect from us that we were leading those esg ratings here in the future going forward we have then for our company we have a strong roadmap for 2030 and for 2050 and we took for the new strategy 2025 we took these targets and set here eight clear sustainability targets for wholesome for the next five years to achieve and this is our eco-pact our green range for concrete we want to already have 25 of our entire ready-mix sales in eco-packed product range that's a a goal we we want to execute circular economy we are already one of the biggest waste recycler in the world i think we did around 45 million tons in 2021 and now we have the ambitious target to go to 75 million tons we want to reuse back in our products but also as alternative fuels and also as alternative raw materials this is very exciting a big part of our future this is why we also have construction demolition waste as an extra target we believe already the next five years we can use 10 million tonnes of old buildings of demolition waste and recycle and put them back into our product we have green carpets we have at the moment our estimate it's about will be half a billion a year by the end of the strategy nevertheless we will stay within our normal capex budget of maybe 1.4 billion we're going to have lesser complicated cement carpets in the future but everything will move here to decarbonization so there's quite a space for us to switch here the capex towards more green investment we have then also for fresh water withdrawal reduction targets for diversity targets then for our traditional co2 reduction on the cement we also have a reduction target and lastly financing we moved already here a lot with green financing and this will be even a bigger part and we want to have 40 percent of our financing already linked to sustainability criterias by the end of strategy 2025. with this uh delivering superior performance we have of course a detailed road maps for our four business segments cement aggregates concrete solutions and products i i talked already about solutions and products let me talk a bit about cement we are very excited about the future in cement uh we're very excited here to lead the green transformation of cement to decarbonize we believe we have very strong market positions uh very efficient factories and now we want to decarbonize here the footprint and lead here the green transformation for cement and we will talk more about this in the breakout session how this will work here in real life on the aggregate sites we we have improved a lot i think the epda margin they came from somewhere around 19 to already 22 with the old strategy we still have some gap to best demonstrated practice so we look forward here to continue uh we believe our quarries we have over 600 quarries in aggregates globally and there's a huge potential here for better pricing efficiencies and to increase here the returns the same for concrete you see a bit in our sustainability strategy the shift concrete will be more important in the future to decarbonize buildings to make buildings more efficient is it with our eco pack concrete is it with 3d printing we need better concrete in the future and this is why we want to be the green concrete company and do everything here to have the best green offerings for our customers we have solutions and products we talked already about so uh i will continue here to the targets of our strategy 2025. we have set i think ambitious but very executable targets first of all to go to 30 of group net sales with solutions and products we are here very excited about the first success in roofing that makes us very confident that we should do more of the same and not only double roofing but also enter into new technology and growth platforms next to it for me is sustainability we want to accelerate the leadership we are very excited about the first success in sustainability when you look at our new green products when you look at our circular construction model we are implementing in our markets that gives us a great confidence that this is the right way forward and that we have the local footprint and the local strength to make this a reality in all our key markets with these two uh big drivers we want to continue the profitable growth model so we we see a net sales growth of three to five percent every year and on top of that we want to grow operating profit over proportional and here of course we will have questions later in the q a is three to five percent the right the right target or not um i think it's a solid target and shows that we will grow the business with the current pricing and you you remember in the q3 results we shared our price increase of five percent for 2021 alone and for next year we target a similar strong price increase that the growth numbers look a bit moderate but for me it's important that the company is focusing on the growth and then depending on the pricing and so on we will maybe see a higher growth rates or maybe uh these are the most realistic ones important here also we grow operating profit beyond the volumes with all this uh we come to the and to the returns um on the cash conversion we are we are also confident we had 3 billion swiss franc cash flow already in 2019 then we had a record of 3.2 billion free cash flow last year and also this year we expect a cash conversion of clearly above 40 percent that gives us the confidence that we believe we have a great cash flow conversion model also going forward so we increased here the target to 45 percent the same is for return on investment invested capital we increase here to 10 double digit this is quite important to us because it it comes back to the financial discipline we have now at wholesim ten percent roik is is a minimum requirement for all your internal investments actually it's not not even very high for internal investments it can be a high number for acquisitions depending on of course the price you pay but overall for us it's important that we want to be double digit return invested capital and and we have proven the improvements in the last years and we are confident that this is a good number to be achieved with the new strategy on the depth side we want to be below 1.5 times of net depth to ebda also important for us that we have the right firing power that we are solid enough here on the balance sheet to have enough room for attractive acquisitions of course and also for attractive shareholder returns i think if this is what i wanted to share with you as an overview on the strategy i'm very excited to launch it uh today with you here at the capital market day we are looking forward to this to announce we achieve the old strategy early and then set now the new one and also the new targets i think with this now we go to the breakout sessions and we meet later then to have comments and questions from your site thank you very much [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] you