Miljan Gutovic on NextGen Growth 2030: Q&A with our CEO
As we embark upon a new era of growth and value creation with our strategy NextGen Growth 2030, our CEO Miljan outlines Holcim’s vision to be the leading partner for sustainable construction.
Q: Why is this such an important day for Holcim?
A: It’s a special day for all of us at Holcim. In March we launched our strategy NextGen Growth 2030. Now we have the chance to put it into action, to unlock additional opportunities for growth and value creation for our customers and our shareholders.
As a leader in the most attractive markets across Europe, Latin America and Asia, Middle East & Africa, we have leading sustainable offerings for our customers.
Holcim has the top three positions in 90% of our cement markets, while 78% of sales come from advanced markets defined by advanced building norms, increasing demand for sustainable construction and energy-efficient refurbishment.
Miljan Gutovic, CEO, Holcim
We have strong financial foundations as well. Holcim generated over CHF 16 billion in net sales in 2024, with an industry-leading EBIT margin of CHF 2.2 billion and free cash flow of CHF 2.2 billion. We will continue to be one of the largest companies in our sector.
All of this enables us to capture tailwinds from powerful megatrends shaping the future of construction – from population growth to urbanization and more – and we’re unlocking significant growth opportunities across our geographies, and in our Building Solutions segment, to achieve above market growth.
Our talented people and performance culture will continue to deliver superior financial performance and value creation. All of this will allow Holcim to continue driving shareholder value through growth-focused capital allocation and attractive cash returns.
And with our strategy NextGen Growth 2030, we’ve committed to industry-leading financial and sustainability targets.
Q: On the topic of sustainability, how will it drive profitable growth for Holcim?
A: Advancing sustainability as a driver of profitable growth, we will grow our net sales and margin in line with our industry-shaping roadmap. By 2030 we’ll achieve industry-leading sustainability targets, and we’re scaling our sustainable offering to meet demand.
We want to reach above 50% net sales of ECOPlanet cement and ECOPact ready-mix by 2030.
Holcim’s accelerated profitable growth in circular construction will increase our construction demolition materials volumes to 20 million tons using our ECOCycle technology platform.
Our innovation will further accelerate decarbonization, as we reduce our net emissions below 400 kg per ton of cementitious.
And to build a nature-positive future, we are reducing our freshwater withdrawal by 33% versus 2020.
Why are we doing all of this? Because it’s the right thing to do and it makes perfect business sense.
Sustainability is driving net sales growth and margin expansion, and we’re seeing rising demand for our high-value sustainable offering while innovative formulation, better energy mix and CO2 avoidance reduces cost.
Miljan visiting Holcim's advanced crushing system in France, a game changer in circular construction
Q: How will you expand in high-value Building Solutions?
A: We’re introducing a new customer-facing segmentation, between Building Materials and Building Solutions, as we expand Holcim’s unique product portfolio.
Building Materials consists of Cement and Aggregates, where we have leading market positions. This is the foundation of our business. We’ll continue to deliver profitable growth in this segment through sustainability initiatives and innovation.
Building Solutions comprises energy-efficient Building Systems – from roofing to walling. And high-performance ready-mix concrete and surfacing – from foundation to flooring.
Expanding high-value Building Solutions is a key part of our NextGen transformation, through which we will grow our addressable market by leveraging new sales channels and amplifying portfolio synergies. We will focus on organic investments and also on value-accretive M&A.
With Building Materials and Building Solutions, we’re serving markets and customers across the built environment.
In infrastructure, Holcim is the partner for mega projects from roads and bridges to new clean energy production facilities.
At the same time, Holcim has tailor made offerings for customers in industry - from data and logistic centers to new factories.
When it comes to buildings, our innovative and sustainable offerings are used to build everything from single-family homes to high-rise towers.
Q: Why is Holcim’s performance culture and value creation so important?
A: This deeply embedded performance culture is the means by which we’ll deliver superior financial returns and value creation for our people, our customers and our shareholders.
Let’s start with our best-in-class leadership team that will drive our new strategy. Together we bring a wealth of experience and expertise, as well as a proven track record of performance.
Our purpose-driven culture, characterized by the Holcim Spirit, is the foundation for delivering superior performance, and this is what gives us a competitive edge.
Health and Safety is our top priority, and our decentralized organization, with more than 450 local, empowered P&L leaders, allows us to adapt swiftly to market opportunities and changing dynamics.
We believe in nurturing NextGen talent. With our in-house Holcim University we’re doing just this to drive superior performance.
All of our employees are engaged behind a clear purpose of building progress for people and the planet.
We continue to innovate through our 7 R&D hubs globally, to develop cutting-edge formulations, and to launch new products tailored to customer needs.
In addition, Holcim MAQER Ventures is expanding the open innovation ecosystem, working with over one hundred startups on next generation technologies for the built environment.
In summary, on behalf of the 48,300 colleagues across five continents, who I’m incredibly proud to work alongside every day, we’re ready to embark on our NextGen Growth 2030 journey.
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