Cedar Ekblom

Cedar Ekblom questioned the impact of changes in the commercial distribution channel (e.g., SRs to Home Depot, QXO acquiring Beacon) on Amrize's business, potential aggressive pricing from distributors, and the perspective on new manufacturing entrants like Kingspan.

Answer

Jan Jenisch, Chairman and CEO, stated Amrize partners with distributors and focuses on providing innovative systems and strong brands to end customers. He noted no negative impact from distribution consolidation and expressed skepticism about new greenfield entrants in the roofing market, observing a trend towards consolidation.

Cedar Ekblom questioned the impact of changes in the commercial distribution channel, including consolidation and new entrants, on Amrize's building envelope and roofing business, and asked about potential OEM pricing negotiations.

Answer

Jan Jenisch, Chairman and CEO of Amrize, stated that the company partners with distributors and focuses on providing innovative systems to end customers, seeing no negative impact from distribution consolidation. He also noted that new entrants in roofing manufacturing are rare and challenging, with the market tending towards consolidation.

Cedar Ekblom from Morgan Stanley inquired about the M&A capital allocation between Europe and LatAm, given the higher number of deals in Europe. She also asked about the strategy and potential for larger, transformational M&A deals.

Answer

CEO Miljan Gutovic explained that M&A decisions are based on strict strategic and financial discipline, not geography, and that the pipeline is equally healthy in all regions. He noted the bolt-on focus in LatAm is more recent but gaining momentum. For larger deals, he confirmed Holcim is constantly screening for attractive regional champions in areas like walling, flooring, and roofing that would fit the NextGen Growth strategy.

Cedar Ekblom from Morgan Stanley inquired about the M&A capital allocation between Europe and LatAm and the potential for larger deals given the current market landscape.

Answer

CEO Miljan Gutovic emphasized a disciplined M&A approach based on strategic and financial fit, not geography, noting a healthy pipeline in all regions. He confirmed they are actively screening for larger, value-accretive deals with regional champions that fit their NextGen Growth strategy.

Cedar Ekblom from Morgan Stanley asked about the M&A focus, noting more deals in Europe than LatAm, and inquired about the potential for larger M&A deals given the current portfolio structure.

Answer

CEO Miljan Gutovic emphasized a disciplined M&A approach based on strategic fit and financial sense, not geography. He explained that the bolt-on focus in LatAm is more recent but has a healthy pipeline. For larger deals, he confirmed Holcim is constantly screening for regional champions in solutions like roofing and flooring that would fit its NextGen Growth strategy.

Asked for more detail on Maersk's M&A strategy, inquiring about the characteristics of an ideal acquisition target in terms of geography, business segment (e.g., warehousing vs. road), and strategic value.

Answer

The CEO outlined three lenses for evaluating M&A targets: 1) Regionally, strengthening their European presence is a priority. 2) Vertically, they aim to expand into industrial verticals beyond their current focus on consumer-facing sectors. 3) Capabilities, they may acquire specific product lines or skills they currently lack, similar to past e-commerce acquisitions.

Cedar Ekblom of Morgan Stanley requested clarification on the Q3 negative calendar effect for Southern Europe. She also asked for a quantification of the potential cost inflation in 2022 if current spot prices were to hold, to better model the required pricing actions to defend margins.

Answer

CFO Sreedhar N. confirmed the negative working day impact for Southern Europe in Q3 was between 1.5% and 2%. Regarding 2022 inflation, he declined to give a spot-based forecast but emphasized that the company is operating as if current inflation will persist and remains confident in its proven ability to pass on costs. COO, CEO & Director Benoit Bazin added that achieving a double-digit margin is a key focus for all managers.