Holcim Ltd (HCMLF) Q4 2022 Earnings Call Transcript

Holcim Ltd (OTCPK:HCMLF) Q4 2022 Earnings Conference Call February 14, 2023 5:00 AM ET

Company Participants

Jan Jenisch - CEO

Géraldine Picaud - CFO

Conference Call Participants

Cedar Ekblom - Morgan Stanley

Bernd Pomrehn - Vontobel

Remo Rosenau - Helvetische Bank

Tobias Woerner - Stifel

Martin Huesler - Zürcher Kantonalbank

Yassine Touahri - On Field Investment

Ross Harvey - Davy

Gregor Kuglitsch - UBS

Yuri Serov - Redburn

Brijesh Siya - HSBC

Arnaud Lehmann - Bank of America

Jan Jenisch

Hello, everyone, and invited to our expert convention regarding our 2022 results of Holcim. I'm very delighted to person galore analysts and investors coming today. Thank you for joining. And besides invited for those of you who subordinate america via nan webcast. We're very excited to stock much inheritance pinch you connected nan results. I will springiness you immoderate highlights, and I wanted to constituent retired a fewer of our successful elements of strategy execution, and Géraldine will springiness america immoderate much specifications past connected nan financial results, and past we travel to nan outlook together and, of course, person clip for your questions and comments.

2022 for america was, I would say, a very satisfying year. We -- connected nan 1 hand, we proceed to deliver, present grounds results, first clip supra CHF 29 billion. At nan aforesaid time, we could offset this tremendous costs ostentation pressure. We each knowledgeable and travel besides pinch grounds numbers for nan net for -- and nan free rate travel again. And I'm personally very pleased that besides our full translator led to moreover a stronger equilibrium expanse pinch now a indebtedness leverage of beneath 1x. So I deliberation this is each good delivered.

At nan aforesaid time, we person a large occurrence from our strategy already contributing importantly to nan results pinch Solutions & Products already astatine 19% of group sales, pinch nan accelerated description successful North America already 35% of income and will scope 40% successful this year.

On nan CO2 side, besides very proud that we could importantly trim our footprint by decarbonizing our existing products and solutions, but besides by the accelerated maturation of our caller conception Solutions & Products, starring present to a simplification successful CO2 per nett income of 21% year, and this will proceed present successful alternatively ample steps besides successful nan future.

If I continue, I will time off for nan grounds results to Géraldine later to remark a spot much and would for illustration to constituent retired a fewer things. First of all, our strategy involves a batch of transactions. We did 23 transactions of acquiring aliases divesting businesses. And I deliberation we are doing this successful a very value-accretive manner, buying 6 businesses for Solutions & Products for reasonable multiples. Having past bolt-on acquisitions, 13, to further fortify our aggregates and Ready-Mix, Concrete business.

And astatine nan aforesaid time, our divestments person been very worth accretive because we sold them for very charismatic endeavor values. And put these elements together, we were -- contempt nan biggest income ever, we were capable to fortify nan equilibrium expanse and trim our nett indebtedness by CHF 4 cardinal successful 2022 unsocial execute nett indebtedness ratio of only 0.9x. So I deliberation these are really fantabulous results, and I'm very happy we execute pinch specified a worth subject successful mind. The twelvemonth has started very dynamically. So we are not stopping pinch nan profitable growth. It looks for illustration we are alternatively present gaining momentum.

We person already 7 acquisitions successful nan first 2 months of nan year, different 3 for our Roofing business and different 4 bolt-ons for Aggregates and Ready-Mix. The latest 1 here. Duro-Last, we are very excited. We person bought already successful roofing respective companies. We were starting pinch Firestone, if you remember, this iconic institution for level commercialized rules, past we continued pinch Malarkey different iconic institution for nan residential roofing. And now we're very happy that we could acquired Duro-Last, different starring institution pinch income of complete $500 cardinal and very good positioned pinch premium solutions strategy trading and pinch typical contractor relation they service fundamentally exclusively pinch their solutions. This is simply a awesome fresh pinch our established roofing business successful position of technologies, but besides successful position of channels and customers, and we are very happy we could do this. If you look now astatine nan roofing business, really beardown it became already, it's a $4 cardinal business now for us.

However, successful a ample market, it's a $40 cardinal underlying market. So we person plentifulness of room to proceed to grow. We person plentifulness of plans to grow. And this will beryllium very satisfying for america besides successful nan future. If you look astatine each nan occurrence factors we person pinch nan business, much than 70% of nan income is successful reroofing. So we're not depending connected caller build. We person high-margin reroofing, which is besides increasing because each nan roofs request only replaced. The caller roofs request to beryllium insulated. They request to beryllium green. They request to beryllium solar. So there's a batch of worth for us.

We do already 80% of our income is complete strategy selling. So we're not only trading a waterproofing membrane, we're trading a afloat strategy pinch installation pinch nan creation for nan installation, pinch each nan parts for nan installation. And conscionable by doing so, you triple nan income quadrate meter. And of course, you execute a overmuch higher loyalty pinch your customer, you person a higher value and you evidently person a very bully pricing powerfulness astatine nan end.

Also very happy that our squad executed truthful well. We bought nan business. If you recall, we had betwixt 11x to 12x aggregate erstwhile we bought nan roofing companies, and already past year, fundamentally successful nan first afloat twelvemonth of operation, that aggregate came down to 7x, simply because we are increasing nan bottommost line, and we achieved 19% EBIT margins successful nan roofing business past year.

So this is simply a awesome accomplishment and shows nan awesome fresh these businesses person for Holcim from nan proviso broadside to nan distribution broadside and very happy we could beryllium present truthful successful pinch roofing and already specified a publication for nan Holcim group.

We look astatine North America. With this, we travel from 24% of North American income conscionable earlier nan pandemic, and this is already 35% past twelvemonth and will scope 40%. Very important to us. We are very bullish connected nan North American market.

You tin spot we person already beardown results successful North America from maturation and for margins. And erstwhile you look astatine each nan caller infrastructure bills which person been passed, Anti-inflation Act and truthful on, we're going to person for nan years to come, a very patient bid book present successful North America.

And I deliberation we make this strengthening of North America astatine nan correct time. We spot besides nan floor plan of wholesale now, we do North America, Europe and Latin America is now complete 80% of nan institution and Middle East, Africa, Asia is little than 20%.

This is simply a geographic floor plan we wanted to person for overmuch amended maturation and amended earnings. You besides spot that erstwhile you look astatine nan EBIT, North America is already complete proportional besides successful margin. So I'm very gladsome we could found now this very beardown net floor plan for Holcim.

With this, I would for illustration to talk lastly now astir nan sustainability. It's connected apical of our strategy. We want to beryllium portion of nan solution for decarbonizing not only Holcim, we want to decarbonize successful buildings, nan building industry. And here, we make large inroads. You spot by decarbonizing nan established products and systems, but besides by this accelerated description into Solutions & Products wherever we are talking astir immoderate of nan sustainable solutions for nan built environment.

You spot nan astonishing results. We were already, successful '21, minus 8% CO2 per nett sales. Last year, we achieved to 21% minus. And besides for this year, we target much than 10% CO2 simplification for nan Holcim Group. And I deliberation this is simply a very awesome news that nan roadworthy representation and sustainability we person started years agone is now showing specified bully results.

I deliberation pinch this, I make a speedy summary, what you tin expect from america now ongoing we judge our translator is not only successful.

It will springiness america now awesome results into nan future, fundamentally connected 3 pillars. Profitable growth. We want to turn Holcim by increasing Solutions & Products products, our 4th segment. We had 19% of group sales. We promised 30% by '25.

So I deliberation we're good connected track, but this is thing you tin expect from us.

At nan aforesaid time, we person our highly synergistic bolt-on acquisitions to fortify Ready-Mix and Aggregates. And you tin besides expect here, we will proceed this twelvemonth pinch a precocious number of transactions besides successful this twelvemonth and nan years to come.

Expansion successful North America. You spot besides successful nan document, we had a precocious integrated maturation complaint successful North America successful summation to nan acquisitions, and this is besides thing you tin expect from america for nan coming years.

Then we person a increasing request for nan sustainable solutions. If you look astatine our low-carbon solutions, we person been introducing ECOPack for actual ECOPlanet for cement. They are successful precocious demand. We are virtually sold retired and we person to standard up accumulation capacity to beryllium ordered to travel up pinch nan precocious customer demand, and this is thing wherever we will spot a batch of growth, a batch of worth coming for Holcim.

You tin expect superior capacity ongoing. So we expect nan grounds results to proceed for this twelvemonth and nan years to come. Our free rate travel were astir CHF 3 cardinal has been good established now for nan past 4 years. This is thing we want to present besides into nan future.

And you tin besides expect from america that we make smart choices for nan equilibrium sheet. We make smart choices erstwhile we bargain aliases sell, and please expect that nan equilibrium expanse will stay beardown and will springiness america a batch of freedom, a batch of firepower to make nan correct choices for Holcim's early for investments for acquisitions.

Sustainability, I talked already about. This is connected apical of our strategy, and this will springiness america a batch of opportunities for growth, and we will talk astir this successful item later, but from caller exertion segments, to c capture, we are really good positioned, and we execute present astatine precocious velocity to little nan footprint of Holcim year-by-year.

I deliberation pinch this highlights connected strategy execution and what you expect from america ongoing, I deliberation I'll walk complete to Geraldine.

Géraldine Picaud

Thank you, Jan. Thank you, and bully morning, ladies and gentlemen. I'm very pleased to stock pinch you much specifications connected our achievements successful 2022. It has been different grounds successful position of financial performance. Our nett income grew by adjacent to 13% like-for-like, benefiting from nan beardown pricing successful our humanities businesses and nan immense occurrence of our roofing business.

Our recurring EBIT grew by much than 7% contempt nan important inflation. Both our net per stock and free rate travel person been impacted by nan colony pinch nan DOJ, resulting successful a costs of $778 cardinal successful Q4.

But without this bonzer expense, our net per stock earlier impairment and divestment would person accrued by an awesome 25% astatine CHF 4.96 per share. And similarly, our free rate travel would beryllium supra CHF 3.5 billion, a caller record.

Let's now move connected to our sales. On a afloat twelvemonth basis, our nett income amounted to CHF 29.2 billion. This is up 8.8% versus 2021. And this reflects a beardown integrated maturation of nan business astatine 12.9%. The portfolio translator brought america caller income aliases 4.7%, stemming from nan acquisitions and Solutions & Products.

The divestments successful Cement reduced our income by 6.1%, and this number chiefly stems from nan divestment of India and nan derecognition of our Russian income since March 2022. So present Cement, Ready-Mix and Aggregates business conception grew by 12% connected a like-for-like basis, benefiting from a beardown pricing of astir 14% connected average, somewhat offset by a mini antagonistic measurement effect connected nan backmost of soft markets successful Europe and successful China.

Our Solutions & Products conception grew by 18.5% benefiting from nan outstanding occurrence of our Roofing business. The rate translator that you spot present is somewhat antagonistic astatine minus 1.8%, and this is chiefly owed to nan depreciation of nan euro, partially offset by a beardown dollar.

Let's now move connected to our EBIT. Our recurring EBIT amounted to CHF 4,752 million, up 3% compared to 2021. This effect had a antagonistic effect of 2.5% connected our EBIT, but this was much than offset by nan beardown integrated maturation of 7.2%.

The measurement effect that you tin spot is somewhat antagonistic astatine CHF 41 million, but nan value of nan costs was affirmative passim nan year. And this value of a costs is coming from a beardown pricing of 14% connected average, which, together pinch businesslike power sourcing and costs guidance much than offset inflation.

The publication of our associated ventures somewhat declined because of which suffered from nan lockdown successful China.

Solutions & Products had a like-for-like maturation of 99%. This is intelligibly coming from our roofing business, which demonstrates present that it is simply a cardinal maturation motor for nan group.

This descent shows an wide image of nan capacity for nan 5 regions. Four retired of 5 regions grew their EBIT. APAC suffered from nan precocious ostentation successful India and nan lockdowns successful China.

Let's spell into much detail, and we will commencement pinch North America. The region delivered present a grounds capacity successful 2022 pinch awesome results demonstrating nan effective implementation of our translator strategy.

Market request remains beardown pinch an charismatic outlook driven by each nan national funding, nan infrastructure, finance and Job Act and each nan scheme spending connected power and ambiance change. This makes america good positioned going guardant pinch our unmatched footprint and well-accepted low-carbon merchandise portfolio.

As explained by Jan, North America is nan astir charismatic marketplace for Building Solutions. And therefore, it has been our privilege to create roofing a profitable and fast-growing business successful specified an charismatic market. And you tin spot present really successful nan execution of nan strategy has been arsenic we are moving from CHF 5.7 cardinal of gross successful 2020 to CHF 10 cardinal successful 2022, we're almost double here, nan revenues.

And you spot arsenic good that Solutions & Products now correspond nan biggest conception successful nan region arsenic we proceed our travel to further grow successful this segment.

Let's now move connected to Latin America. The region delivered beardown profitable maturation successful 2022. We observed robust dynamics successful Mexico and Colombia and El Salvador. Growth continued to beryllium fueled by a patient pipeline of infrastructure projects, particularly successful Mexico. Price of nan costs was affirmative successful some nan afloat twelvemonth and successful Q4 2022, led by beardown pricing.

The region further progressed connected its sustainability travel achieving important betterment successful some materials recycling and replacement substance usage.

Let's spell adjacent to Europe. The region delivered beardown results, achieving bully profitability. And this amidst softer measurement since mid of nan year. Price momentum was excellent. The region intelligibly demonstrated its beardown expertise to incorporate costs ostentation and optimize power achieving a affirmative value complete costs for some nan afloat twelvemonth and for Q4.

The region is astatine nan forefront of Holcim's nett 0 travel by systematically accelerating nan usage of replacement fuels, expanding greenish income from ECOPack to ECOPlanet and making accelerated advancement successful greenish power sourcing.

Turning to Middle East Africa. The region has consistently delivered bully group of results during nan twelvemonth connected a like-for-like basis. We observed bully request crossed cardinal markets. Price momentum remains strong, particularly successful Egypt and Nigeria. The region achieved a affirmative value complete costs successful some nan afloat twelvemonth and successful Q4.

Moving to APAC. Australia delivered a bully capacity connected nan backmost of patient marketplace dynamics and affirmative value momentum. In China, we saw a softer request owed to nan COVID lockdowns. But if we exclude China, nan region recorded a affirmative value complete costs successful Q4. The region besides made bully advancement successful improving its clinker facet and accelerating nan usage of replacement fuels.

Finally, nan slides attraction connected Solutions & Products wherever we continued to amended our margins successful Q4. Solutions & Products now correspond 19% of nan group nett sales. In North America, we accelerated maturation this twelvemonth pinch nan successful acquisitions of SES, Foam and Polymers, Sealants North America. This -- and Malarkey, obviously. This allows america to connection a complete merchandise scope to present sustainable and energy-efficient solutions.

Let's now look astatine nan afloat P&L. We've already commented nan recurring EBIT that is increasing astatine 3%. Next line, if you spell to Restructuring, Litigation and Others really contains nan solution pinch nan DOJ and its related ineligible costs for astir [$779] million.

Then arsenic you tin see, we person managed this twelvemonth again for nan 5th consecutive twelvemonth to trim our financial expenses. Our effective taxation complaint appears astatine 30%, but this is wholly owed to nan costs that we made to nan DOJ, nan [$778] million, which is evidently not taxation deductible.

And if you return that out, our effective taxation complaint amounts to 25%, for illustration successful erstwhile year. Due to nan divestment of India, nan nett income attributable to nan number shareholders has importantly declined. So each successful all, our net per stock earlier impairment and divestments magnitude to CHF 3.66 per share, including nan resolutions pinch nan DOJ.

But if we exclude it aliases net per share, is up 25% and magnitude to CHF 4.96 per share. This year, we person chosen besides to remark nan EPS reported connected an IFRS ground owed to nan materiality of nan impairment and nan superior gain, nan nett superior summation connected nan divestments.

Indeed, nan impairment amounted to CHF 673 million, and this is chiefly owed to Russia, wherever we person impaired wholly nan assets, depreciated each assets owed to nan existent situation. The nett superior summation connected nan divestments magnitude to CHF 1.8 cardinal and it comprises nan superior summation connected India, which is simply a spot much than CHF 2 billion.

So that leads america to a reported net per stock of CHF 5.48 per share. Let's now move connected to free rate flow, we are very proud and very happy to study a free rate travel supra CHF 3.5 billion, if we exclude nan solution pinch nan DOJ and nan related ineligible costs [$779] million.

Despite nan unfavorable alteration successful moving capital, nan effect has been contained to CHF 300 cardinal successful nan discourse of growth. The profit aliases nan publication to our rate of our JVs has increased, acknowledgment to higher dividends received. We had incurred nonrecurring expenses successful 2021. That did not hap successful 2022 isolated from nan DOJ, which besides we're benefiting successful our rate this year. So each successful all, our free rate flow, including nan colony pinch nan DOJ amounts to CHF 2.8 billion.

And that leads maine to nan debt. Our nett indebtedness has reduced by CHF 4 cardinal and now amounts to a very debased magnitude of CHF 6 billion. Obviously, we person benefited from nan free rate travel that you tin spot for CHF 2.8 billion. And past nan portfolio translator had a nett affirmative effect of CHF 3.7 billion, acknowledgment to nan high-value get and nan precocious valuation obtained successful nan divestments. Indeed, nan proceeds amounted to CHF 7.2 cardinal little nan rate disposed of CHF 1 cardinal and nan caller acquisition of CHF 2.6 cardinal gives you nan nett of 3.7 affirmative net.

We person besides paid dividends for CHF 1.6 cardinal to each our shareholders.

We person bought astir 0.5 cardinal of treasury shares. And we person started a stock buyback programme that represents CHF 400 cardinal of spending arsenic astatine year-end. So pinch specified a very debased indebtedness and fantabulous leverage of 0.9x, arsenic Jan mentioned it, we are really acold beyond aliases good beyond nan nonsubjective of being beneath 1.5x that we group to ourselves for 2025.

So pinch specified a beardown equilibrium sheet, we felt it was important to spell done our superior allocations principle. And nan first privilege is for nan portfolio translator and to put successful acquisitions and projects that will bring growth, profitable and sustainable growth.

With specified -- and arsenic agelong arsenic our equilibrium expanse remains strong, we are, of course, very happy to stock our occurrence pinch our shareholders. This is why we proceed nan execution of nan stock buyback programme successful 2023, which will lead to either 40 cardinal shares much aliases a maximum of CHF 2 billion.

The shares will beryllium projected for cancellation astatine nan adjacent AGM. On apical of this, we are besides expanding our dividend by 14% to CHF 2.5 per share. And you retrieve that this is besides exempt from Swiss withholding tax.

So earlier handing complete to Jan, I want to convey nan teams for their difficult activity and nan bully teams play on these past -- 5 past years. Over to you, Jan.

Jan Jenisch

Thank you, Geraldine, and we travel to nan outlook. We are capable to springiness you a very assured outlook for year, 2023. We person bully bid books crossed our cardinal markets. We person successful nan European market, which has been softened since May past twelvemonth by 3% to 5%.

Nevertheless, we are capable to person bully margins. We are capable to amended a batch pinch our sustainable products now wherever we get bully pricing and precocious demand. So besides for Europe, we expect a very coagulated consequence for this year. And past we person our maturation regions of North and Latin America wherever we person very bully bid books and a batch successful nan pipeline to beryllium very successful this year.

So we are guiding for a affirmative growth, 3% to 5% is what we opportunity successful our strategy 2025. So astatine this point, we want to time off it there. At nan aforesaid time, we judge our margins are astatine nan correct level for this year. So we judge we're going to person an complete proportional summation successful EBIT for this year.

And besides for nan rate flow, we want corroborate that this will beryllium besides a satisfying twelvemonth of astir CHF 3 cardinal rate flow. And then, of course, we're going to spot a further simplification of nan CO2. As we discussed before, we person actual target of much than 10% of CO2 simplification per nett sales, what we want to execute this year.

Year started well. You person seen 7 acquisitions already successful January and February. So we are not only disconnected to a bully start, we person a batch successful nan pipeline. So each quarter, we talk astir nan outlook and each quarter, we person alternatively accrued nan outlook. And I deliberation I was saying that location is nary recession astatine Holcim, and this is what we still spot today.

Holcim going to person a beardown 2023 for measurement income and past particularly besides for bottommost statement and particularly for strategy execution, much solutions and products, America, much sustainability.

I deliberation these were nan highlights and nan views we would for illustration to stock pinch you, and now we are very happy to person your questions and comments.

Question-and-Answer Session

Q - Cedar Ekblom

It's Cedar Ekblom from Morgan Stanley. I've sewage 3 questions. Firstly, Jan, tin you talk astir your modulation to nan Chairman role? How is that going to alteration your day-to-day engagement successful nan business? And past 2 questions connected nan U.S. Solutions & Products and Roofing market. It's been a awesome maturation communicative for nan business. There is, however, a small spot of interest retired location successful nan marketplace astir that business and that manufacture complete earning and whether Holcim is acquiring assets astatine nan highest of nan market? Can you show america really you spot that business today, nan marketplace backdrop? And past secondly, erstwhile we deliberation astir nan correct separator for roofing complete nan adjacent 3 to 5 years, you talk astir nan upselling potential, star roofs, greenish roofs, cool roofs, et cetera. And you're besides buying much products into nan business, Duro-Last is evidently a awesome illustration of this. How precocious tin that separator be? How do we deliberation astir nan separator modulation for Roofing?

Jan Jenisch

All right. Cedar, convey you truthful overmuch for nan questions. So I'll commencement pinch nan 2nd one. Look, for Solutions & Products, we person conscionable started. So while we are very happy to study already specified convincing results and while Solutions & Products has already specified large effect connected our maturation and profitability, we conscionable started 2.5 years ago. And I'm very happy that nan squad astir Jamie put together specified a winning look to tally nan business to use from our synergies arsenic nan largest building materials institution from proviso concatenation to nan customer, truthful I'm very happy, and we conscionable started.

So we person achieved 19% EBIT separator successful this now $4 cardinal roofing business already. I deliberation that that's very remarkable. But I deliberation our targets spell beyond that. How acold beyond? We will not make immoderate precise number today.

You tin besides spot immoderate of nan peers who person numbers retired location for North America, you will recognize it's a very charismatic marketplace from nan returns.

And we are very happy we could participate there. And we conscionable started. You tin spot now besides ongoing. And regarding a highest of market, I don't deliberation we person a highest of nan market. We had ace disruptions to woody pinch successful roofing complete nan past 2 years.

We had from -- coming from corona, from nan corona lockdowns. We had a batch of challenges, and our teams person managed this very wisely and very successfully, and we look guardant to a very beardown roofing marketplace ongoing.

Regarding our organizational changes, first of all, possibly fto maine commencement by -- I'm very -- I'm committed to Holcim, 100% for nan adjacent 10 years aliases whenever personification will decide, it's not basal anymore. But for myself, I'm motivated, and I ever stock that pinch everyone, Holcim is my ngo to make nan translator into nan astir sustainable and innovative company, and that's what I want to do until I retire.

Now regarding nan position, I was very happy now to succeed. As our Chairman has decided not to guidelines for reelection. So nan Board decided that I'm nan earthy successor location for continuity and to guarantee that we proceed arsenic beardown arsenic we are.

At nan aforesaid time, we person nan business that we person nan highest velocity ever successful our execution. We person 7 acquisitions successful nan past 2 months. So nan Board astatine nan aforesaid clip has asked that this very successful squad we person coming continues for this twelvemonth to make judge we're not losing immoderate speed.

So for me, not overmuch is changing. I will tally nan institution for this year. And past we look guardant aft that to person a very beardown succession for CEO. I look guardant to that, hopefully, smarter personification pinch a batch of energy. And past I will beryllium around.

And I will make Holcim my ngo beyond my CEO word because that's what excites me, and that's wherever my passion is.

Bernd Pomrehn

Bernd Pomrehn from Vontobel. You mentioned that you are sold retired for immoderate products successful immoderate regions. Could you talk a small spot astir your CapEx plans, CapEx priorities? Roughly, really overmuch will beryllium dedicated to nan Americas? For example, really overmuch will beryllium dedicated to Solutions & Products? How overmuch will beryllium dedicated to greenish products? Just to springiness america astir an idea.

Jan Jenisch

First of all, I'm very happy to put successful nan business. This is key. This is cardinal to make products decarbonized, decarbonize nan process. So very happy to proceed to invest. We -- however, we recovered a very bully level of CapEx for each those years, astir CHF 1.4 billion. And we recovered that this is capable to, of course, support nan institution astatine nan highest level, but astatine nan aforesaid clip to make each nan greenish investments.

And we person just, I think, besides successful nan position that we are now astatine -- I deliberation astatine CHF 400 cardinal positive CapEx already simply for decarbonization, which is simply a very bully number, and this will proceed to grow. At nan aforesaid time, our institution will beryllium little capital-intense. So nan business is for illustration roofing. They person much, overmuch little finance needs successful percent of sales.

So we person very breathtaking projects going forward. Now specifically to your question, location are 2 answers to your question. The first 1 is that, of course, North America is simply a ace charismatic marketplace and we want to make judge not to miss retired connected each these opportunities. And erstwhile I perceive to my squad successful North America, that opportunities are conscionable starting.

You spot our precocious maturation numbers besides organically, but you spot for nan early pinch this Anti-inflation Act and truthful that is immense request for us. So we want to make judge we are fresh for that. So we invest, of course, successful nan business.

At nan aforesaid time, we person successful Europe, but besides successful Latin America, very breathtaking opportunities for decarbonization investments, and they person very precocious returns. So that's nan 2nd portion of my answer.

It's not that we now displacement each nan CapEx to North America, we person very charismatic CapEx besides for nan different regions. And we do that very simple. We don't moreover do overmuch budgeting for -- by state aliases by scope because we fund task by project. We want to spot nan astir charismatic projects get nan money, nary matter if they are successful this region aliases that region.

Elodie Rall

Can you perceive me?

Jan Jenisch

Elodie, we perceive you well.

Elodie Rall

Okay. Great. Well, congratulations connected your caller moves to some of you, truthful amended luck. I person 2 questions. Maybe nan first 1 connected your guidance. The 3.5 -- nan 3% to 5% like-for-like income growth. So if you could springiness up a spot connected wherever you spot pricing successful there, nan carryover from what has been announced already and nan further value increases that I suppose you're trying to push done and volumes? So what should we expect for volumes mostly for nan group successful '23? And if you could springiness america nan large trends by division, that would beryllium helpful. And past I conscionable person a follow-up connected nan separator mobility connected Roofing. So you are astatine 19% margin, but your Solutions & Products is that 12%. So I was conscionable wondering what's diluting that separator overall? And wherever do you spot that 12% going into '23?

Jan Jenisch

Yes. Thanks, Elodie. We give, astatine this point, not nan precise guidance connected nan targets, of course. But obviously, we are very assured and wherever does nan assurance travel from is that we person this immense hyperinflation situation past year, and we had to raise nan income prices by 14% successful nan past twelvemonth to make and travel retired pinch a grounds result.

And that was not an easy task, and I'm very proud astir our regions and our cardinal countries to make this happening. We only had a very fewer markets who couldn't offset nan costs ostentation but we could offset it successful astir of our markets. So I'm very proud of that. And now we spell pinch immoderate hangover into this caller year. And of course, we person a very beardown shouldn't opportunity hangover, but we had a very beardown business now connected nan pricing.

And astatine nan aforesaid time, we person now a alteration successful costs since December from power and others.

And nary matter really nan costs business plays retired this year, we are very assured that we are successful a very saccharine spot for nan separator for 2023. Your much elaborate questions connected countries aliases wherever it is? I'm a spot hesitant to reply now. I deliberation we tin talk astir this much aft Q1 reporting.

For now, possibly conscionable return backmost that we're very assured successful nan outlook, and that's why we guideline not only for maturation but besides for over-proportional margins and EBIT. This is simply a spot nan aforesaid for nan Solutions & Products business. Of course, you spot we person motors, we person we person different segments successful Solutions & Products. And obviously, they request to drawback up now pinch nan roofing business. And there, we person a very large upside imaginable present successful Solutions & Products to summation nan margins already this year.

Remo Rosenau

Remo Rosenau, Helvetische Bank. Going backmost to firm governance, you conscionable said that you're committed to Holcim for 10 aliases immoderate years. So should we deliberation astir your caller domiciled alternatively being benignant of an Executive Chairman domiciled aliases conscionable nan Chairman role? First question.

Second question, is location immoderate penchant astir your successor arsenic a CEO successful position of soul aliases outer solutions?

Jan Jenisch

Remo, I deliberation Holcim has been committed to highest levels of governance for nan past years and is committed to do truthful successful nan future. So you noted that moreover successful today's property release, we wanted to stock really we person Hannes Sorensen, who is already our Vice Chair, becomes nan lead Independent Director pinch ample competencies to make judge we person nan checks and balances.

I deliberation astatine this constituent successful time, we person to return attraction of Holcim and nan shareholders, and you tin ever deliberation astir governance, what container to tick. But we're going to return each nan correct boxes and do what's nan champion activity for Holcim. I deliberation this is Board had successful mind. And this is why they besides took nan courageousness to say, you cognize what, this year, we want nan squad to run. We don't want to disrupt now pinch a change.

So for me, that's each good organized, and I look guardant to beryllium doing that this year. For nan succession, let's hold for nan succession. We person awesome group successful nan company. We person awesome talents, and I don't deliberation we will person an rumor to name nan CEO succession.

Remo Rosenau

I mean I don't person immoderate rumor pinch this double instruction for 12 months-or-so. My mobility was conscionable erstwhile that is over, erstwhile location is simply a caller CEO and you will beryllium nan Chairman, will you beryllium a much progressive Chairman than benignant of an Executive Chairman aliases conscionable having a akin domiciled arsenic Mr. successful nan past?

Jan Jenisch

I don't want to talk astir early and past Chairman positions. I'm committed pinch Holcim and I will put my acquisition and my power successful for Holcim successful a affirmative thing. This is not thing astir ego aliases something. This is astir Holcim and my ain occurrence is only measured successful nan occurrence of Holcim and that tin beryllium assured that we will person harmony, teamwork and a batch of occurrence successful nan future.

Remo Rosenau

Okay. Okay. Then let's time off it astatine that. Something wholly different. You mentioned this 21% simplification of CO2 footprint comparative to sales. Of course, astir of that is owed to nan structural changes. I mean you sold India, that unsocial is changing this ratio a lot. . Do you person besides benignant of an integrated number? How overmuch did you trim nan CO2 footprint pinch not including each these changes?

Jan Jenisch

Of course, we person that. And again, this number is simply a operation of various things. First of all, nan strict decarbonization of, let's say, cementitious products, which was astir 2% past year, positive nan income growth, truthful nan number will beryllium higher for this calculation. And then, of course, we person decarbonization done these little car products we are introducing to nan market. And past we have, of course, large translator by expanding into sustainable solutions for illustration roofing, for illustration insulation and So it's a combination. And nan larger portion of this simplification comes from nan 2nd portion of nan equation. But nevertheless, I deliberation that's nan correct strategy for nan company, and I'm very happy we make specified important progress.

Remo Rosenau

But location is nary actual number benignant of -- location is successful nan yearly report...

Géraldine Picaud

Of course. Of course. We proceed to people our kilos of CO2 emitted by per tonne of cement and connected a like-for-like basis, it has reduced by 2%.

Remo Rosenau

Last question. Without immoderate further pricing actions, what would beryllium nan spillover effect from each you person done already into '23?

Jan Jenisch

The mobility is really is nan costs ostentation turning this year? On nan pricing, we are assured we person a bully pricing successful place. We person particularly nan bully caller products successful place. The mobility is, is power costs rebounding backup high? Are they staying wherever they are? So that's nan point we don't know.

For us, honestly, aft managing nan hyperinflation past twelvemonth connected a play basis, however, nan costs situation will carve retired this year, we are prepared. So that's why we springiness nan guidance and we're going to person an overproportional summation successful margins for 2023.

Operator

The adjacent mobility comes from nan webcast and is from Mr. Tobias Woerner pinch Stifel.

Tobias Woerner

Yes. Apologies straight from my surviving room. Two questions, if I may, Jan and Geraldine. Number one, you've been rather progressive successful position of divestments. Should we expect much here, particularly connected nan emerging marketplace broadside and successful discourse of listed entities wherever you can't get nan rate retired via dividends? And if so, do you consciousness that this could beryllium a much difficult process?

Secondly, past moving connected to nan different broadside of nan M&A, i.e., nan acquisitions. A number of your peers are benignant of much cautious connected nan first half and perchance for nan afloat twelvemonth '23 successful position of doing much sizable deals. Is -- does that besides use to you aliases are you simply focused connected nan opportunity alternatively than nan timing fixed your beardown equilibrium sheet?

Jan Jenisch

No. Look, I don't want to remark connected others. But look, we travel from a grounds twelvemonth coming from a strategy which useful and shows results. So we person nary logic now to alteration strategies, and you tin expect much of that from america successful nan future.

We demonstrated already that nan twelvemonth started very active, 7 acquisitions. And we person a fewer much successful nan pipeline. We mightiness publication astir successful nan weeks aliases months to come. So we are very positive, and of course, person nary logic not to be.

The aforesaid connected nan markets. We gave a very affirmative outlook because it's affirmative for us, particularly pinch nan state profile, we now person established successful Holcim. And talking astir nan state profile, we person nan floor plan we wanted to execute pinch a spot little emerging markets.

Now much than 80% of nan income is successful North America, Europe and Latin America and that's nan floor plan we wanted to have. So we person nary contiguous divestment needs from immoderate different countries. There mightiness beryllium immoderate decisions successful nan early wherever we divest a fewer businesses. But I deliberation nan floor plan we now found successful position of geography, that's what we wanted to achieve.

Martin Huesler

Martin Huesler, Zürcher Kantonalbank. I person 2 questions. I'll inquire them 1 by one. First of all, I was amazed by nan rather debased power measure '22. Can you opportunity really -- what's your position for this year? What's your hedging strategy? And do we spot incremental summation successful nan wide power measure for this year?

Jan Jenisch

I deliberation I springiness that mobility successful a 2nd to Géraldine because she is very -- rightfully very proud of the, I would say, smart contracting. At Holcim, we ne'er make a shortcut successful nan proviso chain. We ever make judge we are decently supplied. We judge successful semipermanent contracts pinch inferior companies. We judge successful smart prebuying, not hedging, prebuying of products we request aliases power we need. And we person been doing that for each nan caller years. And you remember, we ne'er talk astir hedging astatine wholesale because that's thing we do rather good complete each those years. We've done good successful 2022, and we've done it now -- Géraldine told me, we've done it exceptionally good for this year, but...

Géraldine Picaud

Yes. No, absolutely. So you spot it. I mean nan markets person accrued astir 80% successful 2022 erstwhile our power measure has only accrued by 40%. For 2023, we don't person immoderate dogmatic attack connected hedges, arsenic Jan mentioned.

So we are trying to support bottoms views and having a pragmatic attack to our power costs for 2023. We spot that it could summation level to precocious azygous digits. That's a spot nan scope because we don't person crystal ball. For nan logic besides we are not afloat hedged. We are astir 2/3 of nan hedgeable portion is hedged, to reply your questions.

Martin Huesler

And nan adjacent question, turning backmost to nan CO2 development. And obviously, successful Europe, nan authorities gets tougher, allocation has go smaller. So what's your -- do you person -- obviously, you have, but will you stock this a simplification scheme successful Europe? And really does this comparison to what nan trading strategy is want you to do? Can you fulfill that? And do you still person excess emanation authorities successful Europe?

Jan Jenisch

So yes, convey you. First of all, I'm excited astir nan CO2 strategy successful Europe. And I ever said that erstwhile nan CO2 value was astatine EUR 20, I deliberation I said, I wish it's EUR 100 because that gives america nan needed return connected our investment. I deliberation it's now astir EUR 100 aliases something, and that's a bully value that gives america a batch of return connected nan sustainability investments because nowadays, everyone is short successful our manufacture connected CO2 certificates.

So now -- and you tin spot that now successful nan beardown unit we person successful nan pricing. We person significant. We had nan biggest income value increases successful our accepted business segments were successful Europe past year. And 1 of nan cardinal drivers aliases nan cardinal driver is sustainability and nan CO2 scheme.

And CO2 strategy has 2 awesome mechanisms. First of all, it's an inducement strategy to trim caller emissions because we straight prevention nan CO2, truthful very precocious return. And secondly besides because it's difficult to nutrient other tonnes, which are not covered by certificates, you person besides a limitation successful marketplace volumes and some led to highly beardown pricing successful nan European market. And nan 1 who's moving faster than nan title is nan 1 benefiting and we person nan clear target to tally accelerated successful simplification of this decarbonization rate.

Operator

The adjacent mobility comes from nan telephone and it's from nan statement of Yassine Touahri pinch On Field Investment.

Yassine Touahri

Yes. So 2 questions. First, what cardinal portion -- what would beryllium nan cardinal pieces of proposal that you would see giving to nan adjacent CEO of Holcim based connected nan successful maturation and translator strategy that you've implemented astatine Holcim and astatine before? And what do you deliberation will beryllium nan cardinal challenges for your successor? And past 2nd question, which is possibly a small spot much technical. It seems that you've stopped disclosing volumes successful your position connected your yearly report. Is location immoderate mentation for these decisions?

Géraldine Picaud

Now -- truthful yes, and you're right, we don't disclose nan volumes successful specifications by state pinch respect to cement anymore. You're wholly right, but we disclosed nan effect of nan volumes for this activity. And besides I presented it during nan financial part. But you're right, we -- pinch nan portfolio transformation, we person decided not to springiness circumstantial specifications connected nan volumes of 1 conception per country. That's right.

Jan Jenisch

On nan succession, it's very simple. If you person nan champion successful mind for each SIM, we dream that nan adjacent CEO will beryllium amended than nan existent one. With precocious energy, smart, and while we each for illustration nan existent strategy and we -- and it shows results, nan strategy has to beryllium perpetually developed and -- possibly location will beryllium different segments we could participate successful nan future. So I'm nan first 1 to beryllium unfastened to immoderate strategical development. And again, I dream nan adjacent CEO will beryllium stronger and higher power to bring Holcim past to nan adjacent level of performance.

Unidentified Analyst

No, I'm [Samuel Weber], I'm an independent wealthiness manager. And fixed your awesome results and debased leverage, it seems you person a batch of firepower financially. Do you deliberation you tin usage that each for acquisitions? Or if not, nan model seems to beryllium closing rather accelerated to beryllium capable to bargain backmost undervalued shares. So really do you deliberation astir that successful nan future? And nan 2nd mobility would be, location is only one, I don't cognize nan connection successful English, but [Foreign Language] successful you're awesome -- different very awesome operational results. And this is nan CHF 6 cardinal Ready-Mix Concrete business, nan EBIT margin, and really should we deliberation astir nan improvement of those 2.4% going forward?

Jan Jenisch

Thank you for nan question. I'll commencement pinch nan 2nd mobility first. So nan Ready-Mix Concrete business is simply a business which is very debased superior intense, but astatine nan aforesaid time, has very challenging margins. For us, why we ever for illustration nan business is we are supplying our aggregates and our cement products wrong that business. So we person immoderate vertical synergies and vertical margins you cannot underestimate. Nevertheless, it's our large target to amended nan profitability importantly besides successful this business segment. This is why we ever show it separately, and we besides person established abstracted profit and nonaccomplishment activity for this business conception successful nan countries. I deliberation that conception will beryllium besides highly important successful nan early for decarbonizing buildings and nan measurement to build because to person little CO2 successful nan last actual is nan existent target and that's why we judge this conception is besides very important strategically for america successful future.

Regarding our rate position and our indebtedness position, first of all, I'm -- we're very happy to beryllium successful this situation. Very happy we could make each this strategical displacement pinch specified a value-creative momentum. So we are successful a bully spot.

I personally was very excited to make nan stock buyback and past we decided to make it arsenic an definitive buyback because we don't want to harm our early opportunities. So we said, let's return now CHF 2 billion, but let's usage them wrong 5 months, and let's not person a long-hanging stock buyback because we want to beryllium together successful May and spot what are nan projects successful nan pipeline? What are nan investments? What are nan acquisition opportunities?

And past we tin return possibly nan adjacent decision. And past we person to determine astatine what level nan banal is undervalued? It's CHF 60 aliases CHF 70. And past we person to put this each together. I deliberation this is nan measurement to do it.

And first of all, we are very happy to person each that shareholder worth we create besides pinch an summation successful nan dividend stock buyback. And past successful May, we beryllium together and we spot really overmuch money we walk for acquisitions, what's successful nan pipeline and -- and that's a very -- I would say, a very comfortable position of spot we are having.

Operator

The adjacent mobility comes from nan telephone and it's from nan statement of Ross Harvey pinch Davy.

Ross Harvey

My 2 questions. The first 1 relates to return connected invested capital. And clearly, you've made a batch of advancement there, not conscionable this year, but successful caller years. I'm hoping, Jan, you mightiness beryllium capable to picture nan effect of nan displacement to Solutions & Products arsenic portion of that? I cognize you mentioned that there's little superior strength successful immoderate of those businesses. But if you tin reside nan constituent astir possibly margins and plus move and what nan business would look for illustration from a returns position arsenic that modulation continues?

And nan 2nd 1 is successful narration to your outlook. I'm wondering if you tin reside North America successful particular, fixed nan size arsenic portion of nan group? Just what are you seeing location crossed your different merchandise lines and nan grade to which nan infrastructure backing tin lend to your 2023 financials?

Jan Jenisch

Thank you. If you look astatine nan superior strength of Holcim today, we person shifted already a lot. We are now connected a caller guidelines of astir CHF 1.4 cardinal of CapEx, which is now beneath 5% of our nett sales. So that's a caller level, and that's acknowledgment to nan displacement to Solutions & Products, but besides acknowledgment to very smart finance and CapEx decisions successful our accepted cement business.

And you tin expect this to proceed pinch us. When you look astatine solution products, isolated to your question, I would opportunity this business has -- we target astir 3% CapEx for nan business, which is plenty, plentifulness to grow. If I don't turn successful that business, I tin spell beneath 2% of sales.

And this is what you tin expect from us. We are already beneath 5% of CapEx by nett sales, and this will beryllium further decreasing complete nan years to come.

You had a mobility connected our American outlook. We person our caput of North America present I don't fto him speak, he's excessively bullish. But you tin drawback them possibly complete luncheon later. Look, nan North American marketplace is successful a very bully stage. We are sold retired still connected definite products.

We person bully bid books. And astatine nan aforesaid time, each these immense authorities bills, authorities initiatives person not started yet, truthful we expect them to travel successful later this year. And these programs, they are truthful important for us, they will person a runway for america for nan adjacent 5 to 8 years. So this is why we are truthful affirmative connected North America and affirmative connected each nan investments we person done to grow this region for Holcim.

So we person a very affirmative outlook. We're going to person a very bully consequence this twelvemonth successful North America. And what's moreover much important is nan outlook is moreover much attractive. Now I was besides a spot bullish,

Unidentified Analyst

It's [indiscernible] Two questions. First, location was a connection this greeting made by you that we should expect a mates of bigger acquisitions but nary blockbusters. So could you possibly springiness immoderate spirit what this it intends successful position of size thing akin for illustration Duro-Last?

Jan Jenisch

Yes. And we person been very good, I think, successful our acquisition strategy. If you look successful our materials, we springiness you an denotation that -- for example, successful roofing, we are already from -- we bought astatine 11x, 12x EBITDA aggregate based connected past year's results, we are down to 7 already. So obviously, we do this very well. And I deliberation what is important to recognize nan size of acquisitions, nan mini to mean ones, they are nan ones alternatively easy to integrate, easy to lead. And erstwhile it gets excessively big, you person each these issues connected timing, connected who is responsible for that. And this is what I was a spot elaborating around.

I mean, obviously, we were having a CHF 2 cardinal acquisition pinch Firestone, and we made this very successful, and we person Malarkey and Duro-Last, 2 besides important businesses pinch $500 cardinal to $600 cardinal of nett income from nan start.

So we consciousness very comfortable pinch those type of acquisitions. And we consciousness besides comfortable pinch nan loans. They are successful nan scope of possibly CHF 20 cardinal to CHF 200 cardinal each, and they are moreover nan easiest connected synergies because they are section -- usually family-owned businesses and they are alternatively accelerated successful integration and successful realizing synergies.

So this is simply a spot nan spot of Holcim. This bolt-on to medium-sized acquisitions, they activity very well. And nan mobility this greeting was astir for illustration mega acquisition and I'm conscionable -- I don't opportunity nary to this, but we person to recognize that tin beryllium rather analyzable and lengthy process.

Unidentified Analyst

Okay. And past maybe, Ned, successful position of leverage 0.9, you're now astatine nan lowest level for a mates of years. So is this a scope that we should expect to keep? o would you spell backmost to nan 1.5x aliases moreover 2x?

Jan Jenisch

Look, I deliberation what is important astir nan spot of nan equilibrium expanse that you person nan entrepreneurial state to do nan correct things, right? When you are astatine 2x-plus and you want to bargain Duro-Last, you person to discuss pinch immoderate banks to springiness you in installments aliases something. And this is not a bully position to beryllium in, and I deliberation it's a precocious worth for a institution for illustration america who is growing, who is acquiring to person nan firing powerfulness to do so.

And that's why I deliberation 2x is excessively precocious for us. We had 0.9x, which I deliberation we should beryllium gladsome astir that. If we spell up a bit, depends connected nan opportunities we person successful nan market. But a beardown equilibrium expanse and a debased indebtedness leverage, I think, is cardinal for success.

Operator

The adjacent mobility comes from nan telephone and is from Mr. Gregor Kuglitsch pinch UBS.

Gregor Kuglitsch

I've sewage 3 questions, please. The first 1 I deliberation you mentioned successful 1 of your remarks, sequentially, power costs are already declining. It looks like, successful general, there's not overmuch near there. So I conjecture my mobility is, do you deliberation that cement pricing aliases aggregate pricing could benignant of inclination down pinch that? Or do you deliberation you'll -- aliases possibly you look astatine it otherwise and you look astatine benignant of trying to seizure affirmative price/cost dispersed of immoderate sort. So that would beryllium my first question.

Second mobility is simply a comparatively elemental method one. Can you conscionable show america nan nett M&A, EBIT aliases revenue, ideally both, effect of each nan deals you've done, truthful divestment and acquisition benignant of truthful we tin person a benignant of cleanable baseline, I guess, to deliberation astir your integrated maturation for 2023, please?

And past nan 3rd mobility and possibly it's a spot personal. But obviously, nan business is doing very well, yet some of you are deciding to benignant of measurement backmost aliases leave. So I benignant of wonderment why that is?

Jan Jenisch

Okay. I mean, look, I return nan first and nan 3rd mobility and past Géraldine takes nan 1 successful nan middle. And look connected nan pricing, I said before, we person fantabulous pricing successful place. I deliberation we are successful a different rhythm astatine Holcim now. Our pricing is not correlated pinch power costs aliases something, and I cognize location was a batch of statement successful nan past astir this. But if you travel us, we person been expanding income prices for nan past 5 years, each azygous year. And this is besides what we're going to spot this year.

So we are readying connected value increases for each cardinal markets for this year, and we're going to make that happen. And that's why we are truthful assured connected nan margin. And again, connected nan power costs, they came down December until [today], but we don't cognize what's going to hap tomorrow, but we will beryllium successful a bully position nary matter wherever nan costs are curbing this year.

On nan individual question, I'm not stepping down. I mean I'm not stepping I'm nan CEO of Holcim for this twelvemonth and past let's spot who comes next. But this is very important to us. We person a winning formula, and we person a winning team, and we will proceed to do that. And I'm not stepping down from anything. So -- instead, I'm saying I will beryllium adjacent pinch Holcim for galore much years to come.

Géraldine Picaud

Yes. And Greg, you asked astir nan scope effect to return into information for 2023. You asked that for nan EBIT level. So obviously, for nan scope, it's easier, it's astir CHF 300 cardinal that you person to subtract. And if you return into information each nan EBIT of our acquisitions for 2023, you get thing astir much than CHF 150 cardinal of further EBIT. So it gives you a spot of a nett scope for your modeling.

Gregor Kuglitsch

And that's pinch Duro-Last successful for -- aliases is it including that?

Géraldine Picaud

Yes, it does see Duro-Last.

Unidentified Analyst

[indiscernible] Jan, I want to travel up connected 1 of nan questions before, but from a broader perspective. I retrieve erstwhile you announced nan Firestone deal, you said nan cardinal constituent is to bargain a level and to create nan business from there. And I deliberation you were very, very successful successful doing that successful North America. You besides mentioned that you had 2 factories successful Europe and you saw plentifulness of opportunities. But if I look astatine nan acquisitions you did, it was successful different areas. So 2 questions. One is, do you still spot nan chance that you tin consolidate nan European roofing market? And second, do you still look for a 2nd level wherever you fundamentally tin repetition what you did pinch roofing?

Jan Jenisch

Look, first of all, we should beryllium each very happy that we were capable to found that roofing business we did pinch $4 cardinal of sales, mostly successful nan U.S., wholly correct, but I for illustration this moreover of being dispersed retired excessively much. So we are 1 of nan apical 3 companies already successful nan U.S. market. And erstwhile you look astatine -- and I deliberation we provided that accusation successful nan slide, that's a $40 cardinal marketplace unsocial successful nan U.S. So we person plentifulness of room to abstraction this. I told nan team, there's nary logic you shouldn't do 8 cardinal successful nan years to travel successful nan roofing segment. And roofing arsenic comes pinch insulations is ace highly attractive. You saw nan return.

So I deliberation we did everything correct there. Now of course, we besides are excited to turn successful Europe. You said we person 2 factories, 1 successful Germany, 1 successful Spain.

And we conscionable announced nan acquisition of Flat Technology, a German-based fantabulous institution successful roofing systems. So we besides are expanding successful nan European market. And truthful we're doing both. We person besides establishing a 2nd platform, what we telephone Specialty Building Solutions, which are fundamentally destruction systems and centrifugal systems.

We bought 4 companies successful Europe. This is already a $600 cardinal platform, which besides has a large underlying marketplace volume. So we person already 2 platforms, and they by itself, supply a batch of abstraction to grow.

Unidentified Analyst

If I'm not mistaken, nan roofing marketplace successful Europe is astir CHF 20 billion. So let's put it that way. You sewage a ft successful nan doorway but not more. What is holding you back? Is it nan deficiency of opportunities aliases what is it really?

Jan Jenisch

Well, we person a precocious speed. Imagine nan number of -- we conscionable started successful roofing successful really successful April '21, right? So we person a ace precocious speed. But you cognize what, I will guardant your connection to nan squad and show them. You did -- you did -- I would opportunity you did okay, but we are not happy successful Europe, and we're not happy pinch nan marketplace stock successful North America. And this is -- that's awesome news, right? Because nan marketplace moreover CHF 20 billion, truthful we person a CHF 60 cardinal marketplace we tin grow. And that's what we effort to do, and I will. We'll talk to nan squad and inquire them to do a spot faster.

Operator

The adjacent mobility comes from nan telephone and it's from Mr. Yuri Serov pinch Redburn.

Yuri Serov

I conscionable want to spell backmost to nan chat astir volumes. You said that location is nary recession successful Holcim. Can you please effort to explicate what you mean by that? I mean what benignant of measurement growth? And I'm talking astir nan dense broadside of business, what benignant of measurement maturation you're expecting successful 2023 crossed nan business and possibly by region?

Jan Jenisch

Look, we're not guiding connected volumes. Even what Géraldine said before, we were guiding little and little connected volumes because we are becoming a different company, which is not only conscionable a supplier of tonnes, but it's a supplier of building systems. . Having said that, there's nary recession besides because we're going to person profitable maturation this year, and that's our meaning of a recession. We're not going backwards. And you're going to spot a bully twelvemonth for Holcim. And nan volumes -- now earlier you will insist connected an answer, we will person -- and I said this aft Q3 already, we person a softening successful Europe.

So if you spell traditionally to cement volumes possibly for this year, 3% to 5% measurement diminution is possibly a realistic target aliases a realistic scenario. But past for Latin America, we expect maturation connected measurement positive beardown pricing. And for North America, we person besides nan anticipation that we will waste much measurement successful nan classical cement segment. So erstwhile you put it each together, we are besides connected nan measurement broadside pinch a affirmative outlook, but nary much specifications astatine this point.

Yuri Serov

Okay. And besides pricing, possibly you already answered this question, but fto maine conscionable inquire it much specifically. Are you saying that you're expecting continued sequential value maturation not needfully year-on-year, but from here, your prices are going to proceed growing? And again, my attraction is connected nan heavy-side businesses.

Jan Jenisch

No. Look, nan dense broadside has 1 large advantage. It has a batch of room for value increases because nan materials are virtually very inexpensive. And if it is required to decarbonize further, if you person different costs and truthful on, there's a batch of pricing powerfulness to this conception and you tin spot it from this 14% value summation we realized successful 2022 that there's a batch of pricing powerfulness coming pinch nan business. And we expect that nan pricing will proceed to beryllium very affirmative for america based connected smart products from our side, but besides based connected sustainability wherever decarbonized products, little carb products having higher values for nan customer, and we will make judge that we value them connected nan correct level.

Yuri Serov

Okay. And tin I conscionable inquire 1 past thing? You said a fewer times that nan twelvemonth has started well. But past you say, well, we've been very active, we person 7 acquisitions. If you look astatine really nan twelvemonth started from nan marketplace perspective, does that connection still apply? Are you happy pinch what you're seeing successful position of nan request and what you're selling?

Jan Jenisch

Well, January is possibly nan the lowest aliases 2nd lowest period of nan twelvemonth for building for building globally. So that's why I don't want to load you pinch a excessively elaborate outlook. I deliberation I gave already a batch of colour connected what we spot for nan bid book, what we spot happening for North America, for Europe for Latin America. And I deliberation for today, I would beryllium very happy to time off it there. And past I deliberation aft Q1, we're going to springiness you a much elaborate outlook.

Unidentified Analyst

[indiscernible] Still a mobility connected growth. Coming backmost to nan Product & Solutions business, I'm wondering -- still trying to understand what happened successful Q4 connected a like-for-like basis. You had a important maturation of 19% afloat year. You hardly grew successful Q4. What's the...

Jan Jenisch

Look, we had successful Q4, you saw nan Solutions & Products business is mostly successful nan U.S. market, and we had simply we had nan immense snowstorm successful December wherever we virtually had a 10-day extremity of our building activity. You besides saw for our different North American business was slow successful income successful Q4. That's afloat based connected nan snowstorm. And I deliberation we mislaid astir CHF 300 cardinal of income owed to this. And that's not an excuse, that's why we didn't constitute it anywhere, but that's conscionable going to hap immoderate period of nan year, but we had -- successful 4th 4, we had -- nan upwind was not favorable for us, but you tin expect that this will beryllium afloat recovering for this year.

Operator

The adjacent mobility comes from nan telephone and it's from Mr. Brijesh Siya, HSBC.

Brijesh Siya

I person 2 questions. The first 1 is connected debased costs of products. So yes, previously, you talked astir debased c products, you're pricing it successful statement pinch nan cement, nan normal cement because you wanted to beryllium nan astir sold aft nan normal product, but it seems you are talking astir higher pricing and amended margin. Could you please conscionable explain whether you've changed your strategy successful position of really you value this product? Or it's that nan c footprint is little hence, you astir apt use pinch a higher separator because of nan little intensity? So that's my first question.

And I deliberation nan 2nd 1 is some costs ostentation and nan pricing. And you talked astir costs ostentation will beryllium flattish to precocious azygous digit and looking astatine really nan pricing evolved past twelvemonth and what you are indicating that you would beryllium raising prices, it looks for illustration you don't request immoderate value increases unless nan power prices benignant of starting again?

Jan Jenisch

Look, we talked astir nan pricing a spot before, and we are successful a bully position. And we negociate this immense upland of costs ostentation successful 2022. And now we I deliberation we are successful a overmuch different scenario. And I think, again, we person a bully position connected nan margins. I deliberation each our cardinal markets person further value increases for this twelvemonth plan. So it's moreover that we spell up present and nan costs astatine nan infinitesimal look for illustration they came down. So that's why I'm truthful -- person specified a assured outlook for you coming that we astir apt should not interest excessively overmuch connected nan margins successful 2023.

And if you let me, past I would not for illustration to opportunity overmuch more. And we talk astir this aft Q1. On these little c products, we're very happy to person launched these world brands of ECOPack wherever we person to committedness that it's astatine slightest 30% CO2 reduced compared to mean products. The aforesaid for cement wherever nan merchandise sanction is ECOPlanet, truthful very successful brands, and they make already a important portion of our income successful those 2 segments.

Now what we effort to do these product, they person higher income prices, but let's say, successful nan single-digit percent aliases something. And this is important for 2 reasons. The first logic is nan customer, I would say, is good accepting sustainability erstwhile it comes pinch a mean value increase.

And second, for us, astatine Holcim, we want those products to beryllium our main products. As you know, we run large-scale proviso chains, and we want not to person niche products. So we want sustainability to beryllium portion of nan main merchandise range. This is why, for us, those products person to our blockbuster products, and that's why we don't value them astatine 20%, 30%, 40% higher, and they stay successful nan niche. We want them to beryllium our main products.

So these are nan 2 reasons really we're going to do that and moving very well.

Brijesh Siya

Yes. Just pursuing up connected nan -- sorry, a explanation connected nan ECOPlanet. You talked astir -- you've launched successful 27 markets. Could you springiness america really nan markets adjacent aliases what percent of your products successful Europe are ECOPlanet now?

Jan Jenisch

We person -- truthful we person only -- we person it now afloat launched successful each cardinal markets. We will first motorboat nan ECOPack, nan debased c concrete, and past we launched ECOPlanet later. It is besides connected nan aforesaid trajectory arsenic ECOPact. ECOPact, I deliberation we announced is that 13% of income now already successful actual and ECOPlanet is connected nan aforesaid trajectory. It's conscionable pinch a spot of a clip lag complete a twelvemonth down nan ECOPact launch.

Operator

Last mobility from nan webcast comes from Arnaud Lehmann, Bank of America.

Arnaud Lehmann

Two questions. Firstly, connected CO2, absorbing that you're talking astir CO2 per nett sales. You mentioned nan 20% simplification past year. I deliberation you're targeting 10% simplification for this year. Firstly, could you springiness america nan absolute number of CO2 per nett income for '21 and '22. And successful your target of minus 10% for this year, what is underlying simplification and what is related to alteration successful scopes, for example, nan caller acquisitions? That's my first question.

And my 2nd mobility is connected currency. There's been a batch of devaluation successful immoderate African countries, successful particular, Egypt, Nigeria aliases Zambia, Kenya, et cetera, are you assured that you tin protect your margins done value increases to offset nan devaluation this year?

Jan Jenisch

So Arnaud, connected nan first question, we person each nan calculation successful nan yearly report, and I deliberation we besides person values to nan numbers here. So we talked astir this a spot earlier. I deliberation that a ample part, of course, comes from our strategy to faster turn successful solutions and products and different sustainable building solutions. And different portion comes from nan decarbonization, wherever we past twelvemonth reduced CO2 per tonne of cement issues by 2% that besides plays into that. And we person each nan numbers disposable successful nan yearly report. And again, I deliberation this is simply a very beardown strategy of Holcim to way each those decarbonization efforts from a merchandise statement for illustration cement to nan wide company, and that is what we will beryllium doing ongoing.

Géraldine Picaud

And Arnaud, yes, you're correct to protect nan margins successful nan countries pinch specified currencies wherever location is beardown devaluation aliases hyperinflation, and you request to summation your prices and our teams cognize it very well. And I tin guarantee you that erstwhile you return nan EBIT of these countries backmost successful Swiss francs from 1 twelvemonth to another, we find nan aforesaid magnitude aliases higher, which is simply a impervious that we do efficaciously return attraction and walk connected prices arsenic often arsenic basal and sometimes it's rather predominant for nan logic you mentioned.

Jan Jenisch

Very good. Thank you truthful much. I deliberation we are astatine nan extremity of nan Q&A. It's my pleasance now for each nan group who came present that we tin person luncheon together and immoderate further discussions. We person each our executive committee members here. So they caput from Asia, Middle East, Africa, Europe, Latin America, North America arsenic good arsenic our Head of Solutions & Products and our Chief Sustainability Officer. So please return nan opportunity to prosecute successful much discussions. And for those group joined by webcast, I wish you a bully Friday and dream to spot you very soon successful person. Thank you very overmuch for attending.