2024 ANNUAL REPORT
DISCLAIMER
This document is the printed/pdf and is not the official annual financial reporting, including the audited consolidated and
company financial statements thereto pursuant to article 2:361 of the Dutch Civil Code. The official annual financial reporting,
including the audited consolidated and company financial statements and the independent auditor’s report thereto, are included
in the single report package (“ESEF package”) which can be found in the section Investors / Financial reports / 2024. In case of
any discrepancies between this document and the ESEF package, the latter prevails. Note that the auditor’s opinion included in
this document does not relate to this document but only to the ESEF package. No rights can be derived from using this
document, including the unofficial copy of the auditor’s report.
Cementir Holding N.V.
Registered Office: 36, Zuidplein, 1077 XV, Amsterdam, The Netherlands
P: +31 (0) 20 799 7619
Secondary and operational office: 200, Corso di Francia, 00191 Rome, Italy
P: +39 06 324931
www.cementirholding.com
Share capital: € 159,120,000
VAT number: 02158501003
Tax number: 00725950638
CCI number 76026728 - Netherlands Chamber of Commerce
2024 Annual Report Cementir Holding NV | 1
Contents
Directors’ report
General information
4
Introduction
4
Group profile
5
Purpose, vision, mission, values
6
Group strategy
8
Global presence
10
Cementir Holding on the stock exchange
12
Financial highlights
13
Non financial highlights
17
Corporate bodies
19
Group Performance
20
Corporate Governance
41
Report of the Non-Executive Directors
72
Remuneration Report
79
Risk and Uncertainties
103
Other Information
122
Subsequent events after the Reporting Date
125
Management operating outlook
126
Proposed allocation of the result for the year 2024 of Cementir Holding NV
126
Sustainability Statement
127
General information
127
Appendix
190
Environmental information
196
EU Taxonomy
263
Social information
278
Governance information
331
Other information
337
2024 Annual Report Cementir Holding NV | 2
Cementir Holding NV consolidated financial statements
Consolidated financial statements
344
Notes to the consolidated financial statements
350
Annexes to the consolidated financial statements
418
Cementir Holding NV Company financial statements
Company financial statements
422
Notes to the Company financial statements
429
Other information
Independent auditors’ report
430
Directors’ Report 2024 Cementir Holding NV | 3
DIRECTORS’ REPORT
Directors’ Report 2024 Cementir Holding NV | 4
General Information
Introduction
This Directors’ Report refers to the company and consolidated financial statements of the Cementir Group as
at 31 December 2024. These statements have been prepared in accordance with the IFRS Accounting
Standards (IFRS) as adopted by the EU, and with Part 9 of Book 2 of the Dutch Civil Code.
The Directors’ Report also includes the Sustainability Statement prepared in accordance with the European
Sustainability Reporting Standards (ESRS) as adopted by the European Commission and compliant with the
reporting requirements provided for in Article 8 of Regulation (EU) 2020/852 (the Taxonomy Regulation).
This report should be read in conjunction with the company and consolidated financial statements for 2024
and has been prepared on a going concern basis. The Group has sufficient reserves to meet its obligations
and will be able to operate for a period of at least twelve months from the date of preparation of the financial
statements. The assessment carried out by the Board of Directors took into account the Group's main activities
and risks, together with factors that may affect the Group's future performance, such as climate change and
environmental requirements, financial position, expected cash flows, liquidity position and financing facilities.
On the basis of the above, the Directors have reasonable expectations that the Group will continue to operate
as a going concern.
Director’s Report 2024 Cementir Holding NV | 5
Group profile
Cementir Holding N.V. is a multinational company with its registered office
in the Netherlands, listed on the Euronext Star Milan segment. The
company operates in the building materials sector and focuses on four main
business lines: grey cement, white cement, ready-mixed concrete and
aggregates.
Cementir is the world leader in the niche segment of white cement. The
company is the largest producer of cement in Denmark and ready-mixed
concrete in the Scandinavian area, the third largest cement producer in
Belgium, and one of the main international operators in Türkiye, with two
companies listed on the Istanbul Stock Exchange. In Belgium, the Group
operates one of the largest aggregate quarries in Europe, and in Türkiye it
processes industrial waste to produce fuel for its cement plants.
Cementir pursues a sustainable growth strategy, focusing on product
leadership, the pursuit of excellence and the efficiency of operating
processes. In the last two years, the Group has received notable ESG
awards, including the validation of its 2030 decarbonisation targets by the
Science Based Target initiative (SBTi) and boasts an A rating for Climate
Change and A- for Water Security by CDP.
The Group achieved an investment grade rating of “BBB-“ with a stable
outlook from Standard & Poor’s.
Since 1992, Cementir has been part of the Caltagirone Group, one of the
leading private industrial concerns in Italy, with activities in residential
construction, infrastructure, publishing, real estate and finance.
Key 2024 highlights
CEMENT PRODUCTION
CAPACITY
READY-MIXED
CONCRETE PLANTS
QUARRIES
13.1
Million t
100
38
EBITDA
EMPLOYEES
CREDIT RATING S&P
407
3,082
BBB-
Million/€
Stable Outlook
Scope 1 CO
2
EMISSIONS
CDP 2024
SBTi
632
A for Climate Change
Target validated
Grey cement
Kg CO2/ton cement
A- for Water Security
Aligned with 1.5 C°
OUR CORE BUSINESSES
• Grey cement: the most
commonly used building
material worldwide
• White cement:
specialty cement
recognized for its
aesthetic qualities, used
in architectural and
decorative projects
• Ready-mixed
concrete: the most
versatile construction
material offering
durability and efficiency
• Aggregates: essential
components of
concrete, asphalt and
other construction
materials
Director’s Report 2024 Cementir Holding NV | 6
Purpose, vision, mission and values
Our purpose is to build with ambition a sustainable future for generations to come
Cementir introduced its purpose statement, clearly defining its reason for being and its commitment to a
sustainable future for the construction industry. The Company also updated the vision and values to better
reflect its dedication to sustainable growth and creating long-term value for all stakeholders. These updates
are not a change in direction, but a formal reinforcement of its longstanding commitment to responsible
business practices, and the message that Cementir is not only focused on its business success but also on
making a positive impact on the world.
Vision
Our vision is to be a driving force in shaping a sustainable future for the building industry, delivering tangible
value through innovation and agility.
This vision emphasizes:
• Leadership and Impact: we strive to be a leader in the construction industry, actively shaping the
transition toward a more sustainable future.
• Focus on Sustainability: we are strongly committed to environmental responsibility, promoting
innovative sustainable products and solutions.
• Tangible Results: delivering measurable and practical outcomes aligned with our "Concretely
Dynamic" motto, achieving progress through innovative concrete solutions.
• Innovation and Agility: we pursue cutting-edge technologies, responding promptly to evolving market
demands and taking advantage of growth opportunities.
Mission
Our Mission is to generate value for our stakeholders through a
sustainable growth path, achieved by focusing on product leadership,
the pursuit of excellence and operating efficiency.
We want to contribute to the development of essential infrastructure
and to a more sustainable building industry, minimizing our
environmental footprint, promoting circular economy principles, and
actively working towards a carbon-neutral future.
Our mission is rooted in Cementir core values: sustainability,
dynamism, quality, value of people, and diversity and inclusion.
These values continue to guide our strategic priorities, reinforcing our commitment to delivering high-
performance solutions and contributing to a positive impact on the construction sector.
Our motto "Concretely Dynamic"
embodies our dedication to
delivering tangible results and
our commitment to innovation
and adaptability.
Director’s Report 2024 Cementir Holding NV | 7
Values
SUSTAINABILITY
We are committed to environmentally responsible practices and strive to minimize our impact on the planet.
DYNAMISM
We embrace change and are constantly seeking ways to improve and innovate.
QUALITY
We are dedicated to providing high-quality products and services that meet the highest industry standards.
VALUE OF PEOPLE
We believe that our people are our greatest asset. We are dedicated to respecting human rights, promoting
equal opportunities, and fostering their health, safety, well-being, development, and growth.
DIVERSITY AND INCLUSION
We value and celebrate the unique perspectives and contributions of all our stakeholder (employees,
customers, local communities, unions, etc.).
Director’s Report 2024 Cementir Holding NV | 8
Group strategy
Cementir strategy is built upon five pillars defined in the Group
Industrial Plan: Sustainability, Enhancement of people, Innovation,
Competitiveness Improvement, Growth and Positioning.
1) Sustainability
Cementir commitment is to constantly reduce its carbon footprint and
achieve net zero emissions by 2050. This decarbonization path,
articulated in a detailed Roadmap, sets sustainability objectives
consistent with those of the United Nations and reflected in
management incentive schemes. The main actions are the following:
- Clinker reduction: Cementir aims to progressively replace
clinker with alternative materials such as fly ash, slag and
calcinated clay, leading to the development of low-carbon
cements like FUTURECEM® and D-Carb®.
- Alternative fuels and Energy: the Group is continuously
increasing both the use of alternative fuels, such as biomass and
gas, and the proportion of alternative energy sources, including
renewables through long-term Power Purchase Agreements
(PPAs).
- Recycling and Reuse: Cementir promotes the recycling and
reuse of materials as part of its circular economy approach, such
as concrete recycling as a substitute for natural aggregates and
water usage optimization in the production process.
- Thermal efficiency optimization: the Group is constantly
optimizing thermal efficiency, in order to reduce energy
consumption and carbon emissions.
- Transport and Logistics: Cementir is implementing initiatives
to reduce the climate impact of transport, procurement and
logistics, including e-procurement, electric ready-mix trucks and
fuel-efficient vessels.
- Adoption of breakthrough technologies such as Carbon
capture and storage (CCS): the ACCSION project, based in
Aalborg, Denmark, will be Cementir first carbon capture initiative
and one of the first and largest full onshore carbon capture and
storage project in Europe. By 2030 it is expected to reduce CO2
emissions by 1.5 million tons per year.
Amongst other Sustainability actions:
- Biodiversity and natural resources: Cementir prioritizes
responsible resource management, including biodiversity
protection and impact minimization of local ecosystems.
- Social responsibility: the Group emphasizes ethical business
practices, workplace safety and positive engagement with local
communities.
BALANCING SUSTAINABILITY
AND PROFITABILITY
By investing in innovative,
sustainable products, achieving
industry-leading sustainability
standards, and maintaining a
strong financial position, Cementir
combines sustainability with
profitability.
• Commitment to reduce CO2
emissions and reach net-zero
emission by 2050.
• Investment in innovation to
develop products aimed at
improving environmental
sustainability. Examples include:
o FUTURECEM® - a low
carbon grey cement
o D-Carb® - a low-carbon
white cement
• Recognition of Cementir
sustainability efforts:
o Rating A for Climate Change
and A- for Water
Management by CDP
o Validation by the Science
Based Targets initiative of its
climate targets aligned with
the 1.5°C scenario.
• Cementir combines financial
stability and profitability, thanks
to:
o diversified business portfolio
both by geography and by
product
o solid investment track record
and capital strength
o BBB- rating with Stable
Outlook from Standard &
Poor's
Director’s Report 2024 Cementir Holding NV | 9
2) Valuing people
The Group's commitment is to promote a strong safety culture with the goal to achieve Zero Accidents through
regular training and awareness programs. It also aims to prioritize employee development and foster a positive,
inclusive work environment that champions diversity and inclusion, leveraging on learning platforms such as
the Cementir Academy. The Group is dedicated to enhancing human capital by valuing both individual and
organizational contributions through adequate remuneration policies. Cementir people-centric culture is
demonstrated by the periodical engagement of all employees through regular surveys, in order to foster
continuous improvement.
3) Innovation
Innovation is a core driver of Cementir long-term success. This pillar focuses on:
- Developing sustainable solutions: Cementir invests in research and development to create new low
carbon solutions and other sustainable and high added-value products such as FUTURECEM
®
, and D-
Carb®.
- Digital transformation: the company embraces digital technologies to enhance operational efficiency,
improve customer experiences, and drive innovation across its operations, also with the adoption of
Artificial Intelligence solutions.
- Breakthrough technologies: Cementir actively collaborates with external partners, including research
institutions and universities, to accelerate the development and adoption of new technologies, including
AI. The company also participates in various research projects and emphasizes direct relationship-
building by actively seeking customer and partners’ feedback.
4) Improve competitiveness
The Group is implementing a series of actions to further enhance profitability and operational efficiency,
including process digitization, preventive and predictive maintenance, advanced production control systems,
intelligent logistics, warehouse management and integrated digital sales planning.
By streamlining its operations, reducing costs and enhancing efficiency, Cementir aims to improve its financial
metrics, position itself for sustainable growth and enhance its ability to compete effectively.
5) Growth and Positioning
Cementir strives to combine organic growth, strategic acquisitions, and targeted investments in key markets.
Whilst strengthening its vertically integrated model in the Nordic & Baltic, Belgium and Türkiye regions, the
Group aims to consolidate its global leadership in white cement through targeted actions in strategic markets.
Its strong balance sheet supports potential inorganic growth opportunities in the core business.
Director’s Report 2024 Cementir Holding NV | 10
Global presence
Grey cement sales: 8.1 million t
White cement sales: 2.6 million t
Ready-mixed concrete sales: 4.6 million m3
Aggregate sales: 10.1 million t
Precast concrete sales: 55.7 thousand t
8.1
million t
Grey cement sales
2.6
million t
White cement
sales
4.6
million m3
Ready-mixed
concrete sales
10.1
million t
Aggregate sales
55.7
thousand t
Precast concrete
sales
Region / Country
Grey
cement
plants
Grey
cement
capacity
White
cement
plants
White
cement
capacity
RMC
Plants
Terminals
Quarries
Precast
concrete
plants
Waste
Management
facilities
No.
million t
No.
million t
No.
No.
No.
No.
No.
Nordic & Baltic
1
2.1
1
0.85
65
17
8
-
-
Denmark
1
2.1
1
0.85
33
9
3
-
-
Norway
-
-
-
-
22
1
-
-
-
Sweden
-
-
-
-
10
1
5
-
-
Other
-
-
-
-
-
6
-
-
-
Belgium /France
1
2.3
-
-
12
4
3
-
-
North America
-
-
2
0.26
-
27
-
1
-
Türkiye
4
5.4
-
-
23
0
22
-
1
Egypt
-
-
1
1.1
-
-
2
-
-
Asia Pacific
-
-
2
1.1
-
13
3
-
-
China
-
-
1
0.75
-
4
1
-
-
Malaysia
-
-
1
0.35
-
2
2
-
-
Australia
-
-
-
-
-
7
-
-
-
TOTAL
6
9.8
6
3.3
100
61
38
1
1
Director’s Report 2024 Cementir Holding NV | 11
Nordic & Baltic
Volumes sold (million t – m
3
)
2024
2023
Denmark
Grey cement sales
1.52
1.54
White cement sales
0.48
0.49
Ready-mixed concrete sales
0.96
0.89
Aggregate sales
0.53
0.55
Norway
Ready-mixed concrete sales
0.51
0.62
Sweden
Ready-mixed concrete sales
0.16
0.12
Aggregate sales
1.92
2.13
Belgium / France
Volumes sold (million t – m
3
)
2024
2023
Belgium / France
Grey cement sales
1.68
1.87
Ready-mixed concrete sales
0.76
0.80
Aggregate sales
5.12
4.85
North America
Volumes sold (million t)
2024
2023
United States
White cement sales
0.59
0.57
Precast concrete sales
0.60
0.60
Türkiye
Volumes sold (million t – m
3
)
2024
2023
Grey cement sales
4.81
4.42
Ready-mixed concrete sales
2.17
1.83
Aggregate sales
2.51
1.87
Egypt
Volumes sold (million t)
2024
2023
White cement sales
0.56
0.56
Asia Pacific
Volumes sold (million t)
2024
2023
China
White cement sales
0.68
0.80
Malaysia
White cement sales
0.30
0.30
Director’s Report 2024 Cementir Holding NV | 12
Cementir Holding on the Stock Exchange
Cementir shares (Bloomberg ticker: CEM.IM; Reuters ticker: CEMI.IM) have been listed on the Euronext Milan
stock market (Borsa Italiana) since 1955 and is currently a constituent of the Euronext STAR Milan segment.
The stock is part of the FTSE Italia All-Share, FTSE Italia Mid Cap and FTSE Italia STAR indices.
Key share price data
(EUR’000)
2020
2021
2022
2023
2024
Share capital at 31 December (EUR)
159,120,000
159,120,000
159,120,000
159,120,000
159,120,000
Number of ordinary shares
159,120,000
159,120,000
159,120,000
159,120,000
159,120,000
Treasury shares at 31 December
694,500
3,600,000
3,600,000
3,600,000
3,600,000
Earnings per share (EUR)
0.641
0.724
1.044
1.295
1.297
Dividend per share (EUR)
0.14
0.18
0.22
0.28
0.28
(1)
Pay-out ratio
21.8%
24.9%
21.1%
21.6%
21.6%
Dividend yield
(2)
2.1%
2.1%
3.6%
2.9%
2.7%
Market capitalisation (EUR million)
(3)
1,058.1
1,333.4
977.0
1,518.0
1,677.1
Share price (EUR)
Low
4.17
6.60
5.17
6.12
8.82
High
7.20
9.98
8.67
9.72
11.40
Year-end price
6.65
8.38
6.14
9.54
10.54
(1) Dividend proposed to the Shareholders’ Meeting.
(2) Dividend per Share / Year-end share price
(3) Figures are calculated on the basis of the year-end price.
Share price relative performance
Base 2 January 2024
Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24
Director’s Report 2024 Cementir Holding NV | 13
Financial highlights
Performance highlights
1
(EUR’000)
2020
2021
2022
2022
(Non-GAAP)
2023
2023
(Non-GAAP)
2024
2024
(Non-GAAP)
Revenue from sales
and services
1,224,793
1,359,976
1,723,103
1,720,871
1,694,247
1,694,638
1,686,943
1,648,839
EBITDA
263,740
310,952
335,250
336,293
411,122
421,873
407,342
399,256
EBITDA Margin %
21.5%
22.9%
19.5%
19.5%
24.3%
24.9%
24.1%
24.2%
EBIT
157,173
197,783
204,422
214,749
278,329
299,231
262,022
266,687
Financial income
(expense)
(14,615)
(25,797)
32,012
11,980
12,381
16,530
22,870
28,642
Profit before taxes
142,558
171,986
236,434
226,728
290,710
315,761
284,892
295,329
Income taxes
(33,195)
(48,992)
(54,877)
(46,833)
(75,218)
(78,673)
(70,437)
(58,804)
Profit for the year
109,363
122,995
181,557
179,895
215,492
237,088
214,455
236,525
Profit attributable to the
owners of the parent
102,008
113,316
162,286
161,203
201,364
223,322
201,640
223,846
Profit margin %
8.3%
8.3%
9.4%
9.4%
11.9%
13.2%
12.0%
13.6%
1
From April 2022 the Turkish economy is considered hyperinflationary according to the criteria set out in “IAS 29 - Financial Reporting in
Hyperinflationary Economies”. Non-GAAP figures exclude both the impact of the application of IAS 29 and the re-valuation of non-industrial
property in Türkiye.
Director’s Report 2024 Cementir Holding NV | 14
Financial and equity highlights
(EUR’000)
2020
2021
2022
2023
2024
Net capital employed
1,305,142
1,267,932
1,427,272
1,433,223
1,565,948
Total assets
2,232,379
2,111,058
2,493,976
2,522,194
2,755,724
Total equity
1,182,962
1,227,557
1,522,773
1,650,833
1,856,384
Equity attributable to the owners of the parent
1,056,709
1,088,128
1,368,183
1,503,064
1,717,031
Net financial debt (Net cash)
122,181
40,375
(95,501)
(217,610)
(290,436)
Profit and equity ratios
2020
2021
2022
2023
2024
Return on equity (a)
9.2%
10.0%
11.9%
13.1%
11.6%
Return on capital employed (b)
12.0%
15.6%
14.3%
19.4%
16.7%
Equity ratio (c)
52.7%
57.7%
60.3%
64.9%
66.9%
Net gearing ratio (d)
10.4%
3.3%
-6.4%
-13.3%
-15.8%
Net financial debt/EBITDA
0.5x
0.1x
-0.3x
-0.5x
-0.7x
(a) Profit from continuing operations/Total equity
(b) EBIT/Net capital employed
(c) Adjusted equity/Total assets
(d) Net financial debt/ Adjusted equity
Personnel and investments
2020
2021
2022
2023
2024
Number of employees (at 31 Dec)
2,995
3,083
3,085
3,045
3,082
Acquisitions / (Divestments) (EUR million)
-
3.8
-
4.2
48
Investments (EUR million)
(e)
85.9
99.1
122.6
147.9
171.3
(e) Including investments accounted for in accordance with IFRS 16.
Sales volumes
(000)
2020
2021
2022
2023
2024
Grey and white cement (t)
10,712
11,156
10,849
10,674
10,722
Ready-mixed concrete (m
3
)
4,435
5,093
4,798
4,266
4,563
Aggregates (t)
10,222
11,052
10,462
9,401
10,066
EBITDA performance
(EUR Million)
Director’s Report 2024 Cementir Holding NV | 15
Revenue from sales and services by geographical segment
(EUR’000)
2024
(Non-GAAP)
2023
(Non-GAAP)
Change %
Nordic & Baltic
623,338
664,669
-6.2%
Belgium
335,314
359,873
-6.8%
North America
182,703
182,840
-0.1%
Türkiye
353,535
329,744
7.2%
Egypt
46,264
50,255
-7.9%
Asia Pacific
104,537
121,440
-13.9%
Holding and Services
148,596
204,492
-27.3%
Eliminations
(145,448)
(218,675)
-33.5%
Total revenue from sales and services
1,648,839
1,694,638
-2.7%
EBITDA by geographical segment
(EUR’000)
2024
(Non-GAAP)
2023
(Non-GAAP)
Change %
Nordic & Baltic
1
173,716
181,250
-4.2%
Belgium
93,942
97,559
-3.7%
North America
24,774
26,282
-5.7%
Türkiye
2
78,999
74,834
5.6%
Egypt
16,874
12,539
34.6%
Asia Pacific
3
21,240
26,879
-21.0%
Holding and Services
4
(10,289)
2,529
n.m.
Total EBITDA
399,256
421,873
-5.4%
1
Includes non-recurring income of EUR 6.8 million in 2023.
2
Includes non-recurring income of EUR 6.9 million in 2024 and non-recurring income of EUR 4.2 million in 2023.
3
Includes non-recurring income of EUR 1.0 million in 2023.
4
Includes non-recurring charges of EUR 11.0 million in 2024, of which 6.9 had no impact on the consolidated result.
Director’s Report 2024 Cementir Holding NV | 16
Revenue from sales and services by business segment
(EUR’000)
2024
(Non-GAAP)
2023
(Non-GAAP)
Change %
Cement
1,111,515
1,167,250
-4.8%
Ready-mixed concrete
503,635
486,719
3.5%
Aggregates
108,255
99,843
8.4%
Waste
5,611
6,796
-17.4%
Other*
163,604
197,186
-17.0%
Eliminations
(243,781)
(263,156)
-7.4%
Total revenue from sales and services
1,648,839
1,694,638
-2.7%
*Other mainly includes precast concrete, trading company Spartan Hive and Cementir Holding.
EBITDA by business segment
(EUR’000)
2024
(Non-GAAP)
2023
(Non-GAAP)
Change %
Cement
1
330,174
337,412
-2.1%
Ready-mixed concrete
38,888
40,687
-4.4%
Aggregates
34,380
31,217
10.1%
Waste
2
1,624
(1,379)
n.m.
Other
3
(5,809)
13,936
n.m.
Total EBITDA
399,256
421,873
-5.4%
1
Includes non-recurring income of EUR 6.9 million in 2024 and non-recurring income of EUR 12.1 million in 2023.
2
Includes non-recurring charges of EUR 0.5 million in 2023.
3
Includes non-recurring charges of EUR 11.0 million in 2024, of which 6.9 had no impact on the consolidated result.
Director’s Report 2024 Cementir Holding NV | 17
Non financial highlights
Grey cement
Unit
2020
2021
2022
2023
2024
CO2 emissions - Scope 1
kg/t cement
718
684
672
655
632
Reduction compared to 2020
%
0%
-5%
-6%
-9%
-12%
Clinker ratio
%
82%
81%
80%
79%
77%
Traditional fuel use
%
72%
70%
68%
67%
66%
Alternative fuel use
%
28%
30%
32%
33%
34%
White cement
Unit
2020
2021
2022
2023
2024
White cement
CO2 emissions - Scope 1
kg/t cement
915
919
886
846
859
Reduction compared to 2020
%
0%
0%
-3%
-7%
-6%
Clinker ratio
%
82%
83%
81%
79%
80%
Traditional fuel use
%
85%
85%
85%
82%
80%
Natural gas use
%
12%
12%
13%
16%
18%
Alternative fuel use
%
3%
3%
2%
2%
2%
Other environmental indicators
Unit
2020
2021
2022
2023
2024
Fossil fuel replacement index
2
%
19%
20%
21%
22%
23%
Specific water consumption
3
Litres /ton cement
445
413
402
387
373
Reduction compared to 2019
%
-7%
-14%
-16%
-19%
-22%
Specific water consumption in high water
stress areas
4
Litres /ton cement
292
285
270
253
241
Reduction compared to 2019
%
0%
-2%
-7%
-13%
-17%
Health & Safety
5
Unit
2020
2021
2022
2023
2024
No. of fatal injuries
6
No.
0
0
0
0
0
Fatality rate
7
0.0
0.0
0.0
0.0
0.0
Lost Time Injuries LTI
8
60
56
25
17
17
LTI Frequency Rate
9
11.0
9.9
4.2
2.9
3.0
LTI Severity Rate
10
0.16
0.14
0.10
0.07
0.10
2
Alternative fuels used / total fuels used for the production of grey and white cement.
3
Water consumed / cement produced by the Group.
4
Water consumed in high water stress areas / cement produced by the Group in high water stress areas.
5
All Health & Safety indicators refer to employees.
6
Deaths as a result of accidents at work.
7
Fatality rate: (fatal injuries/hours worked) x 1,000,000.
8
LTI: number of injuries with working days of absence.
9
LTIFR: (injuries with working days of absence/hours worked) x 1,000,000.
10
LTISR: (working days of absence/hours worked) x 1,000.
Director’s Report 2024 Cementir Holding NV | 18
Employees
Unit
2020
2021
2022
2023
2024
Number of employees (at 31 Dec)
11
3,009
3,124
3,121
3,086
3,123
Training hours per capita
11.7
12.2
22.0
25.9
23.5
Voluntary turnover rate
%
n.a.
n.a.
11%
11%
7%
Relevant certifications
Unit
2020
2021
2022
2023
2024
Certificates ISO 14001 – Environmental
Management System
No. of cement
plant
8/11
8/11
8/11
8/11
9/11
Certificates ISO 45001 – Health & Safety
Management System
No. of cement
plant
8/11
8/11
11/11
11/11
11/11
ESG Rating
During 2024 all major ESG rating agencies either improved or confirmed Cementir ESG ratings. Notably, CDP
upgraded Cementir rating to A for Climate Change and confirmed A- for Water Security. In addition, the
company was recognized as an ESG Industry Top-Rated company by Sustainalytics and named a Climate
Leader by the Financial Times.
These achievements highlight the Group’s strong commitment to sustainability and the various initiatives
implemented over time to enhance its positive impact on society.
Cementir ESG ratings:
Agency
2023 Rating
2024 Rating
CDP Climate Change*
A-
A
CDP Water Security*
A-
A-
Refinitiv
A-
A-
MSCI
A
A
S&P Global
56/100
61/100
Sustainalytics
29.2 (Medium Risk)
22.3 (Medium Risk)
ISS ESG
C+ Prime
C+ Prime
Ethifinance
70/100
75/100
Identity Corporate Index (formerly Integrated Governance
Index)
52/100
55.99/100
Financial Times / Statista
Not included
Climate Leader
(*) Ratings updated to February 2025.
11
The number of employees includes 100% of SCT even though, in the Directors’ Report, the subsidiary is proportionally consolidated (as it is jointly controlled
at 65%).
Director’s Report 2024 Cementir Holding NV | 19
Corporate Bodies
Board of Directors
1
Executive Director,
In office until the approval of the Chairman and
2025 Financial Statements Chief Executive Officer Francesco Caltagirone Jr.
Vice-chairman
2
and
Non-Executive Director Alessandro Caltagirone
Vice-chairman
2
and
Non-Executive Director Azzurra Caltagirone
Non-Executive Directors Saverio Caltagirone
Fabio Corsico
Adriana Lamberto Floristan (independent)-
Senior Non Executive Director
2
Annalisa Pescatori (independent)
Benedetta Navarra (independent)
Audit Committee
3
Chairman Benedetta Navarra (independent)
Members Annalisa Pescatori (independent)
Adriana Lamberto Floristan (independent)
Remuneration and Nomination Chairman Annalisa Pescatori (independent)
Committee
3
Members Benedetta Navarra (independent)
Adriana Lamberto Floristan (independent)
Sustainability Committee
3
Chairman Francesco Caltagirone Jr.
Members Annalisa Pescatori (independent)
Benedetta Navarra(independent)
Adriana Lamberto Floristan (independent)
Independent auditors PricewaterhouseCoopers Accountants N.V.
For the period 2021-2030
___________________
1
Appointed by resolution of the Shareholders’ Meeting of 20 April 2023
2
Office conferred by board resolution of 27 April 2023
3
Incorporated by board resolution of 27 April 2023
Directors’ Report 2024 Cementir Holding NV | 20
GROUP PERFORMANCE
TÜRKIYE - HYPERINFLATED ECONOMY: IMPACTS OF THE APPLICATION OF IAS 29
As of April 2022, the Turkish economy is considered hyperinflationary according to the criteria set out in “IAS
29-Financial Reporting in Hyperinflationary Economies”. For the purpose of preparing these Consolidated
Financial Statements and in accordance with IAS 29, certain non-monetary items in the balance sheets of the
investee companies in Türkiye and the income statement items have been remeasured by applying the general
consumer price index to historical data, in order to reflect the changes in the purchasing power of the Turkish
Lira at the balance sheet date of these companies.
The accounting effects of this adjustment, in addition to already being reflected in the opening balance sheet
as of 1 January 2024, incorporate the changes for the period. In particular, the effect related to the re-
measurement of non-monetary assets and liabilities, equity items, and income statement items recognised in
2024 was recognised in a separate income statement item under financial income and expenses. The related
tax effect of non-cash assets was recognised in taxes for the period.
To take into account the impact of hyperinflation also on the local currency exchange rate, profit and loss
account balances expressed in hyperinflationary currencies have been converted into euro, the Group’s
presentation currency, applying the final exchange rate instead of the average exchange rate for the period,
in line with IAS 21’s requirement to report these amounts at current values.
The cumulative levels of the general consumer price indices are as follows:
➢ From 1 January 2005 to 31 December 2023: 1,533%
➢ From 1 January 2024 to 31 December 2024: 44%
In 2024, the application of IAS 29 resulted in the recognition of a net financial charge (pre-tax) of EUR 5.9
million.
The impact of hyperinflation in 2024 is reported, which includes the valuation of non-industrial real estate in
Türkiye in the amount of approximately EUR 15.5 million (EUR 7.7 million in 2023):
(EUR'000)
IAS 29
Effect
IAS 21
Effect
Total
Effect
REVENUE FROM SALES AND SERVICES
48,612
(10,508)
38,104
Change in inventories
(4,153)
(0,044)
(4,197)
Increase for internal work and other income
14,294
1,627
15,921
TOTAL OPERATING REVENUE
58,753
(8,925)
49,828
Raw materials costs
(36,558)
5,919
(30,639)
Personnel costs
(4,302)
0,878
(3,424)
Other operating costs
(9,544)
1,865
(7,679)
TOTAL OPERATING COSTS
(50,404)
8,662
(41,742)
EBITDA
8,349
(0,263)
8,086
Amortisation, depreciation, impairment losses and provisions
(13,054)
0,303
(12,751)
EBIT
(4,705)
0,040
(4,665)
Net financial income (expense)
(5,606)
(0,166)
(5,772)
NET FINANCIAL INCOME (EXPENSE)
(5,606)
(0,166)
(5,772)
PROFIT BEFORE TAXES
(10,311)
(0,126)
(10,437)
Income taxes
(15,017)
3,384
(11,633)
PROFIT (LOSS) FROM CONTINUING OPERATIONS
(25,328)
3,258
(22,070)
PROFIT (LOSS) FOR THE PERIOD
(25,328)
3,258
(22,070)
Attributable to:
Non-controlling interests
538
(402)
136
Owners of the Parent
(25,866)
3,660
(22,206)
Director’s Report 2024 Cementir Holding NV | 21
Financial Highlights
(EUR'000)
2024
2023
Change %
REVENUE FROM SALES AND SERVICES
1,686,943
1,694,247
-0.4%
Change in inventories
(497)
11,671
-104.3%
Increase for internal work and other income
27,448
31,629
-13.2%
TOTAL OPERATING REVENUE
1,713,894
1,737,547
-1.4%
Raw materials costs
(708,448)
(739,121)
-4.1%
Personnel costs
(215,192)
(203,125)
5.9%
Other operating costs
(382,912)
(384,179)
-0.3%
TOTAL OPERATING COSTS
(1,306,552)
(1,326,425)
-1.5%
EBITDA
407,342
411,122
-0.9%
EBITDA Margin %
24.1%
24.3%
Amortisation, depreciation, impairment losses and provisions
(145,320)
(132,793)
9.4%
EBIT
262,022
278,329
-5.9%
EBIT Margin %
15.5%
16.4%
Share of net profits of equity-accounted investees
1,154
772
49.5%
Net financial income (expense)
21,716
11,609
87.1%
NET FINANCIAL INCOME (EXPENSE)
22,870
12,381
84.7%
PROFIT BEFORE TAXES
284,892
290,710
-2.0%
PROFIT BEFORE TAXES/REVENUE %
16.9%
17.2%
Income taxes
(70,437)
(75,218)
-6.4%
PROFIT (LOSS) FROM CONTINUING OPERATIONS
214,455
215,492
-0.5%
PROFIT FOR THE YEAR
214,455
215,492
-0.5%
Attributable to:
Non-controlling interests
12,815
14,128
-9.3%
Owners of the Parent
201,640
201,364
0.1%
Director’s Report 2024 Cementir Holding NV | 22
Non-GAAP Financial Summary
The consolidated Non-GAAP income statement for 2024 is reported below, with comparative figures provided
for 2023.
These results do not include the impacts of hyperinflation as reported in the previous paragraph. This
representation allows a better comparison of the Group's performance compared to the same period of the
previous year. The data below are considered “non-GAAP” measures.
(EUR'000)
2024
2023
Change %
(Non-GAAP)
(Non-GAAP)
REVENUE FROM SALES AND SERVICES
1,648,839
1,694,638
-2.7%
Change in inventories
3,700
17,054
-78.3%
Increase for internal work and other income
11,528
26,024
-55.7%
TOTAL OPERATING REVENUE
1,664,067
1,737,716
-4.2%
Raw materials costs
(677,809)
(728,781)
-7.0%
Personnel costs
(211,768)
(202,856)
4.4%
Other operating costs
(375,234)
(384,206)
-2.3%
TOTAL OPERATING COSTS
(1,264,811)
(1,315,843)
-3.9%
EBITDA
399,256
421,873
-5.4%
EBITDA Margin %
24.2%
24.9%
Amortisation, depreciation, impairment losses and provisions
(132,569)
(122,642)
8.1%
EBIT
266,687
299,231
-10.9%
EBIT Margin %
16.2%
17.7%
Share of net profits of equity-accounted investees
1,154
772
49.5%
Net financial income (expense)
27,488
15,758
74.4%
NET FINANCIAL INCOME (EXPENSE)
28,642
16,530
73.3%
PROFIT BEFORE TAXES
295,329
315,761
-6.5%
PROFIT BEFORE TAXES/REVENUE %
17.9%
18.6%
Income taxes
(58,804)
(78,673)
-25.3%
PROFIT (LOSS) FROM CONTINUING OPERATIONS
236,525
237,088
-0.2%
PROFIT FOR THE YEAR
236,525
237,088
-0.2%
Attributable to:
Non-controlling interests
12,679
13,766
-7.9%
Owners of the Parent
223,846
223,322
0.2%
Sales volumes
('000)
2024
2023
Change
%
Grey, White cement and Clinker (metric tons)
10,722
10,674
0.5%
Ready-mixed concrete (m3)
4,563
4,266
7.0%
Aggregates (metric tons)
10,066
9,401
7.1%
During 2024, cement and clinker sales volumes of 10.7 million tons increased by 0.5% compared to 2023, due
to the good performance in Türkiye and to a lesser extent in the United States and Egypt, which offset the
reduction in volumes in the other regions.
Ready-mixed concrete sales volumes of 4.6 million cubic metres increased by 7.0%, driven by the positive
performance of Türkiye, Denmark and Sweden, while Norway and Belgium recorded a decline due to slowing
demand and adverse weather conditions in the first months of the year.
Aggregate sales volumes reached 10.1 million tons, up 7.1%, driven mainly by Türkiye and Belgium, while they
decreased in Sweden and Denmark.
Director’s Report 2024 Cementir Holding NV | 23
Group revenue from sales and services, at EUR 1,648.8 million, decreased by 2.7% compared to EUR 1,694.6
million in 2023. The contraction was widespread in all regions with the exception of Türkiye and Sweden,
influenced by lower volumes in some regions and the sharp depreciation of currencies in Türkiye and Egypt.
Indeed, at constant 2023 exchange rates, revenue would have reached EUR 1,795.7 million, up by 6.0% on the
previous year.
At EUR 1,264.8 million, operating costs decreased by 3.9% compared to 2023 (EUR 1,315.8 million).
The cost of raw materials amounted to EUR 677.8 million (EUR 728.9 million in 2023), down 7.0% mainly due
to the combined effect of lower volumes in some areas and exchange rate developments, particularly in
Türkiye.
At EUR 211.8 million, personnel costs increased by 4.4% compared to EUR 202.9 million in 2023.
Other operating costs, equal to EUR 375.2 million, fell by 2.3% compared to EUR 384.2 million in 2023.
EBITDA reached EUR 399.3 million, down 5.4% compared to EUR 421.9 million in 2023, due to lower results
achieved in all geographical areas except Egypt, Türkiye and Sweden. It should be noted that EBITDA in 2024
includes non-recurring expenses of EUR 4.4 million, whereas in 2023 the figure included net non-recurring
income of approximately EUR 11.6 million from capital gains on the sale of land and machinery. Net of these
non-recurring items, EBITDA amounted to EUR 403.6 million, down 1.6% from the recurring EBITDA of 2023.
The EBITDA margin was 24.2%, compared to 24.9% in 2023.
At constant 2023 exchange rates, EBITDA would have amounted to EUR 432.1 million, up 2.4% compared to
the previous year.
Taking into account EUR 132.6 million of amortisation, depreciation, write-downs and provisions (EUR 122.6
million in 2023), EBIT reached EUR 266.7 million, down 10.9% compared to EUR 299.2 million in the previous
year. Depreciation and amortisation due to the application of IFRS 16 amounted to EUR 37.4 million (EUR 31.3
million in 2023).
At constant 2023 exchange rates, EBIT would have amounted to EUR 294.7 million, down 1.5% year-on-year
Net financial income amounted to EUR 28.6 million (EUR 16.5 million in 2023), and included: net financial
income of EUR 7.1 million, of which EUR 4.6 million in expenses for the application of IFRS 16 (net financial
expense of EUR 4.4 million in 2023, of which EUR 2.6 million for IFRS 16), net foreign exchange income of EUR
22.4 million (EUR 15.4 million in 2023), the share of net profits of equity-accounted investees of EUR 1.2 million
(EUR 0.8 million in 2023) and the effect of the valuation of derivatives.
Profit before taxes was EUR 295.3 million, down 6.5% on EUR 315.8 million in 2023.
Profit from continuing operations totalled EUR 236.5 million (EUR 237.1 million 2023), after taxes amounting
to EUR 58.8 million (EUR 78.7 million in the previous year).
Group net profit, once non-controlling interests were accounted for, amounted to EUR 223.8 million (EUR 223.3
million in 2023).
Director’s Report 2024 Cementir Holding NV | 24
Financial highlights
31-12-2024
31-12-2023
(EUR'000)
Net capital employed
1,565,948
1,433,223
Total equity
1,856,384
1,650,833
Net financial debt / (Net Cash)
-290,436
-217,610
Net cash at 31 December 2024, equal to EUR 290.4 million, is an improvement of EUR 72.8 million compared
to a net cash position of EUR 217.6 million at 31 December 2023, and includes: the Parent Company's dividend
distribution of EUR 43.5 million in May 2024; dividends of EUR 14 million paid to third-party shareholders;
extraordinary investments including the increase of the equity investment in the Egyptian subsidiary for EUR
30 million and the acquisition of a ready-mixed concrete plant and a minority stake in Denmark for
approximately EUR 18 million. The net cash position includes EUR 90.8 million of debt related to the application
of IFRS 16 (EUR 82.3 million as of 31 December 2023).
Total equity as at 31 December 2024 amounted to EUR 1,856.4 million (EUR 1,650.8 million as at 31
December 2023).
FINANCIAL INDICATORS
The following table provides the most significant indicators for a brief assessment of the performance and
financial position of the Cementir Holding Group. Return on equity and Return on Capital Employed allows for
a rapid understanding of how the operational performance of the Group has an impact on overall profitability.
The other Financial Indicators highlight the ability of the company to meet its financial obligations.
2024
2023
COMPOSITION
PERFORMANCE
INDICATORS
Return on Equity
11.55%
13.05%
Profit from continuing operations/Equity
Return on Capital Employed
16.73%
19.42%
EBIT/(Equity + Net financial debt)
2024
2023
COMPOSITION
FINANCIAL INDICATORS
Equity Ratio
66.90%
64.89%
Adjusted Equity/Total Assets
Net Gearing Ratio
-15.75%
-13.30%
Net financial debt/ Adjusted Equity
Liquidity Ratio
1.29
1.15
Cash + Receivables / Current Liabilities
Cash Flow
1.95
1.53
Operating Cash Flow / Total Financial Debt
Finance Needs (Net cash)
-290.4
-217.6
Net Financial Position
The indicators confirmed the positive trend of the current economic management and the impact generated by
the cash flow from ordinary activities.
Director’s Report 2024 Cementir Holding NV | 25
The balance sheet indicators show a further strengthening of the Group's equity and financial structure, which
closed the year with a net cash position of EUR 290.4 million.
PERFORMANCE BY GEOGRAPHICAL SEGMENT
The data reported in the Türkiye paragraph do not include the impact of the application of IAS 29 - Accounting
for hyperinflated economies, the effects of which are reported in the section “Türkiye - Hyperinflated Economy:
impacts for the application of IAS 29”, and do not include the fair value adjustments of non-industrial real
estate.
Nordic and Baltic
(EUR’000)
2024
2023
Change %
Revenue from sales
623,338
644,669
-3.3%
Denmark
478,756
484,494
-1.2%
Norway / Sweden
140,844
157,923
-10.8%
Other (1)
75,635
76,341
-0.9%
Eliminations
(71,897)
(74,089)
EBITDA
173,716
181,250
-4.2%
Denmark
159,795
168,302
-5.1%
Norway / Sweden
9,134
8,831
3.4%
Other (1)
4,787
4,117
16.3%
EBITDA Margin %
27.9%
28.1%
Investments
58,984
61,291
(1) Iceland, Poland and white cement operating activities in Belgium and France
Denmark
In 2024, sales revenues reached EUR 478.8 million, down by 1.2% compared to EUR 484.5 million in 2023.
Cement volumes on the domestic market, both grey and white, remained in line with the previous year. After a
slow start of the year, with first quarter affected by harsh weather conditions and a still stagnant market
environment, volumes progressively increased in the third and the fourth quarter (+5% and +8%, respectively)
thanks to a market recovery combined with an increase in cement supply to the submarine tunnel project
connecting Denmark with Germany (Fehmarn Belt).
Cement volumes also benefited from the acquisition of a ready-mix concrete plant in the central-eastern Jutland
peninsula, and a minority stake in a second ready-mix concrete plant on the island of Funen, which took place in
April 2024.
High interest rates, inflation and wage pressure continued to weigh on the residential sector, whose weakness
was partly offset by investments in infrastructure and energy projects.
Cement exports, on the other hand, declined by around 4.5% due to lower deliveries to Belgium, France and
Norway, partially offset by higher deliveries to Iceland, Poland, the UK and Germany.
Director’s Report 2024 Cementir Holding NV | 26
Ready-mixed concrete volumes grew by 6% compared to 2023, thanks to change in perimeter and the
contribution of a major project in North Zealand, which offset general market weakness, the postponement of
some infrastructure projects, increasing competition and difficult weather conditions at the beginning of the year.
Aggregate sales volumes declined by 4% compared to 2023 compensated by a significant increase of almost
30% in the fourth quarter.
EBITDA reached EUR 159.8 million (EUR 168.3 million in 2023), down 5.1%. It should also be noted that
EBITDA in 2023 had benefited from a capital gain from the sale of land for about EUR 6.8 million. Excluding
non-recurring items, EBITDA decreased by 1.1%, mainly due to lower exported cement and aggregate sales
volumes, and lower prices due to mix partially offset by savings on variable costs.
Total investments for 2024 amounted to EUR 47.8 million, of which about EUR 36.3 million in the cement sector,
in particular extraordinary maintenance projects on the grey kiln and the construction of the new 4,500 tons
cement silo at the port of Aalborg used to load ships dedicated to the Fehmarn Belt. The main investment in
ready-mixed concrete relates to the renovation and refurbishment of a plant near Copenhagen. Investments
included EUR 14.9 million accounted for in accordance with IFRS 16 and concern ships and transport vehicles.
Norway and Sweden
In 2024, sales revenue in Norway and Sweden decreased by 10.8% to EUR 140.8 million (EUR 157.9 million
in 2023).
In Norway, ready-mixed concrete sales volumes decreased by 18% compared to the previous year due to
slowdown in residential and commercial demand, delays or postponement of major infrastructure projects, which
caused temporary plant closures. The construction sector is facing a deep crisis, which began in late 2022, driven
by rising construction costs and high interest rates. The devaluation of the local currency made imports more
expensive, while rising wages further aggravated the scenario. The decline in 2024 exceeded that of the 2008-
2009 crisis, hitting the residential and commercial segments in particular.
The Norwegian krone depreciated by 1.8% against the average Euro exchange rate in the same period in 2023.
In Sweden, ready-mixed concrete volumes increased by 32% year-on-year in 2024 due to the contribution of a
major project in Karlskrona, southern Sweden, while aggregate volumes decreased by 10% despite a 4%
recovery in the last quarter, supported by the start of a major project. The activity was also affected by the cold
temperatures and frequent snowfalls.
The Swedish krona appreciated by 0.4% against the average exchange rate of the Euro in the same period of
2023.
EBITDA amounted to EUR 9.1 million (EUR 8.8 million in 2023), up 3.4% due to the positive performance of
Sweden, which benefited from higher sales volumes in ready-mixed concrete and savings on production and
transport costs, while Norway suffered from lower sales volumes only partially offset by savings on fixed costs.
Investments amounted to EUR 10.2 million, of which EUR 5.1 million in Norway and EUR 5.1 million in Sweden.
In Norway, investments mainly concerned the renovation of a plant southwest of Oslo, while in Sweden the
purchase of machinery for loading quarried materials. Investments recognised as a result of IFRS 16 were EUR
4.2 million.
Director’s Report 2024 Cementir Holding NV | 27
Belgium
(EUR’000)
2024
2023
Change %
Revenue from sales
335,314
359,873
-6.8%
EBITDA
93,942
97,559
-3.7%
EBITDA Margin %
28.0%
27.1%
Investments
65,025
37,262
Sales revenue decreased by 6.8% to EUR 335.3 million compared to EUR 359.9 million in 2023.
In 2024, cement sales volumes in the domestic market decreased only moderately compared to the previous
year. The construction sector continues to face an unfavourable economic context, with the market shrinking
between 6% and 8% from 2023.
Exports to northern France and the Netherlands, on the other hand, fell more sharply due to the slowdown in
residential sector, and in France, due to a physiological market slowdown following the conclusion of the
Olympics.
Ready-mixed concrete sales volumes decreased by around 5% compared to 2023 despite a significant
recovery in the last quarter (+15%), thanks to the restart of major projects, the acquisition of new contracts
and mild weather conditions.
Overall, several factors influenced sales for the year, in addition to the general weakness of the residential and
commercial sector, especially in the Brussels area: harsh weather conditions and above-average seasonal
rainfall in the first quarter, longer Easter holidays, slower recovery after the summer holidays, several days of
strike and, finally, the temporary closure of a plant in January for renovation and restructuring.
On the other hand, sales of aggregates increased by 5% compared to 2023, outperforming the market and
accelerating in the last quarter (+14%) thanks to some jobsites performance and commercial actions. In
Belgium, the market was characterised by unfavourable weather conditions in the first quarter and by the
general decline in demand, particularly in the residential segment, as well as strong competition. In France,
the road surfacing market has remained robust, despite increasing competition.
EBITDA decreased by 3.7% to EUR 93.9 million (EUR 97.6 million in the previous year) mainly because of the
cement segment, which was penalised by lower sales volumes.
The investments made in 2024 amounted to EUR 65.0 million and mainly concerned the renovation project of
kiln 4 at the Gaurain plant completed in the fourth quarter of 2024. Beside the increase in clinker capacity, the
project will increase alternative fuels use from 40% to more than 70%, and to reduce CO2 emissions per ton
of clinker by about 6%. Investments recognised as a result of IFRS 16 were EUR 8.8 million.
Director’s Report 2024 Cementir Holding NV | 28
North America
(EUR’000)
2024
2023
Change %
Revenue from sales
182,703
182,840
-0.1%
EBITDA
24,774
26,282
-5.7%
EBITDA Margin %
13.6%
14.4%
Investments
7,672
12,849
In the United States, revenues in 2024 were constant at EUR 182.7 million (EUR 182.8 million in 2023).
White cement sales volumes recorded a slight increase compared to 2023, thanks to the commercial policies
implemented since the beginning of the year.
Sales in Texas increased moderately; in the first quarter were adversely affected by rainfall and two fewer
working days than in 2023, while from the third quarter the weather conditions improved along with the benefits
of sales activities, which contributed to an above-average market performance. However, strong competition
and increasing imports continue to put pressure on sales prices.
New York State and Florida also saw an increase in sales compared to 2023, with the latter benefiting from
effective business strategies despite the impact of two hurricanes in the last quarter.
In California, deliveries grew in all market segments, despite very efficient competition in distribution logistics.
Additionally, a new terminal has been opened in Chattanooga to reduce transport costs and increase sales.
The US dollar remained in line with the average Euro exchange rate of 2023.
EBITDA decreased by 5.7% to EUR 24.8 million (EUR 26.3 million in 2023), due to lower sales prices resulting
from strong competition and higher raw material, transport and fixed costs, partially offset by higher deliveries.
On the other hand, the company Vianini Pipe, active in the production of precast concrete products, reported
a 20% EBITDA increase compared to 2023.
Investments in 2024 amounted to EUR 7.7 million, of which EUR 5.8 million was allocated to the two cement
plants for sustainability interventions, production rationalisation and extraordinary maintenance. Investments
recognised as a result of IFRS 16 were EUR 3.6 million.
Türkiye
(EUR’000)
2024
2023
Change %
(Non-GAAP)
(Non-GAAP)
Revenue from sales
353,535
329,744
7.2%
EBITDA
78,999
74,834
5.6%
EBITDA Margin %
22.3%
22.7%
Investments
21,677
22,358
Revenues, at EUR 353.5 million, increased by 7.2% compared to 2023 (EUR 329.7 million), penalised by the
38% depreciation of the Turkish lira compared to the average euro exchange rate in 2023. Revenues in local
currency increased by 48%.
Director’s Report 2024 Cementir Holding NV | 29
Cement sales volumes in the domestic market increased by 9 per cent year-on-year due to significant growth
in the Elazig and Kars regions, supported by post-earthquake reconstruction, which led to an increase in
consumption of approximately 3.1 million tons in 2023 and 3.9 million tons in 2024.
In the Aegean region (Izmir), a slight decline in volumes was recorded, against a more significant market
contraction, mainly due to the slowdown in some public investments.
In the Marmara region (Trakya), however, the contraction was more pronounced, due to the prolonged
shutdown of production sites during the religious holidays in April and June, a general drop in demand due to
economic and financial uncertainties, and the suspension of infrastructure projects, although the last quarter
saw a recovery in construction in the ready-mixed concrete segment.
Cement and clinker exports also increased by 9% compared to 2023, although penalised by the lack of exports
to Israel as a result of the embargo.
Ready-mixed concrete volumes increased by 19% compared 2023, supported by post-earthquake
reconstruction, particularly in the Eastern Anatolia and Mediterranean regions, despite the cold temperatures
in the last two months of the year. Part of this growth was driven by the opening of three new plants during
2024, one in the Aegean region, one in Eastern Anatolia and one in the Marmara region.
Aggregate sales increased by 34% year-on-year thanks to the full-year contribution of the new quarry in
Malatya, Eastern Anatolia, which started operations in July 2023, as well as increased demand.
The waste sector reported 72% and 88% higher revenues and EBITDA in local currency, respectively, than in
2023, due to increased volumes and prices of alternative fuels (RDF), collection of materials for fuel production,
and increased quantities sent to landfill.
Overall, the region’s EBITDA was EUR 79.0 million, up 5.6% from EUR 74,8 million in the previous year. It
should be noted that EBITDA includes EUR 6.9 million for non-recurring income paid by Cementir Holding,
which had no impact on the consolidated result. In addition, the 2023 EBITDA included non-recurring income
from capital gains on land sales of about EUR 4.2 million. Net of these non-recurring effects, EBITDA increased
by 1.9% compared to 2023, with cement and ready-mixed concrete segment shrinking slightly, also because
of the depreciation of the Turkish lira, whilst aggregates sector grew.
Investments amounted to EUR 21.7 million, of which approximately EUR 10.6 million in cement, mainly in the
Izmir and Trakya plants and EUR 8.7 million in ready-mixed concrete, and mainly concerned investments
accounted for on the basis of IFRS 16 relating to ready-mixed concrete transport vehicles (EUR 7.7 million).
Investments in the waste treatment sector amounted to EUR 2 million and mainly concerned the expansion of
landfill capacity.
Egypt
(EUR’000)
2024
2023
Change %
Revenue from sales
46,264
50,255
-7.9%
EBITDA
16,874
12,539
34.6%
EBITDA Margin %
36.5%
25.0%
Investments
7,650
2,878
Sales revenues amounted to EUR 46.3 million, down 7.9% compared to EUR 50.3 million in 2023, mainly due
to the 47.5% devaluation of the Egyptian pound compared to the average exchange rate of the Euro in 2023.
Revenues in local currency actually increased by 35.8%.
Director’s Report 2024 Cementir Holding NV | 30
In addition, revenues were affected by a different geographical mix of exports and a 9% drop in volumes in the
domestic market, due to the weakness of the residential sector and the cutting or postponement of some large
public projects.
Exports, on the other hand, grew by 7% compared to 2023, with a different geographical mix: higher deliveries
in Europe, Africa and the United States, and lower in the Middle East.
EBITDA increased by 34.6% to EUR 16.9 million (EUR 12.5 million in 2023), thanks to higher selling prices,
partially offset by higher variable and fixed costs, and the devaluation of the Egyptian pound.
Investments in the period amounted to approximately EUR 7.6 million and were mainly related to costs for the
reactivation of the second clinker kiln, expected by February 2025. Investments accounted for under IFRS 16
amounted to EUR 2.8 million for transport vehicles and passenger cars.
Asia Pacific
(EUR’000)
2024
2023
Change %
Revenue from sales
104,537
121,440
-13.9%
China
55,108
68,053
-19.0%
Malaysia
50,221
54,207
-7.4%
Eliminations
(792)
(820)
EBITDA
21,240
26,879
-21.0%
China
13,261
18,524
-28.4%
Malaysia
7,979
8,355
-4.5%
EBITDA Margin %
20.3%
22.1%
Investments
4,249
7,209
China
Sales revenue decreased by 19% to EUR 55.1 million (EUR 68.1 million in 2023), as a result of a 15% drop in
sales volumes, a reduction in prices, and the 1.7% devaluation of the Chinese Renminbi against the average
Euro exchange rate in 2023.
The Chinese economy recorded a GDP growth of 4.8% in the first nine months of 2024. Following the Federal
Reserve's rate cut, the Chinese government introduced measures to boost the economy, including rate cuts
and relief on real estate financing. Further fiscal and financial measures were announced in October. However,
cement production fell by double digits in 2024, after reaching its lowest level in the last 13 years in 2023, with
producers increasing exports at competitive prices to reduce excess stocks. Sales were also adversely
affected by adverse weather conditions.
EBITDA decreased by 28.4% to EUR 13.3 million (EUR 18.5 million in 2023), due to lower sales volumes and
prices, higher transport and fixed costs, only partially offset by energy savings. It should also be noted that the
2023 EBITDA included non-recurring income from the sale of machinery and other non-recurring expenses of
about EUR 1 million. Excluding non-recurring items, EBITDA decreased by 24.2%.
Investments in 2024 amounted to approximately EUR 1.8 million, earmarked for projects aimed at improving
the functionality and efficiency of the plant, as well as extraordinary maintenance interventions.
Director’s Report 2024 Cementir Holding NV | 31
Malaysia
Sales revenue decreased by 7.4% to EUR 50.2 million (EUR 54.2 million in 2023) due to lower sales volumes
and prices of exported clinker and lower cement sales to Australia.
The economic crisis in China, characterised by extraordinary events in the construction sector, also affected
the major economies of South East Asia.
Sales volumes in the domestic market were up slightly, thanks in part to a good month of December, with
major customers busy replenishing their stocks. However, large projects were delayed due to high interest
rates on mortgages, which is also causing increased competition and consequent pressure on sales prices.
Cement and clinker exports remained broadly stable, with an increase in deliveries to the Philippines, Vietnam
and South Korea, offset by a decline to Australia, Cambodia, China, Bangladesh and Myanmar. In Australia,
after a promising first quarter, the construction sector slowed from the second quarter, especially in the
residential segment, with exports also affected by high transport costs and a shortage of ships.
The Malaysian ringgit was in line with the average Euro exchange rate of 2023.
EBITDA reached EUR 8 million, a decline of 4.5% compared to 2023 (EUR 8.4 million). Lower sales prices,
also influenced by the export mix and exchange rate developments, were only partially offset by the increase
in savings on variable costs, especially fuel.
Investments in 2024 amounted to approximately EUR 2.5 million and involved projects to improve the
functionality and efficiency of the plant, and extraordinary maintenance interventions.
Holding and Services
(EUR’000)
2024
2023
Change %
Revenue from sales
148,596
204,492
-27.3%
EBITDA
(10,289)
2,529
n.m.
EBITDA Margin %
-6.9%
1.2%
Investments
6,018
4,030
This grouping includes the parent company, Cementir Holding, the trading company, Spartan Hive, and other
minor companies. The decrease in revenues and EBITDA is due to lower traded volumes, in particular of
clinker, cement and fuels brokered by Spartan Hive. Extraordinary charges of about EUR 11 million were
recognised in 2024, of which EUR 6.9 million were paid to Cimentas, thus not impacting consolidated results,
and about EUR 4 million related to the valuation and disposal of non-industrial real estate.
Director’s Report 2024 Cementir Holding NV | 32
INVESTMENTS
In 2024, the Group made total investments of approximately EUR 171.3 million (EUR 147.9 million in 2023),
of which approximately EUR 38.5 million in sustainability and EUR 45.9 million (EUR 43.9 million in 2023)
related to the application of IFRS 16.
Investments included EUR 121.9 million in the cement sector, EUR 27.1 million in ready-mixed concrete, EUR
12.3 million in aggregates and EUR 10 million for other business sectors.
The breakdown by asset class shows that EUR 167.2 million (EUR 142.8 million in 2023) relates to property,
plant and equipment and EUR 4.1 million (EUR 5.1 million in 2023) to intangible assets.
RESPONSIBILITIES IN RESPECT TO THE ANNUAL REPORT
The Board of Directors is responsible for preparing the Annual Report, inclusive of the Consolidated and
Company Financial Statements and Directors’ Report, in accordance with Dutch law and IFRS Accounting
Standards as issued by the International Accounting Standards Board and as adopted by the European Union
(EU-IFRS).
In accordance with Section 5:25c, paragraph 2 of the Dutch Financial Supervision Act, the Board of Directors
states that, to the best of its knowledge, the Financial Statements prepared in accordance with IFRS as
adopted by the European Union (EU-IFRS) provide a true and fair view of the assets, liabilities, financial
position and profit or loss for the year of the Company and its subsidiaries and that the Directors’ Report
provides a true and a fair view of the performance of the business during the financial year and the position at
balance sheet date of the Company and its subsidiaries, developments during the year, together with a
description of the main risks and uncertainties that the Company and the Group face.
KEY EVENTS OF THE YEAR
2024 ended with an EBITDA of EUR 407.3 million (EUR 411.1 million in 2023). The cash flow generated by
operating activities and the control of working capital made it possible to close the year with net cash of EUR
290.4 million (net cash of EUR 217.6 million as at 31 December 2023), which includes the debt position of EUR
90.8 million (EUR 82.3 million as at 31 December 2023) resulting from the application of IFRS 16.
On 8 February 2024, the Parent Company’s Board of Directors approved the update of the 2024-2026
Business Plan, to whose press release please refer (www.cementirholding.com in the Investors, Press
Releases section).
In April 2024, the Group acquired a ready-mixed concrete plant and a minority stake in a second plant in
Denmark for a total outlay of approximately EUR 18 million.
During May, dividends of EUR 43.5 million were paid as per the resolution of the General Meeting when the 2023
financial statements were approved.
In June 2024, the rating agency Standard and Poor’s confirmed the BBB- rating with a stable outlook.
On 13 August 2024, the wholly-owned subsidiary Aalborg Portland Holding A/S acquired an additional 25.40%
stake in Sinai White Portland Cement Co. SAE from Sinai Cement Company, a subsidiary of the Vicat Group,
for approximately EUR 30 million. Following this transaction, Cementir indirectly holds 96.5% of the share
capital of the Egyptian subsidiary.
On 22 October 2024, the consortium formed by Aalborg Portland, a subsidiary of Cementir Holding, and Air
Liquide was selected by the European Commission to receive a non-repayable grant of EUR 220 million under
Director’s Report 2024 Cementir Holding NV | 33
the EU Innovation Fund. The project foresees that at the Aalborg plant in Denmark, one of the first fully onshore
carbon capture and storage (CCS) systems in Europe will be built by 2029, with the aim of reducing CO2
emissions by approximately 1.5 million tons per year.
With reference to the ongoing conflicts in Ukraine and the Middle East, the directors did not identify any direct
significant impact on the Group and the financial statements.
INNOVATION, QUALITY, RESEARCH AND DEVELOPMENT
The Cementir Group conducts applied research to support sustainability, innovation, product development, and
possible new solutions.
These activities are carried out in close collaboration with customers, business partners, academia, and other
stakeholders in the construction industry and society.
In 2024, the Cementir Group, as founder and member of the steering committee, continued to work on the
Innovandi project actively, a world-class cement and ready-mixed concrete industrial-academic research network
made up of 30 global companies in the cement-additives-ready-mixed concrete value chain together with 40
scientific institutes.
To meet the new challenges of the "Cementing the European Green Deal"-2020 defined by the EU in terms of
further reducing CO
2
emissions, the focus of the Group's research activities has been to develop projects and
investigate further innovative product and process solutions and systems to enable a sustainable production
transition. From 2020, all processes, product, and innovation activities were translated into a 10-year roadmap
with ambitious Group sustainability targets with a primary focus on European markets subject to the ETS
(Emission Trading System), then extended to all reference markets. 2023 and 2024 were marked by
implementing key projects in the roadmap.
In 2024, the Cementir Group continued to participate in the “Circular Concrete” project in Denmark, whose main
aim is to develop technologies to maximize the utilization of recycled aggregates in concrete.
In 2024, in line with the decarbonization of the Aalborg White® product range, a new D-Carb® brand product
was developed and placed on the market, with a 15% lower CO2 footprint than the reference Portland cement
while maintaining the same performance at short curing
In Turkey, the sustainable transition was based on the gradual transition from Portland cement to composite
cement in all plants in the country.
In Benelux and France, CCB continued 2023 the transition from CEM I to CEM II for precast ready-mixed
concrete applications. While for ready-mixed concrete, the focus has shifted to mixed cements. R&D expenses
to be reported according to Art. 2:391.2 DCC, amounted to approximately EUR 2 million (EUR 2 million in 2023).
Product innovation and new solutions
The Group decided to take on the challenge of meeting the growing demand for innovative, sustainable, and
high-value-added offerings. Product innovation and new solutions in the Cementir Group is an integral part of
InWhite Solutions® that involves the entire Group.
The overall goal is to expand the Group’s product market and increase market share within the entire value chain,
while supporting the path to sustainability.
Director’s Report 2024 Cementir Holding NV | 34
As of 2019, the Cementir Group has strengthened its position in the ultra-high performance concrete segment,
in particular, in the European market with premixed solutions using UHPC (Ultra High Performance Concrete)
technology: AALBORG EXTREME® Light 120 and AALBORG EXCEL®.
While AALBORG EXTREME® Light 120 is intended for use in structural and semi-structural applications,
AALBORG EXCEL® is intended for architectural applications, such as exclusive façade cladding.
After the initial focus on the European market, the Cementir Group has extended its sales perimeter to include
China, Australia and the Asian area, given the growing interest in UHPC technology demonstrated by the market
and confirmed by trends in the construction sector.
Since the end of 2023, InWhite solutions have also been produced in the premixed section of the Malaysia plant.
Also available from the end of 2023 is a new product, InBind®, a cement binder for UHPC applications.
Following the Group's customer-centric approach, specific product development activities were launched and
implemented in all regions to meet market needs for various applications and support them in their sustainable
transition.
From January 2021, the Group, through its subsidiary Aalborg Portland, has launched the first FUTURECEM®
cement on the Danish market. The new product was favourably received by the market as a solution to produce
a low-emission ready-mixed concrete. Underpinning the product's success are its suitability for the intended
applications, performance and continuous dialogue with the entire value chain, as well as strategic partnerships
with leading construction companies. The roll-out of FUTURECEM® cement continued at our subsidiary in CCB
- Belgium, where the cement was marketed in France in 2022. Since 2023, following the certification for use in
ready-mixed concrete (ATG), FUTURECEM® cement has also been sold in Belgium.
For the French market, in cooperation with customers, FUTURECEM® has been tested and used in a wide range
of applications, from ready-mixed concrete to precast elements.
FUTURECEM® is also part of the research project "B40 blocks for low-carbon concretes" conducted by CERIB-
Centre d'études et de recherches de l'industrie du béton.
In the context of lowering CO2 consumption in Turkey, the sustainable transition was based on a gradual switch
from Portland cement to type II composite cements in all plants in the country.
In Benelux and France, CCB completed the transition from CEM I to CEM II for precast ready-mixed concrete
applications in 2024. Also in 2024, cement II C was launched, available both in bags and loose for ready-mixed
concrete.
In 2024, in line with the decarbonisation of the Aalborg White® product range, a new D-Carb® brand product
was developed and placed on the market, with a 15% lower CO2 footprint than the reference Portland cement,
while maintaining the same performance at short curing. The aim is to expand the range of low-emission solutions
under the D-Carb® brand for the white product portfolio with a global geographic coverage starting in Europe.
Research Centre
The Research and Quality Centre (RQC) is the Group’s central quality section. The center has a laboratory with
state-of-the-art equipment, including instruments for mineralogical analysis of materials, such as the scanning
electron microscope and powder X-ray diffractometer. These specific instruments allow for a wide range of testing
and analysis of materials, alternative fuels, cement, and ready-mixed concrete. The laboratory is the benchmark
for the whole Group; it runs a cross-checking program that is the key to maintaining accuracy and precision in
our local laboratories. The lab provides them with calibration samples and, at regular intervals, receives samples
of raw materials, fuels, alternative fuels, clinkers, and cement from individual plants to assess process efficiency
and support the plants. Advanced analytical equipment enables prompt responses and troubleshooting, as well
as ensures continuous improvement in process efficiency and product quality in each plant.
Director’s Report 2024 Cementir Holding NV | 35
The RQC operates a global quality system to ensure uniform and consistent quality across the Group’s plants.
The system involves continuous online monitoring to check the quality of all products, continuous control (via
cross-checking) of the instruments used in local laboratories, a system of guidelines and procedures that can be
consulted online, which support the setting up of quality assessment models and improve the sharing of best
practices.
RQC also supports innovation and customer service. The center’s experts are specialists in cement chemistry,
mineralogy, concrete technology and white cement application. In addition to research, the center offers
customers technical support for all types of ready-mixed concrete and cement-based products and training for
new employees and actively participates in group initiatives.
At the global level, experts at the RQC help sales staff provide highly skilled assistance to the Group’s customers.
Research and quality skills, therefore, translate into high-value products and services for customers.
Quality
Quality is one of the main objectives pursued by the Group. The CON-CQ Concept (CONsistent Cement Quality)
policy is currently implemented in all plants, defining a quality management and control system, as well as roles
and responsibilities. The quality KPIs necessary to provide the right product for each application are defined
starting from the Voice of Customers. Based on an in-depth understanding of the impact on product performance
of raw materials, fuels, and the production process, Group companies can ensure the highest quality and stability
of the types of cement they produce.
The GRQCC Corporate Function (Group Research & Quality Competence Centre) defines best practices,
guidelines, and quality procedures standards to all the Group's plants. Periodic meetings are held with the
participation of the corporate and individual plants where the results obtained are discussed, improvements
needed to achieve the set targets are evaluated, investments and ongoing projects are assessed, and DOQs
(Declaration of Quality) are reviewed. Internal audits are carried out yearly to improve quality performance and
implement and improve controls and feedback. Every year, the performance of the plants is also evaluated
through the Quality Score Cards (QSCs).
The purpose of QSCs is to measure the performance of all quality aspects, from raw material extraction and
sourcing to customer satisfaction. This is done by scoring each topic based on predefined criteria. These criteria
may be based on a quantitative performance measure against a KPI or, as appropriate, a more qualitative
assessment. All establishments in cooperation with GRQCC must complete or update the scorecard annually.
Quality and Production Seminars are held annually for the grey and white sectors. In these seminars, the results
obtained during the year by the various plants are presented, the results of the projects are shared, and new
ones are presented. The latest activities are discussed, and the technical upgrades are shared. Specific
workshops are also held to discuss the case studies presented.
In 2024, a similar quality control system was developed for Cementir Holding's ready-mixed concrete companies
with a pilot project in Belgium. In 2025, QSCs will be implemented in the companies in Denmark and Norway.
One of the selected KPIs for ready-mixed concrete is the GWP (Global Warming Potential), which defines the
amount of CO2 emitted for the same mechanical properties by a specific concrete recipe used. This allows the
Group to monitor and improve the environmental impact of the concretes it produces.
Director’s Report 2024 Cementir Holding NV | 36
INFORMATION SYSTEMS
The Information Technology department implemented initiatives to support the Group's digital transition with
activities related to applications and technological tools in all business sectors and geographical areas. In this
context, it further strengthened its organisational and governance model based on the centralisation of
managerial and decision-making responsibilities and focused on transforming the way of working by supporting
the revision and standardisation of operational processes with Group solutions and services that are globally
harmonised, technologically advanced and data driven.
In the area of technology, 2024 was a year of continuity and further development for the consolidation and
modernisation of the infrastructure. The activities carried out ensured that high standards were maintained in
terms of both reliability and innovation. In fact, the multi-year modernisation project in Nordic & Baltic was
successfully completed, and work started on a similar project in Turkey. Work on the industrial network continued,
and a second phase is being considered that will include the implementation of even more advanced security
measures.
During the second half of the year, a thorough review of the current Cloud Data Centre solution was initiated and
completed, identifying upgrade actions aimed at further improving efficiency and reliability. The technology
renewal plan, which was chosen after this study, will be implemented during the first half of 2025 and will form
the foundation of the Group's infrastructure for the foreseeable future.
Overall, 2024 was a crucial year to maintain and strengthen the robustness of the Group's IT infrastructure,
focusing on innovation, security and optimisation.
On the cybersecurity front, the replacement of the XDR (Extended Detection and Response) solution was
completed, and the Security Operations Centre (SOC) service was extended, ensuring wider coverage and
constant threat monitoring. The solutions in use have been kept up to date with the latest available version,
ensuring maximum operational effectiveness. Penetration testing initiatives conducted during the year yielded
positive results, with corrective actions implemented in a timely manner based on the vulnerabilities that emerged.
Worth mentioning is the retention of the “Advanced” level (the highest available), awarded by the Cyber Security
rating agency, despite more stringent evaluation criteria.
Year 2024 also saw significant efforts to explore the potential of Artificial Intelligence. Several prototypes have
been realised and have provided very promising results. Some solutions have already entered production, with
areas of application in both cybersecurity and individual productivity.
The portfolio of Group and local initiatives to support the execution of the business plan was also completed with
very limited impact on implementation times. Its common denominator remains the gradual streamlining of the
application stack and the use of SAP as a pivotal system of the Group processes execution. In addition, a small
number of non-SAP applications were selected to complete the process coverage required for business
operations and development.
The Business Process Reengineering Program was the project vehicle for the activities related to the optimisation
and standardisation of business processes and the resulting interventions on applications. The main focus was
on Purchasing and Maintenance processes, with the deployment of solutions for managing subcontracting in
plants and the implementation of catalogue purchasing, as well as the deployment of remote document flow
management solutions. In addition, the completion of the detailed analysis of purchasing processes allowed the
start of the Gap Analysis phase to identify the actions necessary for the standardisation of processes on
supporting systems, an activity that will be implemented in 2025. Finally, master data management procedures
were completed and formalised, both in terms of process execution and governance.
The completion of the above process design also enabled the design of authorisation profiles in SAP to ensure
compliance with role segregation guidelines and more effective control during audits.
Director’s Report 2024 Cementir Holding NV | 37
Other relevant project activities on applications included: the implementation in SAP of the new Aggregates
Business in North America, the implementation of a new company in Malaysia, the completion of the extension
of the quality management module to China, the customer portal for Aggregates in Belgium, the legally required
electronic invoicing functionality in Malaysia, the extension of medium and long term SOP functionality on SAP
in North America, Malaysia and China.
The use of Process Mining continued and expanded geographically. In 2024 it was applied in the first place to
support the already mentioned Business Process Reengineering Program, and more extensively to the
purchasing, payment, sales and maintenance processes, identifying possible areas for improvement and
suggesting actions and intervention plans implemented during the year.
In the area of Business Intelligence, the planned project to define the new solution for consolidating corporate
data sources was completed and the prototype based on the new infrastructure was designed. This will act as a
catalyst for the future adoption of artificial intelligence, enabling faster and more efficient hypothesis testing and
model implementation.
Year 2025 will therefore be the period in which the selected new technologies will be tested and implemented to
optimise and simplify back-end data processes. The new data stack will include all the functionalities of a modern
consolidated Data-Lakehouse. We expect greater efficiency in data operations, reducing the time to market of
report development. The orchestration of data streams will also be managed, ensuring a faster and more reliable
data pipeline with less need for maintenance. The democratisation of data will be facilitated, allowing business
users and analysts to autonomously access data and create ad hoc reports. In addition, the architecture enables
artificial intelligence applications, such as Retrieval Argument Generation (RAG) to enrich generative artificial
intelligence and machine learning algorithms, as well as enabling the use of advanced analytics.
Keeping up with the implementation of AI will become increasingly crucial to maintaining competitiveness. Data
and processes have become differentiators, so Cementir's ability to implement AI quickly and efficiently will
become a strategic parameter, of which a modern data back-end is a key pillar.
Director’s Report 2024 Cementir Holding NV | 38
HEALTH, SAFETY AND ENVIRONMENT
Health and safety
During 2024, no fatal or serious accidents occurred among employees.
We consolidated the positive trend recorded in previous years, in line with our industrial goals. The continuous
monitoring of leading indicators helped us to better understand the effectiveness of the cultural improvement
path undertaken, allowing us to refine its progress through targeted actions that mainly concerned leadership
and employee involvement.
The main causes of accidents in 2024 were mostly related to events such as trips, slips and falls. During the
year, specific initiatives were undertaken to increase the level of worker awareness and supervision and control
activities in the field.
During the month of April, in conjunction with the celebrations of World Health and Safety Day, we carried out
additional awareness-raising initiatives focused on communicating unsafe conditions and behaviour. Reporting
such incidents helps to prevent accidents and injuries, identify root causes and corrective actions, and promote
a safety culture based on awareness, responsibility and proactivity. The initiatives were widely attended by the
workers.
We continued the implementation of planned improvement actions regarding our WASH - (Water, Sanitation
and Hygiene) commitment made in 2023. We have worked to improve access to drinking water and sanitation
for all workers at workplaces whose operational control is our responsibility.
Environment
Responsible and efficient management of water resources, minimisation and control of energy consumption,
the use of alternative fuels (e.g. biomass) and the use of raw materials and components with a lower
environmental impact are key elements of our sustainability strategy. The results for 2024 are substantially in
line with the planned path.
We updated the water risk assessment at the individual cement plant level, according to the scenarios reported
in the World Resources Institute (Aqueduct) information platform. Taking into account the industrial roadmap
and the results achieved so far, we revised our 2030 targets towards a further step of improvement. At the
Group level, compared to 2019 values, the target of reducing consumption in cement production was increased
to 30% from the previous 20%. Consistent with the Aqueduct update, we also reviewed our pool of plants
located in high water stress areas and recalculated consumption values, including the 2019 baseline. For these
plants, the reduction target for 2030 is 25%, although starting from a situation of specific consumption that is
substantially lower than the Group average.
The ISO 14001 certification plan, which is our management framework, continued with the aim of completing
it for the cement sector by 2025. After the completion of Egypt, the related preparatory activities for certification
for sites in the USA were started. To date, 82% of our cement plants are ISO 14001 certified.
In February 2025, Cementir was included for the first time in CDP's prestigious “A List”, a recognition of
strategies and actions implemented to mitigate climate change and promote corporate transparency. This
result underlines the significant progress Cementir has made in the four years since its initial “B” in 2020.
Cementir also maintained its leadership in water management by achieving a score of A- in CDP Water, for
the third consecutive year.
Director’s Report 2024 Cementir Holding NV | 39
HUMAN RESOURCES
Changes in the workforce
As at 31 December 2024, the Group's headcount stood at 3,082 employees, 37 more than at the end of 2023,
mainly related to the expansion of the concrete production perimeter in Denmark.
Personnel costs increased by approximately EUR 9 million compared to 2023 but were lower than the budget
for 2024. The change is mainly due to the adjustment of personnel costs with respect to rising inflation, as also
provided for in many local trade union agreements, turnover and recruitment processes and, lastly, to the
effects due to currency exchange rates.
Organisation
As of 31 December 2024, the Group's organisational model remained structured in the following territorial
areas:
• Nordic & Baltic
• North America
• Asia Pacific
• Turkey
• Egypt
• Belgium
and Holding and Services, within which Spartan Hive acts as a dedicated business unit.
Amsterdam is the registered office of the Holding, while the Rome office is the secondary and operational
headquarters.
Holding coordinates these regions and operating companies. The General Manager of the Group is entrusted
with overseeing the main operating undertakings of the company, allowing the Group CEO to focus on
business activities with a strategic impact, such as mergers and acquisitions.
During the year, the organisational structures were confirmed to guarantee certain key processes and to
improve the overall efficiency of organisational structures through the application of standard organisational
models, as well as to guarantee the filling of any vacancies to ensure business continuity.
The main organisational changes introduced during the year were:
• The inclusion of the position of ESG Reporting Manager dedicated to issues in the areas of
Environmental, Social, Governance and the implementation of the guidelines dictated by the
regulations on Corporate Sustainability Reporting (CSRD) with the allocation of activities within the
perimeter of the Administration, Finance and Control Department;
• The introduction of Local Audit Managers in Turkey and Nordic & Baltic, in order to strengthen
monitoring and control activities, ensuring an operational presence in the most impactful territorial
areas;
• The acquisition in April in Denmark of a ready-mixed concrete plant from NB Beton;
Extending the scope of Group Programme Management to process optimisation issues, with the aim
of assessing, analysing and optimising business processes, promoting standardisation and
harmonisation at Group level, also using Process Mining tools.
During 2024, the Group's commitment to the implementation of standard operating models (processes,
organisation and systems) was confirmed with the “Maintenance 4.0” programme, which was ultimately
extended to North America, in addition to the regions already covered, such as Asia Pacific (Malaysia and
China), Nordic & Baltic, Turkey and Belgium. North America was also affected by the standardisation
programme related to Cement Plant Warehouse activities with the “Warehouse 4.0” Programme, which had
been initiated in previous years in Nordic & Baltic, Turkey and Belgium.
Director’s Report 2024 Cementir Holding NV | 40
The scope of the “Business Process Re-engineering (BPR)” programme, aimed at the standardisation of
processes and systems, as well as the sharing of best practices at Group level, was also extended to payment
processes, with an end-to-end view of the entire purchasing flow.
The design part of the operational model was completed, as well as the drafting of Group guidelines, in line
with the defined implementation roadmap.
Technological innovation continued to affect the entire organisation in a cross-cutting way through the
increasingly widespread use of the digital signature system for signing internal and external documents, the
extension of the new compensation & benefits system also for the management of salary review processes,
as well as the extension of data mining systems for the operational monitoring of key performance indicators.
The Group HR Governance, which takes into account the digital and process developments that have taken
place in recent years, and the Group master policy, which defines the management of the internal procedural
system, have also been updated and published.
Regarding Talent Strategy, Remuneration, Internal Communication and Social Dialogue, please refer to
section S1-2, about the Statement on Diversity Objectives please refer to section S1-1 and for the Reference
Group and Market Positioning analysis refer to section S1-10.
Director’s Report 2024 Cementir Holding NV | 41
CORPORATE GOVERNANCE
INTRODUCTION
As of 5 October 2019, Cementir Holding is a Dutch public limited company (Naamloze Vennootschap) with its
registered office in Amsterdam, the Netherlands Zuidplein 36, 1077 XV and a secondary and operational office
in Rome, Italy, at Corso di Francia No. 200.
The company's tax residence is in Italy.
The Company has been listed on the Milan Stock Exchange since 1955, currently in the Euronext STAR Milan
segment.
Cementir Holding has elected the Netherlands as home Member State for the purposes of Art. 2(1) of the
Directive 2004/109/EC of the European Parliament and the Council of 15 December 2004 (the so-called
“Transparency Directive”).
The Company applies the Dutch Corporate Governance Code (hereinafter the “Code”) whose purpose is to
facilitate, with or in relation to other laws and regulations, a sound and transparent system of checks and
balances within Dutch listed companies and, to that end, regulate relations between the Board of Directors, its
Committees and shareholders.
It is to be noted that the provisions of the Code primarily refer to companies with a two-tier board structure
(consisting of a shareholder board and a separate supervisory board), while Cementir Holding. has
implemented a one-tier board. The best practices reflected in the Code for supervisory board members apply
therefore by analogy to Non-Executive Directors.
This report refers to the provisions and principles of the Code dated 22 December 2022 applicable from 2023
and available for download at the following address: https://www.mccg.nl/documenten/2022/12/20/corporate-
governance-code-2022 (https://www.mccg.nl/documenten/2022/12/20/dutch-corporate-governance-code-
2022 for the unofficial English version).
BOARD OF DIRECTORS
Composition and nomination of the Board of Directors
In compliance with the Company’s Articles of Association (hereinafter the “Articles of Association”), the Board
of Directors may be made up of one or more Executive Directors and one or more Non-Executive Directors,
providing that the total number of Directors is at least five and at most fifteen. The General Meeting of 20 April
2023 resolved, among other things, on the appointment and composition of the Board of Directors expiring
with that General Meeting in accordance with the provisions of the Articles of Association set out below, also
determining the number of members, reduced from 10 to 8.
The Board of Directors is currently made up of one Executive Director (Francesco Caltagirone, Chief Executive
Officer or "CEO") and seven Non-Executive Directors (Alessandro Caltagirone and Azzurra Caltagirone, Vice
Chairmen; Adriana Lamberto Floristan, Senior Non-Executive Director; Saverio Caltagirone, Fabio Corsico,
Benedetta Navarra and Annalisa Pescatori).
The Directors are appointed by the General Meeting. Directors may be nominated for appointment:
• on a proposal of the Board; or
• to a proposal of one or more Shareholders, alone or together representing at least the 3% of the
issued share capital, provided that the proposal has been notified to the Board in accordance with
the requirements of Articles 8.3.4 and 8.3.5 of the Articles of Association.
Director’s Report 2024 Cementir Holding NV | 42
The nomination must make it explicit whether a person is nominated for appointment as Executive Director or
Non-Executive Director. A Director shall be appointed for a maximum period of three years, provided however
that unless such Director has resigned at an earlier date, their term of office shall expire ultimately immediately
after the close of the first General Meeting held after three years have lapsed since their appointment. A
Director may be reappointed with due observance of the preceding sentence. By resolution of the General
Meeting at the proposal of the Board, the maximum period of three years may be deviated from. The Board
may draw up a retirement schedule for the Directors. At a General Meeting, a resolution to appoint a Director
can only be passed in respect of candidates whose names are stated for that purpose in the agenda of that
General Meeting or the explanatory notes thereto. The General Meeting may at all times suspend or dismiss
a Director.
Convening meetings and agenda
Meetings are held as often as the Senior Non-Executive Director or the Chief Executive Officer or any two
Directors jointly request, provided that there are at least four regularly scheduled Board meetings in each
financial year.
Meetings are convened in a timely manner by the Senior Non-Executive Director, the Chief Executive Officer
or the Vice-Chairman, or if each of them is absent or unable to act, by any Director. The notice sets out the
meeting agenda. The Director convening a meeting sets the agenda for that meeting. Directors may submit
agenda items to the Director(s) convening the meeting.
Meeting location
Meetings are normally held at the Company’s secondary offices in Rome, Italy, but may also take place
elsewhere.
Meetings may also be held by telephone, videoconference, or other means of electronic communication,
provided that all participants can hear each other simultaneously. Directors attending the meeting by telephone
or videoconference are considered present at the meeting.
Attendance
Each Director attends Board meetings and the meetings of the committees of which he or she is a member. If
a Director is frequently absent from these meetings, this Director must account for these absences.
A Director may be represented at a meeting by another Director holding a proxy in writing or in a reproducible
manner by electronic means of communication.
The Board may require that certain officers and external advisers attend its meetings.
The external auditor may attend the Board meeting at which the external auditor’s report on the audit of the
financial statements is discussed.
Chairman of the meeting
The Chief Executive Officer chairs the meeting. If the Chief Executive Officer is not present at the meeting, the
Senior Non-Executive Director chairs the meeting. If both the Chief Executive Officer and the Senior Non-
Executive Director are not present at a meeting, the Vice-Chairman chairs the meeting. If the Chief Executive
Officer, the Senior Non-Executive Director and the Vice-Chairman are not present at the meeting, the Directors
present at the meeting will designate one of them as chairman of that meeting.
In accordance with the provisions of the Articles of Association and the Board Rules, a non-executive and
independent member, the Senior Non-Executive Director, serves as chairman of the meetings pursuant to and
for the purposes of Dutch law (Art. 2:129a of the Dutch Civil Code) and in accordance with Best Practice
provision 2.1.9. of the Code. In this regard, in such role, the Senior Non-Executive Director, inter alia, ensures
that there is sufficient time for deliberation and decision-making by the Board and that directors receive timely
all information that is necessary for the proper performance of their duties. In this capacity, the Senior Non-
Director’s Report 2024 Cementir Holding NV | 43
Executive Director also collects and coordinates the requests and contributions of the Non-Executive Directors
and more in particular of the independent directors. The Senior Non-Executive Director, in this capacity, plays
a liaison role between the Executive and Non-Executive Directors and thus ensures the effective functioning
of the Board as a whole.
Adoption of resolutions – quorum requirements
The Board may only adopt resolutions at a meeting if the majority of the Directors entitled to vote is present or
represented at the meeting including at least one Executive Director, if the Executive Director is entitled to vote
on matters being considered.
If the Chief Executive Officer believes there is an urgent situation that requires the Board’s immediate resolution,
the quorum requirement referred as above not apply, providing that:
• at least three directors are present, or represented by proxy, including at least one Executive
Director who can validly express their vote on the matters considered; and
• reasonable efforts have been made to involve the other Directors in the decision-making.
The chairman of the meeting ensures that adopted resolutions are communicated to Directors not present at
the meeting without delay.
Adoption of resolutions - majority requirements
Each Director has one vote. Where possible, the Board adopts its resolutions by unanimous vote. If this is not
possible, the resolution is adopted by a simple majority of the votes cast. In the event of a tie vote the Chief
Executive Officer has a casting vote. If there is insufficient agreement on a proposed resolution during the
meeting, the chairman of the meeting may defer the proposal for further discussion or withdraw the proposal.
Meeting minutes
The Company Secretary or any other person designated as the meeting secretary prepares the meeting
minutes. The minutes are adopted:
• by a resolution adopted at the next Board meeting; or
• by the chairman and secretary of the particular meeting, after having consulted the Directors present or
represented at that meeting.
Adopting resolutions without holding a meeting
The Board may also adopt resolutions without holding a meeting, provided that such resolutions are adopted in
writing or in a reproducible manner by electronic means of communication, and all Directors entitled to vote
consented to adopting such resolutions without holding a meeting.
Role of the Board of Directors
The Board of Directors is responsible for the overall conduct of the Cementir Group and has the powers,
authorities and duties vested in it by and pursuant to the relevant laws of the Netherlands and the Articles of
Association. In all its dealings, the Board shall be guided by the interests of the Cementir Group as a whole,
including but not limited to the Company’s shareholders and also taking into account the interests of relevant
stakeholders. The Board has the final responsibility for the management, direction and performance of the
Company and the Cementir Group.
Pursuant to Art. 7.5.1 of the Articles of Association the Board is authorised to represent the Company.
Director’s Report 2024 Cementir Holding NV | 44
The Board has allocated duties and powers to the Directors by Board Rules approved pursuant to Art. 7.1.5
of the Company's Articles of Association on 5 October 2019 and subsequently last amended on 27 April 2023,
available on the Company's website.
Without limiting the scope of the Board’s role, the ongoing items to be considered and decided upon by the full
Board include:
• reviewing and approving (any material amendment to) the business plan;
• reviewing and approving (any material amendment to) the Budget;
• ensuring the Cementir Group’s compliance with applicable laws and regulations;
• proposing the Dutch statutory management report and financial statements for adoption by the
General Meeting;
• approving decisions as required under Dutch law; and
• discussing and approving the strategies for the shaping of the portfolio and direction of the
Cementir Group, including the strategy for realising long-term sustainable value creation.
At least once a year, the full Board shall discuss:
• the functioning of the Board of Directors, the Chief Executive Director, the Senior Non-Executive
Director and the other directors; and
• the corporate strategy of the Cementir Group, the risks of the business and the assessment by
the Board of the structure and operation of the internal risk management and control systems.
• The Board of Directors also resolves:
• on the proposed suspension of any director and the suspension of the Executive Directors,
without the presence of the director concerned;
• on the creation or discontinuation of any material business activities;
• on the payment of dividends or other distributions to shareholders (other than a member of the
Cementir Group) or the repurchase or redemption of securities or indebtedness of any member
of the Cementir Group (other than that held by a member of the Cementir Group);
• on the change of the Company's auditors;
• as the case may be, to liquidate, initiate any bankruptcy, dissolution or winding up proceedings,
moratorium or suspension of payments (or any similar proceedings in the relevant jurisdiction) in
respect of the Company or any significant Cementir Group company, unless Directors are
required to do so by applicable law;
• recommending a public offer for shares in the Company.
The table below shows the personal information of each Director holding a position in Cementir Holding during
2024 in compliance with Best Practice provision in 2.1.2 of the Code. The “Other Positions” pursuant to Best
Practice provision 2.4.2 of the Code can be found in the Curriculum Vitae of each Director, available on the
Company’s website Board of Directors | Cementir Holding N.V.
Director’s Report 2024 Cementir Holding NV | 45
Table A - Personal Information *
Name, date of birth, gender,
nationality
Position
First
appointment
Date of current
appointment or
reappointment
End of current
term
Francesco Caltagirone
29/10/1968, M,
Italian
Executive Director
(Chief Executive Officer and
Chairman)
27 June 1995
20 April 2023
AGM 2026
Alessandro Caltagirone
27/12/1969, M, Italian
Non-Executive Director
(Vice-chairman)
10 May 2006
20 April 2023
AGM 2026
Azzurra Caltagirone
10/03/1973, F, Italian
Non-Executive Director
(Vice-chairman)
10 May 2006
20 April 2023
AGM 2026
Saverio Caltagirone
03/03/1971, M, Italian
Non-Executive Director
22 May 2003
20 April 2023
AGM 2026
Fabio Corsico
20/10/1973, M, Italian
Non-Executive Director
15 January
2008
20 April 2023
AGM 2026
Adriana Lamberto Floristan
11/09/1973, Spanish F
Senior Non-Executive
Director
21 April 2021
20 April 2023
AGM 2026
Benedetta Navarra
24/03/1967, F, Italian
Non-Executive Director
20 April 2023
20 April 2023
AGM 2026
Annalisa Pescatori
20/07/1964, F, Italian
Non-Executive Director
20 April 2023
20 April 2023
AGM 2026
* The official gender is reported in the absence of notification of a different gender identity.
Three Non-Executive Directors of the Company are qualified as independent for the purposes of the Code:
Adriana Lamberto Floristan, Benedetta Navarra and Annalisa Pescatori.
There are no representatives of employees or other workers on the Board of Directors of the Company.
The following table summarises general information on the number and percentage of executive, non-
executive, independent members, employee representatives and their respective gender.
Table A-bis - General information on the composition of the Board of Directors
Category
No.
% BoD
No. Women
% Women
No. Men
% Men
Executive Director(s)
1
12.5%
0
0%
1
100%
Non-Executive Director(s)
7
87.5%
4
57%
3
43%
Total BoD
8
100%
4
50%
4
50%
Independent directors
3
37.5%
3
100%
0
0%
Workers' representatives
0
N/A
N/A
N/A
N/A
N/A
During 2024, 5 meetings of the Board of Directors were held, in which the Board of Directors, among other
things:
- examined and approved the preliminary consolidated results for the fourth quarter of 2023 and for the year
ended 31 December 2023;
- examined and approved the 2024 budget and the update of the 2024-2026 Business Plan. In this context, in
particular, the Board examined and discussed the strategic vision underlying the 2024-2026 Business Plan
Director’s Report 2024 Cementir Holding NV | 46
proposed by the CEO and, in its integrated composition of Executive and Non-Executive Directors, shared
and approved this strategy, participating in the definition of sustainable long-term value creation;
- examined and approved the financial statements for the year ended 31 December 2023, preceded by the
approval of the impairment test, and also approved the Cementir Group's Sustainability Report - Non-
Financial Statement 2023 with the related materiality matrix, the Corporate Governance Report pursuant to
the Code and the Remuneration Report pursuant to the Code and articles 2:135(a) et seq. of the Dutch Civil
Code, convening the annual General Meeting;
- examined and approved the quarterly financial results of the Cementir Group and the half-year financial
report;
- examined and approved the Internal Audit plan for the year 2025 and the Group's risk assessment, in which
the risks associated with the strategy and activities of the Company and its subsidiaries were identified and
analysed, in particular the strategic, financial, operational, compliance and sustainability risks, and specific
and separate information was provided on the risks related to climate change and the energy transition,
which were therefore a further opportunities for discussion and in-depth analysis of sustainability issues
within the Board;
- reviewed the performance and procedures of the Board itself and its Committees, assessing their size and
composition, also in consideration of professional experience, management expertise, gender;
- verified the diversity targets for 2023 and also defined the diversity and inclusion targets for the Board and
senior management for 2024;
- approved the policy for the regulation of lobbying activities and political contribution, the Audit Manual and
the Internal Audit Charter, and updated the procedure for handling and disseminating inside information and
the Internal Dealing Code.
In line with the suggestions arising from the Board's annual self-assessment, Board meetings were opened
with a brief introductory presentation by the Chairman on the current geopolitical situation, strategic issues
and/or potential risks facing the Company, as a useful tool to provide Directors with a better visibility and
understanding of the Company's business, in particular with regard to issues of general interest and specific
events that had occurred in the period between Board meetings, linking them into a single, coherent context
and providing an additional stimulus for discussion.
The table below shows the attendance of each Director to the board meetings and also the attendance of the
members to the Audit Committee and Remuneration and Nomination Committee and Sustainability Committee
meetings.
Table B - Attendance
Director
Board of
Directors
Audit Committee
Remuneration and
Nomination Committee
Sustainability
Committee
Francesco Caltagirone
4/5
N/A
N/A
3/3
Alessandro Caltagirone
4/5
N/A
N/A
N/A
Azzurra Caltagirone
5/5
N/A
N/A
N/A
Saverio Caltagirone
5/5
N/A
N/A
N/A
Fabio Corsico
4/5
N/A
N/A
N/A
Adriana Lamberto
Floristan
5/5
4/4
3/3
3/3
Annalisa Pescatori
5/5
4/4
3/3
3/3
Benedetta Navarra
5/5
4/4
3/3
3/3
Director’s Report 2024 Cementir Holding NV | 47
Education, training and induction activities for the Board of Directors
The Company shall ensure that it carries out continuous training activities, in accordance with Best Practice
provision 2.4.5 of the Code, also taking into account the results of the annual assessment provided for by Best
Practice provision 2.2.8 of the Code.
Since 2020, the comprehensive training offered by the Cementir Academy to Cementir Group employees has
been extended to board members. Among the courses, offered in micro e-learning mode, are those on fraud
management, whistleblowing, human rights, cybersecurity, GDPR (Data Protection Regulation (EU) 2016/679),
Code of Ethics, 231 Models, Diversity Equity & Inclusion. The insider information course has been in place since
as early as 2019. The course list is designed to be continually updated and expanded. Since 2024, to emphasise
the Company's commitment to sustainability, the course list has been expanded with a course on ESG issues,
aimed at deepening the current position and outlining the Group's ESG objectives, showing strategies to achieve
them with the intention of taking urgent action in this area. A course on tax offences was also added.
In 2024, Cementir Holding organised a visit to one of the Group's main plants, in Aalborg, Denmark, for the board
members, as also requested during the board's annual self-assessment process. Such an initiative had already
been implemented in 2019, then suspended from 2020 due to the pandemic.
During the financial year, an in-depth induction programme was prepared for directors, this year focusing on the
new Corporate Sustainability Reporting Directive (“CSRD”), cybersecurity and the sustainable transition within
Group’s products & solution portfolio, also in response to requests raised during the self-assessment.
Succession plan
Pursuant to Best Practice Provision 2.2.4 of the Code, the Company by resolution of the Board on 27 July
2022, upon the favourable opinion of the Remuneration and Nomination Committee, adopted the succession
procedure (hereinafter the “Succession Plan”) regulating the process to be followed in the event of the
appointment of a member of the Board of Directors. In particular, the Procedure describes the timing, actors
and actions to be taken for the appointment both when the term set by the General Meeting of the Company
for the office of director of the Company is approaching expiry, and in the event of the early termination of
Executive or Non-Executive Directors for any reason with respect to the term of office. The contingency plan
with temporary management pending the final replacement by the General Meeting is also described.
EXECUTIVE DIRECTOR AND CHIEF EXECUTIVE OFFICER
The Executive Director is responsible for the ordinary and extraordinary management of the Company with the
widest powers to the maximum extent permitted by the applicable law, developing and setting the Company’s
objectives and strategy, overseeing the associated risk profile and addressing corporate social responsibility
issues that are relevant to the Company.
The Executive Director also discusses the effectiveness of the design and operation of the internal risk
management and control systems with the Audit Committee and renders account of this to the Board.
Only one Executive Director has been appointed who is also automatically Chief Executive Officer and
Chairman pursuant to Art. 2.3.4 of the Company’s Board Rules and Art. 7.1.2 of the Articles of Association,
without prejudice to the role of the Senior Non-Executive Director under Dutch law.
The Chief Executive Officer is primarily responsible for the day-to-day management of the Company with each
and every power of ordinary and extraordinary administration of the Company, to the maximum extent
permitted by the applicable law, including, without limitation, the following tasks and responsibilities:
• the operational management of the Company;
• the profit responsibility of the Company and the Cementir Group’s enterprises;
Director’s Report 2024 Cementir Holding NV | 48
• setting performance targets for the Cementir Group;
• managing the business performance of the Cementir Group;
• examining, analysing and proposing to the Board strategic business opportunities that can
contribute to the further growth of the Cementir Group;
• compliance with all relevant laws and regulations, the Articles of Association and good corporate
governance practice;
• executing the decisions of the Board;
• determining the objectives to be achieved by the Board; and
• communicating with all relevant stakeholders of the Company, the media and the public; and
• preparing the Company’s annual accounts as referred to in Art. 2:361 BW.
Pursuant to Art. 7.5.1 of the Articles of Association and Art. 2.4.3 of the Board Rules, the Chief Executive
Officer is authorised to represent the Company.
The Executive Directors can be appointed for a maximum term of three years and can thereafter be
reappointed, with due observance of the Articles of Association.
In accordance with Art. 7.2.8 of the Articles of Association and Art. 2.6 of the Board Rules, if the seat of the
Executive Director is vacant or he is unable to act, the Non-Executive Directors will temporarily be entrusted
with the executive management of the Company, unless the Board provides for a temporary replacement.
SENIOR NON-EXECUTIVE DIRECTOR AND VICE CHAIRMAN
The Senior Non-Executive Director is primarily responsible for ensuring that:
• there is sufficient time for deliberation and decision-making by the Board;
• the Directors receive all information that is necessary for the proper performance of their duties
in a timely fashion;
• the Board and its committees function properly;
• the Board designates one of the Non-Executive Directors as Vice-Chairman;
• the performance of the Directors is assessed at least annually:
• the Directors follow their introduction, education or training programme;
• the Board performs activities in respect of culture;
• signs from the Business are recognised and any actual or suspected material misconduct and
irregularities are reported to the Board without delay; and
• effective communication with shareholders is assured.
Anyone who previously held the office of Executive Director cannot hold the position of Senior Non-Executive
Director.
The Senior Non-Executive Director must be independent pursuant to Best Practice provision 2.1.8 of the Code
and cannot be chairman of the Audit Committee or the Remuneration and Nomination Committee.
Director’s Report 2024 Cementir Holding NV | 49
The Board of Directors of 27 April 2023, following the appointment of the Board of Directors with the General
Meeting resolution of 20 April 2023, appointed the Non-Executive Director Adriana Lamberto Floristan as
Senior Non-Executive Director with the role of chairing the Board of Directors pursuant to Dutch law (Article
2:129a of the Dutch Civil Code), in compliance with Best Practice provision 2.1.9 of the Code and in compliance
with the Articles of Association and Art. 2.3.7 of the Board Rules.
The Board may appoint one or more Vice-Chairmen and determine their term of office. The Vice-Chairman
deputises for the Senior Non-Executive Director in the event that the position of Senior Non-Executive Director
is vacant or if the Senior Non-Executive Director is unable to act.
The Vice-Chairman shall act as point of contact for Directors concerning the functioning of the Senior Non-
Executive Director.
NON-EXECUTIVE DIRECTORS
The Non-Executive Directors supervise the Executive Director’s policy and performance of duties, the
Company’s general affairs and its business and provide advice to the Executive Director.
Non-Executive Directors supervise at least the following key elements:
• developing a general strategy, including the formulation of the strategy for realising long -term
sustainable value creation, and taking into account risks connected to the Cementir Group’s
business activities;
• ensuring compliance with all relevant laws and regulations, the Articles of Association and good
corporate governance practice;
• satisfying the integrity and quality of financial and sustainability reporting, ensuring the adequacy
of financial controls and risk management systems; and
• reviewing the performance of the Board as a whole, each Director individually, and the
committees of the Board.
A Non-Executive Director can be appointed for a maximum term of three years and can thereafter be
reappointed, with due observance of the Articles of Association. In accordance with Art. 7.2.9 of the Articles of
Association, if the seat of a Non-Executive Director is vacant or upon the inability of a Non-Executive Director
to act, the remaining Non-Executive Director or Non-Executive Directors shall temporarily be entrusted with
the performance of the duties and the exercise of the authorities of that Non-Executive Director; the Board
may, however, provide for a temporary replacement. If the seats of all Non-Executive Directors are vacant or
upon inability of all Non-Executive Directors or the sole Non-Executive Director to act, as the case may be, the
General Meeting shall be authorised to temporarily entrust the performance of the duties and the exercise of
the authorities of Non-Executive Directors to one or more other individuals. The Board may entrust one or
more Non-Executive Directors to execute a resolution made by the Board with all necessary powers, including
the right to sub-delegate, without prejudice to their duties and responsibilities.
Non-Executive Directors scheduled the yearly meeting recommended by Best Practice provisions of the Code
prior to the Board meeting of 11 March 2024. The contents of the supervisory activity carried out continuously
during the financial year, especially during the meetings of the Board of Directors and, for its members, of the
Board Committees, were examined and approved and subsequently reported in the annual report drawn up
pursuant to Best Practice provision 5.1.5 of the Code. The independent directors met in the absence of the
other directors on 4 November 2024 to further share common issues.
Director’s Report 2024 Cementir Holding NV | 50
DIVERSITY POLICY
The Company’s Board of Directors approved the Diversity Policy on 13 November 2019, following the transfer
of the Company’s registered office to the Netherlands. At the same time, the Profile of the Board was approved
pursuant to and for the purposes of the provisions of Section 2.1.1 of the Code. Both have been the subject of
subsequent updates.
The Diversity Policy and the Board Profile are both available on the Company's website pursuant to Best
Practice provision 2.1.5 of the Code.
For further information, please refer to the Social Information.
CONFLICT OF INTEREST
Any conflict of interest between the Company and Directors must be prevented. The Board is responsible for
dealing with any conflicts of interest that Directors or majority shareholders may have in relation to the Company.
Directors must be alert to conflicts of interest and may not:
• compete with the Company;
• demand or accept substantial gifts from the Company for themselves or their spouse, recognised
partner or other life companion, foster child or relative by blood or marriage up to the second
degree;
• provide unjustified advantages to third parties at the Company’s expense; or
• take advantage of business opportunities that the Company is entitled to, for themselves or for
their spouse, recognised partner or other life companion, foster child or relative by blood or
marriage up to the second degree.
A Director other than the Senior Non-Executive Director or Vice-Chairman must, without delay, report any conflict
of interest or potential conflict of interest to the Senior Non-Executive Director, or in the Senior Non-Executive
Director’s absence, the Vice-Chairman. The Senior Non-Executive Director must, without delay, report any conflict
of interest or potential conflict of interest to the Vice-Chairman or, in the Vice-Chairman’s absence, to the other
Directors. The Vice-Chairman must, without delay, report any conflict of interest or potential conflict of interest to
the Senior Non-Executive Director or, in the Senior Non-Executive Director’s absence, to the other Directors. The
Director must provide all relevant information, including any relevant information concerning his or her spouse,
registered partner or other life companion, foster child and relatives by blood or marriage up to the second degree.
The Board decides whether a Director has a conflict of interest, without the Director concerned being present.
A Director may not participate in the Board’s or a committee’s deliberations and decision-making process on
a subject where the Director is found to have a conflict of interest. This rule doesn’t apply when the entire
Board is unable to adopt a resolution as a result of all Directors being unable to participate in the deliberations
and decision-making process due to a conflict of interest.
During 2024 no transactions in conflict of interest with Directors and/or majority shareholders were reported or
took place.
Director’s Report 2024 Cementir Holding NV | 51
BOARD COMMITTEES
Audit Committee
By resolution of 27 April 2023, the Board of Directors, elected by the General Meeting of 20 April 2023,
appointed the Audit Committee. The duties and responsibilities of the Audit Committee are defined in the
relevant Charter (published on the Company's website) approved by the Board of Directors pursuant to Art.
7.1.4 of the Articles of Association and updated on 27 April 2023.
The Audit Committee consists of three members: 1. Benedetta Navarra (Chairman, expert in financial
reporting), 2. Annalisa Pescatori, 3. Adriana Lamberto Floristan.
All members of the Audit Committee are independent pursuant to Best Practice provision 2.1.8 of the Code.
The Audit Committee prepares the decision-making of the Board regarding the supervision of the integrity and
quality of the Company’s financial reporting and the effectiveness of the Company’s internal risk management
and control systems.
The Audit Committee focuses on monitoring the Board of Directors, among others, in the following matters:
• relations with the internal and external auditors, and compliance with and follow-up on their
recommendations and comments.
The internal audit function has sufficient resources to execute the internal audit plan and has access
to information that is important for the performance of its work. The internal audit function has direct
access to the Audit Committee and the external auditor. Records are kept of how the Audit Committee
is informed by the internal audit function.
The internal audit function reports its audit results to the Board and the Audit Committee and informs
the external auditor. The findings of the internal audit function include the following:
- any flaws in the effectiveness of the internal risk management and control systems;
- any findings and observations with a material impact on the risk profile of the Company and its
subsidiaries; and
- any failings in the follow-up of recommendations made by the internal audit function.
• the Company’s funding;
• the Company’s tax policy.
In addition, the Audit Committee carries out the following duties:
• recommending persons for appointment as senior internal auditor;
• annually forming a position on how the internal audit function fulfils its responsibility. The Board
discusses the effectiveness of the design and operation of the internal risk management and control
systems referred to in Best Practice provisions 1.2.1 through 1.2.3 of the Code with the Audit
Committee;
• if the Company does not have an internal audit department, recommending annually to the Board
whether adequate alternative measures have been taken. The Board includes the conclusions, along
with any resulting recommendations and alternative measures, in the Board’s report;
• reporting annually to the Board on the functioning of, and the developments in, the relationship with
the external auditor. The Audit Committee advises the Board regarding the external auditor’s
nomination for appointment/reappointment or dismissal and prepares the selection of the external
auditor. The Audit Committee gives due consideration to the Board’s observations during this process.
Based on this, among other things, the Board determines its nomination for the appointment of the
external auditor to the General Meeting;
Director’s Report 2024 Cementir Holding NV | 52
• submitting a proposal to the Board for the external auditor’s engagement to audit the annual accounts.
The Board plays a facilitating role in this process. In formulating the terms of engagement, attention is
paid to the scope of the audit, the materiality to be used and the remuneration for the audit. The Board
takes the decision on the engagement. If a new external auditor is to be engaged by the Company the
Audit Committee motivates the proposal. The proposal states at least two options for a possible
external auditor to be engaged by the Company and explains the Audit Committee’s preferred option.
The proposal furthermore states that the decision-making of the Audit Committee in this regard is not
influenced by any third party or by any agreement;
• annually discussing the draft audit plan with the external auditor, including:
- the scope and materiality of the audit plan and the principal risks of the annual reporting
identified by the external auditor in the audit plan; and
- based also on the documents used to develop the audit plan, the findings and outcome of the
audit work carried out on the annual accounts and the management letter;
• determining whether and, if so, how the external auditor is involved in the content and publication of
financial reports other than the annual accounts; and
• meeting with the external auditor as often as it considers necessary, but at least once a year, without
Executive Directors being present.
The Audit Committee also carries out the following duties:
• monitoring the financial reporting process and drawing up proposals to safeguard the integrity of
this process;
• monitoring the effectiveness of the internal control systems, the internal audit function and risk
management systems with regard to the Company’s financial reporting;
• monitoring the statutory audit of the annual accounts and the consolidated annual accounts;
• assessing and monitoring the independence of the external auditor or the audit firm, as applicable,
specifically taking into account the extension of ancillary services to the Company; and
• determining the selection process for the external auditor or the audit firm, as applicable of the
Company and the nomination to extend the assignment to carry out the statutory audit.
The Audit Committee reports on its deliberations and findings to the Board. This report includes information
on how the duties of the Audit Committee were carried out in the financial year, and also reports on the
composition of the Audit Committee, the number of meetings of the Audit Committee and the main items
discussed at those meetings.
This report also includes the following information:
• the methods used to assess the effectiveness of the design and operation of the internal risk
management and control systems referred to in Best Practice provisions 1.2.1 through 1.2.3 of the
Code;
• the methods used to assess the effectiveness of the internal and external audit processes;
• material considerations regarding financial reporting; and
• the way material risks and uncertainties referred to in Best Practice provisions 1.4.2 and 1.4.3 of
the Code have been analysed and discussed, along with a description of the most important
findings of the Audit Committee.
In particular, the Audit Committee reports on the results of the annual statutory audit to the Board. This report
includes information on how the audit has contributed to the integrity of the financial reporting, and also
addresses the role of the Audit Committee in the audit.
During 2024, the Audit Committee met 4 times. The attendance of the members to the Audit Committee
meetings is shown in “Table B - Attendance” in the paragraph “Role of the Board of Directors”.
Director’s Report 2024 Cementir Holding NV | 53
During these meetings, the Audit Committee examined and discussed, among other things, the 2023 financial
statements, the half-year financial report and the quarterly financial results for 2024 of the Cementir Group;
the Audit Committee also examined and discussed the activities carried out by the Internal Audit function and
the Ethics Committee during 2023; examined the activities of the Internal Audit function referring to the first
quarter and half-year of 2024, agreeing on methods and timing for the receipt of periodic or event-based
information, with particular reference to significant events subject to audits, whistleblowing reports and
litigation; the Audit Committee then examined the Audit Plan prepared by the Internal Audit function for 2025,
in accordance with Best Practice provision 1.3.3 of the Code, together with the budget for that function for the
same year. It also examined the Group's Enterprise Risk Assessment. The Audit Committee also reviewed
and discussed the external auditor's report on the audit work performed on the 2023 financial statements, the
Audit Plan prepared by the external auditor, and reviewed and discussed the external auditor's non-audit
services and related network pursuant to the "procedure for the assignment of non-audit services to the
external audit company and related network"; gave a favourable opinion on the board's approval of the policy
for the regulation of lobbying activities and political contributions, the Audit Manual and the Internal Audit
Charter; finally, followed the CSRD preparation and implementation activities. The Audit Committee then
examined and discussed the reports prepared for the Board of Directors of the Company pursuant to Best
Practice provision 1.5.3 of the Code, as well as the annual assessment carried out by the members of the
Audit Committee pursuant to Best Practice provision 2.2.6 of the Code.
The Audit Committee periodically reported to the Board of Directors on the activities carried out.
The Audit Committee examined the financial documentation with the Group Chief Financial Officer, who
attended the Committee meetings. The Audit Committee met the external auditor at all four meetings held
during the year, at which, in the presence of the Group Chief Financial Officer, it examined, among other things,
the annual financial statements, the report of the external auditor concerning the audit work carried out on the
2023 financial statements and also discussed the audit plan prepared by the same external auditor.
The Audit Committee received updates on legal matters by the Group General Counsel of the Company
attending all the meetings. Internal Audit activity was reviewed on a regular basis with the Group Chief Internal
Audit Officer also attending all the meetings and discussing with the Committee the main findings and
remediating actions.
Remuneration and Nomination Committee
By means of the resolution adopted on 27 April 2023, the newly elected Board of Directors combined the roles
of the remuneration committee and the selection and appointment committee in one committee, by appointing
the Remuneration and Nomination Committee.
The duties and the responsibilities of the Remuneration and Nomination Committee are set out in the related
charter (published on the Company website) adopted by the Board of Director pursuant to Art. 7.1.4 of the
Articles of Association and updated on 27 April 2023.
The Remuneration and Nomination Committee consists of three members: 1. Annalisa Pescatori (Chairman),
2. Benedetta Navarra, 3. Adriana Lamberto Floristan.
All the members of the Remuneration and Nomination Committee are independent pursuant to Best Practice
provision 2.1.8 of the Code.
The Remuneration and Nomination Committee prepares the Board’s decision-making (including, if applicable,
proposals of the Board for the General Meeting) regarding the determination of the remuneration of individual
Directors, including severance payments.
Director’s Report 2024 Cementir Holding NV | 54
The Remuneration and Nomination Committee submits a proposal to the Board (including, if applicable,
proposals of the Board for the General Meeting) concerning the remuneration of each Director. The proposal
is drawn up according to the remuneration policy that has been established and, in any event, covers:
• the objectives of the strategy for the implementation of long-term sustainable value creation within
the meaning of Best Practice provision 1.1.1 of the Code;
• the scenario analyses carried out in advance;
• the pay ratios within the Company and the Business;
• the development of the market price of the shares;
• an appropriate ratio between the variable and fixed remuneration components. The variable
remuneration component is linked to measurable performance criteria determined in advance,
which are predominantly long-term in character;
• if shares are being awarded, the terms and conditions governing this. Shares should be held for at
least five years after they are awarded; and
• if share options are being awarded, the terms and conditions governing this and the terms and
conditions for exercising the share options. Share options may not be exercised during the first
three years after they have been awarded.
The Remuneration and Nomination Committee also prepares the Board’s decision-making (including, if
applicable, proposals of the Board for the General Meeting) regarding:
• the drawing up of selection criteria and appointment procedures for Executive Directors and Non-
Executive Directors;
• the periodical assessment of the size and composition of the Board, and the making of proposal
for a composition profile of the Board;
• the periodical assessment of the performance of individual Executive Directors and Non-Executive
Directors and reporting this to the Board;
• the drawing up of a plan for the succession of Executive Directors and Non-Executive Directors;
• the proposal for appointment and reappointment of Executive Directors and Non-Executive
Directors;
• the supervision of the policy of the Board regarding the selection criteria and appointment
procedures for senior management; and
• the development of the Company's diversity and inclusion policy for the composition of the Board
and for certain categories of senior management determined by the Board.
The Remuneration and Nomination Committee reports on its deliberations and findings to the Board. This
report includes information on how the duties of the Remuneration and Nomination Committee were carried
out in the financial year, and also reports on the composition of the Remuneration and Nomination Committee,
the number of meetings of the Remuneration and Nomination Committee and the main items discussed at
those meetings.
The Remuneration and Nomination Committee describes, in a transparent manner, in addition to the matters
required by law:
• how the remuneration policy has been implemented in the past financial year;
• how the implementation of the remuneration policy contributes to long-term sustainable value creation;
• how scenario analyses were taken into account;
• the pay ratios within the Company and the business segment and any changes in these ratios
compared to at least five previous financial years;
• in the event that a Director receives variable remuneration, how this remuneration contributes to long-
term sustainable value creation, the measurable performance criteria determined in advance and on
which the variable remuneration depends, and the relationship between the remuneration and
performance; and
Director’s Report 2024 Cementir Holding NV | 55
• in the event that a current or former Director receives a severance payment, the reason for this
payment.
The main elements of the agreement of an Executive Director with the Company are to be published on the
Company’s website in a transparent overview after the agreement has been concluded, and in any event no
later than the date of the notice calling the General Meeting where the appointment of the Executive Director
will be proposed.
During 2024, the Remuneration and Nomination Committee met 3 times. The percentage of the attendance of
the members to the Remuneration and Nomination Committee meetings are shown in “Table B - Attendance”
in paragraph “Role of the Board of Directors”.
During these meetings, the Remuneration and Nomination Committee examined and discussed, among other
things, the remuneration policy and the report on remuneration drawn up in accordance with Art. 2:135a of the
Dutch Civil Code and Best Practice provision 3.1 and following of the Code, and the report concerning the
activity carried out by the Committee in 2023, drawn up in accordance with Best Practice provision 2.3.5 of the
Code and presented to the Company's Board of Directors; discussed the annual assessment carried out by
the members of the Committee pursuant to Best Practice provision 2.2.6 of the Code; discussed and verified
the independence requirements in the context of the review of the requirements for membership in the
Euronext Star Milan segment; verified the achievement of the gender diversity targets set for 2023 and
approved the proposed D&I targets for 2024, determined in accordance with current legislation, to be submitted
to the Board of Directors for approval; also examined and discussed the state of implementation of the LTI
plans with particular reference to the payment of the fees provided for on the basis of the 2021-2023 LTI Plan
as well as the allocation criteria and the setting of the objectives relating to the 2024-2026 LTI Plan; also
examined the assigned ESG objectives included in the STI Plan; finally, received the periodic update on the
Succession Plan for the Company's personnel.
The meetings were always attended by the Group General Counsel and the Group Chief Human Resources
Officer was also invited for all matters of relevance.
Further details of the activities of the Remuneration and Nomination Committee are included in the
Remuneration Report section included elsewhere in this report.
Director’s Report 2024 Cementir Holding NV | 56
Sustainability Committee and Sustainability Governance System
Everyone, from the top of the chain of command to employees in plants around the world, is involved in
implementing good sustainability practices. Various actors within the Group, mainly those included in the
diagram, contribute to a disciplined approach to sustainability management.
In the context of the Company's and the Group's ever-increasing commitment to sustainability and compliance
with demanding and challenging objectives, for the first time, on 28 July 2021 and, most recently, with a
resolution of 27 April 2023, following the renewal of the entire Board by the General Meeting of 20 April 2023,
the Board of Directors established the Sustainability Committee in its current composition. The Sustainability
Committee reinforces the Group's Sustainability Governance by integrating a Parent Company-level
committee into the existing Sustainability Committee established in 2019 within Aalborg Portland Holding A/S
(hereafter “APH Sustainability Committee”) shown in the chart above. The Group Sustainability Committee
plays the key role of assisting Cementir Holding's Board in formulating and implementing a sustainability
strategy for the creation of long-term value for Cementir Holding and the Group. It also supports the Company
Board in promoting a healthy, safe and secure environment for stakeholders, sustainable development and
social responsibility. The Group Sustainability Committee reviews, evaluates and makes recommendations to
the Cementir Holding Board and other Group bodies such as the Remuneration Committee on sustainability
objectives to incentivise management at Group, regional and BU level. It acts as delegated by the Board of
Cementir Holding on global and local sustainability matters, including the definition, monitoring, evaluation and
reporting of policies and practices, management standards, strategy, performance and governance. In
addition, it regularly interfaces with the APH Sustainability Committee, the Sustainability Working Group
Board of Directors - Cementir Holding N.V.
Sustainability Committee
-SC-
-SC-
Advising the Board on ESG
strategy, objectives and area of
interest.
Regular reports to the Board.
Sustainability Committee of
Aalborg Portland Holding
Aalborg Portland Holding
It supports the SC and coordinates
sustainability throughout the Group.
Reporting at group level.
KPI monitoring.
Group Management Team
-GMT-
-GMT-
Implements the Group Industrial
Plan
Sustainability Working Group
– SWG-
-SC-
Operating arm of the SC.
It monitors the implementation of
the recommendations provided by
the SC to the GMT.
Ensures that all activities
undertaken by the Region/BU are
consistent with the Group's
overall climate change strategy.
Regional Management
Implementation of the regional
sustainability strategy.
Implementation of the business plan.
Monitoring of KPIs at regional level
Business Units (BU)
Implementation of the BU
sustainability strategy.
Implementation of the business plan.
KPI monitoring and regular reporting
to Regional Management
Director’s Report 2024 Cementir Holding NV | 57
(hereinafter “SWG”) and the Group Management Team (hereinafter “GMT”) and submits regular reports to the
Board of Directors.
The duties and the responsibilities of the Sustainability Committee are set out in the related charter (published
on the Company website) adopted by the Board of Director on 28 July 2021 pursuant to and for the purposes
of the provisions of Art. 3.3 of the Board Rules ("Ad hoc committees").
The Sustainability Committee is currently made up of: 1. Francesco Caltagirone (Chairman), 2. Benedetta
Navarra, 3. Annalisa Pescatori, 4. Adriana Lamberto Floristan.
According to the Sustainability Committee Charter, the majority of its members is represented by non-executive
and independent directors.
The Sustainability Committee prepares the decision-making process of the Board of Directors in formulating
and implementing a strategy in line with a view on long-term value creation for Cementir Holding NV and its
subsidiaries, regarding the development and promotion of a healthy, safe and secure environment for the
Company's stakeholders, as well as sustainable development and social responsibility, and prepares any
related decision-making at Board level.
The main task of the Sustainability Committee is to develop the Group's sustainability strategy.
Specifically, it:
• assists and advises the Board on its supervision of the Group's policies, programmes and related risks
concerning sustainability matters (including, but not limited to) sustainability matters related to public
issues relevant to the Group and its stakeholders that may affect the Group's business, strategy,
operations, performance or reputation;
• receives regular reporting from any subsidiaries’ Sustainability Committees and the Sustainability
Working Group, respectively, to collect any required information and to provide the Board with the
required insights and advise;
• provides regular reporting to the Board;
• acts under any authority delegated by the Board relating to global and local sustainability matters,
including with respect to setting out, monitoring, evaluating and reporting on policies and practices,
management standards, strategy, performance and governance;
• reviews and approves goals and guidelines for environmental, social and governance compliance,
aligned with the Group's commitments and legal requirements;
• reviews, discusses and proposes the Group's sustainability initiatives and engagement;
• assists in the Board supervision of risks relating to sustainability matters overseen by the Sustainability
Committee;
• review, assesses and makes recommendations:
- to the Board as to the Group's non-financial reporting and annual Sustainability Report;
- to the Board and to other Group bodies such as subsidiaries’ Sustainability Committee and/or
Group Management Team regarding any sustainable development policy, including overall
strategy or specific guidelines, management standards, key performance indicators of the Group
relating to sustainability-related issues with the aim of ensuring that Group's policies and
procedures are in line with best practice;
- to the Board and to other Group bodies such as the Nomination and Remuneration Committee
on sustainability-related targets for management incentives at Group, region and BU level;
• recommends to the Board health and safety targets for the Company and the Group;
• supports the development of a health and safety culture in the Company and the Group also through
its management;
• annually provides reports of its actions to the Board and makes recommendations to the Board and to
other Group bodies as it considers appropriate;
• reviews and assesses the adequacy of the Sustainability Charter and recommends to the Board any
improvements to the Charter that the Sustainability Committee considers necessary or appropriate;
Director’s Report 2024 Cementir Holding NV | 58
• undertakes such other responsibilities or tasks within sustainability matters as the Board may delegate
or assign from time to time to the Sustainability Committee.
The Sustainability Committee, according to the respective Charter, meets at least twice a year; during 2024,
the Sustainability Committee met three times.
The percentage of the attendance of the members to the Sustainability Committee meetings are shown in
“Table B - Attendance” in paragraph “Role of the Board of Directors”.
During these meetings, the Sustainability Committee examined and discussed, among other things, the
Cementir Group's Sustainability Report-Non-Financial Statement 2023, and resolved to propose it to the Board
for approval with a favourable opinion; examined and approved the report on the activities carried out by the
Committee during 2023, submitted to the Company's Board of Directors; received updates on the ongoing
Carbon Capture and Storage projects, the validation of short- and long-term CO2 reduction targets by Science
Based Targets (SBTi), the Carbon Border Adjustment Mechanism (CBAM), water management targets, and
the Sustainability Monitoring-Reporting-Verification (MRV) system under evaluation in Türkiye; finally, it
monitored the preparation and implementation of the CSRD and approved the double materiality matrix. All
meetings were attended by the Group General Counsel, also acting as secretary of the committee, as well as
the Group Chief Internal Audit Officer and the Group Chief Operating Officer, with the additional participation
of the Group Chief Financial Officer for CSRD matters.
The APH Sustainability Committee is currently chaired by the Chairman of Aalborg Portland Holding A/S
(hereinafter “APH”) and defines the Group's guidelines and commitment to sustainability. The APH
Sustainability Committee meets at least quarterly, taking over all responsibilities or tasks related to
sustainability issues, with the main task of developing a Group Sustainability Strategy. The purpose of the APH
Sustainability Committee is to provide regular reports to the APH Board and to assist and advise the APH
Board in overseeing the Group's policies and programmes and related risks, in whatever way they relate to
sustainability issues. It acts under the authority delegated by the APH Board in relation to the definition,
monitoring, evaluation and reporting of policies and practices, management standards, strategy, performance
and governance, in relation to global and local sustainability issues, involving the Group, and interfaces
regularly with the Sustainability Department, the SWG and the GMT to gather all necessary information and
provide insights and advice as required.
In 2020, the Sustainability Working Group (SWG) was established. The SWG is now the operational arm of
the Group Sustainability Committee. On a monthly basis, the SWG monitors the implementation of the
recommendations provided by the Group Sustainability Committee to the GMT. It must also ensure that all
activities undertaken by each Region and business unit are consistent with the Group's overall climate change
strategy. Each region and business unit must report and agree with the SWG on any activities undertaken
locally with business associations, policy makers or local communities. The GMT, consisting of Group COO,
CFO, Sales Officer, Procurement Officer, Technical Coordinator Officer, Information Technology Officer and
Head of Regions, supports the Group CEO's decisions on relevant issues, sets operational guidelines and
plays a key role in ensuring that sustainability efforts are aligned with business and economic objectives. Group
management is primarily responsible for internal controls and risk management activities; it is supported by
the second-level control functions in defining appropriate risk management and control systems according to
their respective levels of responsibility (e.g. EHS, anti-corruption, antitrust and privacy). Responsibility for the
Group's strategy remains with the Parent Company Board, which sets the overall strategy, and approves the
performance objectives and targets for the Group as well as the Group's annual non-financial information. The
Parent Company Board defines, implements and maintains the guidelines of the risk management and control
system, so that the main risks associated with the strategy and activities of the entire Group, strategic,
operational, compliance and reporting risks, are correctly identified and adequately measured, managed and
monitored, and also determines the level of compatibility of these risks with the Company's management in a
manner consistent with its strategic objectives, establishing risk appetite and mitigation measures.
Director’s Report 2024 Cementir Holding NV | 59
Furthermore, the Parent Company's Board, with the support of the Audit Committee, reviews and evaluates
the adequacy of the Internal Control and Risk Management System at least once a year, including in the
assessment aspects concerning climate and other environmental and social considerations, taking into
account the characteristics of the Company and its risk profile, as well as its effectiveness. Attention should
be paid, in particular, to any weaknesses, instances of misconduct and irregularities, whistleblowers, lessons
learned and findings of the internal audit functions and external auditors. Since 2012, the Cementir Group has
approved a Corporate Social Responsibility Policy that sets out the values that the Group must apply in terms
of social and environmental responsibility; it also decided to voluntarily share its sustainable development
policy by publishing an Environmental Sustainability Report well before it was required by law. Industrial
decisions concerning major industrial investments, acquisitions and/or disposals, including climate and other
environmental and social considerations, are subject to approval by internal bodies (GMT and Group
Investment Committee
12
) and then to approval by the Board, in accordance with relevant Group policies.
Composition of sustainability bodies
Group Sustainability Committee
(within the Board of Cementir
Holding)
APH Sustainability Committee
(within Aalborg Portland Holding A/S)
Sustainability Working Group (SWG)
Group Chairman and CEO
Group Chairman and CEO
Group Chief Operating Officer
Independent Non-Executive
Director
Chairman of Aalborg Portland
Holding A/S
Group Chief Internal Audit Officer
Independent Non-Executive
Director
Chairman of Compagnie des
Ciments Belges SA
Group Chief Technical Coordination Officer
Independent Non-Executive
Director
Group Chief Operating Officer
Group Chief Sales & Marketing Officer
Group Investor Relations Officer
Group Sustainability and R&D Director
Group General Counsel
Head of Nordic & Baltic Region
Group Chief Internal Audit Officer
Chief Executive Officer Belgium
Group Chief Technical Coordination
Officer
Head of Nordic & Baltic Region
Chief Executive Officer Belgium
12
2 The Group Investment Committee is responsible for the authorisation and monitoring of the Group Investment Plan. The Committee
consists of the Group CEO, the Group COO, the CFO, the Information Technology Officer, the Head of Regions and the Investment
Director.
Director’s Report 2024 Cementir Holding NV | 60
REMUNERATION OF THE BOARD OF DIRECTORS
Details of the remuneration of the Board of Directors and its committees are set forth within the section
“Remuneration Report”.
GENERAL MEETING
The annual General Meeting shall be held each year no later than six months after the end of the financial
year of the Company. The purpose of the annual General Meeting is to discuss, inter alia, the annual report,
the adoption of the annual accounts, allocation of profits (including the proposal to distribute dividends), release
of members of the Board of Directors from liability for their management and supervision, and other proposals
brought up for discussion by the Board of Directors.
Convening of the General Meetings
General Meetings are convened by the Board.
Shareholders solely or jointly representing at least ten percent (10%) of the issued share capital may request
the Board in writing, setting out in detail the matters to be discussed, to convene a Cementir Holding General
Meeting. If the Board of Directors fails to call a meeting, then such shareholders may, at their request, be
authorised by the preliminary relief judge of the district court to convene a General Meeting of Cementir
Holding.
Cementir Holding General Meetings shall be held in Amsterdam or Haarlemmermeer (Schiphol Airport), the
Netherlands, and shall be called by the Board of Directors in such manner as is required to comply with the
law and the applicable stock exchange regulations, not later than on the forty-second day prior to the day of
the meeting. The notice convening a General Meeting is issued in accordance with Dutch law and by a public
announcement in electronic form which can be directly and continuously accessed until the General Meeting.
An item requested in writing by one or more shareholders solely or jointly representing at least three percent
(3%) of the issued share capital, must be included in the notice of the General Meeting or announced in the
same manner, if the Company has received the request, including the reasons, no later than on the day
prescribed by law. The Board has the right not to place proposals from persons mentioned above on the
agenda if the Board judges them to be evidently not in the interest of the Company.
The notice shall state the place, date and hour and the agenda of the meeting as well as the other data required
by law.
The agenda of the annual Cementir Holding General Meeting shall contain, inter alia, the following items:
• adoption of the annual accounts;
• the remuneration policy and the remuneration report;
• the policy of the Company on additions to reserves and on dividends, if any;
• granting of discharge to the Directors in respect of the performance of their duties in the relevant
financial year;
• the appointment of Directors;
• if applicable, the proposal to pay a dividend;
• if applicable, discussion of any substantial change in the corporate governance structure of the
Company; and
Director’s Report 2024 Cementir Holding NV | 61
• any matters decided upon by the person(s) convening the meeting and any matters placed on
the agenda with due observance of applicable Dutch law.
In addition, the approval of the General Meeting is required for resolutions of the Board regarding an important
change in the identity or character of the Company or its associated business enterprise, including in any
event:
• the transfer of the business, or almost all of the business, to a third party;
• concluding or cancelling a long-lasting cooperation of the Company or a subsidiary with another
legal person or company or as a fully liable general partner in a partnership, provided that the
cooperation or cancellation is of material significance to the Company; and
• the acquisition or disposal of a participating interest in the share capital of a company with a
value of at least one third (1/3) of the Company’s assets, according to the consolidated balance
sheet with explanatory notes, always according to the last adopted annual accounts of the
Company.
The Board of Directors shall provide the General Meeting all requested information, unless this would be
contrary to an overriding interest of the Company. If the Board of Directors invokes an overriding interest, it
must give reasons.
When convening a General Meeting, the Board of Directors shall determine that, for the purpose of Art. 8.4 of
the Articles of Association, persons with the right to vote or attend meetings shall be considered those persons
who have these rights at the twenty-eighth day prior to the day of the meeting (the “Record Date”) and are
registered as such in a register to be designated by the Board of Directors for such purpose, irrespective of
whether they will have these rights at the date of the meeting. In addition to the Record Date, the notice of the
meeting shall further state how shareholders and other parties with meeting rights may be registered and how
those rights can be exercised.
Each shareholder can be represented by a written proxy, to take part in, address and, to the extent he/she is
entitled, to vote at the General Meeting using electronic means of communication, provided that such person
can be identified via the same electronic means and is able to directly observe the proceedings and, to the
extent he/she is entitled, to vote at the General Meeting. In that case, the proxy must have been received by
the Company no later than on the date determined by the Board in the notice.
Order of discussion and decision-making
The annual General Meeting is chaired by:
• the Chairman; or
• if the Chairman is absent, by the Senior Non-Executive Director; or
• if the Senior Non-Executive Director is absent, by one of the other Non-Executive Directors
designated for that purpose by the Board; or
• if none of the Non-Executive Directors are present at the annual General Meeting, such person
appointed by the General Meeting.
The chairman of the General Meeting determines the order of discussion in accordance with the agenda and
may limit speaking time or take other measures to ensure that the General Meeting proceeds in an orderly
manner.
All issues relating to the proceedings at or concerning the General Meeting are decided by the chairman of the
General Meeting. Minutes of the business transacted at the General Meeting must be kept by the secretary of
the General Meeting, unless a notarial record of the General Meeting is prepared. Minutes of a General
Meeting are adopted and subsequently signed by the chairman and the secretary of the General Meeting. A
Director’s Report 2024 Cementir Holding NV | 62
written confirmation signed by the chairman of the General Meeting stating that the General Meeting has
adopted a resolution constitutes valid proof of that resolution towards third parties.
The General Meeting adopts resolutions by a simple majority of votes cast regardless of which part of the
issued share capital such votes represent, unless the law or the Articles of Association provide otherwise.
Each share confers the right to cast one vote at the General Meeting. No vote may be cast at the General
Meeting for a share held by the Company or one of its subsidiaries. Holders of a right of usufruct or a right of
pledge on shares belonging to the Company or its subsidiaries are not excluded from voting if the right of
usufruct or the right of pledge was created before the share concerned belonged to the Company or one of its
subsidiaries. The Company or a subsidiary may not cast a vote in respect of a share on which it holds a right
of usufruct or a right of pledge. The chairman of the General Meeting determines the method of voting. The
ruling by the chairman of the General Meeting on the outcome of a vote is decisive. The chairman of the
General Meeting shall decide in event of a tie. All disputes concerning voting for which neither the law nor the
Articles of Association provide a solution are decided by the chairman of the General Meeting.
The minutes of the General Meeting will be available on the Company website no later than three months after
the end of the meeting, after which the shareholders shall have the opportunity to react to the minutes in the
following three months. The minutes shall then be adopted in the manner as described in the Articles of
Association.
CULTURE, LONG-TERM SUSTAINABLE VALUE CREATION AND CODE OF ETHICS
The Cementir Group's values that contribute to a culture aimed at creating long-term sustainable value,
approved by the Board of Directors, are described in the paragraph "Purpose, Vision, Mission and Value" of
the Directors’ Report to which reference should be made. The culture of the Cementir Group is based on five
key values: 1) sustainability; 2) dynamism; 3) quality; 4) value of people; 5) diversity and inclusion. These
values translate into a series of virtuous behaviours that foster the professionalism and integrity, availability,
respect and cooperation of people both within the Group and in relation to the external context. The culture of
the Cementir Group is a vision that has been translated into a tangible model of skills and related behaviours
to effectively respond to the expectations of the Cementir Group's stakeholders and, in particular, to the needs
of its customers in compliance with a spirit of common identity: One Group Identity.
Cementir's long-term sustainability strategy has been developed through a bottom-up approach over recent
years. The functions concerned within the local structures, under the coordination of the Group's top
management, have translated individual concepts and notions into a unique and coherent way of thinking,
defining the Group's internal culture and identity, setting precise expectations, objectives and commitments,
along the lines provided for by the regulatory framework. Once consolidated, this core framework was then
formally reviewed, approved and validated by the Sustainability Committee set up within the group at the level
of the Board of the Danish subsidiary and, finally, transferred to the relevant entities for implementation through
structured programmes and specific actions with fixed deadlines. Its assumptions and implications, from basic
to more extensive, have been summarised in the Group 2024-26 Business Plan, approved by the Company’s
Board of Directors in February 2024, the 2023 Sustainability Report, approved by the Company Board of
Directors in March 2024 and the 2023 Consolidated Group Financial Statements, approved by the General
Meeting in April 2024.
Also in 2024, the strategy drawn up by the Chief Executive Officer and submitted to the Board in its entirety
for approval in the context of the update of the 2024-2026 Business Plan, was inspired by the aim of long-term
sustainable value creation by the Company and the other companies in the group, with particular reference to
the "Sustainability Roadmap" detailed in the specific paragraph. Sustainability is clearly one of the main
objectives that the Group has set itself and which, by its very nature, implies a process to be carried out in the
medium-long term in the interest and for the benefit of the Company, Group, shareholders and stakeholders.
Director’s Report 2024 Cementir Holding NV | 63
In addition, the same purpose underlies the remuneration policy, to which reference is made for further details.
The guidelines of the remuneration policy and the allocation of compensation to employees assign challenging
objectives with the main aim of creating sustainable value for shareholders - including minority shareholders -
in the medium to long term. Moreover, the specific situation of the Company, in which the Chief Executive
Officer is the representative of the majority, as well as a significant shareholder, naturally aligns the interests
pursued by the Executive Director with those of shareholders and stakeholders, which coincide in the pursuit
of the long-term strategy of value creation.
The Board of Directors is an active promoter of behaviour consistent with the Group's values, not only with the
approval of the 2025-2027 Business Plan, updated on 11 February 2025, which incorporates them, but also
having given the sustainability roadmap high priority in recent years.
In particular, Cementir Holding believes that long-term sustainable value is realised by focusing on the interests
of a large group of stakeholders, each with a distinct purpose, to support a long-term business. Please refer to
the specific paragraphs where the initiatives planned and implemented to pursue the Group's sustainability
objectives, to be achieved by 2030, are described in detail, covering the priority areas for Cementir. The
objectives are linked to Cementir's effort to adopt all necessary measures and the most innovative technology to
minimise the impact of the Group’s activity on the environment; create a healthy, safe and inclusive working
environment; respecting human rights and fostering a constructive and transparent relationship with local
communities and business partners. These objectives, set by individual plant and by year, are included in the
Business Plan and the short-term incentive system for employees. Cementir also pursues the creation of long-
term sustainable value through a Long-Term Incentive Plan in place for its top management.
The Cementir Group has decided to adopt a Code of Ethics to conform and conduct its business activities
according to the principles of integrity, honesty and confidentiality and in compliance with the laws and
regulations of the countries in which it operates. The Code of Ethics promotes the correct and efficient use of
resources in the perspective of corporate, social and environment responsibility, to reconcile the search for
competitiveness in the Cementir Group market with respect for rules on competition. The Group, in business
dealings, is inspired by and observes the principles of loyalty, fairness, transparency, efficiency and market
orientation, regardless of the importance of the deal.
The ethical principles contained therein are directly and expressly linked to the vision and values of the Group,
which operates primarily in the production and sale of cement and ready-mixed concrete with a global
presence. The ability to create synergies with other subsidiaries enables Group companies to improve their
economic performance by increasing added value for stakeholders. The ability to propose, model and
implement innovative and complex highly integrated technology solutions, starting from an understanding of
the territory and customer needs, is an integral part of the Group's strategy. Each company in the Group
pioneers technologies and standards to consistently reduce their impact; innovating and transforming every
new plant acquired or built - in any country - to the highest standards for the protection of workers, the
environment and the communities in which the plant is located. In terms of social responsibility, the Group
devotes significant resources to different aspects of the life of the community in which it operates: promoting
studies; working with the government; protecting the historical and monumental heritage; sponsoring culture
and entertainment; taking action to reduce environmental impact.
All actions, transactions and negotiations carried out and, more generally, people’s behaviour in their daily
tasks, are inspired by the highest accuracy, completeness and transparency of information, legitimacy, both in
form and substance, and clarity and accuracy of accounting records in accordance with regulations and internal
procedures. To achieve this goal, the Cementir Group requires its employees to comply with the highest
standards of business conduct in the performance of their duties, as set in the Code of Ethics and the
procedures to which it refers. For these reasons, the Group:
- guarantees that employees who report any violations of the Code of Ethics will not be subject to any form
of retaliation;
Director’s Report 2024 Cementir Holding NV | 64
- takes fair sanctions commensurate to the type of violation of the Code of Ethics, and guarantees its
application to all the categories of employees, keeping into account laws, contracts and regulations
applicable in the Country in which it operates;
- periodically checks compliance with the Code of Ethics.
The Code of Ethics, updated on 1 June 2020, with the principles and values defined in the Group Policy on
respect for Human Rights, is available on the Company's website pursuant to Best Practice provision 2.5.2
of the Code.
The Cementir Group considers the principles of integrity and competition to be fundamental, especially in view
of the specific risks that characterise the cement and ready-mixed concrete production sector. The Group's
Code of Ethics is the reference document that establishes the conduct that all individuals within the Group and
those who work with it must follow. In addition to the Code of Ethics, specific programmes and procedures
have been adopted within the individual regions to guarantee the mitigation of these risks and the correct
operation of the companies. Periodic training courses are held, which the Group organises to keep the level
of focus on this issue constantly high.
ETHICS COMMITTEE
To monitor the constant compliance with the Code of Ethics by the employees of the Company and its
subsidiaries and the application of the regulations following the transfer of the registered office, on 5 October
2019, the Board of Directors resolved, among other things, to establish an Ethics Committee, formed by the
Group General Counsel and the Group Chief Internal Audit Officer, which also performs the functions of the
Supervisory Board pursuant to Legislative Decree 231/2001.
The Ethics Committee:
- Monitors the dissemination of the Code of Ethics and proposes possible training and awareness-raising
measures.
- Submits to the Board of Directors the status of the implementation process of the Code of Ethics, illustrating
the programmes and initiatives undertaken to achieve the institutional purposes and the adjustments
necessary to ensure its effectiveness and its possible updating, also with respect to changes in the law.
- Provides support in the interpretation of the Code of Ethics.
- Checks for violations.
- Follows up on any reports of non-compliant behaviour.
- Also receives regular reporting on whistleblowing.
PROCEDURE FOR REPORTING VIOLATIONS
On 13 November 2019, the Board of Directors approved the Whistleblowing Management Procedure in
accordance with Dutch law and made subsequent updates. The last update took place during 2023 with the
creation of an additional dedicated reporting channel, technically managed by a third party with a special IT
platform, to further guarantee the confidentiality and protection of the whistleblower. The procedure is
available on the Company website pursuant to Best Practice provision 2.6.1 of the Code.
The Company and the Group recognise its importance as an effective tool for preventing unlawful activities
and enabling people to exercise their freedom of expression as a fundamental human right. Consequently,
employees, collaborators, directors and third parties are able to report - without fear of retaliation or intimidation
- any information concerning potential violations, non-compliant or unlawful conduct and practices in relation
Director’s Report 2024 Cementir Holding NV | 65
to applicable legislation, including European Union legislation, the Group's Code of Ethics, internal procedures
and the organisational model of the respective companies pursuant to Legislative Decree 231/2001. With the
latest update, an additional, dedicated whistleblower channel, managed by a third party via a dedicated IT
platform, was created to further ensure the confidentiality and protection of whistleblowers. Further details are
available on the company website under Ethics and Compliance.
The receipt, analysis and conduct of audits on reports is carried out by Cementir Holding's Internal Audit team.
The results and any potential actions are reviewed by the Ethics Committee; violations are communicated to
relevant personnel and functions. Cementir's Audit Committee is regularly updated on the progress of reports.
The Chief Executive Officer and the Chairman of the Audit Committee are promptly informed of critical
concerns, including those relating to potential and actual negative impacts of the organisation on stakeholders,
raised through the whistleblowing mechanisms described above. The Board of Directors can be alerted to any
critical concerns at meetings where the Sustainability Report is discussed and approved.
POLICY ON BILATERAL CONTACTS WITH SHAREHOLDERS
On 13 November 2019, the Board of Director adopted, in compliance with the Dutch Law, the Policy on bilateral
contacts with shareholders. This policy was updated and revised during the previous year, also in light of the
new provisions of the Code in force as of 1 January 2023 and, in particular, provision 4.2.2. This provision has
been supplemented by providing that the shareholders and the company are available for dialogue. In
particular, the Company should facilitate dialogue unless it is in the interest of the Company and the Group to
reject it and shareholders should make themselves available to engage in constructive dialogue and, outside
the context of a General Meeting, disclose their full shareholding position at the request of the Company.
These recommendations have therefore been incorporated into the updated version of the policy and, on this
occasion, a general review has been carried out. Bilateral contacts with shareholders and potential investors
are managed by the Investor Relations department which, by delegation and in agreement with the Chairman
and CEO of the Group, discretionarily identifies the shareholders or potential investors with whom to interact,
based on the Company's interest.
In order to ensure information symmetry, the Investor Relations function is always present at meetings, even
where it is proactively organised by other functions, and the Group Chairman and CEO and/or Group CFO
may participate.
The Chairman and CEO of the Cementir Group is the point of contact between investors and the Board.
The policy on bilateral contacts with shareholders is available on the Company's website pursuant to Best
Practice provision 4.2.2 of the Code.
Relations with shareholders and financial analysts are handled with a high degree of accuracy and in
compliance with the policy, the Code and applicable regulations. By way of example, after the Board of
Directors' meetings to approve the periodic financial results, the Company organises conference calls to
present these results to the financial community and informs the stakeholders by issuing a press release. It
has also included a special section on the Company website dedicated to investor relations where
presentations of financial results and press releases are published in accordance with the Best Practice
provisions of the Code.
In addition, the Annual General Meeting is the natural event where the Company's shareholders can meet with
the Board of Directors and ask questions, participating with their vote in the Company's decisions.
Director’s Report 2024 Cementir Holding NV | 66
GROUP STAKEHOLDER ENGAGEMENT POLICY
The Group Stakeholder Engagement Policy has been drawn up in accordance with the provisions of the Code
in force since January 2023 and the practice that is being defined in this first application period and was
approved by the Board of Directors on 6 November 2023. The policy has been published on the Company's
website pursuant to Best Practice provision 1.1.5 of the Code.
Among the provisions of the Code, the best practice provision 1.1.5 has been introduced, which recommends
the definition of a policy for facilitating dialogue with stakeholders that includes at least the sustainability
aspects of the strategy.
The Cementir Group's Stakeholder Engagement Policy recognises that dialogue with stakeholders plays a
fundamental role in the success of the Company and the Group and sets as the Group's objective the
establishment of a constructive dialogue with stakeholders in order to establish a lasting and effective
relationship with them, not limited to sustainability aspects alone.
All employees of the Group are required to acknowledge and comply with this Policy.
The categories of stakeholders with whom the Group interacts and has a stable relationship (at holding or local
level) and the tool used to strengthen their involvement have been identified; the updated list is included in the
official sustainability report (the Sustainability Report). The impact on stakeholders is considered material when
it concerns the actual or potential effects of the Group on people or the environment in the short, medium
and/or long term time horizons.
The Chairman and CEO of the Group assesses on a case-by-case basis which stakeholders are relevant to
the Company, with whom to enter into dialogue and in what form, and has the power to make changes to the
list of stakeholders.
Examples of interaction with stakeholders, such as customers, suppliers, staff, the local community, public
institutions and trade associations, are described in paragraph Social Information. The various stakeholders
are involved in periodically updating the materiality matrix, which considers as relevant those issues that may
have a direct or indirect impact on the Company's ability to establish, maintain or adversely affect the Group's
values.
GROUP POLICY ON LOBBYING ACTIVITY AND POLITICAL CONTRIBUTIONS
On 29 July 2024, the Company's Board of Directors approved the Group Policy on Lobbying Activities and
Political Contributions.
The aim of the Policy is to provide the principles and guidelines that the Cementir Group must observe when
dealing with public authorities, with any type of direct or indirect communication, in order to i) pursue the
interests of the Cementir Group with the aim of influencing the process of political deliberation and decision-
making; (ii) inform public debate and/or assist public authorities in their decision-making processes on issues
of relevance to the Group; (iii) and determine the terms and conditions of any financial contributions to political
parties, causes or activities (collectively, “Advocacy Activities”). All in order to ensure that Advocacy Activities
take place in a clear, transparent and lawful manner, in light of the disclosure requirements of the CSRD and
ESRS standards and in compliance with local laws, internal procedures and Group culture.
The Company remains politically neutral and abstains from donations to political entities, except those
expressly approved if and to the extent permitted by local laws.
The Policy applies to all Cementir Group companies and to all Group employees whether they operate directly
or indirectly through third parties, respecting fair information, the rights and freedom of expression of
stakeholders and the rules of fair competition and management of conflicts of interest. Conduct that may
constitute bribery and corruption acts in any form is expressly prohibited.
Director’s Report 2024 Cementir Holding NV | 67
All Advocacy Activities, with the sole exception of memberships in Chambers of Commerce or industry
organisations, are subject to prior approval and must be informed by the principles of transparency and integrity
in compliance with laws, policies and procedures of the Group.
INSIDE INFORMATION
Pursuant to the Market Abuse Regulation (EU No 596/2014), Cementir Holding shall communicate to the public
without delay any information that: (i) has a precise character; (ii) has not been made public; (iii) refers directly
or indirectly to the Company or the Company's ordinary shares; and (iv) if made public, could have a significant
effect on the prices of the Company’s common stock or the price of related derivative financial instruments
(hereinafter “Inside Information”). In this regard:
“information shall be deemed to be of a precise nature” if: (a) it indicates a set of circumstances which exists or
which may reasonably be expected to come into existence, or an event which has occurred, or which may
reasonably be expected to occur and (b) it is specific enough to enable a conclusion to be drawn as to the
possible effect of that set of circumstances or event on the prices of the financial instruments or the related
derivative financial instrument. In this respect in the case of a protracted process that is intended to bring about,
or that results in particular circumstances or a particular event those future circumstances or that future event,
and also the intermediate steps of that process which are connected with bringing about or resulting in those
future circumstances or that future event, may be deemed to be precise information;
“information which, if it were made public, would be likely to have a significant effect on the prices of financial
instruments and derivative financial instruments” mean information a reasonable investor would be likely to
use as part of the basis of his or her investment decisions.
An intermediate step in a protracted process shall be deemed to be Inside Information if, by itself, it satisfies
the criteria of Inside Information as referred to above.
The above disclosure requirement shall be complied with through the publication of a press release by the
Company, in accordance with the modalities set forth under the MAR and Dutch and Italian law, disclosing to
the public the relevant Inside Information.
Cementir Holding may, under its own responsibility, delay public disclosure of Inside Information provided that all of
the following conditions are met: (a) immediate disclosure could prejudice the legitimate interests of Cementir
Holding; (b) the delay in communication would probably not have the effect of misleading the public; (c) Cementir
Holding is able to guarantee the confidentiality of such information.
In the case of a prolonged process that occurs in several stages and is intended to cause, or results in, a
particular circumstance or event, Cementir Holding may, under its own responsibility, delay the public
disclosure of Inside Information related to this process, under the conditions set out in points a), b) and c)
above.
Cementir Holding, as well as persons acting on its behalf or on its account, shall draw up and keep regularly
updated, a list of all persons who have access to Inside Information and who are working for them under a
contract of employment, or otherwise performing tasks through which they have access to Inside Information,
such as advisers, accountants or credit rating agencies (the “Insider List”).
Cementir Holding or any person acting on its behalf or on its account, shall take all reasonable steps to ensure
that any person on the Insider List acknowledges in writing the legal and regulatory duties entailed and is
aware of the sanctions applicable to insider dealing and unlawful disclosure of Inside Information.
Director’s Report 2024 Cementir Holding NV | 68
CODE OF CONDUCT FOR INTERNAL DEALING
On 13 November 2019, the Board of Directors, in accordance with Dutch law, updated the Code of Conduct for
Internal Dealing ("Code of Conduct"), which the Company first adopted on 1 April 2006, and during the financial
year the Code of Conduct was further updated. The Code of Conduct guarantees the utmost transparency and
consistency of information provided to the market, with regard to reporting obligations and limitations on the
purchase, sale, subscription and exchange of Cementir Holding shares carried out by Managers (Company
directors and senior executives with regular access to Inside Information relating, directly or indirectly, to the
Company and with the power to make managerial decisions affecting the Company's future developments and
business prospects) and Persons closely associated with them.
In accordance with European regulations, the Code of Conduct provides for a black-out period for trading in the
Company's shares during the 30 calendar days preceding the Company's disclosure to the market of the data
contained in the annual financial statements, half-yearly reports, interim management reports (or other
comparable financial statements or reports for the period) that the Company is required to publish or has decided
to publish.
DISCLOSURES PURSUANT TO DECREE IMPLEMENTING ART. 10 OF EU DIRECTIVE ON TAKEOVERS
In accordance with the Dutch Besluit artikel 10 overnamerichtlijn (the “Decree”), the Company discloses the
following:
(a) Information on the structure of the capital of the Company and the composition of the issued share
capital formed entirely by common shares, are detailed in the table here below.
Share capital structure
No. shares
Percentage of
share capital
Listed
Common shares
159,120,000
100%
Borsa Italiana - Euronext STAR Milan
Segment
The authorised share capital of the Company amounts to five hundred million euro (EUR 500,000,000)
and is divided into five hundred million (500,000,000) shares, each with a nominal value of one euro
(EUR 1).
The issued share capital of the Company at 31 December 2024, subscribed and paid up, amounts to
EUR 159,120,000 subdivided into 159,120,000 nominal shares of a nominal value of EUR 1.00 each.
Information on the rights attaching to the ordinary shares is in the Company’s Articles of Association,
available on the Company’s website. In particular, the rights attached to Cementir Holding's ordinary
shares include (i) option rights on the issue of ordinary shares; (ii) the right, in person or by proxy
authorised in writing, to attend and address the General Meeting; (iii) voting rights and the right to
dividend distributions to the extent that the Company's equity exceeds the sum of the paid-up and called-
up portion of the capital and reserves that must be maintained by law or the Articles of Association.
(b) No restrictions apply to transfer of common shares.
(c) Information on direct and indirect shareholdings in the Company’s capital in respect of which notification
requirements apply, pursuant to Sections 5:34, 5:35 and 5:43 of the Dutch Financial Supervision Act (Wet
op het financieel Toezicht, hereinafter “WFT”) is in the Notes to the Financial Statements section,
including the shareholders who hold 3% or more of the issued common shares on the basis of information
published on the AFM (Stichting Autoriteit Financiële Markten) website and other information at the
disposal of the Company.
Director’s Report 2024 Cementir Holding NV | 69
(d) No special control rights or other rights accrue to shares in the capital of the Company.
(e) No employee shareholding scheme has been established as under Art. 1 sub 1(e) of the Decree, so
there is no specific procedure for the exercise of voting rights by employees.
(f) No restrictions apply to voting rights attaching to common shares in the capital of the Company, nor
deadlines for exercising voting rights. The Company is not aware of any depository receipts issued for
shares in its capital.
(g) The Company is not aware of any agreements with any shareholder which may result in restrictions
on the transfer of shares or limitation of voting rights.
(h) The rules governing the appointment and replacement of members of the Board of Directors are stated
in Art. 7.2 of the Articles of Association and described in letter a) “Composition and nomination of the
Board of Directors” above. According to Art. 11 of the Articles of Association a resolution to amend the
Articles of Association may only be adopted by the General Meeting at the proposal of the Board. If a
proposal to amend the Articles of Association is to be submitted to the General Meeting, it shall be so
stated in the notice convening the meeting, and a copy of the proposal containing the text of the proposed
amendment shall be held available at the Company’s office for inspection by every shareholder and other
persons with meeting rights, from the date of the notice convening the General Meeting until the
conclusion of such meeting.
(i) The powers of Board members are detailed in the Articles of Association and in the Board Rules, both
available on the Company’s website. With particular reference to the power to issue shares, shares
are issued pursuant to a Board resolution if the Board has been authorised to do so by a resolution of
the General Meeting for a specific period with due observance of applicable statutory provisions. If and
insofar as the Board is not authorised as previously referred to, the General Meeting may resolve to
issue shares at the proposal of the Board.
The Board may be authorised by the General Meeting to repurchase shares against payment.
Authorisations to buy back treasury shares in the 2024 financial year have not been approved and are
not in progress.
(j) The Company is not a party to any significant agreements which will take effect, will be altered or will
be terminated upon a change of control of the Company following a public offer within the meaning of
Section 5:70 of the WFT, except for a finance agreement signed in 2021 with a pool of banks. Pursuant
to this agreement the Company is required to make early repayments if there is a change of the
controlling shareholder. The Company’s subsidiaries have in place loan contracts that include standard
clauses of change of control that are consistent with the commercial practice.
(k) The Company did not enter into any agreement with a member of the Board or an employee providing
for a compensation if they resign or are made redundant without a valid reason or if they resign, are
made redundant or if their employment ceases as a result of a public offer within the meaning of Art.
5:70 of the WFT.
COMPLIANCE WITH THE DUTCH CORPORATE GOVERNANCE CODE
Companies with statutory seat in the Netherlands whose shares are listed on a regulated stock exchange or
comparable system are required pursuant to the Code to disclose in their annual report to what extent they apply
the Principles and Provisions of Best Practice of the Code and, if they do not apply certain Best Practice
provisions, to explain the reasons why they have chosen to deviate.
The Company has a governance structure made up of a one-tier Board (the Board of Directors). Pursuant to
chapter 5 of the Code and the related Explanatory Notes, the principles that pertain to the members of the
Director’s Report 2024 Cementir Holding NV | 70
supervisory board are applicable to Non-Executive Directors and the principles that pertain to the members of
the management board are applicable to the Executive Director. In addition, the duties and responsibilities set
out in section 1 up to including 4 of the Code to the extent they refer to the chairman of a supervisory board, fall
in a company with a one-tier board structure, such as Cementir Holding, within the remit of the Non-Executive
Directors. As for Cementir Holding, a Senior Non-Executive Director is appointed from among the Non-Executive
Directors, who serves as chairman of meetings pursuant to Dutch law (Art. 2:129a of the Dutch Civil Code) and
in accordance with Best Practice provision 2.1.9. of the Code, separately from the position of the Chairman and
Chief Executive Officer, being the (sole) Executive Director of the Company.
As per the date of approval of the annual financial statements for 2024, Cementir Holding complies with the
principles and Best Practice provisions of the Code, subject to the following observations and explanations in
respect of each of the Best Practice provisions set out hereunder.
Best Practice Provision 2.1.7.
There are three (3) independent Non-Executive Directors out of a total of seven (7) Non-Executive Directors in
office until the approval of the financial statements for the 2024 financial year. Accordingly, they are almost half
of the total number of Non-Executive Directors. The other four (4) Non-Executive Directors are related to a
shareholder holding ten percent or more of the issued share capital of the Company. In the view of Cementir
Holding such board composition is appropriate, as it is consistent with the historical composition of the Board and
as it reflects the ownership structure of Cementir Holding, with a shareholder owning a substantial majority of the
issued share capital. In this regard, it should furthermore be pointed out that in Cementir Holding's country of
origin, where it has a secondary and operational office (Italy), it is customary for a shareholder with a majority
participation to also have a majority representation on the board.
Best Practice Provision 2.2.2.
Most of the Non-Executive Directors, who were re-elected for a further three-year term by the Company's
Annual General Meeting on 20 April 2023, had already been in office for more than eight years at the time.
Cementir Holding believes that renewal beyond the eight-year term set out in this Best Practice provision is
appropriate, taking into consideration that, in light of the ownership structure characterising the Company,
certain board members are of crucial importance and indispensable for the continuity of the Company and its
business. In addition, it may be noted that the provisions of the Code only have become applicable to Cementir
Holding as of 5 October 2019.
Best Practice Provision 3.4.2.
The main elements of the contract with the Executive Director were published on the Company's website in
the context of the remuneration report.
Best Practice Provision 4.1.8 and 4.1.9.
The Non-Executive Directors justified their absence from the Annual General Meeting of 22 April 2024. The
Executive Director participated via remote videoconference. The independent auditor also participated via
remote videoconference in the General Meeting of 22 April 2024.
Director’s Report 2024 Cementir Holding NV | 71
CONTROL AND RESPONSIBILITY STATEMENT
In accordance with best practice 1.4.3 of the Code, it is confirmed that:
• This report provides sufficient insights into any failings in the effectiveness of the internal risk management
and control systems as set out in the Internal Control and Risk Management System section of this report,
where no major failings were identified in the 2024 financial year;
• The internal risk management and control systems provide reasonable assurance that the 2024 financial
reporting does not contain any material inaccuracies. The Internal Control and Risk Management System
section of this annual report provides further details;
• In light of the current situation, financial reporting is prepared on a going concern basis, as management has
assessed the existence of the requirement. Compliance with the Code is evident in factors such as the Group’s
strong cash position, the available credit facilities, the Group’s risk management, and the Group’s ability to
meet its obligations without substantial restructuring or selling of its assets. For more detailed information,
please refer to the Group Performance section of this annual report together with The Internal Control and
Risk Management System as set out in the notes to the Consolidated Financial Statements section of this
annual report;
• This report states those material risks and uncertainties that are relevant to the expectation of the Company’s
continuity for the period of 12 months after the preparation of the report. The Internal Control and Risk
Management System section of this annual report together with the Group Performance section provide a clear
substantiation of the abovementioned statement.
CORPORATE GOVERNANCE STATEMENT
The Corporate Governance Statement, provided for under the Dutch Besluit inhoud bestuursverslag, can be
found on the company’s website www.cementirholding.com.
Director’s Report 2024 Cementir Holding NV | 72
REPORT OF THE NON-EXECUTIVE DIRECTORS
INTRODUCTION
This report has been drafted in compliance with the Best Practice provision 5.1.5 of the Code: “The Non-
Executive Directors render account of the supervision exercised in the past financial year. They should, as a
minimum, report on the items referred to in best practice provisions 1.1.3, 2.1.2, 2.1.10, 2.2.8, 2.3.5 and 2.4.4
and, if applicable, the items referred to in best practice provisions 1.3.6 and 2.2.2”.
SUPERVISION BY THE NON-EXECUTIVE DIRECTORS
In compliance with the Articles of Association, the Board of Directors, as a result of its appointment by the General
Meeting of 20 April 2023, until the approval of the financial statements as at 31 December 2025, is made up of
an Executive Director (Francesco Caltagirone, CEO) and seven Non-Executive Directors (Alessandro
Caltagirone, Azzurra Caltagirone, Saverio Caltagirone, Fabio Corsico, Adriana Lamberto Floristan, Benedetta
Navarra and Annalisa Pescatori).
The Non-Executive Directors of the Company are responsible for the supervision of the Executive Director’s
conduct and performance of duties, the Company’s general affairs and its business, developing a general
strategy, including the formulation of the strategy for realising long-term sustainable value creation and taking
into account risks connected to the Cementir Group’s business activities.
Non-Executive Directors also supervise at least the following key elements:
• ensuring compliance with all relevant laws and regulations, the Articles of Association and good
corporate governance practice;
• integrity and quality of financial and sustainability reporting, ensuring the adequacy of financial
controls and risk management systems; and
• reviewing the performance of the Board as a whole, each Director individually, and the committees of
the Board.
Cementir Holding has a one-tier board structure, consisting of Executive and Non-Executive Directors,
consequently the Non-Executive Directors exercise their duties during the meetings of the Board of Directors
and, limited to its members, of the Board Committees. The Board of Cementir Holding is also composed of 7
Non-Executive Directors out of the 8 directors from which it is formed. The Audit Committee and the
Remuneration and Nomination Committee are composed exclusively of independent Non-Executive Directors
while the Sustainability Committee is currently composed of four directors, three of whom are non-executive and
independent.
With particular regard to participation in the formulation of the long-term sustainable value strategy and the
supervision of the Non-Executive Directors on its implementation, the Non-Executive Directors defined, within
the work of the Board of Directors, the concrete strategy and vision of the Company and the Group, evaluating
and considering the possible challenges and risks associated with its implementation. For more details, please
refer to the other sections of the Directors’ Report.
With regard to the supervision exercised in relation to the policies put in place by the Executive Director and the
general conduct of the Company's and the Group's affairs, the Non-Executive Directors, at the meeting of the
Committees, for those who are members of them, as well as collectively within the Board, assessed the internal
control and risk management system as adequate and effective and also examined the financial and
sustainability reporting process.
During 2024, supervision of the Non-Executive Directors as part of the activities of the committees was carried
out, inter alia, while performing the following activities:
Director’s Report 2024 Cementir Holding NV | 73
• the examination, discussion and approval of risk assessment during the Audit Committee. Every year,
Cementir Holding updates the risk assessment model for Group companies, in accordance with the
Enterprise Risk Management - Integrated Framework. The Integrated Risk Management process is based
on a top-down and risk-based approach, starting from the definition of Cementir Holding's Business Plan
with reference to strategic, financial, operational, compliance and sustainability risks. With this process,
the main risks are identified, assessed, managed and monitored taking into account the operations, risk
profiles and risk management system of each business unit, to achieve an integrated risk management
process. The main risks were discussed by the Non-Executive Directors constituting the Audit Committee
at the meeting of 4 November 2024, who assessed the identified risks as being consistent with the Group's
activities and strategy, and the measures and actions (short- and long-term) defined by management to
contain the risks within the desired level. In this way, the Non-Executive Directors supervised the
organisational process of identifying, assessing and managing risks and opportunities, actively
participating in the process and also approving its contents at the Board of Directors on 6 November 2024;
• the approval first by the Sustainability Committee on 4 March 2024 and, subsequently, by the Board of
Directors on 11 March 2024 of the Sustainability Report – Non-Financial Statement 2023 where long-term
objectives are set in order to create long-term sustainable value.
• the examination by the Nomination and Remuneration Committee on 8 March 2024 of the Remuneration
Report and the Remuneration Policy and subsequent proposal to the Board of Directors which discussed
and approved these documents and resolved to submit them for approval at the General Meeting;
• the assessment of adequacy and effectiveness in relation to the internal control and risk management
system and the examination of the financial and sustainability reporting process, which took place during
the Audit Committee and Sustainability Committee on 8 March 2024 and the Sustainability Committee of
4 March 2024 and the subsequent Board of Directors meeting of 11 March 2024.
Non-Executive-Directors held the yearly meeting recommended by Best Practice provisions of the Code, on 11
March 2024.
More details regarding the role, the composition and the activities carried out by the Non-Executive Directors,
including the “Personal Information” pursuant to Best Practice provision 2.1.2 of the Code, are set forth in the
paragraph "Board of Directors" of the "Corporate Governance" section above.
INDEPENDENCE OF NON-EXECUTIVE DIRECTORS
Pursuant to Best Practice provision 2.1.10 of the Code, the Report of the Non-Executive Directors, should
state if the independence requirements referred to in Best Practice provisions 2.1.7 to 2.1.9 inclusive have
been fulfilled and, if applicable, should also state which Non-Executive Director(s), if any, is not considered to
be independent.
The independent Non-Executive Directors in office until the approval of the financial statements for the year
2025 are Adriana Lamberto Floristan, Annalisa Pescatori and Benedetta Navarra while the non-independent
Non-Executive Directors are Alessandro Caltagirone, Azzurra Caltagirone, Saverio Caltagirone and Fabio
Corsico. Therefore, there are three (3) independent Non-Executive Directors out of a total of seven (7) Non-
Executive Directors and thus they are almost half of the total number of Non-Executive Directors; the other
four (4) Non-Executive Directors are related to a shareholder holding ten percent or more of the issued share
capital of the Company. In the view of Cementir Holding such board composition is appropriate, as it is
consistent with the historical composition of the Board and as it reflects the ownership structure of Cementir
Holding, with a shareholder owning a substantial majority of the issued share capital. In this regard, it should
furthermore be pointed out that in Cementir Holding's country of origin, where it still has a secondary and
operational office (Italy), it is customary for a shareholder with a majority participation to also have a majority
representation on the board.
Director’s Report 2024 Cementir Holding NV | 74
Pursuant to provision 2.1.9 of the Code, the Board of Directors, on 27 April 2023, appointed Adriana Lamberto
Floristan as Senior Non-Executive Director among the Non-Executive Directors, with the role of chairing the
Board as prescribed by Dutch law (Art. 2:129a of the Dutch Civil Code) and in accordance with the Company's
Articles of Association and Article 2.3.7 of the Board Rules, as distinct from the office of Chairman and Chief
Executive Officer, which is held by the sole Executive Director.
Finally, with reference to provision 2.2.2 of the Code, most of the Non-Executive Directors who were re-
elected for a further period of three years by the Company's General Meeting of 20 April 2023, had already
been in office for over eight years at the time. Cementir Holding believes that renewal beyond the eight-year
term set out in this Best Practice provision is appropriate, taking into consideration that, in light of th e
ownership structure characterising the Company, certain board members are of crucial importance and
indispensable for the continuity of the Company and its business. In addition, it may be noted that the
provisions of the Code only have become applicable to Cementir Holding as of 5 October 2019.
With said clarifications, the independence requirements set forth in Best Practice provision 2.1.10 of the Code
are otherwise met. On the basis of the declarations received from the independent directors and the discussion
carried out during the annual verification of the requirements for the Company's permanence on the Euronext
STAR Milan segment, the Remuneration and Nomination Committee and, subsequently, the Board of
Directors, verified the existence of the independence requirements of the same directors qualified as such.
ASSESSMENT BY THE NON-EXECUTIVE DIRECTORS
Pursuant to provisions 2.2.6 and 2.2.8 of the Code, the Non-Executive Directors of Cementir Holding have
conducted, for the financial year 2024, an assessment of the size, composition and functioning of the Board,
the Committees and its individual members, also focusing on substantial aspects, conduct, culture, interaction
and mutual collaboration, significant concrete events, indicating: (i) the method by which the assessment of
the Non-Executive Directors was conducted, both as a whole and individually, and the assessment of the
committees; (ii) the method by which the Executive Director’s assessment was conducted; (ii) concluding
remarks and suggestions for possible improvements in the functioning of the Board.
The assessment is carried out yearly by the Directors filling in questionnaires regarding the size, composition
and functioning of the Board, its members and committees and, upon their request, through a personal
interview. Cementir Holding’s Corporate Affairs Department deals with the collection and management of
feedback confidentially. For the financial year 2024, the questionnaire was supplemented in order to collect
the information required by the Corporate Sustainability Reporting Directive (“CSRD”), in particular with a
higher level of disclosure regarding the requirements and competences of directors and the positions held by
them. The assessment takes into account the replies of the Non-Executive Directors who expressed their
views completing the aforementioned questionnaires.
There was general satisfaction with the functioning of the Board of Directors and Committees during 2024,
confirming and even improving on the positive results of the previous year.
The Non-Executive Directors unanimously confirmed in their self-assessment the proper implementation of
their supervisory duties, overseeing the activities of the Executive Director and providing the latter with
assistance and direction, in particular with regard to: (a) development of a general long-term value creation
strategy, taking into account the risks associated with the Cementir Group's business activities; (b) compliance
with applicable rules and regulations, the Articles of Association and good corporate governance practices; (c)
integrity of financial information and adequacy of financial controls and risk management system; d)
performance of the Board as a whole, of each Director and of the Committees. A similar unanimous positive
assessment was given regarding the continuous and effective interaction among Non-Executive Directors,
Executive Directors and Company bodies.
Director’s Report 2024 Cementir Holding NV | 75
The Non-Executive Directors confirmed the Board’s commitment to achieving greater diversity and inclusion
in its composition and in the composition of the Company's senior management, including through the
determination of challenging targets, in order to create an increasingly differentiated and inclusive work
environment. They also all agreed on the role played by the Board of Directors, in accordance with the division
of tasks between executive and non-executive directors, in pursuing the objective of creating long-term
sustainable value. The Board's role in monitoring the internal control and risk management system has been
widely recognised, including the supervision of Non-Executive Directors with the help of the Group's
whistleblowing system and the verification and control activities carried out by the internal audit function;
equally ample recognition was given to the contribution of substantial independence made by the independent
directors. All of the Directors positively evaluated the knowledge of the corporate culture.
It was noted with particular appreciation that, in acceptance of the suggestions that emerged during the self-
assessment process for the 2023 financial year, an intervention by the Executive Director on events with a
strategic impact and on the main potential risks, including geopolitical risks, is envisaged at the opening of
each meeting of the Board of Directors. In addition, four induction sessions were organised for directors during
the year, including three training sessions with the participation of the Company's management on topics that
had been indicated by the independent directors and a visit to the plant in Aalborg, Denmark, in order to
increase knowledge of the business and in-depth study of the Group's specialised areas, while also increasing
the level of knowledge among the Board members. More details on the activities of the Ethics Committee were
provided in both Board and Committee meetings, as also reflected in the answers to the self-assessment
questionnaire. With regard to any additional expertise, the Company's decision to refer to employees within
the Group for technical expertise, for example in cybersecurity and digitalisation, while providing in-house
training to directors, received specific consensus. Finally, the information flow consisting in the documentation
and with the timing required by the independent directors between meetings continued and received positive
evaluation.
Among the Board's areas of excellence were: the stability of the office of Chairman and Chief Executive Officer,
both in terms of the professionalism with which he carries out his duties and role and the passion and
dedication he displays; the strong commitment of the members and their high level of professionalism - whose
diversity of experience and background enriches the Board with different points of view - the team spirit, the
specific expertise, in particular in the areas of markets and finance, ESG and risk control.
This year the survey covered also business conduct issues and all directors who specifically responded agreed
that the skills and experience of the current members of the Board and its Committees were reviewed and
considered appropriate for the oversight of sustainability issues at the time of their appointment and were
further developed and broadened following the specific training received in numerous induction sessions, and
that skills and experience in relation to the material impacts, risks and opportunities of the Company and the
Group were also assessed at the meetings of these bodies. Of particular value and appreciation was the
information on sustainability and in relation to ongoing projects provided both during training sessions and
board meetings. Almost all of the directors who participated in the self-assessment process confirmed that
they have significant experience in relation to Cementir Holding N.V.'s business sector, products and
geographical location, as well as specific expertise in business conduct matters.
It is also noted that the Company's management structures were found to be adequate and effective in
achieving its objectives and the interaction between bodies constructive and appropriate.
With regard to the proposals made by some directors on possible areas of action during the year, particular
attention is confirmed to training and information activities of various kinds, including visits to production plants,
such as the one organised in 2024, which were recognised as being of great value and interest both in terms
of improving knowledge of the Group's industrial activities and structures and management, and as an
opportunity for further in-depth study of management succession plans. In general, while considering the
adequacy of the current composition of the Board, M&A and Energy Transition competencies were highlighted
as areas for further improvement.
Director’s Report 2024 Cementir Holding NV | 76
In addition, the continuation of the Executive Director's illustration to the Board of the geopolitical situation,
strategic issues and/or potential risks for the Company, which was highly appreciated during the self-
assessment, was requested, suggesting an even more frequent updating of the Board members (also between
meetings) on the main events affecting the Company and the Group. This is in addition to the periodic
information flow provided for at the request of the independent directors, which was positively received, and
the possible participation of Group managers in the case of particular projects or issues.
Particularly appreciated was the contribution of all Committees, all of which, for matters within their
competence, enabled a relationship of growing cooperation and trust to be established with the Board of
Directors and top management, also thanks to the presence of the Executive Director in the Sustainability
Committee and the constant updating and analysis work carried out during the year on CSRD and Internal
Audit activities for the Audit Committee and the in-depth study on Group policies relative to the Group Talent
Review and succession plans for the Remuneration and Nomination Committee.
In relation to the Audit Committee, the Non-Executive Directors who expressed their views appreciated and
were in agreement with the contribution of this Committee and deemed its composition to be adequate. They
also agreed that the Audit Committee should periodically give the Board of Directors an accurate, effective and
substantial picture of the control activities to be carried out, with an indication of the priorities. The Non-
Executive Directors expressed the opinion that the Committee promptly provides the Board of Directors with
the necessary documentation and information and that the activities carried out are explained to the Board of
Directors in a clear and effective manner. One member pointed out that the Committee's most significant
contribution to the Board of Directors is its awareness of the Committee's effective examination of issues and
the effectiveness of the information flow established.
All the members of the Audit Committee considered the average number and duration of meetings held in
2024 to be adequate and unanimously considered that the risk assessment and the consequent monitoring of
the main risks by the Company are carried out satisfactorily and that the relationship between the Committee
in question and the Group departments is continuous and effective. All members also agreed that the
organisational framework for risk governance is adequate and satisfactory. The Audit Committee has the
technical skills and experience necessary for the credible and effective performance of its functions and all
members have had the opportunity to access information relevant to the exercise of their role, even in the
interval between scheduled meetings.
The members ensured total attendance at the meetings of the Audit Committee (more details can be found in
Table B - “Attendance” in the “Corporate Governance” section, paragraph “Role of the Board of Directors”).
More information regarding the role, the composition and the activities carried out by the Audit Committee, are
set forth in the “Corporate Governance” section, paragraph "Board Committees".
In relation to the Remuneration and Nomination Committee, the Non-Executive Directors who expressed their
views appreciated and were in agreement with the contribution of this Committee and deemed its composition
to be adequate.
The majority of the Non-Executive Directors considered the Committee's input to the Board on the
remuneration of the Executive Director and the remuneration systems in place to be effective and substantial.
Three Non-Executive Directors assessed as effective and substantial the contribution made to the Board
concerning any need for the appointment of directors, profiles considered and evaluation/motivation of the
proposed solutions, and one Non-Executive Directors clarified that he had not expressed his opinion because
the need had not arisen in the time frame under consideration.
On the other hand, the Non-Executive Directors expressed their unanimous opinion that the Committee timely
provides the Board of Directors with the necessary documentation and information and that the activities
carried out were clearly and effectively illustrated to the Board of Directors and the related recommendations
were adequately discussed, having an impact on the decisions of the Board itself.
Director’s Report 2024 Cementir Holding NV | 77
The members of the Remuneration and Nomination Committee all deemed the number and average duration
of the meetings held in 2024 to be adequate. The Remuneration and Nomination Committee, as a whole,
possesses the skills and experience necessary for the credible and effective performance of its functions, and
its members have had access to information relevant to the exercise of their role.
The members ensured total attendance at the meetings (more details can be found in Table B - “Attendance”
in the “Corporate Governance” section, paragraph “Role of the Board of Directors”).
More information regarding the role, the composition and the activities carried out by the Remuneration and
Nomination Committee, are set forth in the “Corporate Governance” section, paragraph "Board Committees".
With regard to the Sustainability Committee, the Non-Executive Directors who expressed their views all
considered the contribution of this Committee to be appreciated and agreed that its composition was adequate.
A Non-Executive Director emphasised the importance of the presence of the Chairman and CEO on the
committee as well as the importance of its interaction with the operatives of the various Group companies.
In addition, 5 Non-Executive Directors, recognising that the activities of the Sustainability Committee were
carried out satisfactorily and in accordance with the tasks and responsibilities laid down in the Charter,
expressed their concurring opinion on the effectiveness of the role played by the Committee for the benefit of
the Board in relation to the development and promotion of a healthy, safe and secure environment for all
stakeholders and more generally in relation to sustainable development and social responsibility.
The Non-Executive Directors expressed the view that this Committee supports the decisions of the Board of
Directors by providing the necessary assistance and technical support, and in particular one Non-Executive
Director expressed great appreciation for the very establishment - by the Company - of the Committee in
question, since it is not mandatory by law.
All the members considered the number of meetings held to be adequate, as well as the duration and
satisfactory attendance with respect to the topics on the agenda, pointing out - one member - that the expertise
of the Company and the Sustainability Committee in the subject matter is not only uncommon in the corporate
landscape, but also enables it to manage sustainability both from the point of view of social and environmental
impact, and from the point of view of creating value, including economic value in the medium and long term.
All the members also believe that the members possess the necessary skills and experience, and in particular
one member points out that the induction sessions held were also useful in this respect, and another points
out that there is a proper balance within the Committee from the operational and strategic aspects of the
cement sector due to the presence of the Chairman, the generic ESG and financial expertise from the investors'
point of view, the contribution of the other Board members in other sectors and the valuable training by the
Company's technicians.
All members of the Committee attended the meetings (more details are given in Table B - “Attendance” in the
“Corporate Governance” section, paragraph “Role of the Board of Directors”).
More information regarding the role, the composition and the activities carried out by the Sustainability
Committee, are set forth in the “Corporate Governance” section, paragraph "Board Committees".
Director’s Report 2024 Cementir Holding NV | 78
COMMITTEE REPORTS
Pursuant to Best Practice provision 2.3.5 of the Code, the Non-Executive Directors received the reports of
each Committee.
By resolution of 27 April 2023, the Board of Directors established the Audit Committee, the Sustainability
Committee and, combining the tasks of the remuneration committee and the selection and appointment
committee into a single committee, the Remuneration and Nomination Committee.
The duties and responsibilities of these Committees are defined in the respective charters (published on the
Company's website) approved by the Board of Directors pursuant to Art. 7.1.4 of the Articles of Association
and updated on 27 April 2023 in light of the new provisions of the Code.
The Audit Committee is currently made up of 3 (three) Non-Executive Directors, all independent: Benedetta
Navarra (Chairman), Annalisa Pescatori and Adriana Lamberto Floristan.
The Remuneration and Nomination Committee is currently made up of 3 (three) Non-Executive Directors, all
independent: Annalisa Pescatori (Chairman), Benedetta Navarra and Adriana Lamberto Floristan.
The Sustainability Committee is currently composed of 1 (one) Executive Director, Francesco Caltagirone
(chairman) and 3 (three) independent Non-Executive Directors: Benedetta Navarra, Annalisa Pescatori and
Adriana Lamberto Floristan.
Further information relating to the number of meetings, the performance of the tasks assigned and the main
topics discussed in the meetings of the Committees, are contained in the "Corporate Governance" section in
the paragraphs "Audit Committee", "Remuneration and Nomination Committee" and “Sustainability
Committee”.
The participation of Non-Executive Directors in the meetings of their respective Committees to which they
belong, also for the purposes of the disclosure established in Best Practice provision 2.4.4, is detailed in the
“Corporate Governance” section, Table B of the paragraph “Role of the Board of Directors”.
Director’s Report 2024 Cementir Holding NV | 79
REMUNERATION REPORT
REMUNERATION OF DIRECTORS
Introduction
It is worth highlighting that the main financial results in 2024 that could influence the Group Remuneration
were:
a) Net cash of EUR 290.4 million (net cash of EUR 217.6 million in 2023);
b) EBIT at EUR 262.0 million (EUR 278.3 million in 2023).
The Board of Directors was renewed by the Shareholders’ Meeting of 20 April 2023 for a three-year term,
reducing the number of members from 10 to 8, of which one Executive Director and seven Non-Executive
Directors.
The Board then established the Board Committees, appointing the members of the Audit Committee, the
Remuneration and Nomination Committee and the Sustainability Committee as well as their respective Chairmen
by resolution of 27 April 2023.
This report (hereinafter the "Remuneration Report") consists of the following sections:
- Section I, which illustrates the policy of Cementir Holding N.V. (hereinafter "Cementir Holding" or
"Company") regarding the remuneration of Executive and Non-Executive Directors (hereinafter, jointly,
"Directors") for 2025, as well as the procedures used for the adoption and implementation of the policy. The
Remuneration Policy for 2025, effective from 1 January 2025, remained overall unchanged compared to the
previous year; consistent with the most recent trends in best market practices, the method of calculating the
variable component of the Chairman's remuneration was changed to include ESG objectives and subject it to
a cap (maximum amount payable).
- Section II, which describes how the remuneration policy was implemented with reference to Directors and
indicates the amounts paid during 2024 to Directors, providing a representation of each remuneration
component.
Please refer to the terms of the 2024 Remuneration Policy, effective from 1 January 2024, approved by the
Shareholders' Meeting on 22 April 2024 with 91.79% of the votes cast and available on the Company's website,
www.cementirholding.com. There have been no deviations or derogations from the approved Policy.
The 2023 Remuneration Report was submitted to the non-binding and advisory vote of the General Meeting
on 22 April 2024 and again received the favourable vote of the overwhelming majority of shareholders,
amounting to 93.76% of the votes cast, with only 6.24% voting against.
Given the broad consensus received, it was therefore deemed appropriate to maintain the same approach for
this Remuneration Report, without changes to its structure and level of disclosure.
In this Remuneration Report, Cementir Holding intends to strengthen the transparency of the contents of its
remuneration policies and their implementation, allowing investors to obtain information on remuneration,
including variable remuneration, and enabling them to make an even more accurate assessment of the
Company, thereby enabling shareholders to act in an informed manner when exercising their rights.
The Remuneration Report shall be drawn up in accordance with articles 2: 135, 2: 135a and 2: 135b of the
Dutch Civil Code (hereinafter "DCC") and Chapter 3 of the Dutch Corporate Governance Code (hereinafter
the "Code"). It was approved by the Board of Directors upon proposal of the Remuneration and Nomination
Committee (hereinafter also the "Committee" in this Remuneration Report) at the meeting of 10 March 2025.
Director’s Report 2024 Cementir Holding NV | 80
Section I is to be submitted to the approval of the Shareholders’ Meeting called for 28 April 2025. Section II is
to be submitted to the advisory vote of the Shareholders’ Meeting called for 28 April 2025.
The Remuneration Report is made available on the Company’s website (www.cementirholding.com) after the
General Meeting and will be accessible for 10 (ten) years, in compliance to the procedures and within the
terms prescribed by current regulations.
SECTION I – REMUNERATION POLICY 2025
This section of the Remuneration Report describes, in a comprehensive manner, the principles and guidelines
with which Cementir Holding determines and monitors the remuneration policy and its implementation within
the Company (hereinafter the “Remuneration Policy” or the “Policy”).
The Policy has the primary objective of creating sustainable value over the medium to long-term by creating a
strong bond between individual performance and the Group on the one hand, and remuneration on the other.
The Remuneration Policy summarises the remuneration policies applied within the Group and aimed at
ensuring a fair and sustainable remuneration system, in line with the long-term corporate strategies and
objectives, with regulations and with Stakeholders’ expectations.
The total remuneration of Directors, which is deemed appropriate to the size and structure of the Group, the
sector of activity carried out and the level of complexity of the business, contributes to the long-term
performance of the Company as it enables the Company to attract and retain qualified and experienced
Directors, motivating them to achieve the Company's business, financial and strategic objectives and their
implementation for the creation of long-term sustainable value for all stakeholders consistent with the Company
and Group's founding values and culture.
The Policy also aims to attract and retain members of staff with the professional qualities necessary to manage
and operate successfully in an international environment characterised by competitiveness and complexity,
recognising and rewarding good performance.
Cementir Holding intends to adopt a competitive remuneration system that guarantees the delicate balance
between strategic objectives and the recognition of the merits of Group employees. By using short and medium
to long-term variable remuneration components, the Policy is designed to facilitate the alignment of staff
interests with the pursuit of the overriding objective - value creation - and the achievement of financial and
sustainability goals. This objective is pursued also by linking a significant part of remuneration to the
achievement of set performance targets, by means of both the short-term incentive scheme (STI) and the long-
term incentive scheme (LTI). The LTI concerns selected employees only.
The principles applied in defining the Policy are intended to ensure that Cementir Holding is appropriately
competitive in its sector and international markets, are in particular:
▪ the promotion of merit and performance to reward actions and behaviours that reflect the values of the
company, the principles of the code of ethics and the strategic objectives;
▪ external competitiveness and internal fairness to make sure that pay packages are in line with best
practices, and to ensure that they are consistent with the complexity and responsibilities of the role;
▪ aligning the interests of Management with those of the Shareholders and with the medium-and long-term
strategies of the Company;
▪ Alignment between the values of the Cementir culture (e.g. sustainability, value of people, etc.) and the
leadership and competency model consistent with business objectives; skills derived from the Cementir
Group's culture are also assessed in the context of the STI as further confirmation and reinforcement of
the propensity towards the values of the corporate culture;
Director’s Report 2024 Cementir Holding NV | 81
▪ the inclusion of specific quantitative KPIs linked to ESG objectives in the STI plan, contributing to the
implementation of the corporate strategy and the pursuit of long-term interests and sustainability
objectives;
▪ a focus on rewards and retention purposes based on meritocracy;
▪ the consideration of the point of view of the Executive-Director and the Board in its entirety, as also
provided for by the Code;
▪ balancing continuity with the choices already made in the past and endorsed by shareholders and the
approval of the General Meeting of the proposals presented and, at the same time, a periodic assessment
in the light of the international trend, the market practice for comparable companies and the regulatory
changes;
▪ transparency regarding the remuneration system implemented and envisaged for the following year, in
accordance with the provisions of the Code and applicable legislation.
1.1 DEFINITION AND APPROVAL OF THE REMUNERATION POLICY
Parties involved in the Remuneration Policy
The definition of the Remuneration Policy is the result of a clear and transparent process in which the Company’s
Remuneration and Nomination Committee and Board of Directors play a central role.
The Policy is submitted for the approval of the General Meeting by the Board of Directors on the
recommendation of the Remuneration and Nomination Committee. The Policy is deemed approved with the
favourable vote of at least ¾ of the votes cast at the General Meeting. In case the Policy is not approved by
the General Meeting, the Company applies the existing policy and submits to the approval of next General
Meeting a revised policy.
The bodies and parties involved in the remuneration policies approval process are listed below, along with a
precise indication of their roles in the process.
General Meeting
With regard to remuneration, the General Meeting:
▪ adopts the remuneration policy upon proposal of the Board, pursuant to Art. 7.4.1 of the Company’s
Articles of Association;
▪ determines the compensation for the Executives and Non-Executive Directors as well as for the members
of the board committees (Audit Committee, Remuneration and Nomination Committee and Sustainability
Committee), in accordance with the remuneration policy, as provided for in Art. 7.4.2 of the Company's
Articles of Association;
▪ expresses a vote, each year, on the first section of the remuneration report, i.e. on the Remuneration
Policy;
▪ receives adequate disclosure about the implementation of remuneration policies and express an advisory
vote, each year, on the second section of the Remuneration Report, i.e. on the report on compensation
paid;
▪ resolves on any remuneration plans based on shares or other financial instruments and intended for
Directors, employees and other workers, including Key Executives.
Director’s Report 2024 Cementir Holding NV | 82
Board of Directors
With regard to remuneration, the Board of Directors:
▪ submits a remuneration policy proposal to the General Meeting pursuant to Art. 7.4.1 of the Articles of
Association, drawn up with the support of the Remuneration and Nomination Committee;
▪ develops the strategy for realising long-term value creation;
▪ approves the Remuneration Report pursuant to Articles 2:135 and 2:135a DCC, to be presented at the
annual General Meeting;
▪ prepares any remuneration plans based on stocks or other financial instruments and submits them to the
General Meeting for approval;
▪ implements the remuneration plans based on shares or other financial instruments, after authorisation
from the General Meeting.
Non-Executive Directors
The Non-Executive Directors are responsible for overseeing the following within their remit:
▪ the performance of the Executive Directors;
▪ the development of a general strategy, including the strategy for realising long-term sustainable value
creation.
Executive Directors
The Executive Director, who in this case also assumes the role of CEO pursuant to Art. 7.1.2 of the Articles of
Association:
▪ sets performance targets for the Cementir Group;
▪ submits to the Remuneration and Nomination Committee the stock incentives, stock options, corporate
shareholding and other types of incentive plans, motivating and retaining the managers of the Group
companies controlled by the Company or, as the case may be, assisting the Committee in their drafting,
with the support also of the Group's Human Resources department;
▪ enforces the Company’s Remuneration Policy in accordance with this document.
Remuneration and Nomination Committee
In accordance with the recommendations contained in the Code and the Board of Directors Rules, the
Remuneration and Nomination Committee:
▪ prepares the Board’s decision-making (including proposals of the Board for the General Meeting)
regarding the determination of the remuneration of individual Directors, including severance payments;
▪ submits a proposal to the Board concerning the remuneration of each Director. The proposal is drawn up
according to the remuneration policy that has been established and in any event it covers:
(a) the objectives of the strategy for the implementation of long-term sustainable value creation within the
meaning of Best Practice provision 1.1.1 of the Code;
(b) the scenario analyses carried out in advance;
(c) the pay ratios within the Company and the Group;
Director’s Report 2024 Cementir Holding NV | 83
(d) the development of the market price of the shares;
(e) an appropriate ratio between the variable and fixed remuneration components. The variable
remuneration component is linked to measurable performance criteria determined in advance, which
are predominantly long-term in character;
(f) if shares are being awarded, the terms and conditions governing this. Shares should be held for at
least five years after they are awarded; and
(g) in the case of the assignment of share options, the terms and conditions governing them, as well as
the terms and conditions for the exercise of share options. Share options may not be exercised during
the first three years after they have been awarded.
Human Resources
The Company’s HR Department is involved in defining and approving the proposals for the remuneration plan
of the Company’s personnel, monitoring and checking that those proposals are fully implemented with the aim
of collecting market data in terms of practice, policies and benchmarking and if necessary, resorting to advice
from independent experts.
Composition and activities of the Remuneration and Nomination Committee
As of the date of approval of this Report, the Remuneration and Nomination Committee is made up of three
Non-Executive Directors, all independent, appointed by the Board of Directors at the meeting of 27 April 2023:
Composition of the Committee
Annalisa Pescatori
Non-Executive independent Director and Chairwoman of the Committee
Benedetta Navarra
Non-Executive independent Director and member of the Committee
Adriana Lamberto Floristan
Non-Executive independent Director and member of the Committee
The Remuneration and Nomination Committee provides advice and submits proposals to the Board of Directors,
and supervises to ensure that the Remuneration Policy is defined and applied; specifically it prepares the
Board of Directors’ decision-making regarding the:
▪ periodical assessment of size and composition of the Board and its Committees, and the proposal for the
profile of the Board also in regard to the professional roles whose presence within the Board or the Board
Committees is deemed necessary in order for the Board to express its strategy to shareholders before the
new Board is appointed, also taking into account the results of the annual assessment of the Board and the
Board Committees as required by the Code;
Director’s Report 2024 Cementir Holding NV | 84
▪ drawing up of selection criteria and appointment procedures for Executive Directors and Non-Executive
Directors;
▪ drawing up of a succession plan for Executive Directors and Non-Executive Directors;
▪ proposal of candidates for the office of Executive and Non-Executive Directors;
▪ supervision of the policy of the Board regarding the selection criteria and appointment procedures for
senior management;
▪ developing the Company's diversity, equity and inclusion policy for the composition of the Board and
certain employees in senior management positions.
In addition:
▪ submits proposals to the Board of Directors regarding the remuneration policy for Executive and Non-
Executive Directors, periodically assessing the performance of individual Executive Directors and Non-
Executive Directors and reporting this to the Board;
▪ submits proposals or provides opinions to the Board of Directors regarding the remuneration of Executive
and Non-Executive Directors with specific duties, and on the setting of performance targets related to the
variable-pay component;
▪ evaluates and formulates proposals to the Board of Directors with regard to stock incentive, stock option,
corporate shareholding and similar plans aimed to motivate and retain the managers and employees of
the Group companies controlled by the Company;
▪ reports to the Board on the ways it performs its duties;
▪ examines the annual Remuneration Report to be approved by the Board and submitted to the vote of the
General Meeting as part of the annual financial reports;
▪ provides opinions on issues submitted to it from time to time for screening by the Board of Directors,
concerning remuneration or any pertinent or related topics.
The Non-Executive Directors, including those forming the Remuneration and Nomination Committee, can
access the information and contact Company departments as necessary, in order to fulfil their duties.
The Remuneration and Nomination Committee meets during each financial year according to a calendar
scheduled by the beginning of such year and any time it may deem appropriate, upon notice issued by the
Chairman of the Committee, so as to ensure the correct execution of its tasks. No Executive Director shall
participate to any Committee meeting where proposals related to their remuneration are discussed.
Meetings of the Remuneration and Nomination Committee are attended - when deemed appropriate and at the
invitation of the Committee - by Company’s management (General Counsel and Chief Human Resources Officer).
Annually, on the occasion of the approval of the financial statements, the Remuneration and Nomination
Committee reports to the Board in relation to its work.
During 2024, the Remuneration and Nomination Committee met on 8 March, 8 May and 4 November. During
these meetings, the Remuneration and Nomination Committee examined and discussed, among other things,
the remuneration policy and the report on remuneration drawn up in accordance with Art. 2:135a of the Dutch
Civil Code and Best Practice provision 3.1 and following of the Code, as well as the report concerning the
activity carried out by the Committee in 2023, drawn up in accordance with Best Practice provision 2.3.5 of the
Code; discussed the annual assessment carried out by the members of the Committee pursuant to Best
Practice provision 2.2.6 of the Code; discussed and verified the independence requirements in the context of
the review of the requirements for membership in the Euronext Star Milan segment; verified the achievement
of the gender diversity targets set for 2023 and approved the proposed DE&I targets for 2024, determined in
accordance with current legislation, to be submitted to the Board of Directors for approval. The Remuneration
Director’s Report 2024 Cementir Holding NV | 85
and Nomination Committee also examined and discussed the state of implementation of the LTI plans with
particular reference to the payment of the fees provided for under the LTI 2021-2023 Plan as well as the
allocation criteria and the setting of the objectives relating to the 2024-2026 LTI Plan; also examined the
assigned ESG objectives included in the STI Plan; finally, received the periodic update on the Succession Plan
for the Company's personnel.
Independent experts who contributed to preparing the Remuneration Policy
As mentioned in the previous years’ Reports, the Company took advantage of the advice of the independent
expert Korn Ferry to conduct international benchmark analyses and to align the Remuneration Policy,
reiterated in substantially the same way in subsequent years, with the best practices of competitors and the
market.
1.2 CONTENT OF THE REMUNERATION POLICY
1.2.1 Content of the Remuneration Policy and main changes compared to 2024
The Policy determines the principles and guidelines adopted by the Board in order to define the remuneration
of its members and in particular of Executive and Non-Executive Directors as well as members of the
Committees. It provides detailed information to ensure stakeholders receive more information about pay
policies, practices adopted and results achieved, and it shows that the policies are consistent with the
Company’s business strategy and performance.
The 2025 Remuneration Policy does not envisage substantial changes compared to that approved in 2024,
except as indicated below:
• confirming the simplification and standardisation of the overall structure of the short-term variable
incentive system, thanks mainly to the digitalisation of the process through an online definition and
subsequent assessment platform;
• continuously strengthening the number and relevance of the objectives related to the company's
sustainability strategy at different organisational levels, confirming the extension of the audience of
interested parties for all ESG issues;
• consistent with the most recent trends in best market practices, the method of calculating the variable
component of the Group CEO and Chairman’s remuneration was changed to include ESG objectives
and subject it to a cap (maximum amount payable).
As a result of the establishment of the Sustainability Committee, a benchmark analysis was carried out by the
Company's departments (in particular the Human Resources department with the contribution of the Legal
Department) to verify alignment with the market and the Remuneration Policy was reviewed with reference to
market practices.
The Policy also maintains and confirms the medium and long-term incentive system applied in previous years.
The Remuneration and Nomination Committee, at its meeting on 10 March 2025, reviewed this report and the
criteria selected to assess the variable remuneration of the Executive Director and the performance of the
strategic executives and Group personnel receiving variable remuneration. The Remuneration and Nomination
Committee then assessed the Remuneration Policy from the point of view of its consistency with the objectives
of the Company and Group, with particular reference to its suitability to contribute to the creation of long-term
value. In particular, the ESG objectives included for some beneficiaries of the incentive plan addressed to
Group employees were illustrated and discussed in detail, as a further demonstration of the Company's
ongoing commitment to pursuing sustainability objectives. Finally, it concluded that the criteria established for
Director’s Report 2024 Cementir Holding NV | 86
both short-term variable remuneration and medium and long-term variable remuneration, insofar as they are
applicable to the respective recipients, fully meet these requirements and appear consistent and appropriate
to support the implementation of the strategic objectives. It therefore decided to propose the 2025
Remuneration Policy to the Board of Directors, taking into account the Executive Director's views on the level
and structure of his remuneration.
A proposal to revise the way in which the Group CEO & Chairman's variable component is calculated and
managed was initiated during the year and subsequently approved at the Committee meeting of 10 March
2025: consistent with the latest trends in best market practices, ESG objectives were included and a cap
(maximum amount payable) was applied.
1.2.2 Description of fixed and variable pay components with particular regard to their weightings within
the overall remuneration, and distinguishing between the short and medium and long-term variable
components
The remuneration of Directors has been defined as follows, with reference to the fixed and variable components:
Remuneration of the Board of Directors
The Remuneration Policy for the Board of Directors set by the General Meeting of 22 April 2024 includes the
following elements:
A. remuneration of Directors for the office and for attendance at Board meetings;
B. remuneration of the Executive Director (who also holds the position of CEO) for the performance of
executive functions, powers and responsibilities;
C. remuneration of Non-Executive Directors;
D. remuneration of members of the Audit Committee, the Remuneration and Nomination Committee and
the Sustainability Committee.
Remuneration of Directors
The remuneration to be paid to Directors (see letter A) shall be in the form of an allowance for attendance at
each meeting of the Board of Directors and of a fixed annual payment for the office of Director, payable to
each Director (both Executive and Non-Executive Directors) and approved, in accordance with the provisions
of the law, by the General Meeting.
The current annual remuneration of all Directors is:
▪ a fixed annual allowance of EUR 5,000;
▪ a participation token of EUR 1,000 for each board meeting in which they participate in presence or by
teleconference, except for written resolutions.
Directors are entitled to reimbursement of the reasonable expenses incurred because of their office on the
basis of the arrangements with the Company.
The same is confirmed as policy for 2025.
Director’s Report 2024 Cementir Holding NV | 87
Remuneration of Directors with specific duties
The compensation to be paid to Directors with specific duties (letters B and D above) is determined, upon
proposal of the Remuneration and Nomination Committee, taking into account the commitment actually required
from each of them and any powers vested in addition to the compensation due to all Directors.
The following Directors have specific duties within the Board of Directors of the Company:
(i) the Chairman of the Board of Directors;
(ii) the CEO;
(iii) the Directors who participate in the Board Committees (Audit Committee, Remuneration and
Nomination Committee and Sustainability Committee).
The Non-Executive Directors (i) appointed as members of the Remuneration and Nomination Committee, the
Audit Committee and the Sustainability Committee and (ii) who are appointed as Chairman of such
Committees, shall receive an additional compensation, commensurate with the commitment required from
each of them in the performance of their aforesaid duties.
Remuneration of Chairman and CEO.
The annual gross remuneration of the Chairman of the Board of Directors and the CEO generally includes the
following elements:
▪ a fixed component;
▪ a variable component determined according to the Group’s performance and tied to predetermined,
measurable parameters connected to the creation of shareholder value in a medium/long-term time span.
In determining the remuneration of the Chairman and of the CEO, the Board of Directors takes into account (i)
the specific content of the vested powers and/or (ii) the functions and the role actually served within the
Company, thereby assuring that the provision of a possible variable component is consistent with the nature
of assigned duties.
In particular, remuneration is determined on the basis of the following criteria:
▪ correct balance between the fixed component and the variable component in accordance with the
Company’s strategic goals and its risk management policy, also taking into account the industry in which
it operates and the characteristics of its business;
▪ provision of maximum limits for the variable components, provided that the fixed component shall be
sufficient to remunerate the performance of the Chairman and of the CEO should the variable component
not be paid;
▪ the parameters, economic results and any other specific objectives to which the payment of the variable
components is tied are predetermined, measurable and connected to the creation of shareholder value in
a medium/long-term time span.
In detail, in line with the resolution approved in previous years, the variable component is set at 2% of the cash
flow produced by the Group in the year of reference and is defined according to a formula that enables a quick
reference with the consolidated accounts figures, from which the fixed pay component should be deducted. The
variable component, which is pre-tax and may have a value of zero or more, may be calculated and paid in
advance as an interim payment when the Board of Directors approves the Group's half-yearly financial
statements; When the Group's annual financial statements are approved by the General Meeting, the variable
component is finally determined and the balance is paid out. The fixed component is also confirmed consistently
with previous years. The fixed component proposed for the Chairman and Chief Executive Officer is EUR 1.8
million per year before taxes, payable on a monthly basis.
Director’s Report 2024 Cementir Holding NV | 88
The reference to operational cash flow generated by the Group has been identified as it is considered that this
value, more than others, represents the link between annual performance (short-term) and the value of the
company, and therefore appropriately aligns the results obtained by the CEO with the objective of creating
value for all shareholders.
The following is the historical trend of the pay mix, i.e. the percentage weight of the various components of
remuneration in relation to Annual Total Compensation (excluding benefits):
As the Chairman and CEO expresses the will of the Company’s controlling shareholders and is a shareholder
himself, there is an alignment of the interests of the Executive Director with the interest of all shareholders and
stakeholders of the Company, consequently there is no need for an (additional) medium/long-term incentive
plan.
During 2024, an analysis was conducted to assess and review the structure of the annual total remuneration
of the Group Chairman and CEO. The analysis focused on the following objectives:
▪ to define a maximum amount of variable remuneration;
▪ to tie the payment of the variable component to predetermined, measurable parameters linked to the
creation of shareholder value by also making them directly linked to ESG objectives, already envisaged
for the Group's top management, as well as simplifying the calculation method with respect to financial
results.
In light of the above:
▪ a fixed salary of EUR 1.8 million per year, subject to adjustment according to the annual inflation rate,
was confirmed for 2025;
▪ variable remuneration, starting in 2025, was determined as 1.5% of Cash Flow from Operations, as
reported in the consolidated financial statements. Any extraordinary or non-recurring items are subject to
normalisation.
Variable remuneration may not exceed a predetermined upper limit of 360% of fixed remuneration.
The following ESG targets, already used for top management, will be adopted to determine variable
remuneration
• Health & Safety – total LTIFR: lost time injury frequency rate i.e. total accidents with absence from
work (employees and contractors on site) per million hours worked
• CO2 Emissions - Grey cement: CO2 emissions per ton of cement equivalent produced by Group plants
Director’s Report 2024 Cementir Holding NV | 89
• CO2 Emissions - white Cement, or CO2 emissions per ton of cement equivalent produced by Group
plants
• Specific water consumption (cement): litres of water consumed per ton of cement equivalent
Each ESG objective was given equal specific weight. The annual variable remuneration may vary, according
to a scale from 1 (ESG targets not met) to 5 (ESG results achieved above the pre-set plan targets), between
90% and 120% of 1.5% of cash flow from operations, depending on actual performance on ESG targets. The
cumulative result from ESG targets will be rounded to the nearest whole number.
CUMULATIVE RESULT OF ESG OBJECTIVES
1
2
3
4
5
% Calculation of final variable
considering ESG targets to be
applied to Cash flow from
operating activities
1.35%
(90% of 1.5%)
1.425%
(95% of 1.5%)
1.5%
1.65%
(110% of 1.5%)
1.8%
(120% of 1.5%)
Remuneration of Non-Executive Directors
The remuneration of Non-Executive Directors (see letter C) is not tied to the Group’s economic-financial results
or based on short or medium-term incentive plans or based on financial instruments.
Remuneration of Non-Executive Directors proposed for 2025 confirms the structure and the order of magnitude
defined in the previous years.
The annual remuneration of Non-Executive Directors consists of:
- a fixed annual allowance of EUR 5,000 determined for all Directors (see letter A above);
- an attendance fee of EUR 1,000 per board meeting, determined for all directors (see letter A above).
Remuneration of Committee members
In addition to the remuneration of Non-Executive Directors, the Remuneration Policy provides for an additional
remuneration for the participation in board committees (currently Audit Committee, Remuneration and
Nomination Committee and Sustainability Committee), differentiated according to the time and effort dedicated
to the performance of the tasks of these committees.
Specifically, it:
- an annual remuneration of EUR 30,000 for each position held by the Non-Executive Directors as
Chairmen of the Committees;
- an annual fee of EUR 20,000 for each position held by the Non-Executive Directors as members of
the Audit Committee and Remuneration and Nomination Committee;
- an attendance fee of EUR 1,000 for each meeting of the Sustainability Committee attended in
attendance or by teleconference by Non-Executive Directors.
Short-Term Incentive and Long-Term Incentive Schemes
In addition to the remuneration described above for Executive and Non-Executive Directors, Cementir Holding
NV adopts, for the managers within the Company, a compensation scheme that includes a variable component
aimed at creating value for its Stakeholders, achieving ever-improving performance levels within the
sustainable value creation structure that is the Company’s true objective.
Director’s Report 2024 Cementir Holding NV | 90
Short-term variable component - STI (Short Term Incentive)
The variable component is based on a Short-Term Incentive (STI) Plan. The system assesses the performance
of the Company and of the beneficiary on an annual basis and directs the actions of the management towards
strategic objectives in line with the Group’s short-term business priorities.
The structure of the short-term incentive system was confirmed, based on the financial objectives of the Group
and/or the subsidiaries (access system Gate). In addition, objectives were defined with indicators linked to
individual performance, as well as skills related to the leadership model. Each target (corporate and individual)
is matched with a minimum performance, target performance and maximum performance level.
The Group uses a fully digitalised performance appraisal system, by means of a dedicated Performance
Management platform that also enables the management of the short-term incentive system and the related
assessment of results achieved.
The appraisal system is based on the Group’s and/or subsidiaries’ financial targets, which are the factor that
enables access (Gate) to the system. Each target will be matched with a minimum performance, target
performance and maximum performance level, correlated to the payout curve within the range 90%-120%.
Other individual objectives should be defined on the basis of indicators linked to company performance and/or
individual performance (including sustainability) specific to the role, while skills have been assessed in relation
to the organisational position of reference. The total individual performance assessment is defined according
to a rating scale ranging from 1- Unsatisfactory to 5- Exceptional and which will measure the “What” of the
objectives, but also the “How” ensuring adherence to company values.
The combination of corporate and individual objectives, as well as skills will entitle to a variable bonus payment.
For the purposes of incentivisation and the final bonus, overall performance, taking into account the entry gate
and performance results, cannot be less than 60%.
The structure and weighting of the various objectives, which is standardised at the Group level, is shown in
the following table:
30% Weighting
70% Weighting
Group targets
Individual targets 80%
• Economic-Financial Targets (Gate)
o EBIT (20%)
o NCF (10%)
• Targets based on Operational Projects/Results and sustainability of
earnings
• Organisational Development and Growth Targets
Cementir Leadership Competencies Model 20%
Director’s Report 2024 Cementir Holding NV | 91
In order to encourage managers to pursue their annual budget targets, the short-term incentive plan is
addressed to managers within the Group with exactly the same scheme as described above. Target incentive
levels expressed as percentages of fixed remuneration, depend on the responsibility and complexity of the
role covered, whilst maintaining a single structure throughout the Group.
Medium/Long Term Incentive – LTI
The LTI plan is intended for Key Executive and a selected group of managerial staff, chosen from those who
have the greatest impact on the Group’s medium/long-term results.
As the CEO is also a major shareholder, he does not participate in this plan.
The LTI plan consists of three-year cycles based on the medium/long-term performance of the Group in relation
to the existing Business Plan, and it has the following aims:
▪ Incentivise the aforementioned Key Executives to achieve the objectives set out in the Business Plan;
▪ To converge the interests of Key Executives with those of shareholders to create sustainable
medium/long-term value;
▪ To introduce a motivation and retention plan.
The LTI also provides for the annual award of the right to receive a monetary performance bonus measured
over a three-year period, in line with the company’s medium-term strategic planning (vesting period).
Director’s Report 2024 Cementir Holding NV | 92
Bonus opportunities for recipients differ and amount to either 30% or 40% of the annual gross remuneration to
be awarded upon achievement of the target; the incentive payable at the end of the accrual period is determined
on the basis of the performance achieved and varies from 50% to 130% of the value of the bonus.
This incentive may rise to up to 52% (the “cap”) of gross annual remuneration upon achievement of levels of
performance higher than the target levels.
Performances below the target will see a reduction in the bonus of up to 15% of gross annual salary, when a
performance threshold is reached.
No bonus will be awarded if the results are below the threshold.
The award of the bonus depends on two performance conditions being met. These conditions operate
separately, and each have a weighting of 50% in the calculation of the bonus:
▪ Three-year cumulative Free Cash Flow
▪ Three-year cumulative EBIT
The threshold, target and maximum amount are set in line with the Company’s medium-term business plan.
Clawback and malus clauses
A clawback clause applies to both the LTI and the STI. This allows the Board of Directors to ask the
beneficiaries to return all or part of the bonuses paid if they find that the performance targets were achieved
on the basis of inaccurate or untrue data.
During the 2024, no clawback is deemed required and consequently no clawback has been applied.
1.2.3 Criteria used in assessing performance targets underlying the award of shares, options, other
financial instruments and variable pay components
The criteria used in assessing performance targets is based on the financial results of the Group. For more
information, refer to the contents of paragraph 1.2.2 above.
1.2.4 Information on the alignment of the Remuneration Policy and the pursuit of the Company’s long-
term interests and risk management policy
As described above, the Remuneration Policy, inspired by the principles described in paragraph 1.2.1 above,
pursues the objective of creating sustainable value over the medium to long-term, for the Company and its
shareholders.
Director’s Report 2024 Cementir Holding NV | 93
Therefore the remuneration of Executive Directors and key executives is structured so as to:
▪ ensure that the overall remuneration structure is adequately balanced between fixed and variable
components, with the aim of creating sustainable value over the medium to long-term, for the Company;
▪ coordinate the variable remuneration with the achievement of operational and financial targets, in line with
the creation of value over the medium to long-term and the actual results achieved by the Company;
▪ ensure that overall pay levels reflect the professional value of individuals and their contribution to creating
sustainable value over the medium to long-term.
For Non-Executive Directors, please refer to paragraph 1.2.2.
In order to achieve challenging Group strategic objectives, the Board approved a compensation plan for the
Company's executives to create value for its stakeholders by achieving increasingly better performance levels
within the sustainable value creation structure that represents the ultimate goal pursued by the Company. The
three-year cycles of the LTI plan are based on the medium/long-term performance of the Group in relation to
the existing Business Plan. The sustainability objectives were approved and included in the short-term
incentive and in the three-year business plan.
Metrics and targets, with particular reference to short-term ones, are being continuously assessed and
monitored, with a view to a progressive improvement path to ensure an ever-increasing alignment between
strategy, sustainability and incentive systems.
1.2.5 Vesting period, deferred payment schemes, indication of deferment periods and criteria used to
determine them, as well as ex-post adjustment mechanisms and information about clauses on the
inclusion of financial instruments in the portfolio after acquisition, with details of the holding periods
and criteria used to determine them
The Company has not adopted any Remuneration Plan based on shares or any other financial instruments
nor does it award shares or other financial instruments as variable performance-based pay components. In
addition, no clauses were determined for the retention in portfolio of financial instruments after their acquisition,
meaning clauses that include the obligation of non-portability on a relevant portion of the shares awarded.
1.2.6 Policy on indemnities applied after termination of contract or resignation
In general, for all Directors, there shall be no (i) indemnities in case of resignation or revocation without just
cause or non-renewal, (ii) agreements prescribing the allocation or continuation of non-monetary benefits in
favour of persons who have resigned from their office and, (iii) consulting agreements with the Directors for a
period following termination of their employment.
In relation to the above, it should be noted that the Chairman and CEO is one of the main shareholders of the
Company and that the remuneration of the other Directors takes the form of a participation fee and a fixed
annual remuneration of a limited amount for each Director, thus limiting the risk of any claim relating in any
way to the termination of the office of director and, in any case, the corresponding amount.
Directors that have an employment relationship with the Company or its Subsidiaries must comply in any case
with current provisions related to Collective Labour Agreements for the termination of their employment
relationship, in accordance with the legal procedures and requirements.
Where necessary, the Company may request the signature of a non-competition agreement by an outgoing
Director, which includes the payment of an indemnity related to the terms and extension of such obligation.
The breach of this agreement will determine the refusal to pay the indemnity or its reimbursement, as well as
an obligation to damage compensation for an agreed amount (i.e. the double of the agreed indemnity).
Director’s Report 2024 Cementir Holding NV | 94
If employment with the Company is terminated for reasons other than just cause, efforts will be made to reach
a termination agreement. Subject in any case to the obligations set out by law and/or by the employment
agreement, the arrangements for the termination of employment with the Company are tailored on the basis
of the relevant reference benchmarks and within the limits defined by courts and practice.
1.2.7 Information about insurance coverage, welfare or pension provision
In line with best practices, a Directors & Officers (D&O) Liability insurance policy covering the liability of the
Board of Directors towards third parties has been undersigned.
In case of employment relationship with the Company, pension or welfare provision are in line with the practices
applied for managers of the Company.
1.2.8 Information about the use of benchmark pay policies from other companies
The Remuneration Policy was devised by the Company without using as reference the policies of other
companies. However, as part of the annual review prior to the preparation of the 2022 Remuneration Policy, a
specific benchmark activity was carried out relating to the remuneration of non-executive directors using the
information available in the remuneration reports published by companies considered comparable and which
is also valid for subsequent remuneration policies including the 2025 Remuneration Policy.
The current Remuneration Policy is valid 1 (one) year and is therefore revised yearly by the Remuneration and
Nomination Committee and by the Board of Directors and submitted to approval of the General Meeting.
1.3. Derogations and deviations
The Board of Directors, with the abstention, if any, of the Director concerned, on the proposal of the
Remuneration and Nomination Committee, may discretionally approve derogations or deviations from any part
of the Remuneration Policy, where there are exceptional circumstances that provide compelling reasons for
the deviation. However, such derogations may only be temporary until a new policy is adopted in the following
circumstances: (a) in the event of changes in the corporate bodies, both by composition and by number or
skills; or (b) in additional exceptional circumstances. Exceptional circumstances are circumstances in which
the deviation from the Remuneration Policy is necessary to pursue long-term interests and sustainability of the
Company and/or to ensure its profitability.
SECTION II - PAYMENTS RECEIVED DURING 2024 BY THE MEMBERS OF THE BOARD OF DIRECTORS
This section of the Report sets out the remuneration paid in 2024 to each member of the Board of Directors.
This remuneration was paid in application of the principles as set out in the Remuneration Policy.
On 10 March 2025, the Remuneration and Nomination Committee verified the correct application of the
Remuneration Policy approved in 2024.
Director’s Report 2024 Cementir Holding NV | 95
PART I – REMUNERATION COMPONENTS
Remuneration of Directors
Fixed component
The General Meeting of 22 April 2024 approved the proposed Remuneration Policy by a large majority of
votes, assigning to all Directors, for their term of office, a fixed allowance of EUR 5,000, plus an attendance
token of EUR 1,000 for each Board meeting they attend.
Variable component
The variable remuneration component was paid exclusively to the Executive Director, who also holds the
position of CEO, in accordance with the 2024 Remuneration Policy approved by the General Meeting.
The compensation of Non-Executive Directors is not tied to the Group’s economic-financial results or based
on short or medium-term incentive plans or based on financial instruments.
Monetary and non-monetary benefits
In keeping with best practices, a Directors & Officers (D&O) Liability insurance policy covering the third-party
liability of the governing bodies has been undersigned.
Reimbursement of expenses
Directors are entitled to reimbursement of the reasonable expenses incurred because of their office on the
basis of the arrangements with the Company.
Treatment/indemnities in case of termination from office
As of the date of approval of this Report, no agreement has been entered into with any of the Directors that
implies indemnity in the event of resignation or removal without just cause or termination of the office following
a takeover bid, nor are there any agreements that provide for the transfer or continuation of non-monetary
benefits in favour of the persons who have left office; in addition, there have been no consulting agreements
with the Directors for a period after termination or agreements providing for compensation for non-compete
commitments.
Remuneration of Directors with specific duties
As of the date of approval of this report, the Directors with specific duties are:
▪ Francesco Caltagirone Chairman and CEO
Chairman of the Sustainability Committee
▪ Adriana Lamberto Floristan Member of the Remuneration and Nomination Committee, of
the Audit Committee of the Sustainability Committee
▪ Annalisa Pescatori Chairwoman of the Remuneration and Nomination Committee
Member of the Audit Committee and the Sustainability
Committee
▪ Benedetta Navarra Chairwoman of the Audit Committee
Member of the Remuneration and Nomination Committee and
Sustainability Committee
Director’s Report 2024 Cementir Holding NV | 96
(i) Remuneration of the Chairman and CEO
With reference to the remuneration of the Chairman and CEO Francesco Caltagirone, the General Meeting of
22 April 2024 confirmed with broad consensus the remuneration policy and remuneration already in force and
unchanged from the previous term of office, as detailed here below and in the table in 2.2.1.
Fixed component
The fixed component is EUR 1.8 million per year before taxes, payable on a monthly basis.
Variable component
The variable components for 2024 were estimated at EUR 5.422 million, before tax. The achievement was
calculated as 2% of Net Operating Cash Flow.
(ii) Remuneration for participation in Board Committees
The General Meeting of 22 April 2024 approved the proposed Remuneration Policy and established an
additional annual remuneration for participation in the Board Committees in addition to that approved for the
office of Director and specifically, as detailed in the table below:
▪ For each position held by the Non-Executive Directors as Chairman of the Remuneration and Nomination
Committee and the Audit Committee, a fixed annual compensation of EUR 30,000, before tax and any
statutory surcharges;
▪ For the other members of the Remuneration and Nomination Committee and the Audit Committee, a fixed
annual compensation of EUR 20,000 for each office held, before tax and statutory surcharges;
▪ for the Non-Executive Directors who are members of the Sustainability Committee an attendance fee of
EUR 1,000 for each meeting they attend.
***
Information on the compliance of remuneration with the Remuneration Policy and how the
performance criteria have been applied
In general, the practice applied by the Company is in line with the 2024 Remuneration Policy. In 2024, in fact,
there were no deviations from the 2024 Remuneration Policy.
It is confirmed that the implementation of the 2024 Remuneration Policy has contributed to the creation of long-
term sustainable value, as occurred also in previous years and to an increasing extent. The individual
objectives assigned to the recipients of variable remuneration, in fact, are closely linked to the strategic
objectives of the 2024-2026 Business Plan, which identify, among other things, the sustainability roadmap as
one of the main interests to be pursued. As regards the recipients of the STI and LTI plans, these are
objectively measurable and pre-determined targets, the achievement of which influences variable
remuneration to the extent they have been achieved. As for the Directors, the Remuneration Policy provides
for a variable component for the Executive Director only, who is also the representative of the majority
shareholder and himself a substantial shareholder. This determines the implicit and automatic coincidence of
the interests and objectives of the Executive Director with those of all shareholders, including minority
shareholders, of the Company and, ultimately, the creation of long-term value.
PART II – COMPENSATION PAID IN FINANCIAL YEAR 2024
Compensation paid to the members of the Board of Directors.
The table below shows the compensation paid in Financial Year 2024, for any reason and in any form, by the Company. There is no compensation paid by subsidiaries
of the Cementir Group to the members of the Board of Directors. It should be noted that the remuneration paid in the affiliates is disclosed within the context of the
report on remuneration of the parent company Caltagirone S.p.A., published in accordance with the provisions of law applicable to listed companies, to which reference
should be made.
Director’s Report 2024 Cementir Holding NV | 98
YEAR 2024
(EUR ’000)
Fixed Remuneration
Variable
compensation
(non-equity)
Non
monetary
benefits
Other
remuneration*
Total
Percentage of fixed
and variable
remuneration
Director's name, position
Attendance
fee
Board of
Directors
Remuneration
approved by the
Shareholders'
Meeting or the
Board of
Directors
Compensation
from
employment
Compensation
for
participation
in committees
Committee
Attendance
Fee
Bonuses and
other
incentives
BOARD OF DIRECTORS
Francesco Caltagirone, Chairman of the Board
of Directors and CEO***
4
1,805
80
5,422
18
7,329
74% variable
remuneration
26% fixed
remuneration
Alessandro Caltagirone, Non-Executive
Director and Vice-Chairman
4
5
9
100% fixed
remuneration
Azzurra Caltagirone, Non-Executive Director
and Vice-Chairman
5
5
10
100% fixed
remuneration
Saverio Caltagirone, Non-Executive Director
5
5
10
100% fixed
remuneration
Fabio Corsico, Non-Executive Director*
4
5
260
269
100% fixed
remuneration
Annalisa Pescatori, Independent Non-Executive
Director, Chair of the Remuneration and
Nomination Committee, member of the Audit
Committee and the Sustainability Committee
5
5
50
3
63
100% fixed
remuneration
Benedetta Navarra, Independent Non-Executive
Director, Chair of the Audit Committee, member
of the Remuneration and Nomination Committee
and the Sustainability Committee
5
5
50
3
63
100% fixed
remuneration
Adriana Lamberto Floristan, Senior Non-
Executive Independent Director, member of the
Audit Committee, member of the Remuneration
and Nomination Committee and the Sustainability
Committee
5
5
40
3
53
100% fixed
remuneration
KEY MANAGEMENT
Key Executives:**
4,358
1,948
488
6,795
29% variable
remuneration
71% fixed remuneration
TOTAL:
37
1,840
4,439
140
9
7,370
506
260
14,601
* Consultancy contract
** Including Group COO, Group CFO, Heads of Region and Business Unit Managing Directors
*** Also holds the position of Chairman of the Sustainability Committee for which he receives no remuneration
Director’s Report 2024 Cementir Holding NV | 99
YEAR 2023
(EUR ’000)
Fixed Remuneration
Variable
compensation
(non-equity)
Non
monetary
benefits
Other
remuneration*
Total
Percentage of fixed
and variable
remuneration
Director's name, position
Attendance
fee
Board of
Directors
Remuneration
approved by the
Shareholders'
Meeting or the
Board of
Directors
Compensation
from
employment
Compensation
for
participation
in committees
Committee
Attendance
Fee
Bonuses and
other
incentives
BOARD OF DIRECTORS
Francesco Caltagirone, Chairman of the Board
of Directors and CEO***
6
1,805
80
4,367
18
6,277
70% variable
remuneration
30% fixed
remuneration
Alessandro Caltagirone, Non-Executive
Director and Vice-Chairman
6
5
11
100% fixed
remuneration
Azzurra Caltagirone, Non-Executive Director
and Vice-Chairman
6
5
11
100% fixed
remuneration
Saverio Caltagirone, Non-Executive Director
5
5
10
100% fixed
remuneration
Fabio Corsico, Non-Executive Director*
6
5
260
271
100% fixed
remuneration
Annalisa Pescatori, Independent Non-Executive
Director, Chair of the Remuneration and
Nomination Committee, member of the Audit
Committee and the Sustainability Committee
4
3
33
1
41
100% fixed
remuneration
Benedetta Navarra, Independent Non-Executive
Director, Chair of the Audit Committee, member
of the Remuneration and Nomination Committee
and the Sustainability Committee
4
3
33
1
41
100% fixed
remuneration
Adriana Lamberto Floristan, Senior Non-
Executive Independent Director, member of the
Audit Committee, member of the Remuneration
and Nomination Committee and the Sustainability
Committee
6
5
27
2
40
100% fixed
remuneration
DIRECTORS LEAVING OFFICE DURING 2023
Edoardo Caltagirone, Non-Executive Director
0
2
2
100% fixed
remuneration
Paolo Di Benedetto, Senior Independent Non-
Executive Director, member of the Audit
Committee and member of the Remuneration
and Nomination Committee
2
2
13
17
100% fixed
remuneration
Chiara Mancini, Independent Non-Executive
Director, Chair of the Remuneration and
2
2
17
1
22
100% fixed
remuneration
Director’s Report 2024 Cementir Holding NV | 100
Nomination Committee, member of the Audit
Committee and the Sustainability Committee
Veronica De Romanis, Independent Non-
Executive Director, Chair of the Audit Committee
and member of the Remuneration and
Nomination Committee and the Sustainability
Committee
2
2
17
1
22
100% fixed
remuneration
KEY MANAGEMENT
Key Executives:**
3,999
1,787
493
6,279
28% variable
remuneration
72% fixed
remuneration
TOTAL:
49
1,843
4,079
140
6
6,154
512
260
13,043
* Consultancy contract
** Including Group COO, Group CFO, Heads of Region and Business Unit Managing Directors
*** Also holds the position of Chairman of the Sustainability Committee for which he receives no remuneration
Director’s Report 2024 Cementir Holding NV | 101
Stock options assigned to the members of the Board of Directors, to general managers and to the
other Key Executives.
There are no stock-option plans for members of the Board of Directors nor for sake of completeness for the
General Manager, other Key Executives or employees of the Company.
Incentive plans based on financial instruments, other than stock options, for members of the Board of
Directors, General Managers and other Key Executives.
There are no incentive plans based on financial instruments other than stock options (restricted shares,
performance share, share plan, etc.); for members of the Board of Directors, nor for sake of completeness for
the General Manager, other Key Executives or employees of the Company.
During the year, the Group did not grant any new loans to Directors while it has a loan receivable for a loan to
a Key Executive as at 31 December 2024.
The following table shows a comparison of the total remuneration of Directors over the last five years, based
on Cementir Holding N.V. Directors in office as at 31 December 2024.
Board of Directors (thousands of Euro)
2024
2023
2022
2021
2020
Francesco Caltagirone, Chairman of the Board of Directors and CEO
7,329
6,277
5,576
5,213
5,325
Alessandro Caltagirone, Non-Executive Director and Vice-Chairman
9
11
10
10
9
Azzurra Caltagirone, Non-Executive Director and Vice-Chairman
10
11
10
10
10
Saverio Caltagirone, Non-Executive Director
10
10
10
10
10
Fabio Corsico, Non-Executive Director*
269
271
270
270
234
Annalisa Pescatori, Independent Non-Executive Director, Chair of the
Remuneration and Nomination Committee and member of the Audit
Committee and the Sustainability Committee***
63
41
Benedetta Navarra, Independent Non-Executive Director, Chair of the
Audit Committee and member of the Remuneration and Nomination
Committee and the Sustainability Committee***
63
41
Adriana Lamberto Floristan, Senior Independent Director Non-
Executive Director, member of the Audit Committee, member of the
Remuneration & Nomination Committee and member of the
Sustainability Committee**
53
40
9
Directors leaving office in 2023 (thousands of Euro)
2024
2023
2022
2021
2020
Edoardo Caltagirone, Non-Executive Director
-
2
5
8
10
Paolo Di Benedetto, Senior Independent Non-Executive Director, member of the Audit
Committee and member of the Remuneration and Nomination Committee
-
17
50
49
49
Chiara Mancini, Independent Non-Executive Director and Chair of the Remuneration
and Nomination Committee and member of the Audit Committee and the Sustainability
Committee
-
22
62
60
60
Veronica De Romanis, Independent Non-Executive Director, Chair of the Audit
Committee and member of the Remuneration and Nomination Committee and the
Sustainability Committee
-
22
62
60
60
"* Include consulting agreement
** Director until 5 October 2019 and again from 21 April 2022
***Director from 20 April 2023
Director’s Report 2024 Cementir Holding NV | 102
Company results (millions of Euro)
2024
2023
2022
2021
2020
EBIT
262.0
278.3
204.4
197.8
157.2
Average fixed remuneration of an FTE (EUR)
2024
2023
2022
2021
2020
Average fixed remuneration of an FTE
68,711
66,619
64,072
58,841
62,915
Internal pay ratio
The internal pay ratio is a relevant factor to be considered in the assessment of the definition and
implementation of the Remuneration Policy, in accordance with the Code.
The pay ratio for the Chief Executive Officer in relation to the average remuneration of all employees of Group
companies during 2024 is 107:1. This ratio consists of the CEO’s total direct compensation during 2024 of
EUR 7,329 thousand as reported in the table reporting Total direct compensation, pension and other benefits
in this appendix, compared to the average compensation of all employees. The average compensation of all
employees was calculated from the numbers as reported in Note 24.
In the previous five years, the ratio was:
2024
2023
2022
2021
2020
Pay Ratio
107
94
87
89
85
The average remuneration of each employee is EUR 68,711, which represents the total cost of EUR 211,768.4
thousand for the total 3,082 employees.
As can be seen from the above figures, the internal pay ratio is represented by comparing the remuneration
of the sole Executive Director, as well as Group Chairman and CEO, with the average remuneration of
personnel of all levels operating throughout the Group. It should be noted that the Cementir Group has offices
across the world and, as well known, the geographical location has a strong impact on the rules and measures
of remuneration with a consequent influence on the following internal pay ratio.
Director’s Report 2024 Cementir Holding NV | 103
RISKS AND UNCERTAINTIES
INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM
The Cementir Group's Internal Control and Risk Management System is defined as the set of tools,
organisational structure, procedures and company rules to guarantee, through an adequate process of
identification, measurement, management and monitoring of the main risks, correct and consistent business
management with objectives set in terms of:
• compliance with laws and regulations;
• safeguarding of corporate assets;
• operating activity effectiveness and efficiency;
• reporting accuracy and completeness.
The Internal Control and Risk Management System adopts a "top-down" and "risk-based" approach that starts
from the definition of the Cementir Group's Business Plan. It ensures that the main risks are identified,
assessed and monitored taking into account each business unit, to create a fully integrated risk management
process. Risks are assessed with quantitative and qualitative tools considering both the probability of
occurrence and the impacts that would be generated in a given time horizon if the risk were to occur. It also
ensures that all necessary measures are taken to control risks that could threaten the Group's assets, its ability
to generate profits or achieve its objectives.
Roles and responsibilities in risk management have been defined starting from the Company's Board of
Directors, which defines strategy, policy and risk appetite, supported by the Audit Committee and the
Sustainability Committee. In addition, management teams from the group companies are involved, with
responsibility for risk management within their area of expertise.
Below is a summary of the people and bodies involved and their responsibilities:
• The Board of Directors plays the central role, defining the Group's risk appetite, the nature and level
of risk. In addition, it carries out an assessment of the risks related to climate change ensuring the
constant compatibility of management and strategic objectives.
• The Audit Committee and the Sustainability Committee (corporate bodies relevant in the risk
definition process) support the Board of Directors, subject to a favourable opinion, in the definition and
management of risks;
• CEO & Chairman: implements the general guidelines of the Board of Directors, ensuring the
identification, management and monitoring of the main risks;
• Risk owners, or the first level of control, are primarily responsible for internal control and risk
management activities;
• Finally, Risk Management and Internal Audit are the main responsible for the internal control and
risk management system (second and third level of control). They are responsible for verifying that the
Internal Control and Risk Management System is functioning and adequate with respect to the size
and operations of the Group, verifying, in particular, that the Management has identified the main risks,
that they have been evaluated in a consistent manner and that the appropriate mitigation actions have
been defined and implemented.
Director’s Report 2024 Cementir Holding NV | 104
The Cementir Group's Internal Control and Risk Management System is integrated into the Group's
organisational, administrative, accounting and governance structure and has been prepared on the basis of
the principles laid down by the Enterprise Risk Management - Integrated Framework, an international standard
developed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO Report), also
ensuring greater detail in the identification of the risks of the companies and Group and integration with the
results of the Audit activities. The methodology followed involves an iterative process consisting of the following
steps:
• Risk identification: the process starts with the definition of the Industrial Plan and focuses on the main
risks that could compromise the achievement of the Group's objectives;
• Risk assessment: for each identified risk, management gives an inherent risk assessment (in the
absence of controls/mitigation actions), in terms of probability and impact during the horizon of the
Industrial Plan, using a 5-level assessment system (scoring):
- Impact: scale from 1 (Negligible) to 5 (Extreme);
- Probability: scale from 1 (Rare) to 5 (More than Likely)
• With regard to impact, three parameters are considered: economic (quantitative), operational
(qualitative), reputational (qualitative). Management at Region and Group level assesses the potential
impacts and likelihood of major risks that could have a material adverse effect on the company's current
or future operations. For sustainability and climate-related risks, the time horizon was extended to a long-
term view for the analysis of various threats that could jeopardise the implementation of the Group's
climate transition plan;
• Identification and assessment of the adequacy of the existing principals: for each identified risk, all the
controls/actions currently in place for risk mitigation are identified with the management;
• Residual Risk Assessment: taking into account the individual controls for each risk and the relative
adequacy, the residual risk is calculated by applying a uniform calculation methodology to all Group
companies;
Director’s Report 2024 Cementir Holding NV | 105
• Identification of further actions: in the event that the residual risk is higher than the predefined level of
risk appetite, further actions are agreed with management to mitigate the risk and contain it within
acceptable levels. The initiatives are taken promptly and within budget limits, to effectively contribute
to risk mitigation;
• Risk mitigation: Mitigation strategies are defined with specific action plans for key risks;
• Reporting: reports are prepared at the company and Group level, showing the main risks and initiatives
taken by management to reduce the risks to acceptable levels;
• Monitoring: the following are reviewed periodically: existing risk assessments, assessment
parameters, and new risks can be identified if necessary.
The model, as described, subject to further and future updates, aims to provide support for the decision-making
and operational processes of the company management, so as to reduce the possibility that specific events could
compromise the Group's ordinary operations or the achievement of its strategic objectives.
To this end, the risk appetite level adopted in relation to strategic risks is consistent with the vision of creating
value, while always respecting the environment and promoting integration with local communities. In relation
to operational risks, the risk appetite level is defined on the basis of the effectiveness and efficiency targets
set by the management.
Provisions for compliance and financial reporting are different. The Group does not accept an assumption of
non-compliance risk for laws and regulations (including those relating to safety), and of possible alterations to
the integrity of financial reporting.
The Cementir Group's Internal Control and Risk Management System is integrated with the Group's
Sustainability Strategy. Starting from 2021 the Cementir Group has launched a project to implement the
recommendations of the TCFD (Task Force on Climate-Related Financial Disclosure) committing to be
transparent on risks and opportunities related to climate change. The identification, assessment and effective
management of risks and opportunities related to climate change are fully integrated into the Group's risk
management process. To promote and improve its climate change disclosure, in 2022, the Group engaged
Standard & Poor's (S&P) to assess physical and transitional climate risks and develop scenario analyses to
support the implementation of the TCFD guidelines. The analysis carried out by S&P showed that the Cementir
Group scored 100% on the overall assessment of the eleven recommendations of the TCFD, which represents
a complete and transparent level of disclosure achieved. Furthermore, the Group is integrating the guidelines
published by the European Union “EU Taxonomy Regulation”, which together with the TCFD constitute the
reference frameworks. For more details, see the paragraph "Main risks to which the group is exposed".
In relation to accounting and financial reporting, the existing Internal Control System ensures its accuracy and
completeness through constantly updated administrative and accounting procedures.
Furthermore, as part of the compliance activities with the COSO structure, during the year, the Internal Audit
function carries out audit activities on the aforementioned procedures to ascertain that the provided key
controls are being correctly applied by the involved company structures. The assessment of the internal control
system on financial reporting provided for by Cementir Group procedures was carried out based on this activity.
On the basis of the activity carried out by the Internal Audit department and the related results, the Audit
Committee assessed the Internal Control and Risk Management System as adequate, effective and
appropriate for dealing with business, operational, environmental, financial and compliance risks.
As of October 2023, the Group has launched the strategic initiative for the digitalisation of Risk Management,
aimed at improving the resilience of the organisation by leveraging advanced technological solutions,
simplifying data-driven risk assessments and implementing real-time monitoring capabilities, promoting a
proactive and agile approach to risk mitigation across all business functions. The digitisation process was
completed during 2024, and the Group Risk Management was updated using the new platform.
Director’s Report 2024 Cementir Holding NV | 106
RISK CATEGORIES
The Group is subject to various risks and uncertainties. The risk library is the basis for the company's risk
assessment process. The most important risks and their categorisation (strategic, operational, compliance,
financial and sustainability) have been listed to facilitate the identification of the main risk categories that may
have an impact on the Group.
The following table provides a non-exhaustive example of key business risks.
Director’s Report 2024 Cementir Holding NV | 107
Director’s Report 2024 Cementir Holding NV | 108
INTERNAL CONTROL SYSTEM FOR FRAUD RISK MANAGEMENT
This risk relates to intentional acts perpetrated by deception by one or more members of management, those
responsible for governance activities, employees or third parties, in order to obtain unlawful advantages. Fraud,
whether false financial reporting or misappropriation of company assets, implies the existence of incentives or
pressure to commit it and the perception of an opportunity to do so.
The intrinsic nature of the Group's business introduces potential vulnerabilities to fraud and corruption, which
can be summarised as follows: (i) fraudulent activities in financial transactions, such as misappropriation of
funds or fraudulent invoicing; (ii) the risks of collusion or conflicts of interest extend to relationships with
suppliers, customers and employees, amplifying the potential for fraudulent activities; (iii) non-compliance with
anti-corruption laws and regulations; (iv) the theft or mismanagement of stock leading to financial loss. The
potential impact of fraud risks, if realised, can result in financial loss, reputational damage, and regulatory
consequences.
MITIGATION ACTIONS
To mitigate the risk of fraud, the Group has implemented a combination of preventive, investigative and
corrective measures to minimise exposure to fraudulent activities, below is an illustration of the main ones.
Internal Audit conducts a thorough analysis of potential fraud risks during the risk assessment phase, when
formulating the audit plan. Priority is given to areas considered at risk, with a focus on the assessment of
identified fraud risks, including the probability of occurrence and possible impacts. All operational and
compliance audits (in particular L. 262) include a preliminary assessment of the ability of the internal control
system to prevent potential fraud. Following the results of the audit, all actions and control measures agreed
with the Management have the primary objective of securing the process from exposure to fraud and thus
making it more effective. In the assessments, all reports emerging from whistleblowing channels and cases of
fraud detected in the last 12 months are also taken into account.
In 2023, the Group adopted a whistleblowing system that can be used on a platform managed by a third party,
to encourage employees and all stakeholders to report suspicious activity without fear of retaliation. Full
information on this system, including details on the channels to be used, can be found on the Group's official
website: https://www.cementirholding.com/it/governance/etica-e-compliance. The mitigation of the risk of fraud
is also guaranteed by the activities conducted by the Ethics Committee (a committee appointed by the Board
of Directors), which on a quarterly basis, analyses the results of the investigative activities carried out by the
Internal Audit and verifies the implementation of disciplinary, organisational and operational actions for each
individual case of violation. The Ethics Committee reports on its work to the Audit Committee and the Board
of Directors. Another important mitigation measure is the adoption and use of a data mining tool called Celonis.
This tool proves to be crucial for spotting unusual patterns or trends in financial transactions. The Group, in
fact, implements segregation of duties as an operational practice, making it difficult for an individual to carry
out and conceal fraudulent activities.
The measures implemented aim to significantly reduce vulnerability to fraud and corruption within operations.
Director’s Report 2024 Cementir Holding NV | 109
MAIN RISKS TO WHICH THE GROUP IS EXPOSED
The main types of risks and opportunities to which the Group is exposed are described below.
STRATEGIC RISKS
UNCERTAIN OUTLOOK
DESCRIPTION
IMPACT
MITIGATION ACTIONS
The results of the business activities are highly dependent on the
economic conditions of the countries of operation:
• Inflation is projected to decline gradually in 2025 (with the
exception of Egypt where it is expected to increase), but is
expected to remain above central bank targets in most
economies. Overall inflation in world economies is expected
to be 4.5% in 2025, with the advanced economies that are
expected to return to their inflation targets sooner than
emerging market and developing economies.
• Monetary policy will remain cautious until there are clear signs
of a sustained reduction in underlying inflationary pressures.
• The slowdown in China's economy poses a significant risk to
global output growth.
• Global growth is projected to be 3.3% in 2025. In the US,
growth is expected to be 1.6% in 2025, while in Europe it is
expected to be around 1.3%, registering modest growth
.
Conflicts between Russia and Ukraine, along with those in the
Middle East, continue to have a significant impact on the global
economic landscape. Simultaneously, the growing rivalry between
the United States and China is expected to influence global
companies' strategies, particularly in relation to supply chains and
markets.
Demand for construction materials is fundamentally driven by
economic growth. These changes in demand may affect volumes,
selling prices and the structure of the industry.
The Group
estimated a
potential
reduction in
sales volumes
The Group, with the support of the relevant
departments:
• actively monitors market conditions in
order to anticipate any adverse scenarios.
• Optimises the product portfolio for growth
by increasing profitable low-carbon
solutions.
• aims to maintain strict cost discipline and
stable prices to ensure a high contribution
margin.
• establishes long-term contracts to secure
favourable logistics and energy costs.
GEOPOLITICAL RISK
DESCRIPTION
IMPACT
MITIGATION ACTIONS
The Group operates on five continents and is exposed to political
risks both locally and globally. The geopolitical instability of some of
them (e.g. Turkey and Egypt) may influence demand trends.
The ongoing conflict between Israel and Palestine, which has now
spread to other states in the Middle East, together with the
continuing conflict between Ukraine and Russia, is currently the
main factor in international geopolitical instability.
The medium-term outlook remains highly uncertain, with numerous
challenges hampering efforts to identify a path towards de-
escalation.
Given the strategic locations of the conflicts, the impacts on the
global economy are substantial and are expected to result in the
following:
•
Significant uncertainty for the markets;
•
Likely increases in transportation and logistics costs, affecting
the Group’s procurement and sales processes;
•
Sales bans to sanctioned countries affecting Group’s export
volumes;
•
An increase in oil prices could slow down the global economy
and drive inflation higher;
•
Heightened social instability.
Impact on the
Group's
economic/
financial results
Continuous monitoring of the environment,
mainly focused on the critical
political/institutional developments and
regulatory aspects which can potentially affect
the business, but the geographical
differentiation helps to limit the exposure to any
particular market and currency.
Alternative markets.
Director’s Report 2024 Cementir Holding NV | 110
FINANCIAL RISK
CURRENCY EXCHANGE RATE RISK
DESCRIPTION
IMPACT
MITIGATION ACTIONS
The Group operates with ten different currencies, and
fluctuations in exchange rates may impact the Group’s
business, operational results, and financial condition. Among
these, the Turkish Lira and the Egyptian Pound are the principal
currencies influenced by a significant depreciation in the last
years.
The Turkish lira is the currency that has depreciated
significantly recently, by about 27% since September 2023
(September 2023: €/TRY 28.86 – January 2025: €/TRY 36.70).
In March 2024, the Turkish central bank raised the rate to 50%
to avoid further devaluation, marking a change of course after
two years of monetary easing in which the reference rate had
been reduced to 8.5% from 19% in 2021. As of April 2022, the
Turkish economy is classified as hyperinflationary, according to
the criteria outlined in “IAS 29 - Financial Reporting in
Hyperinflationary Economies”.
The Egyptian pound also suffered a significant devaluation,
weakening by around 58% since September 2023 (September
2023: €/EGP 33.01 – January 2025: €/EGP 52.29).
These unfavourable changes in the exchange rates used to
translate these currencies into the reporting currency have had
and will continue to have an impact on the Group’s consolidated
results.
Unfavourable
exchange rate
changes could
continue to
adversely affect
Group profits
The Group continuously monitors currencies in
order to seize the opportunities offered by hedging
transactions.
To mitigate potential losses, the Group creates a
balance between bank accounts in local currency
and bank accounts in hard currency.
Director’s Report 2024 Cementir Holding NV | 111
OPERATIONAL RISKS
TALENT AND RETENTION MANAGEMENT
DESCRIPTION
IMPACT
MITIGATION ACTIONS
Failure to adequately attract, retain and develop talent could
result in the loss of key resources, preventing the Group from
executing its strategy. The Group is currently grappling with a
labour shortage that is affecting some positions.
Difficulty in
achieving strategic
objectives due to a
lack of talent.
The Group seeks to attract new talent through
specific actions, such as international mobility and
career development campaigns, such as the
Talent Program initiatives launched in 2022 and
the Middle Management Program launched in
2024.
In May 2024, the global "Your Voice" survey was
carried out to assess staff engagement across the
Group. Compared to the previous edition, there
was a 2% increase in employee participation rate
compared to the 2022 figures (2024 = 98%) and a
1% increase in employee engagement compared
to the 2022 figures (2024 = 58%).
Among the initiatives launched by the Group to
mitigate the risk there is also:
•
continuing education activities (e.g. Linkedin
Learning and the Cementir Academy);
•
Specific actions related to internal
communication, employer branding and
relations with local institutions, schools and
universities (e.g. the Concrete programme in
Turkey);
•
Leadership programme in the Group's main
subsidiaries (Aalborg Portland, CCB and
Cimentas);
•
Constructive relations with unions
representing employees: the Group has also
updated the collective agreement with the
European Working Council for the next four
years;
•
Constant updating of succession plans to
ensure business continuity.
HEALTH AND SAFETY
DESCRIPTION
IMPACT
MITIGATION ACTIONS
The Group's activities operate in a sector that presents
inherent health and safety risks, including, for example,
driving heavy vehicles, working at height, working in confined
spaces, handling live equipment, etc.
Failure to ensure safe workplaces could result in a
deterioration in the Group's safety performance and
consequent negative regulatory actions or legal liabilities.
Health and safety incidents could have a significant impact
on the Group's operational and financial performance, as well
as its reputation.
Risk of accidents due to unsafe behaviour or conditions,
which may cause consequences on the health of workers
and/or problems in production processes.
The Group has defined a specific roadmap to 2030, focusing
on increasing employee awareness and involvement and
strengthening internal procedures and related controls.
Impacts:
-
Economic
-
Organisational
-
Reputational
-
Relations with
local
communities
-
Workers' health
Improvement of the Group's safety culture by
sharing best practices and common rules across
the Group (e.g. Golden Rules).
Regular risk assessment by all plants to
eliminate/mitigate risks (annual action plans).
Group monitoring of H&S performance and
effectiveness of corrective measures.
Periodic verification of the effectiveness of the
main H&S processes for all plants (e.g. work
permits, incident management, etc.).
Variable pay of managers based on H&S
indicators and performance.
Director’s Report 2024 Cementir Holding NV | 112
CYBER SECURITY
DESCRIPTION
IMPACT
MITIGATION ACTIONS
The Group increasingly relies on information technology
and cloud services to manage and support its operations
and relationships with suppliers and customers.
This trend increases a company's exposure to cyber
attacks, security breaches, data loss, data theft (including
confidential data), also making it more vulnerable to
damage caused by uncontrollable events (e.g. power
outages, natural disasters, network failures).
In recent years, the frequency, complexity and impact of
cyber attacks have increased compared to the past.
The Group is taking prompt action to mitigate and reduce
the effects of this risk.
Looking to the future, information technology will play a key
role in the Group's strategy, resulting in further exposure to
related risks.
▪
Fraud
▪
Data loss
▪
Privacy
impacts
▪
Business
interruption
▪
Reputational
damage
▪ Strengthening of the network infrastructure
▪ Strengthening of protection systems
▪ Constant updating of internal procedures
▪ Continuous training for all staff to
strengthen the corporate culture on cyber
security issues.
COMPLIANCE RISKS
COMPLIANCE
DESCRIPTION
IMPACT
MITIGATION ACTIONS
These are risks related to compliance with applicable
regulations (antitrust, anti-corruption, GDPR, Legislative
Decree 231/2001).
Potential
violations of
laws and
regulations
In relation to these risks, the Legal Department
implements targeted programs with guidelines,
procedures and training to ensure compliance with the
above regulations. The Organisation and Control
Models required under Legislative Decree 231/2001
are periodically updated.
The Internal Audit function carries out specific audits
on compliance with regulations.
Director’s Report 2024 Cementir Holding NV | 113
CLIMATE CHANGE
The cement industry's ability to reduce its CO
2
emissions and respond to climate change has become a focal
point for investors. In 2021, the Cementir Group has launched a project to implement the recommendations of
the TCFD (Task Force on Climate-Related Financial Disclosure) committing to be transparent on risks and
opportunities related to climate change. Cementir is also committed to ensuring the transparency of its climate-
related risks and opportunities in line with the taxonomy required by the European Union. The identification,
assessment and effective management of risks and opportunities related to climate change are fully integrated
into the Group's risk management process.
As suggested by the TCFD, the Group monitors the risks and opportunities arising from the evolution of
transition scenarios and the evolution of physical variables.
Physical variables are divided into two categories of risk:
(a) Acute: related to the occurrence of extreme weather conditions such as cyclones, hurricanes or floods.
Acute physical phenomena, in the various cases, are characterised by considerable intensity and a
frequency of occurrence that is not high in the short term, but which, considering long-term scenarios,
sees a clear upward trend;
(b) Chronic: refers to gradual and long-term changes in climate patterns (e.g., sustained high
temperatures) that can cause sea-level rises or chronic heat waves.
With regard to the energy transition process, towards a progressive reduction of carbon emissions, there are
risks and opportunities linked to changes in the regulatory, technological, market and reputational context.
The Group has decided to align itself to the TCFD framework to clearly represent the types of risks and
opportunities by indicating how each of them should be managed. The effects were assessed over three time
horizons: the short term (1-3 years), linked to the implementation of the Industrial Plan; the medium term until
2030 during which it will be possible to see the effects of the energy transition; the long term until 2050, during
which the Group undertakes to achieve net-zero emissions throughout its value chain. As the TCFD states,
the process of disclosing risks and opportunities related to climate change will be gradual and incremental
from year to year.
Director’s Report 2024 Cementir Holding NV | 114
CHRONIC AND ACUTE PHYSICAL PHENOMENA:
The Group’s plants are located in locations with overall moderate levels of physical risk over the time horizon
to 2050, as shown in the following table.
Status at 2024
Director’s Report 2024 Cementir Holding NV | 115
Status at 2050
Strategically, the Group’s geographical diversification provides a high degree of resilience. The Group adopts
business continuity management processes that ensure an adequate level of plant maintenance in order to
limit and/or reduce damage to corporate assets and ensures the resilience of the business and the restoration
of operations in the event of force majeure events.
In some areas (Belgium, Turkey, Egypt) there is also significant exposure to water stress
Director’s Report 2024 Cementir Holding NV | 116
TIME
HORIZON
DESCRIPTION
IMPACT
MITIGATION ACTIONS
SDGs
PHYSICAL RISK
CHRONIC
RISK
Medium Term
Water stress
due to global
warming
The Group operates in
certain areas defined as
under high water stress,
with the risk of increased
supply costs.
As part of its climate commitments, the
Group has defined its policy on water
management. Maximising its
reuse/recycling, minimising withdrawals
and consumption (including losses) and the
implementation of efficient operating
practices are the main areas of
intervention, starting with those
geographical areas with the greatest water
scarcity.
The Group has set targets to improve
specific water consumption in cement
production (water consumption (litres) /
TCE (ton of cement equivalent)).
In 2024, the targets were updated and now
call for a 30% reduction in specific water
consumption by 2030, compared to the
2019 value (previously the targets called
for a 25% reduction). The target to reduce
specific water consumption in high water
stress areas remains unchanged at 25 per
cent by 2030, compared to the 2019 value.
In addition, the Group is committed to
maximising water reuse and recycling,
minimising water withdrawals and
consumption (including leakage) and
implementing efficient operating practices,
with a priority for regions facing the most
severe water stress.
In 2022, by becoming a signatory to the
WASH Pledge, the Group committed to
ensuring access to WASH (water,
sanitation and sanitation) at an appropriate
level of standard for all employees and
contractors at all locations under direct
control, supporting partners across value
chains and communities. Compliance and
progress of WASH action plans are
monitored periodically.
TRANSITION RISKS AND RELATED OPPORTUNITIES
In recent years, the whole Group has been actively engaged in pursuing a transition to a low-carbon economy
by defining a 10-year Roadmap.
Related risks and opportunities are presented in the following table:
Director’s Report 2024 Cementir Holding NV | 117
TIME
HORIZON
DESCRIPTION
IMPACT
MITIGATION ACTIONS
SDGs
TRANSITION RISK
Medium – Long
Term
RISK/
OPPORTUNITY
Carbon Capture
“CCS”
TECHNOLOGY
Technology is the main driver to significantly reduce
the company's CO
2
emissions in the medium to long
term. The adoption of breakthrough technologies is
essential to achieve 'net zero emissions' cement
production.
The Company places emphasis on the development
and implementation of carbon capture and storage
(CCS) technology as a key component in achieving its
CO
2
emission reduction targets. Currently, the Group is
exploring various opportunities, mainly in Denmark and
Belgium.
In October 2024, the carbon capture and storage
project developed by Aalborg Portland and Air Liquide
was selected by the European Commission to receive
a EUR 220 million contribution under the EU
Innovation Fund.
The project, which is scheduled to be operational by
the end of 2028, will reduce emissions from Aalborg
Portland by approximately 1.5 million tons per year.
Previously, Aalborg Portland's target was to capture at
least 400,000 tons of CO
2
per year, thereby
contributing to both the company's emission reduction
targets and the Danish government's objectives to
reduce Denmark's greenhouse gas emissions by 70%
by 2030 compared to 1990 levels.
The know-how acquired by the Group in this area can
be used to develop a carbon capture and storage
system at its Belgian subsidiary, CCB, from 2032.
The successful implementation of this innovative
technology also depends on exogenous factors outside
the company's control, such as CO
2
transport and
storage infrastructure, public acceptance and climate
regulations, which could directly influence and
potentially delay the project.
Additionally, a direct risk associated with this new
technology is its performance, as no facility to date has
successfully operated it worldwide. If the technology
does not function as expected, it could compromise the
planned CO
2
reductions.
Continued support for
research and innovation for
the development of CCS and
the use of CAPEX/OPEX for
the full industrialisation of
these technologies.
Group involvement in various
research projects aimed at
facilitating the implementation
of carbon capture and storage
(CCS) in its operations,
including through the
installation of pilot plants.
Director’s Report 2024 Cementir Holding NV | 118
TIME
HORIZON
DESCRIPTION
IMPACT
MITIGATION ACTIONS
SDGs
Short Term
RISK
Reputational
risk
REPUTATION
According to the Global Cement and Concrete
Association, the cement industry is responsible for
about 7% of global CO
2
emissions. The risk of being
perceived as a major carbon emitter by the public
could reduce the company's attractiveness to
stakeholders.
This reputational risk is further amplified by
stakeholders' growing focus on the achievement and
consistency of the Group’s climate targets, as well as
heightened attention on green claims, especially in
light of the new European legislation on the matter.
Cementir is committed to
ensuring that its targets are
always aligned with the latest
scientific developments.
In this regard, in February
2024, the Group received
validation of its short- and
long-term climate targets by
the Science Based Target
initiative (SBTi), which
confirmed their consistency
with the 1.5°C scenario. In
addition, SBTi approved
Cementir's overall net zero
emissions target by 2050.
Cementir is actively engaged
with ESG rating agencies to
ensure accurate assessment
and transparent
communication with
stakeholders.
Long Term
RISK/
OPPORTUNITY
Introduction of
new CO2
emission laws
and regulations
POLICY & REGULATION
Following the Paris Climate Agreement (COP21),
signatory countries are required to commit to an
emission reduction path. It is expected that this will
lead to increased regulations, thereby increasing the
costs associated with CO
2
emissions.
Carbon prices linked to emissions trading systems
(e.g., ETS), carbon taxes, and other restrictive policies
are expected to increase in the future as governments
implement measures to reduce greenhouse gas
emissions in line with the Paris Agreement.
The speed and magnitude of the potential increase in
carbon prices due to the new regulations is uncertain
and will vary from country to country.
This risk was assessed through different price
scenarios (high, medium and low) based on carbon
price projections in each country, taking into account
the introduction of carbon capture and storage (CCS)
technology from 2030.
At the same time, the transition to a decarbonised
economy, driven by new standards and regulations,
could increase the Group's demand for low-carbon
products.
The Group minimises its
exposure to the risk of new
taxes and regulations by:
• implementing its
Roadmap for
Sustainability, which
aims to achieve carbon
neutrality by 2050;
• developing low-carbon
products that meet the
requirements of the new
regulations;
• maintaining a constant
dialogue with national
and international bodies.
Medium Term
RISK
OPPORTUNITY
CBAM – Carbon
Border
Adjustment
Mechanism and
ETS reports
POLICY & REGULATION
If initiatives such as the 'Carbon Border Adjustment
Mechanism' (CBAM) are not sufficiently designed to
protect EU competitiveness, the cement business
could face price pressure due to imports from regions
with less stringent CO
2
regulations. On the contrary,
the introduction of this tax could create a competitive
advantage over other non-EU cement companies in
terms of price. In recent years, the quantities of cement
imported into Europe have increased compared to the
past.
Monitoring the evolution of
regulations with the support of
international bodies
(European Union,
Governmental Authorities,
Cembureau, GCCA) and
consequent transposition to
the new rules.
The Industrial Roadmap will
support the Group in
becoming a resilient company
through a low-carbon
economy.
In 2024, a Group-wide CBAM
procedure was issued.
Director’s Report 2024 Cementir Holding NV | 119
TIME
HORIZON
DESCRIPTION
IMPACT
MITIGATION ACTIONS
SDGs
Medium Term
RISK
Scarcity of raw
materials
MARKET
The supply of alternative raw materials, such as fly ash
and blast furnace slag, has become increasingly
critical due to declining steel production and the
gradual closure of coal-fired plants. In the medium
term, the phasing out of coal-fired power plants in
Europe could lead to a fly ash shortage. At the same
time, global demand for these materials continues to
grow, making it more difficult to secure long-term
contracts and increasing the potential risk of supply
shortages.
Another strategic material for the achievement of the
Group's objectives is calcined clay, which is essential
for the production of FUTURECEM and for the
reduction of the clinker ratio. Today, there are a limited
number of suppliers. With the development of low-
carbon products, the demand for these materials will
grow, making the Group more dependent on their
prices and availability.
In order to reduce the
shortage of these materials,
the Group is securing its
supply through long-term
contracts; search for new
suppliers and partial
replacement of fly ash with
similar materials available on
the market (e.g. oxytone).
Another strategy implemented
is to secure clay quarries for
the production of
FUTURECEM.
Medium Term
RISK
Biomass
shortage
MARKET
Biomass plays a strategic role in implementing the
Group's Sustainability Roadmap and ensuring
compliance with European emission regulations.
In the medium to long term, the increasing demand for
high-quality biomass could cause supply difficulties
and price increases.
In addition, the use of biomass in the Group's plants
will require local investments for improvements and/or
modifications of the facilities, which are necessary to
increase their use.
In order to reduce the
shortage of these fuels, the
Group is securing its supply
through long-term contracts.
Short term
OPPORTUNITY
Development of
low emission
impact
products
MARKET
Innovation is a key factor in the long-term success of
the company developing low-carbon products. To meet
market demands, the Cementir Group has developed
new types of cement, such as FUTURECEM, which
reduce CO2 emissions by 30% compared to traditional
cement, and D-Carb, which reduces the CO2 footprint
by 15% compared to traditional white cement.
The Group is also promoting a more environmentally
friendly ready-mixed concrete (RMC) offering along the
entire value chain and has introduced a new product
portfolio under the C-Green and UNI Green brands
with a low carbon footprint.
The Group meets the needs
of customers along the value
chain by developing and
delivering products, solutions
and technologies that address
the key challenges facing the
construction industry.
The Group continuously
develops and introduces new
low emission products:
increasing the use of
decarbonised material (e.g.
blast furnace slag); producing
limestone cement or cement
using fly ash;
In addition, the Group aims to
reduce the clinker ratio by
using FUTURECEM and
other new products.
Director’s Report 2024 Cementir Holding NV | 120
TIME
HORIZON
DESCRIPTION
IMPACT
MITIGATION ACTIONS
SDGs
Medium-term
OPPORTUNITY
Recovery and
potabilization of
water removed
in quarry
operations
RESOURCE EFFICIENCY
The recovery and potabilization of the water removed
during the exploitation of the limestone quarries in
Belgium (Clypot and Gaurain) represents an
opportunity, because it allows local communities to
save the aquifer in an area of high-water stress and
allocate it to civil uses.
This recovery increases the company's resilience to
future regulatory changes, reduces the risk of conflicts
with other stakeholders using the same aquifer (e.g.,
villagers, customers), and contributes to the
sustainable management of water resources.
In Clypot, the entire system has been operational since
March 2021, and in 2023, 1,300 megalitres of drinking
water were successfully recovered, treated and
distributed.
As for the Gaurain quarry, an agreement was signed in
2022 with the local authority to carry out a similar water
purification project, with the first investments planned
for 2024.
Upon completion of the Gaurain project, an additional
2,000 megalitres of water per year can be recovered,
further contributing to sustainable water management
and community supply.
Increased water supplies up
to 4,000,000 cubic metres per
year thanks to investments
made in Clypot and Gaurain.
Close collaboration with local
authorities to minimise the
company's impact on the local
community, located in a
water-stressed area.
Medium – Long
Term
OPPORTUNITY
Green Energy
ENERGY SOURCE
As part of the Group's strategy to reduce Scope 2
emissions, it is planned to increase electricity from
renewable sources, either by purchasing or producing
it internally. The Group is assessing the feasibility of
wind turbine and solar panel projects.
Definition of a roadmap to
increase the use of renewable
energy throughout the Group,
entering into purchase and/or
own production agreements
(for example solar panels or
wind turbines).
In this regard, in 2023 the
Group entered into
agreements with Engie and
EtherEnergy for its subsidiary
in Belgium, CCB, reaching a
maximum power that can be
delivered, between wind and
solar, of 25 MWh.
In Denmark, the government
has pledged to obtain 100%
of electricity from renewable
energy sources by 2030.
Aalborg Portland, the Danish
subsidiary, is currently in the
process of obtaining permits
to install two wind turbines.
Medium-term
OPPORTUNITY
Increased
supply of
district heating
in the city of
Aalborg
ENERGY SOURCE
The Aalborg plant recovers excess heat from cement
production to provide district heating to local residents.
In 2023, Aalborg Portland delivered approximately 1
million GJ of energy to the municipality of Aalborg.
According to the engineering project developed by the
Group, the Aalborg plant could improve energy supply
by a further one million GJ reaching 50,000
households.
Negotiations are ongoing with
the municipality of Aalborg to
define the size and increase
of the capacity of the heating
supply.
The Group is also considering
implementing waste heat
recovery at its Belgian
subsidiary.
Director’s Report 2024 Cementir Holding NV | 121
FINANCIAL RISK MANAGEMENT AND INFORMATION RELATING TO FINANCIAL INSTRUMENTS
The Cementir Holding Group is exposed to financial risks in connection with its operations; in particular to
credit risk, liquidity risk and market risk.
Credit risk
Credit risk is related to possible losses that can occur if a counterparty fails to fulfil its obligations.
Credit risk could mainly derive from operating activities, in particular trade receivables from customers. The
Cementir Group has entrusted local management with the regular management of trade receivables on the basis
of specific policies that define the criteria for credit limits, achievement guarantees and payment conditions. Credit
limits are generally defined for each customer after a risk analysis provided by external rating agencies and are
periodically reviewed. Based on these policies, any order that exceeds the agreed credit limits must be reviewed
and individually approved for creditworthiness.
With respect to bank deposits and derivatives, the Group has always worked with leading counterparties, thus
limiting its credit risk in this sense.
All customers are monitored locally, based on their individual features, including their business, distribution
channel, geographical position and any previous financial difficulties. Credit risk is regularly monitored
including by analysing the performance of specific indicators based on variables such as total trade receivables
and past due receivables.
Local Credit Risk Committees periodical meetings, at local level, analyse and discuss the Group’s companies
ageing, credit performance and any specific critical issues.
The Cementir Group establishes provisions for trade receivables, to cover potential losses, on the basis of
regular follow-ups on customer situations.
Liquidity risk
The Group is exposed to liquidity risk in relation to the availability of financing and its access to credit markets
and financial instruments in general. Given the Group's strong financial position and available credit lines, this
risk is remote. However, the Group manages liquidity risk by carefully monitoring cash flows and financing needs.
There is a particular focus on the Group's management to increase operating cash flow and control investments
in both plant and equipment, both intangible and property, naturally safeguarding that required for the technical
development and efficiency of the production plants with assigned cash generation objectives for all Group
entities. Existing credit lines are however deemed adequate to meet any unexpected needs.
Market risk
Market risk is mainly linked to exchange rate and interest rate fluctuations.
Exchange rate risks are systematically monitored at Group level to assess any impact in advance and take
the necessary mitigation actions. Since the purpose is to limit exchange rate risks, when a currency exposure
is identified and the decision to hedge it is made, forward rate agreements are finalised with the banking system
in both the "Forward contract without delivery option" and "Forward contract with delivery option" formats.
Financial instruments must be used exclusively for hedging purposes and must not be traded, where trading
is defined as taking positions where the Group does not have a natural underlying exposure.
Finally, the Cementir Group has variable rate bank loans and is exposed to the risk of interest rate
fluctuations. However, this risk is considered moderate since the loans are currently only in Euros and the
Danish krone and the medium/long-term rate curve is linear. However, the Cementir Group monitors interest
rates and expected times for the repayment of the debt and purchases interest rate swaps as a partial hedge
of the interest rate risk.
For information on financial risks, see Notes 12) and 32) to the consolidated financial statements.
Director’s Report 2024 Cementir Holding NV | 122
OTHER INFORMATION
ALTERNATIVE PERFORMANCE INDICATORS
The Cementir Group uses some alternative performance indicators to enable a better assessment of the
performance of economic management and the capital and financial situation. In line with that established in
the ESMA/2015/1415 guidelines, the meaning and contents of those indicators are noted below.
• EBITDA: is an indicator of operating performance calculated by adding together “EBIT” and “Amortisation,
depreciation, impairment losses and provisions”;
• Net financial debt: represents an indicator of the financial structure and is calculated as the sum of the
items in accordance with Consob Communication 6064293/2006, updated on the basis of Communication
No. 5/21 of 29 April 2021 in implementation of the recommendations contained in paragraph 175 of ESMA
Recommendation 32-382-1138 of 4 March 2021:
- Current financial assets;
- Cash and cash equivalents;
- Current and non-current financial liabilities.
• Net capital employed: is calculated as the total amount of non-financial assets, net of non-financial
liabilities.
ORGANISATION AND CONTROL MODEL PURSUANT TO LEGISLATIVE DECREE 231/2001
On 8 May 2008, the Board of Directors of Cementir Holding approved a new organisational, management and
control model based on a careful analysis of the risk of corporate offences in connection with Group operations.
The model complies with guidance provided by Legislative Decree No. 231/2001, Italian best practice and
Confindustria recommendations.
The Company also adopted a Code of Conduct endorsing the business principles that all company officers and
employees, and anyone working with the company in any capacity, are required to comply with, in pursuing
company business.
Furthermore, the Company appointed the Supervisory Body pursuant to Legislative Decree 231/2001 to carry
out the task of updating and supervising the implementation of the Model adopted by the Company, with the
support of the Internal Audit function for specific initiatives.
The Model has been periodically updated since 2008 to reflect organisational changes, as well as regulatory
updates (new offences added) to Legislative Decree 231.
On 28 June 2019, the Extraordinary General Meeting of the Company decided to transfer its registered office
from Rome to Amsterdam, adopting the legal form of a Dutch Naamloze Vennootschap and changing its name
to Cementir Holding N.V. On 5 October 2019, when all the conditions had been met, the Dutch notarial deed
necessary to transfer the Company’s registered office was signed, effective as of the same date.
As a result of this transfer, from 5 October 2019 the Italian regulations under Legislative Decree 231/2001 no
longer applied to the Company. At the same time, as a result of the transfer, the Supervisory Body set up in
accordance with this law also ceased to exist.
Director’s Report 2024 Cementir Holding NV | 123
Notwithstanding the foregoing, the Company, also in consideration of its own sharing of the principles inspiring
the legislation in question and in general of a sound company management, nevertheless continues to apply
(i) its own Code of Ethics (although this must not be understood as subjecting Cementir Holding or the Group
to the previously applicable legislation) as well as (ii) the Model in consideration of the circumstance that the
Company's operations are carried out in Italy, where Cementir Holding has established its own secondary and
operational office.
On 13 November 2019, the Company’s Board of Directors also appointed an Ethics Committee, made up of the
Group General Counsel and the Company’s Chief Internal Audit Officer, granting this committee powers
equivalent to those of the Supervisory Body.
RELATED-PARTY TRANSACTIONS
With regard to related-party transactions, as defined by IAS 24, the Group did not conduct any atypical and/or
unusual transactions. All business and financial dealings with related parties were conducted on terms
equivalent to those that prevail in arm’s length transactions.
The Group did not conduct any significant or material transactions concerning related-party transactions. For
a detailed analysis of the financial and economic relations with all related parties, please refer to Note 34 of
the consolidated financial statements and Note 31 of the financial statements.
TREASURY SHARES
The number of treasury shares held following the completion of the share buy-back programme (the
“Programme”) in October 2021 has not changed.
It should be noted that under the Programme, between 15 October 2020 and 12 October 2021 (ends included),
3,600,000 treasury shares, equal to 2.2624% of the share capital, were purchased on the Mercato Telematico
Azionario organised and managed by Borsa Italiana S.p.A. at a weighted average price of EUR 8.1432 per
share and for a total outlay of EUR 29,315 thousand.
MANAGEMENT AND COORDINATION
Cementir Holding NV sets its general and operational strategies independently. In particular, the Board of Directors
of Cementir Holding NV has sole responsibility for reviewing and approving strategic, commercial and financial
plans, and for overseeing the adequacy of organisational, administrative and accounting structures.
Director’s Report 2024 Cementir Holding NV | 124
PERSONAL DATA PROTECTION
Also due to the entry into force of the relevant legislation (EU Regulation 679 /2016) as well as following
Legislative Decree 101 of 10 August 2018, the Parent Company has equipped itself with operational tools and
internal regulations to ensure the protection of personal data according to the expected regulatory standards.
Subsequently, it implemented and completed a project to update its policy on the subject and is currently
engaged in strengthening its safeguards, including IT, for the protection of personal data.
Litigation
The Company is responsible for leading the defence in proceedings, of which it is not a party in accordance
with the terms and conditions set out in a settlement agreement with Italcementi S.p.A., relating to the sale of
the shares of Cementir Italia S.p.A. (today Cemitaly S.p.A.), Cementir Sacci S.p.A. (today Italsacci S.p.A.) and
Betontir S.p.A., finalised on 2 January 2018.
Other legal disputes
The dispute filed on January 29, 2017, by the Capital Market Board (CMB), the regulatory and supervisory
body of the Turkish stock exchange, on behalf of Cimentas AS and against Cementir Holding before the Izmir
Court, was definitively closed with the payment by the defendant in favor of Cimentas AS of the equivalent of
6.9 million Euros on January 28, 2025. Since this is a transaction between two companies within the Group, it
has a neutral effect on the consolidated accounts.
Director’s Report 2024 Cementir Holding NV | 125
SUBSEQUENT EVENTS AFTER THE REPORTING DATE
On 11 February 2025, the Parent Company’s Board of Directors approved the 2025-2027 Industrial Plan update,
to whose press release please refer (www.cementirholding.com in the Investors, Press Releases section).
The new Group industrial plan envisages the achievement of the following targets to 2027, which exclude both
the impact of IAS 29 and non-recurring items:
- Revenues increased to around EUR 2 billion, with a compounded annual growth rate (CAGR) of 6-
7%. The Plan anticipates moderate growth in cement sales volumes, with an acceleration in 2025 driven
by increased production capacity in Egypt and a slight recovery in Denmark and Asia Pacific, offset by a
slight decline in Türkiye. Stable or slightly increasing volumes are expected for ready-mixed concrete and
aggregates over the three-year period. Prices are expected to be on average stable or rising with inflation
and include the Danish CO2 emission tax.
- EBITDA at about EUR 465 million, with a compounded annual growth rate (CAGR) of about 5%. A
differentiated trend is expected in the different geographic areas with growth mainly in the Nordic & Baltic
area, Belgium, Asia Pacific, North America and Egypt, while the contribution of Türkiye is expected to
decrease. Plan assumptions include: increased production capacity in Egypt with the restart of the second
production line, increased production efficiencies in Belgium as a result of the upgrade of Kiln 4; the
increase in the cost of electricity and some fuels, and an average annual shortage of about 200,000 tons
of CO2, which includes an increase in 2027 due to the reduction of free emission allowances in European
plants. The EBITDA margin is expected to be slightly lower than in 2023-2024.
- Average annual capex of approximately EUR 86 million directed towards developing production
capacity, maintaining plant efficiency, health and safety and digitisation.
- Additional cumulative sustainability capex of EUR 53 million for projects that will reduce CO2
emissions in line with Group targets. This amount excludes, as mentioned above, the ACCSION project.
- Net cash position of about EUR 700 million at the end of 2027 resulting from a cash generation of
more than EUR 400 million.
Finally, the Plan assumes the distribution of a growing dividend, corresponding to a payout ratio between 20%
and 25%.
In February 2025, Cementir Holding was included for the first time in CDP's prestigious “A List”, a recognition
of strategies and actions implemented to mitigate climate change and promote corporate transparency.
Cementir also maintained its leadership in water management by achieving a score of A- in CDP Water, for
the third consecutive year.
No other significant events occurred after the year ended.
Director’s Report 2024 Cementir Holding NV | 126
MANAGEMENT OPERATING OUTLOOK
The macroeconomic scenario remains characterized by high uncertainty, with weak global growth but differing
trends across regions. The increase in household real incomes, supported by the gradual decline in inflation
and more accommodative financial conditions, is expected to sustain economic activity in the coming months.
However, divergent national dynamics—such as labor market conditions, demand fluctuations, exchange rate
variations, and sensitivity to shocks—could impact global growth.
In China, the ongoing real estate market crisis continues to weigh on domestic demand. International trade
prospects could be negatively affected not only by escalating geopolitical tensions but also by a tightening of
U.S. trade policy. Oil prices have risen, while natural gas prices remain volatile and subject to upward pressure
due to factors linked to both demand and supply.
For 2025 the Group expects to achieve consolidated revenue of approximately EUR 1.75 billion, based on
volumes recovery, price increase driven by inflation and the Danish CO2 emission tax effect; an EBITDA of
around EUR 415 million, and a net cash position of around EUR 410 million by year-end, assuming a constant
scope of consolidation.
Planned investments are equal to approximately EUR 98 million (EUR 125.4 million in 2024), of which around
EUR 14 million in sustainability projects. Research and development expenses are expected to be stable
compared to 2024, as is the average number of employees. The Group does not envisage the need for new
external financing, given the cash generation and the net cash position expected by year end.
These forward-looking indications do not include: i) the impacts of the application of IAS 29; ii) any non-
recurring items; iii) the impact of any worsening of the geopolitical situation or other extraordinary events.
The foregoing solely reflects the views of the company's management, and does not constitute a guarantee,
promise, operational suggestion or even investment advice. Therefore, it should not be taken as a forecast on
future market trends and of any financial instruments concerned.
PROPOSED ALLOCATION OF THE PROFIT FOR THE YEAR 2024 OF CEMENTIR
HOLDING NV
The Board of Directors proposes that the General Meeting:
• to approve the Directors' Report for 2024 and the financial statements for the year ended 31 December
2024, which show a profit of EUR 45,779 thousand;
• to allocate to the Shareholders, by way of dividend, a total amount of EUR 43,546 thousand, net of
treasury shares, in the amount of EUR 0.28 per ordinary share, gross of any statutory withholdings, using
the profit for the year for EUR 43,546 thousand;
• to allocate the remaining part of the profit for the year to be carried forward for EUR 2,234 thousand.
Rome, 11 March 2025
Chairman of the Board of Directors
Signed: /f/ Francesco Caltagirone Jr.
Directors’ Report 2024 Cementir Holding NV | 127
SUSTAINABILITY STATEMENT
GENERAL INFORMATION
BASIS FOR PREPARATION
General basis for preparation of sustainability statements
This Sustainability Statement for the fiscal year 2024 has been prepared on a consolidated basis.
The scope of the report covers the entire Cementir Group including the data on the parent company and
its fully consolidated subsidiaries. Furthermore, it also fully consolidates the sustainability data on the
subsidiary SCT which, in the Financial Statement, is consolidated applying the proportional method (since
it is controlled at 65%).
The Sustainability Statement (SS) consolidates the information on the entire Cementir Group, by covering
the main value chain of the Group, including the Impact, Risk and Opportunities (IROs) identified in its
upstream, downstream, and own operations. The qualitative and quantitative information reported in the
SS is derived from a data-gathering process performed at the levels of Holding and single legal entity.
During the preparation of this report, the option to omit in accordance with ESRS 1 section 7.7 has been
used in reporting information about the internal price of carbon as this information discloses commercial
strategies. Cementir Holding N.V. is multinational company with registered offices in the Netherlands, which
is an EU member state.
It has to be noted that the Company used the exemption from disclosure of impending developments or
matters in the course of negotiation, as provided for in articles 19a (3) and 29a (3) of Directive 2013/34/EU.
We declare that this exemption has been used as regards future gross emissions for 2025 and 2030 (EI-
6), the company reserves the right not to disclose this information as it could reveal turnover and volumes.
For this reason, the Company reserves the right to communicate only the equivalent intensity and not the
gross emissions.
The Company counts 41 subsidiaries (including parent Company) in 15 different countries. Subsidiaries
are defined as all the companies over which Cementir Holding N.V, at the same time, holds:
• the power of decision making or the ability to direct relevant activities of the subsidiary, that is activities
that have a significant influence on the results of the subsidiary;
• the right to the variable results (positive or negative) resulting from the investment in the entity;
• the capacity to use its own power of decision making to determine the amounts of the results arising from
the investment in the entity.
Please refers to Cementir Holding's Management Report for further details about the scope of reporting.
The Report discloses the data for the period 1 January 2024 – 31 December 2024, is drafted annually, and
is approved by the Board of Directors of Cementir Holding NV. It is aligned with the reporting period of the
Company’s Management Report (refer to Cementir Holding's Management Report).
Where possible, data from previous years are included for comparative purposes to enable an assessment,
over time, of the performance of the Group – but only with respect to the data with the same definition as
under the GRI standards. Where possible, data from previous years are included for comparative purposes
to enable an assessment, over time, of the performance of the Group – but only with respect to the data
with the same definition as under the GRI standards.
It is impracticable to disclose revised comparative figures, for the ones for which data gap compared to GRI
has been identified, for one or more prior periods (ESRS 2 BP-2 par 13 (b)).
Directors’ Report 2024 Cementir Holding NV | 128
The information disclosed in the Sustainability Statement has been defined using the “European
Sustainability Reporting Standards” (ESRS) as a methodological reference issued by the European
Management Reporting Advisory Group (EFRAG), a private association established in 2001 with the
encouragement of the European Commission to serve the public interest.
The 2024 Sustainability Statement shows the results of the analyses performed by the Company according
to art. 8 of EU Regulation 2020/852 of June 18
th
, 2020 (EU Taxonomy) and Delegated Regulations
2021/2178 and 2021/2139. The results of the analysis as well as the description of the methodological
process, are reported in the related section.
The Sustainability Statement was subjected to limited assurance by PwC Accountants NV.
The limited assurance, in line with the regulatory frameworks in force, includes also the information and
data related to the "EU Taxonomy" section and the art. 8 of EU Regulation 2020/852 too.
Time horizon
The three-time horizons can be summarised as follow:
• The short term (1-3 years), in which sensitivity analyses based on the Industrial Plan presented to
investors can be performed;
• The medium term (until 2030) is a time horizon beyond the Industrial Plan but addressed by the Cementir
Climate Change Strategy and its 10-year roadmap.
• The long term (2030-2050), in which chronic structural changes in the climate should begin to emerge
Medium and long-term time horizons definition is aligned with the recommendations of international
frameworks such as TCFD and with the time horizons envisaged by the group's industrial plan and
decarbonization Road Map.
Directors’ Report 2024 Cementir Holding NV | 129
Sources of estimation and outcome uncertainty
Any value chain data is calculated on the basis of average values provided by third-party databases such
as Ecoinvent for Scope 3. For further details, refer to the section dedicated to Scope 3.
Environmental data made on estimates.
Regarding the estimates used and outcome uncertainty, as requested by the ESRS 2 BP-2 paragraph 11,
the following table shows the list of quantitative metrics and monetary amounts that are subject to high level
measurement uncertainty:
Disclosure
Requirement
Specific Metric
Information about the measurement
uncertainty
Page
E1-6 - Gross Scopes
1, 2, 3 and Total GHG
emissions
Direct emissions of CO2
equivalents (Scope 1)
The default CO2 emission factors of the
Global Cement and Concrete Association
were used.
Please refer to the Global Cement and
Concrete Association (GCCA) The Cement
CO2 and Energy Protocol, Version 3 CO2
and Energy Accounting and Reporting
Standard for the Cement Industry.
223-227
E1-6 - Gross Scopes
1, 2, 3 and Total GHG
emissions
Indirect emissions of CO2
equivalents (Scope 2)
223--227
E1-6 - Gross Scopes
1, 2, 3 and Total GHG
emissions
Indirect emissions of CO2
equivalents (Scope 3)
The emission factors provided by Ecoinvent
3.7.1 were used.
The Ecoinvent Database is a database that
has emission factors linked to the electricity
production mix of several countries around
the world.
To calculate the indirect emissions of CO2
equivalents (Scope 3), the emission factor
databases used for this calculation were:
Ecoinvent 3.8 for 2021, Ecoinvent 3.9 for
2022, BEIS&DEFRA (2021-2022) and IEA
(2022).
223--227
E4 Biodiversity and
ecosystems
Aggregate and analyze
biodiversity data from all
operational sites to
evaluate the overall
impact of the Group
This analysis was carried out using the
Integrated Biodiversity Assessment Tool
(IBAT), the world’s leading database for
species and ecosystems, and focuses on all
of its 38 quarries. The assessment identifies
sensitive sites based on their proximity to
protected areas, Key Biodiversity Areas
(KBAs), and the presence of threatened
species as classified by the IUCN Red List
of Threatened Species.
241-261
Directors’ Report 2024 Cementir Holding NV | 130
Company, business model and stakeholder engagement
Information on the market position and strategy of the company
Cementir Holding N.V. is multinational company with registered offices in the Netherlands, listed on the
Euronext Star Milan segment, operating in the building materials sector, and focused on four main business
lines: grey cement, white cement, ready-mixed concrete and aggregates. With over 3,000 employees,
Cementir is the global leader in the white cement niche segment, the leading producer of cement in Denmark
and of ready-mixed concrete in the Scandinavian area, the third largest producer in Belgium and among the
main international players in Türkiye, with two listed companies on the Istanbul Stock Exchange. In Belgium,
the Group operates one of the largest aggregate quarries in Europe, while in Türkiye is active in the processing
of industrial waste, used to produce waste-derived fuel for cement plants.
Cementir pursues a sustainable growth strategy, focusing on product leadership, the pursuit of excellence and
the efficiency of operating processes. In the last two years the Group has achieved important ESG
recognitions, including the validation of its 2030 decarbonization objectives by the Science Based Target
initiative (SBTi) and an A rating by CDP on climate change and A- on water security. The Group also holds an
investment grade BBB financial rating with stable outlook from Standard & Poor's. Since 1992 Cementir has
been part of the Caltagirone Group, one of the leading business groups in Italy with activities ranging from real
estate to construction, from publishing to finance.
The following table shows the mapped significant activities in accordance with ESRS sectors:
Significant activities
Relevant ESRS sectors
C.23.51 Manufacture of cement
MMB
C.23.63 Manufacture of ready-mixed concrete
MMB
B.08.99 Other mining and quarrying n.e.c.
MQC
E.38.22 Energy recovery
UWW
E.38.31 Incineration without energy recovery
UWW
E.38.33 Other waste disposal
UWW
G.46.83 Wholesale of wood, construction materials
and sanitary equipment
SST
How cement is made
The Cementir Group’s main area of operations is the production of cement. The process, which has been
refined over the centuries, from the mortars of the Ancient Egyptians to early 19
th
century industrial models,
starts with natural raw materials such as limestone, gypsum and clay, which are extracted from natural quarries
and then crushed. They are then portioned out, mixed with other elements and ground to obtain the ‘raw meal’.
The raw meal is cooked at very high temperatures in special kilns, which are fuelled mainly by fossil fuels, in
order to obtain a semi-finished product known as ‘clinker’, cement’s main component. Once cooled, clinker
undergoes a process of grinding, mixing with gypsum and other mineral constituents (slag, fly ash, limestone,
pozzolana), to obtain the various types of cement.
Thanks to its strong industrial capacity and a comprehensive presence on international markets, in 2024
Cementir Holding distributed worldwide around 8.0 million tons of grey cement and around 2.7 million tons of
white cement of various types and classes, produced in 11 plants located in Denmark, Belgium, Türkiye, Egypt,
China, Malaysia and the US.
Directors’ Report 2024 Cementir Holding NV | 131
Leader in white cement
The Cementir Group is the world’s leading producer and exporter of white cement, with a 27% share of
worldwide trade and a production capacity of over 3 million tons. With the Aalborg White® brand we are the
leader in China, the United States, Western Europe, Australia, Malaysia and Egypt.
Aalborg White
®
has always been identified with white cement, throughout the world. It is a pure, high-quality
cement that can be found everywhere from Park Avenue skyscrapers in Manhattan, to the London Olympics
structures and even the Lindholm Høje Museum in Nørresundby, Denmark
1
.
The distinctive features of white cement are its colour and high levels of performance. The white colour is
obtained through the use of highly pure and carefully selected raw materials, the use of complex production
processes and an extremely rigorous quality control process which allow this material to be used in complex
architectural designs and sophisticated aesthetic applications.
What is special about the limestone used for manufacturing Aalborg White
®
is the lack of contamination from
sand and clay, which makes it very pure and ideal for the production of white cement. The combination of this
pure raw material, high-quality sands and kaolin, advanced technology, a specialised workforce and over 100
years of experience have made Aalborg White
®
cement unique in the world for its properties such as high
reflection, high mechanical performance, low alkali content and high resistance to sulphates. As the world
leader in the white cement market with the Aalborg White
®
brand, Cementir offers a wide product range which
meet the strictest international standards. Our industrial processes are inspired by the Group’s consolidated
best practices that guarantee our customers a unique level of quality and reliability over time. Our research
quality technical centre (RQT) has a worldwide reputation for international patents, awards and multiple
collaborations with prestigious universities.
InWhite®
The Cementir Group established a global innovation engine for white cement, InWhite®, with the purpose of
generating a prioritized and actionable pipeline of high potential customer value proposition global initiatives,
bringing new solutions for well-known applications, or completely new applications for white cement-based
products, aligned with megatrends detected in society, such as customization, the circular economy and high-
energy efficient solutions.
The InWhite® process benefits from the Group’s global knowledge of both well-established and emerging
applications for white cement and the technical expertise of its internationally acclaimed R&D centre located
in Aalborg, Denmark.
The Aalborg InWhite Solution® has become the umbrella brand for commercialized high-added value and
high-performing products like UHPC (Ultra High-Performance Concrete) and others, identified and developed
under InWhite® initiatives, that Cementir Holding provides to the building industry. Within its innovation
pipeline, under InWhite®, in late 2019 the Cementir Group launched innovative UHPC pre-mixes Aalborg
Extreme® for infrastructure applications and Aalborg Excel® for more aesthetic and sophisticated applications.
In order to meet customer’s needs for UHPC in the Far East region, Aalborg Excel® has also been produced
in our plant in Malaysia since 2023. In 2023 it was also launched InBind® which is a white cementitious binder
to be used in mortar and concrete recipes for high performance and highly aesthetical applications.
All InWhite® products are based on FUTURECEM® concept disclosed below.
1
Please see Projects | Cementir Holding N.V. for the main applications of our cements.
Directors’ Report 2024 Cementir Holding NV | 132
Grey cement
Cementir produces and distributes all types of grey cement, which are classified by type (based on the
composition of clinker and other constituents such as blast furnace slag, micro silica, pozzolana, ash, calcined
shale, limestone and secondary ingredients) and by class based on mechanical compressive strengths.
All the products follow rigorous industrial processes and Group consolidated best practices in order to
guarantee consistent quality to our customers over time.
The wide range of cement offered allows customers to fulfil all the requirements for the different durability
classes in concrete as well as to meet the needs of their production processes.
Since 2021, Cementir Holding, leveraging limestone and calcined clay, has been producing FUTURECEM®
in Denmark and Belgium, being at the forefront of this innovative product solution.
Difference between grey and white cement
White and grey cement are two distinct products, with different applications and production methods. White
cement should therefore be viewed as a separate product for the following reasons:
• White cement is mainly used for high-performance applications, dry-mix products, mortars, special
products and decorative purposes. Grey cement is widely used in ready mixed concrete as well as
precast concrete. White cement supports the development of future sustainable cement-based
technologies and products, responding to megatrends in construction such as the circular economy
where, among others, enhanced durability, modularisation of construction, reduced work processes
and reduced material usage, are essential.
• White cement is a specialty product produced at a limited number of facilities and traded widely across
borders inside and outside of the EU, as well as internally within Europe. Grey cement is a commodity
which is often used close to the production site.
White cement applications have a number of benefits related to climate change.
• The light colour reflects sunlight and thus reduces the ‘heat island effect’ in cities as well as the need
for artificial cooling in buildings. White surfaces also reduce the need for lighting in tunnels.
• The chemical purity of white cement, as a result of the refined raw materials used and strict production
process management, enables the growth of unique, low-carbon concrete solutions and products such
as high- and ultra-high-performance concrete and glass fibre-reinforced concrete, where the usage of
material is minimised to unprecedented levels (large cladding and structural wall components reduced
to as little as 12 to 35 mm in thickness). These technologies are essential for efforts to reduce clinker
consumption in buildings, by minimising material consumption.
Directors’ Report 2024 Cementir Holding NV | 133
The many differences are summarised in the following table:
White cement
Grey cement
Applications
(est. % of cement
consumption by
segment in Europe)
· Dry mix/mortars/specialty
products (50-70%)
- Cement-based paint
- Plaster
- Grout, putty
- Decorative concrete panels
- Sealing products
· Bricks, blocks and tiles
(20-30%)
- Terrazzo (up to 15% in
Mediterranean countries)
- Decorative bricks and tiles
· In-situ and pre-cast concrete
(10-20%)
- Facade elements
- Iconic buildings and other aesthetic
applications
· Ready-mix and pre-cast concrete
(55-65%)
- Mass concrete for infrastructure
works: dams, harbours, bridges,
tunnels, culverts, road surfaces
- Housing and industrial buildings
· Bricks, blocks and tiles
(30-40%)
- Pipes
- Paving stones, kerbs
- Roofing tiles
· Dry mix/mortars and other
applications
(5-10%)
Market position
Niche product
Commodity product
Raw materials
· High grade, iron-poor chalk,
limestone or marble
· Kaolin, bauxite
· Iron-poor sand (quartz sand, shifting
sand, etc.)
· Locally available limestone or
marl
· Clay, shale, fly ash
· Low-grade sand
· Iron oxide, pyrite ash
Cementir Quality System
All Cementir business units, including the cement plants in Türkiye, Belgium, Denmark, China, Malaysia, and
the US, and the concrete batching plants in Europe and Türkiye, comply with the national requirements for
quality management and production control with third-party verification.
In addition to the ISO 9000 System, Cementir has Internal Quality management.
A comprehensive Quality Policy and Quality management system is in place at the corporate level to ensure
that all business units fully comply with external and group rules and procedures.
The Internal Quality Policy is divided into three sections: ‘Organization and Guidelines’, which mainly provides
definitions and the framework for the quality system, including the CON-CQ (Consistent Cement Quality)
process; ’Rules and Procedures’ mainly provides the rules for setting DoQs (Declaration of Quality) and other
targets, testing proficiency requirements, common KPIs for benchmarking product quality performance and
the quality system across the group and ’Reports’ which includes a database of all relevant technical reports
and studies related to quality and the impact of the production process on quality, so that valuable information
is retained and shared across the group. Quality management is developed to ensure a business model
oriented towards customer satisfaction and continuously improving company performance.
CON-CQ (CON-sistent Cement Quality) provides a framework for measuring and improving our performance.
Directors’ Report 2024 Cementir Holding NV | 134
The CON-CQ system is organised into three different levels:
1. Business Unit CON-CQ establishes procedures and organisation and ensures this is done consistently
and maintained over time. It is sponsored by the Managing Director and led by the Technical Director (for
multiplant BUs) or Plant Manager/Director (for single-plant BUs) with the participation of quality, production,
and sales corporate functions. The meetings are held every four months. It defines the product portfolio and
critical services, updates and defines the Declaration of Quality (DoQs), and the quality control programme
based on relevant inputs (holding strategy and guidelines, market, competition, plant constraints, raw
materials, etc.). It monitors and reviews DoQs compliance and testing proficiency.
2. Plant CON-CQ, led by the plant manager and facilitated by the quality manager, is done monthly and
ensures proper execution of product portfolio/services (production, quality control, etc.), compliance with
DoQs, and a sufficient measurement system. The Plant CON-CQ identifies and addresses
gaps/incidents/complaints.
3. Quality Monthly meeting led by Corporate Quality function with the participation of Quality and laboratory
plant managers to analyse the quality data situation of the plant and results of round robin tests.
Six Sigma and Lean Six Sigma methodologies are also incorporated in most quality systems, sometimes with
an 80% Cement plants certified ISO 9000 Quality Management system dedicated Continuous Improvement
Department, such as in Türkiye, where there are 14 certified green belts and one black belt, which processed
26 Six-Sigma projects in 2023.
The Group Research and Quality Competence Centre (GRQCC) ensures a common framework for setting
targets for process efficiency, cement performance and the Global Warming Potential (GWP) of the finished
product placed on the market.
Furthermore, the system is fully integrated with GRQCC’s responsibility for research and innovation, a
prerequisite for achieving the company’s long-term CO2 emission reduction and environmental sustainability
roadmap. GRQCC has two green belts, and all projects follow the Six Sigma methodology.
Finally, the central laboratory of GRQCC in Aalborg is EN ISO/IEC 17025 certified. The certification guarantees
compliance with international standards, including environmental aspects. A certified laboratory assists with
adhering to environmental regulatory requirements; by implementing this certification, the laboratory is
committed to improving the quality of its activities and reducing the ecological impact of testing and calibration
operations. It can also promote the adoption of sustainable practices in the industry, encouraging partners and
clients to follow environmental quality standards.
Ready-mixed concrete
In 2024, Cementir Holding produced and distributed 4.6 million cubic meters of ready-mixed concrete of all
types and classes. Ready-mixed concrete is widely used in construction and is made of a mixture of cement
and aggregates like sand, gravel, water and any additives. The aggregates serve as bulk, while the cement,
reacting chemically with water, serves to bond the other elements. In some cases, admixtures of various kinds
are diluted in water and added to obtain specific results or performances, for example greater fluidity or rapid
setting.
Ready-mixed concrete is made and pre-packed in plants known as concrete mixing plants where the mixture
is dosed in special equipment. The mixing stage may take place directly at the plant (using premixers) or
during transport using special vehicles (mixer trucks) that continuously mix the product so that it maintains its
fluidity, which is essential for building work. When the ready-mixed concrete reaches the building site, it is
ready for use, i.e., the ‘pouring’ phase. Often, before being ‘poured’, the ready-mixed concrete is subjected to
a special process known as ‘pumping’. This consists of a second transport phase through piping, which makes
it much easier to reach elevated heights to form floor slabs, tunnels, etc.
Directors’ Report 2024 Cementir Holding NV | 135
Aggregates and cement products
Cementir Holding concrete products at Vianini Pipe Inc. plants in the US produce a total sales volume of 10.1
million These pre-stressed cement products consist of structural components for the building and transport
industries, and include pipelines, jack pipes, blocks, tiles, railway sleepers, etc., produced using mechanical
and hydraulic technologies with cement as a raw material.
In Belgium, Denmark, Sweden and Türkiye Cementir Holding is also active in the production and distribution
of aggregates to third parties. Aggregates are rocky materials such as gravel, sand and stone extracted from
quarries and from the banks of rivers which are crushed and then used with hydraulic binders such as cement
and lime in order to create concrete, mortar and other types of plaster. In many cases they are also used as
structural elements in construction work.
Market differentiation between white and grey cement
High and ultra-high-performance concrete, and glass fibre-reinforced concrete
Responding to the megatrends in construction such as fast-rise, mass-customisation, the circular economy,
maximised energy efficiency, minimising on-site operations, maximising performance and durability at reduced
material consumption, etc., advanced technologies previously regarded as ‘unnecessary’ are rapidly growing
in terms of applications and volumes, providing unique value propositions. These are empowered by the purity
and high performance of white cement and bringing solutions to the market with unprecedented performance.
White and coloured mortars
Cement-based plasters and mortars are used for covering facades, swimming pools and in general to reduce
painting requirements, and maximising possibilities in terms of surface texture and expression. Because of its
high durability, much less maintenance is needed than painted surfaces.
White cement is usually a key ingredient.
Renders, joint fillers and tile adhesives
The complex formulation of these construction materials is usually based on white cement thanks to its high
performance.
Exterior facade panels and decorative coating stones
White cement is also used in products such as floor tiles, kerbstones and prefabricated stairs, balconies and
windowsills. Additionally, applications such as white briquette and white press brick, concrete grids and pool
edges are also areas of use.
Works of art and street furniture
Concrete sculptures, monuments and the restoration of archaeological sites are usually made or carried out
using white cement, leveraging its whiteness as well as high performance.
Directors’ Report 2024 Cementir Holding NV | 136
Pre-cast and concrete elements
Use of white cement is a more durable alternative than paint in applications where colours are required.
Furthermore, white cement, thanks to its high early strength, allows fast production speed in concrete and
prefabricated applications, resulting in costs reductions. It has been used in iconic buildings and remarkable
public constructions (bridges, railway stations, stadiums, etc.).
Terrazzo and artificial stones
In the production of terrazzo, artificial stones and marble, the external-coloured layer is a fine white cement-
based mixture that may have coloured pigments added to it. Bright colours can be achieved only by using
white cement and the production of coloured terrazzo would be impossible without it.
Markets
The different applications for white and grey cement are reflected in the estimated market segments for the
two products (Fig. 2). The product applications are also different within the segments, for example terrazzo
being a major component in the ‘brick, blocks and tiles’ segment for white cement, whereas concrete pipes
and paving stones comprise a large portion of the same segment for grey cement.
Trade
Grey cement is a commodity product, manufactured at many locations close to the market. On the other hand,
white cement is a high-value product which is produced at relatively few, dedicated plants located close to the
appropriate raw materials. White cement is therefore traded across borders to a much greater extent than grey
(Fig. 3).
For further information regarding key geographical areas in which Cementir operates, please refer to the
Management Report.
Sustainable products
The Group has taken into account the white cement effects on issues related to the environment and people,
in line with the various objectives set forth in the subsequent chapters.
Directors’ Report 2024 Cementir Holding NV | 137
Effect of white cement on global warming and human safety
Light-coloured surfaces reflect much more sunlight than dark-coloured surfaces. Providing more reflective
surfaces, such as light-coloured roofs, walls and pavements, therefore results in more energy reflected back
into space, resulting in less warming.
Locally, this effect is especially significant in cities which tend to become unbearably hot during the summer.
Substituting dark roofs, walls and pavements with white ones significantly reduces this ‘heat island effect’.
Furthermore, it is estimated that 40% of the total energy consumed around the world is used in building air
conditioning. This energy consumption can be reduced significantly by lighter colouration of the facades and
roofs of buildings. This way, more solar energy will be reflected and the temperature inside the buildings will
drop, reducing the need for air conditioning. Recent studies have shown that an increase in the albedo
(measure of the fraction of reflected incident sunlight) of urban surfaces could save, in the US alone, energy
with an economic cost up to $3 billion and reduce the global temperature by 0.01ºC each year (Akbari et al.,
2006).
Applying the same methodology as used in Akbari’s study to buildings, the energy consumption of a building
according to the colour of the facade can be estimated. The result indicates that the CO2 savings from using
white concrete walls in constructing an office building with the dimensions 15 x 15 x 20 m would be
approximately 27 tons annually (see Annex C). Assuming that 28 tons of white cement is used for the building
and that the CO2 emissions associated with this production is 1.2 tons CO2 per ton of white cement, the CO2
savings will be greater than the emissions associated with the cement production in under two years.
Another area where the use of white cement products is beneficial is in tunnels and industrial warehouses,
where increased reflection will result in significant energy savings in artificial lighting. White cement plaster,
panels or floorings strongly reduce the need for artificial lighting, reducing the need for electricity for this
purpose
White cement has an important use in road barriers, sound barriers and other road equipment, where the white
colour increases visibility. This is especially significant under wet conditions, where grey concrete road barriers
will appear almost black (Fig. 5). Painting grey road barriers white is not a safe option, as the paint will wear
off and require frequent repainting (which rarely happens) (Fig. 6).
The described use of Cementir products also express the customer advantage deriving from more ecological,
high-quality, and durable products, and the investor advantage in terms of a sustainable and long-term growth
strategy.
FUTURECEM
®
, a limestone calcined clay cement
FUTURECEM® has resulted in more sustainable and performing cement with up 30% lower carbon
footprint compared to ordinary Portland cement.
FUTURECEM® is the result of extensive applied research, which has been developed in recent years at the
Cementir Group Research and Quality Centre located in Aalborg. It covers the entire value chain: from raw
material assessment, manufacturing technology, up to concrete technology.
FUTURECEM® is based on unique synergy between limestone and calcined clay which allows clinker
replacement in cement. The material combination in FUTURECEM® has resulted in a more sustainable and
performing cement with up to 30% lower carbon footprint compared to ordinary Portland cement. The low
carbon benefits of FUTURECEM® are also achieved while preserving strength and quality.
FUTURECEM® is fully recognized as a solution for clinker ratio reduction in the roadmap for Low-Carbon
Transition in the Cement Industry by the International Energy Agency – 2018 and as ‘low clinker cements’ in
the Cementing the European Green Deal – 2020, making the Cementir Group the forerunner in lower clinker
cements (cembureau.eu).
Directors’ Report 2024 Cementir Holding NV | 138
A milestone in the development of FUTURECEM® was the Danish ‘Green Concrete II’ (Green Transformation
of Cement and Concrete Production) project, which concluded in 2019: the entire value chain of construction
and building materials, as well as universities and research institutes were actively involved. 
Concrete recipes, based on FUTURECEM, were developed and tested in full-scale
constructions: infrastructure elements (two bridges) and an indoor floor and wall in the new concrete
laboratory at the Danish Technological Institute.
FUTURECEM® is a key contributor to the sustainable transition for the concrete, construction and cement-
based industries in general.
Since January 2021, FUTURECEM® has been available on the market in Denmark, placing the Cementir
Group at the forefront as the market leader in sustainable and low carbon cement, based on limestone calcined
clay.
FUTURECEM® has been primarily focused on the RMC segment. Customers within this segment use the
special properties of FUTURECEM® to make concrete more stable against variations in consistency and
easier to pump, which is usually a challenge with the rather cement-poor concrete used in Denmark. The
positive development in the RMC segment has continued in 2024 in both number of customers using
FUTURECEM® and total share of the sales.
Along with RMC, a growing number of Danish concrete precast producers are implementing FUTURECEM®
in their production through a complete testing program on site. The main difference perceived is the light-
brown colour of the concrete, which is considered as a seal of quality and visible proof for builders to
demonstrate the sustainable nature of their building.
In addition to the significantly increasing interest among Aalborg Portland's customers in the concrete and
construction industry, FUTURECEM® has also gained greater traction in the retail segment, becoming a top-
of-mind choice in several DIY chains for their professional customers demanding a cement with a lower CO2
footprint.
FUTURECEM® has been used in RMC and concrete elements for the ambitious sustainable building UN17
Village in Ørestad, Copenhagen with more than 500 apartments. The project was completed in 2024 and is
known as the world's first housing project integrating all 17 UN Global Goals in the same building.
With total of 4,880 m2 of the building, FUTURECEM® was used in RMC for the Bjarke Ingels Group HQ office,
which opened in 2023 and awarded the DGNB Gold certificate. The use of Uni-Green (UNI-Versal) – a new
type of concrete based on FUTURECEM® from Cementir Group subsidiary, Unicon has resulted in a CO2
reduction of approx. 25%, equivalent to a CO2 footprint of 11.3kg CO2 eq./m2/year.
In CCB, since 2023 FUTURECEM® has been fully commercialized in the reference markets (France and
Belgium) thanks to the achievement of the ATG (Agrément Technique) certification which allows the use in
concrete according to Belgium standards. The ATG was required as an additional certification being CCB a
pioneer of limestone- calcined clay cement in Belgium.
Thanks to this development, CCB has been able to exploit new applications as well as tackling the ready-
mixed concrete market in the most relevant exposure classes. The interest in FUTURECEM® is also growing
in technical academies (e.g. the University of Mons), with research also taking place in other countries and
public authorities (e.g. Genie Civil France). It is also included in the ‘Blocs B40 for low carbon concrete’
research project, led by the CERIB. 
In collaboration with customers, FUTURECEM® is now a reference to be further implemented in precast
elements: the precast sector is in fact a leading consumer of this type of cement. 
Internally in CCB Béton, FUTURECEM® implementation has been continuing. 
Directors’ Report 2024 Cementir Holding NV | 139
Other low-carbon cements 
Along with FUTURECEM®, the Cementir Group produces blended cement by leveraging on the main
Supplementary Cementing Materials (SCMs) such as fly ashes, granulated blast furnace slag and pozzolana
in order to offer low carbon solutions to customers as well as to strive towards the CO2 emission reduction
target.
In Nordic & Baltic Region, Aalborg Portland has been continuing its strategy to replace CEM I with CEM II/A
and CEM II/B and also extending the focus on both concrete products, precast elements and infrastructure.
The construction of the Fehmarnbelt tunnel, set to be the world’s longest immersed tunnel and the largest
infrastructure project in Denmark ramped up in 2024. Aalborg Portland is at the forefront, supplying the project
with the low-carbon cement, SOLID, boasting a 20% lower carbon footprint comparing to conventional
alternatives.
In 2024, CCB has completed the phasing-out CEM I 52,5R replacing it with CEM II/A-LL 52.5R to provide a
lower-emission cement for the precast sector.
Also in 2024, following specific feasibility studies (both market and industrial) CCB launched a brand new II/C-
M(S-L), exploring the new cement types introduced by EN 197-5. This cement is available both in bags and in
bulks to meet demand from the DIY and ready-mixed concrete sectors. The aim for 2025 is to help customers
switching from CEM II/B to II/C-M to further reduce the carbon footprint of their products.
Alongside the full roll-out of II/C-M, other initiatives are underway to further expand the low-carbon cement
offering for end-customers.
As regards as Çimentaş, Cementir Group subsidiary in Türkiye, it has been pursuing the transition from CEM
I to CEM II/A and CEM II/B in all the regions. Cimentas has strongly integrated its more sustainable products
IDEALCEM and MINERALIN into the market. In particular, IDEALCEM exceeded 50% of sales in Trakya plant
and 40% in Elazig plant.
Further low carbon products are under evaluation in all the regions with specific projects involving all the value
chain.  
D-Carb: decarbonisation of Aalborg White® 
Addressing white cement challenges in reducing carbon emissions, Cementir is introducing D-Carb,
representing a continuous and consistent decarbonisation effort for Aalborg White. As a leader in white
cement, Cementir has embraced the challenge of lowering cement's carbon footprint within the constraints
linked to colour and performance requirements. Leveraging long-term expertise in research & development
and industrial production, a comprehensive investigation was carried out, starting from customer needs, and
looking upstream to the entire value chain, encompassing clinker and cement composition, production and
raw materials selection.
To provide customers with more than just a product, technical collaborations were established with leading
companies in the admixtures sector as well as with loyal customers. Fast-prototyping techniques were
deployed, involving extensive experimentation at lab and full-scale trial levels. This approach allowed the
transformation of a proven concept into an industrial reality: the D-Carb family.
D-Carb by Cementir Group is a new umbrella brand for low-carbon cements and solutions, supporting industry-
wide decarbonisation efforts. The first product of our D-Carb family is a CEM II/A-LL 52.5R, launched in early
2024 and produced in Aalborg Portland plant located in Denmark: available both in bags and bulk
strengthening the product range in Europe D-Carb®, exhibits outstanding performances at early ages
comparable to CEM I, while having 15% lower carbon emissions verified by a third-party Environmental
Product Declaration.
Directors’ Report 2024 Cementir Holding NV | 140
Moreover, it offers improved rheology and whiteness in certain applications. The well-known interaction
between Aalborg White® clinker and limestone has been optimized, leveraging in-house expanded expertise
in white cement.
This high-quality level enables our customers to consider replacing CEM I in their manufacturing processes
after a specific testing program. No incompatibility with admixtures has been experienced during the extensive
experimental phase.
Since its launch, customers have been able to test D-Carb® proficiently in their production process, covering
all the potential technology segments as well as products.
The Sales Technical team has been supporting this testing with expertise to guide users in adopting D-Carb®
product and integrating it into their production processes. Continuous info sharing is established to act
promptly.
All the industrial users agree that D-Carb is easy to use in the precast concrete. Transitioning from Aalborg
White CEMI to D-Carb has been smooth, as it integrates well with their production process without requiring
major formulation changes. Even high performances can be achieved with a specific finetuning.
The Cementir Group will continue its customer-centric approach, with our technical experts are equipped to
guide customers in adopting this new product and integrating it into their production processes.
Low-carbon and sustainable concrete 
The Cementir Group is also promoting a more eco-sustainable RMC (Ready-mixed concrete) offer, down to
the value chain, by leveraging circularity (use of recycled aggregates) and reduced CO2 emission footprint
(FUTURECEM® and other blended cements).
Below are some conceptual examples of the Group's commitment to this issue and specifically the experience
of some subsidiaries.
UNICON Denmark 
In 2024 Unicon Denmark, the Cementir Group’s RMC subsidiary in Denmark, demonstrated a solid
performance and steadfast commitment to sustainability by launching the UNI-GREEN PLUS series, setting a
pioneering standard for the industry. The series, based on FUTURECEM®, significantly reduces CO₂
emissions by up to 50%, through the integration of FUTURECEM® and additional initiatives. As the demand
for low CO₂ products is expected to rise, driven by new building regulations in Denmark focusing on CO₂
reduction, the PLUS series is anticipated to gain increased traction in the market. To further support customers
in meeting these new requirements, Unicon Denmark is introducing UNI-Custom, a concrete solution tailored
to the unique needs of each construction project. This innovative solution not only helps to fulfil the stricter
CO₂ regulations but also sets new standards for low-emission construction with concrete.
To document improvements in the CO₂ footprint, Unicon Denmark has more than 40 third party verified
environmental product declarations (EPDs) at product and/or project level. The product EPDs are made public,
through lca.no using the same set-up as Unicon Norway. The ambition for Unicon Denmark is to offer the
lowest product EPDs on the Danish RMC market.
In 2024, Unicon Denmark significantly advanced its Zero Waste strategy and launched additional initiatives to
recycle surplus concrete (leftover concrete from construction sites), reinforcing the strong commitment to
achieving zero waste. This intensified focus not only reduces waste but also maximizes resource efficiency,
underscoring its unwavering dedication to sustainable practices. In 2025, this will receive even greater focus
as a clear strategy is set to achieve zero waste, with particular emphasis on crushing and reusing hardened
concrete for aggregates and sand, which is scarce resources in concrete production in Denmark.
Directors’ Report 2024 Cementir Holding NV | 141
As part of the efforts to reduce our CO₂ emissions, UNICON Denmark is committed to lowering the carbon
footprint of its fleet. In 2024 the company took the next step towards achieving 100% emissions free delivery
of concrete and expanded the fleet of hybrid and fully electric truck mixers, growing one of Europe's largest
active fleets of electric truck mixers – with more to come.
The electrification of truck mixers not only reduces emissions but also emphasizes noise reduction, which has
received positive feedback from the community due to the quieter operation of our electric vehicles.
Additionally, this initiative enhances safety and health on construction sites, benefiting surrounding
communities and supporting sustainable urban development.
Looking ahead, Unicon Denmark is committed to achieving further reductions in CO₂ emissions through close
collaboration with Cementir Group R&D, internal stakeholders, customers, and suppliers, while actively
participating in research and development initiatives.
UNICON Norway 
Unicon Norway, Cementir's RMC subsidiary in Norway, emphasizes sustainable solutions in response to
Norway's growing market demand for concrete with low Global Warming Potential (GWP), measured in CO2
equivalents, for both building and infrastructure projects. To support CO2 reduction, the company provides all
categories of low-carbon concrete outlined in the Norwegian Concrete Association's Publication No. 37.
Notably, in 2024, there was an increase in the use of low-carbon ‘class A’ concrete, also extending beyond
the Oslo region that has led this development so far.
Environmental Product Declarations (EPDs) form the foundation for GWP calculations. Unicon Norway and
Unicon Denmark have adopted a shared tool (lca.no) for creating project-specific EPDs, ensuring consistency
and reliability in sustainability reporting.
Unicon Norway’s focus on sustainability has led to several advancements in concrete composition and
customer solutions. The introduction of advanced admixtures has reduced cement content per cubic meter of
concrete, lowering CO2 emissions. Reclaimed aggregates from returned concrete are now utilized, reducing
waste and conserving natural resources. This initiative has commenced at one of the major plants. To assist
customers in tracking their CO2 purchases, Unicon now includes detailed CO2 data on invoices.
Throughout 2024, Unicon Norway diligently worked to meet the new pollution regulations for RMC production
in Norway. These regulations focus on emissions control for water and noise, proper handling of concrete
waste, and comprehensive reporting to authorities.
Unicon Norway’s concrete distribution operations prioritized sustainability by transitioning to cleaner fuels and
technologies. Eighteen vehicles consistently used HVO100, a renewable diesel fuel derived from sustainable
sources, replacing conventional diesel. Five vehicles were equipped with battery-powered drums, reducing
fuel consumption by up to 30% as the drums operate electrically on construction sites. Eight fully electric
concrete trucks were successfully deployed in the Oslo area. In Oslo, Bergen, and Trondheim, electric
pumping solutions were employed as needed, enabling zero-emission concrete placement when connected
to on-site power sources.
By aligning operations with sustainability goals and embracing innovative practices, Unicon Norway continues
to lead the way in reducing the environmental impact of concrete.
Directors’ Report 2024 Cementir Holding NV | 142
CCB Beton France and CCB Beton Belgium 
2024 saw the installation of photovoltaic panels at a sixth concrete batching plant. After Brussels,
Ghislenghien, Noyelles, Mont-Saint-Guibert and Fouquières, Baudour now has a 34kWp installation, bringing
the total to 548kWp.
By 2025, this installed capacity will enable to produce 460 MWh, with self-consumption accounting for 50%,
or 230 MWh. CCB Beton can expect to reduce CO2 emissions by 24 T eqCO2, a 10% reduction in emissions
linked to electricity consumption.
The plants of Ghislenghien and Noyelles increased the water retention capacity in order to decrease the
consumption of clean water (surface, ground, city water) in its production and to improve the reuse of water to
the cleaning of the trucks and installations. These developments have enabled CCB Beton, to renew the
Ghislenghien environmental permit for a period of 20 years and to officially obtain ‘zero discharge’ status for
the Noyelles site. Those improvements allowed to CCB Beton (France & Belgium) to be fully “zero discharge”
on all its sites.
CCB Beton managed in 2024 the renewal of the Cradle to Cradle Certified® Certificate for the full scope. The
new certificate will be issued early 2025 for a new period of 2 years.
Following the sustainable strategy of Cementir expecting to certify all the RMC plants of the group up to 2027,
CCB beton will make a step forward in 2025 to the environmental management standards with the ambition to
certify 2 additional plants (like Brussels) in the ISO 14 001 in order to strengthen performance in terms of
sustainability and go on preventing/ reducing environmental impact.
The ‘Upcycling Project’ has been led within CCB year-round. Focus on product circularity and measurable
goals to guide all aspects of circular product development has been conducted in 2024 including the reuse in
the cement process. Permit to operate is now subject to approval before full scale production.
ÇİMBETON 
Targeting carbon emission reduction, the use of CEM II type low-clinker blended cement continued in RMC
plants in the Aegean region in 2024. Additionally, low-carbon-emission CEM II type cement has started to be
used in the RMC productions in the Eastern Anatolia and Marmara Regions.
"MİNERALİN" (CEM IV/B) has been increasingly used all over the regions representing 15% of the total
cement consumption in 2024, improving from 11% in 2023 and with a peak of 23% in Aegean Region.
Environmental Product Declaration (EPD) 
Taking a step back, EPD plays an important role in deepening Cementir’s commitment to low-carbon and
sustainable concrete.
An Environmental Product Declaration (EPD) is a document which transparently communicates the
environmental performance or impact of any product or material over its lifetime. Some cement plants and
some RMC plants have this specific acknowledgement. 
Specifically, Aalborg Portland Denmark’s products are fully covered with EPDs, while CCB has obtained them
for its main products since 2023. In addition, Cementir’s European product offer for white cement, consisting
of two cements from Aalborg and two cements from Sinai, is fully covered with EPDs.
Regarding Ready-Mixed Concrete, EPDs are available in Denmark.
Directors’ Report 2024 Cementir Holding NV | 143
Description of business model(s) and value chain
The definition of material issues
According to the ESRS, to be compliant, an organization must determine its relevant sustainability topics.
The ESRS Standards defined four steps that an organization should follow to determine its relevant topics:
1. Understanding the context and defining the stakeholder engagement strategy.
2. Identifying the list of potential sustainability issues and impacts, risks, and opportunities
(IROs).
3. Determining the final list of relevant sustainability topics through the Double Materiality
Assessment (DMA).
4. Reporting the evaluation process.
Understanding the context
Cementir Group operates in the building materials sector and focused on four main business lines: grey
cement, white cement, ready-mixed concrete and aggregates. With over 3,000 employees, Cementir is the
global leader in the white cement niche segment, the leading producer of cement in Denmark and of ready-
mixed concrete in the Scandinavian area, the third largest producer in Belgium and among the main
international players in Türkiye, with two listed companies on the Istanbul Stock Exchange. In Belgium, the
Group operates one of the largest aggregate quarries in Europe, while in Türkiye is active in the processing
of industrial waste, used to produce waste-derived fuel for cement plants.
Cementir pursues a sustainable growth strategy, focusing on product leadership, the pursuit of excellence
and the efficiency of operating processes. In the last two years the Group has achieved important ESG
recognitions, including the validation of its 2030 decarbonization objectives by the Science Based Target
initiative (SBTi) and an A rating by CDP on climate change and A- on water security. The Group also holds
an investment grade BBB financial rating with stable outlook from Standard & Poor's. Since 1992 Cementir
has been part of the Caltagirone Group, one of the leading business groups in Italy with activities ranging
from real estate to construction, from publishing to finance.
Directors’ Report 2024 Cementir Holding NV | 144
Value Chain Overview
The analysis conducted by the Group included the extent to which the sustainability disclosure contains
upstream and/or downstream value chain information. Cementir has identified the key actors in its value
chains and described their main features.
Upstream
Cementir is sourcing goods and services to support its daily operations across the world. Main categories
of expenditures are direct materials, energy, logistics and transportation and technical services. Raw
materials can be sourced from:
● its own quarries by means of external contractor’s services or;
● third party suppliers who are delivering on site.
Main transport categories are seaborne to large ports and trucks to deliver to customers. Cementir works
globally with several contractors which are performing technical services as mechanical and electrical
maintenance, industrial cleaning and various operations support.
Own Operations
Cementir Holding is a multinational Group delivering innovative building solutions worldwide. As global
leaders in white cement, it boasts a diversified business portfolio of cement, aggregates, concrete and
value-added products
Its operations are structured on a regional basis in seven geographical regions: Nordic & Baltic, Belgium,
North America, Türkiye, Egypt, Asia Pacific and Italy/Holding & Services. Precisely, operations are
composed by three vertically integrated platforms operating in aggregates, cement and concrete production
and distribution in three countries: Denmark, Belgium and Türkiye.
In Denmark, the Group is leader in both grey and white cement as well as concrete; in Sweden and Norway
it is the leader in the concrete sector, while in Türkiye it is one of the largest international players, also
operating in the industrial waste sector.
In North America, Egypt and Asia Pacific, the Company’s presence is focused solely on white cement, as
the largest player globally and the only one with industrial presence in five continents.
Downstream
Cementir Holding N.V. offers a wide range of products, solutions and services. The products offered and
distributed are cement (grey – white), aggregates and concrete.
Primary customers within the value chain are in the industrial and B2B sectors (1st end users), as well as
the construction sector (2nd end users - including private and general contractors for new construction and
renovation in residential, commercial/industrial and infrastructure/public works sectors).
Cement sales on the retail channel (“do it yourself”) are residual. 
Cement and aggregates are also sold through traders and distributors. In addition, the Group provides
assistance and technical support services to customers, logistics and distribution where required through
its own companies or third parties. Cement represents the core business in terms of turnover and
profitability.
Directors’ Report 2024 Cementir Holding NV | 145
In the following table the undertaking provides a breakdown of total revenue derived from its financial
statements, by ESRS sectors relevant for Cementir. Since it has been obliged to segment reporting, the
undertaking furthermore reconciles this information, as far as possible, with the respective IFRS 8
information.
Operating segment
(IFRS 8)
2024
(Euro ‘000)
Nordic
&
Baltic
Belgium
North
America
Türkiye
Egypt
Asia
Pacific
Holding
and
Services
Unallocated
items and
adjustments**
CEMENTIR
HOLDING
GROUP
C.23.51 Manufacture
of cement / E.38.22
Energy recovery
Cement
430,282
174,951
162,18
267,794
46,264
104,406
-
-54,04
1,131,837
C.23.63 Manufacture
of ready-mixed
concrete
Ready-mixed
concrete
292,756
94,693
-
129,722
-
-
-
-
517,171
B.08.11 Extraction of
ornamental and
building stones,
limestone, gypsum,
chalk and slate
Aggregates
23,255
65,677
-
12,642
-
3,225
-
1,42
106,219
E.38.33 Other waste
disposal
Waste
-
-
-
6,097
-
-
-
-
6,097
-
Other
-
-
19,103
23,867
-
-
148,596
-24,233
167,333
-
Unallocated
items and
adjustments**
-51,158
-7
1,42
-48,949
-
-3,094
-
-139,926
-241,714
Total revenue -
ESRS Sector
Revenue
695,135
335,314
182,703
391,173
46,264
104,537
148,596
-216,779
1,686,943
Directors’ Report 2024 Cementir Holding NV | 146
These sectors include areas in which Cementir develops intercompany revenues, significant activities or in
which we are or may be connected to material impacts. The Group considered these sectors when
performing the materiality assessment and will disclose material sector-specific information consistent with
the identification of the additional ESRS sectors.
Stakeholder interest and engagement
The Group’s stakeholders
Considering the breadth and the international presence of the Group, there are many different stakeholder
categories with varying needs with whom the company interacts on a daily basis. Every category of
stakeholder has their own method and frequency of listening and involvement, based on the subject, topic,
interest and characteristics of the Group’s various regions.
Cementir Holding works to build a strong and long-lasting relationship with all of them, as is aware that
cooperation is an important and powerful value that enables the Group to better achieve its results, long-
term sustainability and improve its positive impact on people and society. To do so, communication and
listening to stakeholders are increasingly important and play a crucial role. The Group, recognizing that
each stakeholder has unique needs, interests and expectations of the organization, is therefore strongly
committed to engaging with them as much as possible.
Recognizing this and in accordance with the Dutch Corporate Governance Code, in 2023, the Group issued
the Stakeholder Engagement Policy. Its purpose is to establish guidelines for engaging stakeholders in
company’s operations and it applies to all operational activities of the Cementir Group (the Group’s
administrative, management, and supervisory bodies are informed about the views and interests of affected
stakeholders concerning the sustainability-related impacts. For further information see the ‘Role of the Bord
of Directors in overseeing the management of Cementir’s impacts’ section). Relations with shareholders
and financial analysts are handled with a high degree of accuracy and in compliance with the policy, the
Code and applicable regulations. The constant and constructive dialogue with the stakeholders involved is
fundamental to the proper functioning of the company's business model, which aims to create economic,
social and environmental value for all. With the implementation of a wide range of actions, Cementir is in a
position to anticipate stakeholders’ needs and priorities, knowing that Cementir’s actions will have a direct
impact on the ecosystem it is a part of, and that they take into account the environment, the economy and
society as inseparable parts of the same whole.
Directors’ Report 2024 Cementir Holding NV | 147
While recognising this individuality, the Company is committed to identifying and analysing priorities and
expectations for each stakeholder category defined in the previous phase and adapting engagement
strategies and actions accordingly. This analysis process allows for the adoption of targeted, customised
and proactive engagement plans to foster effective communication, accurate information sharing and
constructive collaboration with relevant stakeholders.
Based on the working and non-working relationships that the Group, each region and each individual
business unit has externally and internally as well as directly and indirectly the Group proceeded with the
identification of its stakeholders. The identified and listed stakeholders are those that the company
interfaces and has a stable relationship with (Holding level or regional level).
Stakeholder engagement is also a critical component of Cementir's materiality assessment (DMA) process.
Indeed, stakeholder views were considered when evaluating the ESRS gross list of topics, ensuring that
their interests were incorporated into the determination of material topics. The stakeholder engagement
process has focused on gathering information regarding the interests, views, and rights of individuals within
the company own workforce (S1), value chain workers (S2), affected communities (S3), and consumers
and end-users (S4). It also included insights from other key stakeholders, such as investors and
environmental experts. Both positive and negative issues have been raised, some of which have been
identified as material by Cementir.
The Company ‘sustainable development strategies pursue various objectives, including constant
improvement of the environmental and occupational health and safety conditions affected by its own
activities, and the compliance with international standards, such as:
- The United Nations International Charter (UN):
- The Universal Declaration of Human Rights
- The International Covenant on Civil and Political Rights
- The International Covenant on Economic, Social and Cultural Rights
• The fundamental conventions of the International Labour Organization (ILO) - n. 29, 87, 98, 100, 105,
111, 138, 182 - and the Declaration on Fundamental Principles and Rights at Work
• The UN Convention on the Rights of the Child
• The ILO Conventions n.107 and n.169 on the Rights of Indigenous and Tribal Peoples
• The European Convention on Human Rights.
The table below lists the Group’s main stakeholders, the subjects of interest identified for each of them and
the tool used for enhancing their engagement. For this last phase, direct conversation with the individual
business unit enabled Cementir to identify all the tools and channels used to ensure the highest level of
stakeholder involvement.
Directors’ Report 2024 Cementir Holding NV | 148
Type of
stakeholder
Subject of interest
Engagement tool
For further details
Personnel
·Cybersecurity and data protection
· Diversity, Equity and Inclusion
· Health and Safety
· Human rights
· Industrial relations
· Innovation
· People management and development
· Group Annual Convention
· Intranet
· Mail
· Official reports
· Social networks
· Survey
· Training
Governance information
Social information
Institutions and
Authorities (local
and national)
· Climate change and GHG emissions
· Competitive behaviour and business
ethics
· Energy management
· Health and Safety
· Human rights
· Industrial relations
· Innovation
· Other air emissions (different from
GHG emissions)
· Regulation
· Waste and Hazardous Materials
Management
· Exhibitions
· Official reports
· Participation in Global and
Business Associations
· Press releases
· Public conferences
Governance information
Environmental information
Social information
Shareholders
· Climate change and GHG emissions
· Business performance and
consolidation
· Competitive behaviour and business
ethics
· Regulation
· Health and Safety
· Human rights
· Direct contact
· Official reports
· Press releases
· Shareholder’s meetings
Governance information
Trade Unions
· Human rights
· Industrial relations
· Dedicated meetings
· European Worker Council
· Networking
· Official reports
· Working group
Governance information
Social information
Local
communities and
local
committees
· Circular economy
· Climate change and GHG emissions
· Community engagement
· Human rights
· Other air emissions (different from
GHG emissions)
· Waste and Hazardous Materials
Management
· Water management
· Dedicated meetings
· Direct contact
· Official reports
Environment information
Social information
Customers
· Climate change and GHG emissions
· Competitive behaviour and business
ethics
· Customer management
· Innovation
· Blog
· Exhibitions
· Official reports
· Sales departments
· Social networks
· Survey
· Training
· Website
Environment information
Social information
Directors’ Report 2024 Cementir Holding NV | 149
Suppliers and
contractors
· Circular economy
· Health and safety
· Reliable and Sustainable value chain
· CDP Supply Chain
· Exhibitions
· Official reports
· Training
Environment information
Environmentalist
Associations
· Biodiversity
· Circular economy
· Climate change and GHG emissions
· Energy management
· Innovation
· Other air emissions (different from GHG
emissions)
· Waste and Hazardous Materials
Management
· Water management
· Official reports
· Social networks
· Website
Social information
Financiers
· Business performance and
consolidation
· Competitive behaviour and business
ethics
· Regulation
· Transparency and accountability
· Direct contact
· ESG ratings
· Investor’s presentation
· Official reports
· Press releases
ESG ratings
Governance information
The table below presents the main policies applied by Cementir. It has to be noted that for all of them, the
most senior levels accountable for their implementation are Cementir’s CEO and COO.
Policy
Sub-topic
Stakeholder
Accessibility
ESRS Topic
Code
Group
Environmental
policy
● Climate Change adaptation
● Climate Change mitigation
● Energy
● Pollution of air
● Pollution of water
● Pollution of soil
● Pollution of living organisms
and food resources
● Water
● Direct impact drivers of
biodiversity loss
● Impacts on the extent and
condition of ecosystems
● Resources inflows, including
resource use
● Resource outflows related to
products and services
● Waste
● Employees
● Affected communities
Company
website
E1
E2
E3
E4
E5
Group water
policy
● Water
● Employees
● Affected communities
Internal
document
E3
Directors’ Report 2024 Cementir Holding NV | 150
Group
employees’
diversity, equity &
inclusion policy
● Equal treatment and
opportunities for all
● Employees
Company
website
S1
Group human
rights policy
● Working conditions
● Other work-related rights
● Employee
● Affected communities
● Consumers
● Suppliers
Company
website
S1
S2
Group
whistleblowing
management
procedure
● Working conditions
● Equal treatment and
opportunities for all
● Other work-related rights
● Communities’ economic,
social and cultural rights
● Information-related impacts
for consumers and/or end-
users
● Protection of whistleblowers
● Corruption and bribery
● Employee
● Consultants
● Consumers
● Partner
● Collaborator
● External auditors
● Institutions
● Public authority
Public channel
S1
S2
S3
S4
G1
Stakeholder
engagement
policy
● Climate Change
● Pollution
● Water and marine resources
● Biodiversity and ecosystem
● Resource use and circular
economy
● Own workforce
● Workforce in the value chain
● Affected communities
● Consumer and end-users
● Business Conduct
● Employees
● Customers
● Business partners
● Suppliers
● Affected communities
● Interest groups, media,
political and academic
leaders
● Industry associations
● NGOs
● Investors
● Other stakeholder groups
Company
website
E1
E2
E3
E4
E5
S1
S2
S3
S4
G1
Occupational
Health & Safety
● Own workforce
● Workforce in the value chain
● Affected communities
● Administrators
● Employees at any level and
third parties working on
behalf of the Cementir
Group (e.g. contractors,
suppliers, consultants)
Company
website
S1
S2
S3
Code of ethics
● Own workforce
● Workforce in the value chain
● Affected communities
● Consumer and end-users
● Business Conduct
● Employees
● Customers
● Business partners
● Suppliers
● Affected communities
Company
website
S1
S2
S3
S4
G1
Directors’ Report 2024 Cementir Holding NV | 151
Supplier code of
conducts
• Workers in the value chain
• Suppliers
Company
website
S2
Cybersecurity
incident response
plan
● Own workforce
● Workforce in the value chain
● Consumer and end-users
● Employees
● Customers
● Business partners
● Suppliers
Internal
document
S1
S2
S4
Governance and business practices
The role of the administrative, management and supervisory bodies
The Corporate Governance system adopted by the Cementir Group is in line with the principles and best
practice provisions set out in the current version of the Dutch Corporate Governance Code (hereinafter the
‘Corporate Governance Code’), applied by the Company (for further details about the Corporate
Governance of Cementir, refer to section “Corporate Governance” of the Management Report).
Cementir governance model is based on a one-tier Board of Directors and the relationships between its
members are governed by codes, principles, rules and procedures adopted to regulate the performance of
the activities of all organizational and operational structures.
Cementir Holding’s bodies are briefly described below. For further information, please refer to the Financial
Statement section, “Risk management framework” paragraph.
The Board of Directors, composed of eight members (7 out of 8 are non-executive members), is the apical
body entrusted with the management of the company in the interests of the shareholders and guarantees
the transparency of the decision-making process of corporate resolutions. It has the broadest powers of
ordinary and extraordinary administration, except those reserved exclusively for the Shareholders' Meeting
by the law and by the Articles of Association.
The Audit Committee is currently composed of three non-executive directors, all of them independent. It
prepares the decision-making process of the Board of Directors regarding the supervision of the integrity
and quality of the Company’s Management Reporting and the effectiveness of the Company’s internal risk
management and control systems.
The Sustainability Committee is currently composed of four directors, three of whom are non-executive and
independent. It prepares the decision-making process of the Board of Directors in formulating and
implementing a strategy in line with a view on long-term value creation by Cementir Holding N.V. and its
subsidiaries, regarding the development and promotion of a healthy, safe and secure environment for the
Company’s stakeholders as well as the sustainable development and social responsibility and prepares
any related decision-making at the Board level.
The main task of the Sustainability Committee is to develop a Group Sustainability Strategy.
The Remuneration and Nomination Committee is currently composed of three non-executive directors, all
of them independent. It prepares the Board’s decision-making (including, if applicable, proposals of the
Board for the General Meeting).
In addition, the Board of Directors has established an Ethics Committee in order to monitor compliance with
the Code of Ethics and the applicable regulations.
Please, visit Cementir website (link) for specific individual board member skills that are relevant to the
industry sectors, its products and the geographical location of business activities.
Directors’ Report 2024 Cementir Holding NV | 152
The Board of Directors comprises eight members: one is executive, seven are non-executive. Three of the
non-executive directors are considered independent, while the remaining five are affiliated with a
shareholder holding ten percent or more of the company's shares. Therefore, the percentage of
independent non-executive directors on the Board is 37.5%.
It's important to note that the concept of separate administrative, management, and supervisory bodies
does not apply to Cementir Holding N.V. due to its one-tier governance structure.
The Board of Directors was appointed on 20 April 2023 and will remain in office until the date of the
Shareholders' Meeting called to approve the financial statements for the year that will end on December
31, 2025. Detailed information are available on Cementir website (link)
The Board of Directors is composed by 4 female board members out of a total of 8 ones elected by the
Shareholders' Meeting, defining a 50 % female representation, with an equal gender distribution: four
women and four men. This composition aligns with the company's Board Diversity Policy, which aims for a
balanced representation of genders among its directors.
Cementir Holding N.V. has established a Board Diversity Policy (link) aiming for gender balance within its
Board of Directors. The policy targets a composition where at least one-third of the Board members are
women and at least one-third are men, in compliance with applicable laws.
Cementir Holding N.V. operates under a one-tier governance system, where the Board of Directors
functions as both the management and supervisory body. This structure combines executive and non-
executive directors, eliminating the need for a separate supervisory board.
Given this structure, the concept of a supervisory body with a distinct gender composition does not apply
to Cementir Holding N.V.
Diversity Policy
The Company’s Board of Directors adopted the Diversity Policy (link) on 13 November 2019, effective from
1
st
of January 2022 and reviewed on 9 March 2022, following the transfer of the Company’s registered
office to the Netherlands.
The Cementir Board Diversity Policy sets out the rules regarding diversity in the composition of the Board
of Directors. Following the entry into force on 1 January 2022 of the amendments to the Dutch Civil Code
regarding gender diversity (“Diversity Act”), the Board acknowledged the provisions of this legislation and,
on the basis of the proposal submitted by the Remuneration and Nomination Committee, updated the
Diversity Policy in accordance with the diversity targets relating to the Company’s Board.
In particular, Article 2:142b of the Dutch Civil Code requires that companies listed in the Netherlands
respect a diversity quota of at least one third men and one third women among non-executive directors.
The legislation also states that it is not allowed to appoint directors who do not contribute to achieving this
balance, otherwise such appointment will be null and void. As Cementir Holding is a large Dutch company
listed in Italy as defined in Article 2:166 of the Dutch Civil Code, it is obliged to set appropriate and ambitious
targets to create a more balanced ratio between women and men for executive and non-executive directors,
determined for the Board as a whole, as well as for certain management positions, and to report annually
on the achievement of these objectives, providing explanations in the event of deviations from these
objectives according to a 'comply or explain' logic.
The Board of Directors acknowledges the importance of diversity among all individuals who are working for
the Company. The diversified composition of the Board of Directors itself is a guarantee of a balanced
decision-making process, also achieved through the proper functioning of the respective committees. The
purpose of the Diversity Policy adopted by the Company is to lay down the diversity aspects and targets
within the Company and to ensure its proper implementation and application.
Directors’ Report 2024 Cementir Holding NV | 153
The objectives established in accordance with current Dutch legislation on diversity within the Board of
Directors are aimed at ensuring a balance between the genders represented.
The provisions of the Code are also reflected in the Board's Profile.
The Profile of the Board contains the requirements that the Board, on a proposal from the Remuneration
and Nomination Committee, takes into account when preparing the proposal to appoint one or more
directors to be submitted to the General Meeting.
In particular, the description needs to explain the experience and the background of the Directors, showing
also the composition and the dimension of the Board and with specific reference to Non-Executive Directors
and their independence.
In 2023, with the expiration of the term of actual Directors, during the General Meeting, that took place on
the 20
th
of April 2023, the Remuneration and Nomination Committee reviewed and updated the Profile of
the Board under the applicable rules of the Code in force that goes beyond the legal obligations of the
Diversity submitting these latest to the Board for approval.
The updated Board Profile has been considered during the preparation of the proposal for the assignment
of Executive and Non-Executive Directors presented during the General Meeting of 2023. In particular, it
has to be noted that the profile has been completed with additional requirements specific to the Company
such as knowledge of a well-established and long-standing of industrial production at general level and in
particular of the cement and/or building trade.
The Profile has been strengthened with the experience of sustainability, as it is a topic of great interest to
the Company and on which it is investing considerable resources and commitment. To the diversity criteria
listed, the personal qualities expected of the members of the Board of Directors and an express reference
to the specific diversity and inclusion requirements relevant to the company have been added in the
Diversity Policy. The recommendation of provision 2.1.2 on best practices to refer to gender identity if
requested by the Director has also been implemented.
It has to be highlighted that the structure must ensure a level of diversity that is suitable and tailored for the
Company. For this reason, it has to be known that the percentage of one third of each gender as foreseen
in the current Diversity Policy of Cementir Holding’s Board of Directors has been largely achieved and
exceeded and thus thanks to the appointment by the General Assembly of 20 April 2023 which foresaw a
Board of Directors comprised of 8 Directors in absolute gender parity.
During 2024, the Board achieved the long-term targets set for the year 2023 that consisted in maintaining
four Directors of the less represented gender, up to a total of nine members on a Board of Directors and
thus till the deadline of the Board which has been set with the approval of the financial statements for the
year 2025. Moreover, it has to be noted that in the same time period, in addition to the gender diversity
target, the Board also has been able to reach the goal set for the equity and inclusion declaring that these
latest wants to include in its composition:
● 3 Directors in which 1 crossbencher is younger than the CEO;
● 1 Director with specific experience in ESG issues having particular experience on social aspects.
It has to be noted that the targets mentioned above have been confirmed by the Board of Directors for the
next two financial years.
The composition of the Board of Directors complies also with the diversity criteria and thus in terms of age,
level of education and experience as set out in the Diversity Policy. In particular, the Directors appointed
by the Annual General Meeting of 20
th
of April 2023 strengthened the achievement of the diversity targets
in the composition of the Board considered relevant for the Company such as: competencies, education,
background, gender, personal qualities also including an international approach as per citizenship.
Directors’ Report 2024 Cementir Holding NV | 154
The Diversity Policy in force and its related correct implementation are regularly monitored by the Company.
It has to be noted that, if necessary, the Policy can be modified and reviewed in compliance with the Group's
policy rules for updating company procedures. The Diversity Policy and the Board Profile are both available
on the Company's website in accordance with best practice 2.1.5 of the Code.
Board members have different educational backgrounds within finance, economics, law, and professional
experience from different industries. The skills and experience within the Board and Committees were
verified and deemed adequate to supervise sustainability issues and were further deepened and extended
following the specific training received with numerous induction sessions. These skills and experiences in
relation to the material impacts, risks and opportunities of the Company and the Group were also evaluated
during the meetings of these bodies as significant experience in relation to the business sector, products
and geographical location of Cementir Holding N.V., and as specific expertise in business conduct matters.
The Board of Directors currently possesses the necessary sustainability expertise and is fully capable of
aligning the overall strategy with sustainability objectives. The evaluation also found that each member of
the Executive Management team has expertise and in-depth knowledge in various areas of sustainability
directly related to our material IROs.
There is no representation of the employees and other workers in the administrative, management and
supervisory bodies.
Role of the board of directors in overseeing the management of Cementir’s impacts
The responsibility for overseeing IROs is integrated within the Board Committees, especially the Audit
Committee. Business conduct policies, including our Code of Conduct, are reviewed and approved regularly
by the Board of Directors. This includes considering relevant sustainability standards and regulatory
obligations.
Disclosures related to environmental issues, social aspects across the value chain, and broader
sustainability topics are managed by Group Finance too.
Group Legal provides guidance on ensuring legal compliance for sustainability-related disclosures,
addressing both reporting aspects and adherence to relevant sustainability standards and legal
requirements. Additionally, governance-related disclosures are overseen by Group Legal, which provides
details on governance structures, policies, and procedures to Group Finance.
Group Finance plays the leading role in identifying, managing, and communicating our IROs. They ensure
both financial and non-financial compliance by establishing effective controls and procedures for
sustainability data collection, which is integrated with our Management Reporting systems and guidelines.
They also ensure legal compliance in all sustainability matters from a reporting perspective.
Social disclosures regarding our workforce are managed by Group HR, which reports employee-related
data and social initiatives to Group Finance for DMA and reporting purposes.
The responsibility for the research and development of IT services, products, platforms, and projects lies
with individual business units. These units receive support from Group Finance regarding the sustainability
aspects of managing business relationships and incorporating user and consumer impact considerations
into design and development. They also collaborate with Group Legal to ensure compliance with applicable
sustainability laws and guidelines for IT services, products, and platforms, and Group HR informs them of
any workforce-related social aspects that are relevant to the specific project.
The Group CFO is the Executive Management member responsible for the disclosure and reporting of
both financial and non-financial matters. Executive Management engages in meetings with the Board of
Directors, using their expertise and insights, supported by administration and business operations, to guide
Directors’ Report 2024 Cementir Holding NV | 155
the Board in making well-informed decisions on sustainability issues. Ultimately, the Board of Directors
makes the final decisions on IROs.
The Board of Directors, with the Audit Committee's involvement, uses processes, controls, and Double
Materiality Assessment results to guide target-setting related to our significant IROs when applicable. Once
targets are established, they are tracked with appropriate qualitative and quantitative indicators. At present,
no Group-level targets have been set. The focus has been on creating a solid data foundation and efficient
control environments. Strategic targets to accelerate business strategy and sustainability performance are
under consideration.
The Nomination Committee assists the Board of Directors by nominating candidates and ensuring that the
necessary strategic, industry-specific, sustainability, and other relevant skills and expertise are present
within both the Board of Directors and Executive Management. The Committee ensures that candidates
meet the expectations of the capital markets and that the competencies of the Board align with good
corporate governance practices for listed companies.
Cementir’s long-term sustainability strategy has been developed through a bottom-up approach over recent
years.
The functions concerned within the local structures, under the coordination of the Group’s top management,
have translated individual concepts and notions into a unique and coherent way of thinking, defining the
Group’s internal culture and identity, setting precise expectations, objectives and commitments, along the
lines provided for by the regulatory framework. Once consolidated, this core framework was then formally
reviewed, approved and validated by the Sustainability Committee set up within the group at the level of
the Board of the Danish subsidiary and, finally, transferred to the relevant entities for implementation
through structured programmes and specific actions with fixed deadlines. Its assumptions and implications,
from basic to more extensive, are summarised in the Group Industrial Plan, approved by the Company’s
Board of Directors, the Sustainability Statement, again approved by the Company’s Board of Directors and
the Group Consolidated Financial Statements, approved by the General Meeting.
The strategy drawn up by the Chief Executive Officer and submitted to the Board in its entirety for approval
in the context of the approval of the Industrial Plan, was inspired by the aim of long-term value creation by
the Company and the other companies in the group, with particular reference to the “Sustainability
Roadmap”.
Sustainability is clearly one of the main objectives that the Group has set itself and which, by its very nature,
implies a process to be carried out in the medium-long term in the interest and for the benefit of the
Company, Group, shareholders and stakeholders. The Board of Directors is an active promoter of
behaviour consistent with the Group’s values, not only with the approval of the pluriannual Industrial Plan
which incorporates them but also having given the Sustainability Roadmap high priority in recent years.
Based on the analysis carried out, the Group has set 26 Sustainability Goals to be achieved by 2030, which
cover the priority areas for Cementir. The objectives are linked to Cementir’s effort to adopt all necessary
measures and the most innovative technology to minimise the impact of the Cementir’s Group activity on
the environment; creating a healthy, safe and inclusive work environment; respecting human rights and
building a constructive and transparent relationship with local communities and business partners. These
objectives, set by individual plant and by year, are included in the Business Plan and the short-term
incentive system for employees. Cementir also pursues the creation of long-term value through a Long-
Term Incentive Plan for its top management.
The Board during its regular meetings, at least quarterly, among other issues receives updates on the
strategy targets, discusses and approves the quarterly Management Reports and monitors the risk
management examining and approving the Enterprise Risk Assessment. Refer to the “Main risks to which
the group is exposed” section for further information about impacts, risks and opportunities.
Directors’ Report 2024 Cementir Holding NV | 156
Relations with shareholders and financial analysts are handled with a high degree of accuracy and in
compliance with the policy, the Code and applicable regulations.
After each Board of Directors’ meeting approving periodic financial results, the Company organizes
conference calls to present these results to the financial community and informs the stakeholders by issuing
a press release.
A special section on the Company website has been dedicated to investor relations where presentations of
financial results and press releases are published in accordance with the Best Practice provisions of the
Code.
The Annual General Meeting is the natural event where Company’s shareholders can meet the Board of
Directors and ask questions, participating to the Company’s decisions with their vote. The Board shall
provide to the General Meeting any information it requests unless this would be contrary to an overriding
interest of the Company. The Annual General Meeting is held every year not later than six months after the
end of the financial year of the Company. The purpose of the Annual General Meeting is to discuss, inter
alia, the annual report, the adoption of the annual accounts, allocation of profits (including the proposal to
distribute dividends), release of members of the Board of Directors from liability for their management and
supervision, and other proposals brought up for discussion.
Further examples of interaction with other stakeholders, such as customers, suppliers, staff, the local
community, public institutions and trade associations, are described in paragraph ‘Group’s Stakeholders’
of this Sustainability Statement.
The Chief Executive Officer has appointed the Chief Operating Officer, through and together with the
employees of the organisation directed by the same, to pursue the achievement of the targets of the
Industrial Plan and manage the related impacts on the economy, environment and people.
The Chief Operating Officer reports regularly to the Chief Executive Officer and at least quarterly to the
Board during the meetings where both the Chief Operating Officer and the Chief Financial Officer are in
attendance.
Information provided to and sustainability matters addressed by the undertaking's administrative,
management and supervisory bodies
The Sustainability Committee prepares the decision-making process of the Board of Directors in formulating
and implementing a strategy in line with a view on long-term value creation by Cementir Holding N.V. and
its subsidiaries, regarding the development and promotion of a healthy, safe and secure environment for
the Company’s stakeholders as well as the sustainable development and social responsibility and prepares
any related decision-making at the Board level.
The main task of the Sustainability Committee is to develop a Group Sustainability Strategy.
The Sustainability Committee is currently composed of four directors, three of whom are non-executive and
independent. Please visit the Cementir website for additional details (link).
Throughout the reporting period, the Sustainability Committee has addressed the material impacts, risks,
and opportunities reported in the “Double Materiality outcome” section.
The administrative bodies are informed about the implementation of due diligence on quarterly basis. They
are also informed about the results and effectiveness of policies, actions, metrics and targets adopted to
address material impacts, risks and opportunities, by Internal Control and Risk Management System. This
system ensures that major risks are identified, assessed, managed, and monitored, considering the
individual operations, risk profiles, and risk management systems of each business unit. The process
Directors’ Report 2024 Cementir Holding NV | 157
follows a top-down and risk-based approach, starting from the definition of Cementir's Industrial Plan. Risks
are assessed using both quantitative and qualitative tools, evaluating the probability of occurrence and
potential impacts over a specified time horizon. The outcomes of these assessments are communicated to
the Group's top management, including the Group CEO and COO, on a quarterly basis, and to the
Corporate Bodies, such as the Audit Committee and Board of Directors, annually.
Additionally, external sustainability performance assessments and annual sustainability reports, ensure that
its administrative bodies are well-informed about the company's performance in managing material impacts,
risks, and opportunities.
The ERM is shared once a year with the Audit Committee. During this meeting the actions taken to mitigate
any risks and impacts during the year are shared as well as the identified opportunities. Furthermore, if
specific risks or emergencies were to emerge during the year, dedicated meetings would be organized to
discuss them and make targeted decisions by implementing planning actions which would then be
monitored by the Internal Audit through the management system. With reference to Audit and Sustainability
Committees, meetings are organized quarterly with the aim of providing updates on existing activities and
any news on new identifiable impacts, risks and/or opportunities.
Integration of sustainability-related performance in incentive schemes
Cementir adopts a competitive remuneration system which guarantees a balance between corporate
strategic objectives and recognition of the merits of Group employees. By using variable short and
medium/long term remuneration components, the Policy is designed to align staff interests with the pursuit
of the priority objective - value creation - and the achievement of financial and sustainability objectives.
This objective is also pursued by linking a significant portion of remuneration to the achievement of defined
performance targets, by means of both the short-term incentive scheme (STI) and the long-term incentive
scheme (LTI).
In 2024, within the STI Program, which is fully integrated in the Performance management process, the
Group continued to enhance the ESG objectives at all levels of the organization. The ESG objectives are
included in the STI Program of all executives and middle management of the Group. Particular attention
was directed to the issues of CO
2
emissions reduction, Green Capex and Occupational H&S. Nevertheless,
there are also objectives related to biodiversity, ISO certification, circularity, clinker factor reduction, human
capital and development and water consumption as represented in the following table.
The remuneration of the whole C-level is strictly linked to ESG topics. Occupational Health & Safety target
and CO
2
emissions reduction target are included in the STI program of all C-level employees. Specifically,
these KPIs account for 15% - 20% of their remuneration. Therefore, ESG related issues have a consistent
and specific weight in determining the variable remuneration of senior executives. The LTI Plan consists of
three three-year cycles, each providing for the payment of an incentive subject to the achievement of
performance targets at the end of the performance period. This plan ensures the long-term retention of a
selected group of Group managers in strategic positions.
The Plan proposed the following objectives:
• allow beneficiaries to focus on medium/long-term objectives in order to create sustainable value over time
in line with the Company's strategic objectives;
• act as a tool for retaining beneficiaries;
• align compensation packages with market practices.
Directors’ Report 2024 Cementir Holding NV | 158
There is no incentive schemes and remuneration policies linked to sustainability matters for members of
the administrative, management and supervisory bodies.
Nevertheless, as stated in the Remuneration Relation (link), there are some specific quantitative KPIs linked
to the ESG objectives in the STI plan, contributing to the
implementation of the corporate strategy and the pursuit of long-term interests and objectives sustainability.
In addition, in 2024 the Company worked to define the remuneration package of the CEO based on target
related to ESG requirements, which will be effective from the beginning of 2025.
The 2024 Remuneration Policy does not provide for substantial changes compared to the one approved in
2023, continuously strengthening the number and relevance of the objectives linked to the strategy
sustainability of the company at different organizational levels, confirming the extension of the audience of
interested in all ESG issues.
Risk management and control systems
Description of the due diligence on sustainability matters
The following table shows how and where the application of the main aspects and steps of the due diligence
process are reflected in Cementir’s sustainability statement.
Core elements of due diligence
Paragraphs in the sustainability statement
a) Embedding due diligence in governance, strategy and business
model
ESRS 2 General Information
G1 Business model
b) Engaging with affected stakeholders in all key steps of the due
diligence
Social Information chapter (S1, S2, S3, S4)
c) Identifying and assessing adverse impacts
ESRS 2 General Information
d) Taking actions to address those adverse impacts
ESRS 2 General Information and paragraphs “Taking
action on material impacts” (S1, S2, S3, S4)
e) Tracking the effectiveness of these efforts and communicating
Paragraphs “Metrics and targets” (S1, S2, S3, S4)
Risk management and internal controls
The Internal Audit Function at Cementir Holding provides independent and objective assurance and
consulting services, aimed at enhancing value and optimizing the operations of the Cementir Group.
By developing and monitoring the Group’s Internal Control System (ICS), Internal Audit Function evaluates
and enhances the effectiveness of risk management, control, and governance processes. In fact, Internal
Audit Function diligently identifies and assesses significant exposures, risks, and potential fraud related to
the Company’s governance, operations, and information systems.
Additionally, Internal Audit Function actively promotes best practices by benchmarking both internal and
external standards to ensure compliance with legal requirements, rules and procedures.
In order to provide assurance on Internal Control System effectiveness, the Internal Audit Function
performs:
● Operational Audits: risk-based operational audits planned at the Group level. Audit scope relates
to main operational processes (inventory, purchasing, sales, industry activities, etc.).
Directors’ Report 2024 Cementir Holding NV | 159
● Follow-up Audits: audit aimed at verifying the effectiveness of action plans put in place by
Management to solve issues previously identified.
● Special / Spot-Check Audits: projects requested by Top Management.
● Whistleblowing investigations: analyses performed following whistleblowing notifications.
Results of the analyses are reported to the Ethic Committee.
● Compliance to Italian Law 262/05 requirements Activities: independent test activity on key
controls relevant for the Management attestation on Internal Control over Management Reporting (ICFR)
in the major Legal Entities.
● Compliance to Legislative Decree 231/2001 Audits: audits to verify and monitor the compliance
of controls and procedures pursuant to relevant Italian laws.
● Business Ethics Compliance (BEC) Activities: activities aimed at monitoring the correct
application of the Group Ethic Code. Analyses are mainly focused on executive travel expenses, company
asset management, executive consulting services, entertainment expenses and gifts, and bank accounts
management.
● Information Communication Technology (ICT) Checks: assess the adequacy of ICT processes
and ensure that they are properly documented and controlled as well as responding to the Company’s
requirements. Support to Test ex 262 law and Operational audits if required.
● Environmental, Health & Safety (EH&S) Audits: verification of EH&S regulation compliance
(OHSAS 18001:2007 and Legislative Decree 81/2008 on H&S and ISO 14000 on environmental issues),
adoption and effective implementation of the Compliance Program required by Legislative Decree
231/2001.
● Environmental, Social and Governance (ESG) Audits: verification of the completeness and
accurateness of the sustainability KPIs quarterly collected.
● Enterprise Risk Management (ERM) Activities: activities aimed at identifying, managing and
evaluating potential risks that could undermine the achievement of Company objectives.
● Sustainability Activities: activities aimed at monitoring and filling the main sustainability
disclosures as CDP (Carbon Disclosure Project) and ESG ratings.
● Action Plan Monitoring: activities aimed at monitoring the implementation of corrective actions
conducted quarterly through a self-declaration by every single owner of the actions to confirm if they have
been completed or if it is delayed and the reason why.
The Internal Audit Department verifies all Group companies on three-years basis. When appropriate times,
the internal audit selects external parties to conduct specific audits (e.g. EHS audits).
During 2024, the Internal Audit Department performed 154 audit activities, which included operational
audits, compliance audits, Human rights audits, Diversity, Equity and Inclusion (DEI) audits, Environmental
Health and Safety (EHS) audits, ESG audits, Business ethics audits, updating of Group Enterprise Risk
Management, Investigations of any alleged violations received through the whistleblowing system, Special
projects relating to requests put forward by Top Management, covering all regions and BUs of the Group.
Starting from October 2023, the Group launched the strategic initiative for the digitalization of Risk
Management aiming to:
• enhance organizational resilience by leveraging advanced technology solutions;
• streamline data-driven risk assessments and implement real-time monitoring capabilities;
• foster a proactive and agile approach to risk mitigation across all business functions.
Directors’ Report 2024 Cementir Holding NV | 160
The digitalization of Risk Management ensures that the Group’s risk management practices are at the
forefront of industry standards.
In 2024, all Group entities have adopted the new tool for updating their Enterprise Risk Management.
The risk event, defined as any potential event that may adversely affect the achievement of strategic and
management objectives, is identified by mapping relevant causes, consequences and treatment activities.
All the identified risks have been valuated using two variables: impact and likelihood, and their combination
generates the overall level of risk.
(Risk inherent value = impact * likelihood).
According to the methodology, the variable “impact” has been evaluated on the basis of three components,
whenever it was possible:
● economical (quantitative);
● operational (qualitative);
● reputational (qualitative).
The highest value among these three components is considered as the impact value.
Likelihood and impact are assessed on a scale from 1 to 5, and risk scoring is determined by multiplying
the likelihood and impact, resulting in a score ranging from 1to 25.
For further information, refer to “Description of the principal risks and uncertainties” section of the
Management Report.
Directors’ Report 2024 Cementir Holding NV | 161
Materiality analysis and results according to the concept of double materiality
Description of the processes to identify and assess material impacts, risks and opportunities
Materiality assessment is conducted through our comprehensive process that aims to identify, assess,
prioritize and monitor both potential and actual impacts on people and the environment, as well as risks and
opportunities that may in turn have a financial effect on the company.
The materiality assessment follows a systematic approach.
The groundwork for this stage began with the identification and validation of material topics through
consultation with multiple sources, both internal and external. Given the constant changes in the market,
business relationships and trends, for us it is crucial that the process of identifying impacts is conducted
regularly.
Initially, an analysis of the actual and potential impacts generated on the economy, environment and people
through corporate operations was carried out. This analysis was facilitated by consulting internal documents
from 2023, such as the Group’s strategy, the Group’s sustainability targets (for details, see the paragraph
‘Sustainability Targets’), audits results, complaints received through the whistleblowing channel and Group
Enterprise Risk Management. To enhance the analysis, the impact materiality together with the financial
materiality – which has been defined based on ERM – lead to the Double Materiality Assessment.
Concerning the Group Risk Management, consultation of the risk register allowed for a more accurate
delineation of the main business impacts (for further information on risks analysis, see the chapter ‘Risk
Management Framework’).
Following this, we turned to external sources, which we used to verify the level of alignment or misalignment
with the 2023 material topics. By doing this, we were able to validate our internal trends understanding the
context surrounding the organisation.
The first screening was conducted with specific reference to our industry, cement production. For this we used
and consulted:
- the SASB Materiality Finder (sector specific);
- the MSCI ESG Industry Materiality Map;
- documents and research issued by cement trade associations.
An important stage of the process was then to analyse main laws and regulations in the countries where the
Group operates.
To further verify the alignment of our material topics with the needs of our stakeholders, we provided
consultation and analysis of ESG mega trends, as reported by MSCI, Refinitiv, S&P Global and from official
ESG papers of the main international consulting firms.
We further enriched our analysis by using a benchmark of material topics identified by the main players in the
cement sector with an industry benchmarking of 10 competitors.
The result of the identification and research phase is a list of Impacts, Risks and Opportunities related to the
Operations of Cementir Holding.
Double Materiality Assessment
CSRD is based on Double Materiality Assessment (DMA), which has two dimensions, namely: impact
materiality and financial materiality.
A critical part of the assessment involves measuring impacts, risks, and opportunities not only for stakeholders
but also for the company and its strategy, as described in the following paragraphs.
Directors’ Report 2024 Cementir Holding NV | 162
Moreover, it has to be considered that the results of the Double Materiality Assessment can be affected in the
next years by possible future changes in the ongoing due diligence and double materiality assessment
process, including engagement with affected stakeholders. Due diligence is an on-going practice that responds
to and may trigger changes in the company’s strategy, business model, activities, business relationships,
operating, sourcing and selling contexts relevant for stakeholders as a group. The double materiality
assessment process may also be impacted in time by sector-specific standards to be adopted. The
sustainability statement may therefore not include every impact, risk and opportunity or additional entity-
specific disclosure that each individual stakeholder may consider important in its own assessment.
Impact Materiality Assessment
This phase is related to the identification and evaluation of the impacts (positive/negative and potential/actual)
generated by the Group Cementir and its value chain on people and the environment.
Process:
● Analysis of the Sustainability Reports of competitors, industry trends, main reporting standards and
ratings of sustainability, legislative pressures in the sector, geographic reference context, media analysis to
understand the context in which the Group operates and identify a preliminary list of impacts generated on the
environment and people.
● Analysis of the documents of the Cementir Holding N.V.
● Validation of impact materiality.
As per the ESRS guidance, the relevance of each impact has been assessed by considering its:
● severity (negative impact) or significance (positive impact), which final score is given by the average
ones of:
o ‘scale’: how great the impact is on the environment or people, after consideration of mitigation actions
already in place;
o ‘scope’: how widespread the impact is based on parameters such as percentage of sites, employees,
or financial spend that the impact relates to;
o irremediability character’ (for negative impacts only): how difficult it is to reverse the damage in terms
of cost and time horizon.
The evaluation scale goes from 1 (Low) to 5 (High).
● probability of occurrence, is defined as the possibility of impact occurring. The probability varies
depending on the measures taken by the Company to prevent and/or mitigate the impact.
If the impact negatively affects human rights, the severity of the impact takes precedence over the probability
as required by the ESRS.
The total severity of an impact is then used to calculate e the average relevance.
Based on severity/significance and probability scores of each impact, a threshold has been identified: only
impacts above or equal the defined threshold
2
resulted as relevant for Cementir.
The Audit Committee and the Sustainability Committee have set the materiality thresholds at ‘medium’. This
means that impacts and risks scored as ‘medium’ or above, and their associated ESRS topic, are deemed
material.
2
Threshold is above or equal to 3, in a range scale going from 1 to 5.
Directors’ Report 2024 Cementir Holding NV | 163
Financial Materiality: risk and opportunities assessment
This phase is associated to the identification of financial risks and opportunities related to sustainability, arising
from environmental, social or governance issues and having a substantial influence in the short, medium and
long term on the company’s financial position, financial performance, cash flow and cost of capital.
Process:
● Mapping of business relationships, natural, social and human resource dependencies along the value
chain and actions implemented by the Group to address sustainability issues.
● Preliminary identification of sustainability risks and opportunities.
● Validation of Financial Materiality.
To identify material risks and opportunities for the company, it is necessary to consider:
1. Impacts: a risk or opportunity that may arise from an impact generated by the Company.
2. Impacts or risks from actions to address sustainability issues: risks and opportunities may be generated
by actions that the company takes to mitigate its negative impacts or to maximize positive impacts on
sustainability.
3. Dependencies and relations: dependencies can activate risks and opportunities in two possible ways:
a. may affect the ability of the enterprise to continue to use or obtain resources necessary for its business
processes, as well as the quality and price of such resources;
b. they can impact the company’s ability to rely on the necessary relationships for its business activities
under acceptable conditions.
The actors and capital on which the Group depends and with which it interacts also include its own
Stakeholders, which were considered in the analysis of Double Materiality
The measurement methodology of CSRD used for financial materiality is to include two qualitative variables:
magnitude and probability.
Indeed, each risk and opportunity have been assessed by considering:
● the potential magnitude of financial effects based on different triggers, including EBITDA. It was scored
as ‘low’, low-medium’, ‘medium’, ‘medium-high’ or ‘high’.
● the probability of occurrence, scored as ‘low’, ‘low-medium’, ‘medium’, ‘medium-high’ or ‘high’, by
using relevant time horizons of short-, mid-, or long-term.
Cementir assessed the nature of these effects in different scenarios with assumptions based on input
parameters from subject-matter experts.
Based on magnitude and probability scores of each risk and opportunity, a threshold has been identified; only
risks and opportunities above the defined threshold have been defined as relevant for Cementir.
Our Audit Committee and Sustainability Committee have set the materiality thresholds at ‘medium’. This
means that impacts and risks scored as ‘medium’ or above, and their associated ESRS topic, are deemed
material.
Directors’ Report 2024 Cementir Holding NV | 164
Double Materiality outcome
Sustainability Department together with Internal Audit Department and the relevant owners, defined the final
result of IROs assessment as well as the list of Cementir’s material topics, classified into three equally
distributed different categories (environmental, social and governance), according to the ESRS Standards.
The list is comprehensive as much as possible and outline the holistic framework in which the Group operates
on a day-to-day basis. This updated list provides a complete sustainability disclosure and is fully consistent
with the Cementir Group’s strategy.
ESRS Topic
Sub-topic
Description
E1 - Climate
Change
Climate change
adaptation
Climate change
mitigation
Energy
Taking concrete actions on climate change mitigation and addressing direct and
indirect greenhouse gas emissions that the company generates through its
activities. Cementir is committed to developing a business model in line with the
sustainability strategic goals and the CO2 emission reduction targets judged by
the Science Based Targets initiative (SBTi) to be consistent with a 1.5°C world.
In February 2024, SBTi validated that the CO2 reduction targets for the near-
term (2030) and long-term (2050) defined by Cementir are in line with the 1.5°C
Scenario.
Internal monitoring process aimed at the correct and responsible use of energy,
with particular attention to sources of supply. By 2030, the Group will increase
the proportion of alternative fuels in the fuel mixed to 48% for producing grey
cement and 14% for white cement. Energy management is not only related to
source of supply but also to its sale. In Aalborg plant, excess heat is recovered
from cement production and distributed to provide district heating to local
inhabitants.
E2 - Pollution
Pollution of air
Pollution of water
Pollution of soil
Pollution of living
organisms and food
resources
Monitoring, target definition and possible reduction of other air emissions, other
than Greenhouse Gas emissions that the company generates through its
activities. The company is committed to the constant monitoring of air quality for
the analysis of both absolute and specific emissions as PM, NOx, SO2, NH3,
HCI, HF, Hg, TOC, CO and similar pollutants.
E3 - Water and
marine
resources
Water
The control and movement of water resources to minimise damage to life and
property and to maximise efficient beneficial use. The Group has laid out a 10-
year roadmap that will allow water consumption per ton of Cement Equivalent
produced to be reduced by 20% compared to 2019. For plants located in high
water-stress areas, for which the specific water consumption is already lower
than the Group average, the reduction target is 25%. Company’s commitment is
also enforced by the signature of the WASH Pledge (for more information, see
‘Responsible and efficient use of water’), aligned with SDG 6, which guarantees
the provision and access to water at an appropriate standard for all employees
in all premises under our direct control. Cementir is also committed to acting on
WASH across its value chain (suppliers and communities).
E4 -
Biodiversity
Direct impact
drivers of
biodiversity loss
Ensure and guarantee the protection of biodiversity in all territories where the
company operates. The company is also committed to minimising its
environmental impact through the development and implementation of a
Rehabilitation Plan for all its quarries and a Biodiversity Management Plan for
Directors’ Report 2024 Cementir Holding NV | 165
and
ecosystems
Impacts on the
extent and
condition of
ecosystems
the quarries assessed as having a ‘High biodiversity value’. In this way each
plant is committed to the development of appropriately focused rehabilitation and
management plans to preserve biodiversity and ensure quarry rehabilitation.
E5 - Circular
economy
Resources inflows,
including resource
use
Resource outflows
related to products
and services
Waste
Respect, application and dissemination of the circularity principles in both
production and consumption, extending the value creation of all products and
materials. Our roadmap is fully inspired by circular economy principles and its
application allows resources to remain in use for longer periods, extracting
maximum value from them. In addition, reuse and recycling contribute to
environmental footprint reduction by helping to improve sustainability within the
cement value chain. It also involves the integration of alternative fuels,
encompassing the exploration, implementation and promotion of sustainable
and environmentally friendly energy sources beyond traditional fossil fuels.
S1 - Own
workforce
Working conditions
Equal treatment
and opportunities
for all
Other work-related
rights
Fully respecting and ensuring the application of diversity equity and inclusion
(DEI) policies throughout the company and all its stakeholders.
The company is dedicated to establishing and endorsing a safe and healthy
workplace environment, free from injuries, fatalities, and illnesses. Since 2022,
all cement plants have been covered by ISO 45001 certification, reinforcing the
company's steadfast commitment to this important topic.
To ensure full respect for human rights, the company is committed to upholding
the rights of all its stakeholders. This commitment is further strengthened by
adhering to the Group's Human Rights policy.
Boosting employee engagement, encouraging teams to improve their
performance at work and ensuring individuals are inspired to continually develop
in their career.
S2 - Workers in
the value
chain
Working conditions
Other work-related
rights
Throughout the entire value chain, the Group ensures that everyone integrates
and adheres to the highest standards in accordance with the company’s policies,
international frameworks, and public commitments.
S3 - Affected
communities
Communities’
economic, social
and cultural rights
Engaging with the communities that the company operate within, ensuring their
active involvement and participation. All by respecting their human rights and
enhancing the efforts towards the distribution of benefits to the local
communities.
S4 - Consumers
and End-users
Information-related
impacts for
consumers and/or
end-users
Encompasses the strategic and operational activities undertaken by our
company to understand, engage with and satisfy the needs of our diverse
customer base. It involves the seamless integration of processes, technologies,
and human interactions to foster positive relationships throughout the entire
customer journey.
G1 - Business
conduct
Protection of
whistleblowers
Corruption and
bribery
Management always operates in full accordance with and respect of the market:
ensuring fair competition, application of anti-corruption practices and policies,
implementation of ethical business practices; all aimed at value creation.
Directors’ Report 2024 Cementir Holding NV | 166
The Company’ strategy is supported by the ERM, through the analysis of climate risks that mostly impact the
company's type of business. The strategy is constantly updated based on the risks monitored through ERM
and the scenario analysis.
The following table lists the sustainability-related impacts, risks and opportunities (IROs) identified and
assessed as material as a result of Cementir’s double materiality assessment process, including a brief
description.
In addition, it also shows:
● whether impacts are positive or negative;
● the time horizon: short term (ST), medium term (MT), long term (LT);
● the scope of the value chain: upstream (U), own operations (OO), downstream (D).
Specific information are included in the topical sections ‘Environment’, ‘Social’, and Governance’. It has to be
noted that in 2024 there were no current financial effects,
ESRS
Topic
Sub-topic
Impact description
Impact
Risk
Opportunity
Time
horizon
Scope
of the
value
chain
E1
Climate
Change
Climate change
mitigation
The production for the undertaking and in particular
the production of cement, leads to direct
greenhouse gas emissions from on-site fuel
combustion and chemical processes, contributing
to climate change with a consequent Negative
Impact on the environment.
Negative
Impact
ST
OO
Climate
Change
Climate change
adaptation
Cementir Holding's own operations, such as the
production processes in their cement plants,
directly emit CO2 and other greenhouse gases
increasing its contribution to global warming.
Negative
Impact
ST
OO
Climate
Change
Climate change
adaptation
The indirect impact comes from the energy
consumption of Cementir Holding's operations,
Negative
Impact
ST
OO
Directors’ Report 2024 Cementir Holding NV | 167
such as the electricity used in their facilities
contributing to climate change.
Climate
Change
Climate change
adaptation
The impact comes from Cementir Holding's Scope
3 emissions and refers to indirect emissions that
occur in the company's value chain, such as those
from the production and transportation of
purchased goods and services. These emissions
contribute significantly to the company's overall
carbon footprint and addressing them is crucial for
achieving broader climate goals.
Negative
Impact
ST
U, D
Climate
Change
Energy
The production for Cementir requires a significant
amount of energy mainly from the direct
combustion of fossil fuels and purchased electricity,
and has intrinsic process emissions, leads to
greenhouse gas emissions that contribute to
climate change and have a Negative Impact on the
environment.
Negative
Impact
ST
OO
Climate change
adaptation
Water risk, including water stress and seasonal
changes, can lead to business interruptions,
resulting in significant revenue losses that Negative
Impact EBITDA. Limited water availability may
hinder production processes, causing delays and
decreased output. The financial implications of
these disruptions, along with potential costs related
to sourcing alternative water supplies or investing in
water-saving technologies, can reduce profitability
and overall financial health.
Risk
Medium
term
U, OO,
D
Climate change
mitigation
The tightening or implementation of new emission
regulations, such as the Carbon Border Adjustment
Mechanism (CBAM), can lead to increased
operational costs for Cementir. These rising costs
may arise from the necessity to invest in
compliance measures or technology upgrades to
meet stricter emissions limits, ultimately impacting
EBITDA. If unable to manage these costs
effectively, Cementir could face reduced profitability
and competitive disadvantage in the market.
Risk
Short
term
U, OO,
D
Climate change
mitigation
Emerging regulations can lead to higher costs and
restrictions on production capabilities for Cementir.
Increased compliance and operational costs
associated with these regulations may hinder
profitability and financial performance. If Cementir
fails to adapt to these regulatory changes, it risks
production slowdowns and lost revenue
opportunities.
Risk
Medium
term
U, OO,
D
Climate change
mitigation
Cementir’s focus on the development and
implementation of Carbon Capture and Storage
(CCS) technology is pivotal in achieving CO2
emission reduction targets. By effectively deploying
CCS, Cementir can not only enhance its
environmental credentials but also secure a
competitive advantage in the market. This strategic
move is likely to improve financial performance
through potential cost savings from avoided
emissions penalties and access to emerging
carbon credit markets, ultimately benefitting
EBITDA and long-term profitability.
Opportunity
Long
term
OO
Climate change
mitigation
70% CARBON CAPTURE
Opportunity
Medium
term
U, OO,
D
Climate change
mitigation
Cementir Group's introduction of new Cement
types, such as FUTURECEM, which reduces CO2
emissions by 30% compared to traditional cement,
positions the Company favourably in a
sustainability-driven market. Innovation not only
addresses growing consumer demand for greener
Opportunity
Medium
term
U, OO,
D
Directors’ Report 2024 Cementir Holding NV | 168
alternatives but also enhances the Company’s
competitive edge. The financial implications include
increased sales, enhanced market share, and
improved profitability, all of which contribute to a
Positive Impact to the Company’s EBITDA and
overall financial health.
Climate change
mitigation
An insufficient product development plan that does
not align with market trends can hinder Cementir’s
ability to produce low-emission products. This
inadequacy may result in missed opportunities to
capitalize on emerging market demands for
sustainable construction materials, subsequently
affecting revenue generation and diminishing
competitive advantages. The lack of viable low-
emission products can adversely impact EBITDA
and overall financial performance.
Risk
Medium
term
OO
Climate change
mitigation
A lack of effective marketing strategies for low-
emission products can lead to missed revenue
opportunities and reduced competitive advantages
in a sustainability-focused market. Consumers
increasingly prioritize sustainable choices, and the
failure to effectively communicate the benefits of
these products can directly impact sales and
Negative Impact EBITDA, resulting in adverse
financial implications.
Risk
Medium
term
OO, D
Energy
The undertaking generates significant direct
greenhouse gas (GHG) emissions, potentially
resulting in higher operating and capital
expenditures from emissions regulations.
Risk
Short
term
OO
Energy
The type of production of the Company requires
significant energy, sourced primarily from direct
fossil fuel combustion as well as from purchased
electricity. The reliance on purchased fuels and
electricity for production costs could lead to
increased financial risk due to rising energy prices.
Risk
Short
term
OO
E2
Pollution
Pollution of air
The combustion and production processes for
cement, both white and grey, and in particular
during the phase of Clinker production, Cementir
emits air pollutants and hazardous chemicals,
including small amounts of organic compounds and
heavy metals, which can Negative impact the
environment, society, and external stakeholders.
Negative
Impact
ST
OO
Pollution
Pollution of air
The use of alternative fuels such as scrap tires and
used oils by construction material manufacturing
companies can lead to the release of harmful
atmospheric pollutants, result having a Negative
Impact external impact.
Negative
Impact
ST
OO
Pollution
Pollution of
water
The undertaking, through its combustion and
production processes, could release trace amounts
of organic compounds and heavy metals, which can
impact water quality.
Negative
Impact
ST
OO
Pollution
Pollution of soil
- The present
impact is still
under
evaluation with
regard to the
quantitative
aspect.
Combustion and production processes of the
undertaking emit air pollutants and hazardous
chemicals, including small amounts of organic
compounds and heavy metals, can affect soil which
can Negative impact the environment, society, and
external stakeholders.
Negative
Impact
ST
OO
Pollution
Pollution of
living
organisms and
food resources
- The present
impact is still
Combustion and production processes of the
undertaking emit air pollutants and hazardous
chemicals, including small amounts of organic
compounds and heavy metals can affect living
organism and food resources, which can Negative
Negative
Impact
ST
OO
Directors’ Report 2024 Cementir Holding NV | 169
under
evaluation with
regard to the
quantitative
aspect.
impact the environment, society, and external
stakeholders.
Pollution
Pollution of air
Air emissions from on-site fuel combustion and
production processes, such as nitrogen oxides,
sulphur dioxides, particulate matter, heavy metals,
dioxins and volatile organic compounds, may incur
higher operating or capital expenditures, regulatory
or legal penalties, and other financial impacts.
Risk
Short
term
U, O
Pollution
Pollution of
water
Water pollution due to combustion and production
process can lead to significant fines, clean-up
costs, and legal liabilities, severely impacting a
company's financial stability and reputation.
Risk
Medium
term
U, O
Pollution
Pollution of
living
organisms and
food resources
Affecting food resources and living organisms by
pollutants and hazardous chemicals from
production processes can result in substantial fines,
clean-up expenses, and legal liabilities, severely
impacting the company's reputation.
Risk
Medium
term
U, O
E3
Water and
marine
resources
Water
consumption
The production of Cementir requires large amounts
of water, which can lead to water scarcity in water
sensitive areas, which can have a Negative Impact
and affecting ecosystems and wildlife.
Negative
Impact
ST
OO
Water and
marine
resources
Water use (incl.
water
withdrawals
and
consumption)
Resulting from the large volumes of water used in
Cement manufacturing and resource extraction
from the quarry, entities face operational, regulatory
and reputational risks associated with water
scarcity, costs of water acquisition, regulations on
effluents or amount of water used, and competition
with local communities and other industries for
limited water resources.
Risk
Short
term
U, O
Water and
marine
resources
Water use (incl.
water
withdrawals
and
consumption)
The inability to secure a stable water supply and
rising water prices could lead to production
disruptions and increased production costs, which
could have a Negative Impact financial impact on
the business.
Risk
Short
term
U, O
Water and
marine
resources
Water use (incl.
water
withdrawals
and
consumption)
Entities face increasing operational, regulatory,
reputational, and financial risks due to water
scarcity, costs of water acquisition, regulations on
effluents or amount of water used, and competition
with local communities and other industries for
limited water resources, particularly in regions
where water is scarce.
Risk
Short
term
U, O
E4
Biodiversity and
Ecosystems
Direct impact
drivers of
biodiversity
loss
Quarrying activities which refer to the extraction of
the materials directly from the surface can
contribute to the direct drivers of biodiversity loss. It
leads to habitat destruction, biodiversity loss, soil
erosion, air and water pollution and generating a
Negative Impact on Biodiversity and Ecosystems.
Negative
Impact
LT
OO
U
E4
Biodiversity and
Ecosystems
Impacts on the
extent and
condition of
ecosystems
Quarrying operations by the undertaking involve the
removal of vegetation and topsoil, as well as the
blasting and crushing of underlying stone deposits,
can lead to permanent alterations of the landscape,
resulting in Negative Impact impacts on the
ecosystem.
Negative
Impact
ST
OO
U
Biodiversity and
Ecosystems
Direct impact
drivers of
biodiversity
loss - climate
change
Entities that lack an effective environmental
management plan for different stages of the project
lifecycle, including restoration during site
decommissioning, may incur increased compliance
costs and legal liabilities.
Risk
Long
term
U,OO
Biodiversity and
Ecosystems
Direct impact
drivers of
biodiversity
Accessing ecologically sensitive areas may pose
regulatory or reputational barriers, resulting in
Risk
Short
term
U,OO
Directors’ Report 2024 Cementir Holding NV | 170
loss - climate
change
financial losses, fines, and/or increased operating
costs.
Biodiversity and
Ecosystems
Direct impact
drivers of
biodiversity
loss - Land use
change
Quarrying, which requires the removal of vegetation
and topsoil, as well as the blasting and crushing of
underlying stone deposits, could lead to increased
extraction costs due to increasing awareness and
protection of ecosystems.
Risk
Short
term
U
E5
Resource use
and circular
economy
Resources
inflows,
including
resource use
Critical issues arising from a lack of raw materials,
fuels, or aggregates can significantly disrupt
production schedules, leading to increased
operational costs and lost sales opportunities.
Risk
Medium
term
U, OO
Resource use
and circular
economy
Waste
Waste from production processes, pollution control
devices and from hazardous waste management
activities present a regulatory risk and can increase
operating costs.
Risk
Medium
term
U, OO
S1
Own Workforce
Working
conditions
Not giving access to secure employment through
stable contract and not promoting the well-being of
people could lead the employees to be stressed
and not satisfied having consequently low
performances on the organization and having a
Negative Impact on business and results of the
undertaking.
Negative
Impact
ST
OO
Own Workforce
Working
conditions
Cementir not ensuring a proper work-life balance
for its employees, not maintain a healthy
equilibrium between private and working life can
have a Negative Impact on employees and
consequently on the performance of the Company.
Negative
Impact
ST
OO
Own Workforce
Working
conditions
The inhalation of silica dust by workers can lead to
the development of chronic health conditions,
resulting in Negative Impact external impacts on
their health.
Negative
Impact
LT
OO
Own Workforce
Other work-
related rights
The use of heavy equipment and quarrying
operations by the undertaking can lead to high
fatality rates, significant health and safety risks for
their employees and contractors.
Negative
Impact
ST
OO
Own Workforce
Working
conditions
The Company through Policies, training and
Whistleblowing channel, guarantee the measure
against violence and harassment in the workplace.
Positive Impact
ST
OO
Own Workforce
Working
conditions
The Company promotes diversity, equity, and
inclusion initiatives which lead to Positive Impact
significant influence of workforce diversity and
consequently provides equal treatment and
opportunity for all.
Positive Impact
ST
OO
Own Workforce
Working
conditions
Severe human rights issues (e.g. forced labour,
human trafficking or child labour) affecting the
undertaking’s own workforce can lead to a Negative
Impact for Cementir.
Negative
Impact
MT
OO
Own Workforce
Other work-
related rights
Water access in some geographical areas where
the Company operates can be difficult due to
scarcity or water stress. For this reason, the
Company is part of the WASH Pledge program with
the aim to take action on the value chain providing
access to safe water, sanitation, and hygiene at the
workplace. By signing this pledge, Cementir
contribute to the implementation of SDG 6 and
provide international best practices on WASH.
Positive Impact
ST
OO
Own Workforce
Other work-
related rights
the increase of awareness of people regarding
regulations of equal opportunities and treatment for
Diversity can lead the company to a risk of
reduction of the number of people interested in
working in the company and may occurs in fines not
respecting the regulations. Both of those can lead
to a reduction of production or increase of costs with
related impact on the EBITDA.
Risk
Short
term
OO
Directors’ Report 2024 Cementir Holding NV | 171
Own Workforce
Other work-
related rights
the increase of awareness of people regarding
regulations of equal opportunities and treatment
regarding gender equality and equal pay for work of
equal value can lead the company to a risk of
reduction of the number of people interested in
working in the company and may occurs in fines not
respecting the regulations. Both of those can lead
to a reduction of production or increase of costs with
related impact on the EBITDA.
Risk
Short
term
OO
Own workforce
Equal
treatment and
opportunities
for all - Diversity
Risks related to accident prevention and health &
safety regulations' violations can lead to medical
and legal expenses as per fines and sanctions.
Risk
Medium
term
OO
Own workforce
Equal
treatment and
opportunities
for all - Gender
equality and
equal pay for
work of equal
value
Geographical areas can have risk related to child
and forced labour can lead to reputational risk and
sanctions, operational costs can increase.
Risk
ST
OO
S2
Workers in the
value chain
Working
conditions
Upstream activities Mining and Quarrying there is
the possibility that contracts (e.g. temporary) do not
guarantee contractual security thus generating a
Negative Impact.
Negative
Impact
ST
U
Workers in the
value chain
Working
conditions
The inhalation of silica dust by workers can lead to
the development of chronic health conditions,
resulting in Negative Impact external impacts on
their health for the workers in the value chain
Negative
Impact
LT
U
Workers in the
value chain
Working
conditions
The use of heavy equipment and quarrying
operations by the undertaking can lead to high
fatality rates, significant health and safety risks for
the workers in the value chain
Negative
Impact
ST
U
Workers in the
value chain
Other work-
related rights
Severe human rights issues (e.g. forced labour,
human trafficking or child labour) affecting the
undertaking’s value chain workers can lead to a
Negative Impact for Cementir.
Negative
Impact
MT
U
Workers in the
value chain
Working
conditions -
Health and
safety
Risks related to accident prevention and health &
safety regulations' violations can lead to financial
effects related to cost increase for sanctions due to
mismanagement of resources.
Risk
Long
term
U
Workers in the
value chain
Working
conditions -
Health and
safety
Risks related to vendors, haulers, clients,
subcontractors’ injuries during the service
performing or in close proximity of the company's
plant can lead to significant reputational damage
and legal liabilities. These incidents could result in
increased insurance costs, potential legal
settlements, and loss of business. Such financial
impacts would likely contribute to a decrease in
EBITDA.
Risk
Medium
term
U, D
Workers in the
value chain
Working
conditions -
Health and
safety
Worker injuries, illnesses, and fatalities can lead to
regulatory penalties, Negative Impact publicity, low
worker morale and productivity, increased
healthcare and compensation costs, and potential
litigation, all of which can have a significant financial
impact on the business.
Risk
Medium
term
U, OO,
D
Workers in the
value chain
Other work-
related rights -
Child labour
Forced labour
Geographical areas can have risk related to child
and forced labour can lead to reputational risk and
sanctions, operational costs can increase.
Risk
Medium
term
U, OO,
D
S3
Affected
communities
Communities'
economic,
social and
cultural rights
The production of Cementir requires large amounts
of water, which can lead to water scarcity in water
sensitive areas, which can have a Negative Impact
on local communities and other industries dealing
with limited water resources
Negative
Impact
MT
U, OO,
D
Directors’ Report 2024 Cementir Holding NV | 172
Affected
communities
Communities'
economic,
social and
cultural rights
Accessing ecologically sensitive areas may pose
regulatory or reputational barriers, resulting in
financial losses, fines, and/or increased operating
costs.
Risk
Medium
term
U, OO
S4
Consumers and
end-users
Information-
related impacts
- Privacy
Sensitive data exposure can lead to serious
consequences, including identity theft, financial
fraud, and damage to the undertaking's reputation.
The data breaches can lead to legal and
compliance consequences but also to the loss of
customers with a consequent loss of revenues.
Risk
Short
term
D
G1
Business
Conduct
Protection of
whistle-blowers
Whistleblowing Channel Policy with reference to
confidentiality and anonymous complaint report
potential misconduct or concerns with the aim to
correct the problem timely without compromising
the company's reputation, transparency and
prevent financial risk/damages.
Risk
Short
term
U, OO,
D
Business
Conduct
Corruption and
bribery -
Prevention and
detection
including
training +
incidents
Risks related to money laundering regulations'
violations can lead to a financial loss for criminal
and civil fines as per penalties and reputation
damage that can drive to a loss of sales and
consequently on revenues.
Risk
Long
term
OO
Business
Conduct
Corruption and
bribery -
Prevention and
detection
including
training +
incidents
Risks related to anti-corruption regulations'
violations can lead the Company to pay fines and
sanctions and can affect economic development,
debarment from public contracts, and reputational
damage.
Risk
Long
term
OO
Business
Conduct
Corruption and
bribery -
Prevention and
detection
including
training +
incidents
Business activity leading to price fixing or other
manipulation of prices may result in material legal
fines, business disruption, and financial losses.
Risk
Long
term
U, OO,
D
Policies, Action plans, Metrics and Targets
Cementir explores the Sustainable Management Model with the governance tools to support maintenance and
creation of values, relationships with Stakeholders and related connection with the development of financial,
productive, intellectual, human, natural, social and relational capitals.
United Nations Global Compact  
Cementir became a participant in the United Nations Global Compact (UNGC) in 2022. Since joining, the
company has publicly disclosed its data through the official UNGC platform, the Communication on Progress
(CoP).
The UNGC offers leadership guidelines aimed at inspiring advanced and innovative sustainability performance
management across the global business community. By adhering to these principles, Cementir has
consistently enhanced its ability to create and sustain long-term value through sustainable practices.
Every year, the United Nations Global Compact proposes a series of initiatives to provide support in the
definition of strategies and partnerships for the pursuit of Sustainable Development Goals launched in
September 2015 in New York with the aim of accompanying the activities of sustainable companies until
2030.
Directors’ Report 2024 Cementir Holding NV | 173
The present Report reflects the integrated Sustainability model adopted by Cementir which is following the
Ten Principles of the United Nations Global Compact (here in after “UNGC”).
The Ten Principles of the UNGC are the following:  
Human Rights
● Principle 1: states that Businesses should support and respect the protection of internationally
proclaimed human rights;
● Principle 2: requires Businesses to ensure that they are not complicit in human rights abuses.
Labour  
● Principle 3: Businesses should uphold the freedom of association and the effective recognition of the
right to collective bargaining;
● Principle 4: the elimination of all forms of forced and compulsory labour;
● Principle 5: the effective abolition of child labour;
● Principle 6: the elimination of discrimination in respect of employment and occupation.
Environment
● Principle 7: Businesses should support a precautionary approach to environmental challenges;
● Principle 8: requires Businesses to undertake initiatives to promote greater environmental
responsibility;
● Principle 9: encourage the development and diffusion of environmentally friendly technologies.
  Anti-Corruption 
● Principle 10: Businesses should take part in fight against corruption in all its forms, including extortion
and bribery.  
The over mentioned principles are derived from: the Universal Declaration of Human Rights, the International
Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on
Environment and Development, and the United Nations Convention against Corruption.
The foundations of corporate sustainability are laid by a company’s value system and a principles-based
approach to doing business which imply for that company to adopt operating standards that, at a minimum,
meet fundamental responsibilities in the areas of human rights, labour, environment and anti-corruption.
Responsible businesses enact the same values and principles wherever they have a presence and know that
good practices in one area do not offset harm in another. By incorporating the Ten Principles of the UNGC
into strategies, policies and procedures, and establishing a culture of integrity Cementir is not only upholding
its basic responsibilities to people and planet but also setting the stage for long-term success.
United Nations Sustainable Development Goals  
Cementir continues to be inspired by the seventeen Sustainable Development Goals of the United Nations
(here in after “SDGs”) designed to accompany the activities of sustainable companies up to 2030. The SDGs
are the blueprints to achieve a better and more sustainable future for all that address the global challenges
and that companies have to face out, including those related to poverty, inequality, climate change,
environmental degradation, peace and justice.
Directors’ Report 2024 Cementir Holding NV | 174
The 17 Goals are all interconnected, and in order to leave no one behind, it is important that all the companies
work to achieve them all by 2030.
The Sustainability Plan has been developed in accordance with the “Value Driver” model drawn up by the
UNGC and sets targets that combine growth, productivity, Governance and Risk Management. Moreover,
through the adoption of the Ten Principles of the UNGC and the inspiration for the 17 SDGs, the Company
endeavours to create the perfect correlation between the four main areas of the Ten Principles and the SDGs,
where indeed the latter address the former in a more detailed manner.
Below, the breakdown of all the principles impacted through the company’s operations and strategies.
UN
SDGs
Target
CO2 reduction target for grey and white cement
13
Detailed
description
The Group has defined a Roadmap to 2030 that will allow for the constant reduction of CO₂
emissions per ton of cement. The Group will reduce emissions of CO₂ per ton of grey cement to
458 kg, which is below the limits required by the European Taxonomy and equates to a 36%
reduction from 2020 levels. For white cement, CO₂ emissions will be reduced to 737 kg per ton
of cement.
2024 Results
The implementation of the Roadmap is proceeding as planned. In 2024, emissions per ton of
grey cement were 655 kg, down 9% compared to 2020, while emissions per ton of white cement
were 846 kg,
down 7% compared to 2020.
Deadline
2030
2050
Progress
Target in line with the planned roadmap
Section
Cementir roadmap
13
Target
Net zero emissions
Detailed
description
The goal of the Group is to reduce Scope 1, 2 and 3 emissions to zero or to a residual level that
is consistent with reaching net-zero emissions at the
global level in eligible 1.5°C scenarios and to neutralise any residual
emissions at the net-zero target date.
2024 Results
In February 2024, the Science Based Targets Initiative (SBTi) validated
that the CO₂ reduction targets for the near-term (2030) and long-term
(2050) defined by Cementir are in line with the 1.5°C Scenario.
Deadline
2050
Progress
Target in line with the planned roadmap
Section
Based Targets Initiative
2050 ambition
Value chain engagement
Directors’ Report 2024 Cementir Holding NV | 175
Cementir’s Scope 3 emissions
7,9,12
Target
€ 100 million investments in the 2024-2026 period
Detailed
description
The 2024-26 Industrial Plan, approved by the Board of Directors in February 2024, targets € 100
million investments in Sustainability and Digitalisation, which will include, among others:
preliminary studies for CCS in Denmark and Belgium; the kiln upgrade at the Belgian plant to
increase the use of alternative fuels from the current 40% to over 70%; the transition to natural
gas in some of the Group's plants, the preparation of the structures necessary for the production
of FUTURECEM® in Denmark.
2024 Results
In February 2024, the Board of Directors approved the 2024-2026 Industrial Plan.
Deadline
2026
Progress
Target in line with the planned roadmap
Section
Main investments to achieve CO₂ reduction targets
13
Target
Lowering clinker content of grey cement to 64%
Detailed
description
FUTURECEMR, is a low carbon cement which allows more than 35 % of the energy intensive
clinker in cement to be replaced by limestone and calcined clay. By 2030, FUTURECEMR
volumes sold are expected to reach around 51% of total volumes sold in Europe and 60% of grey
cement volumes.
2024 Results
In 2024, the clinker ratio for grey cement was increased to 80%, from the 79% of 2023.
In January 2021, Cementir started the distribution of FUTURECEM and the sales expectations
were fully met in the period till 2024.
Deadline
2025
2030
Progress
Target in line with the planned roadmap
Section
Cementir Roadmap
12,13
Target
48% alternative fuel use for grey cement production by 2030
Detailed
description
The Group target has individual goals for each plant producing grey cement. The overall Group
target defined, which also has intermediate targets for 2025, has a final target date of 2030.
2024 Results
In 2024, the use of alternative fuels increased by 1% percentage points
compared to 2023 (34% in 2024 versus the 33% of 2023).
Deadline
2025
2030
Progress
Target in line with the planned roadmap
Section
Cementir Roadmap
13
Target
Lowering clinker content of white cement to 78%
Directors’ Report 2024 Cementir Holding NV | 176
Detailed
description
For white cement, CO₂ emissions will be reduced to 737 kg per ton of cement. The reduction will
be achieved by replacing traditional fuels with fuels that have a lower emission impact, in
particular natural gas and other alternative fuels such as biomass, and by replacing clinker with
mineral additives, such as limestone.
2024 Results
In 2024, the clinker ratio for grey cement was increased to 80%, from the 79% of 2023. In
January 2021, Cementir started the distribution of FUTURECEM and the sales expectations were
fully met in the period till 2024.
Deadline
2025
2030
Progress
Target in line with the planned roadmap
Section
Cementir Roadmap
12,13
Target
6% alternative fuel use for white cement production by 2030
Detailed
description
For white cement, CO₂ emissions will be reduced to 653 kg per ton of cement. The reduction
will be achieved by replacing traditional fuels with fuels
that have a lower emissions impact, in particular natural gas and other alternative fuels such
as biomass, and by replacing clinker with
mineral additives, such as limestone.
2024 Results
In 2024, the Group’s treatment plants produced a total of 15,569 tons of fuel from waste.
Deadline
ongoing
Progress
Target in line with the planned roadmap
Section
Cementir Roadmap 2030
Target
Production of alternative fuels from waste
Detailed
description
The Group’s plants produce alternative fuels and thermal energy, minimizing landfill waste
and contributing to the reduction of greenhouse gas (GHG) emissions.
12,13
2024 Results
In 2024, the Group’s treatment plants produced a total of 15,569 of fuel from waste.
Deadline
ongoing
Progress
Target in line with the planned roadmap
Section
Waste processed in 2024
Target
Companies must operate with a certified environmental management system (i.e. ISO
14001)
12
Detailed
description
The Group plans to certify all cement plants by 2025 and all RMC plants by 2027.
2024 Results
As of 2024, 8 cement plants (accounting for the 93% of total cement
Directors’ Report 2024 Cementir Holding NV | 177
production), 3 RMC companies (accounting for the 30% of total RMC production) and one waste
management companies (accounting for the 100% of waste managed by the group) are ISO
14001 certified.
Deadline
2025
2027
Progress
Target in line with the planned roadmap
Section
We respect the environment in all our operations (Page 139)
6
Target
Group water related targets
Detailed
description
The Group has defined a 10-Year Roadmap that will allow for the reduction of the water
consumption per ton of cement produced by 20% compared to 2019 (plan baseline). Concerning
the plants located in high water stress areas, for which the specific water consumption is already
lower than the Group average, the reduction target is 25%.
2024 Results
In 2024, specific water consumption was further reduced.
In 2024, water consumption was 373 litres per ton of cement, versus 387 recorded in 2023.
For plants located in high water-stress areas, water consumption was 241 litres per ton of cement
versus 246 recorded in 2023.
Deadline
2030
Progress
Target in line with the planned roadmap
Section
Responsible and efficient use of water (Page 145)
15
Target
Biodiversity preservation
Detailed
description
Cementir is committed to minimising negative impacts and where possible enhancing biodiversity
by following the established international best practices. Rehabilitation plan in all active sites by
2025: 100%. Biodiversity value assessment of all active sites and Biodiversity Management Plan
for all high biodiversity sites by 2030.
2024 Results
As of 2024, 95% of quarry rehabilitation plans are in place. In 2022, Cementir issued the
biodiversity and rehabilitation guidelines to set Group wide standards and targets aligned with
international best practices to review all existing biodiversity plans in place, identify improvements
in rehabilitation plans and identify quarries with high biodiversity value.
Deadline
2025
2030
Progress
Target in line with the planned roadmap
Section
Extraction activities, rehabilitation and biodiversity
Target
Supporting Denmark in delivering a 70% reduction in
greenhouse gases by 2030
Detailed
description
Through Aalborg Portland, the Group is involved in the most ambitious CO2 reduction project
sponsored by a government. Aalborg Portland is leading the technical group that will provide the
Danish government with a technical forecast of all potential CO2 reductions achievable by energy
Directors’ Report 2024 Cementir Holding NV | 178
intensive industries in Denmark and will define the prerequisites (policy, research,
innovation, subsidies, etc.) for such reductions.
2024 Results
Aalborg Portland has committed to reducing its Scope 1 emissions to maximum 600.000 tonnes
by 2030. This reduction entails delivering a 73% reduction of Scope 1 emission compared to
2021 levels.
Deadline
2030
Progress
Target in line with the planned roadmap
Section
Cementir Roadmap
4
Target
Sustainable talent management
Detailed
description
Key positions are filled internally with top-class candidates worldwide.
2024 Results
In 2024, a Group talent review was conducted with the aim of obtaining an
overview of performance trends and assessing potential readiness for
advancement into higher or more complex roles. This process enabled us to identify key
individuals for retention through development plans and to
pinpoint key roles that need to be filled by a roster of potential successors in the short, medium,
and long term, thereby ensuring business continuity.
Deadline
ongoing
Progress
Target in line with the planned roadmap
Section
Talent review and succession plans for key positions within the Group
Cementir academy
5,10
Target
Promoting diversity in the workforce
Detailed
description
Cementir is committed to promoting diversity in the workforce.
2024 Results
In 2021, the Group Internal Audit defined a work program for diversity, equity, and inclusion (DEI)
audits. In 2024, the audits were carried out in all of the Group’s companies, with a coverage of
100% of Cementir’s workforce worldwide. The analyses highlighted that, internal operations are
in line with internationally recognized diversity, equity and inclusion principles, furthermore no
risks were identified during the audit activities.
Deadline
ongoing
Progress
Target in line with the planned roadmap
Section
Commitment to Diversity Equity and Inclusion (DEI)
Diversity, Equity and Inclusion audits performed in 2023
3
Target
People engagement
Directors’ Report 2024 Cementir Holding NV | 179
Detailed
description
Increase engagement across the Group by listening, engaging and implementing improvement
plans.
2024 Results
In November 2022 the Cementir Group launched its second Global People Survey, ‘Your Voice’.
Mirroring the survey performed in 2019, this survey involved all Cementir employees.
Deadline
ongoing
Progress
Target in line with the planned roadmap
Section
Group People Survey
3,8
Target
Zero accidents strategy
Detailed
description
To achieve it the Group is focusing on:
• Leadership in practice
• Commitment & Responsibility
• Risk Management
• Involvement & Participation
• Competence & Awareness
• Continuous improvement
2024 Results
In 2024, there were no fatalities among employees and contractors/subcontractors.
Deadline
ongoing
Progress
Target in line with the planned roadmap
Section
Health and safety are a common value
8
Target
All RMC plants must operate with a certified health and safety management system (i.e.
ISO 45001
Detailed
description
The Group plans to certify all RMC plants by 2027.
2024 Results
As of today, RMC plants are not certified ISO 45001.
Deadline
2027
Progress
Target in line with the planned roadmap
Section
Health and safety are a common value
Target
Quality education for employees
Detailed
description
In 2018, the Group launched the Cementir Academy, a training hub that aims to develop and
enhance the technical, behavioural and managerial skills of all our employees.
2024 Results
More than 80,000 hours of training were provided in 2024.
Deadline
ongoing
Directors’ Report 2024 Cementir Holding NV | 180
Progress
Target in line with the planned roadmap
Section
Cementir Academy (Page 170)
13,8
Target
Link between employee remuneration and sustainability targets
Detailed
description
The sustainability targets defined by the Group are included in the monetary incentive plan
adopted by Cementir.
2024 Results
The remuneration of the whole C-level is strictly linked to ESG topics (e.g. Occupational Health
& Safety, CO2 emissions reduction and so on), specifically these KPIs account for the 15 - 20 %
of their remuneration.
Deadline
2024
Progress
ongoing
Section
Remuneration strategy
5,10
Target
Promotion of gender equality with an objective of at least 30% of the Board of Directors
being women
Detailed
description
Implementation of a specific Group Diversity Policy.
2024 Results
As of December 2024, the Board was composed for its 50% by women, outperforming the
defined target.
Deadline
ongoing
Progress
ongoing
Section
The Corporate Governance system
6,13
Target
Transparent communication with stakeholders
Detailed
description
In 2024, filling in the CDP Climate Change Questionnaire and Water Security Questionnaire and
an assurance by the external auditors.
2024 Results
In 2024, Cementir was awarded ‘A’ for the management of climate change issues and A- for
water management. In 2024, a limited assurance engagement on the Sustainability Statement
was provided by external auditors.
Deadline
2024
Progress
ongoing
Section
Cementir’s commitment on carbon related public policy
Independent Auditor's Report
4
Target
Quality education for the local community
Detailed
description
In Türkiye, the Group supports the Cimentaş Education and Health Foundation. Since it was
founded, the Foundation has sponsored over 500 scholarships for secondary school and
Directors’ Report 2024 Cementir Holding NV | 181
university students. Thanks to the Foundation’s financial support, the Işıkkent High School was
founded.
2024 Results
The Işıkkent High School provides education at all levels from nursery school to secondary
school.
Deadline
ongoing
Progress
Target in line with the planned roadmap
Section
Cimentaş Education and Health Foundation
10
Target
Implementation of monitoring systems to eliminate human rights related risks across the
Group
Detailed
description
A human rights self-assessment checklist, based on the Cementir Code of Ethics, UN Declaration
on Human Rights, ILO Conventions and UK Slavery Act has been established and has been
included in the Internal Audit process. Starting from 2020, the Internal Audit Department has
verified the effective compliance of each company in the following areas: child labour, forced
labour, non-discrimination, conditions of employment, security, and supply chain management.
In 2022 new categories of analysis have been implemented: community relationship, customers
management and diversity, equity and inclusion.
2024 Results
In 2024, this activity was conducted across the main companies, achieving 100% coverage of
Cementir's global workforce. It involved operations in the following countries: Belgium, Denmark,
Norway, Türkiye, the United States, China, Malaysia, Egypt, Italy, and Poland. The analyses
carried out in 2024 confirmed that internal operations align with internationally recognized human
rights standards, and no risks were identified during the audit activities
Deadline
ongoing
Progress
Target in line with the planned roadmap
Section
Commitment to Human Rights
Science Based Targets Initiative (SBTi)
Cementir is committed to developing a business model in line with the sustainability strategic goals and the
CO2 emission reduction targets judged by the Science Based Targets initiative (SBTi) to be consistent with a
1.5°C world.
In February 2024, the Science Based Targets Initiative (SBTi) validated that the CO2 reduction targets for the
near-term (2030) and long-term (2050) defined by Cementir are in line with the 1.5°C Scenario. SBTi disclosed
the approval of the target on February 29, 2024.
Overall Net-Zero Target
Cementir Holding N.V. commits to achieving net-zero greenhouse gas (GHG) emissions across the value
chain by 2050.
Near-Term Targets
Cementir Holding N.V. commits to reduce gross scope 1 and 2 GHG emissions 29.33% per ton of cementitious
product by 2030 from a 2021 base year. Cementir Holding N.V. commits to reduce gross scope 3 GHG
Directors’ Report 2024 Cementir Holding NV | 182
emissions from purchased goods and services 23.00% per ton of purchased clinker and cement by 2030 from
a 2021 base year.
Long-Term Targets
Cementir Holding N.V. commits to reducing its gross Scope 1 and 2 GHG emissions by 96.1% per ton of
cement by 2050 from a 2021 base year. Cementir Holding N.V. commits to reduce absolute scope 3 GHG
emissions 90% by 2050 from a 2021 base year
3
.
ESG ratings
In recent years ESG ratings have become increasing significant and enable external stakeholders to have a
comprehensive view of the company’s approach to environmental, social and governance issues.
Furthermore, these ESG issues also drive investment decision and are instrumental in defining sustainable
investment strategies.
The annual participation of Cementir in both solicited and unsolicited ESG ratings is always a valuable
opportunity to improve overall. The process followed by the company for each rating leads to deep internal
analysis, a significant reshaping of its actions and often an awareness of the multitude of best practices
adopted.
Cementir’s ESG ratings for 2024 indicate both confirmations in several areas and improvements in others.
Notably, the company has been recognized as an ESG Industry Top-Rated company by Sustainalytics and
named a Climate Leader by the Financial Times. These results underscore the Group's strong commitment to
sustainability and the various initiatives implemented over time to enhance its positive impact on society as a
whole.
3
The target boundary includes land-related emissions and removals from bioenergy feedstocks.
Directors’ Report 2024 Cementir Holding NV | 183
Following, a summary of Cementir’s ESG ratings.
ESG ratings
Rating
Description
2022
2023
2024
CDP Climate
Change
A-
A-
A
In February 2025, Cementir has been included in CDP’s
prestigious “A list” for the first time, recognizing the
company’s strategies and actions to mitigate climate
change and embrace corporate transparency. This
achievement underlines the significant progress Cementir
has made in four years, from its initial “B” rating in 2020.
CDP Water
Security
A-
A-
A-
In February 2025, Cementir has also maintained its
leadership in CDP Water Security with an A- score for the
third year in a row.
Refinitiv
B+
A-
A-
In January 2025 LSEG (formerly Refinitiv) assigned
Cementir an A- rating with a score of 77/100, ranking 9
th
out of 125 companies in the Construction Materials
sector.
MSCI
BBB
A
A
In September 2024, Cementir Holding has received an A
rating from MSCI for the second year in a row for its strong
performance in environmental, social, and governance
(ESG) areas.
S&P
54/100
56/100
61/100
In January 2025, Cementir Holding has achieved a
Corporate Sustainability Assessment (CSA) score of
61/100 in the 2024 S&P Global CSA, marking a 5-point
improvement from 2023.
Sustainalytics
Not
scored
29.2
(Medium
Risk)
22.3
(Medium
Risk)
In October 2024, with an improved ESG Risk Rating of
22.3 (Medium Risk), Cementir has been recognized as an
ESG Industry Top-Rated company by Sustainalytics,
ranking 7
th
out of 128 construction materials companies
assessed globally.
ISS
Not
scored
C+
Prime
C+
Prime
In 2023, Cementir received a C+ Prime, rating above the
average for industry peers. Companies are categorised as
Prime if they exceed the sustainability performance
requirements defined by ISS ESG for a specific industry
(absolute best-in-class approach) in the ESG Corporate
Rating.
EthiFinance
64/100
70/100
75/100
In 2024, Cementir was scored 75/100 by EthiFinance.
With the score obtained, Cementir is above the average
of the 168 companies subject to the rating belonging to
the Materials sector.
Integrated
Governance Index
57/100
52/100
55.99/10
0
In June 2024 Cementir received a score of 55.99/100, with
an ESG identity of Leader. The questionnaire assesses
Directors’ Report 2024 Cementir Holding NV | 184
the degree of integration of ESG factors into company
strategy
Climate Leaders
Not
included
Not
included
Climate
Leader
In April 2024, Cementir has been recognized as Europe’s
Climate Leaders for 2024. This annual Financial Times
and Statista survey lists the 600 European companies that
have made the most progress in cutting their carbon
emissions intensity over a five-year period.
The impact of the value chain on climate change and water security
To fully understand the environmental impact of a company’s economic activities, it is insufficient to focus
solely on its direct emissions and risks. A comprehensive evaluation requires engaging the entire value chain
to assess and enhance performance.
Value chain engagement is a critical element in managing risks, ensuring quality, fostering innovation, and
aligning with ethical and sustainable practices. This collaborative approach strengthens a company’s resilience
and competitiveness in the marketplace.
Recognizing this, Cementir began calculating its Scope 3 emissions in 2020. This initiative aimed to increase
suppliers’ awareness of climate change while identifying priority areas for emission reductions across the value
chain, following science-based guidelines.
To further this effort, Cementir enriched its supplier engagement process by participating in the CDP Supply
Chain program. Since 2020, an increasing number of strategic suppliers have been invited to complete the
Climate Change Questionnaire. This questionnaire requires suppliers to disclose information on climate-
related risks and opportunities, emissions data, their emissions management strategies (including targets),
and the actions they have implemented to reduce emissions.
Cementir has also worked to embed best practices for supplier engagement, encouraging climate action
throughout its supply chain. In recent years, Cementir has actively educated its suppliers by providing access
to training materials and resources, thereby influencing them to take meaningful climate action and reduce
emissions.
Starting in 2023, Cementir expanded its supplier engagement process by inviting suppliers to complete the
Water Security Questionnaire. This module helps identify water resources used by suppliers in their operations
and supply chains, assesses their water risk management procedures, and evaluates mitigation strategies or
opportunities. This initiative underscores Cementir’s commitment to preserving and safeguarding valuable
natural resources. As in previous years, the company’s engagement efforts have focused on its Top Group
Suppliers—those deemed strategic due to factors such as spending volume, geographic location, or the type
of raw materials and services provided.
Below are the results from 2024, for both questionnaires, through the involvement of suppliers.
Results from 2024 Supplier Engagement Efforts
Below are the key outcomes from both the Climate Change and Water Security Questionnaires for 2024:
Directors’ Report 2024 Cementir Holding NV | 185
1. CDP Supply Chain – Climate Change
● The number of suppliers responding to the Climate Change Questionnaire increased by 11 compared
to 2023.
● 88% of responding suppliers (65 out of 74) have implemented emission reduction initiatives.
● 81% of responding suppliers (60 out of 74) have set climate targets.
● 84% of responding suppliers (62 out of 74) are engaging their own supply chains on climate change
topics by encouraging compliance with requirements such as GHG emissions disclosure and target-setting.
Supplier Engagement Progress Over Time:
2024
2023
2022
2021
2020
A) Suppliers involved
173
154
110
75
55
B) Suppliers that responded
74
63
43
29
17
C) Response rate (B/A)
43%
41%
39%
39%
31%
D) Climate Targets
60
57
32
24
Not
monitored
E) Target Approved by SBTi
35
38
Not
monitored
Not
monitored
Not
monitored
F) Target aligned with SBTi, but not
approved yet
11
6
Not
monitored
Not
monitored
Not
monitored
H) Suppliers engaging their own suppliers
62
55
39
26
Not
monitored
1. CDP Supply Chain – Water Security
a. The 100% of responding suppliers have a risk assessment procedure in place
b. The 85% of responding supplier report withdrawal from water stressed areas
c. The 100% of responding suppliers report water-management at the C-suite
d. The 91% of responding suppliers report water targets or goals, with a prevalence of WASH targets
2024
2023
A) Suppliers involved
173
154
B) Suppliers that responded
53
34
C) Response rate (B/A)
31%
22%
To support suppliers’ engagement and boost the response rates, dedicated supplier training webinars have
been held since 2020.
This training aims to communicate the importance and benefits from transparently reporting on emissions,
climate impact and water security.
Membership
Cementir is actively involved in global and national industry policy discussions on issues related to climate
change, sustainable infrastructure, innovation and digital transformation, operational efficiency, health and
safety, the circular economy, alternative fuels, and waste management frameworks, among others.
Directors’ Report 2024 Cementir Holding NV | 186
To achieve such challenging goals Cementir believes that collaboration with industries, associations,
governments, society, policy makers, researchers and innovators plays a fundamental role by being of crucial
importance.
Cementir is collaborating with some of the major global associations with which to tackle climate change and
develop innovative and sustainable solutions. Furthermore, at the local level, subsidiaries are also involved in
specific business associations, according to the business in which it operates.
Cementir is a member of the Global Cement and Concrete Association (GCCA), with the aim of fostering
innovation and collaboration with industry associations and inspiring architects, engineers and innovators
across the globe and along the length of the built environment value chain. Through the GCCA, in 2019,
Cementir joined Innovandi, a network connecting cement industry and scientific institutions to drive new ways
of working and innovations, with the contribution of several representatives. Cementir is also involved in
specific working groups arranged by the GCCA for the development of sector guidelines concerning the
definition of a net zero roadmap, the management of health and safety and ESG reporting.
In February 2024, the Science Based Targets initiative (SBTi) validated Cementir’s CO
2
emission reduction
targets, judging them to be consistent with the 1.5 °C scenario see paragraph “Science Based Targets Initiative
(SBTi)”.
Cementir is a member of the European Cement Research Academy (ECRA).
The ECRA’s most important research projects are related to carbon capture and storage (CCS) technology.
The Group is also a member of the CEMBUREAU (European Cement Association), through which it is
directly involved in dedicated working groups that are participating in advocacy regarding new legislation, as
well as providing feedback to the EU Commission concerning the EU Taxonomy, CSRD (Corporate
Sustainability Reporting Directive) and with the aim of supporting the sustainability agenda of the cement
industry.
In CEMBUREAU, Cementir participates in the following bodies:
• Board;
• Climate & Energy;
• Resources and Processes;
• Health & Safety;
• Markets and Products.
Finally, since November 2019, through the Danish subsidiary, Aalborg Portland, the Group has been involved
in the most ambitious CO₂ reduction project ever sponsored by a national government. In autumn 2019, the
Danish government made a broad political agreement with all political parties, including one at the
parliamentary level, on a binding climate law with the target of reducing Danish CO₂ emissions by 70% by
2030 compared with the 1990 baseline. The Chief Commercial Officer of Aalborg Portland is leading the
climate partnership for Danish energy-intensive industry. The working group will provide the Danish
government with a technical forecast of all potentially achievable CO₂ reductions and will define the
prerequisites (policy, research, innovation, subsidies, etc.) for such reductions.
Cementir’s approach to taxes
The Cementir group adopts a decentralized tax management model with reference to the local tax compliance
where all the associated companies manage locally their own tax obligations in accordance with the respective
regulations.
Directors’ Report 2024 Cementir Holding NV | 187
Global, complex or extraordinary tax matters are then coordinated centrally, such as transfer pricing policy
and extraordinary operations, with the support of third-party consultants’ companies.
Local Chief Financial Officers and Finance Managers have been invited to engage first-class tax consultants
to enhance the level of competences required by the local operations and to be consistently up to date with
the evolution of local laws and regulations.
The Cementir group does not include companies or branches located in so called tax heavens or in any case
in countries with a reduced direct or indirect taxation and does not adopt aggressive tax planning strategies
consisting of incorporation of artificial schemes and entities nor tax-driven transactions in order to obtain tax
savings and advantages.
As far as commercial transactions are concerned, from a transfer pricing perspective, group’s guidelines were
introduced in order to comply with various countries requirements.
Given the internationalization of Cementir group, the global approach to tax is inspired by the guidelines
provided by OECD and by the application of the Treaties for the avoidance of double taxation, where
applicable.
The Cementir group manages its approach to tax with full transparency and collaborative approach, by
complying with the local legislation of the various countries in which the Group operates.
Tax risks may lead to a negative effect on the business goals of the organization and/or to financial or
reputational damages.
In this respect, tax risks are in the scope of the Cementir group’s risk management framework. Tax risks are
then monitored within the group risk management processes and a dedicated set of controls and testing
instruments are dedicated to local tax compliance matters.
Main purpose is to control and limit those risks and to avoid possible situations conflicting with local authorities’
interpretation of tax regulations.
In addition, as already mentioned in the paragraph ‘The Code of Ethics’ a whistleblowing system has been in
place since 2013, which can be used to report breaches of the principles and rules set out in the Code of
Ethics and the policies adopted by the Group, or to report non-compliance with laws and regulations.
The specific and qualified tax knowledge at associated companies’ level and the recourse to tier 1 tax
consultants, contribute to the proper management of the tax risk within the group as well as to the alignment
of the tax approach to the requirements of the countries in which the group operates.
The Cementir group maintains relationships with local tax authorities with respect to information on rules
interpretation, contacts during tax audits / inspections as well as ruling procedure, where appropriate.
Local Chief Financial Officer / Finance Manager address these situations with a fully transparent and
collaborative approach as well as with a strong focus on the group’s business and on the business, model
adopted in order to avoid any sort of misinterpretation of group and associated companies’ behaviours.
The Group recognizes the relevance of a transparent management of tax issues, also given its global presence
and for this reason, in the next page please see the quantitative information concerning the ‘country-by-
country’ reporting.
Directors’ Report 2024 Cementir Holding NV | 188
Country
Description
N.
emplo
yees
Revenues
from third-
party sales
(EUR) [1]
Revenues
from intra-
group
transactions
with other tax
jurisdictions
(EUR)
Profit/loss
before tax
(EUR)
Tangible
assets other
than cash
and cash
equivalents
(EUR)
Corporate
income tax
paid on a
cash
basis
(EUR)
Corporate
income tax
accrued
on
profit/loss
(EUR)
Italy
Sales, marketing or
distribution; Administration,
management or support
services; Holding of shares or
other equity instruments;
Other
34
33521471
115074000
10353000
2813035
-1327813
-3411000
Holding
Ownership or management of
intellectual property rights;
Administration, management or
support services; Internal group
financing; Ownership of shares
or other equity instruments
44
0
0
-27250000
17330931
0
2815000
Australia
Sales, marketing and distribution
of cement.
5
21401271
0
1113000
439683
-337261
-348.000
Belgium
Manufacturing of cement and
concrete;
sales, marketing or distribution.
439
264104084
58773000
56228000
357392863
-17128002
-
16.902.000
China
Manufacturing of cement; sales,
marketing or distribution.
223
55097046
10000
8703000
34350763
-1739194
-1.149.000
Denmark
Ownership and management of
intellectual property rights;
Manufacturing or production of
cement and concrete; sales,
marketing or distribution; Internal
group financing; Holding of shares
or other capital instruments.
794
407383322
70360000
121040000
248482147
-28753299
-
25.870.000
Egypt
Manufacturing of cement; Sales,
marketing or distribution.
73
33686162
12578000
39413000
16431500
-2548416
-5.449.000
France
Manufacturing of concrete; sales,
marketing or distribution.
33
97370821
6000
3834000
7070391
-1313214
-973.000
Iceland
Sales, marketing and distribution
of cement.
10
20459764
0
1570000
1987975
-106467
-313.000
Malaysia
Manufacturing of cement; sales,
marketing or distribution.
191
28038632
15561000
1370000
31629503
-998497
-909.000
Norway
Manufacturing of concrete; sales,
marketing or distribution.
115
93294252
0
-4924000
26294888
0
0
Poland
Sales, marketing and distribution
of cement.
8
28848613
40000
1053000
635009
-203811
-196.000
Russia
Sales, marketing and distribution
of cement.
0
0
0
0
0
0
-
Spain
Holding of shares or other capital
instruments.
0
0
0
-321000
0
-2265037
-720.000
Directors’ Report 2024 Cementir Holding NV | 189
Sweden
Manufacturing of concrete; sales,
marketing or distribution.
110
45377925
2172000
3031000
19587178
-943974
-574.000
Türkiye
Manufacturing of cement and
concrete; sales, marketing or
distribution; administration,
management or support services;
Holding of shares or other capital
instruments.
805
376909976
14263000
63926000
258180414
-6564227
-7.481.000
UK
Waste management and
recycling. Holding of shares or
other capital instruments.
0
0
0
0
0
0
-
USA
Manufacturing of cement; sales,
marketing or distribution; Holding
of shares or other capital
instruments.
198
181450046
1253000
5753000
84273822
-1155158
-935.000
Total
3004
1653421914
175016000
301789000
1086756136
-64056557
61.819.000
Directors’ Report 2024 Cementir Holding NV | 190
APPENDIX
Overview of all reported disclosure requirements identified as material
ESRS reference table
In our sustainability report, we have adhered to the Disclosure Requirements stipulated by ESRS as
displayed below. The following content index illustrates the locations where the lists of Disclosure
Requirements can be found. Some of these have been incorporated by reference.
ESRS Code
ESRS Description
Reference(s)
- page
Notes, if any
Derived from
other EU
legislation
2 BP-1
General basis for preparation of the
sustainability statement
127-128
2 BP-2
Datapoints that derive from other EU
legislation
190-196
2 GOV-1
The role of the administrative, management
and supervisory bodies
151-152
2 GOV-1
Board's gender diversity paragraph 21 (d)
152-154
X
2 GOV-1
Percentage of board members who are
independent paragraph 21 (e)
151-152
X
2 GOV-4
Statement on due diligence paragraph 30
158
X
2GOV-2
Information provided to and sustainability
matters addressed by the undertaking’s
administrative, management and supervisory
bodies
156-157
2 GOV-3
Integration of sustainability-related
performance in incentive schemes
157-158
2 GOV-4
Statement on sustainability due diligence
157-158
X
2 GOV-5
Risk management and internal controls over
sustainability reporting
158-160
2 SBM-1
Strategy, business model and value chain
(products, markets, customers)
143-146
2 SBM-1
Strategy, business model and value chain
(headcount by country)
143-146
2 SBM-1
Strategy, business model and value chain
(breakdown of revenue)
145
2 SBM-2
Interests and views of stakeholders
146-149
2SBM-3
Material impacts, risks and opportunities and
their interaction with strategy and business
model
164-172
2 IRO-1
Description of the process to identify and
assess material impacts, risks and
opportunities
161-163
2 IRO-2
Disclosure requirements in ESRS covered by
the undertaking’s sustainability statement
190-196
2 GOV-3
Integration of sustainability-related
performance in incentive schemes
197
E1-1
Transition plan for climate change mitigation
198-201
E1-1
Undertakings excluded from Paris-aligned
Benchmarks paragraph 16 (g)
201
X
Directors’ Report 2024 Cementir Holding NV | 191
E1-2
Policies related to climate change mitigation
and adaptation
216-217
E1-3
Actions and resources in relation to climate
change policies
217-219
E1-4
Targets related to climate change mitigation
and adaptation
217
E1-4
GHG emission reduction targets paragraph 34
219-223
X
E1-5
Energy consumption and mix
217-219
E1-5
Energy consumption from fossil sources
disaggregated by sources (only high climate
impact sectors) paragraph 38
217-219
X
E1-5
Energy consumption and mix paragraph 37
217-219
X
E1-5
Energy intensity associated with activities in
high climate impact sectors paragraphs 40 to
43
219
X
E1-6
Gross Scopes 1, 2, 3 and total GHG
emissions
219-223
E1-6
Gross Scope 1, 2, 3 and Total GHG
emissions paragraph 44
219-223
X
E1-6
Gross GHG emissions intensity paragraphs
53 to 55
223
X
E1-8
Internal carbon pricing
223-225
E2-1
Policies related to pollution
224-225
E2-2
Actions and resources related to pollution
225-226
E2-3
Targets related to pollution
226-227
E2-4
Pollution of air, water and soil
227-229
E2-4
Amount of each pollutant listed in Annex II of
the E-PRTR Regulation (European Pollutant
Release and Transfer Register) emitted to air,
water and soil, paragraph 28
227-229
X
E3-1
Policies related to water and marine
resources
229-230
E3-1
Water and marine resources paragraph 9
229
X
E3-1
Dedicated policy paragraph 13
229-230
X
E3-2
Actions and resources related to water and
marine resources
230-232
E3-3
Targets related to water and marine
resources
232-233
E3-4
Water consumption
233-236
E3-4
Total water recycled and reused paragraph 28
(c)
236
X
E3-4
Total water consumption in m
3
per net
revenue on own operations paragraph 29
235
X
E4-1
Transition plan and consideration of
biodiversity and ecosystems in strategy and
business model
237-238
2- SBM 3
E4 paragraph 16 (a) i
239
X
2- SBM 3
E4 paragraph 16 (b)
239
X
2- SBM 3
E4 paragraph 16 (c )
239
X
E4-2
Policies related to biodiversity and
ecosystems
247-249
Directors’ Report 2024 Cementir Holding NV | 192
E4-2
Sustainable land / agriculture practices or
policies paragraph 24 (b)
239
X
E4-2
Sustainable oceans / seas practices or
policies paragraph 24 (c)
239
X
E4-3
Actions and resources related to biodiversity
and ecosystems
249-253
E4-4
Targets related to biodiversity and
ecosystems
253-254
E4-5
Impact metrics related to biodiversity and
ecosystems change
253-254
E5-1
Policies related to resource use and circular
economy
257
E5-2
Actions and resources related to resource use
and circular economy
257-258
E5-3
Targets related to resource use and circular
economy
258-259
E5-4
Resource inflows
259-261
E5-5
Resource outflows
261-262
E5-5
Non-recycled waste paragraph 37 (d)
262
X
E5-5
Hazardous waste and radioactive waste
paragraph 39
262
X
2- SBM3
Risk of incidents of forced labour paragraph
14 (f)
277-280
X
2- SBM3
Risk of incidents of child labour paragraph 14
(g)
277-280
X
S1-1
S1-1 – Policies related to own workforce
281-285
S1-1
Human rights policy commitments paragraph
20
286
X
S1-1
Due diligence policies on issues addressed by
the fundamental International Labor
Organisation Conventions 1 to 8, paragraph
21
286
X
S1-1
processes and measures for preventing
trafficking in human beings’ paragraph 22
286-287
X
S1-1
workplace accident prevention policy or
management system paragraph 23
286-288
X
S1-2
Processes for engaging with own workforce
and workers’ representatives about impacts
290
S1-3
Processes to remediate negative impacts and
channels for own workforce to raise concerns
294-295
S1-3
Grievance/complaints handling mechanisms
paragraph 32 (c)
294-295
X
S1-4
Taking action on material impacts on own
workforce, and approaches to managing
material risks and pursuing material
opportunities related to own workforce, and
effectiveness of those actions
295-296
S1-5
Targets related to managing material negative
impacts, advancing positive impacts, and
managing material risks and opportunities
296-297
S1-6
Characteristics of the undertaking’s
employees
297-300
S1-7
Characteristics of non-employees in the
undertaking’s own workforce
300
Directors’ Report 2024 Cementir Holding NV | 193
S1-8
Collective bargaining coverage and social
dialogue
300-301
S1-9
Diversity metrics
301-303
S1-10
Adequate wages
303
S1-11
Social protection
303-304
S1-12
Persons with disabilities
304
S1-13
Training and skills development metrics
304-307
S1-14
Health and safety metrics
307-311
S1-14
Number of fatalities and number and rate of
work-related accidents paragraph 88 (b) and
(c)
310
X
S1-14
Number of days lost to injuries, accidents,
fatalities or illness paragraph 88 (e)
310
X
S1-15
Work-life balance metrics
312-314
S1-16
Remuneration metrics (pay gap and total
remuneration)
313-314
S1-16
Unadjusted gender pay gap paragraph 97 (a)
313-314
X
S1-16
Excessive CEO pay ratio paragraph 97 (b)
102
X
S1-17
Incidents, complaints and severe human
rights impacts
315
S1-17
Incidents of discrimination paragraph 103 (a)
315
X
S1-17
Non-respect of UNGPs on Business and
Human Rights and OECD Guidelines
paragraph 104 (a)
315
X
2 SBM-2
Interests and views of stakeholders
278
2 SBM3
Significant risk of child labour or forced labour
in the value chain paragraph 11 (b)
278
X
2 SBM-3
Material impacts, risks and opportunities and
their interaction with strategy and business
model
278
S2-1
Policies related to value chain workers
317-318
S2-1
Human rights policy commitments paragraph
17
317-318
X
S2-1
Policies related to value chain workers
paragraph 18
317-318
X
S2-1
Non-respect of UNGPs on Business and
Human Rights principles and OECD
guidelines paragraph 19
317-318
X
S2-1
Due diligence policies on issues addressed by
the fundamental International Labor
Organisation Conventions 1 to 8, paragraph
19
317-318
X
S2-2
Processes for engaging with value chain
workers about impacts
318
S2-3
Processes to remediate negative impacts and
channels for value chain workers to raise
concerns
319-320
S2-4
Taking action on material impacts on value
chain workers, and approaches to managing
material risks and pursuing material
opportunities related to value chain workers,
and effectiveness of those action
321
Directors’ Report 2024 Cementir Holding NV | 194
S2-4
Human rights issues and incidents connected
to its upstream and downstream value chain
paragraph 36
321
X
S2-5
Targets related to managing material negative
impacts, advancing positive impacts, and
managing material risks and opportunities
321
2 SBM-2
Interests and views of stakeholders
278
2 SBM-3
Material impacts, risks and opportunities and
their interaction with strategy and business
model
278
S3-1
Policies related to
323
affected communities
S3-1
Human rights policy commitments paragraph
16
323
X
S3-1
non-respect of UNGPs on Business and
Human Rights, ILO principles or OECD
guidelines paragraph 17
323
X
S3-2
Processes for engaging with affected
communities about impacts
324
S3-3
Processes to remediate negative impacts and
channels for affected communities to raise
concerns
324
S3-4
Taking action on material impacts on affected
communities, and approaches to managing
material risks and pursuing material
opportunities related to affected communities,
and effectiveness of those actions
324-325
S3-4
Human rights issues and incidents paragraph
36
324-325
X
S3-5
Targets related to managing material negative
impacts, advancing positive impacts, and
managing material risks and opportunities
325
2 SBM-2
Interests and views of stakeholders
278
2 SBM-3
Material impacts, risks and opportunities and
their interaction with strategy and business
model
278
S4-1
Policies related to consumers and end-users
326-327
S4-1
Policies related to consumers and end-users
paragraph 16
326-327
X
S4-1
Non-respect of UNGPs on Business and
Human Rights and OECD guidelines
paragraph 17
326-327
X
S4-2
Processes for engaging with consumers and
end-users about impacts
327-329
S4-3
Processes to remediate negative impacts
and channels for consumers and end-users to
raise concerns
329-330
S4-4
Taking action on material impacts on
consumers and end-users, and approaches to
managing material risks and pursuing material
opportunities related to consumers and end-
users, and effectiveness of those actions
330
S4-4
Human rights issues and incidents paragraph
35
330
X
Directors’ Report 2024 Cementir Holding NV | 195
S4-5
Targets related to managing material negative
impacts, advancing positive impacts, and
managing material risks and opportunities
330
2 GOV-1
The role of the administrative, supervisory
and management bodies
331
2 IRO-1
Description of the processes to identify and
assess material impacts, risks and
opportunities
331
G1-1
Business conduct policies and corporate
culture
331-333
G1-1
United Nations Convention against Corruption
paragraph 10 (b)
331-333
X
G1-1
Protection of whistle- blowers paragraph 10
(d)
331-333
X
G1-3
Prevention and detection of corruption and
bribery
333-335
G1-4
Incidents of corruption or bribery
335-336
G1-4
Fines for violation of anti-corruption and anti-
bribery laws paragraph 24 (a)
335-336
X
G1-4
Standards of anti- corruption and anti- bribery
paragraph 24 (b)
335-336
X
The following DRs have not been included because the Group has decided to omit the information for this
year, as defined in Appendix C ESRS 1, or because they resulted as not material for Cementir.
ESRS
Code
ESRS Description
Reason for exclusion
E1-7
GHG removals and GHG mitigation projects financed through carbon
credits
Not applicable, because the Group
is not working with carbon credits
E1-9
Anticipated financial effects from material physical and transition risks
and potential climate-related opportunities
Phase-in option
E2-6
Anticipated financial effects from pollution-related impacts, risks
Phase-in option
E2-5
Substances of concern and substances of very high concern
Not material
E3-5
Anticipated financial effects from water and marine resources-related
impacts, risks and opportunities
Phase-in option
E4-6
Anticipated financial effects from biodiversity and ecosystem-related
impacts, risks and opportunities
Phase-in option
E5-6
Anticipated financial effects from resource use and circular economy-
related impacts, risks and opportunities
Phase-in option
G1-2
Management of relationships with suppliers
Not material
G1-5
Political influence and lobbying activities
Not material
G1-6
Payment practices
Not material
Directors’ Report 2024 Cementir Holding NV | 196
ENVIRONMENTAL INFORMATION
E1 CLIMATE CHANGE
Governance
ESRS 2 GOV-3 Integration of sustainability-related performance in incentive schemes
Cementir adopts a competitive remuneration system which guarantees a balance between corporate
strategic objectives and recognition of the merits of Group employees. By using variable short and
medium/long term remuneration components, the Policy is designed to align staff interests with the pursuit
of the priority objective – value creation – and the achievement of financial and sustainability objectives.
This objective is also pursued by linking a significant portion of remuneration to the achievement of defined
performance targets, by means of both the short-term incentive scheme (STI) and the long-term incentive
scheme (LTI).
In 2024, within the STI Program, which is fully integrated in the Performance management process, the
Group continued to enhance the ESG objectives at all levels of the organization. The ESG objectives are
included in the STI Program of all executives and middle management of the Group.
Particular attention was directed to the issues of CO
2
emissions reduction, sustainability Capex directly
related to the Taxonomy (please refer to the section Taxonomy) and Occupational H&S. Nevertheless, there
are also objectives related to biodiversity, ISO certification, circularity, clinker factor reduction, human capital
and development and water consumption as represented in the following table.
The remuneration of the whole C-level is strictly linked to ESG topics. Occupational Health & Safety target
and CO
2
emissions reduction target are included in the STI program of all C-level employees. Specifically,
these KPIs account for 15% - 20% of their remuneration. With specific reference to KPI connected to the
Climate Change and its CO2 emission, KPIs are set and connected to the same metrics used in the CSRD
for the CO2 equivalent emissions. Therefore, ESG related issues have a consistent and specific weight in
determining the variable remuneration of senior executives.
The LTI Plan consists of three three-year cycles, each providing for the payment of an incentive subject to
the achievement of performance targets at the end of the performance period. This plan ensures the long-
term retention of a selected group of Group managers in strategic positions.
The Plan proposed the following objectives:
• allow beneficiaries to focus on medium/long-term objectives to create sustainable value over time in
line with the Company's strategic objectives;
• act as a tool for retaining beneficiaries;
• align compensation packages with market practices.
With reference to the incentive systems, currently there are none for the members of the Board. The only
recipient of an STI plan is the President and CEO, but at present, no ESG objectives are foreseen.
The Group will evaluate in the coming years the possibility of extending this incentive system to the Board
as well.
Directors’ Report 2024 Cementir Holding NV | 197
Strategy
E1-1 Transition plan for climate change mitigation
Task Force on Climate-related Financial Disclosures – TCFD
Overview
The Task Force’s report establishes recommendations for disclosing clear, comparable and consistent
information about the risks and opportunities presented by climate change. Their widespread adoption will
ensure that the effects of climate change become routinely considered in business and investment decisions.
Adoption of these recommendations will also help companies better demonstrate responsibility and foresight
in their consideration of climate issues. That will lead to smarter, more efficient allocation of capital, and help
smooth the transition to a more sustainable, low-carbon economy’ (Michael R. Bloomberg, Chairman, TCFD).
Cementir is publicly committed to adopting the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD) of the Financial Stability Board, which in June 2017 published specific
recommendations for the voluntary reporting of the financial impact of climate risks. The TCFD aims to offer
consistent and effective financial disclosures that allow investors and other stakeholders to assess the
climate risks faced by companies and to take appropriate actions.
Cementir identifies, assesses and manages climate change risks alongside all other types of risk as an
integral part of its Risk Management Framework. Climate risks and opportunities are monitored in a
structured manner consistent with the TCFD.
In 2022, as part of TCFD assessment, Cementir commissioned Standard & Poor’s (S&P) to conduct a gap
assessment of its existing climate-related disclosures. According to the analysis performed by S&P, Cementir
achieved a total score of 100% on the overall assessment, which represent a complete level of disclosure
and transparency on TCFD metrics.
This chapter follows the structure of the TCFD recommendations around four thematic areas that represent
core elements of how organization operate: governance, strategy, risk management and metrics and targets.
Governance
In the Cementir Group, the Sustainability strategy receives appropriate board and management attention.
Governance – The organisation’s governance around climate-related risks and opportunities
RECOMMENDATIONS OF THE TCFD
DISCLOSURE
a) Describe the Board’s oversight of climate-
related risks and opportunities
Chapter: ESRS 2 "General Information"
b) Describe management’s role in assessing
and managing climate-related risks and
opportunities
Chapter: ESRS 2 "General Information"
In the chapter ESRS 2 General Information, the description of the different governing bodies includes
useful clarifications of the specific nature of their climate-related accountabilities.
Strategy
Directors’ Report 2024 Cementir Holding NV | 198
In view of the significance of climate change for our business, Cementir has developed the Sustainability
Strategy.
Cementir described how climate-related issues may affect the organisation’s business, strategy and financial
planning over the short, medium, and long term. The three-time horizons can be summarised as follow:
• The short term (1-3 years), in which sensitivity analyses based on the Industrial Plan presented to
investors can be performed.
• The medium term (until 2030) is a time horizon beyond the Industrial Plan but addressed by the
Cementir Climate Change Strategy and its 10-year roadmap.
• The long term (2030-2050), in which chronic structural changes in the climate should begin to
emerge.
Cementir’s long-term sustainability strategy has been developed using a bottom-up approach in recent years.
The concerned departments within the local operations, under the coordination of the Group Top
Management, have translated individual concepts and notions into a unique and consistent way of thinking,
defining our internal Group culture and identity, setting expectations, targets and precise commitments, along
the lines mandated by the regulatory framework. Once consolidated, this basic core was then formally
reviewed, signed off and validated by the Sustainability Committee and finally rolled over the concerned
entities for implementation through articulated programs and specific actions due by set deadlines. Its
assumptions and implications, from the basic ones to the most far-fetched ones, have been encapsulated for
the first time in the Group Industrial Plan 2021-23, approved by Cementir Board of Directors in February
2021, in the Group Consolidated Financial Statements and Sustainability Report for year 2020, approved by
the Shareholder Meeting in April 2021.
In addition, the Group regularly assesses current and potential impacts of climate-related risks and
opportunities on the business and consequently updates its strategy and its financial planning.
Strategy – Current and potential impacts of climate-related risks and opportunities on the
organisation’s business, strategy and financial planning
RECOMMENDATIONS OF THE TCFD
DISCLOSURE
a) Describe the climate-related risks and
opportunities the organization has identified over the
short, medium and long term
Chapter: E1 Climate Change
b) Describe the impact of climate-related risks
and opportunities on the organization’s businesses,
strategy, and financial planning
Chapter: E1 Climate Change
c) Describe the resilience of the organization’s
strategy, taking into consideration different climate-
related scenarios, including a 2° or lower scenario
Chapter: E1 Climate Change
Directors’ Report 2024 Cementir Holding NV | 199
Risk management
Cementir identifies, assesses and manages climate change risks and opportunities alongside all other types
of risk as an integral part of its Risk Management Framework, which is subject to continuous improvements.
Risk management – Identification, assessment and management of climate related risks
RECOMMENDATIONS OF THE TCFD
DISCLOSURE
a) Describe the organization’s processes for identifying
and assessing climate-related risks
Chapter: E1 Climate Change
b) Describe the organization’s processes for managing
climate-related risks
Chapter: E1 Climate Change
c) Describe how processes for identifying, assessing, and
managing climate-related risks are integrated into the
organization’s overall risk management
Chapter: E1 Climate Change
Metrics and targets
The Group has identified four pillars that represent the core principles that have inspired the company’s
sustainability strategy. The targets are related to the efforts by Cementir to adopt all necessary measures
and the most innovative technological solutions to minimise the impact of our business on the environment;
create a healthy, safe and inclusive work environment; respect human rights and create a constructive and
transparent relationship with local communities and business partners.
Metrics and targets – used to assess and manage relevant climate-related risks and opportunities
RECOMMENDATIONS OF THE TCFD
DISCLOSURE
a) Disclose the metrics used by the organization to assess
climate-related risks and opportunities in line with its strategy
and risk management process
Chapter: E1 Climate Change
b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3
greenhouse gas (GHG) emissions, and the related risks
Chapter: E1 Climate Change
c) Describe the targets used by the organization to manage
climate-related risks and opportunities and performance
against targets
Chapter: E1 Climate Change
Directors’ Report 2024 Cementir Holding NV | 200
Our sustainability commitment timeline since 2019
Directors’ Report 2024 Cementir Holding NV | 201
Cementir Roadmap 2030
Our 2030 commitment in numbers
Over the last few years, Cementir has been actively committed to pursuing a programme inspired by the
principles of the circular economy, which envisages a series of initiatives focused on reducing the
environmental impact of its operations and on developing less CO₂-intensive products.
Cementir identifies, assesses and manages climate change risks alongside all other types of risk as an
integral part of its Risk Management Framework. Climate risks and opportunities are monitored in a
structured manner consistent with the TCFD.
The Group has defined a Roadmap to 2030 that will allow for the constant reduction of CO₂ emissions per
ton of cement.
The implementation of the Roadmap is proceeding as planned. In 2024, emissions per ton of grey cement
were 632 kg, down 12% compared to 2020, while emissions per ton of white cement were 860 kg, down 6%
compared to 2020.
The Group has focused its research activity on the testing, through pilot projects, of new technologies for
carbon capture and storage (CCS).
The Plan envisages the implementation of a CCS system in Aalborg with a capacity to capture 1.4 million
tons of CO2 annually, in 2030, with which the Group will reduce Scope 1 emissions per tonne of grey cement
to 404 kg, with an emission level below the limits required by the European Taxonomy and equal to a
reduction of 44% compared to 2020 levels.
For white cement, which is a niche product for specific applications, with a market equal to 0.5% of world
production, Scope 1 emissions will be reduced to 716 kg per tonne of product. The reduction will also be
achieved by replacing traditional fuels with ones with lower emissions, in particular natural gas and alternative
fuels such as biomass, and by replacing clinker with mineral additives, such as limestone and calcined clay.
For the sake of completeness of the information provided, please note that Cementir is excluded from the
EU Paris-aligned Benchmarks.
With reference to potential ‘locked-in’ GHG emissions, it is specified that finished products do not have
blocked emissions. In fact, when products are used by end users to produce concrete, no further GHG
emissions occur. Emissions only occur during the production phase. Therefore, there are no potential
impediments to Cementir achieving its emission reduction targets.
The climate change targets established by the Group have been deployed per single plant and year and
were included in the 2025-2027 Industrial Plan approved by the Board of Directors of Cementir Holding on
11 February 2025.
See the table in the next page for details.
Directors’ Report 2024 Cementir Holding NV | 202
Grey Cement
Years
2020
2021
2022
2023
2024
2025
2030
Use of traditional fuel in %
72%
70%
68%
67%
66%
54%
52%
Use of alternative fuel in %
28%
30%
32%
33%
34%
46%
48%
Clinker ratio
82%
81%
80%
79%
77%
76%
64%
CO
2
emissions (kg CO
2
/ton
cement) Scope 1
718
684
672
655
634
607
417
Reduction versus 2020
0%
-5%
-6%
-9%
-12%
-15%
-36%
White Cement
Years
2020
2021
2022
2023
2024
2025
2030
Use of traditional fuel in %
85%
85%
85%
82%
80%
81%
58%
Use of natural gas%
12%
12%
13%
16%
18%
17%
36%
Use of alternative fuel in %
3%
3%
2%
2%
2%
2%
6%
Clinker ratio
82%
83%
81%
79%
80%
80%
79%
CO
2
emissions (kg CO2/ton
cement) Scope 1
915
919
886
846
860
848
653
Reduction versus 2020
0%
0%
-3%
-7%
-6%
-7%
-19%
Specific targets for alternative fuels, clinker ratio and CO₂ emissions have been established to accomplish
the 2030 goals.
Such targets have been deployed in every single plant and were included in the 2025-2027 Industrial Plan
and in our employee short-term incentive system.
Our key actions for the 2024-2030 period
Cementir is dedicated to creating a business model that supports its sustainability goals and CO2 emission
reduction targets, which have been validated by the Science Based Targets initiative (SBTi) as aligned with
the goal of limiting global warming to under 1.5°C.
The 2030 Roadmap details the essential investments and initiatives needed to meet the Group’s carbon
reduction goals by 2030. This roadmap is a crucial element of Cementir’s wider strategic objective to reach
net-zero emissions by 2050.
The Roadmap 2030 is focused on the following main actions to reduce CO
2
emissions:
Reducing direct emissions Scope 1
● The Roadmap includes Scope 1 emissions reduction targets
4
of 44% to 404 kg of CO
2
per ton of
grey cement, a level lower than the limits required by the European Taxonomy. For white cement, a niche
product for specific applications, the plan is to reduce emissions by 22% to 716 kg per ton by 2030.
4
The reduction targets are set with respect to 2020
Directors’ Report 2024 Cementir Holding NV | 203
Reduction of clinker content to 64% for grey cement and 79% for white cement. In the production of cement,
the majority of CO₂ emissions occur when the raw materials (mainly limestone) calcinates into clinker in the
kiln. The CO₂ results from the chemical reaction that starts when limestone is heating up to 1450°C. This
process, called calcination, is responsible for about 70% of the total Scope 1 emissions generated by
Cementir.
The Group will reduce the clinker content through:
o The use of alternative decarbonised mineral additives such as fly ash and slag.
o The development of a new low-carbon cement, FUTURECEM®, which has carbon footprint
approximately 30% lower than regular Portland cement. The low-carbon benefits of FUTURECEM® have
been achieved without compromising the strength and quality of the cement.
Below is the average composition of an ordinary Portland cement and of FUTURECEM®.
o The development of D-Carb® which is a new umbrella brand for white low-carbon cements,
supporting our white cement decarbonization efforts.
D-Carb® first product, CEM II/A-LL 52.5R, matches a lower carbon footprint with 15% lower CO2 emissions
compared to Aalborg White® CEM I.
● Replacement of fossil fuels with alternative fuels. Cementir will replace fossil fuels with waste-
derived fuels and biomass fuels. For grey cement, by 2030, Cementir will use 48% alternative fuel, while for
white cement alternative fuels will amount to 6%. The demand for consistency in the colour of white cement
is much higher than for grey cement as a great deal of attention is paid to the purity of the colour. Alternative
fuels affect the colour and for this reason their use is drastically limited in the production of white cement.
● The establishment of a natural gas line to the plant located in Denmark and Belgium and the
installation of multi-fuel main burners for the kilns. For the Danish and Belgium plants, we plan a partial
transition in fuel consumption from pet coke to natural gas. The switching to natural gas, a fossil fuel with
emissions much lower than petcock, is a transitional solution and essential for Cementir’s transition to net-
zero emissions. As part of this strategy, Aalborg Portland (the Danish legal entity of Cementir) has already
entered into an agreement with the Danish gas distribution company, Evida, to connect the Aalborg plant to
the gas distribution network, and CCB (the Belgium legal entity of Cementir) has signed a gas transportation
contract with Fluxy, which is the company that owns and operates the gas transportation network in Belgium.
● Energy recovery. The Aalborg plant recovers excess heat from cement production to provide district
heating to the local community. The recovered thermal energy is used to provide heating to around 20,000
families in the city of Aalborg, Denmark with the aim of increasing this figure to over 30,000. The potential
Directors’ Report 2024 Cementir Holding NV | 204
annual energy recovered is around 2 million GJ and with the carbon capture project it will be increased up to
3 million GJ allowing a CO2 savings related to this heat recovery system around 187,000 tons. This
calculation is based on the amount of CO2 Emissions assessed (62.40 gCO2e/MJ, 2006 IPCC Guidelines
for National Greenhouse Gas Inventories) based on a natural gas boiler with 90% LHV efficiency, that is not
emitted, because the needs are covered by the heat coming from the Aalborg plant.
● Implementation of Carbon Capture and Storage technology in Aalborg. Cementir through its
fully owned subsidiary Aalborg Portland and Air liquid have launched a joint decarbonization project named
ACCSION. This ambitious initiative aims to significantly reduce CO2 emissions at the Aalborg Portland
cement plant, with the expectation of avoiding over 1.4 million tons of CO2 emissions per year. The project
has garnered substantial support, being selected by the European Commission to receive 220 million euros
under the EU Innovation Fund.
Reducing indirect emissions Scope 2
● Use of electricity from renewable sources: through installation of photovoltaic panels and windmill
or by increasing the purchase of electricity from renewable sources from third parties through PPA.
Reducing indirect emissions Scope 3
Scope 3 emissions include all indirect emissions not covered under Scope 1 (direct emissions from owned
or controlled sources) and Scope 2 (indirect emissions from purchased electricity, steam, heating, and
cooling). These emissions span the entire value chain, encompassing both upstream and downstream
activities. Examples include emissions from the supply chain, extraction and production of purchased
materials and fuels, and transportation. For Cementir, Scope 3 emissions represent approximately 25% of
its total carbon footprint.
Cementir has set an ambitious target to reduce Scope 3 emissions by 23% compared to 2021 levels.
Significant progress has already been achieved: by 2024, CO2 emissions per ton of purchased clinker and
cement were reduced to 830 kg, down from 873 kg in 2021.
Unit
2024
2023
2022
Physical intensity
Scope 3
Kg Co2/ton Kg of purchased clinker
and cement
830
836
876
Scope 3 emissions are a cornerstone of Cementir’s Climate Transition Plan, which aims to achieve net-zero
greenhouse gas (GHG) emissions across its entire value chain by 2050. To support this goal, Cementir has
intensified collaboration with its suppliers through initiatives like the CDP Supply Chain program. These
efforts enhance transparency regarding suppliers’ emission reduction measures and encourage active steps
to lower their carbon footprints.
In alignment with the European Carbon Border Adjustment Mechanism (CBAM), Cementir introduced new
requirements in late 2023. Non-European suppliers of clinker and cement are now obligated to disclose their
Scope 1 and Scope 2 emissions directly to Cementir. In cases of non-compliance, Cementir’s Supply Chain
team works closely with suppliers to ensure the necessary data is provided.
Currently, suppliers report this information through self-assessments. However, Cementir plans to implement
third-party verification of these disclosures in the near future, in accordance with EU guidelines. This step
will ensure greater accuracy, reliability, and compliance with regulatory standards.
Starting from 2021, the CO
2
emissions reduction targets have been validated by the Science Based Targets
Initiative (SBTi) and, as of February 2024, they have been deemed consistent with the 1.5°C scenario. To
ensure targets remain aligned with the most recent climate science, Cementir will be required to review if
Directors’ Report 2024 Cementir Holding NV | 205
targets meet SBTi criteria and, if necessary, update and revalidate its targets every five years from the date
of the original target approval.
For further information on the progresses achieved by the Group in relation to environmental targets and
actions previously discussed, please refer to the section “Sustainability Targets”.
Details of the main projects participated by Cementir are provided in the following paragraphs.
Carbon Capture Technologies currently investigated by Cementir
Cementir Group has assembled a dedicated team focused on advancing the implementation for carbon
capture at its facility in Aalborg, Denmark and in CCB Belgium.
Indeed, the Group is actively involved in several research projects focused on advancing the implementation
of Carbon Capture, Utilisation, and Storage (CCUS) within its operations.
These projects can be categorised into three types.
Firstly, techno-economic assessments explore different technologies suitable for CO2 capture, offering
preliminary insights into the potential configurations of carbon capture plants at various capacities in select
facilities.
Secondly, pilot projects are under way to capture CO2 at a small scale, facilitating the testing of diverse
technologies and enhancing our understanding of flue gas behaviour under different methods.
Lastly, the company is actively involved in projects dedicated to developing value chains, fostering research
and development efforts in transport and permanent storage activities in North Jutland.
This multifaceted approach demonstrates Cementir Group's comprehensive commitment to making progress
in reducing its CO
2
emissions.
The next section will examine the specifics of each project.
ACCSION
Purpose
The project aims to establish one of Europe’s first full onshore carbon capture, transport, and storage value
chain using innovative, reliable, and efficient technologies. This project seeks to capture 1.4 million tons of
CO
2
annually from the Aalborg Portland cement plant and supplying recovered heat from the capture
process. Planned to be operational by the end of 2030, ACCSION aims to deliver 113% of GHG emissions
avoidance over its first ten years of operations, playing a critical role in Denmark’s GHG emissions reduction
goals. By 2030, Aalborg Portland aims to become Europe’s first net-zero cement plant producing grey and
white cement, leveraging on capturing and storing the biogenic CO₂ fraction, which offsets any remaining
fossil emissions. The project has been awarded funding from the European Union's Innovation Fund.
Grant Amount
€ 220 million from the EU Innovation fund
Start and end date
2025 to 2030
Partners
Cementir Holding-Aalborg Portland, Air Liquide
Directors’ Report 2024 Cementir Holding NV | 206
CASPER
Purpose
The project aims to demonstrate the full CCS value chain from a cement plant. This will be done by capturing
and processing at least 20 tons of CO2 from the flue gas during a campaign in 2024. Measuring the quality
of the CO2 and compare with existing standards relevant in 2024. In addition, evaluating the effect of
impurities on CO2 transportation in a new 50 m long CO2 pipe test facility to prepare for CO2 infrastructure
that can be implemented in 2025.
Total budget of the project
The total budget is approximately € 2 million of which € 600,000 is funded by the project partners, including
Cementir with the rest funded by the INNO-CCUS partnership funded by the Danish Innovation Fund.
Start and end date
2024 to 2026
Partners
Cementir Holding-Aalborg Portland, Technical University of Denmark-DTU, Pentair, Teknologisk Institut,
Dansk Gasteknisk Center, EVIDA, Gas Storage Denmark
CORT
Purpose
The aim of the project is investigating various advanced amine solvents for carbon capture and new heat
integration methods (heat pumps). Specifically, the aim is to find the best suited solvents for different carbon
capture cases.
For additional information, please see Carbon capture Open tests and Review of Technologies (CORT) -
Center for Energy Resources Engineering (dtu.dk).
Total budget of the project
The total funds for the project are € 2.6 million of which € 150,000 is funded by Cementir with co-funding
from the INNO-CCUS partnership funded by the Danish Innovation Fund.
Start and end date
01-08-2022 - 31-07-2025
Partners
Aalborg Portland, Pentair, Danish Technical University, Chemistry, Ørsted, Aalborg University, FORCE.
Description of scope, content and results
A test unit from the Danish Technical University (DTU) was established at the Aalborg Portland plant in
October 2022 and it was removed in October 2023. Conclusions from gas analysis and gas purity
measurements obtained and tests completed. Results for a broader audience have been shared in April 2024
confirming the expectation of the Program.
Directors’ Report 2024 Cementir Holding NV | 207
ConsenCUS
Purpose
Show how a net-zero-carbon industry can be achieved by:
• Demonstrating the technical and economic viability of green electricity-based, energy-efficient CCU
innovations in an industrially relevant environment
• Investigating how CO2 networks in Northern Europe can cost-efficiently take the captured CO2 to
end users, or permanent and/or intermediate storage.
For additional information, please see https://consencus.eu/
Total budget of the project
The total funds for the project are € 13 million of which € 240,000 is funded by Cementir and co-funded by
the EU-Horizon 2020 programme.
Start and end date
01-04-2020 - 31-05-2025
Partners
19 partners from 7 countries. From Denmark: Aalborg Portland, DTU, GEUS and Dansk Gasteknisk Center
Results
On November 27th 2023, the demonstration plant was inaugurated during a short ceremony headed by the
H.K.H. Kronprins and now HM King Frederik X, Ms. Simson, EU-commissioner for Energy and Mr. Aagaard,
Danish Minister for Energy, Climate and Utilities. The opening event was part of the 3rd international CCUS
FORUM. The CCUS FORUM is a robust stakeholder consultation platform established by the European
Commission in 2021.
The test unit operated at Aalborg Portland from November 2023 to February 2024.
Public deliverables of the ConsenCUS project area available at the link https://consencus.eu/results/
Portland CC
Purpose
This project is part of the CO2 Vision partnership. The aim was to provide an initial techno-economic
assessment of two carbon capture technologies: the amine scrubber technology (reactive absorption-
stripping) and the Chart/Sustainable Energy Solutions Cryogenic Carbon Capture™ (CCC) technology
applied to one kiln in the Aalborg Portland A/S cement plant. The analysis provides an estimation of
component costs for the configurations under consideration using the features available in Aspen Plus®,
along with electricity cost estimations for 2021 and 2022. Moreover, a suitable formulation for estimation of
the cost of CO2 was presented.
Total budget of the project
The total funds for the project were € 503,000 of which € 131,000 was funded by Cementir. This project is
supported by the EU Regional Fund and the EU Social Fund, as well as the EU Just Transition Fund.
Start and end date
01/06/2022 to 31/08/2023
Directors’ Report 2024 Cementir Holding NV | 208
Partners
Aalborg Portland, Aalborg University, Aalborg CSP
Results
Both the amine scrubber technology and the Chart Cryogenic Carbon Capture™ shown to be highly effective
for capturing CO2 at high purity level and capture efficiency across gaseous and liquid states. The CCC
technology distinguished itself by offering a lower energy penalty, leading to reduced Opex, and presenting
lower initial Capex compared to the amine scrubber technology.
During the project work some future research and development activities related to capture technologies
were identified as including piping and networks between the capture process and transport and storage
infrastructure. It was also suggested to look at integration of capture process with other domains e.g. district
heating
For additional information see: https://www.co2vision.dk/english/
This project has been carried out as part of the activities of the public-private partnership CO2Vision. This
partnership brings together local industries, educational institutions, business organisations and local
government with the aim of investigating the establishment of infrastructure for CCUS in North Jutland-
Denmark, including the import of CO2 for onshore and offshore storage, as well as use for production of
methanol and sustainable aviation fuel.
CO2Vision partners was awarded € 12.4 million from the Danish Board of Business Development in 2022
and € 6.7 million from the EU Just Transition Fund in 2023.
The consortium partners include Aalborg University, Aalborg Portland, Labour Market Office Mid/North,
Business Region North Denmark, Business House North Jutland, Energy Cluster Denmark, Evida, Green
Hub Denmark, North Denmark EU Office and University College North Jutland.
GreenCem
Purpose
The core objective was to identify the most promising capture technology and make a concept study of an
integrated carbon capture facility at the Aalborg Portland cement plant in terms of available thermal energy,
flue gas composition and site logistics leading to the lowest possible carbon capture cost.
For additional information, please see https://greencem.dk/
Total budget of the project
The total funds for the project were € 1.5 million, out of which € 500,000 were funded by Cementir.
Start and end date
01-08-2020 - 31-07-2022
Partners
Aalborg Portland, Port of Aalborg, Aalborg Energi Holding, European Energy, Aalborg University, Cemtec
Fonden (Hydrogen Valley), DFDS, Reno-Nord. COWI contributed as sub-contractor to Aalborg Portland
Directors’ Report 2024 Cementir Holding NV | 209
Results
The result of the project was a concept study for carbon capture. Two scenarios were investigated: 200,000
tons per year and 1 million tons per year captured CO2.
For additional information please see https://greencem.dk/konference/
MADE FAST
Purpose
Prepare a technical and economic analysis to investigate the factors (environmental, social, economic,
regulatory) that could influence the carbon capture and value chains for utilisation and storage of CO2 from
Aalborg Portland’s cement
Total budget of the project
The total funds for the project were € 330.000 of which € 90,000 was funded by Cementir. This project was
funded by the Manufacturing Academy of Denmark-MADE.
Start and end date
01-08-2020 - 31-07-2023
Partners
Aalborg Portland, Aalborg University, Manufacturing Academy of Denmark (MADE).
Results
The environmental analysis shows that it is possible to reach carbon neutrality when implementing CCUS if
the cement facility operates with renewable energy and with a high share of alternative fuels. More details
are provided in the following academic publication:
Preconditions for achieving carbon neutrality in cement production through CCUS
SNAM-Polimi-CCB
Purpose
Evaluation of various capture technologies: partial Oxyfuel with Hydrogen, Partial Oxyfuel with chemical
absorption using amines and chilled ammonia.
Total budget of the project
N/A
Start and end date
March to December 2022
Partners
SNAM, Politecnico di Milano, CCB
Results
Advantages and disadvantages of each technology were identified taking into consideration the specific
conditions at the CCB cement plant. Relevant KPIs such as Capex, Opex and cost of CO2 avoidance were
obtained for each solution. Further research suggests studying and concept design of an integrated project
Directors’ Report 2024 Cementir Holding NV | 210
considering also CO2 transport and storage, leveraging on existing and announced projects (i.e. Fluxys) and
continue with a feasibility study on the final solution.
CO
2
infrastructure for Belgium
The Belgian energy infrastructure company Fluxys is designing a CO2 pipeline in Belgium, collecting the
needs of various emitters and routing such CO2 to different exit points. Cementir has clearly expressed its
interest in being included in such an important project, aiming at optimising the method and cost of CO2
transportation and centralising liquefaction and loading facilities.
In 2022, CCB, the Belgian subsidiary of Cementir, signed a LoI (Letter of Intent) with Fluxys. In 2023, CCB
and Fluxys further strengthened their partnership by signing an agreement to conduct a feasibility study. The
study, which has now been received, is aimed at better understanding the full backbone of the CO2 pipeline
network, including its technical, operational, and economic aspects.
For additional information about the CO
2
, infrastructure proposed by Fluxys, please see the following link:
https://www.fluxys.com/en/projects/carbon-preparing-to-build-the-network
Main investments needed to achieve CO
₂
reduction targets
The 2030 Roadmap describes the main investments and programmes needed to support the Group’s 2030
carbon reduction targets. To foster the transition of the Group to a low carbon economy, decisions on
reduction targets and investments are driven looking at a detailed scenario analysis to be aligned with cement
sector target.
Over the 2025-2027 period, the Group plans to invest approximately EUR 53 million in sustainability projects,
including: upgrading facilities for FUTURECEM® production, switch to natural gas in the Danish plant, carbon
capture and storage (CCS) projects in Denmark and Belgium, and other initiatives to reduce climate impact
in transportation, procurement, logistics and optimization of water resource usage in the production process.
The ACCSION project (CCS in Denmark) has not been included in the planned EUR 53 million; it is worth to
remind that the project has received a grant of EUR 220 million by the EU Innovation Fund, also not included
in the Plan.
Industrial Plan 2025 – 2027: Capex
Directors’ Report 2024 Cementir Holding NV | 211
Cementir Holding’s path to reach net zero emissions by 2050
Cementir Holding N.V. commits to achieving net-zero greenhouse gas (GHG) emissions across the value
chain by 2050.
2050 Targets: Scope 1 emissions
Cementir will maximise existing technology to reduce Scope 1 emissions according to a net-zero pathway
endorsed by the SBTi and the EU. This will require:
• Replacing fossil fuels with biomass, waste-derived fuels, CO
2
-free fuels and increasing the
efficiency of the kilns.
• Widespread development of FUTURECEM® to minimise clinker content in cement.
• Deployment of breakthrough carbon capture and storage/use technologies (CCUS).
• Carbon offset measures to compensate for unavoidable residual emissions.
2050 Targets: Scope 2 emissions
After 2030, Cementir will eliminate Scope 2 emissions by expanding renewable energy sources. The Group
will use off-site opportunities, by setting up power purchase agreements and on-site opportunities, and by
installing wind and solar solutions for electricity on land that it owns.
In this regard:
● in 2023 the Group signed agreements (PPA) for the subsidiary in Belgium, CCB, with Engie five-
year contract to supply energy from 15 Mw wind turbine, and with Ether Energy 15 years contract to supply
energy from 10 Mw solar;
● in 2023 the Group signed for the subsidiary in Belgium, CCB, a COOPERATION AGREEMENT
with IPALLE SCRL (the intermunicipal association responsible for environmental protection in Wallonia
Picardy) to develop a windfarm project in the Barry quarry owned by CCB. IPALLE has acquired experience
in the implementation of wind farm projects as well as in the submission of applications for unique permit
(environmental & urban planning/building). The project aims to install around 50 Mw wind turbine.
2050 Targets: Scope 3 emissions
Directors’ Report 2024 Cementir Holding NV | 212
Cementir will reduce Scope 3 emissions according to a net-zero pathway. This will require the embedding
of CO
2
emissions in sourcing decisions for all purchase categories and the promotion of zero-emissions
transportation solutions within our network.
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
Climate risks
The cement industry's ability to reduce its CO
2
emissions and respond to climate change has become a
focal point for investors.
The analysis presented in this section focuses on the Group's operations, with all physical and transition
risks being considered (no exclusions). These risks are assessed according to the TCFD framework.
In 2021, the Cementir Group launched a project to implement the recommendations of the TCFD (Task
Force on Climate-Related Financial Disclosure) committing to be transparent on risks and opportunities
related to climate change. Cementir is also committed to ensuring the transparency of its climate-related
risks and opportunities in line with the EU Taxonomy. The identification, assessment and effective
management of risks and opportunities related to climate change are fully integrated into the Group's risk
management process.
As suggested by the TCFD, the Group monitors the risks and opportunities arising from the evolution of
transition scenarios and the evolution of physical variables. For its assessment, the Group has used the
moderate scenario, and all results are described in the following pages.
Physical variables are divided into two categories of risk:
● Acute: related to the occurrence of extreme weather conditions such as cyclones, hurricanes or
floods. Acute physical phenomena, in the various cases, are characterised by considerable intensity and a
frequency of occurrence that is not high in the short term, but which, considering long-term scenarios, sees
a clear upward trend;
● Chronic: refers to gradual and long-term changes in climate patterns (e.g., sustained high
temperatures) that can cause sea-level rises or chronic heat waves.
Regarding the energy transition process, towards a progressive reduction of carbon emissions, there are
risks and opportunities linked to changes in the regulatory, technological, market and reputational context.
Cementir states that the transition process towards a more sustainable model, characterized by a
progressive reduction of CO2 emissions, presents risks and opportunities related to changes in the
regulatory and legal environment, as well as technological development trends, reputational damage and
consequent market developments.
The Group has decided to align itself with the TCFD framework to clearly represent the types of risks and
opportunities by indicating how each of them should be managed. The effects were assessed over three-
time horizons: the short term (1-3 years), linked to the implementation of the Business Plan; the medium
term until 2030 during which it will be possible to see the effects of the energy transition; the long term until
2050, during which the Group undertakes to achieve net-zero emissions throughout its value chain. As the
TCFD states, the process of disclosing risks and opportunities related to climate change will be gradual
and incremental from year to year.
Climate-related scenario analysis
Physical climate scenarios
As part of our TCFD assessment, we have evaluated the exposure of our plants to physical risks, including
acute physical risks, which refers to those that are event-driven, including increased severity of extreme
weather events, such as cyclones, hurricanes, or floods and chronic physical risks which refers to longer-
Directors’ Report 2024 Cementir Holding NV | 213
term shifts in climate patterns (e.g., sustained higher temperatures) that may cause sea level rise or chronic
heat waves.
The assessment was done for each of the Group’s plants.
For the physical risk, we have taken alternative scenarios developed by the Intergovernmental Panel on
Climate Change (hereinafter ‘IPCC’
[1]
) and we have explored three potential futures depending on what
policies governments will adopt to cut emissions:
RCP
[2]
RCP 8.5
RCP 4.5
RCP 2.6
SCENARIO
HIGH CLIMATE CHANGE
MEDIUM CLIMATE CHANGE
LOW CLIMATE CHANGE
SOURCE
IPCC
IPCC
IPCC
TEMPERATU
RE
As likely as not to exceed 4°C
More likely than not to exceed 2°C
Not likely to exceed 2°C
DESCRIPTIO
N
Continuation of business as
usual with emissions at
current rates. This scenario is
expected to result in warming
in excess of 4°C by 2100
Strong mitigation actions to reduce
emissions to half of the current
levels by 2080. This scenario is
more likely than not to result in
warming in excess of 2°C by 2100.
Aggressive mitigation actions
to halve emissions by 2050.
This scenario is likely to result
in warming of less than 2°C by
2100.
Transition scenarios
Cementir assesses the resilience of its climate strategy relating transition risks with different carbon price
scenario based on research by the Organisation for Economic Cooperation and Development (hereinafter
‘OECD’) and the International Energy Agency (hereinafter ‘IEA’):
Directors’ Report 2024 Cementir Holding NV | 214
SCENARIO
HIGH CARBON PRICE SCENARIO
MODERATE CARBON PRICE SCENARIO
LOW CARBON PRICE
SCENARIO
SOURCE
OECD/IEA
OECD/IEA
OECD/IEA
DESCRIPTION
This scenario represents the
implementation of policies that
are considered sufficient to
reduce greenhouse gas
emissions in line with the goal
of limiting climate change to
2°C by 2100.
This scenario assumes that policies
will be implemented to reduce
greenhouse gas emissions and limit
climate change to 2°C in the long
term, but with action delayed in the
short term. Countries with Nationally
Determined Contributions that are
not aligned to the 2° C goal in the
short term are assumed to increase
their climate mitigation efforts in the
medium and long term.
This scenario represents
the full implementation of
Country Nationally
Determined Contributions
under the Paris
Agreement. Prices in this
scenario are considered
likely to be insufficient to
achieve the goal of the
Paris Agreement.
CARBON PRICE
USED IN THE
SCENARIO
($/tonCO
2
)
EU - year 2030 - 131 $
EU - year 2050 - 207 $
US - year 2030 – 131$
US - year 2050 – 207$
Asia - year 2030 – 108$
Asia - year 2050 – 189$
China - year 2030 – 98$
China - year 2050 – 186$
Middle east - year 2030 – 131$
Middle east – year 2050 –
207$
Türkiye – year 2030 – 131$
Türkiye – year 2050 – 207$
EU - 2030: 98$ - 2050: 207$
US - 2030: 66$ - 2050: 207$
Asia - 2030: 57$ - 2050: 189$
China- 2030: 49$ - 2050: 186$
Middle east - 2030:58$ - 2050: 207$
Türkiye - 2030: 41$ - 2050: 207$
EU - 2030: 41$ - 2050:
66$
US - 2030: 41$ - 2050:
66$
Asia - 2030: 35$ - 2050:
62$
China - 2030: 33$ - 2050:
62$
Middle east - 2030:41$ -
2050: 66$
Türkiye: 2030: 41$ 2050:
66$
The scenario modelling approach has been adopted to test the sustainability strategy's resilience and for
the identification of appropriate mitigation actions. Cementir is committed to moving towards being carbon-
neutral by 2050.
The process of transition towards a more sustainable model characterized by a gradual reduction of CO
2
emissions has risks and opportunities connected both with changes in the regulatory and legal context,
trends in technology development, reputational damages and the resulting market developments.
The Group has adopted a framework that highlights physical and transition risks and opportunities and
indicates the management responses for each of them.
These effects can be assessed from the perspective of three-time horizons: the short term (1-3 years),
assessed using sensitivity analyses based on the Industrial Plan; the medium term (until 2030), in which it
is possible to assess the effects of the energy transition; and the long term (until 2050), in which the Group
is committed to achieving net-zero emissions across its entire value chain.
Directors’ Report 2024 Cementir Holding NV | 215
Moreover, the Group, through research and development, is committed to producing solutions with a
significantly reduced climate impact. Therefore, as of today, Cementir has no need to reconvert, upgrade
or dispose of existing assets, nor to reorient the product and service portfolio to enhance the resilience of
its strategy.
As declared by the TCFD, the process of disclosing information on the risks and opportunities connected
with climate change will be gradual and incremental from year to year.
For further details on physical and transition risks identified leveraging on scenario analysis, please refer
to the Management report section, chapter “Main risks to which the group is exposed”.
Impact, risk and opportunity management
ESRS 2 IRO-1 Description of the processes to identify and assess material climate- related impacts,
risks and opportunities
For information regarding the process to identify and assess material climate-related impacts, risks and
opportunities, please refer to Chapter “General Information”, sections “Impact materiality assessment” and
“Financial materiality: risks and opportunities assessment”.
The cement production process is associated with environmental impacts in the form of atmospheric
emissions, mainly carbon dioxide, dust, and nitrogen and sulphur oxides. Most climate experts agree that
the world must take urgent action to cut CO₂ emissions and it is undeniable that cement manufacturing is
a process that makes intensive use of thermal energy, releasing both direct and indirect CO₂ emissions
into the atmosphere.
Cementir wants to address environmental and climate change issues by reducing CO₂ emissions, energy
consumption, water consumptions and to preserve natural habitats and their biodiversity in areas
surrounding our sites.
The Group analyses the environmental risks of its operations, involving management to ensure compliance
with current regulations, best environmental standards and Best Available Techniques (BAT).
Cementir has taken action to guarantee that all the companies of the Group that are active in cement and
concrete production will operate in the coming years with a certified Environmental Management System
according to the ISO 14001 standard.
In cement, 9 out of 11 cement plants are certified ISO 14001. The Group aims at obtaining the mentioned
certification for all cement plants by 2025.
In ready-mix concrete activities, companies accounting for 25% of production are ISO 14001 certified. The
Company aims to certify 100% of our companies in concrete production by 2027.
The waste management company, operating in Türkiye, is already ISO 14001 certified.
Directors’ Report 2024 Cementir Holding NV | 216
In 2024, Cementir was included for the first time in CDP’s prestigious “A List,” recognizing the company’s
effective strategies and actions to mitigate climate change and promote corporate transparency. This
milestone highlights the significant progress Cementir has achieved over four years, advancing from its
initial “B” rating in 2020.
Additionally, Cementir has sustained its leadership in CDP Water Security, earning an A- score for the third
consecutive year.
For further information on the analysis of climate-related physical and transitional risks, please refer to
section “ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model; paragraphs 18 & 19” of this document.
E1-2 Policies related to climate change mitigation and adaptation
Cementir acknowledges its environmental responsibilities across all areas of its operations and is
committed to reducing its environmental footprint, with a particular focus on addressing climate change.
Climate change, along with broader environmental concerns, forms a core component of the Group’s
sustainability framework and strategy.
In order to manage its relevant impacts, risks and opportunities related to climate change mitigation and
adaptation, Cementir has an Environmental Policy in place (please, refer to the General Information section
to deep-dive), which applies to all operational activities within the Cementir Group.
Each operating company is responsible for implementing the policy’s directives and guidelines as a crucial
and integral component of its own Environmental Management System. These systems and policies must
incorporate the principles and commitments outlined in the Group's Environmental Policy.
The Environmental Policy focus is based on three lines of action and operates on multiple fronts regarding
climate change mitigation and energy efficiency:
● Energy efficiency
The policy aims to increase the efficient use of energy in the framework of the Energy Management System,
compliant with the internationally recognized standard (i.e., ISO 50001). It promotes energy recovery and
the use of renewable energy sources, thus reducing energy consumption and, consequently, CO
2
emissions.
● Alternative fuels and raw materials
The policy aims at increasing alternative fuels usage in cement production, such as low-carbon fuels and
biomass, thus reducing environmental impact. Moreover, promotes the adoption of a co-processing and
circular approach to waste as a fuel, which contributes to lower emissions compared to traditional fossil fuels.
Finally, it defines the use of decarbonized/alternative raw materials to minimize the usage of non-renewable
resources.
● Product innovation and new technologies
The policy promotes an increase in the production of low-carbon cement such as FUTURECEM
5
,
encouraging the circularity and reducing emissions throughout the products’ lifecycle.
It also promotes an increase in the use of concrete-based demolition waste as substitutes of natural
aggregates in concrete production following our circular economy strategy.
5
FUTURECEM® is the result of an innovative limestone and calcined clay technology which allows high clinker replacement in
cement.
Directors’ Report 2024 Cementir Holding NV | 217
Additionally, the engagement and participation in new technologies implementation such as Carbon
Capture, Usage and Storage in Cementir’s “hard-to-abate” plants, aims at enabling the capture and storage
of emitted CO
2
in the upcoming years, thereby reducing the overall carbon footprint of Cementir’s products.
The adoption of innovative technologies, such as FUTURECEM cement, could make products more
durable and resistant to extreme climatic conditions, indirectly contributing to climate change adaptation.
For example, the use of more resilient materials could improve the resistance of buildings and infrastructure
to extreme weather events.
Moreover, the reuse of demolition materials and the recycling of construction materials contribute not only
to sustainability but also help reduce risks related to resource scarcity and the need to adapt to new climatic
conditions, such as the scarcity of natural materials or the rising production costs due to climate change.
In this sense, such policy addresses climate change adaptation through product innovation and the
adoption of circular and sustainable strategies.
These lines of action guide the CO
2
strategy of the Group to net zero by 2050, aligned with the 1.5 °C
scenario defined in the Cement Sector guidance of SBTi
6
.
E1-3 Actions and resources in relation to climate change policies
About actions defined in relation to climate change policies, please refer to paragraphs “Cementir Roadmap
2030” of the “Strategy” section, as well as “EU Taxonomy” paragraph.
Metrics and targets
E1-4 Targets related to climate change mitigation and adaptation
Regarding targets related to climate change mitigation and adaptation, please refer to paragraph 16 of the
“Strategy” section. It has to be considered the measurement of the metric related to characteristics of own
employees is not validated by an external body other than the assurance provider.
E1-5 Energy consumption and mix
Cement production requires considerable levels of energy consumption in its various processes because
of the high temperatures that must be reached in the kiln (1,500°C), the electricity required to grind the
product, and the quantity of material used.
Thermal energy is used in the start-up and operation of the kilns and the operation of the burners or boilers
required to increase production efficiency and optimise the production process (for example, to dry raw
materials and fuels).
Electricity, on the other hand, is mainly used to operate the mills that grind the raw materials, clinker and fuels.
In 2024, the cement production plants used 9.4 million MWh of thermal energy and 1.2 million MWh of
electricity.
Other activities use less energy comparing with cement production, ready-mix concrete consume around 1%
of total energy used by Cementir group and others consume another 1%.
In 2024, the ready-mix concrete production plants used 115,370 MWh.
In 2024, the Group significantly increased its use of renewable energy by expanding its reliance on green
electricity through Power Purchase Agreements (PPAs). This achievement was made possible through
new agreements signed with Engie and EtherEnergy for the Group's Belgian subsidiary, CCB.
Overall, the Group utilized 49,071 MWh of green electricity supported by PPAs, representing approximately
4% of its total electricity consumption.
6
SBTi - The Science Based Targets initiative drives ambitious climate action in the private sector by enabling organizations to set
science-based emissions reduction targets. It’s a global team comprised of people from all partner organizations - United Nations
(UN) Global Compact, World Resources Institute (WRI), World Wide Fund for Nature (WWF) and Carbon Disclosure Project (CDP).
Directors’ Report 2024 Cementir Holding NV | 218
Total energy consumption
UoM
2024
2023
2022
Fuel consumption
MWh
9,555,740
9,789,703
10,059,426
Fossil fuel consumption
MWh
8,240,285
8,718,282
9,050,101
of which Coal
MWh
1,739,543
2,122,094
2,125,226
of which petroleum coke
MWh
4,702,387
4,475,717
4,496,912
of which combustible oil
MWh
116,938
200,631
267,127
of which lignite
MWh
58,702
130,960
364,456
of which diesel
MWh
175,996
216,423
209,789
of which natural gas
MWh
576,543
527,311
512,206
Fossil fraction of waste fuels
MWh
870,176
1,045,146
1,074,385
Fuel consumption from renewable sources
MWh
1,315,455
1,071,421
1,009,325
of which biofuels
MWh
4,286
1,831
2,002
Biogenic fraction of waste fuels
MWh
1,311,169
1,069,590
1,007,323
Purchased energy
MWh
1,263,231
1,277,352
1,301,296
Energy purchased from fossil sources
MWh
1,144,314
1,161,691
1,168,256
of which electricity
MWh
1,143,205
1,160,342
1,166,736
of which heat
MWh
1,109
1,349
1,520
of which cooling
MWh
0
of which steam
MWh
0
Energy purchased from renewable sources (Power
Purchase Agreements)
MWh
49,071
7,669
8,895
of which electricity
MWh
49,071
7,669
8,895
of which heat
MWh
0
0
0
of which cooling
MWh
0
0
0
of which steam
MWh
0
0
0
Energy purchased from nuclear sources
MWh
69,846
107,992
124,145
Self-generated energy
-
-
-
Self-generated energy from fossil fuels
MWh
-
-
-
of which consumed
MWh
of which sold
MWh
Self-generated energy from renewable sources
MWh
586
438
586
of which consumed
MWh
114
124
114
of which sold
MWh
472
314
472
Total energy consumed
MWh
10,819,557
11,067,493
11,361,013
of which from fossil sources
MWh
9,384,599
9,879,973
10,218,357
As a percentage of total consumption
%
86.7%
89.3%
89.9%
of which from renewable sources
MWh
1,365,112
1,079,528
1,018,511
As a percentage of total consumption
%
12.6%
9.8%
9.0%
of which from nuclear sources
MWh
69,846
107,992
124,145
As a percentage of total consumption
%
0.6%
1.0%
1.1%
Waste energy from the process sold to third parties for district
heating
MWh
288,819
284,442
356,422
Directors’ Report 2024 Cementir Holding NV | 219
Total energy consumption
UoM
2024
2023
2022
From fossil sources
MWh
9,384,599
9,879,973
10,218,357
of which consumption of coal fuels and coal products
MWh
1,798,245
2,253,054
2,489,682
of which consumption of fuels from crude oil and petroleum
products
MWh
4,995,321
4,892,771
4,973,828
of which fuel consumption from natural gas
MWh
576,543
527,311
512,206
of which fuel consumption from other fossil sources
MWh
870,176
1,045,146
1,074,385
of which consumption of electricity, heat, steam or cooling from
fossil sources, purchased or acquired
MWh
1,144,314
1,161,691
1,168,256
Energy intensity
UoM
2024
2023
2022
Intensity
MWh/euros
-
-
-
Total energy consumption
MWh
10,819,557
11,067,493
11,361,013
Net revenues
euros
1,686,943,385
1,694,247,000
1,723,103,000
Use of alternative fuels
The thermal energy at Cementir Group plants is generated by the combustion of fossil fuels (fuel oil,
petroleum coke, coal and natural gas) and, in part, by alternative fuels.
The reduced consumption of non-renewable fossil fuels and the resulting increased use of alternative fuels
is a primary aim for reducing environmental impact, particularly associated with emissions.
As discussed in more detail above, alternative fuels, in this way, plays a major role toward the reduction of
Group’s environmental footprint.
By 2030, the Group plans to increase the proportion of alternative fuels in the fuel mix to 48% for producing
grey cement and 6% for white cement. For white cement, the demand for consistency of colour is much
higher than with grey as varying shades of white or coloured surfaces are not acceptable. For this reason,
the use of alternative fuels is drastically limited in the production of white cement.
The targets have been set for each plant and intermediate targets have been defined for 2025 and 2030.
In 2024, 23% of the thermal energy needed in the cement production process has been generated from
alternative fuels. The goal is to reach 32% globally; 48% alternative fuels in grey cement production and
6% in white cement production by 2030
7
.
For more details regarding the KPIs related to the Group's use of alternative fuels, please refer to the
Appendix section of this document.
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
Cementir’s CO
2
footprint
7
The quality requirements of white cement production make it difficult to use alternative fuels, as they affect the colour of the cement.
For this reason, their use is limited.
Directors’ Report 2024 Cementir Holding NV | 220
The Group’s CO
2
footprint can be described through the three different categories (Scope 1, 2 and 3
emissions) established by the GHG protocol
8
.
It is specified that the emissions from Scope 1, 2, and 3 include all companies in the Group, regardless of
the shareholding percentage.
Cementir follows a structured approach to conduct the calculations related to the carbon footprint, to ensure
accuracy and reliability.
For plants operating under the EU Emission Trading System (ETS), measured and certified values provided
by accredited laboratories are used. These values are closely monitored and comply with the rigorous
standards of the ETS, ensuring that emissions data is precise and up-to-date.
For other plants or operations not covered under the ETS, according to the GNR Protocol, we use, plant
specific emission factors, if reliable data are available.
Alternatively, IPCC and CSI Cement CO
2
and Energy Protocol default emission factors are used. The
factors can be found on this site:
https://www.cement-co2-protocol.org/en/#Internet_Manual/constants.htm
Additionally, the Internal Audit function periodically verifies the completeness and accuracy of CO2
calculations during Environmental, Social, and Governance (ESG) audits.
Scope 1 emissions account for 71% of Cementir’s carbon footprint. Scope 1 emissions include all direct
emissions from owned or controlled sources, they include:
● Direct emissions related to the calcination of limestone (process emissions);
● Direct emissions generated from the fuel used to produce the required thermal energy (fuel-related
emissions) and emissions produced from fuel consumption for internal transportation, such as
excavators, etc.
8
In the case of market based, for developed energy not covered by certificates that guarantee the source and therefore the associated
emissions, the residual mix factor is used where available, only if it is not available (non-European countries) the same location based
factor is used.
Directors’ Report 2024 Cementir Holding NV | 221
Scope 2 emissions, which account for 4% of the total, include indirect emissions.
For the Cementir Group, these emissions arise from the production of purchased electricity used in
operations.
Scope 3 emissions cover other indirect emissions within the Group’s value chain, including those from
the extraction and production of purchased materials and fuels, as well as transportation. These emissions
make up 25% of Cementir’s total carbon footprint.
In 2024, total CO
2
emissions (direct and indirect) amounted to 9,739,399 million tons from fossil and
437,021 from biogenic.
Emissions under the direct control of Cementir Group, i.e., Scope 1 emissions, amounted to 6,900,426
tons.
The share of biogenic emissions from Scope 1, not included in in 6,900,426 tons, amounts to 437,021 tons.
CO
2
emissions – Group
2024 (ton)
2024 (%)
2023 (ton)
2023 (%)
2022 (ton)
2022 (%)
CO
2
emissions (Scope 1)
6,900,426
71%
7,184,097
70%
7,324,884
65%
Percentage of Scope 1 GHG
emissions from regulated
emission trading schemes
26%
29%
32%
CO
2
emissions (Scope2) location
based
405,453
4%
424,422
4%
386,306
3%
CO
2
emissions (Scope 2) Market
based
532,615
527,818
522,974
CO
2
emissions (Scope 3)
2,495,697
25%
2,607,247
26%
3,591,439
32%
Total CO
2
emissions location
based
9,801,577
100%
10,215,766
100%
11,302,629
100%
Total CO
2
emissions Market
based
9,928,738
10,314,318
11,444,141
Cementir’s Scope 3 emissions
The emissions calculated for each Scope 3 category in 2024 are shown below.
9
DEFRA is the UK Department for Environment, Food and Rural Affairs. Please see GOV.UK (www.gov.uk).
2024(tCO
2
e)
%
Description
Purchased goods and services
1,225,411
48%
This category includes emissions related to the purchased materials such
as clinker, cement, fly ashes, slag, gypsum, pozzolana etc. The calculation
was made applying to quantities (tons) LCA emission factors, specific for
each material. The emission factor database used for this calculation is
Ecoinvent database v3.11.
Capital Goods
64,163
3%
This category includes emissions related to the production and
transportation of the following capital goods: constructions, machineries,
electrical and optical equipment and transport equipment. The estimation is
based on average spend-based emission factors derived from the
Comprehensive Environmental Data Archive (CEDA) 2024.
Fuel and energy-related activities
877,686
36%
This category includes the emissions related to the extraction, production
and transportation of fuels and energy purchased by Cementir in 2024 not
already accounted for in Scope 1 or 2. The calculation was made applying
the well-to-tank emission factors of BEIS&DEFRA
9
, 2024 and Ecoinvent
v3.11 to fuels, IEA 2024, AIB, e-GRID and Ecoinvent v3.11 to electricity.
Directors’ Report 2024 Cementir Holding NV | 222
Scope 3 category
2024(tCO
2
e)
2023(tCO2e)
2022(tCO2e)
Purchased goods and services
1.225.411
1.264.467
2.096.568
Capital Goods
64.163
34.913
90.635
Fuel and energy-related activities
877.686
964.593
997.091
Upstream transportation
128.142
162.429
217.211
Waste
409
298
138
Business travel
3.695
1.564
3.003
Employee commuting
Upstream leased assets
Downstream transportation
181.162
163.640
175.053
Processing of sold products
Use of sold products
End-of-life treatment of sold products
15.029
15.343
11.740
Downstream leased assets
Franchises
10
Please see the Cement Sector Scope 3 GHG Accounting and Reporting Guidance, developed by the Cement Sustainability
Initiative Cement Sector Scope 3 GHG Accounting and Reporting Guidance (wbcsd.org)
2024(tCO
2
e)
%
Description
Upstream transportation
128,142
5%
This category includes emissions deriving from upstream transportation by
external cargo ships, trucks and freight trains of raw materials, semi-
products and products. The calculation considers freights (tons) and
distances and uses BEIS&DEFRA 2024 emission factors, specific for the
mean of transportation. The emission factors are WTW (well-to-wheel).
Waste
409
0%
This category includes emissions from external wastewater treatment. The
calculation uses BEIS&DEFRA 2024 emission factors.
Business travel
3,695
0%
This category includes emissions from employee business travels. The
estimation is based on average spend-based emission factors derived from
the Comprehensive Environmental Data Archive (CEDA) 2024.
Employee commuting
0%
Category with negligible emissions. Most employees live close to the plants
and the related emissions are estimated to be less than 1% of the total
Scope 3 emissions
10
.
Upstream leased assets
0%
Category with negligible emissions. According to the Cement Sector Scope
3 GHG Accounting and Reporting Guidance, developed by the Cement
Sustainability Initiative, this category is considered ‘not relevant’ to the
cement sector. Emissions due to upstream leased assets are estimated to
be less than 1% of the total Scope 3 emissions.
Downstream transportation
181,162
7%
This category includes emissions deriving from downstream transportation
by external cargo ships, trucks and freight trains of products. The calculation
considers freights (tonnes) and distances and uses BEIS&DEFRA 2024
emission factors, specific for the mean of transportation. The emission
factors are WTW (well-to-wheel).
Processing of sold products
0%
Category with negligible emissions. According to the Cement Sector Scope
3 GHG Accounting and Reporting Guidance, this category is considered ‘not
relevant’ to the cement sector. Emissions due to the processing of sold
cement products are estimated to be less than 1% of the total Scope 3
emissions.
Use of sold products
0%
Category with negligible emissions. According to the Cement Sector Scope
3 GHG Accounting and Reporting Guidance, this category is considered ‘not
relevant’ to the cement sector. Emissions due to the direct use-phase of sold
cement products over their expected lifetime are estimated to be less than
1% of the total Scope 3 emissions.
End-of-life treatment of sold products
15,029
1%
This category includes emissions from the waste disposal and treatment of
products sold by Cementir in the reporting period. Emission factors are
BEIS&DEFRA 2024.
Downstream leased assets
0%
Not applicable: The Cementir Group’s business does not include leased
assets.
Franchises
0%
Not applicable: The Cementir Group does not have franchises.
Investments
0%
Not applicable: Provision of capital or financing is not included in Cementir
Group's business
TOTAL
2,495,697
100%
Directors’ Report 2024 Cementir Holding NV | 223
Investments
TOTAL
2.495.697
2.607.247
3.591.439
CO
2
emissions related to Cement production
CO
2
emissions – Cement Production
Unit
2024
2023
2022
CO
2
emissions (Scope 1)
t
6,857,735
7,134,901
7,278,336
CO
2
emissions (Scope 2) Location based
t
397,604
416,562
377,548
CO
2
emissions (Scope 2)
market based
t
517,576
510,390
513,938
Total CO
2
emissions Location based
(scope1+scope2)
t
7,255,339
7,551,463
7,655,884
Total CO
2
emissions Market based (scope1+ scope2)
t
7,375,311
7,645,291
7,792,274
CO
2
emissions Intensity Scope 1 – Grey cement
kg CO
2
/TCE
632
655
672
CO
2
emissions Intensity Scope 1 – White cement
kg CO
2
/TCE
860
846
886
As reported in the chapter ‘Cementir Roadmap 2030’, the Group is increasingly focused on the
development of new technologies for carbon capture and storage (CCS). Following the introduction of CCS
in Aalborg, Cementir will reduce its Scope 1 emissions to 417 kg of CO₂ per ton of grey cement, below the
threshold required by the EU Taxonomy, and 44% lower than 2020 emissions.
For white cement, which is a special product with niche applications and markets (0.5% of total world
cement production), Cementir’s plan is to reduce its Scope 1 emissions to 653 kg of CO₂ per ton of cement.
The CO
2
reduction in white cement production will be achieved by replacing traditional fossil fuels with
natural gas and biomass, by replacing clinker content in cement with mineral additives, such as limestone
and with the carbon capture in Aalborg where, one of the white kilns will be connected with CCS.
CO
2
emissions related to other activities
For the other activities performed by the Group, ready-mix concrete, production of aggregates, production
of concrete prefabricated products and waste collection and treatment, the CO
2
equivalent emissions are
significantly lower. The data is presented in the table below.
CO
2
emissions – Other
Unit
2024
2023
2022
CO
2
emissions (Scope 1)
t
42,691
49,196
46,548
CO
2
emissions (Scope 2) location based
t
8,311
7,861
8,758
CO2 emissions (Scope 2) market based
t
15,500
12,584
13,880
Total CO
2
emissions Location
t
51,002
57,056
55,306
Total CO
2
emissions Market
t
58,191
61,780
60,428
 GHG Intensity based on net revenue
GHG Intensity per net revenue
2024
2023
Δ %
Total GHG emissions (location based) per net revenue
(tCO2eq/Monetary unit)
0,58%
0,60%
-3,64%
Total GHG emissions (market based) per net revenue
(tCO2eq/Monetary unit)
0,59%
0,61%
-3,37%
E1-8 Internal carbon pricing
Directors’ Report 2024 Cementir Holding NV | 224
Internal Carbon Pricing System and Its Role in Decision-Making
Cementir Group (CH) has established an internal carbon pricing system to strengthen financial and
strategic decision-making, particularly in relation to CO₂ cost management and investment planning.
By integrating carbon pricing into its financial and strategic frameworks, CH enhances resilience to
regulatory changes, supports long-term decarbonization objectives (e.g., development of low-carbon
products, targeted investments, and R&D activities), and promotes transparency in climate-related
Management Reporting.
1. Methodology for Carbon Price Determination
Each year, CH determines its internal carbon price through a structured evaluation process that considers
multiple factors, including benchmarking against industry peers and technical analysis based on an
adaptive expectations approach.
This methodology incorporates:
● Historical price trends within the European Emission Trading System (ETS), ensuring alignment
with observed market dynamics.
● Consensus projections from leading international forecasters, particularly Carbon Pulse, a globally
recognized organization specializing in carbon markets and sustainability.
This approach ensures a realistic and forward-looking estimation of carbon costs, balancing market-driven
insights with long-term regulatory expectations to support informed decision-making.
2. Scope of Application
Internal carbon pricing plays a crucial role across multiple areas of CH’s corporate strategy and financial
planning, specifically in:
● Investment Decisions & Sensitivity Analysis – Integrated into Capex evaluations and strategic
planning to assess the financial feasibility of projects that impact Scope 1 and Scope 2 absolute CO₂
emissions, either through reduction measures or increased production capacity.
● Financial Forecasting – Incorporated into budget planning and cost projections, particularly for
CH’s plants in Denmark and Belgium, which are subject to the EU ETS.
● Risk Management – Used to measure, model, and manage financial and regulatory risks
associated with both existing and potential government carbon pricing regimes, ensuring compliance with
evolving policies.
By embedding internal carbon pricing into key decision-making processes, the Group enhances its ability
to anticipate market shifts, optimize capital allocation, and drive sustainable business growth in an
increasingly carbon-constrained economy.
E2 POLLUTION
Impact, risk and opportunity management
ESRS 2 IRO-1 Description of the processes to identify and assess material pollution-related
impacts, risks and opportunities
For information regarding the process to identify and assess material pollution-related impacts, risks and
opportunities, please refer to Chapter “General Information”, sections “Impact materiality assessment” and
“Financial materiality: risks and opportunities assessment”.
E2-1 Policies related to pollution
Overall, key commitments set out in the Group Environmental Policy (please, refer to the General
Information section to deep-dive), include:
Directors’ Report 2024 Cementir Holding NV | 225
● Prioritizing environmental factors in the development of operations and assessing impacts on new
or modified sites to achieve positive outcomes.
● Promoting efficient environmental practices and exploring advanced technologies to minimize the
environmental footprint throughout the product lifecycle.
● Setting clear, measurable environmental targets aligned with the UN Sustainable Development
Goals.
● Regularly monitoring, reviewing, and disclosing environmental performance using internationally
recognized indicators.
● Fostering constructive cooperation within the company and with local communities and institutions
to address environmental challenges.
● Encouraging employees and supply chain partners to adopt sustainable environmental practices
through training and awareness activities.
● Ensuring compliance with all relevant laws and corporate guidelines.
With regard to pollutant emissions, the Group Environmental Policy aims at reducing pollutant emissions
and maintain an efficient monitoring system to prevent and control such emissions in the environment,
following the Best Available Techniques.
For detailed information regarding the activities implemented by the Group with reference to the BAT,
please refer to section “E2-4 – Pollution of air, water, and soil” of the present document.
It also aims at minimizing the impact of operations on nearby areas and the community.
Moreover, the Group is committed to managing environmental responsibilities through the effective
implementation and maintenance of an Environmental Management System (EMS) compliant with ISO
14001.
Indeed, as part of ISO 14001 certification, a risk assessment process related to environmental impact is
required, which must be carried out through an evaluation matrix, involving the communities affected by the
Group's activities.
This process is generally an integral part of the certified environmental management system.
Regarding cement plants, ISO 14001 certification is present in 9 out of 11 plants.
However, not all cement plants participate annually in the community engagement process, but the
assessment of impacts and associated risks on communities is part of the environmental management
system.
Environmental Risk Management (ERM) is focused on managing and monitoring material pollution impacts,
but not all certified cement plants strictly follow the same practices, particularly at non-certified sites.
The goal is to complete ISO 14001 certification for all sites by the end of 2025, ensuring that each cement
plant meets the required environmental management standards.
In summary, certification and environmental management are continuous processes, with the need to align
all company sites to the same standards of risk assessment and management.
For more information on how the Group manages the water resource, please refer to section “E3 – Water
and marine resources” of the present document.
E2-2 – Actions and resources related to pollution
Cementir Group has an action plan for managing pollutants, consisting of a continuous air emission
monitoring and discontinuous measurements control system.
Directors’ Report 2024 Cementir Holding NV | 226
The plan focuses on mitigating the negative impacts associated with environmental sustainability issues
and ensuring compliance with current regulations as well as voluntary and sector-specific guidelines.
The Monitoring and reporting of air emissions’ objective consists of guidelines for monitoring and
reporting environmental performance related to channelled air emissions (excluding CO
2
) in cement plants.
Such document defines minimum requirements for parameters, measurement frequency, and indicators,
which must be implemented by each operating company as part of its environmental management system.
It also outlines the reporting process to the Group HSE function and provides standardized guidance for
air emissions accounting.
The document applies to all cement plants within the Cementir Group, focusing on emissions from the kiln
stack, the primary source of emissions.
It excludes CO
2
emissions, which are covered by separate Group guidelines for greenhouse gas monitoring
and reporting.
The main emissions from cement production originate from kiln firing, preheating, and precalcining
processes, primarily due to physical-chemical properties of raw materials and fuel combustion.
The largest emitted substances are dust, nitrogen oxides (NOx), and sulphur oxides (SOx). Other
significant emissions include:
● Total organic compounds (TOC), including volatile organic compounds (VOC);
● Gaseous chlorides (HCl) and fluorides (HF);
● Carbon monoxide (CO);
● Heavy metals such as mercury (Hg), cadmium (Cd), thallium (Tl), and others;
● Polychlorinated dibenzodioxins and dibenzofurans (PCDD/Fs), reported as International Toxic
Equivalent (I-TEQ).
These emissions can be monitored using continuous (CEMS) or periodic (discontinuous) measurements.
The measurement and its frequency must be taken according to:
• Air emissions permit/authorization by local competent Authority;
• Local environmental standards and regulations;
• Recognized sectorial monitoring rules and metrology standards.
The effective management of air pollutants not only addresses air quality but also indirectly mitigates
negative impacts on soil, living organisms, and food resources, as identified in the Double Materiality
assessment. This is achieved through the Company's action plan, which focuses on monitoring and
controlling air emissions while actively managing their broader environmental effects.
The financial resources allocated to the air emissions monitoring plan are subject to periodic monitoring
and include both operational expenses (Opex) for the daily management of activities and capital
expenditures (Capex) for the management and maintenance of assets. These funds are aligned with the
Group's 2030 roadmap and are integrated into the organization's routine management activities.
There are no significant Opex or Capex expenses to report.
Metrics and targets
E2-3 – Targets related to pollution
At the moment, the Group has not defined measurable targets related to pollution.
Directors’ Report 2024 Cementir Holding NV | 227
The established processes are integrated into the HSE function, which is responsible for ensuring
adherence to the Group's Environmental Policy.
Furthermore, this issue is continuously addressed through ISO 14001 certifications, which are present in 9
out of 11 plants, with the goal of extending this certification to all plants by the end of 2025.
Finally, the Group monitors and reports emissions from cement production according to guidelines
consistent with recognized international reference documents, such as the EU BAT and GCCA
Sustainability Guidelines.
For further details on this aspect, please refer to section “E2-4 – Pollution of air, water and soil”.
E2-4 – Pollution of air, water and soil
The pollution ranges within which kilns operate depend largely on the nature of the raw materials, fuels,
age and design of the plant.
For example, the concentration of impurities and the behaviour of the limestone during firing/calcination
can influence pollutants, e.g. the variation of the sulphur content in the raw material plays an important role
and influences the range of the sulphur emissions in the exhaust gas.
The Group implements suitable technologies to reduce air emissions in line with the Best Available
Techniques (BAT), such as electrostatic precipitators and fabric filters for dust, low NOx burners, and
selective non-catalytic reduction systems for NOx.
In particular, cement plants located in Denmark and Belgium are subject to the Industrial Emissions
Directive (2010/75/EU) and the relevant EU BAT conclusions.
In 2024, 100% of clinker production was monitored through Continuous Emission Monitoring Systems
(CEMS) and discontinuous measurements of all emissions, with an increased frequency of sampling
compared to 2023.
Additionally, 99% of the total clinker production at the Group level was monitored through CEMS for the
primary pollutants: dust, nitrogen oxides (NOx), and sulphur oxides (reported as SO2). Volatile Organic
Compounds (VOCs), measured as Total Organic Compounds (TOC), are also reported.
Although present in very small quantities, emissions of volatile or semi-volatile heavy metals and their
compounds, as well as polychlorinated dibenzodioxins and dibenzofurans (PCDD/Fs), are also considered
significant. These emissions are influenced by kiln and process design, as well as the composition of raw
materials and fuels, including biomass. Non-volatile metal compounds remain within the process and are
incorporated into the clinker composition.
Monitoring and reporting air emissions are key components of the Group’s efforts to minimize its
environmental impact. The Cementir Group’s monitoring guidelines align with internationally recognized
reference documents, such as the EU BAT and GCCA Sustainability Guidelines, for tracking and reporting
emissions from cement production.
The Best Available Techniques (BAT) involve regular monitoring and measurement of process parameters
and emissions, in line with the relevant EN, ISO, or US EPA standards required by national regulations or
other international frameworks, ensuring data of equivalent scientific quality. The use of these standards
by accredited laboratories ensures compliance with these guidelines.
Examples of periodic measurement methods include EN ISO 13284 / US EPA 5 for dust; EN ISO 14792 /
US EPA CTM 34 for NOx; EN ISO 14791 / US EPA 6 for SO2; EN 14385 and EN 13211 / US EPA 29 and
30 for metals and mercury, respectively.
Best Available Techniques include the following:
● Continuous measurements of process parameters demonstrating the process stability, such as
temperature, O2 content, pressure, flow rate and CO emissions.
Directors’ Report 2024 Cementir Holding NV | 228
● Monitoring and stabilising of critical process parameters, e.g. fuel feed, regular dosage and excess
oxygen.
● Continuous measurements of dust, nitrogen oxides, sulphur oxides, CO emissions.
● Continuous or periodic measurements of HCl and HF emissions in case waste are co-incinerated.
● Continuous or periodic measurements of TOC emissions in case wastes are co-incinerated.
● Periodic measurements of PCDD/Fs and metal emissions.
For continuous measurements under operating conditions, averaging is required to summarize the results.
Depending on the time period and the number of validated values, the measurement result can be
presented as an hourly, daily, monthly, or yearly average.
In some cases, validation occurs before averaging the measurement results, such as by accounting for
measurement uncertainty or removing outliers. If there are enough validated results, the outcome is
considered representative of the operating conditions during that period.
For periodic measurements, the result represents the average over the sampling period, which could be,
for example, 30 minutes for air emission measurements. The number of samples needed to determine a
representative daily, monthly, or yearly average is typically specified in the air emission permit.
The requirements for maximum permissible measurement uncertainties can be found in standard methods
or local regulations. For example, EN ISO 14956 provides guidance on evaluating the suitability of a
measurement procedure for stack emission measurements by comparing it with the required measurement
uncertainty.
For continuous measurements, measurement uncertainty is determined according to EN 14181.
In 2024, the Cementir conducted a review of the monitoring procedures across all cement plants. Some
nonconformities were identified, mainly due to calculation errors, which have since been corrected. As a
result, emission data was revised, recalculated, and aligned with previous years' values.
Over the past three years, the Group has seen an overall improvement in key air emission indicators,
attributed to more stable operating conditions and lower sulphur content in raw materials and fuels. The
optimization of production between white and grey cement also contributed.
Several environmental projects are currently underway, aiming to further improve the Group’s performance,
particularly in reducing dust emissions (e.g., installation of fabric filters).
During the year, no fines and penalties were received.
Air Emissions
2024
2023
2022
Clinker produced with CEMS and discontinuous measurements of all emissions
% of total production
100
100
100
Clinker prodotto con CEMS di polvere, NOx, e SO2
% of total production
99
98
100
Polvere
tons
258
241
271
g/t clinker
32
30
34
NOx
tons
11.095
11.787
11.704
g/t clinker
1.390
1.464
1.449
SO2
tons
1.507
1.701
1.961
g/t clinker
189
211
243
TOC
g/t clinker
32
38
45
Directors’ Report 2024 Cementir Holding NV | 229
Hg
g/t clinker
0,005
0,012
0,012
PCDD/Fs
μg TEQ /t clinker
0,028
0,014
0,022
∑Cd, Tl
g/t clinker
0,012
0,014
0,016
∑Other Heavy metals [1]
g/t clinker
0,09
0,08
0,12
1[1] Sb, As, Pb, Cr, Co, Cu, Mn, Ni, e V.
E3 WATER AND MARINE RESOURCES
Impact, risk and opportunity management
ESRS 2 IRO-1 Description of the processes to identify and assess material water and marine
resources-related impacts, risks and opportunities
For information regarding the process to identify and assess material water-related impacts, risks and
opportunities, please refer to Chapter “General Information”, sections “Impact materiality assessment” and
“Financial materiality: risks and opportunities assessment”.
Projects related to water management, particularly in areas facing water stress, actively involve local
communities.
An example of this is a project in Belgium, where water extracted from a quarry is treated in a water
purification plant and then supplied to the local water network to provide potable water to the community.
This approach, shared with the community, was developed in response to the need to reduce pressure on
existing water resources by avoiding the extraction of water from local wells.
When undertaking significant projects that impact communities, the Company adopts an engagement
strategy, considering the needs and concerns of the communities themselves.
A thorough analysis highlighted the importance of an approach that minimizes local impact, emphasizing
cooperation between companies, communities, and institutions.
This approach is based on a constructive relationship, characterized by full openness and mutual trust, to
address environmental challenges and promote the conservation of shared natural resources.
E3-1 Policies related to water and marine resources
Protecting water resources is a key component of Cementir’s sustainability strategy. The Group
acknowledges that access to water, sanitation, and hygiene is a fundamental human right and actively
supports initiatives aimed at mitigating water supply risks, particularly in the most vulnerable regions.
The Group Water Policy (please, refer to the General Information section to deep-dive) guides Cementir's
operating companies in the responsible management of water and the Head of Region are responsible for
the correct application of the Policy.
It applies to all operations within the Group and is a fundamental part of each company’s Environmental
Management System.
The Group believes that effective water management is achieved through the implementation and upkeep
of these systems, focusing on the following commitments:
- Assess water supply as a risk /opportunity in business operations and development;
- Promote water efficiency through practices such as recycling, minimizing wastewater discharge,
reducing freshwater use, and utilizing alternative water sources;
Directors’ Report 2024 Cementir Holding NV | 230
- Prioritize freshwater efficiency, especially in high-water-stress areas identified by the World
Resources Institute’s Aqueduct map;
- Set measurable water management targets aligned with the UN Sustainable Development Goals;
- Regularly monitor, review, and disclose water management performance using internationally
recognized indicators;
- Foster constructive cooperation within the Group, local communities, and institutions to address
water conservation challenges;
- Encourage responsible water use and conservation among employees and supply chain partners;
- Ensure compliance with all relevant local, national, and international laws, as well as corporate
guidelines.
The Group is committed to following the guidelines outlined in the Water Policy.
For more information on how the Group implements these actions, please refer to sections “E3-2 Actions
and resources related to water and marine resources”, “E3-3 Targets related to water and marine
resources” and “E3-4 Water consumption”.
The Group is committed to safeguarding water resources also throughout its value chain.
Indeed, as set out in the Supplier Code of Conduct
11
, suppliers are expected to uphold socially responsible
practices, respecting the values of a positive environment, a healthy and safe workplace, and the cultures
and traditions of the countries in which they operate.
The relationship with the local community is critical, as business activities inevitably impact surrounding
areas. Suppliers must address climate change and emissions, ensuring effective management of
emissions, protection from climate impacts, and safeguarding the health and safety of workers.
Regarding sustainable water management, Cementir’s suppliers are expected to be committed to efficient
water management practices, including minimizing freshwater withdrawal, reducing wastewater discharge,
and enhancing water recycling and reuse at an appropriate level.
E3-2 Actions and resources related to water and marine resources
Starting with water-scarce areas as a priority, the Group promotes the sustainable use of water across all
its activities.
Cementir is strongly committed to reduce the water consumption increasing water reused/recycled, (e.g.,
drainages improvement and rainwater collection to reuse/recirculate a portion of water), minimizing water
withdrawal and wastewater discharge, minimizing losses (e.g., periodical checks of underground water
piping and pump conditions and their replacement if needed) and promoting water management efficiency
practices.
One of the objectives is to maximize the collection of rainwater and it has to be noted that most of the sites
of the undertaking have adequate collection systems (e.g. running tank) for its production process. There
is no punctual monitoring of the total volumes of water stored.
In 2024, water consumption in cement production amounted to 3,429 thousand m³, representing
approximately 78% of the Group's total water usage.
Water consumption in areas experiencing high water stress accounted for 31% of the total consumption.
Additionally, 31% of the total water withdrawn was reused or recycled.
11
The Supplier Code of Conduct is available at this link
Directors’ Report 2024 Cementir Holding NV | 231
Of the total water discharged from cement production, 96% was freshwater
12
.
BOX: Wastewater as a resource
In Al Arish – Egypt, Cementir focused on using of wastewater resulted from water treatment unit of the
plant. Part of this water flow was not usable for industrial purpose due to high level of salinity. In 2024,
three initiatives were implemented to give value at this wastewater:
● Part of the flow was used for agricultural purposes. 130 olive trees were planted. The number of
trees will be increased next years.
● Wastewater was used for spraying quarry roads to reduce dust emissions produced by vehicle and
mobile equipment.
● Wastewater was fed to the tank of water spray system for pet coke storage. This control technique
is commonly used at pet coke storages helping to control dust emissions and maintain product moisture
content.
In ready-mix concrete production, water is a key input resource.
In 2024, water consumption totalled 657 thousand m³, accounting for 15% of the Group’s total water usage.
Water consumption in areas with high water stress represented 70% of the total consumption in ready-mix
concrete production. Additionally, 24% of the total water withdrawn in ready-mix concrete was reused or
recycled. The Group is actively working to maximize water reuse for new preparations and on-site activities.
BOX: Zero water discharge
One of the Group’s goals in ready-mix production is to maximize rainwater collection and recycled water
recovery to achieve zero water discharge starting with plants in high water stress areas (e.g., Belgium,
Norther France). Where possible, water after sedimentation steps is reused for new product preparation.
In some plants the capacity of the water recovery basins was increased reaching zero discharge.
New basin at Noyelles-Lès-Seclin
In aggregates production, water consumption amounted to 327 thousand m³, representing about 7% of the
Group's total water usage. The increase compared to 2023 was due to the initiation of new activities. Water
reuse and recycling in aggregates accounted for 14% of the total water withdrawn.
Where quarry dewatering
13
is implemented, there is a focus on recovering quarry water. Pumped water
can be repurposed for various uses, such as washing aggregates and watering tracks. In many cases,
water use in quarries is arranged in a closed-loop system to minimize the volume of pumped water, and it
typically constitutes a small portion of the total water collected.
12
Freshwater is defined as the concentration of Total Dissolved Solids is ≤1000 mg/l.
13
Quarry dewatering refers to the process of removing groundwater from a quarry to maintain a workable bottom of the quarry.
When a quarry extends below the water table, groundwater will naturally infiltrate the quarry due to gravity.
Directors’ Report 2024 Cementir Holding NV | 232
Over 10% of the Group’s total water withdrawal (1,637 thousand m³) is used to supply drinking water to
local communities in Belgium.
BOX: Belgium, Potabilization of Clypot and Gaurain quarry water: partnership in sustainability
During 2024, the Group continued the recovery of quarry water to supply the public distribution network
(Société Wallonie des Eaux - SWDE). The volume of Clypot quarry water sent for potabilization was 1,499
thousand m³ (compared to 1,309 thousand m³ in 2023).
In 2024, Cementir also began supplying quarry water from the old Gaurain quarry, totaling 139 thousand
m³. The target is to reach 1,700 thousand m³ from Gaurain.
The Group invested to maximize the supply, aiming for a total of around 4,000 thousand m³. These
operations enable the recovery of quarry water into the public distribution network, optimizing the
management of quarry water levels. At the same time, they significantly reduce the local authority's reliance
on well water, particularly in the Gaurain and Clypot districts, which are areas of extreme water stress
Moreover, the Group ensures access to WASH (water, sanitation, and hygiene) services at an adequate
standard for all employees and contractors across all sites under the direct control, while also supporting
partners and communities within the Group’s value chains.
BOX: Safe Water, Sanitation and Hygiene at the Workplace (WASH)
We continued the implementation of planned improvement actions regarding our commitment to WASH,
signed in 2023. We worked to improve access to drinking water and sanitation for all workers at workplaces
whose operational control is under our responsibility. In addition, we intend
to address and support access to WASH along the value chain, as well as in
the communities where we operate.
At the end of 2024 in all our sites we reached a compliance value to WASH
standards more than 90%.
In 2024, no fines and/or penalties were received related to water management.
The financial resources allocated to water resource monitoring and reporting activities are subject to
periodic monitoring and include both operational expenses (Opex) for the daily management of activities
and capital expenditures (Capex) for the management and maintenance of assets. These funds are aligned
with the Group’s 2030 roadmap and are integrated into the organization’s routine management activities.
Metrics and targets
E3-3 Targets related to water and marine resources
An integrated strategy on climate change
Water risks related to climate change are periodically assessed using the World Resources Institute (WRI)
– Aqueduct Water Risk Atlas.
The risk levels for each cement plant and region are identified periodically and improvement actions are
prioritized and planned.
This process is conducted in accordance with Group’s 2030 Roadmap, which involves reducing
consumption (e.g., through the reduction of clinker ratio
14
).
14
The use of other constituents in cement and the reduction of the clinker-to-cement ratio means lower emissions and lower energy
use.
Directors’ Report 2024 Cementir Holding NV | 233
In 2024, the Group updated its water risk assessment at
the individual cement plant level based on the water
stress scenarios provided by the Aqueduct Water Risk
Atlas platform.
As a result of the industrial roadmap, Cementir revised
its 2030 targets to further improve performance.
At the Group level, the target for reducing water
consumption in cement production has been raised to
30%, up from the previous 20% based on 2019 values.
In line with the updated Atlas data, the Group also
reviewed its portfolio of plants located in high and
extremely high-water stress areas and recalculated
consumption values, including the baseline. These
plants are:
● Al Arish in Egypt – Arid and low water use risk category
● Izmir in Turkey and Gaurain in Belgium – Extremely high-risk category
● Kars in Turkey – High-risk category
The reduction target for these plants by 2030 is 25%, even though they start with a specific consumption
rate significantly lower than the Group average.
Water stress future scenarios
% of our cement plants operating in high and extremely high-water stress areas
% of our sites operating in high and extremely high-water stress areas
E3-4 Water consumption
Water Management System
Water balance is monitored monthly at the site level and consolidated quarterly at the Group level. The
Group’s monitoring and reporting guidelines define the minimum requirements for this activity. These
guidelines align with recognized international reference documents, such as the GCCA Sustainability
Guidelines for monitoring and reporting water use in cement manufacturing.
The Group uses various methods to measure different water flows:
● Direct measurement of water volume passing through a channel or pipe cross-section using a
meter.
WRI’s Aqueduct™ information platform compiles
advances in hydrological modelling, sensor data,
and published data. Aqueduct’s tools use open-
source, peer reviewed data to map water risks
such as floods, droughts and stress.
Baseline water stress measures the ratio of total
water demand to available renewable surface and
groundwater supplies. Water demand includes
domestic, industrial, irrigation, and livestock
consumptive and nonconsumptive uses. Available
renewable water supplies include the impact of
upstream consumptive water users and large
dams on downstream water availability. Higher
values indicate more competition among users.
2024
36%
2030
36%
2050
54%
2024
35%
2030
38%
2050
40%
Directors’ Report 2024 Cementir Holding NV | 234
● Calculations based on measurements of flow rate and pump operating hours, or the difference
between two measurements, such as water withdrawal and discharge.
● Estimation calculations based on the pump's rated capacity and operating hours or using an
empirical formula with assumed factors.
Quality monitoring of water discharge is conducted periodically. The frequency of these measurements is
typically monthly but may vary depending on local regulations (e.g., quarterly) and environmental permits.
Effluent parameters are periodically monitored using recognized analytical methods required by local
authorities, such as total suspended solids, pH, temperature, and oxygen demand.
Examples of periodic measurement methods include: EN 872 or ISO 11923 for total suspended solids, EN
ISO 10523 for pH, and EN 1899 or ISO 5815 for BOD (Biochemical Oxygen Demand). Requirements for
maximum permissible measurement uncertainties are in line with relevant standards or local legislation.
The Group undertakes a comprehensive assessment of water management at all its plants to ensure a
complete understanding of water withdrawal, discharge, recycling, and consumption.
Water is primarily used for conditioning kiln gases, de-dusting and cleaning, and cooling equipment such
as compressors.
In wet and semi-wet cement processes, water consumption mainly results from water vaporization during
production.
Pumped water is also used for various purposes, such as washing aggregates, watering trucks, and fugitive
dust reduction.
Water from production phases is typically treated on-site before discharge (97% of total water discharge in
2024).
The primary treatment involves the physical removal of suspended solids and floating materials, usually
through sedimentation.
Secondary treatment, including wastewater treatment plants (e.g., biological units), is implemented in some
cement plants and in our waste treatment plants.
Tertiary treatment (chemical and biological), applied after secondary treatment, removes suspended,
colloidal, and dissolved constituents such as nutrients, heavy metals, and other contaminants. This tertiary
treatment is only relevant for the Group's waste management plants.
Specific water consumption in cement was 373 liters/TCE (241 liters/TCE in high-water stress areas)
aligned with our improvement plan.
The targets have been set also based on the input received from stakeholders such as Shareholders,
Financial Communities and local authorities and opinion leaders.
Improving water consumption in cement
2019
2020
2021
2022
2023
2024
2030
Specific water consumption
l/TCE
480
445
413
402
387
373
335
Reduction compared to 2019
-7%
-14%
-16%
-19%
-22%
-30%
Specific water consumption - high
water stress areas
l/TCE
291
292
285
270
253
241
219
Reduction compared to 2019
0%
-2%
-7%
-13%
-17%
-25%
Directors’ Report 2024 Cementir Holding NV | 235
Group Water Balance
2024
2023
2022
Total water withdrawal
m3 / 1.000
15.133
15.317
14.908
Surface water
584
505
524
Groundwater
5.032
5.473
6,.849
Seawater
0
0
0
Rainwater
876
843
570
Public water
425
502
581
Quarry water
8.216
7.994
6.384
Total water discharge
m3 / 1.000
10.715
10.993
9.808
By place of discharge
Surface water
5.878
6.451
5.255
Groundwater
16
22
215
Seawater
2.620
2.836
3.270
External treatment plants and other discharge area
1.978
1.523
911
Domestic sewage
223
161
157
Total water consumption
m3 / 1.000
4.418
4.325
5.099
Indicator
UoM
Quantity
2022
2023
2024
Total water consumption
m3
5.009.430
4.325.243
4.417.579
Total net revenue
mln €
1.723.102.998
1.694.246.561
1.686.943.385
Water intensity
m3/mln €
0,29%
0,26%
0,26%
Below is the breakdown of water balance data in cement and ready-mix concrete production, accounting
for about 94% of Group total consumption.
Water balance in cement
2024
2023
2022
Total water withdrawal
m3 / 1.000
8.758
9.191
9.115
Surface water
410
408
404
Groundwater
4.373
4.336
5.014
Seawater
0
0
0
Rainwater
739
717
346
Public water
205
239
267
Quarry water
3.031
3.491
3.084
Total water discharge
m3 / 1.000
5.329
5.748
5.273
By place of discharge
Surface water
2.367
2.661
1.745
Groundwater
10
13
11
Seawater
2.620
2.836
3.270
External treatment plants and other
discharge areas
153
126
161
Domestic sewage
180
112
86
Total water consumption
m3 / 1.000
3.429
3.442
3.842
In high water-stress areas
% of total water consumption
in ready-mix
31
32
37,2
Directors’ Report 2024 Cementir Holding NV | 236
Total water reused/recycled
m3 / 1.000
2.727
3.095
2.695
% of total water withdrawal in
ready-mix
31,1
33,7
29,6
Specific water consumption
l/TCE
373
387
402
In high water-stress areas
241
253
270
Water balance in ready-mix concrete
2024
2023
2022
Total water withdrawal
m3 / 1.000
790
740
888
Surface water
47
40
96
Groundwater
408
329
345
Seawater
0
0
0
Rainwater
137
126
137
Public water
198
245
310
Total water discharge
m3 / 1.000
133
105
59
By place of discharge
Surface water
0
0
13
Groundwater
1
0
0
Seawater
0
0
0
External treatment plants and other
discharge areas
89
71
1
Domestic sewage
43
34
45
Total water consumption
m3 / 1.000
657
635
829
In high water-stress areas
% of total water consumption in
ready-mix
69,7
63,4
59,4
Total water reused/recycled
m3 / 1.000
188
178
183
% of total water withdrawal in
ready-mix
23,8
24
20,6
Specific water consumption
l / m3 ready-mix concrete
144
149
173
In high water-stress areas
156
154
191
Information on water consumption
UoM
Quantity
2022
2023
2024
Total water consumption in m3
m3
5.009.430
4.325.243
4.417.579
Total water consumption in m3 in water-at-
risk areas, including those with high water
stress
2.307.170
1.759.184
1.849.712
Cement
m3
1.428.309
1.100.188
1.063.686
RMC
m3
491.865
402.703
457.671
Aggregates
m3
383.096
254.153
323.655
Waste
m3
3.900
2.140
4.700
Total volume of recycled and reused water
m3
3.548.523
3.976.529
3.708.388
Total volume of water stored and its
variations
m3
-
-
-
Directors’ Report 2024 Cementir Holding NV | 237
E4 BIODIVERSITY AND ECOSYSTEMS
Strategy
E4-1 – Transition plan and consideration of biodiversity and ecosystems in strategy and business
model
Cementir Group has conducted an assessment of the impacts, risks and the resilience of its business
model concerning biodiversity and ecosystems.
The analysis revealed that quarrying activities, which provide the primary raw materials for cement and
aggregates, could significantly impact biodiversity and ecosystem health, particularly through habitat
disruption, dust emissions, and, in certain areas, water resources.
As far as the business resilience is concerned, given the abundance of raw materials, that are present in
easily accessible areas, the Group has not identified great concerns in terms of adaptability of its business
model.
The raw materials used in the cement industry are relatively common and widely available. The primary
raw materials for cement production include: 1) Limestone, the most abundant and essential component,
accounting for 60-70% of cement’s composition. It is widely available in sedimentary rock formations
worldwide. 2) Clay that provides silica, alumina, and iron oxide, which are crucial for the clinker formation.
Common sources include shale, bauxite, and laterite, which are widely distributed. 3) Sand or Silica,
needed to balance silica content. It is abundant in natural sand deposits and quartz-rich rocks. 4) Iron Ore,
used to adjust the iron content in the cement mix. Iron ore is common, and alternative sources like industrial
byproducts (e.g., mill scale) are also used. 5) Gypsum, to regulate the setting time of cement. While less
abundant than limestone, gypsum is still widely available and can also be obtained from industrial
byproducts like phosphogypsum.
Limestone and clay are among the most abundant minerals on Earth. Silica and iron ore are also plentiful
although require processing and gypsum is also very common. Overall, cement raw materials are not rare,
and their widespread availability makes cement production feasible in most parts of the world. So even in
the case of biodiversity related restrictions in quarrying it is considered extremely unlikely that any of these
raw materials will not be easily accessible.
In addition to the assessment described in this section, the Group has decided that in 2025 it will invest in
further evaluations of its impacts and dependencies with the support of expert services.
In particular, the Group has planned an in-depth analysis of biodiversity impacts to be performed starting
in 2025, to encompass all company-owned quarries and production sites, concentrating on their direct
impact on biodiversity, including in person, site-specific ecological assessments. Such analysis will take
into account, but will not be limited to, the following factors:
● Increasing regulatory focus on biodiversity protection, which may result in stricter permitting
requirements, challenges in permit renewals and extensions, and higher operational costs;
● The potential for quarry rehabilitation post-extraction to restore biodiversity, provided that high-
standard rehabilitation plans are followed;
● Collaborating with stakeholders such as local communities and conservation groups to reduce
reputational risks and enhance ecosystem resilience.
Directors’ Report 2024 Cementir Holding NV | 238
The analysis will be set to address, but will not be limited to, the following timeframes:
● Short-term: An analysis of risks and opportunities, prioritizing locations based on their potential
impact on biodiversity, ensuring compliance with current biodiversity regulations, and the initial
implementation of biodiversity action plans.
● Medium-term: Aligning quarry operations with emerging biodiversity policies, based on the results
of the risks and opportunities analysis.
● Long-term: Following the execution of the strategy and Roadmap 2030.
The results of the analysis will be shared at the conclusion of the Enterprise Risk Management analysis,
which focuses on biodiversity and is scheduled for completion in 2025. Internal and external stakeholders,
along with biodiversity experts, will be engaged throughout the resilience analysis process.
This will include consultations during the development of site-specific biodiversity analyses and action
plans, as well as collaboration with organizations possessing local and indigenous knowledge to ensure
ecologically sound practices.
At the moment, the Company already engages with stakeholders in some of its biodiversity projects, such
as in Belgium and Denmark. For more details about these projects, please refer to section "E4-4 – Targets
related to biodiversity and ecosystems”.
One of the Group's main objectives is to align its business model and strategy with the Kunming-Montreal
Global Biodiversity Framework, the EU Biodiversity Strategy for 2030, and relevant global and regional
goals and targets.
To manage the potential impact of its quarrying activities on biodiversity, the Group will develop a
comprehensive transition plan to enhance practices and mitigate biodiversity risks.
As part of this transition, Cementir has introduced the Group Biodiversity and Rehabilitation Guideline in
2022.
To further strengthen this process, the Group will undertake several initiatives to support the transition plan,
including:
1. Integration of biodiversity goals into strategic planning;
2. Sustainable land management and quarry operations;
3. Adoption of circular economy practices;
4. Stakeholder engagement and partnerships;
5. Monitoring and reporting of its main activities impacting biodiversity.
Directors’ Report 2024 Cementir Holding NV | 239
ESRS 2 SBM 3 – Material impacts, risks and opportunities and their interaction with strategy and
business model
Below is a list of the Group's quarries, including details on their geographical location and the type of quarry.
Cementir’s quarries
Site location
Quarry type
AALBORG
PORTLAND
Aalborg-Denmark
Chalk
KUDSK & DAHL
Norra Hostrup- Rodekro-Denmark
Sand & Gravel
Dybvad-Rodekro-Denmark
Sand & Gravel
AB SYDSTEN
Hardeberga-Sodra Sandby-Sweden
Quartzite
Stenberget-Blentarp-Sweden
Granite
Oved-Sjobo-Sweden
Granite
Dalby-Sweden
Granite
NorraRorum-Hoor-Sweden
Granite
IZMIR
Bornova-Izmir-Turkiye
Limestone
Bornova-Izmir-Turkiye
Limestone
Bornova-Izmir-Turkiye
Limestone
Bornova-Izmir-Turkiye
Limestone
Bornova-Izmir-Turkiye
Clay
TRAKYA
Lalapasa-Edirne-Turkiye
Limestone
Lalapasa-Edirne-Turkiye
Clay
Lalapasa-Edirne-Turkiye
Clay
ELAZIG
Tadim- Elazig-Turkiye
Limestone
Yemislik – Elazig - Turkiye
Pozzolan
Guneycayiri- Elazig-Turkiye
Limestone
Gollu Bag – Elazig - Turkiye
Marl
Gollu Bag – Elazig - Turkiye
Marl
Korpe- Elazig-Turkiye
Limestone
KARS
Bozkale -Kars-Turkiye
Limestone
Bozkale -Kars-Turkiye
Clay
Bozkale -Kars-Turkiye
Clay
Cumhuriyet -Kars-Turkiye
Pumice
MUGLA
Yerkesik – Mugla -Turkiye
Limestone
Ula – Mugla -Turkiye
Limestone
TORBALI
Torbali -Izmir-Turkiye
Limestone
Torbali -Izmir-Turkiye
Limestone
CCB
Antoing, Tournai - Belgium
Limestone
Barry, Tournai - Belgium
Limestone
Clypot-Neufvilles - Belgium
Limestone
SWC
Gebel Lebni - North Sinai - Egypt
Limestone
Gebel Lebni - North Sinai - Egypt
Limestone
APM
Ipoh-Perak-Malaysia
Limestone
Ipoh-Perak-Malaysia
Limestone
ANGING
Anqing –Anhui – China
Limestone
Directors’ Report 2024 Cementir Holding NV | 240
Cementir has conducted a thorough review of its operational sites to assess their biodiversity-related
features. For such analysis, a prudential 50 km buffer has been used to account for the biodiversity
significance and the potential range of critically endangered (CR), endangered (EN), and vulnerable (VU)
species that may occur at each site. This analysis was carried out using the Integrated Biodiversity
Assessment Tool (IBAT), the world’s leading database for species and ecosystems, and focuses on all of
its 38 quarries. The assessment identifies sites based on their proximity to protected areas, Key Biodiversity
Areas (KBAs), and the presence of threatened species as classified by the IUCN Red List of Threatened
Species.
The very large (50 km) safety buffer was chosen due to general available literature worst cases for mining
sites
15
. Amongst them, sites within 5 km of Protected Areas (PA) have been identified to account for the
sensitivity of these areas.
The methodology employed in this analysis follows a two-stage approach:
1. Identification of Sensitive Sites: A biodiversity sensitive site is prudentially defined considering
its overlap between the buffer zone of 50 km and a protected area or KBA, or if its STAR Threat
Abatement and/or STAR Restoration scores exceeds the global median values
16
.
2. Assignment of Significance Scores: Sensitive sites identified in the first stage were then
assigned significance scores. These scores were determined based on the proximity of the site to
a KBA or protected area relative to the considered buffer size or based on the maximum STAR
Threat Abatement and STAR Restoration scores found within the area of influence (site + buffer)
16
.
All sites have been analyzed individually, but for the purpose of this disclosure and to avoid repetitions,
they’ve been clustered based on their relative proximity, taking into account biodiversity features and
habitats. This includes the presence of Key Biodiversity Areas (KBAs) near or overlapping with the different
sites.
A short description of each cluster of quarries is provided in the following paragraphs, including details on
the location, the main biodiversity-related threats, the overall Biodiversity Significance Score and significant
metrics (e.g. the ratio of threatened species and the STARt threat abatement score
17
), which will be
disclosed in detail in the paragraph “E4-5 – Impact metrics related to biodiversity and ecosystems change”
at site level.
Izmir
In the Izmir province, there are five quarries: four producing limestone and one
for clay. The area has a high overall biodiversity significance, with all sites
being near Key Biodiversity Areas (KBAs) or Protected Areas (PAs), also 3
sites resulted relevant based on the STARr index. The STARt value for this
area is below the global median, so it is considered irrelevant. One Ramsar
site, the Gediz Delta, is 18 km away. The quarries' areas of influence include
12 KBAs, particularly near the Boz Mountains, Yamanlar, Spil, and Nif. These
KBAs host various habitats, including caves vital for bat species. Within the
species present in the considered buffer area fof the quarries, 10% are
classified by the IUCN Red list as critically endangered, endangered or
vulnerable. The primary threats to biodiversity in the area include tourism,
Myotis capaccinii
15
Some mining has been observed to contribute to deforestation effects up to 50 km away (L. J. Sonter, D. Herrera, D. J. Barrett, G.
L. Galford, C. J. Moran, B. S. Soares-Filho, Mining drives extensive deforestation in the Brazilian
Amazon. Nature Communications. 8, 1013 (2017). T. Maddox, P. Howard, J. Knox, N. Jenner, Forest-Smart Mining: Identifying
Factors Associated with the Impacts of Large-Scale Mining on Forests (World Bank, 2019).
16
A full definition of the Species Threat Abatement and Restoration (STAR) metric can be retrieved from the briefing note publicly
available on IBAT’s website. In particular, high threat abatement (STARt) scores are assigned to areas that currently contain relatively
high numbers of threatened species, while high restoration (STARr) scores indicate areas that previously supported a relatively high
number of threatened species, and where restoration activities could significantly contribute to the reduction of species extinction risk.
17
The STARt score can have a ranking from “none” to “high” where higher STARt scores identify areas with higher numbers of
threatened species, and/or that cover a higher proportion of each threatened species’ range.
Directors’ Report 2024 Cementir Holding NV | 241
coastal development, urban sprawl, pollution, forest fires, and construction
pressures. Additionally, KBAs Karaburun ve Ildir Körfezi Adalari and Kizildag
Izmir, have identified the presence of stone and mining quarries as
contributing factors to the degradation of mountainous habitats.
Trakya
In the region of eastern Turkey, there is a cluster of three sites, two producing
clay and one producing limestone. The area where the quarries are located is
valued with a medium Biodiversity Significance Score, due to the distance with
PAs and KBAs. The STARt value for this area is below the global median, so
it is considered irrelevant, whereas the STARr score is low for all the sites.
The 8 KBAs within considered buffer area of the quarries are situated in
Bulgaria and Greece. They are characterized by forests and a mosaic of
grassland, scrub, freshwater ponds with reedbeds. There are no PAs in the
radius of 5 km from the sites in the cluster. The site is very important for
breeding, migrating and wintering of waterbirds, raptors and passerines. 6%
of the species present in the Area of Influence of the quarries are classified by
the IUCN Red List as Critically Endangered, Endangered or Vulnerable. The
main threats for biodiversity conservation in the area are: logging of trees,
agricultural intensification, use of pesticides and fertilizers, irrigation and
drainage, hunting.
Spermophilus citellus
Elazig
Around the city of Elazig, there are six quarries: three limestone, two marl, and
one pumice quarry, and they can be grouped given their geographical
proximity and similar environmental conditions. They are not located near any
protected area within a 50 km radius, but their operations may potentially
affect four KBAs, with the closest being 7 km away and the farthest 45 km
away. The main activities affecting biodiversity are industrial, commercial, and
residential development. The Overall Biodiversity Significance Score is
medium due to the proximity to KBAs, which are mostly passage areas for
migratory birds, while the STAR Biodiversity Significance is low due to a low
presence of Endangered species. The STARt value results to be not
significant for the limestone and pumice quarries, and scores low for the marl
ones. Only 6% of the species present in the area are classified by the IUCN
Red List as Critically Endangered, Endangered or Vulnerable.
Kars
In the Kars district, there are four Cementir quarries: two clay, one limestone,
and one pumice quarry. They are all located over 40 km away from Lake
Kuyucuk, a protected Ramsar site. The quarries may negatively affect nine
KBAs, with the nearest and most significant being Aygir Gölü, Cali Lake, Kars
Ovasi, and Sarikamis Ormanlari. This area is part of the Caucasus hotspot,
characterized by temperate forests, and the main threats to biodiversity are
energy production and mining, and future residential and commercial
development. The clay and limestone quarries have a low Biodiversity
Significance Score due to their distance from protected areas or KBAs and the
low presence of endangered species, while the pumice quarry has a medium
Oxyura leucocephala
Directors’ Report 2024 Cementir Holding NV | 242
score given its proximity to the Cali Lake KBA. The STARt value resulted to
be not significant for the limestone and clay quarries, but medium for the
pumice one. 8.5% of the species assessed in the area are classified by the
IUCN Red List as Critically Endangered, Endangered or Vulnerable.
Mugla
In the Mugla province, limestone quarries are not near any protected area
within a 50 km radius but can affect six KBAs within their Area of Influence
(AoI). In particular the quarry “Mugla-limestone-2” is located inside the “Datça
ve Bozburun Yarimadalari” KBA. The area features Mediterranean scrub
ecosystems, including coastal and marine habitats, pine, oak, and ash forests,
streams and lakes. These areas are sensitive for biodiversity, with medium to
high significance due to the presence of endangered or endemic species.
Within the species present in the considered buffer area of the quarries, 10%
are classified by the IUCN Red list as Critically Endangered, Endangered or
Vulnerable. The STARt score is valued as low for one site (Mugla-limestone-
1) and high for the other (Mugla-limestone-2). The main threats include
tourism development, dam construction, transportation corridors, forest fires,
grazing pressure, unplanned reforestation, agriculture, hunting and urban
development.
Aquila nipalensis
Torbali
South of the province of Izmir, west of the city of Torbali, lie two limestone
quarries. The surrounding hilly and mountainous terrain provides crucial
habitats for species like the Falco cherrug. The area features typical
Mediterranean vegetation, with distinct zones of prickly oak and black pine
forests at higher elevations. The quarries are on the periphery of the "Mahal
Hills", a KBA where quarrying may pose a significant threat to local
biodiversity. Forestry is a primary economic activity, and wildfires during
summer further challenge the ecological balance. There are no protected
areas within a 5 km radius but the percentage of threatened species in the
region is 9.5%. The area has high Overall Biodiversity Significance and a
STARt value of “High”.
Syd
In southern Sweden, there are five quarries: four extracting granite and one
quartzite. The area is highly significant for biodiversity due to the presence of
protected areas and KBAs. Nine KBAs are within a 50 km radius, including
three Ramsar sites. These KBAs include coastal, riverine and marine
environments, providing critical habitats for migratory and aquatic birds,
spawning fish, and rare river ecosystems. There are 86 Protected Areas within
a 5 km radius from the sites. At least three quarries are inside protected areas.
In the considered buffer area of the quarries, 8% of the species are classified
by the IUCN Red list as Critically Endangered, Endangered or Vulnerable. The
STARt value for this area is below the global median, so it is considered
irrelevant. The main threats to the local biodiversity are: human intrusion,
Gloioxanthomyces
vitellinus
Directors’ Report 2024 Cementir Holding NV | 243
pollution from agriculture and forestry, water regulation, urban development,
renewable energy production, transportation, and invasive species.
CCB
In western Belgium, three limestone quarries are situated in the Wallonia
region, near Tournai and the French border. The quarries lie within the Haine
River basin, characterized by ponds, marshes, and grasslands, important for
wintering and migrating waterfowl, including the Pluvialis squatarola and
Alcedo atthis. Although six KBAs are within the Area of Influence, none of the
quarries fall within these zones. Within a 5 km radius, there are four protected
areas, including the Natura 2000 site "Bassin de l'Escaut en amont de
Tournai." The primary threats to biodiversity are industrial expansion and the
conversion of wet meadows into agricultural land. The area has a significant
biodiversity value, but with just 6% of threatened species as classified by the
IUCN Red List it does not have a significant STARt value.
AAL
In the southern part of the Limfjord, northern Jutland, Denmark, lies a chalk
quarry adjacent to freshwater lakes, meadows, and agricultural lands. The
area includes raised bogs, some converted to arable land and others
preserved. Although the site is not within any Key Biodiversity Area (KBA), ten
KBAs are within considered buffer area, including Lille Vildemose, Denmark's
largest raised bog. This region, with mature mixed forests of Fagus and
Quercus, provides crucial habitats for migratory birds like the Falco
vespertinus and marine species such as the Balenoptera physalus and
Squatina squatina. Within a 5 km buffer zone, there are two nationally
designated terrestrial protected areas. The site holds significant biodiversity
value with 9% of species classified as threatened by the IUCN Red List, but
its calculated STARt value is not significant. Primary threats include peat
extraction, invasive species, and transportation corridors.
Balaenoptera physalus
Falco vespertinus
K&D
Two sand and gravel quarries are located in southern Jutland, Denmark. The
nearest KBA, "Tinglev Mose og Ulvemose," is 12.12 km away, designated as
a KBA due to breeding species like Circus aeruginosus and Circus pygargus.
The region, characterized by canals, lakes, rivers, and fertile soils, is
predominantly agricultural, particularly cattle grazing. Quercus scrub and
Fagus forest are crucial to the ecosystem. Within a 5 km radius, there are five
protected areas designated by the Danish government. The primary threats to
biodiversity are agricultural and aquacultural practices, invasive species, and
recreational activities. In the area, 8.5% of the species are classified as
threatened according to the IUCN Red List but the STARt value resulted to be
not significant.
SWC
In the North Sinai Governorate, there are two limestone quarries considered
as one due to their proximity. This site is 10 km from the El-Maghara protected
Directors’ Report 2024 Cementir Holding NV | 244
area and 18 km from the Gebel Maghara KBA, which overlaps with the
protected area by 70%. The zone receives 50-100 mm of rain annually,
supporting diverse vegetation. The main threats to biodiversity for this area
are overgrazing, ploughing, and extensive quarrying, which alter the
landscape and affect habitats. The site could also impact Lake Bardawil and
Zaranik KBA, located 46 km away. The overall Biodiversity Significance Score
for the site is Medium due to its proximity to both a PA and KBA. However, its
STAR Biodiversity Significance is low due to a low presence of endangered
species. The STARt value resulted to be low despite the fact that 8.9% of the
species are classified as threatened according to the IUCN Red List.
Ipoh
In Ipoh, Malaysia, there are two limestone quarries located in the eastern part
of the city. These quarries are inside or at the limit of the Central Titiwangsa
Range KBA, which is protected by several reserves covering around 45% of
it. The area is characterized by tropical rainforest habitat, making it a
biodiversity hotspot. The main threats include infrastructure development,
highway construction, tourism, pollution, soil erosion, exotic species,
conversion to oil palm and rubber, agriculture, pesticide pollution, logging,
rising temperatures, and lake sedimentation. The quarries are close to 12
protected areas within a 25 km radius. This site has a high biodiversity
significance score due to its proximity to the KBA and the presence of a high
number of threatened species, accounting for 265 out of 2,511 species. The
STARt value resulted to be high and 11% of the species are classified as
threatened by the IUCN Red List.
Leptobrachella kecil
Anqing
Near the city of Anqing in Anhui province, China, there is a limestone quarry.
This site is within the area of influence of two KBAs: the Anqing Wetlands (9
km away) and the Shengjin Hu Nature Reserve (27 km away), the latter being
a protected Ramsar site. The area is characterized by wetlands and lakes,
mainly due to the Yangtze River flood zones. The main threats are urban
expansion and industrial development, leading to the loss of wetland areas.
The overall Biodiversity Significance Score for this site is Medium, with a low
potential impact on protected areas and a medium impact on KBAs due to
proximity. The STAR Biodiversity Significance is low due to a low presence of
endangered species. The STARt value resulted to be not relevant and 6% of
the species are classified as threatened according to the IUCN Red List.
Ciconia boyciana
In addition to the assessment performed using iBAT, starting from 2025 Cementir will perform an in-person,
site-specific assessment to deepen its understanding of the biodiversity-related aspects entailed by its
activities. Furthermore, the future assessment will aim at refining the buffer zone radius chosen for the
iBAT analysis, based on site-specific first-hand biodiversity information.
Considering the type of extraction activities carried out, the Group has identified a number of generic
potential negative impacts on biodiversity.
Directors’ Report 2024 Cementir Holding NV | 245
Quarry type
Activity
Possible impact on biodiversity
All quarry types
Clearing
vegetation and
removing topsoil
to access mineral
deposits
Habitat Loss: Removal of trees, shrubs, and ground vegetation
destroys habitats for birds, mammals, insects, and other species.
Soil Disturbance: Strips away nutrient-rich topsoil, reducing the ability
of native plants to regenerate.
Fragmentation: Divides ecosystems, creating barriers for species
movement and genetic exchange.
All quarry types
Use of heavy
machinery (e.g.,
excavators,
loaders) to extract
and remove
minerals
Disruption of Soil Layers: Disturbs soil ecosystems, killing microbes,
insects, and plant roots vital to the food chain.
Loss of Microhabitats: Destroys small niches, such as rock crevices
or underground spaces, essential for certain species like lizards or
small mammals.
All quarry types
Hauling excavated
minerals by using
trucks and
conveyors
Dust Generation: Settles on nearby vegetation, reducing
photosynthesis and plant health, which cascades to herbivores and
pollinators.
Noise Pollution: Disrupts animal communication and behaviour,
particularly for species sensitive to sound (e.g., birds, bats).
Habitat Disturbance: Continuous movement creates barriers for small
animals crossing roads or tracks.
All quarries of the
following types:
Limestone
Granite
Quartzite
Marl
Use of explosives
to fragment rocks
Noise and Vibration: Disturbs wildlife, causing stress or forcing
species to flee the area.
Habitat Loss: Animals, particularly burrowing species, may be harmed
directly by explosions or the collapse of their habitats.
Displacement: Repeated blasting makes habitats inhospitable,
pushing species to less suitable areas.
Kudsk & Dahl
CCB
Dewatering of pits
to prevent flooding
and manage
water use
Lowered Water Tables: Drains nearby wetlands or aquatic habitats,
affecting amphibians, fish, and plants reliant on consistent water levels.
Water Quality Issues: Runoff containing sediment or pollutants can
degrade nearby water bodies, impacting aquatic species.
Aalborg Portland
Kudsk & Dahl
Operating below
the Water Table
Aquatic Ecosystems Habitat Destruction: Dredging disrupts or
completely removes habitats for aquatic species like fish, molluscs,
crustaceans, and aquatic plants. Benthic (bottom-dwelling) organisms
are especially vulnerable, as their habitat is directly removed or altered.
Turbidity Increase: stirring up sediments reduces water clarity, which
can:
- block sunlight, impacting photosynthesis for aquatic plants
and algae;
- smother eggs, larvae, and small organisms that rely on clear
water.
Directors’ Report 2024 Cementir Holding NV | 246
In addition to the table above, which outlines the potential impacts of quarries based on their type of activity,
the following paragraph will delve into the specific impacts, risks, and opportunities identified as relevant
through the Group's double materiality assessment, in compliance with the ESRS.
Impact, risk and opportunity management
ESRS 2 IRO-1 Description of processes to identify and assess material biodiversity and ecosystem-
related impacts, risks and opportunities
For information regarding the process to identify and assess material biodiversity and ecosystem-related
impacts, risks and opportunities, please refer to Chapter “General Information”, sections “Impact materiality
assessment” and “Financial materiality: risks and opportunities assessment”.
The following table lists E4 “Biodiversity and ecosystems”-related impacts, risks and opportunities (IROs)
identified and assessed as material as a result of Cementir’s double materiality assessment process,
including a brief description.
In addition, it also shows:
- whether impacts are positive or negative;
- the time horizon: short term (ST), medium term (MT), long term (LT);
- the scope of the value chain: upstream (U), own operations (OO), downstream (D).
Sub-topic
Material impact,
risk or
opportunity
Description
Time
horizon
Scope of
the value
chain
E4 - Biodiversity and ecosystems
Direct impact
drivers of
biodiversity loss
Negative impact
Quarrying activities can lead to habitat
destruction, biodiversity loss, and
environmental pollution. The lack of an
effective environmental management plan
can result in increased compliance costs
and legal liabilities.
LT
U, OO
Risk
Accessing ecologically sensitive areas
and quarrying operations can lead to
regulatory barriers, financial losses, and
increased extraction costs due to
ecosystem protection efforts.
ST
U, OO
Impacts on the
extent and
condition of
ecosystems
Negative impact
Quarrying operations involve the removal
of vegetation and topsoil, as well as the
blasting and crushing of stone deposits.
ST
U, OO
Directors’ Report 2024 Cementir Holding NV | 247
As a goal for the coming year, the Group will utilize scenario analysis to further the identification and
assessment of biodiversity and ecosystem-related risks and opportunities across short, medium, and long-
term horizons. This approach will help ensure that the Group's business strategy remains resilient and
adaptable to emerging trends and challenges.
Regarding the current status of the assessments conducted, it is noted that Cementir Group has internally
evaluated all of its quarry locations by considering Key Biodiversity Areas, utilizing publicly available
database systems.
Current assessments determine whether a quarry location falls within a Key Biodiversity Area or is adjacent
to one.
The Group is committed to implementing a Biodiversity Management Plan at all sites sensitive to
biodiversity by 2030 to minimize potential impacts.
In a number of quarries the Company is already implementing mitigation measures such as:
• Environmental Impact Assessments (EIA), monitoring activities, and ensuring compliance with all
environmental permits at quarry sites;
• Progressive quarry rehabilitation practices to restore biodiversity post-extraction;
• Consultations with local communities and organizations to ensure that mitigation measures
address local priorities.
E4-2 – Policies related to biodiversity and ecosystems
The Group Environmental Policy, outlined in the chapter "E1 Climate Change," section "Impact, Risk, and
Opportunity Management," also provides guidelines on land use and biodiversity.
Specifically, the policy focuses on the following two areas of action:
1. Identification and Mitigation of Ecosystem Impacts
⋅ The policy requires to identify and assess the potential impacts of operations on
ecosystems, and implementing mitigation actions to minimize any adverse effects.
⋅ The policy also requires the adoption of mitigation actions to minimize negative effects,
with an emphasis on preventive measures rather than corrective actions.
2. Biodiversity Management Plans:
⋅ For areas of high biodiversity value, Cementir develops and implements biodiversity
management and monitoring plans to protect habitats for both plant and animal species;
⋅ Rehabilitation and restoration plans are in place for all quarry operations to ensure the
protection of biodiversity and ecosystem functionality post-extraction.
Overall, Cementir pays the utmost attention to ensure that corporate activities do not interfere with the
biodiversity characteristic of the contexts in which the Company operates.
The analysis conducted revealed that the Company’s production activities pose indeed a potential relevant
negative impact on natural and animal biodiversity in the areas where production facilities are located.
For such reason, the Group is committed to ensuring that its corporate activities do not disrupt the
biodiversity and ecosystem characteristics of the regions where it operates.
Acknowledging the potential for significant negative impacts, the company prioritizes biodiversity and
ecosystems at the core of its sustainability agenda.
Directors’ Report 2024 Cementir Holding NV | 248
Specifically, Cementir might add site-specific KPIs to monitor progress in biodiversity conservation,
restoration, and stakeholder engagement.
Annual updates on these metrics will be incorporated into Company’s reports to maintain transparency and
accountability.
The Group has also issued the Biodiversity and Rehabilitation Group Guideline, which has been
approved by the Group Chief Operating Officer, with the following objectives:
● To provide practical guidance for progressively implementing site-level rehabilitation practices and
biodiversity management through the development of focused rehabilitation and management
plans.
● To develop and implement biodiversity and rehabilitation plans at quarry and pit sites.
● To standardize and improve the quarry rehabilitation and biodiversity management process across
the Group by planning, implementing, and sharing best practices at both existing and new sites.
● To ensure a common understanding and consistent reporting of KPIs on biodiversity and quarry
rehabilitation, in line with cement and aggregate industry standards, thereby monitoring the
performance of our commitments and supporting transparent communication with stakeholders.
● To leave sites safe and stable for future land use, which may or may not be related to biodiversity
values.
● To identify biodiversity-sensitive sites and develop comprehensive life-cycle plans and strategies
to avoid or minimize impacts, and even restore or enhance biodiversity value.
● To ensure compliance with all applicable laws and regulations, meeting minimum requirements for
rehabilitation and biodiversity management at all extraction sites.
● To assess long-term impacts, risks, liabilities, and opportunities, including post-closure land use,
and ensuring realistic financial provisions for the entire quarry lifetime, periodically updated.
The Guideline applies to all mineral extraction sites and activities of the operating companies within the
Cementir parent company and its fully consolidated subsidiaries.
It aligns with industry standards and guidance, including the GCCA Sustainability Guidelines for Quarry
Rehabilitation and Biodiversity Management and the CEMBUREAU Biodiversity Roadmap.
The Guideline also explores opportunities through Net Impact Assessment and offsets, with such
evaluations planned to be carried out as part of the updated enterprise risk management process scheduled
for 2025.
In order to deliver progress towards its objectives stated in its Biodiversity Guideline, the Group aims to
deliver actions with a focus on the following key areas:
● Implementing a Rehabilitation Plan (RP) at all extraction sites, prioritizing legislative requirements
and incorporating environmental (including biodiversity) and safety/site stability considerations.
● Developing a Biodiversity Management Plan (BMP) for sites sensitive to biodiversity, with the
BMP complementing the RP. Some sites will require a standard RP with a biodiversity section,
while others will need a comprehensive BMP.
● Following the mitigation hierarchy where possible and promoting opportunities to enhance
biodiversity within the BMP.
● Enhancing stakeholder involvement throughout all stages of the RP and BMP, ensuring long-term
sustainability through appropriate partnerships, resources, and engagement.
● Integrating a monitoring plan into the RP and BMP to track progress, measure performance, and
implement corrective actions based on monitoring results, ensuring continuous improvement.
Directors’ Report 2024 Cementir Holding NV | 249
The Group Environmental Policy and the Biodiversity and Rehabilitation Group Guideline incorporate
the identification and management of impacts and risks related to biodiversity and ecosystems, specifically:
● Recognizing that quarrying activities and production processes may lead to habitat loss, water
resource impacts, and species disturbance.
● Addressing physical risks such as land degradation, as well as transition risks, including the
introduction of stricter biodiversity regulations.
● Implementing the mitigation hierarchy to avoid unacceptable impacts, minimize any potential
impacts, and ultimately mitigate residual impacts on local biodiversity through rehabilitation and
compensation.
With regard to the adoption of land use policies, it is specified that the Group does not participate in
agricultural activities.
However, Cementir land use practices are guided by sustainability principles to minimize environmental
impact. These practices include:
● Rehabilitation and Restoration: Carrying out progressive quarry rehabilitation to restore natural
habitats and promote long-term ecosystem health.
● Land Stewardship: Ensuring that post-quarry land use supports ecological needs, such as
through reforestation efforts.
E4-3 – Actions and resources related to biodiversity and ecosystems
Currently, the Group is implementing Biodiversity Management Plans at key locations of interest, with a
target to expand these plans to all sites of high biodiversity value.
The Biodiversity Management Plan addresses:
● Current Status: Parts of the reserve face challenges such as overgrowth due to insufficient
grazing and management. Vegetation like birch, blackthorn, brambles, and wild rose is spreading,
posing a threat to biodiversity.
● Management Actions: Efforts are focused on clearing overgrown vegetation, maintaining or
introducing grazing, restoring open pastureland, and preserving biodiversity.
Specific measures include:
⋅ Establishing grazing through fencing and collaboration with livestock owners.
⋅ Gradual removal of young birch and invasive shrubs.
⋅ Managing newly created amphibian ponds to support wildlife.
⋅ Addressing invasive plant species such as Armenian blackberry and sycamore maple.
● Future Actions: Plans for the period 2028-2032 will be shaped by the success of current
measures. Expected tasks include further vegetation clearance, improvements to grazing
practices, and habitat enhancement for endangered species such as Gentianella and thyme-
associated butterflies.
● Monitoring and Review: Progress will be monitored, with updates and revisions planned every
five years. Measures will be adjusted based on ecological developments and the effectiveness of
the strategies implemented.
Progressive Rehabilitation Projects: Group continues to implement rehabilitation projects
progressively in the quarry areas parallel to its extraction activities.
Stakeholder Engagement: Conducted consultations with local communities and conservation
organizations to align restoration efforts with local biodiversity priorities.
Directors’ Report 2024 Cementir Holding NV | 250
Quarrying, the starting point of the Group’s production cycle, goes beyond simple extraction; it reflects the
Company’s commitment to aligning its operations with nature.
Understanding the significant environmental impact linked to quarrying and raw material processing, the
company has embraced a proactive strategy that aligns with contemporary sustainability principles and
practices.
The Group’s efforts are focused not only on reducing its ecological footprint but also on enhancing
biodiversity and restoring natural habitats.
In this context, the concept of the mitigation hierarchy is introduced, which is central to shaping a
structured approach to biodiversity management, aiming to avoid unacceptable impacts, minimize those
that occur, and mitigate residual effects on local biodiversity through rehabilitation, compensation, or offset
projects.
The hierarchy helps guide development projects towards achieving no net loss, or ideally, a net gain in
biodiversity.
Rehabilitation may serve various purposes, but in some cases, it can significantly enhance biodiversity,
thus mitigating any residual impacts. Where gains are limited, residual impacts can be mitigated through
offsets or compensation measures.
The mitigation hierarchy, as defined in the Group’s guidelines, includes:
● Avoidance: Measures taken to avoid impacts from the start (including direct, indirect, and
cumulative impacts), such as careful placement of infrastructure to entirely avoid impacts on certain
biodiversity components.
● Minimization: Measures implemented to reduce the duration, intensity, and/or extent of
unavoidable impacts, as much as practically possible.
● Rehabilitation/Restoration: Actions aimed at rehabilitating or restoring ecosystems degraded by
unavoidable impacts.
● Offset: Measures designed to compensate for significant residual, adverse impacts that cannot be
avoided, minimized, or restored, ensuring no net loss (NNL) or even a net gain in biodiversity.
Offsets may involve positive management interventions like restoring degraded habitats, halting
degradation, or protecting areas facing imminent biodiversity loss.
Currently, the company applies avoidance, minimization, and rehabilitation/restoration actions at its
quarries. Offset actions will require standardization and the development of performance indicators for
monitoring, which the Group plans to study by 2025.
At the moment, the Group follows:
● Strict adherence to compliance standards, ensuring practices meet or exceed regulatory
requirements.
● Efficient and optimized use of mineral resources, maximizing value while minimizing waste.
● Sensitivity to environmental and ecological issues, prioritizing the preservation of natural
habitats and biodiversity.
● Integration of alternative materials into processes to reduce reliance on natural resources and
support conservation and circularity.
● Rigorous monitoring and management of the Group's reserves to ensure sustainable use and
replenishment.
● Ongoing dialogue with stakeholders, promoting transparency and collaboration in sustainability
efforts.
Directors’ Report 2024 Cementir Holding NV | 251
A significant portion of raw materials is sourced from Cementir’s own quarries, where the Group follows
responsible and sustainable mining practices. The close proximity of these vital resources to the
Company’s production facilities is essential for business continuity, making their protection and efficient
management a key strategic priority.
Through the use of digital technologies, Cementir has improved its quarry operations, enhanced efficiency
and optimized resource use.
This strategic approach ensures that the materials extracted meet both economic viability and the
Company’s quality and quantity standards, all while minimizing the overall land footprint.
The financial resources allocated to the Biodiversity Management Plans are subject to periodic monitoring
and include both operational expenses (OpEx) for the daily management of activities and capital
expenditures (CapEx) for the management and maintenance of assets. These funds are aligned with the
Group's 2030 roadmap and are integrated into the organization's routine management activities. In 2025
the Group intends to complete an on-site, in person, impact assessment of at least 10 of its quarries, for
which 50,000 euros have been allocated in its budget.
In 2024, the Group increased efforts to replace natural resources with alternative raw materials.
For example, in Turkey:
● Izmir Plant: Utilized 540,000 tons of alternative raw materials and by-products/wastes from various
sources, reducing the consumption of natural resources and environmental impact.
● Trakya Plant: Used 125,000 tons of alternative raw materials (65,000 tons of fly ash, 60,000 tons
of bottom ash), marking a 42% increase in usage compared to 2023.
● Elazig Plant: Consumed 25,000 tons of fly ash and 25,000 tons of bottom ash, significantly
contributing to land and reserve conservation. This represented a 213% increase in usage
compared to 2023.
● Kars Plant: Used 2,500 tons of aggregates bypass dust as a clay substitute for aluminum sourcing,
helping preserve clay reserves and land.
Cementir adopts a proactive approach of 'avoid, minimize, and mitigate' to address any land impacts arising
from quarrying activities. Complying to all relevant land and environmental laws associated with quarry
operations is fundamental for Cementir. The Group not only meets local requirements but also strives to
implement international good practices for further enhancements. The strategy includes maximising use
from authorized areas and reducing land disturbance, supported by comprehensive mining plans aiming at
consistent and optimized quality of raw mixes.
Directors’ Report 2024 Cementir Holding NV | 252
The following are the main initiatives supported and implemented by the Group:
Kudsk & Dahl
Kudsk & Dahl, a Cementir’s subsidiary producing aggregates in Denmark, is deeply committed to
enhancing biodiversity and rehabilitation at its two quarries in Nr. Hostrup and Dybvad.
In 2023, Kudsk & Dahl released a Roadmap specifically addressing biodiversity and rehabilitation activities
for its quarries, positioning itself as one of the first companies in Denmark’s extractive industry to do so.
In 2024, the focus on biodiversity and rehabilitation continued, with ongoing efforts aimed at promoting
biodiversity. Additionally, Kudsk & Dahl has transitioned several of its production machines in the gravel
pits from diesel to electric, substantially reducing the environmental impact in terms of CO2 emissions,
noise, and improving the working conditions for employees.
Moreover, in 2024 Kudsk & Dahl welcomed 3rd and 4th grade students from Grænseegnens Friskole to
their gravel pit, where they were joined by a local bird expert from the Danish Ornithological Society.
The expert provided the students with insights into the local birdlife. During the visit, the students had the
opportunity to build birdhouses, plant seeds, and create temporary habitats for various wildlife in the gravel
pit.
This hands-on experience not only deepened their understanding of biodiversity but also supported
conservation efforts in the area. Moving forward, Kudsk & Dahl will continue to prioritize such initiatives,
ensuring their ongoing commitment to environmental sustainability and the well-being of their employees
CCB
CCB, with its depleted quarry in Gaurain, active quarry in Clypot and future
quarry in Barry is continuously working on initiatives for enhancing biodiversity.
Continuing from its involvement in the 'Life in Quarries Project', CCB is
launching new initiatives for this purpose. CCB’s commitment extends beyond
the completion of the project, with a focus on maintaining and amplifying
biodiversity actions. Upon the finalization of the project, all the commitments
listed in the individual charter are framed legally dispensation for protected
species granted by Belgian authorities.
Each year starting from 2022, a summary annual report has been drawn up in
order to list the actions carried out and publish the monitoring indicators. Since 2022, the Group has been
in the post-life phase which is a long-term commitment to maintain in-life actions for a period of 15 years.
Beyond any legal framework and requirement, and in line with this post-Life approach, another initiative for
our future quarry in Barry, falls under the focus on biodiversity enhancement. The peripheral areas of quarry
area have been identified as ideal for creating permanent ponds. These ponds can support many species
of plants, amphibians, and dragonflies.
Some surface water management areas have been designed to create buffer zones that accumulate water
and allow it to overflow back into the watercourse. This approach also helps slow precipitation runoff during
flooding events.
During 2023, Group’s initiatives started to bear fruits, with the accumulation of rainwater favoured by a clay-
based substrate and the first aquatic plants starting to colonize the environment.
At the end of 2024, a wall specifically designed for sand martins was constructed at the Clypot quarry,
providing a safe and suitable environment for the endangered species to nest peacefully. Since the
inception of the Life project, the quarry has made continuous efforts to protect these birds by creating a
limestone sand embankment from overburden materials. Sand martins, which typically nest in
embankments or sandy cliffs, face significant challenges as their nests become more fragile. Torrential
Directors’ Report 2024 Cementir Holding NV | 253
rains often destabilize these natural habitats, leading to embankment collapses that threaten their
reproduction.
To address this, a detailed analysis was conducted to reinforce the embankment sustainably, ensuring it
remains a critical component in the preservation of the species.
The project was made possible through close collaboration with the Parc Naturel Des Plaines de L’Escaut.
The newly built "sand martin wall," which serves as a sanctuary for these birds, can now accommodate up
to a hundred pairs, offering a secure environment for their reproduction. Additionally, a permanent pond
has been established at the base of the embankment to mimic the ideal conditions of their natural habitat.
Gaurain Quarry Water Valorisation
Following the signing of an agreement with Société Wallonie des Eaux (SWDE) in 2022 for the supply of
drinking water through pipelines and the protection of water resources intended for human consumption
with a target of pumping 1,7 Mm³/y from the old quarry of Gaurain to SWDE to reach the drinkable water
net (Transhennuyère), works in the quarry and on the pipe between the quarry and SWDE (Société
Wallonnie des Eaux) station was initiated in 2023.
The project was completed in the fourth quarter of 2024, and pumping has begun for valorization, serving
as an example of circularity.
Rehabilitation Of Dismantled Quarries and Restoration Of Biodiversity in Aalborg Portland
Aalborg Portland spans 1,200 hectares, with 188 hectares dedicated to cement production. The remaining
1,012 hectares consist of lakes, woods, meadows, brackish marshes, uncultivated land, and agricultural
areas.
In 2023, a comprehensive holistic plan was developed for the limestone quarry area, outlining the potential
to transform the site into a unique recreational area once mining activities are completed. In 2024, local
residents and stakeholders were invited to provide input on how the area could be used for public activities,
including hiking and biking trails, swimming and sailing zones, campgrounds, and more.
The core idea of the holistic plan is to create a scenic space with steep limestone slopes, gentle green hills,
and opportunities for outdoor activities, while also preserving the area's rare and unique nature and wildlife.
Construction of embankments and terraces has already started in specific areas of the quarry, while
excavation continues safely on the opposite side.
Metrics and targets
E4-4 – Targets related to biodiversity and ecosystems
Although the company has not yet established measurable, results-driven objectives specifically focused
on biodiversity and ecosystems, it is committed to incorporating such goals into its sustainability framework.
To address this gap, Cementir is launching a dedicated biodiversity and ecosystems project, supported by
external expert services.
The project will focus on the following goals:
• Perform a site-specific in-person impact assessment: Deepen the biodiversity and ecosystem
assessment performed for this report using the iBAT tool by gathering and elaborating evidence through
in-person site-specific evaluation.
Directors’ Report 2024 Cementir Holding NV | 254
• Develop a Group-Wide Strategy: Create a standardized framework to manage biodiversity and
ecosystems across all operations, setting clear objectives and targets.
• Establish Metrics and Standards: Define key performance indicators (KPIs) and adopt
internationally recognized standards for monitoring and reporting biodiversity.
• Quantify Consolidated Impacts: Aggregate and analyze biodiversity data from all operational
sites to evaluate the overall impact of the Group.
• Align with Global Frameworks: Align with the EU Biodiversity Strategy for 2030, the Kunming-
Montreal Global Biodiversity Framework, and other relevant policies.
As of today, the following commitments and target can be referred to:
Cementir Holding Commitments and targets
● Define and implement Rehabilitation Plans for all active sites;
● The Group will have biodiversity enhancement recommendations to be integrated as part of
Environmental Impact Assessments or Rehabilitation Plans for any new extraction site;
● The Company aims at assessing all extraction sites and identify the sites with high biodiversity
value;
● Define and implement a Biodiversity Management Plan for all sites with high biodiversity value.
Rehabilitation plan in all active sites by 2025: 100%.
● Biodiversity value assessment of active sites by 2030: 100%.
● Biodiversity value assessment of all sites and Biodiversity Management Plan for high biodiversity
sites by 2030: 100%.
The targets included in this section are not yet linked to biodiversity metrics. However, the Cementir Group
aims to define specific targets based on the in-depth, on-site biodiversity and ecosystem assessment
planned for 2025.
Cementir Group’s long-term view and targets to secure mineral deposits contribute to the development of
more accurate and sustainable strategies, ensuring a balanced and responsible approach to resource
extraction as well as allowing to follow the mitigation hierarchy especially for avoidance.
The Company is committed to the exploration and adoption of alternative resources, a move that
significantly contributes to the reduction of CO
2
emissions, diminishes reliance on natural resources, and
conserves existing reserves.
This approach not only mitigates the need for new extraction sites but also underscores Company’s
dedication to innovative and sustainable resource management.
E4-5 – Impact metrics related to biodiversity and ecosystems change
As outlined in ESRS E4.16 i., ii., iii., the analysis performed aimed at assessing the current ecological
status of the different areas where Cementir Group’s sites are located.
When deciding the parameters of our analysis we’ve adopted the most prudential of approaches, based on
50 km radius of a buffer zone.
As a result, as shown in the table below, the majority of sites appear to be highly significant for biodiversity
considering such prudential buffer zone.
Directors’ Report 2024 Cementir Holding NV | 255
In coming years Cementir is launching a specific biodiversity project. As mentioned in E4.4, the aim of this
project is to assess biodiversity and ecosystems considering impact, risk and dependencies at local level
based to define site specific buffer zones and metrics.
The metrics in the table below were chosen based on the relevant negative impacts that can be expected
in the considered buffer zone on Biodiversity and Ecosystem topic - Direct impact drivers of biodiversity
loss, Impacts on the extent and condition of ecosystems - which refer to habitat destruction, as well as the
removal of vegetation and topsoil, activities carried out by the company, as possible causes of biodiversity
loss.
The following table summarises the main characteristics and the chosen metrics, by site and its related
cluster. In particular the sites have been classified using the following parameters:
● Site surface (hectares): the surface of the quarry is a metric of land use change and it is used as
a proxy metric for potential negative impacts on nature;
● Overall Biodiversity Significance is a composite score that aggregates three biodiversity
significance metrics (proximity to Protected Areas and KBAs, and STAR score), thus providing with
a synthetic high-level indicator, reflecting the presence and significance of PAs and KBAs - whose
list might be updated over time - and the summary of the STAR metrics (explained in detail in
paragraph 16). The significance is ranked as Low, Medium or High. The results in the table below
are reported from the highest to the lowest Biodiversity Significance value;
● Number of threatened species in the areas where the sites are located, calculated as the sum of
critically endangered (CR), endangered (EN) or vulnerable (VU) species over the total number of
species classified on the IUCN Red List that potentially occur within 50 km of each site. This is not
a proxy, such as land use, but a direct metric of the health of the local ecosystem.
● STARt score is a composite metric of the conservation status of local species. It is not a proxy,
such as land use, but a direct metric of biodiversity. With a scale ranging from “none” to “high”,
higher STARt scores identify areas with higher numbers of threatened species, and/or that cover
a higher proportion of each threatened species’ range, whereas sites with a STARt score of “none”
do not exceed the threshold established for threatened species
18
.
18
According to the assessment performed through iBAT, a site is considered sensitive according to the STAR Threat Sbatement
metric if its STARt score exceeds the global median value of 0.01.
Directors’ Report 2024 Cementir Holding NV | 256
Site name
Cluster name
Site surface
(ha)
Overall Biodiversity
significance
Number of
threatened
species
19
/Total
STARt score
Ipoh limestone 2
(CasaBayan)
Ipoh, Malaysia
2.7
High
265 / 2510
High
Ipoh limestone 1
12.1
High
265 / 2511
High
Torbali limestone 2
Torbali, Turkey
6.2
High
109 / 1146
High
Torbali limestone 1
30.6
High
109 / 1146
High
SYD granite Oved
Sweden
17.0
High
62 / 849
None
CCB limestone Barry
Belgium
9.8
High
53 / 896
None
CCB limestone Antoing
26.5
High
54 / 895
None
Izmir limestone 3
Izmir, Turkey
5.4
High
96 / 980
None
Izmir limestone 2
16.8
High
96 / 980
None
SYD quartzite
Hardeberga
Sweden
58.0
High
72 / 915
None
K&D sand gravel 2
Denmark (sand
and gravel)
48.0
High
83 / 973
None
K&D sand gravel 1
41.6
High
83 / 973
None
AAL chalk
Denmark
(chalk)
237.0
High
76 / 837
None
SYD granite Stenberget
Sweden
21.0
High
66 / 880
None
SYD granite Dalby
110.0
High
69 / 903
None
izmir limestone 4
Izmir, Turkey
6.3
High
96 / 980
None
Izmir limestone 1
59.7
High
96 / 980
None
SYD granite NorraRorum
Sweden
31.0
High
69 / 903
None
Izmir clay
Izmir, Turkey
14.0
High
98 / 999
None
Mugla limestone 2
Mugla, Turkey
5.6
High
104 / 1010
High
Mugla limestone 1
9.2
Medium
101 / 1003
Low
Kars pumice
Kars, Turkey
3.6
Medium
47 / 554
Medium
Trakya clay 2
Trakya, Turkey
0.1
Medium
57 / 1011
None
Trakya clay 1
22.3
Medium
57 / 1010
None
Trakya limestone
44.3
Medium
57 / 1010
None
Anqing limestone
Anqing, China
14.4
Medium
46 / 739
None
SWC limestone 2
Egypt
22.6
Medium
61 / 685
Low
SWC limestone 1
51.3
Medium
60 / 682
Low
CCB limestone Clypot
Belgium
88.4
Medium
55 / 890
None
Elazig marl 2
Elazig, Turkey
2.1
Medium
27 / 456
Low
Elazig marl 1
15.8
Medium
27 / 456
Low
19
Including Critically Endangered, Endangered, and Vulnerable species, as classified by the IUCN Red List.
Directors’ Report 2024 Cementir Holding NV | 257
Elazig pumice
6.8
Medium
28 / 461
None
Elazig limestone 2
1.1
Medium
27 / 454
None
Elazig limestone 1
28.0
Medium
28 / 464
None
Elazig limestone 3
0.2
Medium
26 / 455
None
Kars clay 2
Kars, Turkey
0.7
Low
49 / 549
None
Kars clay 1
7.2
Low
49 / 549
None
Kars limestone
33.4
Low
49 / 548
None
E5 RESOURCE USE AND CIRCULAR ECONOMY
Impact, risk and opportunity management
ESRS 2 IRO-1 – Description of the processes to identify and assess material resource use and
circular economy-related impacts, risks and opportunities
For information regarding the process to identify and assess material resource use and circular economy-
related impacts, risks and opportunities, please refer to Chapter “General Information”, sections “Impact
materiality assessment” and “Financial materiality: risks and opportunities assessment”.
E5-1 Policies related to resource use and circular economy
In order to manage its relevant impacts, risks and opportunities related to resource use and circular
economy, Cementir has an Environmental Policy in place (please, refer to the General Information section
to deep dive), which applies to all operational activities within the Cementir Group.
Each operating company is responsible for implementing the directives and guidelines of the policy,
integrating them as a vital part of its Environmental Management System.
The Group aims to increase the use of alternative fuels, including low-carbon fuels and biomass, while
adopting a co-processing and circular approach to using waste as fuel.
To minimize the use of non-renewable resources, the Group is committed to using decarbonized and
alternative raw materials. This includes a progressive reduction in the use of virgin resources and a
corresponding increase in the use of secondary resources, such as concrete-based demolition waste, to
replace natural aggregates in concrete production.
In terms of waste management, the Group focuses on treatment plants that convert waste back into fuel.
Efforts are also made to minimize the production of hazardous waste and to enhance recycling, recovery,
and reuse through a circular approach.
Finally, the Group is committed to improving environmental integration between the cement and waste
treatment sectors, further supporting the transition to renewable and alternative resources.
E5-2 Actions and resources related to resource use and circular economy
The Group is committed to adopting a co-processing and circular approach both for the management of
wastewater discharges and for the waste produced.
Regarding the activities of recovery and reuse of wastewater, please refer to chapter “E3 Water and marine
resources”.
Directors’ Report 2024 Cementir Holding NV | 258
Co-processing of waste in cement kilns is an established and environmentally effective option and a circular
solution for end-of-life materials. It not only recovers the energy content of the waste but also recycles its
mineral content into high-value products. Co-processing results in the reduction of raw materials and fossil
fuel consumption mitigating the effect of green-house gases. It also offers an effective solution to the waste
management (e.g., storage and disposal).
For example, co-processing of waste allows for prevention of plastic pollution in the environment and
avoiding options not environmentally sustainable such as disposal in landfills.
Waste is not only a source of recyclable materials, but also alternative fuels with a high calorific value. The
Group is therefore committed to this dual-purpose use.
From a business perspective, the Group was one of the leading industrial players to capitalise on these
opportunities and since 2009 has been operating in the renewable energy, urban and industrial waste
management and processing sectors. These operations are conducted through Recydia, which owns the
Sureko businesses in Türkiye.
Through its modern facility located to the west of the city of Izmir, Sureko is involved in the management
of industrial and hazardous waste and the production of alternative fuels that are used at the Izmir plant
(further details in the box ‘An integrated waste management solution’ in section “E5-5 Resource outflows”).
Company’s plants use the latest biological technologies to produce alternative fuels and thermal energy,
minimising landfill waste and contributing to the reduction of greenhouse gas emissions.
Storage of urban waste releases methane, a greenhouse gas with a polluting effect 21 times greater than
that of carbon dioxide. Therefore, using urban waste as an alternative fuel in cement plants is fundamentally
important because it contributes to the sustainable disposal of waste and reducing the negative effects of
greenhouse gases. Moreover, unlike the process in waste-to-energy plants, use of waste as an alternative
fuel in cement plants does not produce residues, as the ash derived from combustion is recycled in cement
production.
Deepening the use of waste as an alternative fuel reveals how the Group applies circular economy
principles. Behind the use of alternative fuels derived from industrial and solid urban wastes, there are
major environmental advantages, both because it reduces the use of fossil fuels and because it offers a
solution to the problems of storage and disposal.
This approach allows resources to remain in use for longer periods, extracting maximum value from them.
In addition, reuse and recycling contribute to environmental footprint reduction by helping to improve
sustainability within the cement value chain.
The financial resources allocated to waste monitoring and reporting activities are subject to periodic
monitoring and include both operational expenses (OpEx) for the daily management of activities and capital
expenditures (CapEx) for the management and maintenance of assets. These funds are aligned with the
Group’s 2030 roadmap and are integrated into the organization’s routine management activities.
Metrics and targets
E5-3 Targets related to resource use and circular economy
At the moment, the Group has targets related circular economy approach referring to resource use and in
particular alternative fuels (please refer to Chapter E1 Climate Change, section E1-5 Energy consumption
and mix).
The established processes are integrated into the Technical Department mission and related job
description, which is responsible for ensuring adherence to the Group's Environmental Policy.
Directors’ Report 2024 Cementir Holding NV | 259
The Group constantly monitors waste production generated by its activities and adopts waste management
solutions that allow recycling and/or reusing based on an environmental circular approach.
For further details on this aspect, please refer to sections “E5-2 Actions and resources related to resource
use and circular economy” and “E5-5 Resource outflows”.
E5-4 Resource inflows
Materials used in resource inflows
Uom
Amount
2024
2023
2022
Overall total weight of products and technical and biological
materials used during the reporting period
20
ton
24,683,056
24,096,799
25,314,131
Percentage of biological materials (and biofuels used for non-
energy purposes) used to manufacture the undertaking’s products
and services (including packaging) that is sustainably sourced, with
the information on the certification scheme used and on the
application of the cascading principle
%
0
0
0
Weight, in absolute value, of secondary reused or recycled
components, secondary intermediary products and secondary
materials used to manufacture the undertaking’s products and
services (including packaging)
ton
1,711,578
1,752,381
1,675,008
Weight, in percentage, of secondary reused or recycled
components, secondary intermediary products and secondary
materials used to manufacture the undertaking’s products and
services (including packaging)
%
12%
12%
11%
Weight, in absolute value, of secondary reused or recycled
components, secondary intermediary products and secondary
materials used to manufacture the undertaking’s products and
services (including packaging)
ton
72,218
72,989
101,318
Weight, in percentage, of secondary reused or recycled
components, secondary intermediary products and secondary
materials used to manufacture the undertaking’s products and
services (including packaging)
%
1%
1%
1%
The data reported in the table have been calculated using a mass balance determined by mass
measurement devices.
Alternative raw materials
Cement production requires large quantities of natural raw materials, such as limestone, clay and gypsum,
extracted from natural quarries using various methods. These are initially mixed to produce the meal from
20
Please note that the total reported is composed of the total of raw materials, both renewable and non-renewable, used for cement
production and the total of raw materials, both renewable and non-renewable, used to produce "other products."
For details regarding these elements, please refer to the tables below.
Directors’ Report 2024 Cementir Holding NV | 260
which the clinker is made and subsequently added to the clinker and milled to obtain different types of
cement.
The Group is particularly focused on the environmental aspects associated with its operations, with the aim
of limiting their impact on ecosystems and on the areas concerned. In this sense, it continues its
commitment to reducing the use of non-renewable raw materials, promoting the use of alternative raw
materials, so called because they do not originate from quarries but from other production processes.
In 2024, the cement production plants of the Cementir Group used a total of about 14.7 million tons of
materials to produce cement and the percentage of alternative raw materials was 12%.
Raw materials used in cement production
Unit
2024
2023
2022
Non-renewable raw materials
t
13.014.089
12.945.259
13.228.832
Renewable raw materials
t
1.711.578
1.752.381
1.675.008
Total
t
14.725.667
14.697.640
14.903.840
Renewable raw materials as a percentage of total
raw materials used
%
12%
12%
11%
Non-renewable raw materials used in cement
production
Unit
2024
2023
2022
Limestone
t
10.050.688
10.054.479
10.410.689
Clay
t
980.919
993.046
1.109.975
Gypsum
t
406.257
415.316
422.458
Marl
t
611.016
535.594
312.606
Sand
t
433.632
469.806
483.783
Pozzolana
t
190.542
156.034
161.811
Admixtures
t
9.710
10.757
13.263
Auxiliaries
t
0
0
0
Stone
t
0
0
0
Calcium fluoride
t
70.145
52.060
62.537
Bauxite
t
19.059
12.791
7.772
Iron ore
t
144.515
148.079
151.648
Other materials
t
97.605
97.297
92.291
Total
t
13.014.089
12.945.259
13.228.832
Renewable materials used in cement production
Unit
2024
2023
2022
Fly ash
t
539.339
548.837
502.673
FGD gypsum
t
54.858
67.381
80.197
Iron oxide
t
79.391
37.518
48.648
Blast-furnace slag
t
327.546
296.153
327.550
Recovered limestone
t
169.763
180.325
255.828
Excavated waste soil (clay)
t
314.577
418.658
254.396
Other materials
t
226.103
203.509
202.532
Total
t
1.711.578
1.752.381
1.671.824
Directors’ Report 2024 Cementir Holding NV | 261
In 2024, Cementir Group plants for all the other activities different from cement production used a total of
10 million tons of raw materials, mainly in the ready-mix business where there is high usage of sand, stone,
and cement.
Use of renewable raw materials is far lower than in the cement business (about 72,000 tons) it is less than
1% of total raw materials used.
Raw materials used in production for others
product
Unit
2024
2023
2022
Non-renewable raw materials
t
9.885.171
9.326.170
10.308.973
Renewable raw materials
t
72.218
72.989
101.318
Total
t
9.957.389
9.399.159
10.410.291
Renewable raw materials as a percentage of total
raw materials used
%
0,73%
0,78%
0,98%
Non-renewable raw materials used in production
for others product
Unit
2024
2023
2022
Sand
t
2.426.220
2.505.524
3.097.152
Admixtures
t
15.102
131.593
17.056
Auxiliaries
t
8
11
9
Cement
t
1.448.189
1.294.786
1.493.943
Stones
t
5.971.301
5.386.372
5.691.886
Clay
t
6
394
Steel fibre
t
6.136
7.125
8.416
Basalt fibre
t
197
22
5
Plastic macrofibre
t
30
214
288
Colour pigment
t
76
129
146
Other materials
t
17.905
0
72
Total
t
9.885.171
9.326.170
10.308.973
Renewable materials used in production for others
product
Unit
2024
2023
2022
Fly ash
t
54.836
63.356
86.971
Microsilica
t
6.696
6.691
11.689
Blast-furnace slag
t
10.686
2.942
2.658
Total
t
72.218
72.989
101.318
E5-5 Resource outflows
An integrated waste management solution
The Group continued to adopt waste management solutions that promote recycling and/or reuse based on
an environmental circular approach. For example, increasing the use of alternative raw materials and fuels
(e.g., derived from waste) in cement production is a key strategy to reduce its environmental footprint.
Directors’ Report 2024 Cementir Holding NV | 262
In cement production, Cementir maximizes the reuse of clinker kiln dust in the production loop, where
possible, minimizing waste disposal in landfills.
In ready-mix concrete production, the Group reuses concrete-based demolition waste as a substitute for
natural aggregates in new preparations, where permitted by local regulations.
In the cement industry, the Group’s waste is primarily generated by the periodic maintenance of machinery
and equipment (e.g., used oil and scrap metal), as well as from warehouses and offices. Waste is properly
separated and managed according to its classification and characteristics, in compliance with local
regulations.
In 2024, 99.6% of the total waste produced by the Group was non-hazardous. 87% of hazardous waste
was sent for recycling and recovery operations (e.g., electrical and electronic waste for metal recovery,
hazardous waste used in cement production to produce RDF). Approximately 60% of the total waste
produced was directed to recycling and recovery.
Throughout the year, the Group received no fines or penalties related to waste management.
Information inherent in the waste generated
Udm
Quantity
2024
2022
2023
Total amount of waste generated
Ton
392.178
367.203
Waste not intended for disposal
Ton
277.362
235.930
Hazardous waste not intended for disposal
Ton
696
894
of which:
preparation for reuse
Ton
recycling
Ton
515
765
other recovery operations
Ton
182
129
Non-hazardous waste not destined for disposal
Ton
276.666
235.036
of which:
preparation for reuse
Ton
recycling
Ton
275.107
234.464
other recovery operations
Ton
1.559
572
Waste destined for disposal
Ton
114.815
131.273
Hazardous waste destined for disposal
Ton
169
75
of which:
incineration
Ton
27
56
disposal in landfills
Ton
133
17
other disposal operations
Ton
9
1
Non-hazardous waste destined for disposal
Ton
114.647
131.198
of which:
incineration
Ton
107
73
landfill disposal
Ton
85.935
110.046
other disposal operations
Ton
28.605
21.079
Total amount of waste not recycled
Ton
114.815
131.273
Percentage of waste not recycled
%
29,30%
35,70%
The data reported in the table have been calculated using a mass balance determined by mass
measurement devices.
Directors’ Report 2024 Cementir Holding NV | 263
EU TAXONOMY
The EU Taxonomy has been introduced by Regulation EU/2020/852 (also referred to as the «EU Taxonomy
Regulation») as part of the European Commission's action plan to redirect capital flows towards a more
sustainable economic system. The Taxonomy represents a classification system to establish which
economic activities can be considered environmentally sustainable. The purpose of this Regulation is to
protect private investors from greenwashing while simultaneously assisting companies in understanding
what types of investments are required to make their business activities sustainable from an environmental
standpoint.
The six environmental objectives to which economic activities can potentially contribute as Taxonomy-
eligible activities are:
1) Climate Change Mitigation;
2) Climate Change Adaptation;
3) Sustainable Use of Water and Marine Resources;
4) Transition to a Circular Economy;
5) Pollution Prevention and Control;
6) Protection and Restoration of Biodiversity and Ecosystems.
To be classified as Taxonomy-aligned, and therefore environmentally sustainable, eligible activities must:
• substantially contribute to the achievement of at least one of the six aforementioned environmental
objectives;
• do not significantly harm (DNSH) any of the other environmental objectives;
• comply with the minimum safeguards criteria pertaining to human and labour rights, bribery, taxation,
and fair competition.
Starting from their annual reports on fiscal year 2022, non-financial corporations were required to extend
the analysis of eligibility conducted on fiscal year 2021 by reporting on the level of alignment of their
economic activities. However, as of 2023, technical screening criteria had only been published with
reference to the environmental objectives of climate change mitigation and climate change adaptation.
Consequently, Cementir Group’s 2022 Taxonomy disclosure only focused on the requirements set out for
the two climate-related environmental objectives.
For the present disclosure on fiscal year 2023, the remaining environmental delegated acts having been
published, the analysis includes the required screening of eligibility and alignment to the objectives of
climate change mitigation and climate change adaptation plus the required screening of eligibility to the
remaining objectives. On a voluntary basis, as detailed below, Cementir has also conducted the alignment
analysis in relation to the identified eligible activity to the remaining environmental objectives.
Looking ahead, the Group is closely monitoring the developments of the EU Taxonomy in relation to the
possible development of a social and governance Taxonomy and to the compliance with the Corporate
Sustainability Reporting Directive (CSRD) that will require to integrate the Taxonomy disclosure in a
dedicated section of its Management Report.
Eligibility Assessment
In continuity with the activities performed in the previous years, Cementir conducted the eligibility
assessment by associating the Group’s economic activities with the descriptions of the eligible activities
provided by the Taxonomy Delegated Acts and used the activity codes of the Statistical Classification of
Economic Activities in the European Community (NACE codes) as a guide. During this phase, only the
inclusion of the Group’s economic activities among those listed by the delegated acts has been gauged,
irrespectively of whether such activities were suitable to meet any of the technical screening criteria
Directors’ Report 2024 Cementir Holding NV | 264
established by the Regulation. From this analysis, Cementir Group identified the following eligible economic
activities:
Table 1: Eligible Activities
Activity
Description
Climate
Change
Mitigati
on
Climate
Change
Adaptatio
n
Sustainable
use and
protection of
water and
marine
resources
2.1 Water Supply
Construction, extension, operation, and
renewal of water collection, treatment and
supply systems intended for human
consumption based on the abstraction of
natural resources of water from surface or
ground water sources.
ü
3.7. Manufacture of
cement
Manufacture of cement clinker, cement or
alternative binder.
ü
ü
4.25 Production of
heat/cool using waste
heat
Construction and operation of facilities that
produce heat/cool using waste heat.
ü
ü
5.5. Collection and
transport of non-
hazardous waste in
source separated
fractions
Separate collection and transport of non-
hazardous waste in single or comingled
fractions aimed at preparing for reuse or
recycling.
ü
ü
5.9 Material recovery
from non-hazardous
waste
Construction and operation of facilities for the
sorting and processing of separately collected
non-hazardous waste streams into secondary
raw materials involving mechanical
reprocessing, except for backfilling purposes.
ü
ü
The identified eligible activities are equivalent to the ones identified for fiscal year 2023.
Lastly, it should be emphasized that the economic activities that have not been identified as Taxonomy-
eligible are simply not included in the EU Taxonomy Regulation at present and, therefore, do not constitute
any form of non-compliance. This is the case for the production of white cement, ready-mix concrete,
aggregates, and concrete products, activities which are not yet included in the Delegated Acts of the EU
Taxonomy Regulation and represent 62.79% of Cementir Group’s 2024 total turnover.
Please find in the table reported in the next page the list of the Group’s legal entities linked to each eligible
economic activity identified:
Directors’ Report 2024 Cementir Holding NV | 265
Table 2: Group’s legal entities – eligibility
Activity 2.1 Water Supply
Compagnie des Ciments Belges S.A.
Recovery and potabilization of water removed during the
exploitation of our quarry of limestone in Clypot (Belgium)
Activity 3.7 Manufacture of cement
Cimentas AS
Production of grey cement only with its plants located in Izmir and
Trakya.
Kars Cimento AS
Production of grey cement only.
Elazig Cimento
Production of grey cement only.
Aalborg Portland A/S
Production of grey cement and white cement. Only the grey
cement portion will be considered in the analysis
Compagnie des Ciments Belges S.A.
Production of grey cement, ready-mix concrete and aggregates.
Only the grey cement portion will be considered in the analysis.
Aalborg Islandi
Does not produce grey cement, but resells grey cement
purchased intra-group.
CCB France
Does not produce grey cement, but resells grey cement
purchased intra-group.
Spartan Hive
Does not produce grey cement, but resells grey cement
purchased intra-group.
Activity 4.25 Production of heat/cool using waste heat
Aalborg Portland A/S
Recovery of waste heat used for district heating in the area
surrounding the plant.
Activity 5.5 Collection and transport of non-hazardous waste in source separated fractions
Sureko SA
Collecting and transporting hazardous and non-hazardous waste.
Activity 5.9 Material recovery from non-hazardous waste
Sureko SA
Recycling materials produced (ferrous materials, aluminium etc.)
and recovery fuels (RDF/SRF)
Directors’ Report 2024 Cementir Holding NV | 266
Alignment Assessment
As anticipated, for its 2024 non-financial disclosure, Cementir Group is required to conduct the alignment
analysis for the identified eligible activities to the objectives of climate change mitigation and climate change
adaptation. The Group has also conducted the alignment analysis for activity 2.1. Water Supply, eligible to
the objective of sustainable use of water and marine resources.
As a result of the alignment analysis, Cementir Group identified Taxonomy-aligned economic activities for
three legal entities within the scope of eligibility:
● Cimentas A.S. limited to the operations taking place in Trakya’s plant for activity 3.7. Manufacture of
cement;
● Aalborg Portland A/S for activity 3.7. Manufacture of Cement limited to the grey cement production
and for activity 4.25. Production of heat/cool using waste heat.
For these activities, Cementir Group has been able to meet all the respective technical screening criteria
detailed in the Delegated Acts of the EU Taxonomy Regulation.
In relation to activity 2.1. Water Supply, it should be considered as an individual measure enabling the
target activity to become low-carbon or to lead to greenhouse gas reductions. Its voluntary alignment
assessment resulted in partial compliance due to the non-applicability of several of the technical screening
criteria. Awaiting to witness the application of such criteria on a broader scale and the possibility to conduct
deeper research on the subject, activity 2.1. Water Supply is not considered aligned in light of the present
disclosure. With special regard to activity 3.7. Manufacture of cement, the Group’s core business, alignment
was found to be limited to two legal entities because of the ambitious emissions thresholds set out by the
criteria of Substantial Contribution to Climate Change Mitigation and of Do Not Significant Harm to Climate
Change Mitigation. As of 2024, the plants of Aalborg Portland A/S, and Cimentas A.S. - Trakya respect
one such limitation on emissions – the one set by the Do Not Significant Harm to Climate Change Mitigation.
However, as further explained below, the Group has developed an investment plan which will allow to cut
GHG emissions on several other plants in the coming years.
Compared to 2023 the Manufacture of Cement in the Belgian legal entities Compagnies des Ciments
Belges S.A did not meet emissions thresholds set out by the criteria of Substantial Contribution to Climate
Change Mitigation.
The nonalignment is mainly due to the revamping of the main kiln operating in Belgium.
in 2024 the plant runed with an older kiln of the emissions emitted. The criteria were not met but only
temporarily because in 2024 the Company operated with an older kiln that influenced the results and
worked on revamping and optimization of the other kiln. The old kiln has been dismissed at the end of 2024
and the new revamped kiln has been set to improve the Co2 emissions with the aim to reach the required
threshold and lower its emissions.
Despite representing a residual part of Cementir Group’s business activities, the production of heat
recovered from Aalborg’s Klin operations has been assessed as aligned with the EU Taxonomy as it is
conducted by respecting all technical screening criteria.
As for the 2022 disclosure, activities 5.5. Collection and transport of non-hazardous waste in source
separated fractions and 5.9. Material recovery from non-hazardous waste could not be considered
Taxonomy-aligned due to the non-compliance with the criteria of Substantial Contribution to Climate
Change Adaptation and of Do Not Significant Harm to Climate Change Adaptation. In fact, while an
assessment of the physical climate risks has been conducted for the Group’s cement producing facilities,
for the moment such analysis has not been extended to legal entities conducting waste management
activities. Based on the gaps identified in our analysis, it was deemed reasoned to assign the percentage
of eligibility of these activities to the objective of Climate Change Adaptation.
Directors’ Report 2024 Cementir Holding NV | 267
Substantial Contribution and Do No Significant Harm (DNSH)
As required, all identified eligible economic activities were screened to assess the compliance with the
Substantial Contribution criteria and the Do No Significant Harm criteria. The analysis allowed to distinguish
between eligible-not aligned activities and eligible-aligned activities. We hereby report the assessment
results of the eligible-aligned activities.
Activity 3.7 Manufacture of Cement (Aalborg Portland A/S, Cimentas A.S. – Trakya)
Requirements
Elements of compliance
Substantial Contribution to Climate
Change Adaptation
For all its cement production facilities Cementir Holding N.V. conducted a
physical climate risk assessment in line with the provisions of the Taxonomy
Regulation. In accordance, the appropriate adaptation solutions for the
identified risks have been assessed and implemented.
Do No Significant Harm Climate
Change Mitigation
For Aalborg Portland A/S, Cimentas A.S. – Trakya and, the greenhouse gas
emissions from grey cement clinker production processes are lower than 0.816
tCO
2
e per ton of clinker manufactured.
Do No Significant Harm Use and
Protection of Water and Marine
Resources
Environmental degradation risks related to preserving water quality and
avoiding water stress have been identified and addressed and a water use and
protection management plan has been developed accordingly. For Aalborg
Portland A/S the Environmental Impact Assessment was carried out in
accordance the most up to date European Directives. For Cimentas A.S. -
Trakya the Environmental Impact Assessment was carried out in accordance
with equivalent local regulation and standards.
Do No Significant Harm Pollution
Prevention and Control
Neither activity leads to the manufacture, placing on the market or use of
substances included in Appendix C of Annex I to the Climate Delegated Act.
Moreover, emissions from all three plants are in line with the BAT-AEL ranges
and no significant cross-media effects occur
21
. In accordance, measures are
in place to ensure the safe handling of waste in the manufacturing of cement
employing hazardous wastes as alternative fuels.
Do No Significant Harm Protection
and Restoration of Biodiversity and
Ecosystems
For Aalborg Portland A/S the Environmental Impact Assessment was carried
out in accordance with the most up to date European Directives.
The Environmental Impact Assessments carried out for the sites of Cimentas
A.S. Trakya were conducted in accordance with local regulation and standards
equivalent to the European ones.
21
For information about cross-media effects, please refer to ecm_bref_0706.pdf (europa.eu)
Directors’ Report 2024 Cementir Holding NV | 268
4.25 Production of heat/cool using waste heat (Aalborg Portland A/S)
Requirements
Elements of compliance
Substantial Contribution to Climate
Change Mitigation
The activity produces heat or cool from waste heat.
Do No Significant Harm Climate
Change Adaptation
For all its cement production facilities Cementir Holding N.V. conducted a
physical climate risk assessment in line with the provisions of the Taxonomy
Regulation. In accordance, the appropriate adaptation solutions for the
identified risks have been assessed and implemented. Being the activity under
scrutiny conducted within the Aalborg Portland A/S plant, the assessment was
deemed sufficient.
Do No Significant Harm Transition
to a Circular Economy
The activity uses equipment and components of high durability and recyclability
and that are easy to dismantle and refurbish.
Do No Significant Harm Pollution
Prevention and Control
The pumps and equipment of the Aalborg Portland A/S plant comply with the
top-class requirements of the energy label.
Do No Significant Harm Protection
and Restoration of Biodiversity
The Environmental Impact Assessment for Aalborg Plant A/S was carried out
in accordance with the most up to date European Directives.
It is worth noticing that the compliance with the criteria for both Substantial Contribution and Do No
Significant Harm for the objective of Climate Change Adaptation across all the identified taxonomy-aligned
economic activities is the outcome of the Physical Climate Risk Assessment conducted by the Group. The
risks associated with 7 climate change hazards (namely water stress, floods, heatwaves, cold waves,
hurricanes, wildfires and sea level rise) have been analysed based on a medium- and long-term scenario-
analysis on the geographical locations in which Cementir Group owns cement production facilities. Such
analysis allowed the Group to determine which of these risks need to be considered material and what kind
of adaptation solutions need to be implemented to prevent negative effects in sensitive geographical areas.
In particular, the assessment was based on 3 different climate scenarios (High Climate Change Scenario
RCP8.5, Moderate Climate Change Scenario RCP4.5, Low Climate Change Scenario RCP2.6), using 2020
as the baseline and projecting the respective effects at 2030 and 2050. For further information regarding
the analysis please refer to paragraph “Climate-related scenario analysis”.
With regard to the Do No Significant Harm criteria to the objective of Climate Change Mitigation in relation
to activity 3.7 Manufacture of cement, the Climate Delegated Act defines thresholds of greenhouse gas
emissions for unit of grey cement and clinker produced which the producing plants must not surpass in
order to meet the criteria for alignment. According to the Climate Delegated Act, the amount of GHG
emissions considered needs to be calculated by adopting the methodologies detailed by regulation
EU/2019/331, used for determining the allocation of emission allowances in the context of the European
Union Emissions Trading System (EU ETS). Accordingly, Cementir Group assessed the emissions of all
its plants producing grey cement against the emission thresholds defined by the EU Taxonomy Regulations
for both the production of grey cement and clinker. While the amount of emissions per ton of grey cement
manufactured currently exceeds the threshold for all existing plants, emissions per ton of clinker produced
have been recorded below the established threshold for the plants of Trakya (Cimentas A.S.) and Aalborg
Portland A/S. In the context of the Group’s 2030 Roadmap described in the paragraph “Cementir Roadmap
2030”, Cementir Holding N.V. identified a series of investments aimed at progressively reducing the amount
of emissions associated with cement production activities by recurring to both incremental efficiency-driven
interventions and disruptive technologies which could considerably improve the environmental
Directors’ Report 2024 Cementir Holding NV | 269
performance of the Group’s cement producing facilities. According to such investment plan, most of the
Group’s plants producing grey cement and clinker will reduce emissions below the thresholds defined within
the EU Taxonomy Regulation by the year 2030, thus allowing other Cementir’s grey cement production
plants to reach alignment (in case all other technical screening criteria will still be met by these plants).
Please, find in the following table the share of Capex invested in 2024 as part of the 2030 Roadmap:
Aligned Roadmap Capex
EUR
2022
2023
2024
Aalborg Grey Cement
5,297,294
5,355,470
2,787,048
CCB Grey Cement
14,645,000
10,700,000
41,083,142
TOTAL
19,942,294
16,055,470
43,870,000
Minimum Safeguards
Compliance with the minimum safeguard criteria was assessed based directly on Art. 18 of the Regulation
852/2020 and on ‘Final Report on Minimum Safeguards’ published in October 2022 by the Platform on
Sustainable Finance (PSF), the advisory body constituted by the European Commission to coordinate the
development and the implementation of the EU Taxonomy Regulation. The analysis focused on whether
Cementir Group respects the OECD Guidelines for Multinational Enterprises (OECD MNE Guidelines) and
the UN Guiding Principles on Business and Human Rights (UNGPs), including the principles and rights set
out in the eight fundamental conventions identified in the Declaration of the International Labor
Organization on Fundamental Principles and Rights at Work and The International Bill of Human Rights.
More specifically, Cementir Group’s assessment for compliance was based on the following 4 areas of
analysis for which it has not been convicted in court cases:
● human rights: Cementir Group annually conducts due diligence activities focused on human rights
by having all legal entities undergo a self-assessment survey and conducting related audits to verify the
accuracy of the information reported. Cementir operates to promote and ensure that these are respected
in all its operations and those of its suppliers. The Group has also defined its Human rights Policy, which
can be downloaded from the corporate website under the section Governance/Ethics and Compliance;
● corruption and bribery: the Group adopted policies, measures, programmes and internal control
systems to ensure ethics and compliance in the fight against corruption. Relevant policies in this area
include: the Anti-bribery Policy, the Supplier code of conduct, the Code of ethics. More information can be
found on paragraph “The Code of Ethics”;
● taxation: the Group conducts its business activities in a manner that complies with tax regulations
in all the countries its operations take place, and institutes internal control procedures to guarantee
compliance with such regulations. More information can be found on the Cementir’s approach to taxes, on
Cementir’s approach to taxes;
● fair competition: Cementir Holding N.V. conducts its business activities in a manner that complies
with all applicable laws focusing on fair business competition and requires its employees to complete topic-
specific training to prevent risks of occurrence.
Moreover, the Group is aware of the integration of D&I requirements within the minimum safeguards and,
in accordance with Dutch law and the New Dutch Code of Corporate Governance, it set diversity targets
for a good balance of D&I aspects in the Board and in the Senior Management. As a matter of fact, Cementir
reports the board gender diversity and during 2024 calculated the gender pay gap for the Group, region
selected based on the ease of data processing. This pilot will then be extended with the goal to collect and
Directors’ Report 2024 Cementir Holding NV | 270
calculate the gender pay gap of the whole workforce. More information can be found on paragraph “Gender
Pay Gap”. Lastly, the Group is not involved in the manufacture or selling of controversial weapons.
Indicators and accounting policies
The proportion of Cementir Group’s turnover, capital expenditure (Capex) and operating expenditure
(Opex) associated with the execution of their eligible and aligned economic activities are hereby reported
in accordance with Article 8 of the EU Taxonomy Regulation and its respective supporting Delegated Act.
In compliance with the instructions provided by the EU Taxonomy Regulation to avoid double counting
(Sect. 1.2.2.2. (c) of Annex I to the Art. 8 Delegated Act) the activities identified as aligned were attributed
to a single environmental objective.
Proportion of Taxonomy-eligible and Taxonomy-aligned economic activities in total turnover, CapEx and
OpEx
Year 2024
Total EUR
Proportion of
Taxonomy- eligible
economic activities
(%)
Proportion of
Taxonomy-aligned
activitiy (%)
Proportion of Taxonomy-
aligned activity (%)
Substantial contribution to
climate change
adaptation (Obt 2)
Substantial contribution
to climate change
mitigation (Obt 1)
Turnover
1,686,943,385
37.21%
0.38%
16.15%
Operating
expenditure
(OpEx)
133,293,684
40.01%
0.30%
18.01%
Capital
expenditure
(CapEx)
179,167,821
49.21%
0.08%
17.62%
Turnover
The proportion of Taxonomy-eligible and Taxonomy-aligned economic activities in terms of total turnover
has been calculated as the part of net turnover derived from products and services associated with
Taxonomy-eligible and Taxonomy-aligned economic activities (numerator) divided by the total consolidated
net turnover (denominator).
For further details on our accounting policies regarding our consolidated net turnover, see chapter
‘Accounting policies’ of the 2024 Annual Report. The accounting items for this indicator have been derived
from the 2023 consolidated Profit & Loss statement of Cementir Group.
For legal entities considered in scope of eligibility, only revenues pertaining to the identified eligible
economic activities have been considered. As a consequence, all sales associated with activities different
from those described in Table 1 have been excluded from the calculation of the numerator for the turnover
KPI.
Capex
The proportion of Taxonomy-eligible and Taxonomy-aligned economic activities in terms of capital
expenditure is defined as Taxonomy aligned Capex (numerator) divided by total Capex (denominator).
Total Capex consists of additions to tangible and intangible fixed assets during the financial year, before
depreciation, amortization, and any re-assessments, including those resulting from revaluations and
impairments, as well as excluding changes in fair value. It includes acquisitions of tangible fixed assets
(IAS 16), intangible fixed assets (IAS 38), right-of-use assets (IFRS 16) and investment properties (IAS
40). Additions resulting from business combinations are also included. Goodwill is not included in Capex,
as it is not defined as an intangible asset in accordance with IAS 38. For further details on our accounting
policies regarding our Capex, see chapter ‘Accounting policies’ of the 2024 Annual Report.
Directors’ Report 2024 Cementir Holding NV | 271
Investments are extrapolated from Cementir’s 2024 Statutory Book. The accounting items selected from
the statutory book are tangible investments and intangible investments. The numerator consists of ‘Capex
related to assets or processes that are associated with Taxonomy-eligible economic activities’ (Sect.
1.1.2.2. (a) of Annex I to Art. 8 Delegated Act), eventually of investments that are part of Cementir’s 2030
Investment Plan to allow Taxonomy-eligible cement production activities to become Taxonomy-aligned
(Sect. 1.1.2.2. (b) of Annex I to Art. 8 Delegated Act), and of individual measures enabling the target
activities to become low-carbon or to lead to greenhouse gas reductions (Sect. 1.1.2.2. (c) of Annex I to
Art. 8 Delegated Act).
Since Aalborg Portland A/S produces both grey and white cement, it was necessary to use a driver to select
only the proportion of eligible Capex that was computed based on the proportion of tonnes of grey cement
produced on total tonnes produced by the entity (77.37%).
Opex
The proportion of Taxonomy-eligible and Taxonomy-aligned economic activities in terms of operating
expenditure is defined as Taxonomy-eligible or Taxonomy-aligned Opex (numerator) divided by total Opex
(denominator). This indicator is limited to non-capitalized costs related to research and development, repair
and maintenance costs, personnel costs linked with maintenance, repair and cleaning costs, building
renovation measures, and short-term leases.
Operating expenditures are selected from the 2024 managerial profit and loss statements of the Group.
The numerator includes the portion of the above-mentioned accounting items linked with eligible economic
activities.
As for the Capex KPI, since Aalborg Portland A/S produces both grey and white cement, it was necessary
to use a cost driver to calculate the Opex KPI, as well. Again, this was based on the proportion of tons of
grey cement produced in relation to the total tons produced by the entity (77.37%).
Directors’ Report 2024 Cementir Holding NV | 272
Taxonomy templates
Legenda for Templates reported in the next pages
For the purposes of tabular representation, the following legend applies:
(1) Climate Change Mitigation : CCM ;
(2) Climate Change Adaptation : CCA ;
(3) Water and Marine Resources: WTR;
(4) Circular Economy: CE;
(5) Pollution Prevention and Control: PPC;
(6) Biodiversity and ecosystems: BIO;
MS Minimum Safeguards.
For the reading of the alignment section of the templates, the following legend applies:
• Y - Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental
objective;
• N - No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental
objective;
• N/A – Not applicable, technical screening criteria not listed by the Regulation.
For the reading of the eligibility section of the templates, the following legend applies:
N/EL - not eligible, Taxonomy non-eligible activity for the relevant environmental objective;
EL - Taxonomy eligible activity for the relevant objective;
N/A - Not applicable.
Directors’ Report 2024 Cementir Holding NV | 273
Table 3 - Proportion of turnover from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024.
Economic Activities Code Turnover
Proportion of Turnover,
year N
Climate
Change
Mitigation
Climate
Change
Adaptation
Water Pollution
Circular
Economy
Biodiversity
Climate
Change
Mitigation
Climate
Change
Adaptation
Water Pollution
Circular
Economy
Biodiversity
Minimum
Safeguards
Proportion of
Taxonomy
aligned (A.1.)
or eligible
(A.2.)
Turnover,
year N-1
Category
enabling
activity
Category
transition
al activity
mlnEUR %
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of Cement
CCM 3.7 / CCA 3.7 272.366.647 16,15% N Y N/EL N/EL N/EL N/EL Y Y Y Y N/A Y Y 28,22% - -
Production of heat/cool using waste heat
CCM 4.25 / CCA 4.25 6.356.260 0,38% Y N N/EL N/EL N/EL N/EL Y Y N/A Y Y Y Y 0,29% - -
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
278.722.907 16,52% 28,51%
Of which Enabling - 0,00% - - - - - - - - - - - - - 0,00% - -
Of which Transitional - 0,00% - - - - - - - - 0,00% - -
A.2 Taxonomy-Eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Manufacture of Cement
CCM 3.7 / CCA 3.7
345.981.772,62 20,51%
EL EL
N/EL N/EL N/EL N/EL 9,49% - -
Collection and transport of non-hazardous waste in source separated
fractions
CCM 5.5 / CCA 5.5
2.540.899,00 0,15%
EL EL
N/EL N/EL N/EL N/EL
0,11%
-
-
Material recovery from non-hazardous waste CCM 5.9 / CCA 5.9 317.572,00 0,02%
EL EL
N/EL N/EL N/EL N/EL 0,01% - -
Water Supply
WTR 2.1
86.922,00 0,01%
N/EL N/EL
EL
N/EL N/EL N/EL
0,00%
Turnover of Taxonomy- eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2)
348.927.165,62 20,68%
A. Turnover of Taxonomy eligible activities (A1+A2) 627.650.072,85 37,21% 0,38% 36,82% 0% 0% 0% 0% 38,12%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy- non-eligible activities 1.059.293.312,15 62,79%
TOTAL 1.686.943.385,00 100,00%
Financial year 2024
Substantial Contribution Criteria
DNSH criteria ('Does Not Significantly Harm')
Directors’ Report 2024 Cementir Holding NV | 274
Table 4 - Proportion of Capex from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
Economic Activities Code CapEx
Proportion of CapEx,
year N
Climate
Change
Mitigation
Climate
Change
Adaptation
Water Pollution
Circular
Economy
Biodiversity
Climate
Change
Mitigation
Climate
Change
Adaptation
Water Pollution
Circular
Economy
Biodiversity
Minimum
Safeguards
Proportion of
Taxonomy
aligned (A.1.)
or eligible
(A.2.) CapEx,
year N-1
Category
enabling
activity
Category
transitional
activity
mlnEUR %
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of Cement CCM 3.7 / CCA 3.7 31.570.735 17,62% N Y N/EL N/EL N/EL N/EL Y Y Y Y N/A Y Y 38,51% - -
Production of heat/cool using waste heat CCM 4.25 / CCA 4.25 140.461 0,08% Y N N/EL N/EL N/EL N/EL Y Y N/A Y Y Y Y 0,15% - -
0,00% 0,00%
CapEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
31.711.196 17,70% 38,66%
Of which Enabling - 0,00% - - - - - - - - - - - - - - -
Of which Transitional - 0,00% - - - - - - - - - -
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Water Supply
WTR 2.1 48.875 0,03% N/EL N/EL
EL
N/EL N/EL N/EL 0,24%
Manufacture of Cement
CCM 3.7 / CCA 3.7 54.426.765 30,38%
EL EL
N/EL N/EL N/EL N/EL 6,75%
Collection and transport of non-hazardous waste in source separated
fractions
CCM 5.5 / CCA 5.5 - 0,00%
EL EL
N/EL N/EL N/EL N/EL 0,67%
Material recovery from non-hazardous waste CCM 5.9 / CCA 5.9
1.976.641 1,10%
EL EL
N/EL N/EL N/EL N/EL 0,00%
CapEx of Taxonomy- eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2)
56.452.281 31,51%
A. CapEx of Taxonomy eligible activities (A1+A2) 88.163.477 49,21% 0,08% 48,00% 0,03% 0,00% 0,00% 0,00% 46,32%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy- non-eligible activities 91.004.344 50,79%
TOTAL 179.167.821 100,00%
Financial year 2024
Substantial Contribution Criteria
DNSH criteria ('Does Not Significantly Harm')
Directors’ Report 2024 Cementir Holding NV | 275
Table 5 - Proportion of Opex from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024.
Economic Activities
Code OpEx
Proportion of OpEx,
year N
Climate
Change
Mitigation
Climate
Change
Adaptation
Water Pollution
Circular
Economy
Biodiversity
Climate
Change
Mitigation
Climate
Change
Adaptation
Water Pollution
Circular
Economy
Biodiversity
Minimum
Safeguards
Proportion of
Taxonomy aligned
(A.1.) or eligible
(A.2.) OpEx,
year N-1
Category
enabling
activity
Category
transitional
activity
mlnEUR %
Y; N; N/EL
Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-
Manufacture of Cement CCM 3.7 / CCA 3.7 24.003.285,63 18,01% N Y N/EL N/EL N/EL N/EL Y Y Y Y N/A Y Y 26,58% - -
Production of heat/cool using waste heat CCM 4.25 / CCA 4.25 404.079,51 0,30% Y N N/EL N/EL N/EL N/EL Y Y N/A Y Y Y Y 0,38% - -
OpEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
24.407.365,14 18,31% 26,96%
Of which Enabling - 0,00% - - - - - - - - - - - - - - - -
Of which Transitional - 0,00% - - - - - - - - - - -
A.2 Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Water Supply
WTR 2.1
104.054,00 0,08%
N/EL N/EL
EL
N/EL N/EL N/EL 0,05%
- -
Manufacture of Cement
CCM 3.7 / CCA 3.7
28.672.013,32 21,51%
EL EL
N/EL N/EL N/EL N/EL 6,74%
- -
Collection and transport of non-hazardous waste in
source separated fractions
CCM 5.5 / CCA 5.5
- 0,00%
EL EL
N/EL N/EL N/EL N/EL 0,07%
- -
Material recovery from non-hazardous waste CCM 5.9 / CCA 5.9 151.868,48 0,11%
EL EL
N/EL N/EL N/EL N/EL 33,83%
- -
OpEx of Taxonomy- eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities)
(A.2)
28.927.935,80 21,70%
A. OpEx of Taxonomy eligible activities (A1+A2) 53.335.300,94 40,01% 0,30% 39,52% 0,08% 0% 0% 0% 67,65%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy- non-eligible activities 79.958.383 59,99%
TOTAL 133.293.684 100,00%
Financial year 2024
Substantial Contribution Criteria
DNSH criteria ('Does Not Significantly Harm')
Directors’ Report 2024 Cementir Holding NV | 276
Table 3.1 - Proportion of turnover from products or services associated with Taxonomy-aligned economic
activities – disclosure covering year 2024
Proportion of Turnover / Total Turnover
Taxonomy-Aligned per
objective
Taxonomy-Eligible per
objective
CCM
0,38%
0,38%
CCA
16,15%
36,8%
WTR
0,0%
0,0%
CE
0,0%
0,0%
PPC
0,0%
0,0%
BIO
0,0%
0,0%
Table 4.1 - Proportion of Capex from products or services associated with Taxonomy-aligned economic activities
– disclosure covering year 2024
Proportion of CapEx/Total CapEx
Taxonomy-Aligned per
objective
Taxonomy-Eligible per
objective
CCM
0,08%
0,08%
CCA
17,62%
48,00%
WTR
0,00%
0,03%
CE
0,00%
0,00%
PPC
0,00%
0,00%
BIO
0,00%
0,00%
Table 5 - Proportion of Opex from products or services associated with Taxonomy-aligned economic activities
– disclosure covering year 2024
Proportion of OpEx/Total OpEx
Taxonomy-Aligned per
objective
Taxonomy-Eligible per
objective
CCM
0,30%
0,30%
CCA
18,01%
39,52%
WTR
0,00%
0,08%
CE
0,00%
0,00%
PPC
0,00%
0,00%
BIO
0,00%
0,00%
Directors’ Report 2024 Cementir Holding NV | 277
Table 6 - Nuclear and fossil gas related activities
Row
Nuclear energy related activities
YES/NO
1
The undertaking carries out, funds or has exposures to research, development, demonstration
and deployment of innovative electricity generation facilities that produce energy from nuclear
processes with minimal waste from the fuel cycle.
No
2
The undertaking carries out, funds or has exposures to construction and safe operation of new
nuclear installations to produce electricity or process heat, including for the purposes of district
heating or industrial processes such as hydrogen production, as well as their safety upgrades,
using best available technologies.
No
3
The undertaking carries out, funds or has exposures to safe operation of existing nuclear
installations that produce electricity or process heat, including for the purposes of district heating
or industrial processes such as hydrogen production from nuclear energy, as well as their safety
upgrades.
No
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation of electricity
generation facilities that produce electricity using fossil gaseous fuels.
No
5
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation
of combined heat/cool and power generation facilities using fossil gaseous fuels.
No
6
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation
of heat generation facilities that produce heat/cool using fossil gaseous fuels.
No
Directors’ Report 2024 Cementir Holding NV | 278
SOCIAL INFORMATION
S1 OWN WORKFORCE
We value our people
“We attract and value talent and ensure a safe and stimulating work environment for our people, who are our
most important resource.”
Strategy
SBM-2 - Interests and views of stakeholders
Cementir safeguards the development of human capital, respect human and workers’ rights, promotes an
inclusive and equal working culture an empowering people to be active members within the organization.
Active participation at different levels of the organization and respecting every employee’s right of participation
are parts of Cementir working culture.
The Company wants to empower people to actively participate and collaborate, to take both ownership of their
work and responsibility for everyone’s safety.
SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model
The process to identify and assess material own workforce-related impacts, risks and opportunities, are
described in the “General Information” chapter, sections “Impact materiality assessment” and “Financial
materiality: risk and opportunities assessment”.
Direct employees belonging to the Company and working in the manufacturing process are the ones that can
be subject to material impacts during the operations of Cementir. Nevertheless, based on the activities,
employees provided by a third party, primarily engaged to carry out activities for Cementir in the extraction phase
such as Mining and Quarrying, could be subject too.
ESRS Own workforce definition
Application to Cementir
Employees
Yes
Self- employed people
No
People provided by third party undertakings primarily
engaged in employment activities
Yes
Non employees
22
Yes
The table below indicates whether the material negative impacts are widespread or systemic within the contexts
where Cementir operates or associated with individual incidents.
22
Non-employees in an undertaking’s own workforce include both individual contractors supplying labour to the undertaking (“self-
employed people”) and people provided by undertakings primarily engaged in “employment activities” (NACE Code N78).
Directors’ Report 2024 Cementir Holding NV | 279
Material topic
Material negative impacts
Widespread or
systemic in
contexts where
Cementir
operates
Related to
individual in
cidents
Working
Conditions
Secure employment: Not giving access to secure employment
through stable contract and not promoting the well-being of
people could lead the employees to be stressed and not satisfied
having consequently low performances on the organization and
having a negative impact on business and results of Cementir.
x
Work-life balance: Cementir not ensuring a proper work-life
balance for its employees, not maintain a healthy equilibrium
between private and working life can have a negative impact on
employees and consequently on the performance of the
Company.
x
Health & Safety:
The inhalation of silica dust by workers can lead to the
development of chronic health conditions, resulting in negative
external impacts on their health
x
Health & Safety:
The use of heavy equipment and quarrying operations by the
undertaking can lead to high fatality rates, significant health and
safety risks for their employees and contractors
x
Other work-
related rights
Child Labor/Forced Labor:
Severe human rights issues (e.g. forced labor, human trafficking
or child labor) affecting the undertaking’s own workforce can lead
to a negative impact for Cementir
x
Below, with respect to the material positive impacts defined, it is provided a brief description of the activities
generating these positive effects, along with the types of employees and non-employees within its workforce
who are or could be positively impacted, is provided.
Material topic
Material positive impacts
Description of the activities that result
in the positive impacts
Types of employees
and non-employees
that are positively
affected or could be
positively affected
Equal treatment
and opportunities
for all
Measures against violence
and harassment in the
workplace:
The Company through
Policies, training and
Whistleblowing channel,
The Company is contrary to any form of
direct or indirect discrimination against
and/or harassment of individuals or
groups by any other individual or group
and are likewise committed to the
prevention and elimination of such
behaviors. Moreover, thanks to the
All
Directors’ Report 2024 Cementir Holding NV | 280
guarantee the measure
against violence and
harassment in the workplace.
Whistleblowing channel, all workers can
denounce violence and or sexual
harassment to Internal Audit Department
which is in charged to proceed with the
investigations and related analysis. The
results of the analysis and any potential
actions are assessed by the Ethics
Committee. The relevant people and
functions will be notified of any violations.
Diversity:
The Company promotes
diversity, equity, and
inclusion initiatives which
lead to positive significant
influence of workforce
diversity and consequently
provides equal treatment and
opportunity for all
Through the Group employees’ diversity,
equity & inclusion policy, Cementir
developed an inclusive culture of freedom
from any instance of discrimination and
enthusing that the values of the honesty,
integrity, respect and trust are always
present. Indeed, material positive impacts,
including workers’ access to equal
opportunities, in terms of freedom from
discrimination (on the basis of gender,
racial or ethnic origin, nationality, religion
or belief, disability, age or sexual
orientation), equality in pay, access to
secure employment, equal treatment
(working conditions, access to social
protection and training, inclusion of
persons with disabilities)
All
Other work-related
rights
Water and sanitation:
Water access in some
geographical areas where the
Company operates can be
difficult due to scarcity or
water stress. For this reason,
the Company is part of the
WASH Pledge program with
the aim to take action on the
value chain providing access
to safe water, sanitation, and
hygiene at the workplace. By
signing this pledge, Cementir
contribute to the
implementation of SDG 6 and
provide international best
practices on WASH.
The Company has operations in some
geographical areas where water access
can be difficult due to scarcity or water
stress. For this reason, in 2022 the
Company signed the WASH Pledge
(Pledge for access to Safe Water,
Sanitation and Hygiene at the workplace)
which has been developed by World
Business Council for Sustainable
Development (WBCSD). By doing this,
Cementir guarantees the provision and
access to water at an appropriate
standard for all employees in all premises
under its direct control.
All
Directors’ Report 2024 Cementir Holding NV | 281
The material risks for Cementir stemming from the impacts and dependencies related to its own workforce are
defined as it follows:
• Risks related to accident prevention and health & safety regulations' violations can lead to medical and
legal expenses as per fines and sanctions.
• The increase of awareness of people regarding regulations of equal opportunities and treatment:
o for Diversity can lead the company to a risk of reduction of the number of people interested in working
in the company and may occurs in fines not respecting the regulations;
o regarding gender equality and equal pay for work of equal value can lead the company to a risk of
reduction of the number of people interested in working in the company and may occurs in fines not
respecting the regulations.
Both of those can lead to a reduction of production or increase of costs with related impact on the EBITDA.
No opportunities have been identified.
Operations at significant risks of incidents of forced labor could be noticed in activities as mining, quarrying in
the following geographical areas: China, Malaysia, Türkiye and Egypt.
Thanks to the Group human rights policy and the Whistleblowing Management Procedure, the Company
monitors these types of risks and thanks to the Audit on Human Right, which are regularly carried out by Internal
Audit Department.
With specific reference to risks related to incidents of child labor it has to be noted that there are not considered
as relevant risk in particular for manufacturing and own operations due to constant control carried out by Internal
Audit Department and through the correct application of policies and procedures. Geographical areas potentially
impacted are: China, Malaysia, Türkiye and Egypt.
Regarding activities performed in the production plant, dedicated procedure is foreseen, related training is
periodically carried out in order to guarantee the health and the safety of all employees and thus with the aim to
prevent risk related to the health and safety of the worker of the Company and on the value chain.
Impacts, risks and opportunities management
S1-1 Policies related to own workforce
Diversity, Equity & Inclusion
The Group employees’ diversity, equity & inclusion policy establishes some guidelines in the Cementir Group
that promote a culture of respect for diversity, work equality, non-discrimination and the inclusion of labor groups
in Cementir Holding
The production sector, where the Group is active, is historically characterized by a predominantly male
workforce. Analysis of 2024 data on personnel distribution shows that 87% of employees are male. This is widely
linked to a high prevalence of men amongst blue collar employees (the main category of staff). The Group
continues to promote equal gender treatment and opportunities throughout the entire organization, starting by
defining Group values and a leadership competency model in which the concepts of inclusion and diversity
appreciation are well represented. With this purpose the Group employees’ diversity, equity & inclusion policy,
published in November 2022, and still applicable in 2024 establishes some guidelines in the Cementir Group
that promote a culture of respect for diversity, work equality, non-discrimination and the inclusion of labor groups
in Cementir Holding. Through this, it strives to ensure equality of opportunities for group employees. The Group
Directors’ Report 2024 Cementir Holding NV | 282
employees’ diversity, equity & inclusion policy is part of the DEI roadmap, which also includes the definition of a
specific action plan including the entire population of the Group.
The commitment of Cementir towards Diversity, Equity and Inclusion matters, is demonstrated by setting and
proposing new ambitious targets and related key achievements, such as:
Objective
Target
2024 Achievement
Diversity Equity & Inclusion in
Cementir Holding Board of Directors
The number of directors of the less represented gender
shall not decrease below 4 in case of a Board formed
of up to 9 directors (44.8%)
At least 3 directors of which at least 1 independent
director younger than the CEO
At least one director has specific expertise in ESG with
particular focus on social issues
50% from April 2023
5 directors of which 1
independent director &
1 director
Diversity in Global Graduate
program
Having at least 25% for the less represented gender
involved in the program
38% in 2024 edition
Diversity in Emerging Talent
program
Having at least 25% for the less represented gender
involved in the program
29% (result already
achieved in 2022) and
no similar program in
2024.
Diversity in Senior management
team
23
Less represented gender is at 19% (May 2022) and we
target to increase by 1%
20% at 31 Dec 2024
Furthermore, the organisation has always been committed to appreciating and valuing diversity in all HR
processes such as hiring, management, evaluation and development, by avoiding any discriminatory approach,
starting from the management of recruiting processes and in leadership and talent development programmes.
23
The senior management team is: • Group COO • Group Chief of each Professional Family • Head of Region/BU Managing Director of the
local subsidiaries • Their first direct reports In this category are not included the Group CEO (Cementir Holding Board of Director member),
the assistant roles and the positions related to non-core business activities (e.g. Waste, precast, ...). The calculation is according to the
Dutch DE&I reporting system (SER).
Directors’ Report 2024 Cementir Holding NV | 283
Definitions
Revenue-generating functions: Refers to line management roles in departments such as sales, or that
contribute directly to the output of products or services. It excludes support functions such as HR, IT, Legal. May
also be referred to as roles that have P&L responsibility.
STEM: Science, technology, engineering and mathematics. STEM workers use their knowledge of science,
technology, engineering or mathematics in their daily responsibilities. To be classified as a STEM employee, the
employee should have a STEM-related qualification and make use of these skills in their operational position.
Positions include, but are not limited to: computer programmer, web developer, statistician, logistician, engineer,
physicist, and scientist.
Commitment To Diversity Equity And Inclusion (Dei)
The Group Diversity, Equity and Inclusion Policy was released with the aim of strengthening the Company’s
commitment which is considered one of its core values.
The purpose of this policy is to establish guidelines that promotes a culture of respect regarding diversity, labour
equality, non-discrimination and inclusion. The main objectives of this policy are:
• Attract, hire and retain diversified talent for all positions within the Company;
• Facilitate an inclusive working environment that ensures that all people within the Company feel
accepted and integrated;
• Promote equal opportunities in all areas of the Company;
• Fostering collaboration respecting communication among members of all the teams within the Group;
• Promoting the achievement of UN’s Agenda 2030 in particular the goals n°5 (Gender Equality) and n°10
(Reduce Inequalities).
The Group employees’ diversity, equity & inclusion policy is communicated to all employees, without distinction
of level, in the most appropriate manner and in accordance with local rules and practices.
In 2023 the Company launched specific training related to Diversity, Equity and Inclusion with the aim to inform
all employees and having the purpose to strength
the creation of a safe and equitable workplace for all having a particular focusing on coalition and empathy, as
key concepts for an inclusive behaviour. In 2024 the training continued and all new hired has to complete a
training related to the Group employees’ diversity, equity & inclusion policy.
Further details can be found under the paragraphs ‘Cementir Academy’ and ‘Diversity, Equity and Inclusion’.
In its commitment, the Group Diversity, Equity and Inclusion Policy clearly states that the Company undertakes
to respect the basic rights of all employees, without discrimination based on race, disability, ethnicity, colour,
pregnancy, gender, language, nationality or any other reason such as religion, age, sexual orientation and
identity, political opinion, social status and disability.
As laid down in the Group Human Rights Policy, the Company’s activities are based on respect for global human
rights, which are a non-negotiable fundamental value of its culture and corporate strategy which are in line with
the sustainability model foreseen by the international standard SA8000. Cementir Holding promotes respect for
human rights and adherence to applicable international standards with its Partners and Stakeholders and bases
its governance model on the recommendations contained in the United Nations Guiding Principles on Business
and Human Rights, implementing the “Protect, Respect and Remedy” Framework. The latest developments,
activities carried out and the performance achieved by the Company are regularly shared with the Stakeholders.
Prohibition of discrimination at the workplace: Cementir is committed to guarantee that each employee is treated
with fairness, respect and dignity. In accordance with Cementir's Code of Ethics, Code of Conduct and the Group
employees’ diversity, equity & inclusion policy.
Directors’ Report 2024 Cementir Holding NV | 284
The Company will support its employees in denouncing a violation of the law in terms of discrimination and
consequently not respecting the Group Policy in force.
Any alleged human rights violations may be reported through the whistleblowing system as per other types of
infringement (please refer to https://www.cementirholding.com/en/governance/ethics-and-compliance).
It has to be highlighted that no discriminatory practice based on race, ethnicity, colour, creed, religion, gender,
age, national origin, marital status, sexual orientation, gender identity or expression, disability, veteran status or
any other characteristic protected by applicable federal, state or local laws will be tolerated by the Company.
Cementir is committed to provide to all its employees equal opportunities for advancement and development
without any sort of discrimination.
The material sub-topics covered in this ESRS include working conditions, equal treatment and opportunities for
all, other work-related rights, which are identified for their potentially significant impact on the Group’s
employees.
With respect to working conditions, every operating unit integrates economic, social and environmental
responsibility in its own activity, while cooperating constantly with the other units. The main management
systems adopted by the Group include ISO 9001 and ISO 45001 certifications (all Cement production sites are
certified). This system is designed to prevent work-related incidents and illnesses, ensuring a safe working
environment for all employees. The company has completed its Management Systems Certification Programme,
reflecting its dedication to maintaining high health and safety standards. Moreover, the Company is inspired by
the requirements of Standard SA8000® as a reference tool for managing Social Responsibility at its Affiliates
and along the supply chain.
In addition, Cementir has implemented a global Health and Safety Network, coordinated by the Corporate
Health, Safety & Environment function. This network facilitates the sharing of expertise, best practices, and
initiatives across all organizational levels, promoting a culture of safety throughout the company.
Moreover, with reference to individual incidents, Cementir constantly monitors and works to avoid any type of
issues aiming to mitigate this material negative impact, through the HSE Policy and training on awareness
related to injuries and accident
Equal treatment is ensured thanks to the company openness to every opportunity for professional and personal
growth. Valuing the cultural richness of its organizational context. Cementir’s corporate culture is deeply rooted
in the value of inclusion, enabling it to be a global, authentically international, and multicultural organization.
Diversity and inclusion are considered distinctive characteristics that the company promotes throughout the
entire corporate life cycle, from recruitment to professional and managerial development, including all hiring,
management, evaluation, and development processes.
Understanding and respecting the cultural and religious identities of employees are essential to ensuring a
collaborative and harmonious working environment as an equal opportunity employer.
In addition, respect for human rights is a fundamental principle at Cementir, as outlined in its Human Rights
Policy. This policy guides management and employees in ensuring compliance with international standards,
including the United Nations Declaration of Human Rights, ILO Conventions, and OECD Guidelines. The
company recognizes the importance of fostering and maintaining a responsible and safe work environment for
all employees.
Cementir's commitment to human rights is further demonstrated by its membership in the UN Global Compact
since 2022. This membership reflects the company's dedication to responsible business practices and aligns its
operations with global sustainability standards.
Furthermore, Cementir has established a whistleblowing mechanism, allowing employees, collaborators,
administrators, and third parties to report potential violations or non-compliant behaviours related to applicable
Directors’ Report 2024 Cementir Holding NV | 285
regulations, including those concerning human rights. This system ensures that individuals can exercise their
freedom of expression without fear of retaliation.
Through these policies and initiatives, Cementir demonstrates a robust commitment to maintaining high
standards of health and safety and upholding human rights across its global operations.
Cementir works constantly to protect its own workforce to prevent and mitigate negative impacts. Material
negative impacts related to child, forced and compulsory labour are mitigated and monitored thanks to the Group
Human Rights Policy and the audit activities carried out by the Internal Audit Department.
To reinforce its commitment, the Company makes public its awareness asserting that there are cultural
differences and similarities between people, without assigning them a value, positive or negative, better or
worse. Cultural sensitivity implies that both groups understand and respect each other's characteristics.
Cementir Group Human Rights Policy refers to respect the basic rights of all employees, explicitly stating that
discrimination such as race, ethnicity, colour, creed, religion, gender, age, national origin, marital status, sexual
orientation, gender identity or expression, disability, veteran status, pregnancy, language, nationality, political
opinion or other characteristics protected by applicable federal, state or local law, will not be tolerated.
In addition to the above, it has to be highlighted that in the Group Policy related to Diversity Equity and Inclusion,
the Company encourage to denounce any form of discrimination through the use of the whistleblowing channel
considered as a powerful tool to avoid any judicious action. The Internal Audit Department will be responsible
to investigate, analyse and report the case, if the complaint will be confirmed, action to improve process will be
set and monitored by Internal Audit Department with the aim to mitigate the negative impacts generated by
sustainability issue.
Please, refer to ESRS 2 General Information chapter, to focus on the Board Diversity Policy.
Audits Performed In 2024
Beside the Human Rights self-assessment, as already implemented in 2022, the Diversity, Equity and Inclusion
Self-Assessment was launched as part of the standard internal audit process to internally identify and mitigate
any risks related to Diversity, Equity and Inclusion.
Starting from 2022, the Internal Audit Department has monitored the application of Cementir’s core equity and
fairness principles to:
• hiring processes;
• compensation levels;
• annual salary reviews and promotions,
• work-life balance arrangements;
• events to foster interest in technical careers among women.
In 2024, the activity continued and has been carried out in all the Group’s companies, covering the 100%
24
of
Cementir’s workforce at worldwide level. The countries that have been involved were the following: Belgium,
Denmark, Norway, Türkiye, United States, China, Malaysia, Egypt, Italy, France, Iceland, Australia and Poland.
The analyses carried out highlighted that internal operations are in line with internationally recognised Diversity,
Equity and Inclusion principles, and no risks were identified during the audit activities.
24
Exception made for the company AB Sydsten, a joint venture for which Cementir is not in charge of the operating
activities.
Directors’ Report 2024 Cementir Holding NV | 286
Human Rights
Commitment
Cementir pursues and supports compliance with internationally proclaimed human rights. The Company’s
sustainable development strategies pursue various objectives, including continuous improvement in the
environmental and occupational health and safety conditions affected by its own activities. The Company’s firm
belief is that, through the application of the policy, Cementir can offer a humble contribution to global commitment
for ensuring present and future generations’ conditions and tools for a better quality of life.
As laid down in the Group Human Rights Policy, the Company’s activities are based on respect for global
human rights, which are a non-negotiable fundamental value of its culture and corporate strategy. Moreover,
Cementir’s adherence to the UNGC and support for the SDGs are indeed the result of the Company’s loyal
commitments to both the promotion and protection of respect for universal human rights and to openness to
cooperation. The policies and principles adopted by the Company are not just in line with the Ten Principles of
the UNGC but also instrumental for achieving the SDGs set under the Agenda 2030. In particular, the “Code of
Ethics” and the “Group Human Rights Policy”, combined with the Company’s enthusiasm for cooperation, are
significant importance to Cementir in offering its humble contribution to achieve the SDGs for “Decent Work and
Economic Growth”, “Reduced Inequalities” and “Partnerships for the Goals” by 2030.
The Cementir Group Human Rights Policy aims at supporting and guiding management and employees in
achieving the above-mentioned goals. It applies the founding principles of:
• The United Nations International Charter (UN):
• The Universal Declaration of Human Rights
• The International Convention on Civil and Political Rights
• The International Convention on Economic, Social and Cultural Rights
• The fundamental conventions of the International Labour Organization (ILO) - n. 29, 87, 98, 100, 105,
111, 138, 182 - and the Declaration on Fundamental Principles and Rights at Work
• The UN Convention on the Rights of the Child
• The ILO Conventions n.107 and n.169 on the Rights of Indigenous and Tribal Peoples
• The European Convention on Human Rights.
Cementir promotes human rights within its business relationships and adherence to the same human rights
standards by its contractors, suppliers and business partners.
Since 2020, an online training course has been set and launched focusing on the principles described in the
Cementir Group Human Rights Policy and further other details can be find the local procedures.
Audits Performed In 2024
In 2019, as part of Cementir’s internal initiatives and with the aim to identify and mitigate any risks related to
human rights, Internal Audit decided to include in the standard internal audit process a checklist related to human
rights.
Starting from 2020, the Internal Audit Department continued during the following years to verify the effective
compliance of each company in the following areas: Child Labour, Forced Labour, Non-Discrimination,
Conditions of Employment, Security and Supply Chain Management, Community Relationship, Customer
Management and Diversity, Equity and Inclusion. The results of all the e assessments carried out have been
included in the annual sustainability reporting process of Cementir Group to reinforce the commitment to operate
responsibly respecting human rights.
In 2024, the activity has been carried out in the following countries where the Company operates with its
operations:
Directors’ Report 2024 Cementir Holding NV | 287
Belgium, Denmark, Norway, Türkiye, United States, China, Malaysia, Egypt, Italy Poland, France, Australia,
Iceland.
The total coverage of the assessment carried out in 2024 was equal to 100% of Cementir’s workforce.
The analyses conducted highlighted that internal operations are in line with internationally recognised human
rights and no risks were identified during the audit activities.
It has to be noted that any alleged human rights violations as per all other types of potential violations can be
reported through the whistleblowing system.
Recognising the importance of the entire value chain, Cementir is committed to ensure that everyone integrates
and respect the highest standards according to the Company’s policies. For further details refer to the “Supplier
Code of Conduct” paragraph within the Environment section of this report.
Governance
The Group Management Team (GMT)
25
– formed by Corporate and regional representatives - ensures
adequate monthly monitoring of performance and progress of action plans put in place by each operating
company to ensure constant and homogeneous improvement. The Corporate Health, Safety & Environment
Function supports the Group Management Team in performance analysis and evaluations and proposes
changes to Group policies.
The Corporate Health, Safety & Environment Function is in charge of the definition of guidelines, rules and
standards at Group level and of supervising the ongoing implementation, management, and communication of
the same. It coordinates local H&S managers functionally and provides advice to Regional senior management
on the implementation of policies and procedures including the identification of improvement opportunities in
operating activities. The Group Guidelines, Rules, and Standards on Health and Safety Management – which
are periodically updated - indicate the expected requirements, according to recognized best practices in the
industry. The guidelines are focused on the ISO 45001 systemic approach.
BOX: The Group’s golden rules of safety
Our life-saving rules impact awareness and behavioural improvements:
1 - All work must be risk assessed before starting. According to the results of the assessment all identified
measures must be implemented and verified.
25
The GMT, composed of the Group COO, CFO, Sales Officer, Procurement Officer, Technical Coordinator Officer, Information Technology
Officer and Head of Regions, supports the Group CEO’s decisions on relevant topics, defines operating guidelines and plays a vital role in
ensuring that sustainability efforts are integrated with economic and business objectives.
Directors’ Report 2024 Cementir Holding NV | 288
2 - All energy sources must be de-energized, isolated and locked-out before a work is started.
3 - All safety protective devices and equipment must not be removed or bypassed during the work. All necessary
Personal Protective Equipment received for a given task must be used properly.
4 - All unsafe behaviours and conditions must be avoided. Observe safe behaviours and conditions and be
proactive.
5 - All incidents must be communicated to conduct necessary investigation and reporting activities. Lesson
learned is a key for improvement.
Directors’ Report 2024 Cementir Holding NV | 289
The global interconnected Health and Safety Network, coordinated by the Corporate Health, Safety &
Environment Function as technical area, supports all organizations to share competences, good practices and
initiatives. The Network consists of all managers/coordinators on Health & Safety at site/business level which
support the line management technically in the implementation of management system at local level (e.g. risk
factors identification and assessment, safety operating procedures, operational standards and controls, incident
investigations, inspections, etc.). The Network deliverables are constantly distributed to all workers through local
Health & Safety (e.g. safety alerts and lesson learned from undesired events, common rules and standards,
valuable safety behaviours, etc.). During 2024 the Network met 11 times as in 2023.
Every site/business in each Region has appointed its own H&S Committee chaired by the relevant senior
manager (e.g. plant manager) with the participation of line managers, H&S manager and workers
representatives. Additional monitoring and control governance tools are provided at the operating department
level.
A set of common leading indicators are set across the Group. The monitoring of action plans and the
measurement of their effectiveness, through these indicators, is making it possible to better understand the link
to results in terms of “Zero accident strategy” implementation.
In 2024, the Health and Safety Balanced Scorecard tool - developed by the Corporate Health, Safety &
Environment Function - was evaluated for three cement plants. As planned, we also extended the evaluation to
four ready-mix concrete companies. This tool is meant to verify the management levels achieved considering
the objectives set and the Group minimum requirements measured by lagging and leading indicators.
Specific Health and Safety targets are considered in short-term remuneration for representatives and
managers based on risk level of the different business.
BOX: Safety process improvements
At the end of 2024 we launched a strategic project with the aim to implement a unique Group platform cloud-
based to manage key H&S processes, including mobile App, for all company/business/plant. Processes involved
are Control of Work (e.g., work permit and isolation management), incident management, inspection and audit
management, action management. The objectives of the project are:
• Standardize and harmonize the main field risk-related processes facilitating their full implementation
starting with permit to work process.
• Improve efficiency and effectiveness in reporting, analysis and evaluation of all undesired events
(accidents, near misses, unsafe behaviours, unsafe conditions, etc.) and facilitate the increase of worker’s
awareness through a smart approach.
• Harmonize the inspection process reducing time for completion and to be more effective.
• Document, notify, track, and escalate corrective actions assigned using action plan: clear
responsibilities, recorded route, timely completion.
Manage statistics to prevent and for continuous improvement. Integrated dashboards on lagging and leading
KPIs.
In 2025 we will be committed to the full implementation of the platform
Directors’ Report 2024 Cementir Holding NV | 290
S1-2 Processes for engaging with own workers and workers’ representatives about impacts
Group People Survey
The Cementir Group’s HR Strategy, which serves as an enabler of our Group’s Business Strategy, is focused
on three main pillars: Group Integration and Identity, Organizational Effectiveness and Agility, and People
Development and Engagement.
In line with the Group HR Strategy, and to better identify actual and potential material impact topics, every two
years the Company releases the Group People Survey "Your Voice”. The aim of this survey is to assess
employee engagement and enablement within the organization and compare the results with previous findings
and additional market benchmarks.
For this purpose, several key indicators were identified to measure different aspects of employee engagement,
also considering international benchmarks.
To ensure the involvement of the entire Group population, a dedicated communication plan was implemented
throughout the key phases of the survey:
• Pre-survey: to announce the survey and prepare employees;
• During the survey: to provide instructions, operational support, and encourage participation;
• Post-survey: to communicate the results, identify gaps, and define the subsequent action plan.
The feedback collection process took place between May and June, achieving an overall participation rate of
92% (+4% compared to 2022). Based on the results, a global and local action plan has been defined for
implementation in 2025. The main engagement and enablement indicators have improved by 2% compared to
the last Group survey conducted in 2022.
With reference to the feedback received through the survey, Cementir has defined specific action plans (at local
and global level) with different priority levels which have been approved.
Several areas for improvement have been identified: Communication & Collaboration, People Growth, Respect
& Recognition, Efficiency & Innovation.
Taking into account the main requests made by employees, Cementir has defined the key actions to be
implemented with different levels of priority, ensuring specific actions tailored to local needs and regulations for
the Welfare component.
The Group is committed to the deliver the abovementioned action plans along 2025 and to launch a new People
Survey in 2026.
According to specific needs and regulations, the Company set specific actions related to local environments as
per the actions related to “Respect and Recognition” that have been managed at local level.
Directors’ Report 2024 Cementir Holding NV | 291
ACTION PLAN: from Global to local
Talent Review and Succession Plans For Key Positions Within The Group
In 2024, the annual Group talent review was conducted to gain a comprehensive view of performance trends
and assess potential readiness for advancement into higher or more complex roles.
This process enabled the Group to identify key individuals for retention through targeted development plans and
to pinpoint critical positions that need to be filled from a pool of potential successors in the short, medium, and
long term, ensuring business continuity. The Group’s succession planning efforts for critical roles continued,
strengthening the leadership pipeline. The list of critical positions was reviewed and expanded in alignment with
the Business Plan and key strategic objectives.
Additionally, an in-depth analysis of internal successor mapping results highlighted improvements in key
performance indicators (KPIs), reducing the potential risk of business discontinuity. These insights informed key
talent development decisions, including Group development programs, management changes, and international
mobility initiatives.
Remuneration Strategy
The compensation policy emphasizes the importance of attracting talent while recognizing the value of our
employees, fostering a performance-driven culture aligned with our corporate values. It supports the company's
business strategy, ensures internal equity, and motivates and develops our people by rewarding top performers.
Cementir adopts a competitive compensation system that balances strategic objectives with the recognition of
employee contributions. By using both short and medium/long-term variable compensation components, the
policy aligns employees' interests with the primary goal of value creation and the achievement of financial and
sustainability targets.
A significant portion of remuneration is tied to the achievement of defined performance objectives through the
short-term incentive system (STI) and the long-term incentive system (LTI).
The 2024 Remuneration Policy is consistent with the Group’s governance model and the Code of Ethics,
available on the company’s website www.cementirholding.com. This approach aims to attract, motivate, and
retain highly skilled personnel, while aligning management’s interests with the long-term goal of creating value
for shareholders.
Objectives are cascaded across different countries and organizational levels, reinforcing the Group’s unified
approach to the short-term incentive system. The managerial population’s commitment to short-term objectives
Directors’ Report 2024 Cementir Holding NV | 292
remains focused on economic and financial management, ensuring proper resource allocation and alignment
with the Group’s strategic direction.
Please, refer to the ESRS E1 section for further information with respect to the STI Program.
Non-Compensation Benefit
The Group provides several packages of non-compensation benefits aimed at boosting employee engagement,
improving employee retention, attracting top talent in the market, and increasing job satisfaction. These benefits
are designed to enhance employees’ lives both inside and outside of work. They are a crucial part of Cementir’s
commitment to creating a supportive and rewarding work environment. Different packages are provided
depending on the particularities of each country where the Group operates, taking into account different local
customs, social needs, and legal requirements.
In the table below, the non-compensation benefits have been grouped by type, and the total number of
employees eligible for these benefits in 2024 has been reported.
Type of benefits
Total eligible employees (Employees
eligible/ Total n. of Employees)
INSURANCE (e.g. health insurance, life insurance, injury insurance)
100%
PENSION FUND (e.g. private pension fund)
94%
HOUSE ALLOWANCE (benefit that is given to employee, on a regular
basis, in order to help him/her pay for the house)
5%
FUEL SUPPORT/ALLOWANCE (benefit that is given to employee, on a
regular basis, in order to help him/her pay for the fuel/reimbursement of
fuel expenses sustained by employee)
9%
MEAL & CANTEEN (benefit that is given to employee, on a regular basis,
in order to help him/her pay for the meal/ canteen service given to the
employee)
90%
COMPANY CAR (company car given to the employee)
11%
OTHER BENEFIT (broad range of benefits given to employee for specific
reasons (e.g. welfare, prepaid vouchers for purchasing different from
food, birthday, climate conditions)
60%
Directors’ Report 2024 Cementir Holding NV | 293
Industrial Relations
Operating in different countries around the World, the Group’s companies are subject to different labour
regulations and, consequently, the contracts of Group employees vary according to the country in which they
were hired.
In the table below, the rate of employees covered by collective bargaining in the counties with more than 10%
of the total group employees is reported:
Collective Bargaining Coverage
Social Dialoge
Coverage Rate
EEA Employees
Non EEA Employees
Workplace Representation
(EEA only)
0-19%
20-39%
40-59%
TURKEY
60-79%
DENMARK
DENMARK
80-100%
BELGIUM
BELGIUM
This rate varies from country to country depending on the applicable local legislation and on the job classification
categories. The employees not covered by collective labour agreement are protected by the application of
minimum wage salaries and the respective national labour agreement, if present - as per the Directive (EU)
2022/2041 of the European Parliament and of the Council of 19 October 2022 that guarantee an adequate
minimum wage in the European Union, promoting collective bargaining on wages. The external market
benchmark is also another powerful tool that we use to ensure the alignment of the whole employee population.
The Cementir Group maintains an ongoing, structured dialogue with the representatives of its companies’
European workers, in compliance with EU regulations and according to the framework adopted by the Group’s
European Company Committee (EWC). Throughout the year, management informed and consulted employees
and trade unions on transnational issues concerning the status of its activities and other significant decisions
that the Group has taken in relation to the business and its employees.
In June 2024, at the Gaurain plant (Belgium), management informed and engaged in discussions with
employees and trade unions on transnational issues related to the status of operations and significant decisions
made by the Group concerning the business and its employees.
During the meeting, key economic and financial results for the period were shared, along with the main ongoing
strategic initiatives, such as the Carbon Capture project in Denmark and the Kiln 4 investment in Belgium, as
well as key outcomes and subsequent challenges in the area of Health and Safety.
The Company manages the Enterprise Risk Management under the current macroeconomic outlook, the
complexity of business, the financial markets instability and the continuous evolution of legislation on law and
regulations between the countries where the Group operates, aiming to have an overview of risk position across
the functions and countries. The risk mapping regarding all internal and external aspects related to the business
(commercial, procurement & supply chain, macro-economic facets), regulatory features (insurance, tax, general
regulations) and values (ethics, social-environmental) of the Company is performed at Group level and
continuous monitoring activities are in place. The risks identified are subjected to the qualitative-quantitative
assessments which led to the governance definition and management structures and the preparation of
mitigation and/or related remediation plans and investment. The risk analysis activity leads to the definition of
risk reduction/elimination actions pursued at each country/function and implemented/kept under control by
process owner identified. The aim is to assess and monitor properly the risks which could affect Company’s
value and goals achievement within all the Group Companies and related stakeholders working or having a
business with the Company, aiming to prevent and neutralize them in a systematic and structured way before
Directors’ Report 2024 Cementir Holding NV | 294
the events take place by setting ahead a specific strategy for this end; or rather to take advantages of potential
additional opportunities by aligning business strategy with events identified.
S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns
Code of Ethics, Human Rights, Diversity, Equity and Inclusion Awareness Survey
In December 2024, the Internal Audit team has renewed its commitment to monitoring progress in Human Rights
and DE&I by launching, for the second time, the Code of Ethics, Human Rights, Diversity, Equity and Inclusion
Awareness Survey.
The survey was addressed to all the employees with an account (coverage: 79% of Cementir’s employees) with
the aim of verifying the awareness of all employees regarding the contents of the Code of Ethics, the Group
employees’ diversity, equity & inclusion policy, the Group employees’ Human rights policy and the
whistleblowing system. Employees were invited to answer both multiple choice and open questions on the
company’s approach and behaviour about the application, respect and dissemination of those important topics.
The response rate was over 20% and all the answers collected have been discussed with the Top Management
and a resulting action plan has been set up to monitor the sensitive and lacking areas.
The findings of this survey, presented to each region, have been integrated into the Human Rights Audit Report
to better align every Management Action Plan.
Thanks to Internal Audit Department and the audits carried out it is possible for Cementir Holding to provide and
contribute in giving advices and solution in case of a material negative impacts. Together with Human Resources
Department, they are responsible to monitor and verify the correct application of the remediation plan to mitigate
the negative impact identified. Furthermore, it is possible to all stakeholders to denounce through the grievance
mechanism and in particular thanks to the Whistleblowing Management Procedure to denounce and complaint
in case a material negative impact has been generated. The aim of the Internal Audit is to analyze the facts
denounced and set an action plan to mitigate the risk/impact directly supporting the own workers of the
Company.
A whistleblowing channel is promoted inside and outside the Company, together with policies available on the
intranet and on the Company public website for all types of stakeholders, not only for its own workers.
It refers to any report concerning conduct, including omissions, that does not comply with laws and regulations,
in any case applicable to the Cementir Group, as well as with the system of rules and procedures in force at the
Cementir Group (included the Code of Ethics) or possible frauds.
In particular, this Whistleblowing Management Procedure is applicable to situations in which an individual (both
internal or external to Cementir Group) raises concern about a risk, malpractices, wrongdoing or possible frauds
that affects members of Cementir Group.
More details are available in the Whistleblowing Management Procedure.
For further details refer to section “The Code of Ethics” of the Management Report.
During the induction phase for new hires, workers are required to review all policies, sign the contract agreement,
and participate in mandatory training courses. Moreover, the Company utilizes internal communications and
awareness campaigns as additional tools to inform its employees.
Specifically, with reference to Whistleblowing Management Procedure, Cementir ensures that all workers are
made aware of the grievance mechanism. This process begins during the induction phase for new hires, where
workers are required to review all policies, sign the contract agreement, and participate in mandatory training
courses.
Directors’ Report 2024 Cementir Holding NV | 295
Additionally, a whistleblowing system has been in place since 2013 and has been continuously updated, as the
Group recognizes its importance as an effective tool to prevent illicit activities and to uphold individuals' freedom
of expression as a fundamental human right. As a result, employees, collaborators, administrators, and third
parties can report—without fear of retaliation or intimidation—any information regarding potential violations, non-
compliance, or unlawful activities.
The receipt, analysis, and investigation of reports are conducted by the Internal Audit Department in full
compliance with the principles outlined in the International Standards for the Professional Practice of Internal
Auditing and the Code of Ethics issued by the Institute of Internal Auditors (IIA), as well as the Cementir Group's
Code of Ethics. Cementir guarantees that the identity of the whistleblower will not be disclosed to anyone outside
the Internal Audit Department or any other department involved in resolving the whistleblowing case without the
explicit consent of the whistleblower.
At the end of 2024 the Company proceeded with a review of the Group Whistleblowing Management Procedure
in order to align it and update it with the new applicable legislations and the new reviewed procedure will be in
force starting from the beginning of the 2025
For further details about the number of complaints, please refer to the Governance section, “The Code of Ethics”
paragraph.
S1-4 – Taking action on material impacts on own workforce, and approaches to mitigating material risks
and pursuing material opportunities related to own workforce, and effectiveness of those actions
Cementir’s efforts regarding health and safety focus on building a robust HSE system, fostering safety
awareness, and reporting and analysing root causes to prevent incidents. These ongoing actions aim to prevent
fatalities and health and safety incidents among employees.
Furthermore, through the Enterprise Risk Management and Internal Audit teams, which regularly conduct audits
on social aspects such as human rights, working conditions, HSE, and diversity and inclusion, the Company has
established an internal control system that supports management in defining strategies and mitigating risks
related to its workforce.
For further details refer to sections “Commitment to fighting corruption”, “Commitment to diversity equity and
inclusion (DEI)”, “Diversity, equity and inclusion audits performed in 2024” of the Financial Report, and to the
paragraphs “Commitment” and “Audits performed in 2024” of Human Rights section of this Sustainability
Statement.
With regard to the assessment of potential negative impacts, all policies, procedures and activities implemented
by the company are aimed to prevent and mitigate the identified negative impact identified by the double
materiality. Every employee needs to adhere to the Code of Ethics and Conduct, and online training are available
for all personnel. The majority of employees working for the Company conducted the training and it is also
included in the induction for new employees.
For further details, especially about the action planned to pursue material opportunities related to Cementir own
workforce, refer to the “Risk and opportunities” section in the Management Report.
Enterprise Risk Management is enterprise-wide aiming to identify, analyse and monitor risks in different areas
linked to everyday activities of the Company, therefore also environmental, social, economic/financial and
business ethics risks that are directly or indirectly attributable to the Company. Assessments and monitoring
activities are conducted on possible and potential political, financial, environmental and social risks, including
those related to the respect of human rights and labour laws. Regarding this the Company monitors continuously
the application of internal regulations in relation to financial, social (particular focus on human and workplace
rights), environmental and business ethics on Company’s offices and sites, it occurs through the periodic control
activities and audits performed by Internal Audit Department.
Directors’ Report 2024 Cementir Holding NV | 296
The Company manages the Enterprise Risk Management under the current macroeconomic outlook, the
complexity of business, the financial markets instability and the continuous evolution of legislation on law and
regulations between the countries where the Group operates, aiming to have an overview of risk position across
the functions and countries. The risk mapping regarding all internal and external aspects related to the business
(commercial, procurement & supply chain, macro-economic facets), regulatory features (insurance, tax, general
regulations) and values (ethics, social-environmental) of the Company is performed at Group level and
continuous monitoring activities are in place. The risks identified are subjected to the qualitative-quantitative
assessments which led to the governance definition and management structures and the preparation of
mitigation and/or related remediation plans and investment. The risk analysis activity leads to the definition of
risk reduction/elimination actions pursued at each country/function and implemented/kept under control by
process owner identified. The aim is to assess and monitor properly the risks which could affect Company’s
value and goals achievement within all the Group Companies and related stakeholders working or having a
business with the Company, aiming to prevent and neutralize them in a systematic and structured way before
the events take place by setting ahead a specific strategy for this end; or rather to take advantages of potential
additional opportunities by aligning business strategy with event identified.
Please refers to audit carried out on Human Rights, Diversity Equity and Inclusion.
For the management of material impacts the Enterprise Risk Management is responsible to focus on actual or
potential positive or negative outcomes considering also impacts across the entire value chain and not just within
the Company's direct operations. It has to be noted that issues that are initially impact material can become
financially material, thanks to the monitoring of material impacts it is possible to avoid future financial risks and
to identify new uncover opportunities encouraging the Company to create and preserve value in the long term.
The members of the Enterprise Risk Management are responsible to manage the material impacts related to
their functions and activities with the aim to prevent or mitigate the material impacts leading to a more sustainable
and resilient business strategies.
In 2024, the overall turnover rate decreased to 14%, down from 16% in 2023.
After instable years the turnover rate of the Company became lower and thus due to better market conditions
and specific actions put in place by the Company with the support of the results of the People Survey.
Cementir is committed to continuing the analysis on a yearly basis in order to identify the main reasons for
leaving and consequently possible actions and strategies to mitigate the turnover rate.
Metrics and targets
S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and
managing material risks and opportunities
The process of setting and monitoring health and safety targets takes into account factors such as past
performance analysis, the company's risk profile, and alignment with Cementir's strategic initiatives. This
ensures that the targets are both relevant and achievable.
In addition, the Top Management is responsible for cascading and ensuring that workplace practices are in place
to give effect to the Diversity, Equity and Inclusion Policy.
In order to ensure its adoption as well as the presence of workplace practices to give effect to it, the Cementir
Holding Board of Directors sets mid/long-term targets related to Diversity, Equity and Inclusion and reviews them
on a yearly base.
In details, according to the internal timeline the BoD define the annual target related to Diversity, Equity and
Inclusion, for the Board itself and the Senior Management. Targets can be extended to specific clusters or all
employees, and additional targets can be defined in order to reinforce the commitment of the Group to Diversity,
Equity and Inclusion matters.
Directors’ Report 2024 Cementir Holding NV | 297
Group HR define an internal action plan to support the achievement of the above-mentioned objectives with the
support of the relevant departments at Group and local level.
Group HR is responsible for monitoring and reporting to the Board about the progresses in achieving objectives
set by the Board. It is also responsible in case of additional targets defined.
The Group’s Sustainability Statement is identified as the tool to monitor and report the information about
progresses towards achieving diversity, equity & inclusion application in Cementir Group (e.g. men and women
in the Board, in senior management positions, etc.), in addition to any reporting obligation under applicable laws.
Eventual discrimination cases reported against the policy will be examined by the Ethics Committee while the
employees have the possibility to report them using the whistleblowing channels.
Although Cementir does not directly involve the workforce in setting these targets, sharing monthly performance
updates helps keep everyone informed and aligned with the established goals.
A full overview of the 2025-2027 Industrial Plan strategic priorities, is available on the company website.
Please consider that the comparative metrics as reported in the ESRS2 – General Information, for the years
reference 2023 and 2022 of this ESRS Standard are included in this Report on the Annex Section. Furthermore,
it has to be considered the measurement of the metric related to characteristics of own employees is not
validated by an external body other than the assurance provider.
S1-6 – Characteristics of the undertaking’s employees
The Cementir Group workforce comprises 3,123 employees (considering headcount for Société des Carrières
du Tournaisis SA (SCT) at 100%), spread across 14
26
countries and 5 continents.
The Group’s workforce is mainly composed of personnel hired with permanent and full-time contracts.
With reference to the total number of employees by headcount please refer to the table disclosed in paragraph
50a.
Total
M
F
Total
2712
411
3123
Employee head count in countries where the undertaking has at least 50 employees representing at
least 10% of its total number of employees.
Countries
Total employees 2024
Belgium
480
Turkey
805
Denmark
794
26
The following countries have been considered: Denmark, Norway, Sweden, Poland, Iceland, France, Belgium, USA, Turkey, Egypt,
Malaysia, Australia, China, Italy.
Directors’ Report 2024 Cementir Holding NV | 298
Information on employees by contract type, broken down by gender and by Region (head count or FTE)
(reporting on full-time and part-time employees is voluntary).
Permanent
Executive
Manager
White Collar
BC
M
F
M
F
M
F
M
F
China
-
-
8
2
35
7
74
8
Malaysia
2
-
7
3
38
33
87
1
Australia
-
-
3
-
-
-
-
-
Belgium
2
-
34
8
79
30
210
1
France
-
-
1
-
21
4
1
-
Egypt
1
-
18
2
21
9
16
-
Turkey
2
-
48
7
163
39
539
4
Denmark
2
-
45
9
150
82
443
14
Norway
-
-
9
5
23
8
63
5
Poland
-
-
1
1
3
3
-
Sweden
2
-
3
3
21
9
65
7
Iceland
-
-
1
-
3
1
4
-
Italy
23
4
17
7
11
15
-
-
USA
2
-
41
5
17
18
114
1
TOTAL
36
4
236
51
583
258
1,619
41
Fixed Term or Temporary
Executive
Manager
White Collar
BC
F
M
F
M
F
M
F
China
-
6
-
15
20
32
15
Malaysia
-
2
-
3
1
14
-
Australia
-
1
-
1
-
-
-
Belgium
-
4
-
30
13
69
-
France
-
-
-
5
-
1
-
Egypt
-
4
-
1
-
1
-
Turkey
-
-
-
-
1
2
-
Denmark
-
-
-
8
6
35
-
Norway
-
-
-
-
-
2
-
Poland
-
-
-
-
-
-
-
Sweden
-
-
-
-
-
-
-
Iceland
-
-
-
-
-
1
-
Italy
-
-
-
-
1
-
-
USA
-
-
-
-
-
-
-
TOTAL
-
17
-
63
42
157
15
Directors’ Report 2024 Cementir Holding NV | 299
Permanent
Fixed Term or
Temporary
Non Guaranteed Hours
Employees
Grand
Total
M
F
Total
M
F
Total
M
F
Total
M+F
China
117
17
134
54
35
89
0
0
-
223
Malaysia
134
37
171
19
1
20
0
0
-
191
Australia
3
-
3
2
-
2
0
0
-
5
Belgium
325
39
364
103
13
116
0
0
-
480
France
23
4
27
6
-
6
0
0
-
33
Egypt
56
11
67
6
-
6
0
0
-
73
Turkey
752
50
802
2
1
3
0
0
-
805
Denmark
640
105
745
43
6
49
0
0
-
794
Norway
95
18
113
2
-
2
0
0
-
115
Poland
5
3
8
-
-
-
0
0
-
8
Sweden
91
19
110
-
-
-
0
0
-
110
Iceland
8
1
9
1
-
1
0
0
-
10
Italy
51
26
77
-
1
1
0
0
-
78
USA
174
24
198
-
-
-
0
0
-
198
TOTAL
2,474
354
2,828
238
57
295
-
-
-
3,123
436 employees left the Company during 2024 with the 16% rate of employee turnover.
New employee hires and employee turnover (determined as FTE at 31st December of each fiscal). The number
of new hires and leaving employees during the course of the year are indicated respectively as “incoming” and
“outgoing”. However, it has to be taken into consideration that the Company avails of temporary labour in order
to meet the unexpected increases in production volumes as well as to compensate the absence of labour during
annual leaves or in cases of sickness leaves.
Directors’ Report 2024 Cementir Holding NV | 300
Therefore, the temporary employees have to be detracted from the amounts of incoming and outgoing
employees for understanding the actual flows of employees during the course of the year. The calculation of the
Group personnel by geographical area, gender and contract type was carried out with respect to the data
received from the various countries.
The table below summarizes the main workforce figures by category as of 31 December 2024.
Executive
Manager
White Collar
Blue collar
Total
M
F
Total
M
F
Total
M
F
Total
M
F
Total
M
F
Total
Total
37
4
41
253
51
304
646
300
946
1776
56
1832
2712
411
3123
S1-7 – Characteristics of non-employees in the undertaking’s own workforce
The Cementir Group workforce comprises 988 contractors. Cementir employs contractors primarily for the
execution of operations inside the quarries and packing operations inside the cement plants. The Group’s
workforce is mainly composed of personnel hired with permanent and full-time contracts
The table below summarizes the main workforce figures by category as of 31 December 2024.
Intern
Quarry
Packing
Activities
Maintenance
Temporary
from
Agency*
Consultant
*Other
Total
Nordic&Baltic
1
-
-
-
28
-
-
29
Belgium
-
-
-
-
7
9
-
16
North America
-
-
-
-
4
-
-
4
Türkey
11
238
65
25
19
1
190
549
Asia Pacific
2
-
36
7
-
1
36
82
HQ
-
-
-
-
-
2
6
8
Egypt
-
-
-
-
28
-
272
300
TOTAL
14
238
101
32
86
13
504
988
S1-8 – Collective bargaining coverage and social dialogue
In 2024 around 61% of employees across the entire Group are covered by collective bargaining agreements in
line with the previous year. This percentage varies from country to country depending on the applicable local
legislation and on the job classification categories.
Industrial Relations also have an active role in the Company’s commitment in terms of health and safety,
characterized by active participation on the part of the union and workers. In December 2024, the number of
employees covered by collective bargaining agreements in the EEA represented by country in which the
Company has significant employment has been represented in table here below:
DENMARK
Percentage of Employees with
Collective Bargaining Agreement
n°
2024
EEA Employees
Number of employees represented
by workers' representative
Number of person
558
Number of total Employees
Number of person
794
Coverage Index
%
70%
Directors’ Report 2024 Cementir Holding NV | 301
BELGIUM
Percentage of Employees with
Collective Bargaining Agreement
n°
2024
EEA Employees
Number of employees represented
by workers' representative
Number of person
507
Number of total Employees
Number of person
507
Coverage Index
%
100%
Outside the EEA, the percentage of the employees covered by collective bargaining agreements by region is
represented in table here below:
Number of Employees with
Collective bargaining agreement
n°
2024
EEA
Employees
Non EEA
Employees
Total
Number of Employees with
Collective bargaining agreement
Number of person
-
378
378
Number of total Employees
Number of person
-
805
805
Coverage Index
%
0
47%
47%
For detailed information about social dialogue (i.e. agreement with Cementir employees for representation by a
European Works Council (EWC), number; and the percentage of Cementir total employees covered by collective
bargaining agreements), refer to the « Industrial Relations” paragraph in “S1-2 Processes for engaging with own
workers and workers’ representatives about impacts” section.
S1-9 – Diversity metrics
The gender distribution with specific reference to Top Management is presented here below:
Executive
Total
MALE
FEMALE
Total
Value
37
4
41
Total %
90%
10%
100%
The top management definition is represented in the table below
Nordic&Baltic
CEO+CFO
Belgium
CEO+EXPAT+DIRECTORS (N-1 Excluded Assistant)
North America
CEO + MD
Türkey
CEO + LOCAL CHAIRMAN
Asia Pacific
CEO + MD + EXPAT
HQ
All employees under Directors' collective Bargaining
Agreement
Egypt
CEO + DIRECTORS (N-1 Excluded Assistant)
Directors’ Report 2024 Cementir Holding NV | 302
The gender distribution of the members of the Board of Directors and the Committees of the Cementir Holding
is shown in the table below. The following chart shows the distribution of the Board of Directors and the
Committees as of December 31 of each of the last three financial years, in terms of diversity by age and gender,
considering for the latter purpose the official gender in the absence of communication of different gender identity.
Diversity of the Board of Directors by age and gender
Composition of corporate
bodies
2024
2023
2022
Men
Women
Total
Men
Women
Total
Men
Women
Total
Board of Directors
Under 30
0
0
0
0
0
0
0
0
0
30-50
0
0
0
1
2
3
1
3
4
Over 50
4
4
8
3
2
5
5
1
6
TOTAL
4
4
8
4
4
8
6
4
10
Of which independent
0
3
3
0
3
3
1
3
4
Audit Committee
Under 30
0
0
0
0
0
0
0
0
0
30-50
0
0
0
0
1
1
0
1
1
Over 50
0
3
3
0
2
2
1
1
2
TOTAL
0
3
3
0
3
3
1
2
3
Of which independent
0
3
3
0
3
3
1
2
3
Remuneration and Nomination Committee
Under 30
0
0
0
0
0
0
0
0
0
30-50
0
0
0
0
1
1
0
1
1
Over 50
0
3
3
0
2
2
1
1
2
TOTAL
0
3
3
0
3
3
1
2
3
Of which independent
0
3
3
0
3
3
1
2
3
Sustainability Committee
Under 30
0
0
0
0
0
0
0
0
0
30-50
0
0
0
0
1
1
0
2
2
Over 50
1
3
3
1
2
3
1
1
2
TOTAL
1
3
4
1
3
4
1
3
4
Of which independent
0
3
3
0
3
3
0
3
3
Directors’ Report 2024 Cementir Holding NV | 303
The age distribution of the employees of the Cementir Holding is shown below
Total
Male
Female
Total
<30
327
56
383
30-50
1.339
232
1.571
>50
1.046
123
1.169
Totale
2.712
411
3.123
S1-10 – Adequate wages
An external provider has been selected to provide salary benchmarks data to assure that a proper compensation
package is offered according to the breadth, complexity and strategic nature of the role held by each employee,
anchoring value to the reference local market. The salary benchmarks are updated on an annual basis. In case
of high inflation, a most frequent update is considered to take into account the inflation impact on the job market.
The salary increase is defined based on the following variables: remuneration fairness compared to local market,
performance rate, inflation of the country and available budgets.
The non-Executives salary review process is managed by the local Human Resources Department, following
the guidelines and timing established by Compensation & Benefits of each region where the company operates.
Cementir Holding develops and adopts retention plan considering general macroeconomic scenario and salary
benchmarks of each country, related updates are periodic performed due to continuous changes of the latter to
address the risk.
With regards to standard salary paid to new hired during the first year in the Company, it must be highlighted
that the total amount provided to the employees is higher than the minimum prescribed by law and no difference
between gender are made.
It provides a reward structure pursuing the correct balance of the monetary component of remuneration and the
enhancement of the non-monetary component, always ensuring the remuneration competitiveness on the labour
market.
The increase of base salary or variable incentive level is decided based on two elements: market positioning
and performance rate, this last as result of Performance Management process
For further information on adequate wages, refer to the « Industrial Relations” paragraph in “S1-2 Processes for
engaging with own workers and workers’ representatives about impacts” section.
S1-11 – Social protection
The Company makes sure that its employees are protected against loss of income resulting from significant life
events, such as illness, workplace injury, parental leave, and retirement, in line with the terms and conditions
outlined in contracts.
At Group Level all employees in all countries are protected against loss of income resulting from significant
life events, such as illness, workplace injury, parental leave, and retirement, with the exception of the following
life events in USA:
- Illness
- Unemployment
Directors’ Report 2024 Cementir Holding NV | 304
N° of Employees NOT
COVERED
USA
Ilness
Permanent employees
198
198
Unemployment
Permanent employees
198
198
S1-12 – Persons with disabilities
Due to legal restrictions under the EU General Data Protection Regulation (GDPR), which applies to all EU
member states and EEA countries, as well as similar personal data protection principles established by national
legislation in the countries where the company operates outside the EU and EEA, it is unable to report all the
number of persons with disabilities within its organization.
For the countries not present in the table, the data cannot be disclosed/collected due to law reason
Country
Male
Female
China
1,17%
0,00%
Malaysia
0,00%
0,00%
Australia
0,00%
0,00%
Egypt
6,45%
0,00%
Turkey
1,86%
1,96%
Italy
0,00%
3,70%
S1-13 – Training and skills development metrics
In 2024, the Group re-launched the Annual Group Performance Management process that involves all
executives, managers and white-collar employees that were hired within the first half of the year. Employees
hired in the second part of the year, will be involved in the process starting from the following year. This approach
enables Cementir to monitor and align employees’ objectives, competencies and development plans with the
Group’s strategic objectives. The Performance Management Process will support the development of a new
perspective on performance evaluation. It is not only a tool for aligning people with business strategy but also a
process that can stimulate constant development of organizational skills and competencies among people.
In 2024 Annual Group Performance Management process each employee received two performance reviews;
the same number of reviews have been received last year and consequently in line with the previous year. The
Annual Group Performance Management Process covered the 67,6% of the total employees.
Employees who receive regular performance reviews:
Employees who receive regular performance reviews
2024
Men
Women
Total
Executives
35
4
39
Manager
247
49
296
White Collars
602
275
877
Blue collars
849
50
899
Directors’ Report 2024 Cementir Holding NV | 305
Employees who receive regular performance reviews
2024
Men
Women
Executives
95%
100%
Manager
98%
96%
White Collars
93%
92%
Blue collars
48%
89%
Cementir Academy
The Group has significantly continued its digital and in-person training activities, developing multiple content
pieces aligned with key regulatory and business developments.
Specifically, the Group has implemented the following Talent Management initiatives, targeting different
segments of the corporate population:
• Confirmed the partnership with LinkedIn Learning, increasing the frequency of courses offered by
both Group and local HR departments while also allowing all white-collar employees to select from a variety of
courses on business, technology, and soft skills. The courses are available in seven different languages and
cover more than 16,000 topics.
• Completed the second edition of the Graduate Program, a global initiative aimed at integrating
outstanding recent graduates into the technical area through an international experience, where they can learn
and develop industry-specific and managerial skills in line with the Group’s way of working.
• Launched the design and planning phase for the second edition of the Training and Development
Program for emerging young talents called “NextGen Development Program” and the first edition of the
Middle Management Program. The goal of both initiatives is to enhance internal talent, ensure their growth
toward managerial positions in the medium and long term, and foster retention through the definition of a specific
career path.
Furthermore, to ensure continuous development activities, specific local training programs have been confirmed,
such as the Graduate Program in Turkey to attract new talent and the Leadership Program in Denmark and
Belgium to retain and develop our managers.
In terms of training, in line with previous years, the Cementir Academy has supported the Group’s strategy
and the professional development of employees by designing and delivering new learning paths and
initiatives in a hybrid format—both online and in-person. The goal is to provide comprehensive training and
development opportunities for all employees. Notable examples include the expansion and enhancement of
courses on Privacy, Cyber Security, and Fraud Prevention, as well as the launch of a dedicated course on
ESG (Environmental, Social, Governance) topics.
Mandatory online training for newly hired employees
Code of Ethics • Cybersecurity • Cybersecurity - Deepfake • Cybersecurity - Ransomware • Cybersecurity -
Spear Phishing • Diversity, Equity & Inclusion • Fraud Management & Whistleblowing System • GDPR (General
Data Protection Regulation) • Human Rights • Leadership model • Performance Management • Privileged
Information • Environmental, Social and Governance.
Directors’ Report 2024 Cementir Holding NV | 306
To ensure the highest level of inclusion and accessibility, courses are mostly delivered in the local language or,
if not already possible, in English. In some cases, these courses have also been extended to manual workers,
with the possibility of multiple attendance.
In 2024, 73,494 hours of training were provided, around 24 hours per employee.
The measures put in place involved the entire Group workforce in a cross-functional and balanced way covering
various roles, as can be seen from the summary table of training hours by professional category.
Training Hours
Executive
Manager
White Collar
Blue Collar
Total
Grand Total
M
F
M
F
M
F
M
F
M
F
M+F
TOTAL
496
58
8,496
1,840
15,665
7,825
37,330
1,785
61,987
11,507
73,494
Training Hours per person
Executive
Manager
White Collar
Blue Collar
Total
Grand Total
M
F
M
F
M
F
M
F
M
F
M+F
TOTAL
13
14
34
36
24
26
21
32
23
28
23.5
The hours of training provided fall into various categories, ranging from Code of Ethics training to Health & Safety
training, to further specific training such as environmental or cybersecurity training.
Directors’ Report 2024 Cementir Holding NV | 307
Training category
Description
Health & Safety
Training on Health and Safety topics for workers.
Technical and Functional
Functional and technical training to upskill Group
professional families and sub-communities (e.g.
environmental training).
Management Edu & Leadership Development
Specific initiative aimed at leadership or management
Leadership Development skills development, managed at
Global or Local level. For example, the Emerging Talent
programme.
Cultural and Corporate
Training on Code of Ethics, Whistleblowing System, GDPR
(General Data Protection Regulation), Human Rights,
Cybersecurity, Performance Management process.
Other
Other types of training, such as language courses.
Hours of training per category
Unit
2024
Male
Female
Total
Health & Safety
Ore
28.377
2.534
30.911
Technical and Functional
Ore
14.590
3.847
18.437
Management Edu & Leadership Development
Ore
14.635
2.910
17.545
Cultural and Corporate
Ore
2.129
885
3.014
Other
Ore
2.256
1.331
3.587
Total Hour of Training
6.987
11.507
73.494
S1-14 – Health and safety metrics
Six Pillars Of Action
Our roadmap to strengthen safety culture is based on six pillars of action where interdependent approaches by
workers is a key expectation.
To be effective in the implementation of our “Zero accident strategy” the main attitude required, starting with our
managers, is leadership to be felt through visible and exemplary behaviours, proactive commitment and indeed
the involvement of workers viewed as a team.
LEADERSHIP IN PRACTICE
• Managers Safety Walk&Talk program focused on behaviours (trust-based culture)
• Managers participation in incident investigations
• Training program on “Concrete Leadership”
Directors’ Report 2024 Cementir Holding NV | 308
• Safety Leading Targets
COMMITMENT & RESPONSIBILITY
• Interdependent approach to safety starting from induction phase
• Proactive contribution of all workers
• Positive reinforcements (e.g., Valuable Safety Behaviours)
• Procedures effectiveness and discipline in practice
RISK MANAGEMENT
• Identify hazards in all conditions (routine and non-routine, complex, emergency)
• No work prior to proper risk assessment and authorization (Permit to Work Process)
• Training program on “Job Safety Assessment”
• Timely implementation of preventive and corrective actions identified
INVOLVEMENT & PARTICIPATION
• Regular Committees and operational meetings
• Periodic tool boxes at department/shift level on the main risk factors
• Participation in the preparation of safety operating procedures
• Participation in incident investigations and results dissemination (e.g., Safety Alert)
COMPETENCE & AWARENESS
• Safety training on both technical skills and personal attitudes
• Training matrix including all workers and jobs
• Periodic reporting campaigns on incident/unsafe situations
• Safety attitude as evaluation factor of the individual performance
CONTINUOUS IMPROVEMENT
• Learning from events through Root Cause Analysis
• Systemic implementation and reviewing of standards and best practices (H&S community)
• Monitoring of both lagging and leading KPIs and auditing (including contractors)
Subsequent Events
In February 2025, one fatal incident occurred at work at the Izmir plant; the related investigations by both internal
functions and external authorities are ongoing. The matter has been disclosed in the Sustainability Statements
but no need to amend the DMA has been noted since the H&S matter and related impacts and risks was already
identified as a material topic.
Directors’ Report 2024 Cementir Holding NV | 309
• Valuable Safety Behaviours
Health And Safety
Over the past four years, we have initiated a significant cultural change so that health and safety is perceived
and experienced in daily activities as a common value. The trend of accident indices is confirming the
effectiveness of our action plans contextualized at individual industrial sites. We are aware that all accidents
and work-related illnesses are preventable. Our “Zero accident strategy” is well founded on this principle.
The framework for the prevention of work-related incidents and illnesses is the effective implementation and
maintenance of the Health and Safety Management System according to the ISO 45001 standard, the Group’s
guidelines and standards and the regulations in the countries where we operate.
The Management Systems Certification Program has been completed for cement. All cement production plants
are ISO 45001 certified. We plan to certify all ready-mix concrete activities by 2027. The Group’s monitoring
guidelines are consistent with recognized international reference documents such as the Global Reporting
Initiative standards and GCCA Sustainability Guidelines for the monitoring and reporting of safety in cement and
concrete manufacturing.
Progress In 2024
According to our sustainability roadmap we started new industrial projects especially in cement (e.g., Kiln 4
upgrade in Belgium). Working hours increased by 3% compared to 2023 mainly for contractors.
No fatal or high consequences injuries occurred among employees. A contractor fatality occurred in cement
plant after completion of a cleaning work; this event is under investigation by competent Authority to clarify if it
was work-related or not.
The total number of lost time injuries has been reduced by 16% compared to 2023.
All incidents, starting from high potential events, have been analysed and investigated to determine the root
causes and identify corrective/preventive actions that have been already implemented/planned.
Directors’ Report 2024 Cementir Holding NV | 310
Also in 2024, the main causes of incidents were slips, trips and falls (about 30% of the total) mostly concerning
behaviours. Specific initiatives were undertaken during the year to increase the level of worker awareness and
supervision and control activities in the field.
BOX: The week for Safety and Health at Work – April
During the month of April, in conjunction with the celebration of World Occupational Health and Safety Day, we
implemented additional awareness initiatives focused on leadership in safety and reporting of unsafe conditions
and behaviours. Reporting such occurrences helps prevent accidents and injuries, identify root causes and
corrective actions, and promote a safety culture based on awareness, responsibility and proactivity. The
initiatives were widely attended by workers.
LOST TIME INJURY FREQUENCY RATE (LTIFR)
(number of injuries with working days of absence/hours worked) x 1,000,000
In 2024, all of our companies continued to implement Health Management Systems with the objective of
promoting and maintaining the health and well-being of employees and ensuring adequate risk monitoring in the
workplace. Almost all the employees are included in the health monitoring programs, considering the task risk
evaluation for each of them.
In 2024, health checks were more than 2,350 (about 2,100 in 2023). They were conducted in compliance with
the health protocols defined by the Occupational Physicians.
During the year, no occupational illness allegations were received.
58% of people in our own workforce are covered by the Health and Safety Management System certified ISO
45001.The number of recordable work-related accidents of employees in the entity’s own workforce in 2024 was
equal to 76. With reference to number of recordable work-related accidents of non-employees in the entity’s was
equal to 37 for the year 2024. The number of days lost to work-related injuries and fatalities from work-related
accidents, work-related ill health and fatalities from ill health of employees was equal to 877,5 in 2024.
Competence and awareness
Competence of workers in health and safety include the knowledge and skills needed to appropriately identify
hazards and deal with the risks associated with their work and workplace. Over the last years we have
strengthened our commitment to improving workers' awareness and competences with a systemic and
interdependent approach. In 2024, we continued along this path in training focusing on behavioural aspects. In
Directors’ Report 2024 Cementir Holding NV | 311
2024, H&S specific training was 30,911 hours aligned with the previous year considering also that some activities
are carried out periodically. It has to be noted that H&S training hours represent more than 40% of the total
Group training hours.
SPECIFIC HEALTH & SAFETY TRAINING
(hours)
BOX: People into truck: blind spot awareness
Our goal is to influence the safety attitudes of our truck drivers, involving and training them in risk identification,
rules, practices, and behaviours to follow for safe driving. In addition to the management truck's safety devices,
we focused on behaviour in case of blind spot, one of the main important risk factors in the vehicle-human
interface on the road.
At the same time education of road users starting from children is essential. For this reason, during the annual
quarry walk in Belgium, we organized some awareness sessions for children and young people involving drivers
too. They were invited to climb into the trucks to see what they could and could not see from the cabin. They
receive behavioural guidance and proactive approach to be followed avoiding potential collision.
More than 250 people were sensitized of which 145 climbed into truck!
Directors’ Report 2024 Cementir Holding NV | 312
S1-15 – Work-life balance metrics
Cementir is committed to supporting its employees in their parenthood journey.
Male
Female
Employees entitled to parental leave
98%
97%
Employees entitled to carers' leave
45%
59%
Employees who took parental leave on employee entitled
3%
6%
Employees who took carers' leave on employee entitled
1%
2%
Return to work rate of employees that took parental leave
100%
77%
Return to work rate of employees that took carers'leave
100%
100%
Cementir is committed to supporting its employees in their journey to parenthood. As of 2024, 97% women
working in the Group had the right to take time off work for the birth of a child; helping them to reconcile their
career with growing family responsibilities. The table below contains further information on the total number of
employees who were entitled to parental leave, the total number of employees who took parental leave and the
total number of employees who returned to work in the reference period after the end of parental leave.
The percentage of employees entitled to parental and/or carers' leave is calculated based on those who,
according to national law, collective agreements, or local policies, are eligible for leave due to the birth of a child.
The percentage of employees who took parental and/or carers' leave is determined by the number of employees
who took at least one day of leave in 2024, divided by the total number of entitled employees.
S1-16 – Remuneration metrics (pay gap and total remuneration)
Total remuneration
In 2024, the ratio between the annual total remuneration of the most paid employee and the median of all other
employee’s annual total remuneration was 107.
Total Annual Remuneration includes Base Annual Gross Salary, Variable Incentives (Sales incentives, short-
and long-term variable plans), Profit Sharing, other variable cash payment. Variable incentives are considered
as Actual paid during the reference year, taking into account pro-rata calculation linked to the effective presence
in the company. Moreover, it has to be highlighted that for the specific calculation of the total remuneration the
effect of IAS29 is excluded from the personnel cost.
The remuneration strategy of Cementir is aimed at guaranteeing a fair and attractive reward package,
considering the individual performance, the internal equity, the market practices, the macroeconomic and social
environment in continuous evolution. A fair and attractive remuneration is a key pillar to attract, retain and
motivate key people, and, at the same time, to promote a conduct in line with the corporate culture and values.
Cementir Holding adopts a total reward strategy that includes several tools to compensate its employees who
are motivated through a competitive base salary, a short-term variable incentive evaluated and paid annual
basis, a long-term variable incentive for top management roles and a welfare offer that can balance personal
and professional needs.
Furthermore, Cementir Holding total reward strategy previews career plans, training and development
opportunities and international assignments possibilities, all aimed to foster professional growth. The
Compensation and Benefits processes for the Company Top Management are directly managed by the
Headquarters Human Resources and Organization Department, specifically by the Global Compensation &
Benefits function.
Directors’ Report 2024 Cementir Holding NV | 313
Gender Pay Gap
In 2024 the Group confirmed its commitment to diversity, equity and inclusion carry on the analysis started in
2023 with a pilot study in Türkiye. For 2024 the Group consolidated the approach by taking into consideration
also the new guidelines related to the CSRD requirements conducting the gender pay gap analysis covering the
entire population of the Group (with the exclusion of Sweden), The data considered is updated to July 31, 2024,
as no significant salary changes were observed in the latter part of the year due to the salary review process
completion at that month and the conversion rate applied is based as of the abovementioned date.
Related to the outcome of the analysis, it is important to note some conditions related to the Cement industry
that affect the high-level analysis:
- There are more men than women (13% women vs men at Group level);
- Women are under-represented in the business department compared to the staff department (9% vs
43%);
- It should be noted that the single indicator used does not account for regional salary differences across
the areas where the Group operates;
- Different seniority can affect the results;
- Unique KPI including BCs and WCs.
The mean gender pay gap across the Group is -3,5% considering the ESRS (ESRS S3 Equal Opportunities)
formula: (( Average Gross Hourly Level of Male Employees - Average Gross Hourly Level of Female
Employees)/ Average Gross Hourly Level of Male Employees))*100--
Considering the above-mentioned conditions of the Cement industry, the HR department has conducted a
deeper analysis as done in 2023 with the pilot study, by role showing that men and women are paid the same
salary for equivalent levels of work when the presence of the less represented gender is statistically significant.
The Cementir Group operates internationally and for us managing diversity also means paying attention to
cultural and religious differences. The Group is respectful towards religious sensibilities in the various countries:
in Malaysia, for example, special prayer rooms have been set up in the plant, according to the differing religious
beliefs of employees. Moreover, consumption of certain foods has been avoided out of respect for cultural
differences. The fundamental conventions of the International Labour Organization (ILO), concerning the
abolition of forced labour, collective bargaining and the elimination of child labour and discrimination have been
Directors’ Report 2024 Cementir Holding NV | 314
ratified
27
in most of the countries where the Group operates. In those countries where they have not been ratified,
the Group has defined clear policies relating to these agreements in the Code of Ethics, which states: ‘The
Group offers the same opportunities to all workers and expressly forbids any form of abuse by those in positions
of authority or coordination. Abuse means any behaviour that results in requesting, or persuading to offer,
services, personal Favors, or other benefits detrimental to the dignity, professionalism or independence of
others. All recipients of this Code, defined by national and international legislations, are required to refrain from
engaging in illicit behaviour that is harmful to an individual, such as, but not limited to, offences against the
individual, child labour, people trafficking and child pornography’.
In addition, our Group Human Rights Policy has been published in order to raise awareness of these important
topics among our employees and our suppliers and a structured audit process on human rights (as explained in
the paragraph ‘Human Rights audits performed in 2024’) has been regularly carried out in each country.
Cementir has also worked on the training plan to support the dissemination of these topics by launching specific
training (mandatory and non-mandatory) on DE&I in 2024 leveraging the various digital tools.
In 2024 the Turkish subsidiary, Cimentas, confirmed the Happy Workplace certificate. The
methodology behind this certificate involves a two-step analysis. Companies undergo evaluation
both internally, with a survey addressed to employees, and on their HR governance, with a
verification of the company’s adopted practices. This certificate is awarded to companies that score
above 70, demonstrating unparalleled standards for employee happiness within their respective
industries.
In Egypt in 2024 the Company decided to improve the work environment and create better
workplace and culture where everyone feels safe, valued, and respected. For this reason, the
undertaking applied for the certification that is granted by international organization “Best Place to Work” with
the objective to assess our people practice against highest standard of excellence in employee conditions.
The assessment methodology involves a two-step analysis, survey addressed to the employees as well as HR
governance and practice.
The evaluation process included several aspects of SWC’ workplace such as
culture, career & development opportunities, leadership, and talent management.
It has to be noted that this certificate “Best Place to Work in Egypt” is awarded
to companies that score above 70, and the Company has achieved the 7
th
position in the ranking of the top (top workplace in Egypt 2024). This outstanding
achievement reflects the management commitment in creating a positive
workplace for the employees.
27
Freedom of Association and Protection of the Right to Organise Convention, 1948 (No.87); Right to Organise and
Collective Bargaining Convention, 1949 (No. 98); Forced Labour Convention, 1930 (No. 29); Abolition of Forced Labour
Convention, 1957 (No. 105); Minimum Age Convention, 1973 (No, 138); Worst Forms of Child Labour Convention, 1999
(No. 182); Equal Remuneration Convention, 1951 (No. 100); Discrimination (employment and occupation) Convention,
1958 (No. 111).
Directors’ Report 2024 Cementir Holding NV | 315
S1-17 – Incidents, complaints and severe human rights impacts
In 2024 no work-related incidents of discrimination - on the grounds of gender, racial or ethnic origin, nationality,
religion or belief, disability, age, sexual orientation, or other relevant forms of discrimination involving internal
and/or external stakeholders across operations- have been found.
Incidents, complaints and severe human rights impacts
Total number of incidents of discrimination, including harassment,
No incidents of discrimination were reported
Number of complaints filed through channels to raise concerns
(including grievance mechanisms) and, where applicable, to the
National Contact Points for OECD Multinational Enterprises
0
Total amount of fines, penalties, and compensation for damages as a
result of the incidents and complaints disclosed above, and a
reconciliation of such monetary amounts disclosed with the most
relevant amount presented in the financial statements;
0
The number of severe human rights incidents connected to the
undertaking’s workforce in the reporting period, including an indication
of how many of these are cases of non-respect of the UN Guiding
Principles on Business and Human Rights, ILO Declaration on
Fundamental Principles and Rights at Work or OECD Guidelines for
Multinational Enterprises. If no such incidents have occurred, the
undertaking shall state this;
0
The total amount of fines, penalties and compensation for damages for
the incidents described in (a) above, and a reconciliation of the
monetary amounts disclosed in the most relevant amount in the
financial statements.
No penalties and fines thanks to the audit
carried out yearly by internal audit department
S2 WORKERS IN THE VALUE CHAIN
"Our set of rules, the Supplier Code of Conduct, represents a crucial element of our cooperation and continuous
dialogue with our suppliers.”
Strategy
SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model
The process to identify and assess material workers in the value chain-related impacts, risks and opportunities,
is described in the “General Information” chapter, sections “Impact materiality assessment” and “Financial
materiality: risk and opportunities assessment”.
Cementir’s workers can be defined as:
● workers functional to the Cementir’s activity;
● on-site workers.
Directors’ Report 2024 Cementir Holding NV | 316
For the description of the main categories of workers in the value chain please refer to the Value Chain Overview
paragraph of this report (refer to “General Information section”). Here below, as requested by paragraph 11 of
ESRS S2, the list of workers in the value chain affected by Cementir’s operations.
Due to the type of business – as showed in the Value Chain Map represented in this report (refer to “General
Information section”, “Understanding the context” paragraph) - the Company has limited traceability in the
downstream phase of its value chain.
For this reason, all the documents related to policies and procedure practices need to be applied by the suppliers
working or having business with Cementir, with the intent to implement similar management model as well.
Operations at significant risks of incidents of forced labour could be noticed in activities as mining, quarrying, in
the following geographical areas: Cina, Malaysia, Turkey and Egypt.
Through the Enterprise Risk Management, Cementir monitors in its significant locations of operation and at
general level that child labor is not practiced in any case and in any type of operation (such as mining and
quarrying activities), and monitors operations and suppliers at significant risk for incidents of forced or
compulsory labor. In addition, to monitor the entire value chain and due to the geographical area where raw
materials are purchased, the Company monitors also that the prohibition of child labor is fully respected by its
supplier and the related location of operation where they operate.
The potential negative impacts identified are the following ones, that do not arise from the transition to greener
and climate-neutral operations :
● Upstream activities Mining and Quarrying there is the possibility that contracts (e.g temporary) do not
guarantee contractual security.
● The inhalation of silica dust by workers can lead to the development of chronic health conditions,
resulting in negative external impacts on their health.
● The use of heavy equipment and quarrying operations by the undertaking can lead to high fatality rates,
significant health and safety risks for their employees and contractors.
● Severe human rights issues (e.g. forced labor, human trafficking or child labor) affecting the
undertaking’s own workforce can lead to a negative impact for Cementir.
No material positive impacts are defined.
The resulting risks are listed below:
● Risks related to vendors, haulers, clients, subcontractors injuries during the service performing or in
close proximity of the company's plant can lead to significant reputational damage and legal liabilities. These
incidents could result in increased insurance costs, potential legal settlements, and loss of business. Such
financial impacts would likely contribute to a decrease in EBITDA.
● Worker injuries, illnesses, and fatalities can lead to regulatory penalties, negative publicity, low worker
morale and productivity, increased healthcare and compensation costs, and potential litigation, all of which can
have a significant financial impact on the business.
● Geographical areas can have risk related to child and forced labor can lead to reputational risk and
sanctions, operational costs can increase.
Directors’ Report 2024 Cementir Holding NV | 317
Impact, risk and opportunity management
S2-1 - Policies related to value chain workers
Contractual security is managed by Cementir in the Group human rights policy (please, refer to the General
Information section to deep-dive) publicly available on the website of the Company, and applicable to the
workers in the value chain too. The Company safeguards the development of human capital, the respect of
human and workers’ rights, the advance of an inclusive and equal working culture and the people empowerment
to be active members in the organization. Specifically, the policy promotes freedom of association and the right
to collective bargaining, as a favored instrument for determining the contractual conditions of its employees as
well as regulating relations between management and unions. Furthermore, the Supplier Code of Conduct
(please, refer to the General Information section to deep-dive) clearly sets out the human rights and labor
standards upheld within its supply chain, in accordance with current national and international legislation for the
protection of working conditions, the respect of personal dignity.
With respect to the negative impacts related to health and safety (i.e inhalation of silica dust and the use of
heavy equipment) the Group culture is focused on the prevention of injuries and work-related illnesses, as
defined in the Group Occupational Health & Safety (OH&S) Policy (please, refer to the General Information
section to deep-dive). Through the policy, the Group health and safety management systems is improved, thanks
to coordination of local efforts, methodological standardization and dissemination of best practices and
guidelines across operating companies. It provides a framework for prevention of work-related incidents and
illnesses, in line with international reference standards, based on key requirements such as the definition of
work-related procedures and practices, training and coaching employees, learning from accidents.
In addition, Cementir considers the protection of occupational health and safety and the well-being of people as
core values in the management and development of its business. Its sustainable development strategy pursues
continuous improvement in environmental, occupational health and safety, social and welfare aspects, in
accordance with the sustainability model defined by the United Nations Global Compact. Further details are
defined in the Code of Ethics (please, refer to the General Information section to deep-dive).
Moreover, Cementir believes that health and safety management and disaster prevention have an important
role in ensuring sustainable and stable benefits for all stakeholders all along its value chain. Suppliers are
expected to ensure a safe and healthy work environment through, for instance:
- the identification, assessment and control of workers' exposure to health and safety risks;
- the development of appropriate systems for the detection, analysis and elimination of any hazardous situation;
- the continuous improvement of occupational health, safety and environmental performance associated with
their processes, products and services throughout their life cycle;
- the provision of necessary personal protection equipment (PPE) for all workers (such as eye protection, face
masks, ventilation devices, hard hats, heavy gloves, etc.) with instruction for using such PPE;
- the provision of adequate safety information and training courses for workers, ensuring adequate updates
thereof;
- the creation of a peaceful and positive working environment, which is reflected in the productivity and
development of the Supplier itself.
Negative impact related to severe human rights issues is managed through the Group human rights policy
(please, refer to the General Information section to deep-dive), that explicitly prohibits child, forced or compulsory
labor. In line with its commitment to the UNGC and its “Principle 1: Support and respect the protection of
internationally proclaimed human rights” and “Principle 2: Ensure that business practices are not complicit in
human rights abuses”; Cementir contributes to the effective abolition of child labor. Moreover, respecting
“Principle 3: Uphold the freedom of association and the effective recognition of the right to collective bargaining”
Directors’ Report 2024 Cementir Holding NV | 318
the Company verifies that all its workers and those of the suppliers can have the possibility to prevail over their
rights.
In addition, thanks to the Whistleblowing procedure too, the Company monitors these types of risks and also
Audit on Human Right are regularly carried out by Internal Audit Department.
In order to strengthen responsible management in the supply chain that extends beyond its direct supplier,
Cementir undertakes to establish and maintain the procedures necessary to evaluate and select its suppliers on
the basis of their level of quality, social and environmental responsibility. Indeed, the Company does not limit its
assessments of products and services offered to the mere cost proposed, paying utmost attention instead to the
value proposed, thereby including quality, innovation, flexibility, economic, social and environmental
responsibility and business ethics.
Thanks to the Industrial Relations function, the Company monitors how workers in the value chain can be
negatively and materially impacted.
Cementir Group is committed to implementing the United Nations Framework and Guiding Principles on
Business and Human Rights and having these fundamental principles endorsed within its supply chain.
The Group is also committed to conduct its business in line with the principles set out in the Universal Declaration
of Human Rights and the International Labour Organization (ILO) based on respect for the dignity of the
individual without distinction of any kind. Cementir encourages its suppliers to embrace these international
standards, expecting them to respect the human rights of their employees in the workplace, and to promote
human rights within their value chain. Those principles designed to cover employees also apply to contract
workers and any workers without a formal contract of employment.
As provided by national and international regulations, suppliers are required to refrain from engaging in unlawful
conduct harmful to individuals, such as, but not limited to, offenses against a person, child labour, people
trafficking and child pornography.
The Supplier Code of Conduct formalizes Cementir set of rules to increase transparency in terms of working
conditions, labour rights, environment and anticorruption. It is applicable to all Cementir Group Procurement
suppliers: the minimum standards that are set out in this document will be enforced contractually and suppliers
are expected to constantly monitor their own and their suppliers’ compliance.
S2-2 - Processes for engaging with value chain workers about impacts
Cementir currently does not have an approach related to engaging with supply chain workers, contractors or
sub-contractors. The Group is evaluating how to effectively engage with the supply chain workers on impacts
while assessing the possibility of engagement in setting targets and tracking performance.
The Company in order to reinforce its commitment with the Value Chain and its workers is evaluating in 2025 to
adopt a Sustainable Procurement Policy. To reinforce this requirement Cementir will evaluate to attach to the
contract agreement and in the General Purchasing conditions, the Sustainability clauses in order to strength
standards and requirements related to ESG topics and thus in particular for the upstream part of the value chain.
Moreover, together with Procurement Department the Company will evaluate to implement within the next 2
years a Sustainability self-assessment that will be provided to all new suppliers before to sign the contract
agreement. Starting from the very first contact, all Cementir suppliers will be assessed on their social,
environmental and business ethics responsibilities in addition to the economic and products or services quality
to be supplied. The self-assessment procedure will be introduced with the aim to require to new suppliers of raw
material and high value added (HVA) parts, to auto-certify the fundamental requirements of sustainability
performance with respect to the principal national and international regulations on work, environment, and
business ethics.
Directors’ Report 2024 Cementir Holding NV | 319
S2-3 - Processes to remediate negative impacts and channels for value chain workers to raise concerns
Cementir recognizes that genuine commitment to detecting and preventing the identified risks and negative
impacts, related to the workers in the value chain.
With regards to the negative impact generated by the silica dust and the use of heavy equipment, the Group's
culture emphasizes the prevention of injuries and work-related illnesses, as outlined in the Group Occupational
Health & Safety (OH&S) Policy. The policy enhances the Group's health and safety management systems by
coordinating local initiatives, standardizing methodologies, and sharing best practices and guidelines across all
operating companies. It establishes a framework for preventing workplace incidents and illnesses, aligning with
international standards. This framework includes key elements such as defining work procedures and practices,
providing training and coaching to employees, and learning from accidents.
In addition, as defined in the Supplier Code of Conduct, when entering into business relationship with Cementir,
suppliers commit to behaving in accordance with all relevant national, international and supranational laws, as
well as with the values and requirements described in Cementir policies, demanding the same from their own
suppliers.
In particular, the Company requires to its value chain to comply with the laws and regulations of the respective
countries in which Cementir operates and to apply in the same manner the highest standards of economic,
social, ethical, and environmental practices. With specific reference to the respect of Human Right for workers
on the value chain through the collective bargaining, the social dialogue and the agreements made with Unions
representative the Company is always available to listen and cooperate in case of negative impacts that could
affect the workers on the value chain and their rights. Moreover, the Suppliers Code of Conduct clearly states
how to proceed with Whistleblowing Management Procedure to denounce to any type of complaint that has
affected workers and their related Human Rights.
With regards to the other negative impact, related to access to secure employment and severe human rights
issues Cementir provides a specific clause on workers' rights which is signed by the supplier in the Supplier
Code of Conduct.
Regarding channels, the Whistleblowing Management Procedure defines communication channels for reporting
violations, suspected violations and inducements to commit violations of any laws and regulations, principles
enshrined in the Code of Ethics and the Code of Conduct, internal control principles, company rules and
procedures and/or any other act or omission that may lead directly or indirectly to financial or image damage for
the Company and thus in full compliance with the European Directive 1937/2019, pursuant to Article 6 of
Legislative Decree 24/2023.
The Whistleblowing Management Procedure is addressed to all internal and external stakeholders. Thanks to
the Whistleblowing channel, available for all stakeholders, 24/7, it is possible for all employees, customers,
suppliers and other external stakeholders to raise concerns about unethical, inappropriate or illegal behavior
they are aware of.
In accordance with local laws and regulations, Cementir communicates through its Whistleblowing Management
Procedure. The Online Whistleblowing Channel complies with legal requirements and security standards and
guarantees the confidentiality of the whistleblowers’ identity, unless the whistleblowers have consented to the
disclosure of their identity. The Whistleblowing Management Procedure is published on the corporate website
and governs the manner of reporting breaches, suspected breaches and inducement to breaches in the matter
of law and regulations, principles ratified by the Code of Ethics, including reports relating to equal opportunities,
discrimination and mobbing, in addition to all that is dealt with in the Group Policies, internal auditing principles,
corporate policies, rules and procedures, and any other behavior involving commission or omission of acts that
might directly or indirectly lead to economic-equity detriment, or even one of image, for the Group and/or its
companies.
Directors’ Report 2024 Cementir Holding NV | 320
Moreover, Cementir strongly suggests to its suppliers to have at their turn a complaint reporting channel which
allows to report, also anonymously, compliance concerns, respecting the confidentiality requirements and
ensuring the protection of the whistleblower against any form of retaliation.
In case of workers in the value chain who want to denounce and complaint about issues that directly impact
their work, they can denounce – as per all stakeholders - through the Whistleblowing channel, of which they are
explicitly informed in the Supplier Code of Conduct.
All concerns raised are properly assessed and investigated by the Internal Audit Department, within the
timeframe provided by the abovementioned Directive and in full compliance with the requirements set out
therein. In any event, the Company ensure the protection of whistleblowers from any kind of retaliation and
discrimination, as clearly stated in the Supplier Code of Conduct – specific section “Relations of suppliers with
Cementir Holding Group employees”.
Internal Audit Department is responsible to analyze all the complaints received, to involve corporate functions
deemed concerned for the activities necessary for verification.
Moreover, after the analysis carried out, Internal Audit Department can assign to the function involved in the
complaint, specific action plans to be implemented with the agreed deadline. Internal Audit periodically reports
the complaints received, the progress of the analyses carried out and the related actions plans implemented, to
the Top Management.
It recommends the Company to adopt adequate disciplinary and/or legal actions thus with the aim to prevent
situations that could affect negatively the Company. It has to be noted that the receipt, the analysis and the
initiation of the verification will be managed by the Chief Internal Audit Officer of Cementir Holding.
With specific reference to Whistleblowing procedure, the Company tracks, monitors and follows all the
complaints received preparing statistics related to the types, the number received, which have been confirmed,
and which were generic and unsubstantial, specifying also the country were the fact happened. Furthermore, all
results of 2024 are published in the Sustainability Statement referring to the reporting period 01.01.2024 to
31.12.2024.
For further details about the number of complaints, please refer to the Governance section, “The Code of Ethics”
paragraph.
With the aim to release a Sustainable Procurement Policy and to add Sustainability clauses in the General
Purchasing Condition within the next year, Cementir will insert specific reference to Whistleblowing mechanism
and thus with the aim to sensitize and raise awareness to value chain workers regarding grievance mechanism
and complaint process. Thanks to the release of the Sustainable Procurement Policy, the Company will expect
Suppliers and related workers on the value chain, to understand clearly the possibility to raise a complaint
through a dedicated reporting channel set by the supplier or through the Cementir's website. Moreover, it will be
important to sensitize the workers that the complaint can be done in an anonymous way, (it has to be noted that
whistleblowing channel must comply with the confidentiality requirements ensuring the protection of the
whistleblower against any form of retaliation) and all types of concern can be denounced if the whistleblower
consider that some illicit have been made and/or if some processes or procedures have not been respected.
Directors’ Report 2024 Cementir Holding NV | 321
S2-4 - Taking action on material impacts on value chain workers, and approaches to managing material
risks and pursuing material opportunities related to value chain workers, and effectiveness of those
action
Impact
Actions taken, planned or underway to
prevent or mitigate material negative
impacts on value chain workers
Tracking and assessment of the
effectiveness of such actions
Responsible
functions
Inhalation of silica
dust
Heavy equipment
HSE Policy, Training
Safety equipment
Update training based on required
laws
Injuries number
Awareness campaign
HSE
Internal Audit
Access to secure
employment
Supplier Code of Conduct
Verification of the contract by the legal
department.
Signed for acknowledgment
Legal checks that it is correctly
signed
Legal
Procurement
Severe human
rights
Supplier Code of Conduct
Group HR Policy
Grievance mechanism
Audit on human rights
Internal Audit
Human
Resources
In 2024, no cases of human rights violation have been reported.
Metrics and targets
S2-5 - Targets related to managing material negative impacts, advancing positive impacts, and
managing material risks and opportunities
Currently, no specific targets related to the workers in the value chain material sub-topic- working conditions and
other work-related rights – have been planned.
Nevertheless, with the definition of the Procurement policy, specific targets and metrics will be set within 2025.
S3 AFFECTED COMMUNITIES
We support our communities
“We create value for local communities, listening to their needs and concerns and basing our relationships with
them on transparency and accountability.”
Strategy
Material impacts, risks and opportunities and their interaction with strategy and business model
The process to identify and assess material affected communities-related impacts, risks and opportunities, is
described in the “General Information” chapter, sections “Impact materiality assessment” and “Financial
materiality: risk and opportunities assessment”.
The Cementir Group is constantly improving technical solutions to reduce environmental impact and balance
the interests of the Company with those of local communities. The Group has identified the negative impact that
Directors’ Report 2024 Cementir Holding NV | 322
the companies' activities, in particular related to the production ones, may lead to critical and/or unfavourable
attitudes among local communities and local stakeholders, with consequent deterioration of the Company's
image.
In particular, Cementir identified a negative impact in the large amount of water required for production, this can
lead to water scarcity in water sensitive areas. To address these matters, the Cementir Group has reinforced its
dedicated HSE Department, which oversees health, safety, and environmental issues within the Group.
Specifically, local HSE managers have been appointed in all countries where the company operates. These
managers are responsible for maintaining an active dialogue with local communities, gathering critical issues
and complaints, which are then addressed internally by the Group in collaboration with the relevant departments.
This becomes even more important where increased urbanization has brought cities closer to the Group's plants,
particularly in Turkey. For this reason, specific tools have been adopted to map the stakeholders who should be
involved in defining the actions to be implemented and in communicating the relevant measures relating to the
operation of the plants. These tools also allow Group companies to analyse stakeholder complaints and
suggestions, in order to provide the necessary information or plan targeted actions.
As for community members, the Company has focused on organizing meetings with groups of residents to
provide them with detailed information about the work and operations that take place at the Group's sites. As an
example, in Turkey, the proximity of the Elazığ and Izmir plants to residential areas underlines the importance
of a constant dialogue with local communities, which are particularly sensitive to the surrounding environment
and the visual impact of the plants. To address these precise concerns, Çimentaş is adopting specific strategies
of engagement and communication with stakeholders interested in the topic, promoting opportunities for
dialogue and mutual debate throughout the year.
Par.9 Cementir recognizes that its operations can impact various communities, particularly those in proximity to
its plants. The company has identified several groups that may be negatively affected by its activities.
Specifically, the affected communities in scope of this disclosure are limited to:
communities living or working near operational sites, factories, plants or other facilities where the company
physically operates, or more remote communities that are affected by activities at such sites (e.g. due to
downstream water pollution.
ESRS affected communities’ definition
Applicability for Cementir
Communities living or working around the undertaking’s
operating sites, factories, facilities or other physical operations,
or more remote communities affected by activities at those sites
(for example by downstream water pollution)
Yes
Communities along the undertaking’s value chain (for example,
those affected by the operations of suppliers’ facilities or by the
activities of logistics or distribution providers)
Yes
Communities at one or both endpoints of the value chain (for
example, at the point of extraction of metals or minerals or
harvesting of commodities, or communities
around waste or recycling sites
Yes
Communities of indigenous peoples
No
Each single plant provides to organize periodic meetings with the local communities to understand their special
needs or requests, as dust complaints, noise complaints about trucks. HSE manager relates with the local
institutions / associations, through discussion with representatives of local communities. Results of the
Directors’ Report 2024 Cementir Holding NV | 323
discussion are then then reviewed internally to identify appropriate and feasible solutions. The frequency of
other interactions is determined on a needs-basis.
All the affected communities by Cementir’s activity (see table above), are impacted by the negative impacts and
the risk identified by the DMA (please, refer to the General information section for the specific description).
Impact, risk and opportunity management
S3-1 - Policies related to affected communities
Cementir has established comprehensive policies to manage its material impact and risks related to affected
communities. These policies are designed to address the specific needs of various communities impacted by
the company's operations.
The Group Water Policy (please, refer to the General Information section to deep-dive) is particularly relevant
to communities in water-scarce regions, as it addresses the company's responsibility to manage water resources
sustainably, thereby reducing potential conflicts over water usage. The policy clearly emphasizes that a key
commitment of the Company is to foster a relationship of constructive collaboration, grounded in complete
openness and trust, both within the organization and with the local community and institutions, in order to
address water-related challenges and promote the conservation of this shared resource.
In addition, Cementir is dedicated to generating value for local communities, as described in the Stakeholder
engagement policy (please, refer to the General Information section to deep-dive), by listening to their voices
and building relationships based on transparency and accountability. This commitment is reflected in the
company's approach to community engagement and its efforts to positively affect local communities.
Cementir's Group Human Rights Policy, Supplier Code of Conduct and Group Code of Ethics aim to support
and guide management and employees in ensuring compliance with international standards, including the
United Nations Declaration of Human Rights, ILO Conventions and the OECD Guidelines, towards the
communities affected by the Company’s operations.
The Company recognizes these international principles for respecting and promoting fundamental human rights
in every geographical area in which it operates and in its business relationships.
In particular, as defined in the Group Human Rights Policy, Cementir seeks to avoid involuntary resettlements.
In situations where it is unavoidable, the Company commits to comply with the national governments or regional
authorities’ guidelines on resettlement and rehabilitation and also act in line with international human rights
norms on this subject.
In addition, Cementir strives to ensure that the provision of security to its operations and its engagement with
public and private security forces is consistent with the laws of the relevant country and relevant international
standards and guidelines. In addition, the Company will adapt its security arrangements to balance the need for
safety while respecting human rights.
Furthermore, the Group works toward understanding and applying sound practices for land and water use
consistent with emerging international practices while respecting human rights.
Lastly, the Company recognizes that in countries that are politically less stable or where human rights are
compromised dilemmas may arise, including whether or how it can continue to operate in that country with
integrity. Cementir will act in such a way that none of its operations consciously contributes
Directors’ Report 2024 Cementir Holding NV | 324
S3-2 - PROCESSES FOR ENGAGING WITH AFFECTED COMMUNITIES ABOUT IMPACTS
Cementir has focused on organizing meetings with groups of residents to provide them with detailed information
about the work and operations taking place at the Group's sites. The Group Corporate Social Responsibility
Policy entailed the perspectives of affected communities.
With specific reference to communities concerned that may be particularly vulnerable to impacts and/or
marginalized, as well as the opinion of specific groups within the communities concerned such as women and
girls, the Company, takes measures organizing periodic sessions to understand the views and needs of the
communities concerned and works constantly to satisfy their necessities.
Cementir is committed to listen constantly the needs arising from the affected communities. It has to be noted
that at local level, in all the countries where the Company operates, HSE Manager are responsible for the active
dialogue with local communities supporting their exigencies and specific requests, through regular meeting
based on their needs. Additionally, the Company regularly updates the communities on its activities and gathers
their concerns, as outlined in the Stakeholder engagement policy, trough the main engagement tools of local
communities (dedicated meetings, direct contact, official reports).
S3-3 - Processes to remediate negative impacts and channels for affected communities to raise
concerns
Enterprise Risk Management aims to provide support to the decision-making and operational processes of
company management, to reduce the possibility that specific events could compromise the Group's ordinary
operations or the achievement of its strategic objectives. The Cementir Group's Internal Control and Risk
Management System is integrated with the Group's Sustainability Strategy. Risk Management and Internal Audit
are the main responsible for the internal control and risk management system (second and third level of control).
They are responsible for verifying that the Internal Control and Risk Management System is adequately working
with respect to the size and operations of the Group. In particular, they are responsible to verify that the
Management has identified the main risks, evaluated in a consistent manner, and that the appropriate mitigation
actions have been defined and implemented.
In accordance with applicable legislation, the Group has established whistleblowing management process to
report suspected human rights violations and any other potential violation.
S3-4 - Taking action on material impacts on affected communities, and approaches to managing material
risks and pursuing material opportunities related to affected communities, and effectiveness of those
actions
Cementir production requires large amounts of water, causing water scarcity and negative impacts on local
communities and other industries. Nevertheless, the Company signed the WASH Pledge, engaging to taking
action on WASH (water, sanitation and hygiene) at all its workplaces within the next three years. At local level
the Company also decided to clean cars and streets from dust to prevent negative impacts on the affected
communities.
In the case of a negative impact, Internal Audit function is responsible for conducting analyses to identify the
issue, proposing corrective actions to mitigate the identified impact, and overseeing the follow-up to ensure the
actions are properly implemented and maintained.
Thanks to the Enterprise Risk Management the Company is able to identify the actions needed in case of actual
or potential negative impact. The aim is to prevent any kind of negative impact and for this reason the Company
with its Enterprise Risk Management Committee works constantly to prevent risks that could impacts affected
communities. There is a process owner for each risk area, responsible locally for risk mitigation.
Directors’ Report 2024 Cementir Holding NV | 325
The Company has an active dialogue with local communities, listening to the request based on country and
association and their specific needs.
No case of incidents in terms of human rights have been found in 2024.
Impact
Actions taken, planned or underway to prevent or
mitigate material negative impacts on affected
communities
Tracking and assessment of the
effectiveness of such actions
Responsible
functions
Water
scarcity
HSE Policy
Water Policy
ERM
Correct application of the policy
Dialogue with the local communities
Action to improve process to
improve ERM
HSE, Internal
Audit
Metrics and targets
S3-5 - Targets related to managing material negative impacts, advancing positive impacts, and
managing material risks and opportunities
The commitment towards the community is a core principle of Cementir and directly linked to the company’s
purpose of positively affecting local communities. The company is aware that the creation of long-lasting value
is strictly linked to building sustainable initiatives that strengthen local communities and improve their quality of
life and well-being. For all these reasons Cementir is active on several levels, some well-established and present
for many years (e.g. Çimentaş Education and Health Foundation, recovery of heat from kiln fuel), some others
occasional but crucial for building thriving and inclusive communities (e.g. Marche des carrières).
S4 CONSUMERS AND END USERS
“The Group has developed its own direct, closer and ‘local’ business model, to improve customer support and
to understand customers’ needs.”
Strategy
Material impacts, risks and opportunities and their interaction with strategy and business model
The process to identify and assess material consumers and end-users-related impacts, risks and opportunities,
are described in the “General Information” chapter, sections “Impact materiality assessment” and “Financial
materiality: risk and opportunities assessment”.”
Cementir's customers are businesses or organizations that purchase products like cement, aggregates, and
ready-mix concrete, while end-users are the employees using those products in their work, as well as the public
benefiting from the completed infrastructure.
Consumers are defined as the individuals who use its clients' products or services, specifically citizens who use
the final product for personal purposes. In general, these citizens may face potential risks to their right to privacy
and protection of personal data.
The company collaborates closely with its clients to gain insights into the needs of consumers and end-users,
assessing whether there is any risk of significant negative impact on them.
Directors’ Report 2024 Cementir Holding NV | 326
Impacts, risks and opportunities management
S4-1 - Policies related to consumers and end-users
Cementir Group addresses the cybersecurity risk embracing a multi-year Cybersecurity Program. The Cementir
Group Cybersecurity Program is inspired by the indications contained in the NIST Cybersecurity Framework,
investing resources to deploy a proper Cybersecurity environment.
The Cementir Group Cybersecurity Framework includes several items: Extended Detection and Response tool
(XDR), SASE environment, NextGen firewalling, Multi Factor Authentication (MFA), email filtering and
protection, vulnerability management and a SOC team (security Operation Centre) which analyses the outcome
of the different items to identify possible threats.
Special attention given to employees’ cybersecurity awareness. Indeed, to reinforce their sensitivity on the topic,
several courses were held in 2024 (some of them based on a game/learning platform) and regular phishing
campaigns have been issued throughout the year, evaluating the results and using them as a ‘lesson learned’
activity. Further details are available at the paragraph ‘Cementir Academy’.
Every year a Cybersecurity Assessment is conducted, and based on the outcomes, some actions are regularly
deployed.
In the most recent calendar year, the following actions were deployed:
• Reinforced Vulnerability Management and patching process.
• Activation of a SOC service.
• Deployment and testing a Security Incident Response Plan.
• Cybersecurity controls that are regularly performed and monitored.
• Limiting and management of Privileged Accounts.
• Phishing Campaigns and Advanced Training on the latest threats. Lastly, in order to review our Cybersecurity
posture, the Cementir Group is submitted to a Cybersecurity Rating Program and to some ethical hacking
activities. The Cybersecurity Program is directly sponsored by the COO, and the activities are shared regularly
with the Board of Directors.
Cementir Holding N.V. adopts a customer-centric approach, placing the customer at the centre of all its business
activities. Through a sophisticated customer relationship management (CRM) system, the company effectively
and rapidly responds to market needs. Regular surveys and performance measurements enable Cementir to
adapt strategies, make informed decisions, and promote continuous improvement of its offerings. The company
builds lasting relationships with customers to better understand their needs and provide value-added solutions,
starting from the product and offering adequate support during the design, development, and construction
phases. Cementir's vertically integrated production model, combined with the professionalism and technical
competence of its experts, allows the promotion of low environmental impact solutions, responding to the needs
of the circular economy.
In addition to its customer-centric approach, Cementir upholds a Code of Ethics to ensure that all activities are
conducted with integrity, correctness, and compliance with applicable laws. This code applies to all individuals
acting on behalf of Cementir, including employees and collaborators, and extends to long-term business partners
such as suppliers and customers. The company is committed to ensuring that the principles in the Code are
respected by all stakeholders.
Furthermore, Cementir has established dedicated channels for reporting any violations of the Code of Ethics or
other malpractices. These channels are available to both internal and external parties, including customers, and
are managed by the Internal Audit Department to ensure confidentiality and proper handling of reports.
Directors’ Report 2024 Cementir Holding NV | 327
Through these policies and procedures, Cementir demonstrates its commitment to ethical conduct, customer
satisfaction, and continuous improvement in its business practices.
As defined by the Whistleblowing Management Procedure, the whistleblowing procedure is applicable to
situations in which an individual (both internal or external to Cementir Group) raises concern about a risk,
malpractices, wrongdoing, or frauds that affects members of Cementir Group, in the following areas:
• Financial accounting (i.e., presumed misstatement / negligence in the financial statement and internal control);
• Articles of law and regulation violation;
• Bribery and corruption;
• Antitrust practices;
• Danger to health and safety;
• Danger to the environment;
• Discrimination and harassment;
• Other kind of violations of behavioural principles included in the Code of Ethics or recognized by Cementir
Group Reports about the above-mentioned situation might involve any director, manager, employee, partner,
customer, supplier, consultant, collaborator, external auditor, institution and public authority but also those who
operate for Cementir Holding N.V. and other companies within the Group or that are in business relations with
the Group.
In addition, through the Group Human Rights Policy - which is applied on all stakeholders including customers
- Cementir endorses the principles included in the Universal Declaration of Human Rights and the International
Labour Organization (ILO) based on respect for the dignity of the individual without distinction of any kind. It
clearly entails respecting and promoting human rights when engaging with subcontractors, suppliers, customers,
joint venture and other partners, through proactive engagement, monitoring and contractual provisions.
The Group Human Rights Policy is written with reference to the highest international standards, including
reference to customers. Refer to the Human Rights section, “Commitment” paragraph, in S1-1 Policies related
to own workforce.
S4-2 - Processes for engaging with consumers and end-users about impacts
Acting locally while remaining global can be clearly observed and is a distinctive component of the Cementir
approach, pursuing the so-called ‘local’ strategy.
The Group has developed its own more direct, closer and more ‘local’ business model, to improve customer
support and to understand customers’ needs. The Group continues to grow internationally but remains focused
on individual customer needs in local and regional markets.
The strategic intention of having direct engagement with customers is well established in Europe and in most of
the national markets in other regions (including Egypt, China, Australia, Malaysia and North America), where
the Group is working and partnering with industrial customers.
Proximity and a synergistic approach - aimed at managing customers through various coordinated contact points
(sales and marketing, supply chain, customer service, technical service, laboratory, etc.) - improves the Group’s
visibility in the customer value chain.
All of this is essential for allowing the Group to offer a differentiated and tailor-made value proposition, ranging
from products to value-added services (complete logistics management, online software tools, online ordering,
dedicated testing programs, etc.), as well as co-development and innovation initiatives.
Directors’ Report 2024 Cementir Holding NV | 328
Targeting industrial users and the main decision makers in the construction sector, the Group has developed
services and mobilized resources and expertise to provide a holistic view of both cost and environmental impact,
thereby enabling customers to identify how best to optimize performance. Cementir values these close and
reciprocal relationships, which are based on a shared desire to find the most sustainable and cost-effective
solutions to solve complex challenges in material production and construction.
The Group exports to over 70 markets and is working to further develop its direct approach to further enhance
the Group's stable and sustainable position on the market. This strategic path was launched in recent years,
with the aim of exploiting the full potential of structured and direct customer management. The Group has
developed a comprehensive local sales and logistics network in more than 20 countries.
Customers are indeed widely engaged with Cementir through specific customer events and seminars (in
different formats: in-person, hybrid, live-online) focused on current trends and solutions for the construction and
building materials industry as well as through our online resources (websites, blog, etc.) and social media
presence with e-learning on our product performances and applications and to share the latest information and
projects.
Cementir has at various times acted as organizer, speaker and participant with its own stand, at both local and
international level on several occasions. Cementir has at various times acted as organizer, speaker and
participant with its own stand, at both local and international level on several occasions.
In June 2024 Aalborg Portland arranged PORTLAND OPEN 2024, celebrating the 10-year anniversary for the
event. It brought together customers and partners from the domestic market, with most of the customer base
across all segments. The program presented a great opportunity for the participants to get updated on the latest
sustainability and strategic initiatives from Aalborg Portland, forecasts on the carbon footprint of cement and
concrete in the coming years, and technical guidelines from our experts on improving quality and efficiency in
the daily production. The presentations were combined with plenty of opportunities to network with peers from
the industry.
In August, CCB celebrated the 125th anniversary of the Clypot quarry: a unique opportunity to invite all the
stakeholders, including key customers, partners, public authorities, residents and, finally, company’s employees.
CCB reinforced its commitments on sustainable development and its ambitions in terms of circularity, with some
key achievement: a formal commitment to biodiversity with the signing of a Life in Quarry agreement, the
potabilization of mine water and the supply of drinking water to more than 20,000 households, the recent
investment of nearly €2 million to improve traffic flow for all users of the public roads around the quarry.
Hearing The Voice Of The Customer And Measuring Performance
While operating in a traditional sector, the Group has moved towards a more customer-oriented approach. The
process started internally as a complex management process, for which management and teams received
extensive training and were rewarded based on customer-driven goals and initiatives using ‘lean’ tools.
Customer Relationship Management (CRM) models and systems have been implemented. Today, sales and
marketing teams use CRM worldwide to track, measure and develop the quality and results of each individual
customer relationship, including anticipating their needs and business opportunities.
Listening to and understanding the Voice of the Customer is a fundamental approach that begins with day-to-
day customer management through each product delivery and extends into more sophisticated and customized
activities. The approach aims to respond effectively and quickly to customers' needs and the problems that arise
from feedback throughout the journey with the customer.
A further objective is to integrate in the next years the understanding of customer needs into business processes
and to use their feedback to build long-term strategies, inspire business decisions and promote continuous
improvement.
Directors’ Report 2024 Cementir Holding NV | 329
In addition to some transactional surveys and ‘informal’ monitoring of relationships as part of the entire Group’s
day-to-day business, in Europe and Asia-Pacific (APAC), the Group also conducts a Voice of the Customer
Survey (VoC) annually to measure customer satisfaction and engagement on product quality, services,
innovation, relationships, sales processes, after-sales services and technical support. The results of this survey
enable the Group to focus more on the customer in commercial operations. The organization uses these
important results to develop plans to optimize its value proposition and to further improve customer satisfaction.
The survey also identifies areas for improvement and is oriented towards strategic inter-functional, inter-
company and inter-regional initiatives, some of which are incorporated in the strategic project programme. In
2024, our market perimeter remained constant, with enhanced content and greater surveying of populations
with an improvement in the number of respondents.
More specifically, in the VoC, among other indicators, Cementir applies the Net Promoter Score (NPS) and
Customer Loyalty Score (CLS). These methodologies allow direct dialogue with customers to continuously
improve their experience and increase their loyalty.
In 2024, the overall NPS was 54.8, confirming and further improving the recovery trend started during 2023.
Looking at the CLS in 2024, the overall index confirmed that customers feel very satisfied with Group products
and services, for both the grey and white cement businesses and the score recorded was 98.0 higher than in
2023.
Additionally, greater emphasis was placed on the sustainability area, including more questions on this topic. The
observed trend confirms that sustainability is becoming a key aspect in the industry and having a sustainable
profile could offer a competitive edge.
2024
2023
2022
Overall Net Promoter Score (NPS)
54.8
40.6
34.8
2024
2023
2022
Overall Customer Loyalty Score (CLS)
98.0
94.9
93.2
S4-3 - Processes to remediate negative impacts and channels for consumers and end-users to raise
concerns
Cementir has established a comprehensive whistleblowing channel to facilitate the reporting of unethical
conduct, violations of the Code of Ethics, or other malpractices. This channel is accessible to both internal and
external stakeholders, including consumers and end-users. Reports can be submitted confidentially through
various means:
● Online Form: A dedicated online form is available on Cementir's official website for submitting reports.
● Email: Reports can be sent via email to a specified address provided on the website.
● Postal Mail: Reports can be mailed to a designated address listed on the website.
● Dedicated Hotline: A hotline is available for direct communication, ensuring anonymity and
confidentiality.
The Internal Audit Department of Cementir Holding is responsible for managing the whistleblowing process
across all companies within the Cementir Group. This department ensures that all reports are handled in
compliance with international standards and the company's Code of Ethics. The process emphasizes
cooperation between the Internal Audit Department and the whistleblower, with the latter's willingness to provide
all available information being fundamental for a proper investigation.
By providing these channels, Cementir encourages consumers and end-users to report any concerns or
unethical behaviour, fostering a culture of transparency and accountability within the company.
Directors’ Report 2024 Cementir Holding NV | 330
Whistleblowing Management Procedure is the main channel to report concerning conducts, including omissions,
that do not comply with laws and regulations.
The Procedure and its implementation are reviewed on a regular basis and may be amended if deemed
necessary by the Board of Directors, in compliance with the Group policy rules.
S4-4 - Taking action on material impacts on consumers and end-users, and approaches to managing
material risks and pursuing material opportunities related to consumers and end-users, and
effectiveness of those actions
The policies, procedures, and processes established by the company form the foundation for every action taken
to prevent, mitigate, or remediate negative material impacts, including the specific actions and approaches
required in response to each impact.
The company regularly trains its employees to identify phishing attempts delivered via email. This is done by
sending simulated phishing emails to all staff members regularly. Employees who successfully detect and report
the phishing attempt are congratulated, while those who miss the signs are informed about the specific indicators
they should have noticed in the fake phishing email.
To protect against cyberattacks using deceptive websites and fake login interfaces, the company introduced a
training program for all employees, focused on secure login practices. This initiative is part of the company’s
ongoing commitment to strengthening its cybersecurity defences and safeguarding the sensitive information it
manages daily
Par.35 In 2024, no severe human rights issues and incidents connected to Cementir consumers and/or end-
users have been reported
Impact
Actions taken, planned or underway to
prevent or mitigate material negative impacts
on consumers and end-users
Tracking and assessment
of the effectiveness of such
actions
Responsible
functions
Data
exposure
ICT Control
Training on cybersecurity
Cybersecurity incident
response plan
ICT
Human
Resources
Metrics and targets
S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities
An additional objective is to integrate a deeper understanding of customer needs into business processes in the
coming years, using their feedback to shape long-term strategies, guide business decisions, and drive
continuous improvement. Along with this, there will be the establishment of metrics and targets.
Directors’ Report 2024 Cementir Holding NV | 331
GOVERNANCE INFORMATION
G1 BUSINESS CONDUCT
“Strong governance is a prerequisite for achieving our ESG goals. We have adopted a governance structure
consistent with these objectives, to guide the Group towards a growing level of responsibility and awareness of
sustainability issues. “
Governance
GOV-1 - The role of the administrative, supervisory and management bodies
Detailed information about the role of the Board of Directors is available in the “Corporate Governance” section
of the Management Report.
Impact, risk and opportunity management
IRO-1- Description of the processes to identify and assess material impacts, risks and opportunities
The process to identify and assess material affected communities-related impacts, risks and opportunities, is
described in the “General Information” chapter, sections “Impact materiality assessment” and “Financial
materiality: risk and opportunities assessment”.”
The assessment resulted in the identification of the following risks:
● Whistleblowing Channel Policy with reference to confidentiality and anonymous complaint report
potential misconduct or concerns with the aim to correct the problem timely without compromising the company's
reputation, transparency and prevent financial risk/damages.
● Risks related to money laundering regulations' violations can lead to a financial loss for criminal and
civil fines as per penalties and reputation damage that can drive to a loss of sales and consequently on revenues.
● Risks related to anti-corruption regulations' violations can lead the Company to pay fines and sanctions
and can affect economic development, debarment from public contracts, and reputational damage.
● Business activity leading to price fixing or other manipulation of prices may result in material legal fines,
business disruption, and financial losses.
G1-1- Business conduct policies and corporate culture
Risks related to the protection of whistle-blowers and corruption and bribery are mainly managed through the
Code of Ethics and the Whistleblowing procedure, as described below (please refer to the General Information
chapter for further details).
The Cementir Group is active in the fight against corruption. Indeed, in its Code of Ethics, it expressly prohibits
‘bribes, illegitimate favours, collusion, requests, directly and/or through third parties, with personal benefits for
oneself or for others. Since 2015, the company has stepped up its efforts to fight corruption through a written
policy that defines roles, responsibilities, operating methods and behavioural rules. All Group companies,
employees and everyone acting in the name and on behalf of subsidiaries must comply with this collection of
behavioural rules in the performance of their responsibilities. Disciplinary measures, sanctions and other
consequences also apply in the case of noncompliance with the policy.
The main objective of the policy is to provide a consistent approach to the fight against corruption throughout
the Group, to ensure that companies operate according to Group values, to preserve the reputation of individual
companies and ensure compliance with applicable laws.
Directors’ Report 2024 Cementir Holding NV | 332
A compliance programme on corruption laws and in particular the UK Bribery Act was established during 2016.
As well as covering the anti-corruption policy, the programme also sets out a procedure regulating gifts and
hospitality, an assessment of corruption risk, due diligence to third parties and training and education plans.
In addition, Cementir Group prioritizes the training and development of its employees, offering comprehensive
programs to enhance skills and competencies across various levels. The Cementir Academy serves as the
central hub for these initiatives, providing both internal and external training opportunities. The academy's
curriculum includes courses on compliance topics such as the Code of Ethics, the 231 Model, fraud
management, and the whistleblowing system. The Company offers training on corporate culture, leadership
models, corporate values, and cybersecurity. These programs aim to align employee behaviour with internal
rules and procedures, fostering a culture of continuous improvement.
Through the Whistleblowing platform available to all stakeholders, any case of non-respect of Human Right can
be denounced and thanks to Internal Audit Department a series a remedial action to review the process can be
set and thus with the aim to have a better control on risks related to this topic. For this reason, Enterprise Risk
Management is responsible to monitor and tracks all social risks and negative and potential impacts to prevent
and/or mitigate the risk related to Human Rights.
In 2024, no critical concern has been raised through whistleblowing and consequently none has been reported.
For further details about whistleblowing system, please refer to the “Corporate governance” paragraph of the
Management Report.
The antitrust compliance programmers adopted locally focus on issuing specific policies, monitoring
their application through regular audit procedures, to ensure constant adequacy and correct
implementation
The corporate culture and fundamental principles that the Group management prioritizes—and which have
consistently guided the development activities of Cementir Group as a whole—are as follows: a firm belief in the
value of a competitive market, which benefits not only customers but also fosters healthy growth for the Group's
business; and a commitment to ensuring that employees across the Group operate independently from
competitors. This independence is achieved by relying solely on their own skills, expertise, coordination within
the Group, and the high quality of the Group’s products.
To uphold these principles, Cementir has adopted a comprehensive antitrust policy aimed at ensuring that all
business activities comply with competition laws across its operating countries. This policy outlines roles,
responsibilities, and procedures for antitrust compliance, explicitly prohibiting anti-competitive agreements and
the abuse of dominant market positions. It provides clear guidelines for interactions with suppliers, distributors,
customers, and competitors, while also addressing protocols for dawn raids and potential sanctions for
violations. The policy emphasizes the importance of training, reporting obligations, and adherence to free and
fair competition principles. It also references relevant articles from the Treaty on the Functioning of the European
Union and aligns with the Group's Code of Ethics.
These values are disseminated through affiliates operating in various geographical regions by implementing
consistent yet localized antitrust compliance programs. These programs are designed to educate all employees
and executives about the core values, fundamental principles of competition law, and specific regulations
applicable to their roles. Training events on these topics play a key role in fostering awareness and
understanding.
The localized antitrust compliance programs focus on issuing tailored policies and monitoring their application
through regular audit procedures to ensure ongoing adequacy and proper implementation. They are also
updated as necessary to reflect regulatory or legal developments.
Under each competition compliance program, all relevant actions and transactions undertaken by the company
are closely monitored. Their compliance with competition law requirements is thoroughly scrutinized by Internal
Directors’ Report 2024 Cementir Holding NV | 333
Audit to ensure adherence to both legal standards and best practices. This version improves readability while
maintaining a professional tone suitable for corporate communication
G1-3- Prevention and detection of corruption and bribery
Integrity And Competition
The Cementir Group sees integrity and competition as fundamental principles, especially in view of the specific
risks that characterize the cement and ready-mix concrete production sector. The Group’s Code of Ethics is the
reference document that sets out the rules of conduct that everyone in the Group and who works with it must
follow.
Alongside the Code of Ethics, within the individual regions, specific programmed and procedures have been
adopted to ensure that these risks are mitigated and that companies operate correctly. Training courses are
held periodically, organized by the Group to maintain a constantly elevated of focus on this matter.
Cementir Holding has adopted a Code of Ethics
28
endorsing the business principles that all Company officers
and employees, and anyone working with the company in any capacity, are required to comply with when
pursuing company business. The Code of Ethics, which has been distributed to all staff and is available for
consultation on the website www.cementirholding.com, covers respect for ethical and behavioural principles,
and the protection of health, safety and the environment.
The Code of Ethics also states that the Group’s operations must compete on the market in accordance with the
laws and regulations of the relevant countries, in a spirit of integrity, propriety and confidentiality. To achieve this
goal, the Cementir Group requires its employees to adhere to the highest standards of conduct in business, as
set out in the Code and in the procedures to which it refers. The Group protects employees if they report
violations of the Code and applies fair and proportional sanctions equally to all categories of employees, in
accordance with the laws, contracts and domestic regulations applicable in the various jurisdictions.
To monitor the continued compliance with the Code of Ethics by those employed by the Company and its
subsidiaries and uphold the applicable regulations, the Board of Directors established an Ethics Committee.
The Ethics Committee:
• Monitors dissemination of the Code of Ethics and suggests training and awareness initiatives.
• Reports to the Board of Directors on the status of the process of implementing the Code of Ethics, describing
the programmers and initiatives undertaken to achieve the Company’s goals, any changes required to ensure
its effectiveness and updates to the Code including in response to legal developments.
• Provides support with the interpretation of the Code of Ethics.
• Verifies violations.
• Follow up on any reports of infringements.
•Also addresses the periodic information report on whistleblowing.
In 2024, 15 alleged violations were reported and investigated.
The outcomes are as follows:
● 5 claims were confirmed, leading to disciplinary actions, organizational changes, and operational
improvements. These confirmed claims involved:
28
For the Code of Ethics, please see Code of Ethics 25 august 2020.pdf (cementirholding.com).
Directors’ Report 2024 Cementir Holding NV | 334
o One instance of an employee misusing industrial-use fuel for personal purposes.
o Two instances of Code of Ethics violations by employees in the purchasing and maintenance
departments. These employees bypassed internal purchasing procedures, compromising the integrity of the
procurement process.
o Two instances of non-adherence to Group procedures regarding reporting communication between
local business units and the headquarter, as well as the planning of maintenance activities.
● 4 claims were dismissed due to insufficient information to proceed with an investigation.
● 1 claim was not confirmed after investigation.
● 5 claims remain under analysis as of March 2024.
For all confirmed violations, disciplinary measures were proportionate to the seriousness of each case and
complied with local legislation. No critical concerns have been raised through whistleblowing mechanisms, and
consequently, none have been reported.
2024
Total reports
15
Of which confirmed
5
Of which filled not confirmed and/or closed being generic
5
Of which on-going
5
Countries of provenance of the reports ascertained
Turkey, Malaysia, China
Matter alleged in the reports ascertained
Non-adherence to Group procedures
Outcome of cases investigated
Disciplinary actions, organizational changes, and
operational improvements
Directors’ Report 2024 Cementir Holding NV | 335
During the 2024 Fiscal Year Cementir provided training to its at-risk own workers in terms of its policy. For those
at-risk functions, the training is mandatory, but Cementir also made available voluntary training for other own
workers. Details of its training during the year is as it follows in the below table.
FUNCTIONS AT RISK
HEAD OF
REGION/BU
MANAGING
DIRECTOR
GROUP
CHIEF
OFFICERS
SALES, MARKETING
& BUSINESS
DEVELOPMENT
SUPPLY
CHAIN
OTHERS
WC
BC
TRAINING COVERAGE
Y
Y
Y
Y
TOTAL
17
8
175
147
279
75
TOTAL RECEIVING
TRAINING
16
8
137
129
175
0
FREQUENCY
ANNUALLY
ANNUALLY
ANNUALLY
ANNUALLY
HIRING
-
Computer Based Training
Y
Y
Y
Y
Y
TOPICS COVERED
-
-
-
-
Definition of corruption
Y
Y
Y
Y
Y
Policy
Y
Y
Y
Y
Y
Procedures on
suspiscion/detection
Y
Y
Y
Y
Y
From 2020 the full training offered through Cementir Academy to Cementir Group’s employees is extended to
the members of the Board of Directors of Cementir Holding.
Metrics and targets
G1-4 Incidents of corruption or bribery
In 2024, Cementir did not face any convictions or fines for breaching anti-corruption or anti-bribery laws. Should
any violations be discovered, the company is committed to taking appropriate corrective actions, which may
include revising standards or procedures and enforcing disciplinary measures such as warnings or terminations.
Incidents of corruption or bribery
Unit of measure
2024
2023
2022
Convictions for violation of anti-
corruption and anti- bribery laws
n
0
0
0
Fines for violation of anti-corruption
and anti- bribery laws
€
0
0
0
Directors’ Report 2024 Cementir Holding NV | 336
Incidents of corruption or bribery
Unit of measure
2024
2023
2022
confirmed incidents of corruption or
bribery
n
0
0
0
confirmed incidents in which own
workers were dismissed or
disciplined for corruption or bribery-
related incidents
n
0
0
0
confirmed incidents relating to
contracts with business partners
that were terminated or not
renewed due to violations related to
corruption or bribery
n
0
0
0
An administrative dispute is pending before the Court of Appeal in Türkiye, brought by the Turkish company
Çimentaş AS, indirect subsidiary of Cementir Holding. The dispute relates to the order issued by the Turkish
stock exchange’s regulatory and supervisory body (the Capital Market Board - CMB), requiring Çimentaş AS to
demand that the concerned Cementir Group companies pay back around 100 million Turkish lira (now equal to
around 3 million euros) from hidden profit distribution, allegedly Izmir, requesting that the company be ordered
to pay to Çimentaş AS an amount provisionally set at approximately 1 million Turkish lira. The Company duly
appeared in court, arguing the total lack of foundation of the plaintiff’s argument and requested that the civil
proceedings be suspended until the administrative proceeding is finally settled. With a ruling of 1 July 2020, the
Court of Appeal in Türkiye declared the lack of Turkish jurisdiction in relation to these proceedings. That
judgment was overturned on 18 October 2021 by the Supreme Court, which definitively affirmed the existence
of Turkish jurisdiction. In a judgment dated 6 September 2023, the Izmir Court ordered Cementir Holding to pay
Cimentas approximately 1 million Turkish lira. Cementir Holding and CMB appealed the decision before the
Court of Appeal. There is not any other significant litigation or significant instances of non-compliance pending.
Directors’ Report 2024 Cementir Holding NV | 337
OTHER INFORMATION
The grants by type of initiative are explained in the following tables.
Category
Description
Charitable donations
Refers to one-off or occasional support to good causes in response to the
needs and appeals of charitable and community organisations, requests
from employees, or in reaction to external events such as emergency relief
situations.
Community investments
Refers to long-term strategic involvement in, and partnership with,
community organisations to address a range of social issues chosen by the
Group (for example, periodical grants / donations to local schools).
Commercial initiatives
Refers to business-related activities in the community, usually undertaken
by commercial departments to directly support the success of the company,
promoting its corporate and brand identities and other policies, in
partnership with charities and community-based organisations.
In Türkiye, cement companies and waste firms regularly donate food packages to local communities during
Ramadan (a religious festivity), to renew their tangible efforts towards caring and assistance to the local
population. Additionally, the cement companies provide free cement to support the needs of villages close to
plant locations.
In 2024, CCB - Compagnie des Ciments Belges once again demonstrated its unwavering commitment to
supporting and engaging with our local community. This year, the Company proudly opened its quarries to the
public, bridging the gap between its internal and external stakeholders inviting everyone to explore the
operations up close.
Directors’ Report 2024 Cementir Holding NV | 338
The flagship event, the ‘Marche des carrières,’ saw record-breaking attendance in 2024, with over 3,800
participants a remarkable 52% increase compared to 2023 with 2,500 participants. This annual event,
organized in collaboration with the local school for children aged 3 to 12, offers various walking routes (5, 10,
14, and 20 km) through the plant, quarry, and the surrounding forest. Starting and ending at the CCB car park,
this walk provides a unique opportunity for participants to learn about the Company and its commitment to
biodiversity. Moreover, each year, CCB employees volunteer their time to ensure the success of this event. All
volunteers are responsible to organize the walk and, during the day of the event, they remain at the plant to
oversee safety providing insightful explanations about the operations, activities, and environmental initiatives.
CCB is proud of its ongoing efforts to foster a strong connection with the local community and looks forward to
continuing this tradition in the years to come.
Aalborg Portland China, the Chinese subsidiary, demonstrates a strong commitment to the local community.
Among the activities consistently performed, it's worth mentioning that during traditional holidays, some
employees visit nursing homes to provide support and companionship to the residents.
Aalborg Portland Malaysia is strongly committed to supporting local schools and young people’s education.
In 2024, Aalborg Portland Malaysia continued to support the Employee Welfare Fund for youth education,
established assistance for the families of deceased former company employees, condolences for the deaths of
employees and immediate family members, and even provided shelter for dogs. Community activities include
monthly contributions to the school for children with intellectual disabilities (Sekolah Semangat Maju, Batu Gajah
Branch), donations to villagers for poor sponsorship for holiday meals, basic needs, and more. APMA has also
extended commercial initiatives with the competent administrations, associations and client companies for
donations and sponsorships.
Earthquake Relief Efforts
Following the devastating earthquake that struck 11 provinces in eastern Turkey on February 6, 2023, in addition
to extensive relief efforts were carried out to support the local community, additional relief effort continued in
2024.
During 2024, a total of 2,6 million TL in donations were disbursed and specifically directed towards:
Çimentaş aimed to support the educational journey of students affected by the earthquake and receiving
scholarships. As part of this initiative, Çimentaş fully covered the educational expenses of two high school
students impacted by the disaster. (1.094KTL)
In an effort to support the region's recovery, Çimentaş collaborated with local neighbourhoods and the provincial
government in Elazığ to promote youth participation in sports. This collaboration included providing sports
equipment and sponsorship support. (350K TL)
In collaboration with the governorship in İzmir, provided meal support to families coming from earthquake region
in the Ramadan period. (495KTL)
Household and furniture support to Çimentaş employee who lost his house in earthquake. (85K TL)
In collaboration with Kontak Innovative Learning Centre, "Disaster Preparedness" workshops were organized
to increase the awareness of children. (500K TL). Donation to an NGO to cover housing rental expenses of an
earthquake-affected family in the region. (80K TL)
Cimentas Education And Health Foundation
In Türkiye, through the Çimentaş Education and Health Foundation, established in 1986, the Company is
committed to providing financial assistance and educational materials to families and schools. Since it was
Directors’ Report 2024 Cementir Holding NV | 339
founded, the Foundation has sponsored over 500 scholarships for secondary school pupils and university
students and has contributed to the renovation of various school buildings close to the plant in İzmir, Türkiye.
Over the years, in Türkiye, the Company’s local Foundation implemented several educational projects such as
the ‘Işıkkent Educational Campus’, ‘Çimentaş Primary School’ and ‘Çimentaş High School’.
Visit the following link for further details: https://www.isikkent.k12.tr/en-US. and Çimentaş Eğitim ve Sağlık Vakfı
– Çimentaş Eğitim ve Sağlık Vakfı (cesvak.org)
Collaboration with NGOs
• Throughout the year, we carried out various collaborations with LÖSEV (Foundation for Children with
Leukemia) (768K TL) contributing to the future of children in need.
• Marathon İzmir: Çimentaş volunteer employees participated in the race to raise awareness and support
the educational expenses of children battling cancer.
Sponsorships
To enhance our brand visibility, contribute to society, and support significant events in our industry, we have
undertaken various sponsorship initiatives. Throughout the year, we allocated a total budget of 4.8 million TRY
for these efforts.
• Çimentaş Elazığspor Naming Sponsorship: Through a naming sponsorship agreement with
Elazığspor, the club’s name was changed to "Çimentaş Elazığspor", strengthening our brand presence in the
region and fostering strong ties with local communities. (4M TRY)
• Supporting Youth Careers: We provided support to the uSELESScASE coding team founded by
students of Bornova Anadolu High School, contributing to their projects in engineering and technology. (35K
TRY)
• AIESEC Boost Your Career Event: As a Gold Sponsor, we participated in this event in İzmir, aimed
at helping young individuals shape their careers. This allowed us to directly interact with students. (30K TRY)
• BetonArt Architecture Summer School: We sponsored the summer school hosted by Süleyman
Demirel University, enabling architecture and interior design students to explore the diverse applications of
concrete. (208K TRY)
• ESİAD 3rd Investment Summit: As a Gold Sponsor, we took part in this summit that brings together
the business and finance sectors. (350K TRY)
• İzmir Italian Chamber of Commerce 30th Anniversary Gala: By sponsoring this exclusive event that
unites the Italian and Turkish business communities, we seized the opportunity to strengthen our
international collaborations. (190K TRY)
Recovery Of Waste Heat From Cement Kilns In Aalborg:
Since 1990, Aalborg Portland has provided district heating to the Aalborg municipality. To produce cement, raw
materials such as limestone and sand must be burned at temperatures of up to 1500°C.
Due to this high temperature process, the Aalborg Portland cement factory has massive reserves of excess
heat.
One of the main sources of waste heat is the flue gas emitted from the white cement kilns. The solution to this
energy loss was to implement a heat recovery system, in which the flue gasses from the five white kilns of the
Aalborg plant are used in heat exchanger installations to transfer the thermal energy from the flue gas to
Aalborg’s district heating network.
The Aalborg plant recovers heat excess from cement production to provide district heating to the local
inhabitants. The recovered thermal energy is used to heat the homes of 30,000 families maximum. In 2024,
Aalborg Portland delivered approximately 356422 Mwh of energy to the Aalborg municipality.
Directors’ Report 2024 Cementir Holding NV | 340
The annual CO₂ savings from this heat recovery system have been estimated at 150,000 tons. The calculation
is based on the amount of CO₂ that is not emitted from the local coal-fired power station because the total needs
are partially covered by the heat coming from the Aalborg plant.
In this way, energy that has already been produced during cement production is recycled and delivered to the
district heating system, so that the energy does not have to be produced twice.
White-Hub
White-Hub acts as an online community dedicated to Aalborg White® and InWhite® solutions, fostering
connections between professionals in the building material and construction sectors. It stands out as the only
global community focused on white cement, benefiting from Cementir’s unique geographic presence in different
regions.
In 2024, sustainability, innovation, and decarbonization are key themes woven throughout all our blog content.
In the case studies of white concrete buildings completed in 2024, Aalborg White precast white concrete cladding
has gained increasing popularity among globally renowned architects for landmark cultural architecture and
high-end residential projects, especially those with LEED or similar certification requirements. Voice of Customer
has been prioritized receiving positive feedback for the high value adding portfolio under the InWhite Solution®.
InWhite application and project footprint has expanded from Europe to Australia and China. Cementir
encourages collaboration with customers and stakeholders for content creation and sharing their perspectives,
offering valuable insights and reference points for the low carbon transformation in the industry.
The informative content spans diverse topics such as innovative technologies and applications, sustainable
practices, the voice of customers and innovative trends in the industry. The platform facilitates mutual
communications, allowing industrial users to stay informed about our local and global news while contributing
their own content, establishing an influential ‘community of practice’ centred around white cement and its value
chain.
In line with our local approach, the blogs have been translated into local languages and distributed through our
regional/local official media channels. The extensive reach has been further amplified through partnerships with
industry associations’ media outlets, acting as a pivotal connection for local customers and industries to
understand the footprints, achievements and developments of the Cementir at a global level. This approach has
won acclaim and recognition in the sector, consolidating the position of brand leader in the industry and customer
loyalty.
E-Learning
The eLearning platform functions as a vital communication tool, intimately connecting Cementir with its
customers and industrial users over the globe, offering value added services tied to our products. This digital
platform provides a flexible and convenient solution without any constraints related to geography, timing or costs.
Courses are carefully designed based on a customer-driven approach, featuring insightful and in-depth
educational content. This includes demonstrations of new products, inspiring applications and case studies, and
the achievements and outlooks of our business through collaboration with in-house experts, innovators and
pioneering industrial users, successfully enhancing our brand credibility.
During 2022 the Employee Experience Team has been set, the aim was to involve and empower employees
working within the Company.
It has been established in Türkiye with the purpose of involving employees in the decision-making process.
Their involvement is aimed at increasing employees’ engagement and motivation. The team, with the
coordination of an HR member, is composed of approximately 20 employees from different departments that
volunteered to join. The Employee Experience Team meets regularly on a monthly basis to discuss different
Directors’ Report 2024 Cementir Holding NV | 341
topics, from the proposal of activities to improve the well-being of employees, involvement in social responsibility
projects that also affects the local community and the organization of employee meetings to stimulate discussion
and meetings. The team aims to focus on the most important points that can positively impact employee
engagement and motivation. They then submit these ideas to the management team that, if it finds them
interesting, approves and implements them.
Shown below are the number of women, recorded in 2024, at different levels of responsibility.
Regarding Internal Communication, it has been confirmed that the standard aspects defined at the Group level
mainly concern:
• Policies
• Procedures
• Organizational announcements
• Financial results
• Group rating results on sustainability topics
In 2024, internal communication primarily focused on the following topics:
• Continuous updates on financial performance and business-related matters, including the year-end
results presentation and the introduction of the 2024-2026 industrial plan.
• The launch of a Group-wide communication campaign for World Safety Day, supported by all local
business units, aimed at promoting safety as a shared and daily value.
• A strong focus on sustainability topics, with regular sharing of key achievements (e.g., the Europe's
Climate Leaders 2024 ranking, ESG Identity Corporate Index rating, etc.) and employee awareness initiatives
through dedicated ESG training courses.
• The sharing of various Community Seminars organized by the technical, human resources, supply chain
and sales departments to enhance business interactions, exchange local expertise and know-how, standardize
reporting practices and processes.
The year 2024 concluded with the Group Management Team Meeting held in Rome, bringing together central
and local Top Management as well as representatives from the technical and financial departments across all
Regions.
A full day of panel discussions and in-depth sessions was dedicated to presenting and revisiting the key pillars
of the Group’s strategy, consolidating the proposal for the new Industrial Plan, and celebrating achievements in
Sustainability, Health & Safety, Process Improvement, and Innovation.
Directors’ Report 2024 Cementir Holding NV | 342
BLANK PAGE
CONSOLIDATED FINANCIAL STATEMENTS 2024
Consolidated Financial Statements 2024 Cementir Holding NV | 344
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of financial position
(Before profit appropriation)
(EUR'000)
Note
31 December 2024
31 December 2023
ASSETS
Intangible assets with a finite useful life
1
194,593
188,419
Intangible assets with an indefinite useful life (goodwill)
2
448,262
404,515
Property, plant and equipment
3
990,085
908,930
Investment property
4
116,815
87,585
Equity-accounted investments
5
10,136
6,529
Other equity investments
6
384
352
Non-current financial assets
9
529
125
Deferred tax assets
20
41,694
46,127
Other non-current assets
11
402
569
TOTAL NON-CURRENT ASSETS
1,802,900
1,643,151
Inventories
7
228,135
230,760
Trade receivables
8
181,786
164,931
Current financial assets
9
17,635
45,334
Current tax assets
10
13,280
5,326
Other current assets
11
26,385
20,301
Cash and cash equivalents
12
485,603
412,391
TOTAL CURRENT ASSETS
952,824
879,043
TOTAL ASSETS
2,755,724
2,522,194
EQUITY AND LIABILITIES
Share capital
159,120
159,120
Share premium reserve
27,702
27,702
Other reserves
1,328,569
1,114,878
Profit (loss) attributable to the owners of the parent
201,640
201,364
Equity attributable to owners of the Parent
13
1,717,031
1,503,064
Reserves attributable to non-controlling interests
126,538
133,641
Profit (loss) attributable to non-controlling interests
12,815
14,128
Equity attributable to non-controlling interests
13
139,353
147,769
TOTAL EQUITY
1,856,384
1,650,833
LIABILITIES
NON-CURRENT LIABILITIES
Employee benefits
14
25,941
22,807
Non-current provisions
15
25,322
25,485
Non-current financial liabilities
17
159,427
161,083
Deferred tax liabilities
20
172,450
160,009
Other non-current liabilities
19
237
247
TOTAL NON-CURRENT LIABILITIES
383,377
369,631
Current provisions
15
4,776
3,809
Trade payables
16
362,108
320,054
Current financial liabilities
17
53,376
79,032
Current tax liabilities
18
24,066
24,010
Other current liabilities
19
71,637
74,825
TOTAL CURRENT LIABILITIES
515,963
501,730
TOTAL LIABILITIES
899,340
871,361
TOTAL EQUITY AND LIABILITIES
2,755,724
2,522,194
Consolidated Financial Statements 2024 Cementir Holding NV | 345
Consolidated income statement
(EUR'000)
Note
2024
2023
REVENUE
21
1,686,943
1,694,247
Change in work in progress and finished goods
7
(497)
11,671
Increase for internal work
22
921
1,085
Other income
22
26,528
30,544
TOTAL OPERATING REVENUE
1,713,895
1,737,547
Raw materials costs
23
(708,448)
(739,121)
Personnel costs
24
(215,192)
(203,125)
Other operating costs
25
(382,913)
(384,179)
EBITDA
407,342
411,122
Amortisation and depreciation
26
(142,437)
(130,302)
Additions to provision
26
(2,799)
(2,326)
Impairment losses
26
(84)
(165)
Total amortisation, depreciation, impairment losses and
provisions
(145,320)
(132,793)
EBIT
262,022
278,329
Share of net profits of equity-accounted investees
27
1,154
772
Financial income
27
27,617
17,430
Financial expense
27
(22,460)
(17,473)
Exchange rate profits / (losses)
27
22,498
15,538
Net income/(expense) from hyperinflation
27
(5,939)
(3,886)
Net financial income (expense)
27
21,716
11,609
NET FINANCIAL INCOME (EXPENSE) AND SHARE OF
NET PROFITS OF EQUITY-ACCOUNTED INVESTEES
22,870
12,381
PROFIT (LOSS) BEFORE TAXES
284,892
290,710
Income taxes
28
(70,437)
(75,218)
PROFIT FROM CONTINUING OPERATIONS
214,455
215,492
PROFIT (LOSS) FOR THE YEAR
214,455
215,492
Attributable to:
Non-controlling interests
12,815
14,128
Owners of the Parent
201,640
201,364
(EUR)
Earnings per ordinary share
Basic earnings per share
29
1.297
1.295
Diluted earnings per share
29
1.297
1.295
(EUR)
Earnings per ordinary share from continuing operations
Basic earnings per share
29
1.297
1.295
Diluted earnings per share
29
1.297
1.295
Consolidated Financial Statements 2024 Cementir Holding NV | 346
Consolidated statement of comprehensive income
(EUR'000)
Note
2024
2023
PROFIT (LOSS) FOR THE YEAR
214,455
215,492
Other components of comprehensive income:
Items that will never be reclassified to profit or loss for the year:
Net actuarial gains (losses) on post-employment benefits
30
(2,634)
1,294
Taxes recognised in equity
30
642
(326)
Total items that will never be reclassified to profit or loss
(1,992)
968
Items that may be reclassified to profit or loss for the year:
Foreign currency translation differences - foreign operations
30
(48,295)
(162,157)
Profit (losses) on derivatives
30
(9,716)
(3,381)
Taxes recognised in equity
30
(17)
735
Total items that may be reclassified to profit or loss
(58,028)
(164,803)
Total other comprehensive expense, net of tax
(60,020)
(163,835)
TOTAL COMPREHENSIVE INCOME (EXPENSE) FOR THE YEAR
154,435
51,657
Attributable to:
Non-controlling interests
17,943
(423)
Owners of the Parent
136,492
52,080
Consolidated statement of changes in equity
Note
Share
capital
Share
premium
reserve
Other reserves
Profit (loss)
attributable
to the
owners of
the parent
Equity
attributable
to the
owners of
the parent
Profit (loss)
attributable
to non-
controlling
interests
Reserves
attributable
to non-
controlling
interests
Equity
attributable
to non-
controlling
interests
Total
Equity
Legal
reserve
Translation
reserve
Hedge
reserve
Retained
earnings
(EUR'000)
Equity at 1 January 2024
13
159,120
27,701
-
(890,853)
7,558
1,998,174
201,364
1,503,064
14,128
133,641
147,769
1,650,833
Allocation of 2023 profit (loss)
-
-
-
-
-
201,364
(201,364)
-
(14,128)
14,128
-
-
Distribution of 2023 dividends
-
-
-
-
-
(43,546)
-
(43,546)
-
(7,232)
(7,232)
(50,778)
Minority interests in the acquisition of a subsidiary
-
-
-
(36,013)
-
28,731
-
(7,282)
-
(22,718)
(22,718)
(30,000)
Total transactions with investors
-
-
-
(36,013)
-
186,549
(201,364)
(50,828)
(14,128)
(15,822)
(29,950)
(80,778)
Profit (loss) for the year
-
-
-
-
-
-
201,640
201,640
12,815
-
12,815
214,455
Change in translation reserve
30
-
-
-
(53,192)
-
-
-
(53,192)
-
4,897
4,897
(48,295)
Net actuarial gains
30
-
-
-
-
-
(2,223)
-
(2,223)
-
231
231
(1,992)
Loss on derivatives
30
-
-
-
-
(9,733)
-
-
(9,733)
-
-
-
(9,733)
Other comprehensive income (expense)
-
-
-
(53,192)
(9,733)
(2,223)
-
(65,148)
-
5,128
5,128
(60,020)
Total comprehensive income (expense)
30
-
-
-
(53,192)
(9,733)
(2,223)
201,640
136,492
12,815
5,128
17,943
154,435
Adjustment for hyperinflation in Türkiye
-
-
-
-
-
127,498
-
127,498
-
4,589
4,589
132,087
Change in other reserves
-
-
-
-
-
805
-
805
-
(998)
(998)
(193)
Total other transactions
-
-
-
-
-
128,303
-
128,303
-
3,591
3,591
131,894
Equity at 31 December 2024
13
159,120
27,701
-
(980,058)
(2,175)
2,310,803
201,640
1,717,031
12,815
126,538
139,353
1,856,384
Consolidated Financial Statements 2024 Cementir Holding NV | 348
Note
Share
capital
Share
premium
reserve
Other reserves
Profit (loss)
attributable
to the
owners of
the parent
Equity
attributable
to the
owners of
the parent
Profit (loss)
attributable
to non-
controlling
interests
Reserves
attributable
to non-
controlling
interests
Equity
attributable
to non-
controlling
interests
Total
Equity
Legal
reserve
Translation
reserve
Hedge
reserve
Retained
earnings
(EUR'000)
Equity at 1 January 2023
13
159,120
27,701
-
(743,235)
10,200
1,752,111
162,286
1,368,183
19,271
135,319
154,590
1,522,773
Allocation of 2022 profit
-
-
-
-
-
162,286
(162,286)
-
(19,271)
19,271
-
-
Distribution of 2022 dividends
-
-
-
-
-
(34,214)
-
(34,214)
-
(10,023)
(10,023)
(44,237)
Treasury share purchase
-
-
-
-
-
-
-
-
-
-
-
-
Total transactions with investors
-
-
-
-
-
128,072
(162,286)
(34,214)
(19,271)
9,248
(10,023)
(44,237)
Profit (loss) for the year
-
-
-
-
-
-
201,364
201,364
14,128
-
14,128
215,492
Change in translation reserve
30
-
-
-
(147,618)
-
-
-
(147,618)
-
(14,539)
(14,539)
(162,157)
Net actuarial gains
30
-
-
-
-
-
970
-
970
-
(2)
(2)
968
Loss on derivatives
30
-
-
-
-
(2,642)
-
-
(2,642)
-
(4)
(4)
(2,646)
Other comprehensive income (expense)
-
-
-
(147,618)
(2,642)
970
-
(149,290)
-
(14,545)
(14,545)
(163,835)
Total comprehensive income (expense)
30
-
-
-
(147,618)
(2,642)
970
201,364
52,074
14,128
(14,545)
(417)
51,657
Adjustment for hyperinflation in Türkiye
-
-
-
-
-
115,420
-
115,420
-
3,183
3,183
118,603
Change in other reserves
-
-
-
-
-
1,601
-
1,601
-
436
436
2,037
Total other transactions
-
-
-
-
-
117,021
-
117,021
-
3,619
3,619
120,640
Equity at 31 December 2023
13
159,120
27,701
-
(890,853)
7,558
1,998,174
201,364
1,503,064
14,128
133,641
147,769
1,650,833
Consolidated statement of cash flows
(EUR'000)
Note
31 December
31 December
2024
2023
Profit/(loss) for the year
214,455
215,492
Amortisation and depreciation
26
142,437
130,302
Net Reversals of impairment losses
(11,281)
(7,505)
Share of net profits of equity-accounted investees
27
(1,154)
(772)
Net financial income (expense)
27
(6,813)
(16,252)
Gains on disposals
(184)
(11,343)
Income taxes
28
70,437
75,218
Change in employee benefits
594
(823)
Change in provisions (current and non-current)
1,372
(2,738)
Operating cash flows before changes in working capital
409,863
381,579
(Increase) decrease in inventories
96
(28,544)
(Increase) decrease in trade receivables
(22,557)
8,758
Increase (decrease) in trade payables
42,010
(12,282)
Change in other non-current and current assets and liabilities
(586)
14,268
Change in current and deferred taxes
(13,699)
4,383
Operating cash flows
415,127
368,162
Dividends collected
588
114
Interest collected
17,700
11,023
Interest paid
(11,761)
(12,850)
Other net income (expense) collected (paid)
(12,639)
(4,784)
Income taxes paid
(65,115)
(61,280)
CASH FLOWS FROM OPERATING ACTIVITIES (A)
343,900
300,385
Investments in intangible assets
(12,404)
(10,681)
Investments in property, plant and equipment
(115,238)
(95,890)
Acquisitions, net of cash and cash equivalents acquired
(17,964)
(5,908)
Proceeds from the sale of intangible assets
-
595
Proceeds from the sale of property, plant and equipment
2,706
15,545
Proceeds from the sale of equity investments and non-current securities
-
3,527
Change in non-current financial assets
(404)
719
Change in current financial assets
33,984
337
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES (B)
(109,320)
(91,756)
Change in non-current financial liabilities
17
(2,714)
(42,364)
Change in current financial liabilities
17
(73,267)
(59,094)
Dividends distributed
(58,215)
(37,548)
Other changes in equity
13
(30,000)
-
CASH FLOWS USED IN FINANCING ACTIVITIES (C)
(164,196)
(139,006)
NET EXCHANGE RATE PROFIT (LOSSES) ON CASH AND CASH
EQUIVALENTS (D)
2,828
(12,987)
NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C+D)
73,212
56,633
Opening cash and cash equivalents
12
412,391
355,759
Closing cash and cash equivalents
12
485,603
412,391
Consolidated Financial Statements 2024 Cementir Holding NV | 350
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
General information
On 28 June 2019, the Extraordinary Shareholders’ Meeting approved the transformation of the Company
Cementir Holding SpA from a joint-stock company under Italian law into a Naamloze Vennootschap under
Dutch law, consequent to the transfer of the registered office to Amsterdam, Netherlands (36, Zuidplein, 1077
XV. The transfer and transformation process was completed on 5 October 2019.
On that date the Board of Directors resolved to establish an operational and secondary headquarters in Rome,
at 200 Corso Francia. The company's tax residence remained in Italy. As part of this transformation,
Management aligned the equity composition from the Italian Law requirements with the Dutch Civil Code
requirements.
The Company remained listed on the STAR segment of the Milan Stock Exchange.
Cementir Holding NV (the “Parent”) and its subsidiaries make up the Cementir Holding Group (the “Group”),
mainly active in the cement and ready-mixed concrete sector in Italy and around the world.
As of 31 December 2024, shareholders holding shares exceeding 3% of share capital, as indicated in the book
of shareholders, from communications received pursuant to Art. 5:28 of Financial Supervision Act and other
information available, are:
1) Francesco Gaetano Caltagirone – 106,217,754 shares (66.753%). The shareholding is held as follows:
- Direct ownership of 1,327,560 shares (0.834%)
- Indirect ownership through the companies:
• Calt 2004 Srl – 49,168,424 shares (30.900%)
• Caltagirone SpA – 22,800,000 shares (14.329%)
• FGC SpA – 17,600,000 shares (11.061%)
• Azufin Spa – 10,720,000 shares (6.737%)
• Capitolium Srl – 2,600,000 shares (1.634%)
• SO.CO.GE.IM Spa – 1,500,000 shares (0.943%)
• Compagnia Gestioni Immobiliare Srl - 500,000 shares (0.314%)
• Vianini Lavori SpA - 1,770 shares (0.001%)
2) Francesco Caltagirone – 8,775,299 shares (5.515%). The above investment is held indirectly through the
company Chupas 2007 Srl for 8,775,299 shares (5.515%).
On 11 March 2025, the Company’s Board of Directors approved these consolidated financial statements as of
31 December 2024 and authorised their publication on 11 March 2025.
Cementir Holding N.V. is included line-by-line in the consolidated financial statements of the direct parent
company Caltagirone SpA, available on the website of Caltagirone Group. At the date of preparation of these
consolidated financial statements, the ultimate Parent is FGC SpA due to the shares held via its subsidiaries.
The consolidated financial statements as of 31 December 2024 include the financial statements of the Parent
and its subsidiaries. The financial statements of the individual companies at the same date prepared by their
directors were used for the consolidation, in accordance with uniform accounting policies.
Consolidated Financial Statements 2024 Cementir Holding NV | 351
Going Concern
The financial statements of the Group have been prepared based on the going concern assumption. The Group
has sufficient reserves to meet its obligations and will be able to operate for a period of at least 12 months from
the date of preparation of the financial statements. The assessment carried out by the Board of Directors
considered the Group's main activities and risks, together with factors that may affect the Group's future
performance, such as climate change and environmental requirements, financial position, expected cash flows,
liquidity position and financing facilities. Based on the above-mentioned assumptions, the Directors have
reasonable expectations that the Group will continue to operate as a going concern.
Climate Change
The cement industry's ability to reduce its CO2 emissions and respond to climate change has become a focus
for investors. In 2021, the Cementir Group launched a project to implement the recommendations of the TCFD
(Task Force on Climate-Related Financial Disclosure) by committing to being transparent on the risks and
opportunities related to climate change. Cementir is also committed to ensuring the transparency of its climate-
related risks and opportunities in line with the EU Taxonomy. The identification, assessment and effective
management of risks and opportunities related to climate change are fully integrated into the Group's risk
management process.
As suggested by the TCFD, the Group monitors the risks and opportunities arising from the evolution of
transition scenarios and the evolution of physical variables. For further details on the scenarios used, please
see the description in the section “Environmental information – E1 Climate change”.
Physical variables are divided into two risk categories:
A. Acute: linked to the occurrence of extreme weather conditions such as cyclones, hurricanes or floods.
Acute physical phenomena, in the various cases, are characterised by a notable intensity and a
frequency of occurrence which is not high in the short term, but which, considering long-term
scenarios, sees a clear increasing trend;
B. Chronic: refers to gradual and long-term changes in climate patterns (e.g., sustained high
temperatures) that can cause sea-level rises or chronic heat waves.
Regarding to the energy transition process, towards a progressive reduction of carbon emissions, there are
risks and opportunities linked to changes in the regulatory, technological, market and reputational context.
The Group has decided to align itself with the TCFD framework to clearly represent the types of risks and
opportunities indicating how each of them must be managed. The effects were assessed over three time
horizons: the short term (1-3 years), linked to the implementation of the Business Plan; the medium term until
2030 during which it will be possible to see the effects of the energy transition; the long term up to 2050 during
which the Group is committed to achieving net-zero emissions along its entire value chain. As the TCFD states,
the process of disclosing risks and opportunities related to climate change will be gradual and incremental
from year to year.
For further details on the impact of climate change on company estimates and valuations, please see the
section “Metrics and targets”.
It should also be noted that the analysis carried out did not reveal any uncertainty factors that could lead to
significant adjustments to the company's estimates in the short/medium term.
Consolidated Financial Statements 2024 Cementir Holding NV | 352
Statement of compliance with the IFRS
These consolidated financial statements as of 31 December 2024 have been prepared in accordance with
IFRS Accounting Standards as adopted by the European Union (EU-IFRSs) and with Section 2:362(9) of the
Dutch Civil Code.
Certain parts of this annual report contain alternative indicators that are not financial performance or liquidity
indicators under IFRS. These are commonly referred to as alternative (non-IFRS) performance indicators and
include items such as earnings before interest, taxes, depreciation and amortisation (EBITDA) and earnings
before income tax (EBIT). The Company calculates EBITDA before provisions.
Basis of presentation
The consolidated financial statements as of 31 December 2024 are presented in euros, the Parent’s functional
currency. All amounts are expressed in thousands of euros, unless indicated otherwise. The consolidated
financial statements consist of a statement of financial position, an income statement, a statement of
comprehensive income, a statement of changes in equity, a statement of cash flows and these notes. The Group
has opted to present these statements as follows:
- the statement of financial position presents current and non-current assets and liabilities separately;
- the income statement classifies costs by nature;
- the statement of comprehensive income presents the effect of gains and losses recognised directly in equity,
starting from the profit or loss for the year;
- the statement of cash flows is presented using the indirect method.
The general criterion adopted is the historical cost method, except for items recognised and measured at fair value
based on specific EU-IFRS, as described below in the section on accounting policies.
The Accounting Standards have been applied consistently with the guidance provided in the “Framework for the
preparation and presentation of financial statements”. The Group was not required to make any departures as per IAS
1.19.
In the financial statements, in addition to those specifically requested by IAS 1 and the other standards, when
material, to show transactions with related parties separately or, in the case of the income statement, profits and
losses on non-recurring or unusual transactions.
The Parent Cementir Holding N.V. has also prepared its company financial statements as of 31 December 2024
in accordance with EU-IFRS and with Section 2:362(9) of Dutch Civil Code, as defined above.
Consolidated Financial Statements 2024 Cementir Holding NV | 353
TÜRKIYE - hyperinflated economy: impacts of the application of IAS 29
As of April 2022, the Turkish economy is considered hyperinflationary according to the criteria set out in “IAS
29-Financial Reporting in Hyperinflationary Economies”. For the purpose of preparing these Consolidated
Financial Statements and in accordance with IAS 29, certain non-monetary items in the balance sheets of the
investee companies in Türkiye and the income statement items have been remeasured by applying the general
consumer price index to historical data, in order to reflect the changes in the purchasing power of the Turkish
Lira at the balance sheet date of these companies.
Bearing in mind that the Cementir Group acquired control of the Turkish companies in September 2001, and
that they applied hyperinflation until 31 December 2004, the re-measurement of the non-monetary balance
sheet data of these companies' financial statements was carried out by applying inflation indices from that
date.
The cumulative levels of the general consumer price indices are as follows:
➢ From 1 January 2005 to 31 December 2023: 1,533%
➢ From 1 January 2024 to 31 December 2024: 44%
The accounting effects of this adjustment, in addition to already being reflected in the opening balance sheet
as of 1 January 2024, incorporate the changes for the period. In particular, the effect related to the re-
measurement of non-monetary assets and liabilities, equity items, and income statement items recognised in
2024 was recognised in a separate income statement item under financial income and expenses. The related
tax effect of non-monetary assets and liabilities was recognised in income taxes line for the period.
To take into account the impact of hyperinflation also on the local currency exchange rate, profit and loss
account balances expressed in hyperinflationary currencies have been converted into euro, the Cementir
Group's presentation currency, applying the exchange rate at the end of the period instead of the average
exchange rate for the period, in line with IAS 21's requirement to report these amounts at current values.
In 2024, the application of IAS 29 resulted in the recognition of a net financial charge (pre-tax) of EUR 5.9
million.
The impact of hyperinflation in 2024, which includes the valuation of non-industrial real estate in Türkiye in the
amount of approximately EUR 15.5 million (EUR 7.7 million in 2023), is reported below:
Consolidated Financial Statements 2024 Cementir Holding NV | 354
Cumulative Cumulative (EUR'000) Total Effect IAS 29* IAS 21** REVENUE FROM SALES AND SERVICES 48,612 (10,508) 38,104 Change in inventories (4,153) (0,044) (4,197) Increase for internal work and other income 14,294 1,627 15,921 TOTAL OPERATING REVENUE 58,753 (8,925) 49,828 Raw materials costs (36,558) 5,919 (30,639) Personnel costs (4,302) 0,878 (3,424) Other operating costs (9,544) 1,865 (7,679) TOTAL OPERATING COSTS (50,404) 8,662 (41,742) EBITDA 8,349 (0,263) 8,086 Amortisation, depreciation, impairment losses and provisions (13,054) 0,303 (12,751) EBIT (4,705) 0,040 (4,665) Net financial income (expense) (5,606) (0,166) (5,772) NET FINANCIAL INCOME (EXPENSE) (5,606) (0,166) (5,772) PROFIT BEFORE TAXES (10,311) (0,126) (10,437) Income taxes (15,017) 3,384 (11,633) PROFIT (LOSS) FROM CONTINUING OPERATIONS (25,328) 3,258 (22,070) PROFIT (LOSS) FOR THE PERIOD (25,328) 3,258 (22,070) Attributable to: 538 (402)136Non-controlling interests Owners of the Parent (25,866) 3,660 (22,206)
* The data in this column represent the effects of the application of IAS 29 on the 2024 consolidated income statement;
** The data in this column represent the difference between the application of final exchange rates, as required by IAS 21 for the
hyperinflationary economy, and the average exchange rate for the period.
Standards and amendments to standards adopted by the Group
a) The following list illustrates the new accounting standards and interpretations approved by the IASB,
adopted by the European Union and in force starting from 1 January 2024:
• Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback (published 22 September
2022);
• Amendments to IAS 1 Presentation of Financial Statements:
o Classification of Liabilities as Current or Non-current Date (published on 23 January 2020);
o Classification of Liabilities as Current or Non-current - Deferral of Effective Date (published on
15 July 2020); and
o Non-current Liabilities with Covenants (published 31 October 2022)
• Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures:
Supplier Finance Arrangements (published 25 May 2023).
It should be noted that the adoption of these changes did not have significant impacts on the
Consolidated Financial Statements.
b) Accounting standards not yet applicable, as they have not been adopted by the European Union.
At the date of approval of the Consolidated Financial Statements, the following accounting standards and
amendments have not yet been adopted by the European Union:
• IFRS 18 Presentation and Disclosure in Financial Statements
• IFRS 19 Subsidiaries without Public Accountability: Disclosures
Consolidated Financial Statements 2024 Cementir Holding NV | 355
c) Accounting standards adopted by the European Union, but not yet applicable
At the date of approval of the Consolidated Financial Statements, the competent bodies of the European Union
have adopted the following principles and amendments, but they have not yet been adopted by the Group:
• Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS
9 and IFRS 7) (published on May 30, 2024). The amendments are effective for financial years starting
on or after 1 January 2026.
• Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability
(published 15 August 2023). The amendments are effective for financial years starting on or after 1
January 2025.
It should be noted that the Group is evaluating the effects that the application of the aforementioned principles
could have on its Consolidated Financial Statements.
Basis of consolidation
Consolidation scope
A list of the companies included in the scope of consolidation at 31 December 2024 is provided in annex 1.
Business combinations
The Group accounts for business combinations using the acquisition method when control is transferred to the
Group. The consideration transferred in the acquisition is generally measured at fair value, as are the
identifiable net assets acquired. Any goodwill (component of the purchase price in excess of the sum of the
market values of the assets acquired and liabilities assumed in a business combination) that arises is tested
annually for impairment. Any gain on a bargain purchase is recognised in profit or loss immediately.
Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.
The consideration transferred does not include amounts related to the settlement of pre-existing relationship.
Such amounts are generally recognised in profit or loss.
Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay
contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not
remeasured and settlement is accounted for within equity. Otherwise, other contingent consideration is
remeasured at fair value at each reporting date and subsequent changes in the fair value of the contingent
consideration are recognised in profit or loss.
If share-based payment awards (replacement awards) are required to be exchanged for awards held by the
acquiree’s employees (acquiree’s awards), then all or a portion of the amount of the acquirer’s replacement
awards is included in measuring the consideration transferred in business combination. This determination is
based on the market-based measure of the replacement awards compared with the market-based measure of
the acquiree’s awards and the extent to which the replacement awards relate to pre-combination service.
Transactions between companies under common control and with owners
For transactions under common control, the Group applies the book value method of accounting.
Under the book value method of accounting, such transactions are recognised on the basis of the economic
substance of the operation, i.e. a significant influence on the future cash flows of the net assets transferred for
the entities concerned. Where the transaction is with owners, the difference between the transfer value and the
carrying amounts of the transferred business is a transaction to be recognised, depending on the circumstances,
as a contribution or distribution of equity of the entities involved in the transaction.
Consolidated Financial Statements 2024 Cementir Holding NV | 356
Subsidiaries
The scope of consolidation includes the Parent, Cementir Holding NV, and the companies over which it has
direct or indirect control. Subsidiaries subject to direct or indirect control include companies for which the Group
is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect
those returns through its power over the investee. The existence of potential voting rights is considered when
determining whether control exists.
Subsidiaries are consolidated from the date on which control is obtained until when control ceases to exist.
The financial statements used for consolidation purposes have a reporting date of 31 December, i.e., the same
as that of the consolidated financial statements. They are usually prepared specifically for the purpose and
approved by the directors of the individual companies and adjusted, when necessary, to comply with the
Parent’s accounting policies.
Consolidation criteria
Subsidiaries are consolidated line-by-line. The criteria adopted for line-by-line consolidation are as follows:
- assets, liabilities, expense and income are consolidated line-by-line, attributing to non-controlling interests
(when they exist) their share of equity and profit (loss) for the year; which is presented separately under
equity and in the consolidated statement of comprehensive income;
- business combinations where the Parent acquires control of an entity are recognised using the acquisition
method. The consideration transferred is given by the fair value of the transferred assets, the liabilities
assumed and equity instruments issued as at the acquisition date. The acquired assets, liabilities and
contingent liabilities are recognised at fair value as at the date of acquisition. The difference between the
purchase cost and the fair value of the acquired assets and liabilities is recognised as goodwill, if positive, or
directly as income in the income statement, if negative;
- intragroup transactions and balances, including any unrealised profits with third parties arising on
transactions with group companies, are eliminated, net of the related tax effect, if material. Unrealised losses
are not eliminated if the transaction provides evidence of an impairment of the transferred asset;
- gains or losses on the sale of investments in consolidated companies are recognised in equity attributable
to the owners of the Parent as owner transactions for the difference between the sales price and the related
share of equity sold. If the sale leads to the loss of control and, therefore, the exclusion of the investee from
the scope of consolidation, the difference between the sales price and the related share of equity is
recognised as a gain or loss in the income statement.
Interests in joint arrangements
A joint arrangement is an agreement whereby two or more parties contractually have joint control of an
“arrangement”, i.e. when decisions about the relevant activities require the unanimous consent of the parties
sharing control.
As regards the method of measurement and recognition in the financial statements, IFRS 11 sets out different
approaches for:
- Joint Operations (JO): a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets, and obligations for the liabilities, relating to the arrangement.
Consolidated Financial Statements 2024 Cementir Holding NV | 357
- Joint Ventures (JV): a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the net assets of the arrangement.
The formulation of IFRS 11 as regards the distinction between JO and JV therefore depends upon the rights and
obligations of the co-venturer in the joint arrangement, i.e. the substance of the arrangement and not its legal
form.
As regards the presentation in the consolidated financial statements of JVs, IFRS 11 only requires then to be
measured using the equity method, as described below.
As regards JOs, since the parties to the arrangement share the rights to the assets and assume the obligations
for liabilities connected to the agreement, IFRS 11 requires each joint operator to recognise the pro-rata value of
its share of the assets, liabilities, revenues and expense of the JO.
Associates
Associates are entities over which the Group has significant influence, which is assumed to exist when the
investment is between 20% and 50% of the voting rights.
Investments in associates are measured using the equity method and are initially recognised at cost.
The equity method may be described as follows:
- the carrying amount of the investments equals the Group’s share of the investees’ equity and includes the
recognition of any greater value attributable to the assets and liabilities and any goodwill identified at the
acquisition date;
- the Group’s share of profits or losses is recognised from the date that significant influence, or joint control,
commences and until such significant influence or joint control ceases to exist. If an equity-accounted
investee has a deficit due to losses, the carrying amount of the investment is cancelled and any remainder
attributed to the Group, where the Group has a constructive or legal obligation to cover such losses, is
recognised in a specific provision. Changes in the equity of the equity-accounted investee not related to its
profit or loss for the year are offset directly against reserves;
- unrealised significant gains and losses on transactions between the Parent/subsidiaries and equity-
accounted investees are eliminated to the extent of the Group’s investment therein; unrealised losses are
eliminated, unless they represent an impairment loss. Unrealised losses are eliminated, except to the extent
that they represent impairment.
Relevant accounting policies
Intangible assets
Intangible assets are identifiable, non-monetary assets without physical substance. They are a resource,
controlled by an entity, from which future economic benefits are expected to flow. They are recognised at cost,
including any directly related costs necessary for the asset to be available for use.
Upon initial recognition, the Group determines the asset’s useful life. An intangible asset is regarded as having
an indefinite useful life when, based on an analysis of all of the relevant factors, there is no foreseeable limit
to the period over which the asset is expected to generate cash inflows for the Group. Useful life is reviewed
annually and any changes, if necessary, are applied prospectively.
Consolidated Financial Statements 2024 Cementir Holding NV | 358
An intangible asset is derecognised on disposal or when no future economic benefits are expected from its
use and the gain or loss (calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) is recognised in the income statement in the year of its derecognition.
Intangible assets with a finite useful life are recognised net of accumulated amortisation and any impairment losses
determined using the methods set out below. Amortisation begins when the asset is available for use and is
allocated systematically over its residual useful life. Amortisation is determined in the period in which the intangible
asset becomes available for use when it actually becomes available for use.
The estimated useful life of the main items of intangible assets with a finite useful life is reported below:
Useful life intangible assets finite useful life Development expenditure 5 years Concessions, licences and trademarks 4-18-30 yearsOther intangible assets, of which: 5-22 years- Customer list15-20 years- Contracts for the exclusive exploitation of quarries30 years
Intangible assets with an indefinite useful life (goodwill)
In the case of an acquisition of a subsidiary, the acquired identifiable assets, liabilities assumed and contingent
liabilities are recognised at their fair value as at the date of acquisition. Any positive difference between the
consideration transferred and the Group’s share of fair value of these assets and liabilities is recognised as goodwill
under intangible assets; goodwill is allocated to the CGU related to the acquisition. Any negative difference (negative
goodwill) is recognised in the income statement at the acquisition date. Goodwill is not amortised after initial
recognition but is tested for impairment annually or more frequently whenever there is an indication that it may be
impaired. Impairment losses on goodwill are not reversed.
Emission rights
In relation to atmospheric emission rights (or CO
2
), it should be noted that the accounting treatment of
atmospheric emission rights (CO
2
) is not expressly governed by IFRS Accounting Standards. With reference to
emission rights, the initial accounting among intangible assets takes place at the cost incurred (zero for the
assigned free quotas), not amortised as it is believed that the residual value is at least equal to the carrying
amount. At the end of each period if production requires greater availability of CO
2
quotas than those assigned
free of charge, the Group records a liability for an amount equal to the market value (fair value) relating to the
number of shares that must subsequently be acquired on the market. In the event that these quotas have already
been purchased by the company at the balance sheet date, the liability is valued using the weighted average
cost and classified among "Other liabilities". The costs incurred to comply with the regulations on emissions rights
(or CO
2
) into the atmosphere are considered part of the production costs and consequently accounted for as raw
material costs.
Consolidated Financial Statements 2024 Cementir Holding NV | 359
Property, plant and equipment
Property, plant and equipment are recognised at their acquisition or construction cost, including directly
attributable costs required to make the asset ready for the use for which it was purchased, increased by the
present value of the estimated cost of dismantlement or removal of the asset, if the Group has an obligation in
this sense.
Borrowing costs directly attributable to the acquisition, construction or production of an asset are capitalised as
part of the asset’s cost until the asset is ready for its intended use or sale.
Ordinary and/or regular maintenance and repair costs are expensed when incurred. Costs to extend, upgrade
or improve group-owned assets or assets owned by third parties are capitalised only when they meet the
requirements for their separate classification as assets or a part of an asset, using the component approach.
Property, plant and equipment are recognised net of accumulated depreciation and impairment losses. Depreciation
is calculated on a straight-line basis over the asset’s estimated useful life, which is reviewed annually. Any necessary
changes to its useful life are applied prospectively. Quarries are depreciated considering the quantities extracted in the
period compared to the quantity extractable over the quarry’s useful life (extracted/extractable criterion). When the
Group has a specific commitment to do so, it recognises a provision for site restoration costs.
The estimated useful life of the main items of property, plant and equipment is reported below:
Useful life of property, plant and equipment Quarries Extracted/extractable Production plants 10-20 yearsOther plants (not production): - Industrial buildings18-20 years- Light construction10 years - Generic or specific plant8 years - Sundry equipment4 years - Transport vehicles5 years - Office machines and equipment5 years
The above time brackets, which show the minimum and maximum number of years, reflect the existence of
components with different useful lives in the same asset category.
Land, whether free of construction or part of civil or industrial buildings, is not depreciated as it has an indefinite
useful life.
If the asset to be depreciated consists of separate identifiable components with different useful lives, they are
depreciated separately using the component approach. Property, plant and equipment are derecognised at the time
of sale or when no future economic benefits are expected from their use.
At the time of sale or when there are no future economic benefits expected from use, the tangible asset is eliminated
from the balance sheet. Any profit or loss (calculated as the difference between the transfer value and the related
net book value) is recognised in the income statement in the year of the aforementioned elimination.
Consolidated Financial Statements 2024 Cementir Holding NV | 360
Leases
Identifying a lease
The company checks whether a contract contains a lease at the inception date (the earlier of the date of the lease
agreement and the date of commitment by the parties to the terms of the contract) and subsequently each time the
terms and conditions of the contract are changed. A contract is, or represents, a lease if the contract conveys the
right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether
a contract contains or represents a lease, the company:
• assesses whether it has the right to obtain substantially all of the economic benefits from use of the asset
throughout the period of use;
• verifies whether the contract refers to the use of a specified asset, explicitly or implicitly, physically distinct
or representing substantially all the capacity of a physically distinct asset. If the supplier has the substantive
substitution right, the asset is not identified;
• verifies whether it has the right to direct the use of the asset. The company maintains that it has this right
when it has the rights to make the most significant decisions to change the method and purpose of using the asset.
For contracts containing more than one lease and non-lease component and therefore falling under other
accounting standards, the individual components to which the respective accounting standards apply must be
separated out.
The lease term begins when the lessor makes the asset available to the lessee (commencement date) and is
determined by reference to the non-cancellable period of the contract, i.e. the period during which the parties have
legally enforceable rights and obligations, also including rent-free periods. The term can be extended by:
• the periods covered by an option to renew the contract (“renewal option”), when the company is reasonably
certain that it will exercise that option;
• the periods after the date of termination (“termination option”), when the company is reasonably certain that
it will not exercise that option.
Termination options held only by the lessor are not considered.
The reasonable certainty of whether or not to exercise an option to extend or terminate the contract is verified by
the company on the commencement date, considering all the facts and circumstances that give rise to an economic
incentive to exercise or not to exercise the option, and is subsequently reviewed whenever significant events occur
or changes in circumstances that could affect the decision, which are under the control of the company.
Lease accounting
At the effective date of the lease, the company recognises the right of use (RoU) asset and the lease liability.
The right of use asset is initially measured at cost, including the amount of the initial measurement of the lease
liability, adjusted for lease payments made on or before the commencement date, plus any initial direct costs
incurred and an estimate of the costs to be incurred by the lessee for the dismantlement and removal of the
underlying asset or restoring the underlying asset or the site where it is located, net of any lease incentives received.
The lease liability is measured at the present value of the lease payments that are not paid at that date. For
discounting purposes, the company uses the implicit interest rate of the lease when possible – and if it can be
inferred from the contract – or alternatively the incremental borrowing rate (IBR). The lease payments included in
the measurement of the liability include fixed payments, variable payments that depend on an index or rate, amounts
Consolidated Financial Statements 2024 Cementir Holding NV | 361
expected to be paid as a residual value guarantee, the exercise price of a purchase option (which the company has
reasonable certainty that it will exercise), payments due during an optional renewal period (if the company is
reasonably certain that it will exercise the renewal option) and penalties for early termination (unless the company
is reasonably certain that it will not terminate the lease early).
Subsequently, the right of use asset is amortised on a straight-line basis over the entire term of the contract, unless
the contract provides for the transfer of ownership at the end of the lease term or the cost of the lease reflects the
fact that the lessee will exercise the purchase option. In the latter case, the amortisation period must be the shorter
of the useful life of the asset and the term of the contract. The estimated useful lives of right of use assets are
calculated according to the same approach applied to the associated asset. In addition, the value of the right of use
asset is reduced by any impairment losses and adjusted to reflect the re-measurement of the lease liability.
Subsequent to initial measurement at the commencement date, lease liabilities are measured at amortised cost
using the effective interest criterion and is remeasured in the event of a change in future lease payments deriving
from a change in the index or rate, in the event of a change in the amount that the company expects to pay as a
residual value guarantee or when the company changes its measurement as a result of the exercise or non-exercise
of a purchase, extension or termination option. When the lease liability is remeasured, the lessee makes a
corresponding change to the right of use asset. If the carrying amount of the right of use asset is reduced to zero,
the change is recognised in profit/(loss) for the period.
In the statement of financial position, the company recognises right of use assets under assets, within the same line
item as that within which the corresponding assets would be presented if they were owned; and lease liabilities are
recognised under financial liabilities. In the income statement, interest expense on lease liabilities is a component
of financial expenses and shown separately from the amortisation of right of use assets. Depreciation of right-of-
use assets is presented in the depreciation item of the income statement.
Cash outflows relating to leasing payments are presented in the “Cash flow from financing activities” section of the
Consolidated Cash Flow Statement.
Subleases
As regards subleases, the company, as intermediate lessor, classifies its share of the head lease separately from
the sublease. To this end it classifies the sublease by reference to the right of use asset arising from the head lease,
rather than by reference to the underlying asset. If the head lease is a short-term lease that the company has
accounted for applying the exemption allowed for by the standard and discussed below, the sublease is classified
as an operating lease. In the presence of subleases, the head lease is never considered to be of low value.
Investment property
Investment property is initially measured at cost and subsequently at fair value; changes in value are recognised
in the income statement under other income or other operating costs, respectively. The investment property held
to earn rentals or for capital appreciation is not depreciated.
Fair value is calculated on the basis of the following methods, depending on the type of investment:
• market value approach based on an analysis of a sample of recent sales of similar properties located in
the nearby area. The resulting amount is then adjusted to account for the particular features of the
building or land (level 2);
• projection of discounted cash flows based on reliable estimates of future cash flows supported by
payments under lease and/or other existing contracts (level 3).
Consolidated Financial Statements 2024 Cementir Holding NV | 362
Impairment losses
At each reporting date, the Group assesses whether events or changes in circumstances exist suggesting that the
carrying amount of intangible assets or property, plant and equipment may not be recovered. If any such indication
exists, the Group determines the asset’s recoverable amount. If the carrying amount exceeds the recoverable amount,
the asset is impaired and written down to reflect its recoverable amount. The recoverable amount of goodwill and other
intangible assets with an indefinite life is estimated at each reporting date or whenever changes in circumstances or
specific events make it necessary.
The recoverable amount of property, plant and equipment and intangible assets is the higher of their fair value less
costs to sell and their value in use, which is the present value of the future cash flows expected to be derived from an
asset or a cash-generating unit to which the asset belongs, in the case of assets that do not independently generate
largely separate cash flows.
When defining value in use, the future cash flows are discounted using a pre-tax rate that reflects the current market
estimate of the time value of money and specific risks of the asset.
Impairment losses are recognised in the income statement when the carrying amount of the asset or related cash-
generating unit (CGU) to which it is allocated is higher than its recoverable amount. Impairment losses on CGUs
are firstly used to decrease the carrying amount of any goodwill allocated thereto and subsequently the other assets,
in proportion to their carrying amounts. When the reason for an impairment loss on property, plant and equipment
and intangible assets other than goodwill no longer exists, the carrying amount of the asset is increased through
profit or loss to the carrying amount the asset would have had, had the impairment loss not been recognised and
depreciation/amortisation charged.
If the impairment loss is higher than the carrying amount of the tested asset allocated to the CGU to which it belongs,
the remaining amount is allocated to the assets included in the CGU in proportion to their carrying amounts. This
allocation has as a minimum limit the higher amount of:
- the fair value of the asset, net of costs to sell;
- the value in use, as defined above;
- zero.
Impairment losses are recognised in the income statement under amortisation, depreciation and impairment losses.
Inventories
Raw materials, semi-finished products and finished goods are recognised at cost and measured at the lower of cost
and net realisable value. Cost is determined using the weighted average cost method and includes any ancillary
costs. In order to determine net realisable value, the carrying amount of any obsolete or slow-moving inventories is
written down to reflect their future utilisation/net realisation by recognising an allowance for inventory write-down.
Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.
Consolidated Financial Statements 2024 Cementir Holding NV | 363
Classification and measurement
The classification provided for by IFRS 9 is based on the business model for the management of financial assets and
on the contractual conditions of cash flows. Financial assets are classified into three main categories: at amortised
cost, at the fair value recognised in the other components of the comprehensive income statement (FVOCI) and at the
fair value recognised in the profit/(loss) for the year (FVTPL).
Financial assets relating to commodity swaps are always recognised at fair value.
If the instrument is held for trading purposes, the changes in fair value must be recognised in the income statement.
Whereas, for all the other investments, the company can decide, at the initial recognition date, to subsequently
recognise all changes to fair value in the other components of the comprehensive income statement (OCI), exercising
the FVTOCI option. In that case, amounts accumulated in the OCI will never be attributed to profit/(loss) for the year
even if the investment is removed from accounts. Application of the “FVTOCI” option is irrevocable and reclassifications
between the three categories are not permitted.
However, as regards the classification of financial assets, it is necessary to consider two elements:
1. the business model adopted by the company. Specifically, it:
- Held to Collect (HTC), model aimed at owning the financial assets to collect contractual flows;
- Held To Collect and Sale (HTC&S), model aimed at both collecting contractual flows resulting from the financial
assets and to sell the financial asset itself;
- other different business models to the two previous ones.
2. the characteristics of the contractual cash flow coming from the financial instrument. More specifically, checking
whether those contractual cash flows are solely represented by payment of capital and interest or include other
components. This control is called SPPI Test (Solely Payment of Principal and Interest Test).
A financial asset represented by a certificate of indebtedness can be classified in the following categories:
1) Amortised cost when:
a. the instruments’ contractual cash flows are solely represented by payment of capital and interest (SPPI Test
passed); and
b. the business model adopted by the company foresees that the latter only holds the financial asset to collect the
contractual cash flows (HTC business model).
In this category, financial instruments are initially recognised at fair value, including operating costs, and are then
valued at amortised cost. Interest (calculated using the effective interest criterion as in the previously in force IAS 39),
losses (and recovery of losses) for reduced value, profits/(losses) on exchange and profits/(losses) resulting from
elimination from accounts are recognised in profit/(loss) of the year.
2) Fair Value Through Other Comprehensive Income (FVTOCI) when:
a. the instruments’ contractual cash flows are solely represented by payment of capital and interest (SPPI Test
passed); and
b. the business model adopted by the company foresees that the latter holds the financial asset to collect the
contractual cash flows and the cash flows generated by sales (HTC&S business model).
In that category the financial instruments classified are initially recognised at fair value, including operating costs.
Interest (calculated using the effective interest criterion as in the previously in force IAS 39), losses/(profits) for reduced
value, profits/(losses) on exchange are recognised in profits/(losses) for the year. Other changes to the fair value of
the instrument are recognised among the other comprehensive income statement components (OCI). When the
Consolidated Financial Statements 2024 Cementir Holding NV | 364
instrument is deleted from accounts, all profits/(losses) accumulated to OCI will be reclassified in the profit/(loss) for
the year.
3) Fair Value Through Profit Or Loss secondarily, that is when:
a. the criteria described above are not complied with or;
b. when the fair value option is exercised.
Financial instruments classified in that category are initially and subsequently recognised at fair value. Operation costs
and the changes in fair value are recognised in the profit/(loss) for the year.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognised (i.e., removed from the Group’s consolidated statement of financial position) when:
The rights to receive cash flows from the asset have expired
or
• The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the
Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Losses for reduction in value
The ‘expected credit loss’ model (or ‘ECL’ model) assumes a significant valuation level due to the impact of economic
factor changes on the ECL which are weighted based on probability.
The loss for reduction in value model applies to financial assets valued at amortised cost or at FVOCI.
Provisions for credit risks are determined using the following methodological approaches: the “General deterioration
method” and the ”Simplified approach”; specifically:
• The “General deterioration method” requires classification of the financial instruments included in the scope of
IFRS 9 application in three stages. The three stages reflect the credit’s quality deterioration level, from when the
financial instrument is acquired, and imply a different ECL calculation method;
• The “Simplified approach” foresees adoption of some simplifications for trade credits, contract assets and credits
resulting from leasing contracts, in order to avoid that companies be obliged to monitor changes to the credit risk,
as foreseen by the general model. Recognition of the loss applying the simplified approach must be lifetime,
therefore the allocation stage is not required. Therefore, for that type receivables are divided into uniform clusters;
the reference parameters (PD, LGD, and EAD) used to calculate the lifetime expected credit losses are then
calculated for each cluster using the information available.
In cases where the General Deterioration Method is applied, as was said, financial instruments are classified in three
stages based on deterioration of the credit quality between the date of initial recognition and that of valuation:
• Stage 1: includes all financial assets being considered when they are first recognised (Initial recognition date)
regardless of the qualitative parameters (e.g.: rating) and except for situations with objective evidence of
impairment. In the subsequent staging allocation, all financial instruments that have had a significant increase in
credit risk compared to initial recognition or that have a low credit risk at the reference date remain in stage 1. For
those assets, credit losses for the next 12 months (12-month ECL) are recognised, considering the possibility that
default could occur in the next 12 months. The interest on financial instruments included in stage 1 is calculated
on the book value gross of any asset impairment losses;
• Stage 2: includes financial instruments that have had a significant increase in credit risk compared to the initial
recognition Date, but no objective evidence of impairment. Solely expected credit losses resulting from all possible
default events are recognised for those assets; for the entire expected lifetime of the financial instrument (Lifetime
Consolidated Financial Statements 2024 Cementir Holding NV | 365
ECL). The interest on financial instruments included in stage 2 is calculated on the book value gross of
any asset impairment losses;
• Stage 3: includes financial assets with objective evidence of default at the Date of valuation. Solely
expected credit losses resulting from all possible default events are recognised for those assets; for the
entire expected lifetime of the instrument.
For trade receivables and contract assets that do not include a significant financial component, the Group
applies a simplified approach to calculating expected losses, as required by paragraph 5.5.15 of IFRS 9.
Therefore, the Group does not monitor changes in credit risk, but fully recognises the expected loss at each
reporting date. The Group has established a matrix system based on historical information, revised to take into
account forward-looking factors with reference to specific types of debtors and their economic environment,
as a tool for determining expected losses.
The Group considers a financial asset to be in default when contractual payments have been due for a period
of time that is deemed to be consistent on the basis of the practices applicable in the various countries in which
the Group operates. In some cases, the Group may also consider a financial asset to be in default when
internal or external information indicates that the Group is unlikely to recover the contractual amounts in full
before considering the credit guarantees held by the Group, in which case the loan is considered non-
performing, and stage 3 of the general model is applied. A financial asset is derecognised when there is no
reasonable expectation of recovering the contractual cash flows.
The Group also takes available macroeconomic information (e.g. expected GDP) into account when assessing
the recoverable amount of trade receivables.
Financial liabilities
Classification and measurement
Financial liabilities, related to loans and borrowings, trade payables and other obligations to pay, are initially
recognised at fair value, net of directly related costs. They are subsequently measured at amortised cost, using
the effective interest method. If there is a change in the estimated future cash flows and they can be determined
reliably, the carrying amount of the liability is recalculated to reflect this change based on the present value of
the new estimated future cash flows and the initially determined internal rate of return.
Financial liabilities are classified as current liabilities, unless the Group has the unconditional right to defer
their payment for at least 12 months after the reporting date.
Derecognition
Financial liabilities are derecognised when they are extinguished, and the Group has transferred all the risks
and obligations related to them.
Derivatives
The Group uses derivatives to hedge the risk of fluctuations in exchange rates, interest rates and market
prices.
All derivatives are measured and recognised at fair value.
Transactions that meet requirements for the application of hedge accounting are classified as hedging
transactions. Other transactions are designated as trading transactions, even when their purpose is to manage
risk. Therefore, as some of the formal requirements of IFRS were not met at the derivative agreement date,
changes in their fair value are recognised in the income statement.
Subsequent fair value gains or losses on derivatives that meet the requirements for classification as hedging
instruments are recognised using the criteria set out below.
Consolidated Financial Statements 2024 Cementir Holding NV | 366
A derivative qualifies for hedge accounting if, at the inception of the hedge, there is formal designation and
documentation of the hedging relationship, including the entity’s risk management objective and strategy for
undertaking the hedge as well as methods to test effectiveness. The hedge’s effectiveness is assessed at
inception and over the life of the hedge. Generally, a hedge is considered to be highly effective if, both upon
inception and over its life, changes in the fair value (fair value hedges) or estimated cash flows (cash flow
hedges) of the hedged item are substantially covered by changes in the fair value of the hedging instrument.
When the hedge relates to changes in the fair value of a recognised asset or liability (fair value hedge), changes
in the fair value of both the hedging instrument and the hedged item are recognised in the income statement.
In the case of cash flow hedges (hedging designated to offset the risk of changes in cash flows generated by
the future performance of contractually defined obligations at the reporting date), changes in fair value of the
derivative recognised after its initial recognition are recognised under reserves (in equity) for the effective part
only. When the economic effects of the hedged item arise, the reserve is reversed to the income statement
under operating income (expense). If the hedge is not perfectly effective, changes in the fair value of the
hedging instrument, related to the ineffective portion, are immediately recognised in the income statement. If,
during the life of a derivative, the estimated cash flows hedged are no longer highly probable, the portion of
the reserves related to that instrument is immediately reversed to the income statement. Conversely, if the
derivative is sold or no longer qualifies as an effective hedging instrument, the part of the reserves representing
the fair value changes in the instrument, accumulated to date, is maintained in equity and reversed to the
income statement using the above classification method when the originally hedged transaction takes place.
The fair value of financial instruments was calculated used pricing techniques in order to define the present
value of future cash flows attributable to such instruments, using market curves in place at the measurement
date. Furthermore, the component related to the risk of non-compliance (by the Group and the counterparty)
was measured using yield-curve spreads.
Treasury shares
The cost of acquiring its own equity instruments ('treasury shares') is deducted from capital. No gain or loss is
recognised in profit or loss on the purchase, sale, issue or cancellation of equity instruments. Such treasury
shares may be acquired and held by the entity or by other members of the consolidated group. Consideration
paid or received is recognised directly in equity.
Cash and cash equivalents
Cash and cash equivalents are recognised at fair value and include bank deposits and cash-on-hand, i.e.,
short-term, highly liquid assets that are readily convertible to a known amount of cash and are subject to an
insignificant risk of changes in value.
In the event that bank deposits do not fall under the definition of Cash and Cash Equivalents above, they are
classified as financial assets, current or non-current, depending on the specific conditions attached to them.
Employee benefits
Liabilities for employee benefits paid at or after termination of employment related to defined-benefit plans, net
of any plan assets, are determined using actuarial assumptions, estimating the amount of future benefits
accrued by employees at the reporting date. They are recognised on an accruals basis over the period in which
the employees’ rights accrue. Defined benefit plans also include the post-employment benefits (TFR) due to
employees
1
pursuant to Art. 2120 of the Italian Civil Code for benefits vested up to 31 December 2006.
Following pension law reform, postemployment benefits accruing since 1 January 2007 are compulsorily
transferred to a supplementary pension fund or the special treasury fund set up by INPS (the Italian social
1
Relating to Italian companies.
Consolidated Financial Statements 2024 Cementir Holding NV | 367
security institution) depending on which option the employee has chosen. Therefore, the Group’s liability for
defined benefits owing to employees solely relates to those vested up to 31 December 2006.
Accounting policies adopted by the Group
1
since 1 January 2007 (described below) comply with the prevailing
interpretation of the new legislation and follow the accounting guidance provided by relevant professional
bodies. Specifically, it:
- post-employment benefits accruing since 1 January 2007 are considered to be defined contribution plans,
including when the employee has opted to transfer the benefits to the INPS treasury fund. These benefits,
determined in accordance with Italian Civil Code requirements, are not subjected to actuarial evaluation
and are recognised as personnel expense.
- post-employment benefits vested up to 31 December 2006 continue to be recognised as a company
liability for defined benefit plans. This liability will not increase in the future through additional accruals.
Therefore, the actuarial calculation used to determine the 31 December 2016 balance did not include
future salary increases.
Independent actuaries calculate the present value of the Group’s obligations using the projected unit credit
method. They project the liability into the future to determine the probable amount to be paid when the
employment relationship terminates and then discount it to consider the time period before the first effective
payment. This calculation includes post-employment benefits accrued for past service and uses actuarial
assumptions, mainly based on interest rates, which reflect the market yield on high quality corporate bonds
with a term consistent with that of the Group’s obligation and employee turnover rate.
Actuarial gains and losses, defined as the difference between the carrying amount of the liability and the
present value of the Group’s obligations at the reporting date, due to changes in the actuarial assumptions
previously used (see above), are recognised directly in other comprehensive income.
Provisions for risks and charges
These provisions cover certain or probable risks and charges identified, whose due date or amount is unknown
at the reporting date.
Accruals to provisions for risks and charges are recognised when the company has a constructive or legal
obligation at the reporting date as a result of a past event and it is likely that an outflow of resources will be
necessary to settle the obligation and the amount of this outflow can be estimated reliably. When the time
value of money is material and the payment dates can be estimated reliably, the provision is discounted.
Increases in the provision due to the passage of time are recognised as a financial expense. The Group sets
up a specific provision when it has an obligation to dismantle and restore sites (e.g., quarries), thus increasing
the carrying amount of the related asset pursuant to IAS 16 and IFRIC 1.
The provision for dismantling and removing, recorded in the financial statements, essentially includes the
estimated costs that will be incurred, upon completion of the extraction of materials used for production, for
the mining closure of quarries, removal of structures and restoration of sites. The Group periodically assesses
changes, circumstances or events that may require it to recognise such liabilities.
Liabilities related to the dismantling of tangible assets and the restoration of sites at the end of production
activities are recognised, in the presence of a legal or constructive obligation and of the possibility of making
a reliable estimate of the charge, as an offsetting entry to the assets to which they refer. In view of the long
period of time between when the obligation arises and when it is settled, estimates of charges to be incurred
are recognised on the basis of their present value. The adjustment of the provision related to the passage of
time is recognised in the income statement under financial income and expenses. Provisions are periodically
assessed to take into account updated costs to be incurred, contractual constraints, legislation and practices
in the country where the tangible assets are located. Changes in estimates of these provisions are generally
recognised as a balancing entry to the assets to which they relate; in this regard, if the change in estimate
Consolidated Financial Statements 2024 Cementir Holding NV | 368
results in a reduction in an amount greater than the carrying amount of the asset to which it relates, the excess
is recognised in the income statement.
Revenue from contracts with customers
The Group is in the business mainly of producing and distributing cement, ready-mixed concrete, aggregates
and related services. Revenue from contracts with customers is recognised at the point in time when control
of the goods or services are transferred to the customer at an amount that reflects the consideration to which
the Group expects to be entitled in exchange for those goods or services. For standard sale of products, control
generally passes to the customer at the time the product is delivered and accepted, depending on the delivery
conditions and incoterms. The Group has generally concluded that it is the principal in its transactions with
clients.
The transaction price may be variable due to discounts, rebates or similar arrangements. Revenue is only
recognised for the part of the consideration for which it is highly probable that a significant reversal in the
amount of cumulative revenue recognised will not occur.
Sale of services
The Group is providing mainly transport services which are recognised at the time the service is provided.
Financial income and expense
Financial income and expense are recognised on an accruals basis considering the interest accrued on the
carrying amount of the related financial assets and liabilities using the effective interest rate, i.e., the interest
rate that matches the cash inflows and outflows of a specific transaction. Reference should be made to the
section on property, plant and equipment for the treatment of capitalised borrowing costs.
Dividends
Dividends are recognised when the shareholders’ right to receive them is established. This usually takes place
at the date of the shareholders’ resolution to distribute the dividends. Therefore, distribution is recognised as
a liability in the period in which the shareholders approve it.
Income taxes
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and
any adjustment to tax payable or receivable in respect of previous years. The amount of current tax payable
or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty
related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting
date. Current tax also includes any tax arising from dividends.
Current tax assets and liabilities are offset only if certain criteria are met.
Deferred tax assets and liabilities are calculated on temporary differences between the carrying amounts of
assets and liabilities and their tax base, except for goodwill, applying the tax rates expected to be enacted in
the years in which the temporary differences will be recovered or settled. Deferred tax assets are recognised
Consolidated Financial Statements 2024 Cementir Holding NV | 369
when their recovery is probable, i.e., when taxable profits sufficient to allow recovery are foreseen for the
future. Recoverability is reviewed at the end of each reporting period.
Current and deferred income taxes are recognised in the income statement except for those related to items directly
recognised in other comprehensive income. Other current and deferred income taxes are offset when the income
taxes are applied by the same tax authority, there is a legal right to offset and payment of the net balance is expected.
Other non-income taxes, such as property taxes, are recognised under other operating costs.
Earnings per share
(i) Basic: basic earnings per share are calculated by dividing the Group’s profit by the weighted average number of
shares outstanding during the year, excluding treasury shares.
(ii) Diluted: diluted earnings per share are calculated by dividing the Group’s profit by the weighted average number of
shares outstanding during the year, excluding treasury shares. The weighted average is adjusted assuming that all
potential shares with diluting effects have been converted. Diluted earnings per share are not calculated if the Group
makes a loss, as any dilutive effect would lead to an improvement in the earnings per share.
Transactions in currencies other than the functional currency
All transactions in currencies other than the functional currency of individual group companies are recognised at the
exchange rate applicable at the transaction date.
Monetary assets and liabilities in currencies other than the functional currency are subsequently retranslated using the
closing rate. Any resulting exchange rate gains or losses are recognised in the income statement.
Non-monetary assets and liabilities denominated in a currency other than the functional currency are recognised at
historical cost and converted using the exchange rate in force at the date the transaction was first recognised.
Non-monetary assets and liabilities recognised at fair value are translated using the exchange rate in force at the date
fair value was determined.
Translation of financial statements of foreign operations
The financial statements of subsidiaries, associates and joint ventures are prepared using the currency of the primary
economic environment in which they operate (the functional currency).
The financial statements of group companies operating outside the eurozone are translated into euros using the
closing rate for the statement of financial position items and the average annual rate for the income statement items if
no major fluctuations are detected in the reference period, in which case the exchange rate on the date of the
transaction applies. For Turkish subsidiaries, please refer to that explained in the paragraph “Türkiye — Hyperinflated
Economy: impacts of the application of IAS 29”. Translation differences arising on the adjustment of opening equity at
the closing spot rates and the differences arising from the different methods used to translate profit for the year are
recognised in equity through the statement of comprehensive income and shown separately in a special reserve.
When a foreign operation is sold, the translation differences accumulated in the specific equity reserve are reclassified
to profit or loss.
Consolidated Financial Statements 2024 Cementir Holding NV | 370
The main exchange rates used in translating the financial statements of companies with functional currencies other
than the euro are as follows:
31 December Average 31 December Average 2024 2024 2023 2023 Turkish lira – TRY * 36.74 35.57 32.65 25.76 US dollar – USD 1.04 1.08 1.11 1.08 British pound – GBP 0.83 0.85 0.87 0.87 Egyptian pound – EGP 52.81 48.68 34.24 33.01 Danish krone – DKK 7.46 7.46 7.45 7.45 Icelandic krona – ISK 143.90 149.31 150.50 149.13 Norwegian krone – NOK 11.80 11.63 11.24 11.42 Swedish krona – SEK 11.46 11.43 11.10 11.48 Malaysian ringgit – MYR 4.65 4.95 5.08 4.93 Chinese renminbi yuan – CNY 7.58 7.79 7.85 7.66 (*) For Turkish subsidiaries, please see the section “Türkiye - hyperinflated economy: impacts of the application of IAS 29”.
Use of estimates
The preparation of consolidated financial statements requires management to use accounting policies and methods
that are sometimes based on difficult and subjective judgements, estimates based on past experience and
assumptions that are considered reasonable and realistic in the circumstances. The application of these estimates
and assumptions affects the amounts presented in the financial statements and disclosures. The actual results for
which these estimates and assumptions were used may differ due to the uncertainties that characterise the
assumptions and the conditions on which the estimates were based.
The accounting policies and financial statements items that require greater subjective judgement by management
when making estimates and for which a change in the conditions underlying the assumptions could have a significant
impact on the Group’s consolidated financial statements are the following:
- Intangible assets with indefinite life: goodwill is tested for impairment annually to identify any impairment losses to
be recognised in the income statement. Specifically, this test involves determining the recoverable amount of the
CGUs to which goodwill is allocated by estimating their value in use or fair value less costs of disposal; If this
recoverable amount is lower than the carrying amount of the CGUs, the goodwill allocated to them must be written
down. Allocation of goodwill to the CGUs and determination of their fair value involves the use of estimates that
rely on factors that may change over time, including the technological, economic and regulatory ones deriving
from climate change, with potentially significant effects compared to the valuations made by management.
- Amortisation and depreciation of non-current assets: amortisation and depreciation are significant costs for the
Group. The cost of property, plant and equipment is depreciated systematically over the assets’ estimated useful
life. The economic useful life of the Group's fixed assets is determined by the directors at the time the fixed asset
was acquired; it is based on historical experience for similar fixed assets, market conditions and anticipations
regarding future events that may impact useful life, including changes in technology. As such, effective useful life
may differ from estimated useful life. The Group regularly assesses technological and sector changes, as well as
those related to the effects deriving from climate change, dismantlement costs and the recoverable amount to
update useful life. This regular update could lead to a change in the depreciation period and, therefore, the amount
of depreciation in future years. Management regularly reviews the estimates and assumptions and the effects of
each change are recognised in the income statement. When the review affects current and future years, the
change is recognised in the year in which it is made and in the related future years, as explained in more detail in
the next section.
- Dismantling and removing provisions: the Group incurs significant liabilities related to the obligations to
decommission tangible assets and restore the land environment at the end of production activity. Estimating future
Consolidated Financial Statements 2024 Cementir Holding NV | 371
decommissioning and restoration costs is a complex process and requires the management's judgement in
assessing the liabilities that will be incurred many years from now to meet decommissioning and restoration
obligations, which are often not fully defined by laws, administrative regulations or contractual clauses. Moreover,
these obligations are affected by the constant updating of decommissioning and restoration techniques and costs,
as well as by the continuous evolution of political and public awareness of health and environmental protection.
The determination of the discount rate to be used both in the initial measurement of the charge and in subsequent
measurements, as well as the forecast of the timing of the disbursements and their possible updating, are the
result of a complex process that involves the exercise of professional judgement by management.
- Purchase Price Allocation: as part of business combinations, the identifiable assets purchased and the liabilities
assumed are recognised in the consolidated financial statements at fair value on the acquisition date, through a
Purchase price allocation process, against the consideration transferred to acquire the control of a company, which
corresponds to the fair value of the assets acquired and the liabilities assumed, as well as of capital instruments
issued. During the measurement period, the calculation of the aforementioned their values requires Directors to
make estimates on the information available on all facts and circumstances that exist on the acquisition date and
may affect the value of the acquired assets and assumed liabilities.
- Estimate of the fair value of investment property: at each reporting data investment property is measured at fair
value and is not subject to depreciation. When determining their fair value, the Directors based their valuation on
assumptions about the trend of the reference real estate market in particular. Such assumptions may vary over
time, influencing evaluations and forecasts to be performed by the Directors.
- Estimation of recoverability of deferred tax assets: deferred tax assets are recognised on temporary
deductible differences between the carrying amount of an asset or liability on the balance sheet and its
value for tax purposes and on unused and carried forward tax losses, to the extent that future taxable
income available is likely to be such that deferred tax assets can be used. Determining the level of deferred
tax assets to be recorded requires a judgment from the Management that requires estimates of the timing
and level of future taxable profits.
Changes in accounting policies, errors and changes in estimates
The Company modifies the accounting policies adopted from one reporting period to another only if the change is
required by a standard or contributes to providing more reliable and relevant information about the effects of
transactions on the company’s financial position, performance and cash flows.
Changes in accounting policies are recognised retrospectively in the opening balance of each affected component of
equity for the earliest prior period presented. Other comparative amounts shown for each previous period presented
are adjusted as if the new accounting policy had always been applied. The prospective approach is only applied when
it is impracticable to reconstruct the comparative amounts.
The application of a new or amended accounting standard is accounted for as required by the standard. If the standard
does not govern the transition method, the change is accounted for retrospectively or, if impracticable, on a prospective
basis.
This same approach is applied to material errors. Non-material errors are recognised in the income statement in the
period in which the error is identified.
Consolidated Financial Statements 2024 Cementir Holding NV | 372
Changes in estimates are recognised prospectively in the income statement in the period in which the change takes
place, if it only affects that period, or in the period in which the change takes place and subsequent periods, if the
change also affects these periods.
Financial risk management
The Group is exposed to financial risks related to its operations, namely:
Credit risk
The Group is not particularly exposed to credit risk, despite operating in different geographical markets, as it is not
overly exposed to a limited number of positions. Moreover, its operating procedures require checks on credit risk, with
the sale of products and/or services limited to customers with suitable credit ratings and guarantees.
Receivables are recognised net of the loss allowance, calculated considering the rules set out by IFRS 9, as mentioned
above. Therefore, the maximum exposure to credit risk is equivalent to the carrying amount.
With respect to bank deposits and derivatives, the Group has always worked with leading counterparties, thus limiting its
credit risk in this sense.
Liquidity risk
Liquidity risk concerns the availability of financial resources and access to credit market and financial
instruments.
Specifically, the Group monitors and manages its cash flows, funding requirements and liquidity levels in order
to ensure the effective and efficient use of its financial resources.
It meets its liquidity requirements for investing activities, working capital and the payment of amounts payable
drawing on cash flows generated constantly by its operating activities and on credit facilities.
The Group aims to maintain its ability to generate cash flows through operating activities, given the current market
conditions. In fact, thanks to its strong financial position, any unplanned financial requirements can be funded
through its access to credit facilities.
Market risk
Market risk mainly concerns exchange rates, interest rates and raw materials costs, as the Group operates
internationally in areas with different currencies.
The Group monitors the financial risks to which it is exposed regularly so as to assess in advance any potential impacts
and take the most suitable action to mitigate them; derivative financial instruments are also used for this purpose.
Currency risk
Group companies operate internationally; as such they are structurally exposed to currency risk for cash flows from
operating activities and financing operations in currencies other than the functional currency.
The Group’s operating activities are exposed differently to changes in exchange rates: in particular the cement sector
is exposed to currency risk on both revenues, for exports, and costs to purchase solid fuels in USD; whereas the
ready-mixed concrete sector is less exposed as both revenue and costs are in local currency. The Group assesses
the natural hedging of cash flows and financing for these risks and purchases currency forwards and currency put
and call options for hedging purposes. Transactions involving derivatives are performed for hedging purposes.
The Group’s presentation currency is the euro. As a result, it is exposed to currency risk in relation to the translation
of the financial statements of consolidated companies based in countries outside the Economic Monetary Area (except
for Denmark whose currency is historically tied to the euro). The income statements of these companies are translated
into euros using the average annual rate in the event that changes in value are not significant, and changes in
Consolidated Financial Statements 2024 Cementir Holding NV | 373
exchange rates may affect the value in euros, even when the revenue and profits in local currency remain unchanged.
Translation differences on assets and liabilities are recognised directly in equity in the translation reserve (note 13).
For information on the accounting effects of hyperinflation applied to investee companies in Türkiye, please see the
section “Türkiye — hyperinflated economy: impacts of the application of IAS 29”.
Interest rate risk
As the Group has net financial debt, it is exposed to the risk of fluctuations in interest rates. The Group purchases
interest rate swaps to partly hedge the risk after assessing forecast interest rates and timeframes for the repayment
of debt by using estimated cash flows.
The Group’s operating and financial policies aim to minimise the impact of these risks on its performance.
Raw materials price risk
The Group is exposed to the risk of fluctuations in raw materials prices. It manages this risk through supply
agreements with suppliers which set prices and quantities for roughly 12 months. It also uses suppliers in different
geographical areas to avoid the risk of supply chain concentration and to obtain the most competitive prices.
Furthermore, the Group uses derivative instruments to hedge the risk of market price fluctuations.
Also refer to note 32 for quantitative information on risks.
Group's value
The Stock Exchange capitalisation of the Cementir shares as of 31 December 2024 is equal to EUR 1,677.1
million (EUR 1,518.0 million as of 31 December 2023) against a net equity pertaining to the Group of EUR
1,717.0 million (EUR 1,503.1 million as of 31 December 2023); this capitalisation value is therefore lower than the
measurement based on the Group's fundamentals expressed by the economic value, calculated on the basis of the
forecasted future results.
It is believed that the value of the Group should be determined with regard to its ability to generate cash flows rather
than on stock market values that also reflect situations not strictly related to the Group, with expectations focused on
the short term.
Consolidated Financial Statements 2024 Cementir Holding NV | 374
Segment reporting
In accordance with IFRS 8, the Group has identified its operating segments on the basis of the Parent’s internal
reporting system for management purposes.
The Group’s operations are organised on a regional basis, divided into Regions that represent the following
geographical areas: Nordic & Baltic, Belgium, North America, Türkiye, Egypt, Asia Pacific and Italy (hereinafter
also “Holding and Services”).
The Nordic & Baltic region includes Denmark, Norway, Sweden, Iceland, Poland and the white cement
operations in Belgium and France. The Belgium region includes the activities of the Compagnie des Ciments
Belges S.A. group in Belgium and France. The North America region includes the United States. The Asia
Pacific region includes China, Malaysia and Australia. “Holding and Services” includes the Parent Company,
Spartan Hive, Aalborg Portland Digital and other smaller companies.
The Group’s geographical segments consist of the non-current assets of each company based and operating
in the above areas. Transfer prices applied to transactions between segments for the exchange of goods and
services comply with normal market conditions.
The following table shows the performance of each operating segment at 31 December 2024:
Holding Unallocated CEMENTIR Nordic & North Asia Belgium Türkiye Egypt and items and HOLDING Baltic America Pacific Services adjustments GROUP (EUR'000) Operating revenue 704,230 337,855 179,398 413,670 45,300 109,147 160,714 (236,419) 1,713,895 Intra-segment operating (78,144) (1)(1,253)(21,217) (12,578) -(123,226)236,419 - revenue Contributed operating 626,086 337,854 178,145 392,453 32,722 109,147 37,488 -1,713,895 revenue Segment result 173,716 93,942 24,774 86,770 16,874 21,240 (9,974) -407,342 (EBITDA) Amortisation, depreciation, (53,514) (38,041) (16,346) (22,322) (2,204) (8,909) (3,984) -(145,320)impairment losses and provisions EBIT 120,202 55,901 8,428 64,448 14,670 12,331 (13,958) -262,022 Net profit (loss) of equity-accounted 1,154 - - - - - - - 1,154 investees Net financial income - - - - - - - 21,716 21,716 (expense) Profit (loss) before - - - - - - - - 284,892 taxes Income taxes - - - - - - - (70,437) (70,437) Profit (loss) for the - - - - - - - - 214,455 year
Consolidated Financial Statements 2024 Cementir Holding NV | 375
The following table shows the performance of each operating segment at 31 December 2023:
Holding Unallocated CEMENTIR Nordic & North Asia Belgium Türkiye Egypt and items and HOLDING Baltic America Pacific Services adjustments GROUP (EUR'000) Operating revenue 754,526 362,049 183,690 333,866 50,345 124,981 214,478 (286,388) 1,737,547 Intra-segment operating (86,860) (3)(1,116)(16,146) (8,933) -(173,330)286,388 - revenue Contributed operating 667,666 362,046 182,574 317,720 41,412 124,981 41,148 -1,737,547 revenue Segment result 181,250 97,559 26,282 63,321 12,540 26,879 3,291 -411,122 (EBITDA) Amortisation, depreciation, (49,150) (33,601) (16,463) (19,622) (2,005) (8,615) (3,337) -(132,793)impairment losses and provisions EBIT 132,100 63,958 9,819 43,699 10,535 18,264 (46)-278,329 Net profit (loss) of equity-accounted 772 - - - - - - - 772 investees Net financial income - - - - - - - 11,609 11,609 (expense) Profit (loss) before - - - - - - - - 290,710 taxes Income taxes - - - - - - - (75,218) (75,218) Profit (loss) for the - - - - - - - - 215,492 year
The following table shows the other financial data of the geographical sector as of 31 December 2024:
Segment Investments Segment Equity-Segment total Segment non Segment total property, plant (EUR'000) accounted assets current assets liabilities and equipment investments and intangible asset Nordic & Baltic 791,227 579,500 391,955 9,993 58,985 Belgium 510,024 421,022 176,618 143 65,025 North America 369,274 214,498 72,093 - 7,672 Türkiye 610,358 418,769 157,017 - 20,990 Egypt 95,632 17,003 23,823 - 7,650 Asia Pacific 168,800 73,918 36,659 - 4,249 Holding and Services 210,409 78,190 41,175 - 15,501 Total 2,755,724 1,802,900 899,340 10,136 180,072
Consolidated Financial Statements 2024 Cementir Holding NV | 376
The following table shows the other financial data by sector as of 31 December 2023:
Segment Investments Segment Equity-Segment total Segment non Segment total property, plant (EUR'000) accounted assets current assets liabilities and equipment investments and intangible asset Nordic & Baltic 818,251 559,697 395,152 6,386 61,291 Belgium 492,611 393,898 172,898 143 37,262 North America 359,153 209,935 68,181 - 12,849 Türkiye 453,614 317,881 109,397 - 17,704 Egypt 117,255 18,440 29,665 - 2,878 Asia Pacific 145,810 72,538 28,591 - 7,209 Holding and Services 135,500 70,762 67,477 - 10,750 Total 2,522,194 1,643,151 871,361 6,529 149,943
The following table shows revenue from third-party customers by geographical segment in 2024:
CEMENTIR Nordic & North Asia Rest of Belgium Türkiye Egypt Italy HOLDING Baltic America Pacific the world (EUR'000) GROUP Revenue by customer 718,768 239,588 191,491 367,699 13,391 105,738 4,379 45,889 1,686,943 geographical location
The following table shows revenue from third-party customers by geographical segment in 2023:
CEMENTIR Nordic & North Asia Rest of (EUR'000) Belgium Türkiye Egypt Italy HOLDING Baltic America Pacific the world GROUP Revenue by customer 727,832 255,945 191,817 282,554 18,766 138,403 6,900 72,030 1,694,247 geographical location
Also refer to note 21) for information on segment revenue by product.
For details of the products and services from which each reportable segment derives its revenues, please
see the Director’s Report.
Consolidated Financial Statements 2024 Cementir Holding NV | 377
Notes
1) Intangible assets with a finite useful life
At 31 December 2024, intangible assets with a finite useful life amounted to EUR 194,593 thousand (EUR
188,419 thousand at 31 December 2023). Concession rights and licences mainly consisted of concessions to
use quarries and software licences for the IT system (SAP R/3). The increase in the period is attributable to
projects relating to improvements in IT processes, technology, infrastructure and IT security measures. In
particular, the main projects concerned new developments in the field of ERP (SAP) and management and
operational reporting systems, the implementation and further development of systems for the centralised
management of some core processes including purchase and maintenance (to name the main ones); in
addition, significant investments were made in some Group companies for the optimisation and securing of
the network and systems. The increases also include investments made in accordance with the Emissions
Trading System Regulation. The reclassification shown in the table below is primarily due to the effect of
fulfilling obligations for CO2 allowances accruing as liabilities in 2023 and the related netting accounted for in
2024.
Other intangible assets include the values assigned to certain assets upon acquisition of the CCB Group and
LWCC, such as customer lists and contracts for the exclusive exploitation of quarries. These amounts were
recognised as part of the purchase price allocation for the acquisition of these companies.
Amortisation is applied over the assets’ estimated useful life.
Concessions, Other Assets under Development (EUR'000) licenses and intangible development Total expenditure trademarks assets and advances Gross amount at 1 January 1,786 63,747 265,808 1,565 332,906 2024 Hyperinflation adjustment in - 2,758 1,660 - 4,418 respect of Türkiye Additions - 76 12,614 931 13,621 Disposals - - - - - Impairment losses - - - - - Change in consolidation scope - - 2,232 - 2,232 Exchange differences - 1,304 5,676 (1) 6,979 Reclassifications - 398 (1,785) (544) (1,931) Gross amount at 31 December 1,786 68,283 286,205 1,951 358,225 2024 Amortisation at 1 January 2024 1,786 29,459 113,241 - 144,486 Hyperinflation adjustment in - 602 1,655 - 2,257 respect of Türkiye Amortisation - 2,156 12,771 - 14,927 Decrease - - (5) - (5) Change in consolidation scope - - - - - Exchange differences - 269 1,698 - 1,967 Reclassifications - - - - - Amortisation at 31 December 1,786 32,486 129,360 - 163,632 2024 Net amount at 31 December - 35,797 156,845 1,951 194,593 2024
Consolidated Financial Statements 2024 Cementir Holding NV | 378
The Group spent approximately EUR 2,0 million on research and development during the year (EUR 2.2 million
at 31 December 2023), all of which was recognised in the income statement.
Concessions, Other Assets under Development (EUR'000) licenses and intangible development Total expenditure trademarks assets and advances Gross amount at 1 January 1,786 65,203 267,186 1,004 335,179 2023 Hyperinflation adjustment in - 1,907 1,653 - 3,560 respect of Türkiye Additions - 47 6,966 4,816 11,829 Disposals - (1,111) (173) - (1,284) Impairment losses - - - - - Change in consolidation scope - - 16 - 16 Exchange differences - (2,575) (4,630) - (7,205) Reclassifications - 276 (5,210) (4,255) (9,189) Gross amount at 31 December 1,786 63,747 265,808 1,565 332,906 2023 Amortisation at 1 January 2023 1,786 28,042 100,810 - 130,638 Hyperinflation adjustment in - 290 1,577 - 1,867 respect of Türkiye Amortisation - 2,369 13,101 - 15,470 Decrease - (435) (254) - (689) Change in consolidation scope - - - - - Exchange differences - (807) (1,993) - (2,800) Reclassifications - - - - - Amortisation at 31 December 1,786 29,459 113,241 - 144,486 2023 Net amount at 31 December - 34,288 152,567 1,565 188,419 2023
2) Intangible assets with an indefinite useful life (goodwill)
The Group regularly tests intangible assets with an indefinite useful life, consisting of goodwill allocated to
CGUs, for impairment.
At 31 December 2024, the item amounted to EUR 448,262 thousand (EUR 404,515 thousand at 31 December
2023).
The following table shows CGUs by macro geographical segment:
Consolidated Financial Statements 2024 Cementir Holding NV | 379
31.12.2024 Nordic & North Asia Türkiye Egypt Total Baltic America Pacific (EUR'000) Opening balance 253,772 27,843 118,850 1,112 2,938 404,515 Hyperinflation adjustment in respect of - - 45,496 - - 45,496 Türkiye Additions - - - - - - Disposals - - - - - - Impairment losses - - Change in consolidation scope 9,292 - - - 240 9,532 Exchange differences (1,083) 1,771 (11,844) (391) 266 (11,281) Reclassifications - - - - - - Closing balance 261,981 29,614 152,502 721 3,444 448,262 31.12.2023 Nordic & North Asia Türkiye Egypt Total Baltic America Pacific (EUR'000) Opening balance 255,403 28,845 117,957 1,453 3,177 406,835 Hyperinflation adjustment in respect of - - 42,203 - - 42,203 Türkiye Additions - - - - - - Disposals - - - - - - Impairment losses - - - - - - Change in consolidation scope - - - - - - Exchange differences (1,631) (1,002) (41,310) (341) (239) (44,523) Reclassifications - - - - - - Closing balance 253,772 27,843 118,850 1,112 2,938 404,515
In line with previous years, the Group tested the cash generating units (hereinafter CGUs), to which goodwill
had been allocated, for impairment.
CGUs are defined as the smallest identifiable group of assets that generates cash inflows which are largely
independent of cash inflows generated by other assets or groups of assets. The Group’s CGUs consist of
companies and/or the specific facilities they operate and to which goodwill paid at acquisition was allocated.
At 31 December 2024, the Group represented the CGUs on the basis of its operating segments, consistent
with corporate organisation. The CGU groupings for the “Nordic & Baltic” and “Turkey” include CGUs to which
goodwill was allocated for the local acquisitions of companies.
In particular, the “Nordic & Baltic” CGU grouping includes the Aalborg Portland group, Unicon Denmark and
Unicon Norway, the “North America” CGU grouping includes the United States, the “Turkey” CGU grouping
includes the Cimentas group, Lalapasa, Sureko, Elazig Cimento, Egypt refers to the Sinai White Cement
Company, while the “Asia Pacific” CGU grouping includes Aalborg Portland Malaysia, Aalborg Portland Anqinq
and Aalborg Portland Australia.
Impairment testing of the CGUs grouping covered cash flows tied to the relative groups, to check for impairment.
Consolidated Financial Statements 2024 Cementir Holding NV | 380
Impairment testing involved comparing each CGU grouping’s carrying amount with its value in use, determined
using the discounted cash flow (DCF) method applied to the future cash flows forecast by the three/five-year
plans prepared by the directors of each CGU grouping. Cash flow projections were estimated using budget
forecasts for 2025 approved by the Board of Directors of the respective subsidiaries and of the following
two/four-year period carried out by the company management; these projections were prepared on the basis
of the Group Business Plan, examined and approved by the Board of Directors of Cementir Holding NV on 11
February 2025. The terminal values were determined using a perpetual growth rate. Cash flow projections
include the impact of climate-related risks on future expected cash flows to invest in the reduction of the CO2
emission.
The discount rate applied to the estimated future cash flows was determined for each CGU using a weighted
average cost of capital (WACC).
Key assumptions to determine value in use of CGUs were as follows:
31.12.2024 Average increase of Average EBITDA ratio Growth rate of Discount rate revenue 2025 to 2025 to terminal terminal values terminal period period Values in % Nordic & Baltic 1.5% 6.1% 8.7% 25.2% North America 2% 8.8% 5.4% 14.9% Türkiye 6% 21.8% 15.0% 16.4% Egypt 3% 20.0% 15.3% 28.2% Asia Pacific 3% 8.6% 4.1% 17.0% 31.12.2023 Average increase of Average EBITDA ratio Growth rate of Discount rate revenue 2024 to 2024 to terminal terminal values terminal period period Values in % Nordic & Baltic 1.5% 6.7% 6.1% 24.5% North America 2% 8.7% 4.7% 14.5% Türkiye 5% 21.4% 38.9% 17.0% Egypt 3% 24.6% 10.4% 24.6% Asia Pacific 3% 8.5% 4% 16.9%
The above tests did not identify any impairment at 31 December 2024.
Taking into account the key assumptions set out above, management performed a sensitivity analysis
assuming the following:
• A discount rate fluctuation hypothesis (WACC). Specifically, a possible reasonable variation in WACC, at the
same conditions, would not result in the recognition of any impairment loss for all the CGUs listed above.
The changes applied to the assumption, based on the peculiarities of the CGU and the macroeconomic
environment in which they operate, are as follows:
or Nordic & Baltic +/- 0.4%
or North America +/- 0.4%
or Türkiye +/- 1%
or Egypt +/- 0.4%
or Asia Pacific +/- 0.4%
Consolidated Financial Statements 2024 Cementir Holding NV | 381
• A reduction in growth rates of -1%, other things being equal, would not result in the recognition of any
significant impairment loss for all the aforesaid CGUs.
• A reduction in both the increase in annual revenues and the EBITDA ratio of 10%, all other things bein
g
equa
l, would not result in the recognition of any impairment loss for all the aforementioned CGU, except for
Türkiye for which the break even will be reached with an EBITDA ratio reduction of 2%.
The input assumptions stated in the table above were applied to estimates and forecasts determined by on
the basis of past experience and expected developments in the markets in which the Group operates. The
Group constantly monitors circumstances and events that could lead to impairment losses based on
developments in the current economic climate.
3) P
roperty, plant and equipment
At 31 December 2024, property, plant and equipment amounted to EUR 990,085 thousand (EUR 908,930
thousand at 31 December 2023).
Additional disclosures for each category of property, plant and equipment are set out below:
Assets under Land and Plant and (EUR'000) QuarriesOtherdevelopment Total buildings equipment and advances Gross amount at 1 January 2024 520,290 191,095 1,507,248 193,70995,102 2,507,444 Hyperinflation adjustment in respect of 57,759 793 167,153 12,320792 238,817 Türkiye Additions 6,682 2,173 23,780 40,80793,008 166,450 Disposals (3,750) - (16,243) (13,098) (4) (33,095)Impairment losses - - - -- - Change in consolidation scope 1,207 - 1,340 2,008-4,555Exchange differences (14,585) 489 (44,347) (2,928)(2,382) (63,753) Reclassifications and similar changes 4,357 2,831 50,622 1,743(57,917) 1,636 Gross amount at 31 December 2024 571,960 197,381 1,689,553 234,561128,599 2,822,054 Depreciation at 1 January 2024 310,465 21,371 1,141,415 125,263 -1,598,514Hyperinflation adjustment in respect of 32,350 850 156,700 11,416- 201,316Türkiye Depreciation 13,674 3,969 63,672 33,222- 114,537Decrease (3,631) - (16,182) (11,546) - (31,359)Change in consolidation scope - - - -- - Exchange differences (7,687) (178) (40,687) (2,349) - (50,901)Reclassifications and similar changes (4) - - (134)- (138) Depreciation at 31 December 2024 345,167 26,012 1,304,918 155,872- 1,831,969Net amount at 31 December 2024 226,793 171,369 384,635 78,689128,599 990,085
Note 31 IFRS 16 – “Leases” gives a breakdown of Right of use assets categorised according to their nature.
Consolidated Financial Statements 2024 Cementir Holding NV | 382
Assets under Land and Plant and (EUR'000) Quarries Other development Total buildings equipment and advances Gross amount at 1 January 2023 520,533 198,859 1,491,283 177,871 56,235 2,444,781 Hyperinflation adjustment in respect of 56,327 791 162,262 10,650 83 230,113 Türkiye Additions 4,688 2,036 29,302 33,063 69,024 138,113 Disposals (2,189) (3,481) (5,044) (16,036) -(26,750)Impairment losses - - - - - - Change in consolidation scope (1,425) (2,076) (9,079) (670) - (13,250) Exchange differences (64,076) (4,935) (181,946) (14,005) (1,470) (266,432) Reclassifications and similar changes 6,432 (99)20,4702,836 (28,770) 869 Gross amount at 31 December 2023 520,290 191,095 1,507,248 193,709 95,102 2,507,444 Depreciation at 1 January 2023 301,886 29,361 1,100,248 115,206 -1,546,701Hyperinflation adjustment in respect of 31,108 730 151,742 9,865 -193,445Türkiye Depreciation 13,785 3,696 59,129 26,307 -102,917Decrease (1,701) (3,584) (4,603) (14,291) -(24,179)Change in consolidation scope (1,088) (5,359) (7,731) (598) - (14,776) Exchange differences (33,530) (3,473) (157,376) (11,229) -(205,608)Reclassifications and similar changes 5 6 3 -14Depreciation at 31 December 2023 310,465 21,371 1,141,415 125,263 -1,598,514Net amount at 31 December 2023 209,825 169,724 365,833 68,446 95,102 908,930
See the section on accounting policies for the useful life criteria adopted by the Group.
At 31 December 2024, a total of EUR 105.3 million of property, plant and equipment (EUR 101.1 million at 31
December 2023) was pledged as collateral for bank loans totalling a residual EUR 106.1 million at the reporting
date (EUR 120.7 million at 31 December 2023).
As of 31 December 2024, there were no contractual commitments in place for the purchase of property, plant
and equipment, as of 31 December 2023. No financial expenses were capitalised in 2024, nor in 2023.
The increases in the period mainly concern investments to improve the efficiency of the plants, aimed at
reducing the consumption of electricity, fuel and raw materials, as well as other investments to increase
grinding or storage capacity and improve material transfer logistics within the plants. Investments in
sustainability are also included to increase the use of alternative fuels compared to traditional ones and
projects for new cement silos. The most significant investment concerns the modernisation of the Belgian plant
kiln, to increase the use of alternative fuels from the current 40% to over 70% and the reactivation of the
second clinker production furnace in Egypt. Lastly, investments accounted for under IFRS 16 relating to the
renewal of cement, ready-mixed concrete and aggregate transport and distribution vehicles and certain cement
terminals are also significant.
Consolidated Financial Statements 2024 Cementir Holding NV | 383
4) Investment property
Investment property amounting to EUR 116,815 thousand (EUR 87,585 thousand at 31 December 2023) are
exposed at fair value. (EUR'000) 31.12.2024 31.12.2023 Land Buildings Total Land Buildings Total Opening balance 67,809 19,776 87,585 65,506 20,720 86,226 Hyperinflation adjustment in respect of Türkiye 26,303 1,432 27,735 23,053 550 23,603 Increase - - - - - - Decrease (4,053) -(4,053) (2,573)(545)(3,118)Fair value gains (losses) 15,606 (2,241) 13,365 7,425 244 7,669 Exchange differences (7,581) (236)(7,817) (25,602)(1,193) (26,795) Reclassifications - - - - - - Closing balance 98,084 18,731 116,815 67,809 19,776 87,585
At 31 December 2024, the investment property mainly included land and buildings of the Cimentas Group for EUR
100.1 million (EUR 66.8 million at 31 December 2023).
At 31 December 2024, the change in fair value mainly includes the revaluation of properties in Türkiye for
approximately EUR 15 million. The decrease in the fair value is totally related to the property in Torrespaccata
(Rome), which decreased against the previous year by EUR 2,2 million due to the decrease in market prices of
commercial buildings in 2024.
The value of the Investment property is not pledged for any sum as collateral as the bank debt related to the
property was repaid in December 2024.
The fair value of investment property was determined at the end of each period by independent property
assessors who meet professionalism requirements, bearing in mind mainly the prices of other similar assets
recently involved in transactions or currently offered on the same market. Refer to note 33) for information on fair
value.
5) Equity-accounted investments
The item includes the Group’s share of equity in equity-accounted associates and joint ventures. The carrying
amount of these investments and the Group’s share of the investees’ profit or loss are shown below:
Consolidated Financial Statements 2024 Cementir Holding NV | 384
loss
loss
31.12.2024 (EUR'000) Registered % Share of profit or Companies Business Carrying amount office owned Ready-mixed Gdańsk ECOL Unicon Spzoo 49% 4,768 680 concrete (Poland) Svedala ÅGAB Syd Aktiebolag Aggregates 40% 2,274 205 (Sweden) Liège-Flémalle Recybel Other 25.5% 143 - (Belgium) Ready-mixed NB Beton Aps Denmark 49% 2,951 269 concrete Total 10,136 1,154 31.12.2023 (EUR'000) Registered % Share of profit or Companies Business Carrying amount office owned Ready-mixed Gdańsk ECOL Unicon Spzoo 49% 4,249 607 concrete (Poland) Svedala ÅGAB Syd Aktiebolag Aggregates 40% 2,137 165 (Sweden) Liège-Flémalle Recybel Other 25.5% 143 - (Belgium) Total 6,529 772
No indicators of impairment were identified for these investments.
6) Other investments
(EUR'000) 31.12.2024 31.12.2023 Available-for-sale equity investments Opening balance 352 351 Hyperinflation adjustment in respect of Türkiye 45 45 Increase (decrease) - - Fair value gains (losses) - - Change in consolidation scope - - Reclassifications to assets held for sale - - Exchange differences (13) (44) Reclassifications - Recybel - - Available-for-sale equity investments Closing balance 384 352
No indicators of impairment were identified.
Consolidated Financial Statements 2024 Cementir Holding NV | 385
7) Inventories
The breakdown of inventories is shown below:
(EUR'000) 31.12.2024 31.12.2023 Raw materials, consumables and supplies 114,125 120,900 Work in progress 57,697 57,541 Finished goods 55,695 51,726 Advances 618 593 Inventories 228,135 230,760
Changes were recorded over the period in the different inventory categories as a result of manufacturing processes
and sales, the costs of the raw materials used for production and the foreign exchange rates used to translate
financial statements stated in foreign currencies.
The change in raw materials, consumables and supplies, negative for EUR 6,775 thousand (negative for EUR
240 thousand at 31 December 2023) was expensed in the income statement as “Raw materials costs” (Note
23). The positive change in work in progress and finished goods was recorded in the income statement for a
total of EUR 156 thousand (31 December 2023: positive for EUR 11,671 thousand).
It should be noted that the net realisable value of the inventories is higher than the carrying amount.
8) Trade receivables
Trade receivables, net of related loss allowance, totalled EUR 181,786 (EUR 164,931 thousand at 31
December 2023) and break down as follows: (EUR'000) 31.12.2024 31.12.2023 Trade receivables 183,010 164,936 Loss allowance (2,840) (3,411) Net trade receivables 180,170 161,525 Advances to suppliers 1,476 3,334 Trade receivables - related parties (note 34) 140 72 Trade receivables 181,786 164,931
The carrying amount of trade receivables equals their fair value; They arise on commercial transactions for the
sale of goods and services and do not present any significant concentration risks.
In Türkiye, received collaterals amount to EUR 62.4 million at 31 December 2024 (EUR 35.1 million at 31
December 2023).
The increase in trade receivables compared to 31 December 2023 is mainly attributable to an increase in
revenues in the last period of the year.
Consolidated Financial Statements 2024 Cementir Holding NV | 386
The breakdown by due date is shown below:
(EUR'000) 31.12.2024 31.12.2023 Not yet due 162,576 147,075 Overdue: 20,434 17,861 0-30 days16,051 12,871 30-60 days2,900 2,990 60-90 days405 486 More than 90 days 1,078 1,514 Total trade receivables 183,010 164,936 Loss allowance (2,840) (3,411) Net trade receivables 180,170 161,525
9) Current and non-current financial assets
Non-current financial assets totalled EUR 529 thousand (EUR 125 thousand at 31 December 2023).
Current financial assets totalled EUR 17,635 thousand (EUR 45,334 thousand 31 December 2023) and break
down as follows: (EUR'000) 31.12.2024 31.12.2023 Fair value of derivatives - 5,539 Accrued income/ Prepayments 234 844 Loan assets - related parties (note 34) 446 450 Other financial receivables 16,955 38,501 Current financial assets 17,635 45,334
Other financial receivables mainly include investments by Aalborg Portland A/S.
10) Current tax assets
Current tax assets, amounting to EUR 13,280 thousand (EUR 5,326 thousand at 31 December 2023) mainly
refer, for approximately EUR 8.9 million, to the receivables from the revenue office for IRES and IRAP
advances paid to the receivable relating to the request for reimbursement due to lower royalties related to the
so-called Mutual Agreement Procedure (MAP).
11) Other current and non-current assets
Other non-current assets totalled EUR 402 thousand (EUR 569 thousand at 31 December 2023) and mainly
consisted of deposits.
Other current assets totalled EUR 26,385 thousand (EUR 20,301 thousand at 31 December 2023) and
consisted of non-commercial items. The item breaks down as follows:
Consolidated Financial Statements 2024 Cementir Holding NV | 387
(EUR'000) 31.12.2024 31.12.2023 VAT assets 13,905 8,101 Personnel 1,402 886 Accrued income 250 342 Prepayments 3,671 4,381 Other receivables 7,156 6,591 Other current assets 26,385 20,301
12) Cash and cash equivalents
Totalling EUR 485,603 thousand (EUR 412,391 thousand at 31 December 2023), the item consists of liquidity held
by the Group, which is usually invested in remunerated short-term deposits:
(EUR'000) 31.12.2024 31.12.2023 Bank and postal deposits 484,678 412,276 Bank deposits - related parties (note 34) - - Cash-in-hand and cash equivalents 925 115 Cash and cash equivalents 485,603 412,391
For further details please refer to the consolidated statement of cash flows.
13) Equity
Equity attributable to the owners of the parent
Equity attributable to the owners of the parent amounted to EUR 1,717,031 thousand at 31 December 2024 (EUR
1,503,064 thousand at 31 December 2023). Profit for 2024 attributable to the owners of the parent totalled EUR
201,640 thousand (EUR 201,364 thousand in 2023).
Share capital
The Parent’s share capital consists of 159,120,000 ordinary shares with a par value of EUR 1 each. It is fully paid
up and has not changed with respect to the previous year end. There are no pledges or restrictions on the shares.
Other reserves
Treasury shares
The number of treasury shares held following the completion of the share buy-back programme (the
“Programme”) in October 2021 has not changed.
It should be noted that under the Programme, between 15 October 2020 and 12 October 2021 (ends included),
3,600,000 treasury shares, equal to 2.2624% of the share capital, were purchased on the Mercato Telematico
Azionario organised and managed by Borsa Italiana S.p.A. at a weighted average price of EUR 8.1432 per
share and for a total outlay of EUR 29,315 thousand.
Translation reserve
At 31 December 2024, the translation reserve had a negative balance of EUR 980,058 thousand (negative
EUR 890,853 thousand at 31 December 2023), broken down as follows:
Consolidated Financial Statements 2024 Cementir Holding NV | 388
(EUR'000) 31.12.2024 31.12.2023 Change Türkiye (Turkish lira – TRY) (810,355) (775,533) (34,822) USA (US dollar – USD) 12,009 6,245 5,764 Egypt (Egyptian pound – EGP) (160,655) (100,367) (60,288) Iceland (Icelandic krona – ISK) (2,664) (2,906) 242 China (Chinese renminbi yuan – CNY) 10,491 8,339 2,152 Norway (Norwegian krone – NOK) (9,648) (8,759) (889) Sweden (Swedish krona – SEK) (2,289) (1,941) (348) Other countries (16,948) (15,931) (1,017) Total translation reserve - attributable to Group (980,058) (890,853) (89,205)
The main changes of the period are related to both Turkish lira and Egyptian pound devaluation against Euro
Dividends
During the year, the 2023 dividend was distributed to shareholders in the amount of EUR 0.28 per ordinary
share, for a total amount of EUR 43,546,000, net of treasury shares.
Equity attributable to non-controlling interests
Equity attributable to non-controlling interests amounted to EUR 139,353 thousand at 31 December 2024 (EUR
147,769 thousand at 31 December 2023). Profit for 2024 attributable to non-controlling interests totalled EUR
12,815 thousand (EUR 14,128 thousand in 2023). During the year, the group increased its holding of the
subsidiary Sinai White Portland Cement Co. S.A.E. by acquiring 25.40% for a consideration of EUR 30 million;
this transaction is expressed in the movement of Shareholders’ Equity under “Minority interests in the
acquisition of a subsidiary”.
Capital management
The Board’s policy is to maintain a strong capital base aiming to safeguard investor, creditor and market
confidence and to sustain future development of the business. Management manages the capital structure by
constantly monitoring the evolution of Net Financial Debt/Position, Net Gearing Ratio and Equity Ratio. For
this purpose, net financial debt is calculated as total financial liabilities (as shown in the statement of financial
position) less cash and cash equivalents and current financial assets. Adjusted Equity comprises all
components of equity other than amounts accumulated in the hedging and cost of hedging reserves.
Specifically, in the meeting of 11 February 2025, the Board of Directors of Cementir Holding NV approved the
update of the Business Plan 2025 - 2027 with the aim of achieving a net cash position of over EUR 700 million
at the end of the plan, deriving from cash generation of over EUR 400 million.
Consolidated Financial Statements 2024 Cementir Holding NV | 389
The following table highlights the financial indicators:
Ratio (EUR'000) 2024 2023 Total Financial Liabilities 212,803 240,115 - Less cash and cash equivalents and current financial assets (503,239) (457,725) Net Financial Debt (290,436) (217,610) Total Equity 1,856,384 1,650,833 - Hedging reserve (1,896) 7,820 Adjusted Equity 1,854,488 1,658,653 Net Gearing Ratio (Net Financial Debt/Adjusted Equity) -15.66% -13.12% Adjusted Equity 1,854,488 1,658,653 Total Assets 2,755,724 2,522,194 Equity ratio (Adjusted Equity/Total Assets) 67.30% 65.76%
The cost of borrowing is 5.59% of average debt in 2024 (5.66% in 2023).
The Group's Management monitors the performance of the Return on Equity calculated by dividing the Result
from continuing operations by the Shareholders' Equity. This indicator is equal to 11.55% in 2024 (13.05% in
2023), thanks to the positive management performance.
Subsidiaries with material non-controlling interests
Aalborg Portland AB Sydsten Malaysia (EUR'000) 31.12.2024 31.12.2023 31.12.2024 31.12.2023 Revenue 50,221 54,208 47,550 46,037 Profit for the year: 2,467 4,117 2,525 733 - attributable to the owners of the Parent 1,727 2,882 1,081 339 - attributable to non-controlling interests 740 1,235 1,444 394 Other comprehensive income (expense) 4,602 (4,026) (954) 255 Comprehensive income (expense) for the year 7,069 91 1,571 988 Assets: 76,644 70,391 48,347 46,936 - Non-current assets 25,585 25,179 21,861 22,230 - Current assets 51,059 45,212 26,486 24,706 Liabilities: 15,570 13,941 27,247 23,602 - Non-current liabilities 2,042 2,754 13,558 12,712 - Current liabilities 13,528 11,187 13,689 10,890 Net assets 61,074 56,450 21,100 23,334 - attributable to the owners of the Parent 42,752 39,520 9,991 11,048 - attributable to non-controlling interests 18,322 16,930 11,109 12,286 Net change in cash flow 8,156 5,686 8,941 5,102 Dividends paid to third parties 730 808 1,481 2,728
Consolidated Financial Statements 2024 Cementir Holding NV | 390
Lehigh White Cement Sinai White Portland Company Cement (EUR'000) 31.12.2024 31.12.2023 31.12.2024 31.12.2023 Revenue 160,927 159,621 46,264 50,255 Profit for the year: 9,011 10,477 30,341 21,889 - attributable to the owners of the Parent5,970 6,627 23,413 15,566 - attributable to non-controlling interests3,041 3,850 6,928 6,323 Other comprehensive income (expense) 8,360 (4,585) (24,806) (21,975) Comprehensive income (expense) for the year 17,371 5,892 5,535 (86) Assets: 315,320 304,667 97,911 118,510 - Non-current assets172,307 171,079 17,003 18,440 - Current assets143,013 133,588 80,908 100,070 Liabilities: 53,055 57,867 20,171 34,420 - Non-current liabilities26,684 27,697 10,063 10,374 - Current liabilities26,371 30,170 10,108 24,046 Net assets 262,265 246,800 77,740 84,090 - attributable to the owners of the Parent165,856 156,076 75,027 64,245 - attributable to non-controlling interests96,409 90,724 2,713 19,845 Net change in cash flow 20,980 25,035 6,059 18,228 Dividends paid to third parties - -
14) Employee benefits
Employee benefits totalled EUR 25,941 thousand (EUR 22,807 thousand at 31 December 2023) and included
provisions for employee benefits and post-employment benefits. Where conditions are met for their recognition,
liabilities are also recognised for future commitments connected with medium/long-term incentive plans that
will be paid to employees at the end of the plan period. The long-term incentive plan envisages the payment
of a variable monetary reward, calculated on the basis of the gross annual salary of the beneficiary, which is
tied to the achievement of the business and financial objectives in the Industrial Plans prepared and approved.
It amounted to EUR 2,997 thousand at 31 December 2024 (EUR 3,063 thousand at 31 December 2023).
Liabilities for employee benefits, mainly in Türkiye, Belgium and Norway, are included in the defined benefit
plans and are partly funded by insurance plans. In particular, plan assets refer to the pension plans in Belgium
and Norway. Liabilities are valued applying actuarial methods and assets have been calculated based on the
fair value at the reporting date. Post-employment benefits are an unfunded and fully provisioned liability
recognised for benefits attributable to employees upon or after termination of employment. This liability is a
defined contribution plan. The assumptions are summarised in the table below:
Values in % 31.12.2024 31.12.2023 Annual discount rate 2%-4% 2%-4% Expected return on plan assets 2.5% 2.7% Annual post-employment benefits growth rate 3.31% 3.31%
Consolidated Financial Statements 2024 Cementir Holding NV | 391
The amounts disclosed in the statement of financial position were determined as follows:
(EUR'000) 31.12.2024 31.12.2023 Liabilities for employee benefits 59,244 54,823 Fair value of plan assets (36,299) (35,079) Employee benefits 22,945 19,744 Long-term incentive plan obligation 2,997 3,063 Total employee benefits 25,942 22,807
The tables below show changes in the net liabilities/(assets) for employee benefits and the related parts:
(EUR'000) 31.12.2024 31.12.2023 Liabilities for employee benefits opening balance 54,823 56,795 Current service cost 1,958 3,209 Interest cost 2,081 1,770 Net actuarial gains recognised in the year 3,794 (1,118) Change in consolidation scope - - Exchange differences (469)(1,867)Other changes - - (Benefits paid) (2,943) (3,966) Liabilities for employee benefits closing balance 59,244 54,823 (EUR'000) 31.12.2024 31.12.2023 Fair value of plan assets opening balance 35,079 32,936 Financial income on plan assets 1,293 1,053 Net actuarial gains recognised in the year -175110 Change in consolidation scope - - Exchange differences (196)(272)Other changes - - (Net benefits paid) 298 1,252 Fair value of plan assets closing balance 36,299 35,079
At 31 December 2024, the effect on the Defined Benefit plans in Belgium/France of a decrease or increase in
the key assumptions, is shown below:
• Discount rate +50 bp: EUR -0.6 million;
• Discount rate -50 bp: EUR +0.7 million;
• Increase in healthcare costs + 1%: EUR 0.5 million
Regarding these plans, the life expectancy for an employee of 65 y.o. today:
• Belgium: M: 20.93 years / F: 24.58 years
• France: plans are related to payment during active life or at retirement so the information is not relevant.
Employer and employees’ contribution 2024 related to pension plans in Belgium are:
• Employees’ contribution: EUR 0.4 million
Consolidated Financial Statements 2024 Cementir Holding NV | 392
• Employer’s contributions: EUR 1.4 million
Expected Employer contribution 2025 related to pension plans in Belgium are EUR 1.4 million.
Total weighted average duration of these Defined Benefit Obligation is 10 years.
15) Provisions
Non-current and current provisions amounted to EUR 25,322 thousand (EUR 25,484 thousand at 31
December 2023) and EUR 4,776 thousand (EUR 3,809 thousand at 31 December 2023) respectively.
Provision for Litigation Other Total (EUR'000) quarry provision provisions provisions restoration Balance at 1 January 2024 22,193 5,338 1,762 29,293 Provisions 986 2,371 639 3,996 Utilisations (2)(1,606)(629)(2,237)Decrease (42) (92) (79) (213) Change in consolidation scope - Exchange differences (307) (294) (26) (627) Reclassifications - Net actuarial gains recognised in the year - Other changes (114) (114) Balance at 31 December 2024 22,828 5,717 1,553 30,098 Including: Non-current provisions 22,725 2,133 464 25,322 Current provisions 103 3,584 1,089 4,776 Provision for Litigation Other Total (EUR'000) quarry provision provisions provisions restoration Balance at 1 January 2023 23,750 9,650 3,406 36,806 Provisions 168 2,938 496 3,602 Utilisations (143)(5,843)(440)(6,426)Decrease (145) (353) (54) (552) Change in consolidation scope (1,050) (1,633) (2,683) Exchange differences (1,022) (1,054) 31 (2,045) Reclassifications - Net actuarial gains recognised in the year - Other changes 635 (44) 591 Balance at 31 December 2023 22,193 5,338 1,762 29,293 Including: Non-current provisions 22,086 2,689 709 25,484 Current provisions 107 2,649 1,053 3,809
Consolidated Financial Statements 2024 Cementir Holding NV | 393
The provision for quarry restoration is allocated for the cleaning and maintenance of quarries where raw materials
are extracted, to be performed before the utilisation concession expires.
Other provisions mainly include the provision for risks for corporate restructuring charges of approximately EUR
0.3 million (EUR 0.6 million at 31 December 2023).
16) Trade payables
The carrying amount of trade payables approximates their fair value; the item breaks down as follows:
(EUR'000) 31.12.2024 31.12.2023 Suppliers 350,295 311,401 Related parties (note 34) 270 287 Advances 11,543 8,366 Trade payables 362,108 320,054
17) Financial liabilities
Non-current and current financial liabilities are shown below:
(EUR'000) 31.12.2024 31.12.2023 Bank loans and borrowings (note 33) 90,951 106,147 Lease liabilities (note 31) 54,637 54,936 Lease liabilities - related parties (note 34) 1,596 - Fair value of derivatives (note 33.1) 12,243 - Financial debt - related parties - - Non-current financial liabilities 159,427 161,083 Bank loans and borrowings - 2 Current portion of non-current financial liabilities (note 33.1) 15,117 40,638 Current loan liabilities - related parties (note 34) 7 - Current lease liabilities (note 31) 33,258 26,242 Current lease liabilities - related parties (note 34) 1,761 1,536 Other loan liabilities 935 155 Fair value of derivatives (note 33.1) 2,298 10,459 Current financial liabilities 53,376 79,032 Total financial liabilities 212,803 240,115
The carrying amount of non-current and current financial liabilities approximates their fair value.
At 31 December 2024, the total financial exposure amounted to EUR 212.8 million (EUR 240.1 million at 31
December 2023), the change in debt of approximately EUR 27.3 million is mainly linked to the repayment of portions
of loans and the change in the overall fair value of derivative instruments, negative for approximately EUR 14.5
million (negative for approximately EUR 10.5 million at 31 December 2023) which represents the valuation at 31
December 2024 of the derivatives put in place for the purposes of hedging changes in interest rates, commodities
and exchange rates maturing between January 2025 and December 2025.
The Group’s exposure, broken down by residual expiry of the financial liabilities, is as follows:
Consolidated Financial Statements 2024 Cementir Holding NV | 394
(EUR'000) 31.12.2024 31.12.2023 Within three months 20,972 20,001 Between three months and one year 32,404 59,031 Between one and two years 45,536 32,455 Between two and five years 67,790 74,028 After five years 46,101 54,600 Total financial liabilities 212,803 240,115 (EUR'000) 31.12.2024 31.12.2023 Floating rate 212,803 240,115 Fixed rate Financial liabilities 212,803 240,115
The following table shows the Net Financial Debt as at 31 December 2024 and 2023, calculated in accordance
with paragraph 175 of the recommendations contained in ESMA 32-382-1138 of 4 March 2021:
(EUR'000) 31.12.2024 31.12.2023 A. Cash925 115 B. Cash equivalents484,678 412,276 C. Other current financial assets17,635 45,334 D. Liquidity (A+B+C)503,238 457,725 E. Current financial debt(37,525) (38,394) F. Current portion of non-current financial debt(15,851) (40,638) G. Current financial indebtedness (E+F)(53,376) (79,032) H. Net current financial Intebtedness (G-D)449,863 378,693 I. Non-current financial debt(159,427) (161,083) J. Debt instruments- - K. Non-current trade and other payables- - L. Non-current financial indebtedness (I+J+K)(159,427) (161,083) M. Total financial indebtedness (H+L)290,436 217,610
18) Current tax liabilities
Current tax liabilities amounted to EUR 24,066 thousand (EUR 24,010 thousand at 31 December 2023) and
relate to income tax liabilities, net of payments on account.
19) Other non-current and current liabilities
Other non-current liabilities totalled EUR 237 thousand (EUR 247 thousand at 31 December 2023).
Other current liabilities totalled EUR 71,637 thousand (EUR 74,825 thousand at 31 December 2023) and break
down as follows:
Consolidated Financial Statements 2024 Cementir Holding NV | 395
(EUR'000) 31.12.2024 31.12.2023 867Personnel 30,941 31,098 Social security institutions 3,587 3,824 Related parties (note 34) - - Deferred income 8 Accrued expenses 5,423 4,732 Other sundry liabilities 31,677 34,304 Other current liabilities 71,636 74,825
Other sundry liabilities mainly include payables to the revenue office for employee withholdings, VAT and other
payables.
20) Deferred tax assets and liabilities
Deferred tax liabilities, amounting to EUR 172,450 thousand (EUR 160,009 thousand as of 31 December
2023), and deferred tax assets, amounting to EUR 41,694 thousand (EUR 46,127 thousand as of 31
December 2023), were determined as follows:
Deferred tax (EUR'000) Deferred tax assets liabilities Balance at 1 January 2024 160,009 46,127 Hyperinflation adjustment in respect of Türkiye 15,233 (8,423) Accrual, net of utilisation in profit or loss 634 3,493 Increase (decrease) in equity (1,051) (225) Change in consolidation scope 491 - Exchange differences (5,513) 281 Other changes 2,647 441 Balance at 31 December 2024 172,450 41,694 Deferred tax (EUR'000) Deferred tax assets liabilities Balance at 1 January 2023 161,896 43,071 Hyperinflation adjustment in respect of Türkiye 10,927 6,228 Accrual, net of utilisation in profit or loss 2,728 196 Increase (decrease) in equity (36) 226 Change in consolidation scope 1 118 Exchange differences (13,778) (1,491) Other changes (1,729) (1,985) Balance at 31 December 2023 160,009 46,127
Consolidated Financial Statements 2024 Cementir Holding NV | 396
Accrual, net Increase, net Change in of utilisation (EUR'000) 01.01.2024 of decreases consolidation 31.12.2024 in profit or in equity scope loss Fiscally-driven depreciation of property, plant 75,898 (2,949) (1,054) 2,256 74,151 and equipment Fiscally-driven amortisation of intangible 14,500 (840) 310 - 13,970assets Revaluation of plant 6,939 2,650 (670) - 8,919 Hyperinflation adjustment in respect of Türkiye 22,657 - 9,745 - 32,402Other 40,015 4,715 (1,723) - 43,008Deferred tax liabilities 160,009 3,576 6,608 2,256 172,450 Tax losses carried forward 21,092 727 342 - 22,161Provisions for risks and charges 1,795 (1,284) 530 - 1,041Differences in property, plant and equipment 4,194 (6,466) 2,272 - - Hyperinflation adjustment in respect of Türkiye - - - - - Other 19,046 (921) 367 - 18,492Deferred tax assets 46,127 (7,944) 3,511 -41,694Accrual, net Increase, net Change in of utilisation (EUR'000) 01.01.2023 of decreases consolidation 31.12.2023 in profit or in equity scope loss Fiscally-driven depreciation of property, plant 79,570 (5,419) 1,747 - 75,898and equipment Fiscally-driven amortisation of intangible 16,470 (966) (1,004) - 14,500assets Revaluation of plant 8,354 3,253 (4,668) - 6,939Hyperinflation adjustment in respect of Türkiye 19,182 (8,282) 11,757 - 22,657Other 38,320 579 1,116 1 40,015 Deferred tax liabilities 161,896 (10,835) 8,948 1 160,009 Tax losses carried forward 22,721 (857) (772) - 21,092Provisions for risks and charges 1,538 815 (558)-1,795 Differences in property, plant and equipment 7,359 - (3,165) - 4,194Hyperinflation adjustment in respect of Türkiye (10,186) (7,340) 17,526 - - Other 21,639 239 (2,714) (118) 19,046Deferred tax assets 43,071 (7,143) 10,317 (118)46,127
Recovery of the deferred tax assets is expected in the following years within the timeframe defined by the
relevant legislation.
Consolidated Financial Statements 2024 Cementir Holding NV | 397
21) Revenue
(Euro ‘000) 2024 2023 Product sales 1,596,920 1,593,112 Product sales to related parties (note 34) 71 476 Services and other recharges 89,952 100,659 Revenue 1,686,943 1,694,247
Group revenue reached EUR 1,686.9 million, down 0.4% compared to EUR 1,694.2 million in 2023. The
contraction was widespread in all regions except for Türkiye and Sweden, influenced by lower volumes in some
regions and the sharp depreciation of currencies in Türkiye and Egypt.
The caption Services and other charges is mainly related to transport services which are recognised at the time
the service is provided.
Revenue by product broken down by related operating segments is shown below:
2024 Holding Unallocated CEMENTIR Nordic & North Asia Belgium Türkiye Egypt and items and HOLDING Baltic America Pacific Services adjustments** GROUP (Euro ‘000) Cement 430,282 174,951 162,180 267,794 46,264 104,406 - (54,040)1,131,837 Ready-mixed 292,756 94,693 - 129,722- - - - 517,171 concrete Aggregates 23,255 65,677 - 12,642- 3,225- 1,420 106,219 Waste - - - 6,097 - - - - 6,097 Other - - 19,103 23,867 - - 148,596 (24,233) 167,333 Unallocated items and (51,158) (7)1,420(48,949) - (3,094)- (139,926)(241,714) adjustments** Revenue 695,135 335,314 182,703 391,173 46,264 104,537 148,596 (216,779) 1,686,943 2023 Holding Unallocated CEMENTIR Nordic & North Asia Belgium Türkiye Egypt and items and HOLDING Baltic America Pacific Services adjustments** GROUP (Euro ‘000) Cement 445,519 200,817 160,737 235,154 50,255 121,350 - (56,674)1,157,158 Ready-mixed 295,735 98,203 - 92,072- - - - 486,010 concrete Aggregates 25,267 60,853 - 7,077- 2,926- - 96,123 Waste - - - 6,602 - - - - 6,602 Other - - 22,103 18,282 - - 204,492 (46,828) 198,049 Unallocated items and (47,960) - - (34,155) - (2,836)- (164,744)(249,695) adjustments** Revenue 718,561 359,873 182,840 325,032 50,255 121,440 204,492 (268,246) 1,694,247 ____________________
** Unallocated items and adjustments” mainly refers to infra-group transactions.
Consolidated Financial Statements 2024 Cementir Holding NV | 398
22) Increase for internal work and other income
Increase for internal work of EUR 921 thousand (EUR 1,085 thousand in 2023) refers to the capitalisation of
costs of materials and personnel costs used in the realisation of property, plant and equipment and intangible
fixed assets.
Other income
Other income of EUR 26,528 thousand (EUR 30,544 thousand in 2023) breaks down as follows:
(Euro ‘000) 2024 2023 Rent, lease and hires 1,735 914 Rent, lease and hires - related parties (note 34) 114 135 Gains 791 12,140 Release of provision for risks 214 552 Insurance refunds 90 145 Revaluation of investment property (note 4) 15,515 7,670 Other income 8,065 8,986 Other income from related parties (note 34) 4 2 Other income 26,528 30,544
23) Raw materials costs
(Euro ‘000) 2024 2023 Raw materials and semi-finished products 375,144 367,396 Fuel 154,987 191,945 Electrical energy 114,644 131,125 Other materials 52,670 48,895 Change in raw materials, consumables and goods 11,003 (240) Raw materials costs 708,448 739,121
The cost of raw materials amounted to EUR 708.4 million (EUR 739.1 million in 2023), down 4.0% mainly due
to the combined effect of lower volumes in some areas and exchange rate developments, particularly in
Türkiye.
24) Personnel costs
(Euro ‘000) 2024 2023 Wages and salaries 172,122 162,247 Social security charges 34,162 30,181 Other costs 8,908 10,697 Personnel costs 215,192 203,125
Pensions cost amount to EUR 951 thousand (EUR 858 thousand in 2023) and are included in other costs.
Consolidated Financial Statements 2024 Cementir Holding NV | 399
The Group’s workforce breaks down as follows:
Average Average 31.12.2024 31.12.2023 2024 2023 Executives 53 53 55 54 Middle management, white-collar workers and intermediates 1,243 1,234 1,233 1,210 Blue-collar workers 1,786 1,758 1,778 1,830 Total 3,082 3,045 3,066 3,094
More specifically, as of 31 December 2024, employees in service at the Parent numbered 44 (40 at 31 December
2023); those at the Cimentas Group numbered 805 (763 at 31 December 2023), those at the Aalborg Portland
Group numbered 1,133 (1,148 at 31 December 2023), those at the Unicon Group numbered 635 (627 at 31
December 2023), and those at the CCB Group numbered 465 (467 at 31 December 2023). The Group has no
employees in the Netherlands.
25) Other operating costs
(Euro ‘000) 2024 2023 Transport 161,842 175,682 Services and maintenance 113,877 103,671 Consultancy 13,950 12,287 Insurance 5,190 4,743 Other services - related parties (note 34) 450 492 Rent, lease and hires 10,619 10,891 Rent, lease and hires - related parties (note 34) 224 168 Other costs 76,761 76,245 Other operating costs 382,913 384,179
26) Amortisation, depreciation, impairment losses and additions to provision
(Euro ‘000) 2024 2023 Amortisation 15,301 15,769 Depreciation 127,137 114,533 Provisions 2,798 2,326 Impairment losses 84 165 Amortisation, depreciation, impairment losses and provisions 145,320 132,793
Amortisation, depreciation, impairment losses and provisions include EUR 38.9 million (EUR 33.3 million in
2023) in amortisation of right of use assets in the application of the IFRS 16.
Impairment losses refer to trade receivables.
Consolidated Financial Statements 2024 Cementir Holding NV | 400
27) Net financial income (expense) and share of net profits of equity-accounted investees
The positive balance for 2024 of EUR 22,870 thousand (2023: positive EUR 12,381 thousand) relates to the
share of net profits of equity-accounted investees and net financial income, broken down as follows:
(Euro ‘000) 2024 2023 Share of profits of equity-accounted investees 1,154 772 Share of losses of equity-accounted investees - - Share of net profits of equity-accounted investees 1,154 772 Interest and financial income 24,539 11,709 Interest and financial income - related parties (note 34) 14 34 Financial income on derivatives 3,064 5,687 Total financial income 27,617 17,430 Interest expense (11,939) (13,105) Other financial expense (5,441) (3,416) Interest and financial expense - related parties (note 34) (7) - Losses on derivatives (5,073) (952) Total financial expense (22,460) (17,473) Exchange rate gains 38,032 31,330 Exchange rate losses (15,534) (15,792) Net exchange rate losses 22,498 15,538 Net income/(expense) from hyperinflation (5,939) (3,886) Net financial income (expense) 21,716 11,609 Net financial income (expense) and share of net profits of equity-accounted 22,870 12,381 investees
In 2024 the net result of financial management is positive for EUR 21.7 million compared to the previous year
(positive for EUR 11.6 million in 2023) and includes net charges from hyperinflation of EUR 5.9 million (net
charges for EUR 3.9 million in 2023), net financial charges for around EUR 7.2 million (EUR 4.8 million in 2023),
net exchange income for EUR 22.5 million (EUR 15.5 million in 2023) and the effect of the valuation of
derivatives.
Interest expense included EUR 4.9 million (EUR 2.6 million in 2023) thousand in interest on lease liabilities
arising from the application of the IFRS 16 accounting standard.
Financial income and expense on derivatives mainly reflect the mark-to-market accounting of derivatives
purchased to hedge currency and interest rate risks. In the light of the aforementioned measurements, there
are not unrealised gains (around EUR 2.3 million at 31 December 2023) and around EUR 0.1 million (around
EUR 0.4 million at 31 December 2023) are unrealised losses.
Regarding exchange gains (EUR 38.0 million) and losses (EUR 15.5 million), approximately EUR 28.1 million
were unrealised gains (EUR 21.7 million in 2023) and approximately EUR 5.2 million were unrealised losses
(EUR 6.2 million in 2023).
Consolidated Financial Statements 2024 Cementir Holding NV | 401
28) Income taxes
(Euro ‘000) 2024 2023 Current taxes 58,917 78,910 Deferred taxes 11,520 (3,692) Income taxes 70,437 75,218
The following table shows the difference between the theoretical and effective tax expense:
(Euro ‘000) 2024 2023 Theoretical tax expense 92,820 88,178 Corporate Income Tax (IRES) according to Italian tax rate 24% 24% Taxable permanent differences 3,611 6,105 Deductible permanent differences (25,466) (24,046) Tax consolidation scheme 197 167 Other changes (854)4,800Effective IRAP tax expense 128 18 Income taxes 70,437 75,218 Applicable tax rate for the year 25% 26%
29) Earnings per share
B
asic earnings per share are calculated by dividing profit attributable to the owners of the Parent by the monthly
weighted average number of ordinary shares outstanding in the year.
(Euro) 2024 2023 Profit attributable to the owners of the Parent (EUR ‘000) 201,640 201,364 Weighted average number of outstanding ordinary shares (’000) 155,520 155,520 Basic earnings per ordinary share 1.297 1.295 Diluted earnings per ordinary share 1.297 1.295 (Euro) 2024 2023 Profit attributable to the owners of the Parent (EUR ‘000) 201,640 201,364 Weighted average number of outstanding ordinary shares (’000) 155,520 155,520 Basic earnings per ordinary share from continuing operations 1.297 1.295 Diluted earnings per ordinary share from continuing operations 1.297 1.295
Diluted earnings per share equal the basic earnings per share as the only outstanding shares are the ordinary
shares of Cementir Holding NV.
Consolidated Financial Statements 2024 Cementir Holding NV | 402
30) Other comprehensive expense
The following table gives a breakdown of other comprehensive expense, including and excluding the related
tax effect:
(Euro ‘000) 2024 2023 Gross Tax Net Gross Tax Net amount effect amount amount effect amount Net actuarial gains (losses) on post-employment benefits (3,142) 642 (2,500) 1,294 (326) 968 Foreign currency translation differences - foreign (48,188) - (48,188) (162,157) - (162,157) operations Financial instruments (9,716) (17) (9,733) (3,381) 735 (2,646) Total other comprehensive income (expense) (61,046) 625 (60,421) (164,244) 409 (163,835)
31) IFRS 16 Leases
The following table shows the impact of the application of IFRS 16 for the Group at 31 December 2024 and
the related disclosures:
Total Land and Plant and Other Right-of-use buildings equipment (Euro ‘000) assets Gross amount at 1 January 2024 24,327 36,125 116,451 176,903 Hyperinflation adjustment in respect of Türkiye (86) 220 2,323 2,457 Increase 4,809 3,607 37,262 45,678 Decrease (2,598) (803) (12,343) (15,744) Change in consolidation scope - - - - Exchange differences (194) 970 53 829 Reclassifications (38) 288 (180) 70 Gross amount at 31 December 2024 26,220 40,407 143,566 210,193 Amortisation at 1 January 2024 11,782 17,037 66,687 95,506 Hyperinflation adjustment in respect of Türkiye (121) 185 1,688 1,752 Amortisation 3,789 5,313 28,231 37,333 Decrease (2,478) (829) (10,817) (14,124) Change in consolidation scope - - - - Exchange differences (125) 584 212 671 Reclassifications (4) - (134) (138) Amortisation at 31 December 2024 12,843 22,290 85,867 121,000 Net amount at 31 December 2024 13,377 18,117 57,699 89,193
Consolidated Financial Statements 2024 Cementir Holding NV | 403
Total Land and Plant and Other Right-of-use buildings equipment (Euro ‘000) assets Gross amount at 1 January 2023 23,182 27,193 102,336 152,711 Hyperinflation adjustment in respect of Türkiye 125 232 422 778 Increase 2,932 10,357 29,304 42,593 Decrease (817)(702)(13,087) (14,606) Change in consolidation scope (318) - (26) (344) Exchange differences (790)(955)(3,576) (5,321) Reclassifications 13 -1,0781,091 Gross amount at 31 December 2023 24,327 36,125 116,451 176,902 Amortisation at 1 January 2023 8,697 13,364 58,128 80,189 Hyperinflation adjustment in respect of Türkiye 114 165 376 655 Amortisation 3,789 4,752 21,962 30,503 Decrease (483)(698)(11,846) (13,027) Change in consolidation scope (11) - (16) (27) Exchange differences (336)(546)(1,920) (2,802) Reclassifications 12 - 3 15 Amortisation at 31 December 2023 11,782 17,037 66,687 95,506 Net amount at 31 December 2023 12,545 19,088 49,764 81,396
As of 31 December 2024, right-of-use assets reached EUR 89,193 thousand (EUR 81,396 thousand as of 31
December 2023) and the “Other” category equal to EUR 57.7 million (EUR 49.8 million as of 31 December
2023) mainly included lease contracts for vehicles and means of transport for EUR 56.0 million (EUR 48.0 as
of 31 December 2023).
The Group’s exposure, broken down by expiry of the lease liabilities, is as follows:
(Euro ‘000) 31.12.2024 31.12.2023 Within three months 8,167 6,540 Between three months and one year 22,507 17,830 Between one and two years 20,079 13,840 Between two and five years 31,516 15,443 After five years 6,898 5,202 Total undiscounted lease liabilities at December 31 89,167 58,855
Consolidated Financial Statements 2024 Cementir Holding NV | 404
Current and non-current lease liabilities are shown below:
(Euro ‘000) 31.12.2024 31.12.2023 Non-current lease liabilities 54,637 54,937 Non-current lease liabilities - related parties (note 34) 1,596 Non-current lease liabilities 56,233 54,937 Current lease liabilities 33,258 26,242 Current lease liabilities - related parties (note 34) 1,761 1,536 Current lease liabilities 35,019 27,778 Total lease liabilities 91,252 82,715
Amounts recognised in the consolidated income statement
(Euro ‘000) 2024 2023 Depreciation (note 26) 38,929 33,328 Interest expense on lease liabilities 4,863 2,625 Short-term lease costs 3,259 3,916 Costs of leases of low-value assets 232 119 Amounts recognised in the cash flow statement (Euro ‘000) 2024 2023 Total cash outflow for leases 36,587 32,738
32) Financial risks
Credit risk
The Group’s maximum exposure to credit risk at 31 December 2024 equals the carrying amount of loans and
receivables recognised in the statement of financial position.
Management of the credit risks is based on internal credit limits, which are based on the customer's and the
counterparties' creditworthiness, based on both internal and external credit ratings as well as the Group’s
experience with the counterparty. If no satisfactory guarantee is obtained when credit rating the
customer/counterparty, payment in advance or separate guarantee for the sale, e.g. a bank guarantee, will be
required.
Given the sector’s collection times and the Group’s procedures for assessing customers’ creditworthiness, the
percentage of disputed receivables is low. If an individual credit position shows irregular payment trends, the
Group blocks further supplies and takes steps to recover the outstanding amount.
Due to the market situation, the Group has in recent years increased the resources used on follow-up on
customers, which contributes to early warnings of possible risks. Historically the Group has had relatively small
losses due to customers’ or counterparties’ inability to pay.
Consolidated Financial Statements 2024 Cementir Holding NV | 405
Recoverability is assessed considering any collateral pledged that legally can be attached and advice from
legal advisors who oversee collection procedures. The Group impairs all receivables for which a loss is
probable at the reporting date, based on whether the entire amount or a part thereof will not be recovered.
The credit risk limit of financial assets corresponds to the values recognised on the balance sheet.
No individual customer or co-operator poses any material risk to the Group.
With respect to bank deposits and derivatives, the Group has always worked with leading counterparties, thus
limiting its credit risk in this sense.
Notes 8 and 11 provide information on trade and other receivables.
At 31 December 2024 the break down by Region of Net trade receivables, as follows:
(Eur ‘000) 31.12.2024 31.12.2023 Nordic & Baltic 28,050 25,758 Belgium 44,995 51,997 North America 18,718 19,413 Türkiye 73,707 51,041 Egypt 1,591 1,421 Asia Pacific 8,509 6,903 Italy 4,600 4,992 Total 180,170 161,525
In Nordic and Baltic Region, receivables are attributable to Danish customers and export customers
characterised as medium-sized and major customers. The Group is familiar with the Danish customers, who
have not been granted long credit lines. Experience shows that export customers pose a low credit risk.
Regarding ready-mixed concrete and aggregates business, the Group's customers primarily consist of
contractors, builders and other customers posing a higher credit risk.
In North America, Asia Pacific and Egypt, activities are attributable to minor local customers and medium-sized
to major customers on a global scale. Credits are granted in accordance with usual, local trading terms. Credit
rating is applied to some types of customers, but experience shows that customers in Overseas pose a low
credit risk.
In Türkiye, there are both dealers and end users (contractors and other customers) within both the ready-
mixed concrete, cement and waste business. All customers are generally required to provide guarantees for
deliveries unless the management has assessed that there are no significant risks associated with selling to
that customer. Received collaterals amount to EUR 62.4 million as of 31 December 2024 (EUR 35.1 million at
31 December 2023).
Liquidity risk
The Group has credit facilities which cover any unforeseen requirements.
Note 17 Financial Liabilities provides a breakdown of financial liabilities by due date.
Consolidated Financial Statements 2024 Cementir Holding NV | 406
Market risk
Information necessary to assess the nature and scope of financial risks at the reporting date is provided in this
section.
Currency risk
The Group is exposed to the risk of fluctuations in exchange rates, which may affect its earnings performance
and equity.
With respect to the main effects of consolidating foreign companies, if the exchange rates for the Turkish lira
(TRY), Norwegian krone (NOK), Swedish krona (SEK), US dollar (USD), Chinese renminbi yuan (CNY),
Malaysian ringgit (MYR) and Egyptian pound (EGP) were an average 10% below the effective exchange rate,
the translation of equity at 31 December 2024 would have generated a decrease of EUR 85 million equal to
about 5.2% on consolidated equity (reduction of EUR 74 million equal to about 4.5% as at 31 December 2023).
The currency with the greatest impact is the Turkish lira (TRY), EUR 41 million. Additional currency risks from
the consolidation of the other foreign companies are to be considered insignificant.
The Group is mainly exposed to currency risk in relation to EBIT from sales and purchases in USD, PLN, SEK,
NOK and CNY. A hypothetical 10% decrease in all these exchange rates (excluding the DKK) would have
generated a reduction in EBITDA EUR 2.7 million (USD equal to EUR 0.3 million, PLN equal to EUR 2 million,
SEK equal to EUR 0.4 million, NOK equal to EUR 2.1 million and CNY equal to EUR -2.7 million) (2023 EUR
2.8 million of which: USD amounted to EUR -2.5 million, PLN amounted to EUR 2.3 million, SEK amounted to
EUR 0.1 million, NOK amounted to EUR 2.8 million and CNY amounted to EUR 0.2 million).
The Group entered into a swap agreement (hedge accounting) with a termination date in 2030, October, where
both currency risk and interest risk have been hedged. Related to the interest risk the Group has agreed to
pay a fixed rate of 4.06% and the Group will receive EURIBOR - a spread of 0.04% each 30 April and 31
October until maturity. The effective part of the hedge is equal to all future cash flow payments and nominal
instalments.
The fair value liability is included in a separate line item in the balance sheet "Derivatives financial instruments”.
The ineffective part is recognised as financial income.
Change in Ineffective fair Fair part Maturity Notional value 2024 Strike value recognised amount recognised liability in income in hedge statement reserve EURm < 1 year 1-5 years > 5 years 1,00 EUR/ Swap USD/EUR 64.2 6.4 26.0 31.8 -12.2-1.60.8 1,235 USD
Consolidated Financial Statements 2024 Cementir Holding NV | 407
Change in Ineffective fair Fair part Maturity Notional value 2023 Strike value recognised amount recognised liability in income in hedge statement reserve EURm < 1 year 1-5 years > 5 years 1,00 EUR/ Swap USD/EUR 66.6 66.6 0.0 0.0 -5.1-1.9-1.51,235 USD
As of 31 December 2024, risks connected with main receivables and payables in foreign currency related to
those in TRY, DKK, NOK, SEK, USD and GBP; assuming an average drop of 10% in all the exchange rates, the
potential effect of the fluctuation, excluding the DKK, would be negative for approximately EUR 1 million (31
December 2023: negative for approximately EUR 0.8 million). Similarly, a hypothetical increase in exchange
rates would have an identical positive effect.
Interest rate risk
The Group is exposed to the risk of fluctuations in interest rates. The consolidated net financial position at 31
December 2024 was positive for EUR 290.4 million (31 December 2023 was positive for EUR 217.6 million
Euro); outstanding financing facilities are settled at floating rates as are liquidity uses.
With regard to the variable rate of loans and cash and cash equivalents, an annual increase in interest rates,
on all currencies in which the debt is contracted,equal to 1%, on all currencies in which the debt is contracted,
equal to 1%, other variables being equal, would have a positive impact on pre-tax income of EUR 2.5 million
(31 December 2023 of EUR 1.6 million) and on equity of EUR 2 million (31 December 2023 of EUR 1.3
million). A decrease in interest rates of the same level would have had no impact.
Raw materials price risk
The Group uses a range of raw materials for production purposes, which expose it to price risk, especially for
fuel and energy. The Group enters into contracts with defined price conditions for certain raw materials. The
market value of swap contracts open at 31 December is as follows: (EUR million) 2024 2023 Market value - swap contract (0.2) (1.4)
33) Fair value hierarchy
IFRS 13 requires that assets and liabilities carried at fair value be classified using a hierarchy which reflects
the sources of the inputs used to measure their fair value. The hierarchy consists of the following levels:
- Level 1: measurement of fair value using quoted prices on active markets for identical assets or liabilities.
- Level 2: measurement of fair value using inputs other than the quoted prices included within Level 1 which
are directly observable (such as prices) or indirectly observable (i.e., derived from prices) on the market.
- Level 3: measurement of fair value using inputs for assets or liabilities that are not based on observable
market data (unobservable inputs).
Consolidated Financial Statements 2024 Cementir Holding NV | 408
The fair value of assets and liabilities is classified as follows:
31 December 2024 Note Level 1 Level 2 Level 3 Total (Eur ‘000) Investment property 4 -100,14016,675 116,815 Current financial assets (derivative instruments) 9 -00 0 Total assets -100,14016,675 116,815 Non current financial liabilities (derivative instruments) 17 -(12,243)-(12,243)Current financial liabilities (derivative instruments) 17 -(2,298)-(2,298)Total liabilities -(14,541)-(14,541)31 December 2023 Note Level 1 Level 2 Level 3 Total (Eur ‘000) Investment property 4 -66,76020,825 87,585 Current financial assets (derivative instruments) 9 -5,5390 5,539 Total assets -72,29920,825 93,124 Non current financial liabilities (derivative instruments) 17 - - Current financial liabilities (derivative instruments) 17 -(10,459)-(10,459)Total liabilities -(10,459)-(10,459)
No transfers among the levels took place during 2024 and no changes in level 3 were made.
Investment property classified in Level 3 of the fair value hierarchy refers to assets held by Italian companies.
For this type of asset, the fair value was determined using the following methodologies commonly accepted in
the valuation practice:
- Synthetic - comparative method, on the basis of which the fair value of the asset is determined by
referring to the unit market value (€/m2) multiplied by the surface of the asset;
- Direct capitalisation method, according to which the fair value of the asset is determined by dividing
the annual income by a capitalisation rate.
33.1) Financial instruments - Fair value and risk management
The following table shows the carrying amounts and fair values of financial assets and financial liabilities,
including their levels in the fair value hierarchy. It does not include fair value information for financial assets
and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair
value.
Consolidated Financial Statements 2024 Cementir Holding NV | 409
31 December 2024 Fair Carrying amount value (Eur ‘000) Fair value – Financial Other Note hedging assets/ financial Level 2 instruments liabilities liabilities Commodity futures 9 0 0 0 0 Interest rate swap 9 0 0 0 0 Forwards 9 0 0 0 0 Cross Currency Swap 9 0 0 0 0 Financial assets measured at fair value 0 - - 0 Trade and other receivables 8-11208,171 Cash and cash equivalents 12 485,603 Financial assets not measured at fair value -693,774- - Interest rate swap 17 - - Cross Currency Swap 17 12,243 12,243 Forwards 17 2,161 2,161 Commodity swap 17 138 138 Financial liabilities measured at fair value 14,542 -- 14,542Bank loans and borrowing 17 90,951 Bank overdrafts 17 - Current loan liabilities 17 16,048 Other loan liabilities 17 11 Financial liabilities not measured at fair value -106,99911 -
Consolidated Financial Statements 2024 Cementir Holding NV | 410
Fair 31 December 2023 Carrying amount value (Eur ‘000) Fair value – Financial Other Note hedging assets/ financial Level 2 instruments liabilities liabilities Commodity futures 9 1,254 1,254 Interest rate swap 9 315 315 Forwards 9 457 457 Cross Currency Swap 9 3,513 3,513 Financial assets measured at fair value 5,539 - - 5,539 Trade and other receivables 8-11185,232 Cash and cash equivalents 12 412,391 Financial assets not measured at fair value -597,623- - Interest rate swap 17 - - Cross Currency Swap 17 8,616 8,616 Forwards 17 251 251 Commodity swap 17 1,593 1,593 Financial liabilities measured at fair value 10,460 - - 10,460 Bank loans and borrowing 17 106,147 Bank overdrafts 17 2 Current loan liabilities 17 40,638 Other loan liabilities 17 184 Financial liabilities not measured at fair value -146,787184 -
Consolidated Financial Statements 2024 Cementir Holding NV | 411
34) Related party transactions
Transactions performed by group companies with related parties are part of normal business operations and
take place at arm’s-length conditions. No atypical or unusual transactions took place. The following tables
show the value of related party transactions:
31 December 2024 Ultimate Associates Companies Other Total Total % of Parent under common related related financial item control parties parties statements (Eur ‘000) Statement of financial position Non-current financial assets - - 404 - 404 529 76.4% Current financial assets - - 446 - 446 17,635 2.5% Trade receivables 130 - 10 - 140 181,786 0.1% Trade payables 225 - 45 - 270 362,108 0.1% Other non-current liabilities - - - - - 237 0.0% Other current liabilities - - - - - 71,637 0.0% Non-current financial liabilities - - 1,596 - 1,596 159,427 1.0% Current financial liabilities - - 1,768 - 1,768 53,376 3.3% Income statement Revenue - - 71 - 71 1,686,943 0.0% Other operating revenue - - 118 - 118 26,528 0.4% Other operating costs 450 - 314 - 764 382,913 0.2% Financial income - - 14 - 14 27,617 0.1% Financial expense - - 7 - 7 22,460 0.0% 31 December 2023 Ultimate Associates Companies Other Total Total % of Parent under common related related financial item control parties parties statements (Eur ‘000) Statement of financial position Non-current financial assets - - - - - 125 0.0% Current financial assets - - 450 - 450 45,334 1.0% Trade receivables 30 - 41 - 71 164,931 0.0% Trade payables 225 - 62 - 287 320,054 0.1% Other non-current liabilities - - - - - 247 0.0% Other current liabilities - - - - - 74,825 0.0% Non-current financial liabilities - - - - - 161,083 0.0% Current financial liabilities - - 1,536 - 1,536 79,032 1.9% Income statement Revenue - - 476 - 476 1,694,247 0.0% Other operating revenue - - 137 - 137 30,544 0.4% Other operating costs 450 - 302 - 752 384,179 0.2% Financial income - - 34 - 34 17,430 0.2% Financial expense - - - - - 17,473 0.0%
Consolidated Financial Statements 2024 Cementir Holding NV | 412
The main related-party transactions are summarised below.
Business transactions with associates concern the sale of products and semi-finished products (cement and
clinkers) at arm’s-length conditions. Revenue and costs connected with business transactions with the ultimate
Parent and companies under common control include various services, such as leases.
The Group did not grant loans to directors or key management personnel during the reporting period and did not have
loan assets due from them at 31 December 2024.
As of 31 December 2024, fees due to directors and key management personnel stood at EUR 14,601 thousand.
Compensation paid to directors in financial year 2024 amounted to EUR 7,806 thousand, as shown in the following
table:
(Eur ‘000) 2024 2023 Fixed Remueration 1,957 1,972 Compensation for participation in committees 149 146 Variable Compensation 5,422 4,367 Non monetary benefits 18 19 Other fees 260 260 Total 7,806 6,764
Compensation paid to key management personnel, amounted to EUR 6,795 thousand (EUR 6,279 thousand
in 2023) and included EUR 4,358 thousand for fixed remuneration (EUR 3,999 thousand in 2023) and EUR
1,948 thousand for variable remuneration (EUR 1,787 thousand in 2023). The amount of EUR 488 thousand
related to non-monetary benefits (EUR 493 thousand in 2023). The variable compensation has not been paid
as of 31 December 2024.
Further information on remuneration has been included in the Remuneration Report.
35) Business acquisitions and disposals
The following is a brief description of the acquisition realised during the year 2024, which expanded the Group's
scope of consolidation.
Acquisition of the assets of NB Beton v/Niels Brauner
In 2024, Unicon Denmark A/S entered into a contract for the acquisition of a business unit, relating to RMC's
production plant in Denmark called Skovby NB. The contract was completed on 12 April 2024. The consideration
paid for the acquisition amounted to EUR 15.3 million (DKK 114 million). The consideration was paid through
cash.
For the period between the date of acquisition and 31 December 2024, in light of the fact that the company is
a small business, no significant impact on the group's results has been recognised.
As required by IFRS 3, the assets acquired and liabilities assumed were measured for the determination of fair
value, the value of which was included in the value of the equity investment. Since the “Purchase Price
Allocation” exercise, carried out with the support of an external consultant, no assets and/or liabilities subject
to fair value adjustment have been identified and therefore the spread between the price paid and net assets
acquired (equal to EUR 1.7 million) has been fully allocated to Goodwill; this value was therefore accounted
for as an increase in the investment value.
Consolidated Financial Statements 2024 Cementir Holding NV | 413
Acquisition of 49% of NB Beton ApS
In 2024 Unicon A/S signed the contract for the acquisition of a minority stake, equal to 49%, in NB Beton, a
company that owns a concrete quarry in Denmark. The above-mentioned contract was finalised on 12 April 2024.
The consideration paid for the acquisition amounted to EUR 2.7 million (DKK 20 million). The consideration was
paid through cash.
For the period between the date of acquisition and 31 December 2024, in light of the fact that the company is
a small business, no significant impact on the group's results has been recognised.
During the year, with the support of an external consultant, the Company completed the “Purchase Price
Allocation” process. The assets acquired and liabilities assumed were measured for their recognition at fair
value, determined as shown in the table below:
Carrying amount at Purchase price Fair Value at the (EUR'000) the date of allocation at date date of acquisition acquisition of acquisition Intangible assets with a finite useful life - 2,232 2,232 Property, plant and equipment 4,553 - 4,533 Inventories 79 - 79 Current tax assets - - - Other current assets - - - Other current liabilities (382) - (382) Non-current provisions - - - Income taxes tax liabilities - (491) (491) Identifiable net assets acquired (A) 4,250 1,741 5,971 Acquisition fee (B) 15,281 Goodwill (B) - (A) 9,291
The net cash flow deriving from the acquisition is shown in the table below:
(EUR'000) Consideration paid as at 31 December 2024 (15,281) Cash on the date of acquisition - Net cash flow as at 31 December 2024 deriving from the acquisition (15,281)
Acquisition of Casa Bayan Sdn Bhd
On 13 October 2023, Aalborg Portland Holding A/S entered into a contract to acquire the entire share capital of
Casa Bayan Sdn Bhd (“Casa Bayan”), a company that owns a quarry in Malaysia. The above-mentioned contract
was finalised on 16 October 2023. The consideration paid for the acquisition amounted to EUR 5.9 million (MYR
30 million). The consideration was paid through cash.
During 2024, with the support of an external consultant, the Company completed the “Purchase Price
Allocation” process.
The assets acquired and liabilities assumed were measured for their recognition at fair value and, in addition
to the value of the latter, a higher value of the quarry of approximately EUR 7.5 million was recognised,
determined as shown in the table below:
Consolidated Financial Statements 2024 Cementir Holding NV | 414
Carrying amount at Purchase price Fair Value at the (EUR'000) the date of allocation at date date of acquisition acquisition of acquisition Intangible assets with a finite useful life 15 - 15 Property, plant and equipment 165 7,356 7,521 of which Right of Use 143 (143) - Current tax assets 22 - 22 Other current assets 18 - 18 Cash and cash equivalents 0 - 0 Non-current provisions (22) - (22) Income taxes tax liabilities (1) (1,765) (1,766) Identifiable net assets acquired (A) 197 5,591 5,788 Acquisition fee (B) 6,028 Goodwill (B) - (A) 240
The net cash flow from the acquisition took effect in the financial statements as at 31 December 2023 without
any changes during the year.
36) Off balance sheet assets and liabilities
Regarding charges and securities and contract commitments on property, plant and equipment refer to note 3.
Regarding pledge as collateral for banks loans refer to note 4.
37) Independent auditors’ fees
Fees paid in 2024 by the Parent Cementir Holding N.V. and its subsidiaries to the independent auditors and
their network totalled approximately 1,389 thousand (2023: EUR 1,386 thousand), including 1,035 thousand
for audit services (2023: EUR 1,307 thousand) and 354 thousand for audit related services (2023: EUR 79
thousand).
The following fees were charged by PWC Accountants N.V. to the parent and its subsidiaries, as referred to
in Section 2: 382a(1) and (2) of the Dutch Civil Code.
PWC 2024 Other PWC Non- PWC Accountants Total network network (Eur ‘000) NV Audit of the financial statement 145 890 - 1,035 Audit related services 118 236 - 354 Tax-related advisory services - - - 0 Other non-audit services - - - 0 Total fees 263 1,126 0 1,389
Audit related services are related to: limited assurance on sustainability statement for EUR 325 thousand,
limited review of the interim financial information as of 30 June 2024 prepared for the Caltagirone Group Interim
consolidated financial statements for EUR 19 thousand, and limited review of the Aalborg Portland Holding
Interim financial information as of 30 June 2024 in view of dividend distribution for EUR 10 thousand.
Consolidated Financial Statements 2024 Cementir Holding NV | 415
38) Events after the reporting period
On 28 January 2025, the dispute brought on 29 January 2017 by Capital Market Board (CMB) was finally settled
with the payment by the Holding in favour of Cimentas AS of the equivalent of EUR 6.9 milion.
On 11 February 2025, the Parent Company’s Board of Directors approved the update of the 2025-2027 Business
Plan, to whose press release please refer (www.cementirholding.com in the Investors, Press Releases section).
In February 2025, Cementir Holding was included for the first time in CDP's prestigious “A List”, a recognition
of strategies and actions implemented to mitigate climate change and promote corporate transparency.
Cementir also maintained its leadership in water management by achieving a score of A- in CDP Water, for
the third consecutive year.
No other significant events occurred after the year ended.
39) Other information
The Company is responsible for leading the defence in proceedings, of which it is not a party in accordance
with the terms and conditions set out in a settlement agreement with Italcementi S.p.A., relating to the sale of
the shares of Cementir Italia S.p.A. (today Cemitaly S.p.A.), Cementir Sacci S.p.A. (today Italsacci S.p.A.) and
Betontir S.p.A., finalised on 2 January 2018.
Other legal disputes
The dispute brought on 29 January 2017 by Capital Market Board (CMB), the regulatory and supervisory body
of the Turkish stock exchange, on behalf of Cimentas AS and against Cementir Holding before the Izmir Court,
was settled definitively with the defendant’s payment to Cimentas AS of the equivalent of EUR 6.9 million on
28 January 2025. Since this is a transaction between two Group companies, it has a neutral effect on the
consolidated accounts.
Consolidated Financial Statements 2024 Cementir Holding NV | 416
BLANK PAGE
417
ANNEX
Financial Report 2024 Cementir Holding NV | 418
Annex 1
List of equity investments at 31 December 2024
Investment held by
Type of Registered Share capital Currency % holding %Company name Method office Group companies Direct Indirect Amsterdam Cementir Holding NV159,120,000 EUR Parent Line-by-line (NL) West Palm Aalborg Cement Company Inc. 1,000 USD 100 Aalborg Portland US Inc Line-by-line Beach (USA) 75 Cementir Espana SL Aalborg Portland Holding A/S Aalborg (DK) 300,000,000 DKK Line-by-line 25 Globocem SL Aalborg Portland Aalborg Portland A/S Aalborg (DK) 100,000,000 DKK 100 Line-by-line Holding A/S Aalborg Portland Belgium SA Gand (B) 500,000 EUR 100 Aalborg Portland A/S Line-by-line Aalborg Portland Aalborg Portland Digital Srl Rome (I) 500,000 EUR 100 Line-by-line Holding A/S Aalborg Portland Aalborg Portland España SL Madrid (E) 3,004 EUR 100 Line-by-line Holding A/S Aalborg Portland France SAS Rochefort (FR) 10,010 EUR 100 Aalborg Portland A/S Line-by-line Aalborg Portland Islandì EHF Kopavogur (IS) 303,000,000 ISK 100 Aalborg Portland A/S Line-by-line Aalborg Portland Malaysia Sdn Aalborg Portland Perak (MAL) 95,400,000 MYR 70 Line-by-line Bhd Holding A/S Aalborg Portland Polska Spzoo Warszawa (PL) 100,000 PLN 100 Aalborg Portland A/S Line-by-line West Palm Aalborg Portland Aalborg Portland US Inc 1,000 USD 100 Line-by-line Beach (USA) Holding A/S Aalborg Portland (Anqing) Co Aalborg Portland Anqing (CN) 265,200,000 CNY 100 Line-by-line Ltd Holding A/S Aalborg Portland (Australia) Pty Aalborg Portland Brisbane (AUS) 1,000 AUD 100 Line-by-line Ltd Malaysia Sdn Bhd Aalborg Portland Aalborg Resources Sdn Bhd Perak (MAL) 2,543,972 MYR 100 Line-by-line Malaysia Sdn Bhd AB Sydsten Malmö (S) 15,000,000 SEK 50 Unicon A/S Line-by-line AGAB Syd Aktiebolag Svedala (S) 500,000 SEK 40 AB Sydsten Equity Alfacem Srl Rome (I) 1,010,000 EUR 99.99 Cementir Holding NV Line-by-line Basi 15 Srl Rome (I) 400,000 EUR 100 Cementir Holding NV Line-by-line Aalborg Portland Holding Casa Bayan Sdn Bhd Perak (MAL) 250,000 MYR 100 Line-by-line A/S Cementir Espana SL Madrid (E) 3,007 EUR 100 Cementir Holding NV Line-by-line Cimbeton AS Izmir (TR) 1,770,000 TRY 50.28 Cimentas AS Line-by-line 0.06 Kars Cimento AS Cimentas AS Izmir (TR) 87,112,463 TRY 96.69 Aalborg Portland España SL CimLine-by-0.12 beton AS line 0.48 Kars Cimento AS Compagnie des Ciments Belges Gaurain (B) 179,344,485 EUR 100 Aalborg Portland Holding Line-by-line SA A/S Compagnie des Ciments Belges Villenueve 34,363,400 EUR 100 Compagnie des Ciments Line-by-line France SAS (CCBF) d’Ascq (FR) Belges SA
Financial Report 2024 Cementir Holding NV | 419
Annex 1 (cont’d)
Investment held by
Type of Share Currency % holding Company name Registered office % Method capital Group companies Direct Indirect Destek AS Izmir (TR) 50,000 TRY 99.99 Cimentas AS Line-by-line 0.01 Cimentas Foundation ECOL Unicon Spzoo Gdansk (PL) 1,000,000 PLN 49 Unicon A/S Equity West Palm Beach Aalborg Cement Gaetano Cacciatore LLC - USD 100 Line-by-line (USA) Company Inc Globocem SL Madrid (E) 3,007 EUR 100 Alfacem Srl Line-by-line Kars Cimento AS Kars (TR) 513,162,416 TRY 41.55 Cimentas AS Line-by-line 58.45 Alfacem Srl Kudsk & Dahl A/S Vojens (DK) 10,000,000 DKK 100 Unicon A/S Line-by-line Lehigh White Cement Company West Palm Beach - USD 24.52 Aalborg Cement Company LLC (USA) Inc Line-by-line 38.73 White Cement Company LLC NB Beton ApS Galten (DK) 400,000 DKK 49 Unicon A/S Equity Compagnie des Ciments Recybel SA Liegi-Flemalle (B) 99,200 EUR 25.5 Equity Belges SA Recydia AS Izmir (TR) 759,544,061 TRY 23.72 Cimentas AS Line-by-line 76.28 Aalborg Portland Holding AS AalSinai White Portland Cement borg Portland Cairo (ET) 350,000,000 EGP 96.51 Line-by-line Co. SAE Holding A/S Skane Grus AB Ljungbyhed (S) 1,000,000 SEK 60 AB Sydsten Line-by-line Société des Carrières du Compagnie des Ciments Gaurain (B) 12,297,053 EUR 65 Proportionate Tournaisis SA Belges SA Aalborg Portland Spartan Hive SpA Rome (I) 300,000 EUR 100 Line-by-line Holding A/S Sureko AS Izmir (TR) 43,443,679 TRY 100 Recydia AS Line-by-line Svim 15 Srl Rome (I) 400,000 EUR 100 Cementir Holding NV Line-by-line Aalborg Portland Unicon A/S Copenaghen (DK) 150,000,000 DKK 100 Line-by-line Holding A/S Unicon AS Oslo (N) 13,289,100 NOK 100 Unicon A/S Line-by-line Branchburg Vianini Pipe Inc 4,483,396 USD 100 Aalborg Portland US Inc Line-by-line N.J. (USA) West Palm Beach Aalborg Cement White Cement Company LLC - USD 100 Line-by-line (USA) Company Inc.
Financial Report 2024 Cementir Holding NV | 420
Rome, 11 March 2025
Chairman of the Board of Directors
/s/ Francesco Caltagirone Jr.
Company Financial Statements 2024 Cementir Holding NV | 421
2024 COMPANY FINANCIAL STATEMENTS
Company Financial Statements 2024 Cementir Holding NV | 422
COMPANY FINANCIAL STATEMENTS
Statement of Financial Position
(Before profit appropriation)
(EUR'000)
Note
31 December
2024
31 December
2023
ASSETS
Intangible assets
1
-
28
Property, plant and equipment
2
1,831
1,102
Investment property
3
15,500
17,650
Investments in subsidiaries
4
299,451
299,201
Non-current financial assets
5
872
24
Deferred tax assets
17
20,986
19,338
Other non-current assets
-
-
TOTAL NON-CURRENT ASSETS
338,640
337,343
Trade receivables
6
501
172
- Trade receivables - third parties
6
12
7
- Trade receivables - related parties
31
489
165
Current financial assets
7
39,853
38,073
- Current financial assets - third parties
7
11
1,360
- Current financial assets - related parties
31
39,842
36,713
Current tax assets
8
2,130
1,403
Other current assets
9
15,450
13,027
- Other current assets - third parties
9
823
1,372
- Other current assets - related parties
31
14,627
11,655
Cash and cash equivalents
10
538
1,442
TOTAL CURRENT ASSETS
58,472
54,117
ASSETS HELD FOR SALE
-
-
TOTAL ASSETS
397,112
391,460
EQUITY AND LIABILITIES
Share capital
11
159,120
159,120
Share premium reserve
12
27,701
27,701
Legal reserve
13
46
46
Other reserves
13
38,551
30,025
Profit (loss) for the year
45,779
52,116
TOTAL EQUITY
271,197
269,008
Employee benefits
14
2,584
2,604
Non-current provisions
19
370
370
Non-current financial liabilities
15
1,703
252
Income taxes tax liabilities
17
-
-
TOTAL NON-CURRENT LIABILITIES
4,657
3,226
Current provisions
0
0
Trade payables
16
1,929
1,689
- Trade payables - third parties
1,704
1,464
- Trade payables - related parties
31
225
225
Current financial liabilities
15
104,011
110,574
- Current financial liabilities - third parties
15
111
27,064
- Current financial liabilities - related parties
31
103,900
83,510
Current tax liabilities
17
0
171
Other current liabilities
18
15,318
6,792
- Other current liabilities - third parties
18
7,977
6,523
- Other current liabilities - related parties
31
7,341
269
TOTAL CURRENT LIABILITIES
121,258
119,226
LIABILITIES ASSOCIATED WITH ASSETS HELD FOR SALE
-
-
TOTAL LIABILITIES
125,915
122,452
TOTAL EQUITY AND LIABILITIES
397,112
391,460
Company Financial Statements 2024 Cementir Holding NV | 423
Income statement
(EUR'000)
Note
2024
2023
REVENUE
20
8,765
8,990
- Revenue - related parties
31
8,765
8,990
Other operating revenue
21
1
78
- Other operating revenue - third parties
1
78
TOTAL OPERATING REVENUE
8,766
9,068
Personnel costs
22
(7,820)
(7,918)
Other operating costs
23
(22,654)
(12,121)
- Other operating costs - third parties
23
(14,948)
(11,415)
- Other operating costs - related parties
31
(7,706)
(706)
TOTAL OPERATING COSTS
(30,474)
(20,039)
EBITDA
(21,708)
(10,971)
Amortisation, depreciation and impairment losses
24
(823)
(858)
EBIT
(22,531)
(11,829)
Financial income
25
73,130
74,566
- Financial income - third parties
25
2,706
6,077
- Financial income - related parties
31
70,424
68,489
Financial expense
25
(9,564)
(10,290)
- Financial expense - third parties
25
(3,742)
(6,616)
- Financial expense - related parties
31
(5,822)
(3,674)
NET FINANCIAL INCOME (EXPENSE)
63,566
64,276
PROFIT BEFORE TAXES
41,035
52,447
Income taxes
26
4,744
(331)
PROFIT FROM CONTINUING OPERATIONS
45,779
52,116
Company Financial Statements 2024 Cementir Holding NV | 424
Statement of comprehensive income
(EUR'000)
Note
2024
2023
PROFIT FOR THE YEAR
45,779
52,116
Other components of comprehensive income:
Items that will never be reclassified to profit or loss for the year
Net actuarial gains (losses) on post-employment benefits
27
1
(7)
Taxes recognised in equity
27
-
2
Total items that will never be reclassified to profit or loss
1
(5)
Items that may be reclassified to profit or loss for the year:
Profit (Losses) on derivatives
27
(64)
(2,569)
Taxes recognised in equity
27
19
760
Total items that may be reclassified to profit or loss
(45)
(1,809)
Total other comprehensive expense, net of tax
(44)
(1,814)
COMPREHENSIVE INCOME (EXPENSE) FOR THE YEAR
45,735
50,302
Company Financial Statements 2024 Cementir Holding NV | 425
Statement of changes in equity
Notes
11
12
13 13
(EUR'000)
Share capital
Share
premium
reserve
Italian legal
reserves
Other reserves
Retained
earnings
Profit for
the year
Total
equity
Equity at
1 January 2024
159,120
27,701
31,824
(4,988)
3,234
52,116
269,008
Allocation of 2023 profit (loss)
-
-
-
-
52,116
(52,116)
-
Distribution of 2023 dividends
-
-
-
-
(43,546)
-
(43,546)
Total transactions
with investors
-
-
-
-
8,570
(52,116)
(43,546)
Profit (loss) for the year
-
-
-
-
-
45,779
45,779
Net actuarial gains
-
-
-
1
-
-
1
Losses on derivatives
-
-
-
(46)
-
-
(46)
Total comprehensive income (expense)
-
-
-
(45)
-
45,779
45,734
Equity at
31 December 2024
159,120
27,701
31.824
(5,033)
11,804
45,779
271,196
Company Financial Statements 2024 Cementir Holding NV | 426
Note
11
12
13 13
(EUR'000)
Share capital
Share premium
reserve
Italian legal
reserves
Other
reserves
Retained
earnings
Profit (loss) for the
year
Total Equity
Equity
at 1 January 2023
159,120
27,701
31,824
(3,174)
-
37,449
252,920
Allocation of 2022 profit (loss)
-
-
-
-
37,449
(37,449)
-
Distribution of 2022 dividends
-
-
-
-
(34,215)
-
(34,215)
Total transactions
with investors
-
-
-
-
3,234
(37,449)
(34,215)
Profit (loss) for the year
-
-
-
-
-
52,116
52,116
Net actuarial losses
-
-
-
(5)
-
-
(5)
Losses on derivatives
-
-
-
(1,809)
-
-
(1,809)
Total comprehensive income (expense)
-
-
-
(1,815)
-
52,116
50,302
Equity
at 31 December 2023
159,120
27,701
31,824
(4,988)
3,234
52,116
269,008
Company Financial Statements 2024 Cementir Holding NV | 427
Statement of Cash Flows
(EUR'000)
Note
31 December
2024
31 December
2023
Profit for the year
45,779
52,115
Amortisation
24
823
858
Investment property FV adjustment
2,150
-
Loss allowance
6
-
-
Net financial income (expense)
25
(63,567)
(64,275)
- third parties
1,081
654
- related parties
31
(64,648)
(64,929)
Income taxes
26
(4,744)
331
Change in employee benefits
(18)
337
Change in provisions (current and non-current)
19
-
-
Operating cash flows before changes in working capital
(19,577)
(10,634)
Decrease in trade receivables - third parties (Increase)
(4)
4
Decrease in trade receivables - related parties
(324)
1,718
Increase (Decrease) in trade payables - third parties
240
19
Increase (Decrease) in trade payables - related parties
0
(246)
Change in other non-current and current assets and liabilities - third
parties
2,004
890
Change in other non-current and current assets and liabilities -
related parties
7,044
(36)
Change in current and deferred taxes
(747)
84
Operating cash flows
(11,364)
(8,201)
Dividends collected
67,839
66,606
Interest received
1,998
1,897
Interest paid
(6,047)
(5,653)
Other net income (expense) collected (paid) on derivatives
25
(2,605)
2,194
Income taxes paid
-
-
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES (A)
49,821
56,843
Acquisitions of equity investments
(250)
-
Change in non-current financial assets – third parties
-
14
Change in non-current financial assets – related parties
(848)
892
Change in current financial assets – third parties
3,512
(1,293)
Change in current financial assets – related parties
(2,532)
(12,275)
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES (B)
(118)
(12,662)
Change in non-current financial liabilities - third parties
-
(27,588)
Change in current financial liabilities - third parties
(26.854)
(24,375)
Change in current financial liabilities - related parties
19,793
42,804
Dividends distributed
(43,546)
(34,214)
Other changes in Equity
-
-
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES (C)
(50,607)
(43,373)
NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C)
(904)
808
Opening cash and cash equivalents
10
1,442
634
Closing cash and cash equivalents
10
538
1,442
Company Financial Statements 2024 Cementir Holding NV | 428
Reconciliation of the parent’s company equity at 31 December 2024 and 2023 and profit (loss) for the
year then ended with consolidated equity and profit (loss)
(EUR'000)
Profit (loss)
2024
Equity
31 December 2024
Cementir Holding NV (stand alone)
45,779
271,196
Effect of consolidating subsidiaries and associates
181,726
2,071,501
Difference in translation reserve
-
980,058
Hyperinflation in Türkiye
25,865
354,392
Total attributable to the owners of the parent
201,640
1,717,031
Total attributable to the non-controlling interests
12,815
139,353
Cementir Holding Group
214,455
1,856,384
(EUR'000)
Profit (loss)
2023
Equity
31 December 2023
Cementir Holding NV (stand alone)
52,116
269,008
Effect of consolidating subsidiaries and associates
190,509
1,872,150
Difference in translation reserve
-
(890,853)
Hyperinflation in Türkiye
(41,261)
252,759
Total attributable to the owners of the parent
201,364
1,503,064
Total attributable to the non-controlling interests
14,128
147,769
Cementir Holding Group
215,492
1,650,833
The main differences are caused by the valuation of the investments in subsidiaries at cost in the company
financial statements. Translation reserves are therefore not applicable in the company financial statements.
Company Financial Statements 2024 Cementir Holding NV | 429
NOTES TO THE COMPANY FINANCIAL STATEMENTS
General information
On 28 June 2019, the Extraordinary Shareholders’ Meeting approved the transformation of the company
Cementir Holding SpA from a joint-stock company under Italian law into a public limited liability company
(“Naamloze Vennootschap”) under Dutch law, in relation to the transfer of the registered office to Amsterdam,
Netherlands (36, Zuidplein, 1077 XV; Chamber of Commerce registration number 76026728). The transfer
and transformation process was completed on 5 October 2019.
On that date the Board of Directors resolved to establish an operational and secondary headquarters in Rome,
at 200 Corso Francia. The company's tax residence remained in Italy. As part of this transformation,
Management aligned the equity composition per the Italian law requirements with the Dutch Civil
Requirements.
The company remained listed on the STAR segment of the Milan Stock Exchange.
At 31 December 2024, shareholders holding shares exceeding 3% of share capital, as indicated in the book
of shareholders, from communications received pursuant to 5:28 of the Financial Supervision Act and other
information available, are:
1) Francesco Gaetano Caltagirone – 106,217,754 shares (66.753%). The shareholding is held as follows:
- Direct ownership of 1,327,560 shares (0.834%)
- Indirect ownership through the companies:
• Calt 2004 Srl – 49,168,424 shares (30.900%)
• Caltagirone SpA – 22,800,000 shares (14.329%)
• FGC SpA – 17,600,000 shares (11.061%)
• Azufin Spa – 10,720,000 shares (6.737%)
• Capitolium Srl – 2,600,000 shares (1.634%)
• SO.CO.GE.IM Spa – 1,500,000 shares (0.943%)
• Compagnia Gestioni Immobiliari Srl – 500,000 shares (0.314%)
• Vianini Lavori SpA – 1,770 shares (0.001%).
2) Francesco Caltagirone – 8,775,299 shares (5.515%). The above investment is held indirectly through the
company Chupas 2007 Srl for 8,775,299 shares (5.515%).
On 11 March 2025, the Company’s Board of Directors approved these company financial statements at 31
December 2024 and authorised their publication on 11 March 2025.
Company Financial Statements 2024 Cementir Holding NV | 430
Statement of compliance with the IFRS
These company financial statements at 31 December 2024, drawn up on a going concern basis for the Parent
and have been prepared in accordance with IFRS Accounting Standards as adopted by the European Union
(EU-IFRSs) and with Section 2: 362(9) of the Dutch Civil Code.
Certain parts of this Annual Report contain financial measures that are not measures of financial performance
or liquidity under EU-IFRS. These are commonly referred to as non-IFRS financial measures and include items
such as Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA), Earnings Before Income
Taxes (EBIT) and net financial debt. The Company calculates EBITDA as follows, total operating revenues
minus total operating costs excluding accruals.
Basis of presentation
The company financial statements at 31 December 2024 are presented in euros, the Company’s functional
currency. All amounts are expressed in thousands of euros, unless indicated otherwise. They consist of a
statement of financial position, an income statement, a statement of comprehensive income, a statement of
changes in equity, a statement of cash flows and these notes.
The company financial statements have been prepared on a going concern basis as the directors are reasonably
certain that the Company will continue to operate in the foreseeable future, based on their assessment of the
risks and uncertainties to which it is exposed.
The Company has opted to present these statements as follows:
- the statement of financial position presents current and non-current assets and liabilities separately;
- the income statement classifies costs by nature;
- the statement of comprehensive income presents the effect of gains and losses recognised directly in equity,
starting from the profit or loss for the year;
- the statement of cash flows is presented using the indirect method.
The accounting policies are described in Basis of presentation section of the consolidated financial statements
and are deemed incorporated and repeated herein by reference. Investments in subsidiaries are accounted for
at cost, net of impairment.
Company Financial Statements 2024 Cementir Holding NV | 431
Notes
1) Intangible assets
Intangible assets are fully amortised (EUR 28 thousand at 31 December 2023).
(EUR'000)
Other intangible
assets
Total
Gross amount at 1 January 2024
2,333
2,333
Increase
-
-
Reclassifications
-
-
Gross amount at 31 December 2024
2,333
2,333
Amortisation at 1 January 2024
2,305
2,305
Increase
28
28
Amortisation at 31 December 2024
2,333
2,333
Net amount at 31 December 2024
-
-
Gross amount at 1 January 2023
2,333
2,333
Increase
-
-
Reclassifications
-
-
Gross amount at 31 December 2023
2,333
2,333
Depreciation at 1 January 2023
2,278
2,278
Increase
27
27
Amortisation at 31 December 2023
2,305
2,305
Net amount at 31 December 2023
28
28
2) Property, plant and equipment
At 31 December 2024 the item totalled EUR 1,831 thousand (EUR 1,102 thousand at 31 December 2023). The
Other assets consists of furniture, electronic equipment and servers used by the company.
(EUR'000)
Other assets
Right-of-use
assets
Total
Gross amount at 1 January 2024
336
1,725
2,061
Increase
-
1,735
1,735
Decrease
-
(1,314)
(1,314)
Gross amount at 31 December 2024
336
2,146
2,482
Amortisation at 1 January 2024
247
712
959
Increase
37
758
795
Decrease
-
(1,230)
(1,230)
Reclassifications
-
127
127
Amortisation at 31 December 2024
284
367
651
Net amount at 31 December 2024
52
1,779
1,831
Company Financial Statements 2024 Cementir Holding NV | 432
(EUR'000)
Other assets
Right-of-use
assets
Total
Gross amount at 1 January 2023
336
1,858
2,194
Increase
-
319
319
Decrease
-
(452)
(452)
Gross amount at 31 December 2023
336
1,725
2,061
Depreciation at 1 January 2023
210
281
491
Increase
37
793
830
Decrease
-
(362)
(362)
Amortisation at 31 December 2023
247
712
959
Net amount at 31 December 2023
89
1,013
1,102
Property, plant and equipment includes EUR 1,779 thousand in right-of-use assets (EUR 1,013 thousand as at
31 December 2023). Note 28 “IFRS 16 Leases” gives a breakdown of Right-of-use assets categorised according
to their nature and its useful life.
The estimated useful life of the main items of plant and equipment is reported below:
Useful life of property, plant and
equipment
Various equipment
5 years
Office machines and equipment
5 years
3) Investment property
The item investment property, totalling EUR 15,500 thousand (EUR 17,650 thousand at 31 December 2023),
is recognised at fair value, as determined using appraisals prepared by an independent property assessor, of
the property in Torrespaccata (Rome), which decreased against the previous year by EUR 2,150 thousand
due to the decrease in market prices of commercial buildings in 2024. The value of the Investment property is
not pledged for any amount as collateral as the bank debt related to the property was repaid in December 2024.
4) Investments in subsidiaries
Totalling EUR 299,451 thousand (EUR 299,201 thousand at 31 December 2023), the item breaks down as
follows:
(EUR'000)
Currency
Registered
office
Investment
%
Carrying
amount at
31/12/2024
Investment
%
Carrying
amount at
31/12/2023
Cementir Espana SL
EUR
Madrid (ES)
100.00%
206,735
100.00%
206,735
Alfacem Srl
EUR
Rome (I)
99.99%
90,220
99.99%
90,220
Basi 15 Srl
EUR
Rome (I)
99.99%
1,646
99.99%
1,646
Svim 15 Srl
EUR
Rome (I)
99.99%
850
99.99%
600
Equity investments
299,451
299,201
The change compared to 2023 refers to the increase in the investment in Svim 15 Srl due to the capital
contribution, equal to EUR 250 thousand.
Company Financial Statements 2024 Cementir Holding NV | 433
All investments in subsidiaries are in unlisted companies. As of the date of preparation of these financial
statements, the Company has not identified any impairment indicators in the value of the investees and,
therefore, there are no significant issues regarding their recoverability.
The list of direct and indirect participations of the parent is shown, according to Art. 2:379(1) DCC, in the annex
to the Consolidated Financial Statements.
5) Non-current financial assets
The item amounts to EUR 872 thousand (EUR 24 thousand at 31 December 2023), the increase of EUR 848
thousand is mainly due to the receivables towards Spartan Hive SpA, Aalborg Portland Digital Srl and Piemme
relating to the subleasing agreement of the building in Corso di Francia 200.
6) Trade receivables
Trade receivables totalled EUR 501 thousand (EUR 172 thousand at 31 December 2023) and the break down
as follows:
(EUR'000)
31.12.2024
31.12.2023
Trade receivables from third parties
12
7
Loss allowance
-
-
Trade receivables - subsidiaries (note 31)
359
135
Trade receivables - other group companies (note 31)
130
30
Trade receivables
501
172
The carrying amount of trade receivables is representative of their fair value. The maturities of receivables
from third-party customers are as follows:
(EUR'000)
31.12.2024
31.12.2023
Not yet due
-
-
Overdue
12
7
Loss allowance
-
-
Total trade receivables from third parties
12
7
Trade receivables from subsidiaries mainly refer to fees related to the Trademark License Agreement for the
use of the trademark by subsidiaries, these receivables expired on 31 December 2024. The Company has
decided, in light of the recoverability assessments made, not to make any write-downs on these amounts,
considering them recoverable with certainty in the short term.
Note 31) Related party transactions provides more information about trade receivables from subsidiaries,
associates and other group companies.
Company Financial Statements 2024 Cementir Holding NV | 434
7) Current financial assets
Totalling EUR 39,853 thousand (EUR 38,073 thousand at 31 December 2023), the item breaks down as
follows:
• loans to the subsidiary Svim 15 Srl, revocable and interest bearing at a rate equal to Euribor 3 months +
1.0%, amounting to EUR 1,255 thousand;
• the interest-bearing loan to Aalborg Cement Company, amounting to EUR 11,255 thousand, maturing on
31 December 2025 and with a rate equal to SOFR 3 months + 1.5%;
• the interest-bearing loan to White Cement Company, amounting to EUR 25,349 thousand, maturing on
31 December 2025 and with a rate equal to SOFR 3 months + 1.5%;
• the loan to the subsidiary BASI 15 Srl, revocable and interest bearing at a rate equal to Euribor 3 months
+ 1.0%, for an amount of EUR 1,050 thousand;
• receivables arising from IFRS 16 on the sublease to Spartan Hive SpA, amounting to EUR 121 thousand,
to Aalborg Portland Digital Srl for EUR 368 thousand and to Piemme SpA for EUR 445 thousand.
The carrying amount of financial assets coincides with their fair value.
The change compared to the previous year, amounting to EUR 1,780 thousand, is mainly attributable to:
• the negative effect of the fair value of derivative products, due to their settlement, for EUR 773 thousand;
• the exchange rate effect, to the companies Aalborg Cement Company for EUR 848 thousand and White
Cement Company for EUR 1,909 thousand;
• The increase in receivables from IFRS 16 in the amount of EUR 22 thousand;
• The increase in the loan to Basi 15 Srl for EUR 350 thousand;
The item also includes EUR 11 thousand (EUR 587 thousand at 31 December 2023) of bank interest income
and has decreased due to the release of prepaid expenses relating to the financial debt of the “Facility” and
“RCF”, lines repaid in May 2024.
8) Current tax assets
Current tax assets, which amounted to EUR 2,130 thousand (EUR 1,402 thousand as of 31 December 2023),
mainly consisted of EUR 344 thousand of taxes paid abroad and requested for refund, EUR 417 thousand in
withholding taxes paid abroad, EUR 219 thousand in withholding taxes paid abroad for previous years, EUR
169 thousand in withholding taxes on active interest and EUR 982 thousand for the receivable related to the
request for refund due to lower royalties related to the so-called Mutual Agreement Procedure (MAP). The
procedure, finalised during 2021, was initiated in November 2014 following an audit by the Danish Tax
Authorities concerning the disavowal of royalties paid by Aalborg Portland Holding to Cementir Holding in the
period 2008 – 2012.
9) Other current assets
The item totalled EUR 15,450 thousand (EUR 13,027 thousand at 31 December 2023) and breaks down as
follows:
(EUR'000)
31.12.2024
31.12.2023
Subsidiaries (IRES tax consolidation scheme) (note 31)
14,627
11,655
Prepayments
71
85
VAT assets
745
1,280
Other receivables
7
7
Other current assets
15,450
8,813
Company Financial Statements 2024 Cementir Holding NV | 435
10) Cash and cash equivalents
This item, totalling EUR 538 thousand (EUR 1,442 thousand at 31 December 2023) consists of cash and cash
equivalents held by the Company and breaks down as follows:
(EUR'000)
31.12.2024
31.12.2023
Bank deposits
532
1,439
Cash-in-hand and cash equivalents
6
3
Cash and cash equivalents
538
1,442
For the change, equal to EUR 904 thousand, please refer to the Company's statement of cash flows.
11) Share capital
The Company’s share capital consists of 159,120,000 ordinary shares with a par value of EUR 1 each. It is
fully paid up and has not changed with respect to the previous year end.
12) Share premium reserve
The share premium reserve as of 31 December 2024 was equal to EUR 27,702 thousand (EUR 27,702
thousand as of 31 December 2023).
13) Reserves
Other reserves totalled EUR 38,596 thousand (EUR 30,071 thousand at 31 December 2023) and break down
as follows:
(EUR'000)
Legal Reserve
Other
Reserves
Retained
Earnings
Total
Balance at 1 January 2024
31.824
(4.988)
3.234
30.071
Increase
-
1
52.116
52.116
Decrease
-
(45)
(43.546)
(43.591)
Balance at 31 December 2024
31.824
(5.032)
11.804
38.596
(EUR'000)
Legal Reserve
Other
Reserves
Retained
Earnings
Total
Balance at 1 January 2023
31.824
(3.173)
-
28,651
Increase
-
-
37,449
37,449
Decrease
-
(1.814)
(34,215)
(36,029)
Balance at 31 December 2023
31.824
(4.988)
3.234
30,071
The decrease in Other Reserves relates to the reduction in the cash flow hedge reserve of 46 thousand euros,
while the increase to the IAS19 reserve.
The increase in retained earnings, equal to EUR 8,570 thousand, is related to the carry forward of the operating
profit of the previous financial year net of the distribution of 2023 dividends.
Company Financial Statements 2024 Cementir Holding NV | 436
Equity items
It is noted that the Company is tax residence in Italy, the following table shows the origin, possible use and
availability of equity items in respect to Italian tax rules:
(EUR'000)
Summary of utilisation in previous
three years
Nature/Description
Amount as at
31/12/2024
To cover losses
For other
reasons
Share capital
159,120
-
-
Share premium reserve
27,702
-
8,009
Legal reserve (Italian law)
31,824
-
-
Reserve for treasury shares in portfolio
(29,315)
-
-
Reserve for dividends undistributed
355
-
-
A) Reserve for grants related to assets
13,207
-
-
Reserve as per Art. 15 of Law No. 67 of 11/3/88
138
-
-
Reserve as per Law 349/95
41
Goodwill arising on merger
-
-
14,676
Other IFRS reserves
10,542
-
-
Retained earnings
11,804
-
-
Total reserves
66,298
-
22,685
Profit (loss) for the year
45,779
-
-
Total equity
271,197
-
-
A) In the event of distribution, the reserves contribute to forming the taxable income of the company.
The following table shows the reconciliation between Italian tax law and the Dutch Civil Code as at 31 December 2024:
(EUR'000)
Share
premium
reserve
Reserve
for
treasury
shares in
portfolio
Reserve for
dividends
undistributed
Reserve
for
grants
related
to assets
Hedging
Reserve*
Legal
reserve
(Italian
Law)
Other
IFRS
reserves*
Reserve
as per
Art. 15
of Law
No.
67/88
Reserve
as per
Law No.
349/95
Goodwill
arising
on
merger
Actuarial
reserves
IAS 19*
IFRS 9
Reserve*
Retained
earnings
Total
Italian Tax
rules
27,702
(29,315)
355
13,207
-
31,824
5,170
138
41
-
(114)
5,486
11,804
66,298
Reclassification
due conversion
in N.V.
-
29,315
(355)
(13,207)
-
(31,824)
(5,170)
(138)
(41)
-
-
(5,486)
26,906
Dutch Civil
Code
27,702
-
-
-
-
-
-
-
-
-
(114)
-
38,710
66,298
*other IFRS reserves
Treasury share purchase
The number of treasury shares held following the completion of the share buy-back programme (the
“Programme”) in October 2021 has not changed.
It should be noted that under the Programme, between 15 October 2020 and 12 October 2021 (ends included),
3,600,000 treasury shares, equal to 2.2624% of the share capital, were purchased on the Mercato Telematico
Azionario organised and managed by Borsa Italiana S.p.A. at a weighted average price of EUR 8.1432 per
share and for a total outlay of EUR 29,315 thousand.
Company Financial Statements 2024 Cementir Holding NV | 437
Dividends
During the year, the company distributed a total of EUR 43,546 thousand in dividends to shareholders for
2023, corresponding to EUR 0.28 per ordinary share.
14) Employee benefits
Post-employment benefits totalled EUR 191 thousand (EUR 185 thousand at 31 December 2023). The figure
represents the company’s estimate of its obligation, determined using actuarial techniques, to employees upon
termination of employment. On 1 January 2007, the Italian Finance Act and related implementing decrees
introduced significant reforms to the regulations governing post-employment benefits, including the right of
employees to decide where to allocate their accruing benefits. Benefits may be transferred to a pension fund
or kept within the company, in which case they are transferred to a special treasury fund set up by INPS.
As a result of the reforms, accruing Italian post-employment benefits now qualify as a defined contribution plan
rather than a defined benefit plan.
The actuarial assumptions used for their measurement are summarised below:
Values in %
31.12.2024
31.12.2023
Annual discount rate
2.90%
3.10%
Annual post-employment benefits growth rate
3.00%
3.31%
Changes in the liability are shown below:
(EUR'000)
31.12.2024
31.12.2023
Net liability opening balance
185
172
Current service cost
-
-
Interest cost
5
6
Payments of post-employment benefits
-
-
Net actuarial gains recognised in the year
1
7
Other
-
-
Net liability closing balance
191
185
Employee benefits included the long-term incentive plan that envisages the payment of a variable monetary
reward, calculated on the basis of the gross annual salary of the beneficiary, which is tied to the achievement
of the business and financial objectives in the Industrial Plans prepared and approved. It amounted to EUR
2,393 thousand at 31 December 2024 (EUR 2,419 thousand at 31 December 2023).
Company Financial Statements 2024 Cementir Holding NV | 438
15) Financial liabilities
Non-current and current financial liabilities are shown below:
(EUR'000)
31.12.2024
31.12.2023
Bank loans and borrowing
-
-
Other non-current loan liabilities
107
252
Other non-current financial liabilities - related parties (note 31)
1,596
-
Non-current financial liabilities
1,703
252
Bank loans and borrowing
-
26,542
Loans and borrowings - related parties (cash pooling) (note 31)
102,074
81,751
Current portion of non-current financial liabilities
104
155
Current portion of non-current financial liabilities to related parties (note 31)
1,761
1,536
Fair value of derivatives
-
251
Fair value of derivative instruments - related parties (note 31)
58
211
Other loan liabilities
7
116
Other financial payables - related parties (note 31)
7
12
Current financial liabilities
104,011
110,574
Total financial liabilities
105,714
110,826
Current payables to bank loans and borrowings are zero following the expiry during the FY 2024 of the senior
term loan and to the variable rate loan (6M Euribor + spread of 0.75%) granted by Banca Intesa SpA against a
mortgage on the property located in Torrespaccata.
Payables to related parties of EUR 102,074 thousand refer to the balance of the cash pooling account in place
with Alfacem Srl.
The current portion of non-current financial liabilities, amounting to EUR 1,865 thousand (EUR 104 thousand to
third parties and EUR 1,761 thousand to related parties), related to the debt arising from the application of IFRS
16; while other current financial debts , equal to EUR 7 thousand, refer to the accrual for the assessment of
financial charges.
The fair value of derivative instruments with related parties, negative for EUR 58 thousand respectively,
represents the valuation at 31 December 2024 of the derivatives put in place for the purpose of hedging exchange
rates with expiry in December 2025.
Company Financial Statements 2024 Cementir Holding NV | 439
The company’s exposure, broken down by due date of the financial liabilities, is as follows:
(EUR'000)
31.12.2024
31.12.2023
Within three months
983
1,333
• third parties
31
585
• related parties (note 31)
952
748
Between three months and one year
103,028
109,241
• third parties
80
26,480
• related parties (note 31)
102,948
82,761
Between one and two years
1,651
183
• third parties
55
183
• related parties (note 31)
1,596
0
Between two and five years
52
69
• third parties
52
69
• related parties (note 31)
0
0
After five years
0
0
Total financial liabilities
105,714
110,826
The carrying amount of current and non-current financial liabilities equals their fair value.
Net financial debt
The following table shows the Net Financial Debt as at 31 December 2024 and 2023, calculated in accordance
with paragraph 175 of the recommendations contained in ESMA 32-382-1138 of 4 March 2021:
(EUR'000)
31.12.2024
31.12.2023
A. Cash
6
3
B. Cash flow
532
1,438
C. Current financial assets
39,853
38,073
D. Cash and cash equivalents (A+B+C)
40,391
39,514
E. Current bank loans and borrowings
-
(24,880)
F. Current portion of non-current debt
(104,010)
(85,695)
G. Current financial debt (E+F)
(104,010)
(110,575)
H. Net current financial debt (G-D)
(63,619)
(71,061)
I. Non-current bank loans and borrowings
-
-
J. Bonds issued
-
-
K. Other non-current liabilities
(1,703)
(252)
L. Non-current financial debt (I+J+K)
(1,703)
(252)
M. Net financial debt (H+L)
(65,322)
(71,313)
The Company’s net financial debt at 31 December 2024 amounted to EUR 65,322 thousand (EUR 71,313
thousand at 31 December 2023) down by EUR 5,991 thousand compared to the previous year. This change is
mainly attributable to the repayment of principal amounts of outstanding loans.
The current portion of debt, amounting to EUR 104,010 thousand (EUR 85,695 thousand at 31 December 2023)
increased by EUR 18,315 thousand mainly due to the cash pooling debt with Alfacem.
Company Financial Statements 2024 Cementir Holding NV | 440
If the non-current component of the loan had been included, the net financial debt of Cementir Holding NV
would have been EUR 64,878 thousand (as presented below).
The current assets equal to EUR 15,450 thousand (EUR 13,027 thousand at 31 December 2023) are slightly
higher than current liabilities equal to EUR 15,318 thousand (EUR 6,792 thousand at 31 December 2023),
mainly due to the debt to the Group companies, see note 18).
(EUR'000)
31.12.2024
31.12.2023
Current financial assets
39,853
38,073
Cash and cash equivalents
538
1,441
Current financial liabilities
(104,010)
(110,575)
Non-current financial liabilities
(1,703)
(252)
Net financial debt (as per CONSOB Communication)
(65,332)
(71,313)
Non-current financial assets
444
24
Total net financial debt
(64,878)
(71,289)
16) Trade payables
Their balance of EUR 1,928 thousand (EUR 1,689 thousand at 31 December 2023) may be analysed as
follows:
(EUR'000)
31.12.2024
31.12.2023
Trade payables - third parties
1,703
1,464
Trade payables - related parties (note 31)
225
225
Trade payables
1,928
1,689
Note 31) Related party transactions gives a breakdown of trade payables to subsidiaries, associates and
Parents.
17) Deferred tax assets and liabilities and current tax liabilities
At 31 December 2024, deferred tax, amounted to EUR 20,986 thousand, includes deferred tax assets net of
deferred tax liabilities as shown below:
(EUR'000)
31.12.2023
Accruals, net of
utilisation in
profit or loss
Increase, net of
decreases in
equity
Other
changes
31.12.2024
Tax losses
16,166
-
-
-
16,166
Other
5,229
(44)
-
-
5,185
Deferred tax assets
21,395
(44)
-
-
21,351
Difference between accounting value
and their tax base
2,057
(1,672)
(20)
-
365
Income taxes tax liabilities
2,057
(1,672)
(20)
-
365
Total
19,338
20,986
The balance as of 31 December 2024 of deferred tax assets (EUR 21,351 thousand) is mainly composed of
IRES credits due to tax losses related to companies participating in the Italian domestic tax consolidation scheme;
recovery is foreseen in subsequent years within the limits defined by the reference legislation.
Company Financial Statements 2024 Cementir Holding NV | 441
In the last three years, no DTA was assessed on losses for statutory purposes, but they were taken into account
for tax purposes.
Deferred tax liabilities, totalling EUR 365 thousand at 31 December 2024, consisted of EUR 366 thousand relating
to IRES and EUR 0 thousand relating to IRAP.
18) Other current liabilities and current and non-current provisions
(EUR'000)
31.12.2024
31.12.2023
Personnel
1,391
1,450
Social security institutions
513
489
Other liabilities
6,073
4,584
Subsidiaries (IRES and VAT tax consolidation scheme) (note 31)
388
269
Other payables - related parties (Note 31)
6,953
-
Other current liabilities
15,318
6,792
Other liabilities relate mainly to remuneration for directors and auditors for a total of EUR 5,649 thousand.
The amount due to subsidiaries primarily comprises amounts owed by Cementir Holding to companies that have
joined the national IRES tax consolidation scheme following the assignment of tax losses of previous years.
The other payables – related parties relates to Cimentas for the dispute filed on January 29, 2017, by the Capital
Market Board (CMB), the regulatory and supervisory body of the Turkish stock exchange, on behalf of Cimentas
AS and against Cementir Holding before the Izmir Court, was definitively closed with the payment by the
defendant in favor of Cimentas AS of the equivalent of 6.9 million Euros on January 28, 2025.
19) Change in provisions (current and non-current)
At 31 December 2024, non-current provisions amounted to EUR 370 thousand, unchanged compared to 31
December 2023.
20) Revenue
(EUR'000)
2024
2023
Services
8,765
8,990
Revenue
8,765
8,990
Revenue included EUR 8,152 thousand mainly from revenues for royalties related to the use of the trademark
by the subsidiaries and for EUR 451 thousand from revenues for administrative services to group companies.
Note 31) Related-party transactions provides more information about revenue from subsidiaries, associates
and other Group companies.
21) Other operating revenue
(EUR'000)
2024
2023
Building lease payments
-
-
Other revenue and income
1
78
Other operating revenue
1
78
Company Financial Statements 2024 Cementir Holding NV | 442
22) Personnel costs
(EUR'000)
2024
2023
Wages and salaries
5,754
5,575
Social security charges
1,510
1,492
Other costs
556
851
Personnel costs
7,820
7,918
The costs relating to post-employment benefits amount to EUR 448 thousand (EUR 414 thousand in 2023)
and are included in Other costs.
The company’s workforce breaks down as follows:
31.12.2024
31.12.2023
2024
Average
2023
Average
Executives
13
13
13
12
Middle management, white-collar workers and intermediates
31
27
29
27
Total
44
40
42
39
The Company has no employees in the Netherlands.
23) Other operating costs
(EUR'000)
2024
2023
Consultancy
1,724
1,766
Directors’ fees
7,528
6,239
Independent auditors’ fees
675
553
Other services
9,358
2,235
Other operating costs
3,369
1,328
Other operating costs
22,654
12,121
Compared to FY 2023, Other services includes EUR 6,953 thousand of costs related to the disputes between
Cimentas AS and the Capital Market Board (CMB), please refer to note 31.
Total other operating expenses also include transactions with related parties; please refer to note 31 for full
details.
24) Amortisation, depreciation, impairment losses and provisions
(EUR'000)
2024
2023
Amortisation
27
27
Depreciation
796
831
Provisions and write-downs
0
0
Amortisation, depreciation, impairment losses and provisions
823
858
Amortisation and depreciation includes for EUR 758 thousand (EUR 793 thousand in 2023) in amortisation of
right of use assets deriving from the application of IFRS 16.
Company Financial Statements 2024 Cementir Holding NV | 443
25) Net financial expense
Financial income net of expenses was EUR 63,566 thousand. This result is broken down as follows:
(EUR'000)
2024
2023
Total income from investments
67,839
66,606
Total expense from investments
-
-
Interest income from third parties
20
32
Interest income from related parties (note 31)
2,585
1,883
Other financial income
2,685
6,045
Total financial income
5,290
7,960
Interest expense
(775)
(2,577)
Interest expense - related parties (note 31)
(46)
(115)
Other financial expense
(2,966)
(4,039)
Other financial expense - related parties (nota 31)
(5,776)
(3,559)
Total financial expense
(9,563)
(10,290)
Net financial income (expense)
63,566
64,276
“Income from investments”, amounting to EUR 67,839 thousand, refers to the dividends received by the
subsidiary Cementir Espana and by Cimentas. Other financial income amounting to EUR 2,685 thousand (EUR
6,045 thousand as of 31 December 2023) consisted of valuation and realisation of derivative financial instruments
purchased to hedge currency and exchange rate gains on financial transactions.
Other financial expense totalled EUR 2,966 thousand (EUR 4,039 thousand as of 31 December 2023) mainly
consisted of losses arising from the realisation of derivative financial instruments held to hedge currency and
interest rate risks.
26) Income taxes
The overall net amount, positive for EUR 4,744 thousand (negative for EUR 331 thousand in 2023), is made
up as follows:
(EUR'000)
2024
2023
Current taxes
3,116
(39)
- IRES
3,116
(39)
- IRAP
-
-
Deferred tax assets
(44)
(324)
- IRES
76
(324)
- IRAP
(120)
18
Income taxes tax liabilities
1,672
32
- IRES
1,568
-
- IRAP
104
32
Taxes
4,744
(331)
Company Financial Statements 2024 Cementir Holding NV | 444
The following table shows a reconciliation between the theoretical tax expense and the effective expense
recognised in the income statement:
(EUR'000)
2024
2023
Theoretical tax expense (based on Italian nominal tax rate)
(9,849)
(12,587)
Taxable permanent differences
(13,546)
(2,359)
Deductible permanent differences
18,935
18,154
Prior year taxes
(300)
(3,539)
Change in IRES tax rate
-
-
Effective IRAP tax expense
16
-
Taxes
(4,744)
(331)
The Company, as allowed by the Consolidated Income Tax Act, participates in the group tax regime called
“National tax consolidation scheme” as Parent.
27) Other comprehensive expense
The following table gives a breakdown of other comprehensive expense, including and excluding the related
tax effect:
(EUR'000)
2024
2023
Gross
amount
Tax
effect
Gross
amount
Gross
amount
Tax
effect
Gross
amount
Financial instruments
(64)
19
(45)
(2,569)
760
(1,809)
Net actuarial gains (losses) on
post-employment benefits
1
-
1
(7)
2
(5)
Total other comprehensive
income (expense)
(63)
19
(44)
(2,576)
762
(1,814)
28) IFRS 16 Leases
The following table shows the movements of RoU at 31 December 2024 and the related disclosures:
(EUR'000)
Land and
buildings
Plant and
equipment
Other
assets
Total
Right-of-use
assets
Gross amount at
1 January 2024
1,231
495
-
1,726
Increase
1,574
161
-
1,735
Decrease
(1,231)
(83)
-
(1,314)
Gross amount at
31 December 2024
1,574
573
-
2,147
Depreciation at
1 January 2024
619
93
-
712
Amortisation
611
147
-
758
Reclassifications/Increases
-
127
-
127
Decrease
(1,230)
-
-
(1,230)
Amortisation at
31 December 2024
-
367
-
367
Net amount at
31 December 2024
1,574
206
-
1,780
Company Financial Statements 2024 Cementir Holding NV | 445
(EUR'000)
Land and
buildings
Plant and
equipment
Other
assets
Total
Right-of-use
assets
Gross amount at
1 January 2023
1,306
553
-
1,859
Increase
-
319
-
319
Decrease
(75)
(377)
-
(452)
Gross amount at
31 December 2023
1,231
495
-
1,726
Depreciation at
1 January 2023
-
281
-
281
Amortisation
619
174
-
793
Decrease
-
(362)
-
(362)
Amortisation at
31 December 2023
619
93
-
712
Net amount at
31 December 2023
612
402
-
1,014
As at 31 December 2024, right of use assets were EUR 1,780 thousand (EUR 1,014 thousand at 31 December
2023) and mainly included the contract related to the 200 Corso Francia premises for EUR 1,574 thousand
(EUR 612 thousand at 31 December 2023).
The depreciation period of the right-of-use assets is reported below:
Useful life of the right of use
assets
Land and buildings
2 years
Plant and equipment
4 years
The Company’s exposure, broken down by expiry of the lease liabilities, is as follows:
(EUR'000)
31.12.2024
31.12.2023
Within three months
474
424
Between three months and one year
1,332
1,255
Between one and two years
1,764
31
Between two and five years
-
3
After five years
-
-
Total undiscounted lease liabilities at 31 December
3,570
1,713
Current and non-current lease liabilities are shown below:
(EUR'000)
31.12.2024
31.12.2023
Non-current lease liabilities
107
252
Non-current lease liabilities - related parties (note 31)
1,596
-
Non-current lease liabilities
1,703
252
Current lease liabilities
103
155
Current lease liabilities - related parties (note 31)
1,761
1,536
Current lease liabilities
1,864
1,691
Total lease liabilities
3,567
1,943
Company Financial Statements 2024 Cementir Holding NV | 446
Amounts recognised in profit/(loss) in the income statement
(EUR'000)
2024
2023
Amortisation and depreciation (note 24)
(758)
(793)
Interest expense on lease liabilities
(54)
(123)
Amounts recognised in the cash flow statement
(EUR'000)
2024
2023
Total cash outflow for leases
1,763
1,762
29) Financial risk management and disclosures
The company is exposed to financial risks connected with its operations, namely:
Credit risk
Cementir Holding N.V.’s exposure to credit risk is not considered particularly significant as it mainly does
business with subsidiaries and related parties whose risk of insolvency is substantially inexistent.
Credit risk related to trade receivables from subsidiaries is considered insignificant.
Note 6 provides additional details regarding the maturities of third-party trade receivables.
With respect to bank deposits (note 10) and derivatives (note 7), the Company has always worked with leading
counterparties, thus limiting its credit risk in this sense.
Liquidity risk
Liquidity risk concerns the availability of financial resources and access to credit market and financial
instruments.
The company monitors its cash flows, funding requirements and liquidity levels in order to ensure the effective
and efficient use of its financial resources.
The company has credit lines which cover any unforeseen requirements.
Note 15 provides a breakdown of financial liabilities by due date.
Market risk
The market risk mainly concerns currency and interest rate risks.
Currency risk
Cementir Holding N.V. is directly exposed to currency risk to a limited degree in relation to loans and deposits
held in foreign currency. The Company constantly monitors these risks so as to assess any impact in advance
and take any necessary mitigating actions.
Interest rate risk
As Cementir Holding NV has floating rate bank loans, it is exposed to the risk of fluctuations in interest rates.
This risk is considered moderate as the company’s loans are currently only in euros and the medium to long -
term interest rate curve is not steep. Having thoroughly assessed the level of rates expected and debt
reduction timing based on cash forecasts, Interest Rate Swaps are agreed to partly hedge the risk.
Company Financial Statements 2024 Cementir Holding NV | 447
Net financial debt at 31 December 2024 amounted to EUR 65,322 thousand (EUR 71,312 thousand in 2023)
made up of current financial receivables and cash and cash equivalents for EUR 38,853 thousand, current
loan liabilities for EUR 104,010 thousand and non-current loan liabilities of EUR 1,703 thousand, entirely
regulated at a variable rate.
With respect to the floating rate on net financial debt, an annual 1% increase in interest rates, assuming all the
other variables remain stable, would have had a negative effect on profit before taxes of EUR 0.7 million (EUR
0.8 million in 2023) and on equity of EUR 0.5 million (EUR 0.6 million at 31 December 2023). A similar decrease
in interest rates would have an identical positive impact.
Climate Change
The cement industry's ability to reduce its CO2 emissions and respond to climate change has become a focus
for investors. In 2021, the Cementir Group launched a project to implement the recommendations of the TCFD
(Task Force on Climate-Related Financial Disclosure) by committing to being transparent on the risks and
opportunities related to climate change. Cementir is also committed to ensuring the transparency of its climate-
related risks and opportunities in line with the EU Taxonomy. The identification, assessment and effective
management of risks and opportunities related to climate change are fully integrated into the Group's risk
management process.
As suggested by the TCFD, the Group monitors the risks and opportunities arising from the evolution of
transition scenarios and the evolution of physical variables. For further details on the scenarios used, please
see the description in the section “Environmental information – E1 Climate change”.
Physical variables are divided into two risk categories:
A. Acute: linked to the occurrence of extreme weather conditions such as cyclones, hurricanes or floods.
Acute physical phenomena, in the various cases, are characterised by a notable intensity and a
frequency of occurrence which is not high in the short term, but which, considering long-term
scenarios, sees a clear increasing trend;
B. Chronic: refers to gradual and long-term changes in climate patterns (e.g., sustained high
temperatures) that can cause sea-level rises or chronic heat waves.
Regarding to the energy transition process, towards a progressive reduction of carbon emissions, there are
risks and opportunities linked to changes in the regulatory, technological, market and reputational context.
The Group has decided to align itself with the TCFD framework to clearly represent the types of risks and
opportunities indicating how each of them must be managed. The effects were assessed over three time
horizons: the short term (1-3 years), linked to the implementation of the Business Plan; the medium term until
2030 during which it will be possible to see the effects of the energy transition; the long term up to 2050 during
which the Group is committed to achieving net-zero emissions along its entire value chain. As the TCFD states,
the process of disclosing risks and opportunities related to climate change will be gradual and incremental
from year to year.
For further details on the impact of climate change on company estimates and valuations, please see the
section “Metrics and targets”.
It should also be noted that the analysis carried out did not reveal any uncertainty factors that could lead to
significant adjustments to the company's estimates in the short/medium term.
Company Financial Statements 2024 Cementir Holding NV | 448
30) Fair value hierarchy
IFRS 13 requires that assets and liabilities carried at fair value be classified using a hierarchy which reflects
the sources of the inputs used to measure their fair value. The hierarchy consists of the following levels:
- Level 1: measurement of fair value using quoted prices on active markets for identical assets or liabilities.
- Level 2: measurement of fair value using inputs other than the quoted prices included within Level 1 which
are directly observable (such as prices) or indirectly observable (i.e., derived from prices) on the market.
- Level 3: measurement of fair value using inputs for assets or liabilities that are not based on observable
market data (unobservable inputs).
The fair value of assets and liabilities is classified as follows:
31 December 2024
(EUR'000)
Note
Level 1
Level 2
Level 3
Total
Investment property
3
-
-
15,500
15,500
Total assets
-
-
15,500
15,500
Current financial liabilities (derivative instruments)
15
-
-
-
-
Total liabilities
-
-
-
-
31 December 2023
(EUR'000)
Note
Level 1
Level 2
Level 3
Total
Investment property
3
-
-
17,650
17,650
Total assets
-
-
17,650
17,650
Current financial liabilities (derivative instruments)
15
-
251
-
251
Total liabilities
-
251
-
251
No transfers among the levels took place during 2024.
31) Related party transactions
Transactions performed by the Company with related parties are part of normal business operations and take
place at arm’s-length conditions; there are no transactions of an atypical or unusual nature, outside the normal
course of business. Loans granted to the subsidiaries Svim 15 Srl, and Basi 15 Srl, as described in Note 7.
These loans are also described in Note 15 “Net Financial Debt”.
Company Financial Statements 2024 Cementir Holding NV | 449
On 5 November 2010, the Board of Directors of Cementir Holding NV approved a new procedure for related party
transactions complying with CONSOB guidelines, issued pursuant to CONSOB Resolution No. 17221 of 12
March 2010 and subsequent amendments and additions thereto. The procedure has been applicable starting
from 1 January 2011. On 13 November 2019, the Board of Directors resolved to make a number of changes to
the Related Party Transaction Procedure, following the conversion of Cementir Holding into a company under
Dutch law. Finally, it should be noted that the procedure was again approved by the Board of Directors on 9
November 2020 during the periodic review of company procedures.
As required by CONSOB Communication No. 6064293 of 28 July 2006, related party transactions and their
effects are reported in the table below:
Trade and financial transactions
Year 2024
Trade
receivables
Non-
current
financial
assets
Current
financial
assets
Other
current
assets
Trade
payables
Current
and non-
current
financial
Other
current
liabilities
Balance
(EUR'000)
Cimentas AS
-
-
-
-
-
-
(6,953)
(6,953)
Alfacem Srl
-
-
-
802
-
(102,074)
-
(101,272)
Basi 15 Srl
-
-
1,050
-
-
-
(313)
737
Svim 15 Srl
-
-
1,255
-
-
-
(75)
1,180
Aalborg Portland A/S
148
-
-
-
-
-
-
148
Lehigh White Cement Company
14
-
-
-
-
-
-
14
Aalborg Cement Company
-
-
11,255
-
-
-
-
11,255
White Cement Company
-
-
23,348
-
-
-
-
23,348
Aalborg Portland Digital S.r.l.
17
334
369
802
-
-
-
1,522
Spartan Hive SpA
-
109
121
13,023
-
(58)
-
13,195
Caltagirone SpA
130
-
-
-
(225)
-
-
(95)
Piemme SpA
-
404
446
-
-
-
-
850
Compagnie des Ciments Belges SA
6
-
-
-
-
-
-
6
Aalborg Portland Anqing CO. LTD.
11
-
-
-
-
-
-
11
Unicon NO AS
22
-
-
-
-
-
-
22
Unicon DK AS
117
-
-
-
-
-
-
117
Kudsk & Dahl AS
1
-
-
-
-
-
-
1
Aalborg Portland Island HF
1
-
-
-
-
-
-
1
Aalborg Portland Polska Sp.zoo
1
-
-
-
-
-
-
1
Aalborg Portland Australia Pty. Ltd.
1
-
-
-
-
-
-
1
Aalborg Portland France S.A.S.
3
-
-
-
-
-
-
3
AB Sydsten
3
-
-
-
-
-
-
3
Gaetano Cacciatore LLC
14
-
-
-
-
-
-
14
FGC SpA
-
-
-
-
-
(7)
-
(7)
ICAL SpA
-
-
-
-
-
(3,357)
-
(3,357)
Total related parties
489
847
37,844
14,627
(225)
(105,496)
(7,341)
(59,255)
Total financial statements
501
872
39,853
15,450
(1,929)
(105,714)
(15,318)
% of item
97.60%
97.13%
94.96%
94.67%
11.66%
99.79%
47.92%
Company Financial Statements 2024 Cementir Holding NV | 450
Year 2023
Trade
receivables
Non-
current
financial
assets
Current
financial
assets
Other
current
assets
Trade
payables
Current
and non-
current
financial
Other
current
liabilities
Balance
(EUR'000)
Cimentas AS
-
-
-
-
-
-
-
-
Alfacem Srl
-
-
-
319
-
(81,751)
-
(81,432)
Basi 15 Srl
-
-
700
-
-
-
(202)
498
Svim 15 Srl
-
-
1,255
-
-
-
(66)
1,189
Aalborg Portland A/S
128
-
-
-
-
(12)
-
116
Lehigh White Cement Company
-
-
-
-
-
-
-
-
Aalborg Cement Company
-
-
10,407
-
-
-
-
10,407
White Cement Company
-
-
23,439
-
-
-
-
23,439
Aalborg Portland Digital S.r.l.
-
-
349
426
-
-
-
775
Spartan Hive SpA
5
-
113
10,909
-
(211)
-
10,816
Caltagirone SpA
30
-
-
-
(225)
-
-
(195)
Piemme SpA
-
-
450
-
-
-
-
450
Compagnie des Ciments Belges SA
-
-
-
-
-
-
-
-
Aalborg Portland Anqing CO. LTD.
-
-
-
-
-
-
-
-
Unicon NO AS
(1)
-
-
-
-
-
-
(1)
Unicon DK AS
-
-
-
-
-
-
-
-
Gaetano Cacciatore LLC
3
-
-
-
-
-
-
3
ICAL SpA
-
-
-
-
-
(1,536)
-
(1,536)
Total related parties
165
-
36,713
11,654
(225)
(83,510)
(268)
(35,471)
Total financial statements
173
24
38,073
13,027
(1,689)
(110,826)
(6,792)
% of item
95.38%
0.0%
96.43%
89.46%
13.32%
75.35%
3.95%
Trade receivables mainly refer to the invoicing for brand fees sent to Group companies.
Financial assets refer to the interest-bearing loans to White Cement Company (EUR 23,348 thousand),
Aalborg Cement Company (EUR 11,255 thousand), Svim 15 Srl (EUR 1,255 thousand) and Basi 15 Srl (EUR
1,050 thousand). In addition, the item includes financial receivables arising from the sublease of part of the
building at 200 Corso Francia with effect from 1 September 2019 and also relating to the renewal of the
sublease contracts starting from January 2025, accounted for in accordance with IFRS 16, from Aalborg
Portland Digital, Piemme and Spartan Hive
Current and non-current financial liabilities include interest-bearing cash pooling balances with Alfacem Srl
(EUR 102,074 thousand).
Other current liabilities and other current assets mainly related to the effects of Cementir Holding NV and the
companies Alfacem Srl, Spartan Hive SpA, Aalborg Portland Digital Srl, Basi15 Srl and Svim15 Srl joining the
national tax consolidation scheme.
Company Financial Statements 2024 Cementir Holding NV | 451
Revenue and costs
Year 2024
Operating
revenue and other
income
Financial
income
Operating
costs
Financial
expense
Balance
(EUR'000)
Caltagirone SpA
-
-
(450)
-
(450)
Cimentas AS
2,910
589
(6,953)
-
(3,454)
Alfacem Srl
8
-
-
(5,748)
(5,740)
Basi 15 Srl
16
48
-
-
64
Svim 15 Srl
11
60
-
-
71
Cementir Espana
-
67,250
-
-
67,250
Aalborg Portland Holding A/S
-
-
-
-
-
Aalborg Portland A/S
708
-
-
(10)
698
Aalborg Cement Company
-
753
-
-
753
White Cement Company
-
1,696
-
-
1,696
Quercia Ltd
-
-
-
-
-
Sinai White Portland Cement Co.S.A.E.
-
-
-
-
-
Aalborg Portland Digital S.r.l.
406
10
(207)
-
209
Vianini Lavori SpA
-
-
-
-
-
Piemme SpA
81
14
-
-
95
Spartan Hive SpA
91
3
(96)
-
(2)
Compagnie des Ciments Belges SA
2,735
-
-
(10)
2,725
Compagnie des Ciments Belges France SA
-
-
-
-
-
Aalborg Portland Malaysia Sdn. BHD.
324
-
-
-
324
Kudsk & Dahl AS
11
-
-
-
11
Vianini Pipe Inc.
101
-
-
-
101
Gaetano Cacciatore LLC
25
-
-
-
25
Unicon NO AS
529
-
-
-
529
Unicon DK AS
426
-
-
-
426
Aalborg Portland Anqing CO. LTD.
383
-
-
-
383
FGC SpA
-
-
-
(7)
(7)
ICAL SpA
-
-
-
(46)
(46)
Total related parties
8,765
70,423
(7,706)
(5,821)
65,661
Total financial statements
8,766
73,130
(22,654)
(9,564)
% of item
99.99%
96.30%
34.02%
60.86%
Company Financial Statements 2024 Cementir Holding NV | 452
Year 2023
Operating
revenue and other
income
Financial
income
Operating
costs
Financial
expense
Balance
(EUR'000)
Caltagirone SpA
-
-
(450)
-
(450)
Cimentas AS
2,778
-
-
-
2,778
Alfacem Srl
8
-
-
(3,434)
(3,426)
Basi 15 Srl
16
25
-
-
41
Svim 15 Srl
11
53
-
-
64
Cementir Espana
-
66,606
-
-
66,606
Aalborg Portland Holding A/S
-
-
-
-
-
Aalborg Portland A/S
764
-
-
(62)
702
Aalborg Cement Company
-
520
-
-
520
White Cement Company
-
1,217
-
-
1,217
Quercia Ltd
-
-
-
-
-
Sinai White Portland Cement Co.S.A.E.
-
-
-
-
-
Aalborg Portland Digital S.r.l.
406
25
(118)
-
313
Vianini Lavori SpA
-
-
(42)
-
(42)
Piemme SpA
102
33
-
-
135
Spartan Hive SpA
91
8
(96)
-
3
Compagnie des Ciments Belges SA
2,807
-
-
(62)
2,745
Compagnie des Ciments Belges France SA
-
-
-
-
-
Aalborg Portland Malaysia Sdn. BHD.
342
-
-
-
342
Kudsk & Dahl AS
9
-
-
-
9
Vianini Pipe Inc.
111
-
-
-
111
Gaetano Cacciatore LLC
17
-
-
-
17
Unicon NO AS
617
-
-
-
617
Unicon DK AS
398
-
-
-
398
Aalborg Portland Anqing CO. LTD.
514
-
-
-
514
ICAL SpA
-
-
-
(115)
(115)
Total related parties
8,991
68,487
(706)
(3,673)
73,099
Total financial statements
9,068
74,566
(12,121)
(10,291)
% of item
99.15%
91.85%
5.82%
35.69%
Revenues to subsidiaries Cimentas AS, Aalborg Portland A/S, Compagnie des Ciments Belges SA, Aalborg
Portland Malaysia Sdn. BHD, Kudsk & Dahl AS, Vianini Pipe Inc., Gaetano Cacciatore LLC, Unicon NO AS,
Unicon DK AS and Aalborg Portland Anqing CO. LTD relate to fees inherent to the Trademark License
Agreement), while for the subsidiaries Spartan Hive SpA, Alfacem Srl, Basi 15 Srl, Svim 15 Srl and Aalborg
Portland Digital Srl, revenues refer only to fees relating to centralised activities as regulated by Cementir Group
Intercompany Service Agreement.
Financial income from Cementir Espana and Cimentas AS includes dividends (EUR 67,250 thousand and
EUR 589 thousand respectively); Financial income from Aalborg Cement Company and White Cement
Company relates to interest accrued on loans granted.
Company Financial Statements 2024 Cementir Holding NV | 453
The operating costs from Spartan Hive SpA (EUR 96 thousand) are related to purchasing services, the
operating costs from Aalborg Portland Digital Srl (EUR 207 thousand) and from Caltagirone SpA (EUR 450
thousand) refer to consultancy services, while the operating costs from Cimentas AS (EUR 6,953 thousand)
concern the disputes filed on 29 January 2017 by Capital Market Board (CMB), please see the notes 18).
Financial expense with Alfacem Srl concern interest on cash pooling with Alfacem for EUR 5,748 thousand.
32) Independent auditors’ fees
Fees paid, excluding expenses and VAT, in 2024 to the independent auditors totalled approximately EUR 675
thousand, including EUR 331 thousand for audit services and EUR 344 thousand for other services (EUR 553
thousand in 2023 of which EUR 300 thousand for audit services and EUR 253 thousand for other services).
33) Director’s remuneration
Compensation paid in financial year 2024 totalled EUR 7,806 thousand (EUR 6,764 thousand in 2023) as
shown below:
(EUR'000)
2024
2023
Fixed Remuneration
1,957
1,973
Compensation for participation in committees
149
146
Variable Compensation
5,422
4,367
Non monetary benefits
18
18
Other fees
260
260
Total
7,806
6,764
The variable remuneration of directors and the portion of variable remuneration for key management
personnel, shown in the table below, mainly relates to short-term benefits, which were not paid as of 31
December 2024.
Company Financial Statements 2024 Cementir Holding NV | 454
The table below shows the compensation paid in Financial Year 2024
YEAR 2024
(EUR ’000)
Fixed Remuneration
Variable
compensation
(non-equity)
Non
monetary
benefits
Other
remuneration*
Total
Percentage of fixed
and variable
remuneration
Director's name, position
Attendance
fee
Board of
Directors
Remuneration
approved by the
Shareholders'
Meeting or the
Board of
Directors
Compensation
from
employment
Compensation
for
participation
in committees
Committee
Attendance
Fee
Bonuses and
other
incentives
BOARD OF DIRECTORS
Francesco Caltagirone, Chairman of the Board
of Directors and CEO***
4
1,805
80
5,422
18
7,329
74% variable
remuneration
26% fixed
remuneration
Alessandro Caltagirone, Non-Executive
Director and Vice-Chairman
4
5
9
100% fixed
remuneration
Azzurra Caltagirone, Non-Executive Director
and Vice-Chairman
5
5
10
100% fixed
remuneration
Saverio Caltagirone, Non-Executive Director
5
5
10
100% fixed
remuneration
Fabio Corsico, Non-Executive Director*
4
5
260
269
100% fixed
remuneration
Annalisa Pescatori, Independent Non-Executive
Director, Chair of the Remuneration and
Nomination Committee, member of the Audit
Committee and the Sustainability Committee
5
5
50
3
63
100% fixed
remuneration
Benedetta Navarra, Independent Non-Executive
Director, Chair of the Audit Committee, member
of the Remuneration and Nomination Committee
and the Sustainability Committee
5
5
50
3
63
100% fixed
remuneration
Adriana Lamberto Floristan, Senior Non-
Executive Independent Director, member of the
Audit Committee, member of the Remuneration
and Nomination Committee and the Sustainability
Committee
5
5
40
3
53
100% fixed
remuneration
KEY MANAGEMENT
Key Executives:**
4,358
1,948
488
6,795
29% variable
remuneration
71% fixed remuneration
TOTAL:
37
1,840
4,439
140
9
7,370
506
260
14,601
* Consultancy contract
** Including Group COO, Group CFO, Heads of Region and Business Unit Managing Directors
*** Also holds the position of Chairman of the Sustainability Committee for which he receives no remuneration
Company Financial Statements 2024 Cementir Holding NV | 455
The table below shows the compensation paid in Financial Year 2023:
YEAR 2023
(EUR ’000)
Fixed Remuneration
Variable
compensation
(non-equity)
Non
monetary
benefits
Other
remuneration*
Total
Percentage of fixed
and variable
remuneration
Director's name, position
Attendance
fee
Board of
Directors
Remuneration
approved by
the
Shareholders'
Meeting or the
Board of
Directors
Compensation
from
employment
Compensation
for
participation
in committees
Committee
Attendance
Fee
Bonuses and
other
incentives
BOARD OF DIRECTORS
Francesco Caltagirone, Chairman of the Board
of Directors and CEO***
6
1,805
80
4,367
18
6,277
70% variable
remuneration
30% fixed
remuneration
Alessandro Caltagirone, Non-Executive
Director and Vice-Chairman
6
5
11
100% fixed
remuneration
Azzurra Caltagirone, Non-Executive Director
and Vice-Chairman
6
5
11
100% fixed
remuneration
Saverio Caltagirone, Non-Executive Director
5
5
10
100% fixed
remuneration
Fabio Corsico, Non-Executive Director*
6
5
260
271
100% fixed
remuneration
Annalisa Pescatori, Independent Non-Executive
Director, Chair of the Remuneration and
Nomination Committee, member of the Audit
Committee and the Sustainability Committee
4
3
33
1
41
100% fixed
remuneration
Benedetta Navarra, Independent Non-Executive
Director, Chair of the Audit Committee, member
of the Remuneration and Nomination Committee
and the Sustainability Committee
4
3
33
1
41
100% fixed
remuneration
Adriana Lamberto Floristan, Senior Non-
Executive Independent Director, member of the
Audit Committee, member of the Remuneration
and Nomination Committee and the
Sustainability Committee
6
5
27
2
40
100% fixed
remuneration
DIRECTORS LEAVING OFFICE DURING 2023
Edoardo Caltagirone, Non-Executive Director
0
2
2
100% fixed
remuneration
Paolo Di Benedetto, Senior Independent Non-
Executive Director, member of the Audit
Committee and member of the Remuneration
and Nomination Committee
2
2
13
17
100% fixed
remuneration
Chiara Mancini, Independent Non-Executive
Director, Chair of the Remuneration and
2
2
17
1
22
100% fixed
remuneration
Company Financial Statements 2024 Cementir Holding NV | 456
Nomination Committee, member of the Audit
Committee and the Sustainability Committee
Veronica De Romanis, Independent Non-
Executive Director, Chair of the Audit Committee
and member of the Remuneration and
Nomination Committee and the Sustainability
Committee
2
2
17
1
22
100% fixed
remuneration
KEY MANAGEMENT
Key Executives:**
3,999
1,787
493
6,279
28% variable
remuneration
72% fixed
remuneration
TOTAL:
49
1,843
4,079
140
6
6,154
512
260
13,043
* Consultancy contract
** Including Group COO, Group CFO, Heads of Region and Business Unit Managing Directors
*** Also holds the position of Chairman of the Sustainability Committee for which he receives no remuneration
Company Financial Statements 2024 Cementir Holding NV | 457
34) Off balance sheet liabilities
Regarding pledge as collateral for banks loans refer to note 15.
35) Events after the reporting period
In early January, the Company waived the repayment of EUR 1,050 thousand as a share of the interest-
bearing loan to the subsidiary BASI 15 Srl, in exchange for the establishment of a reserve for a future capital
increase.
On 28 January 2025, the dispute brought on 29 January 2017 by Capital Market Board (CMB) was finally
settled with the payment by the defendant in favour of Cimentas AS of the equivalent of EUR 6.9 million.
PROPOSED ALLOCATION OF THE LOSS FOR THE YEAR 2024 OF CEMENTIR HOLDING NV
The Board of Directors proposes that the General Meeting:
• approve the company financial statements as at and for the year ended 31 December 2024 – including the
statement of financial position, an income statement, a statement of comprehensive income, a statement of
changes in equity, a statement of cash flows and these notes – showing a profit of EUR 45,779,483;
• to assign to the Shareholders, as a dividend, an amount equal to EUR 43,545,600, net of treasury shares,
in the amount of EUR 0.28 per ordinary share, gross of any statutory withholdings, using the profit for the
year for EUR 43.545.600 and to allocate the remaining part of the profit for the year to be carried forward
for EUR 2.233.883.
Rome, 11 March 2025
Chairman of the Board of Directors
/f/ Francesco Caltagirone Jr.
/f/ Alessandro Caltagirone
/f/ Azzurra Caltagirone
/f/ Saverio Caltagirone
/f/ Fabio Corsico
/f/ Adriana Lamberto Floristan
/f/ Annalisa Pescatori
/f/ Benedetta Navarra
Company Financial Statements 2024 Cementir Holding NV | 458
OTHER INFORMATION
Statutory provisions on the allocation of profits
With regard to the allocation of profits, Article 10 of the Articles of Association provides as follows:
The Articles of Association provide that the annual profit earned may be allocated in whole or in part to
reserves. The residual profit is at the free disposal of the Shareholders’ Meeting.
Branches offices and of the countries in which there are branch offices
The company, Cementir Holding N.V., has its registered office in Amsterdam, The Netherlands and a
secondary headquarter at Corso di Francia no. 200, 00191 Rome, Italy.
Report on the audit of the financial statements 2024
Independent auditor’s report
To: the general meeting of Cementir Holding N.V.
Our opinion
In our opinion, the financial statements of Cementir Holding N.V. (‘the Company’) give a true and fair view of the financial
position of the Company and the Group (the Company together with its subsidiaries) as at 31 December 2024, and of its result
and its cash flows for the year then ended in accordance with IFRS Accounting Standards as adopted by the European Union
(‘EU’) and with Part 9 of Book 2 of the Dutch Civil Code.
What we have audited
We have audited the accompanying financial statements 2024 of Cementir Holding N.V., Amsterdam. The financial statements
comprise the consolidated financial statements of the Group and the company financial statements.
The financial statements comprise:
• the consolidated and company statement of financial position as at 31 December 2024;
• the following statements for 2024: the consolidated and company income statement, the consolidated and company
statements of comprehensive income, changes in equity and cash flows; and
• the notes to the financial statements, including material accounting policy information and other explanatory information.
The financial reporting framework applied in the preparation of the financial statements is IFRS Accounting Standards as
adopted by the EU and the relevant provisions of Part 9 of Book 2 of the Dutch Civil Code.
The basis for our opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. We have further described
our responsibilities under those standards in the section ‘Our responsibilities for the audit of the financial statements’ of our
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
PricewaterhouseCoopers Accountants N.V., Thomas R. Malthusstraat 5, 1066 JR Amsterdam, P.O. Box 90357, 1006 BJ Amsterdam, the Netherlands, T: +31 (0) 88 792 00 20,
www.pwc.nl
‘PwC’ is the brand under which PricewaterhouseCoopers Accountants N.V. (Chamber of Commerce 34180285), PricewaterhouseCoopers Belastingadviseurs N.V. (Chamber of Commerce 34180284),
PricewaterhouseCoopers Advisory N.V. (Chamber of Commerce 34180287), PricewaterhouseCoopers Compliance Services B.V. (Chamber of Commerce 51414406), PricewaterhouseCoopers Pensions, Actuarial
& Insurance Services B.V. (Chamber of Commerce 54226368), PricewaterhouseCoopers B.V. (Chamber of Commerce 34180289) and other companies operate and provide services. These services are governed
by General Terms and Conditions (‘algemene voorwaarden’), which include provisions regarding our liability. Purchases by these companies are governed by General Terms and Conditions of Purchase (‘algemene
inkoopvoorwaarden’). At www.pwc.nl more detailed information on these companies is available, including these General Terms and Conditions and the General Terms and Conditions of Purchase, which have also
been filed at the Amsterdam Chamber of Commerce.
Page 1 of 14
Independent auditor's report, Cementir Holding N.V., 13 March 2025
Page 2 of 14
Independence
We are independent of Cementir Holding N.V. in accordance with the European Union Regulation on specific requirements
regarding statutory audit of public-interest entities, the ‘Wet toezicht accountantsorganisaties’ (Wta, Audit firms supervision act),
the ‘Verordening inzake de onafhankelijkheid van accountants bij assuranceopdrachten’ (ViO, Code of Ethics for Professional
Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands.
Furthermore, we have complied with the ‘Verordening gedrags- en beroepsregels accountants’ (VGBA, Dutch Code of Ethics).
Our audit approach
We designed our audit procedures with respect to the key audit matters, fraud and going concern, and the matters resulting
from that, in the context of our audit of the financial statements as a whole and in forming our opinion thereon. The information
in support of our opinion, such as our findings and observations related to individual key audit matters, the audit approach fraud
risk and the audit approach going concern was addressed in this context, and we do not provide separate opinions or
conclusions on these matters.
Overview and context
Cementir Holding N.V. is a multinational company offering innovative building solutions in 70 countries worldwide, is the global
leader in white cement and has a diversified business portfolio of cement, aggregates, concrete and value-added products. The
Group is comprised of several components and therefore we considered our group audit scope and approach as set out in the
section ‘The scope of our group audit’. We paid specific attention to the areas of focus driven by the operations of the Group, as
set out below.
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial
statements. In particular, we considered where the board of directors made important judgements, for example, in respect of
significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain.
In these considerations, we paid attention to, amongst others, the assumptions underlying the physical and transition risk
related to climate change.
In the notes to the financial statements, the Company describes the areas of judgement in applying accounting policies and the
key sources of estimation uncertainty. Given the significant estimation uncertainty, complexity and the related higher inherent
risks of material misstatement in the recoverability of goodwill, we considered this matter as key audit matter as set out in the
section ‘Key audit matters’ of this report.
Other areas of focus, that were not considered as key audit matters, were hyperinflation in Türkiye, climate change and
environmental requirements and valuation of investment property in Türkye.
Independent auditor's report, Cementir Holding N.V., 13 March 2025
There is increasing attention for climate change and environmental requirements and the impact on companies and their
operations, as well as the impact of companies on their environment. The Company assessed the possible effects of climate
change and its plans to meet the emissionZERO® commitments on its financial position.
In the ‘Climate change’ section in the directors’ report and in the consolidated financial statements, the board of directors
reflected on climate-related risk and opportunities. It is management’s assessment that the future estimates and judgements
underlying the carrying amounts of assets or liabilities will be influenced by the entity’s response to climate-related risks.
We discussed management’s assessment and governance thereof and evaluated the potential impact on the financial position
including underlying assumptions and estimates. The board of directors concluded that the climate change has no significant
impact on the recoverability of the carrying amounts of the assets as at 31 December 2024. Please also refer to the key audit
matter ‘Recoverability of goodwill’.
We ensured that the audit teams at both group and component level included the appropriate skills and competences which are
needed for this audit. We therefore included experts and/or specialists in the areas of amongst others, valuations, IT and
corporate income taxes in our team.
The outline of our audit approach was as follows:
Materiality
• Overall materiality: €15,000,000 for the consolidated financial statements and €3,500,000 for the company financial statements.
Audit scope
• We conducted audit work on 19 components in 10 locations organised in four sub-group components: Italy, Denmark, Türkiye, and Belgium.
• We performed physical site visits in three countries and conducted several virtual meetings during the audit – which involved all of the sub-group
components in scope.
• Audit coverage: 91% of consolidated revenue, 90% of consolidated total assets and 80% of consolidated profit before tax.
Key audit matters
• Recoverability of goodwill.
Materiality
The scope of our audit was influenced by the application of materiality, which is further explained in the section ‘Our
responsibilities for the audit of the financial statements’.
Page 3 of 14
Independent auditor's report, Cementir Holding N.V., 13 March 2025
Based on our professional judgement we determined certain quantitative thresholds for materiality, including the overall
materiality for the financial statements as a whole as set out in the table below. These, together with qualitative considerations,
helped us to determine the nature, timing and extent of our audit procedures on the individual financial statement line items and
disclosures and to evaluate the effect of identified misstatements, both individually and in aggregate, on the financial statements
as a whole and on our opinion.
Overall group materiality
€ 15,000,000 (2023: € 15,200,000) for the consolidated financial statements and € 3,500,000 (2023: €
3,900,000) for the company financial statements.
Basis for determining materiality
We used our professional judgement to determine overall materiality. As a basis for our judgement, we
used 0.9% of total revenues. For the company financial statements, we used 0.9% of total assets.
Rationale for benchmark applied
We used total revenues as the primary benchmark, a generally accepted auditing practice, based on
our analysis of the common information needs of the users of the financial statements. On this basis,
we believe that total revenues are an important metric for the financial performance of the Group.
Additionally, revenues are less volatile than other benchmarks.
We consider total assets as the most appropriate benchmark for the company financial statements
given the primary nature of the parent company’s activities, as holding of investments.
Component materiality
Based on our judgement, we allocate materiality to each component in our audit scope that is less than
our overall group materiality. The range of materiality allocated across components was between €3.5
million and €14 million.
We also take misstatements and/or possible misstatements into account that, in our judgement, are material for qualitative
reasons.
We agreed with the audit committee that we would report to them any misstatement identified during our audit above €750,000
(2023: €760,000) for the consolidated financial statements and €350,000 (2023: €390,000) for the company financial statements
as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.
The scope of our group audit
Cementir Holding N.V. is the parent company of a group of entities. The financial information of this group is included in the
consolidated financial statements of Cementir Holding N.V.
We are responsible for the identification and assessment of the risks of material misstatement of the financial statements of the
group, including those with respect to the consolidation process. Based on our risk assessment, we tailored the scope of our
audit to ensure that we, in aggregate, performed sufficient work on the financial statements to enable us to provide an opinion
on the financial statements as a whole, taking into account the management structure of the Group, the nature of operations of
its components, the accounting processes and controls, and the markets in which the components of the Group operate.
In establishing the overall group audit strategy and plan, we determined the type of work required to be performed at component
level by the group engagement team and by each component auditor.
Page 4 of 14
Independent auditor's report, Cementir Holding N.V., 13 March 2025
Our audit primarily focused on the significant components of the Group, due to size and risk: (i) Cementir Holding N.V., (ii)
Aalborg Portland sub-group (Denmark), (iii) Çimentaş sub-group (Türkiye), (iv) Compagnie des Ciments Belges CCB sub-group
(Belgium).
In total, in performing these procedures, we achieved the following coverage on the financial line items:
Revenue
91%
Total assets 90%
Profit before tax
80%
None of the remaining components represented more than 2% of total group revenue or total group assets. For those remaining
components we performed, among other things, analytical procedures to corroborate our assessment that there were no
significant risks of material misstatements within those components.
Where component auditors performed the work, we determined the nature, timing and extent of direction and supervision of the
component auditors and review of their work to be able to conclude whether we had obtained sufficient and appropriate audit
evidence as a basis for our opinion on the consolidated financial statements as a whole.
We issued instructions to the component audit teams in our audit scope. These instructions included, amongst others, our risk
analysis, materiality, and the scope of the work. We explained to the component audit teams the structure of the Group, the
main developments that were relevant for the component auditors, the risks identified, the materiality levels to be applied and
our global audit approach. We had individual video or physical meetings with each of the in-scope sub-group component audit
teams both during the year and upon conclusion of their work. During these calls, we discussed the significant accounting and
audit issues identified by the component auditors, their reports, the findings of their procedures and other matters, that could be
of relevance to the consolidated financial statements. The group engagement team visits the component teams and local
management on a rotational basis. In the current year, the group audit team visited the Çimentaş sub-group (Türkiye)
component and the Lehigh White Cement Company (USA) and the Aalborg Portland Anqinq (China) components given the
importance of the components for the overall group. We held conference calls and video conference meetings with the teams
and local management of all the sub-group components in Denmark and Belgium. For each of the sub-group components we
reviewed selected working papers of the respective component auditors. During the meetings with local management, we
discussed strategy and finance performance of the local businesses, among other things. The group engagement team
performed the audit work on the group consolidation, financial statements and disclosures.
By performing the procedures outlined above at the components, combined with additional procedures exercised at group level,
we have been able to obtain sufficient and appropriate audit evidence on the Group’s financial information, to provide a basis for
our opinion on the financial statements.
Page 5 of 14
Independent auditor's report, Cementir Holding N.V., 13 March 2025
Audit approach fraud risks
We identified and assessed the risks of material misstatements of the financial statements due to fraud. During our audit we
obtained an understanding of Cementir Holding N.V. and its environment and the components of the internal control system.
This included the board of directors’ risk assessment process, the board of directors’ process for responding to the risks of fraud
and monitoring the internal control system and how the board of directors exercises oversight, as well as the outcomes. We
refer to the section ‘Internal control system for fraud risk management’ of the directors’ report where the board of directors
reflects on its response to fraud risk.
We evaluated the design and relevant aspects of the internal control system with respect to the risks of material misstatements
due to fraud and, in particular, the fraud risk assessment, as well as, among others, the code of conduct, whistleblower
procedures and incident registration. We evaluated the design and the implementation and, where considered appropriate,
tested the operating effectiveness of internal controls designed to mitigate fraud risks.
We asked members of the board of directors as well as the internal audit department, legal affairs, compliance department,
chief financial officer ,human resources, procurement department and regional directors whether they are aware of any actual or
suspected fraud, including incidents noted within the Group through the whistleblower process or otherwise. This did not result
in signals of actual or suspected fraud that may lead to a material misstatement.
As part of our process of identifying fraud risks, we evaluated fraud risk factors with respect to financial reporting fraud,
misappropriation of assets and bribery and corruption. We evaluated whether these factors indicate that a risk of material
misstatement due to fraud is present.
We identified the following fraud risks and performed the following specific procedures:
Identified fraud risks Our audit work and observations
Management override of controls
Management is in a unique position to perpetrate fraud
because of management’s ability to manipulate
accounting records and prepare fraudulent financial
statements by overriding controls that otherwise
appear to be operating effectively.
That is why, in all our audits, we pay attention to the
risk of management override of controls in:
• the appropriateness of journal entries and other
adjustments made in the preparation of the
financial statements;
• significant estimates;
• significant transactions, if any, outside the
normal course of business for the entity.
We pay particular attention to tendencies due to
possible interests of management.
We evaluated the design and implementation of the internal control measures and assessed the
effectiveness of the measures in the processes of generating and processing journal entries and
making estimates. We also paid specific attention to the access safeguards in the IT system and the
possibility that these lead to violations of the segregation of duties.
We performed data analysis on high-risk journal entries as part of which we also paid attention to
significant transactions outside the normal course of business.
Where we identified instances of unexpected journal entries through our data analytics, we performed
additional audit procedures to address each identified risk. These procedures included reconciliation
with and inspection of transactions to source information.
We paid specific attention to consolidation and elimination entries which included reconciliation with and
inspection of underlying information.
We evaluated key estimates and judgements for bias by management, including retrospective reviews
of prior year’s estimates. In this context we paid specific attention to the recoverability of the goodwill.
We refer to the section ‘Key audit matters’ for detailed procedures.
We performed the review of minutes of the meetings of corporate bodies.
Page 6 of 14
Independent auditor's report, Cementir Holding N.V., 13 March 2025
Identified fraud risks Our audit work and observations
Our audit procedures did not lead to specific indications of fraud or suspicions of fraud with respect to
management override of internal controls.
The risk of fraudulent financial reporting due to
overstating revenue
The risk of fraud in revenue recognition is a presumed
significant risk in all our audits. Revenue is an
important measure for the company due to growth
targets. These specific targets could lead to pressure
on management in terms of overstating revenue.
Therefore, we concluded that the risk of fraud in
revenue recognition relates to the assertion existence/
occurrence.
We assessed the design and implementation of the internal controls and their effectiveness in the
processes of recording revenues.
We performed substantive procedures such as reconciliation with and inspection of revenue to
underlying documentation. We performed specific tests in order to search for unusual/unexpected
transactions.
Finally, we selected journal entries based on specific risk criteria and performed substantive audit
procedures for these entries.
Our audit procedures did not lead to specific indications of fraud or suspicions of fraud with respect to
the existence/occurrence of the revenue reporting.
We incorporated an element of unpredictability in our audit. During the audit, we remained alert to indications of fraud.
Furthermore, we considered the outcome of our other audit procedures and evaluated whether any findings were indicative of
fraud or non-compliance with laws and regulations. Whenever we identify any indications of fraud, we re-evaluate our fraud risk
assessment and its impact on our audit procedures.
Audit approach going concern
We concluded that the board of directors’ use of the going concern basis of accounting is appropriate, and based on the audit
evidence obtained, that no material uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern.
The board of directors prepared the financial statements on the assumption that the entity is a going concern and that it will
continue all its operations for at least twelve months from the date of preparation of the financial statements.
Our procedures to evaluate the board of directors’ going-concern assessment included, amongst others:
• considering whether the board of directors identified events or conditions that may cast significant doubt on the entity’s
ability to continue as a going concern (hereafter: going-concern risks);
• considering whether the board of director’s going concern assessment includes all relevant information of which we are
aware as a result of our audit, inquiry with management regarding management’s most important assumptions underlying
their going concern assessment and considering whether management has identified any events or conditions that may
cast a significant doubt on the Company’s ability to continue as a going concern. These most important considerations
include analysing the financial position per balance sheet date compared to prior year as well as the liquidity scenarios,
financial stress tests and sensitivity analysis, including the assessment of the debt/EBITDA ratio’s for the financing facilities
of the company, to assess whether events or circumstances exist that may lead to a going concern risk;
Page 7 of 14
Independent auditor's report, Cementir Holding N.V., 13 March 2025
• evaluating the board of directors’ current budget including cash flows for at least 12 months from the date of preparation of
the financial statements taken into account current developments in the industry and all relevant information of which we
were aware as a result of our audit;
• analysing whether the current operating plan for 2025 to 2027 including cash flows in comparison with last year, current
developments in the industry and all relevant information of which we are aware as a result of our audit;
• performing inquiries of the board of directors as to its knowledge of going-concern risks beyond the period of the board of
directors’ assessment.
Our procedures did not result in outcomes contrary to the board of directors’ assumptions and judgments used in the application
of the going-concern assumption.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the financial
statements. We have communicated the key audit matters to the board of directors and to the Audit Committee. The key audit
matters are not a comprehensive reflection of all matters identified by our audit and that we discussed. In this section, we
described the key audit matters and included a summary of the audit procedures we performed on those matters.
We did not identify any key audit matters for the audit of the company financial statements.
Key audit matter Our audit work and observations
Recoverability of goodwill
Refer to note 2 of the consolidated financial statements: intangible assets with
an indefinite useful life (goodwill)
The carrying value of goodwill as at 31 December 2024 is € 448 million.
The Company conducts an annual goodwill impairment test as at the year-end
or when circumstances indicate that the carrying value of goodwill may be
impaired. Based on the annual goodwill impairment test in the current year, no
impairment charge was recorded.
The annual evaluation of the recoverability of this intangible asset is linked to
the occurrence of the assumptions underlying the group plans. This evaluation
requires management to make complex estimates, especially with reference to
the expected cash flows, the discount rate applied, the determination of the
CGU, and the determination of the growth rate to be used to estimate the
terminal value of each group of cash-generating units (groups of CGUs) to
which goodwill has been allocated.
At 31 December 2024, the Company grouped the CGUs on the basis of its
operating segments, consistent with both the corporate organisation and the
way management monitors performance.
In the context of the annual goodwill impairment test, we have performed
procedures, with the support of our valuation specialists. Our audit procedures
included, amongst others:
• We gained an understanding of, and assessed the procedures adopted
by management in order to verify the compliance with the requirements
of ‘IAS 36 – Impairment of Assets’ adopted by the European Union.
• We verified the reasonableness of the directors’ assumptions used to
estimate the expected cash flows and we verified the mathematical
accuracy of the calculations prepared by management.
• In order to assess the directors’ forecast capacity, we have performed
retrospective review procedures.
• We also verified the consistency of the cash generating units identified
(groups of CGUs and CGUs), to which goodwill was allocated compared
with the previous year and their alignment with the organisational,
management and operating structure of the Group. Additionally, we
verified the consistency between assets and liabilities attributable to
individual CGUs, including allocated goodwill, and the cash flows used
for determining the related recoverable amount.
Page 8 of 14
Independent auditor's report, Cementir Holding N.V., 13 March 2025
Report on the other information included in the annual
report
Key audit matter Our audit work and observations
Management assessed the potential impact of climate‑related risks on future
expected cash flows and capital expenditure to invest in the reduction of the
CO2 emission. This is not expected to have a material impact on the
impairment assessment.
We identified the evaluation of the recoverable amount of goodwill as a key
audit matter due to significant estimates and assumptions about discount rates,
profitability as well as growth rates.
• We analysed the significant assumptions applied in the determination of
the discount rate (WACC) and growth rate used for the impairment test
and we performed an independent recalculation using the parameters
applicable to the Group.
• We examined the sensitivity analyses performed by management in
respect of the impact from possible changes in estimated cash flows, the
long-term growth rates and discount rates used, on the recoverability of
goodwill.
• We assessed any indications of management bias in determining the
significant assumptions.
Finally, we verified the adequacy and completeness of the disclosures
regarding assumptions and sensitivities in the explanatory notes.
We identified no material exceptions.
The annual report contains other information. This includes all information in the annual report in addition to the financial
statements and our auditor’s report thereon.
Based on the procedures performed as set out below, we conclude that the other information:
• is consistent with the financial statements and does not contain material misstatements; and
• contains all the information regarding the directors' report and the other information that is required by Part 9 of Book 2 and
regarding the remuneration report required by the sections 2:135b and 2:145 subsection 2 of the Dutch Civil Code.
We have read the other information. Based on our knowledge and the understanding obtained in our audit of the financial
statements or otherwise, we have considered whether the other information contains material misstatements.
By performing our procedures, we comply with the requirements of Part 9 of Book 2 and section 2:135b subsection 7 of the
Dutch Civil Code and the Dutch Standard 720. The scope of such procedures was substantially less than the scope of those
procedures performed in our audit of the financial statements.
The board of directors is responsible for the preparation of the other information, including the directors' report and the other
information in accordance with Part 9 of Book 2 of the Dutch Civil Code. The board of directors is responsible for ensuring that
the remuneration report is drawn up and published in accordance with sections 2:135b and 2:145 subsection 2 of the Dutch Civil
Code.
Page 9 of 14
Independent auditor's report, Cementir Holding N.V., 13 March 2025
Our appointment
We were appointed as auditors of Cementir Holding N.V. This followed the passing of a resolution by the shareholders at the
annual general meeting held on 20 April 2020. Our appointment has been renewed annually by shareholders and now
represents a total period of uninterrupted engagement of four years.
European Single Electronic Format (ESEF)
Cementir Holding N.V. has prepared the annual report in ESEF. The requirements for this are set out in the Delegated
Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of a single electronic reporting
format (hereinafter: the RTS on ESEF).
In our opinion, the annual report prepared in XHTML format, including the marked-up consolidated financial statements, as
included in the reporting package by Cementir Holding N.V., complies in all material respects with the RTS on ESEF.
The board of directors is responsible for preparing the annual report, including the financial statements in accordance with the
RTS on ESEF, whereby the board of directors combines the various components into a single reporting package.
Our responsibility is to obtain reasonable assurance for our opinion whether the annual report in this reporting package
complies with the RTS on ESEF.
We performed our examination in accordance with Dutch law, including Dutch Standard 3950N ‘Assuranceopdrachten inzake
het voldoen aan de criteria voor het opstellen van een digitaal verantwoordingsdocument’ (assurance engagements relating to
compliance with criteria for digital reporting).
Our examination included amongst others:
• Obtaining an understanding of the entity’s financial reporting process, including the preparation of the reporting package.
• Identifying and assessing the risks that the annual report does not comply in all material respects with the RTS on ESEF
and designing and performing further assurance procedures responsive to those risks to provide a basis for our opinion,
including:
◦ obtaining the reporting package and performing validations to determine whether the reporting package containing the
Inline XBRL instance document and the XBRL extension taxonomy files have been prepared in accordance with the
technical specifications as included in the RTS on ESEF;
Report on other legal and regulatory requirements and
ESEF
Page 10 of 14
Independent auditor's report, Cementir Holding N.V., 13 March 2025
Responsibilities for the financial statements and the audit
◦ examining the information related to the consolidated financial statements in the reporting package to determine
whether all required mark-ups have been applied and whether these are in accordance with the RTS on ESEF.
No prohibited non-audit services
To the best of our knowledge and belief, we have not provided prohibited non-audit services as referred to in article 5(1) of the
European Regulation on specific requirements regarding statutory audit of public-interest entities.
Services rendered
The services, in addition to the audit, that we have provided to the Company or its controlled entities, for the period to which our
statutory audit relates, are disclosed in note 37 to the financial statements.
Responsibilities of the board of directors
The board of directors is responsible for:
• the preparation and fair presentation of the financial statements in accordance with IFRS Accounting Standards as adopted
by the EU and Part 9 of Book 2 of the Dutch Civil Code; and for
• such internal control as the board of directors determines is necessary to enable the preparation of the financial statements
that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the board of directors is responsible for assessing the Company’s ability to continue as a
going concern. Based on the financial reporting frameworks mentioned, the board of directors should prepare the financial
statements using the going-concern basis of accounting unless the board of directors either intends to liquidate the Company or
to cease operations or has no realistic alternative but to do so. The board of directors should disclose in the financial statements
any event and circumstances that may cast significant doubt on the Company’s ability to continue as a going concern.
The board of directors is responsible for overseeing the Company's financial reporting process.
Page 11 of 14
Independent auditor's report, Cementir Holding N.V., 13 March 2025
Our responsibilities for the audit of the financial statements
Our responsibility is to plan and perform an audit engagement in a manner that allows us to obtain sufficient and appropriate
audit evidence to provide a basis for our opinion. Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high but not absolute level of assurance, and is not a guarantee that an audit
conducted in accordance with the Dutch Standards on Auditing will always detect a material misstatement when it exists.
Misstatements may arise due to fraud or error. They are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
Materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified
misstatements on our opinion.
A more detailed description of our responsibilities is set out in the appendix to our report.
Amsterdam, 13 March 2025
PricewaterhouseCoopers Accountants N.V.
Original has been signed by A.G.J. Gerritsen RA
Page 12 of 14
Independent auditor's report, Cementir Holding N.V., 13 March 2025
In addition to what is included in our auditor’s report, we have further set out in this appendix our responsibilities for the audit of
the financial statements and explained what an audit involves.
The auditor’s responsibilities for the audit of the financial
statements
We have exercised professional judgement and have maintained professional scepticism throughout the audit in accordance
with Dutch Standards on Auditing, ethical requirements and independence requirements. Our audit consisted, among other
things of the following:
• Identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error,
designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the intentional override of internal control.
• Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal
control.
• Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the board of directors.
• Concluding on the appropriateness of the board of directors’ use of the going-concern basis of accounting, and based on
the audit evidence obtained, concluding whether a material uncertainty exists related to events and/or conditions that may
cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report and are made in the context of our opinion on the financial statements as a whole. However,
future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluating the overall presentation, structure and content of the financial statements, including the disclosures, and
evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
Appendix to our auditor’s report on the financial statements
2024 of Cementir Holding N.V.
Page 13 of 14
Independent auditor's report, Cementir Holding N.V., 13 March 2025
We are responsible for planning and performing the group audit to obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business units within the group as a basis for forming an opinion on the financial
statements. We are also responsible for the direction, supervision and review of the audit work performed for purposes of the
group audit. We remain solely responsible for our audit opinion.
We communicate with the board of directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit. In this respect,
we also issue an additional report to the audit committee in accordance with article 11 of the EU Regulation on specific
requirements regarding statutory audit of public-interest entities. The information included in this additional report is consistent
with our audit opinion in this auditor’s report.
We provide the board of directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related actions taken to eliminate threats or safeguards applied.
From the matters communicated with the board of directors, we determine those matters that were of most significance in the
audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Page 14 of 14
Our
limited
assurance
conclusion
Limited assurance report of the independent auditor on
the sustainability statement
To: the general meeting of Cementir Holding N.V.
Based on the procedures we have performed and the assurance evidence we have obtained, nothing has come to our attention
that causes us to believe that the consolidated sustainability statement of Cementir Holding N.V. (the company) for 2024 is not,
in all material respects,
• prepared in accordance with the European Sustainability Reporting Standards (ESRS) as adopted by the European
Commission and in accordance with the process, carried out by the company, to identify the information to be reported
pursuant to the ESRS; and
• compliant with the reporting requirements provided for in Article 8 of Regulation (EU) 2020/852 (the Taxonomy Regulation).
The
subject
matter
of
our
limited
assurance
procedures
We have conducted a limited assurance engagement on the consolidated sustainability statement of Cementir Holding N.V.,
Amsterdam for 2024, included in section sustainability statement of the directors' report including the information incorporated in
the sustainability statement by reference (hereafter: the sustainability statement).
In the sustainability statement, references are made to external sources or websites. The information on these external sources
or websites is not subject to our limited assurance procedures for the sustainability statement. We therefore do not provide
assurance on this information.
PricewaterhouseCoopers Accountants N.V., Thomas R. Malthusstraat 5, 1066 JR Amsterdam, P.O. Box 90357, 1006 BJ Amsterdam, the Netherlands, T: +31 (0) 88 792 00 20,
www.pwc.nl
‘PwC’ is the brand under which PricewaterhouseCoopers Accountants N.V. (Chamber of Commerce 34180285), PricewaterhouseCoopers Belastingadviseurs N.V. (Chamber of Commerce 34180284),
PricewaterhouseCoopers Advisory N.V. (Chamber of Commerce 34180287), PricewaterhouseCoopers Compliance Services B.V. (Chamber of Commerce 51414406), PricewaterhouseCoopers Pensions, Actuarial
& Insurance Services B.V. (Chamber of Commerce 54226368), PricewaterhouseCoopers B.V. (Chamber of Commerce 34180289) and other companies operate and provide services. These services are governed
by General Terms and Conditions (‘algemene voorwaarden’), which include provisions regarding our liability. Purchases by these companies are governed by General Terms and Conditions of Purchase (‘algemene
inkoopvoorwaarden’). At www.pwc.nl more detailed information on these companies is available, including these General Terms and Conditions and the General Terms and Conditions of Purchase, which have also
been filed at the Amsterdam Chamber of Commerce.
Page 1 of 6
Corporate Sustainability Reporting Directive, Cementir Holding N.V., 13 March 2025
Page 2 of 6
Emphasis of matter
We conducted our limited assurance engagement in accordance with Dutch law, including the Dutch Standard 3810N
‘Assuranceopdrachten inzake duurzaamheidsverslaggeving’ (assurance engagements relating to sustainability reporting), which
is a specific Dutch Standard that is based on the International Standard on Assurance Engagements (ISAE) 3000R ‘Assurance
engagements other than audits or reviews of historical financial information’. Our responsibilities under this standard are further
described in the section ‘Our responsibilities for the limited assurance engagement on the sustainability statement’ of our report.
We believe that the assurance evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
Our
independence
and
quality
management
We are independent of Cementir Holding N.V. in accordance with the ‘Verordening inzake de onafhankelijkheid van accountants
bij assuranceopdrachten’ (ViO, Code of ethics for professional accountants, a regulation with respect to independence) and
other relevant independence regulations in the Netherlands. Furthermore, we have complied with the ‘Verordening gedrags- en
beroepsregels accountants’ (VGBA, Dutch Code of ethics for professional accountants).
PwC applies the applicable quality management requirements pursuant to the ‘Nadere voorschriften kwaliteitsmanagement’
(NVKM, regulations for quality management) and the International Standard on Quality Management (ISQM) 1, and accordingly
maintains a comprehensive system of quality management including documented policies and procedures regarding
compliance with ethical requirements, professional standards and other relevant legal and regulatory requirements.
Emphasis
on
the
double
materiality
assessment
process
We draw attention to section "Materiality analysis and results according to the concept of double materiality" of the sustainability
statement. The disclosure in this section explains possible future changes in the ongoing due diligence and double materiality
assessment process, including engagement with affected stakeholders. Due diligence is an on-going practice that responds to
and may trigger changes in the company’s strategy, business model, activities, business relationships, operating, sourcing and
selling contexts relevant for stakeholders as a group. The double materiality assessment process may also be impacted in time
by sector-specific standards to be adopted. The sustainability statement may therefore not include every impact, risk and
opportunity or additional entity-specific disclosure that each individual stakeholder may consider important in its own
assessment.
Our conclusion is not modified in respect of this matter.
The
basis
for
our
conclusion
Page 3 of 6
Corporate Sustainability Reporting Directive, Cementir Holding N.V., 13 March 2025
Corresponding information not subject to assurance
procedures
Inherent limitations in preparing the sustainability
statement
The corresponding information in the sustainability statement and thereto related disclosures with respect to previous years
have not been subjected to reasonable or limited assurance procedures.
In reporting forward-looking information in accordance with the ESRS, the board of directors of the company is required to
prepare the forward-looking information based on disclosed assumptions about events that may occur in the future and possible
future actions by the company. The actual outcome is likely to be different since anticipated events frequently do not occur as
expected. Forward-looking information relates to events and actions that have not yet occurred and may never occur. We do not
provide assurance on the achievability of this forward-looking information.
The comparability of sustainability information between entities and over time may be affected by the lack of historical
sustainability information in accordance with the ESRS and by the absence of a uniform practice on which to draw, to evaluate
and measure this information. This allows for the application of different, but acceptable, measurement techniques, especially in
the initial years.
Calculations to determine information as included in the sustainability statement could be based on assumptions and sources
from third parties that include information about, among others, value chain and information collected from actors in the value
chain, when appropriate. We have not performed procedures on the content of these assumptions and these external sources,
other than evaluating the suitability and plausibility of these assumptions and sources from third parties used.
Corporate Sustainability Reporting Directive, Cementir Holding N.V., 13 March 2025
Responsibilities of the board of directors and the sustainability
committee for the sustainability statement
The board of directors of Cementir Holding N.V. is responsible for the preparation of the sustainability statement in accordance
with ESRS, including the development and implementation of the double materiality process, which is a process to identify the
information reported in the sustainability statement in accordance with the ESRS and for disclosing this process in the
sustainability statement.
This responsibility includes:
• understanding the context in which Cementir Holding N.V.’s activities and business relationships take place and developing
an understanding of its affected stakeholders;
• the identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as
risks and opportunities that affect, or could reasonably be expected to affect, the company’s financial position, financial
performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term;
• the assessment of the materiality of the identified impacts, risks and opportunities related to sustainability matters by
selecting and applying appropriate thresholds; and
• making assumptions and estimates that are reasonable in the circumstances.
The board of directors is also responsible for preparing the disclosures in compliance with the reporting requirements provided
in the Taxonomy Regulation.
The board of directors is also responsible for selecting and applying additional entity-specific disclosures to enable users to
understand the company’s sustainability-related impacts, risks or opportunities and for determining that these additional entity-
specific disclosures are suitable in the circumstances and in accordance with the ESRS.
Furthermore, the board of directors is responsible for such internal control as the board of directors determines is necessary to
enable the preparation of the sustainability statement that is free from material misstatement, whether due to fraud or error.
The sustainability committee is responsible for overseeing the company’s sustainability reporting process including the double
materiality process carried out by the company.
Responsibilities for the sustainability statement and for the
limited assurance procedures thereon
Page 4 of 6
Corporate Sustainability Reporting Directive, Cementir Holding N.V., 13 March 2025
Our responsibilities for the limited assurance engagement on the
sustainability statement
Our responsibility is to plan and perform the limited assurance engagement in a manner that allows us to obtain sufficient
appropriate assurance evidence to provide a basis for our conclusion.
Our objectives are to obtain a limited level of assurance, as appropriate, about whether the sustainability statement is free from
material misstatements, and to issue a limited assurance conclusion in our report. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence decisions of
users taken on the basis of the sustainability statement. The procedures vary in nature and timing from, and are less in extent
than for, a reasonable assurance engagement. The level of assurance obtained in a limited assurance engagement is therefore
substantially less than the assurance obtained in a reasonable assurance engagement.
Our other responsibilities in respect of the limited assurance engagement on the sustainability statement include:
• Performing risk assessment procedures, including obtaining an understanding of internal control relevant to the
engagement, to identify where material misstatements are likely to arise, whether due to fraud or error; and
• Designing and performing procedures responsive to where material misstatements are likely to arise in the sustainability
statement. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Procedures
performed
We have exercised professional judgement and have maintained professional scepticism throughout the assurance
engagement, in accordance with the Dutch Standard 3810N, ethical requirements and independence requirements. Our
procedures included, amongst others, the following:
• Performing inquiries and an analysis of the external environment and obtaining an understanding of relevant sustainability
themes and issues, the characteristics of the company, its activities and the value chain and its key intangible resources to
assess the process to identify the information to be reported carried out by the company as the basis for the sustainability
statement and disclosure of all material sustainability-related impacts, risks and opportunities in accordance with ESRS.
• Obtaining through inquiries a general understanding of the internal control environment, the company’s processes for
gathering and reporting entity-related and value chain information, the information systems and the company’s risk
assessment process relevant to the preparation of the sustainability statement and for identifying the company’s activities,
determining eligible and aligned activities and prepare the disclosures provided for in the Taxonomy Regulation, without
testing the operating effectiveness of controls.
• Assessing the double materiality process carried out by the company and identifying and assessing areas of the
sustainability statement, including the disclosures provided for in the Taxonomy Regulation where misleading or
unbalanced information or material misstatements, whether due to fraud or error, are likely to arise. We designed and
performed further assurance procedures aimed at determining that the sustainability statement is free from material
misstatements responsive to this risk analysis.
Page 5 of 6
Corporate Sustainability Reporting Directive, Cementir Holding N.V., 13 March 2025
• Considering whether the description of the process to identify the information to be reported in the sustainability statement
made by the board of directors appears consistent with the process carried out by the company.
• Evaluated the methods, assumptions and data for developing estimates and forward-looking information. Assessing
whether the company’s methods for developing estimates are appropriate and have been consistently applied for selected
disclosures. Our procedures did not include testing the data on which the estimates are based or separately developing our
own estimates against which to evaluate the company’s estimates.
• Analysing, on a limited sample basis, relevant internal and external documentation at the level of the company (including
other entities or value chain from which the information may stem) for selected disclosures.
• Determining the nature and extent of the procedures to be performed for the group components. For this, the nature, extent
and/or risk profile of these components are decisive. Our procedures were performed centrally.
• Determining the nature and extent of the procedures to be performed for the locations. For this, the nature, extent and/or
risk profile of these locations are decisive. Based thereon, we selected the locations to visit. The (remote) visits to Aalborg
and Türkiye were aimed at, on a local level, validating source data and obtaining through inquiries a general understanding
of the control environment, processes and information relevant to the preparation of the indicators.
• Reading the other information in the annual report to identify material inconsistencies, if any, with the sustainability
statement.
• Considering whether the disclosures provided to address the reporting requirements provided for in the Taxonomy
Regulation for each of the environmental objectives, reconcile with the underlying records of the company and are
consistent or coherent with the sustainability statement, appear reasonable, in particular whether the eligible economic
activities meet the cumulative conditions to qualify as aligned and whether the technical criteria are met, and whether the
accompanying key performance indicators disclosures have been defined and calculated in accordance with the Taxonomy
reference framework, and comply with the reporting requirements provided for in the Taxonomy Regulation, including the
format in which the activities are presented.
• Reconciling the relevant financial information to the financial statements.
• Considering the overall presentation, structure and the balanced content of the sustainability statement, including the
reporting requirements provided for in the Taxonomy Regulation.
• Considering, based on our limited assurance procedures and evaluation of the assurance evidence obtained, whether the
sustainability statement as a whole, including the sustainability matters and disclosures, is clearly and adequately disclosed
in accordance with ESRS.
We communicate with the board of directors regarding, among other matters, the planned scope and timing of the
limited assurance engagement and significant findings that we identify during our limited assurance engagement.
Amsterdam, 13 March 2025
PricewaterhouseCoopers Accountants N.V.
Original has been signed by A.G.J. Gerritsen RA
Page 6 of 6
8156008B101B97A43B022024-12-318156008B101B97A43B022023-12-318156008B101B97A43B022024-01-012024-12-318156008B101B97A43B022023-01-012023-12-318156008B101B97A43B022023-12-31ifrs-full:IssuedCapitalMember8156008B101B97A43B022024-01-012024-12-31ifrs-full:IssuedCapitalMember8156008B101B97A43B022024-12-31ifrs-full:IssuedCapitalMember8156008B101B97A43B022023-12-31ifrs-full:SharePremiumMember8156008B101B97A43B022024-01-012024-12-31ifrs-full:SharePremiumMember8156008B101B97A43B022024-12-31ifrs-full:SharePremiumMember8156008B101B97A43B022023-12-31ifrs-full:StatutoryReserveMember8156008B101B97A43B022024-01-012024-12-31ifrs-full:StatutoryReserveMember8156008B101B97A43B022024-12-31ifrs-full:StatutoryReserveMember8156008B101B97A43B022023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember8156008B101B97A43B022024-01-012024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember8156008B101B97A43B022024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember8156008B101B97A43B022023-12-31ifrs-full:ReserveOfCashFlowHedgesMember8156008B101B97A43B022024-01-012024-12-31ifrs-full:ReserveOfCashFlowHedgesMember8156008B101B97A43B022024-12-31ifrs-full:ReserveOfCashFlowHedgesMember8156008B101B97A43B022023-12-31ifrs-full:RetainedEarningsExcludingProfitLossForReportingPeriodMember8156008B101B97A43B022024-01-012024-12-31ifrs-full:RetainedEarningsExcludingProfitLossForReportingPeriodMember8156008B101B97A43B022024-12-31ifrs-full:RetainedEarningsExcludingProfitLossForReportingPeriodMember8156008B101B97A43B022023-12-31ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember8156008B101B97A43B022024-01-012024-12-31ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember8156008B101B97A43B022024-12-31ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember8156008B101B97A43B022023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember8156008B101B97A43B022024-01-012024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember8156008B101B97A43B022024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember8156008B101B97A43B022023-12-31CEM:NonControllingInterestsRetainedEarningsProfitLossForReportingPeriodMember8156008B101B97A43B022024-01-012024-12-31CEM:NonControllingInterestsRetainedEarningsProfitLossForReportingPeriodMember8156008B101B97A43B022024-12-31CEM:NonControllingInterestsRetainedEarningsProfitLossForReportingPeriodMember8156008B101B97A43B022023-12-31CEM:NonControllingInterestsReservesMember8156008B101B97A43B022024-01-012024-12-31CEM:NonControllingInterestsReservesMember8156008B101B97A43B022024-12-31CEM:NonControllingInterestsReservesMember8156008B101B97A43B022023-12-31ifrs-full:NoncontrollingInterestsMember8156008B101B97A43B022024-01-012024-12-31ifrs-full:NoncontrollingInterestsMember8156008B101B97A43B022024-12-31ifrs-full:NoncontrollingInterestsMember8156008B101B97A43B022022-12-31ifrs-full:IssuedCapitalMember8156008B101B97A43B022023-01-012023-12-31ifrs-full:IssuedCapitalMember8156008B101B97A43B022022-12-31ifrs-full:SharePremiumMember8156008B101B97A43B022023-01-012023-12-31ifrs-full:SharePremiumMember8156008B101B97A43B022022-12-31ifrs-full:StatutoryReserveMember8156008B101B97A43B022023-01-012023-12-31ifrs-full:StatutoryReserveMember8156008B101B97A43B022022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember8156008B101B97A43B022023-01-012023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember8156008B101B97A43B022022-12-31ifrs-full:ReserveOfCashFlowHedgesMember8156008B101B97A43B022023-01-012023-12-31ifrs-full:ReserveOfCashFlowHedgesMember8156008B101B97A43B022022-12-31ifrs-full:RetainedEarningsExcludingProfitLossForReportingPeriodMember8156008B101B97A43B022023-01-012023-12-31ifrs-full:RetainedEarningsExcludingProfitLossForReportingPeriodMember8156008B101B97A43B022022-12-31ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember8156008B101B97A43B022023-01-012023-12-31ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember8156008B101B97A43B022022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember8156008B101B97A43B022023-01-012023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember8156008B101B97A43B022022-12-31CEM:NonControllingInterestsRetainedEarningsProfitLossForReportingPeriodMember8156008B101B97A43B022023-01-012023-12-31CEM:NonControllingInterestsRetainedEarningsProfitLossForReportingPeriodMember8156008B101B97A43B022022-12-31CEM:NonControllingInterestsReservesMember8156008B101B97A43B022023-01-012023-12-31CEM:NonControllingInterestsReservesMember8156008B101B97A43B022022-12-31ifrs-full:NoncontrollingInterestsMember8156008B101B97A43B022023-01-012023-12-31ifrs-full:NoncontrollingInterestsMember8156008B101B97A43B022022-12-31iso4217:EURiso4217:EURxbrli:shares