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HeidelbergCement Announces New Medium-term Financial Targets - Quick Facts

HeidelbergCement (HDELY.PK) said, by 2025, the company targets to increase its EBITDA margin by 300 basis points to 22%. The company plans to achieve a return on invested capital (ROIC) of clearly above 8% by 2025. For the North America Group area, the company is adopting a package of measures with the aim of increasing the margin across all business units by 400-500 basis points. Additionally, the Group is further simplifying its administrative structures.

By 2025, HeidelbergCement aims to reduce specific net CO2 emissions to below 525 kg per tonne of cementitious material. This figure corresponds to a reduction of 30% compared to 1990 and had previously only been targeted for 2030.

HeidelbergCement noted that the company is gradually further reducing net debt. The target corridor for net debt is 1.5-2.0 times the result from current operations before depreciation and amortisation.

HeidelbergCement stated that it is still not possible to estimate reliably the full impact of the Corona crisis on results in 2020. The company plans to continue its progressive dividend policy after the Corona crisis.

"Even though sales volumes continue to decline in a difficult environment, we had a very good start in the third quarter. Our results in July and August were significantly higher than in the respective months of the previous year. The basis for this were in particular our cost savings and stable prices," said Dominik von Achten, CEO.

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