A message from the President of the EMEA Region at Cemex
The end of the year prompts us to reflect on the past 12 months and plan for the future.
Firstly, I would like to begin by extending my sincere thanks to all of you for your daily commitment to our business and your successful efforts. Throughout 2023, we have collaborated closely to build on our 5 key priorities of Health & Safety, Customer Centricity, Future in Action, Innovation and Growth. In a world full of tension, conflict and political turmoil, my thoughts are with all colleagues affected and I greatly appreciate the resilience of our teams in Cemex EMEA.
I would like to thank you for how seriously you have taken safety. It is very important to me that our colleagues not only prioritise their own health & safety, but also always look out for those around them.
This year, many of our sites have achieved record zero LTI and TRI milestones while 95% of sites have been injury free so far in 2023. However, tragically we have recorded three fatalities during the year. I believe that our safety management systems will ultimately help to deliver our Zero 4 Life goals, so please continuously look after yourselves and your colleagues. This is our top priority and there is nothing more important than the safety and wellbeing of all of us at Cemex.
Customer satisfaction is of paramount importance to us. Our Net Promoter Score (NPS) surveys allow us to assess the level of customer satisfaction and determine areas for improvement. This year’s result of 67 is a signal to us that our products and service are very positively perceived by our customers. Each of you has contributed to the fact that Cemex is seen to be a proven and reliable partner – thank you and well done!
In addition to customer feedback, your opinion as colleagues on the workplace environment in Cemex is also very important to me. The information we obtain in this way allows us to respond effectively to the opportunities you identify and, as a result, become an increasingly better employer. We will analyse the results of this year’s WE’X survey soon and implement solutions that will ensure Cemex remains a good and desirable place to work. Our initial results show that our Employee Net Promoter score from the recent survey is the highest ever at 26.
As a further demonstration of our attractiveness as an employer, we recently celebrated the anniversaries of employees who have reached 10 years or more of service in our region, showing your dedication and commitment to our business. I was delighted to recently celebrate the anniversary of over 900 of you – congratulations and thank you very much for your long service to Cemex!
Moreover, we have made strong progress on our Future in Action goals during 2023. Our CO2 performance continues to improve with reductions across EMEA and Europe in particular is now approaching a 45% reduction. Our sales of Vertua have been ahead of target and we have extended the brand to include new attributes of recycled content, water management, design optimisation and energy efficiency. We launched a new Vertua ‘Supreme’ lower carbon cement with a minimum 55% CO2 reduction, representing 20% of our cement sales in Europe.
Cemex EMEA is leading in our global aspiration to become a net zero company by 2050 and I am both grateful and proud of your achievements.
Our innovation and growth agenda continues to develop with 166 projects in progress across EMEA. These projects will deliver $52m of additional EBITDA during 2023 and 2024, and we have a pipeline of further investments planned. My growth highlights from 2023 include several acquisitions – Kiesel in Germany, a mortars and adhesives technical leader; Shtang Recycling in Israel; a mortars plant in Madrid; and two quarries also located near to Madrid.
Aspects of our innovation programme are closely linked to Future in Action and I am pleased that we have now secured more than 15 EU funded projects to deliver on innovation, while many of our colleagues are now working on several carbon capture project funding applications for the EU Large Scale innovation fund, which will be submitted in early 2024.
Looking ahead to 2024, our priorities will remain the same. Safety and achieving zero accidents will remain our number 1 priority. While remaining optimistic for the mid-term, we do expect some market declines across our region for 2024. The key to our financial success during this time will centre around pricing, strong cost management, and optimisation of our free cash flow and I ask you all for your support in these measures. We hope for recovery during 2025 and we will remain focused on delivering on our priorities. We are very strongly positioned in our Region with the right teams of committed employees, excellent products and services, and a strong belief in continuous improvement.
Once again, I would like to thank every one of you for your professionalism, commitment and contribution to building a strong Cemex EMEA team.
I send my best wishes to you all that this coming year will be a good one for each of you individually, your families and for Cemex.