Breedon Group (BREE) CMD 2024 summary

Strategic progress and business model

• Achieved consistent top and bottom-line growth despite declining market volumes, supported by a vertically integrated, asset-backed model across GB, Ireland, and the U.S.

• Strategy has evolved to 'expand and improve,' focusing on M&A, organic growth, operational excellence, and innovation, with sustainability and disciplined capital allocation as core lenses.

• Transitioned from AIM to the Main Market, reflecting increased scale and maturity.

• Strong employee engagement, with an 80% engagement score and a culture emphasizing empowerment and continuous improvement.

• Maintains strong local market positions with over 350 sites and significant reserves, supporting long-term growth in infrastructure and housing markets.

Growth strategy and business evolution

• Breedon 3.0 strategy focuses on expanding, improving, and scaling up, especially in the US market, with a virtuous circle of enhancement guiding business evolution.

• Updated strategic priorities include scaling up the US business, targeted vertical integration, and strategic aggregates expansion in all operating regions.

• Organic growth is complemented by a robust M&A track record, with over 25 deals and more than £1bn cumulative spend to date.

• BMC serves as the US platform, with ambitions to build out from Missouri and pursue bolt-on and larger transactions, aiming for scale equivalent to GB and Ireland over the next decade.

• Breedon aims to at least double in size over the next decade, driven by its three-platform strategy and disciplined execution.

Sustainability and upgraded targets

• Achieved a 24% reduction in gross carbon intensity per ton of cementitious product since 2005; new SBTi-validated targets aim for a 23.3% absolute reduction in Scope 1, 2, and key Scope 3 emissions by 2030 from a 2022 baseline.

• New social value target: generate £500 million of social value by 2030, shifting from people impacted to economic value delivered.

• By 2030, aim for 50% of downstream product sales revenue from the Breedon Balance sustainable product range, with stringent qualifying criteria.

• Sustainability framework is built on three pillars: Planet (carbon reduction, resource use), People (community impact, workforce development), and Places (sustainable products and innovation).

• Enhanced transparency and reporting, with improved external ratings (AA by MSCI, Bronze by EcoVadis, CDP Climate Change score of B) and broader disclosures.