Strategy on sustainable growth

Cementos Molins actively participates in the management of the companies that it integrates by the equity method, either jointly with another shareholder or by means of significant participation in their decision-making bodies.

The information included in this section of the report on economic and financial performance is based on the application of the criterion of proportionality in the integration method of its investees. For this purpose, the final percentage of the holding in each of them is considered. Cementos Molins thus considers that the management of the business and the way in which the results are analysed for decision-making purposes are adequately reflected. In line with the guidelines and recommendations of the ESMA (European Securities and Markets Authority), that strives to foster the usefulness and transparency of the Alternative Performance Measures included in the regulated information and any other data submitted by listed companies, in Annex II of this report we show a reconciliation of the figures indicated under this criterion with the financial statements as per the International Financial Reporting Standards (IFRS-EU).

Our sustainability policy has clearly defined four basic principles for Cementos Molins in economic, environmental and social terms:

• To secure the company’s competitiveness and long-term sustainable economic profitability.
• To minimise the environmental impact of all our companies’ and investees’ activities.
• To maximise the creation of shared value for the company’s stakeholders.
• To foster the development and improvement of quality of the local communities in which we operate and society in general.

The policy sets out the main lines of action, which are supervised and monitored by our governing bodies. They are responsible for implementing appropriate monitoring mechanisms to ensure compliance with the objectives and principles.

Our People strategy links the company’s purpose with people. Our team is a key part of the business, essential for generating value, which is why it is one of the essential pillars of our Strategic Plan.

From the company’s governing bodies, a series of responsibilities are structured around the promotion of the culture of leadership and excellence in all businesses and geographies. Through lines of action and commitments focused on guaranteeing the company’s competitiveness and our employees’ personal development, we promote continuous training, active participation in decision-making, talent management and fostering gender equality in all our activities.

Innovation in the building materials sector is a key element in achieving sustainable growth by finding efficient solutions that reduce our carbon footprint and improve the affordability of products. In an environment of technological transformation and increasing regulation, it is of utmost importance to streamline and digitalise industrial processes to remain at the forefront of the industry and reduce the impact on the entire value chain.

In 2022, we created a new innovation department which, together with the Sustainability Department and the Technical Department, focuses its objectives on seeking RDI solutions aimed at optimising the use of resources, reducing greenhouse gas emissions and analysing the viability of the most efficient technological solutions on the market. In this way we work holistically with:

• The business divisions, to focus on customers and the supply chain.
• The Corporate Technical Industrial Department, to coordinate the implementation of innovation initiatives in the manufacturing plants, according to their characteristics and needs.
• A number of technology centres, to analyse all those most innovative sustainability activities (carbon capture, storage and use, new materials other than conventional cements and concretes, etc.).
• Other companies in the industry and from other sectors, with common interests in any of the areas described above.

Efficiency is present in all our production processes and is the essential driving force to be a profitable, competitive and modern company. Greater efficiency allows us to adapt to a changing business environment and new market standards to pioneer more sustainable products and services.

The corporate Industrial Technical Department leads and manages the operational efficiency of all our businesses by monitoring operational parameters in collaboration with local teams, the cross-flow of best practices in this regard and the leadership of RDI investment proposals.

Through investment in research and development, we focus our efforts on leveraging resources to introduce new forms of technology that limit the impact on the environment. We thus implement a holistic production model that combines efficiency and sustainability. This model focuses on reducing the clinker factor, as well as reducing the thermal and electrical consumption of operations; modernising facilities and processes by making them more efficient and improving performance in raw material and energy consumption by reducing the clinker dosage in cement