EUROPEAN EQUITIES
R-co 4Change Net Zero Equity Euro: investment Cases
Wienerberger – Austrian company specialising in clay
EDP – Producer and distributor of electricity
One of the leading providers of ecological solutions for buildings:
Portuguese integrated utility with an exposure to renewable
(bricks, concrete, roofing, pipes, stoves…)
energy, gas and networks with an international footprint
Attractive geographical exposure to Eastern Europe (30%) and to the
Solid Transition profile •
1,5° targets validated by SBTi
United States (20%)
Net-zero by 2040
•
• 63% of its capex aligned with EU taxonomy
Improving transition profile for a high emitting player • Disclosure of scope 3 in 2025 • A soon to come formal SBTI commitment
Excessively penalized by its exposure on renewables particularly in
the US (c37% of 2025-2030 capex) largely integrated by the market.
A significant underperformance on a 3-year period leading to a
No more pricing of any further growth in the US by the investors
discounted valuation versus the sector (8x 2025 PE vs the average
Light Side Sector on 15x)
No benefit from the strong outperformance of integrated utilities
exposed to networks, also considered as a resilient and buyoant
Material recovery potential and operational leverage (volumes down
theme for coming years
31% vs 2021) •
Lower interest rates
• Strong exposure to residential market (80% of sales) of which new build (45%)
Public
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Source: Rothschild & Co Asset Management – 31/12/2024
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