Cementir Holding N.v. · MIL:CEM
Cementir — Non-Deal Roadshow (June 2019)
31 slides from Cementir's roadshow presentation, Jun 18, 2019
Slide 1: Cementir Holding Group presentation
Cementir Holding Group presentation June 18th, 2019 Roadshow | London, 18 June 2019
Slide 2: Group Highlights
Group Highlights > 1 \ a ‘on f Concretely Dynamic ~ cementirholding (wr
Slide 3: Cementir at a glance
Cementir at a glance € 1.2 BN 3,083 11% ROCE Annual Sales Employees € 2.1 BN 13.1 Mtons 20% share* Total Assets White Cement globally Cement Capacity Data as of December 31st, 2018 * Excluding «off-white» and lower quality Asian products 3
Slide 4: Cementir Industrial Footprint
Cementir Industrial Footprint Plants Cement plants: 11 Terminals: 31 RMC plants: 105 Quarries: 11 Precast products plants: 1 Waste management facilities: 3 Sales / Capacity Grey cement capacity: 9.8 mt White cement capacity: 3.3 mt Grey cement sales: 7.3 mt White cement sales: 2.5 mt Grey cement pla
Slide 5: Cementir operates in five business segments
Cementir operates in five business segments Vertical integration in countries with grey cement presence GREY CEMENT WHITE CEMENT READY-MIXED CONCRETE AGGREGATES WASTE / OTHER Volumes sold (mt) Volumes sold (mt) Volumes sold Volumes sold (mt) Waste processed (mm3) (mt) 7.9 8.0 2.5 7.3 2.2 2.3 4.9 4.9
Slide 6: Clear repositioning strategy over the last years
Clear repositioning strategy over the last 2 years Reinforced global leadership in white cement 2018 EBITDA breakdown (full consolidation of LWCC in US) Asia Pacific Other More international and diversified geographic 8% 1% footprint (sale of 100% of Italian assets) Turkey & Egypt Unique vertically
Slide 7: Strong M&A track record
Strong M&A track record Since 2001 over EUR 1.7 billion invested with no recourse to shareholders (M€) 600 254 312 152 112 125 87 -315 2001 2004 2005 2006 lug-16 ott-16 gen-18 mar-18 2001 - Cimentas AS and Cimbeton AS Jul. 2016 - Sacci Entered the Turkish cement market with 2 plants Cement and ready
Slide 8: White Cement: unique competitive position
White Cement: unique competitive position 3.3 Mt 2.5 Mt White cement volumes sold Cement Capacity in 2018 Global leadership in white cement Local leadership #1 in USA, Continental Europe, and production Australia and South East Asia Leader in global trading flows 27% Share of Global By 2020, out of
Slide 9: White cement global consumption trends
White cement global consumption trends Eastern Europe Eastern CAGR 3.4% Europe 6 5 White cement belt 4 CAGR 1.0% 3 2 Western 1.3 1 Western 1.2 1.1 1.3 Europe 0 Europe 2018 2017 2023 2022 China CAGR CAGR 1.4% 6.0 1.0% 5.0 CAGR 2.0% China 4.0 6 3.0 North 2.0 5 5.1 5.7 North America 1.0 2.4 2.0 2.5 2.1
Slide 10: Sustainability is a key pillar of our strategy
Sustainability is a key pillar of our strategy CO2 emissions reduction is strategically important Regulatory framework Main Cementir Actions From 2021 CO2 emissions targets shall be reduced Heat-recovery in Aalborg (Denmark) by 2.2% annually by 2030 Most of excess heat is recovered and supplied to t
Slide 11: Developing innovative solutions
Developing innovative solutions Ultra-high Glass Fiber 3D Concrete Magnetic Concrete Performance Reinforced FutureCEMTM printing mix Concrete (UHPC) Concrete (GFRC) Ready-to-use, self- Ready-to-use, high Ready-to-use, high Sustainable patented solution compacting RMC products performance mortar perf
Slide 12: 2018 Results by geography
2018 Results by geography 12
Slide 13: Nordic & Baltic
Nordic & Baltic • Denmark − Domestic grey cement volumes down -3% due to harsh winter, the 43% 50% completion of large projects and a muted market growth − White cement exports declined by +2%; grey cement export grew by +11% Share of Share of − Ready-mix concrete volumes down -3% due to Metro proje
Slide 14: Belgium and France
Belgium and France (1) • Belgium / France − Dynamic construction sector with significant increase in new 19% 23% housing permits and public works benefitting from the main road network infrastructure projects Share of Share of − Cement and clinker volumes increased by 2% with prices flat 2018 Group
Slide 15: North America
North America 7% 9% • United States − Acquisition of an additional 38.75% stake in Lehigh White Cement Company, completed on 29 March 2018. Total shareholding of 63.25%. Line-by-line consolidation from Q2 Share of Share of − Like-for-Like volumes up 7%, with prices flat/down 2018 Group Revenue 2018
Slide 16: Turkey and Egypt
Turkey and Egypt (1) • Turkey 11% − Cement volumes dropped by -17.5% with a strong slowdown in 16% H2 linked to currency crisis in the summer. Domestic cement prices up considerably due to high inflation − RMC volumes increase by +9% with local currency prices up and Share of Share of the impact of
Slide 17: Asia Pacific
Asia Pacific 7% 8% • China − Cement volumes up by 5,5%, prices slightly up − Exports, not significant, are mainly directed to South Korea, Hong Kong and Taiwan − Good cost control helped EBITDA progression Share of Share of 2018 Group Revenue 2018 Group Ebitda • Malaysia − White cement and clinker v
Slide 18: 2018 Full Year results highlights
2018 Full Year results highlights EUR million 1.140,0 1.196,2 • Revenues rose by 4.9% to a record high of 1,196.2 M€ 1200 including 104.3 M€ from LWCC consolidation from Q2/2018 1000 − Like-for-like Revenue declined by 4.2% due to TRY 800 543,2 devaluation and difficult trading in Turkey and Egypt 6
Slide 19: 2018 Cash Flow bridge
2018 Cash Flow bridge Excluding non-recurring activities, the business generated > 91M€ of Free Cash Flow in 2018 EUR million -287.9 (1) Net Financial Position improved by almost 288 M€ due to: 315 M€ cash inflow from Cementir Italia sale, partially offset by 87.7 M€ paid for LWCC stake, strong oper
Slide 20: High Free Cash Flow conversion rate
High Free Cash Flow conversion rate Cash flow from operating activities, Free Cash Flow (M€) and FCF conversion rate (%) 300 50% 45% 39,9% 250 38,6% 37,0% 40% 33,6% 33,4% 35% 200 28,2% 30% 150 25% 158 159 157 130 131 20% 15,8% 127 100 15% 99 91 77 10% 50 69 61 61 45 05% 22 0 00% 2012 2013 2014 2015
Slide 21: Q1 2019 Results and Guidance
Q1 2019 Results and Guidance 21
Slide 22: 2019 First Quarter results highlights
2019 First Quarter results highlights Revenue rose by 9.1% to 264.4 M€ including 33 M€ from LWCC consolidation ▪ Like-for-like Revenue declined by 4.5% due to TRY devaluation and difficult trading in Turkey ▪ At constant FX, revenue would have been 268.1M€ (+1.4%) EBITDA increased by 39.7% to 33.7 M
Slide 23: Consolidated income statement
Consolidated income statement (EUR million) Q1 2019 Q1 2018 Chg % REV EN U E F ROM SA LES A N D SERV ICES 264.4 242.3 9.1% Change in inventories 2.9 4.1 (28.5%) Other revenue 4.4 5.8 (25.5%) TOTA L OPERA TIN G REV EN U E 271.7 252.2 7.7% Raw materials costs (105.5) (102.9) 2.5% Personnel costs (47.5
Slide 24: 2019 Guidance & IFRS 16 Impact
2019 Guidance & IFRS 16 Impact Eur M EBITDA NFP 250 2019 Revenues to be ~ Eur 1.25 BN 200 2019 EBITDA ~ Eur 250-260 M 150 Including Eur 23 M of IFRS 16 impact and 100 TRY/EUR exchange rate of ~ 7 50 0 2019 NFP around Eur 245 M 2019 2019 (IFRS 16) Including Eur 80 M of IFRS 16 impact 2019 Capex ~ Eur
Slide 25: Appendix
Appendix ‘on ( Concretely Dynamic © cementirholding (wr
Slide 26: Reclassified Balance sheet
Reclassified Balance sheet EUR million CAPITAL EMPLOYED 31/12/2018 31/12/2017 NON CURRENT ASSETS & LIABILITIES Tangible, intangible and financial assets 1,462.4 1,354.9 Deferred taxes assets/ liabilities (98.5) (93.8) Other non current assets/ liabilities (72.8) (63.6) TOTAL NON CURRENT ASSETS & LIA
Slide 27: Consolidated income statement
Consolidated income statement * Change EUR (EURmillion million) 2018 2017 % REVENUE FRO M SALES AND SERVICES 1 ,1 9 6 .2 1 ,1 4 0 .0 4 .9 % Change in inventories 12.4 0.6 1886.8% Other revenue 31.1 29.4 5.7% TO TAL O P ERATING REVENUE 1 ,2 3 9 .7 1 ,1 7 0 .0 6 .0 % Raw materials costs (479.3) (444.2
Slide 28: IFRS 16 Impact on 2019 main figures
IFRS 16 Impact on 2019 main figures − Cementir has applied IFRS 16 since January 2019, with impacts on the financial statements EBITDA 23 M€ − The present value of the future operating lease payments will be recognized as right-of-use-assets and interest bearing liabilities in the balance sheet. Lea
Slide 29: Turkey and Egypt historical figures
Turkey and Egypt historical figures Turkey– cement historical consumption (Mt)1 Turkey Egypt Grey cement plants (4) White cement plant (1) RMC plants Waste Turkey – EBITDA evolution €M Egypt – EBITDA evolution €M PEAK PEAK 1 Source: Turkish Cement Manufacturers Association (TÇMB). 29
Slide 30: White vs. grey cement
White vs. grey cement White Cement Grey Cement Special / «Niche» product «Commodity» like Consumption mainly driven by renovation and Consumption mainly driven by infrastructure & restructuring or specific applications in residential/commercial residential/commercial. Widespread presence of basic ra
Slide 31: Disclaimer and Other information
Disclaimer and Other information •This presentation has been prepared by and is the sole responsibility of Cementir Holding S.p.A. (the Investor Relations: “Company”) for the sole purpose described herein. In no case may it or any other statement (oral or otherwise) made at any time in connection he