Heidelberg Materials Ag · XETR:HEI
Heidelberg Materials — FY2024 Earnings Presentation
36 slides from Heidelberg Materials's earnings presentation, Feb 25, 2025
Slide 1: Full Year 2024 Results
Full Year 2024 Results Dr Dominik von Achten - CEO René Aldach - CFO 25.02.2025
Slide 2: Another year of success & progress
Another year of success & progress Result and margin improvement continues: - RCO hits a record high of 3.2 €bn - EBITDA margin at 21.3%, within our target corridor of “20% to 22%” “Transformation Accelerator” initiative with 500 €m result contribution started, step change in Western European asset
Slide 3: Full year overview
Full year overview Solid operational result and strong financial performance Revenue EBITDA RCO Adjusted margin EPS 1 21.2 €bn 21.3 % 3.2 €bn €11.9 -2% LfL +116 bps +6% LfL +11% Free ROIC Shareholder Carbon cashflow return emissions 2 2.2 €bn 9.9% > 1 €bn 527 kg/tCM PY: 2.2 €bn PY: 10.3% PY: 877 €m
Slide 4: Strong EBITDA margin improvement continues
Full year overview Strong EBITDA margin improvement continues Europe North America Asia-Pacific Africa-Med-WA +385 bps -70 bps +23 bps +88 bps 26.5% 25.8% 25.1% 22.6% 19.7% 19.9% 18.2% 17.4% 2023 2024 2023 2024 2023 2024 2023 2024 Cement Aggregates Total Group EBITDA margin +212 bps 21.3% 22.0% +62
Slide 5: Transformation Accelerator: Taking the pole position for the future
Operational Excellence “Transformation Accelerator”: Taking the pole position for the future Cross-border network optimisation: • Measures on country business line level Expected result contribution of • Focus on cost synergies through standardisation and 500 €m by end of 2026 optimisation of busine
Slide 6: Portfolio optimisation (since 2024)
Strategy Acquisitions Portfolio optimisation (since 2024) Disposals Canada UK UK France Germany Stake acquired in Acquisition of Mick Acquisition of B&A Disposal of Tratel Acquisition of Sandkorn Envicore (SCM, Tech) George2 (Recycling) Group (Recycling) Group2 (Transport) (Transport) US East German
Slide 7: Operational result
Operational result
Slide 8: Q4 2024: Margin improvement continues
Operational result Q4 2024: Margin improvement continues Revenue [€m] Operating EBITDA [€m] Operating EBITDA Margin Operating EBIT (RCO) [€m] +312 €m +141 €m +123 €m +138 bps LfL: +2% LfL: +9% LfL: +15% 5,406 1,219 22.6% 877 5,094 21.2% 1,079 754 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 20
Slide 9: FY 2024: Result improvement despite volume pressure
Operational result FY 2024: Result improvement despite volume pressure Revenue [€m] Operating EBITDA [€m] Operating EBITDA Margin Operating EBIT (RCO) [€m] -21 €m +241 €m +182 €m +116 bps LfL: -2% LfL: +4% LfL: +6% 21,178 21,156 4,499 21.3% 3,204 4,258 20.1% 3,022 FY 2023 FY 2024 FY 2023 FY 2024 FY
Slide 10: Q4 2024: Operating EBIT (RCO) bridge
Operational result Q4 2024: Operating EBIT (RCO) bridge [€m] +113 €m (LfL: +15%) 13 871 7 877 107 754 4 758 -7 Q4 2023 RCO Currency Q4 2023 LfL RCO Net volume Price over cost Depreciation Q4 2024 LfL RCO Scope Q4 2024 RCO & Amort. 25.02.2025 Full Year 2024 Results | Dr Dominik von Achten, René Aldac
Slide 11: FY 2024: Operating EBIT (RCO) bridge
Operational result FY 2024: Operating EBIT (RCO) bridge [€m] +167 €m (LfL: +6%) 54 3,204 536 -11 3,150 3,022 -40 2,983 -358 FY 2023 RCO Currency FY 2023 LfL RCO Net volume Price over cost Depreciation FY 2024 LfL RCO Scope FY 2024 RCO & Amort. 25.02.2025 Full Year 2024 Results | Dr Dominik von Achte
Slide 12: Europe
Operational result Europe FY 2023 FY 2024 -99 €m -23 €m LfL: -3% +23 bps LfL: +21% 9,566 9,467 19.7% 19.9% 1,367 1,344 Revenue [€m] EBITDA Margin RCO [€m] +249 bps -109 bps 26.1% 28.5% 20.3% 19.2% Cement EBITDA Margin Aggregates EBITDA Margin 25.02.2025 Full Year 2024 Results | Dr Dominik von Achten
Slide 13: North America
Operational result North America FY 2023 FY 2024 +92 €m +194 €m +385 bps LfL: -1% LfL: +21% 5,219 5,311 26.5% 22.6% 1,049 856 Revenue [€m] EBITDA Margin RCO [€m] +380 bps +407 bps 30.0% 32.3% 26.2% 28.2% Cement EBITDA Margin Aggregates EBITDA Margin 25.02.2025 Full Year 2024 Results | Dr Dominik von
Slide 14: Asia – Pacific
Operational result Asia – Pacific FY 2023 FY 2024 -150 €m +6 €m LfL: -5% +88 bps LfL: -9% 3,705 3,555 17.4% 18.2% 399 405 Revenue [€m] EBITDA Margin RCO [€m] +100 bps -216 bps 15.9% 16.9% 23.3% 21.1% Cement EBITDA Margin Aggregates EBITDA Margin 25.02.2025 Full Year 2024 Results | Dr Dominik von Ach
Slide 15: Africa – Mediterranean – Western Asia
Operational result Africa – Mediterranean – Western Asia FY 2023 FY 2024 +5 €m -16 €m LfL: +5% -70 bps LfL: +2% 2,289 2,295 25.8% 25.1% 466 450 Revenue [€m] EBITDA Margin RCO [€m] -24 bps 26.4% 26.1% Cement EBITDA Margin 25.02.2025 Full Year 2024 Results | Dr Dominik von Achten, René Aldach
Slide 16: Financial highlights
Financial highlights Full Year 2024 Results | Dr Dominik von Achten, René Aldach 25.02.2025
Slide 17: Financial highlights
Financial highlights Adjusted EPS increases by 11% to 11.9 € 1 Free cash flow at 2.2 €bn Leverage slightly down from 1.24x to 1.18x ROIC at 9.9%, despite significant negative impact from currency and timing effects of acquisitions Two Green Bonds are placed during the year with a total amount of 1.2
Slide 18: Adjusted EPS continues to increase
Financial highlights Adjusted EPS continues to increase Income Statement [€m] FY 2023 FY 2024 Delta Key items below RCO Revenue 21,178 21,156 -21 Additional ordinary result: RCOBD (Operating EBITDA) 4,258 4,499 241 2024: -324 €m due to impairments Depreciation and amortisation -1,236 -1,295 -59 and
Slide 19: EPS growth continues with 15% CAGR
Financial highlights EPS growth continues with impressive 15% CAGR Adjusted earnings per share 1) 11.9 € +15% 10.8 € 9.5 € 7.9 € 6.9 € 2020 2021 2022 2023 2024 1 Clean EPS: Figures adjusted for additional ordinary result. In 2020 one-off deferred tax income related to impairments, in 2021 US West as
Slide 20: Solid free cashflow generation
Financial highlights Solid free cashflow generation Free cash flow [€m] FY 2023 FY 2024 Delta Free cash flow drivers Operating EBITDA 4,258 4,499 241 Working capital: Change in working capital -205 -110 95 Same level as prior year Net interest -163 -170 -7 Net interest: Taxes paid -522 -684 -161 Sta
Slide 21: Net debt development
Financial highlights Net debt development [€m] 5,294 375 5,293 350 114 546 783 Shareholder return: -2,169 1,010 €m Net debt Dec 2023 FCF Net growth CapEx Group Dividends Minority Dividends Share buyback Currency/other 1 Net debt Dec 2024 1 Includes mainly consolidation impacts on Net Debt from acqui
Slide 22: Sustainability highlights
Sustainability highlights Further CO2 reduction: Specific CO2 emissions reduced by -1.3% to 527 kg CO2/t of cementitious material in 2024 Increasing share of Sustainable revenue (CEM): from 39.5% to 43.3% Pioneering the transformation to Net Zero: Providing the first net-zero carbon-captured cement
Slide 23: Significant progress in all sustainability KPIs
Sustainability Significant progress in all sustainability KPIs Specific net CO2 emissions [kg CO /t cementitious material] 2 Alternative fuel rate -1.3% 576 45.0% 534 527 +130 bps 29.9% 31.2% 400 25.7% 2020 2023 2024 2030 2020 2023 2024 2030 Clinker incorporation factor Sustainable revenue CEM 74.3%
Slide 24: evoBuild TernoCem: Turning an existing asset into an ultra low-carbon plant
Sustainability evoBuild TernoCem: Turning an existing asset into an ultra low-carbon plant Combining profitability, growth and carbon reduction: Emissions from TernoCem, a new cement type, with a significantly reduced calcination process carbon footprint - up to 50% less CO2 Improved use of material
Slide 25: Outlook
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Slide 26: 2025 market overview
Business Outlook & Guidance 2025 market overview North America: Europe: • Infrastructure demand growth expected, driven by Infrastructure • Demand recovery -which is Investment and Jobs Act (IIJA) currently visible in most markets- and state Department of expected to continue throughout Transportati
Slide 27: Guidance
Business Outlook & Guidance Guidance Original 2024 Target & Achievement 2025 Target RCO 3.00 to 3.30 €bn 3.20 €bn 3.25 to 3.55 €bn ROIC Around 10% 9.9 % Around 10% Slight reduction: CO2 emission (2023: 534 kg/tCM)1) 527 kg/tCM1) Slight reduction CapEx Net Around 1.1 €bn 1.1 €bn Around 1.2 €bn In lin
Slide 28: Another year of success & progress
Another year of success & progress Result and margin improvement continues: - RCO hits a record high of 3.2 €bn - EBITDA margin at 21.3%, within our target corridor of “20% to 22%” “Transformation Accelerator” initiative with 500 €m result contribution started, step change in Western European asset
Slide 29: Appendix
Appendix
Slide 30: Scope & currency impacts
Appendix Scope & currency impacts Revenue Operating EBITDA Operating EBIT (RCO) Scope & currency Q4 2024 [€m] Scope Currency Scope Currency Scope Currency Europe 52 18 9 3 -11 2 North America 66 5 8 1 5 1 Asia – Pacific 33 3 15 0 11 0 Africa – Med. - Western Asia 29 -2 4 0 2 1 Group Service & Other
Slide 31: Operating result
Appendix Operating result Revenue Operating EBITDA Operating EBITDA Margin Operating EBIT (RCO) Operating result Q4 2024 [€m] Q4 23 Q4 24 Change LfL Q4 23 Q4 24 Change LfL Q423 Q4 24 Change LfL Q4 23 Q4 24 Change LfL Europe 2,275 2,373 4.3% 1.2% 425 487 14.6% 11.7% 18.7% 20.5% +185 bps +192 bps 295
Slide 32: Operating result – Business lines
Appendix Operating result – Business lines Year to Date Figures Revenue Operating EBITDA Operating EBITDA Margin Business line CEMENT [€m] FY 23 FY 24 FY 23 FY 24 FY 23 FY 24 Europe 5,056 4,901 -3.1% 1,317 1,399 6.2% 26.1% 28.5% +249 bps North America 2,196 2,243 2.1% 577 674 16.9% 26.2% 30.0% +380
Slide 33: 2023 restated figures
Appendix 2023 restated figures 1 Operating EBITDA [€m] Q1 23 Q2 23 H1 23 Q3 23 9M 23 Q4 23 FY 23 Q1 23 Q2 23 H1 23 Q3 23 9M 23 Q4 23 FY 23 Europe 255 610 864 593 1,458 425 1,883 11.3% 23.5% 17.8% 24.3% 20.0% 18.7% 19.7% North America 76 332 409 448 857 325 1,181 7.4% 23.7% 16.8% 29.5% 21.7% 25.7% 22
Slide 34: Financial Calendar & IR Contacts
Financial Calendar & IR Contacts Upcoming events: • 08.05.2025: Q1 Trading Update • 15.05.2025: Annual General Meeting • 27/28.05.2025: CMD in Brevik • 31.07.2025: Half Year Results • 06.11.2025: Q3 Trading Update Contact: Investor Relations: ir-info@heidelbergmaterials.com Press & Media: info@heid
Slide 35: Disclaimer
Disclaimer Unless otherwise indicated, the financial information provided herein has been prepared under International Financial Reporting Standards (IFRS). All the figures included in this presentation are preliminary, unaudited and subject to revision upon completion of the Company's closing and a
Slide 36: Heidelberg Materials
Heidelberg Materials