Heidelberg Materials Ag · XETR:HEI
Heidelberg Materials — Q3 2023 Earnings Presentation
24 slides from Heidelberg Materials's earnings presentation, Nov 2, 2023
Slide 1: Q3 2023 Trading Update
Q3 2023 Trading Q3 2023 TradingUpdate Update 2 November 2023 2 November 2023 DrDominik Dr Dominik von von Achten Achten – CEO – CEO René René Aldach Aldach – CFO - CFO
Slide 2: Key messages Q3 2023
Key messages Q3 2023 • Strong operational performance*: Revenue up +2%; EBITDA up +25%; RCO up +33% • Solid margin improvement in all regions, driven by positive price over cost which compensates volume pressure • Free cash flow at around 2 €bn** • 1 €bn share buyback program just completed. Shares
Slide 3: Q3 2023 operational overview
Operational result Q3 2023 operational overview Revenue [€m] Operating EBITDA [€m] Operating EBITDA Margin Operating EBIT (RCO) [€m] +553 €m -241 €m +217 €m +199 €m +211 €m +206 €m LfL: LfL: LfL: LfL: +157 bps +443 bps LfL: LfL: +15.6% +1.6% +20.6% +24.7% +27.9% +32.9% 5,852 5,611 1,393 24.8% 1,080
Slide 4: 9M 2023 operational overview
Operational result 9M 2023 operational overview Revenue [€m] Operating EBITDA [€m] Operating EBITDA Margin Operating EBIT (RCO) [€m] +2,087 €m +281 €m +283 €m +461 €m +316 €m +487 €m LfL: LfL: LfL: LfL: -92 bps +257 bps LfL: LfL: +18.7% +6.0% +11.8% +22.8% +19.9% +35.3% 15,802 16,083 3,179 20.7% 2,2
Slide 5: Q3 2023 Operating EBIT (RCO) bridge
Operational result Q3 2023 Operating EBIT (RCO) bridge [€m] +270 €m (+33%) 453 -7 1,090 -10 1,080 874 -54 821 -176 Q3 2022 RCO Currency Q3 2022 Net volume Price Depreciation Q3 2023 Scope Q3 2023 RCO LfL RCO over cost LfL RCO 5 02/11/2023 Q3 2023 Trading update | Dr Dominik von Achten, René Aldach
Slide 6: 9M 2023 Operating EBIT (RCO) bridge
Operational result 9M 2023 Operating EBIT (RCO) bridge [€m] +597 €m (+35%) 973 5 2,289 -20 2,269 1,782 -90 1,692 -381 9M 2022 RCO Currency 9M 2022 Net volume Price Depreciation 9M 2023 Scope 9M 2023 RCO LfL RCO over cost LfL RCO 6 02/11/2023 Q3 2023 Trading update | Dr Dominik von Achten, René Aldac
Slide 7: North America
Operational result North America Q3 Q3 Q3 2021 2022 2023 -61 €m +37 €m +324 bps LfL: +1% LfL: +17% 1,583 1,522 363 23.9% 1,391 326 20.9% 20.6% 291 Revenue [€m] RCO [€m] RCO Margin • Strong result development despite lower demand, especially in residential sector • Positive pricing and continuous foc
Slide 8: Western & Southern Europe
Operational result Western & Southern Europe Q3 Q3 Q3 2021 2022 2023 -3 €m +104 €m +646 bps LfL: 0% LfL: +62% 1,619 1,616 277 17.2% 1,418 177 12.5% 173 10.7% Revenue [€m] RCO [€m] RCO Margin • Residential sector continues to be weak, visible in demand decline over the entire region • Effective cost
Slide 9: Northern & Eastern Europe - Central Asia
Operational result Northern & Eastern Europe - Central Asia Q3 Q3 Q3 2021 2022 2023 -21 €m +42 €m +465 bps LfL: +4% LfL: +36% 1,001 980 230 23.2% 23.5% 859 200 189 18.9% Revenue [€m] RCO [€m] RCO Margin • Revenue decline in absolute terms caused by demand pressure and currency impact • RCO improveme
Slide 10: Asia - Pacific
Operational result Asia - Pacific Q3 Q3 Q3 2021 2022 2023 -29 €m +33 €m LfL: +7% LfL: +54% +375 bps 978 949 112 118 14.1% 792 12.4% 85 8.7% Revenue [€m] RCO [€m] RCO Margin • Recovery continues in Asia, particularly in Australia and Indonesia • Solid increase in region RCO and margin, driven by mode
Slide 11: Africa – Eastern Mediterranean Basin
Operational result Africa – Eastern Mediterranean Basin Q3 Q3 Q3 2021 2022 2023 -75 €m -4 €m +212 bps LfL: +7% LfL: +17% 539 101 96 20.8% 486 464 90 18.6% 18.7% Revenue [€m] RCO [€m] RCO Margin • LfL revenue increases +7%, despite a difficult comparison base driven by very strong demand in prior yea
Slide 12: Financial highlights
Financial highlights • Last 12 months free cash flow at around 2 €bn, with cash conversion rate of ~50% • Net CapEx below 1.1 €bn*, disciplined approach continues • Net debt reduced by 0.6 €bn**; leverage 0.35x below prior year, at a very comfortable level • 1 €bn share buyback program completed. Sh
Slide 13: Solid improvement in key financial figures
Financial result Solid improvement in key financial figures Last 12 months free cashflow Net debt Leverage 1.3 €bn -0.1x -0.7 €bn -0.4x -0.9 €bn 2.1 €bn -0.6 €bn 1.84x 1.75x 7.1 €bn 1.7 €bn 6.5 €bn 5.9 €bn 1.39x 0.8 €bn Sep 2021 Sep 2022 Sep 2023 Sep 2021 Sep 2022 Sep 2023 Sep 2021 Sep 2022 Sep 2023
Slide 14: Committed to our announced cash allocation strategy
Financial result Committed to our announced cash allocation strategy What we promised (2022 CMD)… What we delivered so far… Cash allocation 2018-2021 Cash allocation 2022 - 2025 Focus was mainly on debt payback Focus on shareholder return & growth Bolt-on & growth CapEx * 19% Clear commitments uncha
Slide 15: Continuous focus on portfolio optimization – Simplify and Grow
Strategy Continuous focus on portfolio optimization – Simplify and Grow Clearly defined M&A framework Strategic rationale Financial rationale Simplify • Right-size the business • Grow in focus markets within • Synergy potential • Reduce complexity our portfolio ~2.5 €bn • To be financed through disp
Slide 16: Sustainability highlights
Sustainability highlights • Continuous good progress in CO2 reduction: Well on track with our roadmap towards 400kg CO2/CEM in 2030 • ANRAV project: Construction start for a pilot installation of the first full-chain CCUS project in Eastern Europe covering CCUS incl. transport • GeZero project: Firs
Slide 17: Guidance further upgraded
Business outlook & key takeaways Guidance further upgraded Business outlook 2023 Guidance 2023 LfL revenue growth* Increase in infrastructure projects and parts of non-residential expected to RCO between 2.85-3.00 €bn partly offset slowdown in residential (previously: between 2.70-2.90 €bn) sector C
Slide 18: Key messages Q3 2023
Key messages Q3 2023 • Strong operational performance*: Revenue up +2%; EBITDA up +25%; RCO up +33% • Solid margin improvement in all regions, driven by positive price over cost which compensates volume pressure • Free cash flow at around 2 €bn** • 1 €bn share buyback program just completed. Shares
Slide 19: Appendix
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Slide 20: Currency and scope impacts
Appendix Currency and scope impacts Operating EBITDA Operating EBIT (RCO) Scope & Currency Revenue (€m) (€m) (€m) Q3 2023 Scope Currency Scope Currency Scope Currency North America 29 -100 3 -20 -2 -13 West / South Europe 7 -3 0 -1 -1 -1 North / East Europe 0 -61 -8 -16 -8 -13 Asia Pacific 0 -95 0 -
Slide 21: Operational result
Appendix Operational result Operating Result Revenue Operating EBITDA Operating EBITDA Margin Operating EBIT (RCO) Quarter [€m] Q3 22 Q3 23 Change LfL Q3 22 Q3 23 Change LfL Q3 22 Q3 23 Change LfL Q3 22 Q3 23 Change LfL North America 1,583 1,522 -3.9% 0.7% 412 448 8.9% 13.8% 26.0% 29.5% +345 bps +34
Slide 22: Financial Calendar & IR Contacts
Financial Calendar & IR Contacts Upcoming events: • 22 February 2024 - Full Year Results 2023 • 21 March 2024 - Annual and Sustainability Report 2023 • 7 May 2024 – Q1 2024 Trading Update • 16 May 2024 - Annual General Meeting • 30 July 2024 - Half-Year Results • 7 November 2024 – Q3 2024 Trading Up
Slide 23: 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
Slide 24: Heidelberg Materials
Heidelberg Materials