Heidelberg Materials Ag · XETR:HEI
Heidelberg Materials — Q3 2024 Earnings Presentation
23 slides from Heidelberg Materials's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 Trading Update
Q3 2024 Trading Update Dr Dominik von Achten - CEO René Aldach - CFO 07.11.2024
Slide 2: Good performance in Q3 2024, Outlook upgraded
Good performance in Q3 2024, Outlook upgraded Result and margin improvement continues: - Revenue 0%; EBITDA +3%; RCO +3% 1 - EBITDA margin improves by +39 bps Continued strong performance in North America supported by good returns from recent highly accretive M&A deals “Transformation Accelerator” i
Slide 3: Q3 2024: Margin improvement continues
Operational result Q3 2024: Margin improvement continues Revenue [€m] Operating EBITDA [€m] Operating EBITDA Margin Operating EBIT (RCO) [€m] +146 €m +59 €m +45 €m +39 bps LfL: 0% LfL: +3% LfL: +3% 5,611 5,756 1,393 1,451 24.8% 25.2% 1,080 1,124 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 202
Slide 4: 9M 2024: Result improvement despite volume pressure
Operational result 9M 2024: Result improvement despite volume pressure Revenue [€m] Operating EBITDA [€m] Operating EBITDA Margin Operating EBIT (RCO) [€m] -333 €m +101 €m +58 €m +106 bps LfL: -3% LfL: +2% LfL: +2% 3,179 3,280 20.8% 2,269 2,327 16,083 19.8% 15,750 9M 2023 9M 2024 9M 2023 9M 2024 9M
Slide 5: Q3 2024: Operating EBIT (RCO) bridge
Operational result Q3 2024: Operating EBIT (RCO) bridge [€m] +34 €m (+3%) 29 1,124 93 -3 1,095 1,080 -18 1,061 -57 Q3 2023 RCO Currency Q3 2023 LfL RCO Net volume Price over cost Depreciation Q3 2024 LfL RCO Scope Q3 2024 RCO & Amort. 5 07.11.2024 Q3 2024 Trading Update | Dr Dominik von Achten, René
Slide 6: 9M 2024: Operating EBIT (RCO) bridge
Operational result 9M 2024: Operating EBIT (RCO) bridge [€m] +54 €m (+2%) 429 48 2,327 -24 2,279 2,269 -44 2,225 -351 9M 2023 RCO Currency 9M 2023 LfL RCO Net volume Price over cost Depreciation 9M 2024 LfL RCO Scope 9M 2024 RCO & Amort. 6 07.11.2024 Q3 2024 Trading Update | Dr Dominik von Achten, R
Slide 7: Europe
Operational result Europe Q3 2023 Q3 2024 +77 €m -9 €m LfL: -2% LfL: -2% -91 bps 2,444 2,521 461 453 18.9% 18.0% Revenue [€m] RCO [€m] RCO Margin Demand recovery continues in Eastern Europe, declines begin to flatten out in certain key countries in Western Europe RCO continues at a high level, drive
Slide 8: North America
Operational result North America Q3 2023 Q3 2024 +50 €m +46 €m +214 bps LfL: +1% LfL: +11% 1,522 1,572 409 26.0% 363 23.9% Revenue [€m] RCO [€m] RCO Margin Favorable result development despite significant weather events and softer demand in Q3 2024 Margin improvement continues, driven by solid price
Slide 9: Asia – Pacific
Operational result Asia – Pacific Q3 2023 Q3 2024 -25 €m -2 €m LfL: -6% LfL: -15% +15 bps 949 924 118 116 12.4% 12.6% Revenue [€m] RCO [€m] RCO Margin Margin improvement despite challenging market environment which put pressure on demand and pricing Overall stable business development in Australia A
Slide 10: Africa – Mediterranean – Western Asia
Operational result Africa – Mediterranean – Western Asia Q3 2023 Q3 2024 +5 €m +6 €m LfL: +14% LfL: +9% +67 bps 601 606 143 148 23.8% 24.4% Revenue [€m] RCO [€m] RCO Margin Clear improvement in operational result in the quarter Positive pricing in local currencies and good cost management deliver ma
Slide 11: Transformation Accelerator: Taking the pole position for the future
Operational Excellence “Transformation Accelerator”: Taking the pole position for the future Pulling all levers to catalyse growth Addressing future opportunities and further improve operational excellence Cross-border Efficiencies Technical network across functions initiatives optimisation Each pil
Slide 12: Sustainability highlights
Sustainability highlights First in the industry to capture carbon: With the mechanical completion of our CCS-plant in Brevik, we will offer carbon-captured Net Zero cement and concrete in H1 2025 Launching decarbonisation project in Italy: Feed study to investigate potential source-to-sink CCS solut
Slide 13: Financial highlights
Financial highlights Adjusted EPS increases by 14% to 8.8 € 1 Last 12 months free cash flow at 2.0 €bn 2 Leverage at 1.5x, impacted by seasonality Second Green Bond is placed with an amount of 500 €m, following the first 700 €m placed in June First tranche of 1.2 €bn share buyback program with an am
Slide 14: Business Outlook & Guidance
Business Outlook & Guidance Guidance upgraded Key steering KPIs 2024 Target RCO 3.10 to 3.30 €bn (previously: 3.00 to 3.30 €bn) ROIC At around 10% CO2 emission (kg CO2/t cementitious Slight reduction material) 14 07.11.2024 Q3 2024 Trading Update | Dr Dominik von Achten, René Aldach
Slide 15: Good performance in Q3 2024, Outlook upgraded
Good performance in Q3 2024, Outlook upgraded Result and margin improvement continues: - Revenue 0%; EBITDA +3%; RCO +3% 1 - EBITDA margin improves by +39 bps Continued strong performance in North America supported by good returns from recent highly accretive M&A deals “Transformation Accelerator” i
Slide 16: Appendix
Appendix
Slide 17: Scope & currency impacts
Appendix Scope & currency impacts Revenue Operating EBITDA Operating EBIT (RCO) Scope & currency Q3 2024 [€m] Scope Currency Scope Currency Scope Currency Europe 99 15 4 2 -1 2 North America 55 -19 13 -4 9 -3 Asia – Pacific 40 -11 21 -2 18 -2 Africa – Med. - Western Asia 23 -67 5 -17 4 -16 Group Ser
Slide 18: Operating result
Appendix Operating result Revenue Operating EBITDA Operating EBITDA Margin Operating EBIT (RCO) Operating result Q3 2024 [€m] Q3 23 Q3 24 Change LfL Q3 23 Q3 24 Change LfL Q3 23 Q3 24 Change LfL Q3 23 Q3 24 Change LfL Europe 2,444 2,521 3.1% -1.5% 593 590 -0.5% -1.5% 24.3% 23.4% -85 bps +1 bps 461 4
Slide 19: Operating result – Business lines
Appendix Operating result – Business lines Year to Date Figures Revenue Operating EBITDA Operating EBITDA Margin Business line CEMENT [€m] 9M 23 9M 24 9M 23 9M 24 9M 23 9M 24 Europe 3,858 3,702 -4.1% 1,002 1,039 3.6% 26.0% 28.1% +208 bps North America 1,652 1,690 2.3% 414 491 18.8% 25.0% 29.1% +404
Slide 20: 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 21: Financial Calendar & IR Contacts
Financial Calendar & IR Contacts Upcoming events: • 25.02.2025: Full Year Results • 08.05.2025: Q1 Trading Update • 15.05.2025: Annual General Meeting • 31.07.2025: Half Year Results • 06.11.2025: Q3 Trading Update Contact: Investor Relations: ir-info@heidelbergmaterials.com Press & Media: info@hei
Slide 22: 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 23: Heidelberg Materials
Heidelberg Materials