Cementir Holding N.v. · MIL:CEM
Cementir — 7th MidCap CEO Conference 2024
35 slides from Cementir's conference presentation, Nov 19, 2024
Slide 1: 7th MidCap CEO Conference Investor Presentation
7th MidCap CEO Conference Investor Presentation 19 November 2024 7th MidCap CEO Conference | Paris, 19 November 2024
Slide 2: Agenda
Agenda 3 2023 Group Highlights 3 9 ESG strategy 9 18 2024 First nine months results and 2024 Guidance 18 27 Appendix 27 2
Slide 3: 2023 Group Highlights
2023 Group Highlights REVENUE EBITDA EMPLOYEES CEMENT CAPACITY 1.69 Bn€ 411 M€ 3,045 13.1 M tons Annually -1.7% vs. 2022 +22.6% vs. 2022 TRAINING PER LTI FREQUENCY CO2 EMISSIONS** CO2 EMISSIONS** CAPITA RATE* Grey cement White cement 26 hours 2.9 +18% vs. 2022 vs. 4.2 in 2022 655 kg /ton 846 kg /ton
Slide 4: Industrial footprint
Industrial footprint PLANTS Cement plants: 11 Terminals: 65 RMC plants: 101 Quarries: 34 Precast products plants: 1 Waste management facilities: 1 CAPACITY / SALES Grey cement capacity: 9.8 mt Aalborg, DK White cement capacity: 3.3 mt Grey cement sales: 8.0 mt White cement sales: 2.7 mt Gaurain, BE
Slide 5: Business segments
Business segments GREY CEMENT WHITE CEMENT READY-MIXED CONCRETE AGGREGATES CONCRETE PRODUCTS / WASTE VOLUMES SOLD VOLUMES SOLD VOLUMES SOLD VOLUMES SOLD WASTE PROCESSED * (mt) (mt) (mm3) (mt) (mt) 11.1 10.5 8.2 8.0 8.0 3.0 9.4 2.8 2.7 5.1 4.8 0.22 4.3 0.16 0.06 2021 2022 2023 2021 2022 2023 2021 202
Slide 6: Our Strategy is based on five pillars
Our Strategy is based on five pillars We pursue a sustainable growth strategy aimed at creating value for all stakeholders ▪ Push towards product and value chain circularity 2023 EBITDA BREAKDOWN (*) 1 SUSTAINABILITY ▪ Carbon capture and storage in Denmark by 2030 ▪ Focus on low carbon cements like
Slide 7: Industrial Plan update: key 2026 targets
Industrial Plan update: key 2026 targets (*) 2023 A 2026 €M ▪ ~5-6% Sales CAGR in the 2023-26 period ▪ Moderate increase in volumes, with stronger volume growth in 2024, except Revenues 1,695 ~ 2,000 for China: CAGR of 4-5% for cement; 5-6% for RMC, 4-5% for aggregates ▪ Prices broadly stable / mode
Slide 8: White Cement: unique competitive position
White Cement: unique competitive position Local presence & #1 in USA, Continental Europe, China, Australia, South-East Asia global leadership Total market of 20 Mt (0.5% of grey cement demand) Global leadership in white cement 3.3 Mt 2.7 Mt White cement and clinker volumes sold in 2023 Cement Capaci
Slide 9: ESG Strategy
ESG Strategy Green Belt Bridge, Denmark 9
Slide 10: As Is: Scope 1, 2 and 3 CO2 emissions footprint
As Is: Scope 1, 2 and 3 CO2 emissions footprint (*) INDIRECT EMISSIONS INDIRECT EMISSIONS DIRECT EMISSIONS TOTAL CO2 EMISSIONS (ELECTRICITY) (VALUE CHAIN) Scope 1 Scope 2 Scope 3 Scope 3 CEMENT and OTHER Scope 1 25% CEMENT 70% Sources: Sources: Sources: Scope 1 and 2 ▪ Process and fuel ▪ Purchased e
Slide 11: Our path to reach net zero emissions by 2050
Our path to reach net zero emissions by 2050 2050 AMBITION 2050 ▪ Net-zero greenhouse emissions across the value chain validated by SBTi NET ZERO ▪ 96.1% CO2 reduction in scope 1 and scope 2 per ton of cementitious material (2021 baseline) ▪ 90% CO2 reduction in scope 3 (2021 baseline) ▪ FUTURECEM®
Slide 12: Scope 1 emissions: 2030 decarbonization targets
Scope 1 emissions: 2030 decarbonization targets (*) Kg Gross CO2 /TCE NEW ROADMAP WHITE CEMENT 2026 Target OLD ROADMAP White cement target (Kg CO2/TCE) 2030 Target -19% to 737 Kg from 915 Kg 2026 Target 737 NEW ROADMAP OLD ROADMAP GREY CEMENT 2030 Grey cement target Target (Kg CO2/TCE) TAXONOMY CO2
Slide 13: FUTURECEM is a key pillar of our sustainability strategy
FUTURECEM® is a key pillar of our sustainability strategy ▪ FUTURECEM® is based on a unique limestone and calcined clay ▪ 2021: Launch in Denmark with sales targets achieved synergic combination which enables around 30% CO2 reduction ▪ 2022: Launch in France and Benelux. Progressive roll-out in comp
Slide 14: D-Carb paves the way for Aalborg White decarbonization
D-Carb® paves the way for Aalborg White® decarbonization ▪ D-Carb® is a new umbrella brand for white low-carbon cements, ▪ D-Carb® maintains the same high short-term performance as supporting our white cement decarbonization efforts Aalborg White® CEM I, meeting tight construction timelines ▪ D-Carb
Slide 15: Rating improvement reflects our continued ESG commitment
Rating improvement reflects our continued ESG commitment Science Based Target initiative (SBTi) validated Cementir near and long-term decarbonization targets aligned with the 1.5°C scenario in February 2024. SBTi also approved overall net-zero emissions target by 2050 In 2024 Cementir has been inclu
Slide 16: The ACCSION Project for CCS in Aalborg plant
The ACCSION Project for CCS in Aalborg plant ▪ ACCSION: Aalborg CCS using Infrastructure Onshore in North Jutland ▪ Selected to receive EUR 220 million from EU Innovation Fund ▪ Consortium with Air Liquide ▪ Avoidance of 1.5 million tons CO2/year* ▪ Significant increase in district heating supply to
Slide 17: 2024-26 Capex highlights
2024-26 Capex highlights ▪ ~ 100 M€ of sustainability* investments, INDUSTRIAL PLAN CAPEX BREAKDOWN focused on operational efficiencies via plant EUR million upgrades and product innovation ▪ Main initiatives: − Kiln 4 upgrade in Gaurain, Belgium − Switch to lower emission factor fuels in Aalborg an
Slide 18: 2024 First Nine Months results and 2024 Guidance
2024 First Nine Months results and 2024 Guidance 18
Slide 19: 2024 First Nine Months highlights
2024 First Nine Months highlights FINANCIAL HIGHLIGHTS Revenues reached 1,235.6 M€ (-4.6% yoy); non-GAAP* Revenues: 1,227.3 M€ (-4.8% yoy) − Cement volumes increased by 0.6% due to the increase recorded in Türkiye, Malaysia and US, offsetting volume reductions in all other regions − RMC volumes up b
Slide 20: Nordic & Baltic
Nordic & Baltic ASSET OVERVIEW SHARE OF GROUP EBITDA DENMARK − Domestic cement volumes declined moderately, due to harsh weather conditions in Q1 2024, and a still stagnant market. Volumes improvement in Q3 thanks to cement supply for Fehmarn Belt (32) − RMC volumes were up 3% , while aggregates vol
Slide 21: Belgium and France
Belgium and France (*) ASSET OVERVIEW SHARE OF GROUP EBITDA BELGIUM AND FRANCE − Domestic cement volumes decreased moderately in 9M 2024 whereas construction market contracted by 6-7%; exports to France and the Netherlands declined more sharply due to the slowdown in construction activity also influ
Slide 22: Türkiye
Türkiye ASSET OVERVIEW SHARE OF GROUP EBITDA TÜRKIYE − From April 2022 Türkiye is considered “hyperinflationary”. Reported figures are non-GAAP i.e. exclude the application of IAS 17% 29 and revaluation of non-industrial property − Domestic cement volumes increased by 9% thanks to significantly high
Slide 23: North America
North America ASSET OVERVIEW SHARE OF GROUP EBITDA UNITED STATES − White cement volume slightly up. Deliveries to Texas moderately improved, aided by better weather conditions and 7% effective commercial actions even if rainfall in the first quarter and fewer working days, and intense competition ar
Slide 24: Asia Pacific
Asia Pacific ASSET OVERVIEW SHARE OF GROUP EBITDA CHINA − Revenue decreased by 19% , with volumes down by 14%, modest price reductions and CNY devaluation 5% − Volumes were affected by the real estate crisis, early-year low temperatures, heavy June rains, summer floods and longer national holidays −
Slide 25: Egypt
Egypt ASSET OVERVIEW SHARE OF GROUP EBITDA EGYPT − Domestic white cement volumes decreased by 6% due to a weak residential market and postponement of major public projects; 4% export volumes slightly up − Revenue in local currency was up by 28%, while in Euro declined by 8.8% − EBITDA increased by 2
Slide 26: 2024 Guidance – Confirmed
2024 Guidance – Confirmed FINANCIAL HIGHLIGHTS • Revenues ~ 1.7 BN€ (unchanged) • EBITDA ~ 385 M€ (unchanged) • Net cash ~ 300 M€ at constant perimeter (unchanged) • Capex ~ 135 M€ (unchanged) Guidance refers to like-for-like ongoing operations, non-GAAP, excluding extraordinary items The above guid
Slide 27: Appendix
Appendix f Concretely Dynamic Cc cementirholding
Slide 28: Consolidated Income Statement – First Nine Months 2024
Appendix - Consolidated Income Statement – First Nine Months 2024 9M 2024 9M 2023 (EUR million) 9M 2024 9M 2023 Chg % Chg % ( N on- G A A P) * ( N on- G A A P) * REV EN U E F ROM SA LES A N D SERV ICES 1,235.6 1,295.0 ( 4.6%) 1,227.3 1,288.9 ( 4.8%) Change in inventories (4.4) 16.0 (127.6%) (0.9) 19
Slide 29: Consolidated Income Statement – Third Quarter 2024
Appendix - Consolidated Income Statement – Third Quarter 2024 Q3 2024 Q3 2023 (EUR million) Q3 2024 Q3 2023 Chg % Chg % ( N on- G A A P) * ( N on- G A A P) * REV EN U E F ROM SA LES A N D SERV ICES 423.8 454.4 ( 6.7%) 423.9 420.7 0.8% Change in inventories (9.5) 9.9 (195.8%) (8.0) 9.9 (181.0%) Incre
Slide 30: Increased shareholders return
Increased shareholders return ▪ +27% Dividend per Share increase vs. 2022 (21.6% payout ratio) ▪ The 2024-2026 Industrial Plan assumes the distribution of an increasing dividend with a payout ratio between 20% and 25% DIVIDEND PER SHARE EARNINGS PER SHARE PAYOUT RATIO 20-25% range +27% +24% 25% 20%
Slide 31: M&A track record
M&A track record Since 2001 over EUR 1.7 billion invested with no recourse to shareholder equity (M€) 600 254 312 152 112 125 87 -315 2001 2004 2005 2006 Jul-16 Oct-16 Jan-18 Mar-18 2001 - Cimentas AS and Cimbeton AS Jul. 2016 - Sacci Entered the Turkish cement market with 2 plants Cement and ready-
Slide 32: Key differences between white and grey cement
Key differences between white and grey cement WHITE CEMENT GREY CEMENT ▪ ~ 20 million tons per year (0.5% of grey) ▪ > 4 billion tons per year Market Size ▪ Niche product: high value, small volumes ▪ Commodity: basic value, large volumes ▪ Raw materials scarcity, fewer producers, growth end- ▪ Raw m
Slide 33: Major white cement manufacturers capacity (Mt)
Major white cement manufacturers capacity (Mt) 1.24x 3.30 2.05x 2.66 1.61 1.20 0.97 0.90 0.90 0.80 0.71 0.70 0.66 CIMSA HOLCIM JK WHITE SESCO SAUDI WHITE RAS AL JIANGXI CEMEX SOTACIB HEIDELBERG CEMENT CEMENT CEMENT KHAIMAH YINSHAN WHITE MATERIALS CEMENT CO. CEMENT CO. % Share of global white cement
Slide 34: Türkiye and Egypt historical figures
Türkiye and Egypt historical figures TÜRKIYE - CEMENT MARKET (MT) (*) Türkiye Egypt EDIRNE EL ARISH KARS IZMIR ELAZIG Grey cement plants (#4) White cement plant (#1) RMC plants Waste EGYPT – EBITDA EVOLUTION €M TÜRKIYE – EBITDA EVOLUTION €M (**) PEAK PEAK (*) Source: Turkish Statistical Institute, T
Slide 35: Disclaimer and Other information
Disclaimer and Other information •This presentation has been prepared by and is the sole responsibility of Cementir Holding N.V. (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 here