Heidelberg Materials Ag · XETR:HEI
Heidelberg Materials — HeidelbergCement — Q4 2020 Earnings Presentation
19 slides from Heidelberg Materials's earnings presentation, Feb 23, 2021
Slide 1: Q4 2020 Trading Update
Q4 2020 Trading Update 23 February 2021 Dr. Dominik von Achten – Group CEO Dr. Lorenz Näger – Group CFO
Slide 2: Key Messages
Key Messages ▪ Record EBITDA and significant margin improvement driven by strong operational performance ▪ Exceptional resilience in very challenging market conditions driven by COPE cash savings of 1.3 bn€ ▪ Step change in net debt reduction bringing leverage down to our target corridor below 2.0x
Slide 3: All announced targets outperformed for the year
Q4 / FY 2020 OVERVIEW All announced targets outperformed for the year 2020 achievements provide a solid step towards our Beyond 2020 targets* EBITDA Net Debt Leverage Cash savings EBITDA at Net debt at Leverage goes 1.3 billion EUR Achievement 3,707 m€ 6.9 bn€ down to 1.86x cash savings (+6.1% Lfl)
Slide 4: Record EBITDA and significant margin improvement despite lower demand
Q4 / FY 2020 OVERVIEW Record EBITDA and significant margin improvement despite lower demand Revenue (m€) Operating EBITDA (m€) Operating EBITDA Margin Operating EBIT (RCO) (m€) Lfl: +6% Lfl: +11% Lfl: -5% +4% +70 bps +206 bps +8% -7% 18.851 3.580 3.707 21.2% 21.8% 21.1% 2.363 17.606 2.186 19.0% Lfl:
Slide 5: EBITDA margins strongly improved in all regions in 2020
Q4 / FY 2020 OVERVIEW EBITDA margins strongly improved in all regions in 2020 North America Western & Southern Europe North & Eastern Europe – Central Asia +24 bps +207 bps +172 bps 21.8% 22.1% 17.3% 23.5% 25.2% 15.2% FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020 Asia Pacific Africa-Eastern Medite
Slide 6: Q4 earnings driven by Western & Southern Europe and Africa regions
Q4 / FY 2020 OVERVIEW Q4 earnings driven by Western & Southern Europe and Africa regions Volumes Q4 19 Q4 20 Change LfL North America Cement sales volume (mt) 31.4 31.9 0.5 1.7% ▪ Revenue increase driven by solid pricing, growth in most US Aggregates sales volume (mt) 75.0 75.5 0.4 1.2% regions and
Slide 7: Strong Q4 EBITDA growth on the back of higher demand and solid pricing
Q4 / FY 2020 OVERVIEW Strong Q4 EBITDA growth on the back of higher demand and solid pricing Q4 Operating EBITDA Bridge (m€) +6.0% 20 979 -4 976 968 -45 36 924 Q4 2019 EBITDA Currency Q4 2019 Net volume Price over cost Q4 2020 Scope Q4 2020 EBITDA LfL EBITDA LfL EBITDA 7 Q4 2020 Trading Update | 23
Slide 8: Outstanding EBITDA performance in a very challenging year
Q4 / FY 2020 OVERVIEW Outstanding EBITDA performance in a very challenging year Full Year Operating EBITDA Bridge (m€) +6.1% 412 3,706 1 3,707 3,580 -86 3,494 -200 2019 EBITDA Currency 2019 LfL EBITDA Net volume Price over cost 2020 LfL EBITDA Scope 2020 EBITDA 8 Q4 2020 Trading Update | 23 February
Slide 9: COPE action plan with 1.3 bn€ cash savings despite higher revenue than anticipated
Q4 / FY 2020 OVERVIEW COPE action plan with 1.3 bn€ cash savings despite higher revenue than anticipated COPE cash savings (m€) COPE action plan clearly overachieved 560 1.273 ▪ Cope action plan initiated as early as February 2020 ▪ Focus on cost savings clearly visible on results: ⁻ Minimization of
Slide 10: Step change in net debt reduction brings leverage down to 1.86x
2020 NET DEBT Step change in net debt reduction brings leverage down to 1.86x Net debt (bn €) Net debt before IFRS 16 Net debt / EBITDA before IFRS 16 IFRS 16 Net debt / EBITDA incl. IFRS 16 Outstanding financial performance in the crisis ▪ Leverage clearly below 2.0x, well inside 2,35x “Beyond 2020
Slide 11: Sustainability
Sustainability ▪ Significant compensation change underlining clear commitment to CO2 roadmap 2030: Annual CO2 targets are now embedded in compensation schemes for bonus eligible employees ▪ Further progress in industrial scale up of CO2 capture technologies: - LEILAC 2 pilot project to be located at
Slide 12: CO2 targets embedded in incentive scheme for all the employees as of 2021
SUSTAINABILITY CO2 targets embedded in incentive scheme for all the employees as of 2021* CO2 reduction target in new global bonus scheme Detailed roadmaps to ensure that CO2 targets are met ▪ Structured as a multiplier, the CO2 target in our ▪ Detailed bottom-up carbon roadmaps for each bonus schem
Slide 13: Key Messages
Key Messages ▪ Record EBITDA and significant margin improvement driven by strong operational performance ▪ Exceptional resilience in very challenging market conditions driven by COPE cash savings of 1.3 bn€ ▪ Step change in net debt reduction bringing leverage down to our target corridor below 2.0x
Slide 14: Appendix
HEIDELBERGCEMENT Appendix
Slide 15: Sales volumes
APPENDIX Sales volumes Sales Volumes Cement (‘000 t) Aggregates (‘000 t) Ready Mix (‘000 m3) Asphalt (‘000 t) QUARTER Q4 19 Q4 20 Change LfL Q4 19 Q4 20 Change LfL Q4 19 Q4 20 Change LfL Q4 19 Q4 20 Change LfL North America 3,855 3,942 87 2.3% 30,207 31,103 897 3.0% 1,912 1,947 35 2.4% 1,226 1,222 -
Slide 16: Operating result
APPENDIX Operating result Operating Result Revenues (m€) Operating EBITDA (m€) Operating EBIT / RCO (m€) EBITDA Margin QUARTER Q4 19 Q4 20 Change LfL Q4 19 Q4 20 Change LfL Q4 19 Q4 20 Change LfL Q4 19 Q4 20 Change LfL North America 1,164 1,104 -5.1% 3.3% 292 263 -9.9% -3.7% 188 177 -5.6% 0.5% 25.1%
Slide 17: Scope and currency impacts
APPENDIX Scope and currency impacts Scope & Currency Scope Impact on Volumes Revenue Operating EBITDA Operating EBIT (RCO) QUARTER CEM AGG RMC ASP Scope Currency Scope Currency Scope Currency North America 0 -3 -11 -57 -8 -87 0 -19 1 -12 West / South Europe 0 0 0 0 -20 -15 -5 -2 -2 -1 North / East E
Slide 18: Contact information and financial reporting calendar
FINANCIAL CALENDAR Contact information and financial reporting calendar Date Event Contact Information 18 March 2021 Full Year Results Christoph Beumelburg Director Group Communication & IR 6 May 2021 AGM & First Quarter Results Phone: +49 (0) 6221 481 13249 christoph.beumelburg@heidelbergcement.com
Slide 19: Disclaimer
Disclaimer Unless otherwise indicated, the financial information provided herein has been prepared credit business and, in particular, additional uncertainties arising out of the subprime, under International Financial Reporting Standards (IFRS). financial market and liquidity crises; the outcome of