Heidelberg Materials Ag · XETR:HEI
Heidelberg Materials — Non-Deal Roadshow (September 2023)
25 slides from Heidelberg Materials's roadshow presentation, Sep 26, 2023
Slide 1: Heidelberg Materials – HSBC APAC virtual roadshow
Heidelberg Materials HSBC APAC virtual roadshow Capital Markets Story 26.09.2023
Slide 2: Heidelberg Materials is one of the world’s largest building materials companies
HSBC APAC virtual roadshow Heidelberg Materials is one of the world’s largest building materials companies ~51,000 employees 3,000 locations Leading positions in: cement, aggregates, and ready-mixed concrete on 5 continents worldwide 2 26.09.2023 Capital Markets Story
Slide 3: A balanced geographic footprint with strong focus on Heavy Building Materials
HSBC APAC virtual roadshow A balanced geographic footprint with strong focus on Heavy Building Materials Revenue by Group areas Operating EBIT/ RCO1) by Group areas 8% 1% 14% 9% 22% OTHER 28% 13% AGG CEM 14% 19% 2022 Revenue: 44% 2022 Operating 16% €21.1 bn EBIT (RCO): Western and Southern Europe €2
Slide 4: Our concrete promises
Our concrete promises 1. We focus on heavy building materials. 2. We commit to generate 50% of our revenue from sustainable products by 2030. 3. We commit to reduce CO2 emissions by almost 50% to 400 kg CO2/t CEM by 2030. 4. We will make this transition a successful business case: on growth, margins
Slide 5: The building materials industry will continue to grow
HSBC APAC virtual roadshow The building materials industry will continue to grow Global megatrends that will shape the building materials industry over the next few years Market Dynamics Society Technology • Population growth • Solutions for sustainable building • New business models: and urbanisat
Slide 6: Concrete is essential for building a sustainable society
HSBC APAC virtual roadshow Concrete is essential for building a sustainable society • Second most used material after water • Locally produced and sold • 100% recyclable • Durable • Sound absorbent • Designable • Flexible 6 26.09.2023 Capital Markets Story
Slide 7: Sustainable products are becoming the game changer for profitable growth
” Sustainable products are becoming the game changer for profitable growth. 7 26.09.2023 Capital Markets Story
Slide 8: Regulatory changes and sustainability focus will be a big opportunity for us
HSBC APAC virtual roadshow Regulatory changes and sustainability focus will be a big opportunity for us Green procurement criteria create significant growth potential • Strong demand for sustainable products and solutions on the back of green procurement criteria • Sustainable products with price pr
Slide 9: CCUS and ETS present a clear margin opportunity for us in Europe
HSBC APAC virtual roadshow CCUS and ETS present a clear margin opportunity for us in Europe Indicative chart Margin opportunity for €/t CEM Heidelberg Materials Price due to premium products Cost Margin opportunity for Margin Heidelberg Materials industry due to lower EUA needs average 2026 2030 Ass
Slide 10: Carbon capture is a key lever to accelerate decarbonisation in the long term
HSBC APAC virtual roadshow Carbon capture is a key lever to accelerate decarbonisation in the long term kg CO2/t CEM 800 - 47 % 750 Levers to reach our 2030 targets 700 Products 600 576 Opt i m i se Clinker incorporation <68% 538 pr oduct s Opt i m i se Drive circularity pr ocess 500 CCUS Process 40
Slide 11: CCS enables strong CO2 reduction in new buildings at relatively low overall cost
HSBC APAC virtual roadshow CCS enables strong CO2 reduction in new buildings at relatively low overall cost -100% -~50% Single digit % increase Capture of 100% ~50% reduction of new Single digit increase of building of the clinker production building’s embodied carbon construction costs, assuming em
Slide 12: One of the most advanced CCUS project pipeline in the industry
HSBC APAC virtual roadshow One of the most advanced CCUS project pipeline in the industry 2024 2025 2026 2028 2029 2030 CCS CC CCUS CCUS CCS GeZero CCS Brevik, Norway Hanover, Germany Edmonton, Canada Padeswood, UK Geseke, Germany Slite, Sweden Capacity: LEILAC 1: finalised Capacity: Capacity: Capac
Slide 13: Our CO2 transformation fits to our capital allocation ambition
HSBC APAC virtual roadshow Our CO2 transformation fits to our capital allocation ambition CapEx for conventional ~€100-150 m p.a. CO2 reduction initiatives already included in Net CapEx target CapEx ~€1.5 bn until 2030 to capture 10 mt CO2 CapEx for CCUS no major impact on cash allocation ~€60/t of
Slide 14: Our capital allocation has a strong focus on shareholder returns
HSBC APAC virtual roadshow Our capital allocation has a strong focus on shareholder returns Second year in a row with €~1 bn spent on Heidelberg Materials AG – dividend per share in € dividends and share buybacks +8.3% 2.60 €350 m 2.40 share buybacks 2.20 €458 m 2022: dividend to HM AG €977 m shareh
Slide 15: Clearly defined M&A framework
HSBC APAC virtual roadshow Clearly defined M&A framework + Corporate development with M&A Portfolio logic Core bolt-ons Transformation Criteria • Committed to • Further • Leverage our • Contribute to net heavy building strengthen key core to drive income in year 1 materials (CEM, market positions tr
Slide 16: We set ourselves ambitious targets
HSBC APAC virtual roadshow We set ourselves ambitious targets By 20 25 Around 5% p.a. 20-22% > 10% > 45% 1.5x-2.0x By 20 30 400 kg/t 50% 50% CEM *Offer circular alternatives for half of our concrete products – aiming for full coverage. 16 26.09.2023 Capital Markets Story
Slide 17: Heidelberg Materials as an attractive investment
Heidelberg Materials as an attractive investment 1. Profitable growth – Our growth is underpinned by a value over volume focus with added benefits from a balanced presence in mature and emerging markets. 2. Strong financial performance – We are on track to achieve our medium and long-term financial
Slide 18: Appendix
Appendix 18
Slide 19: H1 2023: Good improvement in all financial KPIs
HSBC APAC virtual roadshow H1 2023: Good improvement in all financial KPIs Revenue Operating EBIT Clean EPS Net debt Shareholder . (RCO) reduction return (LTM) €10.5 bn €1,189 m €3.64 €-106 m €695 m +9% LfL +38% LfL +16% vs. June 2022 Solid pricing drives top- Price over cost continues Significant i
Slide 20: 2022 highlights: well positioned despite a challenging macro-economic backdrop
HSBC APAC virtual roadshow 2022 highlights : Heidelberg Materials is well positioned despite a challenging macro-economic backdrop 2022 Revenue 2022 Operating 2022 ROIC Shareholder Leader in €21.1 bn EBIT (RCO) 9.1% return decarbonisation +1 2% LfL 1) €2.5 bn (PY: 9.3%) €~1 bn in 2022 -6% LfL 1) Str
Slide 21: Strong cash generation, focus on shareholder return and growth
HSBC APAC virtual roadshow Strong cash generation, focus on shareholder return and growth Cash generation 2018-2022 Cash allocation strategy €11 bn Free Cash Flow in last 5 years Focus shifts from debt payback to shareholder return and profitable growth 1.5 11.0 Bolt-on & Clear commitments unchanged
Slide 22: Second year in a row with €~1 b spent on dividends and share buybacks
HSBC APAC virtual roadshow Second year in a row with €~1 b spent on dividends and share buybacks Shareholder return (m €) Share buyback Dividend - Minorities 968 978 Dividend - HM AG 350 350 565 586 529 169 169 181 188 211 334 323 90 417 204 437 458 377 318 244 119 2016 2017 2018 2019 2020 2021 2022
Slide 23: Core Capex drastically reduced in favour of conventional CO2 and CCUS capex
HSBC APAC virtual roadshow Core Capex drastically reduced in favour of conventional CO2 and CCUS capex Net CapEx spending p.a. €1.2 bn 1. Core CapEx down by €250-300 m 100-150 ~€1.1 bn p.a. ~€1.0 bn 50-100 2. Conventional CO2 CapEx up -250-300 +€50-100 m p.a. 3. CCUS added as new category 850-900 1,
Slide 24: Disclaimer
Disclaimer Unless otherwise indicated, the financial information provided herein has of these investigations; events of force majeure including natural disasters, been prepared under International Financial Reporting Standards (IFRS). pandemics, acts of terrorism, political unrest, armed conflicts,
Slide 25: Heidelberg Materials
Heidelberg Materials
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