Heidelberg Materials Ag · XETR:HEI
Heidelberg Materials — HeidelbergCement — Investor Day (September 2020)
9 slides from Heidelberg Materials's investor day presentation, Sep 16, 2020
Slide 1: Focusing on Core Asset Portfolio – Simplify & Prioritize
2020 Capital Markets Day 16 September 2020 Focusing on Core Asset Portfolio – Simplify & Prioritize Dr. Dominik von Achten CEO
Slide 2: Focusing on core asset portfolio – simplify and prioritize
EXECUTIVE SUMMARY Focusing on core asset portfolio – simplify and prioritize Clear focus shift from 1 Right-size Reduce complexity non-core asset to core asset disposals. 2 Innovation focused CapEx Net Strengthen approx. €1.2 bn p.a. asset base improvement Only if leverage 3 Grow Expand focus market
Slide 3: Simplify and improve portfolio
PORTFOLIO PRINCIPLES Simplify and improve portfolio Portfolio principles & review Categorization & portfolio decisions Right-size Strengthen & Grow Competitive position – Exit and reallocate – Improve asset base capital – Bolt-on acquisitions Weak spots Capital efficiency (ROIC) in % Watch list Port
Slide 4: Divesting assets which do not meet our investment criteria
RIGHT-SIZE PORTFOLIO Divesting assets which do not meet our investment criteria Markets without adequate returns over Profitability a cycle − Reduce the number of management units Positions without clear path to achieve Footprint defendable market position − Introduction of watch list: if turnarou
Slide 5: Shifting focus from non-core to core asset disposals
RIGHT-SIZE PORTFOLIO Shifting focus from non-core to core asset disposals Divestments Create more value through disposals €m − Focus more on core asset disposals driven by Non-core asset disposals new active portfolio management strategy Core asset disposals − Non-core asset disposals are expected
Slide 6: Improving asset quality and competitiveness
STRENGTHEN PORTFOLIO Improving asset quality and competitiveness All regular “stay in business“ Regular CapEx – Increase the CapEx competitiveness of existing asset base Improvement Focus on CO2 and increased – Innovation oriented CapEx digitalization of plants improvement – Approx. €1.2 bn Major
Slide 7: Using part of excess cash for further profitable growth
GROW PORTFOLIO Using part of excess cash for further profitable growth Selective bolt-on acquisitions with synergy − Develop strong Market potential to defend and improve existing market positions consolidation positions in profitable markets − No transformational Push vertically integrated market
Slide 8: Focusing on core asset portfolio – simplify and prioritize
EXECUTIVE SUMMARY Focusing on core asset portfolio – simplify and prioritize Clear focus shift from 1 Right-size Reduce complexity non-core asset to core asset disposals. 2 Innovation focused CapEx Net Strengthen approx. €1.2 bn p.a. asset base improvement Only if leverage 3 Grow Expand focus market
Slide 9: 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