Cementir Holding N.v. · MIL:CEM
Cementir — Italian Sustainability Week 2022
32 slides from Cementir's conference presentation, Sep 8, 2022
Slide 1: Italian Sustainability Week 2022 ESG Investor presentation
Italian Sustainability Week 2022 ESG Investor presentation Italian Sustainability Week Conference | 8 September 2022
Slide 2: Agenda
Agenda Group Highlights 3 ESG Strategy 8 Financial Highlights 25 Appendix 29 2
Slide 3: Group Highlights
Group Highlights Youth Olympic Games Center, Nanjing (China) 3
Slide 4: Cementir at a glance
HIGHLIGHTS Cementir at a glance GROUP € 1.4 BN 3,083 15.6% ROCE Annual Sales Employees BBB- 13.1 M tons 20% share* Rated by S&P White Cement Stable Outlook globally Cement Capacity Data as of December 31st, 2021 * Excluding «off-white» and lower quality Asian products 4
Slide 5: Business segments
HIGHLIGHTS Business segments GROUP WASTE / CONCRETE GREY CEMENT WHITE CEMENT READY-MIXED CONCRETE AGGREGATES PRODUCTS 2021 Figures REVENUE = 854 M€ REVENUE = 449 M€ REVENUE = 94 M€ REVENUE = 12 M€ EBITDA = 232 M€ EBITDA = 49 M€ EBITDA = 33 M€ EBITDA = 0.9 M€ EBITDA margin = 27% EBITDA margin = 11% E
Slide 6: Industrial footprint
HIGHLIGHTS Industrial footprint GROUP Plants Cement plants: 11 Terminals: 60 RMC plants: 101 Quarries: 12 Precast products plants: 1 Waste management facilities: 2 Capacity / Sales Grey cement capacity: 9.8 mt Aalborg, DK White cement capacity: 3.3 mt Grey cement sales: 8.2 mt White cement sales: 3.
Slide 7: Strategy based on four pillars
HIGHLIGHTS Strategy based on four pillars GROUP 97 M€ of Green Investments by 2021 EBITDA breakdown (*) Sustainability 2024 (7% of annual sales) Holding and Asia Pacific Focus on high-value added solutions services Innovation Egypt 9% like FUTURECEM® leveraging on 1% InWhite Solutions® platform 4%
Slide 8: ESG Strategy
ESG STRATEGY ESG Strategy CCB’s Gaurain plant, Belgium 8
Slide 9: Our Sustainability journey since 2019
Our Sustainability journey since 2019 ESG STRATEGY 2019 2020 2021 2022 ▪ New organization and ▪ Integration of Sustainability ▪ Launch of FUTURECEM® on ▪ All cement plants ISO Sustainability Governance into Corporate Strategy the market 45001-certified with Group Sustainability with 2030 Roadmap on
Slide 10: Rating improvement reflects ESG commitment
Rating improvement reflects ESG committment ESG STRATEGY Rating Ranking Scale 2019 2020 2021 (Worst-> Best) D- to A F B A- F: no filing Climate Change D- to A F F B F: no filing Water Security CCC to AAA BBB BBB BBB 0 to 100 32 63 0 to 100 38 45 45 0 to 100 57 73 76 0 to 100 45 61 54 10
Slide 11: Scope 1, 2 and 3 CO2 emissions footprint today
Scope 1, 2 and 3 CO2 emissions footprint today (*) ESG STRATEGY Indirect emissions Indirect emissions Direct emissions Total CO2 emissions (electricity) (value chain) Scope 1 Scope 2 Scope 3 Sources: Sources: Sources: 11.7 ▪ Process and fuel ▪ Purchased electricity, ▪ Upstream and Million tons emis
Slide 12: 2030 Decarbonization targets
Scope 1 emissions 2030 Decarbonization targets SCOPE 1 EMISSIONS (kg CO2/t cement) - Grey cement LEVERS ESG STRATEGY -31% ▪ FUTURECEM® and other low carbon products ▪ Raw materials: use of calcined clay, GBFS, fly ash and limestone <500 2030 TARGET ▪ Circularity: materials and process waste recyclin
Slide 13: Scope emission reduction waterfall
Scope 1 emission reduction waterfall 2030 Roadmap earmarks three main levers to reduce Scope 1 emissions: ESG STRATEGY ▪ FUTURECEM® and other low carbon products ▪ Increase of alternative and/or less carbon intensive fuels ▪ Thermal energy efficiencies Grey cement White cement <800 <500 13
Slide 14: Low carbon and sustainable product pipeline
Low carbon and sustainable product pipeline ESG STRATEGY LOW CARBON CEMENT SUSTAINABLE READY-MIX RECYCLED AGGREGATES CONCRETE ▪ Limestone calcined clay technology ▪ More sustainable RMC products by ▪ Use of recycled concrete for leveraging on recycled aggregates and aggregates reducing the use of lo
Slide 15: FUTURECEM is a key pillar of our sustainability strategy
FUTURECEM® is a key pillar of our sustainability strategy ▪ Proprietary limestone calcined clay technology which enables over ▪ ESG STRATEGY 2021: Launch in Denmark with sales targets achieved. 30% CO2 reduction compared to ordinary Portland through clinker ▪ 2022: Launch in France and Benelux. Prog
Slide 16: Managing Scope 3 emissions
We have taken important steps to manage our Scope 3 emissions ESG STRATEGY Value Chain of Engagement Engagement value chain Scope 3 emissions Breakdown * ▪ During 2020 and 2021 we identified synergies and potential partners to help reduce emissions Waste disposal ▪ Strategic suppliers invited to par
Slide 17: 2022-24 Capex highlights
2022-24 Capex highlights ESG STRATEGY ▪ 97 M€ of «green» investments,focused on Industrial Plan Capex operational efficiency through plant upgrades, Green Capex = Sustainability + Digitalization digitalisation of industrial processes and product innovation ▪ 2021 sustainability capex lower than plan
Slide 18: Capex: main initiatives for CO2 emissions reduction
Capex: main initiatives for CO2 emissions reduction ESG STRATEGY Switch to natural gas Kiln upgrade - Belgium Sustainable distribution ▪ Agreement with the Danish gas ▪ Kiln upgrade in Gaurain (Belgium) to ▪ Increase distribution by rail, impose distribution company Evida to connect increase alterna
Slide 19: Carbon capture, usage and storage
New breakthrough technologies: Carbon, capture, usage and storage Through Aalborg Portland, Cementir participates in several CCUS projects ESG STRATEGY ▪ Objectives: ▪ Objectives: − Demonstrate the techno-economic viability of green − Concept study of carbon capture and CO2 hub in Aalborg electricit
Slide 20: Research partnership to support CO2 storage and use
New breakthrough technologies: Carbon, capture, usage and storage Mission driven research partnership to support CO2 storage and use ESG STRATEGY CORT – Carbon capture Open tests and review of Technologies ▪ Objectives : ▪ Objectives: − The partnership's vision is to contribute to climate goals by −
Slide 21: Innovandi Open Challenge consortia
Cementir is part of two consortia of the Innovandi Open Challenge Global program to bring together tech start-ups and GCCA member companies to drive ESG STRATEGY innovation and help solve the climate challenge Six consortia between start-ups and cement companies to accelerate ground-breaking technol
Slide 22: Health and Safety: developing a strong H&S culture
Health and Safety: developing a strong H&S culture Cementir is strengthening its H&S culture through workers’ engagement and participation ESG STRATEGY ▪ Continuous improvement of safety through H&S initiatives, such as Group policy, Group guidelines, Lost Time Injury Lost Time Injury Golden Rules o
Slide 23: Social commitment
Social commitment Promoting diversity and equality, people engagement and social responsibility ESG STRATEGY Diversity and inclusion Talent management Social responsibility ▪ Promotion of diversity, equity and ▪ Main key positions filled internally ▪ Intensify local commitment and inclusion in hirin
Slide 24: Responsible Governance
Responsible Governance Strong governance is a pre-requisite to deliver on our ESG goals ESG STRATEGY Sustainability Committee Within Cementir Board of Directors: 4 Directors of which 3 are non-executive and independent Board diversity Board Independence Promotion of gender equality: 40% of Directors
Slide 25: Financial Highlights
Financial Highlights HIGHLIGHTS FINANCIAL Aalborg plant, Denmark 25
Slide 26: 2022 First Half results highlights
2022 First Half results highlights • From June 2022 Turkey is considered as “hyperinflationary” and IAS 29 has been applied as at 30 June 2022. • Revenues reached 811 M€ (+22% yoy); Revenues excluding IAS 29 HIGHLIGHTS reached 805 M€ (+ 21,2% yoy), driven by price increases FINANCIAL − Cement volume
Slide 27: 2022 Full Year Guidance
2022 Full Year Guidance • Revenues > 1.5 BN€ HIGHLIGHTS FINANCIAL • EBITDA ~ 305 - 315M€ • Net cash ~ 60 M€ • Capex ~ 95 M€ Guidance refers to like-for-like ongoing operations These expectations do not take into account any intensification of the current crisis in Ukraine or new situations of resurg
Slide 28: 2022-24 Industrial Plan targets
2022-24 Industrial Plan targets (*) 2021 A 2024 EUR million ▪ ~7% Sales CAGR in the 2021-24 period Revenues 1,360 ~ 1,650 ▪ 3-4% cement and RMC volumes CAGR ; ~6% aggregates volumes CAGR (**) HIGHLIGHTS FINANCIAL ▪ Price increases across all markets ▪ ~ 5% EBITDA CAGR as fuels and electricity are ex
Slide 29: Appendix
Appendix cementirholdin g 9 f Concretely Dynamic CALTAGIRONE GROU> S
Slide 30: 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 APPENDIX 2001 - Cimentas AS and Cimbeton AS Jul. 2016 - Sacci Entered the Turkish cement market with 2 plants Cement a
Slide 31: Differences between white and grey cement
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 mater
Slide 32: 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