Heidelberg Materials Ag · XETR:HEI
Heidelberg Materials — HeidelbergCement — Investor Day (September 2020)
19 slides from Heidelberg Materials's investor day presentation, Sep 16, 2020
Slide 1: 2020 Capital Markets Day: Beyond 2020
2020 Capital Markets Day 16 September 2020 Beyond 2020 Dr. Dominik von Achten CEO
Slide 2: What we want to achieve today
What we want to achieve today: ‒ Show what we do differently than in the past ‒ Demonstrate how we drive value ‒ Explain how we unlock optimization potential ‒ Highlight our CO2-reduction targets and roadmap ‒ Describe why Digital Transformation is a step change ‒ Introduce all HeidelbergCement Boar
Slide 3: Strong fundamentals driving building materials sector growth
THE BUILDING MATERIALS SECTOR Strong fundamentals driving building materials sector growth Key global megatrends shaping the building materials sector Market dynamics Society Technology − Growth markets: Further structural − Climate change: − New business models: construction growth in emerging − Ch
Slide 4: Cement consumption expected to grow – with focus on EM countries
THE BUILDING MATERIALS SECTOR Cement consumption expected to grow – with focus on EM countries Per capita cement consumption in relation to GDP per capita, 1985-2024e Hollow symbols CEM consumption represent 2020-24e per capita (kg) forecast 1,200 Australia EM: notably Indonesia, India & DM: stable
Slide 5: HeidelbergCement today – The largest vertically integrated building materials producer
HeidelbergCement today – The largest vertically integrated building materials producer in the world Leading global market positions #1 in aggregates #1 in ready-mixed concrete #2 in cement 3,100 production sites in more than 50 countries Cement capacity 187 mt (incl. JVs) Aggregates resources & rese
Slide 6: Balanced asset base with good growth perspectives
HEIDELBERGCEMENT – MATERIAL TO BUILD OUR FUTURE Balanced asset base with good growth perspectives Current setup as good basis for value enhancement − Strong Group EBITDA exposure (>75%) and leading aggregates business in developed markets (Europe/NAM/Australia) − Vertically integrated positions into
Slide 7: Turning challenges into opportunities on a solid base
HEIDELBERGCEMENT – MATERIAL TO BUILD OUR FUTURE Turning challenges into opportunities on a solid base Solid track record – we build on a strong base External and internal challenges Turnover in €bn 5.4% p.a. − Industry with a track record of low ROIC 18.9 − Commoditization of the production technolo
Slide 8: Our strategic framework “Beyond 2020”
BEYOND 2020 Our strategic framework “Beyond 2020“ Simplify & Improve Innovate 1 2 3 4 5 Business Portfolio People & Digital Excellence Management Organization Sustainability Transformation Further improving Shifting portfolio Simplifying Leading Enabling a step commercial & focus to core business pr
Slide 9: Business Excellence – Further improving sales and operations
BEYOND 2020 1 Business Excellence – Further improving sales and operations − Sales – local entrepreneurship − Organic growth through product & customer portfolio development and new products − Margin improvement driven by green products and services − Operations – global standardization − Rigid perf
Slide 10: Business Excellence – North America targets 400-500 bps margin improvement
BEYOND 2020 1 Business Excellence – North America targets 400-500 bps margin improvement Cement Aggregates Ready-mix/Asphalt - Accelerated market - Pricing focus - Develop targeted segments development in focus areas - Logistics optimization of key and customers Commercial - Advanced pricing to comp
Slide 11: Portfolio Management – Focusing on core asset portfolio
BEYOND 2020 2 Portfolio Management – Focusing on core asset portfolio: simplify and prioritize − Committed to balanced portfolio of mature and emerging markets − Setting clear portfolio criteria: − Attractiveness of position − Financial returns − Be the best owner − Reiterating strategic focus: − Re
Slide 12: People & Organization – Simplifying business processes and setup
BEYOND 2020 3 People & Organization – Simplifying business processes and setup − Committing to zero harm: Safety first! − Key targets will be regularly measured and tied to incentive schemes on all levels − Implementing clear business responsibility logic on Board level – one global function per Boa
Slide 13: Sustainability – Leading the way to carbon neutrality
BEYOND 2020 4 Sustainability – Leading the way to carbon neutrality − Setting new industry leading CO2 reduction targets for 2025 and 2030, underpinned by a clear roadmap − Leveraging our strong local low-carbon product portfolio to further reduce emissions − Driving critical breakthrough CO2 reduct
Slide 14: Digital Transformation – Enabling a step change in business excellence
BEYOND 2020 5 Digital Transformation – Enabling a step change in business excellence − Contributing to our Group margin target through our three digital pillars: HConnect, HProduce and HService − Focusing on superior customer interaction covering >75% of global sales volumes through our integrated H
Slide 15: Financials – Focusing on efficient cash generation and allocation
BEYOND 2020 6 Financials – Focusing on efficient cash generation and allocation − Active core portfolio management Capital − Strategic initiatives for business efficiency excellence − Strong focus on free cash flow Cash generation − CapEx with focus on asset base improvement and financial returns −
Slide 16: Our 2025 targets in numbers
Our 2025 targets in numbers EBITDA margin ROIC Leverage ratio Clearly +300 bps >8% 1.5-2.0x vs 2019 Sustainability Digital transformation CO2 reduction <525 kg target accelerated by 5 years: >75% of global sales CO2/t cementitious -30% vs 1990 volumes covered by HConnect
Slide 17: “Beyond 2020” – Our commitments
“Beyond 2020” – Our commitments 1. We prioritize the improvement in margins and ROIC over growing the top-line 2. We shift our portfolio focus to the optimization of core assets while remaining committed to our balanced global footprint 3. We ensure strict capital discipline: − CapEx spending with f
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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