Cementir Holding N.v. · MIL:CEM
Cementir — Virtual STAR Conference 2020 – Fall Edition
36 slides from Cementir's conference presentation, Oct 6, 2020
Slide 1: Cementir Holding N.V. STAR Conference 2020 – Fall Edition
Cementir Holding N.V. STAR Conference 2020 – Fall Edition October 6th, 2020 Virtual STAR Conference | 6 October 2020
Slide 2: Agenda
Agenda Group Highlights 3 White Cement Global Leadership 8 Green Capex Highlights 15 H1 2020 Results and Guidance 19 Appendix 31 2
Slide 3: Group Highlights
Group Highlights Trakya plant, Turkey 3
Slide 4: Cementir at a glance
Cementir at a glance € 1.2 BN 3,042 11% ROCE Annual Sales Employees € 1.4 BN 13.1 M tons 20% share* Net capital White Cement employed globally Cement Capacity Data as of December 31st, 2019 * Excluding «off-white» and lower quality Asian products 4
Slide 5: Cementir Industrial Footprint
Cementir Industrial Footprint Plants Cement plants: 11 Terminals: 30 RMC plants: 100 Quarries: 11 Precast products plants: 1 Waste management facilities: 3 Sales / Capacity Grey cement capacity: 9.8 mt White cement capacity: 3.3 mt Grey cement sales: 6.8 mt White cement sales: 2.7 mt Grey cement pla
Slide 6: Cementir operates in five business segments
Cementir operates in five business segments Vertical integration in countries with grey cement presence GREY CEMENT WHITE CEMENT READY-MIXED CONCRETE AGGREGATES WASTE / OTHER REVENUE = 743 M€ REVENUE = 405 M€ REVENUE = 95 M€ REVENUE = 73 M€ EBITDA = 186 M€ EBITDA = 35 M€ EBITDA = 31 M€ EBITDA = 12 M
Slide 7: Strategy based on sustainable growth
Strategy based on sustainable growth Strengthen white cement global leadership, 2019 EBITDA breakdown focus on high-added value solutions and special cements (FuturecemTM) Asia Pacific Significant green investments of 100 M€ (10% Italy Egypt 9% of mkt cap) over the 2020-2022 Industrial Plan 2% 3% Im
Slide 8: White cement global leadership
White cement global leadership El Arish plant, Egypt 8
Slide 9: White Cement: unique competitive position
White Cement: unique competitive position 3.3 Mt 2.7 Mt White cement and clinker Cement Capacity volumes sold in 2019 Global leadership in white cement Local leadership #1 in USA, Continental Europe, and production Australia and South East Asia Leader in global trading flows 25% Share of Global In 2
Slide 10: White cement consumption by Region (Mt)
White cement consumption by Region (Mt) Eastern Europe and CIS CAGR 3.2% White cement belt Western 2014 2019 Europe China CAGR 2.1% CAGR 1.8% North America CAGR 5.9% 2014 2019 2014 2019 2014 2019 Middle East CAGR -1.6% Asia ex China CAGR 2.9% Africa CAGR -6.2% Latin America 2014 2019 CAGR -1.8% 2014
Slide 11: Largest white cement manufacturers' capacity (Mt - 2019)
Largest white cement manufacturers’ capacity (Mt - 2019) 1.6x 3,30 2,01 * 1,61 1,36 * 1,20 0,97 0,90 0,90 0,87 0,80 0,70 Share of global white cement capacity (Total = 28.4 Mt) ~12% ~7% ~6% ~5% ~4% ~3% ~2% Source: Cementir estimates, CW Research. * Cimsa capacity excludes Buñol plant (650kt of capac
Slide 12: Differences between white and grey cement
Differences between white and grey cement White Cement Grey Cement ✓ Special / «Niche» product: high value, small ✓ «Commodity» product: basic value, large volumes volumes ✓ Consumption driven by home renovation, ✓ Consumption driven by infrastructure & restructuring and new construction techniques.
Slide 13: Unlimited applications of White Cement
Unlimited applications of White Cement 2. Paving blocks: Kerb, Poland Segments: 1.Pre-stressed and Ordinary Reinforced Precast 2.Precast Products 3.Artificial Stones 4.GRC (Glass Fiber Reinforced Concrete) 1. Pre-stressed concrete façade: Chengdu 3. Artificial stone: Villa façade application, 5.UHPC
Slide 14: Cementir key innovations
Cementir key innovations Ultra-high Glass Fiber 3D Concrete Magnetic Concrete FutureCEMTM Performance Reinforced printing mix Concrete (UHPC) Concrete (GFRC) Sustainable patented solution Ready-to-use, self- Ready-to-use, high Ready-to-use, high for cement, RMC and innovative compacting RMC products
Slide 15: Green Capex Highlights
Green Capex Highlights Aalborg plant, Denmark 15
Slide 16: Innovation drive and Sustainability / Digitization Targets
Cementir Innovation drive and Sustainability / Digitization Targets Innovation Sustainability Digitization Research Quality and Technical centre 30% CO2 emissions reduction target New digitization program to with > 40 dedicated employees by 2030 streamline industrial processes Proprietary FUTURECEMT
Slide 17: Main initiatives to achieve CO2 reduction targets
Main initiatives to achieve CO2 reduction targets Clear Roadmap Both in Grey and White Cement ✓ Actions Short-term (1-3yrs) Mid-term (4-6yrs) Long-term (7-10yrs) 30% CO2 reduction target by 2030 Investments on kilns to optimize heat Specific Heat Consumption consumption Increase alternative fuel con
Slide 18: Digitization is driving our results
Digitization is driving our results Detailed timeline with clear targets EBITDA impact starting to materialise in 2020 • Specific initiatives identified across all areas including 100% production, maintenance and logistics ~€15m of savings run-rate by 2023 (2023E) • Phase I implementation already on
Slide 19: H1 2020 Results Highlights and Guidance
H1 2020 Results Highlights and Guidance Aalborg plant, Denmark 19
Slide 20: 2020 First Half results highlights
2020 First Half results highlights • Revenues reached 570.4 M€ (-3.6%) due to Covid19 impact especially in Belgium, France, Malaysia and Norway. − Cement volumes sold were up by 6.3% thanks to a 40% increase in Turkey • EBITDA reached 97.8 M€ (-11.2%) despite a 5.6 M€ one- off impact from settlement
Slide 21: How we dealing with Covid-19 pandemic
How we dealing with Covid-19 pandemic Following the Covid-19 outbreak, the following actions have been undertaken: ➢ Priority assigned to health and safety (social distancing, turnover, smart working) ➢ Focus on cash preservation, with particular focus on: ― Trade Receivables ― Inventory levels ― Ca
Slide 22: Main Impact of Covid-19 on our business in H1
Main Impact of Covid-19 on our business in H1 ➢ Plant closures in China (24 January to 21 February) and Malaysia (18 March to 17 April). Other plants have witnessed temporary activity slowdowns. ➢ Situation by region: Nordic & Baltic: Activity levels remained broadly in line with the previous year B
Slide 23: Nordic & Baltic
Nordic & Baltic (1) • Denmark − Domestic cement volumes up by 8% due to increased market activity 44% and favourable weather conditions − White cement exports slightly down for timing differences in US 69% shipments and lower volumes to UK and France; grey cement exports declined due to Covid19 Shar
Slide 24: Belgium and France
Belgium and France (1) 24% • Belgium 19% • France Share of Share of Group Revenue Group Ebitda H1 2020 H1 2020 − Grey cement and clinker volumes were down by 10%, with a drop of 30% in March, April and May caused by Covid19. June volumes increased by 7%. Prices up in line with inflation − RMC volume
Slide 25: North America
North America 10% 12% Share of Share of Group Revenue Group Ebitda H1 2020 H1 2020 • United States − White cement sales volumes declined by 4.7% especially in April and May, due to Covid19. Lower sales in Florida and some EUR '000 H1 2020 H1 2019 Chg % delays in relevant projects, with average price
Slide 26: Asia Pacific
Asia Pacific • China 8% 6% − White cement and clinker sales volumes declined by 10% due to plant shutdown between January 24th and February 21st − Sales prices in local currency rose also due to favorable mix despite tough competition − EBITDA up by 11% thanks to higher sales prices and lower fuel a
Slide 27: Turkey
Turkey (1) -9% 9% • Turkey − Grey cement volumes increased by around 40%, with domestic Share of Share of sales volumes up 25% driven by infrastructural projects near Group Revenue Group Ebitda Elazig and new projects in Trakya and Kars. Exports nearly H1 2020 H1 2020 doubled thanks to new markets o
Slide 28: Egypt
Egypt 4% 3% Share of Group Revenue Share of Group Ebitda • Egypt H1 2020 H1 2020 − White cement domestic volumes declined by 10% due to Government curfew. Significant recovery in June. Domestic prices in line with inflation − White export volumes increased by 13% to all destinations with EUR '000 H1
Slide 29: Consolidated Income Statement
Consolidated Income Statement (EUR million) H1 2020 H1 2019 Chg % REVENUE FROM SALES AND SERVICES 570.4 591.9 (3.6%) Change in inventories (5.3) 4.7 (211.1%) Other revenue 7.4 7.5 (1.7%) TOTAL OPERATING REVENUE 572.5 604.2 (5.2%) Raw materials costs (217.5) (231.5) (6.1%) Personnel costs (95.2) (96.
Slide 30: 2020 Full Year Guidance
2020 Full Year Guidance • Revenues ~ Eur 1,2 BN • EBITDA ~ Eur 230-240 M • NFP ~ Eur 180 M • Capex ~ Eur 60 M This forward-looking indication does not include new outbreaks of the Covid 19 pandemic in the coming months. The foregoing exclusively reflects the point of view of the company's management
Slide 31: Appendix
Appendix Gaurain plant, Belgium 31
Slide 32: Reclassified Balance sheet
Reclassified Balance sheet EUR million CAPITAL EMPLOYED 31/12/2019 31/12/2018 NON CURRENT ASSETS & LIABILITIES Tangible, intangible and financial assets 1,520.2 1,462.4 Deferred taxes assets/ liabilities (96.3) (98.5) Other non current assets/ liabilities (76.0) (72.8) TOTAL NON CURRENT ASSETS & LIA
Slide 33: Consolidated income statement
Consolidated income statement (EUR million) 2019 2018 Chg % REVENUE FRO M SALES AND SERVICES 1 ,2 1 1 .8 1 ,1 9 6 .2 1 .3 % Change in inventories 5.8 12.4 (53.2%) Other revenue 25.8 31.1 (17.2%) TO TAL O P ERATING REVENUE 1 ,2 4 3 .4 1 ,2 3 9 .7 0 .3 % Raw materials costs (466.4) (479.3) (2.7%) Pers
Slide 34: Turkey and Egypt historical figures
Turkey and Egypt historical figures Turkey – cement capacity and consumption (Mt)1 Turkey Egypt EDIRNE EL ARISH KARS IZMIR ELAZIG Grey cement plants (#4) White cement plant (#1) RMC plants Waste Egypt – EBITDA evolution €M Cimentas – EBITDA evolution €M 2 PEAK PEAK 1 Source: Turkish Cement Manufactu
Slide 35: Strong M&A track record
Strong M&A track record Since 2001 over EUR 1.7 billion invested with no recourse to shareholders (M€) 600 254 312 152 112 125 87 -315 2001 2004 2005 2006 Jul-16 Oct-16 Jan-18 Mar-18 2001 - Cimentas AS and Cimbeton AS Jul. 2016 - Sacci Entered the Turkish cement market with 2 plants Cement and ready
Slide 36: 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
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