Heidelberg Materials Ag · XETR:HEI
Heidelberg Materials — HeidelbergCement — H1 2019 Earnings Presentation
33 slides from Heidelberg Materials's earnings presentation, Jul 30, 2019
Slide 1: HeidelbergCement 2019 Half Year Results
HeidelbergCement 2019 Half Year Results 30 July 2019 Dr. Bernd Scheifele, CEO and Dr. Lorenz Näger, CFO Union Bridge quarry, US. Slide 1 – 2019 Half Year Results – 30 July 2019
Slide 2: Contents
Contents Page Overview 3 Results by Regions 12 Financial Report 20 Outlook 27 Appendix 29 Slide 2 – 2019 Half Year Results – 30 July 2019
Slide 3: Overview H1 2019
Overview H1 2019 Solid result improvement in H1 LfL revenue increase +7%; EBITDA increase +6%; adjusted EPS increase 38%. Strong margin improvements in Asia and Europe more than compensate the weather driven pressure in North America and weak demand in Egypt and Turkey. SG&A saving program goe
Slide 4: Operational and Financial Overview
Operational and Financial Overview Operational result overview Jun 18 Jun 19 LfL % Q218 Q219 LfL % Cement volume (‘000 t) 61,865 61,025 -0.1% 33,708 32,444 -2.4% Aggregate volume (‘000 t) 145,172 145,604 -0.7% 85,671 82,693 -4.2% 3 Ready Mix volume (‘000 m ) 22,948 24,395 3.8% 12,709 13,054 -0.5% As
Slide 5: Revenue and EBITDA Overview
Revenue and EBITDA Overview H1 – YtD 2019 vs. YtD 2018 Q2 – Q2 2019 vs. Q2 2018 Revenue growth 29.0% 18.2% EBITDA* growth 13.4% 18.0% 9.7% 13.6% 13.1% 3.1% 2.9% 2.3% 7.4% 1.8% 5.6% 3.6% 2.1% 0.5% -1.3% -3.8% -16.3% -17.3% North West/South North/East Asia/Pacific Africa/Med. North West/South North/Ea
Slide 6: H1 Operating EBITDA Bridge (m€)
H1 Operating EBITDA Bridge (m€) +5.7% 316 21 -288 151 10 1,446 20 1,286 1,195 26 -5 1,216 H118 Currency Decons. H118 LfL Price Net Costs Other H119 LfL IFRS 16 Scope H119 Reported EBITDA volume EBITDA Reported EBITDA EBITDA Solid organic EBITDA growth in H1 Previous year figures are adjusted due to
Slide 7: Q2 Operating EBITDA Bridge (m€)
Q2 Operating EBITDA Bridge (m€) +0.7% 176 -38 -164 72 6 1,050 19 0 965 33 972 945 Q218 Currency Decons. Q218 LfL Price Net Costs Other Q219 LfL IFRS 16 Scope Q219 Reported EBITDA volume EBITDA Reported EBITDA EBITDA Harsh weather conditions in US and in Europe, coupled with slow down due to new gove
Slide 8: Energy cost inflation easing
Energy cost inflation easing H1 energy cost inflation limited (+0.8%) +0.8 % +4 m€ H1 2018 Price inflation Volume impact Currency H1 2019 Energy cost expected to be below prior year in H2 Slide 8 – 2019 Half Year Results – 30 July 2019
Slide 9: Sustainability Report 2018 published
Sustainability Report 2018 published Broad overview of HeidelbergCement‘s numerous activities in the field of sustainability Commitment to UN Global Compact and UN Social Development Goals Framework: Global Reporting Initiative (GRI) Sustainability Standards 10th sustainability report of Heide
Slide 10: Vision 2050: CO2-neutral concrete
Vision 2050: CO2-neutral concrete In alignment with the Paris Agreement, we are reducing our specific net CO2 emissions per tonne of cement by 30% by 2030 compared to 1990. We achieve this through product innovation, further improvement of energy efficiency and increasing the use of alternative fu
Slide 11: Contents
Contents Page Overview 3 Results by Regions 12 Financial Report 20 Outlook 27 Appendix 29 Slide 11 – 2019 Half Year Results – 30 July 2019
Slide 12: North America
North America Q218 Q219 Q2 Market overview Q2 Operational result (m€) Positive price development in all business LfL: +4.9% LfL: -3.6% LfL: -4.7% lines. 1,297 318 228 297 223 1,144 Profitability impacted by weather driven delays in key markets. Volume growth despite heavy rainfalls in May. O
Slide 13: Western and Southern Europe
Western and Southern Europe Q218 Q219 Q2 Market overview Q2 Operational result (m€) Margin improvement continues despite lower LfL: +0.9% LfL: +7.8% LfL: +11.5% volumes in the quarter. 272 164 1,363 1,388 Significant operating leverage driven by strong 223 140 pricing. Cost pressure starting t
Slide 14: Northern and Eastern Europe - Central Asia
Northern and Eastern Europe - Central Asia Q218 Q219 Q2 Market overview Q2 Operational result (m€) Solid start in Eastern Europe was offset by LfL: -0.4% LfL: +3.8% LfL: +6.8% volume declines due to a heavy rainfall in 831 203 152 799 184 144 May. Lower volumes due to delayed infrastructure proj
Slide 15: Asia Pacific
Asia Pacific Q218 Q219 Q2 Market overview Q2 Operational result (m€) Solid margin improvement in all business lines. LfL: -1.2% LfL: +16.7% LfL: +22.2% New government formations in India, Indonesia and 804 188 125 786 Thailand resulted in lower volume demand in the 100 145 quarter. Further imp
Slide 16: Africa - Eastern Mediterranean Basin
Africa - Eastern Mediterranean Basin Q218 Q219 Q2 Market overview Q2 Operational result (m€) LfL: -2.4% LfL: -17.4% LfL: -23.7% Morocco and Sub Sahara had a positive 413 407 102 79 development but could not compensate the 88 pressure in Egypt and Turkey. 59 Outlook for Egypt and Turkey for the s
Slide 17: Group Services
Group Services Q218 Q219 Q2 Market overview Q2 Operational result (m€) Trading volume reaches 18.6 million tons. LfL: -0.2% LfL: -46.6% LfL: -49.0% Clinker FOB export prices under pressure in both 450 450 13 12 Mediterranean Basin and Asia. Significant surplus in major exporter countries, 7 6
Slide 18: Solid operational performance
Half year overview Solid SG&A Portfolio Strong FCF operational program well optimization generation performance on track continues REVENUE above Disposals Net debt goes reach 290 m€. 9 billion EUR. 80 m€ already down by secured for the No major EBITDA full year. 0.8 bn€ impact on increases by vs. pr
Slide 19: Contents
Contents Page Overview 3 Results by Regions 12 Financial Report 20 Outlook 27 Appendix 29 Slide 19 – 2019 Half Year Results – 30 July 2019
Slide 20: Key financial messages H1 2019
Key financial messages H1 2019 Adjusted Group Share of Profit rises by 38% in Q2 2019 Group Share of Profit, adjusted for AOR, increases by 93 m€ to 340 m€ in H1 2019 (PY: 247 m€). Additional ordinary result hit in Q2 2019 by non-cash loss from the sale of the Ukraine business. Interest expen
Slide 21: Income Statement as of June 2019
Income Statement as of June 2019 m€ Jun 181) Jun 19 Change Revenue 8,432 9,212 9% Revenue up by 9% driven by strong pricing and solid volumes. Result from at-equity investments 95 126 32% Result from current operations before RCOBD and RCO up double digit 1,195 1,446 21% depreciation and amortiz
Slide 22: Cash flow Statement as of June 2019
Cash flow Statement as of June 2019 m€ Jun 18 Jun 19 Change Cash flow 782 1,093 312 Cash flow up by 312 m€ Changes in working capital -854 -918 -64 driven by strong demand and good pricing. Decrease in provisions through cash payments -155 -186 -31 Cash flow from operating activities -228 -11 217
Slide 23: Portfolio optimization well on track
Portfolio optimization well on track Disposal proceeds FY2018 – H1 2019 Disposal proceeds H1 2019 m€ m€ 13 10 9 1,500 36 63 23 290 ~80 938 290 858 136 568 Shares in Ciments du Maroc, Morocco Cement plant El Minya, Egypt Ships UK Ukraine business Construction materials Dresden FY 2018 H1 2019 Total Q
Slide 24: Free Cash Flow rises to 1.3 bn€
Free Cash Flow rises to 1.3 bn€ Usage of free cash flow (m€) L12M June 20171) L12M June 20181) L12M June 20191) 890 22 1,282 1,301 390 318 204 244 527 239 377 139 18 697 417 169 FCF 2) Growth CapEx Borrowing Debt Payback Dividends HCAG Dividend to minorities LfL -754 m€ 129 697 10,483 1,363 4,167 86
Slide 25: Group balance sheet
Group balance sheet June 19 / June 18 m€ June 18 (*) Dec 18 June 19 Variance (m€) Variance (%) Assets Intangible assets 11,764 11,820 11,945 181 2% Property, plant and equipment 12,883 12,962 14,232 1,349 10% Financial assets 2,169 2,107 2,124 -45 -2% Fixed assets 26,815 26,889 28,301 1,486 6% Defer
Slide 26: Contents
Contents Page Overview 3 Results by Regions 12 Financial Report 20 Outlook 27 Appendix 29 Slide 26 – 2019 Half Year Results – 30 July 2019
Slide 27: 2019 targets and outlook confirmed
2019 targets and outlook confirmed Operations • Volume increase in all business lines Performance • Margin improvement Result • Solid revenue, EBITDA, EPS growth Portfolio • 500 m€ disposal; net growth CapEx* below 0 Leverage • Net debt reduction to 7.7 billion EUR** * * Gross growth CapEx minus dis
Slide 28: Contents
Contents Page Overview 3 Results by Regions 12 Financial Report 20 Outlook 27 Appendix 29 Slide 28 – 2019 Half Year Results – 30 July 2019
Slide 29: Change in accounting (IFRS16-Leasing & Result from associates)
Change in accounting (IFRS16-Leasing & Result from associates) Q2 2019 Q2 2019 Q2 2019 IFRS16 – Leasing (m€) EBITDA Depreciation Opr. Income North America 12 -11 1 West / South Europe 27 -24 3 North / East Europe 14 -14 -1 Asia Pacific 16 -15 2 Africa / Med. Basin 3 -4 -1 Group Service 0 0 0 HC GROU
Slide 30: Currency & Scope Impacts
Currency & Scope Impacts North America IFRS 16 Cons. Decon. Curr. Asia Pacific IFRS 16 Cons. Decon. Curr. Volume Volume Cement volume ('000 t) 3.3 -147.8 Cement volume ('000 t) 0.0 0.0 Aggregates volume ('000 t) 378.0 0.0 Aggregates volume ('000 t) 0.0 0.0 Ready mix volume ('000 m3) 92.2 0.0 Ready m
Slide 31: Sales volumes & revenues per business line
Sales volumes & revenues per business line Cement sales volumes (mt) Mar 18 Jun 18 Mar 19 Jun 19 Cement sales revenues (m€) Mar 18 Jun 18 Mar 19 Jun 19 North America 3,001 7,436 3,032 7,474 North America 313 782 333 842 West / South Europe 6,515 15,079 6,884 15,071 West / South Europe 531 1,237 599
Slide 32: Contact information and event calendar
Contact information and event calendar Date Event Contact Information 7 November 2019 Q3 Results Investor Relations Mr. Ozan Kacar Head of Investor Relations Phone: +49 (0) 6221 481 13925 Mr. Piotr Jelitto Phone: +49 (0) 6221 481 39568 ir-info@heidelbergcement.com Corporate Communication & IR Mr. Ch
Slide 33: Disclaimer
Disclaimer Unless otherwise indicated, the financial information provided herein has been prepared under International Financial Reporting Standards (IFRS). This presentation contains forward-looking statements and information. Forward-looking statements and information are statements that are not h