Cementir Holding N.v. · MIL:CEM
Cementir — ESG Presentation (September 2024)
37 slides from Cementir's sustainability presentation, Sep 10, 2024
Slide 1: Euronext Sustainability Week ESG Investor Presentation
Euronext Sustainability Week ESG Investor Presentation 10 September 2024 Euronext Sustainability Week | Virtual 10 September 2024
Slide 2: Agenda
Agenda 2023 Group Highlights 3 ESG strategy 9 2024 First Half results and 2024 Guidance 22 Appendix 32 2
Slide 3: Group Highlights
Group Highlights Navitas Science and Innovation Building, Denmark 3
Slide 4: 2023 Group Highlights
2023 Group Highlights REVENUE EBITDA EMPLOYEES CEMENT CAPACITY 1.69 Bn€ 411 M€ 3,045 13.1 M tons Annually -1.7% vs. 2022 +22.6% vs. 2022 TRAINING PER LTI FREQUENCY CO2 EMISSIONS** CO2 EMISSIONS** CAPITA RATE* Grey cement White cement 26 hours 2.9 +18% vs. 2022 vs. 4.2 in 2022 655 kg /ton 846 kg /ton
Slide 5: Industrial footprint
Industrial footprint PLANTS Cement plants: 11 Terminals: 65 RMC plants: 101 Quarries: 34 Precast products plants: 1 Waste management facilities: 1 CAPACITY / SALES Grey cement capacity: 9.8 mt Aalborg, DK White cement capacity: 3.3 mt Grey cement sales: 8.0 mt White cement sales: 2.7 mt Gaurain, BE
Slide 6: Business segments
Business segments GREY CEMENT WHITE CEMENT READY-MIXED CONCRETE AGGREGATES CONCRETE PRODUCTS / WASTE VOLUMES SOLD VOLUMES SOLD VOLUMES SOLD VOLUMES SOLD WASTE PROCESSED * (mt) (mt) (mm3) (mt) (mt) 11.1 10.5 8.2 8.0 8.0 3.0 9.4 2.8 2.7 5.1 4.8 0.22 4.3 0.16 0.06 2021 2022 2023 2021 2022 2023 2021 202
Slide 7: Our Strategy is based on five pillars
Our Strategy is based on five pillars We pursue a sustainable growth strategy aimed at creating value for all stakeholders ▪ Push towards product and value chain circularity 2023 EBITDA BREAKDOWN (*) 1 SUSTAINABILITY ▪ Carbon capture and storage in Denmark by 2030 ▪ Focus on low carbon cements like
Slide 8: Industrial Plan update: key 2026 targets
Industrial Plan update: key 2026 targets (*) 2023 A 2026 €M ▪ ~5-6% Sales CAGR in the 2023-26 period ▪ Moderate increase in volumes, with stronger volume growth in 2024, except Revenues 1,695 ~ 2,000 for China: CAGR of 4-5% for cement; 5-6% for RMC, 4-5% for aggregates ▪ Prices broadly stable / mode
Slide 9: ESG Strategy
ESG Strategy Green Belt Bridge, Denmark 9
Slide 10: Our path to reach net zero emissions by 2050
Our path to reach net zero emissions by 2050 2050 AMBITION 2050 ▪ Net-zero greenhouse emissions across the value chain validated by SBTi NET ZERO ▪ 96.1% reduction in scope 1 and scope 2 per ton of cementitious material (2021 baseline) ▪ 90% reduction in scope 3 (2021 baseline) ▪ FUTURECEM® widespre
Slide 11: Rating improvement reflects our continued ESG commitment
Rating improvement reflects our continued ESG commitment Science Based Target initiative (SBTi) validated Cementir near and long-term decarbonization targets aligned with the 1.5°C scenario in February 2024. SBTi also approved overall net-zero emissions target by 2050 In 2024 Cementir has been inclu
Slide 12: Scope 1, 2 and 3 CO2 emissions footprint
Scope 1, 2 and 3 CO2 emissions footprint (*) INDIRECT EMISSIONS INDIRECT EMISSIONS DIRECT EMISSIONS TOTAL CO2 EMISSIONS (ELECTRICITY) (VALUE CHAIN) Scope 1 Scope 2 Scope 3 Scope 3 CEMENT and OTHER Scope 1 25% CEMENT 70% Sources: Sources: Sources: Scope 1 and 2 ▪ Process and fuel ▪ Purchased electric
Slide 13: Scope 3 emissions reduction commitment
Scope 3 emissions reduction commitment Value Chain Engagement Scope 3 emissions ▪ Since 2022 we have calculated Scope 3 emissions with a Breakdown more accurate method (physical data method) ▪ We have invited strategic suppliers to participate in the CDP Capital Goods Supply Chain program, reporting
Slide 14: Decarbonisation drive across the value chain
Decarbonisation drive across the value chain RAW MATERIALS ENERGY PRODUCTION LOGISTICS ▪ Calcined clay ▪ Switch to natural gas and ▪ Plants upgrade ▪ Predictive maintenance biomass in Aalborg ▪ GBFS, fly ash and ▪ Clinker ratio reduction ▪ Green Transportation limestone ▪ Biogenic alternative fuels
Slide 15: Scope 1 emissions: new 2030 decarbonization targets
Scope 1 emissions: new 2030 decarbonization targets (*) Kg Gross CO2 /TCE NEW ROADMAP WHITE CEMENT 2026 Target OLD ROADMAP White cement target (Kg CO2/TCE) 2030 Target -19% to 737 Kg from 915 Kg 2026 Target 737 NEW ROADMAP OLD ROADMAP GREY CEMENT 2030 Grey cement target Target (Kg CO2/TCE) TAXONOMY
Slide 16: FUTURECEM® is a key pillar of our sustainability strategy
FUTURECEM® is a key pillar of our sustainability strategy ▪ FUTURECEM® is based on a unique limestone and calcined clay ▪ 2021: Launch in Denmark with sales targets achieved synergic combination which enables around 30% CO2 reduction ▪ 2022: Launch in France and Benelux. Progressive roll-out in comp
Slide 17: D-Carb® paves the way for Aalborg White® decarbonization
D-Carb® paves the way for Aalborg White® decarbonization ▪ D-Carb® is a new umbrella brand for white low-carbon cements, ▪ D-Carb® maintains the same high short-term performance as supporting our white cement decarbonization efforts Aalborg White® CEM I, meeting tight construction timelines ▪ D-Carb
Slide 18: 2024-26 Capex highlights
2024-26 Capex highlights ▪ ~ 100 M€ of sustainability* investments, focused on INDUSTRIAL PLAN CAPEX BREAKDOWN operational efficiencies via plant upgrades and EUR million product innovation ▪ Main initiatives: − Kiln 4 upgrade in Gaurain, Belgium − Switch to lower emission factor fuels in Aalborg an
Slide 19: Capex: main initiatives for CO2 emissions reduction
Capex: main initiatives for CO2 emissions reduction RENEWABLES IN DENMARK AND BELGIUM CARBON CAPTURE AND STORAGE (CCS) ▪ Power Purchase Agreement (PPA): ▪ CORT project*: Long-term agreements with renewable ⁻ Pilot carbon capture plant capturing 1 tonCO2/day. energy providers to directly acquire ⁻ Te
Slide 20: 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 ▪ Continuous improvement of safety through Group H&S initiatives: Group policy, Group guidelines, Group Standards, Golden Rules of Safety, H&S Balanced Scorecard
Slide 21: Responsible Governance
Responsible Governance Strong governance is a pre-requisite to deliver on our ESG goals • BOARD DIVERSITY • SHORT TERM REMUNERATION 50% of Directors are women - 15%-20% of C-level remuneration linked to ESG KPIs - Based on ESG metrics relevant /material for Cementir • CYBERSECURITY AND DATA PROTECTI
Slide 22: 2024 First Half results and 2024 Guidance
2024 First Half results and 2024 Guidance 22
Slide 23: Key takeaways
Key takeaways • H1 2024 Results are in line with management expectations, with overall volumes up year on year, lower Revenues and EBITDA and net profit improvement • Cement, RMC and Aggregates volumes in positive territory year on year • Both Revenues and EBITDA impacted by important infrastructure
Slide 24: 2024 First Half results highlights
2024 First Half results highlights Revenues reached 811.8 M€ (-3.4% yoy); non-GAAP* Revenues: 803.3 M€ (-7.5% yoy) FINANCIAL HIGHLIGHTS − Cement volumes broadly flat due to the increase recorded in Türkiye, US and Malaysia offsetting volume reductions in the other regions − RMC volumes up by 4% driv
Slide 25: Nordic & Baltic
Nordic & Baltic ASSET OVERVIEW SHARE OF GROUP EBITDA DENMARK − Domestic cement declined due to harsh weather conditions in Q1 2024, and a weak residential market. Fehmarn Belt recently entered the operational phase but behind schedule (32) − RMC volumes were up 2% , while aggregates volumes declined
Slide 26: Belgium and France
Belgium and France (*) ASSET OVERVIEW SHARE OF GROUP EBITDA BELGIUM AND FRANCE − Domestic cement volumes were stable in H1 2024, with moderate growth in Q2; exports to France and the Netherlands down double-digit, mainly due to adverse weather conditions and market weakness − RMC volumes were down 1
Slide 27: Türkiye
Türkiye ASSET OVERVIEW SHARE OF GROUP EBITDA TÜRKIYE − From April 2022 Türkiye is considered “hyperinflationary”. Reported figures are non-GAAP i.e. exclude the application of IAS 15% 29 and revaluation of non-industrial property − Domestic cement volumes increased by 10% thanks to significantly hig
Slide 28: North America
North America ASSET OVERVIEW SHARE OF GROUP EBITDA UNITED STATES − White cement volume slightly up. Deliveries to Texas were impacted by both harsh weather conditions and fewer working 6% days, with the backdrop of a residential market still suffering from high interest rates. In Florida deliveries
Slide 29: Egypt
Egypt ASSET OVERVIEW SHARE OF GROUP EBITDA EGYPT − Domestic white cement volumes decreased by 12% due to a weak construction market and postponement of major public projects; 4% export volumes slightly down due to lower volumes to the US because of a different timing of deliveries − Revenue in local
Slide 30: Asia Pacific
Asia Pacific ASSET OVERVIEW SHARE OF GROUP EBITDA CHINA − Revenue decreased by 16% , with volumes declining by 11%, modest price reductions and CNY devaluation 5% − Volumes were affected by the real estate crisis, harsh weather and longer national holidays − EBITDA decreased due to lower sales volum
Slide 31: 2024 Guidance – Partially revised on Revenues
2024 Guidance – Partially revised on Revenues FINANCIAL HIGHLIGHTS • Revenues revised downwards to ~ 1.7 BN€ from ~1.8 BN€, in line with 2023 • EBITDA ~ 385 M€ (unchanged) • Net cash ~ 300 M€ (unchanged, at constant perimeter) • Capex ~ 135 M€ (unchanged) Guidance refers to like-for-like ongoing ope
Slide 32: Appendix
Appendix f Concretely Dynamic Cc cementirholding
Slide 33: Appendix - Consolidated Income Statement – FY 2023
Appendix - Consolidated Income Statement – FY 2023 2023 2022 (Non- (EUR million) 2023 2022 Chg % Chg % (Non-GAAP)* GAAP)* REVENUE FROM SALES AND SERVICES 1,694.2 1,723.1 (1.7%) 1,694.6 1,720.9 (1.5%) Change in inventories 11.7 18.7 (37.7%) 17.1 23.2 (26.6%) Increase for internal work and other incom
Slide 34: Key differences between white and grey cement
Key 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 m
Slide 35: 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 2001 - Cimentas AS and Cimbeton AS Jul. 2016 - Sacci Entered the Turkish cement market with 2 plants Cement and ready-
Slide 36: Major white cement manufacturers capacity (Mt)
Major white cement manufacturers capacity (Mt) 1.24x 3.30 2.05x 2.66 1.61 1.20 0.97 0.90 0.90 0.80 0.71 0.70 0.66 CIMSA HOLCIM JK WHITE SESCO SAUDI WHITE RAS AL JIANGXI CEMEX SOTACIB HEIDELBERG CEMENT CEMENT CEMENT KHAIMAH YINSHAN WHITE MATERIALS CEMENT CO. CEMENT CO. % Share of global white cement
Slide 37: 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