Slide 1: 2021 Results Presentation
2021 Results Presentation SigmaRoc plc
Slide 2: Disclaimer
2021 Results DISCLAIMER The information contained in this presentation document (the “presentation”, which term includes any information provided verbally in connection with this presentation document) does not constitute an offer or solicitation to hold, sell or invest in any security and should no
Slide 3: Agenda
Private and Confidential Agenda Introduction David Barrett – Chairman Operational Review Max Vermorken – CEO Financial Review Garth Palmer – CFO Invest, Improve, Integrate, Innovate Max Vermorken – CEO Outlook Max Vermorken - CEO Q&A SigmaRoc 2021 Results Presentation 3
Slide 4: Introduction
Introduction By David Barrett
Slide 5: FY2021 Summary
Introduction FY2021 Summary • 5th year of significant progress with doubling of underlying EBITDA and 20% growth of underlying EPS. • Establishment of business in all target markets through acquisitions and partnerships. • Continued operational improvements at Benelux and UK platforms. • Successful
Slide 6: Statement on ongoing situation in Ukraine
Introduction Statement on ongoing situation in Ukraine • SigmaRoc strongly deplores the invasion of Ukraine by Russia. • All three SigmaRoc employees in Ukraine are safe and the Company is doing its utmost to ensure this continues to be the case. • The Group’s historical sales to Russia were de mini
Slide 7: Operations
Operations By Max Vermorken
Slide 8: Products & services across the platforms
Operations Products & services across the platforms RONEZ BLUESTONE BENELUX PPG HARRIES/JQG NORDKALK Products: Products: Products: Products: Products: Products: Aggregates, Asphalt, Dimension Stone in Construction aggregates Beam & Block, Aggregates, Asphalt, Limestone Products, Ready-Mix Concrete &
Slide 9: Group revenue mix
Operations Group revenue mix BY GEOGRAPHY BY INDUSTRY BY PRODUCT TYPE Sweden Pulp, paper & board Dimension Stone Environment Ready-Mix and CP UK + CI 6% 15% 11% Contract Poland 13% 26% Metals Services 16% & Mining 10% 10% 12% 2% Other 2% Other 5% Other 3% Baltics 8% 18% Agriculture 4% 17% 16% 55% Qu
Slide 10: British Platforms: Ronez, PPG and Harries
Operations British Platforms: Ronez, PPG and Harries • Market Backdrop FY21: Good demand for all materials thanks to housing, RMI and infrastructure spend. Supply chain challenges in Q1’21 and Q2’21 with inflationary pressures increasing in Q3’21 and Q4’21. • Ronez: Trading on both islands modestly
Slide 11: Benelux Platforms: Bluestone and BNL
Operations Benelux Platforms: Bluestone and BNL • Market Backdrop FY21: Housing demand and several large infrastructure projects launched across the Benelux helped drive demand further stimulated by RMI spend. Lockdowns and supply chain challenges did not materially impact results. • Bluestone: Very
Slide 12: North Europe Platform: Nordkalk
Operations North Europe Platform: Nordkalk • Market Backdrop FY21: Strong demand for all product streams, industrial and construction. Q4’21 energy inflation creating pressure on input costs into higher grade limestone and quicklime business streams, however, these challenges were impacting all comp
Slide 13: Financials
Financials By Garth Palmer SigmaRoc PLC 13
Slide 14: Financial performance
Financials Financial performance REVENUE UNDERLYING EBITDA (million GBP) (million GBP) £6M 2017 £27M 2017 2018 £41M +52% 2018 £10M +79% +71% £15M +48% 2019 £71M 2019 £124M +77% £24M +64% 2020 2020 +119% £49M +106% 2021 £272M 2021 UNDERLYING EPS ADJUSTED LEVERAGE RATIO (pence) 2017 2.0 2017 - 2018 3.
Slide 15: Core product volumes
Financials Core product volumes AGGREGATES DIMENSION STONE QUICKLIME (thousand tonnes) (tonnes) (tonnes) 2017 230 2017 0 2017 2018 239 2018 155 2018 2019 1,783 2019 970 2019 2020 3,111 2020 83,280 2020 2021 6,350 2021 94,232 2021 274,984 ASPHALT & CONTRACTING SERVICES READY-MIX & CONCRETE PRODUCTS H
Slide 16: Macro-conditions of the market
Operations Macro-conditions of the market COAL ELECTRICITY Average Coal Price (ATWMc1) per semester (€/ton) Monthly electricity prices on average per semester (€/MWh) H2 2020 25.465 Sweden H1 2021 42.292 +66% H2 2020 44.058 H2 2021 89.397 +111% H1 2021 64.297 +46% H2 2020 32.757 H2 2021 138.748 +116
Slide 17: Hedging and dynamic pricing
Operations Hedging and dynamic pricing • Significant input cost price pressures through the year affecting freight, energy and raw materials. • Big ticket items such as freight, energy and carbon are separately itemised on larger customer invoices and passed through at market prices. • We are active
Slide 18: EBITDA margin analysis
Operations EBITDA margin analysis IMPACT OF COST PASS-THROUGH ON MARGINS Inflation of our top-line due to: FY21 £272M -£10M Net Margin • Substantial freight & distribution cost pressures, -£2M -£11M particularly in the UK where driver availability was an issue -£7M • Higher prices paid for £242M pro
Slide 19: Income statement
Financials Income statement CONTINUED OPERATIONS 2021 2020 REVENUE 271,987 124,331 COST OF SALES (210,068) (90,028) PROFIT FROM OPERATIONS 61,919 34,203 ADMINISTRATIVE EXPENSES (31,792) (24,046) NET FINANCE EXPENSE (5,317) (2,739) OTHER NET GAINS 1,978 374 TAX EXPENSE (4,699) (662) UNDERLYING PROFIT
Slide 20: Key assets
Financials Key assets RESERVES AND RESOURCES TOTAL ASSETS (tonnes) (million GBP) 2017 9.4M 2017 £81.8M 2018 13.1M +40% 2018 £84.0M +3% 378.5M +2781% £207.8M +147% 2019 2019 374.5M -1% £257.2M +24% 2020 2020 2021 1,335.1M +256% 2021 £769.3M +199% OPERATIONAL SITES PERSONNEL 2017 6 2017 260 2018 10 +6
Slide 21: FY21 net debt evolution
Financials FY21 net debt evolution £255M 254.60 Inflow Outflow IFRS impact £49M £8M 7.93 49.26 0 (4.61) -£5M (19.14) -£19M (43.85) -£44M UNDERLYING FREE CASH FLOW £33M £23M 23.16 (140.85) (393.95) -£394M -£141M (13.96) -£14M (164.01) -£164M Opening Underlying Working Tax Net Net M&A inc Other Closin
Slide 22: Implementing our strategy
Implementing our strategy By Max Vermorken
Slide 23: Invest: Strategic positioning of the Group
Implementing our Strategy Invest: Strategic positioning of the Group • Group desired footprint further completed with north European materials platform Nordkalk • Establishment of new Benelux aggregate and RMX platform through acquisition of B-Mix and creation of Granulats du Hainaut via deal with H
Slide 24: Improve & Integrate: Granulats du Hainaut
Implementing our Strategy Improve & Integrate: Granulats du Hainaut • Q4’19 acquisition of Carrières du Hainaut to start Benelux presence with leading Dimension Stone business in Europe. • Understanding that this transaction implied the acquisition of two quarries wrapped into one: Dimension stone p
Slide 25: Improve & Integrate: Nordkalk Integration
Implementing our Strategy Improve & Integrate: Nordkalk Integration • Q4’21 spent understanding Nordkalk, Q1’22 integrations programmes launched and on schedule. • €1.5m cost synergies implemented on a like-for-like full year basis with further synergies targeted for H2’22/Q1’23. INITIATIVES Full fi
Slide 26: Innovate: Switching production to Greenbloc
Implementing our strategy Innovate: Switching production to Greenbloc CONCRETE BLOCKS PRODUCED BY PPG CO2 REDUCTION FROM GREENBLOC The UK’s first cement-free ultra-low SWITCH Volumes added Net CO2 carbon dense concrete block. through efficiency produced From January 2022, PPG platform will offer ult
Slide 27: ESG Leadership
Implementing our strategy ESG Leadership ESG Roadmap with clear target and timeline to become sector leading lime and limestone products supplier – Full ESG Report will be published in April 2022: • Roadmap includes a net zero target by 2040 including detailed steps on a journey to that point; • Roa
Slide 28: Net Zero Roadmap with further detail in ESG report
Implementing our strategy Net Zero Roadmap with further detail in ESG report 2025 All concrete products available in low carbon and 2027 ultra-low carbon 100% utilization of all production materials 2030 Carbon Capture Alternative fuels used Storage and mobile equipment utilisation trial plant opera
Slide 29: Additional potential through sustainability aspects
Implementing our strategy Additional potential through sustainability aspects • Quicklime products naturally absorb CO2 during their lifecycle, re-absorbing much of the carbon emitted for their production. • Re-carbonation occurs in >85% of quicklime applications, with a current average 33%-40% of p
Slide 30: Outlook
Outlook By Max Vermorken
Slide 31: Managing headwinds and catching tailwinds
Outlook Managing headwinds and catching tailwinds HEADWINDS TAILWINDS • Strengthening competitive position of the Group • Continued uncertainty in relation to Ukraine through efficient commercial strategies. war and potential spill overs. • Significant restructuring programmes ongoing • UPM strike i
Slide 32: Positive demand outlook with head/tailwinds
Outlook Positive demand outlook with head/tailwinds • Customer demand remains good in all products and regions in the face of headwinds with uncertainty. • "Known Unknowns" of input inflation identified and actions taken through hedging & dynamic pricing. • Nordkalk integration on schedule, efficien
Slide 33: Q&A
Q&A SigmaRoc PLC 33