Cementir Holding N.v. · MIL:CEM
Cementir — Italian Sustainability Week 2023
34 slides from Cementir's conference presentation, Sep 6, 2023
Slide 1: Italian Sustainability Week ESG Investor presentation
Italian Sustainability Week ESG Investor presentation 6 September 2023 Italian Sustainabilty Week | Digital 6 September 2023
Slide 2: Agenda
Agenda Group Highlights 3 ESG strategy 10 Appendix 29 2
Slide 3: Group Highlights
Group Highlights Youth Olympic Games Center, Nanjing (China) 3
Slide 4: 2022 Highlights
2022 Highlights Revenue EBITDA Employees Cement capacity 1.72 Bn€ 335 M€ 3,085 13.1 M tons +26.7% vs. 2021 +7.8% vs. 2021 Training per capita Workers injury rate CO2 emissions** CO2 emissions** 22 hours 4.2 Grey cement White cement +80% vs. 2021 vs. 8.0 in 2021 672 kg /ton 886 kg /ton vs. 684 in 202
Slide 5: Industrial footprint
Industrial footprint Plants Cement plants: 11 Terminals: 60 RMC plants: 102 Quarries: 34 Precast products plants: 1 Waste management facilities: 2 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: 2.8 mt Gaurain, BE
Slide 6: Business segments
Business segments CONCRETE PRODUCTS / GREY CEMENT WHITE CEMENT READY-MIXED CONCRETE AGGREGATES WASTE 2022 Figures REVENUE =1,137 M€ REVENUE = 530 M€ REVENUE = 105 M€ REVENUE = 10 M€ EBITDA = 267 M€ EBITDA = 51 M€ EBITDA = 35 M€ EBITDA = -0.9 M€ EBITDA margin = 24% EBITDA margin = 10% EBITDA margin =
Slide 7: Our Strategy is based on five pillars
Our Strategy is based on five pillars Sustainable growth to create value for all stakeholders 1 Push towards product and value chain circularity 2022 EBITDA breakdown (*) Sustainability Carbon capture and storage in Denmark by 2030 Asia Pacific Focus on low carbon cements like 2 FUTURECEM® Egy
Slide 8: Industrial Plan update: 2025 Financial targets
Industrial Plan update: 2025 Financial targets (*) 2022 A 2025 €M Non-GAAP ~5-6% Sales CAGR in the 2022-25 period 3% cement volumes CAGR ; flat RMC volumes, 2-3% aggregates volumes Revenues 1,721 ~ 2,000 CAGR, despite flat/negative trend in 2023 Price increases across all markets to cover cost
Slide 9: 2023 Full Year Guidance - revised
2023 Full Year Guidance - revised • Revenues ~ 1.8 BN€ (from over 1.8 BN) • EBITDA ~ 365 M€ (up by > 7% from 335-345 M€) • Net cash > 200 M€ (unchanged) • Capex ~ 113 M€ (unchanged) Guidance refers to like-for-like ongoing operations, non-GAAP (excluding IAS 29) excluding extraordinary items These e
Slide 10: ESG Strategy
ESG Strategy Green Belt Bridge, Denmark 10
Slide 11: Our path to reach net zero emissions by 2050
Our path to reach net zero emissions by 2050 2050 AMBITION 2050 Net Zero scope 1, scope 2 and scope 3 emissions NET ZERO FUTURECEM® widespread use 100% fossil fuels-free energy Implementation of Carbon Capture & Storage technology, if economically viable Carbon offset as an option to compe
Slide 12: Rating improvement reflects our continued ESG commitment
Rating improvement reflects our continued ESG commitment Rating Ranking Scale 2023 2022 2021 2020 (From F to A) D- to A F: no filing Submitted A- A- B Climate Change D- to A F: no filing Submitted A- B F Water Security CCC to AAA BBB BBB BBB BBB D- to A+ B+ B+ B C- D- to A+ C+ Prime C+ Prime Not rat
Slide 13: 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 32% CEMENT 64% Sources: Sources: Sources: Scope 1 and 2 Process and fuel Purchased electric
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 Green Transportation GBFS, fly ash and Biomass in Aalborg from Clinker ratio reduction (Hybrid trucks) limestone 2025 Network and routes Kiln
Slide 15: Scope 1 emissions: new 2030 decarbonization targets
Scope 1 emissions: new 2030 decarbonization targets (*) Kg CO2 Gross/TCE NEW ROADMAP WHITE CEMENT 2025 Target OLD ROADMAP White cement target (Kg CO2/TCE) 2030 Target -19% to 738 Kg from 915 Kg NEW ROADMAP OLD ROADMAP GREY CEMENT 2025 2030 Grey cement target Target Target (Kg CO2/TCE) TAXONOMY CO2 L
Slide 16: Scope 1 emission reduction waterfall
Scope 1 emission reduction waterfall 2030 Roadmap earmarks three main levers to reduce Scope 1 emissions: FUTURECEM® and other low carbon products Increase of alternative and/or less carbon intensive fuels Thermal energy efficiencies Carbon capture in Aalborg, Denmark, from 2030 Grey cement
Slide 17: Scope 3 emissions reduction commitment
Scope 3 emissions reduction commitment Value Chain Engagement Scope 3 emissions Breakdown (*) Since 2022 we have calculated scope 3 emissions with a more accurate method (physical data method) We have invited strategic suppliers to participate in the CDP Supply Business travel Chain program, rep
Slide 18: FUTURECEM is a key pillar of our sustainability strategy
FUTURECEM® is a key pillar of our sustainability strategy Proprietary limestone calcined clay technology which enables over 2021: Launch in Denmark with sales targets achieved 30% CO2 reduction compared to ordinary Portland through clinker 2022: Launch in France and Benelux. Progressive roll-o
Slide 19: 2023-25 Capex highlights
2023-25 Capex highlights Industrial Plan Capex breakdown 86 M€ of sustainability* investments, focused on M€ operational efficiencies via plant upgrades and product innovation Main initiatives: − Kiln upgrade in Gaurain, Belgium − Facility upgrade for FUTURECEM® production in Aalborg, Denmark −
Slide 20: Capex: main initiatives for CO2 emissions reduction
Capex: main initiatives for CO2 emissions reduction Switch to Natural Gas in Denmark Kiln upgrade in Belgium Sustainable distribution Agreement with the Danish gas Kiln upgrade in Gaurain to increase Increase distribution by rail, tighter distribution company Evida to connect alternative fuels
Slide 21: Capex: main initiatives for CO2 emissions reduction
Capex: main initiatives for CO2 emissions reduction Main Initiatives in DK and BE Carbon Capture and Storage (CCS) Power Purchase Agreement (PPA): CORT project*: pilot carbon capture plant with the potential to be Oct. 2022 Long-term contracts with renewable scaled up to capture 400,000 CO2 tons
Slide 22: Main CCS challenges
Main CCS challenges The CC technologies show high energy needs, resulting to be OPEX intensive units Even the most mature technological solutions do not boast too many references on large scale industrial plants. On the other hand, scaling up and deployment of new promising technologies will req
Slide 23: EU integrated cement plants vs. CO2 storage sites
EU integrated cement plants vs. CO2 storage sites Mismatch between cement capacity and potential CO2 storage Most cement capacity is concentrated in Southern or Central EU but potential onshore storage units are located in Northern/ Eastern EU and parts of France Countries like Spain, Greece,
Slide 24: CO2 storage capacity in saline aquifers
CO2 storage capacity in saline aquifers Both our Danish and Belgian operations (100% of our EU capacity) are in a privileged position for transportation and storage solutions The largest saline aquifers and depleted oil&gas fields are concentrated in Northern or Eastern EU, with Denmark offering
Slide 25: Planned CCS sites and hubs in Europe
Planned CCS sites and hubs in Europe Most initiatives are concentrated in the Nordics, Benelux and the UK Source: Ineos 25
Slide 26: 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 27: Social commitment
Social commitment Promoting diversity and equality, people engagement and social responsibility Diversity and Inclusion Talent management Employees’ Engagement Group Diversity, Equity and Inclusion policy in Main key positions filled internally Improve employees’ engagement with a 3-year 2022:
Slide 28: Responsible Governance
Responsible Governance Strong governance is a pre-requisite to deliver on our ESG goals Sustainability Committee Within Cementir Board of Directors: 4 Directors of which 3 are non-executive and independent Board diversity Board Independence 50% of Directors are women 37% of Directors are Independent
Slide 29: Appendix
Appendix Cc cementirholding CALTAGIRONE GROUP cretely Dynamic
Slide 30: 2023 First Half results highlights
2023 First Half results highlights • From April 2022 Türkiye is considered “hyperinflationary”; hence results as of 30 June 2023 are prepared using IAS 29 accounting principle • Revenues reached 840.7 M€ (+1.1% yoy); non-GAAP* Revenues reached 868.2 M€ (+ 5.1% yoy) − Cement volumes down by 5.5% due
Slide 31: Increasing shareholders return
Increasing shareholders return +22% Dividend per Share increase vs. 2021 (payout ratio of 21.1%) The 2023-2025 Industrial Plan assumes the distribution of an increasing dividend with a payout ratio between 20% and 25% Dividend per Share Earnings per Share Payout Ratio 20-25% range +22% +44% 25%
Slide 32: Differences between white and grey cement
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 mater
Slide 33: 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 34: 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