Cementir Holding N.v. · MIL:CEM
Cementir — J.P. Morgan Pan-European Small/Mid Cap CEO Conference 2023
33 slides from Cementir's conference presentation, Mar 14, 2023
Slide 1: J.P. Morgan Pan-European Small/Mid Cap CEO Conference Investor presentation
J.P. Morgan Pan-European Small/Mid Cap CEO Conference Investor presentation J.P. Morgan Pan-European Small/Mid Cap CEO Conference | London, 14 March 2023
Slide 2: Agenda
Agenda Group Highlights 3 ESG commitment and 2023-2025 Industrial Plan 9 2022 Full year results and 2023 Guidance 18 Appendix 28 2
Slide 3: Group Highlights
Group Highlights Youth Olympic Games Center, Nanjing (China) 3
Slide 4: Our Industrial footprint
Our 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,
Slide 5: 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 6: 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 7: White Cement: unique competitive position
White Cement: unique competitive position Local presence & #1 in USA, Continental Europe, China, Australia, South-East Asia global leadership Total market of 19 Mt (0.5% of grey cement demand) Global leadership in white cement 3.3 Mt 2.8 Mt White cement and clinker volumes sold in 2022 Cement Capaci
Slide 8: Largest white cement manufacturers' capacity (Mt)
Largest 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 % share of global white cement capacity (Total capacity = 29 Mt) ~11% ~9% ~6% ~4% ~3% ~2% Source: Cementir estimates, CW Research 8
Slide 9: ESG Commitment and 2023-2025 Industrial Plan
ESG Commitment and 2023-2025 Industrial Plan CCB’s Gaurain plant, Belgium 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 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 11: Decarbonisation drive across the value chain
Decarbonisation drive across the value chain Raw Materials Energy Production Logistics ▪ Switch to natural gas and ▪ Plants upgrade ▪ Green Transportation ▪ Calcined clay Biomass in Aalborg from (Hybrid trucks) ▪ GBFS, fly ash and ▪ Clinker ratio reduction 2025 ▪ Network and routes limestone ▪ Kiln
Slide 12: Scope 1 emissions: new 2030 decarbonization targets
Scope 1 emissions: new 2030 decarbonization targets (*) SCOPE 1 EMISSIONS (kg CO2/TCE) - Grey cement Grey cement target -36% (Kg Co2/TCE) 2030 -36% from 718 to 460 kg TARGET 460 2020 2021 2022 2025 2030 Clinker ratio 82% 81% 80% 76% 64% SCOPE 1 EMISSIONS (kg CO2/TCE) - White cement -19% White cement
Slide 13: 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-
Slide 14: Rating improvement reflects our continued ESG commitment
Rating improvement reflects our continued ESG commitment Rating Ranking Scale 2022 2021 2020 (Worst-> Best) D- to A A- A- B F: no filing Climate Change D- to A A- B F F: no filing Water Security CCC to AAA BBB BBB BBB D- to A+ B+ B C- D- to A+ C+ Prime Not rated Not rated 0 to 100 55 Not rated 45 0
Slide 15: Industrial Plan update: 2025 Financial targets
Industrial Plan update: 2025 Financial targets * 2022 A 2025 EUR million 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 cov
Slide 16: Comparison with previous Industrial Plan
Comparison with previous Industrial Plan ✓ EBITDA CAGR acceleration driven by cost control ✓ Continued significant cash generation and dependable growth trajectory New 2023-2025 Industrial Plan 2022-2024 Industrial Plan Released on 4 Feb. 2021 2022A Target CAGR Target CAGR 2021A EUR million Non-GAAP
Slide 17: 2023-25 Capex highlights
2023-25 Capex highlights Industrial Plan Capex breakdown ▪ 86 M€ of sustainability* investments, focused on Euro Millions operational efficiencies via plant upgrades and product innovation ▪ Main initiatives: − Kiln upgrade in Gaurain, Belgium − Switch to natural gas in Aalborg − Facility upgrade fo
Slide 18: 2022 Full year results and 2023 Guidance
2022 Full year results and 2023 Guidance Aalborg plant, Denmark 18
Slide 19: 2022 Full Year results highlights
2022 Full Year results highlights • As from April 2022 Türkiye is considered “hyperinflationary”, results as of 31 December 2022 are prepared using IAS 29 accounting principle • Revenues reached 1,723.1 M€ (+27% yoy); non-GAAP Revenues reached 1,720.9 M€ (+ 26.5% yoy), driven by price increases − Ce
Slide 20: Nordic & Baltic
Nordic & Baltic • Denmark 38% − Cement volumes down 6% with white cement exports down 29% due 47% to a redistribution of sales in the US to other group companies and a decline in some export markets − RMC and aggregates volumes down 5% and 33%, respectively Share of Share of − EBITDA increased by 16
Slide 21: Belgium and France
Belgium and France (*) 17% 22% Share of Share of Group Revenue Group Ebitda 2022 2022 • Belgium • France − Cement volumes decreased by 2%, with negative performance in Belgium, France and Germany and slight increase in the Netherlands. − RMC volumes down by 5% (-10% reduction in Belgium and +11% gro
Slide 22: North America
North America 8% 10% Share of Share of Group Revenue Group Ebitda 2022 2022 • United States − Flat cement volume driven by higher deliveries in Texas and California against lower volumes in York and Florida region. EU R ' 000 2022 2021 Chg % − EBITDA up by 21.5% thanks to higher cement prices and po
Slide 23: Asia Pacific
Asia Pacific 6% 6% • China − Revenue up by 5.3% driven by cement price increases while volumes were down by 6% because of lockdowns, logistic Share of Share of issues, weather conditions and international political tensions Group Revenue Group Ebitda 2022 2022 − EBITDA down by 18% due to higher vari
Slide 24: Türkiye
Türkiye 14% 14% Share of Share of • Türkiye (**) Group Revenue Group Ebitda − Revenue increased by 57% in Euro terms 2022 2022 − Domestic cement volumes down by 10%, with significant lower sales in Eastern Anatolia and North-eastern Türkiye only partially offset by higher sales in Marmara and flat i
Slide 25: Egypt
Egypt 3% 3% Share of Share of Group Revenue Group Ebitda 2022 2022 • Egypt − White cement volumes declined by 3% also due to inventory buildup by Egyptian customers in December 2021 and greater competition EU R ' 000 2022 2021 Chg % − EBITDA increased by 9% driven by higher prices on both Revenue 57
Slide 26: 2023 Full Year Guidance
2023 Full Year Guidance • Revenues > 1.8 BN€ • EBITDA ~ 335-345 M€ • Net cash > 200 M€ • Capex ~ 113 M€ Guidance refers to like-for-like ongoing operations, non-GAAP (excluding IAS 29) and excluding extraordinary items These expectations do not include any intensification of the current crisis in Uk
Slide 27: Increasing shareholders return
Increasing shareholders return ✓ +22% proposed Dividend per Share 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% DPS EPS Payout Ratio 20-25% range +22% +44% 27
Slide 28: Appendix
Appendix Cc - © cementirholding 3g f Concretely Dynamic CALTAGIRONE GROU>
Slide 29: Consolidated Income Statement
Consolidated Income Statement 2022 (EUR million) 2022 2021 Chg % Chg % (Non-GAAP) REVENUE FROM SALES AND SERVICES 1,723.1 1,360.0 26.7% 1,720.9 26.5% Change in inventories 18.7 14.7 27.1% 23.2 57.7% Increase for internal work and other income 35.7 39.0 (8.4%) 38.6 (0.9%) TOTAL OPERATING REVENUE 1,77
Slide 30: Hyperinflation in Türkiye – Application of IAS 29
Hyperinflation in Türkiye – Application of IAS 29 Hyperi nf l a ti on 31/12/2022 (EUR million) 31/12/2022 From April 2022, Türkiye is considered hyperinflationary Ef f ect ( N on- G A A P) based on the criteria of IAS 29 – Financial reporting in Total assets 1,494.0 203.9 1,290.1 hyperinflationary e
Slide 31: 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 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: 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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