Slide 1: 2022 Full Year Results
23 February 2023 Dr. Dominik von Achten – Group CEO René Aldach – Group CFO
Slide 2: Highest Q4 result in Heidelberg Materials' history
• Highest Q4 result in Heidelberg Materials’ history: Revenue up +11%; EBITDA up +3%; RCO up +4%* • Price over cost substantially positive in Q4 2022; strong pricing momentum continues into 2023 • Specific CO2 emissions reduced by another -2%** vs 2021 • SBTi validated our CO2 reduction targets in a
Slide 3: Full year overview
Full year overview 1) 1) 2) 3) Strong pricing +3% growth in Q4, Strong EPS We continue to Solid FCF, despite Second year in Continued good drives top-line despite weaker improvement earn a premium €-800 m working row with record progress in growth volumes and high despite pressure on our cost of cap
Slide 4: Operational result
Operational result
Slide 5: Operational result Q4
Operational result +18.5% +12.1% +4.7% +4.4% LfL: LfL: LfL: LfL: -255 bps -142 bps +7.0% +4.9% +16.8% +10.6% +2.3% +3.1% LfL: LfL: +5.1% +3.9% 5,293 1,021 21.8% 694 20.7% 19.3% 4,724 661 4,466 976 979 648 Q4 2020 Q4 2021 Q4 2022 Q4 2020 Q4 2021 Q4 2022 Q4 2020 Q4 2021 Q4 2022 Q4 2020 Q4 2021 Q4 2022
Slide 6: Operational result full year
Operational result +19.8% +12.7% +0.9% -3.5% +4.8% -5.3% LfL: LfL: LfL: LfL: -333 bps -297 bps LfL: LfL: +20.4% +11.9% +0.4% -5.1% +5.1% -6.1% 21,095 3,875 21.1% 20.7% 2,614 17.7% 2,476 18,720 3,739 17,606 3,707 2,363 FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022 FY 2020 FY
Slide 7: Q4 EBITDA bridge
Operational result [€m] 129 1,032 -11 1,021 23 1,002 -98 979 Q4 2021 EBITDA Currency Q4 2021 Net volume Price over cost Q4 2022 Scope Q4 2022 EBITDA LfL EBITDA LfL EBITDA 7 23.02.2023 2022 Full Year Results | Dr. Dominik von Achten, René Aldach
Slide 8: Operational result trends
Operational result 21.2% 21.8% 17.9% 16.5% 14.6% 13.5% 11.5% 10.7% 3.4% 3.3% 1.6% 2.3% 1.1% 0.2% Jun 21 Sep 21 Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 Jun 21 Sep 21 Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 8 23.02.2023 2022 Full Year Results | Dr. Dominik von Achten, René Aldach
Slide 9: Price over cost turns positive
Operational result • Price over cost turns positive, driven by successfully implemented customer 129 excellence program and well-managed cost base. • Current forward/spot energy prices give us confidence to further improve price over cost vs. prior year. -4 -16 • Positive trend continues into early
Slide 10: Full year EBITDA bridge
Operational result [€m] 162 4,037 -154 3,875 -52 3,831 -91 3,739 FY 2021 EBITDA Currency FY 2021 LfL Net volume Price over cost FY 2022 Scope FY 2022 EBITDA EBITDA LfL EBITDA 10 23.02.2023 2022 Full Year Results | Dr. Dominik von Achten, René Aldach
Slide 11: North America
Operational result Q4 Q4 Q4 2020 2021 2022 -8.2% -5.7% • Strong EBITDA in Q4: Up +5.9 % (LfL) LfL: -4.0% LfL: LfL: -7.2% -9.2% -9.2% • Good margin development despite 3,9 3,5 31,1 30,7 28,9 1,9 continued high costs inflation 3,2 1,4 1,4 • Accelerated pricing momentum drive CEM [mt] AGG [mt] RMC [mm3
Slide 12: West / South Europe
Operational result Q4 Q4 Q4 2020 2021 2022 -17.1% -8.3% -12.1% • Strong pricing and well-managed LfL: LfL: LfL: -15.7% -7.1% -10.5% cost control 7,5 7,4 20,4 19,7 18,0 4,6 4,5 • Price over cost continues to be 6,1 4,0 positive in the region CEM [mt] AGG [mt] RMC [mm3] • EBITDA stable at previous yea
Slide 13: North / East Europe
Operational result Q4 Q4 Q4 2020 2021 2022 -7.3% -11.4% -7.8% LfL: LfL: LfL: -7.3% -7.6% -5.6% • Positive price over cost development continues in Q4 2022 5.7 5.7 5.3 12.4 12.8 11.4 1.6 1.6 1.4 • EBITDA margin improvement driven by successful price increases CEM [mt] AGG [mt] RMC [mm3] • Volume decl
Slide 14: Asia Pacific
Operational result Q4 Q4 Q4 2020 2021 2022 -1.7% -0.9% +2.5% • EBITDA increased by +8.5% as a LfL: LfL: LfL: -1.7% -0.9% +2.5% result of strong pricing momentum across the region 9,1 9,0 8,9 9,6 9,9 9,8 2,8 2,8 2,8 • Price over cost turns positive in the quarter CEM [mt] AGG [mt] RMC [mm3] • Austral
Slide 15: Africa / Mediterranean Basin
Operational result Q4 Q4 Q4 2020 2021 2022 +1.5% +1.5% -13.3% • Solid increase in revenue, driven LfL: LfL: LfL: +1.6% +1.5% -13.3% mainly by price increases 5,5 5,3 5,4 2,0 2,0 2,0 1,4 1,4 1,2 • Q4 2022 EBITDA margin under pressure due to challenging high inflation environment and local CEM [mt] AG
Slide 16: Financial highlights
Financial highlights
Slide 17: Financial highlights
• Clean EPS at €9.5 (vs. €7.9 prior year) • Solid FCF generation of €1.3 bn, despite pressure due to building up of working capital (€-0.8 bn) • Leverage at a very comfortable level of 1.48x • ROIC at 9.1% despite pressure on operating result and increase in invested capital • Focus on shareholder r
Slide 18: Income statement overview
Financial highlights Revenue 18,720 21,095 2,375 RCOBD (Operating EBITDA) 3,875 3,739 -135 Additional ordinary result: Depreciation and amortization -1,261 -1,264 -3 • 2022: €-102 m impairment Russia Result from current operations (RCO) 2,614 2,476 -139 • 2021: €+466 m net gain from sale of US West
Slide 19: Cash flow and net debt bridge
Financial highlights Cash conversion rate: 36% +533 3,739 61 417 5,532 4,999 350 -360 628 478 -805 -1,341 1,341 -1,080 -216 2022 Interest Tax Change in CapEx Other FCF Net debt FCF Net M&A Dividends Share Currency Net debt EBITDA received, payment working Net Dec 2021 buyback / other Dec 2022 net ca
Slide 20: Net debt / RCOBD leverage
Financial highlights 2.80x 2.64x 2.68x 2.35x 2.19x 1.86x 1.48x 1.29x €m 8,999 8,695 8,323 8,410 1,286 6,893 5,532 4,999 2016 2017 2018 2019 2020 2021 2022 Net debt / RCOBD Net debt IFRS 16 Leasing Impact 20 23.02.2023 2022 Full Year Results | Dr. Dominik von Achten, René Aldach
Slide 21: ROIC and invested capital
Financial highlights ROIC Invested Capital (€m) 9.3% 9.1% 7.9% 6.5% 26,471 22,814 21,174 21,341 2019 2020 2021 2022 21 23.02.2023 2022 Full Year Results | Dr. Dominik von Achten, René Aldach
Slide 22: Dividends and share buyback
Financial highlights Share buyback Dividend - Minorities 968 978 Dividend - HCAG 350 350 565 586 529 181 169 169 188 211 334 323 90 417 204 437 458 377 318 244 119 2016 2017 2018 2019 2020 2021 2022 22 23.02.2023 2022 Full Year Results | Dr. Dominik von Achten, René Aldach
Slide 23: Sustainability-linked financing
Financial highlights • >70% Intermediate (2026) and long-term (2030) targets included 44% • Design of an innovative financial donation mechanism, 22% receiver of any penalty payment is BirdLife Europe 2021 2022 Target 2025 23 23.02.2023 2022 Full Year Results | Dr. Dominik von Achten, René Aldach
Slide 24: > a5 J _ 2) -) ”
> a5 1 5 J 5 _ 2) -) ”
Slide 25: Accelerated specific CO2 reduction
• Accelerated specific CO2 reduction by another -2%* to 551 kg CO2/t cementitious material in 2022 • Increasing alternative fuel rate from 26.4% to 28.7% • Further CCUS projects announced to underline most ambitious climate targets in the industry • Building circularity platforms by acquiring leadin
Slide 26: Sustainability: CO2, alternative fuels and clinker targets
Sustainability [kg CO2/t cementitious material] -47% -1,400 bps +4,210 bps 750 82.0% 45.0% +230 bps -2% -130 bps 28.7%* 565 72.9% 26.4% 551* 71.6%* 68.0% 400 2.9% 1990 ... 2021 2022 ... 2030 1990 ... 2021 2022 ... 2030 1990 ... 2021 2022 ... 2030 * Preliminary and unaudited figures; final and audite
Slide 27: EcoCrete
Sustainability EcoCrete® Low carbon solutions for road construction Reduce materials on tremie concrete Super Pozzolanic Reuse materials on Cool cement road construction cement CO2-reduced cement and concrete Circularity through reuse or reduction of materials (compared to ordinary cement and concre
Slide 28: Carbon capture project timeline
Sustainability 2024 2025 2026 2028 2030 Brevik, Norway Hanover, Germany Edmonton, Canada Padeswood, UK Slite, Sweden Capacity: p.a. LEILAC 1: finalised Capacity: p.a. Capacity: p.a. Capacity: p.a. LEILAC 2: engineering Capacity: p.a. Mergelstetten, Germany Lixhe, Belgium Devnya, Bulgaria Mitchell, I
Slide 29: Brevik CCS
Sustainability World's first industrial-scale carbon capture plant in the cement industry. Schedule: Start of carbon capture planned for 2024. CO2 reduction p.a. (50% of plant’s total CO2 emission) For more info visit: Video Gallery | Brevik CSS (brevikccs.com) 29 23.02.2023 2022 Full Year Results |
Slide 30: Recycling acquisitions
Sustainability Concrete and asphalt recycler with sound operating assets located in North Seattle. Integrated recycling & earthmoving, AGG and RMC business in East of England Waste removal and recycling of soil, concrete hardcore and general waste from building, construction and civil engineering pr
Slide 31: Sustainability targets
Sustainability Sector leading with Targeting (lost time incident for 2030 and carbon capture at scale frequency rate) Offering Contributing to a nature positive of our concrete products by world with 2030, hence conserving natural and a resources * Details are included in appendix 31 23.02.2023 2022
Slide 32: Outlook
4 Outlook
Slide 33: Business outlook & key takeaways
Business outlook & key takeaways Increase in infrastructure projects and parts of non-residential expected to LfL revenue growth* compensate slowdown in residential sector RCO between €2.35 bn - €2.65 bn Continuous high focus on pricing across CapEx Net at around €1.1 bn all markets ROIC at around 9
Slide 34: Highest Q4 result in Heidelberg Materials' history
• Highest Q4 result in Heidelberg Materials’ history: Revenue up +11%; EBITDA up +3%; RCO up +4%* • Price over cost substantially positive in Q4 2022; strong pricing momentum continues into 2023 • Specific CO2 emissions reduced by another -2%** vs 2021 • SBTi validated our CO2 reduction targets in a
Slide 35: Appendix
35 23.02.2023 2022 Full Year Results | Dr. Dominik von Achten, René Aldach
Slide 36: Scope & Currency Q4 2022
Appendix Operating EBIT (RCO) Scope & Currency Scope Impact on Volumes Revenue (€m) EBITDA (€m) (€m) Q4 2022 CEM (kt) AGG (kt) RMC (km3) ASP (kt) Scope Currency Scope Currency Scope Currency North America 35 466 74 0 21 107 0 28 -2 19 West / South Europe -102 -241 -73 0 -14 -9 -1 -1 3 -1 North / Eas
Slide 37: Sales volumes
Appendix Sales Volumes Cement (kt) Aggregates (kt) Ready Mix (km3) Asphalt (kt) Quarter Q4 21 Q4 22 Change LfL Q4 21 Q4 22 Change LfL Q4 21 Q4 22 Change LfL Q4 21 Q4 22 Change LfL North America 3,494 3,206 -287 -9.2% 30,678 28,940 -1,738 -7.2% 1,423 1,366 -57 -9.2% 574 461 -112 -19.6% West / South E
Slide 38: Revenue and operating result
Appendix Operating Result Revenue Operating EBITDA Operating EBITDA Margin Operating EBIT (RCO) Quarter [€m] Q4 21 Q4 22 Change LfL Q4 21 Q4 22 Change LfL Q4 21 Q4 22 Change LfL Q4 21 Q4 22 Change LfL North America 1,042 1,226 17.6% 4.9% 262 306 16.9% 5.9% 25.1% 25.0% -15 bps +25 bps 184 221 20.4% 1
Slide 39: Sustainability commitments 2030
Appendix Building a Net Zero Future Building a Safe & Inclusive Future We drive the decarbonisation of our sector and provide We place the health and wellbeing of employees, communities, low-carbon products. and suppliers at the core of our business operations. CO2 & Energy Reduce our Scope 1 CO2 em
Slide 40: Financial calendar and IR contacts
• 10 May 2023: Q1 Trading Update • 11 May 2023: Annual General Meeting • 27 July 2023: Half Year Results • 03 November 2023: Q3 Trading Update Group Director COM & IR / +49 6221 48113249 Head of Investor Relations / +49 6221 48113925 Senior Manager IR / +49 6221 48141016 IR Manager / +49 6221 481396
Slide 41: Disclaimer
Unless otherwise indicated, the financial information provided herein has been prepared under the financial markets, including fluctuations in interest and exchange rates, commodity and equity International Financial Reporting Standards (IFRS). All the figures included in this presentation are price
Slide 42: Heidelberg Materials
Heidelberg Materials