Heidelberg Materials Ag · XETR:HEI
Heidelberg Materials — H1 2023 Earnings Presentation
31 slides from Heidelberg Materials's earnings presentation, Jul 27, 2023
Slide 1: 2023 Half Year Results
2023 Half Year Results 27 July 2023 Dr. Dominik von Achten – Group CEO René Aldach – Group CFO
Slide 2: Key messages Q2 2023
Key messages Q2 2023 • Strong operational performance*: Revenue up +5%; EBITDA up +12%; RCO up +18% • Positive price over cost compensates volume pressure in the quarter, leading to margin improvement in all regions • Third tranche of 1 billion EUR share buyback program starts in July, with an amoun
Slide 3: Operational result
Operational result
Slide 4: Q2 2023 operational overview
Operational result Q2 2023 operational overview Revenue [€m] Operating EBITDA [€m] Operating EBITDA Margin Operating EBIT (RCO) [€m] +€596 m +€53 m +€48 m +€99 m +€69 m +€113 m LfL: LfL: LfL: LfL: -167 bps +158 bps LfL: LfL: +15.3% +4.6% +5.4% +12.0% +10.3% +17.5% 5,523 5,577 1,182 1,230 23.7% 931 4
Slide 5: H1 2023 operational overview
Operational result H1 2023 operational overview Revenue [€m] Operating EBITDA [€m] Operating EBITDA Margin Operating EBIT (RCO) [€m] +€1,535 m +€523 m +€67 m +€262 m +€105 m +€281 m LfL: LfL: LfL: LfL: -218 bps +174 bps LfL: LfL: +20.4% +8.5% +5.8% +21.3% +13.5% +37.5% 10,473 1,720 1,787 19.2% 1,189
Slide 6: Q2 2023 Operating EBIT (RCO) bridge [€m]
Operational result Q2 2023 Operating EBIT (RCO) bridge [€m] +€140 m (+18%) 271 8 939 -8 931 817 -19 799 -139 Q2 2022 RCO Currency Q2 2022 Net volume Price Depreciation Q2 2023 Scope Q2 2023 RCO LfL RCO over cost LfL RCO 6 27.07.2023 2023 Half Year Results | Dr. Dominik von Achten, René Aldach
Slide 7: H1 2023 Operating EBIT (RCO) bridge [€m]
Operational result H1 2023 Operating EBIT (RCO) bridge [€m] +€327 m (+38%) 520 13 1,199 -10 1,189 908 -36 872 -205 H1 2022 RCO Currency H1 2022 Net volume Price Depreciation H1 2023 Scope H1 2023 RCO LfL RCO over cost LfL RCO 7 27.07.2023 2023 Half Year Results | Dr. Dominik von Achten, René Aldach
Slide 8: North America
Operational result North America Q2 Q2 Q2 2021* 2022 2023 +104 +36 LfL: +8% LfL: +13% +129 bps 1,300 1,404 251 256 19.7% 1,269 220 16.9% 18.2% Revenue [€m] RCO [€m] RCO Margin • Good result and margin development despite continuing weakness in residential sector • Price over cost continues to be pos
Slide 9: Western & Southern Europe
Operational result Western & Southern Europe Q2 Q2 Q2 2021 2022 2023 +53 +67 +334 bps LfL: +3% LfL: +30% 1,709 1,762 315 17.9% 1,531 248 14.0% 14.5% 214 Revenue [€m] RCO [€m] RCO Margin • Residential sector driven volume weakness continues • Positive price over cost delivers solid margin improvement
Slide 10: Northern & Eastern Europe - Central Asia
Operational result Northern & Eastern Europe - Central Asia Q2 Q2 Q2 2021 2022 2023 -8 +11 LfL: +3% LfL: +9% +128 bps 987 979 207 197 23.9% 867 186 18.9% 20.2% Revenue [€m] RCO [€m] RCO Margin • Persisting subdued demand in most countries • RCO improvement driven by solid operational performance • M
Slide 11: Asia - Pacific
Operational result Asia - Pacific Q2 Q2 Q2 2021 2022 2023 +1 +21 LfL: +8% LfL: +37% +239 bps 873 874 103 96 13.6% 754 11.0% 75 8.6% Revenue [€m] RCO [€m] RCO Margin • Solid increase in region RCO and margin • Positive price over cost driven by price increases and moderating energy prices • Clear pos
Slide 12: Africa – Eastern Mediterranean Basin
Operational result Africa – Eastern Mediterranean Basin Q2 Q2 Q2 2021 2022 2023 -51 -5 LfL: +9% +84 bps LfL: +10% 510 102 93 22.2% 460 459 87 18.2% 19.0% Revenue [€m] RCO [€m] RCO Margin • LfL revenue increases +9%, despite a difficult comparison base driven by very strong demand in prior year • Mar
Slide 13: Financial highlights
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Slide 14: H1 2023: Good improvement in all financial KPIs
Financial highlights H1 2023: Good improvement in all financial KPIs Revenue RCO Clean EPS Net debt Shareholder reduction return (LTM) €10.5 bn €1,189 m €3.64 €-106 m €695 m +9% LfL +38% LfL +16% vs. June 2022 Solid pricing drives Price over cost Significant increase, Solid FCF generation Focus on s
Slide 15: Adjusted EPS increases by 16%
Financial highlights Adjusted EPS increases by 16% Income Statement [€m] H1 2022 H1 2023 Delta Key items below RCO Revenue 9,950 10,473 523 Additional ordinary result: RCOBD (Operating EBITDA) 1,525 1,787 262 • 2023: +€40 m gain from financial asset sales Depreciation and amortization -617 -598 19 •
Slide 16: Solid increase in free cash flow leads to higher cash conversion
Financial highlights Solid increase in free cash flow leads to higher cash conversion Free cash flow (€m) H1 2022 H1 2023 Delta Free cash flow drivers Operating EBITDA 1,525 1,787 262 Working capital: Change in working capital -1,404 -1,265 139 • Seasonal build-up as construction activity Net intere
Slide 17: 1 €bn share buyback program
Financial highlights 1 €bn share buyback program 1st tranche 2nd tranche 3rd tranche starts in July 2023 Period Aug – Dec 2021 Mar – Jul 2022 • Amount up to €300 m Shares outstanding 198,416,477 193,091,900 • To be completed in 2023 # shares repurchased 5,324,577 6,906,281 • Shares acquired during t
Slide 18: Net debt development (€m)
Financial highlights Net debt development (€m) -106 6,792 514 6,686 90 122 484 503 -331 -1,487 Net debt FCF Acquisitions Disposals Group Minority Share buyback Currency/ Net debt June 2022 Dividends Dividends accounting/ June 2023 leasing Shareholder return 18 27.07.2023 2023 Half Year Results | Dr.
Slide 19: Sustainability
Sustainability
Slide 20: All sustainability KPIs on track
Sustainability All sustainability KPIs on track Specific net CO2 emissions Alternative fuel rate [kg CO2/t cementitious material] -2.4% 750 +150 bps 45.0% 551 551 538 27.8% 28.7% 29.3% 400 2.9% 1990 June 2022 Dec 2022 June 2023 2030 1990 June 2022 Dec 2022 June 2023 2030 Clinker incorporation factor
Slide 21: GeZero – first fully decarbonised cement plant in Germany
Sustainability GeZero – first fully decarbonised cement plant in Germany − GeZero showcasing an entire CCS value chain solution for an inland location − Project includes a transport solution to bridge the gap until the necessary pipeline infrastructure will be available − Facility also captures emis
Slide 22: Outlook
Outlook
Slide 23: Guidance further upgraded
Business outlook & key takeaways Guidance further upgraded Business outlook 2023 Guidance 2023 LfL revenue growth* Increase in infrastructure projects and parts of non-residential expected to RCO between €2.7-2.9 bn partly offset slowdown in residential (previously: between €2.50-2.65 bn) sector Cap
Slide 24: Key messages Q2 2023
Key messages Q2 2023 • Strong operational performance*: Revenue up +5%; EBITDA up +12%; RCO up +18% • Positive price over cost compensates volume pressure in the quarter, leading to margin improvement in all regions • Third tranche of €1 bn share buyback program starts in July, with an amount of up
Slide 25: Appendix
Appendix
Slide 26: Currency and scope impacts
Appendix Currency and scope impacts Operating EBITDA Operating EBIT (RCO) Scope & Currency Revenue (€m) (€m) (€m) Q2 2023 Scope Currency Scope Currency Scope Currency North America 25 -25 6 1 3 3 West / South Europe 8 -12 -3 -3 -5 -2 North / East Europe 0 -37 -4 -3 -4 -1 Asia Pacific 0 -62 0 -9 0 -5
Slide 27: Operational result
Appendix Operational result Operating Result Revenue Operating EBITDA Operating EBITDA Margin Operating EBIT (RCO) Quarter [€m] Q2 22 Q2 23 Change LfL Q2 22 Q2 23 Change LfL Q2 22 Q2 23 Change LfL Q2 22 Q2 23 Change LfL North America 1,300 1,404 8.0% 8.1% 303 332 9.7% 7.4% 23.3% 23.7% +37 bps -16 bp
Slide 28: Significant carbon reduction through sector’s first CCS project already in 2024
Sustainability Significant carbon reduction through sector’s first CCS project already in 2024 2024 2025 2026 2028 2029 2030 CCS CC CCUS CCUS CCS GeZero CCS Brevik, Norway Hanover, Germany Edmonton, Canada Padeswood, UK Geseke, Germany Slite, Sweden Capacity: LEILAC 1: finalised Capacity: Capacity:
Slide 29: Financial Calendar & IR Contacts
Financial Calendar & IR Contacts Upcoming events: 2 November 2023: Q3 Trading Update Contacts: Christoph Beumelburg Group Director COM & IR / +49 6221 48113249 Ozan Kacar Head of Investor Relations / +49 6221 48113925 Katharina Forster Senior Manager IR / +49 6221 48141016 Samuel Jacob IR Manager /
Slide 30: Disclaimer
Disclaimer •Unless otherwise indicated, the financial information provided herein has been prepared under International Financial Reporting Standards (IFRS). All the figures included in this presentation are preliminary, unaudited and subject to revision upon completion of the Company's closing and
Slide 31: Heidelberg Materials
Heidelberg Materials