Cementir Holding N.v. · MIL:CEM
Cementir — Non-Deal Roadshow (June 2024)
38 slides from Cementir's roadshow presentation, Jun 6, 2024
Slide 1: Madrid Roadshow 2024 Investor Presentation
Madrid Roadshow 2024 Investor Presentation Roadshow | Madrid, 6 June 2024
Slide 2: Agenda
Agenda 2023 Group Highlights 3 ESG strategy 10 2024 First quarter results and 2024 Guidance 20 Appendix 30 2
Slide 3: Group Highlights
Group Highlights Navitas Science and Innovation Building, Denmark 3
Slide 4: 2023 Group Highlights
2023 Group Highlights REVENUE EBITDA EMPLOYEES CEMENT CAPACITY 1.69 Bn€ 411 M€ 3,045 13.1 M tons Annually -1.7% vs. 2022 +22.6% vs. 2022 TRAINING PER LTI FREQUENCY CO2 EMISSIONS** CO2 EMISSIONS** CAPITA RATE* Grey cement White cement 26 hours 2.9 +18% vs. 2022 vs. 4.2 in 2022 655 kg /ton 846 kg /ton
Slide 5: Industrial footprint
Industrial footprint PLANTS Cement plants: 11 Terminals: 65 RMC plants: 101 Quarries: 34 Precast products plants: 1 Waste management facilities: 1 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: 2.7 mt Gaurain, BE
Slide 6: Business segments
Business segments GREY CEMENT WHITE CEMENT READY-MIXED CONCRETE AGGREGATES CONCRETE PRODUCTS / WASTE VOLUMES SOLD VOLUMES SOLD VOLUMES SOLD VOLUMES SOLD WASTE PROCESSED * (mt) (mt) (mm3) (mt) (mt) 11.1 10.5 8.2 8.0 8.0 3.0 9.4 2.8 2.7 5.1 4.8 0.22 4.3 0.16 0.06 2021 2022 2023 2021 2022 2023 2021 202
Slide 7: Our Strategy is based on five pillars
Our Strategy is based on five pillars We pursue a sustainable growth strategy aimed at creating value for all stakeholders ▪ Push towards product and value chain circularity 2023 EBITDA BREAKDOWN (*) 1 SUSTAINABILITY ▪ Carbon capture and storage in Denmark by 2030 ▪ Focus on low carbon cements like
Slide 8: Industrial Plan update: key 2026 targets
Industrial Plan update: key 2026 targets (*) 2023 A 2026 €M ▪ ~5-6% Sales CAGR in the 2023-26 period ▪ Moderate increase in volumes, with stronger volume growth in 2024, except Revenues 1,695 ~ 2,000 for China: CAGR of 4-5% for cement; 5-6% for RMC, 4-5% for aggregates ▪ Prices broadly stable / mode
Slide 9: 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 20 Mt (0.5% of grey cement demand) Global leadership in white cement 3.3 Mt 2.7 Mt White cement and clinker volumes sold in 2023 Cement Capaci
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 greenhouse emissions across the value chain validated by SBTi NET ZERO ▪ 96.1% reduction in scope 1 and scope 2 per ton of cementitious material (2021 baseline) ▪ 90% reduction in scope 3 (2021 baseline) ▪ FUTURECEM® widespre
Slide 12: Rating improvement reflects our continued ESG commitment
Rating improvement reflects our continued ESG commitment Science Based Target initiative (SBTi) validated Cementir near and long-term decarbonization targets aligned with the 1.5°C scenario in February 2024. SBTi also approved overall net-zero emissions target by 2050 In 2024 Cementir has been inclu
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 25% CEMENT 70% 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 ▪ Predictive maintenance biomass in Aalborg ▪ GBFS, fly ash and ▪ Clinker ratio reduction ▪ Green Transportation limestone ▪ Alternative fuels increase
Slide 15: Scope 1 emissions: new 2030 decarbonization targets
Scope 1 emissions: new 2030 decarbonization targets (*) Kg Gross CO2 /TCE NEW ROADMAP WHITE CEMENT 2026 Target OLD ROADMAP White cement target (Kg CO2/TCE) 2030 Target -19% to 737 Kg from 915 Kg 2026 Target 737 NEW ROADMAP OLD ROADMAP GREY CEMENT 2030 Grey cement target Target (Kg CO2/TCE) TAXONOMY
Slide 16: FUTURECEM® is a key pillar of our sustainability strategy
FUTURECEM® is a key pillar of our sustainability strategy ▪ FUTURECEM® is based on a unique limestone and calcined clay ▪ 2021: Launch in Denmark with sales targets achieved synergic combination which enables around 30% CO2 reduction ▪ 2022: Launch in France and Benelux. Progressive roll-out in comp
Slide 17: D-Carb® paves the way for Aalborg White® decarbonization
D-Carb® paves the way for Aalborg White® decarbonization ▪ D-Carb® is a new umbrella brand for white low-carbon cements, ▪ D-Carb® maintains the same high short-term performance as supporting our white cement decarbonization efforts Aalborg White® CEM I, meeting tight construction timelines ▪ D-Carb
Slide 18: Capex: main initiatives for CO2 emissions reduction
Capex: main initiatives for CO2 emissions reduction RENEWABLES IN DENMARK AND BELGIUM CARBON CAPTURE AND STORAGE (CCS) ▪ Power Purchase Agreement (PPA): ▪ CORT project*: Long-term agreements with renewable ⁻ Pilot carbon capture plant capturing 1 tonCO2/day. energy providers to directly acquire ⁻ Te
Slide 19: 2024-26 Capex highlights
2024-26 Capex highlights ▪ ~ 100 M€ of sustainability* investments, focused on INDUSTRIAL PLAN CAPEX BREAKDOWN operational efficiencies via plant upgrades and EUR million product innovation ▪ Main initiatives: − Kiln 4 upgrade in Gaurain, Belgium − Switch to natural gas in Aalborg and Gaurain plants
Slide 20: 2024 First quarter results and 2024 Guidance
2024 First quarter results and 2024 Guidance 20
Slide 21: Key takeaways
Key takeaways • Q1 2024 Results are in line with management expectations • Cement, RMC and Aggregates volumes in positive territory year on year • Some important infrastructure projects being delayed are expected to kick-in later in the year • Nordic & Baltic and Belgium performance impacted by fewe
Slide 22: 2024 First Quarter results highlights
2024 First Quarter results highlights Revenues reached 368.3 M€ (-11.2% yoy); non-GAAP* Revenues: 367.1 FINANCIAL HIGHLIGHTS M€ (-11.3% yoy) − Cement volumes up by 2.3% due to the increase recorded in Türkiye, which offset the reduction in volumes in the other regions − RMC volumes up by 3.7% driven
Slide 23: Nordic & Baltic
Nordic & Baltic ASSET OVERVIEW SHARE OF GROUP EBITDA DENMARK − Domestic cement declined due to harsh weather conditions, fewer working days (Easter in Q1) and a residential market still not recovering (32) − RMC volumes were down 4% , while aggregates volumes (27) 39% increased slightly − EBITDA con
Slide 24: Belgium and France
Belgium and France (*) ASSET OVERVIEW SHARE OF GROUP EBITDA BELGIUM AND FRANCE − Domestic cement volumes declined by 3% ; exports to France and the Netherlands down double-digit, due to adverse weather conditions and a general market weakness − RMC volumes were down 20% with a more significant drop
Slide 25: Türkiye
Türkiye ASSET OVERVIEW SHARE OF GROUP EBITDA TÜRKIYE − From April 2022 Türkiye is considered “hyperinflationary”. Reported figures are non-GAAP i.e. exclude the application of IAS 13% 29 and revaluation of non-industrial property − Domestic cement volumes increased by +22% thanks to significantly hi
Slide 26: North America
North America ASSET OVERVIEW SHARE OF GROUP EBITDA UNITED STATES − White cement volume declined by 4%, as deliveries to Texas and in York region were impacted by both harsh weather conditions 7% and fewer working days, with the backdrop of a residential market still suffering from high interest rate
Slide 27: Egypt
Egypt ASSET OVERVIEW SHARE OF GROUP EBITDA EGYPT − Domestic white cement volumes decreased by 16% due to a weak construction market and fewer working days; export volumes increased 5% − Revenue in local currencies was up 17.4%. Revenue in Euro declined by 1.7% because of EGP devaluation − EBITDA dec
Slide 28: Asia Pacific
Asia Pacific ASSET OVERVIEW SHARE OF GROUP EBITDA CHINA − Revenue decreased by 17% , with volumes declining by 10%, modest price reductions and 6% CNY devaluation 5% − Volumes were affected by low temperature, early closure for Chinese New Year and weak real estate demand − EBITDA decreased due to l
Slide 29: 2024 Guidance - Confirmed
2024 Guidance - Confirmed FINANCIAL HIGHLIGHTS • Revenues ~ 1.8 BN€ • EBITDA ~ 385 M€ • Net cash ~ 300 M€ • Capex ~ 135 M€ Guidance refers to like-for-like ongoing operations, non-GAAP, excluding extraordinary items The above guidance excludes the negative repercussions of geopolitical shocks or oth
Slide 30: Appendix
Appendix f Concretely Dynamic Cc cementirholding
Slide 31: Appendix - Consolidated Income Statement – FY 2023
Appendix - Consolidated Income Statement – FY 2023 2023 2022 (Non- (EUR million) 2023 2022 Chg % Chg % (Non-GAAP)* GAAP)* REVENUE FROM SALES AND SERVICES 1,694.2 1,723.1 (1.7%) 1,694.6 1,720.9 (1.5%) Change in inventories 11.7 18.7 (37.7%) 17.1 23.2 (26.6%) Increase for internal work and other incom
Slide 32: Appendix - Consolidated Income Statement – First Quarter 2024
Appendix - Consolidated Income Statement – First Quarter 2024 Q1 2024 Q1 2023 (EUR million) Q1 2024 Q1 2023 Chg % Chg % ( N on- G A A P) * ( N on- G A A P) * REV EN U E F ROM SA LES A N D SERV ICES 368.3 414.8 ( 11.2%) 367.1 413.8 ( 11.3%) Change in inventories 4.6 10.2 (55.0%) 5.2 11.1 (53.6%) Incr
Slide 33: Increased shareholders return
Increased shareholders return ▪ +27% Dividend per Share increase vs. 2022 (21.6% payout ratio) ▪ The 2024-2026 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 +27% +24% 25% 20%
Slide 34: 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 35: Key differences between white and grey cement
Key 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 m
Slide 36: Major white cement manufacturers capacity (Mt)
Major 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 CIMSA HOLCIM JK WHITE SESCO SAUDI WHITE RAS AL JIANGXI CEMEX SOTACIB HEIDELBERG CEMENT CEMENT CEMENT KHAIMAH YINSHAN WHITE MATERIALS CEMENT CO. CEMENT CO. % Share of global white cement
Slide 37: Türkiye and Egypt historical figures
Türkiye and Egypt historical figures TÜRKIYE - CEMENT MARKET (MT) (*) Türkiye Egypt EDIRNE EL ARISH KARS IZMIR ELAZIG Grey cement plants (#4) White cement plant (#1) RMC plants Waste EGYPT – EBITDA EVOLUTION €M TÜRKIYE – EBITDA EVOLUTION €M (**) PEAK PEAK (*) Source: Turkish Statistical Institute, T
Slide 38: 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