Cementir Holding N.v. · MIL:CEM
Cementir — Cemetir Holding — FY2023 Earnings Presentation
19 slides from Cementir's earnings presentation, Feb 8, 2024
Slide 1: Preliminary 2023 results and 2024-2026 Industrial Plan update
Preliminary 2023 results and 2024-2026 Industrial Plan update 8 February 2024 Conference call | Rome, 8 February 2024
Slide 2: Agenda
Agenda 2023 Preliminary results and 2024 Guidance 3 2024 - 2026 Industrial Plan update 6 Appendix 15 2
Slide 3: 2023 Preliminary results and 2024 Guidance
2023 Preliminary results and 2024 Guidance Dredger at Aalborg, Denmark 3
Slide 4: 2023 Preliminary results highlights
2023 Preliminary results highlights FINANCIAL HIGHLIGHTS Revenues reached 1,694.2 M€ (-1.7% yoy); non-GAAP* Revenues reached 1,694.6 M€ (-1.5% yoy) − Cement volumes down by 1.6% due to Denmark, Belgium, US, Egypt and Malaysia, partially offset by growth in Türkiye and China − RMC volumes down by 11.
Slide 5: 2024 Guidance
2024 Guidance 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 other extraordi
Slide 6: Industrial Plan update 2024-2026
2024-2026 Industrial Plan update Navitas Park, Aarhus (Denmark) 6
Slide 7: Our Strategy is based on five pillars
Our Strategy is based on five pillars We strive for a sustainable growth path underpinning value creation for all stakeholders 1 2 3 4 GROWTH AND 5 PEOPLE AND SUSTAINABILITY INNOVATION COMPETITIVENESS POSITIONING ORGANIZATION ▪ Decarbonization drive ▪ Focus on low carbon ▪ Maintain high level of ▪ C
Slide 8: 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 from 2025 ▪ GBFS, fly ash and ▪ Clinker ratio reduction ▪ Green Transportation limestone ▪ Alternative fuels
Slide 9: FUTURECEM is a key pillar of our sustainability strategy
FUTURECEM® is a key pillar of our sustainability strategy ▪ Innovative limestone and calcined clay technology which ▪ 2021: Launch in Denmark with sales targets achieved enables over 30% CO2 reduction compared to ordinary Portland ▪ 2022: Launch in France and Benelux. Progressive roll-out in all thr
Slide 10: 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 738 Kg from 915 Kg 2026 Target NEW ROADMAP OLD ROADMAP GREY CEMENT 2030 Grey cement target Target (Kg CO2/TCE) TAXONOMY CO2
Slide 11: 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 contracts with renewable ▪ Pilot carbon capture plant with the potential to be scaled up to energy generators for direct
Slide 12: 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 13: 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 14: Comparison with previous Industrial Plan
Comparison with previous Industrial Plan ▪ EBITDA margin to remain at high level, despite some mean reversion ▪ Continued significant cash generation and dependable growth trajectory New 2024-2026 Industrial Plan 2023-2025 Industrial Plan Released on 8 Feb. 2023 2023A Target CAGR 2022A Target CAGR E
Slide 15: Appendix
Appendix Green Belt Bridge, Denmark 15
Slide 16: Rating improvement reflects our continued ESG commitment
Rating improvement reflects our continued ESG commitment Science Based Target initiative (SBTi) validated Cementir emission reduction objectives as consistent with the “well below 2°C” scenario in July 2021. Rating Ranking Scale 2023 2022 2021 2020 (From F to A) D- to A F: no filing A- A- A- B Clima
Slide 17: 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 18: 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 19: 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