Cementir Holding N.v. · MIL:CEM
Cementir — Virtual STAR Conference Fall Edition 2021
40 slides from Cementir's conference presentation, Oct 13, 2021
Slide 1: Virtual STAR Conference Investor presentation
Virtual STAR Conference Investor presentation October 13th, 2021 Naturalis Biodiverity Center, Leiden, The Netherlands (Architect: Neutelings Riedijk Architects - Photo: Scagliola Brakkee) Virtual STAR Conference | 13 October 2021
Slide 2: Agenda
Agenda Group Highlights 3 White Cement Global Leadership 8 Industrial Plan and ESG commitment 14 2021 First Half Results 24 Appendix 34 2
Slide 3: Group Highlights
Group Highlights Sky Park, Bratislava (Slovakia) 3
Slide 4: Cementir at a glance
HIGHLIGHTS Cementir at a glance GROUP € 1.2 BN 2,995 12% ROCE Annual Sales Employees € 1.3 BN 13.1 M tons 20% share* Net capital White Cement employed globally Cement Capacity Data as of December 31st, 2020 * Excluding «off-white» and lower quality Asian products 4
Slide 5: Business segments
HIGHLIGHTS Business segments GROUP WASTE / CONCRETE GREY CEMENT WHITE CEMENT READY-MIXED CONCRETE AGGREGATES PRODUCTS 2020 Figures REVENUE = 779 M€ REVENUE = 391 M€ REVENUE = 92 M€ REVENUE = 26 M€ EBITDA = 208 M€ EBITDA = 35 M€ EBITDA = 31 M€ EBITDA (*) = -0.7 M€ EBITDA margin = 27% EBITDA margin =
Slide 6: Industrial Footprint
HIGHLIGHTS GROUP Industrial Footprint Plants Cement plants: 11 Terminals: 32 RMC plants: 100 Quarries: 10 Precast products plants: 1 Waste management facilities: 2 Capacity / Sales Grey cement capacity: 9.8 mt White cement capacity: 3.3 mt Grey cement sales: 7.9 mt White cement sales: 2.8 mt RMC sal
Slide 7: Strategy based on sustainable growth
HIGHLIGHTS Strategy based on sustainable growth GROUP • Strengthen white cement global leadership, 2020 EBITDA breakdown focus on high-value added solutions and special cements (FuturecemTM) Holding and Asia Pacific services • Significant green investments of 107 M€ over 9% Egypt -4% the 2021-2023 I
Slide 8: White cement global leadership
WHITE CEMENT LEADERSHIP White cement global leadership Deichman Main Library, Norway 8
Slide 9: White Cement: unique competitive position
White Cement: unique competitive position WHITE CEMENT LEADERSHIP 3.3 Mt 2.8 Mt White cement and clinker Cement Capacity volumes sold in 2020 Global leadership in white cement Local leadership #1 in USA, Continental Europe, and production Oceania and South-East Asia Global leader in trading flows 25
Slide 10: White cement consumption by macro-area
White cement consumption by macro-area Global white cement demand stands at around 19m tons in 2020e WHITE CEMENT LEADERSHIP ✓ Per capita consumption is the highest in the Middle East (approx. 14 kg), where consumption is declining ✓ All areas where Cementir Holding is leader recorded the highest pe
Slide 11: Largest white cement manufacturers' capacity
Largest white cement manufacturers’ capacity (Mt) WHITE CEMENT 1.2x LEADERSHIP 3,30 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 = 28.4 Mt) ~12% ~9% ~6% ~4% ~3% ~2% Source: Cementir estimates, CW Research. * Cimsa capacity includes Buñol plant (6
Slide 12: Unlimited White Cement applications
Unlimited White Cement applications WHITE CEMENT LEADERSHIP 2. Paving blocks: Kerb, Poland Segments: 1.Pre-stressed and Ordinary Reinforced Precast 2.Precast Products 3.Artificial Stones 4.GRC (Glass Fiber Reinforced Concrete) 1. Pre-stressed concrete façade: Chengdu 3. Artificial stone: Villa façad
Slide 13: Cementir key innovations
Cementir key innovations WHITE CEMENT LEADERSHIP Ultra-high Glass Fiber 3D Concrete FutureCEMTM Performance Reinforced printing Concrete (UHPC) Concrete (GFRC) Sustainable patented solution Ready-to-use, self- Ready-to-use, high Ready-to-use, high for cement, RMC and innovative compacting RMC produc
Slide 14: Industrial Plan & ESG Commitment
Industrial Plan & INDUSTRIAL PLAN & ESG COMMITMENT ESG Commitment Gaurain Plant, Belgium 14
Slide 15: Cementir Strategy: main priorities unchanged
Cementir Strategy: main priorities unchanged ✓ Strengthen white cement global leadership, focusing on high-added value solutions and special cements (FuturecemTM) ✓ Improve profitability and operating efficiency ✓ Pursue product and geographic diversification INDUSTRIAL PLAN & ESG COMMITMENT ✓ Lever
Slide 16: Financial targets to 2023
Financial targets to 2023 2020 2023 EUR million ➢ 4% CAGR in volumes of grey and white cement in all main geographical areas; prices in line with relevant markets and price Sales 1,225 ~ 1,470 INDUSTRIAL PLAN & ESG COMMITMENT increase in Turkey ➢ 12% aggregates volumes(1) CAGR in 2020-23; 6% CAGR in
Slide 17: Growth drivers of EBITDA vs. 2020
Growth drivers of EBITDA vs. 2020 ✓ Strong contribution expected from Turkey where trading outlook is brightening ✓ Positive trend in volumes, prices and cost containment underpin 8.8% EBITDA CAGR ✓ € 30m contribution from sustainability and digitalization from 2023 INDUSTRIAL PLAN & ESG COMMITMENT
Slide 18: Sustainability achievements and ratings
Sustainability achievements and ratings INDUSTRIAL PLAN & ESG COMMITMENT B Rating – Climate Score 54/100 Change BBB Rating Target validated in July Average industrial sector Upgraded from F in March Confirmed in December 2020 51/100 2021 2021 VIGEO: Score 43/100 Score 73/100 B Rating- Score 61/100 M
Slide 19: Target of 30% CO2 reduction by 2030
Target of 30% CO2 reduction by 2030 with current technologies Focus Areas Low carbon cements -6% grey • Product offering enhancement through FUTURECEM™ technology in both white and grey cement INDUSTRIAL PLAN & -26% white ESG COMMITMENT -20% grey • Leverage on cementitious materials such as GBFS, f
Slide 20: Capex: 2021-23 highlights
Capex: 2021-23 highlights Industrial Plan cumulative Capex • 107 M€ «green» investments to yield ~30 M€ of Green Capex = Sustainability + Digitalization INDUSTRIAL PLAN & ESG COMMITMENT annual cost savings from 2023 • Improve profitability and operational efficiency via product innovation, digitalis
Slide 21: Futurecem is a key pillar of our sustainability strategy
FutureCemTM is a key pillar of our sustainability strategy INDUSTRIAL PLAN & ESG COMMITMENT • Calcined clay is a major raw material for • Proprietary technology patented worldwide enabling 40% FuturecemTM production clinker replacement • First Step: investment in storage silo, • Lower clinker conten
Slide 22: Futurecem roll-out plan
FuturecemTM roll-out plan • Commercialization started in January 2021 in Denmark as special product • By 2030 FuturecemTM volumes sold are expected to reach around 51% of total volumes sold in Europe and 60% of grey cement volumes INDUSTRIAL PLAN & ESG COMMITMENT FuturecemTM roll-out plan - volumes
Slide 23: New breakthrough technologies: Carbon capture, usage and storage
New breakthrough technologies: Carbon, capture, usage and storage Through Aalborg Portland, Cementir participates in several CCUS projects, among which: • ConsenCUS – CarbOn Neutral cluSters through Electricity-based innovations in Capture, Utilisation and Storage INDUSTRIAL PLAN & • ESG COMMITMENT
Slide 24: 2021 First Half results
2021 First Half results 2021 FIRST HALF RESULTS Youth Olympic Games Center, Nanjing (China) 24
Slide 25: 2021 First Half results highlights
2021 First Half results highlights • Revenues reached 664.5 M€ (+16.5%) thanks to good performance in all geographies − Cement volumes up by 18.7% driven by Turkey, Belgium and Denmark • EBITDA reached 133.5 M€ (+36.6%) − Higher contribution from Turkey, Belgium, and to a lesser extent, Asia Pacific
Slide 26: Nordic & Baltic
Nordic & Baltic • Denmark 41% 52% − Both grey and white cement volumes up due to increased market activity − White cement exports up 22% due to higher deliveries to the US, UK, Share of Share of Germany, Poland, Belgium and France; grey cement exports declined Group Revenue Group Ebitda by 11% due l
Slide 27: Belgium and France
Belgium and France (*) 19% 22% • Belgium Share of Share of • France Group Revenue Group Ebitda 2021 FIRST HALF H1 2021 H1 2021 RESULTS − Cement volumes increased by 10%, thanks to favourable weather and comparison base with 2020 impacted by Covid19. Positive trend in Belgium and France while The Net
Slide 28: North America
North America 8% 10% Share of Share of 2021 FIRST HALF Group Revenue Group Ebitda • United States RESULTS H1 2021 H1 2021 − Sustained volume growth (+13%) of white cement especially in Florida and York region (PA) also due to a base effect and favorable weather despite a hurricane in Texas and snowf
Slide 29: Asia Pacific
Asia Pacific 8% 7% • China − Strong demand with white cement and clinker sales volumes up 16%, despite a rainy start of the year, supported by several projects Share of Share of − EBITDA up by 22.6% driven by higher volumes despite higher 2021 FIRST HALF Group Revenue Group Ebitda variable and fixed
Slide 30: Turkey
Turkey 11% 6% Share of Share of • Turkey (*) 2021 FIRST HALF Group Revenue Group Ebitda − Grey cement volumes increased by around 29%, with domestic sales RESULTS H1 2021 H1 2021 volumes up 40% driven by strong demand in the Marmara, Anatolian and Aegean regions − Exports declined 8% with a more fav
Slide 31: Egypt
Egypt 3% 4% Share of Share of 2021 FIRST HALF Group Revenue Group Ebitda RESULTS H1 2021 H1 2021 • Egypt − White cement domestic volumes increased by 30% − White export volumes increased by 20% after the removal of pandemic restrictions EUR '000 H1 2021 H1 2020 Chg % − EBITDA increased by 41.7% due
Slide 32: Raised 2021 Full Year Guidance
Raised 2021 Full Year Guidance • Revenues ~ 1.35 BN€ (from 1.3 BN) • EBITDA ~ 295-305 M€ (from 285-295 M€) 2021 FIRST HALF RESULTS • Net debt ~ 30 M€ (unchanged) • Capex ~ 95 M€ This forward-looking indication does not include new outbreaks of the Covid-19 pandemic in the coming months. The foregoin
Slide 33: Consolidated Income Statement - H1 2021
Consolidated Income Statement - H1 2021 (EUR million) H1 2021 H1 2020 Chg % REVENUE FROM SALES AND SERVICES 664.5 570.4 16.5% Change in inventories (2.7) (5.3) 48.5% Increase for internal work and other income 8.3 7.4 13.2% TOTAL OPERATING REVENUE 670.2 572.5 17.1% Raw materials costs (267.4) (217.5
Slide 34: Appendix
Appendix APPENDIX Aalborg plant, Denmark 34
Slide 35: Capex: main initiatives for CO2 emissions reduction
Capex: main initiatives for CO2 emissions reduction Switch to natural gas Kiln upgrade - Belgium Wind turbines • Agreement with the Danish gas • Kiln upgrade in Gaurain (Belgium) to • Wind turbines with 8.4 Mwh of green distribution company Evida to connect increase alternative fuels use from 40% el
Slide 36: Capex: other sustainability initiatives
Capex: other sustainability initiatives District Heating Digitalization Sustainable distribution • Flue gasses from the kilns are utilized in • Future-ready production: automation, remote • Increase distribution by rail, impose heat exchanger installations to transfer control and lean production, mo
Slide 37: Differences between white and grey cement
Differences between white and grey cement White Cement Grey Cement ✓ ~ 20 million tons per year ✓ > 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 materials widespread
Slide 38: Turkey and Egypt historical figures
Turkey and Egypt historical figures Turkey - Cement capacity and consumption (Mt) (*) Turkey Egypt EDIRNE EL ARISH KARS IZMIR ELAZIG Grey cement plants (#4) White cement plant (#1) RMC plants Waste APPENDIX Egypt – EBITDA evolution €M Turkey – EBITDA evolution €M (**) PEAK PEAK 2009-2018 Avg: 34.9 €
Slide 39: 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 40: 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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