Cementir Holding N.v. · MIL:CEM
Cementir — Virtual STAR Conference – Spring Edition 2021
40 slides from Cementir's conference presentation, Mar 25, 2021
Slide 1: Virtual STAR Conference – Spring Edition Investor presentation
Virtual STAR Conference – Spring Edition Investor presentation March 25th , 2021 Naturalis Biodiverity Center, Leiden, The Netherlands (Architect: Neutelings Riedijk Architects - Photo: Scagliola Brakkee) Virtual STAR Conference | 25 March 2021
Slide 2: Agenda
Agenda Group Highlights 3 White Cement Global Leadership 8 2020 Results and 2021 guidance 14 Industrial Plan 2021-2023 update 25 Appendix 35 2
Slide 3: Group Highlights
Group Highlights Trakya plant, Turkey 3
Slide 4: Cementir at a glance
Cementir at a glance € 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: Cementir Industrial Footprint
Cementir Industrial Footprint Plants Cement plants: 11 Terminals: 32 RMC plants: 100 Quarries: 10 Precast products plants: 1 Waste management facilities: 2 Sales / Capacity Grey cement capacity: 9.8 mt White cement capacity: 3.3 mt Grey cement sales: 7.9 mt White cement sales: 2.8 mt Grey cement pla
Slide 6: Cementir operates in five business segments
Cementir operates in five business segments Vertical integration in countries with grey cement presence GREY CEMENT WHITE CEMENT READY-MIXED CONCRETE AGGREGATES WASTE / OTHER * 2020 Figures REVENUE = 779 M€ REVENUE = 391 M€ REVENUE = 92 M€ REVENUE = 99 M€ EBITDA = 208 M€ EBITDA = 35 M€ EBITDA = 31 M
Slide 7: Strategy based on sustainable growth
Strategy based on sustainable growth Strengthen white cement global leadership, 2020 EBITDA breakdown focus on high-value added solutions and special cements (FuturecemTM) Holding and Significant green investments of 107 M€ over Asia Pacific services Egypt 9% -4% the 2021-2023 Industrial Plan period
Slide 8: White cement global leadership
White cement global leadership Aalborg plant, Denmark 8
Slide 9: White Cement: unique competitive position
White Cement: unique competitive position 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% Share of Global In 202
Slide 10: White cement consumption by Region (Mt)
White cement consumption by Region (Mt) Eastern Europe and CIS CAGR 3.2% White cement belt Western 2014 2019 Europe China CAGR 2.1% CAGR 1.8% North America CAGR 5.9% 2014 2019 2014 2019 2014 2019 Middle East CAGR -1.6% Asia ex China CAGR 2.9% Africa CAGR -6.2% Latin America 2014 2019 CAGR -1.8% 2014
Slide 11: Largest white cement manufacturers’ capacity (Mt - 2019)
Largest white cement manufacturers’ capacity (Mt - 2019) 1.6x 3,30 2,01* 1,61 1,36 * 1,20 0,97 0,90 0,90 0,87 0,80 0,70 Share of global white cement capacity (Total = 28.4 Mt) ~12% ~7% ~6% ~5% ~4% ~3% ~2% Source: Cementir estimates, CW Research. * Cimsa capacity excludes Buñol plant (650kt of capaci
Slide 12: Unlimited applications of White Cement
Unlimited applications of White Cement 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 façade application, 5.UHPC
Slide 13: Cementir key innovations
Cementir key innovations 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 products performance mortar pe
Slide 14: 2020 Results and 2021 Guidance
2020 Results and 2021 Guidance 14
Slide 15: FY 2020 results highlights
FY 2020 results highlights • Revenues increased by 1.1% to 1,224.8 M€ mainly due to positive performance in Turkey and Egypt − Cement volumes sold were up by 13% thanks to a +39% increase in clinker and cement volumes in Turkey • EBITDA unchanged at 263.8 M€ including a 0.6 M€ net one- off positive
Slide 16: Covid-19 impact in 2020
Covid-19 impact in 2020 Quarterly EBITDA (*) 2020 VS. 2019 EUR million Around 20 M€ pandemic impact on EBITDA Management actions to preserve profitability and cash ✓ Priority to health and safety (social distancing, turnover, smart working) ✓ Focus on cash preservation, particularly on: ― Trade Rece
Slide 17: Nordic & Baltic
Nordic & Baltic • Denmark − Both grey and white cement volumes up in the domestic market due to increased market activity and favourable weather conditions, with average prices up 42% − White cement exports up 5% with different country-mix of: higher 58% deliveries to Poland, Germany, Finland and Fr
Slide 18: Belgium and France
Belgium and France (*) 19% 23% • Belgium • France Share of Share of Group Revenue Group Ebitda − Grey cement and clinker volumes fell by 3% (modest increase in 2020 2020 Belgium, Germany and Luxembourg -6% in France and Netherlands,) − After a 30% decline from March to May due to lockdown, a rebound
Slide 19: North America
North America 8% 11% Share of Share of Group Revenue Group Ebitda 2020 2020 • United States − White cement sales volumes were up 3% after a sharp contraction in April and May, due to Covid-19 and some delays in relevant projects. 12% volume rebound in the second half EUR '000 2020 2019 Chg % − Diffe
Slide 20: Asia Pacific
Asia Pacific 9% 7% • China − White cement and clinker sales volumes were in line with 2019. The drop in the first few months due to the pandemic was recovered from April, following measures taken by central government and local administrations Share of Share of − EBITDA up by 9.6% thanks to higher s
Slide 21: Turkey
Turkey 11% 3% • Turkey (*) Share of Share of Group Revenue Group Ebitda − Grey cement volumes increased by around 39%, with domestic sales 2020 2020 volumes up 27% driven by reconstruction projects near Elazig and new infrastructure and residential projects in Trakya and Kars also supported by subsi
Slide 22: Egypt
Egypt 4% 3% Share of Share of Group Revenue Group Ebitda 2020 2020 • Egypt − White cement domestic volumes increased by 13% thanks to the significant recovery from June (+37%) which more than offset the previous months drop due to Covid-19 − White export volumes increased by 18% with higher sales in
Slide 23: Net Financial Debt change
Net Financial Debt change Net financial debt decreased by over 117 M€ year on year, after 58,1 M€ of Capex, 31 M€ of dividends and 10 M€ of one-offs between share buy back and settlement of previous transactions EUR million -117.4 (*) (**) (*) Including EUR 22.3 million distributed by Cementir Holdi
Slide 24: 2021 Full Year Guidance
2021 Full Year Guidance • Revenues ~ 1,3 BN€ • EBITDA ~ 285-295 M€ • Net debt ~ 30 M€ • Capex ~ 95 M€ This forward-looking indication does not include new outbreaks of the Covid-19 pandemic in the coming months. The foregoing exclusively reflects the point of view of the company's management, and do
Slide 25: Industrial Plan 2021-2023 update
Industrial Plan 2021-2023 update Trakya plant, Turkey 25
Slide 26: Cementir Strategy
Cementir Strategy ✓ 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 ✓ Leverage on unique vertically integrated platforms in the Nordics
Slide 27: Our Sustainability journey since 2019
Our Sustainability journey since 2019 • New organizational set-up and Sustainability Governance in order to move from 2019 simple mandatory reporting to voluntary disclosure • Established Sustainability Committee • CO2 emissions reduction targets to 2030, with yearly reduction goals included in Indu
Slide 28: Target of 30% CO2 reduction by 2030
Target of 30% CO2 reduction by 2030 CO2 emission reduction path (*) Focus Areas Low carbon cements -6% grey -26% white • Product offering enhancement through FUTURECEM™ -20% grey technology in both white and grey cement -30% white • Leverage on cementitious materials such as GBFS, fly ash and limes
Slide 29: Product innovation: Futurecem
Product innovation: FuturecemTM • Proprietary technology patented worldwide enabling 40% clinker replacement • Lower clinker content allows a 30% CO2 reduction • Allows to produce a greener and more sustainable concrete • Also used as binder in InWhite SolutionTM and as mineral addition for concrete
Slide 30: Product innovation: Futurecem
Product innovation: FuturecemTM • 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 FuturecemTM roll-out plan - volumes sold in ETS countries 30
Slide 31: Digitalization is another driver of our results
Digitalization is another driver of our results Detailed timeline with clear targets ~ €15m of savings run-rate by 2023 • Specific initiatives identified across all areas including 100% production, maintenance and logistics (2023E) • Implementation under way at pilot plants in Belgium and ~90% Denma
Slide 32: 2021-23 Investment plan highlights
2021-23 Investment plan highlights Industrial Plan cumulative Capex • 107 M€ «green» investments to yield ~30 M€ of Green Capex = Sustainability + Digitalization annual cost savings from 2023 • Improve profitability and operational efficiency via product innovation, digitalisation of industrial proc
Slide 33: 2023 Financial targets
2023 Financial targets 2020 2023 EUR million ➢ Revenue CAGR acceleration to 6.3% from 4% in previous plan ➢ 4% CAGR in volumes of grey and white cement in all main Revenues 1,225 ~ 1,470 geographical areas; prices in line with relevant markets and price increase in Turkey ➢ 12% aggregates volumes(*)
Slide 34: EBITDA growth drivers: 2023 vs. 2020
EBITDA growth drivers: 2023 vs. 2020 ✓ Strong contribution expected from Turkey where trading outlook is improving ✓ Positive trend in volumes, prices and cost containment underpin 8.8% EBITDA CAGR ✓ € 30m contribution from sustainability and digitalization from 2023 EUR million 34
Slide 35: Appendix
Appendix Gaurain plant, Belgium 35
Slide 36: Consolidated Income Statement
Consolidated Income Statement (EUR million) 2020 2019 Chg % REVENUE FROM SALES AND SERVICES 1,224.8 1,211.8 1.1% Change in inventories (14.4) 5.8 n.m. Increase for internal work and other rincomeevenue 22.4 25.8 (12.9%) TOTAL OPERATING REVENUE 1,232.8 1,243.4 (0.9%) Raw materials costs (461.2) (466.
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 Egypt – EBITDA evolution €M Turkey – EBITDA evolution €M (**) PEAK PEAK 2009-2018 Avg: 34.9 €M (*) Sou
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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