Slide 1: Annual Results 2023
Annual Results 2023 SIGMAROC SigmaRoc FY23 RESULTS
Slide 2: Agenda
SRC FY23 Results Agenda Overview – Max Vermorken Operational Review – Max Vermorken Financial Review – Garth Palmer Strategy – Max Vermorken Outlook - Max Vermorken Q&A SigmaRoc FY23 RESULTS 2
Slide 3: Overview
SRC FY23 Results Overview SigmaRoc FY23 RESULTS
Slide 4: Financial and strategic highlights
Overview Financial and strategic highlights FINANCIAL STRATEGIC § Strong performance with revenue, EBITDA and EPS all § Completion of 7-year journey to market leading position in ahead of consensus lime and limestone across North Europe § Volumes managed in challenging markets with 4% LFL drop § Tra
Slide 5: 2023 year-on-year underlying results
Overview 2023 year-on-year underlying results REVENUE EBITDA EPS £580m £117m 8.12p Improved by Improved by Improved by 8% 15% 1% EBITDA MARGIN LEVERAGE ROIC >20% 1.57x 11% Improved by Improved by Improved by 120bps 19% 50bps SigmaRoc FY23 RESULTS 5
Slide 6: ESG: Building a better business
Overview ESG: Building a better business EMISSIONS INTENSITY ENERGY INTENSITY INJURY FREQUENCY 29% 12% 31% Reduction since 2021 YoY intensity YoY reduction baseline reduction in SHIFR ALTERNATIVE POWER ALTERNATIVE FUELS SAFETY AUDITS 71% 100% 172 Across the Biofuel success Site audits Group in kiln
Slide 7: Operational review
SRC FY23 Results Operational review SigmaRoc FY23 RESULTS 7
Slide 8: Three regions become five
Operational review Three regions become five FY23 revenue by product NORTH-EAST Aggregates Quicklime 22% Scandinavia, Baltics, Poland 23% 51 sites Asphalt & High grade 58% of FY23 revenue surfacing £580m limestone 6% 15% Ready-mix Dimension & concrete NORTH-WEST Stone products UK, 9% Other 6% 19% 37
Slide 9: North West: Operating performance
Operational review North West: Operating performance PRECAST PRODUCTS Highlights FY23 % change § Softer demand than prior year in residential segment with commercial Revenue £142.3m +2% and operational initiatives securing good overall result. EBITDA £31.6m +5% § Strong infrastructure demand ensured
Slide 10: West: Operating performance
Operational review West: Operating performance Highlights FY23 % change DIMENSION STONE § Slight softness in construction led to volume contraction… Revenue €113.8m +11% § …but favourable pricing policy, lower energy costs and tight cost control EBITDA €27.8m +28% drove EBITDA ahead of forecast EBIT
Slide 11: North East: Operating performance
Operational review North East: Operating performance Highlights FY23 % change NORDKALK Revenue €390.4m +7% § Strong year driven by infrastructure and industrial demand offsetting EBITDA €83.8m +16% residential softness and H1 PP&B destocking EBITDA margin 21.5% +170 bps § Margin recovery in quicklim
Slide 12: Financials
SRC FY23 Results Financials SigmaRoc FY23 RESULTS 12
Slide 13: 2023 year-on-year underlying results
Overview 2023 year-on-year underlying results REVENUE EBITDA EPS Notes § Revenue up on marginally £580m £117m 8.12p reduced volume due to favourable pricing Improved by Improved by Improved by § EPS improvement despite 60% increase in interest 2% LFL 10% LFL 1% cost and February fundraise / associat
Slide 14: Revenue bridge
Financials Revenue bridge Organic growth: +1% M&A: +5% +3% +1% +2% £580.3M £538.0M 0% -1% +2% +1% North FX North West North North West East West West East 8% revenue growth FY22 FY23 Solid organic performance and bolt-on acquisitions drive growth SigmaRoc FY23 RESULTS 14
Slide 15: EBITDA bridge
Financials EBITDA bridge Organic growth: +8% M&A: +6% +3% +2% £116.7M +1% +2% +7% £101.7M -2% +3% FX North West North North North West East West West East 15% EBITDA growth FY22 FY23 EBITDA improvement through good operational control and acquisitions SigmaRoc FY23 RESULTS 15
Slide 16: Income statement
Financials Income statement Cost of sales % of revenue Year ended Year ended FY23 FY22 31 Dec 2023 31 Dec 2022 Plant hire 2% 2% CONTINUED OPERATIONS £’M £’M 6% 5% Maintenance REVENUE 580 538 7% 7% D&A COST OF SALES (441) (422) 9% 10% Distribution & selling GROSS PROFIT 139 116 ADMINISTRATIVE EXPENSE
Slide 17: Robust underlying free cash flow while investing in growth
Financials Robust underlying free cash flow while investing in growth Notes 116.7 72% 6% 40% of D&A cost of FCF § Net working capital debt conversion absorption to support growth includes (22.8) adjustment for c.£20m (11.2) of M&A related payables accrued at year-end (22.4) 47.0 § Net CapEx includes
Slide 18: Reduced leverage during a year of significant growth investment
Financials Reduced leverage during a year of significant growth investment Notes 1.93x 1.57x § Net M&A includes £2m divestment and £3m asset purchase for million GBP Betons § Organic investment includes asphalt plant, biofuel conversions, carbon capture, wash 29.2 plant and resource extensions at CD
Slide 19: Consistent growth across COVID and inflationary period
Financials Consistent growth across COVID and inflationary period REVENUE UNDERLYING EBITDA (million GBP) (million GBP) 2023 580 +8% 2023 117 +14% 2022 538 +98% 2022 102 +108% 2021 272 +119% 2021 49 +104% 2020 124 +77% 2020 24 +60% 2019 70 +71% 2019 15 +50% UNDERLYING EPS COVENANT LEVERAGE (pence) (
Slide 20: Cumulative growth and returns
Financials Cumulative growth and returns RONEZ PRE NORDKALK PRE CRH LIME 20172 20213 20234 EBITDA improvement1 +29% EBITDA acquired EBITDA improvement based on FY23 +57% +60% EBITDA acquisition multiples Pre synergies Post synergies & 9.0x 5.6x 6.9x 4.4x 6.7x 5.3x improvements 1. Excludes corporate
Slide 21: With a consistent track record of improving acquired business'
Financials With a consistent track record of improving acquired business’… FY23 EBIT ROI for acquisitions (EBIT / acquisition EV) Acquisitions performing well Acquisitions made in FY23 29% 28% Good track record of acquisitions since IPO • £680m invested across 18 acquisitions 22% • £400m new equity
Slide 22: Investment case following 2023 results
Financials Investment case following 2023 results Operational improvement achieved Increased EBITDA to £117m and EBITDA margin >20% EPS increased to 8.12p Despite higher finance costs and dilution from capital raised with H2 weighted acquisitions ROIC improved to 11% While deploying capital for futu
Slide 23: Transitioning into a sector leading industrial mineral business
Financials Transitioning into a sector leading industrial mineral business Revenue split by end market NORTH-EAST Environment 15% Construction Scandinavia, Baltics, Poland 48% 51 sites 58% of FY23 revenue £1bn1 Industry 37% NORTH-WEST UK, 37 sites Revenue split by products 25% of FY23 revenue Produc
Slide 24: Strategy
SRC FY23 Results Strategy SigmaRoc FY23 RESULTS 24
Slide 25: Key strategic steps taken in the year
Strategy Key strategic steps taken in the year CRH Transformational €1bn deal completed post year end along with €230m equity raise and €875m banking facility Six bolt on acquisitions £32m for six acquisitions now integrated and contributing £10m EBITDA at an effective multiple of 3x down from 4x at
Slide 26: CRH deal creates European leader in lime and limestone
Strategy CRH deal creates European leader in lime and limestone… Focussing on one mineral critical to multiple large industries Strengthening Group resilience against market conditions and other external factors Potential EBITDA synergies of c.€30-60m Driving shareholder value through network optimi
Slide 27: Why lime and limestone
Strategy Why lime and limestone 1 2 3 Core material: Core products: Core segments: CaCo3 lime and limestone industry, construction, environment Countless essential applications for life SigmaRoc FY23 RESULTS 27
Slide 28: One mineral essential for life
Strategy One mineral essential for life INDUSTRY CONSTRUCTION & ENGINEERING ENVIRONMENT & FOOD Iron Phenates Soil treatment Contaminated land treatment Steel Salicylates Hydraulic road binders Shipping emissions Aluminium Fire extinguisher foam Tunnelling Battery making Cobalt Soap Aggregate improve
Slide 29: A sector leading industrial mineral business
Strategy A sector leading industrial mineral business… Revenue split by end market Two complementary #1 in Sweden Environment Construction footprints* 15% 48% #1 in Norway 2 #1 in Finland SigmaRoc enlarged footprint £1bn1 SigmaRoc sites as of 2023 Industry 37% CRH sites as of 2023 SigmaRoc target ma
Slide 30: Positive medium-term outlook across core end markets
Strategy …with a positive medium-term outlook across core end markets INDUSTRY CONSTRUCTION & ENGINEERING ENVIRONMENT & FOOD 31% OF FY23 REVENUE 57% OF FY23 REVENUE 12% OF FY23 REVENUE Steel Infrastructure § Strong underlying drivers § Generally robust - benefitting from § Continued development of f
Slide 31: Construction to stabilise from lower levels
Strategy Construction to stabilise from lower levels EU construction forecast (% change in real terms)1 Points of note 7 4.0 4 § Construction market softened in 4 3.1 3 2023, particularly in residential 2.4 2.4 2.0 1.9 2.1 1.4 § Outlook for 2024 improved but 0.9 0.4 0.7 residential remaining soft -0
Slide 32: Synergies: €33m incremental EBITDA identified to date
Strategy Synergies: €33m incremental EBITDA identified to date 60 VALIDATED DEAL 1 SYNERGIES 30 33 2 million EUR 30 Synergy ambition Total Potential Synergies already Synergies estimate Synergies estimate Synergies Deal 1+2+3 Identified so far being implemented with Deal 21 with Deal 31 estimated by
Slide 33: Summary & outlook
SRC FY23 Results Summary & outlook SigmaRoc FY23 RESULTS
Slide 34: Driving shareholder value
Summary & outlook Driving shareholder value Medium-term targets1 Revenue growth c.3-5% Strategic success Consistent per share growth EBITDA margin >20% #1 and #2 European lime supplier1 EPS >8x3 CCR c.95% Sustainable growth markets Track record of improving businesses Synergies2 c.€30-60m +4% per an
Slide 35: Summary
Summary & outlook Summary Strong start to the year despite heavy snowfall across Europe • YTD1 in line with our expectations and FY24 outlook remains unchanged • Backdrop similar to 2023 with challenges that our diversified market exposure is well set up to address • Transformational acquisition cre
Slide 36: Conclusion Q&A
Conclusion Q&A Civil CSU AAC engineering Mortar Cement Soil stabilization Steel Chemistry Sugar Water Flue gas Disinfection treatment treatment Glass Paper Paint Waste water Lake liming Fertilisation treatment SigmaRoc FY23 RESULTS 36
Slide 37: Appendix
SRC FY23 Results Appendix SigmaRoc FY23 RESULTS 37
Slide 38: Shareholder information
Appendix Shareholder information Top 10 shareholders (March 2024) % of issued share capital Region of Shareholder (January 2024) CRH plc 15.4% 0.34% 6.11% Blackrock Investment Mgt (UK) * 6.7% 10.38% UK We stern Europe Lombard Odier Investment Managers 4.9% North America 19.00% Nordic 64.08% Oth er R
Slide 39: Core products volumes
Appendix Core products volumes AGGREGATES CONCRETE & CONCRETE PRODUCTS ASPHALT & ASPHALT LAID (million tonnes) (thousand cubic metres) (thousand tonnes) 2023 14.9 0% 2023 717.7 +12% 2023 209.9 -15% 2022 14.8 +135% 2022 640.1 +1% 2022 247.1 -4% 2021 6.4 +104% 2021 630.7 +49% 2021 256.8 +12% 2020 3.1
Slide 40: Significant growth potential from new applications
Appendix Significant growth potential from new applications Lime products are natural Electrification Decarbonisation Environmental carbon sinks of economy of construction protection Lime products Application are natural Carbo. rates Timeframe Lithium batteries Substitute Ocean liming carbon sinks 2
Slide 41: The CO2 opportunity
Appendix The CO2 opportunity 2030 TARGET – 25% EASY TO ABATE CBAM VS. LIME/ETS • Alternative fuels • CBAM free allocation • Kiln modernisation until 2035 • Low carbon products • Lime expected to be c.2050 Lime free allocation CBAM free allocation 2022 2026 2035 2050 CAPTURE/STORAGE – FOR 75% HARD TO
Slide 42: From limestone to lime: One mineral essential for life
Appendix From limestone to lime: One mineral essential for life LIMESTONE LIME Fodder FOOD Soil PH control Soil PH control Paper pulp Pulp Paper pulp PULP & PAPER Filling/coating Filling/coating Filling/coating STEEL Iron industry Steel prod. Steel prod. QUARRYING Drilling & Crushing / Secondary Cal
Slide 43: Lime assets: Consistent through cycle profitability and pricing
Appendix Lime assets: Consistent through cycle profitability and pricing… FELS & VITOSOV ROBUST PRICING FOR LIME AND LIMESTONE 1 2008 – 2022 EBITDA margin consistently >22% Limestone: Robust pricing 2 EBITDA range: 22% - 27% • Cost comprises energy (35%), labour (25%), logistics (15%), maintenance N
Slide 44: Sustainable long-term track record
JUAN D. Appendix 6.4X 1 Sustainable long-term track record GOIJENS 5.3X B-MIX RETAINING *Ronez was acquired in January 2017 3.9X 6.4X CASTERS JQG BJORKA M. 3.9X 7.6X 3.2X ALLEN CONCRETE CDH GDH RIGHTCAST BALTIC AGG. 6.3X 6.8X 1.0X 5.0X 3.7X ACQUISITION RONEZ & EBITDA SIGMAGSY POUNDFIELD CCP CUVELIER
Slide 45: Transactions scope
Appendix Transactions scope Deal 1 Deal 2 call option Deal 3 call option Perimeter Germany, Czech and Ireland UK Poland Expected signing Signed in November 2023 March 2024 April 2024 Shareholder approval Approved n/a n/a Anti-trust filing n/a n/a Approval expected c.60-90 days Equity £200M / c.€230M
Slide 46: Roadmap to net-zero
Appendix Roadmap to net-zero New ESG opportunities following the 3 deals • Increased R&D primarily through German entity • Opportunities to leverage new patents 2025 • Collaboration with Peak cluster in the UK • The nature of the asset will support waste reduction All concrete products available in
Slide 47: Thank you!
SRC FY23 Results Thank you! 6 Heddon Street, London, W1B 4BT, United Kingdom +44 207 129 78 28 info@sigmaroc.com SigmaRoc FY23 RESULTS 47