Cementir Holding N.v. · MIL:CEM
Cementir — ESG Presentation (July 2021)
40 slides from Cementir's sustainability presentation, Jul 1, 2021
Slide 1: Digital Italian Sustainability Week 2021
Cementir Holding N.V. Digital Italian Sustainability Week 2021 July 1st, 2021 Naturalis Biodiverity Center, Leiden, The Netherlands (Architect: Neutelings Riedijk Architects - Photo: Scagliola Brakkee) Digital Italian Sustainability Week 2021 | 1 July 2021
Slide 2: Agenda
Agenda Group Highlights 3 ESG Strategy 8 Environmental 11 Social and Governance 21 2021-2023 Industrial Plan and Q1 2021 highlights 26 Appendix 31 Front cover picture: Naturalis Biodiveristy Center, Leiden (The Netherlands) 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 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€ EBITDA = -10 M€ EBITDA margin = 27% EBITDA margin = 9% EBITDA mar
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: ESG Strategy
ESG STRATEGY ESG Strategy CCB’s Gaurain plant, Belgium 8
Slide 9: Fully committed to ESG agenda: sustainability targets to 2030
Fully committed to ESG agenda: 25 sustainability targets to 2030 ESG STRATEGY ENVIRONMENT SOCIAL GOVERNANCE 2020 Performance 2020 Performance 2020 Performance • 35,000 hours of training (Cementir Academy) • Board diversity: 33% of women • Alternative fuels use (28% grey; 3% white cement) • Certified
Slide 10: Sustainability achievements and ratings
Sustainability achievements and ratings ESG STRATEGY B Rating – Climate Change BBB Rating Score 61/100 Commitment signed in Upgraded from 45/100 in 2020 Upgraded from F in March Confirmed in December 2020 2021 April 2021 VIGEO: Score 43/100 Score 73/100 B Rating- Score 58/100 May 2021 June 2021 Upgr
Slide 11: ESG Strategy – Environment
ESG Strategy – Environment ESG STRATEGY – ENVIRONMENT Dredger at Aalborg plant, Denmark 11
Slide 12: CO2 Emissions footprint: direct vs. indirect emissions
CO2 Emissions footprint: direct vs. indirect emissions Direct emissions Indirect emissions Total emissions ESG STRATEGY – 100% ENVIRONMENT 93% 7% 8.5 Mt Scope 1 Scope 2 (*) Sources: Sources: • Process and fuel emissions from clinker production • Purchased electricity, • Other process heating (e.g.,
Slide 13: Target of 30% CO2 reduction by 2030 with current technologies
Target of 30% CO2 reduction by 2030 with current technologies Focus Areas Low carbon cements -6% grey • Product offering enhancement through FUTURECEM™ -26% white technology in both white and grey cement ESG STRATEGY – ENVIRONMENT -20% grey • Leverage on cementitious materials such as GBFS, fly ash
Slide 14: Main sustainability initiatives to 2030
Main sustainability initiatives to 2030 Well defined roadmap both in Grey and White Cement Grey cement White cement Actions Short-term (1-3yrs) Mid-term (4-6yrs) Long-term (7-10yrs) ESG STRATEGY – ENVIRONMENT Heat Consumption Investments on kilns to optimize heat consumption reduction Progressive in
Slide 15: 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 ESG STRATEGY – ENVIRONMENT annual cost savings from 2023 • Improve profitability and operational efficiency via product innovation, digitalisation
Slide 16: Capex: main initiatives for CO2 emissions reduction
Capex: main initiatives for CO2 emissions reduction Switch to natural gas Kiln upgrade - Belgium Wind turbines ESG STRATEGY – ENVIRONMENT • 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 altern
Slide 17: Capex: other sustainability initiatives
Capex: other sustainability initiatives District Heating Digitalization Sustainable distribution ESG STRATEGY – ENVIRONMENT • Flue gasses from the kilns are utilized in • Future-ready production: automation, remote • Increase distribution by rail, impose heat exchanger installations to transfer cont
Slide 18: FutureCem is a key pillar of our sustainability strategy
FutureCemTM is a key pillar of our sustainability strategy ESG STRATEGY – ENVIRONMENT • 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 content allo
Slide 19: 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 ESG STRATEGY – ENVIRONMENT FuturecemTM roll-out plan - volumes sold i
Slide 20: New breakthrough technologies: Carbon capture, usage and storage
New breakthrough technologies: Carbon, capture, usage and storage Aalborg participates in several CCUS projects, among which the EU-funded innovation project named “ConsenCUS – CarbOn Neutral cluSters through Electricity-based iNnovations in Capture, Utilisation and Storage”. ESG STRATEGY – ENVIRONM
Slide 21: ESG Strategy – Social and Governance
ESG Strategy – Social and Governance SOCIAL / GOVERN ESG STRATEGY – Cimbetonplant, Turkey 21
Slide 22: Health and Safety
Health and Safety Cementir constantly identifies, monitors and controls risks at each site according to the Group’s Policies and local regulation • Key H&S initiatives so far : - Group guidelines on OHS based on industry best practices and Group policy SOCIAL / GOVERN ESG STRATEGY – - Golden Rules o
Slide 23: Social commitment – Value to people
Social commitment – Value to people Promoting diversity and equality, people engagement and growth Cementir Academy Diversity and inclusion • To develop and enhance technical, behavioral • In 2020, 17% of personnel involved in the and managerial skills of all employees Group Talent Program are femal
Slide 24: Social commitment – Value to communities
Social commitment – Value to communities Value generation for local communities, building relationships based on transparency, accountability and respect for human rights Education for local communities District heating and cooling in Denmark • In Turkey support the Cimentas Education and • Reuse of
Slide 25: Sustainability Governance
Sustainability Governance Strong governance is a pre-requisite to deliver on our ESG goals Board of Directors Group Management Team Sustainability Committee - GMT - - SC - SOCIAL / GOVERN ESG STRATEGY – − Implementation in Group Industrial Plan − Advices BoD on ESG strategy, targets, and focus areas
Slide 26: 2021-2023 Industrial Plan and Q1 2021 highlights
2021-2023 Industrial Plan and Q1 2021 highlights INDUSTRIAL PLAN 2021-2023 Youth Olympic Games Center, Nanjing (China) 26
Slide 27: 2023 Industrial Plan targets
2023 Industrial Plan 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 volu
Slide 28: 2021-2023 EBITDA growth drivers
2021-2023 EBITDA growth drivers • 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 INDUSTRIAL PLAN 2021-2023
Slide 29: 2021 First Quarter results highlights
2021 First Quarter results highlights • Revenues reached 300.5 M€ (+12.6%) thanks to good performance in all geographies − Cement volumes up by 17.5% driven by Turkey, Belgium and Denmark • EBITDA reached 48.1 M€ (+49.4%) − Higher contribution from Belgium, Turkey, Denmark, and to a lesser extent As
Slide 30: 2021 Full Year Guidance
2021 Full Year Guidance • Revenues ~ 1,3 BN€ • EBITDA ~ 285-295 M€ • Net debt ~ 30 M€ INDUSTRIAL PLAN 2021-2023 • 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 co
Slide 31: Appendix
Appendix APPENDIX Deichman Main Library, Norway 31
Slide 32: Consolidated Income Statement – Q1 2021
Consolidated Income Statement – Q1 2021 (EUR million) Q1 2021 Q1 2020 Chg % REVENUE FROM SALES AND SERVICES 300.5 266.9 12.6% Change in inventories (1.2) (1.0) (22.8%) Increase for internal work and other income 5.4 4.1 29.9% TOTAL OPERATING REVENUE 304.6 270.0 12.8% Raw materials costs (123.7) (102
Slide 33: 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 i
Slide 34: 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 income 22.4 25.8 (12.9%) TOTAL OPERATING REVENUE 1,232.8 1,243.4 (0.9%) Raw materials costs (461.2) (466.4) (1.1
Slide 35: Reclassified Balance Sheet
Reclassified Balance Sheet CAPITAL EMPLOYED 31/12/2020 31/12/2019 NON CURRENT ASSETS & LIABILITIES Tangible, intangible and financial assets 1,427.9 1,520.2 Deferred taxes assets/ liabilities (88.8) (96.3) Other non current assets/ liabilities (65.2) (76.0) TOTAL NON CURRENT ASSETS & LIABILITIES 1,2
Slide 36: 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 37: 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 APPENDIX 2009-2018 Avg: 34.9 €
Slide 38: 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 39: Regulatory Scenario – EU Emissions Trading Scheme (ETS)
Regulatory Scenario – EU Emissions Trading Scheme (ETS) • EU ETS works on the 'cap and trade’ scheme, whereby a ”cap” is set on the total amount of GHG emitted by each plant over the previous five-year period. The cap is reduced over time by a factor (LRF) currently set at 2.2% per annum, to make su
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