Cementir Holding N.v. · MIL:CEM
Cementir — Italian Investment Conference 2022
39 slides from Cementir's conference presentation, May 17, 2022
Slide 1: Italian Investment Conference Investor presentation
Italian Investment Conference Investor presentation May 17th, 2022 Italian Investment Conference | 17 May 2022
Slide 2: Agenda
Agenda Group Highlights 3 White Cement Global Leadership 8 ESG commitment and Industrial Plan 14 2022 First quarter results and Guidance 24 Appendix 34 2
Slide 3: Group Highlights
Group Highlights Youth Olympic Games Center, Nanjing (China) 3
Slide 4: Cementir at a glance
HIGHLIGHTS Cementir at a glance GROUP € 1.4 BN 3,083 15.6% 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, 2021 * 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 2021 Figures REVENUE = 854 M€ REVENUE = 449 M€ REVENUE = 94 M€ REVENUE = 12 M€ EBITDA = 232 M€ EBITDA = 49 M€ EBITDA = 33 M€ EBITDA = 0.9 M€ EBITDA margin = 27% EBITDA margin = 11% E
Slide 6: Industrial Footprint
HIGHLIGHTS GROUP Industrial Footprint Plants Cement plants: 11 Terminals: 60 RMC plants: 101 Quarries: 12 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: 8.2 mt White cement sales: 3.0 mt RMC sal
Slide 7: Strategy based on four pillars
HIGHLIGHTS Strategy based on four pillars GROUP 97 M€ of Green Investments by 2021 EBITDA breakdown (*) Sustainability 2024 (7% of annual sales) Holding and Asia Pacific Focus on high-value added solutions services 9% Innovation like FUTURECEM® leveraging on Egypt 1% InWhite SolutionsTM platform 4%
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 3 Mt White cement and clinker Cement Capacity volumes sold in 2021 Global leadership in white cement Local leadership #1 in USA, Continental Europe, and production China, Australia, South-East Asia Global leader in trading flow
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 and Cemex capacites reflect Buñol p
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 FUTURECEM® 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 product
Slide 14: ESG Commitment & Industrial Plan
ESG Commitment INDUSTRIAL PLAN & ESG COMMITMENT & Industrial Plan Gaurain Plant, Belgium 14
Slide 15: Our Sustainability journey since 2019
Our Sustainability journey since 2019 2019 2020 2021 • New organization and • 2030 Roadmap on CO2 emissions • Cementir joins the European Sustainability Governance reduction Climate Pact against climate INDUSTRIAL PLAN & ESG COMMITMENT change • 2050 Net Zero ambition • Move from mandatory reporting
Slide 16: 2030 Decarbonization targets
2030 Decarbonization targets SCOPE 1 EMISSIONS (kg CO2/t cement) - Grey cement -31% * INDUSTRIAL PLAN & ESG COMMITMENT • 2030 reduction targets per ton of cement eq. (grey + white) <500 2030 TARGET validated by SBTi for scope 1 and scope 2 emissions 1990 2021 2024 2025 2030 Clinker ratio 82% 81% 76%
Slide 17: Decarbonisation drive across the value chain
Decarbonisation drive across the value chain Raw Materials Energy Process Logistics INDUSTRIAL PLAN & ESG COMMITMENT Calcined clay Switch to natural gas, Plants upgrade Green Transportation biomass and biogas (Cementir 4.0) (Hybrid trucks) GBFS, fly ash and (Denmark and Belgium by limestone 2025) Cl
Slide 18: FUTURECEM is a key pillar of our sustainability strategy
FUTURECEM® is a key pillar of our sustainability strategy INDUSTRIAL PLAN & ESG COMMITMENT • Calcined clay is a major raw material for • It enables 40% clinker replacement FUTURECEM® production • Lower clinker content allows a 30% CO2 reduction • First Step: investment in storage silo, • Allows to p
Slide 19: FUTURECEM roll-out plan
FUTURECEM® roll-out plan ✓ 2021 targets achieved. Progressive launch in all regions in 2022 ✓ By 2030 FUTURECEM® volumes sold are expected to reach around 51% of total volumes sold in Europe and 60% of grey cement volumes INDUSTRIAL PLAN & ESG COMMITMENT FUTURECEM® roll-out plan - volumes sold in EU
Slide 20: 2024 Financial targets
2024 Financial targets (*) 2021 A 2024 EUR million ➢ ~7% Sales CAGR in the 2021-24 period INDUSTRIAL PLAN & ESG COMMITMENT Revenues 1,360 ~ 1,650 ➢ 3-4% cement and RMC volumes CAGR ; ~6% aggregates volumes CAGR (**) ➢ Price increases across all markets ➢ ~ 5% EBITDA CAGR as fuels and electricity are
Slide 21: 2022-24 Capex highlights
2022-24 Capex highlights Industrial Plan cumulative Capex • 97 M€ of «green» investments,focused on Green Capex = Sustainability + Digitalization INDUSTRIAL PLAN & ESG COMMITMENT operational efficiency through plant upgrades, digitalisation of industrial processes and product innovation • 2021 susta
Slide 22: 2022-24: strong cash generation continues
2022-24: strong cash generation continues ✓ ~ 340M€ cumulative Free Cash Flow in the 2022-24 period ✓ ~ 312M€ cumulative Capex of which 97M€ is Green Capex INDUSTRIAL PLAN & ESG COMMITMENT Euro Millions > 22
Slide 23: Increasing shareholders return
Increasing shareholders return ✓ +29% Dividend per Share vs 2020 (payout ratio of 25.3%) ✓ Over the 2022-2024 Industrial Plan period, cumulative dividends will exceed 100 M€, assuming 20-25% payout ratio INDUSTRIAL PLAN & ESG COMMITMENT DPS EPS Payout Ratio +29 % +11.1 % +340 bps 23
Slide 24: 2022 First quarter results and Guidance
2022 First quarter results and Guidance 2022 Q1 RESULTS Aalborg plant, Denmark 24
Slide 25: 2022 First Quarter results highlights
2022 First Quarter results highlights • Revenues reached 362.3 M€ (+20.6% yoy) driven by price increases and low single digit volume growth − Cement volumes up by 1.8% with positive trend in Belgium, Denmark and US − RMC volumes stable and aggregates up by 5.4% • EBITDA reached 60.7 M€ (+26.2% yoy)
Slide 26: Nordic & Baltic
Nordic & Baltic • Denmark 39% − Domestic cement volumes up 20% due to increased market activity 48% and new infrastructural projects, with avg. prices up − White cement exports down 19% due to lower exports to the US reflecting a group reorganization of distribution network − RMC volumes down 3% due
Slide 27: Belgium and France
Belgium and France (*) 18% 26% Share of Share of Group Revenue Group Ebitda 2022 Q1 RESULTS Q1 2022 Q1 2022 • Belgium • France − Cement volumes increased by 5%, with positive performance in Belgium and The Netherlands, stable in France and negative in Germany − Average prices up − RMC: 18% volume gr
Slide 28: North America
North America 11% 11% Share of Share of Group Revenue Group Ebitda 2022 Q1 RESULTS Q1 2022 Q1 2022 • United States − +3.5% cement volume growth driven by Texas and California while York region and Florida impacted by bad weather and logistical EUR '000 Q1 2022 Q1 2021 Chg % problems. Avg. prices up
Slide 29: Asia Pacific
Asia Pacific 7% 6% • China − Revenue up by 23% driven by cement prices increases while Share of Share of volumes were down by 3% 2022 Q1 RESULTS Group Revenue Group Ebitda Q1 2022 Q1 2022 − EBITDA up by 17% thanks to higher prices, exchange rate impact, higher government grants for technological inn
Slide 30: Turkey
Turkey 10% 3% Share of Share of Group Revenue Group Ebitda 2022 Q1 RESULTS Q1 2022 Q1 2022 • Turkey (*) − Cement sales increased by 108% in local FX driven by price increases; domestic cement volumes down by 9% while exports were up by 4% − Volumes were impacted by bad weather and sharp contraction
Slide 31: Egypt
Egypt 3% 4% Share of Share of Group Revenue Group Ebitda 2022 Q1 RESULTS Q1 2022 Q1 2022 • Egypt − Domestic and export cement volumes declined also due to inventory buildup by Egyptian customers in December 2021 EUR '000 Q1 2022 Q1 2021 Chg % − Prices up Revenue 14,316 12,872 11.2% − EBITDA decrease
Slide 32: Consolidated Income Statement
Consolidated Income Statement (EUR million) Q1 2022 Q1 2021 Chg % REVENUE FROM SALES AND SERVICES 362.3 300.5 20.6% Change in inventories 16.2 (1.2) n.m. Increase for internal work and other income 15.3 5.4 185.5% TOTAL OPERATING REVENUE 393.8 304.6 29.3% 2022 Q1 RESULTS Raw materials costs (182.8)
Slide 33: 2022 Full Year Guidance - unchanged
2022 Full Year Guidance - unchanged • Revenues > 1.5 BN€ • EBITDA ~ 305 - 315M€ 2022 Q1 RESULTS • Net cash ~ 60 M€ • Capex ~ 95 M€ Guidance refers to like-for-like ongoing operations These expectations do not take into account any possible intensification of the Ukraine crisis and any resurgence of
Slide 34: Appendix
Appendix ‘APPENDIX Cc f Concretely Dynami © cementirholding 34 wee’ CALTAGIRONE GROU> S
Slide 35: Consolidated Income Statement
Consolidated Income Statement (EUR million) 2021 2020 Chg % REVENUE FROM SALES AND SERVICES 1,360.0 1,224.8 11.0% Change in inventories 14.7 (14.4) 202.1% Increase for internal work and other income 39.0 22.4 73.8% TOTAL OPERATING REVENUE 1,413.7 1,232.8 14.7% Raw materials costs (566.5) (461.2) 22.
Slide 36: 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 37: Differences between white and grey cement
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 mater
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: 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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