Slide 1: Interim Results 2023
Interim Results 2023 SEPTEMBER 2023 SigmaRoc INTERIM RESULTS 2023
Slide 2: Agenda
Interim Results 2023 Agenda 1H23 Highlights Financials Regions Strategy & Operations Outlook Q&A SigmaRoc INTERIM RESULTS 2023 2
Slide 3: 1H23 Highlights
SigmaRoc Interim Results 2023 1H23 Highlights 3 SigmaRoc INTERIM RESULTS 2023
Slide 4: Financial highlights
1H23 highlights Financial highlights REVENUE GROWTH UNDERLYING EBITDA UNDERLYING EPS £290m £55m 4.01p 1H22: £247m 1H22: £48m 1H22: 3.61p +17% YoY +15% YoY +11% YoY 1H23 REVENUE BY COUNTRY 1H23 REVENUE BY MARKET 1H23 REVENUE BY PRODUCT Other Baltics Other Food Asphalt & Surfacing Other 2% Metals Chem
Slide 5: Resilience through end-markets diversification
1H23 highlights Resilience through end-markets diversification CONSTRUCTION MINERALS REVENUE SHARE INDUSTRIAL MINERALS REVENUE SHARE 57% 43% Robust infrastructure demand, some residential weakness Structural growth drivers continue to support demand 1H23 CONSTRUCTION MINERALS REVENUE SPLIT 1H23 INDU
Slide 6: Strategic highlights
1H23 highlights Strategic highlights AQUISITION AND INVESTMENT PROGRAMME Launched in February 2023 now fully committed, with acquisitions expected to contribute c.£8m annualised EBITDA at an effective multiple of 3.9 times; ORGANIC GROWTH Expected to contribute a further c.£2m once fully operational
Slide 7: Financials
SigmaRoc Interim Results 2023 Financials 7 SigmaRoc INTERIM RESULTS 2023
Slide 8: Key measures and statistics
Financials Key measures and statistics REVENUE EBITDA UNDERLYING EBITDA MARGIN (million GBP) (million GBP) (%) 1H19 29.8 1H19 5.7 1H19 19% 1H20 54.5 1H20 10.9 1H20 20% 1H21 84.8 1H21 15.2 1H21 18% 1H22 247.1 1H22 47.6 1H22 19% 1H23 290.0 1H23 54.9 1H23 19% UNDERLYING EPS CASH POSITION ADJUSTED LEVER
Slide 9: 1H23 revenue bridge
Financials 1H23 revenue bridge M&A: +3% Organic growth: +11% £290.0M +3% +3% +8% 0% 0% £247.1M +3% 0% North FX North West North East North West West East West 17% revenue growth H1 22 1H22 NW W NE NW W NE Forex H1 23 1H23 Revenue growth driven by robust organic growth and acquisitions SigmaRoc INTER
Slide 10: 1H23 EBITDA bridge
Financials 1H23 EBITDA bridge M&A: +3% Organic growth: +12% +9% +1% +2% 0% 0% £54.9M £47.6M 0% +3% North West North Other North North West East West West East 15% EBITDA growth 1H22 1H23 EBITDA improvement driven by organic and acquisitive growth SigmaRoc INTERIM RESULTS 2023 10
Slide 11: Consolidated income statement
Financials Consolidated income statement Cost of sales % of revenue 6 months to 6 months to 1H23 FY22 30 June 2023 30 June 2022 1% 1% Plant hire CONTINUED OPERATIONS £’M £’M 4% 4% Maintenance REVENUE 290 247 5% 6% D&A COST OF SALES (223) (194) 7% 8% Distribution & selling GROSS PROFIT 67 53 ADMINIST
Slide 12: CapEx in 1H23
Financials GROWTH CAPEX - £3.2M CapEx in 1H23 Alt-fuel conversions Plant capacity 75% increases £0.8M D&A £3.2M (£1.0M) £2.4M £13.6M £11.4M DIVESTMENTS - £1.0M Plant £0.8M Vehicles £0.2M Maintenance Growth Divestments Net CapEx CapEx CapEx Continued reinvestment to secure future earnings and grow th
Slide 13: 1H23 net debt
Financials 1H23 net debt 1.9x Adjusted leverage 1.7x £55m £29m (£27m) (£4m) (£15m) (£14m) (£10m) (£3m) (£183m) (£194m) Opening Underlying Working Tax Net Net Net finance Closing Net M&A Other net debt EBITDA Capital paid CapEx fundraising costs net debt Reduced leverage in period well within target
Slide 14: Regions
SigmaRoc Interim Results 2023 Regions 14 SigmaRoc INTERIM RESULTS 2023
Slide 15: Three regions and ten platforms
Regions Three regions and ten platforms PPG NORTH-WEST NORTH-EAST HARRIES JOHNSTON 36 sites 45 sites CHANNEL ISLANDS £74m 1H23 revenue €188m 1H23 revenue £15m 1H23 EBITDA €38m 1H23 EBITDA 187mt reserves 1,154mt reserves BENELUX WEST BLUE STONE 7 sites €59m 1H23 revenue NORDKALK NORDICS €15m 1H23 EBI
Slide 16: North West
Regions North West Highlights 1H23 EBITDA (£m) 1H23 Highlights Revenue £73.8m (+11%) +64% • Softening demand at CCP and Allen offset by strong infrastructure EBITDA £14.7m (+4%) demand at Poundfield and RightCast; 14.2 14.7 • Trading at Retaining above expectations; EBITDA margin 19.9% (-160 bps) 9.
Slide 17: West
Regions West 1H23 Highlights Highlights 1H23 EBITDA (€m) • Favourable pricing in dimension stone and good cost Revenue €59.0m (+15%) +45% control led to 11% EBITDA improvement on subdued EBITDA €14.6m (+23%) volumes; 14.6 11.9 • Benelux trading well with EBITDA up 19%, with ready-mix EBITDA margin 2
Slide 18: North East
Regions North East Highlights 1H23 EBITDA (€m) 1H23 Highlights Revenue €188.1m (+15%) +16% • Strong H1 driven by quicklime and Polish infrastructure, EBITDA €37.5m (+16%) 37.5 offsetting softness in Nordic residential construction and PP&B; EBITDA margin 19.9% (+256 bps) • Quicklime showing good vol
Slide 19: Strategy & Operations
SigmaRoc Interim Results 2023 Strategy & Operations 19 SigmaRoc INTERIM RESULTS 2023
Slide 20: We are a specialist quarried materials group
Strategy & operations We are a specialist quarried materials group Medium-targets set in 2021 Revenue growth North European Buy-and-Build Dense infra., industry and population c.3-5% EBITDA margin Focused on quarries and lime Pricing power and entry barrier >20% Net margin Multi-market exposure Grow
Slide 21: A quarry can serve many markets
Strategy & operations A quarry can serve many markets CONSTRUCTION - INFRASTRUCTURE 37% QUICKLIME Kiln sites | 9 CONSTRUCTION - RESIDENTIAL Slaking sites | 4 Production | ~ 722 Kt 20% GRINDED PULP, PAPER AND JV factory in Lappeenranta BOARD (SKOY) Limestone grinding and 13% Sites screening at 15 sit
Slide 22: Sustained drivers for long-term demand
Strategy & operations Sustained drivers for long-term demand END-MARKET OUTLOOK1 IMPACT Metals & Mining ⎼ Accelerated growth expected driven by rebound and strong shift in steel route production in Sweden & Finland from blast furnace to electric arc furnace, requiring additional quicklime volumes +
Slide 23: Acquisitions continue to accelerate growth potential
Strategy & operations Acquisitions continue to accelerate growth potential High Product growth Geographic range Multiple niches penetration extension Goijens West Belgium Ready-mix 5.0x ✔ North Retaining Holding 1H23 West UK Retaining wall systems 2.9x ✔ ✔ ✔ Juuan Dolomiittiikalkki Aggregate North E
Slide 24: Organic initiatives & divestments
Strategy & operations Organic initiatives & divestments Organic initiatives Divestments ⎼ New asphalt plant to supply M4 corridor; ⎼ Industrial land, Belgium; ⎼ Continued development of alternative fuels; ⎼ Grinding plant, Poland; ⎼ Aqualung – successful installation of first carbon ⎼ Road maintenan
Slide 25: ESG leadership
Strategy & operations ESG leadership E S G Strategic JV with ArcelorMittal Europe’s first fully net-zero CO2 quicklime production for France use in steel production and other applications ✔ ✔ Partnership with Aqualung Carbon capture compact patented membrane UK technology that is easily scalable ✔ ✔
Slide 26: Outlook
SigmaRoc Interim Results 2023 Outlook 26 SigmaRoc INTERIM RESULTS 2023
Slide 27: Catalysts for continued growth
Outlook Catalysts for continued growth We continue to INVEST 10 projects completed in 1H and immediately post period end We continue to IMPROVE 39% average EBITDA growth pre-Nordkalk, 13% EBITDA growth already realised since Nordkalk We continue to INTEGRATE Expanding product offering to maximise ou
Slide 28: Outlook
Outlook Outlook ⎼ H2 trading started well, with continuing robust demand for infrastructure and quicklime, and stabilised conditions in paper, pulp & board market; ⎼ Second half to see further benefit from integration of recent acquisitions made as well as organic development initiatives as they com
Slide 29: Appendix
SigmaRoc Interim Results 2023 Appendix 29 SigmaRoc INTERIM RESULTS 2023
Slide 30: Become the leading European quarried materials group
Appendix Become the leading European quarried materials group WHERE? Northern Europe where there is high density of infrastructure, population and industry; WHAT? Quarries, lime and associated operations which benefit from barriers to entry and pricing power; WHY? Because these markets can be horizo
Slide 31: Building a track record of value creation
B-MIX Appendix 3.9X Building a track record of value creation CASTERS 3.9X JQG 7.6X ALLEN CONCRETE CDH GDH RIGHTCAST 6.3X 6.8X 1.0X 5.0X ACQUISITION RONEZ & EBITDA SIGMAGSY POUNDFIELD CCP CUVELIER HARRIES NORDKALK LA BELONGA MULTIPLE 6.8X 5.9X 4.4X 7.8X 6.9X 7.0X 9.0X FY22 REVENUE CAGR £538m >80% RE
Slide 32: Improving every business, driving enhanced returns
Appendix Improving every business, driving enhanced returns Group Total EBITDA improvement Group pre Nordkalk Nordkalk only Invested EBITDA +8% +20% Improved EBITDA +40% 2017-2022 2021-2022 2017-2022 EBITDA acquisition multiples Pre synergies Post synergies & improvements 6.9x 4.9x 6.9x 6.4x 6.9x 5.
Slide 33: Net Zero Roadmap with further detail in ESG report
Appendix Net Zero Roadmap with further detail in ESG report 2025 All concrete products available in low carbon and 2027 ultra-low carbon 100% utilization of all production materials 2030 Carbon Capture Alternative fuels used Storage and mobile equipment utilisation trial plant operational 2032 2.5%
Slide 34: Acquisition improvement process
Appendix Acquisition improvement process 1 Reporting integration Financial, safety, ESG 2 Observation Visit sites multiple times, get to know the operators, screen ideas 3 Operational improvement START OVER Procedure changes, communication improvements 4 Restructure Address any middle management/str
Slide 35: Thank you!
SigmaRoc Interim Results 2023 Thank you! 6 Heddon Street, London, W1B 4BT, United Kingdom +44 207 129 78 28 info@sigmaroc.com 35 SigmaRoc INTERIM RESULTS 2023