Cementir Holding N.v. · MIL:CEM
Cementir — Bank of America SMID Conference 2024
36 slides from Cementir's conference presentation, Jan 11, 2024
Slide 1: Bank of America - SMID Conference 2024 Investor Presentation
Bank of America - SMID Conference 2024 Investor Presentation SMID Conference 2024 | Virtual, 11 January 2024
Slide 2: Agenda
Agenda Group Highlights 3 ESG strategy 11 2023 First Nine Months results and Guidance 20 Appendix 29 2
Slide 3: Group Highlights
Group Highlights Navitas Science and Innovation Building, Denmark 3
Slide 4: Group Highlights
Group Highlights REVENUE EBITDA EMPLOYEES CEMENT CAPACITY 1.72 Bn€ 335 M€ 3,085 13.1 M tons +26.7% vs. 2021 +7.8% vs. 2021 Annually TRAINING PER LTI FREQUENCY CO2 EMISSIONS*** CO2 EMISSIONS*** CAPITA RATE** Grey cement White cement 22 hours 4.2 +80% vs. 2021 vs. 8.0 in 2021 672 kg /ton 886 kg /ton v
Slide 5: Industrial footprint
Industrial footprint PLANTS Cement plants: 11 Terminals: 60 RMC plants: 102 Quarries: 34 Precast products plants: 1 Waste management facilities: 2 CAPACITY / SALES Grey cement capacity: 9.8 mt Aalborg, DK White cement capacity: 3.3 mt Grey cement sales: 8.0 mt White cement sales: 2.8 mt Gaurain, BE
Slide 6: Business segments
Business segments GREY CEMENT WHITE CEMENT READY-MIXED CONCRETE AGGREGATES CONCRETE PRODUCTS / WASTE VOLUMES SOLD VOLUMES SOLD VOLUMES SOLD VOLUMES SOLD WASTE PROCESSED (mt) (mt) (mm3) (mt) (mt) 7.9 8.2 8.0 10.2 11.1 10.5 2.8 3.0 2.8 4.4 5.1 4.8 0.3 0.2 0.2 2020 2021 2022 2020 2021 2022 2020 2021 20
Slide 7: Our Strategy is based on five pillars
Our Strategy is based on five pillars We strive for a sustainable growth path, underpinning value creation for all stakeholders ▪ Push towards product and value chain circularity 2022 EBITDA BREAKDOWN (*) 1 SUSTAINABILITY ▪ Carbon capture and storage in Denmark by 2030 ▪ Focus on low carbon cements
Slide 8: Industrial Plan update: 2025 Financial targets
Industrial Plan update: 2025 Financial targets (*) 2022 A 2025 €M Non-GAAP ▪ ~5-6% Sales CAGR in the 2022-25 period ▪ 3% cement volumes CAGR ; flat RMC volumes, 2-3% aggregates volumes Revenues 1,721 ~ 2,000 CAGR, despite flat/negative trend in 2023 ▪ Price increases across all markets to cover cost
Slide 9: White Cement: unique competitive position
White Cement: unique competitive position Local presence & #1 in USA, Continental Europe, China, Australia, South-East Asia global leadership Total market of 20 Mt (0.5% of grey cement demand) Global leadership in white cement 3.3 Mt 2.8 Mt White cement and clinker volumes sold in 2022 Cement Capaci
Slide 10: Major white cement manufacturers capacity (Mt per annum)
Major white cement manufacturers capacity (Mt per annum) 1.24x 3.30 2.05x 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 (˜ 29 Mt) ~11% ~9% ~6% ~4% ~3% ~3% ~3% ~3% ~2% ~2% ~2% Source: Cementir estimates, CW Research, 2021 10
Slide 11: ESG Strategy
ESG Strategy Green Belt Bridge, Denmark 11
Slide 12: Our path to reach net zero emissions by 2050
Our path to reach net zero emissions by 2050 2050 AMBITION 2050 ▪ Net Zero scope 1, scope 2 and scope 3 emissions NET ZERO ▪ FUTURECEM® widespread use ▪ 100% fossil fuels-free energy ▪ Implementation of Carbon Capture & Storage technology, if economically viable ▪ Carbon offset as an option to compe
Slide 13: Rating improvement reflects our continued ESG commitment
Rating improvement reflects our continued ESG commitment Rating Ranking Scale 2023 2022 2021 2020 (From F to A) D- to A F: no filing Submitted A- A- B Climate Change D- to A F: no filing Submitted A- B F Water Security CCC to AAA A BBB BBB BBB D- to A+ A- B+ B C- D- to A+ C+ Prime C+ Prime Not rated
Slide 14: Scope 1, 2 and 3 CO2 emissions footprint
Scope 1, 2 and 3 CO2 emissions footprint (*) INDIRECT EMISSIONS INDIRECT EMISSIONS DIRECT EMISSIONS TOTAL CO2 EMISSIONS (ELECTRICITY) (VALUE CHAIN) Scope 1 Scope 2 Scope 3 Scope 3 CEMENT and OTHER Scope 1 32% CEMENT 64% Sources: Sources: Sources: Scope 1 and 2 ▪ Process and fuel ▪ Purchased electric
Slide 15: Decarbonisation drive across the value chain
Decarbonisation drive across the value chain RAW MATERIALS ENERGY PRODUCTION LOGISTICS ▪ Calcined clay ▪ Switch to natural gas and ▪ Plants upgrade ▪ Green Transportation ▪ GBFS, fly ash and Biomass in Aalborg from ▪ Clinker ratio reduction (Hybrid trucks) limestone 2025 ▪ Network and routes ▪ Kiln
Slide 16: Scope 1 emissions: new 2030 decarbonization targets
Scope 1 emissions: new 2030 decarbonization targets (*) Kg CO2 Gross/TCE NEW ROADMAP WHITE CEMENT 2025 Target OLD ROADMAP White cement target (Kg CO2/TCE) 2030 Target -19% to 738 Kg from 915 Kg NEW ROADMAP OLD ROADMAP GREY CEMENT 2025 2030 Grey cement target Target Target (Kg CO2/TCE) TAXONOMY CO2 L
Slide 17: Scope 1 emission reduction waterfall
Scope 1 emission reduction waterfall 2030 Roadmap earmarks three main levers to reduce Scope 1 emissions: ▪ FUTURECEM® and other low carbon products ▪ Increase of alternative and/or less carbon intensive fuels ▪ Thermal energy efficiencies ▪ Carbon capture in Aalborg, Denmark, from 2030 GREY CEMENT
Slide 18: FUTURECEM is a key pillar of our sustainability strategy
FUTURECEM® is a key pillar of our sustainability strategy ▪ Proprietary limestone calcined clay technology which enables ▪ 2021: Launch in Denmark with sales targets achieved over 30% CO2 reduction compared to ordinary Portland through ▪ 2022: Launch in France and Benelux. Progressive roll-out in al
Slide 19: 2023-25 Capex highlights
2023-25 Capex highlights ▪ 86 M€ of sustainability* investments, focused INDUSTRIAL PLAN CAPEX BREAKDOWN on operational efficiencies via plant upgrades EUR million and product innovation ▪ Main initiatives: − Kiln upgrade in Gaurain, Belgium − Facility upgrade for FUTURECEM® production in Aalborg, D
Slide 20: 2023 First Nine Months results and Guidance
2023 First Nine Months results and Guidance 20
Slide 21: 2023 First Nine Months results highlights
2023 First Nine Months results highlights FINANCIAL HIGHLIGHTS Revenues reached 1,295 M€ (+0.5% yoy); non-GAAP* Revenues reached 1,288.9 M€ (+ 0.8% yoy) − Cement volumes down by 3.1% due to Denmark, Belgium, US, Malaysia and Egypt, partially offset by growth in Türkiye and China − RMC volumes down b
Slide 22: Nordic & Baltic
Nordic & Baltic ASSET OVERVIEW SHARE OF GROUP EBITDA DENMARK − Cement volumes declined as domestic market was affected by slowing demand due to higher interest rates, partially compensated by the infrastructure segment (32) − RMC and aggregates volumes were down 20% and 8%, respectively (27) 44% − E
Slide 23: Belgium and France
Belgium and France (*) ASSET OVERVIEW SHARE OF GROUP EBITDA BELGIUM AND FRANCE − Cement volumes declined by 8% mostly due to a generalized demand slowdown − RMC volumes were down 8% both in Belgium and France − Aggregates volumes were down 13% both on domestic and export 22% markets also due to a pa
Slide 24: Türkiye
Türkiye ASSET OVERVIEW SHARE OF GROUP EBITDA TÜRKIYE − As from April 2022 Türkiye is considered “hyperinflationary”, its results as of 30 September 2023 are prepared using IAS 29 18% accounting principle. The figures reported herewith are non- GAAP − Revenue increased by 31.5% , with domestic cement
Slide 25: North America
North America ASSET OVERVIEW SHARE OF GROUP EBITDA UNITED STATES − White cement volume declined by 16%, in line with the residential market. Deliveries to Texas and Florida suffered from 6% a stronger contraction due to competitive pressures from imports and lower demand. More moderate decline in Yo
Slide 26: Asia Pacific
Asia Pacific ASSET OVERVIEW SHARE OF GROUP EBITDA CHINA − Revenue broadly flat due to 15% volumes growth, offset by lower cement prices. In Q1 2023 cement sales were negatively affected by lockdowns; in Q2 and Q3 2023 volumes 6% were up but competition put pressure on pricing − EBITDA includes a non
Slide 27: Egypt
Egypt ASSET OVERVIEW SHARE OF GROUP EBITDA EGYPT − Revenue declined by 14.2% because of the strong devaluation of Egyptian pound vs Euro. Revenue in local currencies were up 49.6% 3% − White cement volumes were stable both on domestic deliveries and exports − EBITDA increased thanks to tight product
Slide 28: 2023 Full Year Guidance
2023 Full Year Guidance FINANCIAL HIGHLIGHTS • Revenues ~ 1.8 BN€ • EBITDA ~ 380 M€ (+4% increase from 365 M€) • Net cash > 200 M€ (unchanged) • Capex ~ 113 M€ (unchanged) Guidance refers to like-for-like ongoing operations, non-GAAP (excluding IAS 29), excluding extraordinary items These expectatio
Slide 29: Appendix
Appendix f Concretely Dynamic Cc cementirholding
Slide 30: Appendix - Consolidated Income Statement – First Nine Months 2023
Appendix - Consolidated Income Statement – First Nine Months 2023 9M 2023 9M 2022 (EUR million) 9M 2023 9M 2022 Chg % Chg % (Non-GAAP)* (Non-GAAP)* REVENUE FROM SALES AND SERVICES 1,295.0 1,288.0 0.5% 1,288.9 1,278.6 0.8% Change in inventories 16.0 24.5 (34.6%) 19.4 28.1 (31.1%) Increase for interna
Slide 31: Appendix - Consolidated Income Statement – Third Quarter 2023
Appendix - Consolidated Income Statement – Third Quarter 2023 Q3 2023 Q3 2022 (EUR million) Q3 2023 Q3 2022 Chg % Chg % (Non-GAAP)* (Non-GAAP)* REVENUE FROM SALES AND SERVICES 454.4 456.4 (0.5%) 420.7 452.8 (7.1%) Change in inventories 9.9 6.3 55.9% 9.9 7.8 26.5% Increase for internal work and other
Slide 32: Increasing shareholders return
Increasing shareholders return ▪ +22% Dividend per Share increase vs. 2021 (21,1% payout ratio) ▪ The 2023-2025 Industrial Plan assumes the distribution of an increasing dividend with a payout ratio between 20% and 25% DIVIDEND PER SHARE EARNINGS PER SHARE PAYOUT RATIO 20-25% range +22% +44% 25% 20%
Slide 33: 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 34: Key differences between white and grey cement
Key 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 m
Slide 35: 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 (*) Source: Turkish Cement Man
Slide 36: 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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