Heidelberg Materials Ag · XETR:HEI
Heidelberg Materials — H1 2022 Earnings Presentation
20 slides from Heidelberg Materials's earnings presentation, Jul 28, 2022
Slide 1: 2022 Half Year Results
2022 Half Year Results 28 July 2022 Dr. Dominik von Achten – Group CEO René Aldach – Group CFO
Slide 2: Key Messages Q2 2022
Key Messages Q2 2022 ▪ Strong pricing drives top line growth and stabilizes result: Revenue +10%; EBITDA -6%; RCO -6% * ▪ Price over cost almost stable for the quarter, turned positive in the month of June ▪ CO2 reduction further accelerated by around 2.5%; even before CCUS projects ▪ Renewal of syn
Slide 3: Solid result despite a very strong comparison base
OPERATIONAL PERFORMANCE Solid result despite a very strong comparison base Revenue (m€) Operating EBITDA (m€) Operating EBITDA Margin Operating EBIT (RCO) (m€) +27.7% +13.3% +25.4% LfL: +29.9% LfL: +14.8% LfL: +28.4% +10.9% -4.3% -262 bps -5.2% LfL: +10.4% LfL: -5.7% LfL: -5.7% -325 bps 5,523 1,182
Slide 4: Successful price increases drive top line growth and stabilize EBITDA & RCO
OPERATIONAL PERFORMANCE Successful price increases drive top line growth and stabilize EBITDA & RCO Revenue (m€) Operating EBITDA (m€) Operating EBITDA Margin Operating EBIT (RCO) (m€) +20.5% +8.6% +27.8% LfL: +24.2% LfL: +11.6% LfL: +33.1% +11.3% -11.4% -168 bps -16.3% LfL: +11.6% LfL: -11.8% LfL:
Slide 5: Q2 2022 – Regional overview
OPERATIONAL PERFORMANCE Q2 2022 – Regional overview ’22 vs ’21 Successful price increases to a large extent compensate cost pressure. Volumes Q2 20 Q2 21 Q2 22 LfL North America Cement sales volume (mt) 28.7 33.5 30.5 -6.7% ▪ Stable volume development across business lines with healthy orderbooks in
Slide 6: Q2 2022 – Operating EBITDA bridge
OPERATIONAL PERFORMANCE Q2 2022 – Operating EBITDA bridge (m€) -5.7% 51 1,233 -53 1,182 -16 1,163 -32 1,131 Q2 2021 EBITDA Currency Q2 2021 Net volume Price over cost Q2 2022 Scope Q2 2022 EBITDA LfL EBITDA LfL EBITDA 6 2022 Half Year Results | 28 July 2022
Slide 7: H1 2022 – Operating EBITDA bridge
OPERATIONAL PERFORMANCE H1 2022 – Operating EBITDA bridge (m€) -11.8% 65 1,785 -33 -177 1,720 1,575 -51 1,525 H1 2021 EBITDA Currency H1 2021 Net volume Price over cost H1 2022 Scope H1 2022 EBITDA LfL EBITDA LfL EBITDA 7 2022 Half Year Results | 28 July 2022
Slide 8: Commercial Excellence Program clearly pays-off
OPERATIONAL PERFORMANCE Commercial Excellence Program clearly pays-off Domestic cement price increase vs. PY same period Price over cost 22.1% 81 13.5% 8.8% -50 -47 -52 4.2% -96 1.1% -171 -161 Q2 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Apr 2022 May 2022 Jun 2022 Succe
Slide 9: Good improvement in most of the financial KPIs
FINANCIAL HIGHLIGHTS Good improvement in most of the financial KPIs Revenue EBITDA Clean EPS Net debt Shareholder reduction return 10.0 billion 1.5 billion 3.1 EUR -662 million 1.3 billion +12% LfL -12% LfL +3% vs. June 2021 Strong pricing drives High cost inflation put Stable EPS despite Comfortabl
Slide 10: Free cashflow and net debt development
FINANCIAL HIGHLIGHTS Free cashflow and net debt development Free cash flow generation – Last 12 Months (m€) Net debt development (m€) Cash conversion rate: 29% -662 3,679 7,454 -123 610 96 6,792 -446 -761 686 -375 -1,293 -1,351 1,067 -318 761 -306 LTM Interest Tax Change CapEx Other FCF US West FCF
Slide 11: Income statement
FINANCIAL HIGHLIGHTS Income statement Income Statement (m€) Jun 2021 June 2022 Delta Key developments: Revenue 8,938 9,950 +1,012 ▪ Additional ordinary result: RCOBD (Operating EBITDA) 1,720 1,525 -195 o 2022: -87 m€ asset impairment in Russia. Depreciation and amortization -636 -617 +19 o 2021: Rev
Slide 12: Sustainability: We are well on-track to reach our ambitious CO2 targets
SUSTAINABILITY Sustainability: We are well on-track to reach our ambitious CO2 targets Specific net CO2 emissions * Clinker incorporation 82.0% ~25% 74.3% 73.3% 71.9% 750 >30% 68.0% 576 563 1990 …….. Dec Jun Jun …….. 2030 551 2020 2021 2022 Target 400 Alternative fuel rate 45.0% 25.6% 26.2% 27.8% 19
Slide 13: Outlook 2022
OUTLOOK & KEY TAKEAWAYS Outlook 2022 Strong increase in revenue, slight decrease in operating EBITDA and RCO (all LfL) CapEx Net <1.2 bn EUR ROIC at around 9% Leverage between 1.5x to 2.0x 13 2022 Half Year Results | 28 July 2022
Slide 14: Key Messages Q2 2022
Key Messages Q2 2022 ▪ Strong pricing drives top line growth and stabilizes result: Revenue +10%; EBITDA -6%; RCO -6% * ▪ Price over cost almost stable for the quarter, turned positive in the month of June ▪ CO2 reduction further accelerated by around 2.5%; even before CCUS projects ▪ Renewal of syn
Slide 15: Appendix
Appendix
Slide 16: Sales volumes
APPENDIX Sales volumes Sales Volumes Cement (‘000 t) Aggregates (‘000 t) Ready Mix (‘000 m3) Asphalt (‘000 t) QUARTER Q2 21 Q2 22 Change LfL Q2 21 Q2 22 Change LfL Q2 21 Q2 22 Change LfL Q2 21 Q2 22 Change LfL North America 4,485 3,786 -699 -1.6% 35,155 33,312 -1,844 1.9% 2,097 1,642 -455 -2.1% 1,43
Slide 17: Operating result
APPENDIX Operating result Operating Result Revenues (m€) Operating EBITDA (m€) Operating EBIT / RCO (m€) EBITDA Margin QUARTER Q2 21 Q2 22 Change LfL Q2 21 Q2 22 Change LfL Q2 21 Q2 22 Change LfL Q2 21 Q2 22 Change LfL North America 1,269 1,300 2.4% 5.9% 335 303 -9.6% -10.7% 251 220 -12.2% -11.1% 26
Slide 18: Scope and currency impacts
APPENDIX Scope and currency impacts Scope & Currency Scope Impact on Volumes Revenue Operating EBITDA Operating EBIT (RCO) QUARTER CEM AGG RMC ASP Scope Currency Scope Currency Scope Currency North America -626 -2,506 -410 -721 -198 145 -28 35 -25 25 West / South Europe 0 -259 -73 0 -8 7 -1 1 -1 1 N
Slide 19: Contact information and financial calendar
FINANCIAL CALENDAR Contact information and financial calendar Date Events Contact Information 3 November 2022 Third Quarter Results Christoph Beumelburg Director Group Communication & Investor Relations Phone: +49 (0) 6221 481 13249 christoph.beumelburg@heidelbergcement.com Ozan Kacar Head of Invest
Slide 20: Disclaimer
Disclaimer Unless otherwise indicated, the financial information provided herein has been prepared liquidity crises; the outcome of pending investigations and legal proceedings and actions under International Financial Reporting Standards (IFRS). resulting from the findings of these investigations;