Slide 1: 2019 First Quarter Results
HeidelbergCement 2019 First Quarter Results 09 May 2019 Dr. Bernd Scheifele, CEO and Dr. Lorenz Näger, CFO Groupe scolaire Anatole France in Sarcelles, France Slide 1 – 2019 First Quarter Results – 09 May 2019
Slide 2: Contents
Contents Page Operational Performance 3 Results by Group areas 11 Outlook 2019 19 Appendix 21 Slide 2 – 2019 First Quarter Results – 09 May 2019
Slide 3: Q1 2019 Overview
Q1 2019 Overview LfL Revenue up +15% * Strong volume development LfL EBITDA up +26% * and solid order backlog A strong start which signals a solid earnings growth for full year Increase in margins in all Disposals reach ~220 m€; business lines Net Debt 0.8 b€ below Mar18** * LfL figures excluding cu
Slide 4: Q1 2019 Overview
Q1 2019 Overview Key operational and financial highlights: Sales volumes increase in all business lines. 15% increase in revenues driven by solid pricing and positive volume development. Margin improvement in all business lines leading to +26% organic EBITDA growth. Action plan on track. Mor
Slide 5: Q1 Operating EBITDA Bridge (m€)
Q1 Operating EBITDA Bridge (m€) +26% 62 -127 143 79 3 396 -14 313 250 5 -5 249 Q118 Currency Decons. Q118 LfL Price Net Costs Other Q119 LfL IFRS 16 Scope Q119 Reported EBITDA volume EBITDA Reported EBITDA EBITDA Solid pricing more than compensates cost inflation in the first quarter Previous year f
Slide 6: Operational performance / margin development
Operational performance / margin development Regional EBITDA Development Business Line Margin Development * Mio €; before IFRS 16 Leasing adjustments. 22 -16 +33 bps +227 bps Q1 2018 -2 Q1 2019 21 317 12.1% 11.4% 11.7% 40 Egypt (-12m€) 9.8% Turkey (-3m€) 250 2 +73 bps -3.0% -3.7% Q118 NAM WSE NEECA
Slide 7: Energy costs – Clear tailwind for the rest of the year
Energy costs – Clear tailwind for the rest of the year. COAL Price Development European Power Market Price Development Example: Australia Coal (New Castle) Example: Germany Power Price (€/MWh) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 102.1 $ -22.7% -1.0% +14.4% +3.9% 86.5 $ Actual 2018 spot Current forward price 201
Slide 8: Key financial messages Q1 2019
Key financial messages Q1 2019 Significant improvements in Net Debt and Free Cash Flow Additional ordinary result: Q1 2019: Close to zero due to lower gains from disposals; Full year: Closing of Ukraine disposal will result in a significant non-cash loss in Q2 2019 which will be compensated
Slide 9: Net Debt and Portfolio Optimization
Net Debt and Portfolio Optimization Net Debt by the end of period Portfolio optimization continues b€ 2018 Disposals: ~600m EUR IFRS 16 impact Net debt before IFRS 16 US White Cement German Sand Lime Brick 10.4 Saudi Arabia -0.8 Georgia Syria 1.3 Max. Ciment Quebec 9.0 Other asset sale
Slide 10: Results by Group areas
Contents Page 2018 Overview 3 Results by Group areas 11 Outlook 2019 19 Appendix 21 Slide 10 – 2019 First Quarter Results – 09 May 2019
Slide 11: Overview of Group Areas
Overview of Group Areas • Solid order book with positive price momentum. • Revenue +7%: EBITDA +38%. North America • Inventory draw down both in cement (full silos at end 2018) and aggregates (annual repairs) impacts margins. Recovery started in Q2. • Significant improvement in result driven by pric
Slide 12: North America
North America Q118 Q119 Q1 Market overview Q1 Operational result (m€) North: Strong volumes on a weather-affected comparison LfL: +7.4% LfL: +38.4% LfL: +7.3% base. Efficient cost management compensates the price pressure in North Atlantic. 829 31 South: Solid volumes driven by the commercial se
Slide 13: Western and Southern Europe
Western and Southern Europe Q118 Q119 Q1 Market overview Q1 Operational result (m€) Strong volume development in all countries driven by mild LfL: +15.2% LfL: N/A LfL: +46.9% winter, more working days and solid underlying trends. 1.178 56 Cement price increases implemented mainly already in 1.02
Slide 14: Northern and Eastern Europe - Central Asia
Northern and Eastern Europe - Central Asia Q118 Q119 Q1 Market overview Q1 Operational result (m€) Eastern Europe: Strong underlying demand driven by LfL: +15.1% LfL: +120.3% LfL: N/A infrastructure and housing. Mild winter and more working 574 57 6 days further drove the volumes. 514 Nordics: L
Slide 15: Asia Pacific
Asia Pacific Q118 Q119 Q1 Market overview Q1 Operational result (m€) Australia: Large infrastructure projects compensating for LfL: +4.7% LfL: +14.1% LfL: +26.9% decline in residential. SG&A savings contribute to the result. 814 162 98 Indonesia: Pricing at a very strong level since Q4 2018 747
Slide 16: Africa - Eastern Mediterranean Basin
Africa - Eastern Mediterranean Basin Q118 Q119 Q1 Market overview Q1 Operational result (m€) Sub Saharan Africa: Strong contribution supported by LfL: +0.9% LfL: -15.5% LfL: -20.5% demand growth and commercial initiatives. 420 429 105 81 Morocco: Solid result due to efficient cost management. 96
Slide 17: Group Services
Group Services Q118 Q119 Q4 Market overview Q1 Operational result (m€) Clinker surplus rises in the Mediterranean Basin driven by LfL: +57.2% LfL: -6.5% LfL: -8.6% Turkey, as well as Algeria and Tunisia. 567 10 9 9 8 Clinker imports create a vacuum impact in Eastern China, which leads to higher
Slide 18: Outlook 2019
Contents Page 2018 Overview 3 Results by Group areas 11 Outlook 2019 19 Appendix 21 Slide 18 – 2019 First Quarter Results – 09 May 2019
Slide 19: 2019: Solid result improvement and debt reduction
2019: Solid result improvement and debt reduction Europe North America Solid EBITDA growth as Solid result driven by a result of continued price and demand recovery and price growth; new state increases. Asia Pacific infrastructure spending in most of the key states. Clear improvement in Africa earn
Slide 20: Appendix
Contents Page 2018 Overview 3 Results by Group areas 11 Outlook 2019 19 Appendix 21 Slide 20 – 2019 First Quarter Results – 09 May 2019
Slide 21: Change in accounting (IFRS16-Leasing & Result from associates)
Change in accounting (IFRS16-Leasing & Result from associates) Q1 2019 Q1 2019 Q1 2019 IFRS16 – Leasing (m€) EBITDA Depreciation Opr. Income North America 13 -10 3 West / South Europe 25 -23 3 North / East Europe 15 -14 1 Asia Pacific 18 -16 2 Africa / Med. Basin 8 -3 5 Group Service 0 0 0 HC GROUP
Slide 22: Currency & Scope Impacts
Currency & Scope Impacts NAM IFRS 16 Cons. Decon. Curr. ASPAC IFRS 16 Cons. Decon. Curr. Volume Volume Cement volume ('000 t) 3.3 -147.8 Cement volume ('000 t) 0.0 0.0 Aggregates volume ('000 t) 172.9 0.0 Aggregates volume ('000 t) 0.0 0.0 Ready mix volume ('000 m3) 51.4 0.0 Ready mix volume ('000 m
Slide 23: Sales volumes & revenues per business line
Sales volumes & revenues per business line Cement sales volumes (mt) Mar 18 Jun 18 Sep 18 Dec 18 Mar 19 Cement sales revenues (m€) Mar 18 Jun 18 Sep 18 Dec 18 Mar 19 North America 3,001 7,436 12,136 16,187 3,032 North America 313 782 1,301 1,748 333 West / South Europe 6,515 15,079 23,002 30,794 6,8
Slide 24: Vision: Carbon neutral concrete by 2050
Vision: Carbon neutral concrete by 2050 Levers Reduce CO2 content of clinker • Improve energy efficiencies of plants • Increase use of alternative fuels (biomass), raw materials and binder concepts Lower CO2 content of cement and concrete • Use low-CO2 clinker and secondary cementitious materials in
Slide 25: Contact information and event calendar
Contact information and event calendar Date Event Contact Information 30 July 2019 H1 Results Investor Relations Mr. Ozan Kacar 7 November 2019 Q3 Results Head of Investor Relations Phone: +49 (0) 6221 481 13925 Mr. Piotr Jelitto Phone: +49 (0) 6221 481 39568 ir-info@heidelbergcement.com Corporate C
Slide 26: Disclaimer
Disclaimer Unless otherwise indicated, the financial information provided herein has been prepared under International Financial Reporting Standards (IFRS). This presentation contains forward-looking statements and information. Forward-looking statements and information are statements that are not h