Cementir Holding N.v. · MIL:CEM
Cementir — Italian Investment Conference 2021
41 slides from Cementir's conference presentation, May 21, 2021
Slide 1: Cementir Holding N.V. Italian Investment Conference 2021
Cementir Holding N.V. Italian Investment Conference 2021 May 21st, 2021 Naturalis Biodiverity Center, Leiden, The Netherlands (Architect: Neutelings Riedijk Architects - Photo: Scagliola Brakkee) Italian Investment Conference | 21 May 2021
Slide 2: Agenda
Agenda Group Highlights 3 White Cement Global Leadership 8 2021 First Quarter Results 14 Industrial Plan 2021-2023 update 24 Appendix 34 2
Slide 3: Group Highlights
Group Highlights Trakya plant, Turkey 3
Slide 4: Cementir at a glance
Cementir at a glance € 1.2 BN 2,995 12% 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, 2020 * Excluding «off-white» and lower quality Asian products 4
Slide 5: Cementir Industrial Footprint
Cementir Industrial Footprint Plants Cement plants: 11 Terminals: 32 RMC plants: 100 Quarries: 10 Precast products plants: 1 Waste management facilities: 2 Sales / Capacity Grey cement capacity: 9.8 mt White cement capacity: 3.3 mt Grey cement sales: 7.9 mt White cement sales: 2.8 mt Grey cement pla
Slide 6: Cementir operates in five business segments
Cementir operates in five business segments Vertical integration in countries with grey cement presence GREY CEMENT WHITE CEMENT READY-MIXED CONCRETE AGGREGATES WASTE / OTHER (*) 2020 Figures REVENUE = 779 M€ REVENUE = 391 M€ REVENUE = 92 M€ REVENUE = 99 M€ EBITDA = 208 M€ EBITDA = 35 M€ EBITDA = 31
Slide 7: Strategy based on sustainable growth
Strategy based on sustainable growth Strengthen white cement global leadership, 2020 EBITDA breakdown focus on high-value added solutions and special cements (FuturecemTM) Holding and Significant green investments of 107 M€ over Asia Pacific services Egypt 9% -4% the 2021-2023 Industrial Plan period
Slide 8: White cement global leadership
White cement global leadership Aalborg plant, Denmark 8
Slide 9: White Cement: unique competitive position
White Cement: unique competitive position 3.3 Mt 2.8 Mt White cement and clinker Cement Capacity volumes sold in 2020 Global leadership in white cement Local leadership #1 in USA, Continental Europe, and production Oceania and South-East Asia Global leader in trading flows 25% Share of Global In 202
Slide 10: White cement consumption by macro-area
White cement consumption by macro-area Global white cement consumption stands at around 19m tons in 2020e ✓ 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 per capita consumptio
Slide 11: Largest white cement manufacturers' capacity (Mt - 2019)
Largest white cement manufacturers’ capacity (Mt - 2019) 1.6x 3,30 2,01* 1,61 1,36 * 1,20 0,97 0,90 0,90 0,87 0,80 0,70 Share of global white cement capacity (Total = 28.4 Mt) ~12% ~7% ~6% ~5% ~4% ~3% ~2% Source: Cementir estimates, CW Research * Cimsa capacity excludes Buñol plant (650kt of capacit
Slide 12: Unlimited White Cement applications
Unlimited White Cement applications Segments: 2. Paving blocks: Kerb, Poland 1.Pre-stressed and Ordinary Reinforced Precast 2.Precast Products 3.Artificial Stones 4.Urban fittings 3. Artificial stone: Villa façade application, 5.GRC (Glass Fiber Reinforced Concrete) France 1. Pre-stressed concrete f
Slide 13: Cementir key innovations
Cementir key innovations Ultra-high Glass Fiber 3D Concrete FutureCEMTM 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 products performance mortar pe
Slide 14: 2021 First Quarter Results
2021 First Quarter Results 14
Slide 15: 2021 First Quarter results highlights
2021 First Quarter results highlights • Revenues reached 300.5 M€ (+12.6%) thanks to good performance in all geographies − Cement volumes up by 17.5% driven by Turkey, Belgium and Denmark • EBITDA reached 48.1 M€ (+49.4%) − Higher contribution from Belgium, Turkey, Denmark, and to a lesser extent As
Slide 16: Nordic & Baltic
Nordic & Baltic • Denmark 42% − Both grey and white cement volumes up due to increased market activity 56% − White cement exports slightly down due to lower deliveries to Poland, partially set by higher volumes to Belgium and France; grey cement Share of Share of exports declined by 14% due lower sa
Slide 17: Belgium and France
Belgium and France (*) 19% 20% Share of Share of Group Revenue Group Ebitda Q1 2021 Q1 2021 • Belgium • France − Cement and clinker volumes increased by 8%, prices up − RMC: over 20% volumes growth thanks to some important projects getting under way EUR '000 Q1 2021 Q1 2020 Chg % − Aggregates: volum
Slide 18: North America
North America 8% 11% Share of Share of Group Revenue Group Ebitda Q1 2021 Q1 2021 • United States − Sustained volume growth of white cement especially in Florida and York region (PA) also due to a base effect and favorable weather despite a hurricane in Texas and snowfall in York − 4.2% decline in r
Slide 19: Asia Pacific
Asia Pacific 8% 6% • China − Strong demand with white cement and clinker sales volumes up 60%, despite a rainy start of the year, supported by several Share of Share of projects Group Revenue Group Ebitda − EBITDA up by 44.4% driven by higher volumes despite higher Q1 2021 Q1 2021 fixed costs − Chin
Slide 20: Turkey
Turkey 10% 2% Share of Share of Group Revenue Group Ebitda • Turkey (*) Q1 2021 Q1 2021 − Grey cement volumes increased by around 30%, with domestic sales volumes up 38% driven by strong demand in the Marmara, Anatolian and Aegean regions − Exports up 8% with a more favorable sales mix EUR '000 Q1 2
Slide 21: Egypt
Egypt 4% 6% Share of Share of Group Revenue Group Ebitda Q1 2021 Q1 2021 • Egypt − White cement domestic volumes increased by more than 35% − White export volumes increased by 30% after the removal of pandemic restrictions. EUR '000 Q1 2021 Q1 2020 Chg % − EBITDA increased by 48.3% due to higher vol
Slide 22: 2021 Full Year Guidance - unchanged
2021 Full Year Guidance - unchanged • Revenues ~ 1,3 BN€ • EBITDA ~ 285-295 M€ • Net debt ~ 30 M€ • Capex ~ 95 M€ This forward-looking indication does not include new outbreaks of the Covid-19 pandemic in the coming months. The foregoing exclusively reflects the point of view of the company's manage
Slide 23: Consolidated Income Statement – Q1 2021
Consolidated Income Statement – Q1 2021 (EUR million) Q1 2021 Q1 2020 Chg % REVENUE FROM SALES AND SERVICES 300.5 266.9 12.6% Change in inventories (1.2) (1.0) (22.8%) Increase for internal work and other income 5.4 4.1 29.9% TOTAL OPERATING REVENUE 304.6 270.0 12.8% Raw materials costs (123.7) (102
Slide 24: Industrial Plan 2021-2023 update
Industrial Plan 2021-2023 update Trakya plant, Turkey 24
Slide 25: Cementir Strategy
Cementir Strategy ✓ Strengthen white cement global leadership, focusing on high-added value solutions and special cements (FuturecemTM) ✓ Improve profitability and operating efficiency ✓ Pursue product and geographic diversification ✓ Leverage on unique vertically integrated platforms in the Nordics
Slide 26: Our Sustainability journey since 2019
Our Sustainability journey since 2019 • New organizational set-up and Sustainability Governance in order to move from 2019 simple mandatory reporting to voluntary disclosure • Established Sustainability Committee • CO2 emissions reduction targets to 2030, with yearly reduction goals included in Indu
Slide 27: Target of 30% CO2 reduction by 2030
Target of 30% CO2 reduction by 2030 CO2 emission reduction path (*) Focus Areas Low carbon cements -6% grey -26% white • Product offering enhancement through FUTURECEM™ -20% grey technology in both white and grey cement -30% white • Leverage on cementitious materials such as GBFS, fly ash and limes
Slide 28: Product innovation: Futurecem
Product innovation: FuturecemTM • Proprietary technology patented worldwide enabling 40% clinker replacement • Lower clinker content allows a 30% CO2 reduction • Allows to produce a greener and more sustainable concrete • Also used as binder in InWhite SolutionTM and as mineral addition for concrete
Slide 29: Product innovation: Futurecem
Product innovation: FuturecemTM • Commercialization started in January 2021 in Denmark as special product • By 2030 FuturecemTM volumes sold are expected to reach around 51% of total volumes sold in Europe and 60% of grey cement volumes FuturecemTM roll-out plan - volumes sold in ETS countries 29
Slide 30: Digitalization is another driver of our results
Digitalization is another driver of our results Detailed timeline with clear targets ~ €15m of savings run-rate by 2023 • Specific initiatives identified across all areas including 100% production, maintenance and logistics (2023E) • Implementation under way at pilot plants in Belgium and ~90% Denma
Slide 31: 2021-23 Investment plan highlights
2021-23 Investment plan highlights Industrial Plan cumulative Capex • 107 M€ «green» investments to yield ~30 M€ of Green Capex = Sustainability + Digitalization annual cost savings from 2023 • Improve profitability and operational efficiency via product innovation, digitalisation of industrial proc
Slide 32: 2023 Financial targets
2023 Financial targets 2020 2023 EUR million ➢ Revenue CAGR acceleration to 6.3% from 4% in previous plan ➢ 4% CAGR in volumes of grey and white cement in all main Revenues 1,225 ~ 1,470 geographical areas; prices in line with relevant markets and price increase in Turkey ➢ 12% aggregates volumes(*)
Slide 33: Industrial Plan - EBITDA growth drivers
Industrial Plan - EBITDA growth drivers ✓ Strong contribution expected from Turkey where trading outlook is improving ✓ Positive trend in volumes, prices and cost containment underpin 8.8% EBITDA CAGR ✓ € 30m contribution from sustainability and digitalization from 2023 EUR million 33
Slide 34: Appendix
Appendix Gaurain plant, Belgium 34
Slide 35: FY 2020 results highlights
FY 2020 results highlights • Revenues increased by 1.1% to 1,224.8 M€ mainly due to positive performance in Turkey and Egypt − Cement volumes sold were up by 13% thanks to a +39% increase in clinker and cement volumes in Turkey • EBITDA unchanged at 263.8 M€ including a 0.6 M€ net one- off positive
Slide 36: Net Financial Debt change
Net Financial Debt change Net financial debt decreased by over 117 M€ year on year, after 58,1 M€ of Capex, 31 M€ of dividends and 10 M€ of one-offs between share buy back and settlement of previous transactions EUR million -117.4 (*) (**) (*) Including EUR 22.3 million distributed by Cementir Holdi
Slide 37: Consolidated Income Statement
Consolidated Income Statement (EUR million) 2020 2019 Chg % REVENUE FROM SALES AND SERVICES 1,224.8 1,211.8 1.1% Change in inventories (14.4) 5.8 n.m. Increase for internal work and other income 22.4 25.8 (12.9%) TOTAL OPERATING REVENUE 1,232.8 1,243.4 (0.9%) Raw materials costs (461.2) (466.4) (1.1
Slide 38: Differences between white and grey cement
Differences between white and grey cement White Cement Grey Cement ✓ ~ 20 million tons per year ✓ > 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 materials widespread
Slide 39: 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 2009-2018 Avg: 34.9 €M (*) Sou
Slide 40: 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 41: 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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