Cementir Holding N.v. · MIL:CEM
Cementir — Euronext STAR Conference 2022
39 slides from Cementir's conference presentation, Mar 25, 2022
Slide 1: Euronext STAR Conference Investor presentation
Euronext STAR Conference Investor presentation March 25th, 2022 Euronext STAR Conference | 25 March 2022
Slide 2: Agenda
Agenda Group Highlights 3 White Cement Global Leadership 8 Industrial Plan and ESG commitment 14 2021 Full Year Results 24 Appendix 34 2
Slide 3: Group Highlights
Group Highlights Youth Olympic Games Center, Nanjing (China) 3
Slide 4: Cementir at a glance
HIGHLIGHTS Cementir at a glance GROUP € 1.4 BN 3,083 15.6% 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, 2021 * Excluding «off-white» and lower quality Asian products 4
Slide 5: Business segments
HIGHLIGHTS Business segments GROUP WASTE / CONCRETE GREY CEMENT WHITE CEMENT READY-MIXED CONCRETE AGGREGATES PRODUCTS 2021 Figures REVENUE = 854 M€ REVENUE = 449 M€ REVENUE = 94 M€ REVENUE = 12 M€ EBITDA = 232 M€ EBITDA = 49 M€ EBITDA = 33 M€ EBITDA = 0.9 M€ EBITDA margin = 27% EBITDA margin = 11% E
Slide 6: Industrial Footprint
HIGHLIGHTS GROUP Industrial Footprint Plants Cement plants: 11 Terminals: 60 RMC plants: 101 Quarries: 12 Precast products plants: 1 Waste management facilities: 2 Capacity / Sales Grey cement capacity: 9.8 mt White cement capacity: 3.3 mt Grey cement sales: 8.2 mt White cement sales: 3.0 mt RMC sal
Slide 7: Strategy based on pillars
HIGHLIGHTS Strategy based on 4 pillars GROUP 97 M€ of Green Investments 2021 EBITDA breakdown (*) Sustainability by 2024 Holding and Asia Pacific Focus on high-value added solutions services 9% like FuturecemTM Egypt 1% Innovation 4% Turkey 7% Improve profitability via North America Nordic & Baltic
Slide 8: White cement global leadership
WHITE CEMENT LEADERSHIP White cement global leadership Deichman Main Library, Norway 8
Slide 9: White Cement: unique competitive position
White Cement: unique competitive position WHITE CEMENT LEADERSHIP 3.3 Mt 3 Mt White cement and clinker Cement Capacity volumes sold in 2021 Global leadership in white cement Local leadership #1 in USA, Continental Europe, and production China, Australia, South-East Asia Global leader in trading flow
Slide 10: White cement consumption by macro-area
White cement consumption by macro-area Global white cement demand stands at around 19m tons in 2020e WHITE CEMENT LEADERSHIP ✓ 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 pe
Slide 11: Largest white cement manufacturers' capacity
Largest white cement manufacturers’ capacity (Mt) WHITE CEMENT 1.2x LEADERSHIP 3,30 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 (Total = 28.4 Mt) ~12% ~9% ~6% ~4% ~3% ~2% Source: Cementir estimates, CW Research. * Cimsa capacity includes Buñol plant (6
Slide 12: Unlimited White Cement applications
Unlimited White Cement applications WHITE CEMENT LEADERSHIP 2. Paving blocks: Kerb, Poland Segments: 1.Pre-stressed and Ordinary Reinforced Precast 2.Precast Products 3.Artificial Stones 4.GRC (Glass Fiber Reinforced Concrete) 1. Pre-stressed concrete façade: Chengdu 3. Artificial stone: Villa façad
Slide 13: Cementir key innovations
Cementir key innovations WHITE CEMENT LEADERSHIP 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 produc
Slide 14: Industrial Plan & ESG Commitment
Industrial Plan & INDUSTRIAL PLAN & ESG COMMITMENT ESG Commitment Gaurain Plant, Belgium 14
Slide 15: Our Strategy
Our Strategy ✓ Continue virtuous decarbonisation path with a 2030 Roadmap and 2050 ambition ✓ Strengthen white cement global leadership, focusing on high-added value solutions ✓ Leverage on unique vertically integrated platforms in the Nordics, Belgium and Turkey INDUSTRIAL PLAN & ESG COMMITMENT ✓ K
Slide 16: Our Sustainability journey since 2019
Our Sustainability journey since 2019 2019 2020 2021 • New organization and • 2030 Roadmap on CO2 emissions • Cementir joins the European Sustainability Governance reduction Climate Pact against climate INDUSTRIAL PLAN & ESG COMMITMENT change • 2050 Net Zero ambition • Move from mandatory reporting
Slide 17: 2030 Decarbonization targets
2030 Decarbonization targets SCOPE 1 EMISSIONS (kg CO2/t cement) - Grey cement -31% * INDUSTRIAL PLAN & ESG COMMITMENT • 2030 reduction targets per ton of cement eq. (grey + white) <500 2030 TARGET validated by SBTi for scope 1 and scope 2 1990 2021 2024 2025 2030 Clinker ratio 82% 81% 76% 73% 63% •
Slide 18: Decarbonisation drive across the value chain
Decarbonisation drive across the value chain Raw Materials Energy Process Logistics INDUSTRIAL PLAN & ESG COMMITMENT Calcined clay Switch to natural gas, Plants upgrade Green Transportation biomass and biogas (Aalborg (Cementir 4.0) (Hybrid trucks) GBFS, fly ash and and Gaurain by 2025) limestone Cl
Slide 19: FutureCem is a key pillar of our sustainability strategy
FutureCemTM is a key pillar of our sustainability strategy INDUSTRIAL PLAN & ESG COMMITMENT • Calcined clay is a major raw material for • It enables 40% clinker replacement FuturecemTM production • Lower clinker content allows a 30% CO2 reduction • First Step: investment in storage silo, • Allows to
Slide 20: Futurecem roll-out plan
FuturecemTM roll-out plan ✓ 2021 targets achieved. Progressive launch in all regions in 2022 ✓ By 2030 FuturecemTM volumes sold are expected to reach around 51% of total volumes sold in Europe and 60% of grey cement volumes INDUSTRIAL PLAN & ESG COMMITMENT FuturecemTM roll-out plan - volumes sold in
Slide 21: 2024 Financial targets
2024 Financial targets (*) 2021 A 2024 EUR million ➢ ~7% Sales CAGR in the 2021-24 period INDUSTRIAL PLAN & ESG COMMITMENT Revenues 1,360 ~ 1,650 ➢ 3-4% cement and RMC volumes CAGR ; ~6% aggregates volumes CAGR (**) ➢ Price increases across all markets ➢ ~ 5% EBITDA CAGR as fuels and electricity are
Slide 22: 2022-24 Capex highlights
2022-24 Capex highlights Industrial Plan cumulative Capex • 97 M€ of «green» investments,focused on Green Capex = Sustainability + Digitalization INDUSTRIAL PLAN & ESG COMMITMENT operational efficiency through plant upgrades, digitalisation of industrial processes and product innovation • 2021 susta
Slide 23: 2022-24: strong cash generation continues
2022-24: strong cash generation continues ✓ ~ 340M€ cumulative Free Cash Flow in the 2022-24 period ✓ ~ 312M€ cumulative Capex of which 97M€ is Green Capex INDUSTRIAL PLAN & ESG COMMITMENT Euro Millions > 23
Slide 24: Increasing shareholders return
Increasing shareholders return ✓ +29% Dividend per Share vs 2020 (payout ratio of 25.3%) ✓ Over the 2022-2024 Industrial Plan period, cumulative dividends will exceed 100 M€, assuming 20-25% payout ratio DPS EPS Payout Ratio 2021 FY RESULTS +29 % +11.1 % +340 bps 24
Slide 25: 2021 Full year results and 2022 Guidance
2021 Full year results and 2022 Guidance 2021 FY RESULTS Aalborg plant, Denmark 25
Slide 26: 2021 FY results highlights
2021 FY results highlights • Revenues hit historical record of 1,360 M€ (+11.0% yoy) due to good performance in all geographies − Cement volumes up by 4.1% − RMC volumes up by 14.8% and aggregates up by 8.1% • EBITDA historical record of 311.0 M€ (+17.9% yoy) including 2021 FY RESULTS a 11.1 M€ net
Slide 27: Nordic & Baltic
Nordic & Baltic • Denmark − Domestic cement volumes up 8% due to increased market activity 41% 47% with avg. prices up also due to a favourable product mix − White and grey cement exports up 4% ; white exports driven by UK, Germany and France Share of Share of − RMC and aggregates volumes up 6% and
Slide 28: Belgium and France
Belgium and France (*) 18% 22% Share of Share of Group Revenue Group Ebitda • Belgium 2021 FY RESULTS 2021 2021 • France − Cement volumes increased by 2%, thanks to favourable weather, market growth and 2020 comparable figures impacted by Covid19 − Average prices showed an upward trend in both domes
Slide 29: North America
North America 8% 10% Share of Share of Group Revenue Group Ebitda 2021 FY RESULTS 2021 2021 • United States − +3% cement volume growth and prices moderately up, with EUR '000 2021 2020 Chg % different local trends Revenue 155,478 152,968 1.6% − EBITDA up by 11.9% thanks to higher sales volumes and p
Slide 30: Asia Pacific
Asia Pacific 9% 7% Share of Share of • China 2021 FY RESULTS Group Revenue Group Ebitda 2021 2021 − Revenue up by 14.7% due to more favorable sales mix − EBITDA up by 21.5% driven by higher sales prices, despite higher raw materials and fuel costs EUR '000 2021 2020 Chg % Revenue 108,017 94,660 14.1
Slide 31: Turkey
Turkey 11% 12% Share of Share of Group Revenue Group Ebitda 2021 FY RESULTS 2021 2021 • Turkey (*) − Cement sales increased by 58% in local FX, with higher cement volumes and avg. cement prices up in local currency in line with PPI − RMC volumes increased by 30% YoY, thanks to start of new EUR '000
Slide 32: Egypt
Egypt 3% 3% Share of Share of Group Revenue Group Ebitda 2021 FY RESULTS 2021 2021 • Egypt − Cement domestic volumes increased by 8% , with export EUR '000 2021 2020 Chg % volumes up by over 20% Revenue 50,729 43,364 17.0% − EBITDA increased by 10.6% due to higher volumes and prices EBITDA 10,842 9,
Slide 33: 2022 Full Year Guidance
2022 Full Year Guidance • Revenues > 1,5 BN€ • EBITDA ~ 305 - 315M€ 2021 FY RESULTS • Net cash ~ 60 M€ • Capex ~ 95 M€ Guidance refers to like-for-like ongoing operations These expectations do not take into account any intensified geopolitical tensions and any resurgence of the Covid- 19 pandemic. A
Slide 34: Appendix
Appendix ‘APPENDIX Cc f Concretely Dynami © cementirholding 34 wee’ CALTAGIRONE GROU> S
Slide 35: Consolidated Income Statement
Consolidated Income Statement (EUR million) 2021 2020 Chg % REVENUE FROM SALES AND SERVICES 1,360.0 1,224.8 11.0% Change in inventories 14.7 (14.4) 202.1% Increase for internal work and other income 39.0 22.4 73.8% TOTAL OPERATING REVENUE 1,413.7 1,232.8 14.7% Raw materials costs (566.5) (461.2) 22.
Slide 36: 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 37: Differences between white and grey cement
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 mater
Slide 38: 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 APPENDIX Egypt – EBITDA evolution €M Turkey – EBITDA evolution €M (**) PEAK PEAK 2009-2018 Avg: 34.9 €
Slide 39: 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