Heidelberg Materials Ag · XETR:HEI
Heidelberg Materials — H1 2024 Earnings Presentation
33 slides from Heidelberg Materials's earnings presentation, Jul 30, 2024
Slide 1: 2024 Half Year Results
2024 Half Year Results 2024 Half Year Results | Dr Dominik von Achten, René Aldach 30.07.2024
Slide 2: Key messages Q2 2024
Key messages Q2 2024 Solid result improvement despite lower volumes: - Revenue -2%; EBITDA +4%; RCO +5% 1 - EBITDA margin improves by +130 bps Step change in North America with significant EBITDA margin improvement by +540 bps, driven by good underlying performance and strong contribution from our i
Slide 3: Operational result
> SSE NOSES OO OC _ Oo a -7 ee NESS. NANOS). SC ss ae” Operational result
Slide 4: Q2 2024: Solid result driven by margin improvement
Operational result Q2 2024: Solid result driven by margin improvement Revenue [€m] Operating EBITDA [€m] Operating EBITDA Margin Operating EBIT (RCO) [€m] -71 €m +56 €m +130 +40 €m LfL: -2% LfL: +4% bps LfL:+5% 5,577 5,506 1,230 1,286 23.4% 931 971 22.1% Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 20
Slide 5: H1 2024: Slower Q1 compensated by stronger 2nd quarter
Operational result H1 2024: Slower Q1 compensated by stronger 2nd quarter Revenue [€m] Operating EBITDA [€m] Operating EBITDA Margin Operating EBIT (RCO) [€m] -479 €m +42 €m +124 +14 €m LfL: -5% LfL: +2% bps LfL: +2% 10,473 1,787 1,828 18.3% 1,189 1,202 9,994 17.1% H1 2023 H1 2024 H1 2023 H1 2024 H1
Slide 6: Q2 2024: Operating EBIT (RCO) bridge
Operational result Q2 2024: Operating EBIT (RCO) bridge [€m] +42 €m (+5%) 147 -12 11 971 960 931 -13 918 -93 Q2 2023 RCO Currency Q2 2023 LfL RCO Net volume Price over cost Depreciation Q2 2024 LfL RCO Scope Q2 2024 RCO & Amort. 6 30.07.2024 2024 Half Year Results | Dr Dominik von Achten, René Aldac
Slide 7: H1 2024: Operating EBIT (RCO) bridge
Operational result H1 2024: Operating EBIT (RCO) bridge [€m] +20 €m (+2%) 1,189 -25 336 -21 19 1,202 1,184 1,164 -295 H1 2023 RCO Currency H1 2023 LfL RCO Net volume Price over cost Depreciation H1 2024 LfL RCO Scope H1 2024 RCO & Amort. 7 30.07.2024 2024 Half Year Results | Dr Dominik von Achten, R
Slide 8: Step change in North America with significant EBITDA margin improvement
Operational result Step change in North America with significant EBITDA margin improvement North America Operating EBITDA margin 2025 target NAM Cement Operating EBITDA margin 400 to 500 bps improvement vs. NAM Aggregates Operating EBITDA margin 2019 26.8% 25.0% 30.8% 30.0% 25.8% 29.1% 28.9% 28.0% 2
Slide 9: Mitchell K4 – driving growth, profitability & sustainability
North America Mitchell K4 – driving growth, profitability & sustainability Full ramp-up of our new state-of-the-art cement plant in North America progressing as expected Substantial contribution to strong result and margin development in 2024 with significant further potential to accommodate growing
Slide 10: North America – Successful cash recycling with value accretive expansions
Strategy North America – Successful cash recycling with value accretive expansions Acquisitions in North America over the last 3 years High synergy potential through cost reduction, procurement, technology transfer US Northeast Canada Brant Concrete (RMC) Green Drop Rock Above 10% ROIC post integrat
Slide 11: Europe
Operational result Europe Q2 2023 Q2 2024 -59 €m -17 €m -25 LfL: -3% LfL: -3% bps 2,594 2,535 484 466 18.6% 18.4% Revenue [€m] RCO [€m] RCO Margin Demand recovery continues in Central and Eastern Europe. Volumes impacted by slow construction market in certain Western Europe markets, and weather impa
Slide 12: North America
Operational result North America Q2 2023 Q2 2024 +21 €m +69 €m +455 LfL: 0% LfL: +27% bps 1,404 1,425 325 22.8% 256 18.2% Revenue [€m] RCO [€m] RCO Margin Strong result development despite slower demand and volume developments Step change in North America with significant margin improvement driven b
Slide 13: Asia – Pacific
Operational result Asia – Pacific Q2 2023 Q2 2024 -23 €m -15 €m -152 LfL: -3% LfL: -29% bps 874 851 96 11.0% 81 9.6% Revenue [€m] RCO [€m] RCO Margin Challenging market environment due to elections and bad weather conditions puts pressure on pricing and margins Overall stable business development in
Slide 14: Africa – Mediterranean – Western Asia
Operational result Africa – Mediterranean – Western Asia Q2 2023 Q2 2024 -45 €m -15 €m -155 LfL: 0% LfL: -6% bps 590 545 19.5% 18.4% 115 100 Revenue [€m] RCO [€m] RCO Margin Overall stable demand in the quarter Positive pricing in local currencies is not enough to compensate on going cost pressure D
Slide 15: Sustainability highlights
Sustainability highlights Further progress in CO2 reduction: -2% of specific net CO2 emissions year-over-year New product developments of evoBuild product range accelerate share of sustainable revenue CEM: +470 bps Driving circularity and recycling: Mick George and B&A Group, two leading recycling c
Slide 16: Significant progress in all sustainability KPIs
Sustainability Significant progress in all sustainability KPIs Specific net CO2 emissions [kg CO2/t cementitious material] Alternative fuel rate +130 750 -1.7% bps 45.0% 538 529 30.6% 29.3% 400 2.9% 1990 Jun 2023 Jun 2024 2030 1990 Jun 2023 Jun 2024 2030 Clinker incorporation factor Sustainable reve
Slide 17: Closing the loop: First-of-its-kind recycling plant applying patented ReConcrete process
Sustainability Closing the loop: First-of-its-kind recycling plant applying patented ReConcrete process Katowice, Poland Innovative recycling plant for selective separation Proprietary crushing mechanism enabling sophisticated separation and sorting of demolished concrete Highest quality aggregates,
Slide 18: Financial highlights
Financial highlights 2024 Half Year Results | Dr Dominik von Achten, René Aldach 30.07.2024
Slide 19: Financial highlights
Financial highlights Adjusted EPS increases by 17% to 4.3 € Last 12 months free cash flow at 2.2 €bn 1, leading to cash conversion rate of 52% Leverage 0.10x below prior year First Green Bond issued with an amount of 700 €m 1.2 €bn share buyback program announced. First tranche with an amount of 350
Slide 20: Adjusted EPS continues to increase
Financial highlights Adjusted EPS continues to increase Income Statement [€m] H1 2023 H1 2024 Delta Key items below RCO Revenue 10,473 9,994 -479 Additional ordinary result: RCOBD (Operating EBITDA) 1,787 1,828 +42 2024: -182 €m due to impairment Depreciation and amortization -598 -626 -28 and restr
Slide 21: Solid increase in free cash flow leads to higher cash conversion
Financial highlights Solid increase in free cash flow leads to higher cash conversion Free cash flow [€m] H1 2023 H1 2024 Delta Free cash flow drivers Operating EBITDA 1,787 1,828 +42 Working capital: Change in working capital -1,265 -1,264 +1 Seasonal build-up as construction Net interest -122 -98
Slide 22: Net debt development
Financial highlights Net debt development [€m] +85 €m 6,686 680 6,771 388 107 546 594 -2,230 Shareholder return: Above 1 €bn Net debt June 2023 FCF Net growth CapEx Group Dividends Minority Dividends Share buyback Currency/other 1 Net debt June 2024 1 Includes consolidation impacts on Net Debt from
Slide 23: Outlook
Outlook
Slide 24: Guidance confirmed
Business Outlook & Guidance Guidance confirmed Key steering KPIs 2024 Target RCO 3.00 to 3.30 €bn ROIC At around 10% CO2 emission (kg CO2/t cementitious Slight reduction material) 24 30.07.2024 2024 Half Year Results | Dr Dominik von Achten, René Aldach
Slide 25: Key messages Q2 2024
Key messages Q2 2024 Solid result improvement despite lower volumes: - Revenue -2%; EBITDA +4%; RCO +5% 1 - EBITDA margin improves by +130 bps Step change in North America with significant EBITDA margin improvement by +540 bps, driven by good underlying performance and strong contribution from our i
Slide 26: Appendix
Appendix
Slide 27: Scope & currency impacts
Appendix Scope & currency impacts Revenue Operating EBITDA Operating EBIT (RCO) Scope & currency Q2 2024 [€m] Scope Currency Scope Currency Scope Currency Europe 14 12 -5 3 -5 2 North America 15 7 1 0 -1 0 Asia – Pacific 32 -26 17 -5 14 -3 Africa – Med. - Western Asia 17 -59 5 -13 3 -12 Group Servic
Slide 28: Operating result
Appendix Operating result Revenue Operating EBITDA Operating EBITDA Margin Operating EBIT (RCO) Operating result Q2 2024 [€m] Q2 23 Q2 24 Change LfL Q2 23 Q2 24 Change LfL Q2 23 Q2 24 Change LfL Q2 23 Q2 24 Change LfL Europe 2,594 2,535 -2.3% -3.3% 610 595 -2.5% -2.0% 23.5% 23.5% -5 bps +30 bps 484
Slide 29: Operating result – Business lines
Appendix Operating result – Business lines Quarterly Figures Year to Date Figures Revenue Operating EBITDA Operating EBITDA Margin Revenue Operating EBITDA Operating EBITDA Margin Business line CEMENT [€m] Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 H1 23 H1 24 H1 23 H1 24 H1 23 H1 24 Europe 1,380 1,345 -2.
Slide 30: 2023 restated figures
Appendix 2023 restated figures 1 Operating EBITDA [€m] Q1 23 Q2 23 H1 23 Q3 23 9M 23 Q4 23 FY 23 Q1 23 Q2 23 H1 23 Q3 23 9M 23 Q4 23 FY 23 Europe 255 610 864 593 1,458 425 1,883 11.3% 23.5% 17.8% 24.3% 20.0% 18.7% 19.7% North America 76 332 409 448 857 325 1,181 7.4% 23.7% 16.8% 29.5% 21.7% 25.7% 22
Slide 31: Financial Calendar & IR Contacts
Financial Calendar & IR Contacts Upcoming events: 7th November 2024: Third quarter trading update Contact: Investor Relations: ir-info@heidelbergmaterials.com +49 6221 481 13227 Press & Media: info@heidelbergmaterials.com 31 30.07.2024 2024 Half Year Results | Dr Dominik von Achten, René Aldach
Slide 32: Disclaimer
Disclaimer Unless otherwise indicated, the financial information provided herein has been prepared under International Financial Reporting Standards (IFRS). All the figures included in this presentation are preliminary, unaudited and subject to revision upon completion of the Company's closing and a
Slide 33: Heidelberg Materials
Heidelberg Materials