Slide 1: Investor Presentation FY 2024
Investor Presentation FY 2024 Investor presentation | Heidelberg Materials FY 2024
Slide 2: Content
Content 1. About Heidelberg Materials 2. Our concrete promises 3. Current trading update 4. Capital allocation policy 5. Corporate Governance 2 FY 2024 Investor presentation | Heidelberg Materials
Slide 3: About Heidelberg Materials
1 About Heidelberg Materials
Slide 4: Heidelberg Materials as an attractive investment
Heidelberg Materials as an attractive investment 1. Profitable growth – Our growth is underpinned by a value over volume focus with added benefits from a balanced presence in mature and emerging markets. 2. Strong financial performance – We are on track to achieve our medium and long-term financial
Slide 5: Heidelberg Materials is one of the world’s largest building materials companies
About Heidelberg Materials Heidelberg Materials is one of the world’s largest building materials companies 51,000 3,000 Leading positions in cement, aggregates, and ready-mixed employees on 5 continents locations worldwide concrete 5 FY 2024 Investor presentation | Heidelberg Materials
Slide 6: A balanced geographic footprint in heavy building materials
About Heidelberg Materials A balanced geographic footprint in heavy building materials Revenue by Group areas Revenue by business lines (FY 2024) (FY 2024) Africa-Mediterranean-Western Asia Ready Mix & Asphalt 11% 22% Asia - Pacific 17% 46% Europe 53% Cement 25% Aggregates 26% North America Revenue
Slide 7: Solid asset base which provides strong growth potential
About Heidelberg Materials Solid asset base which provides strong growth potential North Africa–Med.- America Europe Asia–Pacific Western Asia Total Cement 16 mt 63 mt 54 mt 37 mt 170 mt capacity Aggregates re- serves & 12 bn tonnes 4 bn tonnes 3 bn tonnes 0.1 bn tonnes 19 bn tonnes resources Ready
Slide 8: Full year overview
Full year overview Solid operational result and strong financial performance Revenue EBITDA RCO Adjusted margin EPS 1 21.2 €bn 21.3 % 3.2 €bn €11.9 -2% LfL +116 bps +6% LfL +11% Free ROIC Shareholder Carbon cashflow return emissions 2 2.2 €bn 9.9% > 1 €bn 527 kg/tCM PY: 2.2 €bn PY: 10.3% PY: 877 €m
Slide 9: ROIC at high level – despite currency headwind and M&A timing
Financial highlights ROIC at high level – despite currency headwind and M&A timing Average Invested Capital (€m) ROIC 10.3% 9.9% 9.3% 9.1% 7.9% 23,822 23,023 24,088 21,257 22,078 2020 2021 2022 2023 2024 9 FY 2024 Investor presentation | Heidelberg Materials
Slide 10: Leverage at a very comfortable level
Financial highlights Leverage at a very comfortable level Net debt (€m) Leverage 1.86x 1.48x 1.29x 1.24x 6,893 1.18x 5,532 5,294 5,293 4,999 2020 2021 2022 2023 2024 10 FY 2024 Investor presentation | Heidelberg Materials
Slide 11: Continuous EPS improvement with impressive 15% CAGR
Financial highlights Continuous EPS improvement with impressive 15% CAGR Clean EPS (€)1 11.9 +15% 10.4 9.5 7.9 6.9 2020 2021 2022 2023 2024 1 Clean EPS: Figures adjusted for additional ordinary result. In 2020 one-off deferred tax income related to impairments, in 2021 US West assets disposal tax im
Slide 12: Our concrete promises
2 Our concrete promises
Slide 13: Our concrete promises
Our concrete promises 1. We focus on heavy building materials. 2. We commit to generate 50% of our revenue from sustainable products by 2030. 3. We commit to reduce CO2 emissions by almost 50% to 400 kg CO2/t CEM by 2030. 4. We will make this transition a successful business case: on growth, margins
Slide 14: We set ourselves ambitious targets for 2025 & 2030
Our concrete promises We set ourselves ambitious targets for 2025 & 2030 By 2025 5% p.a. 20 – 22% >10% >45% 1.5x – 2.0x Revenue EBITDA ROIC Cash Leverage Growth margin conversion rate ratio By 2030 400 kg/t CEM 50% 50% CO2 emissions Sustainable products Circular concrete1 1 Offer circular alternativ
Slide 15: Our industry-leading carbon reduction targets
Our concrete promises Our industry-leading carbon reduction targets 400 kg CO2/t cementitious material as average across the whole portfolio in 20301 10 mt 47% emission reduction2 across the cementitious cumulative CO2 reduction materials portfolio by 2030 through CCUS by 2030 50% of our revenue wil
Slide 16: Regulatory changes and sustainability focus will be a big opportunity for us
Our concrete promises Regulatory changes and sustainability focus will be a big opportunity for us Green procurement criteria create significant growth potential • Strong demand for sustainable products and solutions on the back of green procurement criteria • Sustainable products with price premium
Slide 17: Significant progress in all sustainability KPIs
Sustainability Significant progress in all sustainability KPIs Specific net CO2 emissions [kg CO /t cementitious material] 2 Alternative fuel rate -1.3% 576 45.0% 534 527 +130 bps 29.9% 31.2% 400 25.7% 2020 2023 2024 2030 2020 2023 2024 2030 Clinker incorporation factor Sustainable revenue CEM 74.3%
Slide 18: CCUS and ETS present a clear margin opportunity for us in Europe
Our concrete promises CCUS and ETS present a clear margin opportunity for us in Europe Margin opportunity Pricing in the sector will due to premium products reflect the average ETS balance Indicative chart €/t CEM Accelerated ETS driven cost increase starting Margin 2026 industry average Ø 18 Margin
Slide 19: Our new global evoBuild product range is setting a new global standard
Sustainability Our new global evoBuild® product range is setting a new global standard Low carbon cement 30% 30% less CO2 vs. CEM I in 20201 Low carbon concrete 30% 30% less CO2 vs. CEM I based concrete in 20201 Applies to all business lines: Cement, Concrete, Aggregates, Asphalt Circular products:
Slide 20: Introducing our evoZero products
Our concrete promises Introducing our evoZero® products Our customers will be able to choose between two evoZero products: Carbon Captured Brevik Carbon Captured evoZero Carbon Captured Brevik evoZero Carbon Captured is our mass-balanced product, produced in and can be delivered from any European pl
Slide 21: evoZero: The world’s first carbon captured net-zero cement
Sustainability evoZero®: The world’s first carbon captured net-zero cement Applies to cement and concrete products • Globally unique product: CCS technology, applied for the first time at a large scale in Brevik, enables net- zero carbon footprint of evoZero® • Broadest product application combined
Slide 22: evoBuild TernoCem: Turning an existing asset into an ultra low-carbon plant
Sustainability evoBuild TernoCem: Turning an existing asset into an ultra low-carbon plant Combining profitability, growth and carbon reduction: Emissions from TernoCem, a new cement type, with a significantly reduced calcination process carbon footprint - up to 50% less CO2 Improved use of material
Slide 23: We will be the first worldwide to offer carbon captured net-zero cement
We will be the first worldwide to offer carbon captured net-zero cement and concrete at scale
Slide 24: Current trading update
4S Current trading update
Slide 25: Another year of success & progress
Another year of success & progress Result and margin improvement continues: - RCO hits a record high of 3.2 €bn - EBITDA margin at 21.3%, within our target corridor of “20% to 22%” “Transformation Accelerator” initiative with 500 €m result contribution started, step change in Western European asset
Slide 26: Strong EBITDA margin improvement continues
Full year overview Strong EBITDA margin improvement continues Europe North America Asia-Pacific Africa-Med-WA +385 bps -70 bps +23 bps +88 bps 26.5% 25.8% 25.1% 22.6% 19.7% 19.9% 18.2% 17.4% 2023 2024 2023 2024 2023 2024 2023 2024 Cement Aggregates Total Group EBITDA margin +212 bps 21.3% 22.0% +62
Slide 27: FY 2024: Result improvement despite volume pressure
Operational result FY 2024: Result improvement despite volume pressure Revenue [€m] Operating EBITDA [€m] Operating EBITDA Margin Operating EBIT (RCO) [€m] -21 €m +241 €m +182 €m +116 bps LfL: -2% LfL: +4% LfL: +6% 21,178 21,156 4,499 21.3% 3,204 4,258 20.1% 3,022 FY 2023 FY 2024 FY 2023 FY 2024 FY
Slide 28: FY 2024: Operating EBIT (RCO) bridge
Operational result FY 2024: Operating EBIT (RCO) bridge [€m] +167 €m (LfL: +6%) 54 3,204 536 -11 3,150 3,022 -40 2,983 -358 FY 2023 RCO Currency FY 2023 LfL RCO Net volume Price over cost Depreciation FY 2024 LfL RCO Scope FY 2024 RCO & Amort. 28 FY 2024 Investor presentation | Heidelberg Materials
Slide 29: Europe
Operational result Europe FY 2023 FY 2024 -99 €m -23 €m LfL: -3% +23 bps LfL: +21% 9.566 9.467 19.7% 19.9% 1.367 1.344 Revenue [€m] EBITDA Margin RCO [€m] +249 bps -109 bps 26.1% 28.5% 20.3% 19.2% Cement EBITDA Margin Aggregates EBITDA Margin 29 FY 2024 Investor presentation | Heidelberg Materials
Slide 30: North America
Operational result North America FY 2023 FY 2024 +92 €m +194 €m +385 bps LfL: -1% LfL: +21% 5.219 5.311 26.5% 22.6% 1.049 856 Revenue [€m] EBITDA Margin RCO [€m] +380 bps +407 bps 30.0% 32.3% 26.2% 28.2% Cement EBITDA Margin Aggregates EBITDA Margin 30 FY 2024 Investor presentation | Heidelberg Mate
Slide 31: Asia – Pacific
Operational result Asia – Pacific FY 2023 FY 2024 -150 €m +6 €m LfL: -5% +88 bps LfL: -9% 3,705 3,555 17.4% 18.2% 399 405 Revenue [€m] EBITDA Margin RCO [€m] +100 bps -216 bps 15.9% 16.9% 23.3% 21.1% Cement EBITDA Margin Aggregates EBITDA Margin 31 FY 2024 Investor presentation | Heidelberg Material
Slide 32: Africa – Mediterranean – Western Asia
Operational result Africa – Mediterranean – Western Asia FY 2023 FY 2024 +5 €m -16 €m LfL: +5% -70 bps LfL: +2% 2.289 2.295 25.8% 25.1% 466 450 Revenue [€m] EBITDA Margin RCO [€m] -24 bps 26.4% 26.1% Cement EBITDA Margin 32 FY 2024 Investor presentation | Heidelberg Materials
Slide 33: “Transformation Accelerator”: Taking the pole position for the future
Operational Excellence “Transformation Accelerator”: Taking the pole position for the future Cross-border network optimisation: • Measures on country business line level Expected result contribution of • Focus on cost synergies through standardisation and 500 €m by end of 2026 optimisation of busine
Slide 34: Financial highlights
Financial highlights Adjusted EPS increases by 11% to 11.9 € 1 Free cash flow at 2.2 €bn Leverage slightly down from 1.24x to 1.18x ROIC at 9.9%, despite significant negative impact from currency and timing effects of acquisitions Two Green Bonds are placed during the year with a total amount of 1.2
Slide 35: Adjusted EPS continues to increase
Financial highlights Adjusted EPS continues to increase Income Statement [€m] FY 2023 FY 2024 Delta Key items below RCO Revenue 21,178 21,156 -21 Additional ordinary result: RCOBD (Operating EBITDA) 4,258 4,499 241 2024: -324 €m due to impairments Depreciation and amortisation -1,236 -1,295 -59 and
Slide 36: Solid free cashflow generation
Financial highlights Solid free cashflow generation Free cash flow [€m] FY 2023 FY 2024 Delta Free cash flow drivers Operating EBITDA 4,258 4,499 241 Working capital: Change in working capital -205 -110 95 Same level as prior year Net interest -163 -170 -7 Net interest: Taxes paid -522 -684 -161 Sta
Slide 37: Net debt development, in €m
Financial highlights Net debt development, in €m 5,294 375 5,293 350 114 546 783 Shareholder return: -2,169 1,010 €m Net debt Dec 2023 FCF Net growth CapEx Group Dividends Minority Dividends Share buyback Currency/other 1 Net debt Dec 2024 1 Includes mainly consolidation impacts on Net Debt from acq
Slide 38: Sustainability highlights
Sustainability highlights Further CO2 reduction: Specific CO2 emissions reduced by -1.3% to 527 kg CO2/t of cementitious material in 2024 Increasing share of Sustainable revenue (CEM): from 39.5% to 43.3% Pioneering the transformation to Net Zero: Providing the first net-zero carbon-captured cement
Slide 39: 2025 market overview
Business Outlook & Guidance 2025 market overview North America: Europe: • Infrastructure demand growth expected, driven by Infrastructure • Demand recovery -which is Investment and Jobs Act (IIJA) currently visible in most markets- and state Department of expected to continue throughout Transportati
Slide 40: Guidance
Business Outlook & Guidance Guidance Original 2024 Target & Achievement 2025 Target RCO 3.00 to 3.30 €bn 3.20 €bn 3.25 to 3.55 €bn ROIC Around 10% 9.9 % Around 10% Slight reduction: CO2 emission (2023: 534 kg/tCM)1) 527 kg/tCM1) Slight reduction CapEx Net Around 1.1 €bn 1.1 €bn Around 1.2 €bn In lin
Slide 41: Capital allocation policy
ZL Capital allocation policy
Slide 42: Dividends & Share buyback: A clear priority in capital allocation policy
Capital allocation policy Dividends & Share buyback: A clear priority in capital allocation policy Progressive dividend increase Share buyback program of €1.2 billion (2024 – 2026) will continue in the upcoming years 20% increase vs. previous program Dividend per share (€) Share buyback In €m Divide
Slide 43: Portfolio optimisation (since 2024)
Strategy Acquisitions Portfolio optimisation (since 2024) Disposals Canada UK UK France Germany Stake acquired in Acquisition of Mick Acquisition of B&A Disposal of Tratel Acquisition of Sandkorn Envicore (SCM, Tech) George2 (Recycling) Group (Recycling) Group2 (Transport) (Transport) US East German
Slide 44: Debt maturity profile, in €m
Capital allocation policy Debt maturity profile, in €m Debt maturity profile as of December 31, 2024 Debt Instruments Bonds Sust.-Linked Bond Green Bond 1,378 1,267 17 378 1,046 46 761 750 750 11 700 1,250 501 1,000 1,000 1 750 750 750 700 700 23 100 500 1 23 100 1 2025 2026 2027 2028 2029 2030 2031
Slide 45: Credit ratings
Capital allocation policy Credit ratings Rating agency Long-term rating Outlook Short-term rating Moody’s Baa2 Stable P-2 S&P Global BBB Stable A-2 Total bonds volume Equity ratio Average coupon 6.7 €bn 53.5% 2.5%1 Heidelberg Materials continues to target a solid investment grade rating. 1 The avera
Slide 46: Corporate Governance
5 Corporate Governance - Supervisory Board - Remuneration
Slide 47: Well-balanced profile of shareholder representatives
Supervisory Board Well-balanced profile of shareholder representatives Dr Bernd Scheifele - Chairman Luka Mucic Margret Suckale Ext. mandates1 as member of the Chief Financial Officer of Vodafone Ext. mandates1 as member of the Supervisory Board of Group Supervisory Board of • PHOENIX Pharma SE and
Slide 48: Diversified and highly qualified profile of skills
Supervisory Board Diversified and highly qualified profile of skills Scheifele Groebler Merckle Mucic Suckale Sury Gender M M M M W W Age 66 52 59 53 68 50 Committee membership 2 1 4 2 3 3 Skills & competencies Industry knowledge ✓ * ✓ - - - International Leadership ✓ * - ✓ ✓ ✓ Personnel competence
Slide 49: Topics of Supervisory Board meetings & committees
Supervisory Board Topics of Supervisory Board meetings & committees Supervisory Board meetings • Annual Financial Statements, including non-financial reporting • Further development and implementation of the sustainability and digitalisation strategy - including the role of recycling and alternative
Slide 50: New committee structure reflects importance of sustainability
Supervisory Board New committee structure reflects importance of sustainability Personnel Committee Audit Committee Sustainability & Nomination Committee Mediation Committee Innovation Committee Ludwig Merckle Luka Mucic Dr Sopna Sury Ludwig Merckle Margret Suckale (chairman) (chairman) (chairwoman)
Slide 51: Remuneration system
Remuneration system 25% 25% 25% 25% EBIT ROIC EBIT ROIC Performanc e Metrics 50% 25% 25% Relative TSR (vs. DAX and MSCI) ESG Relative TSR (vs. Peer Group) Payout 100% 50%: Cash- 50%: Share- Bundling of the 2 components into one plan: Plan type based on based (MC1) based (CMC1) 100% via Performance S
Slide 52: Remuneration system: Performance Share Units
Remuneration system 125% of base ¼ EBIT Share price % achieve- # awarded Final One- # final ¼ ROIC ment PSUs PSUs (120) share (e.g. 120%) (= 100) year price # awarded # final PSUs holding Pay-out PSUs ¼ ESG (= 120) period amount (e.g. 100) ¼ Relative TSR vs. Peer Group Determination of % achievement
Slide 53: High number of individual targets per Managing Board member
Remuneration system Group Performance Individual / Strategic Targets Group Group/Are Health & 1 Group Up to 5 CO2- Sustainabl CO2- Share of a Free Safety individual Share of individual Multiplier e Revenue Multiplier Profit Cash Flow Group target Profit goals (MBOs) 40% ±10% 20% ±10% 20% ±10% 20% ±1
Slide 54: Maximum remuneration
Remuneration system Maximum New maximum remuneration: ▪ Percentage of total remuneration remuneration ▪ Managing Board member: 6m € / 6.5m $ 1 Defined as a percentage of base salary 2 ▪ CEO: 30.000 shares ▪ CEO: 180% of base salary Share Ownership ▪ Managing Board member: 15.000 ▪ Managing Board mem
Slide 55: Upcoming events and contact
Upcoming events: • 08.05.2025: Q1 Trading Update • 15.05.2025: Annual General Meeting • 27./28.05.2025: CMD in Brevik, Norway • 31.07.2025: Half Year Results • 06.11.2025: Q3 Trading Update Contact: Investor Relations: ir-info@heidelbergmaterials.com +49 6221 481 13227 55 FY 2024 Investor presentat
Slide 56: 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
Slide 57: Heidelberg
Heidelberg Materials