Cementir Holding N.v. · MIL:CEM
Cementir — Euronext STAR Conference 2024
34 slides from Cementir's conference presentation, Mar 21, 2024
Slide 1: Euronext STAR Conference 2024 Investor Presentation
Euronext STAR Conference 2024 Investor Presentation STAR Conference 2024 | Milan, 21 March 2024
Slide 2: Agenda
Agenda Group Highlights 3 ESG strategy 10 2023 Full year results and 2024 Guidance 19 Appendix 28 2
Slide 3: Group Highlights
Group Highlights Navitas Science and Innovation Building, Denmark 3
Slide 4: Group Highlights
Group Highlights REVENUE EBITDA EMPLOYEES CEMENT CAPACITY 1.69 Bn€ 411 M€ 3,045 13.1 M tons -1.7% vs. 2022 +22.6% vs. 2022 Annually TRAINING PER LTI FREQUENCY CO2 EMISSIONS** CO2 EMISSIONS** CAPITA RATE* Grey cement White cement 26 hours 2.9 +18% vs. 2022 vs. 4.2 in 2022 655 kg /ton 846 kg /ton vs.
Slide 5: Industrial footprint
Industrial footprint PLANTS Cement plants: 11 Terminals: 65 RMC plants: 101 Quarries: 34 Precast products plants: 1 Waste management facilities: 1 CAPACITY / SALES Grey cement capacity: 9.8 mt Aalborg, DK White cement capacity: 3.3 mt Grey cement sales: 8.0 mt White cement sales: 2.7 mt Gaurain, BE
Slide 6: Business segments
Business segments GREY CEMENT WHITE CEMENT READY-MIXED CONCRETE AGGREGATES CONCRETE PRODUCTS / WASTE VOLUMES SOLD VOLUMES SOLD VOLUMES SOLD VOLUMES SOLD WASTE PROCESSED * (mt) (mt) (mm3) (mt) (mt) 11.1 10.5 8.2 8.0 8.0 3.0 9.4 2.8 2.7 5.1 4.8 0.22 4.3 0.16 0.06 2021 2022 2023 2021 2022 2023 2021 202
Slide 7: Our Strategy is based on five pillars
Our Strategy is based on five pillars We pursue a sustainable growth strategy aimed at creating value for all stakeholders ▪ Push towards product and value chain circularity 2023 EBITDA BREAKDOWN (*) 1 SUSTAINABILITY ▪ Carbon capture and storage in Denmark by 2030 ▪ Focus on low carbon cements like
Slide 8: Industrial Plan update: key 2026 targets
Industrial Plan update: key 2026 targets (*) 2023 A 2026 €M ▪ ~5-6% Sales CAGR in the 2023-26 period ▪ Moderate increase in volumes, with stronger volume growth in 2024, except Revenues 1,695 ~ 2,000 for China: CAGR of 4-5% for cement; 5-6% for RMC, 4-5% for aggregates ▪ Prices broadly stable / mode
Slide 9: White Cement: unique competitive position
White Cement: unique competitive position Local presence & #1 in USA, Continental Europe, China, Australia, South-East Asia global leadership Total market of 20 Mt (0.5% of grey cement demand) Global leadership in white cement 3.3 Mt 2.7 Mt White cement and clinker volumes sold in 2023 Cement Capaci
Slide 10: ESG Strategy
ESG Strategy Green Belt Bridge, Denmark 10
Slide 11: Our path to reach net zero emissions by 2050
Our path to reach net zero emissions by 2050 2050 AMBITION 2050 ▪ Net-zero greenhouse emissions across the value chain validated by SBTi NET ZERO ▪ 96.1% reduction in scope 1 and scope 2 per ton of cementitious material (2021 baseline) ▪ 90% reduction in scope 3 (2021 baseline) ▪ FUTURECEM® widespre
Slide 12: Rating improvement reflects our continued ESG commitment
Rating improvement reflects our continued ESG commitment Science Based Target initiative (SBTi) validated Cementir near and long-term decarbonization targets aligned with the 1.5°C scenario in February 2024. SBTi also approved overall net-zero emissions target by 2050 Rating Ranking Scale 2023 2022
Slide 13: Scope 1, 2 and 3 CO2 emissions footprint
Scope 1, 2 and 3 CO2 emissions footprint (*) INDIRECT EMISSIONS INDIRECT EMISSIONS DIRECT EMISSIONS TOTAL CO2 EMISSIONS (ELECTRICITY) (VALUE CHAIN) Scope 1 Scope 2 Scope 3 Scope 3 CEMENT and OTHER Scope 1 25% CEMENT 70% Sources: Sources: Sources: Scope 1 and 2 ▪ Process and fuel ▪ Purchased electric
Slide 14: Decarbonisation drive across the value chain
Decarbonisation drive across the value chain RAW MATERIALS ENERGY PRODUCTION LOGISTICS ▪ Calcined clay ▪ Switch to natural gas and ▪ Plants upgrade ▪ Predictive maintenance biomass in Aalborg ▪ GBFS, fly ash and ▪ Clinker ratio reduction ▪ Green Transportation limestone ▪ Alternative fuels increase
Slide 15: Scope 1 emissions: new 2030 decarbonization targets
Scope 1 emissions: new 2030 decarbonization targets (*) Kg Gross CO2 /TCE NEW ROADMAP WHITE CEMENT 2026 Target OLD ROADMAP White cement target (Kg CO2/TCE) 2030 Target -19% to 737 Kg from 915 Kg 2026 Target 737 NEW ROADMAP OLD ROADMAP GREY CEMENT 2030 Grey cement target Target (Kg CO2/TCE) TAXONOMY
Slide 16: FUTURECEM is a key pillar of our sustainability strategy
FUTURECEM® is a key pillar of our sustainability strategy ▪ Innovative limestone and calcined clay technology which ▪ 2021: Launch in Denmark with sales targets achieved enables over 30% CO2 reduction compared to ordinary Portland ▪ 2022: Launch in France and Benelux. Progressive roll-out in all thr
Slide 17: Capex: main initiatives for CO2 emissions reduction
Capex: main initiatives for CO2 emissions reduction RENEWABLES IN DENMARK AND BELGIUM CARBON CAPTURE AND STORAGE (CCS) ▪ Power Purchase Agreement (PPA): ▪ CORT project*: Long-term contracts with renewable ▪ Pilot carbon capture plant with the potential to be scaled up to energy generators for direct
Slide 18: 2024-26 Capex highlights
2024-26 Capex highlights ▪ ~ 100 M€ of sustainability* investments, focused on INDUSTRIAL PLAN CAPEX BREAKDOWN operational efficiencies via plant upgrades and EUR million product innovation ▪ Main initiatives: − Kiln 4 upgrade in Gaurain, Belgium − Switch to natural gas in Aalborg and Gaurain plants
Slide 19: 2023 Full year results and 2024 Guidance
2023 Full year results and 2024 Guidance 19
Slide 20: 2023 Full year results highlights
2023 Full year results highlights FINANCIAL HIGHLIGHTS Revenues reached 1,694.2 M€ (-1.7% yoy); non-GAAP* Revenues reached 1,694.6 M€ (-1.5% yoy) − Cement volumes down by 1.6% due to Denmark, Belgium, US, Egypt and Malaysia, partially offset by growth in Türkiye and China − RMC volumes down by 11.1%
Slide 21: Nordic & Baltic
Nordic & Baltic ASSET OVERVIEW SHARE OF GROUP EBITDA DENMARK − Cement volumes declined as domestic market was affected by slowing demand due to higher interest rates, partially compensated by infrastructure (32) − RMC volumes were down 20% , also aggregates declined with a (27) recovery in Q4 43% −
Slide 22: Belgium and France
Belgium and France (*) ASSET OVERVIEW SHARE OF GROUP EBITDA BELGIUM AND FRANCE − Cement volumes declined by 8% mostly due to a generalized demand slowdown − RMC volumes were down 10% both in Belgium and France − Aggregates volumes were down 13% both on domestic and export markets also due to a parti
Slide 23: Türkiye
Türkiye ASSET OVERVIEW SHARE OF GROUP EBITDA TÜRKIYE − From April 2022 Türkiye is considered “hyperinflationary”. Reported figures are non-GAAP i.e. exclude the application of IAS 18% 29 and revaluation of non-industrial property. − Revenue increased by 21% , with domestic cement volumes +16% thanks
Slide 24: North America
North America ASSET OVERVIEW SHARE OF GROUP EBITDA UNITED STATES − White cement volume declined by 14%, in line with the residential market. Deliveries to Texas and Florida suffered from 6% a stronger contraction due to competitive pressures from imports and lower demand. More moderate decline in Yo
Slide 25: Asia Pacific
Asia Pacific ASSET OVERVIEW SHARE OF GROUP EBITDA CHINA − Volumes increased by 18% despite Q1 sales were negatively affected by lockdowns; competition put downward pressure 6% on pricing − EBITDA includes a net non-recurring income of 1 M€ mainly because of gains from asset disposals − 8.2% CNY depr
Slide 26: Egypt
Egypt ASSET OVERVIEW SHARE OF GROUP EBITDA EGYPT − Revenue declined by 12% because of the strong devaluation of Egyptian pound vs Euro. Revenue in local currencies were up 44.6% 3% − White cement volumes were stable both on domestic deliveries and exports − EBITDA increased thanks to careful managem
Slide 27: 2024 Guidance
2024 Guidance FINANCIAL HIGHLIGHTS • Revenues ~ 1.8 BN€ • EBITDA ~ 385 M€ • Net cash ~ 300 M€ • Capex ~ 135 M€ Guidance refers to like-for-like ongoing operations, non-GAAP, excluding extraordinary items The above guidance excludes the negative repercussions of geopolitical shocks or other extraordi
Slide 28: Appendix
Appendix f Concretely Dynamic Cc cementirholding
Slide 29: Appendix - Consolidated Income Statement – FY 2023
Appendix - Consolidated Income Statement – FY 2023 2023 2022 (Non- (EUR million) 2023 2022 Chg % Chg % (Non-GAAP)* GAAP)* REVENUE FROM SALES AND SERVICES 1,694.2 1,723.1 (1.7%) 1,694.6 1,720.9 (1.5%) Change in inventories 11.7 18.7 (37.7%) 17.1 23.2 (26.6%) Increase for internal work and other incom
Slide 30: Increasing shareholders return
Increasing shareholders return ▪ +27% Dividend per Share increase vs. 2022 (21.6% payout ratio) ▪ The 2024-2026 Industrial Plan assumes the distribution of an increasing dividend with a payout ratio between 20% and 25% DIVIDEND PER SHARE EARNINGS PER SHARE PAYOUT RATIO 20-25% range +27% +24% 25% 20%
Slide 31: 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 32: Key differences between white and grey cement
Key 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 m
Slide 33: 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 (*) Source: Turkish Cement Man
Slide 34: 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