Heidelberg Materials Ag · XETR:HEI
Heidelberg Materials — Q1 2022 Earnings Presentation
17 slides from Heidelberg Materials's earnings presentation, May 11, 2022
Slide 1: Q1 2022 Trading Update
Q1 2022 Trading Update 11 May 2022 Dr. Dominik von Achten – Group CEO René Aldach – Group CFO
Slide 2: Key Messages
Key Messages ▪ Strong revenue growth (+13% LfL) driven by very strong pricing. ▪ Operational EBITDA below prior year due to an exceptionally strong comparison base and continuing cost pressure. ▪ Commercial excellence program significantly ahead of initial expectation, target upgraded from “>350 m€”
Slide 3: Positive pricing drives revenue growth. Exceptionally strong comparison base.
OPERATIONAL PERFORMANCE Positive pricing drives revenue growth. Exceptionally strong comparison base. Revenue (m€) Operating EBITDA (m€) Operating EBITDA Margin Operating EBIT (RCO) (m€) +12.6% -2.8% +54.6% LfL: +17.7% LfL: +3.5% LfL: +88.6% +11.8% -26.9% -141 bps -59.3% LfL: +13.0% LfL: -25.4% LfL:
Slide 4: Overview
OPERATIONAL PERFORMANCE Overview Volumes Q1 20 Q1 21 Q1 22 Change LfL Strong top line growth driven by solid pricing in all regions Cement sales volume (mt) 27.7 28.4 28.4 0.0 2.1% North America Aggregates sales volume (mt) 60.1 61.3 61.9 0.6 5.3% ▪ Robust price development drives revenue growth. Vo
Slide 5: Q1 2021 Operating EBITDA Bridge
OPERATIONAL PERFORMANCE Q1 2021 Operating EBITDA Bridge (m€) -25.4% 20 -161 538 14 553 412 -19 394 Q1 2021 EBITDA Currency Q1 2021 Net volume Price over cost Q1 2022 Scope Q1 2022 EBITDA LfL EBITDA LfL EBITDA 5 Q1 2022 Trading Update | 11 May 2022
Slide 6: Operating EBITDA Margin Development
OPERATIONAL PERFORMANCE Operating EBITDA Margin Development North America Western & Southern Europe North & Eastern Europe – Central Asia -472 bps -6 bps -214 bps -849 bps -422 bps -312 bps 9.4% 9.8% 10.8% 11.8% 5.6% 5.6% 5.6% 8.7% 0.9% Q1 2020 Q1 2021 Q1 2022 Q1 2020 Q1 2021 Q1 2022 Q1 2020 Q1 2021
Slide 7: Very strong start to Business Excellence Program
OPERATIONAL PERFORMANCE Very strong start to Business Excellence Program Commercial Excellence Operational Excellence Domestic cement price increase vs. PY same period 13.5% Higher Increase kiln alternative fuel 8.8% efficiency rate 4.2% 0.2% Improved Most efficient maintenance use of asset base H1
Slide 8: New energy forward buying policy with longer hedge horizon
OPERATIONAL PERFORMANCE New energy forward buying policy with longer hedge horizon Current Policy New Policy Max Limit Min Limit Max Limit Min Limit Start hedging from outer years Current “Maximum limit” will be the new “Minimum limit” for Y+1. Current year +1 Current year +2 Current year +3 Current
Slide 9: We continue to optimize our asset base
STRATEGY We continue to optimize our asset base Spain US North East UK Czechia Disposal of AGG, RMC, Acquisition of Brant CEM business in 5 clusters Acquisition of A1 Italy Acquisition of RMC plants Concrete (RMC) Services (recycling) and AGG assets Acquisition of >10 RMC plants in Northern Italy US
Slide 10: Clear focus on pricing and cost efficiency to drive further growth
OUTLOOK & KEY TAKEAWAYS Clear focus on pricing and cost efficiency to drive further growth Business outlook 2022 Guidance 2022 Demand increase in all business lines Strong increase in revenue, slight driven by infrastructure projects and increase in operating EBITDA and RCO ongoing residential growt
Slide 11: Capital Markets Day
SUSTAINABILITY We make the material to build our future by taking the Sustainability lead in the sector We are fully committed to Sustainability by... ➢ … driving the transition to sustainable construction. ➢ … being on the right track to lead the sector in carbon emissions reduction. ➢ … pioneering
Slide 12: Key Messages
Key Messages ▪ Strong revenue growth (+13% LfL) driven by very strong pricing. ▪ Operational EBITDA below prior year due to an exceptionally strong comparison base and continuing cost pressure. ▪ Commercial excellence program significantly ahead of initial expectation, target upgraded from “>350 m€”
Slide 13: Appendix
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Slide 14: Sales volumes & Operational Result
APPENDIX Sales volumes & Operational Result Sales Volumes Cement (‘000 t) Aggregates (‘000 t) Ready Mix (‘000 m3) Asphalt (‘000 t) QUARTER Q1 21 Q1 22 Change LfL Q1 21 Q1 22 Change LfL Q1 21 Q1 22 Change LfL Q1 21 Q1 22 Change LfL North America 3,089 2,549 -540 -2.4% 23,132 22,371 -761 5.8% 1,685 1,
Slide 15: Scope and currency impacts
APPENDIX Scope and currency impacts Scope & Currency Scope Impact on Volumes Revenue Operating EBITDA Operating EBIT (RCO) QUARTER CEM AGG RMC ASP Scope Currency Scope Currency Scope Currency North America -466 -2,107 -338 -483 -158 63 -17 6 -11 0 West / South Europe 0 -55 -13 0 -2 15 0 1 0 1 North
Slide 16: Contact information and financial calendar
FINANCIAL CALENDAR Contact information and financial calendar Date Events Contact Information 24 May 2022 Capital Markets Day Christoph Beumelburg Director Group Communication & Investor Relations 28 July 2022 Half Year Results Phone: +49 (0) 6221 481 13249 03 November 2022 Q3 Trading Update christo
Slide 17: Disclaimer
Disclaimer Unless otherwise indicated, the financial information provided herein has been prepared in particular, additional uncertainties arising out of the subprime, financial market and under International Financial Reporting Standards (IFRS). liquidity crises; the outcome of pending investigatio