Cementir Holding N.v. · MIL:CEM
Cementir — Italian Excellences Conference – Intesa Sanpaolo 2022
34 slides from Cementir's conference presentation, Oct 12, 2022
Slide 1: Italian Excellences Conference – Intesa Sanpaolo Investor presentation
Italian Excellences Conference – Intesa Sanpaolo Investor presentation Italian Excellences Conference – Intesa Sanpaolo | 12 October 2022
Slide 2: Agenda
Agenda Group Highlights 3 White cement global leadership 8 ESG commitment and 2022-2024 Industrial Plan 14 2022 First half results and Guidance 27 Appendix 30 2
Slide 3: Group Highlights
Group Highlights Youth Olympic Games Center, Nanjing (China) 3
Slide 4: Cementir at a glance
Cementir at a glance € 1.4 BN 3,083 15.6% ROCE Annual Sales Employees BBB- 13.1 M tons 20% share* Rated by S&P White Cement Stable Outlook globally Cement Capacity Data as of December 31st, 2021 * Excluding «off-white» and lower quality Asian products 4
Slide 5: Business segments
Business segments CONCRETE PRODUCTS / GREY CEMENT WHITE CEMENT READY-MIXED CONCRETE AGGREGATES WASTE 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% EBITDA margin = 35
Slide 6: Industrial footprint
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 Aalborg, DK White cement capacity: 3.3 mt Grey cement sales: 8.2 mt White cement sales: 3.0 mt Gaurain, BE
Slide 7: Strategy based on four pillars
Strategy based on four pillars 97 M€ of Green Investments by 2021 EBITDA breakdown (*) Sustainability 2024 (7% of annual sales) Holding and Asia Pacific Focus on high-value added solutions services Innovation Egypt 9% like FUTURECEM® leveraging on 1% InWhite Solutions® platform 4% Turkey 7% Decarbo
Slide 8: White cement global leadership
White cement global leadership Deichman Main Library, Norway 8
Slide 9: White Cement: unique competitive position
White Cement: unique competitive position 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 flows 25% Share of Global In
Slide 10: White cement consumption by macro-area
White cement consumption by macro-area Global white cement demand stands at around 19m tons in 2020 ✓ 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 per capita consumption grow
Slide 11: Largest white cement manufacturers' capacity (Mt)
Largest white cement manufacturers’ capacity (Mt) 1.24x 3.30 2.05x 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 capacity= 29 Mt) ~11% ~9% ~6% ~4% ~3% ~2% Source: Cementir estimates, CW Research 11
Slide 12: Unlimited White Cement applications
Unlimited White Cement applications 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 façade application, 5.UHPC (U
Slide 13: Cementir key innovations
Cementir key innovations Ultra-high Glass Fiber 3D Concrete FUTURECEM® 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 products performance mortar per
Slide 14: ESG Commitment and 2022-2024 Industrial Plan
ESG Commitment and 2022-2024 Industrial Plan CCB’s Gaurain plant, Belgium 14
Slide 15: Our Sustainability journey since 2019
Our Sustainability journey since 2019 2019 2020 2021 2022 ▪ New organization and ▪ Integration of Sustainability ▪ Launch of FUTURECEM® on ▪ All cement plants ISO Sustainability Governance into Corporate Strategy the market 45001-certified with Group Sustainability with 2030 Roadmap on CO2 ▪ Cementi
Slide 16: Rating improvement reflects ESG commitment
Rating improvement reflects ESG commitment Rating Ranking Scale 2019 2020 2021 (Worst-> Best) D- to A F B A- F: no filing Climate Change D- to A F F B F: no filing Water Security CCC to AAA BBB BBB BBB 0 to 100 32 63 0 to 100 38 45 45 0 to 100 57 73 76 0 to 100 45 61 54 16
Slide 17: Scope 1, 2 and 3 CO2 emissions footprint today
Scope 1, 2 and 3 CO2 emissions footprint today (*) Indirect emissions Indirect emissions Direct emissions Total CO2 emissions (electricity) (value chain) Scope 1 Scope 2 Scope 3 Sources: Sources: Sources: 11.7 ▪ Process and fuel ▪ Purchased electricity, ▪ Upstream and Million tons emissions from cl
Slide 18: Scope 1 emissions 2030 Decarbonization targets
Scope 1 emissions 2030 Decarbonization targets SCOPE 1 EMISSIONS (kg CO2/t cement) - Grey cement LEVERS -31% ▪ FUTURECEM® and other low carbon products ▪ Raw materials: use of calcined clay, GBFS, fly ash and limestone <500 2030 TARGET ▪ Circularity: materials and process waste recycling 1990 2021 2
Slide 19: Scope 1 emission reduction waterfall
Scope 1 emission reduction waterfall 2030 Roadmap earmarks three main levers to reduce Scope 1 emissions: ▪ FUTURECEM® and other low carbon products ▪ Increase of alternative and/or less carbon intensive fuels ▪ Thermal energy efficiencies Grey cement White cement <800 <500 19
Slide 20: Low carbon and sustainable product pipeline
Low carbon and sustainable product pipeline LOW CARBON CEMENT SUSTAINABLE READY-MIX RECYCLED AGGREGATES CONCRETE ▪ Limestone calcined clay technology ▪ More sustainable RMC products by ▪ Use of recycled concrete for leveraging on recycled aggregates and aggregates reducing the use of low carbon ceme
Slide 21: FUTURECEM is a key pillar of our sustainability strategy
FUTURECEM® is a key pillar of our sustainability strategy ▪ Proprietary limestone calcined clay technology which enables over ▪ 2021: Launch in Denmark with sales targets achieved. 30% CO2 reduction compared to ordinary Portland through clinker ▪ 2022: Launch in France and Benelux. Progressive roll-
Slide 22: New breakthrough technologies: Carbon, capture, usage and storage
New breakthrough technologies: Carbon, capture, usage and storage Through Aalborg Portland, Cementir participates in several CCUS projects CORT – Carbon capture Open tests and review of Technologies Concept study of carbon capture and Techno-economic viability of green Demonstration of solvents and
Slide 23: Cementir is part of two consortia of the Innovandi Open Challenge
Cementir is part of two consortia of the Innovandi Open Challenge Global program to bring together tech start-ups and GCCA member companies to drive innovation and help solve the climate challenge Six consortia between start-ups and cement companies to accelerate ground-breaking technologies for ach
Slide 24: 2024 Financial targets
2024 Financial targets (*) 2021 A 2024 EUR million ➢ ~7% Sales CAGR in the 2021-24 period 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 expected to increase ahead of EB
Slide 25: 2022-24 Capex highlights
2022-24 Capex highlights ▪ 97 M€ of «green» investments,focused on Industrial Plan Capex operational efficiency through plant upgrades, Green Capex = Sustainability + Digitalization digitalisation of industrial processes and product innovation ▪ 2021 sustainability capex lower than planned due to on
Slide 26: 2022-24 industrial plan: strong cash generation objectives
2022-24 industrial plan: strong cash generation objectives ~ 340M€ cumulative Free Cash Flow in 2022-24 ~ 312M€ cumulative Capex of which Green Capex is 97M€ Euro Millions > 26
Slide 27: 2022 First Half results
2022 First Half results Aalborg plant, Denmark 27
Slide 28: 2022 First Half results highlights
2022 First Half results highlights • From June 2022 Turkey is considered as “hyperinflationary” and IAS 29 has been applied as at 30 June 2022. • Revenues reached 811 M€ (+22% yoy); Revenues excluding IAS 29 reached 805 M€ (+ 21,2% yoy), driven by price increases − Cement volumes down by 0.8% due to
Slide 29: 2022 Full Year Guidance
2022 Full Year Guidance • Revenues > 1.5 BN€ • EBITDA ~ 305 - 315M€ • Net cash ~ 60 M€ • Capex ~ 95 M€ Guidance refers to like-for-like ongoing operations These expectations do not take into account any intensification of the current crisis in Ukraine or new situations of resurgence of the Covid-19
Slide 30: Appendix
Appendix cementirhold! ng 39 f Concretely Dynamic CALTAGIRONE GROU>
Slide 31: Hyperinflation in Turkey – Application of IAS 29
Hyperinflation in Turkey – Application of IAS 29 30 June 2022 (EUR million) 30 June 2022 IAS 29 effect From June 2022, Turkey is considered hyperinflationary without IAS 29 based on the criteria of IAS 29 – Financial reporting in Total assets 2,437.2 196.1 2,241.1 hyperinflationary economies Total l
Slide 32: 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 33: 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 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
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