Slide 1: HeidelbergCement 2018 Half Year Results
HeidelbergCement 2018 Half Year Results 31 July 2018 Dr. Bernd Scheifele, CEO and Dr. Lorenz Näger, CFO Górażdże Cement, Poland Slide 1 – 2018 Half Year Results – 31 July 2018
Slide 2: Contents
Contents Page 1. Overview and key figures 3 2. Results by Group areas 11 3. Financial report 18 4. Outlook 2018 25 5. Appendix 29 Slide 2 – 2018 Half Year Results – 31 July 2018
Slide 3: Market and financial overview Q2 2018
Market and financial overview Q2 2018 Solid results marking a clear trend change after difficult start of the year Robust volume growth in all business lines. Revenue +9%; Operating EBITDA +3%; Operating Income +5% increase in LfL basis. Group share of profit in Q2 up by +11%; Earnings per sha
Slide 4: Key operational and financial figures
Key operational and financial figures Operational performance: m€ Jun 17 Jun 18 Change % LfL % Q2 17 Q2 18 Change % LfL % Cement volume (‘000 t) 60,091 61,865 1,774 3.0 % 2.8 % 32,574 33,708 1,135 3.5 % 3.8 % Aggregate volume (‘000 t) 142,304 145,172 2,869 2.0 % 1.0 % 81,449 85,671 4,222 5.2 % 4.2 %
Slide 5: Q2 2018 Operating EBITDA Bridge (m€)
Q2 2018 Operating EBITDA Bridge (m€) +3.4% 76 -136 964 -54 11 936 91 925 -16 894 Q2 2017 Currency Decons. Q2 2017 Price Net volume Costs & Q2 2018 Scope Q2 2018 Reported LfL EBITDA others LfL EBITDA Reported EBITDA EBITDA Solid organic growth achieved in Q2 after a difficult start of the year Slide
Slide 6: Strong organic EBITDA growth in Q2 2018
Strong organic EBITDA growth in Q2 2018 LfL Operating EBITDA growth vs. same period prior year North America Western & Southern Europe Northern & Eastern Europe 4% 2% 10% 6% -12% -12% -74% -89% -25% Q1 2018 Q2 2018 H1 2018 Q1 2018 Q2 2018 H1 2018 Q1 2018 Q2 2018 H1 2018 Asia Pacific Africa – Med. Ba
Slide 7: Worst is left behind in UK and Indonesia
Worst is left behind in UK and Indonesia Pressure in two key markets partly compensated by solid performance in the regions Asia Pacific EBITDA development * West & South Europe EBITDA development * Indonesia Rest of AsPac UK Rest of WSE 190 234 173 212 216 205 152 63 32 41 92 139 57 +36 69 40 18 (+
Slide 8: Energy cost per ton of cement produced
Energy cost per ton of cement produced Despite significant increase in fuel prices.... We manage to keep costs under control 18% Petcoke Oil (Brent) Newcastle Coal 120 +30% vs. H1 17 +35% vs. H1 17 +28% vs. H1 17 14% Fuel cost 11% 115 per ton 110 cement 105 100 Q1 2018 Q2 2018 H1 2018 95 90 2% 1% 85
Slide 9: Group Sales Volumes
Group Sales Volumes Q2 2017 Q2 2018 North America Western & Southern Europe Asia - Pacific +8% +4% +6% +6% 34,4 (LfL: +2%) 21,3 22,2 10,7 11,3 31,9 (LfL: +2%) +7% 8,0 8,4 +2% +3% -1% +9% 8,0 8,6 4,7 4,8 2,6 2,7 4,5 4,4 1,7 1,9 CEM (mt) AGG (mt) RMC (mm3) CEM (mt) AGG (mt) RMC (mm3) CEM (mt) AGG (mt)
Slide 10: Contents
Contents Page 1. Overview and key figures 3 2. Results by Group areas 11 3. Financial report 18 4. Outlook 2018 25 5. Appendix 29 Slide 10 – 2018 Half Year Results – 31 July 2018
Slide 11: North America
North America Favorable Q2 results mitigate some of the weather-related shortfalls from the Q1. Stronger demand in Q2 and multiple acquisitions drove higher volume in core markets; rising oil price impacting margins in RMC & AGG. Operational results impacted by Q1 disposal of Lehigh White Cement Com
Slide 12: Western and Southern Europe
Western and Southern Europe Solid operational performance across the region in the second quarter Despite flat market caused by the Brexit uncertainty, our volumes were positive in Q2. We are involved in key infrastructure projects. UK The result was negatively impacted by a continued increase of en
Slide 13: Northern and Eastern Europe - Central Asia
Northern and Eastern Europe - Central Asia Good quarter despite energy inflation headwinds Sweden: Domestic cement volumes and exports are clearly up. Weaker Stockholm RMC volumes overcompensated by other Nordics regions. Norway: Higher domestic volumes outweighed by lower exports. Pricing is up. Hi
Slide 14: Asia Pacific
Asia Pacific Indonesia is still weighing on the result while Thailand is on track for recovery Solid volume growth in April & May but June impacted by 6 less working days. Pricing stabilized and first price increases implemented. Indonesia Logistic and production costs suffer from energy cost inflat
Slide 15: Africa - Eastern Mediterranean Basin
Africa - Eastern Mediterranean Basin Strong net pricing development drives the result. Pricing still significantly up despite new capacities (12 mt) being opened by the Egyptian Army by end of April. Strong energy cost inflation Egypt in H2 expected as state subsidies will cease to be granted. Moroc
Slide 16: Group Services
Group Services Highest ever H1 volume and profitability in international sales • Projected demand recovery in many markets is materializing. • China clinker imports, growing domestic demand and increasing cost inflation have driven up FOB clinker export prices by four to eight USD per ton versus 201
Slide 17: Contents
Contents Page 1. Overview and key figures 3 2. Results by Group areas 11 3. Financial report 18 4. Outlook 2018 25 5. Appendix 29 Slide 17 – 2018 Half Year Results – 31 July 2018
Slide 18: Key financial messages
Key financial messages Group share of profit rises by 40 m€ to 398 m€ in Q2 2018 Group share of profit in Q2 up by 11%; Earnings per share rise in Q2 2018 from 1.80 € to 2.01 €. Additional ordinary result in Q2 2018 up by 30 m€ vs. prior year. Financial result in Q2 2018 improved by 20% (20 m€
Slide 19: Income Statement as of June 2018
Income Statement as of June 2018 m€ Jun 17 Jun 18 Change Q2 17 Q2 18 Change Revenue 8,394 8,432 0% 4,611 4,806 4% Result from joint ventures 79 88 12% 48 61 26% Result from current operations before 1,347 1,188 -12% 964 936 -3% depreciation and amortization (RCOBD) Depreciation and amortization -556
Slide 20: Cash Flow Statement as of June 2018
Cash Flow Statement as of June 2018 m€ Jun 17 Jun 18 Change Q2 17 Q2 18 Change Cash flow 771 782 11 603 727 124 Changes in working capital -728 -854 -126 -153 -165 -12 Decrease in provisions through cash payments -171 -155 16 -97 -98 -2 Cash flow from operating activities – disc. operations -3 0 3 0
Slide 21: Further increase in Free Cash Flow in Q2 2018
Further increase in Free Cash Flow in Q2 2018 Usage of free cash flow (m€) L12M June 2016 1) L12M June 2017 L12M June 2018 1,169 890 22 1,282 277 556 224 112 390 318 204 526 240 377 139 FCF 2) Borrowing Growth CapEx Debt Payback Dividends HCAG Dividend to minorities -170 22 86 10,140 70 9,970 240 4,
Slide 22: Group balance sheet
Group balance sheet June 18 / June 17 m€ June 17 Dec 17 (*) June 18 Variance (m€) Variance (%) Assets Intangible assets 11,812 11,471 11,764 -48 0% Property, plant and equipment 13,286 12,814 12,883 -404 -3 % Financial assets 2,263 2,181 2,169 -94 -4 % Fixed assets 27,361 26,466 26,815 -546 -2 % Def
Slide 23: H1 2018 is a strong first step on our way to reach Vision 2020
H1 2018 is a strong first step on our way to reach vision 2020 Vision 2020 Active portfolio Reduced Financial cost Improvement in management maintenance CapEx reduction taxes Maintenance €bn 1 to 1.5 €m 200 savings CapEx limited Cash tax rate at disposal until the until the end of with 55% ~22% leve
Slide 24: Contents
Contents Page 1. Overview Q1 2018 3 2. Results by Group areas 11 3. Financial Results 18 4. Outlook 2018 25 5. Appendix 29 Slide 24 – 2018 Half Year Results – 31 July 2018
Slide 25: Targets 2018
Targets 2018 Metric 2018 Target Increase in all business Volumes lines Mid to high single digit Operating EBITDA organic growth Net CapEx €bn 1.1 Maintenance €m 700 Expansion €m 400 Energy cost per tonne of cement produced Mid single digit Leverage Below 2.5X Slide 25 – 2018 Half Year Results – 31 J
Slide 26: Sustainability News
Sustainability News Certified sustainable concrete HC joined Nature Capital Coalition 26 plants in Germany certified by Global multi-stakeholder association of Concrete Sustainability Council (CSC). almost 250 organizations/companies. All cement plants in Germany received Intensive knowledge
Slide 27: Sustainability report 2017 available online
Sustainability report 2017 available online 9th sustainability report of HeidelbergCement According to GRI Standards of the Global Reporting Initiative (GRI) Slide 27 – 2018 Half Year Results – 31 July 2018
Slide 28: Contents
Contents Page 1. Overview Q1 2018 3 2. Results by Group areas 11 3. Financial Results 18 4. Outlook 2018 25 5. Appendix 29 Slide 28 – 2018 Half Year Results – 31 July 2018
Slide 29: Volume and price development (June YTD 2018 vs. 2017)
Volume and price development (June YTD 2018 vs. 2017) Domestic gray cement Aggregates Ready Mix ++ = >2% Volume Price Volume Price Volume Price USA -- + + ++ ++ + + = 0 to +2% Canada ++ ++ ++ + ++ + +/- = stable Benelux - ++ -- + -- ++ France ++ + + ++ ++ ++ - = -2% to 0 Germany + ++ + + -- ++ -- =
Slide 30: Currency & Scope Impacts
Currency & Scope Impacts Cement Volume June Year to Date Q2 Revenues June Year to Date Q2 Cons. Decons. Curr. Cons. Decons. Curr. Cons. Decons. Curr. Cons. Decons. Curr. North America 40 -162 31 -162 0 North America 65 -41 -199 43 -38 -93 West & South Europe 935 -63 476 -63 0 West & South Europe 56
Slide 31: Contact information and event calendar
Contact information and event calendar Date Event Contact Information 08 November 2018 2018 Third Quarter Results Investor Relations Mr. Ozan Kacar Head of Investor Relations Phone: +49 (0) 6221 481 13925 Mr. Piotr Jelitto Phone: +49 (0) 6221 481 39568 ir-info@heidelbergcement.com Corporate Communic
Slide 32: Disclaimer
Disclaimer Unless otherwise indicated, the financial information provided herein has been prepared under International Financial Reporting Standards (IFRS). This presentation contains forward-looking statements and information. Forward-looking statements and information are statements that are not h