Sigmaroc Plc · LSE:SRC
Sigmaroc — H1 2024 Earnings Presentation
38 slides from Sigmaroc's earnings presentation, Sep 9, 2024
Slide 1: SigmaRoc 2024 Interim Results
SigmaRoc 2024 Interim Results SigmaRoc 2024 Interim Results 9 September 2024 Photo: Movab AB
Slide 2: Agenda
Overview SigmaRoc 2024 Interim Results Agenda 01 Highlights Max Vermorken 02 Group post CRH lime acquisitions Max Vermorken 03 Financials Garth Palmer / Jan Van Beek Strategic delivery 04 Max Vermorken Summary & outlook 05 Max Vermorken 2
Slide 3: Highlights
SigmaRoc 2024 Interim Results Highlights 3
Slide 4: 1H24 strategic highlights
Highlights SigmaRoc 2024 Interim Results 1H24 strategic highlights § Market leading European lime and minerals business created § 2.7 billion tonnes of high purity mineral reserves § German, Czech and Irish acquisitions completed and integrated § UK acquisition completed in March with integration ah
Slide 5: 1H24 financial highlights proforma
Highlights SigmaRoc 2024 Interim Results 1H24 financial highlights PROFORMA1 REVENUE EBITDA EBITDA MARGIN EPS EPS £469m £100m 21.3% 3.2p 4.3p -8% PF -3% PF +240bps -20% +6% VOLUMES ROIC FCF CONVERSION LEVERAGE LEVERAGE 11.5mt 6.2% 43% 2.6x 2.3x -4% LFL +100bps +£44m Strong performance underpins conf
Slide 6: Industry segment
Highlights SigmaRoc 2024 Interim Results Industry segment DIVERSIFICATION PROVIDING STABILITY 1H24 REVENUE SPLIT BY SEGMENTS Steel Residential § Restocking at start of period after maintenance shutdowns Industry § End period softness relating to auto 42% Paper P&P Infra. § Better start but some disr
Slide 7: Environment segment
Highlights SigmaRoc 2024 Interim Results Environment segment SLIGHT SOFTNESS DRIVEN BY MULTIPLE TRENDS 1H24 REVENUE SPLIT BY SEGMENTS Environment Residential Industry § Strong performance from agriculture and food § Some weakness in coal power generation due to strong winds driving increased wind en
Slide 8: Construction segment
Highlights SigmaRoc 2024 Interim Results Construction segment STRONGER INFRASTRUCTURE COMPENSATING SOFT RESIDENTIAL 1H24 REVENUE SPLIT BY SEGMENTS Residential - c. 35% of construction Residential Industry § Challenges persist in residential market 14% § Potential recovery with interest rate cuts § L
Slide 9: Consistent performance across regions
Highlights SigmaRoc 2024 Interim Results Consistent performance across regions NORTH-WEST WEST CENTRAL NORTH-EAST § Strong performance driven § Focused on construction, § Performance in line with § Positive EBITDA by robust infrastructure experiencing challenges due budget performance, with good dem
Slide 10: Group post CRH lime acquisitions
SigmaRoc 2024 Interim Results Group post CRH lime acquisitions 10
Slide 11: A leader in European lime and minerals
Acquisitions SigmaRoc 2024 Interim Results A leader in European lime and minerals THE NEW GROUP 1H241 Pro forma revenue NORTH-WEST NORTH-EAST £532m 24% 39% Pro forma EBITDA of Group pro-forma of Group pro-forma £118M revenue revenue Minerals 193mt 965mt c.2.7Bt mineral reserves mineral reserves Coun
Slide 12: Synergies: €35m incremental EBITDA identified to date
Acquisitions SigmaRoc 2024 Interim Results Synergies: €35m incremental EBITDA identified to date IDENTIFIED SYNERGIES SYNERGIES OVERVIEW SYNERGIES TOPLINE GROWTH COST SYNERGIES ADJACENT PROCUREMENT MARKET GROWTH Minimum raised from €30m to €35m MARGIN +€5m SG&A EXPANSION OPERATIONAL PERFORMANCE mill
Slide 13: Synergies expected to meet current expectations
Acquisitions SigmaRoc 2024 Interim Results Synergies expected to meet current expectations Progress with synergies § Enhanced synergy position of at least €35m, with more from Poland to come Examples § Insourcing lime materials and minerals § Cross-regional supply § Bulk purchasing (e.g. Heavy Mobil
Slide 14: Financials
SigmaRoc 2024 Interim Results Financials 14
Slide 15: 1H24 financial highlights proforma
Financials SigmaRoc 2024 Interim Results 1H24 financial highlights PROFORMA1 REVENUE EBITDA EBITDA MARGIN EPS EPS £469m £100m 21.3% 3.2p 4.3p +60% YoY +82% YoY +240bps YoY -20% YoY +6% VOLUMES ROIC FCF CONVERSION COVENANT LEVERAGE LEVERAGE 11.5mt 6.2% 43% 2.6x 2.3x +23% YoY +100bps +£44m Strong perf
Slide 16: Strong financial evolution
Financials SigmaRoc 2024 Interim Results Strong financial evolution REVENUE EBITDA UNDERLYING EBITDA MARGIN (million GBP) (million GBP) (%) 1H241 532 +83% 1H24 1 118 +115% 1H24 1 22.2% +330bps 1H23 290 +17% 1H23 55 +15% 1H23 18.9% -10bps 1H22 247 +191% 1H22 48 +213% 1H22 19.0% +100bps 1H21 85 +56% 1
Slide 17: 1H24 revenue bridge
Financials SigmaRoc 2024 Interim Results 1H24 revenue bridge M&A: +65% Organic: -1% +50% -1% -1% 1% 0% -2% £468.7m North West West North East Central Forex +12% 0% +3% £290.0m West North East Central North West 62% revenue growth 1H23 1H24 Growth primarily driven by CRH lime acquisitions 17
Slide 18: 1H24 EBITDA bridge
Financials SigmaRoc 2024 Interim Results 1H24 EBITDA bridge 21.3% margin M&A: +82% Organic: +2% +58% -2% -6% +10% 0% -2% £100.0m 18.9% North West Central Forex margin West North East +19% +1% +4% £54.9m North East Central West North West 82% EBITDA growth 1H23 1H24 Growth primarily driven by CRH lim
Slide 19: Income statement
Financials SigmaRoc 2024 Interim Results Income statement Cost of sales % of revenue 6 months to 6 months to 1H24 1H23 30 June 2024 30 June 2023 1% 1% Plant hire CONTINUED OPERATIONS £’M £’M 4% 4% Maintenance REVENUE 469 290 5% 6% D&A COST OF SALES (358) (223) 9% 7% Distribution & selling GROSS PROF
Slide 20: Strong cash generation from enlarged Group
Financials SigmaRoc 2024 Interim Results Strong cash generation from enlarged Group <7% 43% 84% cost of FCF of D&A debt conversion 100.0 (3.4) (9.7) (24.5) (3.0) 43.4 (16.0) million GBP 0 Underlying Net working Income tax Maintenance Growth Net finance costs Underlying FCF EBITDA capital change paid
Slide 21: Focus on de-leveraging post CRH lime acquisitions
Financials SigmaRoc 2024 Interim Results Focus on de-leveraging post CRH lime acquisitions 1.57x 2.57x 195.7 (182.4) million GBP 43.4 (550.8) (5.6) (532.6) (14.9) (18.0) 0 Opening Net Net Cost of Non- Underlying Other Closing net net debt fundraising M&A borrowings underlying FCF debt cash costs 21
Slide 22: Strategic delivery
SigmaRoc 2024 Interim Results Strategic delivery 22
Slide 23: Overview
Strategic delivery SigmaRoc 2024 Interim Results Overview A leading European lime and minerals Group Significant reserve in strategic locations near industrial hubs Enhanced diversified portfolio extending beyond cyclical sectors Operational excellence through 4i’s principles Effectively managing CO
Slide 24: A leading European lime and minerals Group
Strategic delivery SigmaRoc 2024 Interim Results A leading European lime and minerals Group REVENUE SPLIT BY REGION Two complementary #1 in Sweden North-West footprints* 22% #1 in Norway 1 #1 in Finland North- SigmaRoc enlarged footprint 37% East 10% West SigmaRoc sites as of 2023 CRH sites as of 20
Slide 25: Significant reserve base in strategic locations
Strategic delivery SigmaRoc 2024 Interim Results Significant reserve base in strategic locations Reserves and resources Enlarged Group with 2.7Bt mineral reserves Sweden acquired in 2024 New Group footprint 285Mt Reserves 274Mt SigmaRoc target market Finland Germany1 Resources 317Mt 749Mt UK Baltics
Slide 26: Consistent margins across core business
Strategic delivery SigmaRoc 2024 Interim Results Consistent margins across core business PROFORMA REVENUE, EBITDA AND EBITDA MARGIN FROM 2008 – 1H20241 ~75% of Group proforma EBITDA 1000 75% 909 919 900 65% 800 748 710 692 703 711 55% 677 663 667 673 674 660 700 646 640 600 565 45% 500 436 35% 400 2
Slide 27: Enhanced diversified portfolio extending beyond cyclical sectors
Strategic delivery SigmaRoc 2024 Interim Results Enhanced diversified portfolio extending beyond cyclical sectors REVENUE SPLIT BY SECTOR REVENUE SPLIT BY REGION Steel West Residential 11% 16% 22% 13% PPB 2023 2023 North 20% 6% Food West North 6% 74% & East Chemical Infrastructure 35% 7% Environment
Slide 28: Revenue stability through long term contracts
Strategic delivery SigmaRoc 2024 Interim Results Revenue stability through long term contracts1 TOP 20 CUSTOMER RELATIONSHIPS ACROSS SIGMAROC LIME BUSINESSES STRONG STABILITY OF FUTURE REVENUE >30 years 3% >20 years Lime customers typically under long-term 11% contracts < 3 years 24% >15 years 4% §
Slide 29: Growth – mix of organic and acquisitive
Strategic delivery SigmaRoc 2024 Interim Results Growth – mix of organic and acquisitive ACQUISITIVE GROWTH BOLSTERED ROBUST ORGANIC GROWTH Organic Revenue Growth M&A Revenue Growth § 6-year organic revenue growth averages 15% 2023 3% 2023 5% § 56% average M&A growth 2022 30% 2022 68% § Synergies an
Slide 30: Capital allocation
Strategic delivery SigmaRoc 2024 Interim Results Capital allocation Deleveraging Target leverage <1.5x adjusted EBITDA Returning cash to shareholders Share buybacks and/or modest dividend once leverage below 1.5x Organic growth Investment in core assets to maintain growth. Maintenance capex typicall
Slide 31: Summary & outlook
SigmaRoc 2024 Interim Results Summary & outlook 31
Slide 32: 2H24 Outlook
Summary & outlook SigmaRoc 2024 Interim Results 2H24 Outlook Industrial § Steel expected to weaken in Germany § PP&B has recovered post some initial disruptions § Chemical showing solid demand with some mixed local pictures § Mining remains solid with modest growth expected for 2024/25 Environment §
Slide 33: Q&A
Summary & outlook SigmaRoc 2024 Interim Results Q&A Civil CSU AAC engineering Mortar Cement Soil stabilization Steel Chemistry Sugar Water Flue gas Disinfection treatment treatment Glass Paper Paint Waste water Lake liming Fertilisation treatment 33
Slide 34: Appendix
SigmaRoc 2024 Interim Results Appendix 34
Slide 35: Consistent performance across regions
Appendix SigmaRoc 2024 Interim Results Consistent performance across regions NORTH-WEST WEST CENTRAL NORTH-EAST REVENUE: £104.5m REVENUE: £54.2m REVENUE: £166.3m REVENUE: £143.8m GROUP REV. %: 22% GROUP REV. %: 12% GROUP REV. %: 35% GROUP REV. %: 31% EBITDA1: £23.8m EBITDA1: £10.2m EBITDA1: £38.5m E
Slide 36: One mineral essential for life
Appendix SigmaRoc 2024 Interim Results One mineral essential for life INDUSTRY CONSTRUCTION & ENGINEERING ENVIRONMENT & FOOD Iron Phenates Soil treatment Contaminated land treatment Steel Salicylates Hydraulic road binders Shipping emissions Aluminium Fire extinguisher foam Tunnelling Battery making
Slide 37: Shareholder information
Appendix SigmaRoc 2024 Interim Results Shareholder information TOP 10 SHAREHOLDERS (JULY 2024) % OF ISSUED SHARE CAPITAL REGION OF SHAREHOLDER (JULY 2024) CRH plc 15.4% 1% 5% FMR 5.2% 15% UK We stern Europe Conversant Capital LLC 4.3% 20% North America 59% Nordic Janus Henderson 4.2% BGF 4.1% Blackr
Slide 38: Thank you.
SigmaRoc 2024 Interim Results Thank you. 6 Heddon Street, London, W1B 4BT, United Kingdom +44 207 129 78 28 info@sigmaroc.com 38