Cementir Holding N.v. · MIL:CEM
Cementir — Italian Investment Conference 2023
35 slides from Cementir's conference presentation, May 24, 2023
Slide 1: Italian Investment Conference Investor presentation
Italian Investment Conference Investor presentation Italian Investment Conference | Milan, 24 May 2023
Slide 2: Agenda
Agenda Group Highlights 3 ESG commitment and 2023-2025 Industrial Plan 10 2023 First quarter results and Guidance 19 Appendix 29 2
Slide 3: Group Highlights
Group Highlights Youth Olympic Games Center, Nanjing (China) 3
Slide 4: Our Industrial footprint
Our Industrial footprint Plants Cement plants: 11 Terminals: 60 RMC plants: 102 Quarries: 34 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: 8.0 mt White cement sales: 2.8 mt Gaurain,
Slide 5: Business segments
Business segments CONCRETE PRODUCTS / GREY CEMENT WHITE CEMENT READY-MIXED CONCRETE AGGREGATES WASTE 2022 Figures REVENUE =1,137 M€ REVENUE = 530 M€ REVENUE = 105 M€ REVENUE = 10 M€ EBITDA = 267 M€ EBITDA = 51 M€ EBITDA = 35 M€ EBITDA = -0.9 M€ EBITDA margin = 24% EBITDA margin = 10% EBITDA margin =
Slide 6: Our Strategy is based on five pillars
Our Strategy is based on five pillars Sustainable growth to create value for all stakeholders 1 ▪ Push towards product and value chain circularity 2022 EBITDA breakdown (*) Sustainability ▪ Carbon capture and storage in Denmark by 2030 Asia Pacific ▪ Focus on low carbon cements like 2 FUTURECEM® Egy
Slide 7: 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 2.8 Mt White cement and clinker volumes sold in 2022 Cement Capaci
Slide 8: Major white cement manufacturers (capacity - Mt)
Major 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 (29 Mt in 2021) ~11% ~9% ~6% ~4% ~3% ~2% Source: Cementir estimates, CW Research 8
Slide 9: 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 10: ESG Commitment and 2023-2025 Industrial Plan
ESG Commitment and 2023-2025 Industrial Plan CCB’s Gaurain plant, Belgium 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 scope 1, scope 2 and scope 3 emissions NET ZERO ▪ FUTURECEM® widespread use ▪ 100% fossil fuels-free energy ▪ Implementation of Carbon Capture & Storage technology, if economically viable ▪ Carbon offset as an option to compe
Slide 12: Scope 1 emissions: new 2030 decarbonization targets
Scope 1 emissions: new 2030 decarbonization targets (*) SCOPE 1 EMISSIONS (kg CO2/TCE) - Grey cement Grey cement target -36% (Kg Co2/TCE) 2030 -36% from 718 to 460 kg TARGET 460 2020 2021 2022 2025 2030 Clinker ratio 82% 81% 80% 76% 64% SCOPE 1 EMISSIONS (kg CO2/TCE) - White cement -19% White cement
Slide 13: 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-o
Slide 14: Rating improvement reflects our continued ESG commitment
Rating improvement reflects our continued ESG commitment Rating Ranking Scale 2022 2021 2020 (Worst-> Best) D- to A A- A- B F: no filing Climate Change D- to A A- B F F: no filing Water Security CCC to AAA BBB BBB BBB D- to A+ B+ B C- D- to A+ C+ Prime Not rated Not rated 0 to 100 55 Not rated 45 0
Slide 15: Industrial Plan update: 2025 Financial targets
Industrial Plan update: 2025 Financial targets * 2022 A 2025 EUR million Non-GAAP ▪ ~5-6% Sales CAGR in the 2022-25 period ▪ 3% cement volumes CAGR ; flat RMC volumes, 2-3% aggregates volumes Revenues 1,721 ~ 2,000 CAGR, despite flat/negative trend in 2023 ▪ Price increases across all markets to cov
Slide 16: Comparison with previous Industrial Plan
Comparison with previous Industrial Plan ▪ EBITDA CAGR acceleration driven by cost control ▪ Continued significant cash generation and dependable growth trajectory New 2023-2025 Industrial Plan 2022-2024 Industrial Plan Released on 4 Feb. 2021 2022A Target CAGR Target CAGR 2021A EUR million Non-GAAP
Slide 17: 2023-25 Capex highlights
2023-25 Capex highlights Industrial Plan Capex breakdown ▪ 86 M€ of sustainability* investments, focused on Euro Millions operational efficiencies via plant upgrades and product innovation ▪ Main initiatives: − Kiln upgrade in Gaurain, Belgium − Switch to natural gas in Aalborg − Facility upgrade fo
Slide 18: Increasing shareholders return
Increasing shareholders return ▪ +22% Dividend per Share increase vs. 2021 (payout ratio of 21.1%) ▪ The 2023-2025 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 +22% +44% 25%
Slide 19: 2023 Q1 results and Guidance
2023 Q1 results and Guidance 19
Slide 20: 2023 First Quarter results highlights
2023 First Quarter results highlights • From April 2022 Türkiye is considered “hyperinflationary”; hence results as of 31 March 2023 are prepared using IAS 29 accounting principle • Revenues reached 414.8 M€ (+14.5% yoy); non-GAAP Revenues reached 413.8 M€ (+ 14.2% yoy), driven by price increases −
Slide 21: Nordic & Baltic
Nordic & Baltic Asset overview Share of Group Ebitda Q1 2023 • Denmark (32) − Cement volumes down with domestic market affected by unfavourable (27) weather and slowing demand due to high inflation and interest rates. 48% Lower white cement exports due to a decline in some export markets (9) − RMC a
Slide 22: Belgium and France
Belgium and France (*) Asset overview Share of Group Ebitda Q1 2023 Grey cement plant (1) RMC (13) Terminals (3) 25% • Belgium • France − Cement volumes decreased with negative performance in Belgium and in the Netherlands, and stable in France. Falling demand due to unfavourable weather and slowing
Slide 23: Türkiye
Türkiye Asset overview Share of Group Ebitda Q1 2023 9% Grey cement plant (4) • Türkiye (**) RMC (21) Waste (1) − Revenue improved by 82% in Euro terms − Domestic cement volumes increased with significant higher sales in North-eastern Türkiye and Marmara, driven by new projects, and lower sales in A
Slide 24: North America
North America Asset overview Share of Group Ebitda Q1 2023 7% White cement plants (2) Terminals (31) • United States − White cement volume declined, in line with the residential market trend. Deliveries to Texas and California suffered a stronger contraction due to competitive pressure from imports.
Slide 25: Asia Pacific
Asia Pacific Asset overview Share of Group Ebitda Q1 2023 4% • China − Revenue down by 6% driven by lower cement prices while volumes were up by 3%. Until January 2023 cement sales were White cement plants (2) Terminals/Warehouse (10) affected by lockdowns and Chinese New Year − EBITDA down due to h
Slide 26: Egypt
Egypt Asset overview Share of Group Ebitda Q1 2023 4% White cement plants (1) • Egypt − Revenue declined by 12.8% because of the strong devaluation of Egyptian pound vs Euro (-79%) − White cement volumes declined moderately with higher EU R ' 000 Q1 2023 Q1 2022 Chg % deliveries on the domestic mark
Slide 27: Energy cost increase
Energy cost increase ▪ Significant energy cost inflation in the past two years, recovered via selected price increases ▪ In some countries (Egypt, Türkiye) energy cost increase is compounded by local currency weakness Energy costs €M +74% − Average energy costs spiked significantly in the last 2 yea
Slide 28: 2023 Full Year Guidance - unchanged
2023 Full Year Guidance - unchanged • Revenues > 1.8 BN€ • EBITDA ~ 335-345 M€ • Net cash > 200 M€ • Capex ~ 113 M€ Guidance refers to like-for-like ongoing operations, non-GAAP (excluding IAS 29) and excluding extraordinary items These expectations do not include any intensification of the current
Slide 29: Appendix
Appendix © cem ntirholding ; f Concretely Dynamic
Slide 30: Consolidated Income Statement – First Quarter 2023
Consolidated Income Statement – First Quarter 2023 Q1 2023 (EUR million) Q1 2023 Q1 2022 Chg % Chg % ( N on- G A A P) REV EN U E F ROM SA LES A N D SERV ICES 414.8 362.3 14.5% 413.8 14.2% Change in inventories 10.2 16.2 (37.1%) 11.1 (31.3%) Increase for internal work and other income 2.8 15.3 (81.4%
Slide 31: Consolidated Income Statement - 2022
Consolidated Income Statement - 2022 2022 (EUR million) 2022 2021 Chg % Chg % (Non-GAAP) REVENUE FROM SALES AND SERVICES 1,723.1 1,360.0 26.7% 1,720.9 26.5% Change in inventories 18.7 14.7 27.1% 23.2 57.7% Increase for internal work and other income 35.7 39.0 (8.4%) 38.6 (0.9%) TOTAL OPERATING REVEN
Slide 32: Hyperinflation in Türkiye – Application of IAS 29
Hyperinflation in Türkiye – Application of IAS 29 Hyperi nf l a ti on 31/12/2022 (EUR million) 31/12/2022 From April 2022, Türkiye is considered hyperinflationary Ef f ect ( N on- G A A P) based on the criteria of IAS 29 – Financial reporting in Total assets 1,494.0 203.9 1,290.1 hyperinflationary e
Slide 33: 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 34: Turkey and Egypt historical figures
Turkey and Egypt historical figures Country 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 Manu
Slide 35: 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
Cementir Holding — Italian Investment Conference 2023 on 6ix