Cementir Holding N.v. · MIL:CEM
Cementir — FY2020 Earnings Presentation
21 slides from Cementir's earnings presentation, Feb 4, 2021
Slide 1: Industrial Plan 2021 – 2023 update and preliminary 2020 results
Industrial Plan 2021 – 2023 update and preliminary 2020 results February 4th, 2021 Conference call | Rome, 4 February 2021
Slide 2: Agenda
Agenda Preliminary 2020 results and 2021 guidance 3 Industrial Plan 2021-2023 update 8 2
Slide 3: Preliminary 2020 Results and 2021 Guidance
Preliminary 2020 Results and 2021 Guidance Aalborg plant, Denmark 3
Slide 4: Preliminary 2020 results highlights
Preliminary 2020 results highlights • Revenues increased by 1.1% to 1,224.8 M€ mainly due to positive performance in Turkey and Egypt − Cement volumes sold were up by 13% thanks to a +39% increase in clinker and cement volumes in Turkey • EBITDA unchanged at 263.8 M€ including a 0.6 M€ net one- off
Slide 5: Covid-19 impact in 2020
Covid-19 impact in 2020 Quarterly EBITDA (1) 2020 VS. 2019 EUR million Pandemic impact on EBITDA of around 20 M€ Management actions to preserve profitability and cash ✓ Priority to health and safety (social distancing, turnover, smart working) ✓ Focus on cash preservation, particularly on: ― Trade R
Slide 6: Financial Highlights and Sales volumes
Financial Highligths and Sales volumes Resilient business model in a difficult macro context, with recurring EBITDA up 2.2% (EUR million) 2020 2019 Change % REVENUE FROM SALES AND SERVICES 1,224.8 1,211.8 1.1% EBITDA 263.7 263.8 (0.0%) EBITDA Margin % 21.5% 21.8% EBIT 157.2 151.7 3.6% EBIT Margin %
Slide 7: 2021 Full Year Guidance – better cash generation
2021 Full Year Guidance – better cash generation • Revenues ~ 1,3 BN€ • EBITDA ~ 285-295 M€ • Net debt ~ 30 M€ • Capex ~ 95 M€ This forward-looking indication does not include new outbreaks of the Covid-19 pandemic in the coming months. The foregoing exclusively reflects the point of view of the com
Slide 8: Industrial Plan 2021-2023 update
Industrial Plan 2021-2023 update Trakya plant, Turkey 8
Slide 9: Cementir Strategy: main priorities unchanged
Cementir Strategy: main priorities unchanged ✓ Strengthen white cement global leadership, focusing on high-added value solutions and special cements (FuturecemTM) ✓ Improve profitability and operating efficiency ✓ Pursue product and geographic diversification ✓ Leverage on unique vertically integrat
Slide 10: Key industrial initiatives
Key industrial initiatives Nordic and Baltic • Infrastructure and commercial projects to underpin volume growth • Natural gas pipeline and multi-burner for white kilns in 2022 Belgium • Increase aggregates production capacity and improve RMC footprint Turkey • Improve RMC competitive position with n
Slide 11: Our Sustainability journey since 2019
Our Sustainability journey since 2019 • New Organizational set-up and Sustainability Governance in order to move from 2019 simple mandatory reporting to voluntary disclosure on sustainability topics • Established Sustainability Committee • CO2 emissions reduction targets to 2030, with yearly reducti
Slide 12: Target of 30% CO2 reduction by 2030
Target of 30% CO2 reduction by 2030 CO2 emission reduction path (*) Focus Areas Low carbon cements -6% grey -26% white • Product offering enhancement through FUTURECEM™ -20% grey technology in both white and grey cement -30% white • Leverage on cementitious materials such as GBFS, fly ash and limes
Slide 13: Main initiatives to achieve CO2 reduction targets
Main initiatives to achieve CO2 reduction targets Clear Roadmap Both in Grey and White Cement ✓ Actions Short-term (1-3yrs) Mid-term (4-6yrs) Long-term (7-10yrs) Over 30% CO2 reduction target by Specific Heat Consumption Investments on kilns to optimize heat consumption 2030 Progressive increase of
Slide 14: Product innovation: Futurecem
Product innovation: FuturecemTM • Proprietary technology patented worldwide enabling 40% clinker replacement • Lower clinker content allows a 30% CO2 reduction • Allows to produce a greener and more sustainable concrete • Also used as binder in InWhite SolutionTM and as mineral addition for concrete
Slide 15: Product innovation: high-value solutions
Product innovation: high-value solutions A platform to develop value added products • High-performance premix for thin • High-performance ready-to-use • Ready-to-use mortar obtained by concrete product production mortar for sophisticated aesthetics combining FUTURECEMTM and white cement • High aesth
Slide 16: Digitalization is another driver of our results
Digitalization is another driver of our results Detailed timeline with clear targets ~€15m of savings run-rate by 2023 • Specific initiatives identified across all areas including 100% production, maintenance and logistics (2023E) • Implementation under way at pilot plants in Belgium and ~90% Denmar
Slide 17: 2021-23 Investment plan highlights
2021-23 Investment plan highlights 107 M of green investments • Green investments of 107 M€ to yield ~30 M€ cumulative Capex over 2021-2023 annual cost savings from 2023 • Improve profitability and operational efficiency with product innovation, digitalisation of industrial processes • Main initiati
Slide 18: Financial targets for 2023
Financial targets for 2023 2020 2023 EUR million ➢ 4% CAGR in volumes of grey and white cement in all main geographical areas; prices in line with relevant markets and price Sales 1,225 ~ 1,470 increase in Turkey ➢ 12% aggregates volumes(1) CAGR in 2020-23; 6% CAGR in RMC ➢ Fuels and electricity inc
Slide 19: Comparison with previous Industrial Plan
Comparison with previous Industrial Plan Acceleration in Sales and EBITDA growth vs previous plan driven by self help and green investments 2021-2023 Industrial Plan update 2020-2022 Industrial Plan Released on 13 Nov. 2019 Target CAGR Target CAGR 2020 2019 EUR million 2023 2020-2023 2022 2019-2022
Slide 20: Growth drivers of EBITDA vs. 2020
Growth drivers of EBITDA vs. 2020 ✓ Strong contribution expected from Turkey where trading outlook is brightening ✓ Positive trend in volumes, prices and cost containment underpin 8.8% EBITDA CAGR ✓ € 30m contribution from sustainability and digitalization from 2023 20
Slide 21: 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