Buzzi Unicem — Earnings Release 2017

Apr 5, 2018

Engineering & Construction Conference

Milan – 5 April 2018

Executive summary FY 2017

Volumes

• – Italy: YTD cement well ahead of 2016 thanks to Zillo contribution; +4.5% on lfl basis, mainly due to export and clinker sales; ready-mix up
• – United States: volumes down in Q4, particularly December because of bad weather; YTD cement flat; confirmed upswing in oil-well cement shipments; ready mix down in Q4 and YTD
• – Central Europe: sound full year results in Germany and Luxembourg (cement +4.5%); ready mix concrete YTD down in Germany but well ahead in Lux/Ned
• – Eastern Europe: positive Q4, particularly Russia and the Czech Republic; YTD cement up 1.5%, with progress realized in the Czech Republic, Russia and Poland more than offsetting the unfavorable variance in Ukraine
• Prices
• – Favorable variance in USA, Poland and Ukraine (local currency), to a minor extent in Luxembourg, Germany and Russia; stable or marginal weakness in the Czech Republic and Italy
• Foreign Exchange
• – Negative impact on sales (€m 3.1) and EBITDA (€m 2.0) mainly due to weaker dollar and hryvnia more than offsetting the ruble recovery
• Results
• –Net sales at €m 2,806 (€m 2,669 in 2016), +3.7% like-for-like
• –Recurring EBITDA up 4.7% to €m 576 (+€m 26 on 2016)
• – Net debt at €m 863 versus €m 942 at year end 2016, after €m 113 impact from Zillo acquisition and €m 29 for expansion capex

Volumes

Price trends by country

In local currency; FY14 = 100

FX changes

	2 0 1 7	2 0 1 6	∆	2 0 1 5	t c u r r e n
E U R 1 =	a g v	a g v	%	a g v
U S D	1. 1 3	1. 1 1	2 1 -	1. 1 1	1. 2 3
R U B	6 9 4 5	4 1 4 7	1 1. 1 +	6 8 0 7	7 0 8 9
U A H	3 0 0 2	2 8 2 8	6 1 -	2 4 2 8	3 2 6 2
C Z K	2 6 3 3	2 7 0 3	2 6 +	2 7 2 8	2 5 4 3
P L N	4 2 6	4 3 6	2 4 +	4 1 8	4 2 1
M X N	2 1. 3 3	2 0 6 7	3 2 -	1 6 2 7	2 2 5 2

Net sales by country

	2 0 1 7	2 0 1 6	∆	∆	F o r e x	S c o p e	l- f- l ∆
E U R m			b a s	%	b a s	b a s	%
I t l a y	4 2 8 7	3 2 7 5	2 6 5	1 4 0 +	-	2. 4 4	2. 7 +
U i d S t t t n e a e s	1, 1 1 9 7	1, 1 1 7 8	2 0	0 2 +	( 2 3. 1 )	-	2. 2 +
G e r m a n y	5 8 8 0	5 7 2 4	1 5 6	2 7 +	-	-	2. 7 +
/ L N t h l d u x e e r a n s	1 8 6 8	1 7 6 5	1 1. 2	6 4 +	-	-	6. 4 +
C / S h R l k i z e c e p o v a a	1 4 7 9	1 3 6 2	1 1. 7	8 6 +	3. 0	-	6. 4 +
P l d o a n	9 0 7	9 0 5	2 0	2 1 +	2. 4	-	0. 4 -
U k i r a n e	9 4 5	9 8 7	1 4 7	1 8 5 +	( 5. 8 )	-	2 5. 7 +
R i u s s a	1 8 3 4	1 5 4 4	3 0 0	1 9 4 +	2 0. 4	-	6. 2 +
E l i i t i m n a o n s	( 3 9. 9 )	( 3 7. 0 )	( 2. 9 )
T l t o a	2 8 0 6 2 ,	2 6 6 9 3 ,	1 3 6 9	5 1 +	( 3. 1 )	4 2. 4	3. 7 +
M i ( 1 0 0 % ) e c o x	6 8 6 1	6 0 9 0	7 7 1	1 2 7 +	( ) 2 2. 0	-	1 6. 3 +

EBITDA by country

	2 0 1 7	2 0 1 6	∆	∆	F o r e x	S c o p e	f- l- l ∆
E U R m			b a s	%	b a s	b a s	%
I t l a y	( ) 7 9 7	( ) 2 2 2	( ) 5 7 4	1 0 0 >	-	4. 6	1 0 0 >
S U A	3 6 9 6	3 6 5 5	1 3 1	3 7 +	( 7. 6 )	-	5. 8 +
G e r m a n y	7 8 1	7 6 8	1. 3	1. 7 +	-	-	1. 7 +
L / N t h l d u x e e r a n s	1 7 6	2 5 8	( 8 3 )	3 2 0 -	-	-	3 2. 0 -
C h R / S l k i z e c e p o v a a	3 6 5	3 4 3	2 2	6 4 +	1. 0	-	3. 6 +
P l d o a n	2 4 1	2 3 4	0 7	3 0 +	0. 6	-	0. 5 +
U k i r a n e	1 6 0	1 2 8	3 2	2 4 9 +	( 1. 0 )	-	3 2. 6 +
R i u s s a	4 6 0	4 3 2	2 8	6 4 +	5. 1	-	-5 4
T t l o a i r e c u r r n g	5 0 8 2 5 7 6. 4	5 5 0 6 5 5 0. 7	( 4 2 4 ) 2 5. 6	7 7 - 4. 7 +	( ) 2. 0 ( 2. 0 )	4. 6 4. 6	8. 2 - 4. 2 +
M i ( 1 0 0 % ) e x c o	3 2 9 3	2 9 3 4	3 5 9	1 2 2 +	( 1 0. ) 5	-	1 8 5. +

Net sales and EBITDA development

• Italy improving, thanks to Zillo contributions, but still negative
• USA contributions just under 2/3 of the consolidated EBITDA
• Stable at 21% the contribution from Eastern Europe

EBITDA variance analysis

Energy costs impact

Consolidated Income Statement

	2 0 1 7	2 0 1 6	∆	∆
E U R m			b a s	%
S N t l e a e s	2 8 0 6 2 ,	2 6 6 9 3 ,	1 3 6 9	5 1 +
E B I T D A	0 8 2 5	0 6 5 5	( 4 2 4 )	7 7 -
f h i h, i o w c n o n r e c u r r n g	6 8. 2	0. 1
% f l ( i ) o s a e s r e c u r r n g	2 0. 5 %	2 0. 6 %
D i i d i i t t t e p r e c a o n a n a m o r a o n z	( 2 2 2 1 )	( 2 0 2 6 )	( 1 9 ) 5
O f t i i t p e r a n g p r o ( E B I T )	2 8 6 0	3 4 8 0	( 6 2 0 )	1 8 7 -
% f l o s a e s	1 0. 2 %	1 3. 0 %
E i t i q u y e a r n n g s	9 7 7	8 0 1	1 7 6
f N t i t e n a n c e c o s s	( ) 3 5 0	( ) 1 4 7 2	1 1 2 1
P f i t b f t r o e o r e a x	3 4 8 7	2 8 0 9	6 7 8	2 4 1 +
I t n c o m e a e p e n s e x x	4 5 9	( 1 3 2 2 )	1 7 8 1
f N t i t e p r o	3 9 4 6	1 4 8 7	2 4 5 9	1 6 5 4 +
M i i t i n o r e s	( 3 0 )	( 2 8 )
C l i d d f i t t t o n s o a e n e p r o	3 9 1. 6	1 4 5 9	2 4 5 8	1 6 8 5 +

Consolidated Cash Flow Statement

E U R m	2 0 1 7	2 0 1 6
C h d f i t t a s g e n e r a e r o m o p e r a o n s	0 6 6 5	4 6 7 5
% f l o s a e s	1 8. 1 %	1 7. 5 %
I i d t t n e r e s p a	( 4 3 9 )	( 6 1. ) 5
I i d t n c o m e a p a x	( 9 1. 9 )	( 1 0 1. 8 )
N h b i i i i t t t t e c a s o p e r a n g a c e s y v	3 0 8 7	3 0 4 1
% f l o s a e s	1 3. 2 %	1 1. 4 %
C i t l d i t a p a e x p e n u r e s	( 1 8 3 7 )	( 2 3 6 0 )
E i i t t t q u y n v e s m e n s	( 3 3 9 )	( 0 4 )
D i i d d i d v e n s p a	( 2 2 0 )	( 1 6 3 )
D i i d d f i t e n s r o m a s s o c a e s v	8 5 3	6 7 0
D i l f f i d d i t t t s p o s a o e a s s e s a n n e s m e n s x v	1 2 5	2 1. 5
T l i d i f f d d i i t t r a n s a o n e r e n c e s a n e r a e s v v	( 4 0 2 )	( 9 9 ) 5
A d i b l t t c c r e n e r e s p a a e u y	( 1. 4 )	( 3 8 )
I i d t t n e r e s r e c e e v	9 7	1 4 6
C i l i b i l i i t t t o n n g e n a e s	( 6 4 ) 5	-
C h i l i d t i d t h a n g e n c o n s o a o n a r e a a n o e r	( 6 1. ) 5	( 2 ) 7
C h i t d b t a n g e n n e e	7 9 1	8 8 2
f ( f ) N t i i l i t i d i d e n a n c a p o s o n e n o p e r o	( ) 8 6 2 5	( ) 9 4 1. 6

Net Financial Position

	1 D 7 e c	D 1 6 e c	∆	S 1 7 e p
E U R m			b a s
C h d h f i i l t t a s a n o e r n a n c a a s s e s	8 2 9 9	6 0 9 6	2 2 0 3	1 6 4 7
S h d b t- t t o r e r m e	( 4 2 4 7 )	( 7 5 7 )	( 3 4 8 9 )	( 3 9 2 5 )
N h h t t- t e s o r e r m c a s	4 0 2 5	3 3 9 5	1 2 8 7	3 2 3 9
L t f i i l t o n g e r m n a n c a a s s e s -	3 2	1 3 2	( 1 0 0 )	1 2 2
L d b t t o n g e r m e -	( 1, 2 0 9 ) 7	( 1, 4 8 8 6 )	2 1 7 7	( 1, 2 1. 3 ) 5
N d b t t e e	( 8 6 2 5 )	( 9 4 1. 6 )	7 9 0	( 9 1 5 2 )

Gross debt breakdown (€m 1,695.6)

Debt maturity profile

• Total nominal value of debt and borrowings stood at €m 1,505 at December 2017
• As at December 2017 available €m 325m of undrawn committed facilities (€m 300m for Buzzi Unicem, €m 25 for Dyckerhoff)

Expected trading in 2018

	V l ∆ o u m e	P i ∆ r c e
I t l a y
U i d S f A i t t t n e a e s o m e r c a
G e r m a n y
L b u x e m o u r g
C h R b l i e c e p c z u
P l d o a n
U k i r a n e
R i s s a u
M i e x c o

Appendix

Buzzi Unicem at a Glance

• International multi-regional, "heavy-side" group, focused on cement, ready-mix and aggregates
• Dedicated management with a long-term vision of the business
• Highly efficient, low cost producer with strong and stable cash flows
• Successful geographic diversification with leading positions in attractive markets
• Italy (# 2 cement producer), US (# 4 cement producer), Germany (# 2 cement producer), joint venture in Mexico (# 4 cement producer)
• Significant positions in Luxembourg, The Netherlands, Poland, Czech Republic, Slovakia, Russia and Ukraine, as well as entry point in Slovenia and Algeria
• High quality and environmentally friendly assets
• Leading product and service offering
• Conservative financial profile and balanced growth strategy

"Value creation through lasting, experienced know-how and operating efficiency"

Ownership structure

Cement plants location and capacity

2017 Consumption vs. Peak

Historical series of cement consumption by country

Historical EBITDA development by country

EU Rm		20 10	20 11	20 12	20 13	20 14	20 15	20 16	20 17
Ita ly	EB ITD A	32 .5	10 .3	-5. 9	-18 .1	-18 .7	-37 .2	-22 .2	-79 .7
	in ma rg	5.3 %	1.8 %	2% -1.	-4. 2%	-4. 8%	8% -9.	9% -5.	-18 .6%
Ge rm an	EB ITD A	76 .3	90 .3	72 .2	108 .1	88 .6	72 .1	76 .8	78 .1
y	in ma rg	13. 9%	14. 2%	12. 0%	18. 0%	14. 7%	12. 6%	13. 4%	13. 3%
Lu x/	EB ITD A	17 .0	35 .0	8.3	11 .5	15 .6	19 .7	25 .8	17 .6
Ne the rla nd	s in ma rg	8.3 %	15. 7%	4.3 %	6.3 %	9.7 %	11. 7%	14. 7%	9.4 %
Cz Re ec	EB ITD A	32 .8	35 .2	25 .4	19 .2	27 .0	32 .6	34 .3	36 .5
h / p Slo kia va	in ma rg	20 .5%	20 .5%	17. 0%	14. 6%	20 .2%	24 .0%	25 .2%	24 .7%
	EB ITD A	33 .4	36 .9	21 .8	27 .1	18 .2	22 .7	23 .4	24 .1
Po lan d	in ma rg	25 .8%	26 .6%	20 .0%	26 .8%	.4% 20	.4% 20	24 .6%	.9% 24
	EB ITD A	-10 .5	6.9	15 .8	12 .3	11 .0	4.0	12 .8	16 .0
Uk rai ne	in ma rg	-12 .8%	6.2 %	11. 8%	10. 0%	12. 5%	% 5.7	16. 1%	16. 9%
	EB ITD A	39 .7	65 .7	96 .1	92 .6	73 .4	48 .4	43 .2	46 .0
Ru ia ss	in ma rg	.0% 32	37 .4%	.0% 41	.2% 37	.0% 35	.0% 29	28 .0%	24 .9%
	EB ITD A	88 .7	71 .4	123 .9	15 1.0	20 7.3	31 1.7	35 6.5	36 9.6
US A	in ma rg	8% 14.	12. 8%	2% 18.	20 .7%	24 .2%	28 .1%	31 .9%	33 .0%
Me xic o	EB ITD A	.2 77	82 .6	97 .5	77 .5	Ad tio of op n
	in ma rg	36 .2%	34 .7%	36 .2%	33 .2%	S 1 1 IFR
	EB ITD A	38 7.0	43 4.3	45 5.1	48 1.2	42 2.7	47 3.2	55 0.6	50 8.2
Co oli da ted ns	in ma rg	.6% 14	.6% 15	16 .2%	.5% 17	16 .9%	.8% 17	.6% 20	18 .1%