Buzzi Unicem — Interim / Quarterly Report 2015

Sep 8, 2015

Italian Infrastructure Day 2015

Milan – 8 September 2015

Executive summary H1 2015

Volumes

• Cement up 1.5% in Q2 and 1.6% YTD, thanks mainly to scope changes (Korkino). Ready-mix concrete down 3.8% YTD
• Italy: slight increase in Q2 (cement +2.5%), with negative domestic shipments (-8.0%) and positive export and clinker; cement close to previous year's level YTD (+0.5%) and ready-mix concrete gaining some momentum (+5.3%)
• United States: progress in Q2 (cement +3.9%), despite adverse weather conditions in Texas, and ahead of last year at end of period (cement +2.8%)
• Central Europe: lower sales in Q2 (cement -4.7%) and YTD (cement -5.4%; ready-mix concrete -6.4%), penalized by difficult comparison against weather-supported H1 2014
• Eastern Europe: poor results in Q2 (lfl -6.8%) particularly in Russia (lfl -20.1%) and Ukraine (-9.9%). For the 6 months period, Czech Republic and mainly Poland show a favorable variance
• Prices
• Sound increase in USA and Ukraine (local currency); no variance in Germany and Russia; marginal weakness in Luxembourg and Czech Republic; prices dropping in Italy and Poland
• Foreign Exchange
• Positive impact on sales (€m 43.7) and Ebitda (€m 10.5), due to stronger dollar offsetting a much weaker ruble and hryvnia
• Costs
• High inflation in Ukraine, but elsewhere energy commodities and fuel are trending lower
• Results
• Revenues at €m 1,238.2 versus €m 1,180.7 (+4.9%)
• EBITDA at €m 166.6 (recurring €m 165.2) versus €m 138.5 (recurring €m 145.4)
• Fine tuning of the outlook for financial year 2015

Volumes

Cement volumes and prices

Price trends by country

In local currency; FY12 = 100

FX changes

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

Net sales by country

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

EBITDA by country

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

Net sales and EBITDA development

Decreasing contribution from emerging markets, from 40% to 29% of EBITDA in H1 15 vs H1 14 due to forex and economic troubles

EBITDA variance analysis

Energy costs impact

Consolidated Income Statement

H 1 1 5	H 1 1 4	∆	∆
		b a s	%
1, 2 3 8 2	1, 1 8 0 7	5 7 5	4 9 +
1 6 6 6	1 3 8 5	2 8 2
1. 5 1 3. 3 %	( 7. 0 ) 1 2. 3 %
( 9 6 5 )	( 1 2 4 4 )	2 7 9
7 0 1	1 4 1	5 6 0
( 5. 7 % )	( 1. 2 % )
3 0 2	2 1. 8	8 4
( ) 5 1. 8	( ) 4 7 0	( ) 4 8
4 1 5	( 1 1. 1 )	6 2 5
( 1 ) 7 7	( 9 ) 7	( 8 0
3 6 4	( 2 0 8 )	2 5 7
( ) 1. 5	( ) 1. 8	0 3
3 4 9	( 2 2 6 )	5 7 5
1 3 2 9	1 0 3 6	2 9 4	2 8 4 +
			)

(1) Net Profit + amortization & depreciation

pag¹¹

Consolidated Cash Flow Statement

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

1) of which expansion projects 82.4 in 2015 and 15.1 in 2014

Net Financial Position

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

Gross debt breakdown (€m 1,548.5)

pag ¹³ Italian Infrastructure Day | Milan, 8 September 2015

Debt maturity profile

• Total debt and borrowings stood at €m 1,483 at June 2015
• As at June 2015 available €m 484m of undrawn committed facilities (€m 400m for Buzzi Unicem, €m 84 for Dyckerhoff)

Industrial capex

In the period 2007-2014 equal to €m 2,992, of which €m 1,010 for expansion projects *

Expansion capex

Maryneal, Texas – USA

• To be completed in 1H 2016
• New line with a capacity of 1.2m tons per year (versus 0.6m currently)
• Total cost: \$m 260
• Aimed at capturing the demand growth of Texas in oil and gas, residential and infrastructure
• Cost saving thanks to increased efficiency and environmental footprint reduction

Apazapan, Veracruz - Mexico

• To be completed in 1Q 2017
• Second line with a capacity of 1.3m tons per year, to double the current 1.3m
• Aimed at preserving market share in a growing consumption trend
• Total cost: \$m 200

Expected trading in 2015

		V 2 0 1 4 A t l s c a u
		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 e m o r g u x u
	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 u s s a
	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 (# 5 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

2014 Consumption vs. Peak (2003-2014 est.)

Historical EBITDA development by country

EU Rm			20 07	20 08	20 09	20 10	20 11	20 12	20 13	20 14
	Ita ly	EB ITD A	20 6.4	143 .4	92 .7	32 .5	10 .3	9 -5.	-18 .1	-18 .7
		in ma rg	21 .5%	16. 9%	1% 13.	5.3 %	1.8 %	-1. 2%	-4. 2%	-4. 8%
	Ge rm an y	EB ITD A	138 .9	102 .7	116 .3	76 .3	90 .3	72 .2	108 .1	88 .6
		in ma rg	27 .0%	17. 3%	22 .0%	13. 9%	2% 14.	12. 0%	18. 0%	14. 7%
	Lu mb	EB ITD A	21 .5	17 .4	14 .1	16 .4	33 .4	13 .8	19 .7	17 .8
	xe ou rg	in ma rg	23 .5%	19. 5%	17. 0%	17. 7%	29 .6%	13. 3%	18. 1%	16. 8%
	Ne the rla nd s	EB ITD A	8.1	7.2	4.5	0.6	1.6	-5. 5	-8. 2	-1. 9
		in ma rg	5.8 %	5.4 %	4.0 %	0.5 %	1.4 %	-6. 3%	-11 .3%	-3. 3%
	Cz h R ec ep	EB ITD A	70 .3	73 .2	44 .2	32 .8	35 .2	25 .4	19 .2	27 .0
		in ma rg	32 .6%	28 .1%	25 .2%	.5% 20	20 .5%	17. 0%	14. 6%	20 .2%
	Po lan d	EB ITD A	52 .1	70 .0	31 .2	33 .4	36 .9	21 .8	27 .1	18 .2
		in ma rg	36 .5%	38 .1%	25 .7%	25 .8%	26 .6%	20 .0%	26 .8%	20 .4%
		EB ITD A	58 .1	49 .9	-4. 5	-10 .5	6.9	15 .8	12 .3	11 .0
	Uk rai ne	in ma rg	32 .4%	23 .8%	-6. 0%	-12 .8%	6.2 %	11. 8%	10. 0%	12. 5%
	Ru ia	EB ITD A	94 .7	173 .2	42 .1	39 .7	65 .7	96 .1	92 .6	73 .4
	ss	in ma rg	47 .9%	64 .8%	42 .6%	32 .0%	37 .4%	.0% 41	37 .2%	.0% 35
	US A	EB ITD A	304 .1	20 5.8	13 1.3	88 .7	71 .4	123 .9	15 1.0	20 7.3
		in ma rg	35 .7%	27 .4%	.4% 21	8% 14.	8% 12.	18. 2%	20 .7%	24 .2%
	Me xic o	EB ITD A	91 .9	79 .9	69 .9	77 .2	82 .6	97 .5	77 .5	Ad tio f op n o
		in ma rg	43 .4%	38 .9%	38 .7%	36 .2%	34 .7%	36 .2%	33 .2%	IFR S 1 1
		EB ITD A	104 6.3	92 2.7	54 1.7	38 7.0	43 4.3	45 5.1	48 1.2	42 2.7
	Gr ou p	in ma rg	29 .9%	26 .2%	20 .3%	14 .6%	15 .6%	16 .2%	17 .5%	16 .9%