Buzzi Unicem — Interim / Quarterly Report 2015

Jun 10, 2015

Italian Investment Conference 2015

Milan – 10 June 2015

Executive summary Q1 15

Volumes

• –Cement up 2.2%, thanks mainly to scope changes (Korkino); ready-mix concrete down 3.3%
• – Italy: almost stable (cement -1.9%), with negative domestic shipments and positive export and clinker; ready-mix concrete gaining some momentum (+10.0%)
• –United States: higher cement volumes (+2.8%) despite adverse weather conditions in March
• Central Europe: lower sales (cement -6.2%; ready-mix concrete -7.6%) penalized by difficult comparison againts weather-supported Q1 2014
• – Eastern Europe: a good start to the year (cement +14.8%; lfl +4.1%) in all markets, particularly in Poland (+8.9%)

Prices

• – Unfavorable variance in Poland and Italy, favorable in the United States and Ukraine; marginal weakness in other markets
• Foreign Exchange
• – Positive impact on sales (€m 10.8) and Ebitda (€m 2.6), due to stronger dollar offsetting a much weaker ruble and hryvnia
• Results
• –Revenues at €m 513.4 versus €m 496.4 in Q1 14 (+3.4%)
• –EBITDA at €m 27.2 (recurring €m 23.4) versus €m 10.3 (recurring €m 11.6) in Q1 2014
• –Outlook confirmed for financial year 2015

Volumes

Cement volumes and prices

Price trends by country

In local currency; FY12 = 100

FX changes

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

Net sales by country

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

EBITDA by country

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

EBITDA variance analysis

Consolidated Income Statement

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

(1) Net Profit + amortization & depreciation

Net Financial Position

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

Gross debt breakdown (€m 1,614.2)

pag ¹⁰ Italian Investment Conference | Milan, 10 June 2015

Consolidated Cash Flow Statement

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

1) of which expansion projects 37.5

Debt maturity profile

• Total debt and borrowings stood at €m 1,550 at March 2015
• As at March 2015 available €m 587m of undrawn committed facilities (€m 500m for Buzzi Unicem, €m 87 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

Appendix

pag ¹⁵ Italian Investment Conference | Milan, 10 June 2015

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

pag

Expected trading in 2015

		V l ∆ o m e u	P i ∆ r c e
	I t l a y
	S f U i t d t t A i 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 z e c e p u c
	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

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	-5. 9	-18 .1	-18 .7
		in ma rg	21 .5%	16. 9%	13. 1%	5.3 %	% 1.8	-1. 2%	-4. 2%	8% -4.
	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%	14. 2%	12. 0%	0% 18.	7% 14.
	Lu mb xe ou	EB ITD A	21 .5	17 .4	14 .1	16 .4	33 .4	13 .8	19 .7	17 .8
	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 %	3% -6.	-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%	20 .5%	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%	.1% 38	25 .7%	25 .8%	26 .6%	20 .0%	26 .8%	20 .4%
	Uk rai	EB ITD A	58 .1	49 .9	-4. 5	-10 .5	6.9	15 .8	12 .3	11 .0
	ne	in ma rg	32 .4%	23 .8%	-6. 0%	-12 .8%	6.2 %	8% 11.	0% 10.	5% 12.
	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	.9% 47	.8% 64	.6% 42	.0% 32	.4% 37	41 .0%	37 .2%	35 .0%
	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%	21 .4%	14. 8%	12. 8%	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
	Gr	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
	ou p	in ma rg	29 .9%	26 .2%	20 .3%	.6% 14	15 .6%	.2% 16	17 .5%	.9% 16