Buzzi Unicem — Interim / Quarterly Report 2017

Nov 16, 2017

Italian Equity Conference 2017

New York – 16 November 2017

Executive summary 9M 2017

Volumes

• Cement up +4.1% YTD (+2.6% on LFL basis). Q3 includes the scope effect of the first Zillo consolidation in Italy; volumes recovery in the United States despite hurricane season; confirmation of the favorable trend in Central Europe and weaker volumes in Eastern Europe, particularly in Ukraine
• Italy: YTD cement up thanks to Zillo contribution and on LFL basis, mainly due to export and clinker sales; ready-mix up
• United States: recovery in Q3 despite hurricane Harvey impact ; YTD cement slightly up; confirmed upswing in oil-well cement shipments; ready mix concrete flat in Q3 and YTD
• Central Europe: favorable trend maintained in Q3 and sound YTD; ready-mix concrete with Germany slightly down and Lux/Ned up
• Eastern Europe: cement slightly down in Q3 with the negative result in Ukraine more than offsetting the progress realized in all the other countries; cement slightly up YTD thanks to the improvement in the Czech Republic and to a lesser extent, in Russia and Poland
• Prices
• Sound increase confirmed in the USA and Ukraine; favorable variance in Poland, to a minor extent in Luxembourg; stable or minor variances in other markets
• Foreign Exchange
• Positive impact on sales (€m 23.4) mainly due to stronger ruble
• Results
• Net sales at €m 2,133.4 versus €m 1,998.5 (+6.7%; +4.5% LFL)
• Guidance for the full financial year maintained

Volumes 9M 2017

Price trends by country

In local currency; FY14 = 100

FX changes

	9 M 1 7	9 M 1 6	∆	2 0 1 6	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 1	1. 1 2	0 2 +	1. 1 1	1. 1 6
R U B	6 0 0 5	6 1 8 7	1 4 7 +	4 1 7 5	6 7 8 7
U A H	2 9 4 7	2 8 4 0	3 8 -	2 8 2 9	3 1. 2 6
C Z K	2 6 5 5	2 7 0 4	1. 8 +	2 7 0 3	2 5 7 0
P L N	4 2 7	4 3 6	2 1 +	4 3 6	4 2 4
M X N	2 1. 0 1	2 0 4 3	2 8 -	2 0 6 7	2 2 3 0

Net sales by country

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

EBITDA by country

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

Consolidated Income Statement

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

(1) Net Profit + amortization & depreciation

Net Financial Position

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

Gross debt breakdown (€m 1,643.8)

pag ⁸ Italian Equity Conference | November 16, 2017

Consolidated Cash Flow Statement

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

1) of which expansion projects 11.9 (51.6 in H1 16; 76.8 in 2016)

Debt maturity profile

• Total nominal value of debt and borrowings stood at €m 1,516 at September 2017
• As at September 2017 available €m 324m of undrawn committed facilities (€m 300m for Buzzi Unicem, €m 24 for Dyckerhoff)

pag10Italian Equity Conference | November 16, 2017

Expected trading in 2017

	V l ∆ o u m e	P i ∆ r c e
I l t 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 e m o r g u x u
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 u s s a
M i e x c o

Recent strategic move: Zillo acquisition 1/4

• RATIONALE 4- Expected integration synergies 3- Positive impact on Buzzi Unicem's profitability 2- Strengthening presence and domestic market share 1- Active role in the consolidation process of the domestic industry 5-

• • Consolidation in the sector offer

• Leading industrial group, founded in 1882 and focused on the cement and readymix concrete industry in the North-East of Italy

• 2 full-cycle cement plants (market share estimated at 5%) and about 40 batching plants
• About 1.1 m ton cement sales in 2016

Recent strategic move: Zillo acquisition 2/4

• On June 16, 2017 Buzzi Unicem has signed a mandatory agreement to buy 100% of the share capital of Cementizillo
• The agreement provides for the purchase of 2 full-cycle cement plants (Fanna (PN) and Monselice (PD)) and about 40 batching plants in the North-East of Italy
• The agreed amount for the share purchase of Cementizillo foresees a fixed portion, equal to €m 60 plus 450,000 Buzzi Unicem ordinary shares, already in treasury, and a variable portion that may range from a minimum of € 0 to a maximum of €m 21, depending on the trend of the average cement price achieved by Buzzi Unicemin Italy in the years from 2017 to 2020
• Payment: €m22.6, on June 16, 2017 for the minority stake (48%); payment of the 52% made for €m 19 at the closing date (July 3, 2017) together with the transfer of the 450,000 Buzzi Unicem ordinary shares; next installments will be €m 3.4 120 days after the closing date, €m 7.5 one year after the closing date and another €m 7.5 three years after the closing date

Recent strategic move: Zillo acquisition 3/4

• In 2016, Zillo's cement and clinker sales came in at approximately 1.1 m tons and ready-mix concrete volumes amounted to about 440,000 cubic meters
• Consolidated 2016 net sales of Zillo stood at €m 90 and EBITDA at €m 10 (of whitch €m 5 non-recurring). Ebit was negative for €m 4 and the company closed the year with a loss of €m 6. At 31 December 2016 net debt amounted to €m 46.

Recent strategic move: Zillo acquisition 4/4

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

2016 Consumption vs. Peak

Historical series of cement consumption by country

Historical EBITDA development by country

EU Rm			20 09	20 10	20 11	20 12	20 13	20 14	20 15	20 16
	Ita ly	EB ITD A	92 .7	32 .5	10 .3	-5. 9	-18 .1	-18 .7	-37 .2	-22 .2
		in ma rg	13. 1%	5.3 %	1.8 %	-1. 2%	-4. 2%	-4. 8%	-9. 8%	9% -5.
	Ge rm an	EB ITD A	116 .3	76 .3	90 .3	72 .2	108 .1	88 .6	72 .1	76 .8
	y	in ma rg	.0% 22	13. 9%	14. 2%	12. 0%	18. 0%	14. 7%	12. 6%	13. 4%
	Lu x/	EB ITD A	18 .6	17 .0	35 .0	8.3	11 .5	15 .9	19 .7	25 .8
	Ne the rla nd s	in ma rg	9.5 %	8.3 %	15. 7%	4.3 %	6.3 %	9.7 %	11. 7%	14. 7%
	Cz Re / ec	EB ITD A	44 .2	32 .8	35 .2	25 .4	19 .2	27 .0	32 .6	34 .3
	h p Slo kia va	in ma rg	25 .2%	20 .5%	20 .5%	17. 0%	14. 6%	20 .2%	24 .0%	25 .2%
	Po lan d	EB ITD A	31 .2	33 .4	36 .9	21 .8	27 .1	18 .2	22 .7	23 .4
		in ma rg	25 .7%	25 .8%	26 .6%	20 .0%	26 .8%	20 .4%	20 .4%	24 .6%
	Uk rai ne	EB ITD A	-4. 5	-10 .5	6.9	15 .8	12 .3	11 .0	4.0	12 .8
		in ma rg	-6. 0%	-12 .8%	6.2 %	11. 8%	10. 0%	12. 5%	5.7 %	16. 1%
		EB ITD A	42 .1	39 .7	65 .7	96 .1	92 .6	73 .4	48 .4	43 .2
	Ru ia ss	in ma rg	42 .6%	32 .0%	37 .4%	41 .0%	37 .2%	35 .0%	29 .0%	.0% 28
		EB ITD A	13 1.3	88 .7	71 .4	123 .9	15 1.0	20 7.3	31 1.7	35 6.5
	US A	in ma rg	21 .4%	14. 8%	12. 8%	18. 2%	.7% 20	24 .2%	28 .1%	31 .9%
	Me xic o	EB ITD A	69 .9	.2 77	82 .6	97 .5	77 .5	Ad tio of op
		in ma rg	38 .7%	36 .2%	34 .7%	36 .2%	33 .2%	n S 1 IFR 1
Co	oli da ted	EB ITD A	54 1.7	38 7.0	43 4.3	45 5.1	48 1.2	42 2.7	47 3.2	55 0.6
ns		in ma rg	20 .3%	14 .6%	15 .6%	16 .2%	17 .5%	16 .9%	17 .8%	20 .6%

Italian Equity Conference 2017

New York – 16 November 2017

Cement volumes by geopraphical area