Buzzi Unicem — Interim / Quarterly Report 2018

May 16, 2018

Italian Investment Conference

Executive summary Q1 2018

Volumes

• Quarter impacted by adverse weather, particularly in the USA, and less working days (2017 Holy Week in April): cement down 1.6% (-6.8% on lfl basis) and ready-mix concrete down 6.3% (-8.1% lfl):
• Italy: cement well ahead of 2017 thanks to Zillo contribution; ready-mix down
• United States: cement and ready mix volumes down
• Central Europe: cement volumes decline in Germany and Luxembourg; ready mix concrete unfavorable in Germany but well ahead in Lux/Ned
• Eastern Europe: almost flat, with progress realized in the Czech Republic and Russia nearly offsetting the decrease in Poland and Ukraine; good start to the year for ready mix concrete particularly in the Czech Republic and Ukraine

Prices

• Q1 vs Q1: modest unfavorable variance in the Czech Republic and strengthening in all other markets
• Q1 18 above Q4 17 in all markets except a marginal weakness in the USA
• Foreign Exchange
• Negative impact on sales (€m 36.3) mainly due to weaker dollar
• Results
• Net sales at €m 539 (€m 588 in 2017), -5.2% like-for-like
• Net debt at €m 896 versus €m 863 at year end 2017
• Outlook confirmed for financial year 2018

Volumes Q1 2018

Price trends by country

In local currency; FY14 = 100

FX changes

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

Cement volumes by geopraphical area

Net sales by country

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

EBITDA by country

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

Key economics indicators

Net sales and EBITDA FY 17 development

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

Consolidated Income Statement

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

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

Gross debt breakdown (€m 1,651.7)

pag ¹² Italian Investment Conference | May 16, 2018

Debt maturity profile

• Total nominal value of debt and borrowings stood at €m 1,502 at March 2018
• As at March 2018 available €m 325m of undrawn committed facilities (€m 300m for Buzzi Unicem, €m25 for Dyckerhoff)

Expected trading in 2018

	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

Note: Prices in local currency

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 ec	EB ITD A Re	32 .8	35 .2	25 .4	19 .2	27 .0	32 .6	34 .3	36 .5
h Slo kia va	/ p in ma rg	20 .5%	20 .5%	17. 0%	14. 6%	20 .2%	24 .0%	25 .2%	.7% 24
	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%	20 .4%	20 .4%	24 .6%	24 .9%
	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	32 .0%	37 .4%	41 .0%	37 .2%	35 .0%	29 .0%	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	14. 8%	12. 8%	18. 2%	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%	IFR S 1 1
	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%