Buzzi Unicem — Interim / Quarterly Report 2019

Apr 14, 2020

Executive Summary

V O L U M E S	C l 2 9. 1 ( 2 7. 9 i 2 0 1 8 ), 4. 3 % h k h h i d i l l t t t t t t t + e m e n v o u m e s a m m n a n s o e p r o g r e s s a c e v e n a o u r , h i t i l l i U S d E t E g e o g r a p e s, p a r c u a r y n a n a s e r n u r o p e R d M i l 1 2. 1 ( 0. 2 % ) t t t + e a y x c o n c r e e v o u m e s a m
F I N A N C I A L S	N l 3, 2 2 1. 4 € ( 2, 8 3. € i 2 0 1 8 ), 1 2. 1 % ( 8. 6 % l f l ), d i b U S A ( 1 6. 2 % ), E t t 7 5 t + + + e s a e s a m m n r v e n y a s e r n E ( 1 6. 1 % ), I t l ( 9. 8 % ) d C t l E ( 5. 3 % ) + + + u r o p e a y a n e n r a u r o p e 2 8. 1 € ( 2 € 2 0 1 8 ), 2 6. 1 % ( 2 2. % f ), 2 € S 1 6 E B I T D A t 7 5 7 7. i 5 l l i l d i 7. 7 I F R i t, + + a m m n n c n g m m p a c u d i b I l E E ( 1 8. 5 % ), C l E ( 1 8. 4 % ) d U S A ( 1 8 % ) t t t + + r v e n y a y, a s e r n u r o p e e n r a u r o p e a n
C S A H G E N E R A T I O N	N h f l f i 5 7 5. 5 € ( 3 3 1. 6 € i 2 0 1 8 ) t t t e c a s o w r o m o p e r a o n s a m m n € € S ( € ) N t D b t t 5 6 7. 8 i l d i 9 3. 9 I F R 1 6 i t 8 9 0. 5 i 2 0 1 8 e e a m n c n g m m p a c m n u ,
N E W B U Y B A C K P R O G R A M	/ A t h i t i b t h B D t h t 7 i l l i d i d i h o r a o n e o o p r c a s e p o m o n o r n a r a n o r s a n g s s a r e u z y u u y v M i i b l h l t 1 4 0 € a x m u m p o s s e p u r c a s e e q u a o m 1 8 f S 's ( 2 0 2 0 ) t h t h h h l d M t i l M m o n s r o m e a r e o e r e e n g a p p r o a a v y

2019 Financial Highlights

Volumes

Price Index by country

In local currency; FY16 = 100

FX changes

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

Results by Geographic Area | Italy & United States of America

• • Growth and results driven by increase in volumes, thanks to scope change, and average prices still improved
• • Other operating revenues of 23.8 €m from CO2emission rights sale within the group.
• • 16% of consolidated net sales and 6% EBITDA

Net sales (€m)

• • Results supported by favorable weather conditions and the appreciation of the dollar
• • Average prices in local currency slight improved
• • Ready-Mix concrete output recorded marked progress (+16.5% YoY in sales)
• • 39% of consolidated net sales and 55% of EBITDA

Results by Geographic Area | Central & Eastern Europe

• Average selling prices improved

Luxembourg stable;

• 26% of consolidated net sales and 17% of EBITDA

• • Results driven by the progress in Ukraine and Russia (volumes increase) and the stabilization in Poland and CzechRepublic;
• • Average selling prices in local currency improved
• • 20% of consolidated net sales and 22% of EBITDA

Results by Geographic Area | Mexico & Brazil (consolidated at equity)

Net Sales by country

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

EBITDA by country

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

EBITDA variance analysis

Net Cash Flow from Operations and Capex Development | €m

Consolidated Income Statement

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

Finance cost details

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

Consolidated Cash Flow Statement

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

Analysis of Net Debt

	G T t l r o u p o a	1, 4 0 3 5.	8 3 7. 5
	L i t h + e a s n g o e r	1 3 8. 7	-
	U S A	-	2 9 3. 3
	G * e r m a n y	1 0 6. 6	2 9 1. 3
	I l t a y	1, 1 6 0. 0	2 2 9 5
E U Rm
		D b t e	C h a s

* incl. affiliates

N t D b t e e	5 6 7. 8
E B I T D A	7 2 8. 1
N i l D b t o m n a e	1, 2 6 6. 6
F i d S d i * x e p e n n g	1, 2 5 7. 5
L i i d i t ( i l. f i l i t i ) q n c a c e s u y	1, 1 5 8. 5

/ N t D b t E B I T D A e e	0. 7 8
/ C N i l D b t h o m n a e a s	1. 5
F i d S d i / L i i d i t x e p e n n g q u y	1. 1

* (personnel and fixed service cost, interest, tax and capex) As of 31.12.2019

Debt Maturity Profile

• Total nominal value of debt and borrowings (except €m 97 leasing), stood at €m 1,266 at December 2019
• As at December 2019 available €m 321m of undrawn committed facilities (€m 300 for Buzzi Unicem, €m21 for Dyckerhoff)

Net Financial Position

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

Gross debt breakdown (1,411.6 €m )

pag ¹⁸ Fixed Income Investors Call | 14 April 2020

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), United States (# 4 cement producer), Germany (# 2 cement producer), joint venture in Mexico and Brazil
• 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"

Shares & Shareholders | Dividend Proposal

Share Capital Ordinary 165,349,149 Savings 40,711,949 Number of shares 206,061,098

As at December ²⁰¹⁹

Cement plants location and capacity

pag ²² Fixed Income Investors Call | 14 April 2020

2019 Consumption vs. Peak

Historical series of cement consumption by country

Historical EBITDA development by country

		2 0 1 1	2 0 1 2	2 0 1 3	2 0 1 4	2 0 1 5	2 0 1 6	2 0 1 7	2 0 1 8	2 0 1 9
I ta ly	EB ITD A	10 3 ,	9 -5,	-18 1 ,	-18 7 ,	-37 2 ,	-22 2 ,	-79 7 ,	-1, 7	43 4 ,
	in ma rg	1, 8%	-1, 2%	-4, 2%	-4, 8%	-9, 8%	-5, 9%	-18 6% ,	-0, 4%	8, 6%
Ge rm an	EB ITD A	90 3 ,	72 2 ,	108 1 ,	88 6 ,	72 1 ,	76 8 ,	78 1 ,	82 5 ,	102 3 ,
y	in ma rg	14 2% ,	12 0% ,	18 0% ,	14 7% ,	12 6% ,	13 4% ,	13 3% ,	13 0% ,	15 1% ,
Lu / x	EB ITD A	35 0 ,	8, 3	11 5 ,	15 9 ,	19 7 ,	25 8 ,	17 6 ,	23 1 ,	22 7 ,
Ne t he lan ds r	in ma rg	15 7% ,	4, 3%	6, 3%	9, 7%	11 7% ,	14 7% ,	9, 4%	11 7% ,	11 8% ,
Cz h Re / ec p	EB ITD A	35 2 ,	25 4 ,	19 2 ,	27 0 ,	32 6 ,	34 4 ,	36 5 ,	43 6 ,	46 3 ,
S lov k ia a	in ma rg	20 5% ,	17 0% ,	14 6% ,	20 2% ,	24 0% ,	25 2% ,	24 7% ,	26 5% ,	27 5% ,
	EB ITD A	36 9 ,	21 8 ,	27 1 ,	18 2 ,	22 7 ,	23 4 ,	24 1 ,	31 9 ,	32 1 ,
Po lan d	in ma rg	26 6% ,	20 0% ,	26 8% ,	20 4% ,	20 4% ,	24 6% ,	24 9% ,	28 6% ,	25 9% ,
	EB ITD A	6, 9	15 8 ,	12 3 ,	11 0 ,	4, 0	12 8 ,	16 0 ,	7, 0	21 0 ,
U kra ine	in ma rg	6, 2%	11 8% ,	10 0% ,	12 5% ,	5, 7%	16 1% ,	16 9% ,	8, 0%	15 9% ,
	EB ITD A	65 7 ,	96 1 ,	92 6 ,	73 4 ,	48 4 ,	43 2 ,	46 0 ,	50 1 ,	57 7 ,
Ru ia ss	in ma rg	37 4% ,	41 0% ,	37 2% ,	35 0% ,	29 0% ,	28 0% ,	24 9% ,	27 0% ,	26 9% ,
	EB ITD A	71 4 ,	123 9 ,	15 1, 0	20 3 7,	31 1, 7	35 6, 5	36 9, 6	34 1, 2	40 2, 7
U S A	in ma rg	12 8% ,	18 2% ,	20 7% ,	24 2% ,	28 1% ,	31 9% ,	33 0% ,	31 9% ,	32 4% ,
	EB ITD	82 6	97 5	77 5
Me ico x	A in ma rg	, 34 7% ,	, 36 2% ,	, 33 2% ,	Ad tion of op IFR S 11
Gr ou p	E B I T D A	4 3 4, 3	4 5 5, 1	4 8 1, 2	4 2 2, 7	4 7 3, 2	5 5 0, 6	5 0 8, 2	5 7 7, 2	7 2 8, 1
	in ma rg	1 5, 6 %	1 6, 2 %	1 7, 5 %	1 6, 9 %	1 7, 8 %	2 0, 6 %	1 8, 1 %	2 0, 1 %	2 2, 6 %