Buzzi Unicem — Interim / Quarterly Report 2021

Jun 23, 2021

Executive Summary

V O L U M E S	fo f I ly d U S A l l in Ru ia irm l i d i Ne ive d in he Ea Eu ie d in G Fo t ty t tr t t tr a a n w e p er rm g, s s c o n s s o g a e n o r s er n ro p e a n c ou n s a n er m a ny r Q 1 ho le, lu im d 3. 0 % 6. 2 ( ) t t t a s a c e m e n vo m e s p ro ve + a m o n w 3 dy ix lu ly l ig h ly Re M ( 0. 8 % ) 2. 5 t t t + a c o nc re e vo m e s o n s u p a m m
C S P R I E	l l fa b le ia he b d in lo l ie icu la ly in la d d Ov Po G t t er a vo ra va r nc e a cr o s s o ar c a cu rre nc s, p ar r n a n er m a ny
F O R E I G N E X C H A N G E	d dv le fro ke d l la hr d b le € 3 7. 2 is Ne ia t t m a a n a g e o n s a s m w e a r o r, y vn a n ru
F I N A N C I A L S	f le € 6 8 3 € 6 8 8 in 2 0 2 0 -0 8 % % l l i h ive ia in S % G 1. % d Ne ( ), ( 4. 5 ), U A (- 4. 5 ), (- 4 ) Ea t t t t t s a s a m m + w ne g a v ar nc e er m a ny a n s er n fo 1 % i ive in ly 2 0. % d lu 6. 3 % Eu (- 5. 4 ). Po I ( 7 ) Be ( ) t t ro p e s p er rm a nc e a + a n ne + x b d Ne De € 2 3 1 v € 2 4 2 2 0 2 0 t t t t a m er su s m a y e ar e n

Q1 21 Highlights

Volumes

Price Index by country

FX changes

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

Analysis by geographical region – Italy and USA

Italy

• Cement volumes clearly up compared to Q1 20, affected by the country lockdown, thanks to the stronger demand, driven by the positive dynamics of the residential renovation and public works. Ready-mix production recorded an even more marked recovery
• Favourable trend for selling prices
• 20% of consolidated Q1 net sales (17% in Q1 20)

USA

• Cement volumes up, despite unfavourable weather conditions in February, particularly in Texas. Ready-mix more penalized by the cold
• Average selling prices in local currency showed a slight growth
• Q1 net sales +4.3% lfl
• 38% of consolidated Q1 net sales (40% in Q1 20).

E U Rm	Q 1 2 1	Q 1 2 0	% ∆	f l l % ∆
Sa les Ne t	2 6 1. 3	2 3. 7 7	( 4. 5 )	3 4. +

138.5 114.7 +20.7 -

∆% ∆lfl %

Q1 21 Q1 20

EURm

Net Sales

Analysis by geographical region – Central and Eastern Europe

Central Europe

lu do in du dv he d i io Ce Ge t to t t m en vo m es wn rm an y e a er se we a r co n ns i ive fo in bo dy ix ho Po Lu Re t te s er rm an ce xe m ur a -m co nc re s we		E U Rm	Q 1 2 1	Q 1 2 0	% ∆	f l l % ∆
	d p g. a l ig h io t tra t s co n c n	Ne Sa les t	1 8 5. 0	1 8 4. 4	0. 3 +	-
	de lo Po i ive ic ing t t s p r ve p m en
	f c l da d les 2 7 % i Q 1 ( 2 7 % in Q 1 2 0 ) te t s o on so ne a
	E E t a s e r n u r o p e
Ce lu im d in ia, ha ks bu de d, bu Ru t t to t t m en vo m es p ro ve ss n ro s m an		E U Rm	Q 1 2 1	Q 1 2 0	% ∆	l f l % ∆
	is i b ly d in lan d, Cz h b l ic d kr ine dy ix Po Re U Re tra te v co n c ec p u an a a -m do wn	Sa les Ne t	9 9. 1	1 1 1 7.	1 ( 5. 4 )	3. 9 ( )
	l l ing ice in loc l im d, in kr ine Av U t er ag e se p r s a cu rre nc p ro ve ex ce p a y
	f c l da d les 1 5 % i Q 1 ( 1 7 % in Q 1 2 0 ) te t s o on so ne a

Analysis by geographical region – Mexico and Brazil (valued at equity)

i M e x c o
i ive d in lu h i le dy ix ine d Po t tre t te s n ce m en vo m es w re a -m co nc re re m a ,	E U Rm	Q 1 2 1	Q 1 2 0	% ∆	f l l % ∆
b le ta s	Sa les Ne t (1 00% )	1 6 0. 7	1 4 7. 7	8. 8 +	2 0. 8 +
loc l d Pr ice in im s, a cu rre nc y, p ro ve
fro he de f he Ne ive im ia io M ica t t t t t g a p ac m p re c n o ex n p es o. les l f l Q 1 2 0. 8 % t s ne a +
i l B r a z
Ce lu ho ke ha ks i t to t m en vo m es s we m ar p ro g re ss n p os	E U Rm	Q 1 2 1	Q 1 2 0	% ∆	l f l % ∆
d d ive t de lo in io iv i icu lar ly in he i de ia l ts tru t t ty t t t ve p m en co ns c n ac p ar re s n , to se c r	les Ne Sa t ( 100 %)	3 9. 6	2 8. 8	3 7. 4 +	8 4. 4 +
d l l loc l S in ing ice in tro tre ng n se p s, a cu rre nc r y

Net sales by country

Q 1 2 1	Q 1 2 0	∆	∆	Fo re x	Sc op e	l- f- l ∆
		bs a	%	bs a	bs a	%
1 3 8. 5	1 1 4. 7	2 3. 8	2 0. 7 +	-	-	2 0. 7 +
1. 2 6 3	2 7 3. 7	1 ( 2. 4 )	-4 5	( 2 4. 2 )	-	4. 3 +
1 2 4 7.	1 9. 3 4	2. 1 ( )	-1 4	-	-	-1 4
3. 4 7	1. 2 4	2. 5	6. 3 +	-	-	6. 3 +
2 8. 0	3 0. 5	( 2. 5 )	-8 4	( 0. 4 )	-	-7 0
1 7. 6	2 4. 8	( 7. 2 )	-2 8. 8	( 0. 9 )	-	-2 5. 2
1 6. 3	2 2. 1	( 5. 8 )	-2 5. 9	( 3. 6 )	-	-9 8
3 7. 6	4 0. 3	( 2. 7 )	-6 6	( 8. 1 )	-	1 3. 5 +
( 7. 6 )	( 8. 1 )	( 0. 5 )	-6 1
6 8 2. 6	6 8 8. 5	( 5. 9 )	0. 8 -	( 3 7. 2 )	-	4. 5 +
1 6 0. 7	1 4 7. 7	1 3. 0	8. 8 +	( 1 7. 7 )	-	2 0. 8 +
3 9. 6	2 8. 8	1 0. 8	3 7. 4 +	( 1 3. 5 )	-	8 4. 4 +

Net Financial Position

	M 2 1 ar	De 2 0 c	∆	M 2 0 ar
E U Rm			bs a
h d he f in ia l a C t t a s a n o r a nc s s e s	1, 0 6 5. 5	1, 2 2 0. 9	( 1 5 5. 4 )	9 0 9. 4
ho d b S t- t t r er m e	( 5 0. 9 )	( 2 1 4. 2 )	1 6 3. 3	( 5 1. 8 )
ho le in S t- t r er m a s g	2 1. ( 5 )	2 1. ( 4 )	0. 0	( 2 2. 9 )
ho h N t t- t e s r er m c a s	9 9 3. 1	9 8 3 5.	8 7.	8 3 4. 7
f in ia l a Lo -t t ng er m a nc s s e s	1 1. 4	1 1. 0	0. 4	2. 8
d b Lo -t t ng er m e	( 1, 1 6 7. 7 )	( 1, 1 7 3. 4 )	5. 7	1, 2 8 2. 9 ( )
le in Lo -t ng er m a s g	( 6 7. 5 )	( 6 4. 5 )	( 3. 0 )	( 7 9. 8 )
d b N t t e e	( 2 3 0. 7 )	( 2 4 1. 6 )	1 0. 9	( 5 2 5. 2 )

Gross debt breakdown ( 1,307.6 €m )

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), material joint venture assets 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

Cement ^plants location and capacity

2020 Financial Highlights

Specific Net CO² emissions: What we have achieved so far

Our achievements so far By 2020, we have reduced by approx. 17% the specific net CO2 emissions compared to ¹⁹⁹⁰ level (plants taken into consideration according to SBTI methodology)

Reduction's drivers:

• Higher alternative fuels utilization
• Thermal energy optimization
• Lower clinker to cement ratio
• Improved technologies

CO2Intensity emission index by country: 2020 vs 1990

Capex requirements for decarbonization over the next 5 years

• Over the next 5 years, Buzzi Unicem will be involved in more than 100 initiatives aiming to reduce CO² emissions
• This ^plan leads to CO² specific capex per year equa^l to approx 10-15% of the annual avg capex spending

CO2 Capex breakdown by initiatives

• Approx. 75% of CO² specific capex will be dedicated to initiatives with high short therm potential of CO² reduction, such as: increasing fuel substitution, reducing clinker content in cement, in-house production of electrical power and reducing CO² intensity in energy consumption
• Within R&D-Pilot Testing category, the most important initiative will be CCU/S

Historical EBITDA development by country

		20 11	20 12	20 13	20 14	20 15	20 16	20 17	20 18	20 19	20 20
	EB ITD A	10 .3	-5. 9	-18 .1	-18 .7	-37 .2	-22 .2	-79 .7	-1. 7	43 .4	33 .8
ly Ita	in ma rg	1.8 %	-1.2 %	-4.2 %	-4.8 %	-9.8 %	-5.9 %	-18 .6%	-0.4 %	8.6 %	6.8 %
	EB ITD A	90 .3	72 .2	108 .1	88 .6	72 .1	76 .8	78 .1	82 .5	102 .3	12 3.8
Ge rm an y	in ma rg	14. 2%	12. 0%	18. 0%	14. 7%	12. 6%	13. 4%	13. 3%	13. 0%	15. 1%	17. 3%
Lux / Ne the rla nd s	EB ITD A	35 .0	8.3	11 .5	15 .9	19 .7	25 .8	17 .6	23 .1	22 .7	21 .7
	in ma rg	15. 7%	4.3 %	6.3 %	9.7 %	11. 7%	14. 7%	9.4 %	11. 7%	11. 8%	11. 3 %
Cz ech Re / p	EB ITD A	35 .2	25 .4	19 .2	27 .0	32 .6	34 .4	36 .5	43 .6	46 .3	46 .8
Slo kia va	in ma rg	20. 5%	17. 0%	14. 6%	20. 2%	24. 0%	25. 2%	24. 7%	26. 5%	27. 5%	29. 4%
	EB ITD A	36 .9	21 .8	27 .1	18 .2	22 .7	23 .4	24 .1	31 .9	32 .1	35 .3
lan d Po	in ma rg	26. 6%	20. 0%	26. 8%	20. 4%	20. 4%	24. 6%	24. 9%	28. 6%	25. 9%	29. 9%
	EB ITD A	6.9	15 .8	12 .3	11 .0	4.0	12 .8	16 .0	7.0	21 .0	21 .9
Uk rai ne	in ma rg	6.2 %	11. 8%	10. 0%	12. 5%	5.7 %	16. 1%	16. 9%	8.0 %	15. 9%	18. 9%
	EB ITD A	65 .7	96 .1	92 .6	73 .4	48 .4	43 .2	46 .0	50 .1	57 .7	52 .9
Ru ssi a	in ma rg	37. 4%	41. 0%	37. 2%	35. 0%	29. 0%	28. 0%	24. 9%	27. 0%	26. 9%	28. 3%
	EB ITD A	71 .4	12 3.9	15 1.0	20 7.3	31 1.7	35 6.5	36 9.6	34 1.2	40 2.7	44 4.2
US A	in ma rg	12. 8%	18. 2%	20. 7%	24. 2%	28. 1%	31. 9%	33. 0%	31. 9%	32. 4%	35. 2%
To tal	EB ITD A	35 1.7	35 7.6	40 3.7	42 2.7	47 3.2	55 0.6	50 8.2	57 7.2	72 8.1	78 0.8
S r ing ( IFR ort ) ep	in ma rg	13. 8%	14. 1%	16. 0%	16. 9%	17. 8%	20. 6%	18. 1%	20. 1%	22. 6%	24. 2%
	EB ITD A	82 .6	97 .5	77 .5	93 .9	128 .1	146 .7	164 .6	144 .5	126 .1	132 .5
xic Me o ( 50 %)	in ma rg	34. 7%	36. 2%	33. 2%	36. 0%	40. 9%	48. 2%	48. 0%	46. 3%	42. 5%	46. 2%
zil Bra ( 50 %)	EB ITD A								15 .9	11 .7	24 .0
	in ma rg								23. 9%	17. 4%	34. 5%
tal To	EB ITD A	43 4.3	45 5.1	48 1.2	51 6.6	60 1.3	69 7.3	67 2.8	72 1.7	86 5.9	93 7.3
ion al tho d) (pr ort op me	in ma rg	14. 4%	14. 8%	17. 5%	18. 7%	20. 2%	23. 5%	21. 4%	22. 7%	24. 2%	26. 2%

Net Cash Flow from Operations and Capex development | €m

2020 cement consumption vs pea^k

Historical series cement consumption by country