Buzzi Unicem — Interim / Quarterly Report 2022

Aug 3, 2022

• 1. TRADING BY GEOGRAPHIC AREAS
• 1. OUTLOOK
• APPENDIX

H1 2022 HIGHLIGHTS

NFP (€m)

H1 2022 IN BRIEF

Overall stable demand across the regions. High inflation and uncertainties started to have an impact, mainly in Europe

Sequential double-digit prices increases implemented in every country with Italy, Eastern Europe and USA leading the way

Price over cost negative in H1 but prices started to catch up in Q2

Strong net sales growth (+12.1% lfl) in all regions, driven by solid pricing.

EBITDA just slightly down lfl vs H1 ²⁰²¹ due to higher costs (energy +70%)

• Net cash position at ¹¹⁴ €m, improved vs Q1 but still lower vs ²⁰²¹ due to the spike in working capital and share buyback
• Revised guidance for 2022: Recurring EBITDA to possibly reach ^a level similar to ²⁰²¹

H1 2022- CEMENT AND RMX VOLUMES VARIANCE

3

(mm³ )

H1 22

-5.6%

ENERGY COSTS IMPACT

Total energy (excl. Russia)

Energy cost (€m)

Energy cost / Revenues*

Power & Fuel (excl. Russia)

EBITDA VARIANCE ANALYSIS

EURm

ITALY

• Demand slowed down in Q2 due to strong inflation and postponement of private investments.
• Production costs significantly rose (fuels and power more than doubled)
• Sequential price increases implemented in Q1 and Q2
• Negative price/costs but prices are catching up
• EBITDA moved slightly up thanks to rmx contribution and benefit from the tax credit (+13 €m)

E U Rm	H 1 2 2	H 1 2 1	D %	l- f- l D %
l N S t e a e s	3 5 7. 9	3 0 5. 6	1 7. 1 +	1 7. 1 +
E B I T D A	3 5. 6	3 2. 7	8. 9 +	8. 9 +
i % E B I T D A ( ) m a r g n	9. 9	1 0. 7

Net Sales variance

EURm

USA

• Demand remained lively during H1 still supported by the activity in residential sector.
• Cement volumes improved (+2.6%). Shortage of drivers continued to penalize readymix volumes (-6.7%).
• Significant increase in cost items, fixed as well as variable (mainly energy and maintenance costs)
• Material improvement in selling prices: first round implemented in January (april in Texas). Second price increase in the pipeline (Q3)
• More than 80% of production already switched to Type 1L in June

E U Rm	H 1 2 2	H 1 2 1	D %	l- f- l D %
l N S t e a e s	7 2 6. 5	5 9 9. 0	2 1. 3 +	1 0. 0 +
E B I T D A	1 8 0. 6	1 1. 8 6	-0 6	-9 8
i E B I T D A ( % ) m a r g n	2 4. 9	3 0. 3

Net Sales variance

CENTRAL EUROPE

• Cement volumes showed positive development (+6.4%), despite some slowdown of the demand during Q2. Rmx overal positive (+7.6%)
• Significant rise in production costs (mainly power and fuels) in Benelux; Germany more under control, thanks to high AFs and partial hedging
• Solid pricing with sequential increases in Q1 and Q2
• Price over cost stable in H1

	1 2 1 H	D %	f- l- l D %
4 9 2. 5	4 2 8. 5	1 4. 9 +	1 5. 3 +
6 9. 3	6 7. 5	2. 7 +	2. 9 +
1 4. 1	1 5. 7
	1 2 2 H

Net Sales variance

EASTERN EUROPE

• After a positive start, activity in the constructionsector slowed down in Q2 in Poland and Czech Rep. Favorable cement volumes in H1 in both countries
• In Ukraine, commercial and production activity restarted in April only in Volyn (NW of the country). Cement volumes in H1 substantially halved.
• Solid price increases.
• Positive contribution from Fx

E U Rm	H 1 2 2	H 1 2 1	D %	l- f- l D %
S l N t e a e s	3 0 0 7.	2 8. 3 7	1 0. 3 +	6. 9 +
E B I T D A	7 9. 5	7 0. 4	1 2. 9 +	9. 3 +
i % E B I T D A ( ) m a g n r	2 9 5.	2 3 5.

Net Sales variance

EURm

MEXICO AND BRAZIL

Mexico

• Weak investment activity and challenging comps led do some contraction in domestic demand (cement volumes -12%)
• Higher Fuels costs drove up production costs
• Price over cost stable in H1, slightly negative in Q2
• Tougher environment, but still best margins across the regions

E U Rm	1 H 2 2	1 1 H 2	D %	l- f- l D %
l N S t ( 1 0 0 % ) e a e s	3 5 3. 1	3 3 7. 1	4. 7 +	-4 6
E B I T D A ( 1 0 0 % )	1 9. 4 5	1 0. 9 5	-0 9	-9 7
E B I T D A i ( % ) m a r g n	4 2. 3	4 4. 8

Brazil

• Cement volumes steady on a lfl basis, in line with domestic demand.
• Higher productions costs driven by power and fuels
• Significant rise in selling prices
• Price over cost still negative but the gap is closing

E U Rm	H 1 2 2	H 1 2 1	D %	l- f- l D %
l N S 1 0 0 % t ( ) e a e s	1 7 9. 6	1 0 6. 4	6 8. 7 +	1 3. 4 +
E B I T D A ( 1 0 0 % )	4 6. 6	3 7. 0	2 6. 0 +	-8 0
i E B I T D A % ( ) m a r g n	2 5. 9	3 4. 8

2022 OUTLOOK

During H2, construction activity in Italy and Central Europe may be penalized by less favorable development in the residential sector, which bears the higher financing and construction costs, and some delays in the implementation of infrastucture ^plans. Construction activity in the USA expected to continue to be lively.

Selling prices should continue to fuel revenue growth in H2

• Production costs expected to remain at record level but in H2 comps should be easier (except for Italy)
• Thanks to better visibility on the year, guidance raised compared to previous indications: ²⁰²² recurring EBITDA expected to be in line with ²⁰²¹

H1 2022 VOLUMES

PRICE INDEX BY COUNTRY

FY 2016=100

FX CHANGES

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

NET SALES BY COUNTRY

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

EBITDA BY COUNTRY

	1 2 0 2 2 H	1 2 0 2 1 H	∆	∆	F o r e x	S c o p e	f- l- l ∆
E U Rm			bs a	%	bs a	bs a	%
l I t a y	3 5. 6	3 2. 7	2. 9	8. 9 +	-	-	8. 9 +
i d S U t t t n e a e s	1 8 0. 6	1 8 1. 6	1. 0 ( )	-0 6	1 6. 8	-	-9 8
G e r m a n y	6 4. 5	6 0. 6	3. 9	6. 5 +	-	-	6. 5 +
h l d L / N t u x e e r a n s	4. 8	6. 9	1 ( 2. )	-3 0. 0	-	1 ( 0. )	-2 9. 2
h l k i C R / S z e c e p o v a a	2 9. 4	2 3. 4	5. 9	2 5. 4 +	1. 4	-	1 9. 6 +
l d P o a n	1 6 7.	1 6. 2	1. 4	8. 8 +	0. ( 4 )	-	1 1. 2 +
k i U a n e r	-3 5	6 5.	9. 1 ( )	n. s.	0. 2 ( )	-	n. s.
i R u s s a	3 6. 0	2 2 5.	1 0. 8	3. 0 4 +	1. 7	-	3 6. 4 +
d j A tm ts us en	0. 1	0. 3
l T t o a	3 6 1 5.	3 2. 5 5	1 2. 6	3. 6 +	1 9. 2	0. 1 ( )	1. 9 -
i M ( 1 0 0 % ) e x c o	1 4 9. 5	1 5 0. 9	( 1. 4 )	-0 9	1 3. 3	-	-9 7
i l B ( 1 0 0 % ) r a z	4 6. 6	3 7. 0	9. 6	2 6. 0 +	6. 7	( 5. 9 )	-8 0

CONSOLIDATED INCOME STATEMENT

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

CONSOLIDATED CASH FLOW STATEMENT

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

NET FINANCIAL POSITION

	Ju 2 2 n	De 2 1 c	∆	Ju 2 1 n
E U Rm			bs a
h d he f l a Ca ina ia t ts s an o r nc ss e	1, 0 6 2. 3	1, 2 0 7. 5	( 1 4 5. 2 )	9 5 1. 8
ho de b S t- te t r rm	1. ( 6 2 6 )	1 1 ( 5 5. )	( 4 6 6. 5 )	1 ( 0 2. 2 )
ho lea S ing t- te rm s r	( 2 3. 6 )	( 2 2. 5 )	( 1. 2 )	( 2 1. 1 )
ho h Ne t s t- te r rm ca s	1 1 4 7.	1, 0 2 9. 9	6 1 2. 8 ( )	8 2 8. 5
f ina ia l a Lo -te ts ng rm nc ss e	2 6 7. 3	2 5 2. 3	1 5. 0	2 1 4. 8
de b Lo -te t ng rm	1 2. 0 ( 5 )	9 9 0. 9 ( )	8. 9 4 7	1, 0 8 0 ( 7. )
lea ing Lo -te ng rm s	( 5 8. 2 )	( 5 5. 8 )	( 2. 4 )	( 6 5. 0 )
de b Ne t t	1 1 2 4.	2 3 5. 5	1 2 1. 3 ( )	1 0 8. 8 ( )
	de b br Gr t os s	k do ( 1. 2 1 5, 4 €m ) ea wn