Buzzi Unicem — Investor Presentation 2015

Apr 15, 2015

Investors Roadshow

London – 15 April 2015

Volumes

Cement volumes and prices

Price trends by country

FX changes

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

Revenues and EBITDA breakdown

Net sales by country

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

EBITDA by country

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

EBITDA recurring by country

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

EBITDA variance analysis

EBITDA bridge

Energy costs impact

Consolidated Income Statement

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

(1) Net Profit + amortization & depreciation

Net Financial Position

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

Gross debt breakdown (€m 1,501.8)

pag ¹³ London Roadshow | April 15, 2015

Consolidated Cash Flow Statement

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

Debt maturity profile (nominal values)

• Total debt and borrowings stood at €m 1,463 at December 2014
• As at December 2014 available €m 584m of undrawn committed facilities (€m 500m for Buzzi Unicem, €m 84 for Dyckerhoff)

Financial condition

Industrial capex summary

In the period 2007-2014 equal to €m 2,992, of which €m 1,010 for expansion projects

Recent strategic move: offer to purchase Sacci 1/3

• 1Active role in the consolidation process of the domestic industry
• 2 Easier to adjust production capacity in a less fragmented market
• Rationale
• 3 Domestic consumption at extremely low level (trough?) with chances to rebound
• 4Operating leverage thanks to greater capacity utilization

• 5 Regain economic balance and gradual recovery of profitability in Italy

• One of the major players of the cement sector in Italy

• Operating in the central and northern regions of the country
• Market shares estimated at 6%
• Adequate vertical integration in the ready-mix concrete industry, especially in the central regions
• Minority active investments in Cementerie Aldo Barbetti (Umbria) and Cementeria Costantinopoli (Basilicata)

• 1.2 m ton estimated cement sales in 2014

Recent strategic move: offer to purchase Sacci 2/3

• March 18, 2015 Buzzi Unicem has submitted to the controlling shareholders ^a binding offer to acquire a 99,5% interest in the share capital of Sacci SpA
• Sacci is currently involved in a debt restructuring agreement (article 182-bis of the Bankruptcy Law)
• The offer provides the simultaneous relief of all the outstanding liabilities resulting from the previous debt restructuring agreement
• The financial commitment amounts to euro 120m, plus earn-out clause
• March 27, 2015 the controlling shareholders have accepted the binding offer of Buzzi Unicem
• The execution of the contract is subject both to the endorsement of the banks and creditors that take part in the debt restructuring agreement and the approval of the transaction by the Italian Antitrust Authority

Recent strategic move: offer to purchase Sacci 3/3

Appendix

pag ²¹ London Roadshow | April 15, 2015

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 (# 5 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

Expected trading in 2015

	V l ∆ o m e u	P i ∆ r c e
I l t a y
U i t d S t t f A i n e a e s o m e r c a
G e r m a n y
L b u x e m o u r g
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 c o x

2014 Consumption vs. Peak (2003-2014 est.)

Historical EBITDA development by country

EU Rm			20 07	20 08	20 09	20 10	20 11	20 12	20 13	20 14
	Ita ly	EB ITD A	20 6.4	143 .4	92 .7	32 .5	10 .3	-5. 9	-18 .1	-18 .7
		in ma rg	21 .5%	16. 9%	13. 1%	5.3 %	1.8 %	-1. 2%	-4. 2%	-4. 8%
	Ge rm an y	EB ITD A	138 .9	102 .7	116 .3	76 .3	90 .3	72 .2	108 .1	88 .6
		in ma rg	27 .0%	17. 3%	22 .0%	13. 9%	14. 2%	12. 0%	18. 0%	14. 7%
	Lu mb xe ou	EB ITD A	21 .5	17 .4	14 .1	16 .4	33 .4	13 .8	19 .7	17 .8
	rg	in ma rg	23 .5%	19. 5%	0% 17.	7% 17.	.6% 29	13. 3%	18. 1%	16. 8%
	Ne the rla nd s	EB ITD A	8.1	7.2	4.5	0.6	1.6	-5. 5	-8. 2	-1. 9
		in ma rg	% 5.8	% 5.4	4.0 %	0.5 %	1.4 %	-6. 3%	-11 .3%	3% -3.
	Cz h R ec ep	EB ITD A	70 .3	73 .2	44 .2	32 .8	35 .2	25 .4	19 .2	27 .0
		in ma rg	32 .6%	28 .1%	25 .2%	20 .5%	20 .5%	17. 0%	14. 6%	20 .2%
	Po lan d	EB ITD A	52 .1	70 .0	31 .2	33 .4	36 .9	21 .8	27 .1	18 .2
		in ma rg	36 .5%	38 .1%	25 .7%	25 .8%	26 .6%	20 .0%	26 .8%	20 .4%
	Uk rai	EB ITD A	58 .1	49 .9	-4. 5	-10 .5	6.9	15 .8	12 .3	11 .0
	ne	in ma rg	32 .4%	23 .8%	-6. 0%	-12 .8%	6.2 %	11. 8%	10. 0%	12. 5%
	Ru ia	EB ITD A	94 .7	173 .2	42 .1	39 .7	65 .7	96 .1	92 .6	73 .4
	ss	in ma rg	47 .9%	64 .8%	42 .6%	32 .0%	37 .4%	41 .0%	37 .2%	35 .0%
	US A	EB ITD A	304 .1	20 5.8	13 1.3	88 .7	71 .4	123 .9	15 1.0	20 7.3
		in ma rg	35 .7%	27 .4%	21 .4%	14. 8%	12. 8%	18. 2%	20 .7%	24 .2%
	Me xic o	EB ITD A	91 .9	79 .9	69 .9	.2 77	82 .6	97 .5	77 .5	Ad tio f op n o
		in ma rg	.4% 43	.9% 38	38 .7%	36 .2%	34 .7%	.2% 36	.2% 33	S 1 IFR 1
		EB ITD A	104 6.3	92 2.7	54 1.7	38 7.0	43 4.3	45 5.1	48 1.2	42 2.7
	Gr ou p	in ma rg	29 .9%	26 .2%	.3% 20	14 .6%	15 .6%	16 .2%	17 .5%	16 .9%