Buzzi Unicem — Investor Presentation 2017

Jun 14, 2017

Investor Roadshow

London – 14 June 2017

Executive summary Q1 2017

Volumes

• – Cement up 4.5%, facilitated by additional working days (2016 Eastern in march), thanks to a good start to the year in Germany and in Italy, and positive growth in all other markets with the exception of Russia; ready-mix concrete up 9.1%
• – Italy: cement up, with positive domestic shipments and especially export and clinker; ready-mix up favored by positive change of scope in the Milan area
• – United States: confirmed the 2016 brilliant start to the year; upswing in oil-well cement shipments; ready mix still suffering
• Central Europe: encouraging robust pace, particularly in Germany
• Eastern Europe: overall slightly positive, thanks to the expansion in Czech Republic, Ukraine and Poland which more than offset the slowdown in Russia

Prices

• – Q1 vs Q1: unfavorable variance in Italy and Germany, to a minor extent also in Czech Republic; favorable in the United States and Ukraine; stable or marginal strengthening in other markets
• Q1 17 flat or above Q4 16 in all markets

Foreign Exchange

• Positive impact on sales (€m 16.8) due to a stronger dollar and ruble
• Results
• –Revenues at €m 588.5 versus €m 540.3 in Q1 2016
• Outlook confirmed for financial year 2017

Volumes Q1 2017

FX changes

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

Net sales by country

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

Net Financial Position

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

Gross debt breakdown (€m 1,598.1)

Debt maturity profile

• Total nominal value of debt and borrowings stood at €m 1,471 at March 2017
• As at March 2017 available €m 329m of undrawn committed facilities (€m 300m for Buzzi Unicem, €m29 for Dyckerhoff)

Expected trading in 2017

	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

Cement volumes by geopraphical area

Price trends by country

In local currency; FY13 = 100

EBITDA by country

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

Key economics indicators

Net sales and EBITDA FY 16 development

• USA still accounts for 2/3 of the consolidated EBITDA
• Decreasing contribution from emerging markets, from 22% to 21% of EBITDA (was 33% in 2014) due to forex and weaker Russian contribution

Consolidated Income Statement

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

(1) Net Profit + amortization & depreciation

Consolidated Cash Flow Statement

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

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

2016 Consumption vs. Peak

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Historical series of cement consumption by country

Historical EBITDA development by country

EU Rm			20 09	20 10	20 11	20 12	20 13	20 14	20 15	20 16
	Ita ly	EB ITD A	92 .7	32 .5	10 .3	-5. 9	-18 .1	-18 .7	-37 .2	-22 .2
		in ma rg	13. 1%	5.3 %	1.8 %	-1. 2%	-4. 2%	-4. 8%	-9. 8%	9% -5.
	Ge rm an	EB ITD A	116 .3	76 .3	90 .3	72 .2	108 .1	88 .6	72 .1	76 .8
	y	in ma rg	.0% 22	13. 9%	14. 2%	12. 0%	18. 0%	14. 7%	12. 6%	13. 4%
	Lu x/	EB ITD A	18 .6	17 .0	35 .0	8.3	11 .5	15 .9	19 .7	25 .8
	Ne the rla nd s	in ma rg	9.5 %	8.3 %	15. 7%	4.3 %	6.3 %	9.7 %	11. 7%	14. 7%
	Cz Re ec	EB ITD A	44 .2	32 .8	35 .2	25 .4	19 .2	27 .0	32 .6	34 .3
	h / p Slo kia va	in ma rg	25 .2%	20 .5%	20 .5%	17. 0%	14. 6%	20 .2%	24 .0%	25 .2%
		EB ITD A	31 .2	33 .4	36 .9	21 .8	27 .1	18 .2	22 .7	23 .4
	Po lan d	in ma rg	25 .7%	25 .8%	26 .6%	20 .0%	26 .8%	20 .4%	20 .4%	24 .6%
		EB ITD A	-4. 5	-10 .5	6.9	15 .8	12 .3	11 .0	4.0	12 .8
	Uk rai ne	in ma rg	-6. 0%	-12 .8%	6.2 %	11. 8%	10. 0%	12. 5%	5.7 %	16. 1%
		EB ITD A	42 .1	39 .7	65 .7	96 .1	92 .6	73 .4	48 .4	43 .2
	Ru ia ss	in ma rg	42 .6%	32 .0%	37 .4%	41 .0%	37 .2%	35 .0%	29 .0%	.0% 28
		EB ITD A	13 1.3	88 .7	71 .4	123 .9	15 1.0	20 7.3	31 1.7	35 6.5
	US A	in ma rg	21 .4%	14. 8%	12. 8%	18. 2%	.7% 20	24 .2%	28 .1%	31 .9%
		EB ITD A	69 .9	.2 77	82 .6	97 .5	77 .5	Ad tio of op
	Me xic o	in ma rg	38 .7%	36 .2%	34 .7%	36 .2%	33 .2%	n S 1 IFR 1
Co		EB ITD A	54 1.7	38 7.0	43 4.3	45 5.1	48 1.2	42 2.7	47 3.2	55 0.6
ns	oli da ted	in ma rg	20 .3%	14 .6%	15 .6%	16 .2%	17 .5%	16 .9%	17 .8%	20 .6%

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