Buzzi Unicem — Investor Presentation 2017

Apr 6, 2017

Engineering & Construction Conference

Milan – ⁶ April 2017

Executive summary FY 2016

Volumes

• Cement down 2.2% in Q4 and flat YTD (+0.3); ready-mix concrete flat YTD
• Italy: poor results in Q4 (cement -8.8%) and YTD (-6.2%), with export materially declining; ready-mix gaining some momentum (+8.2%YTD), supported by business combinations
• United States: volumes down in Q4 (cement -4.9%) and YTD (cement -1.7%); ready mix also suffering due to South East Texas exposure (-9.8% YTD)
• Central Europe: favorable trend confirmed in Q4 (cement +2.3%) and YTD (cement +4.3%); ready mix concrete up in Germany (+1.6%) and stable in Benelux (+0.3%)
• Eastern Europe: positive Q4 (cement +1.8%), particularly in Poland and the Czech Republic; cement up 3.3% in the period, mainly due to Poland (+11.9%), Czech Republic (+4.4%) and Ukraine (+4.0%); almost flat sales in Russia (-1.0%), but Q4 up 2.6%

Prices

• Q4: positive development in Ukraine only
• FY16: sound increase in USA and Ukraine (local currency); unfavorable variance in Poland, to a minor extent also in Central Europe; stable or marginal weakness in other markets

Foreign Exchange

• Negative impact on sales (€m 27.4) and EBITDA (€m 5.8) due to weaker ruble and hryvnia
• Results
• Net sales at €m 2,669 (€m 2,662 in 2015)
• EBITDA reported at €m 551 (also recurring) versus €m 473 (recurring €m 479), supported by enduring low energy costs

Volumes

Price trends by country

In local currency; FY13 = 100

FX changes

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

Net sales by country

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

EBITDA by country

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

Net sales and EBITDA 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

EBITDA variance analysis

EBITDA bridge by region

Energy costs impact

Consolidated Income Statement

	2 0 1 6	2 0 1 5	∆	∆
E U R m			b a s	%
N S l t 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 h f l ( 1 ) a s o w	3 1. 3 5	3 3 3 7	1 4 0	4 2 +

(1) Net Profit + amortization & depreciation

Consolidated Cash Flow Statement

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

Net Financial Position

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

Gross debt breakdown (€m 1,564.4)

Expected trading in 2017

	V l ∆ o m e u	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 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

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

MexicoGermanyItalyPolandUkraineCzech Rep.m ton ^{2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016} United StatesRussiam ton

^{2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016}

Historical series of cement consumption by country

pag ²⁰ Engineering & Construction Conference | April 6, 2017

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	9 -5.	-18 .1	-18 .7	-37 .2	-22 .2
		in ma rg	13. 1%	5.3 %	% 1.8	-1. 2%	-4. 2%	8% -4.	8% -9.	-5. 9%
	Ge rm an y	EB ITD A	116 .3	76 .3	90 .3	72 .2	108 .1	88 .6	72 .1	76 .8
		in ma rg	22 .0%	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%	.8% 26	.4% 20	20 .4%	.6% 24
		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	.6% 42	32 .0%	.4% 37	.0% 41	.2% 37	.0% 35	29 .0%	28 .0%
		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	.4% 21	14. 8%	8% 12.	18. 2%	20 .7%	24 .2%	28 .1%	31 .9%
		EB ITD A	69 .9	77 .2	82 .6	97 .5	77 .5	of Ad tio op
	Me xic o	in ma rg	38 .7%	36 .2%	34 .7%	36 .2%	33 .2%	n IFR S 1 1
Co	oli da ted	EB ITD A	54 1.7	38 7.0	43 4.3	45 5.1	48 1.2	42 2.7	47 3.2	0.6 55
ns		in ma rg	.3% 20	.6% 14	15 .6%	.2% 16	17 .5%	.9% 16	.8% 17	20 .6%