Buzzi Unicem — Investor Presentation 2019

Sep 27, 2019

Italian Conference 2019

Milan – 27 September 2019

Executive summary H1 2019

Volumes

• – Cement stable in Q2 (+0.7%) and up +7.1% YTD (+6.3% lfl)
• – Q2 with volume reduction in Poland, Luxembourg, Czech Republic; weak results in Italy and in the USA; instead the trend was positive in Ukraine, Russia and Germany
• – Ready mix concrete down 0.5% YTD
• – Italy: YTD cement volume up and stable ready-mix
• – United States: cement volume up despite significant flooding and logistics issues along the Mississippi river in June. Promising trend for ready mix concrete
• – Central Europe: strong cement volumes YTD in Germany; small decline in Luxembourg; ready mix concrete stable in Germany and up in Lux/Ned
• – Eastern Europe: well ahead of 2018 with robust progress achieved in Ukraine, Russia, Poland and marginal weakness in the Czech Republic. Ready mix concrete down, particularly in Ukraine and the Czech Republic

Prices

• – Favorable variances in all countries of operations

• Foreign Exchange

• – Positive impact on sales (€m 37.7) and EBITDA (€m 9.0) mainly due to stronger dollar

• Results
• – Net sales at €m 1,518.7 (€m 1,337.4 in 2018), +10.2% like-for-like
• – EBITDA at €m 288.6 (recurring €m 276.3) versus €m 227.4 (recurring €m 216.4) in H1 2018

Volumes

Price index by country

In local currency; FY16 = 100

FX changes

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

Net sales by country

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

EBITDA by country

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

Net sales and EBITDA development

• Italy improving, thanks to higher prices and internal sales of CO2
• Decreasing US contribution from 60% to 49% of EBITDA in H1 19 vs H1 18

EBITDA variance analysis

Energy costs impact

Consolidated Cash Flow Statement

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

Net Financial Position

	Ju 1 9 n	De 1 8 c	∆	Ju 1 8 n
E U Rm			b a s
C h d he f ina ia l t ts a s a n o r nc a s s e	6 3 9. 2	4 5 0. 7	1 8 8. 6	7 7 2. 1
S ho t- te d b t r rm e	( ) 3 8 9. 7	( ) 3 8 7. 1	( ) 2. 6	( ) 4 3 0. 2
S ho t- te le ing r rm a s	( ) 2 1. 4	( ) 0. 2	( ) 2 1. 2	( ) 0. 2
Ne t ho t- t h s r e rm c a s	2 2 8. 1	6 3. 4	1 6 4. 8	3 4 1. 7
Lo -te f ina ia l ts ng rm nc a s s e	3. 3	4. 3	0. 9	4. 5
Lo -te d b t ng rm e	( 9 7 8. 4 )	( 9 5 6. 4 )	2 2. 0	( 1, 2 3 8. 3 )
Lo -te le ing ng rm a s	( 2. 1 ) 7	( 1. ) 7	( 0. 3 ) 7	( 1. 9 )
Ne t d b t e	( 8 1 9. 0 )	( 8 9 0. ) 5	1. 7 5	( 8 9 4. 0 )

Gross debt breakdown (€m 1,461.5)

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Expected trading in 2019

Appendix

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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), joint venture 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

pag 14

Conservative financial profile and balanced growth strategy

"Value creation through lasting, experienced know-how and operating efficiency"

Shares & Shareholders

Cement plants location and capacity

pag16Italian Conference | September 27, 2019

2018 Consumption vs. Peak

Historical series of cement consumption by country

Historical EBITDA development by country

EU Rm			20 11	20 12	20 13	20 14	20 15	20 16	20 17	20 18
Ita ly		EB ITD A	10 .3	-5. 9	-18 .1	-18 .7	-37 .2	-22 .2	-79 .7	-1. 7
		in ma rg	1.8 %	-1. 2%	2% -4.	-4. 8%	-9. 8%	9% -5.	-18 .6%	4% -0.
	Ge rm an	EB ITD A	90 .3	72 .2	108 .1	88 .6	72 .1	76 .8	77 .9	82 .5
	y	in ma rg	14. 2%	12. 0%	18. 0%	14. 7%	12. 6%	13. 4%	13. 3%	13. 0%
	Lu x/	EB ITD A	35 .0	8.3	11 .5	15 .6	19 .7	25 .8	17 .6	23 .1
	Ne the rla nd s	in ma rg	15. 7%	4.3 %	6.3 %	9.7 %	11. 7%	14. 7%	9.4 %	11. 7%
	Cz h Re / ec p	EB ITD A	35 .2	25 .4	19 .2	27 .0	32 .6	34 .3	36 .6	43 .6
	Slo kia va	in ma rg	20 .5%	17. 0%	14. 6%	20 .2%	24 .0%	25 .2%	24 .7%	26 .5%
	Po lan d	EB ITD A	36 .9	21 .8	27 .1	18 .2	22 .7	23 .4	24 .2	31 .9
		in ma rg	26 .6%	20 .0%	26 .8%	20 .4%	.4% 20	.5% 24	24 .9%	.6% 28
	Uk rai	EB ITD A	6.9	15 .8	12 .3	11 .0	4.0	12 .8	16 .0	7.0
	ne	in ma rg	6.2 %	11. 8%	10. 0%	12. 5%	5.7 %	16. 1%	16. 9%	8.0 %
		EB ITD A	65 .7	96 .1	92 .6	73 .4	48 .4	48 .2	46 .0	50 .1
	Ru ia ss	in ma rg	.4% 37	41 .0%	.2% 37	.0% 35	.0% 29	.0% 28	24 .9%	27 .0%
		EB ITD A	71 .4	123 .9	15 1.0	20 7.3	31 1.7	35 6.5	36 9.6	34 1.2
	US A	in ma rg	8% 12.	18. 2%	.7% 20	24 .2%	28 .1%	31 .9%	33 .0%	31 .9%
	Me xic o	EB ITD A	82 .6	97 .5	77 .5	Ad tio of n
		in ma rg	34 .7%	36 .2%	33 .2%	op IFR S 1 1
Co	oli da ted	EB ITD A	43 4.3	45 5.1	48 1.2	42 2.7	47 3.2	0.6 55	50 8.2	7.2 57
ns		in ma rg	.6% 15	.2% 16	17 .5%	.9% 16	17 .8%	.6% 20	.1% 18	20 .1%