Buzzi Unicem — Investor Presentation 2019

May 22, 2019

Italian Investment Conference

Executive summary Q1 2019

Volumes

• – Favorable weather in 1Q 19 and easy comparison with 1Q 18 (quarter impacted by adverse weather, particularly in the USA, and less working days): cement up 16.9% and ready-mix concrete +7.3%
• –Italy: nice improvement for cement over 2018 and stable ready-mix
• – United States: volumes up; good start to the year for ready mix concrete
• – Central Europe: strong cement volumes in Germany; Luxembourg almost flat; ready mix concrete favorable in Germany and well ahead in Lux/Ned
• – Eastern Europe: cement up, with robust progress realized in Poland, Ukraine and Russia; ready mix concrete down

Prices

• – Q1 vs Q1: no changes in Germany and favorable trends in all other markets
• – Q1 19 neutral or above Q4 18 in all regions except a marginal weakness in Russia
• Foreign Exchange
• – Positive impact on sales (€m 16.8) mainly due to stronger dollar, partially offset by weaker ruble

• Results

• – Net sales at €m 656 (€m 539 in 2018), +17.6% like-for-like

• – Net debt at €m 1,034 versus €m 891 at year end 2017 (€m 91 IFRS 16 impact)

Volumes Q1 2018

Price index by country

In local currency; FY15 = 100

FX changes

	Q 1 1 9	Q 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
U S D	1. 1 4	1. 2 3	6 7 +	1. 1 8	1. 1 2
R U B	4 9 1 7	6 9 9 3	7 1 -	4 0 4 7	7 2 2 1
U A H	3 1. 0 2	3 3 5 6	6 7 +	3 2 1 1	2 9 6 8
C Z K	2 5 6 8	2 5 4 0	1. 1 -	2 5 6 5	2 5 6 6
P L N	4 3 0	4 1 8	2 9 -	4 2 6	4 2 9
M X N	2 1. 8 1	2 3 0 4	5 3 +	2 2 1 7	2 1. 2 8
B R L	4 2 8	3 9 9	2 7 -	4 3 1	4 4 5

Cement volumes by geographical area

Net sales by country

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

EBITDA by country

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

Key economics indicators

Net sales and EBITDA development

• Italy improving, thanks to Zillo contribution, and, at long last, positive
• USA drops under 2/3 of the consolidated EBITDA
• Favorable trend in Central and Eastern Europe

Consolidated Income Statement

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

Consolidated Cash Flow Statement

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

Net Financial Position

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

Gross debt breakdown (€m 1,458.4)

pag12Italian Investment Conference | May 22, 2019

Debt maturity profile

• Total nominal value of debt and borrowings (except €m 91 leasing), stood at €m 1,256 at March 2019
• As at March 2019 available €m 323m of undrawn committed facilities (€m 300m for Buzzi Unicem, €m 23 for Dyckerhoff)

Expected trading in 2019

	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 u x e m o u r g
C h R b l i e c e p c z u
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
B i l r a z
		Pr ice in loc l c s a ur re nc y

Appendix

pag15Italian Investment Conference | May 22, 2019

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
• Conservative financial profile and balanced growth strategy

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

Shares & Shareholders

As at 30 April 2019

Cement plants location and capacity

pag18Italian Investment Conference | May 22, 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%	-4. 2%	-4. 8%	-9. 8%	-5. 9%	-18 .6%	-0. 4%
	Ge rm an y	EB ITD A	90 .3	72 .2	108 .1	88 .6	72 .1	76 .8	.9 77	82 .5
		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	7% 11.	7% 14.	9.4 %	7% 11.
	Cz / h Re ec p Slo kia va	EB ITD A	35 .2	25 .4	19 .2	27 .0	32 .6	34 .3	36 .6	43 .6
		in ma rg	20 .5%	17. 0%	6% 14.	20 .2%	24 .0%	.2% 25	24 .7%	26 .5%
		EB ITD A	36 .9	21 .8	27 .1	18 .2	22 .7	23 .4	24 .2	31 .9
	Po lan d	in ma rg	26 .6%	20 .0%	26 .8%	20 .4%	20 .4%	24 .5%	24 .9%	28 .6%
	Uk rai ne	EB ITD A	6.9	15 .8	12 .3	11 .0	4.0	12 .8	16 .0	7.0
		in ma rg	6.2 %	11. 8%	10. 0%	5% 12.	5.7 %	1% 16.	9% 16.	% 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	37 .4%	41 .0%	37 .2%	35 .0%	29 .0%	28 .0%	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	12. 8%	18. 2%	20 .7%	24 .2%	28 .1%	31 .9%	33 .0%	31 .9%
Me	xic o	EB ITD A	82 .6	97 .5	77 .5	of Ad tio
		in ma rg	34 .7%	36 .2%	33 .2%	op n IFR S 1 1
		EB ITD A	43 4.3	45 5.1	48 1.2	42 2.7	47 3.2	55 0.6	50 8.2	57 7.2
Co oli ns	da ted	in ma rg	15 .6%	16 .2%	17 .5%	16 .9%	17 .8%	20 .6%	18 .1%	20 .1%