Buzzi Unicem — Investor Presentation 2020

Sep 8, 2020

Executive Summary

V O L U M E S	Q I 2 t l d l i d i l l h i t i l l i I t l d E t E d t t h d i n c e m e n v o u m e s e c n e n a g e o g r a p e s, p a r c u a r y n a y a n a s e r n u r o p e, u e o e p a n e m c f S Q % i t, t t h U A F 2 h l t d 6. 1 m p a c a p a r r o m e o r a s a o e, c e m e n o n w w - ( 3. % ) 1 3. ( 6. 3 % ) Y T D t l d 4 t 4 t d i t l i t d c e m e n o m e s o n a m o n r e a -m c o n c r e e o m e s m o r e m p a c e v u w ; y x v u - - I l i d h l k d f i d i l i i l M S d i J b Y T D t t t t t t t t t t t a y : s e v e r e c o n r a c o n u e o e o c o w n o n u s r a o p e r a o n s u n a y. r o n g e r r e n n u n e u • l i l l d i i f i l H i i d i d i t t t t v o u m e s s o w n s g n c a n y. e a v e r m p a c o n r e a y -m x p r o u c o n U i d S i h f i h l f, h k i l i f C i d- 1 9 d i i t t t t t t t t t t t n e a e s : c e m e n u p n e r s a a n s o m a r g n a m p a c r o m o v a n n o r e s r c o n s o n • t t i t i i t ( t i t h N t h- E t ) d i l i h t l d c o n s r u c o n a c v y e x c e p n e o r a s ; r e a y -m x s g y o w n C t l E C t Y T D l i h t l d i G d f b l i L b ( k A i l d e n r a u r o p e : e m e n s g y o w n n e r m a n y a n u n a v o r a e n u x e m o u r g v e r y w e a p r a n • ). G f f f t t d i M J R d i i t h k t d i t b t i i i t l d i s r o n g e r r e n n a y u n e e a y m x u p n e r m a n y a n s o e r e n s c o p e u s g n c a n y o w n n - B l e n e u x E E l i h l b i C h R b l i h i l U k i P l d d R i t t t t t a s e r n r o p e c e m e n s g e e r n e c e p c, m e a n e r a n e, o a n a n s s a m o r e u : y z u w u • f f d b h d i d i d d t t a e c e y e p a n e m c ; r e a y -m x e c r e a s e
P R I C E S	F b l i h b d i l l i i l l i P l d d I l t t t a v o r a e v a r a n c e a c r o s s e o a r n o c a c u r r e n c e s, p a r c u a r y n o a n a n a y
F O R E I G N C G E X H A N E	€ € f A l t 1 1 d t N t l d 3 E B I T D A t d l l d h i m o s m a v a n a g e o n e s a e s a n m o n r o m s r o n g e r o a r a n r y v n a
F I N A N C I A L S	N t S l t € 1, 5 2 0 ( € 1, 5 1 9 i 2 0 1 9 ), 1. 4 % l i k f l i k e a e s a m m n e- o r- e • - E B I T D A t € 3 1 4 ( € 2 8 9 i 2 0 1 9 ), 8. 3 % l i k f l i k + a m m n e- o r- e • € € N t d b t t 3 8 5 5 6 8 t d 2 0 1 9 e e a m e r s s m a e a r e n v u y •
G C U I D A N E	G i d f 2 0 2 0 i E B I T D A d d b % d 1 0 % l t t t 5 t u a n c e o r : r e c u r r n g e x p e c e o e c r e a s e e w e e n a n v e r s u s a s y e a r

Volumes H1 2020

Price Index by country

In local currency; FY16 = 100

FX changes

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

H1 20 Financial Highlights

Net Cash from operations (€m, % of sales) Net Debt (€m)

EBITDA (€m, % of sales)

Results by Geographic Area | Italy & United States of America

• • Cement volumes down due to lockdown of industrial operations in Mar and Apr. Recovery trend in May and June. Stronger impact on readymix production
• •Favourable trend for selling prices.

• • 13% of consolidated H1 net sales (17% in H1 19) and 3% of consolidated H1 EBITDA (11% in H1 19)

• • Cement volumes improved thanks to marginal impact from Covid-19 and no restrictions on the construction sector in the vast majority of the country. Ready-mix slightly down

• No relevant changes in average selling prices in local currency
• 40% of consolidated H1 net sales (38% in H1 19) and 57% of consolidated H1 EBITDA (50% in H1 19)

Results by Geographic Area | Central & Eastern Europe

EBITDA (€m)

Central Europe

• • Cement volumes only slightly down in Germany, thanks to limited negative impact from Covid-19. Luxembourg unfavorable after very weak April and stronger trend in May-June. Ready-mix concrete up thanks to different scope in Germany
• •Average selling prices improved

• • 27% of consolidated H1 net sales (27%in H1 2019) and 19% of consolidated H1 EBITDA (18% in H1 19)

• • Cement volumes slightly better in Czech Republic, meanwhile Ukraine, Poland and Russia perfomed worse, more affected by the pandemic; readymix negatively impacted too

• Average selling prices in local currency improved (Poland in particular)
• • 18% of consolidated H1 net sales (19%in H1 19) and 21% of consolidated H1 EBITDA (21% in H1 19)

EBITDA (€m)

Results by Geographic Area | Mexico & Brazil (valued at equity)

• • Cement volumes slightly up, thanks to ^a series of civil works considered strategic by the government, which allowed the carrying on of production and sales in the plants. Ready-mix decreased significantly
• • Average selling prices in local currency declined

• • Negative impact from the depreciation of the Mexican peso (-10%)

• Cement volumes improved despite some cointainment measures introduced by the local authorities following the worsening of the pandemic in the country

• • Positive variance in selling prices, in local currency
• • Negative impact from the meaningful depreciation of the Brazilian real (-25%)

Net sales by country

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

EBITDA by country

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

EBITDA variance analysis

Energy costs impact

Consolidated Income Statement

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

Consolidated Cash Flow Statement

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

Net Financial Position

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

Gross debt breakdown (1,432.4 €m )

Guidance 2020: Recurring EBITDA expected to decrease between 5% and 10% versus 2019 results

Italy

• In the second half, ^a foreseeable moderate recover in demand will only partially offset the loss in volumes suffered during the lockdown period
• Operating results expected to be higher than previous year, net of the sale of CO² emission rights

USA

• Demand expected to contract in the second half due to the concerns and growing uncertainties following the critical epidemiological picture
• Operating results in local currency expected to close somewhat down in comparison with previous year

Central Europe

• Expected some marginal slowdown in demand in the second half
• Operating results should remain in line with previous year

Eastern Europe

• In the second half, demand is not expected to rebound due to the continuing criticality of the epidemiological picture and the related greater uncertainties regarding the timing of the economic recovery
• Operating results expected to worsen in comparison with previous year

Appendix

pag ¹⁷ Italian Infrastructure & Energy Day | 9 September 2020

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), material joint venture assets 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 | Dividend

58.9%

As at 30 August 2020

80.2%

Cement plants location and capacity

2019 Consumption vs. Peak

Historical series of cement consumption by country

Net Cash Flow from Operations and Capex ^|€m

Debt Maturity Profile

• Total nominal value of debt and borrowings (except €m 98 leasing), stood at €m 1,267 at June 2020
• As at June 2020 available €m 322m of undrawn committed facilities (€m 300 for Buzzi Unicem, €m22 for Dyckerhoff)

Historical EBITDA development by country

		2 0 1 1	2 0 1 2	2 0 1 3	2 0 1 4	2 0 1 5	2 0 1 6	2 0 1 7	2 0 1 8	2 0 1 9
I ly ta	EB ITD A	10 3 ,	-5, 9	-18 1 ,	-18 7 ,	-37 2 ,	-22 2 ,	-79 7 ,	-1, 7	43 4 ,
	in ma rg	8% 1,	2% -1,	2% -4,	8% -4,	8% -9,	9% -5,	6% -18 ,	4% -0,	6% 8,
Ge rm an y	EB ITD A	90 3 ,	72 2 ,	108 1 ,	88 6 ,	72 1 ,	76 8 ,	78 1 ,	82 5 ,	102 3 ,
	in ma rg	14 2% ,	12 0% ,	18 0% ,	14 7% ,	12 6% ,	13 4% ,	13 3% ,	13 0% ,	15 1% ,
/ Lu x	EB ITD A	35 0 ,	8, 3	11 5 ,	15 9 ,	19 7 ,	25 8 ,	17 6 ,	23 1 ,	22 7 ,
Ne t he lan ds r	in ma rg	15 7% ,	4, 3%	6, 3%	9, 7%	11 7% ,	14 7% ,	9, 4%	11 7% ,	11 8% ,
Cz h Re / ec p	EB ITD A	35 2 ,	25 4 ,	19 2 ,	27 0 ,	32 6 ,	34 4 ,	36 5 ,	43 6 ,	46 3 ,
S lov k ia a	in ma rg	5% 20 ,	0% 17 ,	6% 14 ,	2% 20 ,	0% 24 ,	2% 25 ,	7% 24 ,	5% 26 ,	5% 27 ,
Po lan d	EB ITD A	36 9 ,	21 8 ,	27 1 ,	18 2 ,	22 7 ,	23 4 ,	24 1 ,	31 9 ,	32 1 ,
	in ma rg	26 6% ,	20 0% ,	26 8% ,	20 4% ,	20 4% ,	24 6% ,	24 9% 28 6% , ,	25 9% ,
U kra ine	EB ITD A	6, 9	15 8 ,	12 3 ,	11 0 ,	4, 0	12 8 ,	16 0 ,	7, 0	21 0 ,
	in ma rg	6, 2%	11 8% ,	10 0% ,	12 5% ,	5, 7%	16 1% ,	16 9% 8, 0% ,	15 9% ,
Ru ia ss	EB ITD A	65 7 ,	96 1 ,	92 6 ,	73 4 ,	48 4 ,	43 2 ,	46 0 ,	50 1 ,	57 7 ,
	in ma rg	37 4% ,	41 0% ,	37 2% ,	35 0% ,	29 0% ,	28 0% ,	24 9% ,	27 0% ,	26 9% ,
U S A	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	40 2, 7
	in ma rg	12 8% ,	18 2% ,	20 7% ,	24 2% ,	28 1% ,	31 9% ,	33 0% ,	31 9% ,	32 4% ,
Me ico x	EB ITD A	82 6 ,	97 5 ,	77 5 ,	Ad tion of
	in ma rg	34 7% ,	36 2% ,	33 2% ,	op IFR S 11
	E B I T D A	4 3 4, 3	4 1 5 5,	4 8 1, 2	4 2 2, 7	4 3, 2 7	0, 6 5 5	0 8, 2 5	2 5 7 7,	2 8, 1 7
Gr ou p	in ma rg	1 5, 6 %	1 6, 2 %	1 7, 5 %	1 6, 9 %	1 7, 8 %	2 0, 6 %	1 8, 1 %	2 0, 1 %	2 2, 6 %