Buzzi Unicem — Investor Presentation 2020

Jun 8, 2020

Executive Summary Q1 2020

Volumes Q1 2020

Price Index by country

In local currency; FY16 = 100

FX changes

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

Net sales by country

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

Results by Geographic Area | Italy & United States of America

• • Despite a safisfactory start of the year, cement volumes down due to lockdown of industrial operations from 2nd half of Mar. Stronger impact on readymix production
• •Favourable trend for selling prices.

•17% of consolidated Q1 net sales (18% in Q1 2019)

• • Cement volumes improved thanks to favourable weather conditions and marginal impact from Covid-19 (no restrictions on activities in 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 Q1 net sales (39% in Q1 19)

Results by Geographic Area | Central & Eastern Europe

• • Cement volumes better than last year in Germany, thanks to limited negative impact from Covid-19. Luxembourg stable despite very weak Mar shipments following lockdown decisions locally and in France. Ready-mix concrete stable.
• •Average selling prices improved

•27% of consolidated Q1 net sales (27% in Q1 2019)

• • Cement volumes improved in Czech Republic meanwhile Russia, Poland and Ukraine more affected by restrictions and economic uncertainties. Ready mix slightly up
• •Average selling prices in local currency improved
• •17% of consolidated Q1 net sales (17% in Q1 2019)

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

• • Cement volumes slightly up thanks to the continuation of a series of infra works considered strategic by the government, together with restrictions on economic activities due to the spread of the pandemic.
• •Average selling prices in local currency declined
• • Negative impact from the depreciation of the Mexican peso

• Cement volumes down due to the bad weather conditions in South-East region and to the first negative impact of Covid-19

• •Positive variance in selling prices, in local currency
• • Negative impact from the depreciation of the Brazilian real (-14.9%)

YTD Trading Update

• • Italy: From 4 May, we were allowed to resume our business. Cement sales partially recover in May (ca. 50% of the plants restarted the production) but YTD still significantly down
• • Germany: Downward trend in April and in May, despite fewer restrictions imposed by the government on economic activities and personal mobility
• • Luxembourg: The plant resumed commercial activity and cement production since the last week of April. In May, gradual recovery in cement sales
• • Czech Republic: Return to levels close to normal in May (YTD cement sales in line with 2019). Least impacted market in Eastern Europe
• • Poland: Gradual easing of the restrictions in May but cement sales have continued to slow down. Sharper decline in ready-mix concrete

YTD Trading Update (2)

• • Ukraine: The restrictive regulations remained in force in May, but industrial activities were still to be open for business. In May continuation of the downward trend already seen in April
• • Russia: The severe restrictions on individual mobility and production have continued in May. Cement sales slightly better than in April, but clearly downYTD. Oil well cement is suffering

• United States of America: As of May, no severe reduction in cement consumption in our geographies. Cement sales in line with 2019 YTD, except oil-well cement shipments. During May, slow down in ready-mix concrete volumes in Texas

Net Financial Position

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

Gross debt breakdown (1,437.4 €m )

2019 Financial Highlights

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

2019

Net Sales by country

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

EBITDA by country

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

EBITDA variance analysis

Net Cash Flow from Operations and Capex | €m

Consolidated Income Statement

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

Consolidated Cash Flow Statement

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

Debt Maturity Profile

• Total nominal value of debt and borrowings (except €m 97 leasing), stood at €m 1,266 at December 2019
• As at December 2019 available €m 321m of undrawn committed facilities (€m 300 for Buzzi Unicem, €m21 for Dyckerhoff)

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), 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 | Dividend Proposal

Cement plants location and capacity

2019 Consumption vs. Peak

Historical series of cement consumption by country

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	E B I T D A	1 0, 3	-5, 9	-1 8, 1	-1 8, 7	-3 7, 2	-2 2, 2	-7 9, 7	-1, 7	4 3, 4
		in ma rg	1, 8 %	-1, 2 %	-4, 2 %	-4, 8 %	-9, 8 %	-5, 9 %	-1 8, 6 %	-0, 4 %	8, 6 %
	Ge rm an y	E B I T D A	9 0, 3	7 2, 2	1 0 8, 1	8 8, 6	7 2, 1	7 6, 8	7 8, 1	8 2, 5	1 0 2, 3
		in ma rg	1 4, 2 %	1 2, 0 %	1 8, 0 %	1 4, 7 %	1 2, 6 %	1 3, 4 %	1 3, 3 %	1 3, 0 %	1 5, 1 %
	Lu / x Ne t he lan ds r Cz h Re / ec p S lov k ia a Po lan d	E B I T D A	3 5, 0	8, 3	1 1, 5	1 5, 9	1 9, 7	2 5, 8	1 7, 6	2 3, 1	2 2, 7
		in ma rg	1 5, 7 %	4, 3 %	6, 3 %	9, 7 %	1 1, 7 %	1 4, 7 %	9, 4 %	1 1, 7 %	1 1, 8 %
		E B I T D A	3 5, 2	2 5, 4	1 9, 2	2 7, 0	3 2, 6	3 4, 4	3 6, 5	4 3, 6	4 6, 3
		in ma rg	2 0, 5 %	1 7, 0 %	1 4, 6 %	2 0, 2 %	2 4, 0 %	2 5, 2 %	2 4, 7 %	2 6, 5 %	2 7, 5 %
		E B I T D A	3 6, 9	2 1, 8	2 1 7,	1 8, 2	2 2, 7	2 3, 4	2 4, 1	3 1, 9	3 2, 1
	U kr ine a	in ma rg	2 6, 6 %	2 0, 0 %	2 6, 8 %	2 0, 4 %	2 0, 4 %	2 4, 6 %	2 4, 9 %	2 8, 6 %	2 9 % 5,
		E B I T D A	6, 9	1 8 5,	1 2, 3	1 1, 0	4, 0	1 2, 8	1 6, 0	0 7,	2 1, 0
		in ma rg	6, 2 %	1 1, 8 %	1 0, 0 %	1 2, % 5	% 5, 7	1 6, 1 %	1 6, 9 %	8, 0 %	1 9 % 5,
	Ru ia ss	E B I T D A	6 5, 7	9 6, 1	9 2, 6	3, 4 7	4 8, 4	4 3, 2	4 6, 0	0, 1 5	5 7, 7
		in ma rg	3 4 % 7,	4 1, 0 %	3 2 % 7,	3 0 % 5,	2 9, 0 %	2 8, 0 %	2 4, 9 %	2 0 % 7,	2 6, 9 %
	U S A	E B I T D A	7 1, 4	1 2 3, 9	1 5 1, 0	2 0 7, 3	3 1 1, 7	3 5 6, 5	3 6 9, 6	3 4 1, 2	4 0 2, 7
		in ma rg	1 2, 8 %	1 8, 2 %	2 0, 7 %	2 4, 2 %	2 8, 1 %	3 1, 9 %	3 3, 0 %	3 1, 9 %	3 2, 4 %
	Me ico x	E B I T D A	8 2, 6	9 7, 5	7 7, 5	A do t ion f p o S 1 1 I F R
		in ma rg	3 % 4, 7	3 6, 2 %	3 3, 2 %
	Gr ou p	E B I T D A	4 3 4, 3	4 5 5, 1	4 8 1, 2	4 2 2, 7	4 7 3, 2	5 5 0, 6	5 0 8, 2	5 7 7, 2	7 2 8, 1
		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 %