Buzzi Unicem — Investor Presentation 2021

Dec 2, 2021

2 December 2021 Materials & Infrastructure Conference

1. 9M 2021 Highlights

2. Trading by geographical area

3. 9M 2021 Results

4. 2021 Outlook

5. CO² initiatives

VOLUMES & PRICES	Overall solid organic growth for cement (+7.5%) and ready mix concrete volumes (+4.5%) Well oriented selling prices, mainly in USA, Poland and Germany. Limited price decline in Ukraine
FX	€m 85 unfavorable impact on Net sales from weaker dollar, hryvnia and ruble
FINANCIALS	Net sales at €m 2,542 (€m 2,408 in 2020), +9.1% lfl
	Net Financial Position turns positive at €m 101 vs an indebtedness of €m 242 at year end 2020.
FY 2021 OUTLOOK	Guidance confirmed: recurring EBITDA to match 2020 level

1. 9M 2021 Highlights

9M 2021- Financial highlights

*including long-term financial assets

Price Index by country

FX changes

		9M 21	9M 20	D	2020	Current
EUR 1 =		avg	avg	%	avg
	USD	1.20	1.13	-6.3	1.14	1.19
	RUB	88.53	79.96	-10.7	82.72	87.97
	UAH	32.86	29.88	-10.0	30.85	32.63
	CZK	25.73	26.38	2.5	26.46	25.71
	PLN	4.47	4.42	-1.2	4.44	4.55
	MXN	24.08	24.52	1.8	24.52	24.04
	BRL	6.38	5.71	-11.7	5.89	6.38

2. Trading by geographical area

Italy and USA

Italy Q3 slightly down, due to base effect and uncertainties associated with the surge in commodities prices Demand has remained strong, driven by residential renovation and public works Positive volume and price effect EURm 9M 21 9M 20 D% D lfl % Net Sales 453.1 367.2 +23.4 -

United States of America

• Robust activity in construction industry, particularly in the residential sector
• Cement volumes up despite Hurricanes season; Ready-mix concrete more impacted by bad weather
• Selling prices has showed a good growth, offsetting the rise in energy costs
• Negative impact from FX on Net sales (-56.2 €m) and EBITDA (-17.0 €m)

EURm	9M 21	9M 20	D%	D lfl %
Net Sales	961.5	937.8	+2.5	+9.0

Central and Eastern Europe

Central Europe

• Weak cement and ready-mix volumes due to heavy rainfalls in in July in Germany.
• Favorable trend for selling prices, particularly in Germany
• Higher energy costs

EURm	9M 21	9M 20	D%	D lfl %
Net Sales	657.0	657.0	-	-

Eastern Europe

• Overall favourable demand in cement and readymix, supported by robust construction activity.
• Average selling prices in local currency showed a slight growth. Small decline in Ukraine (prices up in Q3)
• Energy cost under control
• Negative impact from FX on Net Sales (-24.4 €m)

EURm	9M 21	9M 20	D%	lfl % D
Net Sales	474.9	450.0	+5.5	+10.8

Mexico and Brazil

E-MARKET SDIR
CERTIFIED

Mexico

• Solid demand driven by residential and public works.
• Cement volumes up, despite marginal slowdown in Q3.
• Favorable variance for selling prices

EURm	9M 21	9M 20	D%	D lfl %
Net Sales (100%)	500.6	412.5	+21.4	+19.1

Brazil

• Cement volumes up thanks to dynamic market trends and change in scope
• Robust growth of selling prices
• Negative impact from FX on Net Sales (22 €m)

EURm	9M 21	9M 20	D%	lfl % D
Net Sales (100%)	186.7	99.7	+87.3	+80.6

3. 9M 2021 Results

	9M 21	9M 20	∆	∆	Forex	Scope	∆ l-f-l
EURm			abs	%	abs	abs	%
Italy	453.1	367.2	86.0	+23.4	-	-	+23.4
United States	961.5	937.8	23.7	+2.5	(60.9)	-	+9.0
Germany	529.5	539.5	(10.0)	-1.8	-	-	-1.8
Lux / Netherlands	147.5	138.7	8.8	+6.3	-	-	+6.3
Czech Rep / Slovakia	132.2	120.1	12.1	+10.1	2.9	-	+7.7
Poland	93.2	90.4	2.8	+3.1	(1.1)	-	+4.3
Ukraine	92.3	88.7	3.6	+4.1	(9.2)	-	+14.4
Russia	158.1	152.4	5.7	+3.7	(17.0)	-	+14.8
Eliminations	(25.8)	(26.8)	1.0
Total	2,541.7	2,408.0	133.7	+5.6	(85.2)	-	+9.1
Mexico (100%)	500.6	412.5	88.1	+21.4	9.1	-	+19.1
Brazil (100%)	186.7	99.7	87.0	+87.3	(21.8)	28.5	+80.6

Net Financial Position

	Sep 21	Dec 20	∆	Sep 20
EURm			abs
Cash and other financial assets	1,078.0	1,220.9	(142.9)	1,133.0
Short-term debt	(149.2)	(214.2)	65.0	(47.9)
Short-term leasing	(23.0)	(21.4)	(1.6)	(21.6)
Net short-term cash	905.8	985.3	(79.5)	1,063.5
Long-term financial assets	240.3	11.0	229.4	2.3
Long-term debt	(986.0)	(1,173.4)	187.3	(1,276.3)
Long-term leasing	(59.5)	(64.6)	5.1	(71.2)
Net debt	100.6	(241.6)	342.3	(281.7)

Gross debt breakdown ( 1,217.7 €m )

4. 2021 Outlook

2021: What to expect

Activity in the construction sector expected to generally remain lively almost everywhere

• Sound demand will support volumes growth
• Positive dynamics in selling prices, able to offsett (at least partially) the significant increase of energy costs
• Some slow down in industrial capex versus annual average due to supply chain disruptions (Covid)

Ebitda for the financial year 2021: highly satisfactory level but probably not above the previous year

5. CO² initiatives

Our achievements so far By 2020, we have reduced by approx. 17% the specific net CO² emissions compared to 1990 level (plants taken into consideration according to SBTI methodology)

Reduction's drivers:

• Higher alternative fuels utilization
• Thermal energy optimization
• Lower clinker to cement ratio
• Improved technologies

CO² Intensity emission index by country: 2020 vs 1990

Capex requirements for decarbonization over the next 5 years

• Over the next 5 years, Buzzi Unicem will be involved in more than 100 initiatives aiming to reduce CO² emissions
• This plan leads to CO² specific capex per year equal to approx 10-15% of the annual avg capex spending

CO2 Capex breakdown by initiatives

• Approx. 75% of CO² specific capex will be dedicated to initiatives with high short therm potential of CO² reduction, such as: increasing fuel substitution, reducing clinker content in cement, in-house production of electrical power and reducing CO² intensity in energy consumption
• Within R&D-Pilot Testing category, the most important initiative will be CCU/S

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), 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"

Cement plants location and capacity

Historical EBITDA development by country

		2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
	EBITDA	10.3	-5.9	-18.1	-18.7	-37.2	-22.2	-79.7	-1.7	43.4	33.8
Italy	margin	1.8%	-1.2%	-4.2%	-4.8%	-9.8%	-5.9%	-18.6%	-0.4%	8.6%	6.8%
	EBITDA	90.3	72.2	108.1	88.6	72.1	76.8	78.1	82.5	102.3	123.8
Germany	margin	14.2%	12.0%	18.0%	14.7%	12.6%	13.4%	13.3%	13.0%	15.1%	17.3%
Lux/	EBITDA	35.0	8.3	11.5	15.9	19.7	25.8	17.6	23.1	22.7	21.7
Netherlands	margin	15.7%	4.3%	6.3%	9.7%	11.7%	14.7%	9.4%	11.7%	11.8%	11.3%
Czech Rep/	EBITDA	35.2	25.4	19.2	27.0	32.6	34.4	36.5	43.6	46.3	46.8
Slovakia	margin	20.5%	17.0%	14.6%	20.2%	24.0%	25.2%	24.7%	26.5%	27.5%	29.4%
	EBITDA	36.9	21.8	27.1	18.2	22.7	23.4	24.1	31.9	32.1	35.3
Poland	margin	26.6%	20.0%	26.8%	20.4%	20.4%	24.6%	24.9%	28.6%	25.9%	29.9%
	EBITDA	6.9	15.8	12.3	11.0	4.0	12.8	16.0	7.0	21.0	21.9
Ukraine	margin	6.2%	11.8%	10.0%	12.5%	5.7%	16.1%	16.9%	8.0%	15.9%	18.9%
	EBITDA	65.7	96.1	92.6	73.4	48.4	43.2	46.0	50.1	57.7	52.9
Russia	margin	37.4%	41.0%	37.2%	35.0%	29.0%	28.0%	24.9%	27.0%	26.9%	28.3%
	EBITDA	71.4	123.9	151.0	207.3	311.7	356.5	369.6	341.2	402.7	444.2
USA	margin	12.8%	18.2%	20.7%	24.2%	28.1%	31.9%	33.0%	31.9%	32.4%	35.2%
Total	EBITDA	351.7	357.6	403.7	422.7	473.2	550.6	508.2	577.2	728.1	780.8
(IFRS reporting)	margin	13.8%	14.1%	16.0%	16.9%	17.8%	20.6%	18.1%	20.1%	22.6%	24.2%
	EBITDA	82.6	97.5	77.5	93.9	128.1	146.7	164.6	144.5	126.1	132.5
Mexico (50%)	margin	34.7%	36.2%	33.2%	36.0%	40.9%	48.2%	48.0%	46.3%	42.5%	46.2%
Brazil (50%)	EBITDA								15.9	11.7	24.0
	margin								23.9%	17.4%	34.5%
Total	EBITDA	434.3	455.1	481.2	516.6	601.3	697.3	672.8	721.7	865.9	937.3
(proportional method)	margin	14.4%	14.8%	17.5%	18.7%	20.2%	23.5%	21.4%	22.7%	24.2%	26.2%

Net Cash Flow from Operations and Capex development | €m

251 253 257 245 302 304 371 332 575 589 ^{96 114 144 119 140 159 155 184 214 217 60 31 20 55 164 77} 29 31 43 11 88 67 140 34 229 82 29 Dyckerhoff shares (above 95%) Dyckerhoff shares (squeeze-out) Gruppo Zillo (Italy) Testi, Arquata, Borgo (Italy) Uralcement (Korkino, Russia) Seibel & Söhne (Germany) BCPAR Brazil 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 9.0% 9.0% 10.2% 9.8% 11.3% 11.4% 13.2% 11.6% 17.9% 18.3% 3.5% 4.1% 5.7% 4.7% 5.3% 6.0% 5.5% 6.4% 6.7% 6.7% Net cash flow from operations Ordinary capex Expansion capex Equity Investment % Net cash flow from operations / Net sales % Ordinary capex / Net sales Gruppo Zillo (earn out) Dyckerhoff shares (squeeze-out) 156 233 231 314 304 ^{236 218} 444 339 257

2020 cement consumption vs peak

Historical series cement consumption by country

2 December 2021 Materials & Infrastructure Conference