Infrastructure & Energy Day

9 September 2021

H1 2021 Highlights
Trading by geographical area
H1 2021 Results
2021 Outlook

1. H1 2021 Highlights

VOLUMES &	Overall solid demand and recovery for cement (+10.9%) and ready mix concrete volumes (+7.0%)
PRICES	Favorable variance across the board for selling prices, mainly in USA and Germany

FOREIGN EXCHANGE	€m 81 unfavorable impact on Net sales and €m 22 on EBITDA from weaker dollar, hryvnia and ruble

	Net sales at €m 1,609 (€m 1,520 in 2020), +5.8% (+11.1% lfl)
FINANCIALS	EBITDA at €m 352 (€m 314 in 2020), +12.3% (+19.4% lfl)
	Net cash from operating activities at €m 219 (€m 214 in 2020)
	Net Financial Position stood at €m 109 versus €m 242 at year end 2020.

H1 2021- Financial highlights

Cement and Ready-mix volumes variance

Price Index by country

FX changes

		H1 21	H1 20	D	2020	Current
EUR 1 =		avg	avg	%	avg
	USD	1.21	1.10	-9.3	1.14	1.19
	RUB	89.55	76.67	-16.8	82.72	86.56
	UAH	33.46	28.63	-16.9	30.85	31.87
	CZK	25.85	26.33	+1.8	26.46	25.40
	PLN	4.54	4.41	-2.8	4.44	4.52
	MXN	24.33	23.84	-2.0	24.52	23.62
	BRL	6.49	5.41	-20.0	5.89	6.16

2. Trading by geographical area

Italy and USA

Italy
 Strong demand, driven by residential renovation and public works
Positive volume and price effect: 
- Cement +31.8% compared to 2020 - Ready-mix even stronger (+42.3% vs 2020) - Favorable trend for selling prices
 EBITDA grew strongly, despite higher energy costs. EBITDA margin more than doubled
United States of America
Demand has been strong in H1, driven by the residential sector 
Cement volumes up (+6.8%) despite bad weather conditions in 
May/June; positive variance in prices has been able to offset higher energy costs
 Negative impact from FX on Net sales (-56.2 €m) and EBITDA (-17.0 €m)
EBITDA +10.3% lfl and EBITDA margin above 30% 

EURm	H1 21	H1 20	D%	D lfl %
Net Sales	305.6	220.8	+38.4	-
EBITDA	32.7	8.8	>100	-
EBITDA margin (%)	10.7	4.0	-

EURm	H1 21	H1 20	D%	lfl % D
Net Sales	599.0	611.6	-2.1	+7.1
EBITDA	181.6	180.1	+0.8	+10.3
EBITDA margin (%)	30.3	29.4

Central Europe

Soft cement and ready-mix volumes due to adverse weather conditions in Germany (-2.2%). Positive performance in Luxembourg.
Favorable trend for selling prices, particularly in Germany
Higher power costs
No CO² cost accrued in H1 21 (€m 8.8 in H1 20)

Eastern Europe

Solid demand for cement and readymix, except in Poland (slightly weak due to bad weather conditions)
Average selling prices in local currency showed a slight growth, except in Ukraine
Negative impact from FX on Net Sales (-24.7 €m) and EBITDA (-5.2 €m)
EBITDA +13.5% lfl

EURm	H1 21	H1 20	D%	D lfl %
Net Sales	428.5	416.3	+2.9	-
EBITDA	67.5	58.2	+16.0	-
EBITDA margin (%)	15.7	14.0

EURm	H1 21	H1 20	D%	D lfl %
Net Sales	278.3	273.9	+1.6	+10.5
EBITDA	70.4	66.6	+5.8	+13.6
EBITDA margin (%)	25.3	24.3

Mexico and Brazil

Mexico

Solid demand driven by residential and public works.
Cement volumes up (+23.9%). Favorable variance for selling prices
EBITDA grew strongly (+19.5%), despite higher energy costs
EBITDA margin slightly down but still the best in the group

EURm	H1 21	H1 20	D%	D lfl %
Net Sales (100%)	337.1	266.8	+26.4	+28.9
EBITDA (100%)	150.9	126.4	+19.5	+21.9
EBITDA margin (%)	44.8	47.4

Brazil

Cement volumes up (+45.0%) thanks also to the change in scope
Average selling prices in local currency showed a solid growth
Negative impact from FX on Net Sales (21 €m) and EBITDA (7 €m)
Excluding FX and scope, EBITDA more than doubled with improved operating margin

EURm	H1 21	H1 20	D%	lfl % D
Net Sales (100%)	106.4	61.2	+73.9	+90.8
EBITDA (100%)	37.0	16.5	>100	>100
EBITDA margin (%)	34.7	27.0

3. H1 2021 Results

Net sales by country

	H1 21	H1 20	∆	∆	Forex	Scope	∆ l-f-l
EURm			abs	%	abs	abs	%
Italy	305.6	220.8	84.8	+38.4	-	-	+38.4
United States	599.0	611.6	(12.6)	-2.1	(56.2)	-	+7.1
Germany	341.7	339.4	2.3	+0.7	-	-	+0.7
Lux / Netherlands	100.6	91.2	9.5	+10.4	-	-	+10.4
Czech Rep / Slovakia	80.4	75.2	5.2	+6.9	1.3	-	+5.2
Poland	53.7	55.2	(1.5)	-2.6	(1.5)	-	+0.1
Ukraine	51.0	51.7	(0.7)	-1.4	(8.6)	-	+15.3
Russia	93.9	92.9	1.1	+1.2	(15.8)	-	+18.2
Eliminations	(17.3)	(17.9)	0.5
Total	1,608.7	1,520.1	88.6	+5.8	(80.8)	-	+11.1

Mexico (100%)	337.1	266.8	70.3	+26.4	(6.8)	-	+28.9
Brazil (100%)	106.4	61.2	45.2	+73.9	(21.2)	10.9	+90.8

	H1 21	H1 20	∆	∆	Forex	Scope	∆ l-f-l
EURm			abs	%	abs	abs	%
Italy	32.7	8.8	23.9	>100	-	-	>100
United States	181.6	180.1	1.5	+0.8	(17.0)	-	+10.3
Germany	60.6	51.8	8.8	+16.9	-	-	+16.9
Lux / Netherlands	6.9	6.4	0.5	+8.4	-	-	+8.4
Czech Rep / Slovakia	23.4	19.7	3.7	+18.7	0.4	-	+16.6
Poland	16.2	15.4	0.8	+5.4	(0.5)	-	+8.4
Ukraine	5.6	6.7	(1.1)	-15.9	(0.9)	-	-1.7
Russia	25.2	24.8	0.4	+1.6	(4.2)	-	+18.6
Eliminations	0.3	0.3
Total	352.5	313.9	38.6	+12.3	(22.2)	-	+19.4

Mexico (100%)	150.9	126.4	24.6	+19.5	(3.1)	-	+21.9
Brazil (100%)	37.0	16.5	20.5	>100	(7.4)	2.8	>100

EBITDA variance analysis

Energy costs impact

Total energy Power & Fuel

Energy cost (€m)

Energy cost / Cement revenues

Power cost (€/ton) Fuel cost / revenues (%)
Fuel cost (€/ton)
Power cost / revenues (%)

	H1 21	H1 20	∆	∆
EURm			abs	%
Net Sales	1,608.7	1.520,1	88.6	+5.8
EBITDA	352.5	313.9	38.6	+12.3
of which, non recurring	-	-
% of sales (recurring)	21.9%	20.7%
Depreciation and amortization	(122.8)	(128.4)	5.7
Operating Profit (EBIT)	229.7	185.5	44.2	+23.8
% of sales	14.3%	12.2%
Equity earnings	48.4	148.9	(100.5)
Net finance costs	(16.0)	(55.0)	39.0
Profit before tax	262.1	279.4	(17.3)	-6.2
Income tax expense	(52.4)	(62.7)	10.3
Net profit	209.7	216.7	(6.9)	-3.2
Minorities	(0.1)	(0.1)	0.1
Consolidated net profit	209.6	216.5	(6.9)	-3.2

Consolidated Cash Flow Statement

EURm	H1 21	H1 20
Cash generated from operations	313.1	256.2
% of sales	19.5 %	16.9 %
Interest paid	(16.6 )	(18.3 )
Income tax paid	(77.4 )	(23.5 )
Net cash from operating activities	219.1	214.4
% of sales	13.6 %	14.1 %
Capital expenditures	(99.9 )	(107.6 )
Equity investments	(2.0 )	(0.7)
Purchase of treasury shares	-	(7.3)
Dividends paid	(190.7 )	(31.9 )
Extraordinary dividend	143.3	-
Dividends from associates	31.3	171.0
Disposal of fixed assets and investments	14.8	10.4
Translation diffrerences and derivatives	10.6	(71.2)
Accrued interest payable	3.7	3.3
Interest received	3.5	6.4
Change in scope of consolidation and other	(0.9 )	(4.2)
Change in net debt	132.9	182.7
Net financial position (end of period)	(108.8)	(385.1)

Net Financial Position

	Jun 21	Dec 20	∆	Jun 20
EURm			abs
Cash and other financial assets	951.8	1,220.9	(269.2)	1,045.0
Short-term debt	(102.2)	(214.2)	112.0	(40.7)
Short-term leasing	(21.1)	(21.4)	0.3	(22.5)
Net short-term cash	828.4	985.3	(156.8)	981.8
Long-term financial assets	214.8	11.0	203.8	2.4
Long-term debt	(1,087.0)	(1,173.4)	86.4	(1,294.2)
Long-term leasing	(65.0)	(64.6)	(0.5)	(75.1)
Net debt	(108.8)	(241.6)	132.9	(385.1)

Gross debt breakdown ( 1,275.3 €m )

4. 2021 Outlook

2021 Outlook

Fine tuning of the guidance following sound H1

Likely negative impact from FX
Higher energy and CO² costs
Recurring Ebitda probably not above the 2020 level

Italy

Solid demand to continue in H2, still driven by residential renovation and infrastructure. Positive development of pricing and operating leverage to balance the cost inflation Higher operating results than 2020

USA

Underlying demand to remain strong also in H2 Volume and price effect able to offset the steep rise of industry inflation Operating results, in local currency should confirm the 2020 record

Central Europe

Continuation of a softer demand in H2 Pricing expected to strenghten Higher costs, (CO² and energy) will penalize operating results, expected to be lower than 2020

Russia

Strong demand in H2, driven by public investments in infrastructure Assuming the ruble at current values, operating results in euro expected to advance

Czech	Republic and Poland
-------	---------------------	--	--	--

Modest evolution in volumes for H2 Positive price effect Higher costs, mainly CO² , will impact operating results, expected to fall short of 2020

Ukraine

Positive development of volumes Unfavorable trend in selling prices and fuel cost rebounding Operating results expected to decline versus last year

Mexico H2 expected to be equally sound as H1 Favorable trend in selling prices Cost inflation is taking its bite; however operating results should exceed last year level

Brazil

Good trend in volumes and prices also in H2

Clear improvement in operating results, driven by the scope change and despite the negative development of the exchange rate

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

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

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

Historical EBITDA development by country

E-MARKET SDIR
CERTIFIED

		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