Buzzi Unicem — Investor Presentation 2021

May 20, 2021

Italian Investment Conference

Executive Summary

VOLUMES	Italy and USA well performing, Russia confirms solidity. Negative trend in other Eastern European countries and in Germany. For Q1 as a whole, cement volumes improved (+3.0%) at 6.2 mton
	Ready Mix concrete volumes only slightly up (+0.8%) at 2.5 mm3
PRICES	Overall favorable variance across the board in local currencies, particularly in Poland and Germany
FOREIGN
EXCHANGE	€m 37.2 disadvantage on Net sales from weaker dollar, hryvna and ruble
	Net sales at €m 683 (€m 688 in 2020), -0.8% (+4.5% lfl), with negative variance in Eastern Europe (-15.4%), USA (-4.5%) and Germany (-1.4%). Positive performance in Italy (+20.7%) and Benelux (+6.3%)
FINANCIALS	Net Debt at €m 231 versus €m 242 at year end 2020

Q1 21 Highlights

Net Sales (€m)

Ready-mix volumes (m m³)

Net Debt (€m)

Volumes

Price Index by country

FX changes

		Q121	Q120	D	2020	Current
EUR 1 =		avg	avg	%	avg
	USD	1.20	1.10	-9.3	1.14	1.22
	RUB	89.67	73.82	-21.5	82.72	90.04
	UAH	33.68	27.66	-21.7	30.85	33.61
	CZK	26.07	25.63	-1.7	26.46	25.43
	PLN	4.55	4.32	-5.1	4.44	4.52
	MXN	24.53	22.09	-11.0	24.52	24.12
	BRL	6.60	4.92	-34.2	5.89	6.41

Italy

• Cement volumes clearly up compared to Q1 20, affected by the country lockdown, thanks to the stronger demand, driven by the positive dynamics of the residential renovation and public works. Ready-mix production recorded an even more marked recovery
• Favourable trend for selling prices
• 20% of consolidated Q1 net sales (17% in Q1 20)

EURm	Q1 21	Q1 20	D%	D lfl %
Net Sales	138.5	114.7	+20.7	-

USA

• Cement volumes up, despite unfavourable weather conditions in February, particularly in Texas. Ready-mix more penalized by the cold
• Average selling prices in local currency showed a slight growth
• Q1 net sales +4.3% lfl
• 38% of consolidated Q1 net sales (40% in Q1 20).

EURm	Q1 21	Q1 20	D%	lfl % D
Net Sales	261.3	273.7	(4.5)	+4.3

Central Europe

• Cement volumes down in Germany due to adverse weather conditions. Positive performance in Luxembourg. Ready-mix concrete showed a slight contraction
• Positive pricing development
• 27% of consolidated Q1 net sales (27% in Q1 20)

EURm	Q1 21	Q1 20	D%	D lfl %
Net Sales	185.0	184.4	+0.3	-

Eastern Europe

• Cement volumes improved in Russia, thanks to robust demand, but visibly contracted in Poland, Czech Republic and Ukraine. Ready-mix down
• Average selling prices in local currency improved, except in Ukraine
• 15% of consolidated Q1 net sales (17% in Q1 20)

EURm	Q1 21	Q1 20	D%	lfl % D
Net Sales	99.1	117.1	(15.4)	(3.9)

Mexico

• Positive trend in cement volumes, while ready-mix concrete remained stable
• Prices, in local currency, improved
• Negative impact from the depreciation of the Mexican peso. Q1 net sales +20.8% lfl

EURm	Q1 21	Q1 20	D%	D lfl %
Net Sales (100%)	160.7	147.7	+8.8	+20.8

Brazil

• Cement volumes showed marked progress thanks to positive developments in construction activity, particularly in the residential sector
• Strong trend in selling prices, in local currency
• Negative FX impact (Brazilian Real -34.2%). Q1 net sales +84.4% lfl

EURm	Q1 21	Q1 20	D%	D lfl %
Net Sales (100%)	39.6	28.8	+37.4	+84.4

Net sales by country

	Q1 21	Q1 20	∆	∆	Forex	Scope	∆ l-f-l
EURm			abs	%	abs	abs	%
Italy	138.5	114.7	23.8	+20.7	-	-	+20.7
United States	261.3	273.7	(12.4)	-4.5	(24.2)	-	+4.3
Germany	147.2	149.3	(2.1)	-1.4	-	-	-1.4
Lux / Netherlands	43.7	41.2	2.5	+6.3	-	-	+6.3
Czech Rep / Slovakia	28.0	30.5	(2.5)	-8.4	(0.4)	-	-7.0
Poland	17.6	24.8	(7.2)	-28.8	(0.9)	-	-25.2
Ukraine	16.3	22.1	(5.8)	-25.9	(3.6)	-	-9.8
Russia	37.6	40.3	(2.7)	-6.6	(8.1)	-	+13.5
Eliminations	(7.6)	(8.1)	(0.5)	-6.1
Total	682.6	688.5	(5.9)	-0.8	(37.2)	-	+4.5
Mexico (100%)	160.7	147.7	13.0	+8.8	(17.7)	-	+20.8
Brazil (100%)	39.6	28.8	10.8	+37.4	(13.5)	-	+84.4

Net Financial Position

	Mar 21	Dec 20	∆	Mar 20
EURm			abs
Cash and other financial assets	1,065.5	1,220.9	(155.4)	909.4
Short-term debt	(50.9)	(214.2)	163.3	(51.8)
Short-term leasing	(21.5)	(21.4)	0.0	(22.9)
Net short-term cash	993.1	985.3	7.8	834.7
Long-term financial assets	11.4	11.0	0.4	2.8
Long-term debt	(1,167.7)	(1,173.4)	5.7	(1,282.9)
Long-term leasing	(67.5)	(64.5)	(3.0)	(79.8)
Net debt	(230.7)	(241.6)	10.9	(525.2)

Gross debt breakdown ( 1,307.6 €m )

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

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

Historical EBITDA development by country

E-MARKET SDIR
CERTIFIED

			2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
	Italy	EBITDA	10.3	-5.9	-18.1	-18.7	-37.2	-22.2	-79.7	-1.7	43.4	33.8
		margin	1.8%	-1.2%	-4.2%	-4.8%	-9.8%	-5.9%	-18.6%	-0.4%	8.6%	6.8%
	Germany	EBITDA	90.3	72.2	108.1	88.6	72.1	76.8	78.1	82.5	102.3	123.8
		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%
	Poland	EBITDA	36,9	21.8	27.1	18.2	22.7	23.4	24.1	31.9	32.1	35.3
		margin	26.6%	20.0%	26.8%	20.4%	20.4%	24.6%	24.9%	28.6%	25.9%	29.9%
	Ukraine	EBITDA	6.9	15.8	12.3	11.0	4.0	12.8	16.0	7.0	21.0	21.9
		margin	6.2%	11.8%	10.0%	12.5%	5.7%	16.1%	16.9%	8.0%	15.9%	18.9%
	Russia	EBITDA	65.7	96.1	92.6	73.4	48.4	43.2	46.0	50.1	57.7	52.9
		margin	37.4%	41.0%	37.2%	35.0%	29.0%	28.0%	24.9%	27.0%	26.9%	28.3%
	USA	EBITDA	71.4	123.9	151.0	207.3	311.7	356.5	369.6	341.2	402.7	444.2
		margin	12.8%	18.2%	20.7%	24.2%	28.1%	31.9%	33.0%	31.9%	32.4%	35.2%
	Mexico	EBITDA	82.6	97.5	77.5	Adoption of IFRS
		margin	34.7%	36.2%	33.2%	11
		EBITDA	434.3	455.1	481.2	422.7	473.2	550.6	508.2	577.2	728.1	780.8
	Group
		margin	15.6%	16.2%	17.5%	16.9%	17.8%	20.6%	18.1%	20.1%	22.6%	24.2%

2020 cement consumption vs peak

ITA

2006

2005

2003

2008

2019

2008

2014

2017

USA

GER

CZE

POL

UKR

RUS

MEX

BRA

Historical series cement consumption by country

Italian Investment Conference

Milan, 20 May 2021