Buzzi Unicem — Investor Presentation 2021

Apr 15, 2021

Engineering & Construction Conference

Milan, 15 April 2021

Executive Summary

2020 OVERVIEW	Cement volumes at 29.3 mt, substantially stable vs 2019 (29.1 mt), thanks to the progress achieved in US and Russia and the stability in Germany. Negative development in Eastern Europe and Italy. Ready Mix concrete volumes at 11.7 mt (-3.1%), more impacted by Covid19. Favorable variance in selling prices, in local currencies, in almost all the geographies
FINANCIALS	Net sales stable at 3,222 €m (3,221 €m in 2019) but +1.8% lfl, driven by Germany (+5.5%) and US (+1.5%). Negative trend in Eastern Europe (-7.7%) and Italy (-2.1%) EBITDA at 781 €m (728 €m in 2019), +7.2% (+10.3% lfl), driven by Germany (+21.0%) and US (+10.3%). Eastern Europe flat and Italy declined (-22.1%) due to pandemic impact
CASH GENERATION AND NET DEBT	Net cash flow from operations at 589 €m (575 €m in 2019). Cash Conversion Rate stable above 50% (54% in 2020 vs 52% in 2019) Net Debt at 242 €m (568€m in 2019). Net Debt/EBITDA ratio at 0.3x (0.8 in 2019)
2021 OUTLOOK	Energy cost inflation and higher CO price 2 Unfavorable trend in exchange rate Slight improvement in average selling prices but possibly not sufficient to fully offset cost inflation Recurring EBITDA expected to decrease in 2021 compared to 2020 results.

Volumes FY 2020

Price Index by country

FX changes

		2020	2019	D	2018	Current
EUR 1 =		avg	avg	%	Avg
	USD	1.14	1.12	-2.0	1.18	1.19
	RUB	82.72	72.46	-14.2	74.04	92.02
	UAH	30.85	28.92	-6.7	32.11	33.29
	CZK	26.46	25.67	-3.1	25.65	26.05
	PLN	4.44	4.30	-3.4	4.26	4.53
	MXN	24.52	21.56	-13.7	22.71	23.97
	BRA	5.89	4.41	-33.6	4.31	6.73

Analysis by geographical region – Italy and USA

Italy

• Decline in cement volumes (-2.8%) due to the significant pandemic impact. Ready-mix recorded a more marked contraction (-5.4%)
• Positive trend in prices
• Production costs down thanks to savings in fuel and energy

EURm	2020	2019	D%	lfl % D
Net Sales	501.1	504.7	(0.7)	(2.1)
EBITDA	33.8	43.4	(22.1)	(17.2)
EBITDA margin (%)	6.7	8.6

	USA
	Strong demand and favorable weather conditions pushed up volumes (+5.0%). Ready-mix weaker (-4.2%)

• Prices slightly up
• Favorable trend in energy costs. Ebitda margin at top level of the group

EURm	2020	2019	D%	D lfl %
Net Sales	1,260.6	1,242.5	1.5	3.5
EBITDA	444.2	402.7	10.3	12.5
EBITDA margin (%)	35.2	32.4

Analysis by geographical region – Central and Eastern Europe

	Central Europe	EURm	2020	2019	D%	D lfl %
Stable cement volumes (-0.5%), despite pandemic restrictions. Ready-mix 	Net Sales	875.5	843.7	4.1	3.5
	volumes increased (+3.1%), thanks to different scope  Positive pricing development	EBITDA	145.6	125.0	20.6	16.0
		EBITDA margin (%)	16.6	14.8
	Favorable trend in production costs 

• Cement volumes particularly weak in Poland (-5.3%) and Ukraine (-4.5%). In Russia cement volumes up (2.0%) thanks to good weather conditions and strong demand in Q4.
• Positive trend in prices, in local currency
• Negative fx impact, mainly due to ruble (-14.7%)

EURm	2020	2019	D%	D lfl %
Net Sales	587.0	635.9	(7.7)	(0.8)
EBITDA	156.9	157.1	(0.1)	7.2
EBITDA margin (%)	26.7	24.7

Analysis by geographical region – Mexico and Brazil (valued at equity)

	Mexico	EURm	2020	2019	D%	D lfl %
	 Increase in cement volumes (+12.4%) thanks to the marked recovery in public works sector	Net Sales (100%)	573.8	593.2	(3.3)	10.0
		EBITDA (100%)	265.0	252.2	5.1	19.5
	Prices, in local currency, flat 	EBITDA margin (%)	46.2	42.5
	Negative FX impact (Mexican peso -13.7%) 

Brazil	EURm	2020	2019	D%	lfl % D
Cement volumes visibly improved (+9.3%) 	Net Sales (100%)	139.1	134.7	3.2	37.9
 Strong trend in selling prices, in local currency	EBITDA (100%)	48.0	23.4	>100	>100
Negative FX impact (Brazilian Real -33.6%) 	EBITDA margin (%)	34.5	17.4

EBITDA variance analysis

	Dec 20	Dec 19	∆	Sept 20
EURm			abs
Cash and other financial assets	1,220.9	840.9	380.0	1,133.0
Short-term debt	(214.2)	(72.3)	(141.9)	(47.9)
Short-term leasing	(21.4)	(22.5)	1.1	(21.6)
Net short-term cash	985.3	746.1	239.2	1,063.5
Long-term financial assets	11.0	2.9	8.1	2.3
Long-term debt	(1,173.4)	(1,242.1)	68.7	(1,276.3)
Long-term leasing	(64.5)	(74.7)	10.2	(71.2)
Net debt	(241.6)	(567.8)	326.2	(281.7)

Gross debt breakdown (1,473.5 €m )

2021 Outlook

Key points

• Headwind from energy cost inflation and exchange rates.
• Price of CO² rights hitting new record figh.
• Italy: recovery in volumes thanks to easier comparison and growth in construction investments. Positive trend in selling prices
• Central Europe: volumes expected to decline slightly but prices still strengthening. Operating results in moderate decline.
• USA: Volumes expected to be supportive. Favorable price variance hampered by specific regional issues. Rising cost inflation likely to drive down EBITDA around 2019 level.
• Eastern Europe: subdued cement demand in Poland, Czech Republic and Ukraine. Russia should achieve a positive development of volumes thanks to a fairly brisk demand and a more positive outlook for oil prices.
• Capex: higher capex vs 2020, including several projects aimed at continous improvement of the operation efficiency as well as at the challenging CO² emission reductions.

Recurring EBITDA 2021

Recurring EBITDA expected to soften. The slowdown may be more or less significant depending on how the pandemic will evolve in the coming months, as well as its impact on economic activity in the geographic areas where the group operates

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

		2020	2019	D	D	Forex	Scope	D l-f-l
EURm				abs	%	abs	abs	%
	Italy	501.1	504.1	(3.6)	-0.7	-	6.9	-2.1
	United States	1,260.6	1,242.5	18.1	+1.5	(25.6)	-	+3.5
	Germany	717.0	679.6	37.4	+5.5	-	5.7	+4.7
	Lux / Netherlands	191.7	192.5	(0.8)	-0.4	-	-	-0.4
	Czech Rep / Slovakia	159.5	168.2	(8.7)	-5.2	(4.2)	-	-2.7
	Poland	117.8	123.4	(6.0)	-4.8	(4.0)	-	-1.6
	Ukraine	116.1	131.9	(15.8)	-12.0	(7.7)	-	-6.1
	Russia	195.8	214.5	(18.7)	+8.7	(27.8)	-	+4.2
	Eliminations	(37.1)	(36.1)	(1.0)
	Total	3,222.4	3,221.4	1.0	+0.03	(69.2)	12.6	+1.8
	Mexico (100%)	573.8	593.2	(19.4)	-3.3	(78.9)	-	-10.0
	Brazil (100%)	139.1	134.7	4.4	+3.2	(46.7)	-	+37.9

	2020	2019	D	D	Forex	Scope	D l-f-l
EURm			abs	%	abs	abs	%
Italy	33.8	43.4	(9.6)	-22.1	-	(2.1)	-17.2
United States	444.2	402.7	41.5	+10.3	(9.0)	-	+12.5
Germany	123.8	102.3	21.5	+21.0	-	0.6	+20.5
Lux / Netherlands	21.7	22.7	(1.0)	-4.0	-	-	-4.0
Czech Rep / Slovakia	46.8	46.3	0.5	+1.1	(1.4)	-	+4.2
Poland	35.3	32.1	3.2	+10.0	(1.2)	-	+13.5
Ukraine	21.9	21.0	0.9	+4.3	(1.5)	-	+11.0
Russia	52.9	57.7	(4.8)	-8.3	(7.5)	-	+4.8
Eliminations	(0.4)	(0.2)
Total	780.8	728.1	52.7	+7.2	(20.6)	(1.5)	+10.3
Mexico (100%)	265.0	252.2	12.8	+5.1	(36.4)	-	+19.5
Brazil (100%)	48.0	23.4	24.5	+>100	(16.1)	-	+>100

Net Cash Flow from Operations and Capex development

Dyckerhoff shares (above 95%) Dyckerhoff shares (squeeze-out) Cementizillo (Italy) Testi, Arquata, Borgo (Italy) Uralcement (Korkino, Russia) Seibel & Söhne (Germany) BCPAR Brazil 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net cash flow from operations Ordinary capex Expansion capex Equity Investment % Net cash flow from operations / Net sales % Ordinary capex / Net sales Eur m Cementizillo (earn out) Dyckerhoff shares (squeeze-out) 156 233 231 314 304 ^{236 218} 444 339 257 251 253 257 245 302 304 371 332 575 589 ^{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 3.5% 4.1% 5.7% 4.7% 5.3% 6.0% 5.5% 6.4% 6.7% 6.7% 9.0% 9.0% 10.2% 9.8% 11.3% 11.4% 13.2% 11.6% 17.9% 18.3%

Debt Maturity Profile – FY 2020

• Total nominal value of debt and borrowings stood at €m 1,223 at December 2020
• As at December 2020 available €m 321m of undrawn committed facilities (€m 299 for Buzzi Unicem, €m22 for Dyckerhoff)

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/ Netherlands Czech Rep/	EBITDA	35,0	8,3	11,5	15,9	19,7	25,8	17,6	23,1	22,7	21,7
		margin	15,7%	4,3%	6,3%	9,7%	11,7%	14,7%	9,4%	11,7%	11,8%	11,3%
		EBITDA	35,2	25,4	19,2	27,0	32,6	34,4	36,5	43,6	46,3	46,8
	Slovakia Poland Ukraine	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
		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
		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 Mexico	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%
		EBITDA	82,6	97,5	77,5	Adoption of IFRS 11
		margin	34,7%	36,2%	33,2%
		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%

Historical series of cement consumption by country

2020 cement consumption vs peak

Engineering & Construction Conference

Milan, 15 April 2021