Buzzi Unicem — Investor Presentation 2022

Nov 30, 2022

EXECUTIVE SUMMARY

BUZZI UNICEM AT A GLANCE: WELL POSITIONED TO CATCH FUTURE OPPORTUNITIES

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SHAREHOLDERS AND RETURN

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INDUSTRY LEADING PERFORMANCE THROUGH THE CYCLE (1)

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INDUSTRY LEADING PERFORMANCE THROUGH THE CYCLE (2)

INDUSTRY LEADING PERFORMANCE THROUGH THE CYCLE (3)

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INDUSTRY LEADING PERFORMANCE THROUGH THE CYCLE (4)

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9M 2022 HIGHLIGHTS

9M 2022 HIGHLIGHTS

9M 2022 IN BRIEF

Negative development of cement volumes in Q3, in line with the general slowdown in demand in our key regions. In all regions, selling prices have definitely strengthened in Q3 too netsaleslfl)inallSolid

Strong growth (+11.9% regions. pricing has overcome the negative volumes effect

Net cash position at 328 €m, improved vs FY and H1, thanks to solid cash generation

Guidance for 2022 confirmed: Recurring EBITDA to possibly reach a level similar to 2021

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PRICE INDEX BY COUNTRY

FY 2016=100

FX CHANGES

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

NET SALES BY COUNTRY

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

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TRADING BY GEOGRAPHIC AREA

UNITED STATES AND ITALY

United States

• Cement demand has remained robust despite the weakened activity in the residential sector. Marginal slowdown of volumes during Q3 due to some production and logistical problems (low water level of Mississippi)
• Second round of price increase in Q3 drove up selling prices
• Enduring pressure on production costs, fixed costs (mainly maintenance) as well as variable costs (fuels)

Italy

• Domestic demand was weaker, parly caused by uncertainties around private investments and construction activity, impacted by the enduring inflation on energy and non-energy items
• Power prices to the peak in Aug/Sept. Another round of price increase to compensate the soar of production costs

E U Rm	9 2 2 M	9 2 1 M	D %	f- l- l D %
l N S t e a e s	1, 1 9 1. 9	9 6 1. 5	2 3. 9 +	1 0. 2 +
E U Rm	9 2 2 M	9 2 1 M	D %	f- l- l D %
S l N t e a e s	1. 5 4 5	3. 1 4 5	1 9. 5 +	1 9. 5 +

CENTRAL AND EASTERN EUROPE

Central Europe

• Cement volumes in Germany have confirmed the positive trend thanks to favorable weather and stability in construction sector. Marginal slowdown in cement deliveries in Benelux in Q3.
• Selling prices have strengthened too.
• Energy costs inflation under control in Germany thanks to AFs and hedging. More challenging cost environment in Benelux

E U Rm	9 M 2 2	9 M 2 1	D %	l- f- l D %
l N S t e a e s	7 5 2. 5	6 5 6. 9	1 4. 6 +	1 4. 6 +
	9 M 2 2	9 M 2 1	D %	l- f- l D %
E U Rm
l N S t e a e s	5 2 4. 8	4 7 4. 9	1 0. 5 +	4. 3 +

Eastern Europe

• Cement volumes in Poland and Czech Rep. have turned negative in Q3 due to challenging comparison and weaker demand
• In Ukraine, cement volumes substantially halved with commercial and production activity only in Volyn (NW of the country).
• Selling prices moved up significantly

MEXICO AND BRAZIL

Mexico

• Restrictive monetary policy and risk associated to the slowdown of US economy have weaked the investment activity
• Cement volumes have showed a partial recovery in Q3. Prices have gained traction again during the summer
• Enduring pressure on production costs mainly due to fuels

			i l
B	r a	z

• Activity in the construction sector has been steady, albeit the uncertainties fueled by high inflation and restrictivemonetary policy
• Cement volumes increased benefitting from additional contribution of the former CRH cement plants aquired in April 2021. Slight contraction of volumes on a lfl basis

Markedly higher selling prices but costs environment remained tough

E U Rm	9 2 2 M	9 2 1 M	D %	f- l- l D %
l N S t ( 1 0 0 % ) e a e s	5 5 2. 7	5 0 0. 6	1 0. 4 +	-1 1

E U Rm	9 M 2 2	9 M 2 1	D %	l- f- l D %
l N S t ( 1 0 0 % ) e a e s	2 9 8. 0	1 8 6. 7	5 9. 6 +	1 8. 7 +

2022 OUTLOOK

OUTLOOK 2022

In Q3 enduring inflation and higher financing and construction costs fueled the uncertainties related to the development of privateinvestmentswithanalreadyvisibleimpactontheconstructionactivity.

These dynamics might continue during Q4, mainly in markets more impacted by higher inflation and with a more visible slowdown in demand, such as Italy and Eastern Europe.

In US, higher interest rates will penalize the residential demand, without overturning our sales for the full year.

• Selling prices should continue to fuel revenue growth also during the last quarter
• Due to cost-push inflation, EBITDA margin will diminish despite the effectiveness of our efforts in improving prices

Guidance confirmed: 2022 recurring EBITDA expected to be inline with 2021

Capex: expected to be lower than budgeted due to some delays in supplies, but higher than 2021 and focused on the priorities identifies in the Roadmap

1. OUR JOURNEY TO NET ZERO

A REALISTIC PATH TO NET ZERO

HOW TO GET THERE

Proven track record in CO2 emissions reduction. Already reduced by ~20% CO2 emissions in 2021 vs 1990.

NEXT CHAPTER: NEW, SCIENCE BASED, REDUCTION TARGETS

Targeting to achieve CO2 emissions (scope 1 net) below 500 kg per ton of cementitious material by 2030, meaning another 20% reduction vs 2021 level*.

TCFD alignment SBTi validation on-going

ROADMAP 2030 –2050

Realistic path to turn ambition into reality

*scope including Brazil, excluding Russia

CLINKER CONTENT IN CEMENTS OUR TARGETS

67.3% In 2030

63.4%

In 2050

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ALTERNATIVE FUELS WITH BIOMASS OUR TARGETS

In 2021

45.4% In 2030

69.5%

In 2050

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CARBON CAPTURE, (USAGE) AND STORAGE

energy

into account

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GREEN ENERGY COOPERATION WITH TES&OGE - GERMANY

DEUNA CEMENT PLANT (GERMANY) WILL PARTIALLY CAPTURE ITS CO2 AND PARTICIPATE AT A CO2 CIRCULAR ECONOMY INITIATIVE. CAPEX: 35-50 €M

CARBON CAPTURE AT CEMENT PLANT IN DEUNA (THURINGIA)

CO2 emissions will be captured and transferred into liquid CO2 at Deuna cement plant. Initial start in 2027, scaled up for approx. 280,000 tons CO2 capture by 2030.

1,000 KM CO2TRANSPORT NETWORK

The CO2 will be transported* to Wilhelmshaven. From there is will be exported by TES for a circular closed looped system or sequestration.

GREEN ENERGY HUB WILHELMSHAVEN

TES will import green methane which can be used in turn in industrial processes.

* either by train through a JV of Rhenus & TES or by pipeline through a JV of OGE & TES.

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CATCH FOR CLIMATE - GERMANY

CI4C – CEMENT INNOVATION FOR CLIMATE WAS FOUNDEND BY BUZZI UNICEM/DYCKERHOFF, HEIDELBERGCEMENT, SCHWENK ZEMENT AND VICAT.

DEMONSTRATION PLANT ON INDUSTRIAL SCALE IN MERGELSTETTEN

CI4C will build and operate a demonstration plant, where the oxyfuel (from oxygen and fuel) process will be applied. EPC contract with tkIS signed.

CAPTURE OF CO2BY OXYFUEL PROCESS

Pure oxygen is introduced into the cement kiln instead of air: No other components gets into the burning process. Highly concentrated CO2 is created. ~100% of CO2 can be captured.

REFUELS

The captured CO2 is used to produce reFuels with the help of renewable electrical energy and turned into climateneutral synthetic fuels such as kerosene for air traffic.

THE CLEANKER PROJECT - ITALY

• • Advancing the integrated Calcium-Looping (CaL) process for CO2capture in cement plants

• •Starting date: October 1st 2017

• • Duration: 4 years + 1.5 years extension (Covid-related delays)

• •End date: March 31st 2023
• •Capex: EUR 9m, funded by Horizon 2020

• •Outcome:

• • Proved that CO2 capture takes place in the Calcium Looping systems

• •Oxyfuel calcination tested and managed
• •Next Step: CO2Capture and Storage in Italy

Partners

BUZZI UNICEM – ITALGAS FROM CARBON CAPTURE TO GAS

• is a leader gas distributor, first in Italy and third in Europe

• •MoU signed in December 2021
• •Scope of work: Feasibility study on the implementation of Power to Gas plants in combination with Carbon Capture Systems
• •Scientific advisor: Politecnico di Torino
• •Project timeline: Dec. 2021 – June 2022

• •Main project steps:

• 1. Technology definition
• 1. Market analysis
• 1. Business model development

Power to Gas technology

CARBON CAPTURE PILOT TEST PROJECTS IN USA

TECHNOLOGIES UNDER EVALUATION FOR PILOT TESTING

•Solventscrubbing

• •Membrane separation
• •Solvent-Sorbent Hybrid scrubbing

ESTIMATED PROJECT DEVELOPMENT COSTS AND CAPTURE RATE

• •Maryneal, TX: 10-15 USDm(capture rate: 15 t CO2/day)
• •Festus, MO: 15-30 USDm (capture rate: 42 t CO2/day)

PARTIAL FUNDING FROM US DEPARTMENT OF ENERGY

Planning to apply for partial funding from the US Department of Energy Grant Program

R&D grant could cover up to 80% of the pilot project cost

CAPEX REQUIREMENTS BY 2030

Expected capex requirements for 2030 target:

750 million euros

This plan leads to CO2 specific capex per year equal to 20-30% of the annual avg capex spending

Maintaining ~8% of capex* to net sales ratio over the period

*excluding financial investments

CAPEX AND CO2REDUCTION INTENSITY

Payback Duration(2)

l in ke in C te t ts r c on n ce m en	5 y < ea rs
l ive fu ls i h b iom A te t t te t rna e as s co n n w	5 y < ea rs
i l fu ls i h low iss ion fac Fo t to ss e w er em rs	1 5- 5 y ea rs
f f ic ien in lec ic d he l ion E tr t t cy e an rm a en erg co ns um p s y	5- 1 5 y ea rs
bo f e lec De iza ion ic i t tr ty ca r n o	5- 1 5 y ea rs
( 3) C C U / S	5 y < ea rs

(1) Including: Alternative fuels with biomass content, fossil fuels with lower emission factors and efficiency in electric and thermal energy consumption

(2) General assumption; not considering

(3) Only referring to Deuna CCUS installation

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DISCIPLINED AND BALANCED FINANCIAL APPROACH

WITHIN THE COMPANY….

• Margins protection, through organic gowth, adequate pricing and efficient cost management
• Selective decisions on Capex (~8% to Net Sales)
• Maintaining positive avg ROIC vs WACC spread
• Maintaining investment grade metrics (Net debt/EBITDA ratio of 1.5 x – 2.0 x)
• Focus on cash generation and allocating exceeding cash to M&A and shareholders

…AND EXTERNAL FUNDING

• Funding plan with access to fixed income markets and loan markets as well as private placements focusing on maturity profiles, flexibility and cost of funding.
• Proactively looking for public subsidies for developing new technologies
• ESG targets and metrics will be integrated in our financial documentations.

2021 CEMENT CONSUMPTION VS PEAK

Per capita consumption (kg)

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HISTORICAL SERIES CEMENT CONSUMPTION BY COUNTRY

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HISTORICAL EBITDA DEVELOPMET BY COUNTRY

		20 11	20 12	20 13	20 14	20 15	20 16	20 17	20 18	20 19	20 20	20 21
ly Ita	EBI TD A	10. 3	-5. 9	-18 .1	-18 .7	-37 .2	-22 .2	-79 .7	-1. 7	43 .4	33 .8	40 .8
	in ma rg	1.8 %	-1. 2%	2% -4.	8% -4.	-9. 8%	9% -5.	-18 .6%	-0. 4%	8.6 %	6.8 %	6.8 %
Ge rm an y	EBI TD A	90 .3	72 .2	108 .1	88 .6	72 .1	76 .8	78 .1	82 .5	102 .3	123 .8	127 .5
	in ma rg	14. 2%	12. 0%	18. 0%	14. 7%	12. 6%	13. 4%	13. 3%	13. 0%	15. 1%	17. 3%	18. 0%
Be lux ne	EBI TD A	35 .0	8.3	11. 5	15. 9	19. 7	25 .8	17. 6	23 .1	22 .7	21 .7	16. 5
	in ma rg	15. 7%	4.3 %	6.3 %	9.7 %	11. 7%	14. 7%	9.4 %	11. 7%	11. 8%	11. 3 %	8.2 %
Cz ech Re / p Slo kia va	EBI TD A	35 .2	25 .4	19. 2	27 .0	32 .6	34 .4	36 .5	43 .6	46 .3	46 .8	51 .3
	in ma rg	20 .5%	17. 0%	14. 6%	20 .2%	24 .0%	25 .2%	24 .7%	26 .5%	27 .5%	29 .4%	28 .9%
lan d Po	EBI TD A	36 .9	21 .8	27 .1	18. 2	22 .7	23 .4	24 .1	31 .9	32 .1	35 .3	31 .3
	in ma rg	26 .6%	20 .0%	26 .8%	20 .4%	20 .4%	24 .6%	24 .9%	28 .6%	25 .9%	29 .9%	24 .8%
Uk rai ne	EBI TD A	6.9	15. 8	12. 3	11. 0	4.0	12. 8	16. 0	7.0	21 .0	21 .9	13. 3
	in ma rg	6.2 %	11. 8%	10. 0%	12. 5%	5.7 %	16. 1%	16. 9%	8.0 %	15. 9%	18. 9%	10. 5%
ssi Ru a	EBI TD A	65 .7	96 .1	92 .6	73 .4	48 .4	43 .2	46 .0	50 .1	57 .7	52 .9	58 .6
	in ma rg	37 .4%	41 .0%	37 .2%	35 .0%	29 .0%	28 .0%	24 .9%	27 .0%	26 .9%	28 .3%	28 .3%
	EBI TD A	71 .4	123 .9	15 1.0	20 7.3	31 1.7	35 6.5	36 9.6	34 1.2	40 2.7	44 4.2	45 5.1
US A	in ma rg	12. 8%	18. 2%	20 .7%	24 .2%	28 .1%	31 .9%	33 .0%	31 .9%	32 .4%	35 .2%	34 .2%
Gr	EB ITD A	35 1.7	35 7.6	40 3.7	42 2.7	47 3.2	55 0.6	50 8.2	57 7.2	72 8.1	78 0.8	79 4.6
ou p lica tio ( IFR S a n) pp	in ma	13. 8%	14. 1%	16. 0%	16. 9%	17. 8%	20 .6%	18. 1%	20 .1%	22 .6%	24 .2%	23 .1%
	rg
Me xic o ( 50 %)	EBI TD A	82 .6	97 .5	77 .5	93 .9	128 .1	146 .7	164 .6	144 .5	126 .1	132 .5	14 1.3
	in ma rg	34 .7%	36 .2%	33 .2%	36 .0%	40 .9%	48 .2%	48 .0%	46 .3%	42 .5%	46 .2%	42 .7%
zil Bra ( 50 %)	EBI TD A								15. 9	11. 7	24 .0	40 .5
	in ma rg								23 .9%	17. 4%	34 .5%	31 .9%
Gr ou p (pr ion al tho d) ort op me	EB ITD A	43 4.3	45 5.1	48 1.2	51 6.6	60 1.3	69 7.3	67 2.8	72 1.7	86 5.9	93 7.3	97 6.4
	in ma rg	14. 4%	14. 8%	17. 5%	18. 7%	20 .2%	23 .5%	21 .4%	22 .7%	24 .2%	26 .2%	25 .0%

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DISCLAIMER

THIS REPORT CONTAINS COMMITMENTS AND FORWARD-LOOKING STATEMENTS BASED ON ASSUMPTIONS AND ESTIMATES. EVEN IF THE COMPANY BELIEVES THAT THEY ARE REALISTIC AND FORMULATED WITH PRUDENTIAL CRITERIA, FACTORS EXTERNAL TO ITS WILL COULD LIMIT THEIR CONSISTENCY (OR PRECISION, OR EXTENT), CAUSING EVEN SIGNIFICANT DEVIATIONS FROM EXPECTATIONS. THE COMPANY WILL UPDATE ITS COMMITMENTS AND FORWARD-LOOKING STATEMENTS ACCORDING TO THE ACTUAL PERFORMANCE AND WILL GIVE AN ACCOUNT OF THE REASONS FOR ANY DEVIATIONS.