Buzzi Unicem — Investor Presentation 2022

Sep 8, 2022

Infrastructure & Energy Day - Borsa Italiana

Milano, 8 September ²⁰²²

AGENDA

• 1. 2022 OUTLOOK
• 1. OUR JOURNEY TO NET ZERO
• APPENDIX

1. H1 2022 HIGHLIGHTS

H1 2022 HIGHLIGHTS

EBITDA (€m)

NFP (€m)

H1 2022 IN BRIEF

Overall stable demand across the regions. High inflation and uncertainties started to have an impact, mainly in Europe

Sequential double-digit prices increases implemented in every country with Italy, Eastern Europe and USA leading the way

Price over cost negative in H1 but prices started to catch up in Q2

Strong net sales growth (+12.1% lfl) in all regions, driven by solid pricing.

EBITDA just slightly down lfl vs H1 ²⁰²¹ due to higher costs (energy +70%)

• Net cash position at ¹¹⁴ €m, improved vs Q1 but still lower vs ²⁰²¹ due to the spike in working capital and share buyback
• Revised guidance for 2022: Recurring EBITDA to possibly reach ^a level similar to ²⁰²¹

PRICE INDEX BY COUNTRY

FY 2016=100

ENERGY COSTS IMPACT

Total energy (excl. Russia)

Energy cost (€m)

Energy cost / Revenues*

5Infrastructure & Energy Day | 8 September 2022

Power & Fuel (excl. Russia)

EBITDA VARIANCE ANALYSIS

EURm

FX CHANGES

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

NET SALES BY COUNTRY

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

EBITDA BY COUNTRY

	H 1 2 0 2 2	H 1 2 0 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	3 6 5.	3 2. 7	2. 9	8. 9 +	-	-	8. 9 +
i d U S t t t n e a e s	1 8 0. 6	1 8 1. 6	( 1. 0 )	-0 6	1 6. 8	-	-9 8
G e r m a n y	6 4. 5	6 0. 6	3. 9	6. 5 +	-	-	6. 5 +
h l d L / N t u x e e r a n s	4. 8	6. 9	( 2. 1 )	-3 0. 0	-	( 0. 1 )	-2 9. 2
C h S l k i R / z e c e p o v a a	2 9. 4	2 3. 4	9 5.	2 5. 4 +	1. 4	-	1 9. 6 +
l d P o a n	1 7. 6	1 6. 2	1. 4	8. 8 +	( 0. 4 )	-	1 1. 2 +
k i U r a n e	-3 5	5. 6	1 ( 9. )	n. s.	( 0. 2 )	-	n. s.
R i s s a u	3 6. 0	2 5. 2	1 0. 8	4 3. 0 +	1. 7	-	3 6. 4 +
d j A tm ts us en	0. 1	0. 3
l T t o a	3 6 5. 1	3 5 2. 5	1 2. 6	3. 6 +	1 9. 2	( 0. 1 )	1. 9 -
i 1 0 0 % M ( ) e c o x	1 9. 4 5	1 0. 9 5	1. ( 4 )	-0 9	1 3. 3	-	-9 7
i l 1 0 0 % B ( ) r a z	6. 6 4	3 0 7.	9. 6	2 6. 0 +	6. 7	9 ( 5. )	-8 0

NET FINANCIAL POSITION

	Ju 2 2 n	1 De 2 c	∆	1 Ju 2 n
E U Rm			bs a
Ca h d he f ina ia l a t ts s an o r nc ss e	1, 0 6 2. 3	1, 2 0 7. 5	1 2 ( 4 5. )	9 1. 8 5
ho de b S t- te t r rm	( 6 2 1. 6 )	( 1 5 5. 1 )	( 4 6 6. 5 )	( 1 0 2. 2 )
S ho lea ing t- te r rm s	2 3. 6 ( )	2 2. ( 5 )	1. 2 ( )	2 1. 1 ( )
ho h Ne t s t- te r rm ca s	4 1 7. 1	1, 0 2 9. 9	( 6 1 2. 8 )	8 2 8. 5
f ina ia l a Lo -te ts ng rm nc ss e	2 6 3 7.	2 2. 3 5	1 0 5.	2 1 8 4.
de b Lo -te t ng rm	( 5 1 2. 0 )	( 9 9 0. 9 )	4 7 8. 9	( 1, 0 8 7. 0 )
Lo lea ing -te ng rm s	( 5 8. 2 )	( 5 5. 8 )	( 2. 4 )	( 6 5. 0 )
de b Ne t t	1 1 4. 2	2 3 5. 5	( 1 2 1. 3 )	( 1 0 8. 8 )
de b br k do Gr ( 1. 2 1 5, 4 €m ) t os s ea wn

2. 2022 OUTLOOK

2022 OUTLOOK

During H2, construction activity in Italy and Central Europe may be penalized by less favorable development in the residential sector, which bears the higher financing and construction costs, and some delays in the implementation of infrastucture ^plans. Construction activity in the USA expected to continue to be lively.

Selling prices should continue to fuel revenue growth in H2

• Production costs expected to remain at record level but in H2 comps should be easier (except for Italy)
• Thanks to better visibility on the year, guidance raised compared to previous indications: ²⁰²² recurring EBITDA expected to be in line with ²⁰²¹

3. OUR JOURNEY TO NET ZERO

OUR JOURNEY 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 alignmentSBTi validation on-going

ROADMAP 2030 – ²⁰⁵⁰

Realistic path to turn ambition into reality

764594<500^{1990 2021 2030 2050} Scope 1 net CO2 emissionsKg CO Net Zero2/t cementitious product (net)

*scope including Brazil, excluding Russia

CLINKER CONTENT IN CEMENTS

67.3%In 2030

63.4%

In 2050

ALTERNATIVE FUELS WITH BIOMASS CONTENT

45.4%In 2030

69.5In 2050

16Infrastructure & Energy Day | 8 September 2022

%

CCU/S: GREEN ENERGY COOPERATION WITH TES&OGE IN DEUNA

DEUNA CEMENT PLANT (GERMANY) WILL PARTIALLY CAPTURE ITS CO2 AND PARTICIPATE AT A CO2CIRCULAR 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 CO2 TRANSPORT 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.

CCU/S: CATCH FOR CLIMATE

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 (fromoxygen 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 climate-neutral synthetic fuels such as kerosene for air traffic.

CAPEX REQUIREMENTS BY 2030

Expected capex requirements for 2030 target:

750 million euros

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

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

*excluding financial investments

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

SHARES & SHAREHOLDERS | SHAREHOLDERS RETURN

HISTORICAL EBITDA DEVELOPMENT BY COUNTRY

		20 11	20 12	20 13	20 14	20 15	20 16	20 17	20 18	20 19	20 20	20 21
	EBI TD A	10. 3	9 -5.	-18 .1	-18 .7	-37 .2	-22 .2	-79 .7	-1. 7	43 .4	33 .8	40 .8
Ita ly	in ma rg	1.8 %	-1. 2%	-4. 2%	-4. 8%	-9. 8%	-5. 9%	-18 .6%	-0. 4%	8.6 %	6.8 %	6.8 %
	EBI TD A	90 .3	72 .2	108 .1	88 .6	.1 72	76 .8	.1 78	82 .5	102 .3	123 .8	127 .5
Ge rm an y	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%
	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
lux Be ne	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 %
ech Cz Re / p	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
Slo kia va	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%
	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
Po lan d	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%
	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
Uk rai ne	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%
	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
Ru ssi a	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	4.2 44	5.1 45
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 ou p	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
( IFR S a lica tio n) pp	in ma rg	13. 8%	14. 1%	16. 0%	16. 9%	17. 8%	20 .6%	18. 1%	20 .1%	22 .6%	24 .2%	23 .1%
	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
xic Me o ( 50 %)	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%
Bra zil 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	EB ITD A	43 4.3	5.1 45	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
ion al tho d) (pr ort op me	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%

2021 CEMENT CONSUMPTION VS PEAK

HISTORICAL SERIES CEMENT CONSUMPTION BY COUNTRY

DISCLAIMER

THIS REPORT CONTAINS COMMITMENTS AND FORWARD-LOOKINGSTATEMENTS BASED ON ASSUMPTIONS AND ESTIMATES. EVEN IF THE COMPANY BELIEVES THAT THEY ARE REALISTIC AND FORMULATED WITHPRUDENTIAL 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.

Infrastructure & Energy Day - Borsa Italiana

Milano, 8 September ²⁰²²