Buzzi Unicem — Investor Presentation 2022

Jun 22, 2022

Milano, 22 June 2022

AGENDA

1. OUR JOURNEY TO NET ZERO 2. Q1 2022 HIGHLIGHTS 3. TRADING BY GEOGRAPHIC AREAS APPENDIX

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1. 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 alignment SBTi validation on-going

ROADMAP 2030 –2050

Realistic path to turn ambition into reality

*scope including Brazil, excluding Russia

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CLINKER CONTENT IN CEMENTS

67.3% In 2030

63.4%

In 2050

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ALTERNATIVE FUELS WITH BIOMASS CONTENT

45.4% In 2030

69.5%

In 2050

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FOSSIL FUELS WITH LOWER EMISSION FACTOR

The combustion of methane gas with the same energy supplied emits about half the CO2 emitted by the combustion of coal or petcoke.

from 2030

Contribution of methane to thermal energy from fossil fuels

CARBON CAPTURE, (USAGE) AND STORAGE

1 % 48 % In 2030 In 2050

Additional CO2 emissions due to the thermal energy requested by CCUS has not been taken into account

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

DEUNA CEMENT PLANT (GERMANY) WILL PARTIALLY CAPTURE ITS CO 2 AND PARTICIPATE AT A CO 2 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 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.

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* 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 (from oxygen and fuel) process will be applied. EPC contract with tkIS signed.

CAPTURE OF CO2 BY 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 CO2can 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.

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ABSOLUTE EMISSIONS scope1 GROSS + scope2

BREAKDOWN BY LEVERS INCLUDING ELECTRICITY DECARBONIZATION

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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

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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.

2. Q1 2022 HIGHLIGHTS

Q1 2022 HIGHLIGHTS

Q1 2022 IN BRIEF

Demand has been lively across the regions, despite some uncertainties linked to the surge in raw materials, mainly in Europe

Selling prices moved up, with Italy, Eastern Europe and USA leading the way

Strong net sales growth (+14.5% lfl) in all regions, driven by robust price development and overall solid level of activity

Net Financial Position remains positive but to a less extent vs 2021 due to the spike in working capital. Repurchased ~4% of share in Q1 (€m 122)

Guidance: recurring EBITDA to possibly decline 10% vs 2021.

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PRICE INDEX BY COUNTRY

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FX CHANGES

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

NET SALES BY COUNTRY

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

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NET FINANCIAL POSITION

Mar 22	Dec 21	△	Mar 21
		abs
966.9	1,207.5	(240.6)	1,065.5
(127.4)	(155.1)	27.7	(50.9)
(24.3)	(22.5)	(1.9)	(21.5)
815.2	1,029.9	(214.7)	993.1
266.4	252.3	14.1	11.4
(995.0)	(990.9)	(4.2)	(1,167.7)
(58.1)	(55.8)	(2.3)	(67.5)
28.4	235.5	(207.1)	(230.7)

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3. TRADING BY GEOGRAPHIC AREAS

ITALY AND UNITED STATES

Italy

• Domestic demand was weaker, parly caused by uncertainties linked to the surge of raw materials
• Selling prices have significantly increased in order to compensate the higher production costs (energy)

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

United States

• Lively demand, driven by residential and new infrastructure projects. Positive trend in cement, negative in concrete, impacted by shortage of labor
• Material improvement in selling prices (first round implemented in January)
• Higher production costs (energy, logistics and raw mat.)
• Switch to Type 1L cement effective already in Q1

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

CENTRAL AND EASTERN EUROPE

Central Europe

• Cement volumes moved up thanks to good level of activity in construction sector and easy comps.
• Selling prices have strengthened too.
• Energy costs inflation under control thanks to high fossil fuels substitution and hedging policy

Eastern Europe

• Solid trend in Poland and Czech Rep. thanks mainly to easy comps.
• In Russia, demand started stable and then weakened in March affected by the deterioration of the macroeconomic scenario
• In Ukraine, much more visible decline: the outbreak of the conflict imposed a production and commercial lockdown from the end of February
• Selling prices moved up significantly
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E U Rm	Q 1 2 2	Q 1 2 1	D %	l- f- l D %
l S N t e a e s	2 1 9. 9	1 8 0 5.	1 8. 9 +	1 8. 9 +
E U Rm	Q 1 2 2	Q 1 2 1	D %	l- f- l D %
l N S t e a e s	1 1 7. 0	9 9. 1	1 8. 1 +	2 0. 5 +

MEXICO AND BRAZIL

Mexico

• Domestic demand contraction, penalized by challenging comps and some delays in construction investments
• Prices gained traction from January on
• Higher production costs driven by fuels

E U Rm	Q 1 2 2	Q 1 2 1	D %	f- l- l D %
S l N t 1 0 0 % ( ) e a e s	1 6 6. 6	1 6 0. 7	3. 7 +	-2 8

Brazil

• Construction sector was steady, thanks to public spending to support social housing and infrastructure
• Cement volumes increased benefitting from additional contribution of the former CRH cement plants aquired in April 2021. Flat volumes on a l-f-l basis, mainly due to touygh comps.
• Significant rise in selling prices but production costs increased too

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

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

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SHARES & SHAREHOLDERS | SHAREHOLDERS RETURN

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INDUSTRY LEADING PERFOMANCE THROUGH THE CYCLE

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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
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%	-4. 2%	-4. 8%	-9. 8%	-5. 9%	-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%
lux Be 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 %
ech Cz 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%
Ru ssi 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%
US A	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
	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 S a lica tio ( IFR n) pp	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
	in ma rg	13. 8%	14. 1%	16. 0%	9% 16.	17. 8%	20 .6%	18. 1%	20 .1%	22 .6%	24 .2%	23 .1%
xic Me 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 50 %) Bra (	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 ion al tho d) (pr 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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STRONG CASH GENERATION AND VALUE CREATIVE CAPITAL ALLOCATION

Over the last 10 years, we have invested 3.2 billion euros in our industrial assets, thereof ca. 700 million euros in special projects dedicated to installed capacity expansion

In the same period, we have invested ca. 700 million euros in equity investments, in order to enter in new countries (Brazil, 2018) and to strenghten our position in existing markets (Germany and Italy)

From 2010, we have generated strong cash flows from operations (ca. 4.3 billion euros) with a CAGR equal to +8%

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STRONG CASH GENERATION AND VALUE CREATIVE CAPITAL ALLOCATION

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2021 CEMENT CONSUMPTION VS PEAK

Per capita consumption (kg)

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HISTORICAL SERIES CEMENT CONSUMPTION BY COUNTRY

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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.