Buzzi Unicem — Investor Presentation 2023

Jun 21, 2023

9th Italian CEO Conference

Mediobanca

Milan, 21 June 2023

EXECUTIVE SUMMARY

• 1. COMPANY OVERVIEW
• 2. KEY INVESTMENT HIGHLIGHTS
• 3. Q1 2023 OVERVIEW
• 4. OUR JOURNEY TO NET ZERO

1. COMPANY OVERVIEW

BUZZI AT A GLANCE: WELL POSITIONED TO CATCH FUTURE OPPORTUNITIES

Well balanced portfolio with exposure to mature as well as emerging markets Strong market position in USA and Eurozone, enabling us to capture the local opportunities Relevant exposure to Mexico and Brazil, countries with attractive prospects in population growth and urbanization

Above 40 mt of cement capacity available and 400 concrete plants (incl. JVs)

Strategy focused on long term and sustainable growth

Proven ability to deliver strong financial perfomance and free cash flows

Clear commitment to sustainability and value creation for all stakeholders

MORE THAN 110 YEARS OF HISTORY

1 9 0 7- 5 0	1 9 5 1- 7 5	1 9 7 6- 9 9	1 2 0 0 0 5 -	1 2 0 6- 2 2
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ark lan d, C h R blic kra (*) Ne ets: Po , U w m zec epu	S f e de d tar t o xp an lay du ion t c p ro c ine , G bur the rlan ds and , Lu Ne Ru erm any xem g,	is ing l ian k L Ita S t to o n c Exc ha ng e ssia	Dy c r 2 0 1 2 0 1 4 - 5 f k Ac is it ion Ko ino q u o r lan ( R U ) t p ; Ne l ine in Ma l ( T X ) w ry ne a	2 0 2 2 f t he Ce t as em en o ion l inv lve in t nt op era a o me ia Ru ss

(TX)

SHAREHOLDERS STRUCTURE AND DIVIDENDS

DPS and payout

2. KEY INVESTMENTS HIGHLIGHTS

INDUSTRY LEADING PERFORMANCE THROUGH THE CYCLE

EURm

Sa les Ne t	E B I T D A	in % E B I T D A M ar g
fu So l i d h le d by d de d, dr ive by t g row e so un m an n de l, fra ds d i ia in t tru tu res n s c re ne e a n no n i de ia l re t res n co ve ry.	Ov io l h Sa les Ne t t to t er p ro p or na g ro w ha f g d M 5 0 % E B I T D A in t te or e n o ro up g en er a he U S A t	fo d ing dr ive by Le t a p er rm an ce n co s f f d ic ien ies e cy an sy ne rg
C A G R ( 2 0 1 0- 2 0 2 2 ) 3. 2 % : +	C A G R ( 2 0 1 0- 2 0 2 2 ) 6. 6 % : +	bp 7 0 0 2 0 1 0. + s v s

HISTORICAL EBITDA BY COUNTRY

		20 12	20 13	20 14	20 15	20 16	20 17	20 18	20 19	20 20	20 21	20 22
Ita	EBI TD A	( 5.9 )	( 18. 1)	( 18. 7)	( 37 .2)	( 22 .2)	( 79 .7)	( 1.7 )	43 .4	33 .8	40 .8	82 .0
ly	in ma rg	-1. 2%	-4. 2%	-4. 8%	-9. 8%	-5. 9%	-18 .6%	-0. 4%	8.6 %	6.8 %	6.8 %	11. 3%
Ge	EBI TD A	72 .2	108 .1	88 .6	72 .1	76 .8	78 .1	82 .5	102 .3	123 .8	127 .5	120 .5
rm an y	in ma rg	12. 0%	18. 0%	14. 7%	12. 6%	13. 4%	13. 3%	13. 0%	15. 1%	17. 3%	18. 0%	15. 1%
	EBI TD A	8.3	11. 5	15. 9	19. 7	25 .8	17. 6	23 .1	22 .7	21 .7	16. 5	7.0
lux Be ne	in ma rg	4.3 %	6.3 %	9.7 %	11. 7%	14. 7%	9.4 %	11. 7%	11. 8%	11. 3%	8.2 %	3.1 %
	EBI TD A	25 .4	19. 2	27 .0	32 .6	34 .4	36 .5	43 .6	46 .3	46 .8	51 .3	56 .8
ech Slo kia Cz Re / p va	in ma rg	17. 0%	14. 6%	20 .2%	24 .0%	25 .2%	24 .7%	26 .5%	27 .5%	29 .4%	28 .9%	28 .2%
	EBI TD A	21 .8	27 .1	18. 2	22 .7	23 .4	24 .1	31 .9	32 .1	35 .3	31 .3	27 .2
lan d Po	in ma rg	20 .0%	26 .8%	20 .4%	20 .4%	24 .6%	24 .9%	28 .6%	25 .9%	29 .9%	24 .8%	19. 2%
Uk rai	EBI TD A	15. 8	12. 3	11. 0	4.0	12. 8	16. 0	7.0	21 .0	21 .9	13. 3	6.8 ( )
ne	in ma rg	11. 8%	10. 0%	12. 5%	5.7 %	16. 1%	16. 9%	8.0 %	15. 9%	18. 9%	10. 5%	-11 .4%
	EBI TD A	96 .1	92 .6	73 .4	48 .4	43 .2	46 .0	50 .1	57 .7	52 .9	58 .6	99 .6
ssi Ru a	in ma rg	41 .0%	37 .2%	35 .0%	29 .0%	28 .0%	24 .9%	27 .0%	26 .9%	28 .3%	28 .3%	34 .3%
	EBI TD A	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	49 7.5
US A	in ma rg	18. 2%	20 .7%	24 .2%	28 .1%	31 .9%	33 .0%	31 .9%	32 .4%	35 .2%	34 .2%	31 .3%
Gr ou p	EB ITD A	35 7.6	40 3.7	42 2.7	3.2 47	0.6 55	50 8.2	7.2 57	72 8.1	78 0.8	79 4.6	88 3.7
lica ( IFR S a tio n) pp	in ma rg	14. 1%	16. 0%	16. 9%	17. 8%	20 .6%	18. 1%	20 .1%	22 .6%	24 .2%	23 .1%	22 .1%
	EBI TD A	97 .5	77 .5	93 .9	128 .1	146 .7	164 .6	144 .5	126 .1	132 .5	14 1.3	152 .9
xic Me o ( 50 %)	in ma rg	36 .2%	33 .2%	36 .0%	40 .9%	48 .2%	48 .0%	46 .3%	42 .5%	46 .2%	42 .7%	39 .8%
zil 50 Bra	EBI TD A							15. 9	11. 7	24 .0	40 .5	59 .4
%) (	in ma rg							23 .9%	17. 4%	34 .5%	31 .9%	29 .7%
Gr ou p	EB ITD A	45 5.1	48 1.2	51 6.6	60 1.3	69 7.3	67 2.8	73 7.6	86 5.9	93 7.3	97 6.4	1, 09 6.0
(pr ion al tho d) ort op me	in ma rg	14. 8%	17. 5%	18. 7%	20 .2%	23 .5%	21 .4%	22 .7%	24 .2%	26 .2%	25 .0%	23 .3%

SOUND CASH GENERATION AND VALUE CREATIVE CAPITAL ALLOCATION

~ 4.2 billion euros invested in our industrial asset (2010-2022) thereof ~ 710 million euros in special projects dedicated to installed capacity expansion

Invested ~ 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)

~ 4.7 billion euros cash generated from operations over the period (CAGR ~4%)

EURm

STRONG BALANCE SHEET, PRESERVING INVESTMENT CAPACITY FOR GROWTH

CASH RETURN TO SHAREHOLDERS

DISCIPLINED AND BALANCED FINANCIAL APPROACH

WITHIN THE COMPANY….

• Margins protection, through organic growth, 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 ne w technologies
• ESG targets and metrics will be integrated in our financial documentations.

3. Q1 2023 OVERVIEW

Q1 IN BRIEF

Still challenging operating context with negative development of volumes in Q1, in line with generalized slowdown of demand.

Q1 cement and rmx volumes contracted in European markets andUS, while volumes increased in Mexico and Brazil.

Strengthening of selling prices continued in Q1, albeit with varying degrees of intensity. Step up of selling prices in Central Europea, Poland and Czech. Further round up in USA. No significant changes in Italy

Net Sales at 956 €m (+19.5%, +16% lfl), driven by the positive price effect. Favorable fx fluctuations (dollar and ruble) contributed €m 28

Net cash position remained at 279 €m, stable compared to FY22.

Guidance confirmed: 2023 EBITDA should easily match the level achieved in 2022.

Q1 2023 HIGHLIGHTS

NET SALES BY COUNTRY

	Q 1 2 3	Q 1 2 2	∆	∆	Fo re x	S c o p e	f- l- l ∆
E U Rm			bs a	%	bs a	bs a	%
ly I t a	2 0 3. 7	1 6 3. 3	0. 4 4	2 8 4. +	-	-	2 8 4. +
i d U S t t t n e a e s	3 7 5. 0	3 0 1. 9	7 3. 1	2 4. 2 +	1 6. 3	-	1 8. 8 +
G e rm a ny	1 9 5. 1	1 7 5. 4	1 9. 7	1 1. 2 +	-	-	1 1. 2 +
he la d Lu / Ne t x r n s	3. 9 5	2. 0 5	1. 9	3. 7 +	-	-	3. 7 +
h lo k ia Cz Re / S e c p va	4 0. 6	3 7. 3	3. 3	9. 0 +	1. 3	-	5. 5 +
la d Po n	3 3. 2	2 9. 2	4. 0	1 3. 8 +	( 0. 6 )	-	1 5. 9 +
kr U in a e	9. 7	1 3. 1	( 3. 4 )	-2 6. 1	( 2. 1 )	-	-1 0. 1
ia Ru s s	6 0. 1	3 8. 2	2 1. 9	5 7. 3 +	1 2. 7	-	2 4. 1 +
l im ina ion E t s	( 1 5. 4 )	( 1 0. 3 )	( 5. 2 )
l To t a	9 5 5. 9	8 0 0. 1	1 5 5. 8	1 9. 5 +	2 7. 6	-	1 6. 0 +
ic 1 0 0 % M ( ) ex o	2 2. 0 4	1 6 6. 6	3 7 5.	2 4 5. +	3 1. 0	-	2 6. 6 +
i l Br ( 1 0 0 % ) az	9 2. 5	7 5. 2	1 7. 4	2 3. 1 +	4. 6	-	1 6. 9 +

4. OUR JOURNEY TO NET ZERO

REDUCTION OF CO2EMISSION

Specific gross CO2emissions declined by 3.6% to 664 kg CO2/t cem.mat, reaching the target as planned (-5% vs 2017)

Main factors which contributed to meet the target:

-Significantreductionofclinkerfactorthanks to the changes in product mix applied by every country

• Further increase in alternative fuels rate

27,8

29,9

(%)

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

ROADMAP 2030 – 2050

Realistic path to turn ambition into reality

*scope including Brazil, excluding Russia

Kg CO

2

/t cementitious

product (net)*

EXPECTED CAPEX BY 2030

750€m

Expected capex requirements for 2030 target

20-30%

CO2specific capex on total annual spending

~ 8%

Capex to net sales ratio over the period

2030 CO2TARGETS VALIDATED BY SBTi

In March 2023, the Science Based Targets initiative (SBTi) has formally validated the scope 1 and scope 2 decarbonization targets envisaged by the roadmap"Our Journey to Net Zero"

@

Our targets are aligned with the objective of keeping climate warming "well below 2°", as defined by the 2015 Paris Climate Agreement.

VOLUMES

Ready-mix concrete(mm3)

12,1

2021 2022

11,5

Q123

2,7

Q122 2,4

PRICE INDEX BY COUNTRY

FY 2016=100

HISTORICAL CEMENT CONSUMPTION BY COUNTRY

2022 CEMENT CONSUMPTION VS PEAK

Per capita consumption (kg)

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.