Buzzi Unicem — Investor Presentation 2023

Mar 29, 2023

2022 FULL YEAR RESULTS

29 March 2023

Pietro Buzzi – CEO

2022 IN BRIEF

Net Sales growth in every region. Consolidated figures reached 3,996 €m (+9.6% lfl), highest result in company history. Strong increase in recurring EBITDA (892 €m; +3.1% lfl). Italy and US compensated weaker Central and Eastern Europe. EBITDA margin below 2021 but it recovered during H2 thanks to pricing momentum and some softening in energy prices.

Cash generated from operations suffered from working capital absorption and higher capex. ROCE over WACC still positive despite higher cost of capital.

Shareholders return: increased dividend by 12.5% at 0.45 € ps. Payout ratio approaching 20%.

Specific CO2 emissions (gross) reduced by 3.6% vs 2021 allowing to reach the internal target (-5% vs 2017) 2030 CO2reduction program validated by SBTi and aligned to "well below 2°" scenario.

2023 group recurring EBITDA expected to remain stable versus 2022.

2022 KEY FIGURES

* Recurring ** adj by non rec. Items, including goodwill

CEMENT AND RMX VOLUMES VARIANCE

Cement volumes (mton)

Ready-mix volumes (mm3 )

NET SALES VARIANCE ANALYSIS

NET SALES AND EBITDA BREAKDOWN BY AREA

• Italy's contribution to EBITDA doubled: prices and power subsidies fully offset negative volumes and spike in energy costs.
• Central Europe slipped back due to costs inflation and less aggressive pricing strategy; Eastern Europe stable despiteUkraine.
• USA remained the biggest contributor to consolidated recurring EBITDA

EBITDA BRIDGE

11,8%

9,8%

FY 22

ENERGY COSTS Total energy* Power & Fuel* 287 252 269 295 310 254 342 529 19,0% 16,4% 16,5% 17,2% 16,3% 13,2% 16,3% 21,6% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY 22Energy cost (€m) Energy cost/Revenues 10,1% 9,6% 9,0% 8,8% 8,7% 8,2% 9,5% 8,8% 6,8% 7,5% 8,4% 7,6% 5,0% 6,8% FY15 FY16 FY17 FY18 FY19 FY20 FY21Power Costs (€/ton) Fuel Costs (€/ton) Power Costs / Revenues Fuel Costs / Revenues

* ex. Russia; only cement

TRADING BY GEOGRAPHICAL AREA

UNITED STATES OF AMERICA

• Cement demand has been stable over the year, with some slow down in H2 due to higher interest rates and the inflation of building materials.
• Q4 cement volumes have contracted more than forecasted: generalized slowdown in cement demand and logistical problems along the Mississippi river influenced the dynamics of our shipments.
• Pricing momentum and softening in energy costs, allowed price over cost trend to recover in H2.
• Net Sales and EBITDA increased. Significant FX tailwind.

Margins still under pressure due to enduring high production costs.

ITALY

• Construction investments slowed down in H2, held back by inflation, rising interest rates and concerns about recession. Domestic cement consumption estimated to decrease by 8%, but rising imports.

• Cement and rmx volumes further declined in H2.

• Sequential price increases allowed to compensate higher production costs (fuels and power >2x).

• Price over cost started to widen again in Q3 and Q4.
• Strong increase in Net sales (+20.1%) and EBITDA doubled compared to 2021 thanks also to tax credit (38 €m).

CENTRAL EUROPE

• Demand slowed down due to more evident weakness in commercial and public works, while residential sector remained stable.
• Q3 and Q4 volumes declined due to weaker demand and harsher winter.
• Good development of selling prices but more pricing momentum is expected for 2023.
• Stable price-over cost in Germany; squeeze off the profitability in Benelux.
• Overall Net sales growth while EBITDA declined due to higher operating costs (mainly in Benelux) and more challenging comps in 2021 (Germany).

EASTERN EUROPE

• Construction activity impacted by the war, mainly regarding availability and prices of building materials. Overall, demand remained resilient (high volume of building permits after pandemic) but started to weaken during H2.
• Cement volumes declined from H2 onwards, in line with the demand.
• Challenging energy costs environment but price-over cost remained positive thanks to price increases.
• Significant FX tailwinds.

Positive development for Net Sales and EBITDA, despite the challenging operating context in Ukraine which negatively impacted the results.

MEXICO

* Recurring ; figures at 100% Cement sales closed down but started to catch up from August.

• The unitary production costs worsened, impacted by energy increases, in particular fuels, and by higher fixed costs.
• Price over cost remained stable thanks also to good pricing momentum in H2.
• EBITDA moved up driven by FX tailwinds, but trended down in local currency.
• EBITDA margin at the top of the range, but severely impacted by the increase in operating costs.

BRAZIL

* Recurring ; figures at 100%

• Cement sales markedly improved and prices clearly progressing too. At constant scope volumes would have remained stable.
• Unitary production costs worsened due to higher variable costs (mainly fuels) and fixed items.
• Positive price over cost trend.
• FX tailwinds.

EBITDA moved visibly up even at constant fx and scope.

2023 OUTLOOK

Construction investments are expected to weaken in 2023, both in US and Europe. Higher construction costs as well as financing costs are going to weight on building activity.

Energy prices are expected to progressively stabilize during 2023, at levels anyway higher than 2022.

Our operating results will continue to benefit from an upward trend in selling prices, thanks to both carry-over effect and further prices increases.

USA: cement demand underpinned by infrastructures spending with residential expected to decline D-D. Further round up of selling prices

Italy: weaker demand due to the decline in the residential sector and the lack of the implementation of PNRR. Better avg selling prices thanks to carry-over effect

Group recurring EBITDA expected to remain stable versus 2022.

CO2REDUCTION ON TRACK

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:
  • • Significant reduction of clinker factor thanks to the changes in product mix applied by every country
  • • Further increase in alternative fuels rate

Kg CO

2

/t cementitiuos

material

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".

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

VOLUMES

PRICE INDEX BY COUNTRY

FX CHANGES

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

NET SALES BY COUNTRY

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

EBITDA BY COUNTRY

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

*including 8.7 EURm of non recurring costs

CONSOLIDATED INCOME STATEMENT

	2 0 2 2	2 0 2 1	∆	∆
E U R m			b a s	%
l N S t e a e s	3, 9 9 5. 5	3, 4 4 5. 6	5 5 0. 0	1 6. 0 +
E B I T D A	8 8 3. 7	9 6 7 4.	8 9. 0	1 1. 2 +
f h h, i i o c n o n r e c r r n g w u	8. 7	1. 3
f l i % ( ) o s a e s r e c u r r n g	2 2. 3 %	1 2 3. %
i i d i i D t t t e p r e c a o n a n a m o r z a o n	( 3 8 8. 9 )	( 2 4 9. 0 )	1 ( 3 9. 9 )
i f i O P ( E B I T ) t t p e r a n g r o	4 9 4. 8	5 4 5. 6	( 5 0. 8 )	9. 3 -
f l % o s a e s	1 2. 4 %	1 8 5. %
i i E t q u y e a r n n g s	1 1 7. 6	1 2 4. 1	( 6. 4 )
f N i t t e n a n c e c o s s	( 2 3. 1 )	( 3 4. 4 )	1 1. 3
f i b f P t t r o e o r e a x	5 8 9. 3	6 3 5. 3	( 4 6. 0 )	7. 2 -
I t n c o m e a x e x p e n s e	( 1 3 0. 5 )	( 9 3. 0 )	( 3 7. 6 )
f i N t t e p r o	4 5 8. 8	5 4 2. 3	( 8 3. 5 )	1 5. 4 -
i i i M t n o r e s	-	( 0. 4 )	0. 4
f C l i d d i t t t o n s o a e n e p r o	8. 8 4 5	1. 9 5 4	8 3. 1 ( )	1 3 5. -

CONSOLIDATED CASH FLOW STATEMENT

E U R m	2 0 2 2	2 0 2 1
h d f i C t t a s g e n e r a e r o m o p e r a o n s	5 7 5. 4	7 5 2. 4
f l % o s a e s	1 4. 4 %	2 1. 8 %
i d I t t n e r e s p a	2 6. 8 ( )	2 6. 3 ( )
d i I t n c o m e a p a x	1 3. 9 ( 5 )	1 3 ( 4. 4 )
h f i i i i N t t t t e c a s r o m o p e r a n g a c v e s	3 9 4. 7	1. 5 9 7
f l % o s a e s	9. 9 %	1 7. 2 %
C i l d i t t a p a e x p e n u r e s	2 6 6. ( 7 )	2 1 ( 4. 4 )
i i E t t t q u y n v e s m e n s	( 4. 1 )	( 3. 2 )
h f h P t r c a s e o r e a s r s a r e s u u y	( 1 2 3. 2 )	( 0. 0 )
i i d d i d D v e n s p a	3. ( 7 5 )	1 9 1. 9 ( )
d i d i i d d E t x r a o r n a r y v e n	-	1 4 3. 3
d d d f D i i i i t e n s r e c e e r o m a s s o c a e s v v	7 5. 8	5 9. 8
i l f f i d d i D t t t s p o s a o x e a s s e s a n n v e s m e n s	1 2. 2	3 9. 6
f f l i d i d d i i T t t r a n s a o n e r e n c e s a n e r v a v e s	1 6 5.	3. 8 4
d i b l A t t c c r u e n e r e s p a y a e	( 0. 1 )	1. 0
d I i t t n e r e s r e c e e v	2 4. 0	1 0. 8
f C h i l i d i d h t t a n g e n s c o p e o c o n s o a o n a n o e r	1. 9 ( )	3. 1 ( )
h i d b C t t a n g e n n e e	5 2. 7	4 7 7. 2
f i i l i i d f i d N ( ) t t e n a n c a p o s o n e n o p e r o	2 8 8. 2	2 3 5. 5

NET FINANCIAL POSITION

	D 2 2 e c	D 2 1 e c	∆	D 2 0 e c
E U R m
h d h f i i l C t t a s a n o e r n a n c a a s s e s	1, 3 4 9. 7	1, 2 0 7. 5	1 4 2. 2	1, 2 2 0. 9
h d b S t- t t o r e r m e	( 6 2 1. 9 )	( 1 5 5. 1 )	( 4 6 6. 8 )	( 2 1 4. 2 )
S h l i t- t o r e r m e a s n g	2 0. 3 ( )	2 2. ( 5 )	2. 2	2 1. ( 4 )
h h N t t- t e s o r e r m c a s	7 0 7. 5	1, 0 2 9. 9	( 3 2 2. 4 )	9 8 5. 3
f l L i i -t t o n g e r m n a n c a a s s e s	2 4 9. 8	2 5 2. 3	( 2. 5 )	1 1. 0
d b L -t t o n g e r m e	1 1. ( 6 0 )	( 9 9 0. 9 )	3 7 9. 8	1, 1 ( 7 3. 4 )
l i L -t o n g e r m e a s n g	( 5 8. 1 )	( 5 5. 8 )	( 2. 3 )	( 6 4. 6 )
f i i l i i N t t e n a n c a p o s o n	2 8 8. 2	2 3 5. 5	5 2. 7	( 2 4 1. 6 )

Gross debt breakdown ( 1,311.3 €m )

NET FINANCE COSTS

	2 0 2 2	2 0 2 1	∆	∆
E U R m			b a s	%
I t t n e r e s e x p e n s e	( 2 6. 8 )	( 2 4. 8 )	( 2. 0 )
i I t t n e r e s n c o m e	2 0. 3	8. 3	1 2. 0
i N t t t e n e r e s e x p e n s e	6. ( 5 )	1 6. ( 5 )	1 0. 0	6 0. 7 +
i l F ( ) o r e x g a n s o s s e s	2 1 ( 4. )	1 9. 0 ( )	2 ( 5. )
i i l i D t t e r v a v e s v a u a o n	3. 4	1 1. 0	( 7. 6 )
f i f d I t t t n e r e s c o s s o p e n s o n u n s	( 6. 1 )	( 5. 9 )	( 0. 2 )
h O t e r	1 0. 1	0 ( 4. )	1 2 4.
f i N t t e n a n c e c o s s	2 3. 1 ( )	3 ( 4. 4 )	1 1. 3	3 2. 8 +
f d b C t t o s o g r o s s e ~	2. 1 7 %	1. 9 6 %

DEBT MATURITY PROFILE

Total nominal value of debt and borrowings stands at EURm 1,203 at December 2022

As at December 2022 available EURm 194 of undrawn committed facilities (EURm 187 for Buzzi Unicem, EURm 7 for Dyckerhoff)

*Bank loan/Schuldschein

2022 FULL YEAR RESULTS

29 March 2023

Pietro Buzzi – CEO