Buzzi Unicem — Investor Presentation 2024

Sep 12, 2024

Infrastructure & Energy Day - Borsa Italiana

Milan, 12 September 2024

EXECUTIVE SUMMARY

COMPANY OVERVIEW INVESTMENT HIGHLIGHTS H1 2024 OVERVIEW OUTLOOK OUR JOURNEY TO NET ZERO

COMPANY OVERVIEW

BUZZI AT A GLANCE: WELL POSITIONED TO CATCH FUTURE OPPORTUNITIES

MORE THAN 110 YEARS OF HISTORY

1907-1970 Foundation by Pietro and Antonio Buzzi, with Trino cement plant

Expansion in Northern Italy

Existing markets

Start of the ready-mix concrete production

1999 Acquisition and incorporation of Unicem;

Listing on the Italian stock exchange with the name of Buzzi Unicem

Italy
United States

2009-2011 New lines in United States Russia

Russia 2014 Acquisition of Korkino

Brazil 2018-2021 50% acquisition of Cimento Nacional in 2018 Acquisition of CRH Brazilian assets

1979 Acquisition of Alamo Cement United States 1981 Acquisition of a minority stake in Corporacion Moctezuma Mexico 2001 Acquisition of a minority stake in Dyckerhoff (34%) 2004 Controlling stake and full consolidation of Dyckerhoff 2013 Dyckerhoff minority squeeze out Italy 2017 Zillo acquisition 2023 Change of company name to Buzzi Spa Agreement to sell assets in Ukraine and East Slovakia United States Central and Eastern Europe New markets

BUZZI TODAY

OPERATIONAL SUMMARY AND KEY NUMBERS

OUR PRESENCE

GERMANY, LUXEMBOURG AND NETHERLANDS

INVESTMENTS HIGHLIGHTS

INDUSTRY LEADING PERFORMANCE THROUGH THE CYCLE

0

1000

2000

3000

4000

Net Sales

CAGR (2014-2023): +6.2% Solid growth fuelled by sound demand and significant price re-rating in recent years

EBITDA

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

CAGR (2014-2023):+ 12.7% Over proportional growth to Net Sales, with EBITDA which has more than doubled

EBITDA MARGIN

+12 percentage points Leading performance, driven by cost efficiency and synergies

Margin protection

Pass through of higher costs on selling prices

HISTORICAL EBITDA BY COUNTRY

		2014	2015	2016	2017	2018	2019	2020	2021	2022	2023
Italy	EBITDA	(18.7)	(37.2)	(22.2)	(79.7)	(1.7)	43.4	33.8	40.8	82.0	175.2
	margin	-4.8%	-9.8%	-5.9%	-18.6%	-0.4%	8.6%	6.8%	6.8%	11.3%	21.4%
Germany	EBITDA	88.6	72.1	76.8	78.1	82.5	102.3	123.8	127.5	120.5	189.1
	margin	14.7%	12.6%	13.4%	13.3%	13.0%	15.1%	17.3%	18.0%	15.1%	21.7%
Benelux	EBITDA	15.9	19.7	25.8	17.6	23.1	22.7	21.7	16.5	7.0	28.1
	margin	9.7%	11.7%	14.7%	9.4%	11.7%	11.8%	11.3%	8.2%	3.1%	13.1%
	EBITDA	27.0	32.6	34.4	36.5	43.6	46.3	46.8	51.3	56.8	72.0
Czech Rep/ Slovakia	margin	20.2%	24.0%	25.2%	24.7%	26.5%	27.5%	29.4%	28.9%	28.2%	35.2%
Poland	EBITDA	18.2	22.7	23.4	24.1	31.9	32.1	35.3	31.3	27.2	38.2
	margin	20.4%	20.4%	24.6%	24.9%	28.6%	25.9%	29.9%	24.8%	19.2%	24.3%
Ukraine	EBITDA	11.0	4.0	12.8	16.0	7.0	21.0	21.9	13.3	(6.8)	5.6
	margin	12.5%	5.7%	16.1%	16.9%	8.0%	15.9%	18.9%	10.5%	-11.4%	6.5%
	EBITDA	73.4	48.4	43.2	46.0	50.1	57.7	52.9	58.6	99.6	96.2
Russia	margin	35.0%	29.0%	28.0%	24.9%	27.0%	26.9%	28.3%	28.3%	34.3%	33.8%
USA	EBITDA	207.3	311.7	356.5	369.6	341.2	402.7	444.2	455.1	497.5	639.2
	margin	24.2%	28.1%	31.9%	33.0%	31.9%	32.4%	35.2%	34.2%	31.3%	36.7%
Consolidated (IFRS application)	EBITDA	422.7	473.2	550.6	508.2	577.2	728.1	780.8	794.6	883.7	1,243.2
	margin	16.9%	17.8%	20.6%	18.1%	20.1%	22.6%	24.2%	23.1%	22.1%	28.8%
Mexico (50%)	EBITDA	93.9	128.1	146.7	164.6	144.5	126.1	132.5	141.3	152.9	232.8
	margin	36.0%	40.9%	48.2%	48.0%	46.3%	42.5%	46.2%	42.7%	39.8%	45.4%
Brazil (50%)	EBITDA					15.9	11.7	24.0	40.5	59.4	44.3
	margin					23.9%	17.4%	34.5%	31.9%	29.7%	22.5%
Consolidated (proportional method)	EBITDA	516.6	601.3	697.3	672.8	737.6	865.9	937.3	976.4	1,096.0	1,520.3
	margin	18.7%	20.2%	23.5%	21.4%	22.7%	24.2%	26.2%	25.0%	23.3%	30.2%

SOUND CASH GENERATION AND VALUE CREATIVE CAPITAL ALLOCATION

STRONG BALANCE SHEET, PRESERVING INVESTMENT CAPACITY FOR GROWTH

Consistent deleveraging

Achieved in 10 years, while continuing to create value

Net Cash position

Since the end of 2021, further strengthened in 2023. Strongest balance sheet in the industry

Investment grade metrics

Remain among our commitments, preserving the capacity to create value for the company and shareholders, while financing the Net Zero transition

SUSTAINABLE GROWTH IN SHAREHOLDERS REMUNERATION

+21%

Equity FCF CAGR Thanks to strengthened operating results, selective CAPEX and reduced interests through deleveraging

~750 €million

Returned to shareholders since 2014 ~500 € million as dividend ~250 € million ad buyback

DPS growth

Commitment to a sustainable growth in dividend policy

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 new technologies
• ESG targets and metrics will be integrated in our financial documentations.

H1 2024 OVERVIEW

H1 2024 IN BRIEF

Weak demand in Central Europe and unfavorable weather conditions impacting Q2 volumes both in cement (-5.8%) and ready-mix (-6.8%)

Favorable price contribution to Net Sales partially offset by fx headwind (-27€m).

Stable H1 EBITDA margin, confirming last year excellent result

Positive price over cost dynamic in Italy and US counterbalancing lower margins in Central and Eastern Europe.

Net Cash Position improved by 100€m compared to the FY 23.

Guidance confirmed: 2024 Recurring EBITDA akin to last year record level

NET SALES VARIANCE BY REGION

(€m)

EBITDA VARIANCE

(€m)

Unfavorable Favorable

CASH GENERATION & CAPITAL ALLOCATION

OUTLOOK

OUTLOOK

Latest forecasts point to a better development in construction activity during H2, with still subdued investments in Central Europe, burdened by residential weakness, and a more resilient demand in the other Regions; civil engineering works continue to appear the main industry driver, particularly in Italy and United States

Energy costs are expected to stabilize in the following quarters

Price over cost evolution remains a key priority for the group

Group recurring EBITDA expected to consolidate the 2023 record level

Concerning the acquisition of the remaining 50% of the Brazilian joint venture, Buzzi received the approval by the antitrust authority (CADE) and we expect to close the transaction in October 2024

OUR JOURNEY TO NET ZERO

OUR JOURNEY TO NET ZERO

TRACK RECORD IN CO2 EMISSIONS REDUCTION AND AMBITIOUS TARGETS

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

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

2023 CO2 REDUCTION ON TRACK

Specific net CO2 emissions*

Kg CO²

/t cementitious product (net) CO2 emissions reduction in line with our roadmap.

Among main contributors:

• Reduced clinker ratio in Luxembourg (-410bps), Italy and US.
• Significant increase in thermal substitution in Italy (+640bps), Luxembourg (+850bps) and Czech Republic (+710bps).

ENVIRONMENTAL TRANSPARENCY

As part of the company's decarbonization strategy, after the validation of our CO2 emissions reduction target by the Science Based Target initiative (SBTi), in 2023 Buzzi participated in the Carbon Disclosure Project (CDP) questionnaire, receiving the B score.

In this way, the company has furthered its commitment to environmental transparency by disclosing its ecological footprint.

APPENDIX

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PRICE INDEX BY COUNTRY

NET SALES BY COUNTRY

	H1 2024	H1 2023	∆	∆	Forex	Scope	∆ l-f-l
EURm			abs	%	abs	abs	%
Italy	414.4	424.1	(9.7)	-2.3	-	-	-2.3
United States	836.5	846.8	(10.3)	-1.2	(0.5)	-	-1.2
Germany	388.0	441.3	(53.4)	-12.1	-	-	-12.1
Lux / Netherlands	89.1	115.8	(26.7)	-23.1	-	(2.2)	-21.5
Czech Rep / Slovakia	96.2	102.8	(6.6)	-6.5	(5.2)	-	-1.4
Poland	73.1	76.6	(3.5)	-4.6	4.9	-	-10.9
Ukraine	44.7	35.1	9.7	+27.6	(3.0)	-	+36.2
Russia	132.5	142.8	(10.3)	-7.2	(23.1)	-	+9.0
Eliminations	(20.9)	(35.6)	14.7
Total	2,053.6	2,149.6	(96.1)	-4.5	(27.0)	(2.2)	-3.1
Mexico (100%)	552.4	500.2	52.2	+10.4	32.0	-	+4.0
Brazil (100%)	186.9	189.7	(2.8)	-1.5	(0.3)	-	-1.3

EBITDA BY COUNTRY

	H1 2024	H1 2023	∆	∆	Forex	Scope	∆ l-f-l
EURm			abs	%	abs	abs	%
Italy	107.9	98.5	9.3	+9.5	-	-	+9.5
United States	280.2	256.9	23.3	+9.1	(0.2)	-	+9.1
Germany	73.9	100.1	(26.2)	-26.1	-	-	-26.1
Lux / Netherlands	4.7	12.6	(7.9)	-62.6	-	(0.3)	-61.5
Czech Rep / Slovakia	28.3	33.6	(5.4)	-16.0	(1.6)	-	-11.2
Poland	12.7	22.7	(10.1)	-44.3	0.8	-	-48.0
Ukraine	2.4	2.3	0.1	+3.7	(0.2)	-	+10.7
Russia	42.8	48.4	(5.7)	-11.7	(7.5)	-	+3.7
Adjustments	(0.0)	0.0
Total	552.7	575.3	(22.5)	-3.9	(8.5)	(0.3)	-2.4
Mexico (100%)	254.5	227.3	27.3	+12.0	14.7	-	+5.5
Brazil (100%)	44.5	38.3	6.3	+16.4	(0.1)	-	+16.6

LONG TERM EBITDA EVOLUTION BY REGION

HISTORICAL CEMENT CONSUMPTION BY COUNTRY

2023 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.