Buzzi Unicem — Investor Presentation 2024

Apr 18, 2024

Investor Roadshow

London, 18 April 2024

EXECUTIVE SUMMARY

COMPANY OVERVIEW INVESTMENT HIGHLIGHTS FY 2023 OVERVIEW OUTLOOK 2024 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

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

BUZZI TODAY

OPERATIONAL SUMMARY AND KEY NUMBERS

GROUP STRUCTURE AND OPERATION

*Figures at 100% **@ 02/04/2024

POLAND

Investor Roadshow | 18 April 2024 7

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 Germany	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%
	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%
	EBITDA	15.9	19.7	25.8	17.6	23.1	22.7	21.7	16.5	7.0	28.1
Benelux	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%
	EBITDA	18.2	22.7	23.4	24.1	31.9	32.1	35.3	31.3	27.2	38.2
Poland Ukraine	margin	20.4%	20.4%	24.6%	24.9%	28.6%	25.9%	29.9%	24.8%	19.2%	24.3%
	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%
	EBITDA	207.3	311.7	356.5	369.6	341.2	402.7	444.2	455.1	497.5	639.2
USA	margin	24.2%	28.1%	31.9%	33.0%	31.9%	32.4%	35.2%	34.2%	31.3%	36.7%
Consolidated (IFRS application) Mexico (50%)	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%
	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	EBITDA	516.6	601.3	697.3	672.8	737.6	865.9	937.3	976.4	1,096.0	1,520.3
(proportional method)	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 dividens ~250 € million ad buybacks

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.

FY 2023 OVERVIEW

2023 IN BRIEF

Consolidated Net Sales reached 4,317 €m (+11.1% lfl), driven by solid price momentum in all Regions.

Recurring EBITDA at 1,237 €m (+43.7% lfl), the highest result ever in the group history; main additional contribution from Italy, Germany and USA.

Significant improvement in EBITDA margin at 28.7% (+640bps)

Sound cash generation, although negative impact from working capital and higher capex. Positive development of ROCE over WACC spread, strengthened in 2023 despite higher cost of capital.

Dividend increased by 33% at 0.60 € ps. Share price +133% past two years.

2030 CO² reduction program on track and targets confirmed.

Commitment to the price over cost evolution in all Regions to protect margins 2024 group recurring EBITDA expected to consolidate the 2023 level

2023 KEY FIGURES

NET SALES VARIANCE ANALYSIS

EBITDA BRIDGE

OUTLOOK 2024

OUTLOOK 2024

Macroeconomic condition are still going to weight on construction investments in 2024, with subdued residential activity in all Regions; infrastructure projects are expected to support investments in Italy and USA

USA: cement demand bolstered by infrastructures spending and re-shoring activity Italy: resilient demand driven by the implementation of PNRR

Energy cost are expected to remain at high levels, despite some easiness in the fuel component

Full commitment to the price over cost evolution in all the markets

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

EXPECTED CAPEX BY 2030

750 €m

Expected capex requirements for 2030 target

20-30%

CO² specific capex on total annual spending

~ 8%

Capex to net sales ratio over the period

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).

APPENDIX

VOLUMES

PRICE INDEX BY COUNTRY

ENERGY COST

Energy cost (€m)

Energy cost / Revenues*

Power cost (€/ton)

Fuel cost (€/ton)

Fuel cost / Revenues* (%)

Power cost / Revenues* (%)

Total energy (ex. Russia) Power & Fuel (ex. Russia)

*only cement

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.