HEIDELBERG MATERIALS AG Commerzbank German Investment Seminar 2020
New York - January 14th, 2020
Dr. Bernd Scheifele, CEO
Slide 1 - Commerzbank German Investment Seminar 2020
New York - January 14th, 2020
One of the largest building materials producers in the world
58,000employees
3,100production sites in 60countries
No 1in aggregates
~20 bntreserves & resources
No 1in ready mix
~1,800 plants
No 2in cement
~200 mt capacity
Slide 2 - Commerzbank German Investment Seminar 2020
New York - January 14th, 2020
Well-balanced regional set-up and portfolio
Revenue by region | EBITDA by region | ||
N/E Europe | N/E Europe | ||
16% | 18% | North America | |
W/S Europe | 26%North America | W/S Europe | |
29% | |||
29% | 22% | ||
9% | 19% | 11% | 20% |
Africa | Asia | Africa | Asia |
Revenue by business line | EBITDA by business line | |||
Aggregates | Group Service | |||
Cement | 19% | 1% | ||
42% | 26%RMC+ASPH | Cement | 65% | 31%Aggregates |
13% | 4% |
Group Service | RMC+ASPH |
All values based on LTM September 2019
Slide 3 - Commerzbank German Investment Seminar 2020
New York - January 14th, 2020
Continuous improvement in financial metrics
Revenue | bn € | |
+5% | ||
+1% | 18.1 | |
17.1 | 17.3 | |
2016 | 2017 | 2018 |
EPS | € | |
+36% | +25% | |
5.8 | ||
4.6 | ||
3.4 | ||
2016 | 2017 | 2018 |
Net Debt | bn € | |
-0.3 | ||
9.0 | -0.3 | |
8.7 | ||
8.4 | ||
2016 | 2017 | 2018 |
Dividend per share | € |
+19% | +11% | |
1.6 | 1.9 | 2.1 |
2016 | 2017 | 2018 |
Return on invested capital
WACC | ROIC | |
7.0% | 7.2% | |
6.9% | ||
6.9% | ||
6.6% | 6.3% | |
2016 | 2017 | 2018 |
Slide 4 - Commerzbank German Investment Seminar 2020
New York - January 14th, 2020
Path to a successful global DAX company in 10 years
Revenue | m€ | EBITDA | m€ | ||||||||
+71% | 18,972 | +64% | 3,447 | ||||||||
11,117 | 2,102 | ||||||||||
2009 | 2019 | 2009 | 2019 |
(LTM Sep 2019) | (LTM Sep 2019) |
Total Assets | m€ |
Market Cap. | b€ |
+51%
25,508
38,534
+120% | 13.0 | |||
5.9 | ||||
2009 | 2019 |
2009 | 2019 |
(Sep 2019) | (as of Sep 2009) | (as of Dec. 2019) |
Slide 5 - Commerzbank German Investment Seminar 2020
New York - January 14th, 2020
Four strategic pillars
1.
Vertical
integration
All core business lines in key urban markets
Synergies
between
business lines
2.
Operational excellence
Focus on KPIs,
savings,
technology, innovation
Continuous
margin
improvement
3.
Sustainable
growth
Follow UN's
Sustainable
Development
Goals
Focus on
environment and society
4.
Digital
transformation
Digital plants,
customer
experience,
big data analytics
Further
efficiency gains
and customer
experience
Slide 6 - Commerzbank German Investment Seminar 2020
New York - January 14th, 2020
The benefits of vertical integration
Offer innovative or
tailor-made concrete to boost sales of cement & aggregates
Benefit from a more
stable cash flow
Protect local cement
through aggregates &
market position, volume
asphalt exposure
and margin
Decrease slow-moving inventory in aggregates by adjusting concrete recipes
Slide 7 - Commerzbank German Investment Seminar 2020
New York - January 14th, 2020
Consistently improving operational efficiency
Revenue per employee (in € ´000)*
Italcementi | |||
acquisition | |||
Financial | 327 | ||
306 | |||
crisis | 296 | ||
292 | |||
270 | 269 | 281 | |
233 | 246 | 251 | |||
220 | |||||
209 | |||||
195 | |||||
189 | |||||
159 |
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sept 2019
LTM
* IFRS view including ITC from 1 July 2016
Slide 8 - Commerzbank German Investment Seminar 2020
New York - January 14th, 2020
Focus on cost, margin improvement and cash generation
Cost | Margin | Cash generation | Cash |
management | improvement | management | |
SG&A program with | Aggressive | Disposal program | Efficient working |
a 130m€ saving | capital management | ||
commercial | with a 1.5 b€ target | ||
target | and disciplined | ||
excellence initiatives | (2018-2020) | ||
(2019-2020) | CapEx | ||
Savings of 100 m€ secured | A full action plan is | 961 m€ secured as of | Limited growth CapEx |
already as of September 2019. | already in place. | September 2019. | |
Slide 9 - Commerzbank German Investment Seminar 2020
New York - January 14th, 2020
Portfolio optimization continues
Disposal proceeds FY 2018 - September 2019
m€
1,500
393 961
568
FY 2018 | YTD September | Total | Target |
2019 | 2018-2020 |
Slide 10 - Commerzbank German Investment Seminar 2020
Proceeds from 2019 disposals as of September
m€ | 36 | 13 |
10 | ||
23 | 86 | |
393 | ||
136 | 89 |
Shares in Ciments du Maroc, Morocco
Cement plant El Minya, Egypt
Ships UK
Ukraine business
Construction materials Dresden
Asset divestments Italy
Other
New York - January 14th, 2020
Solid FCF generation and focus on debt payback
m EUR | 2016 | 2017 | 2018 | 2019(LTM Sept) | ||||||
1,273 | 1,403 | 1,296 | 1,442 | |||||||
FCF generation | ||||||||||
Cash allocation | ||||||||||
m EUR | ||||||||||
337 | 529 | 591 | ||||||||
Shareholder return | ||||||||||
565 | ||||||||||
Net growth Capex* | 339 | 291 | ||||||||
501 | 920 | |||||||||
Debt payback | 597 | 583 | ||||||||
230 | ||||||||||
-69 | ||||||||||
2016 | 2017 | 2018 | 2019 (LTM Sept) |
- Net growth CAPEX = Gross growth Capex minus disposals
Slide 11 - Commerzbank German Investment Seminar 2020
Strategy 2019/2020:
Progressive
dividend increase
Limited growth Capex, portfolio optimization
Clear focus on debt payback
New York - January 14th, 2020
Our vision 2050: Carbon-neutral concrete
Target of 30% reduction of the | Our goal is to realize the vision of | ||||
specific CO2emissions by 2030 | carbon-neutral concrete latest by2050: | ||||
• | Develop technologies for CCS / CCU | ||||
confirmed by SBTi | |||||
• | Return of CO2into the material cycle | ||||
through re-carbonation | |||||
2019 | 2030 | 2050 | ||
Slide 12 - Commerzbank German Investment Seminar 2020
New York - January 14th, 2020
An era of high carbon costs
Price of emission allowances | Likely consequences of high CO2prices |
- / 1000 kg CO2
30 | • We are long in carbon rights, high prices do not |
impact us until 2022. Many local players have | |
25 | already run out of carbon rights. |
20 | • Inefficient, polluting cement plants will be shut |
down as production will be too costly. | |
15 | |
•Market consolidation is expected as small | |
10 | players will be forced to sell their plants. |
5 | • Capacity utilization and cement pricing is |
expected to go up. | |
0 | |
2005 | 2019 |
Slide 13 - Commerzbank German Investment Seminar 2020
New York - January 14th, 2020
Improving processes & customer experience through digitalization
Transformation of the existing business (DTO)
Remotely controlled | Big data | Digital | Workflow automation |
& maintained | analytics for concrete | exchange with | |
production | mix design & | suppliers and | |
units. | workflow analysis | customers |
Potential for enhanced efficiency and service
Slide 14 - Commerzbank German Investment Seminar 2020
New York - January 14th, 2020
Disclaimer
Unless otherwise indicated, the financial information provided herein has been prepared under International Financial Reporting Standards (IFRS).
This presentation contains forward-looking statements and information. Forward-looking statements and information are statements that are not historical facts, related to future, not past, events. They include statements about our believes and expectations and the assumptions underlying them. These statements and information are based on plans, estimates, projections as they are currently available to the management of HeidelbergCement. Forward-looking statements and information therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
By their very nature, forward-looking statements and information are subject to certain risks and uncertainties. A variety of factors, many of which are beyond HeidelbergCement's control, could cause actual results to defer materially from those that may be expressed or implied by such forward-looking statement or information. For HeidelbergCement particular uncertainties arise, among others, from changes in general economic and business conditions in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets; the possibility that prices will decline as result of continued adverse market conditions to a greater extent than currently anticipated by HeidelbergCement's management; developments in the financial markets, including fluctuations in interest and exchange rates, commodity and equity prices, debt prices (credit spreads) and financial assets generally; continued volatility and a further deterioration of capital markets; a worsening in the conditions of the credit business and, in particular, additional uncertainties arising out of the subprime, financial market and liquidity crises; the outcome of pending investigations and legal proceedings and actions resulting from the findings of these investigations; as well as various other factors. More detailed information about certain of the risk factors affecting HeidelbergCement is contained throughout this presentation and in HeidelbergCement's financial reports, which are available on the HeidelbergCement website, www.heidelbergcement.com. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement or information as expected, anticipated, intended, planned, believed, sought, estimated or projected.
Slide 15 - Commerzbank German Investment Seminar 2020
New York - January 14th, 2020
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HeidelbergCement AG published this content on 14 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 January 2020 10:07:00 UTC
