Q3 2021 Trading Update

4 November 2021

Dr. Dominik von Achten - Group CEO René Aldach - Group CFO

House of Astronomy, Germany

Key Messages

  • 9M result significantly above prior year - Q3 result impacted by extraordinary high comparison base and unprecedented energy cost inflation
  • New business excellence program launched - mitigating cost inflation by at least 500 m€ in 2022
  • Net debt level further reduced - solid free cash flow and closing of US West divestiture in October
  • Portfolio optimization continues - divestment of assets in Spain and acquisition of Tanga Cement in Tanzania
  • Strong progress in our two transformational topics:
    • Up to 10 million t of CO2 reduction with current CCU/S projects until 2030
    • Focus on additional digital revenue potential
  • Full year 2021 outlook partially raised
    • Forecast for operating EBITDA and EBIT confirmed
    • Forecast for ROIC raised to above 9%
    • Forecast for leverage ratio reduced to below 1.5x

Moesgaard Museum, Denmark

O P E R A T I O N A L P E R F O R M A N C E

Solid Q3 performance despite headwinds from cost inflation

Revenue (m€)

Operating EBITDA (m€)

Operating EBITDA Margin

Operating EBIT (RCO) (m€)

-0.1%

LfL: +2.7%

+3.5%

LfL: +3.7%

5,061

4,886

5,058

Q3 2019

Q3 2020

Q3 2021

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Q3 2021 Trading Update | 4 November 2021

+0.2%

LfL: +3.8%

-11.4%

LfL: -10.7%

1,174

1,328

1,176

Q3 2019

Q3 2020

Q3 2021

+5 bps

-393 bps

27.2%

23.2%

23.2%

Q3 2019

Q3 2020

Q3 2021

YoY

'21 vs. '19

+4.8%

LfL: +8.8%

-13.6%

LfL: -12.6%

1,005

869

829

Q3 2019

Q3 2020

Q3 2021

YoY

'21 vs. '20

O P E R A T I O N A L P E R F O R M A N C E

9M operating EBITDA and EBIT significantly above prior year

Revenue (m€)

Operating EBITDA (m€)

Operating EBITDA Margin

Operating EBIT (RCO) (m€)

-1.9%

LfL: +0.8%

+6.5%

LfL: +8.5%

14,273

13,140

13,996

9M 2019 9M 2020

9M 2021

4

Q3 2021 Trading Update | 4 November 2021

+10.9%

LfL: +14.5%

+6.0%

LfL: +8.2%

2,612

2,731

2,896

9M 2019

9M 2020

9M 2021

+239 bps

-9 bps

18.3%

20.8%

20.7%

9M 2019

9M 2020

9M 2021

YoY

'21 vs. '19

+23.4%

LfL: +27.7%

+13.9%

LfL: +16.1%

1,715

1,953

1,583

9M 2019

9M 2020

9M 2021

YoY

'21 vs. '20

O P E R A T I O N A L P E R F O R M A N C E

Demand continues to be solid across all regions

Volumes

'21 vs. '20

Q3 19

Q3 20

Q3 21

LfL

Cement sales volume (mt)

33.5

33.9

33.9

0.8%

Aggregates sales volume (mt)

87.7

86.3

86.3

0.3%

Ready mix sales volume (mt)

13.6

12.2

12.2

-3.7%

Revenue (mEUR)

'21 vs. '20

Q3 19

Q3 20

Q3 21

LfL

North America

1,487

1,377

1,391

1.9%

Western & Southern Europe

1,312

1,375

1,418

2.3%

North & Eastern Europe - C.A.

796

792

859

8.4%

Asia Pacific

867

793

792

-0.3%

Africa - Eastern Med. Basin

424

455

486

6.0%

Operating EBITDA (mEUR)

'21 vs. '20

Q3 19

Q3 20

Q3 21

LfL

North America

408

415

366

-9.7%

Western & Southern Europe

251

332

269

-19.3%

North & Eastern Europe - C.A.

230

246

248

1.4%

Asia Pacific

191

211

169

-20.0%

Africa - Eastern Med. Basin

106

130

117

-9.8%

Significant increase in energy costs and high comparison base put short term pressure on margins in all regions

North America

  • Positive demand and pricing in Q3; also expect good underlying business demand going into Q4.
  • Freight driven high import costs put short term pressure on margin.

Europe

  • Continued increase in demand across WSE. Revenue growth despite high comparison base. EBITDA impacted by operational issues in France.
  • Solid volumes and pricing in Eastern Europe across all business lines led to strong revenue growth and EBITDA improvement.

Asia-Pacific

  • Covid driven lockdowns put pressure on volumes and EBITDA in Q3.
  • Strong demand development expected in Q4 and into next year.

Africa - Eastern Mediterranean

  • Continuing volume growth and positive pricing led to revenue growth. Result recovery started in Egypt.
  • Result negatively impacted by high freight rates and increased demurrage costs due to port congestion.

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Q3 2021 Trading Update | 4 November 2021

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HeidelbergCement AG published this content on 04 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2021 06:21:03 UTC.