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HeidelbergCement Group Presentation 2021

Find a choice of background Material to build our future.

HeidelbergCement Headquarters, , Built with TioCem®, which actively reduces the level of pollutants in the air We cross borders. Change the slide layout

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Brenner Base Tunnel, Austria and Building materials for what will be the world's longest underground rail tunnel. Completion 2028 We bring people together.

Terminal 3, Frankfurt Airport, Germany for Germany's largest construction site. Completion 2025 We connect. Change the slide layout

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San Giorgio Bridge, Genoa, Italy 3 67,000 m of concrete for the concrete piers. Cement with approx. 40% recycling rate and lower CO2 emissions We drive innovation.

3D printed house, Beckum Less material, lower carbon footprint - thanks to HeidelbergCement Change the slide layout We combine tradition with modernity.

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Art Museum Bourse de Commerce – Pinault Collection, Paris, HeidelbergCements’ building materials combine the demands of a modern museum with classical architecture About HeidelbergCement

Facts and Figures

Strategy Beyond 2020

Sustainability

Appendix: The Group areas Show guides via menu bar: View / Show / tick Guides

ABOUT HEIDELBERGCEMENT HeidelbergCement: History and development

Change the slide layout 1873 1889 1977 1989 1993 1995/96 1999 2001 2005/06 2007 2015 2016 1995/92021 6

Founded in 1873... …today leading market positions in aggregates, cement, and ready-mixed concrete

Sale of 2019 building Listing on Central materials the Frank- and Indo- , in North furt Stock Lehigh, Eastern , cement, , America Ital- Foundation Exchange USA Europe CBR Scancem Hanson and UK cementi

9 HeidelbergCement Group Presentation | Group Communication & IR | 23 March 2021 Show guides via menu bar: View / Show / tick Guides

ABOUT HEIDELBERGCEMENT We are the largest vertically integrated building materials producer in the world

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10 HeidelbergCement Group Presentation | Group Communication & IR | 23 March 2021 53,000 employees

Change the slide layout Leading market positions in aggregates, cement, and ready-mixed concrete 3,000 production sites in more than 50 countries Cement capacity 184 mt (incl. joint ventures)

Aggregates resources and Find a choice of background reserves 19.2 bnt Show guides via menu bar: View / Show / tick Guides

ABOUT HEIDELBERGCEMENT The Managing Board of HeidelbergCement

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Dr. Dominik von Achten Dr. Lorenz Näger Kevin Gluskie Hakan Gurdal

Chairman Deputy Chairman, Chief Financial Asia-Pacific Africa-Eastern Mediterranean Officer Basin, HC Trading

Ernest Jelito Jon Morrish Chris Ward

Northern and Eastern Europe- Western and Southern Europe North America Central Asia

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ABOUT HEIDELBERGCEMENT Our Purpose

Change the slide layout Material to build our Future

The world is undergoing profound changes. Our building materials and solutions shape significant development worldwide. We build on one and a half centuries of experience. Now is the time to lay the foundation for our future.

At the center of our actions lies our responsibility for the environment. We want to be the leader in the industry on the path to carbon-neutrality.

We deliver long-term financial performance through operational excellence, dedication, and openness for change.

We are progressive minds with the ambition to drive transformation. We push the boundaries to strengthen innovation and deepen partnerships with our customers and other stakeholders. Together we craft material solutions for the future. So that the world can always build on us

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ABOUT HEIDELBERGCEMENT Our Culture Principles

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Be stronger together Get the customer Unleash Think and act and push forward ! excited ! innovation ! long term ! Our future needs teamwork. Our future needs strong players. Our future needs creativity. Our future needs solutions that We perform at our best when Let's become even better Let's use our freedom to go in last. That's what we offer. we build on our global strength. partners for our customers. new directions. Inventiveness Reliable and sustainable Let's combine our forces across Their success is our success. We knows no hierarchy. A great idea materials. Let’s be the leader all regions. With our hands-on solve their problems. Even can come from anywhere and that turns our industry CO2- attitude, we can overcome any before they arise. anyone. Own it and push it. neutral. Once and for all. challenge.

14 HeidelbergCement Group Presentation | Group Communication & IR | 23 March 2021 About HeidelbergCement

Facts and Figures

Strategy Beyond 2020

Sustainability

Appendix: The Group areas Show guides via menu bar: View / Show / tick Guides

FACTS A N D FIGURES Profitable growth and balanced regional positioning

Change the slide layout Financial Highlights 2020 Distribution of revenue 2020 by regions

Total Group revenue €m 17,606 10% Result from current operations before €m 3,707 29% depreciation and amortisation 17% Adjusted earnings per share * €6.88

Dividend per share €2.20 17% 27% ROIC / WACC 7.9%

Dynamic gearing ratio / Rating 1.86x / BBB- ◼ Western and Southern Europe ◼ North America ◼ Northern and Eastern Europe- ◼ Asia-Pacific * Adjusted for one-time effects Central Asia ◼ Africa-Eastern Mediterranean Basin

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FACTS A N D FIGURES Cement capacity of 184 mt (incl. joint ventures)

Change the slide layout Western and Southern mt Europe Cement capacity 44.1 Northern and Eastern mt Europe-Central Asia Cement capacity 31.6

North America mt

Cement capacity 17.0

Africa-Eastern mt Mediterranean Basin Asia-Pacific mt Cement capacity 26.3

Cement capacity 47.4

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FACTS A N D FIGURES Aggregates reserves and resources of 19.2 bnt

Northern and Eastern Bnt Change the slide layout Europe-Central Asia Western and Southern bnt Aggregates reserves 0.8 Europe Aggregates resources 0.6 Aggregates reserves 1.1 Total 1.3 Aggregates resources 2.0 Total 3.1

North America bnt Aggregates reserves 4.6 Aggregates resources 7.4 Total 12.1 Asia-Pacific bnt Africa-Eastern bnt Mediterranean Basin Aggregates reserves 1.2 Aggregates reserves 0.02 Aggregates resources 1.5 Aggregates resources 0.05 Total 2.7 Total 0.1

18 HeidelbergCement Group Presentation | Group Communication & IR | 23 March 2021 About HeidelbergCement

Facts and Figures

Strategy Beyond 2020

Sustainability

Appendix: The Group areas Show guides via menu bar: View / Show / tick Guides

STRATEGY BEYOND 2020 Core elements of our strategy “Beyond 2020“

Change the slide layout Simplify & Improve Innovate

1 2 3 4 5 Business Portfolio People & Digital Excellence Management Organization Sustainability Transformation

Further improving Shifting portfolio Simplifying Leading Enabling a step commercial & focus to core business processes the way to carbon change in business operational markets and setup neutrality excellence performance

6 Strict capital allocation

Deliver sustainable shareholder value

20 HeidelbergCement Group Presentation | Group Communication & IR | 23 March 2021 Our Strategy “Beyond 2020”

1. We prioritize ROIC and earnings margin improvement over sales growth 2. We are working on our portfolio: Focus on strengthening core markets while maintaining our balanced global footprint 3. We maintain strict capital discipline: − Investing with a focus on improving our property, plant and equipment and return on investment − Larger, complementary acquisitions to be co- financed through divestments

4. We accelerate innovation in CO2 reduction and digitalization as a pioneer in the building materials industry 5. We offer shareholders attractive returns - including progressive dividend policy and share buyback option Show guides via menu bar: View / Show / tick Guides

STRATEGY BEYOND 2020 We are well on track to achieving our 2025 targets

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EBITDA margin ROIC Leverage ratio Clearly +300 bps >8% 1.5-2.0x vs 2019

Sustainability Digital transformation CO2 reduction target accelerated <525 kg by 5 years: >75% of global sales CO2/t cementitious -30% vs 1990 volumes covered by HConnect

22 HeidelbergCement Group Presentation | Group Communication & IR | 23 March 2021 About HeidelbergCement

Facts and Figures

Strategy Beyond 2020

Sustainability

Appendix: The Group areas Change the slide layout

Our Sustainability Commitments 2030 help us to find new solutions that will

make our business Driving economic strength and innovation

even more Achieving excellence in occupational health and safety

sustainable. Reducing our environmental footprint

Enabling the circular economy

Find a choice of background Being a good neighbour

Ensuring compliance and creating transparency Show guides via menu bar: View / Show / tick Guides

SUSTAINABILITY

We are continuously reducing our CO2 emissions

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Specific net CO2 emissions Reduction of CO2 emissions (as of 2020): (kg CO /t cementitious material) 2 − 2.3% less specific net CO2 emissions compared to 2019 (-23% vs 1990) 750 -23 % -30 % > -33 % − 26% - share of alternative fuels − 74% - clinker factor

-2,3 % CO2 neutrality by 2050 − Increasing the use of alternative fuels and 589 576 improving energy efficiency. 525 − Optimization of kiln systems and reduction of the clinker factor <500 − Promotion of carbon capture and utilization/storage (CCU/S) projects − Improvement of the circular economy and 1990 2019* 2020 … 2025 … 2030 development of innovative products

*Prior-year figures may differ from those reported in previous years due to change in reporting scope

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SUSTAINABILITY

Less clinker incorporation and more biomass are key levers for CO2 reduction

Change the slide layout 5 levers to meet our 2030 target

Product mix -5% pts Alternative fuels +100% Clinker incorporation: AF rate: Biomass rate: 2019 until 2030: 2019 until 2030: 2019 until 2030: 75% to 70% 24% to 43% 9% to 19%

Low emission fuels Footprint changes / Commercial levers plant efficiency Increased usage of gas as All major overhaul Increased share of fuel (-40% CO2 emissions/GJ investments targeting CO2 sustainable low carbon compared to coal) reduction (e.g. EU, US) concrete products

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SUSTAINABILITY Leading in Carbon Capture and Storage (CCS) at industrial scale

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400,000 t Brevik CCS CO2 reduction p.a. Location: Brevik, Technology: Amine wash – Post-combustion capture

CO2-reduction: Approx. 400,000 t of CO₂ per year which is equivalent to 50 % of the plant’s emissions. Timing: 2020 Parliament approval, 2021 project start → Project to be completed by 2024

Project Funding: Pilot project: Brevik is the world’s first large-scale Largely supported by the Norwegian government as part of carbon capture plant of the cement industry, with 400,000 tonnes of CO captured annually and the full-scale ‘Longship’ climate investment project that 2 transported for permanent storage. comprises capture, transport and storage of CO₂.

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SUSTAINABILITY

Entering the next project phase in innovative CO2-capture technology

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100,000 t LEILAC* 2 CO2 reduction p.a. Location: Hanover, Germany Technology: Direct separation - capture of process related

CO2 on an industrial scale (patented technology)

CO2-reduction: Approx. 100,000 t of CO2 p.a. (~20% plant capacity) Timing: Finished demonstration installation end of 2023 → Project to be completed by 2025 Project Funding: Pioneering: The LEILAC technology has the European research funding program Horizon 2020 and a potential to enable the cement and lime consortium of industry partners. industries to efficiently capture their process emissions on an industrial scale.

* LEILAC = Low Emissions Intensity Lime And Cement 28 HeidelbergCement Group Presentation | Group Communication & IR | 23 March 2021 Show guides via menu bar: View / Show / tick Guides

SUSTAINABILITY Carbon capture and use (CCU) – Pilot project “reFuels*”

Change the slide layout Catch4Climate 100% CO2 reduction Location: Mergelstetten, Germany

Technology: Oxy-fuel – Pilot project to use captured CO2 as a raw material for the production of Picture synthetic fuels (reFuels)

CO2-reduction: Capture up to 100% of the cement plant’s CO2 emissions in a cost-effective way Timing: Entering the planning phase

Project Funding: CI4C founding partners: The project consortium has signed a letter of intent with the Buzzi Unicem SpA, Dyckerhoff GmbH, state of Baden-Württemberg. Funding subject to a positive HeidelbergCement AG, SCHWENK Zement KG, decision by the Federal Ministry for the Environment. and S.A. * Climate-neutral synthetic fuels such as kerosene for air traffic, with the help of renewable electrical energy

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SUSTAINABILITY We are advancing projects on carbon capture technologies around the world

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SUSTAINABILITY Wide range of country-specific sustainable product solutions

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Products / Solutions Brands Details

Low carbon concrete -60% -20% − EcoPlus uses ground slag as secondary cementitious materials (SCM) to reduce CO intensity in concrete products Nor 2 EcoPlus® − Lavkarbon® Nor Lavkarbon uses fly ash as SCM to produce low carbon concrete

Concrete with recycled -70% -45% − Ecocrete is a sustainable / eco-friendly concrete with up to 100 % recycled aggregates and low CO cement aggregates Green 2 Ecocrete® − Concrete Green Concrete uses recycled materials and slag to reduce CO2 content

Innovative low carbon -40% -50% − i.power RIGENERA: concrete jacketing solution for structural retrofitting i.power − i.Tech 3D: high-tech concrete specially formulated for 3D printing construction solutions i.Tech 3D RIGENERA® technologies

Solutions for energy − TioCem: photocatalytic cement that decomposes NOx in the surrounding air transition and clean air TioCem® Powercrete® − Powercrete: high-performance heat-conducting concrete for long distance underground cable power transmission

Approx. CO2 reduction potential vs. ordinary concrete, except in the case of i.Tech 3D & i.power RIGENERA (reduced concrete application)

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Our goal is to realize carbon neutral concrete by 2050 at the latest.

Find a choice of background Beton ist langlebig, extrem stark und widerstandsfähig – und kann vollständig recycelt werden.Concrete. TheBeton most wird benötigt,versatile um building auf die Bedürfnissematerial. einer wachsenden Bevölkerung zu reagieren.

Dr. Dominik von Achten| Annual General Meeting 2019 | 04 June 2020 About HeidelbergCement

Facts and Figures

Strategy Beyond 2020

Sustainability

Appendix: The Group areas Show guides via menu bar: View / Show / tick Guides

T H E GROUP AREAS The Group is divided into five geographical Group areas

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Western and Northern and Eastern Africa-Eastern North America Asia-Pacific Group Services Southern Europe Europe-Central Asia Mediterranean Basin

Belgium, France, Albania, Bosnia- , USA , , Benin, Burkina Faso, Germany, Italy, Herzegovina, , China, India, DR Congo, , , , , Czechia, Indonesia, , Gambia, , , , , Liberia, , Georgia, , Mozambique, Sierra , , Leone, South Africa, Kazakhstan, , , , Norway, , , Israel, Palestine, , , Turkey

Cement, aggregates, ready-mixed concrete-asphalt, service-joint ventures-other

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T H E GROUP AREAS Sales volumes 2020

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Financial year 2020 Ready-mixed Sales volumes Cement Aggregates Asphalt concrete (‘000 t) (‘000 t) (‘000 t) (‘000 m3) North America 15,554 125,925 7,808 4,951 Western and Southern Europe 28,193 78,151 17,223 3,452 Northern and Eastern Europe- 23,588 48,739 5,996 0 Central Asia Asia-Pacific 32,939 36,081 10,558 2,299 Africa-Eastern Mediterranean Basin 21,172 7,403 5,032 0,318 Group Services 0,579 0 0,330 0 Total HeidelbergCement 122,025 296,299 46,947 11,020

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T H E GROUP AREAS Western and Southern Europe

Change the slide layout Market leader in cement in most countries

• Production sites in 7 countries – mature markets • Dense network of production sites for aggregates and ready-mixed concrete • The United Kingdom, France, and Germany are the largest market regions in the Group area in terms of sales volumes

Production sites Total Cement/grinding/GGBS 52 Cement terminals 18 Aggregates 206 Aggregates terminals 76 Ready-mixed concrete 722 Asphalt 35 Concrete products 23 Find a choice of background

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T H E GROUP AREAS Northern and Eastern Europe-Central Asia

Change the slide layout Leading market positions in cement in most countries

• Production sites in 20 countries – mature and emerging markets • We are either the market leader or hold leading market positions in cement in most countries • Dense network of ready-mixed concrete plants in Northern and Eastern Europe • Expansion of aggregates extraction

Production sites Total Cement/grinding/GGBS 27 Cement terminals 79 Aggregates 96 Aggregates terminals 20 Ready-mixed concrete 327 Find a choice of background Concrete products 43

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T H E GROUP AREAS North America

Change the slide layout Leading positions in all business lines

• Leading positions in aggregates, cement, and ready-mixed concrete; asphalt production in both countries • Production sites mainly in the eastern part of the USA, Texas, the Gulf Coast, the Pacific Coast as well as western and eastern Canada

Production sites Total Cement/grinding/GGBS 22 Cement terminals 65 Aggregates 201 Aggregates terminals 19 Ready-mixed concrete 193 Find a choice of background Appendix Asphalt 48 Concrete products 3

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T H E GROUP AREAS Asia-Pacific

Change the slide layout Operations in 8 Asian countries and Australia

• Activities in 8 Asian countries: Bangladesh, Brunei, China, India, Indonesia, Malaysia, Singapore and Thailand • Strong market positions in ready-mixed concrete and aggregates in Malaysia, Indonesia, Hong Kong, and Thailand • Mainly production of aggregates and ready-mixed concrete in Australia (east coast, Tasmania, southwest); joint venture in four cement plants

Production sites Total Cement/grinding 25 Cement terminals 17 Aggregates 91 Find a choice of background Ready-mixed concrete 367 Asphalt 21

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T H E GROUP AREAS Africa-Eastern Mediterranean Basin

Change the slide layout Market leader in most countries • Production sites in 13 African countries: Benin, Burkina Faso, DR Congo, Egypt, Gambia, Ghana, Liberia, Morocco, Mozambique, Sierra Leone, South Africa, Tanzania, and Togo • In Egypt and Morocco, we are among the market leaders in the cement business; strong positions in ready-mixed concrete • Mainly cement production in sub-Saharan countries; market leader in most countries • Turkey: leading position in cement and ready-mixed concrete; production of aggregates • Israel: ready-mixed concrete, aggregates, and asphalt

Production sites Total Cement/grinding 27 Cement terminals 12 Aggregates 9 Find a choice of background Ready-mixed concrete 88 Asphalt 1

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T H E GROUP AREAS Group Services

Change the slide layout Focus on our international trading

• HC Trading is one of the largest cement and clinker trading companies in the world • Deliveries via sea routes to own locations and other cement companies • 23.2 mt of trading volume in 2020: cement, clinker, solid fuels and other building materials • 40 supplier countries; customers in 80 countries

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