Heidelbergcement Group Presentation 2021
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Change the slide layout HeidelbergCement Group Presentation 2021 Find a choice of background Material to build our future. HeidelbergCement Headquarters, Heidelberg, Germany Built with TioCem®, which actively reduces the level of pollutants in the air We cross borders. Change the slide layout Find a choice of background Brenner Base Tunnel, Austria and Italy Building materials for what will be the world's longest underground rail tunnel. Completion 2028 We bring people together. Terminal 3, Frankfurt Airport, Germany Cement for Germany's largest construction site. Completion 2025 We connect. Change the slide layout Find a choice of background 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. Find a choice of background Art Museum Bourse de Commerce – Pinault Collection, Paris, France 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- Kazakhstan, in North furt Stock Lehigh, Eastern China, cement, India, America Ital- Foundation Exchange USA Europe CBR Turkey Scancem Indonesia Georgia 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 Change the slide layout 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 Change the slide layout 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 12 HeidelbergCement Group Presentation | Group Communication & IR | 23 March 2021 Show guides via menu bar: View / Show / tick Guides 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 13 HeidelbergCement Group Presentation | Group Communication & IR | 23 March 2021 Show guides via menu bar: View / Show / tick Guides ABOUT HEIDELBERGCEMENT Our Culture Principles Change the slide layout 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 16 HeidelbergCement Group Presentation | Group Communication & IR | 23 March 2021 Show guides via menu bar: View / Show / tick Guides 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 17 HeidelbergCement Group Presentation | Group Communication & IR | 23 March 2021 Show guides via menu bar: View / Show / tick Guides 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 Change the slide layout 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 Change the slide layout Specific net CO2 emissions Reduction of CO2 emissions (as of 2020): (kg CO /t cementitious material) 2 − 2.3% less specific