Engineering& Construction Conference. Milan 6 April 2017

Transcription

1 Engineering& Construction Conference Milan 6 April 2017

2 Executive summary FY 2016 Volumes Cement down 2.2% in Q4 and flat YTD (+0.3); ready-mix concrete flat YTD Italy: poor results in Q4 (cement -8.8%) and YTD (-6.2%), with export materially declining; ready-mix gaining some momentum (+8.2%YTD), supported by business combinations United States: volumes down in Q4 (cement -4.9%) and YTD (cement -1.7%); ready mix also suffering due to South East Texas exposure (-9.8% YTD) Central Europe: favorable trend confirmed in Q4 (cement +2.3%) and YTD (cement +4.3%); ready mix concrete up in Germany (+1.6%) and stable in Benelux (+0.3%) Eastern Europe: positive Q4 (cement +1.8%), particularly in Poland and the Czech Republic; cement up 3.3% in the period, mainly due to Poland (+11.9%), Czech Republic (+4.4%) and Ukraine (+4.0%); almost flat sales in Russia (-1.0%), but Q4 up 2.6% Prices Q4: positive development in Ukraine only FY16: sound increase in USA and Ukraine (local currency); unfavorable variance in Poland, to a minor extent also in Central Europe; stable or marginal weakness in other markets Foreign Exchange Negative impact on sales ( m 27.4) and EBITDA ( m 5.8) due to weaker ruble and hryvnia Results Net sales at m 2,669 ( m 2,662 in 2015) EBITDA reported at m 551 (also recurring) versus m 473 (recurring m 479), supported by enduring low energy costs pag 1

3 Volumes Cement (m ton) Ready-mix concrete (m m3) pag 2

4 Price trends by country Ukraine Mexico United States Russia Germany Czech Rep. Luxembourg Italy Poland FY 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 In local currency; FY13 = 100 pag 3

5 FX changes current EUR 1 = avg avg % avg USD RUB UAH CZK PLN MXN pag 4

6 Net sales by country Forex Scope l-f-l EURm abs % abs abs % Italy (5.9) United States 1, , Germany (1.3) (4.5) +0.6 Lux/Netherlands Czech Rep/Slovakia (5.5) +3.9 Poland (1.8) -1.8 (4.1) Ukraine (13.2) Russia (12.3) -7.4 (13.8) Eliminations (37.0) (39.2) 2.2 Total 2, , (27.4) (10.0) +1.7 Mexico (100%) (16.9) -2.7 (105.5) pag 5

7 EBITDA by country EURm Forex Scope l-f-l abs % abs abs % Italy (22.2) (37.2) USA Germany Lux/Netherlands Czech Rep/Slovakia (0.2) +5.1 Poland (1.0) Ukraine >100 (2.1) - >100 Russia (5.2) (3.9) Total recurring (5.8) (5.8) (0.0) (0.0) Mexico (100%) (50.8) pag 6

8 Net sales and EBITDA development USA still accounts for 2/3 of the consolidated EBITDA Decreasing contribution from emerging markets, from 22% to 21% of EBITDA (was 33% in 2014) due to forex and weaker Russian contribution % 21% 17% 22% 27% 18% 27% 19% Eastern Europe Central Europe 42% 65% 41% 66% United States of America Italy 14% 14% -4% -8% Net sales EBITDA* Net sales EBITDA* * recurring pag 7

9 EBITDA variance analysis EURm Raw Material: 14.1 Fuel: 24.1 Transport: (1.9) Power: (4.3) (0.1) 8.8 (5.8) (11.8) 51.4 Staff: (4.1) Maintenance: (0.2) Gains on disposal of PPE: 4.8 Inventory: 15.4 Release of provisions: (4.4) Other: (7.0) Variable Fixed Others FY 15 Volumes Prices CO2 FX effect FY 16 Costs Costs rev & costs pag 8

10 EBITDA bridge by region Reported EURm Like for like EURm 580,0 560,0 540,0 520,0 500,0 480,0 460, Italy 44.7 USA 10.8 Central Europe 6.8 Eastern Europe ,0 540,0 520,0 500,0 480,0 460, Italy 43.9 USA 10.8 Central Europe 13.5 Eastern Europe ,0 440,0 420,0 420,0 400, , pag 9

11 Energy costs impact Total energy Power & Fuel 9 18% m % FY % FY % 347 FY % 354 FY % 404 FY % 387 FY FY % 338 FY % 19.4% ,0% FY FY 16 27% 25% 23% 21% % of revenues 19% 17% 15% /ton % 12.0% 11.4% 11.6% 11.8% 11.8% 10.7% 10.6% 11.3% 10,1% 10.8% 10.6% 10.4% 10.3% 9,6% 9.2% 9.3% 8.4% 8.9% 7,4% FY 07FY 08FY 09FY 10FY 11FY 12FY 13FY 14FY 15FY 16 17% 16% 15% 14% 13% 12% 11% 10% 9% 8% 7% % of revenues Energy cost ( m) Energy cost / Cement revenues Power cost ( /ton) Fuel cost / revenues (%) Fuel cost ( /ton) Power cost / revenues (%) pag 10

12 Consolidated Income Statement EURm abs % Net Sales 2, , EBITDA of which, non recurring % of sales (recurring) 20.6% 18.0% Depreciation and amortization (202.6) (209.2) 6.5 Operating profit (EBIT) % of sales 13.0% 9.9% Equity earnings Net finance costs (147.2) (105.1) (42.1) Profit before tax Income tax expense (132.2) (94.0) (38.2) Net profit Minorities (2.8) (2.8) Consolidated net profit Cashflow (1) (1) Net Profit + amortization & depreciation pag 11

13 Consolidated Cash Flow Statement EURm Cash generated from operations % of sales 17.5% 16.7% Interest paid (61.5) (74.9) Income tax paid (101.8) (68.4) Net cash by operating activities % of sales 11.4% 11.3% Capital expenditures (236.0) (304.7) Equity investments (0.4) 0.5 Dividends paid (16.3) (10.7) Dividends from associates Disposal of fixed assets and investments Translation differences and derivatives (59.9) (30.6) Accrued interest payable (3.8) 1.7 Interest received Other (2.7) 7.4 Change in net debt Net financial position (end of period) (941.6) (1,029.7) pag 12

14 Net Financial Position Dec 16 Dec 15 Sep 16 EURm abs Cash and other financial assets Short-term debt (75.7) (542.4) (409.9) Net short-term cash (24.0) Long-term financial assets (3.2) 12.1 Long-term debt (1,488.6) (1,022.0) (466.6) (1,466.2) Net debt (941.6) (1,029.7) 88.1 (984.5) Gross debt breakdown ( m 1,564.4) Short 5% Dollar 6% Floating 22% Other 8% Banks 25% Long 95% Euro 94% Fix 78% Bonds 67% pag 13

15 Expected trading in 2017 Volume Price Italy United States of America Germany Luxembourg Czech Republic Poland Ukraine Russia Mexico Note: Prices in local currency pag 14

16 Appendix pag 15

17 Buzzi Unicem at a Glance International multi-regional, heavy-side group, focused on cement, ready-mix and aggregates Dedicated management with a long-term vision of the business Highly efficient, low cost producer with strong and stable cash flows Successful geographic diversification with leading positions in attractive markets Italy (# 2 cement producer), US (# 4 cement producer), Germany (# 2 cement producer), joint venture in Mexico (# 4 cement producer) Significant positions in Luxembourg, The Netherlands, Poland, Czech Republic, Slovakia, Russia and Ukraine, as well as entry point in Slovenia and Algeria High quality and environmentally friendly assets Leading product and service offering Conservative financial profile and balanced growth strategy Value creation through lasting, experienced know-how and operating efficiency pag 16

18 Ownership structure Share capital Buzzi Family Holdings 47.0% (58.6% Ord) Ordinary 165,349,149 Savings 40,711,949 Total shares 206,061, % Free Float 53.0% Buzzi Unicem 80.2% Asat 31 December 2016 pag 17

19 Cement plants location and capacity CEMENT PLANT GRINDING PLANT SELMA GREENCASTLE STOCKERTOWN PRYOR CAPE GIRARDEAU CHATTANOOGA SUCHOJ LOG m ton United States 10.2 MARYNEAL SAN ANTONIO KORKINO Italy 9.0 Germany 7.2 Russia 4.3 Ukraine 3.0 Poland 1.6 Luxembourg 1.4 CERRITOS TEPETZINGO APAZAPAN LENGERICH RUMELANGE ROBILANTE GESEKE DEUNA AMÖNEBURG GÖLLHEIM ANHOVO VERNASCA NOWINY RIVNE HRANICE NIKOLAJEV Czech Rep. 1.1 Mexico (100%) 8.0 SINISCOLA GUIDONIA BARLETTA Algeria (100%) 2.1 Slovenia (100%) 1.3 SOUR EL GHOZLANE HADJAR SOUD AUGUSTA Asat31 December 2016 pag 18

20 2016 Consumption vs. Peak Total market (m ton) Per capita consumption (kg) ITA ITA USA USA GER GER CZE CZE POL POL UKR UKR RUS RUS MEX MEX pag 19

21 Historical series of cement consumption by country m ton United States 92 Russia 56 m ton Mexico Germany Italy Poland Ukraine Czech Rep pag 20

22 Historical EBITDA development by country EURm Italy EBITDA margin % 5.3% % % % % % % Germany EBITDA margin % 13.9% % % % % % % Lux/ Netherlands EBITDA margin % 8.3% % % % % % % Czech Rep/ Slovakia EBITDA margin % 20.5% % % % % % % Poland EBITDA margin % 25.8% % % % % % % Ukraine EBITDA margin % -12.8% % % % % % % Russia EBITDA margin % 32.0% % % % % % % EBITDA USA margin 21.4% 14.8% 12.8% 18.2% 20.7% 24.2% 28.1% 31.9% Mexico EBITDA margin % 36.2% % % % Adoption of IFRS 11 Consolidated EBITDA margin % 14.6% % % % % % % pag 21