Contents
1. HeidelbergCement reached important targets in 2015
2. The capital markets honour the positive development
3. HeidelbergCement is well prepared for the future
a. New strategic priorities
b. Increased growth with acquisition of Italcementi
c. Focus on sustainable business activities
Page 2
Actual 2015
Operating income
Earnings per share
+16%
+65%
Net debt
Leverage
bn -1.7
2.0x
ROIC
WACC
7.2%
7.0%
1.30
30.5%
Weaker than expected sales volumes and revenue (Indonesia & China)
Commissioning of new capacities in Indonesia delayed (costs developed as planned)
New plant in Kazakhstan significantly affected by oil crisis
HeidelbergCement has delivered
despite challenging framework conditions
Page 3
Cement (mt)
Aggregates (mt)
Ready-mixed
concrete (mm3)
Asphalt (mt)
+2%
-1%
82
81
244
249
0%
37
2014
Page 5
2015
2014
2015
2014
37
2015
-2%
9
2014
2015
2014
2015
Variance
in %
12,614
13,465
7%
0%
Operating EBITDA
2,288
2,613
14 %
8%
as % of revenue
18.1%
19.4%
Operating income
1,595
1,846
16 %
10%
687
983
43 %
486
800
65 %
2.59
4.26
65 %
Net debt
6,957
5,286
-24 %
Leverage3)
3.04x
2.02x
m
Revenue
23%
+5%
3,049
3,746
4,012
4,196
1,182
1,097
2014
2015
2014
2015
2014
2015
Asia-Pacific
-2%
+11%
Page 7
910
1,008
2,818
2,775
2014
2015
2014
2015
+8%
2,613
197
2,411
2,288
2014 operating
EBITDA
123
Currency
2014 like-for-like
operating EBITDA
Operating
Consolidation
scope
2015 reported
operating EBITDA
370
350
0
Target
2015
PERFORM Cement
100
Europe (API2)
Coal
80
60
40
20
2013
2014
2015
2016
$/bbl
Oil
150
Brent
Mar
100
June
Sep
Dec
50
0
2013
2014
Electricity
LC/MWh
2015
2016
Scandinavia
UK
Germany
NAM NR
Declining
fuel prices
and
stable
Electricity prices
60
3.5%
50
40
1.7%
0.9%
30
20
-0.9%
0
2013
2014
2015
2016
Mar
June
Sep
Dec
Margin
19.0%
18.7%
18.4%
18.1%
18.1%
2,613
2,542
16.7%
2,479
2,382
2,343
2,288
2,199
2012*
2013*
Dec 14
March 15
June 15
Sept.-15
Dec 15
7.2%
6.7%
6.1%
5.8%
21,063
20,086
21,311
21,271
2012
2013
2014
2015
Premium earned on the costs of capital for the first time since the
financial crisis very good result compared to competitors
Page 12
1) Total shareholders equity and net debt (at the end of the year)
2) Adjusted for exceptional items
19,358
20,310
72 %
Financial assets
1,832
1,832
6%
1,319
1,526
5%
Current assets
4,244
4,707
17 %
1,380
14,245
15,976
56 %
Non-current liabilities
8,638
7,531
27 %
Current liabilities
5,028
4,867
17 %
100 %
222
28,133
28,374
Equity/total capital
50.6%
56.3%
6,957
5,286
48.8%
33.1%
Page 13
Part of balance
31 Dec. 2014 31 Dec. 2015 sheet total 2015
Leverage
Net debt (m)
4.0
3.3
3.0
8,423
2.0
7,307
6,957
5,286
2009
2013
2014
2015
1.30
1.20
+73%
0.75
1.00
0.80
0.60
0.60
0.47
0.40
0.20
0.25
0.35
0.12
0.00
2009
2010
2011
2012
2013
2014
Proposal
2015
Page 15
Inhalt
1. HeidelbergCement reached important targets in 2015
2. The capital markets honour the positive development
3. HeidelbergCement is well prepared for the future
a. New strategic priorities
b. Increased growth with acquisition of Italcementi
c. Focus on sustainable business activities
Page 16
Year 2015:
+29%
+10%
+ 1%
-26%
-43%
140
+34%
130
120
110
+ 8%
100
+ 5%
90
80
-23%
HeidelbergCement
70
-28%
LafargeHolcim
60
Cemex
DAX
50
01.03.2015
01.05.2015
01.07.2015
01.09.2015
01.11.2015
01.01.2016
01.03.2016
28.04.2016
HeidelbergCement share price has clearly beaten DAX for the 2nd time
and MSCI for the 3rd time in a row
Seite 17
Source: Bloomberg
HeidelbergCement
210
LafargeHolcim
195
Cemex
180
DAX
165
28 April 2016
113%
+ 84%
150
135
120
+ 8%
105
90
- 22%
75
60
- 24%
45
30
15
Jan 2010
Jan 2011
Jan 2012
Jan 2013
Jan 2014
Jan 2015
Jan 2016
Shareholder structure
(latest notifications)
11%
12%
34%
15%
27%
Germany
North America
UK + Republic of Ireland
Average recommendation by
analysts (as of 26 April 2016)
5
Geographical enlarged
shareholder structure:
share of German, Swiss,
Swedish, French, and British
investors increased
Page 20
Source: Bloomberg
Buy
Hold
Sell
Page 21
included in:
Page 22
Inhalt
1. HeidelbergCement reached important targets in 2015
2. The capital markets honour the positive development
3. HeidelbergCement is well prepared for the future
a. New strategic priorities
b. Increased growth with acquisition of Italcementi
c. Focus on sustainable business activities
Page 23
Operational efficiency
improvement and
deleveraging
Accelerating
growth and
shareholder
returns
Right sizing
of business
after crisis
2009
Page 24
2011
2013
2015
2017
2019
Continuous growth
Attractive shareholder
returns
Page 25
Targets in 2019
(without Italcementi)
>17
Operating EBITDA
in bn
>4
Strategic levers
Page 27
Operating leverage
Cost leadership
Vertical integration
Optimal geographic
footprint
Aggregates
+48%
Production/
capacity
(mt)
113
Sales
volumes
(mt)
76
Production
2015
Capacity
2015
+20%
2015
+21%
37
2015
44
2008
Asphalt
Ready-mixed concrete
Sales
volumes
(mm3)
300
249
Sales
volumes
(mt)
+33%
12
9
2008
2015
2008
Exemplary scenario
28%
EBITDA margin
2015:
25%
26%
EBITDA margin
2015:
24%
25%
Aggregates CI
LEO Logistics
FOX Procurement
initiative
Standardisation and optimisation of
procurement processes
Page 31
Vertical integration
Aggregates
Cement
Focus on growth
markets
Capacity*: 129 mt
64% of capacities in
growth markets
Asphalt
Focus on
urbanisation
114 plants*
Sales volumes: 9.1 mt
Infrastructure
Cement: 50%
Aggregates: 50%-60%
Ready-mixed concrete
concrete concrete
Focus on
urbanisation
1,320 plants*
Sales volumes: 36.7 mm
Commercial
Cement: 20%
Aggregates: 20%-25%
Residential
Cement: 30%
Aggregates: 20%-25%
Vancouver
Seattle
San Francisco
Los Angeles
San Diego
Oslo
Atlanta
Carolinas
Houston
Dallas
St Petersburg
Moscow
Munich
Stuttgart
Frankfurt
London
Chicago
Indianapolis
Stockholm
Warsaw
Bucharest
Benelux
Prague
Istanbul
Miami
Uttar
Pradesh
Xian
Dhaka
Guangzhou
Hong Kong
Mumbai
Kuala Lumpur
Freetown
Monrovia
Accra
Kumasi
Lome
Kinshasa
Jakarta
Dar-es Salaam
Perth
Sydney
Melbourne
Page 33
Dividend policy
40%-45%
payout ratio
30.5%
payout ratio
1.30
0.75
0.60
0,47
0.35
0.25
0.12
Page 34
2019
Share buy-backs
Page 35
Inhalt
1. HeidelbergCement reached important targets in 2015
2. The capital markets honour the positive development
3. HeidelbergCement is well prepared for the future
a. New strategic priorities
b. Increased growth with acquisition of Italcementi
c. Focus on sustainable business activities
Page 36
Italcementi overview
Major global
building materials
group
Operations in 22 countries
Strong market
positions
High quality
assets, brands &
know-how
Page 38
No CapEx backlog
3.8
60
50
25%
Margin (%)
40
20%
1,447 1,404
1,113
934
972
30
15%
842
701 643 631 656 636 10%
20
5%
10
0
2000 2006
2008
2010
2012
2014 2015
0%
2000 2006
2008
2012
2014 2015
449 424
163
2010
143
2.2
71
2.4
2.7
1.8
46
3.5x
2.4
2.2 2.1
2.2 2.2
2.0 1.9
3.0x
2.5x
2.0x
-3
1.5x
1.0x
0.5x
-395
2000 2006
2008
2010
2012
0.0x
2014 2015
2000 2006
2008
2010
2012
2014 2015
390
275
31
265
259
200
168
58
71
244
56
94
129
65
49
12
24
37
HeidelbergCement shares
Maximum of 10.5 million
Page 41
Successful Hanson
integration and unique
organisational structure
Operational
excellence
Timely implemented
and executed programmes
leading to visible margin
improvements
Commercial
excellence
Financial
excellence
Page 42
Significant potential
for improved results
and enhanced value
from Italcementis
assets
Administration
Organisation
Shared
services
Mid-term
impact
Purchasing
Insurance
IT
Margin
improvement
Operational
improvement
Logistics
Business
combination
and strategy
TOTAL
Trading
Tax
Treasury
July 2015
Top-down
approach
85
25
65
Further analysis
on synergy
potentials
30
45
45
105
+225
Current
synergy target
115
70
110
105
400*
175
Stand-alone
2019
Combined
2019
Revenue
bn 13.5
> bn 17
> bn 20
OIBD
bn 2.6
> bn 4
> bn 5
ROIC
7.1%
> 10%
> 10%
Leverage
2.0x
1.5x 2.5x
1.5x 2.5x
4.26
~ 10
~ 11
Payout ratio
30.5%
40% 45%
40% 45%
Page 44
Divestments
Banks have been mandated for the divestments in the USA and Belgium
USA: very strong interest in first class assets
Belgium: very strong interest in fully vertically integrated market positions
High confidence in achieving attractive proceeds from disposals
Organisation/transaction
New Group organisation announced: valid after transaction
Day 1 Readiness plan will be implemented immediately after the closing
Inhalt
1. HeidelbergCement reached important targets in 2015
2. The capital markets honour the positive development
3. HeidelbergCement is well prepared for the future
a. New strategic priorities
b. Increased growth with acquisition of Italcementi
c. Focus on sustainable business activities
Page 46
Page 47
Page 48
(since 2011)
Better biodiversity management due to
cooperation with experts of BirdLife and their
partner organisations
Since 2015, expansion to Africa and Asia
Status 2016: 15 projects in Europe und Africa
Page 49
Inhalt
1. HeidelbergCement reached important targets in 2015
2. The capital markets honour the positive development
3. HeidelbergCement is well prepared for the future
a. New strategic priorities
b. Increased growth with acquisition of Italcementi
c. Focus on sustainable business activities
Page 50
North America
North America
Jon Morrish
Africa-Mediterranean Basin
(Spain)
Africa-Eastern Mediterranean
Basin
Hakan Gurdal
Asia-Pacific
Asia-Pacific
Kevin Gluskie
Page 51
Best first quarter since financial crisis good omen for 2016
Increase in sales volumes of cement, aggregates, and ready-mixed
concrete
Operating EBITDA up 7% to m 321 (like-for-like1) +13%)
Strong operating leverage leads to margin improvement in all business
lines
January - March
2015
2016
2,835
2,832
0%
38
31
-19 %
299
321
7%
13%
10.6%
11.3%
Operating income
115
138
20 %
35%
-80
-31
61 %
-123
-72
41 %
-0.65
-0.38
41 %
2)
January - March
2015
2016
Variance
-373
-262
112
Total investments
-188
-257
-69
Net debt
6,127
5,890
-237
Gearing
38.5%
38.7%
Page 53
1%
Aggregates (mt)
Ready-mixed
concrete (mm3)
Asphalt (mt)
+7%
+5%
46
17
49
+1%
18
2015
2016
2015
2016
2015
2016
-12%
1.6
1.4
2015
2016
-11.3%
-12.2%
-10.6%
-11.8%
-21.5%
-28.9%
Fuel
Electricity
Total
energy
Fuel
Electricity
Total
energy
Inhalt
1. HeidelbergCement reached important targets in 2015
2. The capital markets honour the positive development
3. HeidelbergCement is well prepared for the future
a. New strategic priorities
b. Increased growth with acquisition of Italcementi
c. Focus on sustainable business activities
Page 57
Strong euro
Volatile markets in Russia & Ukraine
Increased competition in Indonesia
Pressure in some African markets
DOWNSIDE RISKS
Upside POTENTIALS
Slowdown of US economy
Outlook 2016
improving programmes
Page 60