HeidelbergCement - Group Presentation March 2019

1. March 2019
1 - Group Communication & IR
HeidelbergCement
Group presentation
Burglengenfeld cement plant, Germany
©Klaus Kugler, Burglengenfeld

2. March 2019
2 - Group Communication & IR
HeidelbergCement: history and development
Founded in 1873,
today, leading
market positions in
cement, aggregates,
and ready-mixed
concrete
g
1873
1977
1989
1993
1995/96
ss
1999
2001
2005/06
Lehigh, USA
Foundation
Central and Eastern Europe
CBR
China, Turkey
Indocement, Indonesia
Kazakhstan, India, Georgia
2007
2015
2016 Italcementi
Sale of building products North America & UK
Hanson
Scancem

3. March 2019
3 - Group Communication & IR
HeidelbergCement – one of the largest integrated
building materials producers in the world
Number 1 in aggregates, number 2 in cement,
and number 3 in ready-mixed concrete

4. March 2019
4 - Group Communication & IR
HeidelbergCement in figures
g
Employees
Core
business
Production
sites*
Cement, aggregates,
ready-mixed concrete, and asphalt
58,000
3,100 in around 60 countries
 163 cement
 638 sand, gravel, and crushed rock
 1,786 ready-mixed concrete
 111 asphalt
Cement
capacity* 196 million tonnes
Aggregates
reserves +
resources*
20 billion tonnes
*Incl. joint ventures

5. March 2019
5 - Group Communication & IR
Managing Board
Dr. Albert Scheuer
Northern and Eastern
Europe-Central Asia
Hakan Gurdal
Africa-Eastern
Mediterranean Basin
Jon Morrish
North America
Kevin Gluskie
Asia-Pacific
Dr. Bernd Scheifele
Chairman of the
Managing Board
Dr. Lorenz Näger
Chief Financial Officer
Dr. Dominik v. Achten
Deputy Chairman;
Western and Southern Europe

6. March 2019
6 - Group Communication & IR
2018 – new record year despite challenging environment
 Challenging environment
– Unexpected high rise in energy prices
– Extreme weather conditions in the USA (long winter, heavy rainfalls)
– Uncertainties connected with the ongoing Brexit discussions in the UK
– Strong euro resulted in considerable exchage rate losses
 New record figures achieved
– Revenue rose to €18.1 billion (+5%)
– Sales volumes: 130 mt cement, 309 mt aggregates, 49 mm3 ready-mixed
concrete
– Earnings per share up 25% to €5.76
– Profit for the financial year increased to €1,286 million (+22%)
 Outlook for 2019
– Growth of sales volumes in all business lines
– More favourable development of energy costs
– Moderate increase in:
 revenue and result from current operations before currency and consolidation effects
 profit for the financial year before non-recurring effects
– Significant decrease in net debt1)
1) Before application of IFRS 16

7. March 2019
7 - Group Communication & IR
126 130
2017 2018
+3%
305 309
20182017
+1%
47 49
2017 2018
+4%
10 10
2017 2018
+7%
Sales volumes
January–December
Ready-mixed
concrete (mm3)
Cement (mt) Aggregates (mt) Asphalt (mt)

8. March 2019
8 - Group Communication & IR
400
0
200
600
800
1,000
1,200
1,400
1,058
2017
1,286
2018
+22%
0
10,000
5,000
15,000
20,000
2018
17,266
2017
18,075
+5%*
0
500
1,000
2,000
1,500
2,500
2017
2,188
1,984
2018
-9%*
1
1
* Main reasons for the decline in result from current operations: adverse weather conditions in North America;
strong increase in energy prices; decrease in proceeds from the sale of depleted quarries
(€m)
Key figures
Revenue Result from current
operations
Profit for the
financial year

9. March 2019
9 - Group Communication & IR
Split of the Group areas
North America
(Jon Morrish)
Western and
Southern Europe
(Dr. Dominik von Achten)
Northern and Eastern
Europe-Central Asia
(Dr. Albert Scheuer)
Africa-Eastern
Mediterranean Basin
(Hakan Gurdal)
Asia-Pacific
(Kevin Gluskie)

10. March 2019
10 - Group Communication & IR
Group areas and countries
Western and Southern Europe
Belgium, France, Germany, Italy, Netherlands,
Spain, United Kingdom
Northern and Eastern Europe-Central Asia
Denmark, Estonia, Iceland, Latvia, Lithuania,
Norway, Sweden; Albania, Bosnia-Herzegovina,
Bulgaria, Croatia, Czechia, Georgia, Greece,
Hungary, Kazakhstan, Poland, Romania,
Russia, Slovakia, Ukraine
Africa-Eastern Mediterranean Basin
Benin, Burkina Faso, DR Congo, Egypt,
Gambia, Ghana, Liberia, Mauritania, Morocco,
Mozambique, Sierra Leone, South Africa,
Tanzania, Togo; Israel, Palestine, Turkey
Asia-Pacific
Bangladesh, Brunei, China (incl. Hong Kong),
India, Indonesia, Malaysia, Singapore,
Sri Lanka, Thailand; Australia
North America
Canada, USA
Group Services

11. March 2019
11 - Group Communication & IR
Cement capacity of 196 mt (incl. joint ventures)
North America mt
Cement capacity 17.9
Western and Southern
Europe
mt
Cement capacity 51.0
Northern and Eastern
Europe-Central Asia
mt
Cement capacity 38.7
Africa-Eastern
Mediterranean Basin
mt
Cement capacity 30.8
Asia-Pacific mt
Cement capacity 57.2

12. March 2019
12 - Group Communication & IR
High aggregates reserves and resources of around 20 bnt:
focus on mature markets
North America bnt
Aggregates reserves 4.2
Aggregates resources 7.7
Total 11.9
Western and Southern
Europe
bnt
Aggregates reserves 1.6
Aggregates resources 1.8
Total 3.4
Northern and Eastern
Europe-Central Asia
bnt
Aggregates reserves 0.8
Aggregates resources 0.5
Total 1.3
Africa-Eastern
Mediterranean Basin
bnt
Aggregates reserves 0.04
Aggregates resources 0.02
Total 0.1
Asia-Pacific bnt
Aggregates reserves 1.3
Aggregates resources 1.6
Total 2.9

13. March 2019
13 - Group Communication & IR
 Production sites in 7 countries – mature markets
 In most countries we are the market leader in
cement
 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
Western and Southern Europe
Production sites Total
Cement/grinding/GGBS 58
Cement terminals 14
Aggregates 221
Aggregates terminals 75
Ready-mixed concrete 736
Asphalt 37
Concrete products 25 Tavernola, Italy

14. March 2019
14 - Group Communication & IR
 Production sites in 21 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
Northern and Eastern Europe-Central Asia
Production sites Total
Cement/grinding 30
Cement terminals 87
Aggregates 107
Aggregates terminals 17
Ready-mixed concrete 364
Concrete products 20 Varna, Bulgaria Kaspi, Georgia

15. March 2019
15 - Group Communication & IR
North America
 Leading positions in aggregates, cement,
ready-mixed concrete, and asphalt
 Production sites mainly in the eastern part of the
USA, Texas, the Gulf Coast, the Pacific Coast as
well as western and eastern Canada
 Integrated market approach for cement,
aggregates, asphalt, and ready-mixed concrete
in four regions: North, South, West, and Canada
Production sites Total
Cement/grinding/GGBS 22
Cement terminals 65
Aggregates 205
Aggregates terminals 18
Ready-mixed concrete 204
Asphalt 51
Concrete products 3 Bridgeport, USA Dundas, Canada

16. March 2019
16 - Group Communication & IR
Asia-Pacific
 Asia
– Activities in 9 countries: Bangladesh, Brunei, China,
India, Indonesia, Malaysia, Singapore, Thailand, and
Sri Lanka
– Strong market positions in ready-mixed concrete and
aggregates in Malaysia, Indonesia, Hong Kong, and
Thailand
 Australia
– Mainly production of aggregates and ready-mixed
concrete
– Production sites on the east coast, Tasmania, and
in the southwest
– Joint venture in four cement plants
Production sites Total
Cement/grinding 26
Cement terminals 16
Aggregates 93
Ready-mixed concrete 378
Asphalt 21
Yerraguntla, IndiaLaverton recycling plant, Australia

17. March 2019
17 - Group Communication & IR
Africa-Eastern Mediterranean Basin
 Africa
– Production sites in 14 countries:
 Benin, Burkina Faso, DR Congo, Egypt, Gambia, Ghana,
Liberia, Mauritania, 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
 Eastern Mediterranean Basin
– Turkey: leading position in cement and ready-mixed concrete;
production of aggregates
– Israel: ready-mixed concrete, aggregates, and asphalt
– Palestine: cement import business
Production sites Total
Cement/grinding 27
Cement terminals 10
Aggregates 12
Ready-mixed concrete 104
Asphalt 2
Büyükcekmece, TurkeyScantogo , Togo

18. March 2019
18 - Group Communication & IR
Group Services
 International trading activities of HeidelbergCement
– HCT is one of the largest cement and clinker trading companies in
the world
– Deliveries via sea routes to own locations and other cement
companies
 30.9 mt of trading volume in 2018: cement, clinker, other building
products, as well as coal and petroleum coke
 46 supplier countries; customers in 85 countries

19. March 2019
19 - Group Communication & IR
HeidelbergCement strategy
 Operational excellence
– High level of customer orientation and service qualtity
– Ensuring a competitive cost structure in all areas
– Culture of continuous improvement
 Sustainability (Sustainability Commitments 2030)
– Health and safety of our employees are crucial: “zero harm“
– Clear commitment to the 2°C target of Paris – reduction of specific CO2 emissions
– Support of social and economic development of our neighbouring communities
 Growth: creation, development, and maintenance of vertically integrated
market positions
 Financial performance
– Balance between short-term profitability and long-term value creation
– Disciplined investments

20. March 2019
20 - Group Communication & IR
Sustainability Commitments 2030
Achieving
Excellence in
Occupational Health
and Safety
Driving Economic
Strength and
Innovation
Being a Good
Neighbour
Enabling the
Circular Economy
Ensuring
Compliance and
Creating
Transparency
Reducing our
Environmental
Footprint
Six topics characterise HeidelbergCement‘s commitment for
sustainable growth, environment and society

21. March 2019
21 - Group Communication & IR
Research and innovation at HeidelbergCement
 R&D and product innovation in the cement, aggregates, and ready-mixed
concrete business lines are concentrated in two research centers
– Leimen: focus on reduction of CO2 emissions, resource efficiency,
decrease in production costs, and value added concrete solutions
– Bergamo: focus on product innovations, development of high-end
concrete applications, and new market opportunities
 All projects are defined and implemented by the teams at both centers
in close coordination with the operating companies
– The close collaboration from the start of a project facilitates the efficient
implementation of the development results and a quick market launch
i.lab, Bergamo, Italy Heidelberg Technology Center, Leimen, Germany

22. March 2019
22 - Group Communication & IR
Conclusion
 HeidelbergCement is a company with
– excellent market positions and attractive product portfolio
– strong corporate culture with strict focus on costs
 HeidelbergCement focuses on
‒ attractive rate of return for shareholders
‒ continuous growth in mature and emerging countries
Success factors of HeidelbergCement’s
business strategy:
Cost Leadership, Customer Satisfaction,
and Operational Excellence

23. March 2019
23 - Group Communication & IR
for better building