Heidelbergcement Group Presentation

HeidelbergCement
Group Presentation 2021

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.
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.
San Giorgio Bridge, Genoa, Italy

67,000 m3 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
We combine tradition with modernity.
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

ABOUT HEIDELBERGCEMENT
HeidelbergCement: History and development
1873 1889 1977 1989 1993 1995/96 1999 2001 2005/06 2007 2015 2016 1995/9
2021
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

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

53,000 employees
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

reserves 19.2 bnt
The Managing Board of HeidelbergCement
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

Our Purpose
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

Our Culture Principles
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.

Facts and Figures
Sustainability

FACTS AND FIGURES
Profitable growth and balanced regional positioning
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
FACTS AND FIGURES
Cement capacity of 184 mt (incl. joint ventures)
Western and Southern mt

Europe
Cement capacity 44.1 Northern and Eastern mt
Europe-Central Asia
Cement capacity 31.6
North America mt
Africa-Eastern mt
Mediterranean Basin
Asia-Pacific mt

FACTS AND FIGURES
Aggregates reserves and resources of 19.2 bnt

Northern and Eastern Bnt
Europe-Central Asia
Western and Southern bnt Aggregates reserves 0.8
Europe
Aggregates resources 0.6
Aggregates reserves 1.1
Total 1.3
Total 3.1
North America bnt

Aggregates reserves 4.6
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

Facts and Figures
Sustainability

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

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
STRATEGY BEYOND 2020
We are well on track to achieving our 2025 targets
EBITDA margin ROIC Leverage ratio

Clearly
+300 bps >8% 1.5-2.0x

vs 2019
Sustainability Digital transformation

CO2 reduction
<525 kg target accelerated

by 5 years: >75% of global sales
CO2/t cementitious -30% vs 1990 volumes covered by HConnect

Facts and Figures
Sustainability

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
Being a good neighbour
Ensuring compliance and creating transparency

SUSTAINABILITY
We are continuously reducing our CO2 emissions
Specific net CO2 emissions Reduction of CO2 emissions (as of 2020):

(kg CO2/t cementitious material) − 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

589 − Increasing the use of alternative fuels and
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

SUSTAINABILITY
Less clinker incorporation and more biomass are key levers for CO2 reduction
5 levers to meet our 2030 target
Product mix Alternative fuels

-5% pts +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

SUSTAINABILITY
Leading in Carbon Capture and Storage (CCS) at industrial scale
400,000 t
Brevik CCS CO2
reduction
p.a.
Location: Brevik, Norway
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

carbon capture plant of the cement industry, with
Largely supported by the Norwegian government as part of
400,000 tonnes of CO2 captured annually and
the full-scale ‘Longship’ climate investment project that
transported for permanent storage.
comprises capture, transport and storage of CO₂.

SUSTAINABILITY
Entering the next project phase in innovative CO2-capture technology
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
SUSTAINABILITY
Carbon capture and use (CCU) – Pilot project “reFuels*”
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 Vicat S.A.
* Climate-neutral synthetic fuels such as kerosene for air traffic, with the help of renewable electrical energy

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

SUSTAINABILITY
Wide range of country-specific sustainable product solutions
Products / Solutions Brands Details
Low carbon concrete -60% -20% − EcoPlus uses ground slag as secondary cementitious materials (SCM) to
reduce CO2 intensity in concrete
products Nor
EcoPlus® − Nor Lavkarbon uses fly ash as SCM to produce low carbon concrete
Lavkarbon®
Concrete with recycled -70% -45% − Ecocrete is a sustainable / eco-friendly concrete with up to 100 %
Green recycled aggregates and low CO2 cement
aggregates 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
construction solutions i.power − i.Tech 3D: high-tech concrete specially formulated for 3D printing
i.Tech 3D technologies
RIGENERA®
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)

Our goal is to realize
carbon neutral concrete
by 2050 at the latest.
Beton ist langlebig, extrem stark und
widerstandsfähig – und kann vollständig
recycelt werden.
Concrete.
The
Betonmost versatileum
wird benötigt, building material.
auf die Bedürfnisse
einer wachsenden Bevölkerung zu reagieren.
Dr. Dominik von Achten| Annual General Meeting 2019 | 04 June 2020
Facts and Figures
Sustainability

THE GROUP AREAS
The Group is divided into five geographical Group areas
Western and Northern and Eastern Africa-Eastern

North America Asia-Pacific Group Services
Southern Europe Europe-Central Asia Mediterranean Basin
Belgium, France, Albania, Bosnia- Canada, USA Bangladesh, Brunei, Benin, Burkina Faso,
Germany, Italy, Herzegovina, Bulgaria, China, India, DR Congo, Egypt,
Netherlands, Spain, Croatia, Czechia, Indonesia, Malaysia, Gambia, Ghana,
United Kingdom Denmark, Estonia, Singapore, Thailand Liberia, Morocco,
Georgia, Greece, Mozambique, Sierra
Hungary, Iceland, Australia Leone, South Africa,
Kazakhstan, Latvia, Tanzania, Togo
Lithuania, Norway,
Poland, Romania, Israel, Palestine,
Russia, Sweden, Turkey
Slovakia
Cement, aggregates, ready-mixed concrete-asphalt, service-joint ventures-other

THE GROUP AREAS
Sales volumes 2020
Financial year 2020

Sales volumes Ready-mixed Asphalt
Cement Aggregates
(‘000 t) (‘000 t)
concrete (‘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

THE GROUP AREAS
Western and Southern Europe
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

THE GROUP AREAS
Northern and Eastern Europe-Central Asia
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

Cement terminals 79
Aggregates 96
Concrete products 43

THE GROUP AREAS
North America
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

Cement terminals 65
Aggregates 201
Appendix Asphalt 48
Concrete products 3
THE GROUP AREAS
Asia-Pacific
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

Cement/grinding 25
Cement terminals 17
Aggregates 91
Asphalt 21

THE GROUP AREAS
Africa-Eastern Mediterranean Basin
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

Cement/grinding 27
Cement terminals 12
Aggregates 9
Asphalt 1

THE GROUP AREAS
Group Services
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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HeidelbergCement

Group Presentation 2021

HeidelbergCement Headquarters, Heidelberg, Germany

Brenner Base Tunnel, Austria and Italy

Terminal 3, Frankfurt Airport, Germany

San Giorgio Bridge, Genoa, Italy

3D printed house, Beckum

Art Museum Bourse de Commerce – Pinault Collection, Paris, France

Facts and Figures

Strategy Beyond 2020

Appendix: The Group areas

HeidelbergCement: History and development

9 HeidelbergCement Group Presentation | Group Communication & IR | 23 March 2021

10 HeidelbergCement Group Presentation | Group Communication & IR | 23 March 2021

Cement capacity 184 mt

Aggregates resources and

The Managing Board of HeidelbergCement

Ernest Jelito Jon Morrish Chris Ward

12 HeidelbergCement Group Presentation | Group Communication & IR | 23 March 2021

Material to build our Future

We deliver long-term financial performance through operational excellence,

We are progressive minds with the ambition to drive transformation. We push

13 HeidelbergCement Group Presentation | Group Communication & IR | 23 March 2021

Our Culture Principles

Be stronger together Get the customer Unleash Think and act

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

Facts and Figures

Strategy Beyond 2020

Appendix: The Group areas

Profitable growth and balanced regional positioning

Financial Highlights 2020 Distribution of revenue 2020 by regions

Total Group revenue €m 17,606 10%

Adjusted earnings per share * €6.88

Dividend per share €2.20 17%

Dynamic gearing ratio / Rating 1.86x / BBB-

Cement capacity of 184 mt (incl. joint ventures)

Western and Southern mt

Cement capacity 17.0

Cement capacity 47.4

17 HeidelbergCement Group Presentation | Group Communication & IR | 23 March 2021

Aggregates reserves and resources of 19.2 bnt

North America bnt

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

Facts and Figures

Strategy Beyond 2020

Appendix: The Group areas

Core elements of our strategy “Beyond 2020“

Simplify & Improve Innovate

6 Strict capital allocation

Deliver sustainable shareholder value

20 HeidelbergCement Group Presentation | Group Communication & IR | 23 March 2021

We are well on track to achieving our 2025 targets

EBITDA margin ROIC Leverage ratio

+300 bps >8% 1.5-2.0x

Sustainability Digital transformation

<525 kg target accelerated

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

Facts and Figures

Strategy Beyond 2020

Appendix: The Group areas

even more Achieving excellence in occupational health and safety

sustainable. Reducing our environmental footprint

Enabling the circular economy

Being a good neighbour