Q3 2023 Trading Update

2 November 2023

Dr Dominik von Achten - CEO René Aldach - CFO

Key messages Q3 2023

  • Strong operational performance*:
    Revenue up +2%; EBITDA up +25%; RCO up +33%
  • Solid margin improvement in all regions, driven by positive price over cost which compensates volume pressure
  • Free cash flow at around 2 €bn**
  • 1 €bn share buyback program just completed. Shares acquired during the first two tranches are fully cancelled
  • Good progress on CCUS and CO2 reduction projects
  • 2023 Outlook further upgraded:
    • RCO between 2.85-3.00 €bn (previously 2.70-2.90€bn)
    • ROIC clearly above 9% (previously around 9%)
    • Leverage below 1.5x (previously between 1.5x to 2.0x)
  • All like-for-like, excluding currency and scope impacts
  • Based on last 12 months rolling figures

2

02/11/2023

Q3 2023 Trading update | Dr Dominik von Achten, René Aldach

Operational result

Q3 2023 operational overview

Revenue [€m]

+553 €m

-241 €m

LfL:

LfL:

+15.6%

+1.6%

5,852

5,611

5,058

Q3 2021

Q3 2022

Q3 2023

YoY 2023 vs. 2022

YoY 2023 vs. 2021

Operating EBITDA [€m]

+217 €m

+199 €m

LfL:

LfL:

+20.6%

+24.7%

1,393

1,176

1,193

Q3 2021

Q3 2022

Q3 2023

Operating EBITDA Margin

+157 bps

+443 bps

23.2%

24.8%

20.4%

Q3 2021

Q3 2022

Q3 2023

Operating EBIT (RCO) [€m]

+211 €m

+206 €m

LfL:

LfL:

+27.9%

+32.9%

1,080

869

874

Q3 2021

Q3 2022

Q3 2023

3

02/11/2023

Q3 2023 Trading update | Dr Dominik von Achten, René Aldach

Operational result

9M 2023 operational overview

Revenue [€m]

+2,087 €m

+281 €m

LfL:

LfL:

+18.7%

+6.0%

13,996

15,802

16,083

9M 2021

9M 2022

9M 2023

YoY 2023 vs. 2022

YoY 2023 vs. 2021

Operating EBITDA [€m]

+283 €m

+461 €m

LfL:

LfL:

+11.8%

+22.8%

2,896

3,179

2,718

9M 2021

9M 2022

9M 2023

Operating EBITDA Margin

-92 bps

+257 bps

20.7%

19.8%

17.2%

9M 2021

9M 2022

9M 2023

Operating EBIT (RCO) [€m]

+316 €m

+487 €m

LfL:

LfL:

+19.9%

+35.3%

2,269

1,953

1,782

9M 2021

9M 2022

9M 2023

4

02/11/2023

Q3 2023 Trading update | Dr Dominik von Achten, René Aldach

Operational result

Q3 2023 Operating EBIT (RCO) bridge [€m]

+270 €m

(+33%)

453

-7

1,090

-10

1,080

874

-54

821

-176

Q3 2022 RCO

Currency

Q3 2022

Net volume

Price

Depreciation

Q3 2023

Scope

Q3 2023 RCO

LfL RCO

over cost

LfL RCO

5

02/11/2023

Q3 2023 Trading update | Dr Dominik von Achten, René Aldach

Operational result

9M 2023 Operating EBIT (RCO) bridge [€m]

+597 €m

(+35%)

973

5

2,289

-20

2,269

1,782

-90

1,692

-381

9M 2022 RCO

Currency

9M 2022

Net volume

Price

Depreciation

9M 2023

Scope

9M 2023 RCO

LfL RCO

over cost

LfL RCO

6

02/11/2023

Q3 2023 Trading update | Dr Dominik von Achten, René Aldach

Operational result

North America

Q3 Q3 Q3

2021 2022 2023

-61 €m

LfL: +1%

1,391

1,583

1,522

Revenue [€m]

+37 €m

LfL: +17%

291

326

363

RCO [€m]

+324 bps

20.9%

20.6%

23.9%

RCO Margin

  • Strong result development despite lower demand, especially in residential sector
  • Positive pricing and continuous focus on cost management bring margin back to pre-covid level
  • Result contribution from recent investments across North America ahead of initial expectations

7

02/11/2023

Q3 2023 Trading update | Dr Dominik von Achten, René Aldach

Operational result

Western & Southern Europe

Q3 Q3 Q3

2021 2022 2023

-3 €m

LfL: 0%

1,418

1,619

1,616

Revenue [€m]

+104 €m

LfL: +62%

277

177

173

RCO [€m]

+646 bps

17.2%

12.5%

10.7%

RCO Margin

  • Residential sector continues to be weak, visible in demand decline over the entire region
  • Effective cost management leads to solid margin improvement
  • All countries contribute positively to result development

8

02/11/2023

Q3 2023 Trading update | Dr Dominik von Achten, René Aldach

Operational result

Northern & Eastern Europe - Central Asia

Q3

Q3

Q3

2021

2022

2023

-21 €m

LfL: +4%

859

1,001

980

Revenue [€m]

+42 €m

LfL: +36%

200

230

189

RCO [€m]

+465 bps

23.2%

23.5%

18.9%

RCO Margin

  • Revenue decline in absolute terms caused by demand pressure and currency impact
  • RCO improvement driven by continuing focus on cost management and positive pricing
  • Margin growth despite volume pressure

9

02/11/2023

Q3 2023 Trading update | Dr Dominik von Achten, René Aldach

Operational result

Asia - Pacific

Q3 Q3 Q3

2021 2022 2023

-29 €m

LfL: +7%

978

949

792

Revenue [€m]

+33 €m

LfL: +54%

112

118

85

RCO [€m]

+375 bps

14.1%

12.4%

8.7%

RCO Margin

  • Recovery continues in Asia, particularly in Australia and Indonesia
  • Solid increase in region RCO and margin, driven by moderating energy prices
  • China market remains soft

10

02/11/2023

Q3 2023 Trading update | Dr Dominik von Achten, René Aldach

Attachments

Disclaimer

Heidelberg Materials AG published this content on 02 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2023 10:14:55 UTC.