Buzzi (BZU) Investor Presentation summary

Company overview and strategy

• Operates a well-balanced portfolio across mature and emerging markets, with strong positions in the USA, Eurozone, Mexico, and Brazil, and a focus on long-term sustainable growth and value creation.

• Over 40 million tons of cement capacity and 400 concrete plants, including joint ventures, with a proven track record of financial performance and free cash flow generation.

• More than 110 years of history, with significant acquisitions and expansions in Italy, the US, Russia, Mexico, and Brazil, culminating in full control of Cimento Nacional in 2024.

• Group structure as of October 2024 includes a market cap of ~€6.7 billion, with 53% family ownership and 5.9% treasury shares.

• Operations span Italy, Central and Eastern Europe, USA, Mexico, Brazil, and other regions, with a diversified asset base and production capacity.

Financial performance and capital allocation

• Net sales reached €4.3 billion and EBITDA €1.2 billion in FY 2023, with a net cash position of €0.8 billion.

• Net sales CAGR (2014–2023) was 6.2%, while EBITDA CAGR was 12.7%, with EBITDA margin rising by 12 percentage points to 29% in 2023.

• Cumulative net cash from operations over 10 years was ~€4.5 billion, with €2.4 billion invested in industrial assets and €0.5 billion in financial investments.

• Maintained a disciplined Capex/Sales ratio averaging 7.6%, and returned ~€750 million to shareholders since 2014 through dividends and buybacks.

• Achieved consistent deleveraging, moving from net debt/EBITDA of 2.5x in 2014 to a net cash position in 2023, supporting investment grade metrics.

H1 2024 results

• Cement and ready-mix volumes declined by 8% and 8.8% respectively, with net sales down 4.5% to €2,054 million.

• Recurring EBITDA decreased 4.1% to €548 million, but EBITDA margin remained stable at 26.7%.

• Net cash position improved by €100 million compared to FY 2023.

• Weak demand in Central Europe and adverse weather impacted Q2 volumes, but positive price dynamics in Italy and the US offset lower margins elsewhere.

• Guidance for 2024 recurring EBITDA remains in line with last year’s record level.