Investment Highlights

HeidelbergCement is one of the leading building materials manufacturers worldwide with a:

  1. Strong asset base and outstanding product portfolio
    1. World market leader in aggregates: 18 billion tonnes of reserves in attractive markets
    2. Very well balanced 113 million tonnes (129 million tonnes incl. joint ventures) of cement capacity around the globe
       

  1. Superior global footprint with strong presence in urban centres
    1. Leading vertically integrated player with key positions in cement, aggregates, RMC, and asphalt
    2. High share in most attractive micro markets in North America, Europe, Asia, and Africa
    3. Strong positions in fast growing metropolitan markets and resource areas with local production sites close to consumption centres
       

  1. Market leading operational performance
    1. Proven track record of cost cutting and efficiency improvement
    2. Comprehensive internal & external benchmarking to achieve and maintain excellence
       

  1. Strong management with most efficient organisational set up
    1. Flat hierarchies and slim central organisation with fast decision making
    2. Full operational responsibility for local management to maximise profits on country level
    3. Global functional coordination of key value drivers to ensure best practice exchange and realisation of synergies
       

  1. Significant future potential
    1. Accelerating growth and shareholder returns through four strategic levers
      • Operating leverage: significant potential as markets improve
      • Cost leadership: continuous efficiency improvement is part of HC’s DNA
      • Vertical integration of assets, processes, and business
      • Optimal geographic footprint to capture growth
    2. Increased shareholder returns through acquisition of Italcementi
      • High-quality assets with strong market positions and excellent geographical fit
      • Acquisition at the trough of the cycle with Southern European markets positioned for growth
      • Significant value creation potential by leveraging HC’s industry leading financial and operational excellence track record: €m 400 of annual run-rate synergies and €bn 1.4 of CapEx and Working Capital savings from 2015 to 2019
    3. Attractive mid-term targets (FY 2019 including Italcementi)
      • Revenue > €bn 20
      • EBITDA > €bn 5
      • ROIC > 10%
      • Leverage (Net debt/EBITDA) 1.5x – 2.5x
      • EPS ~ € 11
      • Increase dividend payout ratio to 40% ‑ 45%