2020 Half Year Results
30 July 2020
Dr. Dominik von Achten - Group CEO Dr. Lorenz Näger - Group CFO
Key Messages Q2 2020
- Solid result in unprecedented challenging environment
- Margin improvement despite significant demand pressure
- COPE action plan with high cost savings and preservation of liquidity
- 1.4 b€ net debt reduction driven by very strong free cash flow generation
- Solid start into Q3 but business visibility still limited for H2 2020
2020 Half Year Results
Financial Highlights
Sustainability Update
Key Takeaways
Appendix
2 0 2 0 H A L F Y E A R R E S U L T S
Margin improvement despite volume driven revenue decline
Revenue (m€) | Operating EBITDA (m€) | Operating EBITDA Margin | Operating EBIT (RCO) (m€) |
Lfl: -10% | Lfl: -2% | Lfl: -5% |
+205 bps | Lfl: -6% | |||||||||||||||||||||||
-10% | -2% | -7% | -6% | |||||||||||||||||||||
Lfl: -4% | ||||||||||||||||||||||||
Lfl: -12% | 9,212 | 1,438 1,404 | 23.1% | +139 bps | 754 | |||||||||||||||||||
-5% | 710 | |||||||||||||||||||||||
8,254 | 21.0% | 698 | 651 | |||||||||||||||||||||
-13% | ||||||||||||||||||||||||
1,046 | 998 | 15.6% 17.0% | ||||||||||||||||||||||
4,973 4,324
Q2 | Half Year | Q2 | Half Year | Q2 | Half Year | Q2 | Half Year |
2019 2020
4 | 2020 Half Year Results | 30.07.2020 |
2 0 2 0 H A L F Y E A R R E S U L T S
COPE action plan with strong contribution
Q2 Operating EBITDA Bridge (m€)
-4.0% | ||||||
1,046 | -6 | 1,040 | -193 | |||
152 | 999 | 0 | 998 |
Q2 2019 EBITDA | Currency | Q2 2019 | Net volume | Price over cost 1) | Q2 2020 | Scope | Q2 2020 EBITDA |
LfL EBITDA | LfL EBITDA |
1) Includes COPE cost savings of 158m€
5 | 2020 Half Year Results | 30.07.2020 |
2 0 2 0 H A L F Y E A R R E S U L T S
Stable EBITDA in a challenging market environment
H1 Operating EBITDA Bridge (m€)
-2.2% | ||||||
1,438 | -8 | 1,430 | -236 | 1,399 | 5 | 1,404 |
205 |
H1 2019 EBITDA | Currency | H1 2019 | Net volume | Price over cost 1) | H1 2020 | Scope | H1 2020 EBITDA |
LfL EBITDA | LfL EBITDA |
1) Includes COPE cost savings of 183m€
6 | 2020 Half Year Results | 30.07.2020 |
2 0 2 0 H A L F Y E A R R E S U L T S
COPE action plan on track despite much higher revenue than anticipated
COPE cash savings as of June 2020 (m€)
1,000 | |||
65 | 354 | ||
106 | |||
183 | |||
Fixed cost | CapEx | Other cash | Total cash 2020 Target |
savings | saving |
Proactive and successfully implimented action plan
- Cope action plan already initiated in February
- Minimization of all non-essential expenses and reduction of staff costs clearly visible on results
- Maintenance CapEx only for business critical projects
- Suspension of tax prepayments and strict receivables policy
7 | 2020 Half Year Results | 30.07.2020 |
2 0 2 0 H A L F Y E A R R E S U L T S
Covid-19 leads to demand decline in all business lines
Sales volumes | Development in key markets | ||||
CEMENT (mt) | 2019 | 2020 | Change | LfL | North America |
▪ COPE savings and positive pricing minimizes the negative impact | |||||
Q2 | 32.4 | 28.7 | -3.8 | -10.9% | |
from significant decline in volumes | |||||
Half year | 61.0 | 56.3 | -4.7 | -6.6% | |
▪ Trend turning positive after very difficult April and May | |||||
AGGREGATES (mt) | 2019 | 2020 | Change | LfL | |
Europe | |||||
Q2 | 82.7 | 74.7 | -8.0 | -9.2% | ▪ Solid pricing and saving initiatives lead to margin improvement in |
Half year | 145.6 | 134.8 | -10.8 | -6.9% | a historically difficult quarter |
▪ Good demand in June, especially in Nordics, Eastern Europe and | |||||
READY-MIX (mm3) | 2019 | 2020 | Change | LfL | |
Germany | |||||
Q2 | 13.1 | 11.0 | -2.0 | -15.4% | Asia-Pacific |
▪ A difficult quarter driven by full lock-down in India and strict | |||||
Half Year | 24.4 | 21.7 | -2.7 | -11.5% | |
ASPHALT (mt) | 2019 | 2020 | Change | LfL | measures taken in Australia and Indonesia |
Africa - Eastern Mediterranean | |||||
Q2 | 3.0 | 2.6 | -0.4 | -13.6% | |
▪ Limited impact from Covid-19, tailwind from energy costs and | |||||
Half Year | 4.8 | 4.3 | -0.5 | -11.2% | |
COPE savings lead to both absolute EBITDA and margin | |||||
improvement in Q2 |
8 | 2020 Half Year Results | 30.07.2020 |
2 0 2 0 H A L F Y E A R R E S U L T S
Q2 2020 EBITDA growth in NEECA and Africa - Eastern Mediterranean
North America
m€ | |
-26m | |
315 | -8% |
288 | |
Q2 2019 | Q2 2020 |
Western & Southern Europe
m€ | |
-28m | |
272 | -10% |
244 | |
Q2 2019 | Q2 2020 |
North & Eastern Europe - Central Asia
m€ | +28m |
+14% | |
203 | 231 |
Q2 2019 | Q2 2020 |
Asia Pacific
m€ | |
-38m | |
187 | -21% |
149 | |
Q2 2019 | Q2 2020 |
Africa - Eastern Mediterranean
m€ | +9m |
+10% | |
88 | 96 |
Q2 2019 | Q2 2020 |
9 | 2020 Half Year Results | 30.07.2020 |
S U S T A I N A B I L I T Y U P D A T E
Sustainability Report 2019 pubished
11th SR of HeidelbergCement published on 25 June 2020
- Focus on climate protection and reduction of CO2 emissions
- Thorough coverage of human rights and compliance as well as occupational health and safety
- Further key topics: Social responsibility, supply chain and supplier management, R&D, biodiversity, responsible land use and water management, etc.
- Commitment to the UN Global Compact and the UN Social Development Goals
- Stakeholder engagement: next materiality assessment to be carried out until end of 2020
10 2020 Half Year Results | 30.07.2020
Key Financial Messages June 2020
- Revaluation of the asset portfolio leads to impairment of goodwill and other assets of ~3.4 billion EUR
- Adjusted for the additional ordinary result, Group Share of Profit increases by 5% to 356 million EUR per June 2020
- Strong free cash flow generation - High cash conversion rate (53%) pushing free cash flow LTM to 1.9 billion EUR
- COPE action plan with focus on cost savings, tight CapEx spending and disciplined working capital management took effect in Q2'20
- Net debt reduced by 1.4 bn€ compared to June 2019
F I N A N C I A L H I G H L I G H T S
Adjusted Group share of profit increased by 5%
Income Statement per June (m€) | 2019 1) | 2020 | Delta |
Revenue | 9,212 | 8,254 | -957 |
RCOBD (Operating EBITDA) | 1,438 | 1,404 | -34 |
Depreciation and amortization | -684 | -693 | -9 |
Result from current operations (RCO) | 754 | 710 | -44 |
Additional ordinary result | -128 | -3,490 | -3,362 |
Financial result | -176 | -157 | +19 |
Income taxes | -150 | -138 | +12 |
Net result from continuing operations | 300 | -3,075 | -3,375 |
Net result from discontinued operations | -9 | -20 | -11 |
Non-controlling interests | -79 | -39 | +40 |
Group share of profit | 212 | -3,133 | -3,346 |
Group share of profit adjusted for AOR | 340 | 356 | +16 |
Key developments
- Revaluation of asset portfolio leads to impairment of goodwill and other assets of 3.4 bn€ in AOR
- Financial result improved due to the decrease in interest expenses (+38 m€)
-
Negative accounting effect from change in discount rate for the measurement of provisions
(~50 m€ booked in financial result and discontinued operations) - Income taxes 12 m€ below prior year; further improvement expected for second half of the year
12 | 2020 Half Year Results | 30.07.2020 | 1) Prior year values adjusted |
F I N A N C I A L H I G H L I G H T S
Portfolio revaluation led to goodwill and asset impairment of 3.4 bn€
Split by geography
UK | WSE (excl. UK) |
34%
49%
8% | ||
6% | NAM | |
3% | ||
Other APAC
Split by line item
Financial fixed
assets / JVs Other fixed
0.4% assets
21.8%
77.8%
Goodwill
Reasons for revaluation
- Corona pandemic as triggering event
- Original business expectations have decreased in the specific planning period
- Brexit impacts negatively on business expectations in UK
- Increased MRP and risk-free debt spreads
- Long term business prospects continue to be good
- Impairment does not affect short term operational development; very little (positive) cash effect
13 2020 Half Year Results | 30.07.2020
F I N A N C I A L H I G H L I G H T S
Strong free cashflow and significant net debt reduction
Free cash flow1) generation (m€)
Cash conversion rate: 53%
3,546 | ||||||
-307 | 128 | |||||
-350 | ||||||
-904 | 1,883 | |||||
-230 | ||||||
Jun 2020 | Interest | Tax | Change in | Sustaining | Other | FCF |
EBITDA | payment | payment | working | CapEx | Generation | |
capital | ||||||
LTM | LTM | |||||
- FCF = Operating cash flow minus sustaining capex
Net debt development (m€)
-1,443 | |||||
10,437 | |||||
293 | 149 | 8,994 | |||
-1,883 | -2 | ||||
Net debt | FCF | Net growth | Dividends | Currency | Net debt |
Jun 2019 | CapEx | / other | Jun 2020 | ||
14 2020 Half Year Results | 30.07.2020
Key Messages Q2 2020
- Solid result in unprecedented challenging environment
- Margin improvement despite significant demand pressure
- COPE action plan with high cost savings and preservation of liquidity
- 1.4 b€ net debt reduction driven by very strong free cash flow generation
- Solid start into Q3 but business visibility still limited for H2 2020
A P P E N D I X
Sales volumes
Sales Volumes | Cement ('000 t) | Aggregates ('000 t) | Ready Mix ('000 m3) | Asphalt ('000 t) | |||||||||||||
QUARTER | Q2 19 | Q2 20 | Change | LfL | Q2 19 | Q2 20 | Change | LfL | Q2 19 | Q2 20 | Change | LfL | Q2 19 | Q2 20 | Change | LfL | |
North America | 4,443 | 3,847 | -595 | -13.4% | 34,924 | 33,711 | -1,213 | -3.5% | 2,099 | 1,952 | -147 | -7.0% | 1,495 | 1,356 | -139 | -9.3% | |
West / South Europe | 8,187 | 6,748 | -1,439 | -16.1% | 22,262 | 18,365 | -3,897 | -18.9% | 4,912 | 4,090 | -822 | -17.6% | 859 | 700 | -159 | -18.5% | |
North / East Europe | 6,765 | 6,324 | -441 | -5.0% | 13,492 | 12,930 | -561 | -3.2% | 1,820 | 1,566 | -254 | -12.2% | |||||
Asia Pacific | 8,118 | 6,659 | -1,459 | -18.2% | 9,902 | 8,244 | -1,658 | -10.9% | 2,878 | 2,372 | -506 | -17.0% | 520 | 439 | -81 | -15.6% | |
Africa / Med. Basin | 4,772 | 4,983 | 211 | 5.6% | 2,195 | 1,413 | -782 | -35.6% | 1,228 | 1,029 | -200 | -16.2% | 107 | 80 | -27 | -25.0% | |
Group Service | 158 | 97 | -61 | -38.8% | 117 | 31 | -87 | -73.6% | |||||||||
HC GROUP | 32,444 | 28,659 | -3,785 | -10.9% | 82,693 | 74,682 | -8,011 | -9.2% | 13,054 | 11,039 | -2,015 | -15.4% | 2,980 | 2,575 | -405 | -13.6% | |
Sales Volumes | Cement ('000 t) | Aggregates ('000 t) | Ready Mix ('000 m3) | Asphalt ('000 t) | |||||||||||||
YEAR TO DATE | Jun 19 | Jun 20 | Change | LfL | Jun 19 | Jun 20 | Change | LfL | Jun 19 | Jun 20 | Change | LfL | Jun 19 | Jun 20 | Change | LfL | |
North America | 7,474 | 7,108 | -367 | -4.9% | 57,515 | 56,225 | -1,291 | -2.2% | 3,573 | 3,601 | 28 | 0.5% | 1,911 | 1,815 | -95 | -8.0% | |
West / South Europe | 15,071 | 12,891 | -2,180 | -12.5% | 42,277 | 36,614 | -5,663 | -14.8% | 9,194 | 7,910 | -1,283 | -15.1% | 1,733 | 1,453 | -280 | -16.2% | |
North / East Europe | 11,210 | 10,910 | -301 | 0.0% | 21,806 | 21,895 | 88 | 1.3% | 3,158 | 2,841 | -317 | -8.0% | |||||
Asia Pacific | 17,071 | 15,015 | -2,056 | -12.4% | 19,662 | 16,514 | -3,148 | -9.9% | 5,608 | 4,924 | -684 | -13.4% | 984 | 877 | -107 | -10.9% | |
Africa / Med. Basin | 9,847 | 10,147 | 300 | 4.2% | 4,442 | 3,543 | -898 | -20.2% | 2,602 | 2,262 | -340 | -13.1% | 198 | 198 | 0 | -0.1% | |
Group Service | 351 | 278 | -73 | -20.8% | 261 | 166 | -95 | -36.2% | |||||||||
HC GROUP | 61,025 | 56,348 | -4,677 | -6.6% | 145,605 | 134,791 | -10,814 | -6.9% | 24,395 | 21,705 | -2,691 | -11.5% | 4,825 | 4,343 | -483 | -11.2% | |
17 2020 Half Year Results | 30.07.2020
A P P E N D I X
Operating result
Operating Result | Revenues (m€) | Operating EBITDA (m€) | Operating EBIT / RCO (m€) | EBITDA Margin | ||||||||||||
QUARTER | Q2 19 | Q2 20 | Change | LfL | Q2 19 | Q2 20 | Change | LfL | Q2 19 | Q2 20 | Change | LfL | Q2 19 | Q2 20 | Change | LfL |
North America | 1,297 | 1,216 | -6.2% | -7.9% | 315 | 288 | -8.4% | -10.2% | 225 | 191 | -15.4% | -17.3% | 24.2% | 23.7% | -55 bps | -62 bps |
West / South Europe | 1,388 | 1,182 | -14.8% | -14.6% | 272 | 244 | -10.5% | -10.9% | 164 | 143 | -12.6% | -13.2% | 19.6% | 20.6% | +100 bps | +85 bps |
North / East Europe | 799 | 765 | -4.3% | 0.0% | 203 | 231 | 13.8% | 17.0% | 152 | 183 | 20.6% | 23.5% | 25.4% | 30.2% | +481 bps | +433 bps |
Asia Pacific | 804 | 667 | -17.1% | -14.7% | 187 | 149 | -20.6% | -17.6% | 124 | 85 | -31.7% | -28.6% | 23.3% | 22.3% | -98 bps | -79 bps |
Africa / Med. Basin | 407 | 410 | 0.6% | 0.7% | 88 | 96 | 9.9% | 12.7% | 59 | 69 | 16.1% | 21.5% | 21.5% | 23.5% | +198 bps | +250 bps |
Group Service | 450 | 201 | -55.4% | -55.4% | 7 | 4 | -39.6% | -39.5% | 6 | 2 | -62.0% | -62.0% | 1.6% | 2.1% | +55 bps | +55 bps |
HC GROUP | 4,973 | 4,324 | -13.0% | -12.3% | 1,046 | 998 | -4.6% | -3.9% | 698 | 651 | -6.7% | -6.0% | 21.0% | 23.1% | +205 bps | +202 bps |
Operating Result | Revenues (m€) | Operating EBITDA (m€) | Operating EBIT / RCO (m€) | EBITDA Margin | ||||||||||||
YEAR TO DATE | Jun 19 | Jun 20 | Change | LfL | Jun 19 | Jun 20 | Change | LfL | Jun 19 | Jun 20 | Change | LfL | Jun 19 | Jun 20 | Change | LfL |
North America | 2,127 | 2,136 | 0.5% | -2.1% | 343 | 340 | -0.8% | -2.8% | 168 | 146 | -12.9% | -14.3% | 16.1% | 15.9% | -20 bps | -12 bps |
West / South Europe | 2,566 | 2,287 | -10.9% | -10.8% | 328 | 306 | -6.7% | -8.1% | 118 | 103 | -12.1% | -15.6% | 12.8% | 13.4% | +59 bps | +38 bps |
North / East Europe | 1,373 | 1,349 | -1.8% | 2.4% | 259 | 294 | 13.4% | 15.0% | 158 | 197 | 25.0% | 26.0% | 18.9% | 21.8% | +292 bps | +233 bps |
Asia Pacific | 1,618 | 1,403 | -13.3% | -11.7% | 348 | 280 | -19.6% | -17.3% | 221 | 150 | -32.3% | -29.8% | 21.5% | 19.9% | -157 bps | -137 bps |
Africa / Med. Basin | 837 | 853 | 2.0% | 0.6% | 184 | 192 | 4.4% | 5.7% | 128 | 137 | 6.8% | 10.1% | 22.0% | 22.5% | +53 bps | +109 bps |
Group Service | 1,017 | 499 | -50.9% | -50.9% | 16 | 10 | -40.9% | -41.1% | 14 | 7 | -47.3% | -47.5% | 1.6% | 1.9% | +33 bps | +32 bps |
HC GROUP | 9,212 | 8,254 | -10.4% | -10.2% | 1,438 | 1,404 | -2.4% | -2.2% | 754 | 710 | -5.8% | -5.3% | 15.6% | 17.0% | +139 bps | +138 bps |
18 2020 Half Year Results | 30.07.2020
A P P E N D I X
Scope and currency impacts
Scope & Currency | Scope Impact on Volumes | Revenue | Operating EBITDA | Operating EBIT (RCO) | |||||||
QUARTER | CEM | AGG | RMC | ASP | Scope | Currency | Scope | Currency | Scope | Currency | |
North America | 0 | 0 | 0 | 0 | 0 | 23 | 0 | 7 | 0 | 5 | |
West / South Europe | -123 | 300 | 44 | 0 | 1 | -5 | 1 | 0 | 1 | 0 | |
North / East Europe | -104 | -135 | -33 | 0 | -7 | -27 | 1 | -6 | 1 | -4 | |
Asia Pacific | 20 | -579 | -18 | 0 | 2 | -25 | -1 | -6 | -1 | -4 | |
Africa / Med. Basin | -56 | 0 | 0 | 0 | -5 | 5 | -1 | -1 | -1 | -2 | |
Group Service | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
HC GROUP | -262 | -414 | -7 | 0 | -10 | -29 | 0 | -6 | 0 | -5 | |
Scope & Currency | Scope Impact on Volumes | Revenue | Operating EBITDA | Operating EBIT (RCO) | |||||||
YEAR TO DATE | CEM | AGG | RMC | ASP | Scope | Currency | Scope | Currency | Scope | Currency | |
North America | 0 | 3 | 11 | 57 | 8 | 46 | 0 | 7 | -1 | 4 | |
West / South Europe | -294 | 596 | 103 | 0 | -1 | -1 | 5 | 0 | 4 | 0 | |
North / East Europe | -299 | -201 | -63 | 0 | -21 | -35 | 4 | -7 | 4 | -4 | |
Asia Pacific | 57 | -1,203 | 68 | 0 | 9 | -39 | -1 | -9 | -1 | -6 | |
Africa / Med. Basin | -116 | 0 | 0 | 0 | -11 | 22 | -3 | 0 | -2 | -2 | |
Group Service | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | |
HC GROUP | -652 | -805 | 119 | 57 | -15 | -7 | 5 | -8 | 4 | -8 | |
19 2020 Half Year Results | 30.07.2020
F I N A N C I A L H I G H L I G H T S
Strong operating cash flow development in the first half of 2020
Consolidated statement of cash flows Jan - June (m€)
2019 1) | 2020 | Variance | |
Cash flow | 1,093 | 1,094 | 1 |
Changes in working capital | -919 | -865 | 55 |
Decrease in provisions through cash payments | -179 | -106 | 72 |
Cash flow from operating activities - discontinued operations | -7 | -10 | -4 |
Cash flow from operating activities | -11 | 113 | 124 |
Investments (cash outflow) | -501 | -458 | 42 |
Divestments (cash inflow) and change in consolidation scope | 151 | 51 | -101 |
Cash flow from investing activities - discontinued operations | 1 | -1 | |
Cash flow from investing activities | -348 | -408 | -59 |
Dividend payments | -513 | -220 | 293 |
Changes in ownership interests in subsidiaries | 47 | -1 | -49 |
Net change in bonds, loans and lease liabilities | 74 | -533 | -607 |
Cash flow from financing activities | -392 | -754 | -362 |
Net change in cash and cash equivalents | -751 | -1,049 | -298 |
Effect of exchange rate changes | 36 | -40 | -76 |
Change in cash and cash equivalents | -715 | -1,089 | -374 |
- Clear improvement in operating cash flow: strict working capital management and lower utilization of provisions
- Cash flow from investing activities: disciplined spending on the investments side is offset by lower proceeds from divestments
- Reduced dividend payment is reflected in the cash flow from financing activities
- In the light of the Wirecard development an extraordinary audit of cash balances in Q2 showed no findings
20 | 2020 Half Year Results | 30.07.2020 | 1) Amounts restated due to reclassifications. |
A P P E N D I X
Balance sheet materially impacted by impairment
Consolidated balance sheet June 2020 (m€)
June 2019 | Dec 2019 | June 2020 | Variance vs. prior year | ||
Assets | |||||
Intangible assets | 11,916 | 12,155 | 9,377 | -2,539 | -21 % |
Property, plant and equipment | 14,232 | 14,529 | 13,235 | -997 | -7 % |
Financial assets | 2,124 | 2,128 | 2,041 | -83 | -4 % |
Fixed assets | 28,272 | 28,812 | 24,653 | -3,619 | -13 % |
Deferred taxes | 329 | 313 | 270 | -59 | -18 % |
Receivables | 4,327 | 3,661 | 4,101 | -226 | -5 % |
Inventories | 2,129 | 2,199 | 2,067 | -62 | -3 % |
Cash and short-term financial instruments / derivatives | 1,908 | 3,586 | 2,527 | 619 | 32 % |
Assets held for sale and discontinued operations | 34 | 16 | -34 | ||
Balance sheet total | 36,999 | 38,589 | 33,619 | -3,380 | -9 % |
Equity and Liabilities | |||||
Equity attributable to shareholders | 15,604 | 16,987 | 13,264 | -2,340 | -15 % |
Non-controlling interests | 1,420 | 1,517 | 1,373 | -47 | -3 % |
Equity | 17,024 | 18,504 | 14,637 | -2,387 | -14 % |
Debt | 12,391 | 12,028 | 11,580 | -811 | -7 % |
Provisions | 2,500 | 2,546 | 2,569 | 69 | 3 % |
Deferred taxes | 722 | 726 | 661 | -61 | -8 % |
Operating liabilities | 4,358 | 4,783 | 4,171 | -187 | -4 % |
Assets held for sale and discontinued operations | 3 | 1 | -3 | ||
Balance sheet total | 36,999 | 38,589 | 33,619 | -3,380 | -9 % |
21 2020 Half Year Results | 30.07.2020
A P P E N D I X
Contact information and financial reporting calendar
DateEvent
16 September 2020 Capital Market Day (virtual)
5 November 2020 | Third Quarter Results |
Contact Information
Christoph Beumelburg
Director Communication & Investor Relations
Phone: +49 (0) 6221 481 13249
christoph.beumelburg@heidelbergcement.com
Ozan Kacar
Head of Investor Relations
Phone: +49 (0) 6221 481 13925
ozan.kacar@heidelbergcement.com
Piotr Jelitto
Investor Relations Manager
Phone: +49 (0) 6221 481 39568
piotr.jelitto@heidelbergcement.com
Samuel Jakob
Investor Relations Manager
Phone: +49 (0) 6221 481 39670
samuel.jacob@heidelbergcement.com
22 2020 Half Year Results | 30.07.2020
Disclaimer
Unless otherwise indicated, the financial information provided herein has been prepared under International Financial Reporting Standards (IFRS).
This presentation contains forward-looking statements and information. Forward-looking statements and information are statements that are not historical facts, related to future, not past, events. They include statements about our believes and expectations and the assumptions underlying them. These statements and information are based on plans, estimates, projections as they are currently available to the management of HeidelbergCement. Forward-looking statements and information therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
By their very nature, forward-looking statements and information are subject to certain risks and uncertainties. A variety of factors, many of which are beyond HeidelbergCement's control, could cause actual results to defer materially from those that may be expressed or implied by such forward-looking statement or information. For HeidelbergCement particular uncertainties arise, among others, from changes in general economic and business conditions in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets; the possibility that prices will decline as result of continued adverse market conditions to a greater extent than currently anticipated by HeidelbergCement's management; developments in the financial markets, including fluctuations in interest and exchange rates, commodity and equity prices, debt prices (credit spreads) and financial assets generally; continued volatility and a further deterioration of capital markets; a worsening in the conditions of the
credit business and, in particular, additional uncertainties arising out of the subprime, financial market and liquidity crises; the outcome of pending investigations and legal proceedings and actions resulting from the findings of these investigations; as well as various other factors.
More detailed information about certain of the risk factors affecting HeidelbergCement is contained throughout this presentation and in
HeidelbergCement's financial reports, which are available on the HeidelbergCement
website, www.heidelbergcement.com. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement or information as expected, anticipated, intended, planned, believed, sought, estimated or projected.
In addition to figures prepared in accordance with IFRS, HeidelbergCement also presents alternative performance measures, including, among others Operating EBITDA, EBITDA margin, Adjusted EPS, free cash flow and net debt. These alternative performance measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Alternative performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.
"Operating EBITDA" definition included in this presentation represents "Result from current operations before depreciation and amortization (RCOBD)" and "Operating Income" represents "Result from current operations (RCO)" lines in the annual and interim reports.
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HeidelbergCement AG published this content on 30 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2020 07:50:09 UTC