Cemetir Holding

Good afternoon, this is the course call conference operator. Welcome and thank you for joining the Chairman Tier First Quarter 2026 Results Conference Call. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Marco Maria Bianconi, Chief M&A and IR Officer. Please go ahead, sir.

Thank you. Good evening and welcome to Chairman Tiroldi's first quarter 2026 results webcast. I'm here with our Chairman and Chief Executive, Francesco Caltagirone. Good afternoon. Who's happy to take your question at the end of my short presentation. So starting with the key takeaways on page two, Q1, 2026 results were impacted by marked seasonality and a different maintenance schedule. The harshest winter in the past 20 years in Europe and Turkey, together with a different maintenance schedule and a sharper than expected volumes and profitability decline in Turkey has impacted our results. Volumes were down across all business lines, cement minus 3.3%, ready mix minus 23.7%, aggregates minus 5.1%, mainly driven by weather disruption, a weaker demand in Asia Pacific, and lower activity in Turkey. Positive trends in Belgium and Egypt following the restarts of the second kiln, and a volume recovery was visible in March in some regions. Revenue, was down 7.1% year-on-year, driven by lower volumes across several regions and a negative FX impact of around 21.4 million euro, mainly due to Turkish lira and US dollar depreciation. EBITDA was down around 40.6% for the quarter, of which around 25 million euro relate to Nordic and Baltic and Turkey, reflecting lower volumes and different scheduling of maintenance activities while the FX impact was negligible. There was no significant direct impact from geopolitical conflict on our operations in the first quarter. Energy cost volatility has been largely mitigated through a structural risk management approach and hedging, while some pressure still persists on petco supply and logistics. The full year of 2026 guidance is confirmed despite a highly uncertain microeconomic and geopolitical environment and pending greater visibility on its evolution in the coming months. Turning to page three, a bit more granularity on the results. Revenues reached €345.9 million, some minus 6% year-on-year. Non-GAAP revenue reached €344.1 million, minus 7.1%. Lower volumes across several regions and a 21.4 million euro negative effects, mainly due to the Turkish shilling dollar depreciation. As mentioned, cement volumes were down 3.3%, mainly due to exceptionally adverse weather conditions, weaker demand in Asia-Pacific and lower activity in Turkey, partially offset by a stronger performance in Egypt and Belgium. RMC volumes were down 23.7%, aggregates were down minus 5.1%. EBITDA reached 38.8 million euro, minus 41.6%. Non-GAAP EBITDA was 41.4 million euro, minus 40.6%. 25 million of EBITDA decline was between Nordic and Baltic and Turkey, driven by lower volumes on top of a different annual maintenance schedule. Non-GAAP EBITDA margin stood at 12% as opposed to the 18.8% in the first quarter of last year. Pre-tax was 7.4 million and non-GAAP pre-tax was 14.8 million. Net cash reached 303.7 million euro, an improvement of 160.5 million euro year-on-year, including 51 million from the disposal of Carl Cimento, 19.7 million of insurance proceeds 18.6 million of the just transition funds and 52.2 million of dividends paid. Turning to page number four, focus on Nordic and Baltic, accounting for around 47% share of group EBITDA for the quarter. In Denmark, there were exceptionally adverse weather conditions, especially in January and February. leading great domestic demand down by around 10%, the coldest start of the year in the last 20 years. There was a partial recovery in March with a plus 6%, whereas white cement volumes were up 15% supported by stronger demand. Exports were down 7% due to lower deliveries to Norway and Iceland, partially offset by growth in the UK, France and Finland. RMC volumes were down 22%, aggregate volumes down 29%, with a partial recovery in March. EBITDA was down 44%, again impacted mainly by lower volumes and higher costs due to a different maintenance schedule. Norway, we have only RMC activity there, and sales volumes were down 13%, impacted by weak demand and some delays in infrastructure projects on top of adverse weather, marked with overcapacity and price competition. Lower EBITDA was due to lower volumes and higher variable costs, partially offset by pricing action. The Norwegian krona appreciated by around 2.3% versus the Euro average in the period. In Sweden, RMC volumes were down 10%, again due to harsh weather. There was a very strong rebound in March, plus 14%. and aggregate volumes were up 14% supported by the startup of several projects. March volumes were 60% up. EBITDA was impacted by lower RMC volumes and partly mitigated by aggregate performance and pricing. In the period, the Swedish kronor evaluated by around 4.8% versus the Euro. Turning to page five, Belgium and France, accounting for around 42% of group EBITDA in the period, Here, domestic cement volumes were up 8% supported by new customers and strong pickup segment despite adverse weather and weak residential demand. Exports were up 30% in France and the Netherlands driven by new customers and they were signs of recovery in the French construction sector. RMC volumes were up 4%. Aggregate volumes were up 4% as well, mainly in France and the Netherlands. EBITDA was down 12% mainly because of the cement segment due to higher costs related to a different business schedule only partially offset by higher volumes. RMC was impacted by lower volumes in Belgium and higher production costs. Turning to page number six on Turkey. I remind you that from April 22, Turkey has considered hyperinflationary and the reported figures are non-GAAP, i.e. they exclude the impact of hyperinflation and the valuation of non-industrial property. In Turkey, there was a highly challenging market environment impacted by hyperinflation, higher interest rates, and exceptionally adverse weather in January and February. There was also the impact of Ramadan seasonality and weaker post-earthquake reconstruction demand. As a consequence, domestic cement volumes were down 18% year on year, affected by severe winter conditions, weak macro, and the disposal of the karst plant. Exports were up 80%, mainly due to higher deliveries to Albania, Bulgaria, and other countries. RMC volumes were down 34% and aggregate volumes were down 30% on the quarter, impacted by weaker demand. Revenues were down 31.3%, also because of Turkish Lira devaluation. The EBITDA was negative, reflecting lower volumes and higher variable of fixed cost, only partially offset by price increases. The divestment of Car Cimento was completed on December 1st, 2025. I remind you that the Turkish Lira devalued by 34% against the Euro in the period. Turning to page seven, North America, accounting for 10% of Group EBITDA in the period. White cement volumes were up 4% in the US, showing a resilient performance, despite competitive pressure, adverse weather, and select pricing dynamics. Texas volumes were moderately down, due to a snowstorm in January and strong competition. In the York region, it was slightly down again due to harsh weather. California volumes were broadly flat, while Florida recorded a significant increase, supported by a dynamic market despite aggressive competition. EBITDA was down 1.7%, impacted by higher transport, cement purchase, energy, and maintenance costs, and some FX effect. Partially offset by higher volumes and prices. The new aggregate business contributed positively. In the period, the US dollar devalued by around 11.2% versus the euro. Turning to page number 8, Asia-Pacific accounting for 1% of Group EBITDA. In China, volumes were down 15%, impacted by stagnant demand, intense competition, and heavy snowfall in January, and a slowdown around the Chinese New Year. Market environment remains weak, despite the government stimulus. Revenues were down 24.7%, EBITDA was down 43.4%, and the renminbi devalued by around 5.8% in the period. In Malaysia, total volumes were down 30%, mainly due to timing difference in clinker shipments to Australia, while domestic volumes, though marginal, declined by 13% due to residential weakness. Semen exports were slightly down. Revenues were down 19%, while EBITDA had breakeven due to lower volumes, higher freight rates, and scheduled maintenance, despite better product mix. Malaysian Ringgit was up by 0.9% versus the Euro in the period. The last geography of page 9, Egypt, accounting for 6% of Group EBITDA. Revenues were up 41.5% despite an evaluation of the Egyptian Pound of around 7.7%. Domestic cement volumes were up 50%, also benefiting from the timing shift of deliveries from December, and the macro context, though, remains challenging with high inflation, current devaluation, and high energy costs. Export volumes were up 68%, supported by the restart of the second production line in 2025, strengthening presence in the U.S. and Western Europe. EBITDA was up 6.4%, driven by higher volumes, partly offset by lower average price due to destination mix and higher energy costs. Last slide, number 10, regarding guidance, which is confirmed for 2026. Despite a weak Q1 and the turbulent geopolitical scenario pending greater visibility on its evolution, we reiterate our full year guidance, which you can see here with revenues up from the pro forma of last year, 5% to 1.7 billion euro. EBITDA, between 400 and 420 million euro. Net cash, up 125 million euro to 590 million. This guidance refers to like-for-like ongoing operations, non-GAAP, and excluding any extraordinary items. This ends my short presentation, and now I leave the floor to Mr. Catagirone, who is happy to take your question. Thank you very much.

Before you start the question, I want to point out a few things because for sure this has been a difficult quarter and whatever went wrong went wrong and in a small quarter this exacerbates the number. But let's say that as Marco said, we reported 41 million of EBITDA and our budget that you are not aware of was 53 million. So anyway, 20, sorry, 16 million below last year. This means that today in our forecast, we see a delay of 12, the real delay is 12 million and is 100% linked to weather situation in Scandinavia and in Turkey. The other part of the delta with the previous year It is mainly due to the maintenance of the different, let me say, planning, and this should be reabsorbed during the week, the year. The second thing is that March, but even April, seems promising. We are seeing a picking up of demand mostly everywhere except for China. even as you know last year the weakest part of our perimeter was Belgium and France and even in this difficult situation Belgium and France performed quite well so now I am open to receive your questions please thank you this is the course call conference operator we will now begin the question and answer session