Thank you and welcome to Cementir Holding first-half results presentation. I'm here with our Chairman and Chief Executive, Francesco Caltagirone, who is happy to take your questions at the end of my short presentation.

I'll go through the presentation deck that has been distributed ahead of this meeting, starting with page 2 with the key takeaways on the results. There has been a significant improvement in the second quarter despite a first quarter that was impacted by exceptionally adverse weather conditions.

At constant perimeter, Q2 cement volumes were up 3.4%, non-GAAP revenue was up 5.3%, and EBITDA was up 12.9%, confirming a positive reversal compared to the weak start of the year. On a reported basis, consolidated volumes declined across all business lines, with cement -2.9%, ready-mix -10.9%, and aggregates -2.6%.

At constant perimeter, though, excluding the disposal of Kars Çimento, cement volumes were up 1.4% in the first half of the year. There was a positive trend in Belgium and Egypt following the restart of the second kiln.

Reported performance was affected by forex headwinds, mainly due to the depreciation of the Turkish lira and of the US dollar. This negative impact amounted to €37.4 million on non-GAAP revenue and €2.6 million on non-GAAP EBITDA.

EBITDA was also affected by lower volumes in Nordic & Baltic and Türkiye due to weather conditions, whilst Egypt, Belgium, and North America improved year on year. Again, there was a clear improvement in the second quarter and there was no significant direct impact from geopolitical conflicts on our operations.

Energy cost volatility has been largely mitigated through a structured risk management approach and our hedging, while some pressure still persists on petcoke supply and logistics. Our full-year 2026 guidance is confirmed despite the very uncertain macroeconomic and geopolitical environment.

On page 3, a few highlights—I'm not going to read verbatim, but just to give you the highlights: revenue was up 0.2% year on year; non-GAAP was down 1.7%, and at constant perimeter was flat. €37.4 million negative FX, mainly due to Turkish lira and US dollar.

We talked about the cement volumes already and RMC volumes as well. On EBITDA basis, the group reported €163.9 million, -5.5%; non-GAAP EBITDA was -10% at €153.6 million, and was down 9.5% at constant perimeter.

The decline in EBITDA was mainly driven by Nordic & Baltic and Türkiye (€26.6 million), lower volumes, and negative FX impact of €2.6 million. Non-GAAP EBITDA margin stood at 19.3% versus 21.2% on the first half of last year.

Group net profit was down 15.7% to €62 million; non-GAAP net profit was down 18.9% to €66 million. Net cash at half year was €276.8 million, an improvement of €132.8 million year on year, including €51 million of Kars Çimento disposal, €19.7 million of insurance proceeds, €18.6 million of the Just Transition Fund, and €54.9 million of dividend distributions.

We now go to page 4, starting with the biggest division accounting for 45% of group EBITDA: Nordic & Baltic. In Denmark, the construction market remained relatively weak, especially the residential part, due to restrictive financing condition and energy cost uncertainty and some project postponement.

Grey domestic cement volumes were down 4% year on year, impacted by exceptionally harsh weather and delays to the Fehmarn project, although deliveries improved during the second quarter. White cement was up 12%, supported by stronger demand.

Exports were down 16%, mainly due to lower deliveries to Norway and Iceland, partially offset by growth in Poland, France, and Finland. RMC and aggregate volumes were down 11% and 21% respectively.

EBITDA was down 21% year on year, impacted by lower volumes, higher CO2 taxes, and increased variable cost. In Norway, sales volumes were down 5% due to weak demand, lower activity on major projects, and some market overcapacity and price competition.

EBITDA increased, driven by higher prices, partially offset by increased variable costs. The Norwegian krone was up 4.2% versus the euro average.

In Sweden, ready-mix sales volumes were up 10%, driven by the recovery from March, the restart of some postponed projects, and several new contracts. Aggregate volumes were up 24%, supported by new projects and the temporary closure of a competitor's quarry.

Also EBITDA was up, and the Swedish krona appreciated by 2.8% versus the euro average. Moving to page 5: Belgium and France, accounting for around 32% of H1 EBITDA.

Domestic cement volumes were up 5%, supported by new customer and a major infrastructure project in the Antwerp area, despite adverse weather at the beginning of the year and unusually high temperatures in the second half of June. Export were up 17%, mainly to France and Netherlands, driven by new customers and a major project in Antwerp.

Ready-mix volumes were down 6% due to weaker performance in Belgium and adverse weather conditions, some Easter-related shutdowns, and a high comparison base in the first half of last year. In France, volumes were up 3%.

Aggregate volumes were up 2%, mainly in France and the Netherlands, benefiting from stronger infrastructure and construction activity from March onwards. EBITDA was up 7%, reflecting higher cement volumes and lower raw materials and CO2 costs, partially offset by higher costs related to different maintenance schedule and lower RMC volumes and higher variable costs.

Moving to page number 6 on Türkiye, accounting for 5% of group EBITDA in the first half of the year. In this country, challenging operating environment continued, impacted by hyperinflation, high interest rates, and exceptionally adverse weather in the first quarter of the year, and weaker post-earthquake reconstruction demand.

Domestic cement volumes were down 13%—2.2% excluding the disposal of Kars—mainly affected by adverse weather, gradual completion of major post-earthquake reconstruction projects, and mixed regional trends, with Aegean up 15%, Marmara -2%, and Eastern Anatolia -32%. Export were up 2%, whereas domestic RMC volumes were down 15%.

Aggregates were down 26% due to the slowdown in the reconstruction activity, although June showed a strong recovery supported by some major infrastructure project in the area of İzmir. Revenues were down 19%, also because of the Turkish lira depreciation.

EBITDA declined, reflecting lower volumes and higher variable and fixed costs, only partially offset by price increases. Remind you that we divested of Kars Çimento on December the 1st, 2025.

In the period, the Turkish lira devalued by around 27% versus the euro average. Moving to North America, accounting for 7% of our group EBITDA.

Volumes in the US were broadly stable, demonstrating a certain resilience, despite a generally softer market environment and weak residential demand. Florida recorded a 10% increase, mainly from demand from new customers, whereas in Texas volumes were down 7% due to a January snowstorm and a competitive pressure from imports.

In California, volumes were down 9% due to intense competition. EBITDA was up 1.8%, with cement business impacted by higher variable costs and FX effect, and only partially compensated by higher selling prices.

The dollar in the period depreciated by around 6.8% versus the euro. Moving on to Egypt, accounting for 5% of group EBITDA in the period.

Revenues were up 57% despite a 7.3% depreciation of the Egyptian pound. Macro context remains challenging, with high inflation, currency volatility, and rising energy costs.

Domestic cement volumes were up 31%, supported by stronger commercial positioning and market share gains. Export volumes were up 78%, benefiting from deferred shipment from December of last year and the resolution of some technical issues following the restart of the second production line, particularly supporting sales to the US.

EBITDA was up 43%, driven by higher volumes, more favorable geographic mix, focus on higher-margin export destinations, which more than offset higher energy and production costs. Moving to page number 9 on Asia Pacific, which is the last business units we're going to talk about, 3% share of group EBITDA.

In China, volumes kept declining, 6% year on year, impacted by weak demand, intense competition, and adverse weather. There was also slowdown around the Chinese New Year.

Market environment remains weak despite government stimulus. Revenues were down 10%—10.5% year on year, reflecting lower volumes and average lower selling prices.

EBITDA, as a reflection of the top-line decline, was down 21.4% due to lower volumes and prices and higher fixed costs, partially offset by higher variable cost savings. The renminbi depreciated by 1.1% versus the euro average in the period.

In Malaysia, on the contrary, total volumes were up 2%, with domestic volumes, although marginal, declining by 11% due to order timing effect and weaker retail demand. Cement exports grew 14%, supported by higher deliveries to Australia, the Philippines, and Vietnam, while clinker export declined by 24%, mainly due to shipment timing difference to Australia.

Revenue was up 8.3%, supported by higher export volumes and a more favorable product mix. EBITDA was down 55% due to higher variable and fixed costs, particularly distribution logistics expenses.

The ringgit was up 2.8% in the period versus the euro. Few words about the acquisition of Nymølle, a bolt-on acquisition in the aggregate business, enhancing vertical integration, securing a stronger Nordic platform.

On July the 1st, we completed acquisition of 100% of the share capital of Nymølle Stenindustrier with an enterprise value of DKK 900 million, which is equivalent to around €120 million on a cash and debt-free basis. The expected synergies are at around DKK 30 million, or €4 million, within 24 months through integration with existing Nordic & Baltic operation.

Nymølle is the largest aggregate player in Denmark with around 10% share. It operates 26 land-based aggregate quarries across Denmark and holds a well-developed reserve base.

The full-year results ending April 2026 are for revenues of DKK 230 million, pro forma EBITDA of 93 million. Moving to the last slide of my presentation, guidance, which is confirmed.

Despite the uncertain macroeconomic and geopolitical environment, we reiterate our full-year guidance, which is for revenues to reach around €1.7 billion, an EBITDA range between €400 and €420 million, net cash position of around €590 million after a capex of around €128 million. As our guidance refers to like-for-like, ongoing operation, non-GAAP, and excluding any extraordinary items.

That said, thank you for your attention, and I'll now leave the floor to you for any questions to our Chairman and Chief Executive. Thank you.

Yes, good evening, and thanks for the opportunity to ask questions. I would have two, please.

The first one would be on cost inflation and pricing initiatives. In the first-quarter results conference call, I think a figure of €38 million inflation was mentioned in the context of the conflict in the Middle East.

Can you maybe update on that number and also update on the pricing initiatives you might take in some of the zones in order to offset that inflation? That's the first question.

There has been some rumors about M&A recently in Latin America where Cementir has been mentioned. Without asking you to confirm the rumors, I would like to get a reminder of the overall strategy and priorities when it comes to the cash deployment and the growth of the company, if you can maybe elaborate a little bit on that.

Those were my questions. Thank you.

Thank you for your question. Yes, on the cost inflation, you're right that there's been a hit in the first quarter due to the increase in especially input costs and raw materials.

I would say that in the second quarter we clawed back some of this hits, and thanks to our hedging, we managed to offset the majority of the price increases due to average higher input costs, especially for thermal energy and electricity. I would say there has not been, as we said also in the communiqué and in the presentation, any meaningful impact on our figures.

If we compare also the electricity and fuels bill in the second quarter compared to the second quarter of last year, there is a delta still unchange of around €8 million. I would say that the delta of the first quarter has been kept.

I would add—so

good afternoon to everybody—that if you see in the first six months, we saw a decline in the sales in cement slightly, ready-mix concrete around 10%, and aggregates. Then you can see that in the first half at the same perimeter, the revenues are almost in line.

This means that almost everywhere there is, let me say, a hike in the price, as we also told in the first quarter, to cover the cost. This also the reason why from the gap compared to last year of around €28 million in EBITDA that we had in the first quarter, now we nearly halve this gap because of, let me say, this price increase.

Going to your second question about the strategy of the possible enlargement of the perimeter of Cementir Holding, as I said in the past that we look at, as it happens, several opportunities that might arise from the market. That the only part of the world where we are not active today is South America.

For sure, this asset, CSN, is an asset that is on the market because the seller is forced to sell it. We are looking at it, let me say, as other competitors are doing.

We are today in a phase that we are estimating and evaluating the asset to, let me say, understand if part of this perimeter, because the perimeter as all is, let me say, too big for us, might fit in our perimeter. Let's say we are still in a sort of preemptive phase, and at this stage, I can only say that it's an opportunity like a lot arise in the last four, five years, and it might be and might not be.

Very clear. Thank you so much.

Thank you, and good afternoon. Two questions.

Guidance: you have done this 10% EBITDA decline in the first half on non-GAAP basis despite the encouraging recovery in the second quarter. You still need to do a mid- to high-single-digit EBITDA growth in the second half to meet the low part of the guidance range, which doesn't seem to be a walk in the park in the current market conditions in which Turkey could continue to be weak and also there is uncertainty on the potential recovery in Scandinavia, no?

I would like to know more precisely what are the basis and the grounds of your confidence to achieve even I would say the low part of the guidance range, if you can specifically maybe comment to different geographies. Then a follow-up on the question on the potential M&A in Brazil.

Correct me if I'm wrong, but what we read is that it's a pretty crowded context with a lot of potential buyer. We also read from newspaper, it's not maybe inside their information, but it's public information, that the multiples could be pretty stretched.

It seems that compared to your usual M&A style not to overpay, doesn't fit very much. Maybe can you add a little bit more color also on the general framework as regards valuation of this asset?

Thanks.

Starting from your second question, I agree with you that on the newspaper or the expectation because everybody that sell something want to sell at the higher price. I am also aware that we have our discipline.

For this reason, I told to the previous question that, let's say, it might be or it might not be, because let's say one thing is that there is an opportunity to enter in a country, one other thing is that the assets are in a good shape and fit for the strategy, the third thing is that the price is reasonable or not. I can say that, as you are saying, that at the price that, let me say, you see or you read in the newspaper is something that probably we are not interested.

It's a crowded process and let's see where and when it will end up. As I said, we are interested, but at a certain condition.

On the other side, as I also said, that beside also the price, there is also the size of this, let me say, company, if can be, let me say, carved out. It's in the end of the seller that is aware that he has few, let me say, bidders, probably some of them for the whole and some of them for part of it.

Today we are still in a sort of non-binding phase, and so we are not aware of what, let me say, even the seller will decide at the end. On your first question, as I said, we are still confident that we can, let me say, reach the guidance.

I think that what we have done in the second quarter is in line, and the trajectory is to have this kind of recover. We are aware that for sure there are still some headwinds, especially from the two wars that are active now, but not on the cost side because, as we are mostly hedged, and so we don't expect weird things from cost side.

As probably in other geographies are experiencing, there are some delays in some, let me say, project, and this might affect the pipeline of the quantity of the sales. As I said before, even so far with a mild decline in our footprint, let me say, market, we were able, let me say, to balance and to recover.

We are confident. Probably let's say that I am more confident now than three months ago.

Thank you.

Yes, good afternoon, everybody. Thanks for the presentation and for taking my questions.

I have a couple. The first one is a follow-up on extra cost.

During the first-quarter conference call, you mentioned around €38 million of extra cost which were expected from geopolitical tension. Now you're talking about around €8 million in the first quarter and around €0 million in the second quarter if I'm right.

Could you elaborate on this delta, what has changed during the quarter to have this reduction in your expectation? The second one is if you have any update on the ACCSION project in Denmark.

What we said is that at the end of the first quarter, if the condition would have remained the same, we would have expected €38 million in extra, let me say, cost. You have seen that beside the last weeks that then the price of oil went down from $120 to around $70.

Now the last 10 days is again up. It's difficult.

We took, let me say, €8 million because well the one part of this, let me say, hike that we like everybody, let me say, felt in the second quarter. Going forward, I can say that if one week from now they agree on, let me say, to calm down the things again, probably the extra cost spillover will be more or less, let me say, what we have seen so far.

If the global context will, let me say, mess up again, I think that we might stick to our forecast. On the ACCSION project, as we have been approved, let me say, by Danish fund financing for 15 years that is up to €2.2 billion of euros.

Now, as we said, we are waiting because we are part of the project. As I said, that the project is the capture in the plant, then to ship by pipeline, let me say, the CO2 to a site, and then there is also the storage area.

We have to be aligned, and we expect by early 2027 to be fully aware of the agenda of the other two players that is outside the plant just to confirm the agenda. Also because we are at the latest phase, there are just few months, to wait to understand if everything is okay in the storage area from seismic, from, let me say, leakage, that there are no possibility of the leakage in the atmosphere.

This will take nearly 30 months. It already started, but the company that is not ourselves that doing, they said that early in 2027 will release the final opinion.

Far, let me say, there are no the red flags. This is what I can say.

Thanks a lot. Thank you.

Good afternoon, everyone. Thank you for picking up my question.

I have a question on petcoke, because you've called out petcoke supply and logistics as the one area where cost pressure still persists. At the same time, the part of the group growing fastest is white cement and Egypt specifically.

It's actually the part that can't substitute away from it, since your own target for white cement is only 8% for color reasons, you cannot easily substitute petcoke. My question is: how do you manage that specific exposure through long-term supply contracts, stock levels, or mainly pricing, for example?

Could you give more colors regarding this? Thank you.

Egor, thank you for the question. It's a very good one.

As petcoke is a peculiar fuel because supply is generally concentrated in the US Gulf. There are a few suppliers coming from the US, and it's one of the few commodities that you cannot really hedge unless you run a significant delta risk.

The only way that we can materially hedge is by buying forward what we need. That's what we've done, and that is the reason why you don't see a meaningful movement in the thermal energy bill so far, because we've been able to actually buy forward quite a lot of quantities for our needs.

Clearly, going forward, we need to monitor very closely the dynamic of this commodity. There is a double effect: one is the dynamic of the dollar, and the other clearly is of the commodity itself in our accounts.

We have a minor third leg to diversify or to try to hedge is to try to split the purchase into different suppliers. Again, you don't have a very huge alternatives.

We watch the space very carefully. Clearly, in this particular commodity, there's very little can do in terms of hedging, as I said, besides buying forward.

We'll see. We've clearly said in the presentation that this is probably one commodity that has a particular dynamic.

We believe that by buying forward plus diversifying the supply base, we can manage to not control, but at least limit the price hikes. Francesco would like to add something.

Yes, I would also want to add that today, especially in Europe, our consumption of petcoke is going lower and lower because of the use of alternative fuels that both in Denmark and in Belgium is around 75%. In Denmark, we are going at natural gas, and in Belgium it will happen next year.

In United States, we are using natural gas, and in Turkey we use just on opportunistic way lignite, that is a natural, let me say, coal. Let's say that the only countries that today go full petcoke are Egypt, China, and Malaysia.

That is account in terms of quantity that is less probably than 15%. Let's say for sure it's an issue, for sure there is a limited framework where you can hedge, but compared to other players, let's say the increase of the petcoke affect, let me say, our balance sheet in a minor way.

Okay. Thank you very much for very detailed answer.

Yes, good afternoon, everybody. Two questions from my side.

The first one is on the Turkish market. I know that is a very volatile market, but I would like to understand how do you see this market evolving in the coming quarter, and do you think that the Carbon Border Adjustment Mechanism could change the competitive environment there?

The second one is on the capex, because it seems to me that you are a little bit ahead of your target for the full year at €130 million. Can you just comment on it?

Are you, let's say, accelerating the green investments, just to understand the target for the full year? Thank you.

Regarding investment, as we shared in the first quarter, due to the very, let me say, unfavorable climatic condition, we sped up the part of the year, but is not in our, let me say, pipeline to speed up. We just, let me say, invested, capex, more in the first part of the year because part of the perimeter was, let me say, difficult to sell cement due to this unfavorable.

I think that probably we will be even a little bit less at the end of the year than the forecast. The other question was?

On the Turkish market.

The Turkish market, let me say, beside a very slow start even for weather condition, today, let me say, is gathering pace, and so we don't think for sure that Turkish market as a whole would be lower than last year, considering that we also had Kars that we sold the plant, today we are one, let me say, plant less or 12% of the perimeter less in terms of quantity. We think that what we are seeing now, even in July, that there is a recovery in the market in consumption, and also in part of the perimeter, the hiking of the price, because remember that Turkey today still have an inflation that is around 30%, and so every month or every one, two months, you need to adjust, especially now, because as you know Turkey, they don't, like most of the European country, they don't have, let me say, energetic power resource, and so every increase what we are seeing in the last 10 days then arrives directly, let me say, in the cost of any product.

As also what we saw in the last two or three years that it's easier when you have inflation to increase the price, and this is what is happening in the market.

Do you think that the Carbon Border Adjustment Mechanism may change

the, let's say,

competitive environment there?

Let me say, the CBAM should, let me say, when it will, let me say, be in place, like what we saw in Europe, should start, let me say, to make the market, because then if you don't have the free allowance, even if the free allowance is €10 or €15, because as you know today in Turkey, the EBITDA per ton is between €10 and €20, if you have an extra cost of 10 and 15, then, let me say, you are not willing to expand capacity and just to forfeit this profitability. What we think is that when this mechanism will be in place, and for Turkey it's a must because they export a lot of steel, a lot of aluminum beside cement, it's in the interest of Turkey to start, let me say, this carbon leakage system to put in place this because otherwise they cannot export to Europe, and they will be taxed in a heavier way, because for sure to be taxed at €80 like it is today the CO2 instead of 10, 15, it's a big difference.

Anyway, I believe that this should start to simplify the competition framework in Turkey, like what we saw in Europe starting from 15, 20 years ago.

Thank you.

Good evening, everyone, and thanks for taking my questions. The first one concern Denmark.

There was a recovery in the second quarter of the year, probably, and you highlighted that also the volumes of white cement were higher. I was wondering how do you see the second half of the year, if you see the recovery continuing, and in particular why this different dynamic, the quite good performance of the white cement in a relatively weak market in the first half, if you can explain the dynamic of this.

A second question concerning the new customers in France and Belgium: I was wondering if the positive impact of the new customers will be seen also in the second half of the year.

The dynamic of white cement is different from grey cement, is affected in the high, in the low of the cycle much less than grey cement. The reason why, let me say, white cement is, let me say, performing better is because of this.

Regarding what we expect in the second half of the year is that, let me say, beside macro shocks that can arise even tomorrow, let's say, we see that there is still a mild recovery, there is some delays in the project, but delays means that is not canceled. If you delay something, let me say, in January, now probably you are going to start.

This is what we are starting to see in Northern Europe, that is not only Nordics, but even Netherlands or Belgium and even France. We think that especially in France and Belgium, let me say, there has been the possibility just to market adjustment, just to, let me say, grab some, let me say, customer, but this is a normal situation that is happens.

I cannot, let me say, say that this customer will stay with us forever, but let's say that what we are talking about the next five months, because we are at the end of July, and probably next year, I am positive on this.

Thank you.

Okay. Then thank you very much for your interest in Cementir and for following this conference call, and we wish you a pleasant rest of your day.

Thank you.

Thank you. Bye-bye.

Bye.