Facts

and Figures
2017
Preface

Dr. Bernd Scheifele, Chairman of the Managing Board

Cover: Golden Grove Quarry, Australia

Dear readers,
2016 was a special year for HeidelbergCement for two reasons:
With the takeover of Italcementi we significantly strengthened
our market positions in North America, Europe, Asia, and Africa.
In our core business lines aggregates, cement, and ready-mixed
concrete, we are number one, two and three globally. The com-
pelling logic of this acquisition and the positive development
of HeidelbergCement in recent years have convinced the rating
agencies which awarded HeidelbergCement an investment
grade rating. Thanks to this rating, our financing conditions on
the capital market have improved considerably.

n Revenue rises by 13% to 15.2 billion

n Earnings per share, adjusted for non-recurring effects,
increases by 23% to 5.34
n Dividend was increased substantially by 23% to 1.60
per share.

The strategic priorities remain unchanged: continuous growth

and value creation for our shareholders. We focus on five areas:
increasing customer satisfaction, high operating leverage, cost
leadership, vertical integration, and an optimised geographical
positioning.

We are cautiously optimistic concerning 2017. Areas of focus

in 2017 will be the conclusion of the integration of Italcementi
and reduction of net debt. From a global perspective, we are
well positioned to achieve our strategic goals continuous
growth and sustainable value creation for our shareholders.

Yours sincerely,

Dr. Bernd Scheifele,

Chairman of the Managing Board

1
 Competence and quality
In around 60 countries across the world, HeidelbergCement
stands for competence and quality.

Over the more than 140 years since its founding in 1873,
HeidelbergCement has grown from a regional cement manu-
facturer, with one plant in Heidelberg, to one of the worlds
leading building materials groups. With the takeover of the
Italian cement producer Italcementi, HeidelbergCement has
become the number 1 in aggregates production, number 2 in
cement, and number 3 in ready-mixed concrete worldwide.
The two companies complement one another ideally, given
the close similarities in product areas and organisational
structures, but also because of their different geographical
footprints, without any major overlaps. In the significantly
expanded HeidelbergCement Group, 60,000 employees work
at more than 3,000 production sites in around 60 countries
on five continents.

The core activities of HeidelbergCement include the production

and distribution of cement and aggregates, the two essential
raw materials for concrete. Our downstream activities include
mainly the production of ready-mixed concrete, but also of
asphalt and other building products in some countries. With
the acquisition of Italcementi, we have significantly expanded
our maritime trading activities.

2
History and development

1873 Founding
1977 Lehigh, USA
1989 Central and Eastern Europe
1993 Acquisition of CBR
1995/96 China/Turkey
1999 Acquisition of Scancem
2001 Acquisition of Indocement, Indonesia
2002/03 Market leader in Romania, Ukraine, and Germany
2005/06 Involvement in Kazakhstan, India, and Georgia
2007 Acquisition of Hanson
2010 Democratic Republic of the Congo
2015 Disposal of building products business in
North America and the United Kingdom
2016 Acquisition of Italcementi

Heidelberg Technology Center, Leimen, Germany

3
 HeidelbergCement
in the world

4
5
 Western and
Southern Europe

6
7
 Western and Southern Europe
Belgium, France, Germany, Italy, Netherlands, Spain, United
Kingdom

Following the acquisition of Italcementi, the new Western

and Southern Europe Group area consists of seven countries.
This includes the addition of France and Italy, two extremely
strong market regions.

As a fully integrated building materials company, we manu-

facture cement, aggregates, and ready-mixed concrete in all
these mature markets, as well as various building products in
some countries and asphalt in the United Kingdom. In most
countries, we are the market leader in the cement business.
We also have a dense network of production facilities for ready-
mixed concrete and quarries for the extraction of aggregates.

Matera cement plant, Italy

8
Cement capacity as well as aggregates reserves and resources
Cement capacity 47.1 mt
Aggregates reserves and resources 3.6 bnt

Sales volumes
Cement and clinker 22 mt
Aggregates 67 mt
Ready-mixed concrete 15 mm3
Asphalt 3 mt

Revenue by business lines (m)

Cement 1,823
Aggregates 878
Ready-mixed concrete-asphalt 1,577
Service-joint ventures-other 387
Intra-Group eliminations -737
Total revenue 3,928

Number of plants1)
Cement plants 33
Grinding plants 16
Blast furnace slag 3
Cement terminals 18
Aggregates 201
Aggregates terminals 92
Ready-mixed concrete 773
Asphalt 42
Concrete products 23
Sand-lime bricks 14

1) Including joint ventures

9
 Northern and Eastern
Europe-Central Asia

10
11
 Northern and Eastern
Europe-Central Asia
Denmark, Estonia, Iceland, Latvia, Lithuania, Norway,
Sweden; Albania, Bosnia-Herzegovina, Bulgaria, Croatia,
Czechia, Georgia, Greece, Hungary, Kazakhstan, Poland,
Romania, Russia, Slovakia, Ukraine

Including the activities of Italcementi, HeidelbergCement is

active in 21 countries in the Northern and Eastern Europe-
Central Asia Group area. Important market positions in Bulgaria
and Greece have been added.

In many of these countries we manufacture cement, aggregates,

and ready-mixed concrete as a fully integrated building materi-
als company. We are either the market leader or hold leading
positions in the countries in which we produce cement.

Devnya cement plant, Bulgaria

12
Cement capacity as well as aggregates reserves and resources 1)
Cement capacity 41.4 mt
Aggregates reserves and resources 1.4 bnt

Sales volumes
Cement and clinker 24 mt
Aggregates 37 mt
Ready-mixed concrete 6 mm3

Revenue by business lines (m)

Cement 1,383
Aggregates 284
Ready-mixed concrete-asphalt 542
Service-joint ventures-other 410
Intra-Group eliminations -195
Total revenue 2,425

Number of plants 1)
Cement plants 28
Grinding plants 4
Cement terminals 79
Aggregates 98
Aggregates terminals 19
Ready-mixed concrete 320
Concrete products 20

1) Including joint ventures

13
 North America

14
15
 North America
Canada, USA

The USA and Canada form the North America Group area.
In our largest market area, we are one of the leading manu-
facturers of cement, aggregates, and ready-mixed concrete.
Asphalt is also manufactured in a few US states, and concrete
pipes are produced in Western Canada. With the acquisition
of Italcementi, we have considerably expanded our footprint
in the Northeast and Midwest of the USA, as well as in the
eastern part of Canada.

HeidelbergCement has production sites across the continent

with a focus on the eastern half of the USA, Texas, the Gulf
Coast, the Pacific Coast, as well as Western Canada and Quebec.

Logansport cement plant, USA

16
 Cement capacity as well as aggregates reserves and resources 1)
Cement capacity 17.4 mt
Aggregates reserves and resources 12.2 bnt

Sales volumes
Cement and clinker 15 mt
Aggregates 119 mt
Ready-mixed concrete 6 mm3
Asphalt 4 mt

Revenue by business lines (m)

Cement 1,631
Aggregates 1,531
Ready-mixed concrete-asphalt 1,012
Service-joint ventures-other 236
Intra-Group eliminations -383
Total revenue 4,027

Number of plants1)
Cement plants 19
Grinding plants 2
Blast furnace slag 3
Cement terminals 69
Aggregates 189
Aggregates terminals 17
Ready-mixed concrete 174
Asphalt 51
Concrete products 3

1) Including joint ventures

17
 Asia-Pacific

18
19
 Asia-Pacific
Bangladesh, Brunei, China, India, Indonesia, Malaysia,
Singapore, Sri Lanka, Thailand; Australia

Taking into account the activities of Italcementi, the Asia-Pacific

Group area includes ten countries. In most of the growth coun-
tries of Asia, the focus is on cement production. Through the
addition of Italcementi, HeidelbergCement has considerably
expanded its market presence in the Indian cement market
and gained a key position in Thailand. In Malaysia, Thailand,
Hong Kong, and Indonesia, we maintain strong market posi-
tions in ready-mixed concrete. In some countries, particularly
Malaysia, we also produce aggregates.

In Australia, we have significant market positions in ready-mixed

concrete and aggregates, with a dense network of production
sites. Moreover, we hold a 50% stake in Cement Australia,
the largest cement company in Australia.

Citeureup cement plant, Indonesia

20
Cement capacity as well as aggregates reserves and resources 1)
Cement capacity 56.8 mt
Aggregates reserves and resources 2.8 bnt

Sales volumes
Cement and clinker 29 mt
Aggregates 39 mt
Ready-mixed concrete 11 mm3
Asphalt 2 mt

Revenue by business lines (m)

Cement 1,568
Aggregates 587
Ready-mixed concrete-asphalt 1,071
Service-joint ventures-other 43
Intra-Group eliminations -363
Total revenue 2,907

Number of plants1)
Cement plants 16
Grinding plants 9
Cement terminals 17
Aggregates 99
Ready-mixed concrete 336
Asphalt 20
Concrete products 2

1) Including joint ventures

21
 Africa-Eastern
Mediterranean Basin

22
23
 Africa-Eastern Mediterranean Basin
Benin, Burkina Faso, DR Congo, Egypt, Gambia, Ghana,
Liberia, Mauritania, Morocco, Mozambique, Sierra Leone,
Tanzania, Togo; Israel, Palestine, Turkey

The recently added countries of Italcementi have expanded

the Africa-Eastern Mediterranean Basin Group area to include
16 countries. We are one of the market leaders in Egypt and
Morocco in particular. We also produce ready-mixed concrete in
both countries and aggregates in Morocco. HeidelbergCement
mainly manufactures cement in the African countries south of
the Sahara and in most of them we are the market leader.
Based on the good growth prospects, we have significantly
expanded our production capacities in several countries over
the last few years. In 2016, HeidelbergCement also entered
the market in Mozambique.

In the Eastern Mediterranean Basin, the joint venture Akansa

is one of Turkeys leading cement manufacturers. It also has
a dense network of ready-mixed concrete plants and manu
factures aggregates. In Israel, we produce ready-mixed concrete,
aggregates, and asphalt. In Palestine, we want to establish a
local building materials business.

At Baha cement plant, Morocco

24
Cement capacity as well as aggregates reserves and resources 1)
Cement capacity 30.8 mt
Aggregates reserves and resources 0.1 bnt

Sales volumes
Cement and clinker 14 mt
Aggregates 10 mt
Ready-mixed concrete 4 mm3
Asphalt 1 mt

Revenue by business lines (m)

Cement 1,014
Aggregates 90
Ready-mixed concrete-asphalt 259
Service-joint ventures-other 33
Intra-Group eliminations -82
Total revenue 1,314

Number of plants1)
Cement plants 15
Grinding plants 12
Cement terminals 10
Aggregates 8
Aggregates terminals 4
Ready-mixed concrete 120
Asphalt 2

1) Including joint ventures

25
 Group Services

26
Group Services
Group Services comprises the international trading activities
of HeidelbergCement. Our subsidiary HC Trading is one of the
largest international trading companies for cement and clinker.
It is also responsible for purchasing and delivering coal and
petroleum coke via sea routes to our own locations and to
other cement companies around the world.

With the acquisition of Italcementi, we have expanded our

network by integrating Interbulk Trading which also trades
globally with cement and clinker, as well as with solid fuels
via sea routes.

In 2016, more than 1,100 shipments were conducted via

the main sea routes of Asia, the Mediterranean Basin, and
Continental Europe to their destinations in Africa, Southeast
Asia, and North America. Revenue in the Group Services unit
amounted to 1,078 million in 2016.

27
 Sustainability

28
29
 Building on sustainability
HeidelbergCement is committed to sustainability and
builds on the three pillars of economy, ecology, and social
responsibility.

Our sustainable corporate governance places the primary focus

on customers, employees, shareholders, and local partners
at all locations. In our Sustainability Ambitions programme,
we have documented the core topics of our commitment
and defined long-term targets.

As a company that makes intensive use of raw materials, we

regard climate protection and the securing of resources as the
basis for our future development. We are constantly reducing
our CO2 emissions through efficient production processes and
the use of alternative fuels and raw materials. Occupational
health and safety are our utmost priority and an integral part
of all our business activities. We supply sustainable building
materials that benefit society. After activities have ceased, the
quarries and sand and aggregate pits from which we extract
our raw materials are returned to a natural state or put to
agricultural use. We are increasingly opting for renaturation,
thus helping to preserve biodiversity.

In order to increase knowledge about the biological value

of the quarrying sites, we concluded the third edition of the
Quarry Life Award education and research competition in
2016. Overall, 94 projects were carried out in the 21 partici-
pating countries. The international Grand Prize was awarded
to a project in Spain.

30
HeidelbergCement is member of:

World Business Council for

Sustainable Development

31
 Financial highlights

m 2015 2016
Group revenue 13,465 15,166
Result from current operations before depre-
ciation and amortisation 2,613 2,939
Result from current operations 1,846 1,984
Profit for the financial year 983 896

Cement and clinker sales volumes (mt) 81 104

Aggregates sales volumes (mt) 249 272
Ready-mixed concrete sales volumes (mm3) 37 43
Asphalt sales volumes (mt) 9 9
Number of employees 45,453 60,424

Italian Pavilion, Milan, Italy

32
HeidelbergCement AG
Berliner Strasse 6
69120 Heidelberg, Germany
www.heidelbergcement.com

Contact:
Group Communication
Phone: +49 (0) 6221 481-13227
Fax: +49 (0) 6221 481-13217
E-mail: [email protected]

Investor Relations
Phone:
Institutional investors USA and UK:
+49 (0) 6221 481-13925
Institutional investors EU and rest of the world:
+49 (0) 6221 481-39568
Private investors:
+49 (0) 6221 481-13256
E-mail: [email protected]

Photographs
HeidelbergCement photo archives; Jarle Andersen, Asker/Norway:
page 24 bottom left; Mario e Pietro Carrieri, Milan/Italy: page
32; Giuseppe Cella, Bergamo/Italy: page 8 top; Lars Clason,
Stockholm/Sweden: page 12 top right; Steffen Fuchs, Heidel-
berg/Germany: pages 3, 4/5, 8 bottom right, 16 bottom left
and right, and 28/29; Aries R. Hakim, Citeureup/Indonesia:
page 20 bottom; Mark Humphries, San Antonio/USA: pages
14/15; Panot Koonsombat, Bangkok/Thailand: pages 18/19;
Petko Momchilov, Varna/Bulgaria: pages 10/11; Matthias Mller,
Ilvesheim/Germany: inside cover; Antonius Oey, Tarjun/Indo-
nesia: page 26; Metheekorn Ruenpaktaya, Phetchaburi/Thailand:
page 31 top right; Redzheb Shabanov, Varna/Bulgaria: page 12
bottom; Jyrki Sivenius, Stockholm/Sweden: page 27.

Unless otherwise indicated, all figures refer to the financial year of 2016.
Errors and printing errors reserved.
0617/7T/SD/abc/Rev.0