Cementir Holding

Following the group's full FY20 results, we have updated our model to incorporate the better than expected results. While FY20 EBIT was in-line with our expectations, the EPS was up by €0.10 because of lower taxes and lower net financial expenses.

For FY21 and FY22, we have left our EBITDA and EBIT estimates unchanged, but have lowered the financial expenses due to decreasing debt, and the lowered corporate tax rate to 26%, resulting in an increase in the EPS by €0.05 and €0.07 for FY21 and FY22, respectively.

Our DCF has been positively impacted by the earnings revision. We have assumed the long-term EBITDA margin to remain in the vicinity of 22% from 2022 onwards because we believe that Cementir Holding, like other cement players, will be impacted by increasing carbon prices and other input costs, which will be offset by its digitalisation and sustainability initiatives. We have also reduced the long-term capex forecast based on the company's guidance.