Slide 1: Financial Results – First Half 2011
Financial Results – First Half 2011 Analysts’ conference call Athens, August 2, 2011 2/8/2011 4:15 μμ
Slide 2: Disclaimer
Disclaimer •This document contains forward-looking statements relating to the Group’s future business, development and economic performance. It also includes statements from sources that have not been independently verified by the Company. •Such statements may be subject to a number of risks, uncert
Slide 3: Agenda
Agenda Group Financial Results Market Overviews Outlook 3
Slide 4: Severe Recession in the Greek Market and Strong Euro Take a Toll on First Half 2011 Results
Severe Recession in the Greek Market and Strong Euro Take a Toll on First Half 2011 Results 4
Slide 5: Sales Volume Growth in most of our Markets not Sufficient to Offset Steep Drop
Sales Volume Growth in most of our Markets not Sufficient to Offset Steep Drop in Greece and Export Markets 1st Half Sales Volume 2nd Quarter Sales Volume 10.0 6.0 8.7 9.0 2010A 5.0 2010A 5.0 8.0 7.6 2011A 2011A 7.0 4.2 7.0 4.0 3.4 6.0 5.4 5.0 -13%(3) 3.0 -16%(3) 2.7 4.0 -24%(3) 2.0 3.0 -22%(3) 1.97
Slide 6: Strong Euro Exacerbates 1st Half Results Affected by Weakness in Greece
Strong Euro Exacerbates 1st Half Results Affected by Weakness in Greece Turnover Reconciliation EBITDA Reconciliation 1st Half Turnover Reconciliation EBITDA Reconciliation 2nd Quarter 21.4% 18.9% Excluding exceptional items and FX impact, decline in EBITDA driven by the Greece region and to a lesse
Slide 7: NPAT after Minorities Impacted by Strong Euro and Drop in EBITDA
NPAT after Minorities Impacted by Strong Euro and Drop in EBITDA (€ in millions) 1H 2011 Group Net Profit After Taxes and Minorities (Reconciliation vs. 1H 2010) 7
Slide 8: Strengthening of the Euro Leads to a Substantial Drop in Net Operating Profits
Strengthening of the Euro Leads to a Substantial Drop in Net Operating Profits FX Gains/Losses Local Loan Country H1 2011 Currency Currency FX Impact in Million € Egypt EGP EUR -11.8 Q1 Q2 H1 P&L Turkey TRY EUR, USD -3.4 EBITDA -2 -7 -9 Albania ALL EUR -2.8 FX Gains/Losses -14 -6 -20 Other -2.3 31st
Slide 9: Group Generates €71m in Operating Free Cash Flow in 1H 2011
Group Generates €71m in Operating Free Cash Flow in 1H 2011 Sources and Uses of Cash (€ in millions) Operating Free Cash Flow €71m €71m Operating Free Cash Flow covers €55m of finance/tax/dividends related payments and reduces Net Debt by €32m Note: Non-cash items includes Egypt clay fee return 9
Slide 10: Deleveraging Continues with €32m Net Debt Reduction
Deleveraging Continues with €32m Net Debt Reduction Group Net Debt Net Debt/EBITDA (1) = 2.56 2008 2009 2010 2011 (1) According to covenant definition in the syndicated loan of €800m 10
Slide 11: Agenda
Agenda Group Financial Results Market Overviews Outlook 11
Slide 12: Greece EBITDA Contribution Declines Below 20%
Greece EBITDA Contribution Declines Below 20% 1st Half 2011 Turnover (€m) 1st Half 2011 EBITDA (€m) 29% 15% 38% 42% 27% -11 25% -11 14% 30% 9% 20% 30% 73% 28% 55%
Slide 13: Recession and Collapse of Exports to North Africa Drive Revenue and Profit Decline in the Greece Region
Recession and Collapse of Exports to North Africa Drive Revenue and Profit Decline in the Greece Region Greek recession leads building activity to a tailspin in the first half of 2011. Dramatic decline in sales volumes across all products and market segments. Export volume almost at 1/3 of las
Slide 14: Stability at Low Activity Levels in the US Region
Stability at Low Activity Levels in the US Region Economic recovery slow and fragile while the housing market remains weak. Sales volume growth across all products as a result of targeted activities. Selling prices stabilize at the low levels of year-end 2010 for all products. ST profitable
Slide 15: SE Europe Shows Early Signs of Renewed Growth
SE Europe Shows Early Signs of Renewed Growth Modest macroeconomic improvement in the region leads to early signs of growing demand in construction materials. Cement sales growth momentum in the region driven by substantial improvement in sales in FYROM and Albania. Completion of new alternati
Slide 16: EMED Region Delivers Strong Performance amidst Weakening Market Fundamentals in Egypt
EMED Region Delivers Strong Performance amidst Weakening Market Fundamentals in Egypt Social unrest in Egypt starts to affect the real economy and the construction industry. In Egypt sales shrink by 5% in 1H, affected by 10 days of inability to ship ex Beni-Suef in June. Small price erosion in Q
Slide 17: Agenda
Agenda Group Financial Results Market Overviews Outlook 17
Slide 18: Outlook 2011
Outlook 2011 • Greece: Downward trend will not be reversed during 2011 • US: Stability at very low levels • South Eastern Europe: Upside opportunity more visible • Eastern Med: Growth in Turkey, short-term slowdown in Egypt • Energy costs stabilizing (?) • Pricing power differs by region • Focus rem