Cementir Holding N.v. · MIL:CEM
Cementir — Non-Deal Roadshow (June 2004)
24 slides from Cementir's roadshow presentation, June 2004
Slide 1: Roadshow Milano June 2004
CMemMlir Cementerie del Tirreno S.p.A. GRUPPO June 2004 @> CALTAGIRONE Roadshow Milano
Slide 2: Table of Contents
TABLE OF CONTENTS • Worldwide overview • Western Europe overview • Italian industry overview • Company overview • Financials • Outlook • Strategy • Appendix 2
Slide 3: Worldwide overview
Worldwide overview Turkey and Italy are the 7th and 8th worldwide markets WORLD MAJOR CEMENT PRODUCERS (capacity (capacity in M.Tons, M.Tons, 2002) LEADING CEMENT EXPORTING COUNTRIES (M.Tons (M.Tons,, 2002) * 660 17.23 // // 10.4 9 8.3 13 5 6.3 112 6 5.5 92.6 77.3 3.9 3.7 70 64.9 3.4 55 53 3 46.4 43
Slide 4: Western Europe overview
Western Europe overview CEMENT CONSUMPTION BREAKDOWN IN WESTERN EUROPE* CEMENT CONSUMPTION BREAKDOWN 2003 ** CEMENT CONSUMPTION BREAKDOWN OUTLOOK 2004 ** SPAIN PORTUGAL SPAIN PORTUGAL ITALY ITALY 20.1% 20.2% 4.3% 4.2% 18.8% 19.1% U.K. U.K. 5.5% 5.6% FRANCE FRANCE 8.9% 9.1% OTHERS OTHERS GERM ANY 16.
Slide 5: Italian industry overview: market share breakdown by region
Italian industry overview: market share breakdown by region Cementir market share is 8.1% on a national basis and 20% share in the South LAFARGE, 2.8% OTHERS, 9.4% GRUPPO SACCI, 3.2% ITALCEMENTI S.p.A., 30.3% HOLCIM, 6.5% CEMENTI ZILLO S.p.A., 2.7% CEMENTI ROSSI S.p.A., 6.1% GRUPPO BUZZI UNICEM S.p.
Slide 6: Company overview: Group structure
Company overview: Group structure ¾ Being present both in Italy and Turkey, Cementir is the 2nd exporting company in the Mediterranean basin ¾ Cementir operates in the cement business with a total nominal capacity of 7.000.000 tons and in the concrete business with a total capacity of 2.550.000 cubi
Slide 7: Company Overview: brief history
Company Overview: brief history In 1992 Cementir was acquired by the Caltagirone Group from I.R.I. Francesco Caltagirone Restructuring process and ongoing commitment to reach cost efficiencies. In 2001, Cementir was listed on the STAR segment starts managing the of the Italian Stock Exchange. Compan
Slide 8: Company overview: Italy
Company overview: Italy Cementir is the 4th largest cement producer in Italy CEMENT PLANTS KILNS CEMENT MILLS NOMINAL CAPACITY Cement Plants Arquata Scrivia (North of Italy) 2* 4 800.000 tons Concrete Plants Head office Spoleto (Central Italy) 2 3 650.000 tons Distribution Centers Maddaloni (South o
Slide 9: Company overview: Turkey
Company overview: Turkey Cimentas is the 7th largest cement producer in Turkey CEMENT PLANTS KILNS CEMENT MILLS NOMINAL CAPACITY Izmir (West of Turkey) 2 4 2.100.000 tons Kars (East of Turkey) 1 2 600.000 tons TOTAL 3 6 2.700.000 tons CONCRETE PLANTS N° OF PLANTS PRODUCTION CAPACITY Cement Plants Ae
Slide 10: Company overview: sales breakdown
Company overview: sales breakdown BY GEOGRAPHIC AREA TOTAL SALES ITALIAN SALES 4% 24% North Italy TURKEY 27% ITALY Center Italy 64% South Italy * 52% EXPORT 20% 9% Islands SALES BY DESTINATION ITALY TURKEY CONSTRUCTION OTHERS 9% EX PORT REA DY - M IX 3% 6% 22% W HOLESA LERS 34% PRE-M IX 2% EX PORT 4
Slide 11: Company overview: sales and profitability growth
Company overview: sales and profitability growth 3 50 (Eur m) CAGR 15.2% SALES 3 00 2 50 87 90 2 00 150 Ciment as ( Tur key) 225 Cement ir ( It aly) 100 196 202 176 125 149 50 108 116 0 1996 1997 1998 1999 2000 2001 2002 2003 10 0 42 .0 % EBITDA 90 (Eur m) 36 .0 % 80 10 15 70 30 .0 % Ciment as 60 (T
Slide 12: Company overview: operating costs
Company overview: operating costs Commitment to reach cost efficiencies Operating cost split (2003) Labour 15% Ener gy 31% Strong productivity growth over the last 10 years despite some headwind from recent energy and raw material cost increase Ser vic es 24% Raw Mat er ials 30% Personnel Costs / Sa
Slide 13: Financials: Full Year 2003 and 2002
Financials: Full Year 2003 and 2002 (EUR/000) 2003 2002 YoY Revenues 292,603 283,029 3.4% Italian operations posted sales of € 202 m, up by € 6.3 m; Cimentas (Turkey) posted sales of € 90.6 m, up by € 3.3 m. Net Sales include € 29.6 million from ready mix concrete business (€ 25.6 m in 2002). Operat
Slide 14: Financials: Q1 2004 and 2003
Financials: Q1 2004 and 2003 (EUR/000) Q1 2004 Q1 2003 YoY Italian operations posted sales of € 45.4m, up by 2.7%; Cimentas (Turkey) posted Revenues 71,357 62,745 13.7% sales of € 26m, up by 40%. Net Sales include € 9.2 million from ready mix concrete business (€ 5.5m in Q1 2003). Operating costs (4
Slide 15: Financials: strong cash flow
Financials: strong cash flow Free cash flow generation is expected to grow strongly over the next few years thanks to: to: ¾ lower corporate tax rate ¾ stable results from Italy ¾ strong profit growth from Turkey € 70.7 m € 22.2 m € 3.2 m € (20) m € 6.8 m € (1) m € (3) m € 118.7 m € (15.4) m € 112.7
Slide 16: Financials: market multiples
Financials: market multiples Adjusted firm value is only 2.9x historical Ebitda € 417 m* € 192 m €(118,7 m) € 256 m Adjusted EV =1.3x Tangible Assets €(61,3 m) Tangible Assets € 87,8 m Market Cap Adjusted EV Adjusted EV =2.9x Net Cash Peripheral Assets Ebitda 2003 • 4.3% stake in Caltagirone Editore
Slide 17: Outlook: Italy
Outlook: Italy ¾ The return of public spending, as envisaged by the Government, should boost cement consumption, especially in Southern Italy ¾ The European Union has included 4 Italian projects in the list of priority infrastructure investment (Torino-Lione and Genova Milano-Gottardo railways, harb
Slide 18: Outlook: Turkey
Outlook: Turkey Favourable economic growth prospects ¾ EBITDA in Turkey is expected to grow by 40% at constant exchange rates ¾ Favourable demographics: 40% of population is less than 25 years old, current population is 70 million, expected to rise to 100 million in 2020 ¾ Huge backlog of infrastruc
Slide 19: Outlook: Italian and Turkish real GDP growth rates
Outlook: Italian and Turkish real GDP growth rates Turkey offers a much stronger demand growth outlook than Italy Percentage growth 10 9.5 9.3 8 7.8 7.5 7.4 7 7.2 7 7 6 5.5 5 3.9 4 3 2.9 2.9 3.1 3.1 2.5 2.1 2 2.2 2 1.8 1.7 1.8 1.4 0.9 1.1 0.9 0.8 1 0.3 0.4 0.3 -0.9 -2 -5 -4.7 -5.5 Italy Turkey -8 -7
Slide 20: Strategy
Strategy Growth prospects Pursuing growth in attractive new markets in the Mediterranean basin. Constant search for acquisitions in order to double production capacity in the near future. Long-term value creation Price Q/CEMI.MI, Last Trade, Bar EUR 6/30/2004 2.5800 2.7000 2.5650 2.6500 Q/CEMI.MI, C
Slide 21: Appendix
Comentir Cementerie del Tirreno S.p.A. Appendix 21
Slide 22: European Union overview
European Union overview From the 1993 cyclical low of 165 million tons, the market grew to 192 million tons in 2002 Million Tons CEMENT CONSUMPTION AND PRODUCTION DYNAMICS* % Change 210 8 6 195 4 2 180 0 -2 165 -4 -6 150 -8 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Consumption
Slide 23: Caltagirone Group structure
Caltagirone Group structure Caltagirone group is a family-controlled industrial concern operating mainly in Italy The group structure is based on 3 different businesses: Construction & Real Estate, Cement, Media Caltagirone Family 7% 84% 34% 11% CALTAGIRONE S.p.A. 4% Treasury shares Mkt cap: cap: €
Slide 24: For further information: Investor Relations
For further information INVESTOR RELATIONS Beniamino Natola Claudia Del Grosso Ronchitelli CONTACT Alessandra Crisari Tel. +39 06 45412213 Fax +39 06 45412288 invrel@cementir.it www.cementir.it 24