Slide 1: First half 2016 results and recent Group acquisitions
First half 2016 results and recent Group acquisitions Rome, July 29th 2016
Slide 2: Contents
Contents 2 2016 FIRST HALF RESULTS SACCI ACQUISITION BELGIUM ASSETS ACQUISITION
Slide 3: 2016 First Half Results
2016 FIRST HALF RESULTS Cc cementirholding
Slide 4: Executive summary - H1 2016
Executive summary - H1 2016 4 • Strong performance of operations in Scandinavian countries, Malaysia and Egypt and positive – albeit reduced – contribution of Turkey and China, which offset the difficulties faced in Italy • Significant negative effect of exchange rates on Ebitda (EUR 5.6 million) •
Slide 5: Highlights - Consolidated Income Statement
Highlights - Consolidated Income Statement 5 P&L (EUR million) H1 2016 H1 2015 Chg % Q2 2016 Q2 2015 Chg % REVENUE FROM SALES AND SERVICES 481,0 475,7 1,1% 270,6 271,0 (0,2%) Change in inventories (3,2) (0,6) 458,8% (8,2) (13,3) (38,4%) Other revenue 7,5 7,1 5,7% 4,1 3,3 24,7% TOTAL OPERATING REVENU
Slide 6: Highlights - Volumes
Highlights - Volumes 6 Grey and white cement ( t) Ready-mix concrete (m3) Aggregates (t) 4.749 4.532 4.8% 2.140 H1 H1 20.0% H1 1.843 -8.0% 1.783 1.695 2.1% 2.735 2.680 25.3% 1.229 1.053 Q2 Q2 981 Q2 -5.3% 997 8.7% 13.5% -11.7% Q1 1.852 2.014 Q1 911 Q1 802 791 698 H1 2015 H1 2016 H1 2015 H1 2016 H1 2
Slide 7: Revenue and Ebitda by Region / Country
Revenue and Ebitda by Region / Country* 7 Revenue from sales and services YoY Change (%) 5% 2% 0% -12% 7% -9% 1% 45,3 -23,8 26,0 38,5 116,9 117,3 481,0 160,9 EUR million Total Denmark Other Turkey Egypt Asia Pacific Italy Eliminations H1 2016 Nordic & Baltic and US Eastern Mediterranean Ebitda YoY C
Slide 8: Cash flow generation and debt
Cash flow generation and debt financial debt 8 • Net financial debt increased to EUR 262.9 million due to movements in working capital, annual plant maintenance – performed in the early months of the year – and dividend distribution, paid out in May • In the second quarter net financial debt improve
Slide 9: Net financial debt and key financial ratios
Net financial debt and key financial ratios 9 • Net debt is expected to be reduced to around EUR 180 million at the year-end 2016, not including perimeter expansion Net financial debt Key financial ratios EUR million ~ *H1 2015 Net financial debt / EBITDA is based on the last 12 months Ebitda
Slide 10: Group Balance sheet reclassified
Group Balance sheet reclassified 10 EUR/million CAPITAL EMPLOYED 30/06/2016 31/12/2015 NON CURRENT ASSETS & LIABILITIES Tangible, intangible and financial assets 1.252,8 1.290,4 Deferred taxes assets/ liabilities 0,6 (8,7) Other non current assets/ liabilities (33,4) (35,8) TOTAL NON CURRENT ASSETS
Slide 11: The Enlarged Group after acquisitions
The Enlarged Group after acquisitions 11 Volumes sold 2015 2017 Cement (Mt) 9,4 12,5 Ready-mixed concrete (mm3) 3,7 4,5 Aggregates (Mt) 3,8 8,6 2015 2017 Operating Revenue (€ million) 995 1.250 Mature markets 57% 65% - Italy 9,8% 12,4% - Belgium - 14,4% Emerging markets 43% 35%
Slide 12: Sacci Acquisition
SACCI ACQUISITION Cc cementirholding
Slide 13: Sacci: Summary transaction overview
Sacci 13 Summary transaction overview • Closing completed on 29 July 2016 Key Terms • Total transaction value: • EUR 125 million, financed through bridge financing with the related party company ICAL 2 Spa (all-in interest rate of 1.50% per annum) • Price paid in two tranches: • EUR 122.5 milllion -
Slide 14: Sacci: the fifth largest Italian cement player
Sacci: the fifth largest Italian cement player 14 Focus on Sacci’s operations A solid rationale • Fifth largest player - market share of approx. 6%) • Enhances Cementir’s positioning in Italy • Vertical integrated in ready-mixed concrete • Complementary geographies (North and Central Italy) with hig
Slide 15: Acquisition of Belgian Assets
15 ACQUISITION OF BELGIAN ASSETS
Slide 16: Belgian assets Overview
Belgian assets Overview 16 Acquisition rationale • Unique strategic opportunity to: – diversify the Group geographical presence in the core of Western Europe, mainly Belgium, with high quality assets and vertical integrated business – further widen product range into aggregates Highlights • Fully in
Slide 17: Belgian assets Overview - Key Terms
Belgian assets Overview 17 • Agreement with Ciments Français, a subsidiary of Italcementi and of Key Terms HeidelbergCement to acquire some of their operations in Belgium, primarily Compagnie des Ciments Belges S.A. (CCB) • Total Enterprise Value: EUR 312 million, on a cash and debt-free basis • Clo
Slide 18: Acquisition Financing
Acquisition Financing 18 • The Acquisition Financing scheme made available by three Mandated Lead Arrangers Banks to Cementir Holding Group is Amount Type Maturity Use 18 months 330 M€ Bridge Financing + Extension option 6 to fund acquisition of CCB, to months refinance Sacci Bridge Financing and ot
Slide 19: Expected Financial Leverage of the Enlarged Group
Expected Financial Leverage* of the Enlarged Group 19 2016 2016 2017 2018 Current perimeter Pro-forma Leverage Leverage Leverage Leverage expected year-end after acquisition** expected year-end expected year-end expected year-end 0.9x 2.9x 2.2x 1.6x * Year-end NFP / Ebitda ** Pro-forma on a full-yea
Slide 20: Legal disclaimer
Legal disclaimer 20 This presentation has been prepared by and is the sole responsibility of Cementir Holding S.p.A. (the “Company”) for the sole purpose described herein. In no case may it or any other statement (oral or otherwise) made at any time in connection herewith be interpreted as an offer