Slide 1: Financial Results – First Quarter 2011
Financial Results – First Quarter 2011 Conference call Athens, May 5, 2011
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 Greek Recession and Strong Euro Weigh on Seasonally Weak First Quarter Results
Severe Greek Recession and Strong Euro Weigh on Seasonally Weak First Quarter Results In Million Euro, unless otherwise stated Q1 2011 Q1 2010 Variance Net Sales 252.9 286.1 -11.6% EBITDA 47.8 61.2 -21.9% EBITDA excluding exceptional items & FX 49.3 51.2 -3.7% Unrealized FX Gains/Losses -13.7 0.8 Pr
Slide 5: Unexpectedly Sharp Decline in Greek Volumes Outweighs Growth in Remaining Regions
Unexpectedly Sharp Decline in Greek Volumes Outweighs Growth in Remaining Geographical Regions Q1 2011 Decline in domestic Greek volumes 4.0 accelerates sharply. 3.7 3.6 3.4 2010A Cement exports to North Africa 2011A 3.0 2.7 come to a standstill. -9%(3) -25%(3) Cement volumes grow in US, 2.0 S
Slide 6: Sales and EBITDA Growth in Emerging Markets Fails to Offset Decline in Greece
Sales and EBITDA Growth in Emerging Markets Fails to Offset Decline in Greece Q1 2011 Turnover (€ in millions) Strong Euro has negative FX -11.6% translation impact on Turnover 286.1 (4.1) (29.1) 300 252.9 and EBITDA. -1.4% -10.2% 200 €36.1m decline in Greece sales 100 drags group turnover down.
Slide 7: NPAT after Minorities Impacted by Weak EBITDA and Strong Euro
NPAT after Minorities Impacted by Weak EBITDA and Strong Euro Group Net Profit After Taxes and Minorities (€ in millions) 30 24,8 (4.0) 25 (9.3) 20 1,7 (1.2) 0,8 (0.4) 15 (0.4) (16.3) 10 5 (4.3) 0 -5 -10 NPAT EBITDA EBITDA Depn. Interest Taxes Other Minority FX Diff NPAT 2010 One-offs Finance Intere
Slide 8: Strengthening of the € Impacts Profitability
Strengthening of the € Impacts Profitability FX Impact in Million € FX Gains/Losses Q1 Local Loan Country Q1 2010 Q1 2011 Currency Currency P&L EBITDA -2 Egypt EGP EUR - -8.9 FX Gains/Losses -16 Albania ALL EUR -0.5 -2.0 31st March 2011 Other +2.7 -3.2 Net Equity -69 Total Variance -16.3 BS Net Debt
Slide 9: Continued Generation of Positive Operating Free Cash Flow
Continued Generation of Positive Operating Free Cash Flow Sources and Uses of Cash (€ in millions) Operating Free Cash Flow 60 48 (15) 50 40 (30) 30 20 4 10 (16) 9 0 0 -10 -20 EBITDA CapEx Operating Acquisitions/ Interest, Tax, Net FX Impact Change in Q1 2011 Working Disposals Dividends & Net Debt C
Slide 10: Net Debt Remains Stable in Spite of Sharp Drop in Profitability in Q1 2011
Net Debt Remains Stable in Spite of Sharp Drop in Profitability in Q1 2011 Group Net Debt (€ in millions) 1,300 1154 1114 1,100 1028 1029 971 988 917 873 900 Net debt 777 777 700 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2009 2010 2011 10
Slide 11: Agenda
Agenda Group Financial Results Market Overviews Outlook 11
Slide 12: €47.8m Group EBITDA driven by growth in SE Europe and East Med
€47.8m Group EBITDA driven by growth in SE Europe and East Med Q1 2011 Turnover (€m) Q1 2011 EBITDA (€m) 29% 72,6 -33% 8 3,6 -84% GREECE GREECE 38% 108,7 36% 22,0 27% 69,4 -5,4 -11 USA -2% USA +17% 25% 71,0 - 11 -6,5 14% 35,1 30% SE 14,6 Europe +39% SE Europe +21% 9% 25,3 20% 12,1 30% 75,8 73% East
Slide 13: Sharp Decline in Profitability in Greece
Sharp Decline in Profitability in Greece Greece Q1 2011 Turnover Decline in domestic cement (€ in millions) -33.2% consumption accelerates sharply, 120 108.7 (36.1) as housing activity plummets and 100 public spending is curtailed. 80 72.6 60 -33.2% Export volumes halved mainly due 40 to the Lib
Slide 14: No Solid Signs of Recovery in the USA
No Solid Signs of Recovery in the USA USA Q1 2011 Turnover US sales in all products inch-up (€ in millions) -2.2% from a low base, in part as a result 80 71.0 0.7 (2.3) 69.4 of targeted growth initiatives. 1.0% 60 -3.2% Prices appear to stabilize at low 40 levels. 20 Price increase initiatives
Slide 15: Sales Volume Growth in SE Europe but Prices Under Pressure
Sales Volume Growth in SE Europe but Prices Under Pressure SE Europe Q1 2011 Turnover (€ in millions) 38.9% Increase in Cement sales volumes across all countries in SE Europe. 40 35.1 10.1 30 25.3 (0.3) 20 -1.2% 40.1% Growth in RMC sales. 10 0 Turnover Translation Organic Turnover Selling pric
Slide 16: Strong EBITDA performance in the East Med Region
Strong EBITDA performance in the East Med Region East Med Q1 2011 Turnover (€ in millions) In Egypt cement sales volume and -6.6% price (in local currency) remain 100 (4.6) flat. 81.1 (0.7) 80 75.8 -5.6% 60 -1.0% In Turkey domestic cement sales 40 volume and prices continue to grow. 20 0 Newly
Slide 17: Agenda
Agenda Market Overviews Group Financial Results Outlook 17
Slide 18: Outlook 2011
Outlook 2011 • Greece: Market decline to continue accelerate • US: Stability with upside risk • South Eastern Europe: Economic recovery not yet translating into better markets • Eastern Med: Growth in Turkey, uncertainty in Egypt • Pressure on margins from increasing energy costs • Pricing power dif