Cementir Holding N.v. · MIL:CEM
Cementir — Non-Deal Roadshow (2005)
24 slides from Cementir's roadshow presentation, 2005
Slide 1: Going Global
Comenti? Cementerie del Tirreno S.p.A. GOING GLOBAL
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER ¾ This document has been prepared by Cementir Group for information purposes only and it is not intended as an offer or solicitation of an offer to purchase or sell any financial instrument. ¾ Any forward-looking statement on Group performance has not been independently verified and
Slide 3: Going Global: Cementir Group Today
GOING GLOBAL: CEMENTIR GROUP TODAY GEOGRAPHICAL DIVERSIFICATION PROVIDES EARNINGS RESILIENCE AND FASTER GROWTH DENMARK / SCANDINAVIA USA PRODUCTION CAPACITY PRODUCTION CAPACITY WHITE CEMENT: 850,000 tons WHITE CEMENT: 310,000 tons*** GREY CEMENT: 2,100,000 tons RMC SALES: 2,200,000 m3 TURKEY PRODUCT
Slide 4: Going Global: A Transformation from 1996
GOING GLOBAL: A TRANSFORMATION FROM 1996 GEOGRAPHICAL AND PRODUCT DIVERSIFICATION SINCE 1996 1996 SALES BY GEOGRAPHY 2004 PRO-FORMA SALES BY GEOGRAPHY ITALY 27% ITALY 100% EMERGING MARKETS SCANDINAVIA, NORTH AMERICA (TURKEY, EGYPT, MALAYSIA, CHINA) 53% 20% 1996 SALES BY PRODUCT 2004 PRO-FORMA SALES
Slide 5: Shareholders Value Creation
SHAREHOLDERS VALUE CREATION EBITDA EBITDAGROWTH: GROWTH:STRONG STRONGIMPROVEMENT IMPROVEMENTFROM FROM1996 1996 17% 17%SALES SALES CAGR CAGR 33% 33%EBITDA EBITDACAGR CAGR 2004 EBITDA CEMENTIR 2001 Cementir acquired Aalborg EBITDA CIMENTAS Cementir acquired Çimentas A.S. Portland and Unicon** EBITDA A
Slide 6: Shareholders Value Creation: Dividends
SHAREHOLDERS VALUE CREATION IF WE ASSUME STABLE RESULTS THE GOAL IS TO DOUBLE DIVIDENDS IN 5 YEARS DIVIDEND CAGR: 14.9% DIVIDENDS € 22m € 9,5m € 9,5m € 11,1m € 6,3m € 7,9m 2000 2001 2002 2003 2004 2009 STOCK UP > 370% FROM 1996 + 63% AALBORG PORTLAND / UNICON + 63% AALBORG PORTLAND / UNICON DEAL ANN
Slide 7: Shareholders Value Creation: Free Cash Flow and Growth
SHAREHOLDERS VALUE CREATION TARGETS: FREE CASH FLOW MAXIMISATION AND GROWTH INTERNAL INTERNALAND AND EXTERNAL EXTERNAL GROWTH STRATEGY GROWTH STRATEGY € 9-10 m OF EBITDA IMPROVEMENT FROM: IT / LOGISTICS OPTIMIZATION AND CENTRALISATION OF FOCUS PURCHASES (COAL, TARGET FCF: STRONG STRONG SHAREHOLDER F
Slide 8: Aalborg Portland / Unicon Debt Restructuring
SHAREHOLDERS VALUE CREATION AALBORG PORTLAND / UNICON DEBT RESTRUCTURING AALBORG PORTLAND/UNICON: AVG. COST OF DEBT BEFORE CEMENTIR ACQUISITION 7% AVG. COST OF DEBT AFTER CEMENTIR ACQUISITION 4% € 6.4m LOWER INTEREST CHARGE p.a. (~ 4% OF PRO- FORMA EBITDA) •SHORT-TERM LOAN •5 YEAR REVOLVING •COLLATE
Slide 9: Main Geographies
Cement MAIN GEOGRAPHIES
Slide 10: Italy
ITALY 4TH LARGEST CEMENT PRODUCER IN ITALY CEMENT & RMC PLANTS CEMENT PLANTS CAPACITY (TONS) Arquata Scrivia 0.8m Spoleto 0.7m Maddaloni 1.4m Taranto 1.5m TOTAL CEMENT CAPACITY 4.3m RMC PLANTS m3 n. 3 Central/Southern Italy 0.4m ITALIAN CEMENT VOLUMES AND PRICE CHANGE 2004_FY Mln tons % 50 Volum es
Slide 11: Turkey
TURKEY 7TH LARGEST CEMENT PRODUCER IN TURKEY CEMENT & RMC PLANTS CEMENT PLANTS CAPACITY (TONS) KARS Izmir¹ 2.6m Kars 0.6m TOTAL CEMENT CAPACITY 3.2m IZMIR RMC PLANTS m3 n. 15 in the Aegean region (W.Turkey) 1.0m TURKISH CEMENT VOLUMES AND PRICE CHANGE 2004_FY % Mln tons 40,0 40,0% Volum es Prices Yo
Slide 12: Denmark
DENMARK WHITE & GREY CEMENT PRODUCTION CAPACITY ¹ GREY CEMENT VOLUMES AND PRICE CHANGE4 Mln tons % WHITE CAPACITY EXPORT COUNTRIES 1,6 10,0% CEMENT (TONS) Volumes Prices YoY 1,4 5,0% Denmark 0.9m USA, Germany, France, UK 1,2 0,0% Egypt 0.4m Algeria, Syria, Morocco 1,0 Malaysia 0.2m Korea, Thailand,
Slide 13: Global Leadership in White Cement
GLOBAL LEADERSHIP IN WHITE CEMENT GLOBAL WHITE CEMENT MARKET (000 tons) 3,559 1,152 1,108 1,752 523 771 1,333 * 292 LEGENDA: Consumption Global demand for white cement has grown around 5-6% annually in the last 10 years* White cement capacity tends to be inland and less subject to imports Whit
Slide 14: Scandinavia: Ready Mix Concrete
SCANDINAVIA: READY MIX CONCRETE PAN SCANDINAVIAN RMC PLAYER READY MIX PLANTS & PRODUCTION CAPACITY UNICON 2004_FY HIGHLIGHTS RMC PRODUCTION PLANTS Volumes sold / year CAPACITY* NET SALES Denmark 28 0.9 m 3 €206,7m Norway 29 0.7 m.3 Sweden** 8 0.15 m.3 EBITDA *** €24,7m Poland 10 0.5 m.3 TOTAL 75 2.2
Slide 15: Main Challenges for 2005
MAIN CHALLENGES FOR 2005 OPERATING COSTS ARE RISING COMMENTS 2003* 2004* 2005e LABOUR / OTHER LABOUR / 14.1% OTHER LABOUR / 14.1% OTHER 14.1% We estimate that raw materials and charter cost increases will fully SERVICES offset the impact of synergies, at 25.4% least for 2005 and 2006. SERVICES SERVI
Slide 16: Financials
Cement FINANCIALS 16
Slide 17: Financials: 2005 First Quarter Highlights
FINANCIALS: 2005 FIRST QUARTER HIGHLIGHTS * LESS WORKING DAYS AND BAD WEATHER, ESPECIALLY IN DENMARK, EXACERBATED A SEASONALLY WEAK FIRST QUARTER 1° Q 1° Q (Euro 000) ∆% 2005* 2004 NET SALES 171.709 71.357 140,63 ¾Trading at Aalborg was in line with budget RAW MATERIALS (68.122) (32.275) 111,07 GROS
Slide 18: Financials: 2005 First Quarter Highlights
FINANCIALS: 2005 FIRST QUARTER HIGHLIGHTS * BROADER GEOGRAPHICAL REACH ALLOWS CEMENTIR TO OFFSET EACH COUNTRY’S ECONOMIC CYCLE SALES BREAKDOWN BY DIVISION 1° Q 1° Q (Euro 000) ∆% 2005 * 2004 EUROPE 130,0 49,4 163,16 ASIA 28,8 22,0 30,91 NORTHERN / CENTRAL AMERICA 7,3 0 n/a NORTH AFRICA 5,6 0 n/a GRO
Slide 19: Financials: Net Debt
FINANCIALS: NET DEBT DE-LEVERAGE IS A PRIORITY ASSUMING STABLE RESULTS IN THE PERIOD AALBORG PORTLAND GOAL: NET DEBT / EBITDA TO ZERO BY END OF 2009 UNICON DEAL NET DEBT € 451m Net Debt /Ebitda = 2.5x 31-March-2005 NET DEBT € 331m Net Debt / Ebitda ~ 1.84x*** NEW DEBT € 80.6 m € 169 m NON- NON-CORE
Slide 20: Appendix
Cementerie del Tirreno S.p.A. APPENDIX 20
Slide 21: The Caltagirone Group
THE CALTAGIRONE GROUP ¾ The Caltagirone Group is a family-controlled industrial concern with aggregated sales over €1.3 bn (2004) (a) ¾ Group structure is based on three main activities: Construction, Cement and Media ¾ The Group holds Financial Investments in several quoted companies Finanziaria It
Slide 22: Cementir Overview: Group Structure
CEMENTIR OVERVIEW GROUP STRUCTURE Market Caltagirone Group 36% 64% 19% 100% 100% 78.1% 99.9% INTERCEM 97.8% 84.7% AALBORG 100% 100% UNICON 100% YAPITEC CIMBETON 100% UNICON AS SA PORTLAND AALBORG WHITE BETON Sp NORWAY 99.9% ISLANDI hf. POLAND CEMENTIR KARS 100% 99.9% DELTA S.p.A. DESTEK CIMENTO 99.9
Slide 23: Analysts Coverage
ANALYSTS COVERAGE BROKERS RATING ON CEMENTIR WEB SITE ABAX BANK PARINI MARKET PERFORM www.abaxbank.com ACTINVEST CASTELLI ACCUMULATE www.actinvest.com BANCA AKROS LOGOLUSO ACCUMULATE www.bancaakros CABOTO LA SCALIA HOLD www.caboto.it CAZENOVE FERRARI OUTPERFORM www.cazenove.com CENTROSIM PEDRAZZINI
Slide 24: Investor Relations
INVESTOR RELATIONS invrel@cementir.it Tel. +39 06 45412213 Fax +39 06 45412288 24