Slide 1: Financial Results – First Half 2012
Financial Results – First Half 2012 Analysts’ conference call Athens, 29th August, 2012
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: Performance Improves in Q2 2012 Following a Beset-by-Weather Q1
Performance Improves in Q2 2012 Following a Beset- by-Weather Q1 6% top-line growth in the second quarter after 6 quarters of contraction. Net Debt reduced to €640m. Positive ForEx impact on Finance Expense supports Net Profit. Restructuring programme delivers €18m in recurring annual saving
Slide 5: Solid Performance in the 1st Half of 2012
Solid Performance in the 1st Half of 2012 In Million Euro, unless otherwise stated H1 2012 H1 2011 Variance Q2 2012 Q2 2011 Variance Net Sales 547.9 557.0 -1.6% 322.5 304.1 6.1% EBITDA 112.1 142.5 -21.3% 77.7 94.0 -17.4% FX Gains/Losses 11.4 -20.3 14.3 -6.2 Profit Before Taxes 29.5 37.7 47.1 43.4 Ne
Slide 6: Cement Sales Growth Driven by US & Exports from Greece
Cement Sales Growth Driven by US & Exports from Greece 6 Months 2nd Quarter 10.0 5.0 4.6 2011A 2011A 4.2 7.8 8.0 7.6 2012A 4.0 2012A 6.0 5.4 3.0 2.7 2.7 5.1 +3%(3) +10%(3) 4.0 -5%(3) 2.0 1.82 0.98 0.89 2.0 1.66 1.0 -8%(3) -10%(3) 0.0 0.0 (1) (2) (1) (2) Cement Aggregates Ready-mix Cement Aggregates
Slide 7: Revenue and EBITDA Growth in Q2, on a Comparable Basis
Revenue and EBITDA Growth in Q2, on a Comparable Basis Turnover Reconciliation EBITDA Reconciliation (€ in millions) (€ in millions) 650 -1.6% 160 2.0 -32.3 -21.3% 600 18.5 -27.6 142.5 557.0 140 547.9 550 120 1.4% 112.1 6 months 3.3% -5.0% 100 500 -22.8% 80 450 60 400 40 350 EBITDA Margin 20 25.6% 2
Slide 8: Materialized Savings in the 1st Half 2012 exceed expectations
Materialized Savings in the 1st Half 2012 exceed expectations 18,0 6,6 6,3 Q1 Q2 Q3 Q4 2012 Target Cumulative Cash Flow Impact 2012 Recurring EBITDA Savings -18 +3 +29 6.6 6.3 18.0 8
Slide 9: NPAT after Minorities Augmented by FX Gains
NPAT after Minorities Augmented by FX Gains (€ in millions) Group Net Profit After Taxes and Minorities (€ in millions) 30 24.1 (30.3) 25 20 15 31.7 8.3 10 5 0 (2.6) (5.0) -5 (8.8) -10 -15 (1.9) 1.2 -20 -25 NPAT EBITDA Depn. Interest Taxes Other Minority FX Gains/ NPAT 2011 Variance Interest Losses
Slide 10: Substantial Finance Costs Benefit from Moderate FX Gains in 2012
Substantial Finance Costs Benefit Stemming from Moderate FX Gains in 2012 Against Significant FX Losses in 2011 (€ in millions) 2012 2011 Var Net Finance Costs - H1 (20.5) (45.5) 25.0 Explanation of variance: Interest Income 1.4 1.9 (0.5) Interest Expense (29.7) (25.2) (4.5) Realized FX Gains/(Losse
Slide 11: Disposals Results in €68m Net Debt Reduction
Strong Free Cash Flow from Operations Augmented by Disposals Results in €68m Net Debt Reduction Sources and Uses of Cash (€ in millions) Operating Free Cash Flow 140 62 (47) 120 112 (4) (18) 100 (35) 80 (2) 68 60 40 €55m 20 0 EBITDA 6M Non-Cash CapEx Operating Disposals Interest, Tax, Net FX Impact
Slide 12: Net Debt Reduction Exceeding 0.5 B€ in less than 4 Years
Net Debt Reduction Exceeding 0.5 B€ in less than 4 Years Group Net Debt (€ in millions) Net Debt/EBITDA (1) = 2.83 1,200 1154 1114 1028 1029 988 1,000 971 917 873 777 777 768 788 800 745 Net debt 708 640 600 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2008 2009 2010 2011 2012 (1) calculation accord
Slide 13: Agenda
Agenda Group Financial Results Market Overviews Outlook 13
Slide 14: 6% Top-line Growth in Q2 Driven Mainly by the US
6% Top-line Growth in Q2 Driven Mainly by the US Q2 2012 Turnover (€m) Q2 2012 EBITDA (€m) 29% 23% 72.9 1% 20%15% 15.3 GREECE GREECE -23% 38% 24% 72.4 21% 42% 19.9 27% -11 30% 96.4 7% 5.8 USA 25% 18% USA -11 347% 27% 81.8 1% 1.3 14% 30% 23% 9% 74.2 35% 20% 26.9 SEE 2% SEE -12% 24% 73.0 32% 73% 30.5
Slide 15: Turnaround in US Amidst Continuing Uncertainties
Turnaround in US Amidst Continuing Uncertainties H1 2012 Turnover (€m) H1 2012 EBITDA (€m) 29% 15% 22% 118.9-18% 25% 28.3 38% GREECE 4% 19%42% GREECE 26% 145.0 27.1 27% -11 32% 176.1 4% 4.3 25% 16% USA -11 USA 27% 151.3 -4.1 -3% 14% 30% 19%9% 101.4 28%20% 31.1 SEE -6% SEE -28% 19% 108.1 30% 43.0 30%
Slide 16: In Greece Operating Profitability is Supported by Increased Exports & Restructuring
In Greece Operating Profitability is Supported by Increased Exports & Restructuring Construction activity in depression amidst sovereign debt crisis. Domestic sales volumes continue free-fall across all products. Strong rebound of exports boosts capacity utilization and improves unit fixed cos
Slide 17: Cement consumption in Greece is >75% below its recent peak
Cement consumption in Greece is >75% below its recent peak, at a level last seen before 1965 Greece enters 12.000 Eurozone 11.626 10.486 Cement consumption*, ‘000 tons Greece enters EU 8.000 6.493 ca -75% 4.000 4,100 2.927 <2.700 1.720 0 * Including imports Source: Hellenic Cement Industry Associati
Slide 18: In US Increased Construction Activity Renews Hopes for a Sustainable Turnaround
In US Increased Construction Activity Renews Hopes for a Sustainable Turnaround USA cement consumption increased by 14.7% in the first half. After prolonged and steep decline, multi-family residential and commercial construction are slowly but firmly trending up. Continued double-digit growth
Slide 19: Euro-zone Uncertainty Takes a Toll on SEE Demand for Construction Materials
Euro-zone Uncertainty Takes a Toll on SEE Demand for Construction Materials Demand for Construction materials slowing down affected by reduced public spending and fears of contagion. Cement volumes do not fully recover from weather-hit Q1. Cement prices retain positive momentum into Q2, but co
Slide 20: EMED EBITDA Broadly Stable on a Comparable Basis
EMED EBITDA Broadly Stable on a Comparable Basis Despite political transition, cement demand in Egypt increases by +10%. Near balanced supply-demand, despite new capacity additions. Prices in Egypt recover from H2 2011 decline, but still lag H1 2011. Egypt costs impacted by increase in elect
Slide 21: Agenda
Agenda Group Financial Results Market Overviews Outlook 21
Slide 22: Outlook 2012
Outlook 2012 • Greece: Demand to continue to decline • US: Positively oriented • South Eastern Europe: Held back by EU crisis • Eastern Med: Transition progressing in Egypt • Focus remains on: Free cash flow generation Productivity initiatives Reducing carbon footprint Bolt –on growth initia