Slide 1: Financial Results – 9 Months 2012
Financial Results – 9 Months 2012 Analysts’ conference call Athens, 12th November, 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: Sales Volume Growth Does Not Translate into Improved Earnings
Sales Volume Growth Does Not Translate into Improved Earnings Second consecutive quarter of top-line growth, after 6 quarters of contraction. In Q3 softer prices in SEE, combined with higher input costs, take a toll on profitability. €100m year-on-year Net Debt reduction . Restructuring prog
Slide 5: Volatility of Earnings, Despite Positive Sales Growth
Volatility of Earnings, Despite Positive Sales Growth In Million Euro, unless otherwise stated 9M 2012 9M 2011 Variance Q3 2012 Q3 2011 Variance Net Sales 847.0 838.9 1.0% 299.2 282.0 6.1% EBITDA 162.5 221.3 -26.6% 50.4 78.8 -36.1% (1) Adjusted EBITDA 147.7 188.1 -21.4% 51.7 65.4 -21.0% Profit Befor
Slide 6: Cement Sales Growth Continues Driven by US & Exports
Cement Sales Growth Continues Driven by US & Exports 9 Months 3rd Quarter 14.0 5.0 2011A 2011A 12.0 11.6 2012A 4.2 12.0 4.0 2012A 4.0 10.0 8.2 7.9 2.9 8.0 +4%(3) 3.0 2.8 +6%(3) 6.0 -4%(3) 2.0 -3%(3) 4.0 2.72 2.52 0.90 0.86 2.0 -7%(3) 1.0 -5%(3) 0.0 Cement (1) (2) Aggregates Ready-mix 0.0 (1) (2) (tn
Slide 7: Softer Market Conditions in SEE and Higher Input Costs Impact Q3 EBITDA
Softer Market Conditions in SEE and Higher Input Costs Impact Q3 EBITDA Turnover Reconciliation EBITDA Reconciliation (€ in millions) (€ in millions) 1,000 1.0% 250 3.4 -62.1 -26.6% 221.3 950 838.9 35.0 -26.9 200 900 847.0 1.5% 162.5 9 Months 850 800 4.2% -3.2% 150 -28.1% 750 700 100 650 600 50 26.4
Slide 8: Realized Restructuring-Plan Savings Surpass 2012 Target
Realized Restructuring-Plan Savings Surpass 2012 Target 18,0 6,6 6,3 5,6 Q1 Q2 Q3 Q4 2012 Target Cumulative Cash Flow Impact 2012 Recurring EBITDA Savings -18 +3 +29 6.6 6.3 5.6 18.5 8
Slide 9: NPAT after Minorities Impacted by Weak EBITDA and FX Gains
NPAT after Minorities Impacted by Weak EBITDA and FX Gains (€ in millions) Evolution of Group Net Profit After Taxes and Minorities (€ in millions) 60 53.9 (58.8) 50 40 30 20 10 23.5 2.0 0 (4.8) (7.6) -10 (5.8) -20 (2.2) 3.7 -30 -40 NPAT EBITDA Depn. Interest Taxes Other Minority FX Gains/ NPAT 2011
Slide 10: Free Cash Flow Augmented by Divestitures Results in €40m Net Debt Reduction
Free Cash Flow from Operations is Augmented by Divestitures and Results in €40m Net Debt Reduction Sources and Uses of Cash (€ in millions) Operating Free Cash Flow 180 163 (9) 160 (34) 140 (60) 59 (86) 120 100 80 60 40 7 40 20 €60m 0 EBITDA 9M Non-Cash CapEx Operating Disposals Interest, Tax, Net F
Slide 11: Net Debt Reduction of 0.5 B€ in less than 4 Years
Net Debt Reduction of 0.5 B€ in less than 4 Years Group Net Debt (€ in millions) 1.200 1154 1029 1028 971 988 1.000 917 873 777 777 788 800 768 745 Net debt 708 667 640 600 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 2012 (1) calculation according to covenants definition in the syndi
Slide 12: Agenda
Agenda Group Financial Results Market Overviews Outlook 12
Slide 13: Turnaround in US Amidst Continuing Uncertainties
Turnaround in US Amidst Continuing Uncertainties 9M 2012 Turnover (€m) 9M 2012 EBITDA (€m) 29% 15% 21% 180.6 -14% 20% 33.2 GREECE 38% GREECE 42% -22% 25% 210.3 19% 42.7 27% -11 32% 273.0 2% -11 3.4 USA 25% 19% USA 27% 229.4 -3.2 -1% 14% 21%9% 174.8 SEE 34% 54.5 -26% -5% SEE 22% 183.4 33% 73% 73.6 30
Slide 14: Profitability in Greece Supported by Increased Exports & Restructuring
Profitability in Greece Supported by Increased Exports & Restructuring Construction activity in depression amidst sovereign debt crisis. Worsening liquidity conditions lead to customers and suppliers bankruptcies. Domestic sales volumes continue free-fall across all products. Strong rebound
Slide 15: Sustained Growth in Construction Activity Raises Expectations for Margin Recovery in the USA
Sustained Growth in Construction Activity Raises Expectations for Margin Recovery in the USA Fatal accident in the Pennsuco, FL plant in August. USA cement consumption increased by 9.8% September YTD. New housing grows at 22.4 % August YTD. Multi-family residential units put in place increase
Slide 16: Euro-zone Contagion Leads to Softer Demand and Lower Prices in SEE
Euro-zone Contagion Leads to Softer Demand for Construction Materials and Lower Prices in SEE Demand for Construction materials slowing down, affected by reduced public spending and fears of contagion. Decline in cement sales volumes is fully offset by increased exports. Price gains which mate
Slide 17: Solid Performance in EMED on a like-for-like basis
Solid Performance in EMED on a like-for-like basis Political uncertainties construe a challenging business environment in Egypt. Cement demand in Egypt continues to grow, albeit at a slower pace of +7% YTD. Following 2 quarters of upward momentum, prices level off in Q3. Egypt costs severely
Slide 18: Agenda
Agenda Group Financial Results Market Overviews Outlook 18
Slide 19: 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