Cementir Holding N.v. · MIL:CEM
Cementir — Non-Deal Roadshow (December 2005)
27 slides from Cementir's roadshow presentation, December 2005
Slide 1: Growing Stronger
GROWING STRONGER London Roadshow - December 2005
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: Agenda
AGENDA GROUP OVERVIEW: CEMENTIR GROUP TODAY SUCCESSFUL EXPANSION FROM LOCAL TO GLOBAL PLAYER SHAREHOLDERS VALUE CREATION TARGETS FOR 2008 MAIN SUBSIDIARIES • Cementir • Cimentas • Aalborg Portland • Unicon MAIN CHALLENGES FOR 2006 FINANCIALS • 9 months 2005 highlights • Net Financial P
Slide 4: Group Overview: Cementir Group Today
GROUP OVERVIEW: CEMENTIR GROUP TODAY OVER 12M T/Y OF CEMENT CAPACITY AND 3.5M M3 OF RMC SOLD IN 5 CONTINENTS 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 PRODUCTIO
Slide 5: Successful Expansion from Local to Global Player
SUCCESSFUL EXPANSION FROM LOCAL TO GLOBAL PLAYER FROM 1996 CEMENTIR INVESTED € 1 BILLION TO INCREASE DIVERSIFICATION 1996 SALES BY GEOGRAPHY 2006 SALES BY GEOGRAPHY (*) EMERGING MARKETS (TURKEY, EGYPT, MALAYSIA, CHINA) 27% ITALY 100% ITALY SCANDINAVIA, NORTH AMERICA 21% 52% 1996 SALES BY PRODUCT 200
Slide 6: Successful Expansion from Local to Global Player
SUCCESSFUL EXPANSION FROM LOCAL TO GLOBAL PLAYER Employees Group presence (n. of countries) 14 * Cement capacity (T/Y) RMC sold (cubic meters) 3.179 SALES (€ M) 2 EBITDA (€ M) 12 m ** 1.477 1 835 m 615 7m 3.5 m 283 m 4.3 m 186 m 175 m 84.7 m 1.1 m 62.7 m 0.1 m 2000 2002 2005 (expected) •Countries in
Slide 7: Shareholders Value Creation
SHAREHOLDERS VALUE CREATION 36% EBITDA CAGR FROM 1996 VIA ORGANIC AND EXTERNAL GROWTH ENTIRELY FINANCED BY CASH FLOW & DEBT 29/10/04 10/10/05 MAIN CORPORATE EVENTS AND ACQUISITIONS Aalborg and Edirne plant * Unicon Price: € 572m Price: $ 166,5m Cement EBITDA €M 1992 Cementir was acquired by the RMC
Slide 8: Shareholders Value Creation: Dividends
SHAREHOLDERS VALUE CREATION IF WE ASSUME STABLE RESULTS THE GOAL IS TO REACH €19M DIVIDEND BY 2009 DIVIDEND CAGR: +13% DIVIDENDS € 19 m € 9,5m € 9,5m € 11,1m € 6,3m € 7,9m 2000 2001 2002 2003 2004 2009 STOCK UP 300% FROM 1996 AALBORG PORTLAND / UNICON + 54% DEAL ANNOUNCEMENT SHARE PRICE Source: Bloo
Slide 9: 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% € 6.5m LOWER INTEREST CHARGE p.a. (~ 3.6% OF PRO- FORMA EBITDA) •SHORT-TERM LOAN •5 YEAR REVOLVING •COL
Slide 10: Targets for 2008
TARGETS FOR 2008 FINANCIAL TARGETS DESCRIPTION / COMMENTS > 30% Emerging Markets SALES > € 1 billion 50-55% Scandinavia / USA < 20% Italy •Focus on cost efficiencies EBITDA •Increase use of alternative fuels € 250 millions •Strategic repositioning in Scandinavian RMC •Cement exports optimization CAP
Slide 11: Main Subsidiaries
Cement MAIN SUBSIDIARIES 11
Slide 12: Cementir
CEMENTIR 4TH LARGEST CEMENT PRODUCER IN ITALY CEMENT & RMC PLANTS CAPACITY CEMENT PLANTS (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 Mln tons % 50 Volumes Pric
Slide 13: Cimentas
CIMENTAS 4TH LARGEST CEMENT PRODUCER IN TURKEY ACQUISITION OF EDIRNE PLANT OPENS THE ISTANBUL MARKET AND INCREASES CAPACITY BY 25% 2004_FY NET SALES €114,3 m EBITDA €26.4m CAPACITY TURKISH CEMENT VOLUMES AND PRICE CHANGE CEMENT PLANTS (TONS) Mln tons 40,0 Volum es Prices YoY % 40,0% Izmir¹ 2.6m 35,0
Slide 14: Aalborg Portland
AALBORG PORTLAND WHITE & GREY CEMENT PRODUCTION CAPACITY ¹ GREY CEMENT VOLUMES AND PRICE CHANGE 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, Th
Slide 15: Global Leadership in White Cement
GLOBAL LEADERSHIP IN WHITE CEMENT 2004 GLOBAL WHITE CEMENT MARKET (000 tons) 3,665 1,209 1,839 1,153 538 1,399 * 888 LEGENDA: 309 Consumption Global white cement demand has grown around 5-6% annually in the last 10 years* White cement capacity tends to be inland and less subject to imports Whi
Slide 16: Unicon
UNICON PAN SCANDINAVIAN N° 1 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 Poland 10 0.5 m.3 €24.7m TOTAL 75 2.2m 3 * In addition Unicon
Slide 17: Main Challenges for 2006
MAIN CHALLENGES FOR 2006 OPERATING COSTS ARE STILL RISING COMMENTS 2003* 2004* 2005e Raw materials and transport cost LABOUR / increases will fully offset the OTHER impact of synergies for at least LABOUR / 14% LABOUR / another fiscal year. OTHER OTHER 14% 14% SERVICES 25% SERVICES SERVICES 26% TOTA
Slide 18: Financials
Cement FINANCIALS 18
Slide 19: First 9 Months 2005 Highlights
FIRST 9 MONTHS 2005 HIGHLIGHTS * AALBORG P. AND UNICON INTEGRATION IS PROCEEDING SMOOTHLY FINANCIAL HIGHLIGHTS 9m 9m (Euro 000) ∆% ¾Trading at Aalborg is in line with budget 2005* 2004 ¾Unicon results are above budget due to NET SALES 636.724 232.940 173.34 strong trading in Scandinavia RAW MATERIAL
Slide 20: First 9 Months 2005 Highlights: Sales Breakdown
FIRST 9 MONTHS 2005 HIGHLIGHTS * BROADER GEOGRAPHICAL REACH ALLOWS CEMENTIR TO OFFSET EACH COUNTRY’S ECONOMIC CYCLE SALES BREAKDOWN BY DIVISION Jan- Sep Jan- Sep Q3 Q3 (Euro millions) ∆% ∆% 2005 2004 2005 2004 EUROPE 484,9 154,0 214,87 177,0 54,7 223,58 ASIA 105,2 78,9 33,33 39,3 27,3 43,96 NORTH/CE
Slide 21: Net Financial Position
NET FINANCIAL POSITION ASSUMING STABLE RESULTS AND NO FURTHER ACQUISITIONS NET DEBT TENDS TO ZERO BY END OF 2009 31-Dec-2005 Expected NET DEBT~ € 410m (*) Expected Net Debt / Ebitda ~ 2.2x 31-Dec-2005 NEW DEBT (**) € 140m CEMENTIR € 43 m ~ € 400 m CIMENTAS CUMULATIVE € 56 m FREE CASH FLOW NET DEBT C
Slide 22: Conclusion
CONCLUSION TARGETS: FREE CASH FLOW MAXIMISATION AND GROWTH INTERNAL AND EXTERNAL GROWTH STRATEGY FOCUS ON IT / LOGISTICS OPTIMIZATION AND CENTRALISATION OF PURCHASES (COAL, FUEL, ADDITIVES & TARGET FCF: STRONG CASHFLOW FOCUS ON COST SPARE PARTS) ~ €100m PER ANNUM GENERATION SHAREHOLDERS EFFICIENCIES
Slide 23: Appendix
Cementerie del Tirreno S.p.A. APPENDIX 23
Slide 24: Cementir Group Structure
omonmis CEMENTIR GROUP STRUCTURE Cementere det Tirreno SpA. 99.99% 0% af, 01% v y 99.99% 99,859 [ 99% u Vv \ Sim, ieciobint 156 Incercem S.A. 77.98% 7em2004 S ‘ementir Delta 8, iecobiniS. — _4] Alfacem Srl. = ae arerry ee a> . T 01% =; Zz Y 10% Sone ee ¥ Globocem SL. Speedybeton SpA Cian 100% V icon
Slide 25: 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 26: Analysts Coverage
ANALYSTS COVERAGE BROKER / ANALYST RATING ON CEMENTIR WEB SITE CHEUVREUX CRISTOFORI SELECTED LIST www.caicheuvreux.com CAZENOVE FERRARI OUTPERFORM www.cazenove.com UBS WARBURG CIPELLETTI BUY www.ubs.com CREDIT SUISSE COLLISON NEUTRAL www.credit-suisse.com CABOTO LA SCALIA ADD www.caboto.it BANCA AKR
Slide 27: Investor Relations
INVESTOR RELATIONS invrel@cementir.it Tel. +39 06 45412213 Fax +39 06 45412288 www.cementir.it 27