Slide 1: Investors Meeting London 2010 Results
IInvestors t Meeting M ti 2010 Results London March 29 , 2011 TH
Slide 2: Legal disclaimer
Legal disclaimer 2 This presentation has been prepared by and is the sole responsibility of Cementir Holding S.p.A. (the “Company”) for the sole purpose described herein. In no case may it or any other statement (oral or otherwise) made at any time in connection herewith be interpreted as an offer o
Slide 3: Group Overview
GROUP OVERVIEW Cc cementirholding
Slide 4: Group overview - International presence
Group overview - International presence 4 Cementir Holding operates production plants in 15 countries ~ 15 mt of cement capacity; 3.2 m of Rmc and 3.6 m of aggregates sold in 2010 DENMARK - SCANDINAVIA EGYPT ICELAND Grey cement capacity: 2,100,000 2 100 000 t White cement capacity: 1,100,000 1 100 0
Slide 5: Successful expansion from local to global player
Successful expansion of Cementir Holding from local 5 to global player... Since 2001 over Euro 1.1 billion invested to increase geographical diversification: today 85% of sales derive from international operations 2001 Sales by geography 2010 Sales by geography Other 3% Far East 4% Scandinavia 42% E
Slide 6: Historical performance
Historical performance 6 • Cementir Holding has grown significantly through acquisitions, entirely financed by cash flow and debt • From 2007, challenging market conditions in main geographies (Italy, Turkey and Nordics) impacted on profitability • Since 2005 product mix has changed due to lower mar
Slide 7: Global leadership in white cement
Global leadership in white cement 7 Cementir Holding is #1 worldwide with 3m tons of production capacity 6760 4025 4450 3750 1595 1995 Europe 2160 1861 North America China Middle East 1285 1288 50 65 South / North Asia Carribean (excl. China) 1610 1411 955 457 650 Africa East Asia 398 Latin America
Slide 8: 2010 Results Highlights
2010 RESULTS HIGHLIGHTS Cc cementirholding
Slide 9: 2010 and Q4 results
2010 and Q4 results 9 P&L (EUR ‘000) FY 2010 FY 2009 Chg % Q4 2010 Q4 2009 Chg % Sales 842,260 822,473 2.4% 211,355 192,497 9.8% Raw Materials and Fuels (400 071) (400,071) (355 999) (355,999) 12 4% 12.4% (107 344) (107,344) (82 821) (82,821) 29 6% 29.6% Personnel costs (145,267) (147,918) -1.8% (40
Slide 10: Countries contributions to yoy growth of Revenues and Ebitda
Countries contributions to yoy growth of Revenues and Ebitda 10 Revenue contribution -9% +20% -23% +13% +22% +53% +25% +3% YoY change (%) € million 38,2 25,0 62 6 62,6 • Denmark: because of declining g construction 148,9 activities in Denmark, lower volumes of both domestic cement and rmc negatively
Slide 11: Denmark
Denmark 11 Cementir Holding is the only cement producer and #1 in RMC • Domestic building activity declined by around -12%, with cement voumes down 9% y-o-y, exacerbated by harsh weather in H1 • Per capita cement consumption today is back to ’93 (200 kg/capita), one of the lowest in OECD countries •
Slide 12: Other Scandinavia
Other Scandinavia 12 Cementir Holding is the #1 RMC player in Norway and a leading player in Sweden • Unicon (***) is the leading RMC player in Scandinavia • In 2010 in Norway and Sweden ready-mix volumes increased by +5.4% and +6.3%, respectively; prices were modestly higher, thanks also to currenc
Slide 13: Turkey
Turkey 13 Cementir Holding is the 1st international cement producer and #3 overall EDIRNE production capacity KARS production capacity • Strong economic momentum: due to infrastructure spending and grey cement: 1,300,000 t grey cement: 600,000 t export: Bulgaria low interest rates by historical stan
Slide 14: Turkey Waste Management Business
Turkey 14 Waste Management Business • Waste is strategically important to reduce fossil fuels impact on cement and to lower overall energy costs • € 60m three year investment plan in both Hazardous and Municipal waste with a run run- rate Ebitda of around € 16m from 2013 • Landmark 25-year contract
Slide 15: Italy
Italy 15 Cementir Holding is the 4th cement producer • In 2010 cement volumes declined with a sharp deterioration in prices from Q2 onwards • Net Sales declined by -23% 23% y y-o-y, o y, Negative Ebitda of € -3.5m 3.5m ARQUATA SCRIVIA • Cement market remains weak in 2011: no demand recovery in the p
Slide 16: Egypt
Egypt 16 Cementir Holding is the 1st white cement producer • Robust performance in 2010 with double-digit volume increase (perimeter change) • New entrant in the white cement market led to pressure on prices from Q4 2010 • Net Sales increased y-o-y by +22%, Ebitda by +16% (highest Ebitda SINAI EL AR
Slide 17: Far East
Far East 17 Cementir Holding is one of the leading producer in domestic white cement CHINA • China: new capacity came on stream in Q1 2010; sales up both in the domestic and in the clinker export market • Malaysia: good performance with higher exports mainly to Australia, Vietnam, South Korea and Si
Slide 18: Net Debt, Cash Flow and Dividends
Net Debt, Cash Flow and Dividends 18 • Cementir Holding generated strong cash flow, achieving a debt reduction of € 45m in 2010, despite negative Ebitda dynamics • Sound financial profile: Group gearing ratio improved significantly to 29% at the end of 2010, vs. 40.1% at 31 December 2008 • Comfortab
Slide 19: Main operating challenges
Main operating challenges 19 • Energy and Fuels costs increase from 15% to 23% of Revenues between 2006 and 2010 • Restructuring program and personnel cost control only partially offset higher fuel costs • Group Ebitda margin declined from 16.5% to 12.9% in the period Cash costs / Total Revenues • F
Slide 20: Appendix: Group structure and main shareholders
Appendix 20 Group structure and main shareholders* • Caltagirone Spa Group is a family-controlled industrial concern with aggregated ’10 sales of over € 1.4 bn • The Group holds financial investments in several quoted companies G Group structure t t Mkt cap: 239 35.6% 66.7% 56.5% 31.7% MEDIA CONSTRU