Presentation - Italcementi Group

Group Presentation 

Mediobanca 

Copenhagen 

Roadshow 

16 June 2010 

Italian Pavilion at Expo 2010 Shanghai China 

featuring the new “transparent cement” expressly developed by Italcementi 

Italcementi Group Mediobanca – Copenhagen Roadshow, 16 June 2010 Title 1

Disclaimer 

This presentation contains forward-looking statements regarding future events and future results of Italcementi and its 

affiliate Ciments Français that are based on the current expectations, estimates, forecasts and projections about the 

industries in which Italcementi and Ciments Français operate, and on the beliefs and assumptions of the management 

of Italcementi and Ciments Français. In particular, among other statements, certain statements with regard to 

management objectives, trends in results of operations, margins, costs, return on equity, risk management, 

competition, changes in business strategy and the acquisition and disposition of assets are forward-looking in nature. 

Words such as ‘expects’, ‘anticipates’, ‘scenario’, ‘outlook’, ‘targets’, ‘goals’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, 

‘seeks’, ‘estimates’, as well as any variation of such words and similar expressions, are intended to identify such 

forward-looking statements. Those forward-looking statements are only assumptions and are subject to risks, 

uncertainties and assumptions that are difficult to predict because they relate to events and depend upon 

circumstances that will occur in the future. Therefore, actual results of Italcementi or of its affiliate Ciments Français 

may differ materially and adversely from those expressed or implied in any forward-looking statement and neither 

Italcementi nor Ciments Français does assume any liability with respect thereto. Factors that might cause or 

contribute to such differences include, but are not limited to, global economic conditions, the impact of competition, or 

political and economic developments in the countries in which Italcementi and Ciments Français operate. Any 

forward-looking statements made by or on behalf of Italcementi or of Ciments Français speak only as of the date they 

are made. Neither Italcementi nor Ciments Français does undertake to update forward-looking statements to reflect 

any change in their expectations with regard thereto, or any change in events, conditions or circumstances which any 

such statement is based on. The reader is advised to consult any further disclosure that may be made in documents 

filed by Italcementi with Borsa Italiana S.p.A (Italy) and by Ciments Français with the Autorité des Marchés Financiers 

(France). 

The Manager in Charge of preparing Italcementi SpA financial reports, Carlo Bianchini, hereby certifies pursuant to 

paragraph 2 of art. 154-bis of the Consolidated Law on Finance (Testo Unico della Finanza), that the accounting 

disclosures of this document are consistent with the accounting documents, ledgers and entries. 

This presentation has been prepared solely for the use at the meeting/Analyst Meeting with investors and analysts at 

the date shown below. Under no circumstances may this presentation be deemed to be an offer to sell, a solicitation 

to buy or a solicitation of an offer to buy securities of any kind in any jurisdiction where such an offer, solicitation or 

sale should follow any registration, qualification, notice, disclosure or application under the securities laws and 

regulations of any such jurisdiction. 

Italcementi Group Mediobanca – Copenhagen Roadshow, 16 June 2010 2

AGENDA 

Group overview 

Q1 2010 Group Results 

Outlook & Actions 

Italcementi Group Mediobanca Analyst – Analyst Copenhagen Meeting – Roadshow, - 9 8 -07 March, May 2009 

2010 16 June 2010 3

Group Overview 

Global leader in cement 

World’s fifth largest global cement producer 

with a capacity of ~70mt/y 

Revenues Breakdown 

(after eliminations) 

Others 

5% 

Family-driven company, founded in Italy in 

1864 and listed since 1925 

Ready mix & 

Aggregates 

22% 

73% 

Cement 

Operations in 22 countries across 4 continents 

with a headcount of ~21,000 people 

2009 Revenues: EURbn 5.0 

59 cement plants, 15 grinding centres, 5 

terminals, 92 aggregates quarries and 373 

concrete batching units 

Leadership positions within most of its markets 

Total revenues of EURbn 5.0 in 2009 and 

recurring EBITDA of EURm 972 

Emerging Europe, 

Middle East, 

North Africa 

Asia 

Capacity Breakdown 

34% 

18% 

11% 

37% 

North America 

Central Western 

Europe 

2009 Cement Capacity: ~70 mt/y 

All operating figures as of 31st December 2009 

Source for 2008 market position: broker reports 

Italcementi Group Mediobanca – Copenhagen Roadshow, 16 June 2010 

4

Overview of Italcementi Group Structure 

Italcementi S.p.A. 

Holding company also operating 

Italian cement activities 

Diversified 

activities 

Support activities 

100% 

Italcementi Finance S.A. 

81.9% 

Additives and 

other Italian 

operations 

Italgen S.p.A. 

100% 

Group financing (Issuer) 

Power production 

100% 

Société Internationale 

Italcementi (Luxembourg) 

S.A. 

Ciments Français S.A. 

Affiliates 

50% 

Captive reinsurance 

CTG S.p.A. 

50% 

France 

Belgium 

Bulgaria 

Turkey 

83% 

BravoSolution S.p.A. 

E-business initiatives 

R&D, engineering and technical support 

Spain 

Egypt ( * ) 

Affiliates 

15% 

Interbulk Trading S.p.A. 

50% 

Medcem S.r.l. 

Shipping 

Trading Co 

85% 

Greece 

Morocco ( * ) 

U.S. 

India 

Canada 

Thailand ( * ) 

Others ( ** ) China 

International cement, RMC, 

aggregates and additives 

activities 

Kazakhstan 

All figures as of 31st December 2009, pro-forma for redenomination of Italcementi Finance S.A. 

(*) Controlling presence with significant minority interests 

(**) Italcementi is also present in Cyprus and Saudi Arabia, as well operating terminals in Albania, Gambia, Kuwait, Sri Lanka and Mauritania 

(grinding centre) 


5

Italcementi Group country ranking and market shares 

Leadership positions in most group markets 

BELGIUM 

3 rd - 16% 

BULGARIA 

40% - 1 st TURKEY 

CANADA 

5 th - 8% 

6% - 5 th KAZAKHSTAN 

U.S.A. 

8 th - 4% 

15% 

MOROCCO 

2 nd - 26% 

2009 Revenues: Breakdown by Geography 


5% 

13% - 4 th CHINA 

n.m. 

SPAIN 

FRANCE 

6 th - 6% 

2 nd - 33% 

India 

3% 

M o ro cco 

6% 

Other Emerging Markets, 

Trading & Others 

14% 

Italy 

17% 

6% 

13% - 4 th EGYPT 

3% - 5 th 

THAILAND 

INDIA 

ITALY 

1 st - 27% 

Egypt 

16% 

F rance 

27% 

Market Share in regions 

where the Group operates 

(Group estimates) 

N . A merica 

8% 

Other W. 

Euro pean 

M arkets 

9% 

30% - 1 st GREECE 

6% - 3 rd 

Source for 2008 market position: broker reports 


6

ITC Group evolution in cement capacity, revenues and EBITDA 

Growing strategic exposure to emerging countries 

1996 2000 2004 

2008 

15% 

Cement 

Capacity ( * ) 

35% 

46% 

52% 

Revenues 

11% 

14% 

16% 

36% 


EBITDA 

recurring 

14% 

15% 

21% 

45% 

(*) Full capacity included for all shareholdings ≥ 33% 

Mature countries 

Emerging countries 


7

Key Historical Financials 

Long term growth and resilience to downturn 

Revenues ( * ) (EURm) CAGR 96-09: +5.0% Rec. EBITDA ( * ) (EURm) CAGR 96-09: +4.4% 

20.9% 

24.5% 

24.1% 

23.1% 

24.7% 

23.4% 

1,447 1,404 

19.3% 

19.4% 

934 

1,091 

1,153 

1,113 

972 

556 

1996 2000 2004 2005 2006 2007 2008 2009 

Rec. EBITDA margin 

Cash Flow ( * ) (EURm) 

CAGR 96-09: +4.6% 

Net Financial Position ( * ) (EURm) 

641 

782 

786 

1,066 

918 

796 

722 

1,787 

1,736 

2,215 

2,210 

2,418 

2,679 

2,420 

402 

1,272 

1996 2000 2004 2005 2006 2007 2008 2009 

1996 2000 2004 2005 2006 2007 2008 2009 

(*) Local GAAP before 2004; NFP for YE 2004 considered as of 1st January 2005. 2009 figures prepared in compliance with IAS 23 and 2008 figures restated accordingly 


8

AGENDA 





2010 16 June 2010 9

Q1 2010 key results 

Continuing difficult market environment and unusually adverse weather penalize 

volumes and margins. Cash flow from operating activities remains good 

mt 

Cement and clinker volumes 

mt 

Q1 

2010 

12.3 

Q1 

2009 

13.0 

Var. 

10-09 

-5.0% 

FY 

2009 

55.7 

EURm 

Revenues 1,072 1,201 -10.7% 5,006 

EBITDA - recurring 136 189 -28.2% 972 

% on revenues 12.7% 15.7% -3.0p.p. 19.4% 

EBIT 24 65 -63.0% 443 

% on revenues 2.2% 5.4% -3.2p.p. 8.8% 

Net profit (9) 20 n.s. 215 

Group net profit (37) (13) n.s. 71 

Cash Flow from operating activities 

211 216 

-1.9% 

1,102 

EURm 

Net Financial Position 

31.03.10 

(2,361) 

31.12.09 

(2,420) 

Variation 

+59 


10

Q1 2010 key actions 

On track with our cost savings plan 

Focus on cash generation 

Tight control on CapEx 

Continuing containment of Working Capital 

Debt management 

Italcementi Finance S.A. and EMTN issue 

Industrial network enhancement 

Started clinker production in India (Yarraguntla) 

New kiln fire-up in Italy (Matera) 

Shutdown of 3 Grinding Centres in Italy 


11

Q1 2010 Sales volumes 

Persistent decrease of volumes in mature markets, but first signs of stabilization in 

March (cement & clinker: -1.1% overall vs. March 2009) 

Cement and Clinker (mt) 

Aggregates (mt) 

Ready-mix (mm 3 ) 

Trading 

13.0(*) 

-5.0% 

+64%. 

12.3(*) 

2.5 -4.2%(***) 2.4 

Emerging 

markets 

-2.5% 

9.1 -10.7%(**) 

-17.8% 

8.1 

+5.9% 

-10.1% 

Mature 

markets 

-9.8% 

-10.6% 

31 Mar 09 31 Mar 10 

31 Mar 09 31 Mar 10 

31 Mar 09 31 Mar 10 

(*) Net of eliminations for 0.9 mt in 2010 

and 0.5 mt in 2009 

(**) -11% on a like-for-like basis 

(***) -7.2% on a like-for-like basis 


12

Q1 2010 Revenues 

Decline of volumes compounded by price weakness in some countries 

Breakdown by Business 


Breakdown by Area 


(EURm) 

(EURm) 

1,201 

-10.7% 

1,201 

-10.7% 

Other 

Aggregates 

Ready-Mix 

-3.8% 

-9.6% 

1,072 

Other 

Trading 

-18.6% 

-33.0% 

1,072 

Emerging 

markets 

-5.3% 

Cement and 

Clinker 

-11.6% 

Mature 

markets 

-12.7% 

Variation L-f-L -9.7% 


13

Q1 2010 recurring EBITDA 

EBITDA hit by volume and price effects, partially mitigated by continuing actions on 

fixed and variable costs. EBITDA decline across all areas 

Breakdown by lever 

Breakdown by area 

EURm 

EURm 

Of which: 

Fuels 18 

Power 3 

Clinker & Cement Purch. (9) 

Of which: 

CO 2 3 

Of which: 

Volume (29) 

Price (26) 

Fix/Variable costs 41 

Of which: 

Volume (7) 

Variable costs (6) 

Of which: 

Volume (5) 

Of which: 

Price (13) 

Of which: 

Maintenance 7 

Inventory variation 6 

Labour cost 2 


14

Fuel and power costs cycle (y/y %) 

Still benefiting from favorable fuel cost trend from stocks effect. Ongoing drive 

towards consumption efficiency now showing on electricity too 

Fuel costs y/y trend by quarter 

Power costs y/y trend by quarter 

(*) 

(*) Cost of fuel consumed 


15

Income statement (1/2) 

EBIT decline notwithstanding lower D&A and improvement in non recurring 

income/expenses 

EURm 

Revenues 

Of which 

Net Gain on sale of fixed assets 2 

Restructuring costs in Italy (4) 

Q1 

2010 

1,072 

Q1 

2009 

1,201 

Var. 

(129) 

% Var. 

-10.7% 

EBITDA - recurring 

136 

189 

(53) 

-28.2% 

% on revenues 

12.7% 

15.7% 

-3.0p.p. 

- 

Other non rec. income / (expenses) 

(3) 

(12) 

9 

n.s. 

EBITDA 

133 

177 

(45) 

-25.2% 

% on revenues 

12.4% 

14.8% 

-2.4p.p. 

- 

Amortisation and depreciation 

(109) 

(113) 

4 

-3.3% 

Depreciation of assets 

0 

0 

n.s. 

n.s. 

EBIT 

24 

65 

(41) 

-63% 

% on revenues 

2.2% 

5.4% 

-3.2p.p. 

- 


16


Net of one off USPP prepayment charges, financial expenses decline thanks to 

interest rate and volume effect 

EURm 

Of which 

Rate 6 

Volume 2 

USPP prepayment charges (22) 

Q1 

2010 

Q1 

2009 

Var. 

% Var. 

EBIT 

24 65 (41) -63% 

% on revenues 

2.2% 

5.4% 

-3.2p.p. 

- 

Financial income and expenses 

(37) 

(29) 

(8) 

+28.4% 

Adjustment to financial assets value 

0 

0 

n.s. 

n.s. 

Result of comp. valued with the equity method 

1 

1 

n.s. 

n.s. 

Profit before Tax (Pbt) 

(12) 

37 

(49) 

n.s. 

% on revenues 

-1.1% 

3.1% 

-4.2p.p. 

- 

Income tax expense 

4 

(17) 

20 

n.s. 

Net profit 

(9) 

20 

(29) 

n.s. 

% on revenues 

-0.8% 

1.7% 

-2.5p.p. 

- 

Group net profit 

(37) 

(13) 

(25) 

n.s. 

Minority interest 

29 

33 

(4) 

-11.9% 


17

Cash flow 

Cash flow benefits from working capital reductions and moderating CapEx trend as 

strategic investments near completion 

EURm 

Of which: 

Strategic projects 46 

Net of EURm 196 

net receivable from Calcestruzzi 

Net of EURm 198 

net receivable from Calcestruzzi 

(2,679) 146 70 (171) 

(8) 4 0 (50) (2,689) 

NFP 

31.12.08 

NFP 

31.03.09 

(*) Including change in payables of EURm -39 as of Mar. 2010 and EURm -22 as of Mar. 2009 (**) Including change in payables of EURm -9 as of Mar. 2010 and EURm 0 as of Mar. 2009 


18

Financial ratios*: Leverage, Coverage & Gearing 

Cash generation and financial prudence underpin solid ratios and investment grade 

rating 

Leverage 

Net Debt/ 

Recurring EBITDA (LTM) 

Coverage ( ** ) 

Recurring EBITDA (LTM) / 

Financial income-charges (LTM) 

Gearing (%) 

Net Debt/ 

Shareholders’ equity 

LT Rating 

Outlook 

Last Action 

Moody‟s 

Baa2 

Negative 

20/7/09 

S&P 

BBB− 

Stable 

17/9/09 

(*) All ratios are net of Calcestruzzi figures 

(**) Q1 2010 financial income – charges net of USPP tender offer charges. Financial income - charges net of Turkey indemnity 


19

AGENDA 



Debt Management 



2010 16 June 2010 20

Group refinancing plan 

On the path towards a more centralized and efficient Group funding structure 

31 December 2009 Q1 2010 actions 

Italcementi S.p.A. 

EURm1,137 

r 

Set up ITC Finance as Group vehicle to centrally raise 

debt capital and back up facilities 

► Launched 2 EURbn EMTN program 

► On 16 March issued EURm 750 10 year bond 

Italcementi 

S.p.A. 

Ciments Français 

S.A. 

Italcementi 

Finance S.A. 

EURm 1,687 

o/w EURm 632 

dedicated to Intercompany 

Lending 

Refinance maturing facilities 

through intercompany loans 

► USPP notes tender offer closed on April 7; repurchased 

a total of $483.5M out of $500M 

► BdT outstanding reduced by EURm137 


S.A. 


affiliates 

EURm 341 

Continue to fund emerging market projects through 

local facilities for FX risk management 


affiliates 


21

Debt breakdown and maturity profile (as of 31/03/ 2010)* 

ITC Finance EMTN issue strengthens debt profile with one extra year in average life; 

USPP prepayment in April begins reduction of external debt levels at CF 

EURm 

Gross Debt Breakdown by Instrument 

EURm 

Gross Debt Breakdown by Borrower 

3,491 ( ** ) 

3,491 ( ** ) Average Life: 4.8 years 

64% of Gross Debt at 12/31/09, drops to 

46% proforma after USPP prepayment 

1,002 195 423 348 188 1,336 

1,002 195 423 348 188 1,336 

CF USPP prepaid 4/14 

(*) EURm 350 of outstanding BdT classified on Balance Sheet as L/T debt are shown here as 0-1 yr maturity following rating agency analysis; unutilised M/T credit lines are shown gross of the same amount 

(**) Excluding MTM of derivatives instruments 


22

Liquidity backup (as of 31/03/ 2010)* 

After bond issue, ample liquidity back up guarantees flexibility for well in excess 

of our two-year policy target 

Unutilized Backup Lines Maturity Profile 

Liquidity Backup vs. Maturing Debt 

EURm 

EURm 

2,570 

497 0 1,107 276 490 200 

3 years of liquidity 

backup 

Including USPP 

prepaid 4/14 with 

available cash 

(*) EURm 350 of outstanding BdT classified on Balance Sheet as L/T debt are shown here as 0-1 yr maturity following rating agency analysis; unutilised M/T credit lines are shown gross of the same amount 

(**) Excluding MTM of derivatives instruments 


23

AGENDA 





2010 16 June 2010 24

2010: volumes and prices 

Low visibility for 2010, with likelihood of better H2 

MATURE COUNTRIES 

Domestic cement market outlook (2010 vs. 2009) 

Volumes* 

Prices** 

EMERGING 

COUNTRIES 

Volumes* 

Increase 

Stability 

Decrease 

Prices** 

Italy 

France 

Belgium 

Spain 

Egypt 

Morocco 

Bulgaria 

Turkey 

Greece 

North America 

(Group mkt Area) 

(*) Domestic market 

(**) Local currency 

Thailand 

India 

(Group mkt Area) 

China 

Kazakhstan 

ITC 

Group 

Outlook 

Group sales volumes expected to remain stable or slightly increase overall 

Prudent view on average prices evolution, with uncertainty on degree of pressure 

in some countries (India, Bulgaria, Italy and North America) 


25

2010 key goals 

We confirm our 2010 targets 

Cost 

Savings 

Working 

Capital 

Optimisation 

Provide additional structural savings also thanks to further industrial 

network rationalization 

► In Q1 closed 3 grinding centres in Italy 

► On track on all variable cost savings levers and ahead on fixed 

cost reduction 

► Strong contribution from fuels (EURm 19) 

Continue and reinforce all 2009 actions 

► Overall good results amplified by seasonal positive effect on 

receivables 

2010 FY Target 

EURm 100 

Q1 Results 

EURm 50 

2010 Target 

reduction 

of ~ EURm 50 

Q1 Results 

EURm 141 

Industrial 

Investments 

Curb total investment cash out, whilst remaining on track with our 

strategic guidelines 

► CapEx on main strategic projects in the quarter at EURm 46 

2010 Target 

CapEx 

EURm 620 

Q1 Results 

EURm 92 

Continue to 

► Reduce break even point 

► Focus on cash flow management 


26

Update on major industrial projects 

Roll-out 

Q1 2010 

Q2 2010 

Q3 2010 

India 

Yerraguntla 

Italy 

Matera 

New Line 

2.3 mt/y 

cement equivalent 

capacity 

Kiln Revamping 

0.9 mt/y (+0.2 mt/y) 

cement capacity 

clinker production started in Q1 

grinding line ready in Q2 

kiln fire-up in Q1 (in advance vs. 

prior forecast) 

2.5 mt/y additional 

capacity available 

in Q2 

Morocco 

Ait Baha 

New Line 

2.2 mt/y 


31% capacity increase in the 

country 

19 % variable costs reduction vs. 

old Agadir plant 

1.1 mt/y additional 

capacity available 

in Q3 

Roll-out 

… … H2 2012 

Bulgaria 

Devnya 

New Line 

2.7 mt/y 


~20 % cement capacity increase 

Stepping stone to increase Eastern 

Europe exposure through a 

network of grinding centres 

Kiln fire-up 

not before H2 2012 


27

Other initiatives for 2010 and beyond 

Cement 

Egypt 

2010 - Efficiency recovery plan to increase clinker production by 0.7 mt/y 

~ 2.0 mt/y legacy lines relocation plan under development 

India 

2011 - New grinding centre in Chennai 

Thailand 

2010 - Waste heat recovery 

Wind power 

Bulgaria 

First steps in the path towards the development of wind power initiatives in 

the Med Rim area 

Acquired 49% stake in Gardawind, a company with two wind farms of 

total 18 MW 

Turkey 

Balikesir wind farm project - Licenced capacity of 142.5 MW 

►Enhancing efficiency 

►Strengthening of our “green” mark 


28

Conclusions 

Overall resilient Q1 2010 results in a very tough market environment thanks to 

continuing efforts to reduce both variable and fixed costs 

Poor visibility on 2010 market evolution; H2 2010 is expected to show better 

performances, but scenario remains difficult, with possible additional price 

pressure in some countries 

Additional savings will help to reduce negative pressure on operating results in 

the remaining part of 2010 


29

Appendix 1 

Q1 2010 Results 

Italcementi Group Mediobanca Analyst – Copenhagen Meeting – Roadshow, - 8 -07 March May 2009 

2010 16 June 2010 30

Q1 2010 key figures by Area 

EURm 

Revenues EBITDA rec. % weight % margin 

Q1 ‟10 / Q1 „09 Q1 ‟10 / Q1 „09 Q1 ‟10 / Q1 „09 Q1 ‟10 / Q1 „09 

Central Western 

Europe 

543 / 619 49 / 58 

24% / 26% 

5% / 7% 

North America 62 / 74 (17) / (9) 

EEMENA 341 / 359 92 / 110 

78% / 72% 

24% / 29% 

►Continuing 

weak 

performances 

in Mature 

Markets 

Asia 95 / 108 14 / 27 

► Emerging 

remain resilient 

Trading Cement & 

Clinker 

65 / 49 3 / 3 

2% / 1% 

5% / 5% 

►Good 

contribution 

from Trading 

Others 98 / 95 (5) / 2 

-4% / 1% 

n.s. / n.s. 

Eliminations (130) / (103) 

Total 1,072 / 1,201 136 / 189 

100% 

13% / 16% 


Central/Western Europe 

EBITDA negatively affected by severe weather conditions and pressure on prices 

VOLUMES 

Q1 

2010 

Q1 

2009 

Var. 

10-09 

Var. like 

for like 

Cement and Clinker 

(kt) 

4,136 

4,569 

-9.5% 

-9.5% 

Aggregates 

(kt) 

7,368 

8,313 

-11.4% 

-11.4% 

Ready-mix 

(mm³) 

1,252 

1,394 

-10.2% 

-11.6% 

EURm 

REVENUES 

543 

619 

-12.4% 

-12.2% 

RECURRING EBITDA 

49 

58 

-15.6% 

-15.2% 

% REC EBITDA ON REVENUES 

9.0% 

9.3% 

-0.3p.p. 

- 

Q1 - Recurring EBITDA variation analysis EURm 

EBITDA decline driven by volume effect in 

France and Belgium 

Italy cost actions compensate price pressure 

Slight EBITDA improvement in Spain in spite 

of volume decline 


32

North America 

Harsh weather conditions lead to a further deterioration of economic results. First 

signs of volume recovery in March (cement & clinker: -0.3% vs. March 2009) 

VOLUMES 

Q1 

2010 

Q1 

2009 

Var. 

10-09 

Var. like 

for like 


(kt) 

596 

676 

-11.8% 

-11.8% 

Aggregates 

(kt) 

185 

91 

+104.4% 

+49.5% 

Ready-mix 

(mm³) 

110 

129 

-15.0% 

-18.6% 

EURm 

REVENUES 



62 

74 -17.4% -12.5% 

(17) (9) 85.8% 97.1% 

-27.9% -12.4% -15.5p.p. - 


Volumes still declining, but some market 

share recovering 

Fixed costs improvement offset by inventory 

(5) 

(1) (1) 

(3) 

0 1 

effect vs. 2009 


33

Emerging Europe - Middle East - North Africa 

EBITDA decline driven by Egypt and Bulgaria 

VOLUMES 

Q1 

2010 

Q1 

2009 

Var. 

10-09 

Var. like 

for like 


(kt) 

4,759 

4,891 

-2.7% 

-2.7% 

Aggregates 

(kt) 

497 

554 

-10.3% 

-10.3% 

Ready-mix 

(mm³) 

883 

833 

+6.0% 

+0.3% 

EURm 

REVENUES 



341 359 

92 110 

27.0% 30.6% 

-4.8% 

-16.1% 

-3.6p.p. 

-2.9% 

-13.7% 

- 


Volumes affected by slumping market in 

Bulgaria 

Negative margin impact from clinker 

purchases in Egypt to keep up with market 

demand in spite of capacity constrains 

Other markets stable 


34

Asia 

Indian difficult market environment drives the poor economic performances of the 

Area 

VOLUMES 

Q1 

2010 

Q1 

2009 

Var. 

10-09 

Var. like 

for like 


(kt) 

2,521 

2,576 

-2.1% 

-2.1% 

Aggregates 

(kt) 

76 

143 

-46.9% 

-46.9% 

Ready-mix 

(mm³) 

162 

153 

+5.6% 

+0.2% 

EURm 

REVENUES 



95 108 -11.9% -12.5% 

14 

27 -46.2% -47% 

15.1% 24.8% -9.7p.p. - 


Strong negative EBITDA impact from H2 

price war in Andhra Pradesh, even if signs of 

recovery are already visible 

Slightly negative EBITDA trends in Thailand 

and China offset by Kazakhstan 


35

Q1 2010: revenues by country 


36

Q1 2010: recurring EBITDA by country 


37

Appendix 2 

FY 2009 Results snapshot 

Italcementi Group Mediobanca Analyst – Copenhagen Meeting – Roadshow, - 8 -07 March May 2009 

2010 16 June 2010 38


Recurring EBITDA decline substantially in line with revenues. 

EBIT penalized by depreciation of assets for restructuring actions 

EURm 

Revenues 

Of which 

Net Gain on sale of fixed assets 26 

Restructuring costs in Italy (18) 

Restructuring costs in N.Amer. (10) 

Restructuring costs in Thailand (6) 

FY 

2009 

5,006 

FY 

2008 

5,776 

Var. 

(769) 

% Var. 

-13.3% 

EBITDA - recurring 

972 

1,113 

(142) 

-12.7% 

% on revenues 

19.4% 

19.3% 

+0.1p.p. 

- 

Other non rec. income / (exp.) 

(15) 

(10) 

(5) 

+45.2% 

EBITDA 

% on revenues 

Italy (21) 

North.America (10) 

Thailand (20) 

957 

19.1% 

1,103 

19.1% 

(146) 

0p.p. 

-13.3% 

- 

Amortisation and depreciation 

(460) 

(451) 

(9) 

+2% 

Depreciation of assets 

(54) 

(45) 

(9) 

+20.7% 

EBIT 

443 

607 

(164) 

-27.1% 

% on revenues 

8.8% 

10.5% 

-1.7p.p. 

- 



Net of 2008 Turkey indemnity, financial expenses decline thanks to interest rate 

effect. Lower adjustments to financial assets value but decline in contribution from 

equity participation 

EURm 

Of which 

Rate 33 

Capitalized borrowing costs 9 

Volume (7) 

FY 

2009 

FY 

2008 

Var. 

% Var. 

EBIT 

% on revenues 

Financial income and expenses 

Adjustment to financial assets value 

Turkey 

indemnity 50 

Calcestruzzi 

(41) in 2009 

(42) in 2008 

Result of comp. valued with the equity method 

443 

8.8% 

(107) 

(41) 

15 

607 

10.5% 

(79) 

(125) 

25 

(164) 

-1.7 p.p. 

(27) 

+84 

(11) 

-27.1% 

- 

+34.5% 

-67.1% 

-41.9% 

Of which 

Cyprus (6) 

Canada (3) 

Profit before Tax (Pbt) 

% on revenues 

Goltas , Bursa (79) 

310 428 (118) -27.7% 

6.2% 7.4% -1.2 p.p. - 

Income tax expense 

(94) 

(151) 

+57 

-37.8% 

Net profit 

215 

277 

(61) 

-22.2% 

% on revenues 

4.3% 

4.8% 

-0.5 p.p. 

- 

Group net profit 

71 

143 

(71) 

-50.0% 

Minority interest 

144 

134 

+10 

+7.4% 


2009: response to the downturn exceeding our goals 

Management initiatives leading to an improved operating platform 

Cost 

Savings 

2009 Target 

EURm 220 

Fixed and variable cost 

cutting initiatives lead to 

a lower break-even 

point 

Achieved 

EURm 242 

Working 

Capital 

Reduction 

Inventories Trade Receivable Trade Payable 

Solid fuels action 

plan 

Clinker inventory 

control 

Spare parts 

inventory 

optimisation 

Focus on DSO 

in spite of 

difficult market 

conditions 

Renegotiation of 

payment terms, 

partially off-set 

by volume effect 

2009 Target 

EURm 

(170)/(190) 

Achieved 

EURm (380) 

Actions on working 

capital with positive 

impact on net financial 

position 

Investment 

Plan 

(CapEx + 

Equity) 

Strategic Projects Non Strategic Capex Equity Investments 

New state-ofthe-art 

capacity 

~7.4 Mt/y of 

which ~3.4 

Mt/y additional 

on stream by 

2010 

Strong 

selectivity 

No transaction 

waiting for better 

opportunities in 

2010 

2009 Target 

EURm(150) 

vs 2008 

Achieved 

EURm (245) 

Total spending 

contained, protecting 

investments targeted to 

efficiency enhancement 

in mature markets and 

capacity expansion in 

emerging markets 


41

2009 recurring EBITDA 

EBITDA impacted by negative volume trend mitigated by strong actions on fixed and 

variable costs. 

EURm 

1,113 

Of which: 

Clinker & Cement Purch. 62 

Fuels 32 

Power (17) 

Raw Materials (10) 

Of which: 

Labour cost 28 

Maintenance 28 

972 

-12.7% 

EBITDA 

Recurring 

2008 

Volumes 

Prices 

Variable 

costs 

Fixed 

costs 

Inventory 

effect 

Other 

Scope 

and FX 

EBITDA 

Recurring 

2009 


42

2009 cash flow 

Reduction of Net Debt even after strong organic growth investments thanks to strict 

control of working capital, containment of non organic growth and prudent Italcementi 

S.p.A. dividend policy 

EURm 

Of which: 

Inventories 255 

Of which: 

Strategic projects 408 

vs. 303 in 2008 

Of which: 

Italcementi S.p.A. 53 

Egypt 31 

Ciments Français S.A. 19 

(2,418) 796 (154) (735) 

NFP 

31.12.07 

(253) 57 (171) 199 (2,679) 

NFP 

31.12.08 

(*) Including change in payables of EURm +12 as of Dec. 09 and EURm +6 as of Dec. 08 (**) Including change in payables of EURm +8 as of Dec. 2009 and EURm +2 as of Dec. 2008 


43

2009: sales volume by business and by area 

AREA 

Q1 2009 Q1 2008 D D L-f-L Q2 2009 Q2 2008 D D L-f-L Q3 2009 Q3 2008 D D L-f-L Q4 2009 Q4 2008 D D L-f-L 

31 Dec. 31 Dec. 

2009 2008 

D D L-f-L 

Central Western Europe 4,569 5,849 - 21.9% - 21.9% 5,629 6,659 - 15.5% - 15.5% 5,126 6,006 - 14.6% - 14.6% 4,732 5,476 - 13.6% - 13.6% 20,056 23,990 - 16.4% - 16.4% 

North America 676 955 - 29.2% - 29.2% 1,133 1,587 - 28.6% - 28.6% 1,238 1,630 - 24.0% - 24.0% 958 1,140 - 16.0% - 16.0% 4,006 5,312 - 24.6% - 24.6% 

MATURE COUNTRIES 5,245 6,804 - 22.9% - 22.9% 6,762 8,246 - 18.0% - 18.0% 6,364 7,636 - 16.7% - 16.7% 5,690 6,616 - 14.0% - 14.0% 24,061 29,302 - 17.9% - 17.9% 

Eastern Europe & Southern Med Rim 4,797 4,893 - 1.9% - 1.9% 5,129 5,603 - 8.5% - 8.5% 4,864 5,146 - 5.5% - 5.5% 4,816 4,938 - 2.5% - 2.5% 19,606 20,579 - 4.7% - 4.7% 

Asia 2,576 2,711 - 5.0% - 5.0% 2,608 2,742 - 4.9% - 4.9% 2,741 3,248 - 15.6% - 15.6% 2,699 2,559 + 5.5% + 5.5% 10,623 11,260 - 5.7% - 5.7% 

EMERGING COUNTRIES 7,373 7,603 - 3.0% - 3.0% 7,737 8,345 - 7.3% - 7.3% 7,605 8,394 - 9.4% - 9.4% 7,514 7,497 + 0.2% + 0.2% 30,229 31,840 - 5.1% - 5.1% 

Trading & others 790 1,299 - 39.2% - 39.2% 1,070 1,507 - 29.0% - 29.0% 1,244 1,697 - 26.7% - 26.7% 1,018 955 + 6.5% + 6.5% 4,122 5,458 - 24.5% - 24.5% 

Eliminations -544 -952 - 42.8% - 42.8% -596 -943 - 36.9% - 36.9% -855 -1,324 - 35.4% - 35.4% -716 -757 n.s. n.s. -2,711 -3,977 n.s. n.s. 

TOTAL 12,863 14,753 - 12.8% - 12.8% 14,973 17,155 - 12.7% - 12.7% 14,359 16,404 - 12.5% - 12.5% 13,505 14,311 - 5.6% - 5.6% 55,701 62,623 - 11.1% - 11.1% 

AREA 


31 Dec. 31 Dec. 

2009 2008 

D D L-f-L 


North America 91 71 + 27.5% + 0.0% 140 99 + 41.6% + 10.4% 217 175 + 24.0% + 24.7% 199 108 + 83.5% + 110.8% 646 453 + 42.6% + 33.0% 


Eastern Europe & Southern Med Rim 554 633 - 12.4% - 9.5% 721 770 - 6.4% - 4.3% 656 700 - 6.3% - 6.0% 621 508 + 22.2% + 22.7% 2,551 2,611 - 2.3% - 0.7% 

Asia 143 195 - 26.8% - 26.8% 114 197 - 42.3% - 42.3% 125 208 - 39.7% - 39.7% 118 148 - 20.3% - 20.3% 499 748 - 33.2% - 33.2% 

EMERGING COUNTRIES 697 827 - 15.8% - 13.6% 834 967 - 13.8% - 12.2% 781 908 - 14.0% - 13.7% 739 656 + 12.6% + 13.0% 3,051 3,359 - 9.2% - 8.0% 

TOTAL 9,100 11,962 - 23.9% - 23.9% 10,896 13,012 - 16.3% - 16.3% 9,656 11,943 - 19.1% - 19.1% 9,435 10,636 - 11.3% - 11.2% 39,088 47,553 - 17.8% - 17.8% 

AREA 

CEMENT & CLINKER (kt) 

AGGREGATES (kt) 

READY-MIX CONCRETE (kmc) 


31 Dec. 31 Dec. 

2009 2008 

D D L-f-L 


North America 129 138 - 6.6% - 17.8% 210 295 - 28.8% - 30.7% 242 325 - 25.5% - 27.3% 188 242 - 22.1% - 24.5% 770 1,000 - 23.0% - 26.2% 


Eastern Europe & Southern Med Rim 754 1,030 - 26.8% - 26.8% 938 1,331 - 29.6% - 29.6% 867 1,158 - 25.1% - 25.1% 832 897 - 7.2% - 7.2% 3,391 4,416 - 23.2% - 23.2% 

Asia 153 210 - 27.1% - 27.1% 128 223 - 42.8% - 42.8% 142 223 - 36.2% - 36.2% 148 176 - 16.3% - 16.3% 571 833 - 31.5% - 31.5% 

EMERGING COUNTRIES 907 1,240 - 26.8% - 26.8% 1,065 1,554 - 31.5% - 31.5% 1,009 1,381 - 26.9% - 26.9% 980 1,073 - 8.7% - 8.7% 3,962 5,248 - 24.5% - 24.5% 

Trading & others 85 0 + 0.0% 117 25 + 367.8% + 51.7% 103 82 + 25.6% - 11.2% 129 90 + 43.5% - 0.8% 435 198 + 120.1% - 4.0% 

TOTAL 2,515 3,283 - 23.4% - 25.7% 3,075 3,920 - 21.6% - 24.0% 2,850 3,568 - 20.1% - 21.8% 2,765 3,089 - 10.5% - 12.5% 11,205 13,860 - 19.2% - 21.5% 


44

2009: revenues by country 

31 Dec. 31 Dec. 

% Var. 09-08 

EURm 2009 2008 actual like-for-like 

Italy 938 1,213 -22.6% -19.5% 

France/Belgium 1,530 1,749 -12.5% -13.3% 

Spain 227 300 -24.3% -24.3% 

Greece 83 97 -14.5% -14.5% 

Eliminations -24 -28 - - 

Central Western Europe 2,754 3,331 -17.3% -16.5% 

North America 401 500 -19.8% -24.3% 

Egypt 793 665 19.3% 15.5% 

Morocco 320 309 3.5% 2.6% 

Bulgaria 100 170 -41.2% -41.2% 

Turkey 132 215 -38.6% -30.3% 

Eliminations -1 0 - - 

Eastern Europe & Southern Med Rim 1,345 1,359 -1.0% -1.8% 

Thailand 161 200 -19.5% -20.6% 

India 172 188 -8.7% -3.5% 

China 47 32 45.0% 35.1% 

Kazakhstan 32 29 9.8% 27.7% 

Eliminations 0 0 - - 

Asia 412 450 -8.4% -6.3% 

Trading Cement & Clinker 253 371 -31.8% -36.6% 

Others & eliminations -159 -235 - - 

Total 5,006 5,776 -13.3% -13.6% 


45

2009: recurring EBITDA by country 

EURm 

31 Dec. 2009 

31 Dec. 2008 

% on sales % on sales 

Variation 

09 vs. 08 

Italy 63 6.7% 90 7.4% -27 -29.9% 

France/Belgium 334 21.8% 380 21.7% -45 -12.0% 

Spain 42 18.6% 68 22.6% -26 -37.9% 

Greece 21 25.4% 28 28.4% -7 -23.6% 

Central Western Europe 460 16.7% 565 17.0% -105 -18.5% 

North America 13 3.1% 55 11.1% -43 -77.4% 

Egypt 262 33.1% 239 36.0% 23 9.5% 

Morocco 132 41.3% 95 30.8% 37 38.7% 

Bulgaria 26 25.9% 57 33.7% -31 -54.7% 

Turkey -6 n.s. 3 1.4% -9 n.s. 

Eastern Europe & Southern Med Rim 414 30.8% 395 29.1% 19 4.8% 

Thailand 22 13.8% 36 18.2% -14 -38.6% 

India 61 35.2% 64 34.2% -4 -5.9% 

China 9 18.9% -1 n.s. 9 n.s. 

Kazakhstan 4 11.7% 5 17.1% -1 -25.1% 

Asia 95 23.2% 105 23.4% -10 -9.2% 

Trading Cement & Clinker 15 6.1% 18 4.9% -3 -14.6% 

Others -26 n.s. -26 n.s. -1 3.1% 

Total 972 19.4% 1,113 19.3% -142 -12.7% 


46

Investor Relations 

2010 calendar 

• H1 2010 Results – Conference Call 

July 30 th , 2010 

• Investor Day 

Morocco September 24 th , 2010 

• Q3 2010 Results – Conference Call 

November 8 th , 2010 

Contacts 

Investor Relations Department 

Via G. Camozzi, 124 - 24121 Bergamo - Italy 

www.italcementigroup.com 

Giancarlo Berera, Head of IR 

Tel. +39 035 39 67 51 

Fax +39 035 39 66 19 

E-mail: g.berera@italcementi.it 

Arturo Carchio, IR 

Tel. +39 035 39 68 66 

Fax +39 035 39 66 19 

E-mail: a.carchio@italcementi.it 

Raffaele Lupotto, IR 

Tel. +39 035 39 68 29 

Fax +39 035 39 66 19 

E-mail: r.lupotto@italcementi.it 


47

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