Presentation - Italcementi Group
Presentation - Italcementi Group
Presentation - Italcementi Group
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<strong>Group</strong> <strong>Presentation</strong><br />
Mediobanca<br />
Copenhagen<br />
Roadshow<br />
16 June 2010<br />
Italian Pavilion at Expo 2010 Shanghai China<br />
featuring the new “transparent cement” expressly developed by <strong>Italcementi</strong><br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010 Title 1
Disclaimer<br />
This presentation contains forward-looking statements regarding future events and future results of <strong>Italcementi</strong> and its<br />
affiliate Ciments Français that are based on the current expectations, estimates, forecasts and projections about the<br />
industries in which <strong>Italcementi</strong> and Ciments Français operate, and on the beliefs and assumptions of the management<br />
of <strong>Italcementi</strong> and Ciments Français. In particular, among other statements, certain statements with regard to<br />
management objectives, trends in results of operations, margins, costs, return on equity, risk management,<br />
competition, changes in business strategy and the acquisition and disposition of assets are forward-looking in nature.<br />
Words such as ‘expects’, ‘anticipates’, ‘scenario’, ‘outlook’, ‘targets’, ‘goals’, ‘projects’, ‘intends’, ‘plans’, ‘believes’,<br />
‘seeks’, ‘estimates’, as well as any variation of such words and similar expressions, are intended to identify such<br />
forward-looking statements. Those forward-looking statements are only assumptions and are subject to risks,<br />
uncertainties and assumptions that are difficult to predict because they relate to events and depend upon<br />
circumstances that will occur in the future. Therefore, actual results of <strong>Italcementi</strong> or of its affiliate Ciments Français<br />
may differ materially and adversely from those expressed or implied in any forward-looking statement and neither<br />
<strong>Italcementi</strong> nor Ciments Français does assume any liability with respect thereto. Factors that might cause or<br />
contribute to such differences include, but are not limited to, global economic conditions, the impact of competition, or<br />
political and economic developments in the countries in which <strong>Italcementi</strong> and Ciments Français operate. Any<br />
forward-looking statements made by or on behalf of <strong>Italcementi</strong> or of Ciments Français speak only as of the date they<br />
are made. Neither <strong>Italcementi</strong> nor Ciments Français does undertake to update forward-looking statements to reflect<br />
any change in their expectations with regard thereto, or any change in events, conditions or circumstances which any<br />
such statement is based on. The reader is advised to consult any further disclosure that may be made in documents<br />
filed by <strong>Italcementi</strong> with Borsa Italiana S.p.A (Italy) and by Ciments Français with the Autorité des Marchés Financiers<br />
(France).<br />
The Manager in Charge of preparing <strong>Italcementi</strong> SpA financial reports, Carlo Bianchini, hereby certifies pursuant to<br />
paragraph 2 of art. 154-bis of the Consolidated Law on Finance (Testo Unico della Finanza), that the accounting<br />
disclosures of this document are consistent with the accounting documents, ledgers and entries.<br />
This presentation has been prepared solely for the use at the meeting/Analyst Meeting with investors and analysts at<br />
the date shown below. Under no circumstances may this presentation be deemed to be an offer to sell, a solicitation<br />
to buy or a solicitation of an offer to buy securities of any kind in any jurisdiction where such an offer, solicitation or<br />
sale should follow any registration, qualification, notice, disclosure or application under the securities laws and<br />
regulations of any such jurisdiction.<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010 2
AGENDA<br />
<strong>Group</strong> overview<br />
Q1 2010 <strong>Group</strong> Results<br />
Outlook & Actions<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca Analyst – Analyst Copenhagen Meeting – Roadshow, - 9 8 -07 March, May 2009<br />
2010 16 June 2010 3
<strong>Group</strong> Overview<br />
Global leader in cement<br />
World’s fifth largest global cement producer<br />
with a capacity of ~70mt/y<br />
Revenues Breakdown<br />
(after eliminations)<br />
Others<br />
5%<br />
Family-driven company, founded in Italy in<br />
1864 and listed since 1925<br />
Ready mix &<br />
Aggregates<br />
22%<br />
73%<br />
Cement<br />
Operations in 22 countries across 4 continents<br />
with a headcount of ~21,000 people<br />
2009 Revenues: EURbn 5.0<br />
59 cement plants, 15 grinding centres, 5<br />
terminals, 92 aggregates quarries and 373<br />
concrete batching units<br />
Leadership positions within most of its markets<br />
Total revenues of EURbn 5.0 in 2009 and<br />
recurring EBITDA of EURm 972<br />
Emerging Europe,<br />
Middle East,<br />
North Africa<br />
Asia<br />
Capacity Breakdown<br />
34%<br />
18%<br />
11%<br />
37%<br />
North America<br />
Central Western<br />
Europe<br />
2009 Cement Capacity: ~70 mt/y<br />
All operating figures as of 31st December 2009<br />
Source for 2008 market position: broker reports<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
4
Overview of <strong>Italcementi</strong> <strong>Group</strong> Structure<br />
<strong>Italcementi</strong> S.p.A.<br />
Holding company also operating<br />
Italian cement activities<br />
Diversified<br />
activities<br />
Support activities<br />
100%<br />
<strong>Italcementi</strong> Finance S.A.<br />
81.9%<br />
Additives and<br />
other Italian<br />
operations<br />
Italgen S.p.A.<br />
100%<br />
<strong>Group</strong> financing (Issuer)<br />
Power production<br />
100%<br />
Société Internationale<br />
<strong>Italcementi</strong> (Luxembourg)<br />
S.A.<br />
Ciments Français S.A.<br />
Affiliates<br />
50%<br />
Captive reinsurance<br />
CTG S.p.A.<br />
50%<br />
France<br />
Belgium<br />
Bulgaria<br />
Turkey<br />
83%<br />
BravoSolution S.p.A.<br />
E-business initiatives<br />
R&D, engineering and technical support<br />
Spain<br />
Egypt ( * )<br />
Affiliates<br />
15%<br />
Interbulk Trading S.p.A.<br />
50%<br />
Medcem S.r.l.<br />
Shipping<br />
Trading Co<br />
85%<br />
Greece<br />
Morocco ( * )<br />
U.S.<br />
India<br />
Canada<br />
Thailand ( * )<br />
Others ( ** ) China<br />
International cement, RMC,<br />
aggregates and additives<br />
activities<br />
Kazakhstan<br />
All figures as of 31st December 2009, pro-forma for redenomination of <strong>Italcementi</strong> Finance S.A.<br />
(*) Controlling presence with significant minority interests<br />
(**) <strong>Italcementi</strong> is also present in Cyprus and Saudi Arabia, as well operating terminals in Albania, Gambia, Kuwait, Sri Lanka and Mauritania<br />
(grinding centre)<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
5
<strong>Italcementi</strong> <strong>Group</strong> country ranking and market shares<br />
Leadership positions in most group markets<br />
BELGIUM<br />
3 rd - 16%<br />
BULGARIA<br />
40% - 1 st TURKEY<br />
CANADA<br />
5 th - 8%<br />
6% - 5 th KAZAKHSTAN<br />
U.S.A.<br />
8 th - 4%<br />
15%<br />
MOROCCO<br />
2 nd - 26%<br />
2009 Revenues: Breakdown by Geography<br />
(after eliminations)<br />
5%<br />
13% - 4 th CHINA<br />
n.m.<br />
SPAIN<br />
FRANCE<br />
6 th - 6%<br />
2 nd - 33%<br />
India<br />
3%<br />
M o ro cco<br />
6%<br />
Other Emerging Markets,<br />
Trading & Others<br />
14%<br />
Italy<br />
17%<br />
6%<br />
13% - 4 th EGYPT<br />
3% - 5 th<br />
THAILAND<br />
INDIA<br />
ITALY<br />
1 st - 27%<br />
Egypt<br />
16%<br />
F rance<br />
27%<br />
Market Share in regions<br />
where the <strong>Group</strong> operates<br />
(<strong>Group</strong> estimates)<br />
N . A merica<br />
8%<br />
Other W.<br />
Euro pean<br />
M arkets<br />
9%<br />
30% - 1 st GREECE<br />
6% - 3 rd<br />
Source for 2008 market position: broker reports<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
6
ITC <strong>Group</strong> evolution in cement capacity, revenues and EBITDA<br />
Growing strategic exposure to emerging countries<br />
1996 2000 2004<br />
2008<br />
15%<br />
Cement<br />
Capacity ( * )<br />
35%<br />
46%<br />
52%<br />
Revenues<br />
11%<br />
14%<br />
16%<br />
36%<br />
(after eliminations)<br />
EBITDA<br />
recurring<br />
14%<br />
15%<br />
21%<br />
45%<br />
(*) Full capacity included for all shareholdings ≥ 33%<br />
Mature countries<br />
Emerging countries<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
7
Key Historical Financials<br />
Long term growth and resilience to downturn<br />
Revenues ( * ) (EURm) CAGR 96-09: +5.0% Rec. EBITDA ( * ) (EURm) CAGR 96-09: +4.4%<br />
20.9%<br />
24.5%<br />
24.1%<br />
23.1%<br />
24.7%<br />
23.4%<br />
1,447 1,404<br />
19.3%<br />
19.4%<br />
934<br />
1,091<br />
1,153<br />
1,113<br />
972<br />
556<br />
1996 2000 2004 2005 2006 2007 2008 2009<br />
Rec. EBITDA margin<br />
Cash Flow ( * ) (EURm)<br />
CAGR 96-09: +4.6%<br />
Net Financial Position ( * ) (EURm)<br />
641<br />
782<br />
786<br />
1,066<br />
918<br />
796<br />
722<br />
1,787<br />
1,736<br />
2,215<br />
2,210<br />
2,418<br />
2,679<br />
2,420<br />
402<br />
1,272<br />
1996 2000 2004 2005 2006 2007 2008 2009<br />
1996 2000 2004 2005 2006 2007 2008 2009<br />
(*) 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<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
8
AGENDA<br />
<strong>Group</strong> overview<br />
Q1 2010 <strong>Group</strong> Results<br />
Outlook & Actions<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca Analyst – Analyst Copenhagen Meeting – Roadshow, - 9 8 -07 March, May 2009<br />
2010 16 June 2010 9
Q1 2010 key results<br />
Continuing difficult market environment and unusually adverse weather penalize<br />
volumes and margins. Cash flow from operating activities remains good<br />
mt<br />
Cement and clinker volumes<br />
mt<br />
Q1<br />
2010<br />
12.3<br />
Q1<br />
2009<br />
13.0<br />
Var.<br />
10-09<br />
-5.0%<br />
FY<br />
2009<br />
55.7<br />
EURm<br />
Revenues 1,072 1,201 -10.7% 5,006<br />
EBITDA - recurring 136 189 -28.2% 972<br />
% on revenues 12.7% 15.7% -3.0p.p. 19.4%<br />
EBIT 24 65 -63.0% 443<br />
% on revenues 2.2% 5.4% -3.2p.p. 8.8%<br />
Net profit (9) 20 n.s. 215<br />
<strong>Group</strong> net profit (37) (13) n.s. 71<br />
Cash Flow from operating activities<br />
211 216<br />
-1.9%<br />
1,102<br />
EURm<br />
Net Financial Position<br />
31.03.10<br />
(2,361)<br />
31.12.09<br />
(2,420)<br />
Variation<br />
+59<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
10
Q1 2010 key actions<br />
On track with our cost savings plan<br />
Focus on cash generation<br />
Tight control on CapEx<br />
Continuing containment of Working Capital<br />
Debt management<br />
<strong>Italcementi</strong> Finance S.A. and EMTN issue<br />
Industrial network enhancement<br />
Started clinker production in India (Yarraguntla)<br />
New kiln fire-up in Italy (Matera)<br />
Shutdown of 3 Grinding Centres in Italy<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
11
Q1 2010 Sales volumes<br />
Persistent decrease of volumes in mature markets, but first signs of stabilization in<br />
March (cement & clinker: -1.1% overall vs. March 2009)<br />
Cement and Clinker (mt)<br />
Aggregates (mt)<br />
Ready-mix (mm 3 )<br />
Trading<br />
13.0(*)<br />
-5.0%<br />
+64%.<br />
12.3(*)<br />
2.5 -4.2%(***) 2.4<br />
Emerging<br />
markets<br />
-2.5%<br />
9.1 -10.7%(**)<br />
-17.8%<br />
8.1<br />
+5.9%<br />
-10.1%<br />
Mature<br />
markets<br />
-9.8%<br />
-10.6%<br />
31 Mar 09 31 Mar 10<br />
31 Mar 09 31 Mar 10<br />
31 Mar 09 31 Mar 10<br />
(*) Net of eliminations for 0.9 mt in 2010<br />
and 0.5 mt in 2009<br />
(**) -11% on a like-for-like basis<br />
(***) -7.2% on a like-for-like basis<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
12
Q1 2010 Revenues<br />
Decline of volumes compounded by price weakness in some countries<br />
Breakdown by Business<br />
(after eliminations)<br />
Breakdown by Area<br />
(after eliminations)<br />
(EURm)<br />
(EURm)<br />
1,201<br />
-10.7%<br />
1,201<br />
-10.7%<br />
Other<br />
Aggregates<br />
Ready-Mix<br />
-3.8%<br />
-9.6%<br />
1,072<br />
Other<br />
Trading<br />
-18.6%<br />
-33.0%<br />
1,072<br />
Emerging<br />
markets<br />
-5.3%<br />
Cement and<br />
Clinker<br />
-11.6%<br />
Mature<br />
markets<br />
-12.7%<br />
Variation L-f-L -9.7%<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
13
Q1 2010 recurring EBITDA<br />
EBITDA hit by volume and price effects, partially mitigated by continuing actions on<br />
fixed and variable costs. EBITDA decline across all areas<br />
Breakdown by lever<br />
Breakdown by area<br />
EURm<br />
EURm<br />
Of which:<br />
Fuels 18<br />
Power 3<br />
Clinker & Cement Purch. (9)<br />
Of which:<br />
CO 2 3<br />
Of which:<br />
Volume (29)<br />
Price (26)<br />
Fix/Variable costs 41<br />
Of which:<br />
Volume (7)<br />
Variable costs (6)<br />
Of which:<br />
Volume (5)<br />
Of which:<br />
Price (13)<br />
Of which:<br />
Maintenance 7<br />
Inventory variation 6<br />
Labour cost 2<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
14
Fuel and power costs cycle (y/y %)<br />
Still benefiting from favorable fuel cost trend from stocks effect. Ongoing drive<br />
towards consumption efficiency now showing on electricity too<br />
Fuel costs y/y trend by quarter<br />
Power costs y/y trend by quarter<br />
(*)<br />
(*) Cost of fuel consumed<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
15
Income statement (1/2)<br />
EBIT decline notwithstanding lower D&A and improvement in non recurring<br />
income/expenses<br />
EURm<br />
Revenues<br />
Of which<br />
Net Gain on sale of fixed assets 2<br />
Restructuring costs in Italy (4)<br />
Q1<br />
2010<br />
1,072<br />
Q1<br />
2009<br />
1,201<br />
Var.<br />
(129)<br />
% Var.<br />
-10.7%<br />
EBITDA - recurring<br />
136<br />
189<br />
(53)<br />
-28.2%<br />
% on revenues<br />
12.7%<br />
15.7%<br />
-3.0p.p.<br />
-<br />
Other non rec. income / (expenses)<br />
(3)<br />
(12)<br />
9<br />
n.s.<br />
EBITDA<br />
133<br />
177<br />
(45)<br />
-25.2%<br />
% on revenues<br />
12.4%<br />
14.8%<br />
-2.4p.p.<br />
-<br />
Amortisation and depreciation<br />
(109)<br />
(113)<br />
4<br />
-3.3%<br />
Depreciation of assets<br />
0<br />
0<br />
n.s.<br />
n.s.<br />
EBIT<br />
24<br />
65<br />
(41)<br />
-63%<br />
% on revenues<br />
2.2%<br />
5.4%<br />
-3.2p.p.<br />
-<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
16
Income statement (2/2)<br />
Net of one off USPP prepayment charges, financial expenses decline thanks to<br />
interest rate and volume effect<br />
EURm<br />
Of which<br />
Rate 6<br />
Volume 2<br />
USPP prepayment charges (22)<br />
Q1<br />
2010<br />
Q1<br />
2009<br />
Var.<br />
% Var.<br />
EBIT<br />
24 65 (41) -63%<br />
% on revenues<br />
2.2%<br />
5.4%<br />
-3.2p.p.<br />
-<br />
Financial income and expenses<br />
(37)<br />
(29)<br />
(8)<br />
+28.4%<br />
Adjustment to financial assets value<br />
0<br />
0<br />
n.s.<br />
n.s.<br />
Result of comp. valued with the equity method<br />
1<br />
1<br />
n.s.<br />
n.s.<br />
Profit before Tax (Pbt)<br />
(12)<br />
37<br />
(49)<br />
n.s.<br />
% on revenues<br />
-1.1%<br />
3.1%<br />
-4.2p.p.<br />
-<br />
Income tax expense<br />
4<br />
(17)<br />
20<br />
n.s.<br />
Net profit<br />
(9)<br />
20<br />
(29)<br />
n.s.<br />
% on revenues<br />
-0.8%<br />
1.7%<br />
-2.5p.p.<br />
-<br />
<strong>Group</strong> net profit<br />
(37)<br />
(13)<br />
(25)<br />
n.s.<br />
Minority interest<br />
29<br />
33<br />
(4)<br />
-11.9%<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
17
Cash flow<br />
Cash flow benefits from working capital reductions and moderating CapEx trend as<br />
strategic investments near completion<br />
EURm<br />
Of which:<br />
Strategic projects 46<br />
Net of EURm 196<br />
net receivable from Calcestruzzi<br />
Net of EURm 198<br />
net receivable from Calcestruzzi<br />
(2,679) 146 70 (171)<br />
(8) 4 0 (50) (2,689)<br />
NFP<br />
31.12.08<br />
NFP<br />
31.03.09<br />
(*) 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<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
18
Financial ratios*: Leverage, Coverage & Gearing<br />
Cash generation and financial prudence underpin solid ratios and investment grade<br />
rating<br />
Leverage<br />
Net Debt/<br />
Recurring EBITDA (LTM)<br />
Coverage ( ** )<br />
Recurring EBITDA (LTM) /<br />
Financial income-charges (LTM)<br />
Gearing (%)<br />
Net Debt/<br />
Shareholders’ equity<br />
LT Rating<br />
Outlook<br />
Last Action<br />
Moody‟s<br />
Baa2<br />
Negative<br />
20/7/09<br />
S&P<br />
BBB−<br />
Stable<br />
17/9/09<br />
(*) All ratios are net of Calcestruzzi figures<br />
(**) Q1 2010 financial income – charges net of USPP tender offer charges. Financial income - charges net of Turkey indemnity<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
19
AGENDA<br />
<strong>Group</strong> overview<br />
Q1 2010 <strong>Group</strong> Results<br />
Debt Management<br />
Outlook & Actions<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca Analyst – Analyst Copenhagen Meeting – Roadshow, - 9 8 -07 March, May 2009<br />
2010 16 June 2010 20
<strong>Group</strong> refinancing plan<br />
On the path towards a more centralized and efficient <strong>Group</strong> funding structure<br />
31 December 2009 Q1 2010 actions<br />
<strong>Italcementi</strong> S.p.A.<br />
EURm1,137<br />
r<br />
Set up ITC Finance as <strong>Group</strong> vehicle to centrally raise<br />
debt capital and back up facilities<br />
► Launched 2 EURbn EMTN program<br />
► On 16 March issued EURm 750 10 year bond<br />
<strong>Italcementi</strong><br />
S.p.A.<br />
Ciments Français<br />
S.A.<br />
<strong>Italcementi</strong><br />
Finance S.A.<br />
EURm 1,687<br />
o/w EURm 632<br />
dedicated to Intercompany<br />
Lending<br />
Refinance maturing facilities<br />
through intercompany loans<br />
► USPP notes tender offer closed on April 7; repurchased<br />
a total of $483.5M out of $500M<br />
► BdT outstanding reduced by EURm137<br />
Ciments Français<br />
S.A.<br />
Ciments Français<br />
affiliates<br />
EURm 341<br />
Continue to fund emerging market projects through<br />
local facilities for FX risk management<br />
Ciments Français<br />
affiliates<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
21
Debt breakdown and maturity profile (as of 31/03/ 2010)*<br />
ITC Finance EMTN issue strengthens debt profile with one extra year in average life;<br />
USPP prepayment in April begins reduction of external debt levels at CF<br />
EURm<br />
Gross Debt Breakdown by Instrument<br />
EURm<br />
Gross Debt Breakdown by Borrower<br />
3,491 ( ** )<br />
3,491 ( ** ) Average Life: 4.8 years<br />
64% of Gross Debt at 12/31/09, drops to<br />
46% proforma after USPP prepayment<br />
1,002 195 423 348 188 1,336<br />
1,002 195 423 348 188 1,336<br />
CF USPP prepaid 4/14<br />
(*) 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<br />
(**) Excluding MTM of derivatives instruments<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
22
Liquidity backup (as of 31/03/ 2010)*<br />
After bond issue, ample liquidity back up guarantees flexibility for well in excess<br />
of our two-year policy target<br />
Unutilized Backup Lines Maturity Profile<br />
Liquidity Backup vs. Maturing Debt<br />
EURm<br />
EURm<br />
2,570<br />
497 0 1,107 276 490 200<br />
3 years of liquidity<br />
backup<br />
Including USPP<br />
prepaid 4/14 with<br />
available cash<br />
(*) 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<br />
(**) Excluding MTM of derivatives instruments<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
23
AGENDA<br />
<strong>Group</strong> overview<br />
Q1 2010 <strong>Group</strong> Results<br />
Outlook & Actions<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca Analyst – Analyst Copenhagen Meeting – Roadshow, - 9 8 -07 March, May 2009<br />
2010 16 June 2010 24
2010: volumes and prices<br />
Low visibility for 2010, with likelihood of better H2<br />
MATURE COUNTRIES<br />
Domestic cement market outlook (2010 vs. 2009)<br />
Volumes*<br />
Prices**<br />
EMERGING<br />
COUNTRIES<br />
Volumes*<br />
Increase<br />
Stability<br />
Decrease<br />
Prices**<br />
Italy<br />
France<br />
Belgium<br />
Spain<br />
Egypt<br />
Morocco<br />
Bulgaria<br />
Turkey<br />
Greece<br />
North America<br />
(<strong>Group</strong> mkt Area)<br />
(*) Domestic market<br />
(**) Local currency<br />
Thailand<br />
India<br />
(<strong>Group</strong> mkt Area)<br />
China<br />
Kazakhstan<br />
ITC<br />
<strong>Group</strong><br />
Outlook<br />
<strong>Group</strong> sales volumes expected to remain stable or slightly increase overall<br />
Prudent view on average prices evolution, with uncertainty on degree of pressure<br />
in some countries (India, Bulgaria, Italy and North America)<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
25
2010 key goals<br />
We confirm our 2010 targets<br />
Cost<br />
Savings<br />
Working<br />
Capital<br />
Optimisation<br />
Provide additional structural savings also thanks to further industrial<br />
network rationalization<br />
► In Q1 closed 3 grinding centres in Italy<br />
► On track on all variable cost savings levers and ahead on fixed<br />
cost reduction<br />
► Strong contribution from fuels (EURm 19)<br />
Continue and reinforce all 2009 actions<br />
► Overall good results amplified by seasonal positive effect on<br />
receivables<br />
2010 FY Target<br />
EURm 100<br />
Q1 Results<br />
EURm 50<br />
2010 Target<br />
reduction<br />
of ~ EURm 50<br />
Q1 Results<br />
EURm 141<br />
Industrial<br />
Investments<br />
Curb total investment cash out, whilst remaining on track with our<br />
strategic guidelines<br />
► CapEx on main strategic projects in the quarter at EURm 46<br />
2010 Target<br />
CapEx<br />
EURm 620<br />
Q1 Results<br />
EURm 92<br />
Continue to<br />
► Reduce break even point<br />
► Focus on cash flow management<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
26
Update on major industrial projects<br />
Roll-out<br />
Q1 2010<br />
Q2 2010<br />
Q3 2010<br />
India<br />
Yerraguntla<br />
Italy<br />
Matera<br />
New Line<br />
2.3 mt/y<br />
cement equivalent<br />
capacity<br />
Kiln Revamping<br />
0.9 mt/y (+0.2 mt/y)<br />
cement capacity<br />
clinker production started in Q1<br />
grinding line ready in Q2<br />
kiln fire-up in Q1 (in advance vs.<br />
prior forecast)<br />
2.5 mt/y additional<br />
capacity available<br />
in Q2<br />
Morocco<br />
Ait Baha<br />
New Line<br />
2.2 mt/y<br />
cement capacity<br />
31% capacity increase in the<br />
country<br />
19 % variable costs reduction vs.<br />
old Agadir plant<br />
1.1 mt/y additional<br />
capacity available<br />
in Q3<br />
Roll-out<br />
… … H2 2012<br />
Bulgaria<br />
Devnya<br />
New Line<br />
2.7 mt/y<br />
cement capacity<br />
~20 % cement capacity increase<br />
Stepping stone to increase Eastern<br />
Europe exposure through a<br />
network of grinding centres<br />
Kiln fire-up<br />
not before H2 2012<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
27
Other initiatives for 2010 and beyond<br />
Cement<br />
Egypt<br />
2010 - Efficiency recovery plan to increase clinker production by 0.7 mt/y<br />
~ 2.0 mt/y legacy lines relocation plan under development<br />
India<br />
2011 - New grinding centre in Chennai<br />
Thailand<br />
2010 - Waste heat recovery<br />
Wind power<br />
Bulgaria<br />
First steps in the path towards the development of wind power initiatives in<br />
the Med Rim area<br />
Acquired 49% stake in Gardawind, a company with two wind farms of<br />
total 18 MW<br />
Turkey<br />
Balikesir wind farm project - Licenced capacity of 142.5 MW<br />
►Enhancing efficiency<br />
►Strengthening of our “green” mark<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
28
Conclusions<br />
Overall resilient Q1 2010 results in a very tough market environment thanks to<br />
continuing efforts to reduce both variable and fixed costs<br />
Poor visibility on 2010 market evolution; H2 2010 is expected to show better<br />
performances, but scenario remains difficult, with possible additional price<br />
pressure in some countries<br />
Additional savings will help to reduce negative pressure on operating results in<br />
the remaining part of 2010<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
29
Appendix 1<br />
Q1 2010 Results<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca Analyst – Copenhagen Meeting – Roadshow, - 8 -07 March May 2009<br />
2010 16 June 2010 30
Q1 2010 key figures by Area<br />
EURm<br />
Revenues EBITDA rec. % weight % margin<br />
Q1 ‟10 / Q1 „09 Q1 ‟10 / Q1 „09 Q1 ‟10 / Q1 „09 Q1 ‟10 / Q1 „09<br />
Central Western<br />
Europe<br />
543 / 619 49 / 58<br />
24% / 26%<br />
5% / 7%<br />
North America 62 / 74 (17) / (9)<br />
EEMENA 341 / 359 92 / 110<br />
78% / 72%<br />
24% / 29%<br />
►Continuing<br />
weak<br />
performances<br />
in Mature<br />
Markets<br />
Asia 95 / 108 14 / 27<br />
► Emerging<br />
remain resilient<br />
Trading Cement &<br />
Clinker<br />
65 / 49 3 / 3<br />
2% / 1%<br />
5% / 5%<br />
►Good<br />
contribution<br />
from Trading<br />
Others 98 / 95 (5) / 2<br />
-4% / 1%<br />
n.s. / n.s.<br />
Eliminations (130) / (103)<br />
Total 1,072 / 1,201 136 / 189<br />
100%<br />
13% / 16%<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010 31
Central/Western Europe<br />
EBITDA negatively affected by severe weather conditions and pressure on prices<br />
VOLUMES<br />
Q1<br />
2010<br />
Q1<br />
2009<br />
Var.<br />
10-09<br />
Var. like<br />
for like<br />
Cement and Clinker<br />
(kt)<br />
4,136<br />
4,569<br />
-9.5%<br />
-9.5%<br />
Aggregates<br />
(kt)<br />
7,368<br />
8,313<br />
-11.4%<br />
-11.4%<br />
Ready-mix<br />
(mm³)<br />
1,252<br />
1,394<br />
-10.2%<br />
-11.6%<br />
EURm<br />
REVENUES<br />
543<br />
619<br />
-12.4%<br />
-12.2%<br />
RECURRING EBITDA<br />
49<br />
58<br />
-15.6%<br />
-15.2%<br />
% REC EBITDA ON REVENUES<br />
9.0%<br />
9.3%<br />
-0.3p.p.<br />
-<br />
Q1 - Recurring EBITDA variation analysis EURm<br />
EBITDA decline driven by volume effect in<br />
France and Belgium<br />
Italy cost actions compensate price pressure<br />
Slight EBITDA improvement in Spain in spite<br />
of volume decline<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
32
North America<br />
Harsh weather conditions lead to a further deterioration of economic results. First<br />
signs of volume recovery in March (cement & clinker: -0.3% vs. March 2009)<br />
VOLUMES<br />
Q1<br />
2010<br />
Q1<br />
2009<br />
Var.<br />
10-09<br />
Var. like<br />
for like<br />
Cement and Clinker<br />
(kt)<br />
596<br />
676<br />
-11.8%<br />
-11.8%<br />
Aggregates<br />
(kt)<br />
185<br />
91<br />
+104.4%<br />
+49.5%<br />
Ready-mix<br />
(mm³)<br />
110<br />
129<br />
-15.0%<br />
-18.6%<br />
EURm<br />
REVENUES<br />
RECURRING EBITDA<br />
% REC EBITDA ON REVENUES<br />
62<br />
74 -17.4% -12.5%<br />
(17) (9) 85.8% 97.1%<br />
-27.9% -12.4% -15.5p.p. -<br />
Q1 - Recurring EBITDA variation analysis EURm<br />
Volumes still declining, but some market<br />
share recovering<br />
Fixed costs improvement offset by inventory<br />
(5)<br />
(1) (1)<br />
(3)<br />
0 1<br />
effect vs. 2009<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
33
Emerging Europe - Middle East - North Africa<br />
EBITDA decline driven by Egypt and Bulgaria<br />
VOLUMES<br />
Q1<br />
2010<br />
Q1<br />
2009<br />
Var.<br />
10-09<br />
Var. like<br />
for like<br />
Cement and Clinker<br />
(kt)<br />
4,759<br />
4,891<br />
-2.7%<br />
-2.7%<br />
Aggregates<br />
(kt)<br />
497<br />
554<br />
-10.3%<br />
-10.3%<br />
Ready-mix<br />
(mm³)<br />
883<br />
833<br />
+6.0%<br />
+0.3%<br />
EURm<br />
REVENUES<br />
RECURRING EBITDA<br />
% REC EBITDA ON REVENUES<br />
341 359<br />
92 110<br />
27.0% 30.6%<br />
-4.8%<br />
-16.1%<br />
-3.6p.p.<br />
-2.9%<br />
-13.7%<br />
-<br />
Q1 - Recurring EBITDA variation analysis EURm<br />
Volumes affected by slumping market in<br />
Bulgaria<br />
Negative margin impact from clinker<br />
purchases in Egypt to keep up with market<br />
demand in spite of capacity constrains<br />
Other markets stable<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
34
Asia<br />
Indian difficult market environment drives the poor economic performances of the<br />
Area<br />
VOLUMES<br />
Q1<br />
2010<br />
Q1<br />
2009<br />
Var.<br />
10-09<br />
Var. like<br />
for like<br />
Cement and Clinker<br />
(kt)<br />
2,521<br />
2,576<br />
-2.1%<br />
-2.1%<br />
Aggregates<br />
(kt)<br />
76<br />
143<br />
-46.9%<br />
-46.9%<br />
Ready-mix<br />
(mm³)<br />
162<br />
153<br />
+5.6%<br />
+0.2%<br />
EURm<br />
REVENUES<br />
RECURRING EBITDA<br />
% REC EBITDA ON REVENUES<br />
95 108 -11.9% -12.5%<br />
14<br />
27 -46.2% -47%<br />
15.1% 24.8% -9.7p.p. -<br />
Q1 - Recurring EBITDA variation analysis EURm<br />
Strong negative EBITDA impact from H2<br />
price war in Andhra Pradesh, even if signs of<br />
recovery are already visible<br />
Slightly negative EBITDA trends in Thailand<br />
and China offset by Kazakhstan<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
35
Q1 2010: revenues by country<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
36
Q1 2010: recurring EBITDA by country<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
37
Appendix 2<br />
FY 2009 Results snapshot<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca Analyst – Copenhagen Meeting – Roadshow, - 8 -07 March May 2009<br />
2010 16 June 2010 38
Income statement (1/2)<br />
Recurring EBITDA decline substantially in line with revenues.<br />
EBIT penalized by depreciation of assets for restructuring actions<br />
EURm<br />
Revenues<br />
Of which<br />
Net Gain on sale of fixed assets 26<br />
Restructuring costs in Italy (18)<br />
Restructuring costs in N.Amer. (10)<br />
Restructuring costs in Thailand (6)<br />
FY<br />
2009<br />
5,006<br />
FY<br />
2008<br />
5,776<br />
Var.<br />
(769)<br />
% Var.<br />
-13.3%<br />
EBITDA - recurring<br />
972<br />
1,113<br />
(142)<br />
-12.7%<br />
% on revenues<br />
19.4%<br />
19.3%<br />
+0.1p.p.<br />
-<br />
Other non rec. income / (exp.)<br />
(15)<br />
(10)<br />
(5)<br />
+45.2%<br />
EBITDA<br />
% on revenues<br />
Italy (21)<br />
North.America (10)<br />
Thailand (20)<br />
957<br />
19.1%<br />
1,103<br />
19.1%<br />
(146)<br />
0p.p.<br />
-13.3%<br />
-<br />
Amortisation and depreciation<br />
(460)<br />
(451)<br />
(9)<br />
+2%<br />
Depreciation of assets<br />
(54)<br />
(45)<br />
(9)<br />
+20.7%<br />
EBIT<br />
443<br />
607<br />
(164)<br />
-27.1%<br />
% on revenues<br />
8.8%<br />
10.5%<br />
-1.7p.p.<br />
-<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010 39
Income statement (2/2)<br />
Net of 2008 Turkey indemnity, financial expenses decline thanks to interest rate<br />
effect. Lower adjustments to financial assets value but decline in contribution from<br />
equity participation<br />
EURm<br />
Of which<br />
Rate 33<br />
Capitalized borrowing costs 9<br />
Volume (7)<br />
FY<br />
2009<br />
FY<br />
2008<br />
Var.<br />
% Var.<br />
EBIT<br />
% on revenues<br />
Financial income and expenses<br />
Adjustment to financial assets value<br />
Turkey<br />
indemnity 50<br />
Calcestruzzi<br />
(41) in 2009<br />
(42) in 2008<br />
Result of comp. valued with the equity method<br />
443<br />
8.8%<br />
(107)<br />
(41)<br />
15<br />
607<br />
10.5%<br />
(79)<br />
(125)<br />
25<br />
(164)<br />
-1.7 p.p.<br />
(27)<br />
+84<br />
(11)<br />
-27.1%<br />
-<br />
+34.5%<br />
-67.1%<br />
-41.9%<br />
Of which<br />
Cyprus (6)<br />
Canada (3)<br />
Profit before Tax (Pbt)<br />
% on revenues<br />
Goltas , Bursa (79)<br />
310 428 (118) -27.7%<br />
6.2% 7.4% -1.2 p.p. -<br />
Income tax expense<br />
(94)<br />
(151)<br />
+57<br />
-37.8%<br />
Net profit<br />
215<br />
277<br />
(61)<br />
-22.2%<br />
% on revenues<br />
4.3%<br />
4.8%<br />
-0.5 p.p.<br />
-<br />
<strong>Group</strong> net profit<br />
71<br />
143<br />
(71)<br />
-50.0%<br />
Minority interest<br />
144<br />
134<br />
+10<br />
+7.4%<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010 40
2009: response to the downturn exceeding our goals<br />
Management initiatives leading to an improved operating platform<br />
Cost<br />
Savings<br />
2009 Target<br />
EURm 220<br />
Fixed and variable cost<br />
cutting initiatives lead to<br />
a lower break-even<br />
point<br />
Achieved<br />
EURm 242<br />
Working<br />
Capital<br />
Reduction<br />
Inventories Trade Receivable Trade Payable<br />
Solid fuels action<br />
plan<br />
Clinker inventory<br />
control<br />
Spare parts<br />
inventory<br />
optimisation<br />
Focus on DSO<br />
in spite of<br />
difficult market<br />
conditions<br />
Renegotiation of<br />
payment terms,<br />
partially off-set<br />
by volume effect<br />
2009 Target<br />
EURm<br />
(170)/(190)<br />
Achieved<br />
EURm (380)<br />
Actions on working<br />
capital with positive<br />
impact on net financial<br />
position<br />
Investment<br />
Plan<br />
(CapEx +<br />
Equity)<br />
Strategic Projects Non Strategic Capex Equity Investments<br />
New state-ofthe-art<br />
capacity<br />
~7.4 Mt/y of<br />
which ~3.4<br />
Mt/y additional<br />
on stream by<br />
2010<br />
Strong<br />
selectivity<br />
No transaction<br />
waiting for better<br />
opportunities in<br />
2010<br />
2009 Target<br />
EURm(150)<br />
vs 2008<br />
Achieved<br />
EURm (245)<br />
Total spending<br />
contained, protecting<br />
investments targeted to<br />
efficiency enhancement<br />
in mature markets and<br />
capacity expansion in<br />
emerging markets<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
41
2009 recurring EBITDA<br />
EBITDA impacted by negative volume trend mitigated by strong actions on fixed and<br />
variable costs.<br />
EURm<br />
1,113<br />
Of which:<br />
Clinker & Cement Purch. 62<br />
Fuels 32<br />
Power (17)<br />
Raw Materials (10)<br />
Of which:<br />
Labour cost 28<br />
Maintenance 28<br />
972<br />
-12.7%<br />
EBITDA<br />
Recurring<br />
2008<br />
Volumes<br />
Prices<br />
Variable<br />
costs<br />
Fixed<br />
costs<br />
Inventory<br />
effect<br />
Other<br />
Scope<br />
and FX<br />
EBITDA<br />
Recurring<br />
2009<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
42
2009 cash flow<br />
Reduction of Net Debt even after strong organic growth investments thanks to strict<br />
control of working capital, containment of non organic growth and prudent <strong>Italcementi</strong><br />
S.p.A. dividend policy<br />
EURm<br />
Of which:<br />
Inventories 255<br />
Of which:<br />
Strategic projects 408<br />
vs. 303 in 2008<br />
Of which:<br />
<strong>Italcementi</strong> S.p.A. 53<br />
Egypt 31<br />
Ciments Français S.A. 19<br />
(2,418) 796 (154) (735)<br />
NFP<br />
31.12.07<br />
(253) 57 (171) 199 (2,679)<br />
NFP<br />
31.12.08<br />
(*) 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<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
43
2009: sales volume by business and by area<br />
AREA<br />
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<br />
31 Dec. 31 Dec.<br />
2009 2008<br />
D D L-f-L<br />
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%<br />
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%<br />
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%<br />
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%<br />
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%<br />
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%<br />
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%<br />
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.<br />
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%<br />
AREA<br />
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<br />
31 Dec. 31 Dec.<br />
2009 2008<br />
D D L-f-L<br />
Central Western Europe 8,313 11,064 - 24.9% - 24.9% 9,921 11,945 - 16.9% - 16.9% 8,659 10,860 - 20.3% - 20.3% 8,498 9,872 - 13.9% - 13.9% 35,391 43,741 - 19.1% - 19.1%<br />
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%<br />
MATURE COUNTRIES 8,404 11,135 - 24.5% - 24.7% 10,062 12,044 - 16.5% - 16.7% 8,875 11,035 - 19.6% - 19.6% 8,696 9,980 - 12.9% - 12.7% 36,037 44,194 - 18.5% - 18.5%<br />
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%<br />
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%<br />
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%<br />
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%<br />
AREA<br />
CEMENT & CLINKER (kt)<br />
AGGREGATES (kt)<br />
READY-MIX CONCRETE (kmc)<br />
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<br />
31 Dec. 31 Dec.<br />
2009 2008<br />
D D L-f-L<br />
Central Western Europe 1,394 1,905 - 26.8% - 26.8% 1,682 2,045 - 17.8% - 20.2% 1,495 1,780 - 16.0% - 17.7% 1,468 1,684 - 12.8% - 14.1% 6,038 7,414 - 18.6% - 19.9%<br />
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%<br />
MATURE COUNTRIES 1,523 2,043 - 25.5% - 26.2% 1,892 2,340 - 19.2% - 21.6% 1,737 2,105 - 17.5% - 19.2% 1,656 1,925 - 14.0% - 15.4% 6,808 8,414 - 19.1% - 20.7%<br />
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%<br />
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%<br />
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%<br />
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%<br />
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%<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
44
2009: revenues by country<br />
31 Dec. 31 Dec.<br />
% Var. 09-08<br />
EURm 2009 2008 actual like-for-like<br />
Italy 938 1,213 -22.6% -19.5%<br />
France/Belgium 1,530 1,749 -12.5% -13.3%<br />
Spain 227 300 -24.3% -24.3%<br />
Greece 83 97 -14.5% -14.5%<br />
Eliminations -24 -28 - -<br />
Central Western Europe 2,754 3,331 -17.3% -16.5%<br />
North America 401 500 -19.8% -24.3%<br />
Egypt 793 665 19.3% 15.5%<br />
Morocco 320 309 3.5% 2.6%<br />
Bulgaria 100 170 -41.2% -41.2%<br />
Turkey 132 215 -38.6% -30.3%<br />
Eliminations -1 0 - -<br />
Eastern Europe & Southern Med Rim 1,345 1,359 -1.0% -1.8%<br />
Thailand 161 200 -19.5% -20.6%<br />
India 172 188 -8.7% -3.5%<br />
China 47 32 45.0% 35.1%<br />
Kazakhstan 32 29 9.8% 27.7%<br />
Eliminations 0 0 - -<br />
Asia 412 450 -8.4% -6.3%<br />
Trading Cement & Clinker 253 371 -31.8% -36.6%<br />
Others & eliminations -159 -235 - -<br />
Total 5,006 5,776 -13.3% -13.6%<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
45
2009: recurring EBITDA by country<br />
EURm<br />
31 Dec. 2009<br />
31 Dec. 2008<br />
% on sales % on sales<br />
Variation<br />
09 vs. 08<br />
Italy 63 6.7% 90 7.4% -27 -29.9%<br />
France/Belgium 334 21.8% 380 21.7% -45 -12.0%<br />
Spain 42 18.6% 68 22.6% -26 -37.9%<br />
Greece 21 25.4% 28 28.4% -7 -23.6%<br />
Central Western Europe 460 16.7% 565 17.0% -105 -18.5%<br />
North America 13 3.1% 55 11.1% -43 -77.4%<br />
Egypt 262 33.1% 239 36.0% 23 9.5%<br />
Morocco 132 41.3% 95 30.8% 37 38.7%<br />
Bulgaria 26 25.9% 57 33.7% -31 -54.7%<br />
Turkey -6 n.s. 3 1.4% -9 n.s.<br />
Eastern Europe & Southern Med Rim 414 30.8% 395 29.1% 19 4.8%<br />
Thailand 22 13.8% 36 18.2% -14 -38.6%<br />
India 61 35.2% 64 34.2% -4 -5.9%<br />
China 9 18.9% -1 n.s. 9 n.s.<br />
Kazakhstan 4 11.7% 5 17.1% -1 -25.1%<br />
Asia 95 23.2% 105 23.4% -10 -9.2%<br />
Trading Cement & Clinker 15 6.1% 18 4.9% -3 -14.6%<br />
Others -26 n.s. -26 n.s. -1 3.1%<br />
Total 972 19.4% 1,113 19.3% -142 -12.7%<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
46
Investor Relations<br />
2010 calendar<br />
• H1 2010 Results – Conference Call<br />
July 30 th , 2010<br />
• Investor Day<br />
Morocco September 24 th , 2010<br />
• Q3 2010 Results – Conference Call<br />
November 8 th , 2010<br />
Contacts<br />
Investor Relations Department<br />
Via G. Camozzi, 124 - 24121 Bergamo - Italy<br />
www.italcementigroup.com<br />
Giancarlo Berera, Head of IR<br />
Tel. +39 035 39 67 51<br />
Fax +39 035 39 66 19<br />
E-mail: g.berera@italcementi.it<br />
Arturo Carchio, IR<br />
Tel. +39 035 39 68 66<br />
Fax +39 035 39 66 19<br />
E-mail: a.carchio@italcementi.it<br />
Raffaele Lupotto, IR<br />
Tel. +39 035 39 68 29<br />
Fax +39 035 39 66 19<br />
E-mail: r.lupotto@italcementi.it<br />
<strong>Italcementi</strong> <strong>Group</strong> Mediobanca – Copenhagen Roadshow, 16 June 2010<br />
47