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Financial Information - Uralita

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ANNUAL REPORT 2006<br />

FINANCIAL INFORMATION<br />

The <strong>Uralita</strong> Group. Management Report<br />

2006<br />

1. RESULTS<br />

The <strong>Uralita</strong> Group completed its 2004-2006<br />

Strategic Plan satisfactorily in 2006. It<br />

successfully carried out all planned non-core<br />

asset disposals with the sale in January of the<br />

Coverings Business, while it enhanced the<br />

operating efficiency of its four core businesses,<br />

bringing them into line with benchmark levels in<br />

their respective sectors. Net profit attributable to<br />

equity holders of the parent was €47.3 million,<br />

34.4% higher than the year before and a new<br />

record for the <strong>Uralita</strong> Group.<br />

Consolidated revenue totalled €1.005,2 billion.<br />

Foreign operations accounted for 52% of the<br />

total, outstripping domestic sales for the first<br />

time. Like-for-like revenue growth (i.e. stripping<br />

out the disposals of non-core businesses) was<br />

11.4%. Broadly speaking, the Group fared well<br />

in all its markets in 2006. In Spain, new<br />

construction saw a record 815,000 building<br />

permits (11.7% higher than in 2005), while in<br />

Germany the construction sector staged its longawaited<br />

rebound, growing 6%. Meanwhile, other<br />

Central and Eastern European markets remained<br />

buoyant. The blemish was the Portuguese<br />

residential construction market, which fell 5.7%<br />

from the year before.<br />

EBITDA in 2006 amounted to €178.2 million, a<br />

18.4% increase on 2005 despite the Group's<br />

smaller size. Like-for-like growth (i.e. exdisposals)<br />

was 39.6%. The consolidated EBITDA<br />

margin for the year was 17.7%, 4.1p.p. higher<br />

than in 2006, driven by wider margins in core<br />

businesses (+3.6p.p.) and the Group’s<br />

withdrawal from non-core and, generally, less<br />

profitable businesses (+0.5p.p.).<br />

Profit for the year was €70.6 million, a 31.7%<br />

gain despite the smaller business scope. The net<br />

profit margin increased significantly from 2005,<br />

to 7.0%, placing the Group at benchmark<br />

profitability levels within its industry.<br />

During the year, the <strong>Uralita</strong> Group cut net debt<br />

by €36 million to €104 million.<br />

2. RESULTS BY BUSINESS<br />

External conditions for the Insulation Business<br />

were positive, underpinned primarily by strong<br />

growth for insulation products in Central and<br />

Eastern Europe. This led to an imbalance<br />

between supply and demand in the glass wool<br />

segment, which enabled the Group to pass on<br />

the increase in raw material costs to end<br />

180

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