Financial Information - Uralita

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FINANCIAL INFORMATION ANNUAL REPORT 2006 customers. It also helped drive the XPS business. In all, revenue in the Insulation Business rose 12.7% to €495.9 million. EBITDA for Insulation Business surged 57.8% to €87.4 million, mostly fuelled by the increase in revenue and the cost savings derived from the restructuring of industrial, logistics and overhead costs in 2005 and 2006. The Gypsum Business posted revenue of €234.4 million, a 17.4% increase from 2005 thanks to steady increase in penetration of plasterboard in Spain and stronger commercial efforts to offer powdered gypsum customers higher value-added products. EBITDA for the business rose 18.1% to €69.1 million, underpinned by higher sales, the impact of measures to boost plant productivity and costcutting initiatives undertaken over the last two years. implemented in 2005 and carried out throughout 2006. Revenue advanced 3.0% to €168.6 million (+9.6% like-for-like), thanks to the increase in pipe volume sales as part of the new commercial strategy for the Business. This made it possible to partially pass on to sale prices the increase in the cost of PVC resin sustained in previous years. EBITDA totalled €11 million, with the EBITDA margin improving 4.1p.p. The growth in margins stemmed from lower production costs deriving from factory specialisation, higher plant utilisation and sizeable cuts in commercial and overhead expenses. 3. RESEARCH AND DEVELOPMENT In 2006, the Group spent €0.7 million on R&D projects. The Roof Tiles Business achieved a 44.1% increase in revenue in the year, to €102.9 million, largely thanks to the disposal of non-core assets. Like-for-like revenue was 2.7% lower, as activity in Spain was not enough to offset soft demand in the Portuguese market. EBITDA fell 28.2% to €17.0 million, but was 9.7% higher like-for-like. Increased plant utilisation in Spain and efforts to rein in overhead costs boosted margins for the business. The Pipes Business delivered a better performance thanks to the change in strategy 4. RISK MANAGEMENT <strong>Uralita</strong> mitigates its exposure to financial risk through an appropriate framework for the detection and prevention of risk within the Group’s Risk Detection System. Therefore, all the Company’s price, credit, liquidity and cash flow risk is periodically assessed, monitored and controlled. <strong>Uralita</strong> mitigates its exposure to financial risk through an appropriate framework for the detection and prevention of risk within the 181
ANNUAL REPORT 2006 FINANCIAL INFORMATION Group’s Risk Detection System. Therefore, all the Company’s price, credit, liquidity and cash flow risk is periodically assessed, monitored and controlled. In this respect, Group policy includes the use of derivatives to hedge its risks associated with interest rate and foreign currency fluctuations. 6. SUBSEQUENT EVENTS No material events have taken place between the date of the annual accounts and the date of their preparation. 7. OUTLOOK 5. TREASURY STOCK At 31 December 2006 no parent company shares were held as treasury shares and no transactions involving treasury shares were carried out in the year. Based on the projections of the Strategic Plan, the Group’s management forecasts a positive business outlook for the coming years. 182
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Financial Information - Uralita

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