2010 Annual Report - S&B

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€32 millionin sales16bauxite-basedproducts7bauxiteapplicationsin 15countriesBauxiteA conveyor belt facilitatesship-loading operationsat our bauxite storage sitein Itea, Greece.26 S&B Industrial Minerals S.A.
2010 Bauxite Salesby SegmentAlumina 60%2010 Bauxite Salesby Geographical AreaWesternEurope 83%Other 5%Iron smelting 12%CementIndustry 23%Other 1%North America 10%Eastern Europe 6%Operations for the BauxiteDivision in 2010 faced aserious challenge in keepingup with trends in demand. Thisresulted from critical delays faced inthe permitting procedures for someof our mines. Despite the earlysigns of demand recovery in almostall of our key segments, the delaysin permit approvals restricted ouraccess to some of our designateddeposits and constrained our miningoperations to very low activitylevels. As a consequence, our abilityto adjust our production capacityeffectively to the growing market requirementsthroughout 2010 wasseverely limited. However, after thesummer period, operating conditionsin specific areas improved, followingthe lifting of a temporarysuspension of operations by theHellenic Council of State in some ofthose areas. This enabled operationsto start a gradual return tomore normal production rates in thelatter part of the year.In spite of the challenges faced, theDivision achieved sales of €31.7 million,which represents an increaseof 4.9% compared to the previousyear. This increase is attributedmainly to the upward trend in thesteel segment in Germany and theU.S., which showed enhanced demandduring the first half of 2010,and the substantial growth in salesof our Sardinian bauxite to construction-relatedmarkets.In the alumina segment -accountingfor 60% of the Division’s turnoversalesremained fairly stable despitethe adverse effects of productionrestrictions.In contrast, sales revenues relatedto the cement market declined by16% compared to the previousyear, reflecting our limited ability toincrease production in order to satisfythe growing demand for calciumaluminate cements.In this adverse environment, we reactedquickly in an effort to mitigatethe effects from limited productionand resorted to the import of Sardinianand Turkish bauxite. Althoughthis helped us to partially satisfy ourcontractual obligations, it entailed increasedcosts. In addition, and dueto the uncertainty of the operatingenvironment, we adopted a moreconservative costing approach andalso accelerated depreciation chargesin the second quarter of theyear. All these factors had an acutenegative impact on profitability andresulted in EBITDA being slightly positiveat €1.1 million compared to€8.3 million in the previous year. However,accounting for depreciation,profitability was negative at approximately-€12 million.Looking ahead, production capacityis expected to reach normal levelsfor 2011, which will allow us tokeep up with market demand. Thelifting of the temporary suspensionof our mining activities in 2010, inconjunction with the progress observedin obtaining pending permitsfor certain key deposits, willenable our operations to return graduallyto the required production levels.Among the main efforts beingundertaken to speed up our processesis the exploration for newreserves and mine development,areas to which our capital expenditureis also directed. These effortsare supplemented by a systematicapproach to controlling costs andsustaining optimized working capitalrequirements.Our investment programme remainsin line with our long-termplan to develop a set of mines, allowingus to align production appropriatelywith market growthdrivers and also to effectively convertresources into mineable reserves.Finally, our strong focus onoptimizing production mix towardshigher margin products will enableus to improve our financial performance,strengthen our position inthe bauxite market and ultimatelycreate long-term business value.in € million4732301382008 2009 2010Sales EBITDA1Annual Report 201027
Page 1: RecapturingvalueAnnual Report 2010
Page 4 and 5: Raw materialsshipped to our plantat
Page 6: Our PurposeWe provide innovative in
Page 9 and 10: Recapturing valueFor our Group, 201
Page 11 and 12: 2010 2009 2008 2007SUMMARY P&L (€
Page 13 and 14: Sampling inthe Formsandlaboratory i
Page 15 and 16: 26mines46plants & processingunits26
Page 19 and 20: Management ReportSalesin € millio
Page 21 and 22: CEO successionEfthimios O. VidalisK
Page 23 and 24: Standard procedure ofraw material e
Page 25 and 26: Casting fluxes areexposed to severa
Page 27: ...to everyday livingCivil Engineer
Page 31 and 32: 2010 Bentonite Salesby Segment2010
Page 33 and 34: 2010 Continuous Casting Fluxes Sale
Page 35 and 36: 2010 Minerals Trading Salesby Segme
Page 37 and 38: 2010 Perlite Salesby Segment2010 Pe
Page 39 and 40: Sustaining Values2010 has been a ye
Page 41 and 42: 2010 at a GlancePeopleHealth & Safe
Page 43 and 44: The Board of Directors acts as the
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Page 47 and 48: Human Resources CommitteeIt consist
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Page 52 and 53: S&B is committed to creatingsustain
Page 54 and 55: GlossaryAluminous cements Cements c
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Page 58 and 59: 56 S&B Industrial Minerals S.A.This
Page 62 and 63: The Continuous Casting Fluxes (CCF)
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Page 66 and 67: Statement on Corporate Governance,
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76 S&B Industrial Minerals S.A.This
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ations where their local currency i
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(n) Investments and other financial
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(ii) Share Appreciation Rights (“
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sition by adjusting the relative as
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In summary, the fair values of iden
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The unaudited tax years of each Gro
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16. PROPERTY, PLANT AND EQUIPMENTPr
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Property, plant and equipment inclu
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20.INVESTMENTS IN ASSOCIATESInvestm
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22.RELATED PARTY TRANSACTIONSTransa
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Compensation of key management pers
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ury shares at an average price of
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Expense recognised in P&LThe cost o
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34.DERIVATIVE FINANCIAL INSTRUMENTS
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The table below summarizes the matu
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The following tables present sales
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110 S&B Industrial Minerals S.A.Thi
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This report is a publication of S&B
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2010 Annual Report - S&B

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