€94 millionin salesplants in 7countries1.000customizedsolutionsin 57countriesContinuous Casting FluxesBased on well calculatedrecipes the moving scaleautomatically selectsthe correct componentsfrom our raw material silos30 S&B Industrial Minerals S.A.
<strong>2010</strong> Continuous Casting Fluxes Salesby Segment<strong>2010</strong> Continuous Casting Fluxes Salesby Geographical AreaContinuousCasting Fluxes 81%NorthAmerica 25%WesternEurope 23%Asia 22%Metallurgicalactive slags 5%Coveringcompounds 14%EasternEurope 15%Other 1%Africa 3%SouthAmerica 11%Global steel production, akey business indicator forour CCF Division, continuedat the start of <strong>2010</strong> at the samehigh levels it had reached at theend of 2009. In the first 6 months,we witnessed the highest level insteel production ever recorded,with a peak of 125 million tons inthe month of May, while a very highlevel of approximately 115 milliontons per month was maintained forthe rest of the year.With our global production networkstrategically located close to ourcustomers, we were able to outperformthe momentum of globalsteel production, despite the persistenceof a highly challenging businessenvironment. As a result, wemanaged to grow ahead of themarket, increase market shares inall major steel-producing areas ofthe world and consequently attainsales revenues of €93.9 million.This is a record revenue level forthe division and represents an increaseof 44.6% compared to2009, while it is also higher by 7.4%compared to 2008.Responsiveness and flexibility enabledus to take full advantage of thequick economic recovery, as we focusedour resources and our effortson optimizing and further developingour business. Early in <strong>2010</strong>, weconsolidated our European granularflux production sites by successfullyrelocating production fromFrance to Germany, at the sametime maintaining all our customersthrough the transition process. Weimproved capacity utilization inIndia to serve the local market,which showed a 20% increase insteel production compared to2009. As a result, we were able todrive a 38% revenue increase fromour operations in that market. InBrazil, we also stepped up our investmentsto increase existing capacitythrough the addition of a newproduction line for desulphurisationmaterials. This is anticipated tostrengthen our market position,especially with our customer CSAof the ThyssenKrupp Steel group,which recently commissioned newoperating facilities in the area. Lastbut not least, in December <strong>2010</strong>,we commissioned new operatingfacilities in China, established jointlywith the Angang Industry Group,with which we entered into a longtermagreement at the start of <strong>2010</strong>to supply metallurgical fluxes underthe Stollberg brand for their steelproduction division.During the past couple of years –in2008 and 2009– we optimized thecost structures in all our operationsworldwide in order to adjust our businessto the global economicdownturn prevailing at the time. Thesustainable improvements realizedin profitability during <strong>2010</strong> vindicateour actions. Benefitting from soliddemand and strong operating leverage,our margins expanded significantly,driving EBITDA to €20.1million, a historic record for the CCFdivision and an increase of 106.7%compared to 2009.Global steel production in 2011 isexpected to continue at the samelevel as late <strong>2010</strong> and possibly trendupwards, as economic recoverycontinues worldwide. In the mediumterm, steel production mayreach pre-crisis levels by 2014,again with major growth occurringin the BRIC countries. With leadingmarket shares globally, we are wellplaced to capitalize on any opportunitiesthat arise to consolidate thecasting flux market. We will continueto invest in capacity increases, aswe did in <strong>2010</strong>, especially in highgrowth geographies. In addition, weare looking for opportunities to increasemarket share in covering materials,and to that end we areevaluating different processes andlocations. Last but not least, in recognitionof our ever-important customerrelationships, we have, andcontinue to develop, after-sales servicesthat help increase customerloyalty and profitability margins.in € million94876516<strong>2010</strong>2008 2009 <strong>2010</strong>Sales EBITDA<strong>Annual</strong> <strong>Report</strong> <strong>2010</strong>31
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