1. business and industrial
2. company
3. merger and acquisition

Group Presentation
G. Maggiora – Chief Financial Officer
Building & Infrastructure
Conference 2014
Bank of America Merrill Lynch
London, 8 October 2014
Il cementofono
al Maxxi per l’esposizione “do ut do”
Italcementi
4 maggioGroup
2012
Title
1
The Group at the end of 2013
Cement Capacity: 60 mt/y (*)
Cement & Clinker Sales Volumes: 43mt/y
Trading & Elim.
Asia
0.6
Asia
Central
Western
Europe
13
Central Western
Europe
10.5
14.5
22
Emerging
Europe,
North Africa,
Middle East
18
Emerging Europe,
North Africa,
Middle East
7
North
America
Revenues by Business: 4.2B€
Revenues by Geography
13.2
4.3
North America
Rec. Ebitda by Geography: 631M€
Trading & Others
Ready-Mix &
Aggregates
Cement
& Clinker
64%
6%
Asia
12%
Emerging
Europe,
North Africa,
Middle East
30%
Central Western
Europe
Asia
5%
13%
38%
21%
51%
Others
10%
North America
Central
Western
Europe
41%
Emerging Europe,
North Africa,
Middle East
9%
North
America
After eliminations
(*)
Excludes ~5mt/y capacity through companies consolidated at equity method
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
2
Key Historical Financials through long-term cycle
Revenues (M€)
Rec. EBITDA (M€)
64
65
Cement & Clinker mt
volumes (Dom. + Exp.)
63
56
56
52
5,854 6,001 5,776
39
5,006
5,000
32
24.5%
49
46
4,660 4,657
4,479
24.7%
23.1%
23.4%
19.3% 19.4%
18.1%
20.9%
43
15.1%
1,447 1,404
4,235
1,153
14.4%
1,113
972
934
842
701
2,656 3,811
643
631
2010 2011 2012
Rec. EBITDA margin
2013
556
1996
2000
2005
2006
2007
2008
2009
1996 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013
Investments (M€)
14.9%
Net Financial Debt (M€)
Leverage
870
710
2,679 2,420
2,418
400
380
2,215 2,210
2.3
230
1,787
-125
1,272
2,231
1.9
1.7
2.4
2.5
2.7
3.0
3.1
2,093 1,998
3.1
1,939
1.9
1.5
2008
2009
Capex to maintain
Disposals
2010
2011
Strategic Capex
Net Investments
2012
2013
Acquisitions
1996
2000
2005
2006
2007
2008
2009
2010
2011
2012
2013
Local GAAP before 2004. 2013 figures prepared in compliance with IFRS 19 and 2012 figures restated accordingly. NFP for YE 2004 considered as of 1st January 2005.
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
3
2013 vs. 2007 Group volumes and Rec. Ebitda
in Developed Markets
2013 vs.‘07 cement volumes %Δ: key markets
60%
Δ ITC Sales
40%
Δ Domestic Mkt
450
398
2007
2013
350
20%
0%
250
-20%
-40%
Rec. EBITDA in key countries – M€
-22%
-31%
-18%
-39%
-53%
-60%
-60%
-80%
-79%
Trough in 2009
13M€
266
192
128
150
89
50
-15
55
-3
-100%
France /Belg.
CAGR 07-10 -5.9%
CAGR 10-13 -0.3%
Italy
-9.9%
-13.8%
S./N. Spain
North America
-22.7%
-22.7%
-11.3%
+3.7%
Rec. Ebitda var. by driver – M€ (*)
2
310
(704)
Recurring
EBITDA 2007
(*)
Volume
(58)
258
(159)
Price
Variable
Costs
Fixed Costs
Other
Operating
Costs
Scope & FX
Recurring
EBITDA 2013
Domestic market refers to Italcementi market area
Industrial operations, excluding trading and other activities
Italcementi Group
France
/Belgium
Italy
Spain
North America
 North America already past cyclical trough
 France resilient with lower volume volatility
 Italy at Rec. Ebitda breakeven after strong network
restructuring
866
105
-50
 Volume effect key driver of mature markets
contribution to Group EBITDA
 Pricing power resilient to volume drop but insufficient
to offset variable cost inflation
 Strong reaction over the years targeting fixed and
variable cost base
Bank of America Merrill Lynch – London, 8 October 2014
4
2013 vs. 2007 Group volumes and Rec. Ebitda
in Emerging Markets
2013 vs.‘07 cement volumes %Δ: key markets
Δ ITC Sales
60%
40%
20%
Δ Domestic Mkt
Peak in 2010
271M€
231
5%
-3%
-20%
200
143
104
-33%
100
-60%
64
110
43
Egypt
Morocco
S. India
Thailand
0
Egypt
CAGR 07-10 +12.8%
CAGR 10-13 +0.7%
+4.4%
+0.7%
+7.1%
+1.4%
Of which:
Turkey
392
(337)
(134)
(73)
(47)
11
(75)
564
348
Volume
Price
Variable
Costs
Fixed Costs
Other
Operating
Costs
Morocco
India
Thailand
+1.6%
+8.5%
Rec. Ebitda var. by driver – M€ (*)
(*)
52
28
-80%
Recurring
EBITDA 2007
2013
300
28%
0%
-40%
2007
34%
30%
16%
47%
Rec. EBITDA in key countries – M€
Scope & FX
Recurring
EBITDA 2013
 Volume contraction mainly in Egypt (new entrants)
and Bulgaria
 Price actions compensate strong cost base
pressure driven by political climate (Egypt) and by
energy cost inflation (Asia)
 New plant drives strong improvement in results in
Morocco, despite new entrant
 Significant impact from scope (divestiture of
Turkey activities) and FX
Domestic market refers to Italcementi market area
Industrial operations, excluding trading and other activities
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
5
Short/medium term results improvement drivers
Industrial
Leadership
Growth
Innovation
Sustainable Development
Self help initiatives to
continue lowering
break-even point
Italcementi Group
Benefits from “core”
markets consumption
evolution,
including innovation in
products/services
Disciplined expansion
in selected markets
maintaining solid
financial profile
Bank of America Merrill Lynch – London, 8 October 2014
6
Self help: actions to reduce break-even
Constantly exceeded announced targets through industrial efficiencies, labor,
maintenance and other fixed costs reduction
2008-2014E Cost saving results - M€
675
610
65*
140
470
364
272
156
107
92
116
150
6
2008
2009
2010
2011
2012
2013
2014E
NB: does not include price variation (*) Net of 15M€ maintenance cost increase in Egypt
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
7
Capacity management
Ready to leverage available efficient capacity after recent investment cycle and continue
to focus on strengthening our industrial network
2013 Cement Capacity: ~60mt *
Outer circle: 2013 Cement and Clinker sales volumes: 43mt
Emerging Markets
13
 Leverage available
capacity
 Leverage existing
capacity through cycle
recovery
22
54%
 Address legacy wet
capacity
 Expand state-of-the-art
clinker capacity to
selectively follow
market growth
Mature Markets
14
10 54%
18
13
CWE
NA
 Reorganize excess
capacity where
necessary
7
4
EENAME
Asia
 Concentrate on core
plants, revamping where
necessary
Available capacity: ~17mt
(*) Excludes ~5mt/y capacity through companies consolidated at equity method
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
8
Capital allocation priorities
2014 focused on efficiency projects (key revampings, coal grinding capacity) and “assetlight” market coverage initiatives (cement grinding units, terminals), to continue in 2015.
Greenfield expansion to be timed in line with cash generation growth
Q4 2014
Q4 2014
Devnya
1.5mt/y
~ 160M€
Rezzato
1.3mt/y
~ 150M€
Q3 2014
Jorf Lasfar
Grinding
~15M€
T
B
D
Morocco
TBD
Shymkent
1.2mt/y
~ 60M€
Full Cycle Plant Revamping
Kattameya
and Suez
Coal Plants
~40M€
Greenfield Full Cycle Plant
Q4 2014
Light Investments
Efficiency Projects
H1 2016
Solapur
Grinding
~ 35M€
Cochin
Terminal
~ 8M€
Gulbarga
3.0mt/y
2
0
1
5
T
B
D
Operational availability
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
9
Project Centocinquanta completed
From 3 to 1 class of listed shares
Previous Structure
Current Structure
Italmobiliare
Italmobiliare
2.8%(3)
Ord.: 61.7% (1)
Sav.: 2.9% (2)
Italcementi
Ord. Shares: 177.1m
Sav. Shares: 105.4m
Ord.: 45.0%
Italcementi
Ordinary Shares:
349,270,680
84.0% (3)
100%
Ciments
Français
(1)
(2)
(3)
Ciments
Français
Net of treasury shares (n. 3,793,029)
Net of treasury shares (n. 105,500)
Net of treasury shares (n. 350,187)
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
10
H1 2014 Key Results
Revenue drop, on lower volumes and FX, but Rec. EBITDA and EBIT improved.
Non-cash, non-recurring below-the-line expenses weigh on Net Result.
NFP in line with expectations
H1 Rec. EBITDA variance analysis by driver – M€
Cement/clinker vol. (mt)
H1
H1
2014
2013
Chg vs.
13
Chg vs.
13 LFL
21.7
21.8
-0.5%
-0.5%
2,048
2,156
-5.0%
-1.8%
Recurring Ebitda
305
298
+7M€
+17M€
Rec. Ebitda margin
14.9%
13.8%
+1.0p.p
EBIT
100
78
+22M€
Net Results for the period
-80
-43
-36M€
to owners of parent (*)
-113
-85
-28M€
Cash Flow
164
193
-28M€
29
19
298
(3)
(20)
(11)
(8)
305
Of which :
CO2 sales: 12
M€
Revenue
-2,076M€
M€
Pro-forma
after P150
Net Financial Position
30.06.14
-1,852
31.12.13
-1,934
Recurring
EBITDA H1
2013
Volume
Price
Variable Costs Fixed Costs
Other
Operating
Costs
Scope & FX
Recurring
EBITDA H1
2014
H1 Cash Flow – M€
N.F.P.
31.12.13
Cash
Flow
WC
Change
CapEx
Equity
Invest.
Industrial
N.F.P.
& Equity
30.06.14
Divestm. Dividends Others ex. P150
(1,934)
Chg vs.
Dec. '13
+82M€
Equity CF PTO N.F.P.
Issue & St. Opt. 30.06.14
(1,852)
(2,104)
164
3
(**)
(245)
497
10
(275)
(2)
(**)
(37) (34)
(**)
(2,076)
proforma
(*) Reflecting 92.4% ownership of Ciments Français as of 30 June 2014
Italcementi Group
(**) Adjusted for effect of CF stock options cash-in
Bank of America Merrill Lynch – London, 8 October 2014
11
2014 Business Outlook Update
Cautious outlook maintained both in Italy and France. We have lowered our forecasts for
Thailand (political uncertainties). Overall outlook on prices maintained
Cement volumes and prices outlook (2014 vs. 2013)
Market
Volumes (*)
ITC
Prices (**)
Egypt
+1 / +5%
+15 / +20%
flat
Morocco
-1 / -5%
+1 / +5%
-1 / -5%
-1 / -5%
Bulgaria
+1 / +5%
flat
-1 / -5%
-1 / -5%
Thailand
-1 / -5%
+1 / +5%
+5 / +10%
flat
India
+1 / +5%
flat
+1 / +5%
+1 / +5%
Market
Volumes (*)
ITC
Prices (**)
Emerging Markets
Italy
-5 / -10%
-5 / -10%
France
-1 / -5%
Belgium
Spain
Mature Markets
(Group mkt Area)
Greece
(Group mkt Area)
North America
(Group mkt Area)
(*) Domestic market
(**) Local currency
+1 / +5%
+1 / +5%
Improvement in expected trend
Kazakhstan
Worsening in expected trend
Compared to May 2014 forecasts
Q2 2014 results do not modify our prior consolidated FY 2014 forecast
Improvement in Rec. EBITDA vs. FY 2013 (shifting risk and opportunity factors under active management)
Net Financial Debt higher than 2013 due to strategic investments but maintaining leverage under control
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
12
Appendix 1
Italcementi Group
H1 2014
Analyst
Analyst
Meeting
Meeting
-07
7 May
2009
Analyst
Meeting
––-8London,
March
Analyst
2010
Meeting
– 8 13
March
Bank of America
Merrill
Lynch
8 October
2014
13 2010
13
13
H1 2014 cement volume sales variance by country
Domestic + Export
Cement & Clinker
Italy
-1.5%
France - Belgium
-1.3%
Spain
+19.3%
Greece
+35.0%
North America
-4.8%
Bulgaria
-14.6%
Morocco
-3.8%
Egypt
+4.5%
Kuwait
-23.4%
Thailand
+4.2%
India
+4.9%
Kazakhstan
-27.3%
Total
-0.5%
ITC Cement
Domestic
Sales
-3.6%
ITC Cement
Domestic
Sales
+13.4%
ITC Cement
Domestic
Sales
-4.0%
ITC Cement
Domestic
Sales
+1.9%
ITC Cement
Domestic
Sales
+6.5%
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
14
Sales volumes by business
After positive Q1 (weather in Europe), moderately negative cement trend in Q2 mainly
due to F/B and Morocco. Egypt and India significantly strengthened Q1 improvement
while Thailand maintained its positive Q1 mid-single digit trend
Cement and Clinker (mt)
Cement and Clinker (mt)
by quarter
by Area
Aggregates (mt)
16.4
(*)
21.8
21.8
-0.5%
21.7
Trading
1.7
Asia
5.4
-0.5%
21.7
1.9
+2.6%
5.5
(*)
Asia
EENAME 1.1 0.0
0.7
NA
CWE
Q2
11.9
-2.2%
11.6
EENAME
6.9
NA
2.0
-0.5%
-4.8%
14.6
-6.3%
15.4
0.0
0.7
0.0
0.5
0.0
-2.9%
14.2
6.9
1.9
H1 2013
H1 2014
Ready-mix (mm3)
CWE
Q1
10.0
+1.7%
H1 2013
+1.1%
7.3
10.1
H1 2014
(*) Including eliminations for 1.8 mt in 2014 and 1.4 mt in 2013
Italcementi Group
7.2
6.3
H1 2013
(^)
-8.1%
(**)
5.7
Asia
EENAME
NA
0.5
1.4
0.3
-3.7%
0.5
1.3
0.3
CWE
4.1
-11.7%
3.6
H1 2014
-8.7% on a like-for-like basis – 2014 perimeter
H1 2013
H1 2014
Bank of America Merrill Lynch – London, 8 October 2014
15
Revenues
6.3% revenues decline in Q2 driven by volume effect (-4.3%) and 3.1% FX headwind
(INR, THB, EGP). Positive price trend mainly in Egypt and Thailand offsetting pressure in
Italy, F/B and Spain
Q2 Breakdown by Area – M€
Q2 2014 vs. Q2 2013 – M€
(after eliminations)
-6.3%
+1.0%
1,191
-4.3%
+0.1%
-3.3%
Others
Trading
1,116
-3.1%
Asia
1,191
19
41
145
-6.3%
-3.3%
-9.7%
+3.1%
-3.3%
EENAME
250
+5.5%
+9.7%
NA
128
-3.1%
+1.5%
CWE
609
Volume
Price
Forex
Perimeter
Italcementi Group
-2.7%
+0.9%
-5.0%
-3.3%
+0.1%
264
124
542
Q2 2014
H1 2014 vs. H1 2013 – M€
2,156
130
-10.9%
-10.9%
Q2 2013
1,116
20
36
2,048
Q2 2013
Q2 2014
Like-for-like
Bank of America Merrill Lynch – London, 8 October 2014
16
Revenue by country
M€
Q2 2014
Q2 2013
% Chg
14-13
H1 2014
H1 2013
Italy
163
184
-11.5%
298
France/Belgium
375
415
-9.6%
Spain
29
30
Greece
8
Eliminations
% Change 14-13
Actual
LfL
335
-10.8%
-10.8%
703
735
-4.3%
-4.3%
-4.4%
54
52
3.7%
3.7%
6
30.4%
15
11
29.1%
29.1%
-6
-4
-
-10
-8
-
-
Central Western Europe
570
632
-9.8%
1,060
1,125
-5.8%
-5.8%
North America
124
128
-3.1%
185
202
-8.3%
-4.3%
Egypt
155
134
15.2%
293
271
8.0%
16.1%
Morocco
85
91
-7.5%
161
171
-6.3%
-5.5%
Bulgaria
18
20
-9.1%
28
31
-8.7%
-8.7%
Kuwait
15
15
-1.5%
28
30
-6.6%
-3.2%
Saudi Arabia
2
1
113.8%
4
2
88.5%
-1.6%
275
262
4.8%
513
505
1.6%
6.1%
Thailand
64
67
-4.7%
133
134
-0.4%
13.5%
India
56
60
-7.4%
111
125
-11.2%
2.1%
Kazakhstan
12
17
-32.9%
15
25
-40.1%
-26.8%
Asia
131
145
-9.2%
260
284
-8.7%
4.9%
Trading Cement & Clinker
57
55
4.0%
102
93
9.5%
11.6%
Others
84
86
-1.9%
163
161
1.6%
1.5%
Eliminations
-125
-115
-
-234
-214
-
-
Total
1,116
1,191
-6.3%
2,048
2,156
-5.0%
-1.8%
Emerging Europe North Africa Middle East
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
17
Petcoke, Steam Coal and Oil
Petcoke, steam coal and oil market prices – USD
120
110
109
110
113
110
109
108
83
78
103
100
110
94
86
80
87
80
73
85
72
68
71
72
75
73
71
71
72
73
60
40
Petcoke: PACE Index (USD/t)
Steam Coal: API4 Index (USD/t)
Oil: Brent Index (USD/per barrel)
20
Q2'12
Italcementi Group
Q3'12
Q4'12
Q1'13
Q2'13
Q3'13
Q4'13
Q1'14
Q2'14
Bank of America Merrill Lynch – London, 8 October 2014
18
Fuel and power costs cycle (y/y %)
Fuel costs y/y trend
15%
Power costs y/y trend
20%
Price effect (+ negative; - positive)
Price effect (+ negative; - positi ve)
Efficiency effect (Fuel Mix + consumpt. per ton) (+ neg.; - pos.)
15%
10%
Efficiency effect (Consu mption var iance ) (+ neg.; - pos.)
10%
5%
5%
0%
0%
-5%
-5%
-10%
-10%
Q2'13
Q3'13
Q4'13
Q1'14
Q2'14
Q2'13
Q3'12
Q4'13
Q1'14
Q2'14
FY Fuel Mix
100%
50%
8.9%
11.1%
Alternative Fuel
18.7%
15.3%
Gas
6.3%
6.6%
32.6%
32.5%
Petcoke
0.2%
0.0%
HVF
33.3%
34.5%
Coal
H1 2013
H1 2014
Fuel-Oil
0%
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
19
Recurring EBITDA by country
Q2 2014
M€
Q2 2013
% on
% on
sales
sales
H1 2014
Change
14 vs. 13
H1 2013
% on
% on
sales
sales
Change
14 vs. 13
Italy
15
9.2%
13
7.1%
2
14%
15
4.9%
-9
-2.6%
23
n.s.
France/Belgium
72
19.1%
90
21.7%
-18
-20%
106
15.1%
127
17.3%
-21
-16%
Spain
4
14.0%
2
5.1%
2
162%
7
12.2%
1
2.1%
5
n.s.
Greece
1
16.2%
-1
-15.0%
2
n.s.
1
6.1%
-2
-20.4%
3
n.s.
Central Western Europe
92
16.2%
104
16.4%
-11
-11%
128
12.1%
117
10.4%
11
9%
North America
17
13.6%
19
14.9%
-2
-11%
-6
-3.3%
7
3.6%
-13
n.s.
Egypt
36
23.0%
29
21.7%
6
22%
64
21.7%
67
24.7%
-3
-5%
Morocco
36
42.5%
35
37.9%
1
4%
67
41.6%
72
41.8%
-5
-7%
Bulgaria
5
27.5%
4
17.9%
1
40%
7
26.3%
4
13.1%
3
84%
Kuwait
1
5.4%
1
7.9%
0
-33%
2
5.5%
2
8.3%
-1
-38%
Others
0
9.2%
0
16.7%
0
18%
0
8.8%
0
17.1%
0
-3%
Emerging Europe, North Africa and
Middle East
78
28.2%
69
26.3%
9
13%
140
27.2%
145
28.8%
-6
-4%
Thailand
14
22.3%
11
15.9%
4
33%
32
24.3%
20
14.8%
13
63%
India
3
5.7%
9
14.5%
-6
-64%
7
6.0%
19
15.6%
-13
-66%
Kazakhstan
1
4.6%
0
1.1%
0
n.s.
-1
-7.4%
0
-0.5%
-1
n.s.
18
13.7%
20
13.6%
-2
-8%
38
14.6%
39
13.8%
-1
-3%
Trading Cement & Clinker
3
5.1%
2
3.7%
1
43%
5
5.4%
4
4.3%
1
37%
Others and Eliminations
2
n.s.
-3
n.s.
5
n.s.
0
n.s.
-15
n.s.
15
n.s.
209
18.8%
210
17.6%
0
0%
305
14.9%
298
13.8%
7
2%
Asia
Total
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
20
Central Western Europe
Q2 – Rec. EBITDA variance analysis M€
(22)
Italy:
F/B:
0
(16)
(10)
(6)
10
10
Italy
10
10
7
(0)(0)
(22)
(0)
Of which :
104
104
CO2 sales: 10
Of which :
F/B:
(17)
Italy:
(5)
Recurring
EBITDA
20 13
13
90
Volume
Price
Va riable
costs
Fix ed c os ts
Ot he rs
Sc ope & FX Recurring
EBITDA
20 14
% Chg M€ Chg
14.1%
2
-20.2%
-18
of which
Italy
France/Belgium
9292
15
72
H1 – Rec. EBITDA variance analysis M€
YTD
117
-9
127
-17
-26
20
of which
Italy
France/Belgium
Italcementi Group
14
21
0
128
 Stable Rec. EBITDA in Q2 after Q1 improvement
 Volume decline continues, including ready-mix due
to delays in infrastructure projects, even if
substantially in line with expectations
 Prices in Q2 continue to suffer with almost same
trend in Q1
 Variable and fixed costs efficiencies thanks to lower
power tariff and 2013 restructuring actions
 Rezzato revamping on track to be completed by year
end with efficiency benefits expected in 2015
France / Belgium
 Market volumes moderately lower with pressure on
Public Works, unfavorable geographic mix for Calcia
and ready-mix market share
 Increasing price competition
 Unexpected extra maintenance cost and labor
relations issues
Spain and Greece
n.s.
-16.4%
23
-21
15
106
 In both countries Rec. Ebitda improves (5M€ in Q2
and 9M€ in H1) mainly driven by lower cost base
Bank of America Merrill Lynch – London, 8 October 2014
21
North America
Q2/H1 – Rec. EBITDA variance analysis M€
1
0
 After a strong negative Q1 due to harsh winter
conditions, Essroc’s mainland USA market
showing signs of volume recovery and
improving pricing trends
1
(4)
1
(1)
19
17
-xx%
Recurring
EBITDA
20 13
YTD
7
Volume
Price
Va riable
costs
Fix ed c os ts
-5
0
1
-11
Italcementi Group
Ot he rs
1
 Results penalized by ongoing weakness
(volume and price) in Canada and Puerto Rico,
compounded by CAD/USD translation
 Fixed costs adversely impacted by inventories
changes (negative impact vs. PY: 4M€ in Q2
and 6M€ in H1)
Sc ope & FX Recurring
EBITDA
20 14
0
-6
Bank of America Merrill Lynch – London, 8 October 2014
22
Emerging Europe, North Africa and Middle East
Q2 – Rec. EBITDA variance analysis M€
Egypt
26
(13)
(1)
0
(3)
(0)
2
69
Recurring
EBITDA
20 13
0
Of which :
CO2 sales: 1
Excluding
Egypt
Volume
Price
Va riable
costs
Fix ed c os ts
Sc ope & FX Recurring
EBITDA
20 14
% Chg M€ Chg
21.7%
6
3.7%
1
of which
Egypt
Morocco
29
35
Ot he rs
78
36
36
H1 – Rec. EBITDA variance analysis M€
YTD
145
67
72
-1
39
of which
Egypt
Morocco
Italcementi Group
-26
-13
0
-5
140
-4.9%
-6.9%
-3
-5
64
67
 Q2 positive performance mainly driven by favorable
bagged cement volumes and prices. Signs of
recovery also in bulk deliveries in June (+16%).
 H1 results remain slightly negative vs. H1 2013
(-3M€), but flat in local currency
 Coal grinding projects in Kattameya and Suez on
track with target to cover at least 35% of thermal
consumption with solid fuels by year end
Morocco
 In a still weak volume environment, Q2 Rec.
EBITDA almost flat mainly thanks to higher prices
(increase in June, will have full impact in H2) and
positive stocks effect (recovery of Q1 production
stoppages at Aït Baha)
 Jorf Lasfar Grinding Center completed beginning Q3
2014
Bulgaria
 Signs of recovery in the domestic market confirmed
in Q2 (double digit growth of cement volumes).
Devnya revamping on track to be completed by
December 2014
Bank of America Merrill Lynch – London, 8 October 2014
23
Asia
Q2 – Rec. EBITDA variance analysis M€
0
2
Thailand
1
(3)
1
(2)
Thailand:
3
India:
(2)
Kazakhstan: 1
20
Of which:
Thailand:
3
India:
(1)
18
Thailand:
1
India:
1
Kazakhstan: (1)
Recurring
EBITDA
20 13
Volume
Price
Va riable
costs
Fix ed c os ts
Ot he rs
 Rec. EBITDA continues to improve in Q2 even if at a
slower pace compared to Q1:
 more challenging base effect on prices
 stabilization in domestic sales volumes
 Variable costs continue to benefit from positive effect
of Waste Heat Recovery System in Pukrang
 FX effect remains negative at 2M€ in Q2 and
4M€ in H1
Sc ope & FX Recurring
EBITDA
20 14
India
% Chg M€ Chg
-63.7%
-6
33.5%
4
of which
India
Thailand
9
11
3
14
H1 – Rec. EBITDA variance analysis M€
YTD
39
19
20
1
6
of which
India
Thailand
Italcementi Group
2
-5
0
-5
38
-65.6%
63.4%
-13
13
7
32
 Ongoing margin pressure in India mainly driven by
adverse price dynamics vs. PY, in an inflationary
business environment
 Sequentially, however, prices trending higher, with
y/y flat prices target for FY confirmed
Bank of America Merrill Lynch – London, 8 October 2014
24
Income statement (1/2)
M€
Revenue
Recurring EBITDA
% on revenues
Other non rec. income / (expenses)
EBITDA
% on revenues
Amortization and depreciation
Impairment losses on non-current assets
EBIT
% on revenues
Italcementi Group
H1 2014
H1 2013
Change
% Change
2,048
2,156
-107
-5.0%
305
298
7
2.2%
14.9%
13.8%
-2
-5
3
ns
303
293
10
3.3%
14.8%
13.6%
-199
-212
13
-5
-3
-1
100
78
22
4.9%
3.6%
27.7%
Bank of America Merrill Lynch – London, 8 October 2014
25
Non-operating P&L items
Net Profit (Loss) result penalized by non-cash, non-recurring below-the-line items
H1 2014 – M€
• Funding costs at -50M€ vs PY -47M€ on spread effect
• Unfavorable volatility of FX, IRS and CO2 derivatives results,
at -9M€ vs +16M€
2
• -27M€ Impairment, of which 25M€ related to WCC
• +3M€ Results from Associates vs. PY -2M€, mostly thanks
to reduced losses in Cyprus
(203)
305
(75)
(24)
(81)
Rec. Ebitda
Other Non
Rec. Items
D&A
Fin.Exp.
(80)
Res. Of
Income Tax Profit (Loss)
Assoc. &
Expenses
Fin.Ass.Imp.
H1 2013 – M€
298
(5)
Italcementi Group
(215)
(45)
(11)
(65)
(43)
Bank of America Merrill Lynch – London, 8 October 2014
26
Income statement (2/2)
M€
H1 2014
H1 2013
Change
% Change
EBIT
100
78
22
27.7%
Net interest expenses on Net Debt & I.R. deriv.
-68
-58
-10
-17.0%
Other financial expenses, net
-7
13
-20
n.s.
Impairment of financial assets
-27
-9
-18
n.s.
Share of profit/(loss) of associates
3
-2
5
n.s.
Profit before Tax (PBT)
1
22
-21
-95.6%
Income tax expense
-81
-65
-16
24.2%
Profit (loss) for the period
-80
-43
-36
-84.6%
-113
-85
-28
-33.2%
34
42
-8
-19.7%
Of which: Owner of parent
Of which: Non-controlling interests
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
27
Financial Ratios
Net Debt / Recurring EBITDA (*)
(LTM)
GCF and RCF / Net Debt (*)
(LTM**)
3.75x
3.49
3.47
3.51
3.34
3.26
3.07
3.11
3.29
16.9%
16.9%
20.5%
20.4%
19.0%
18.2%
17.9%
17.7%
16.1%
19.2%
16.7%
3.26
14.4%
14.9%
13.2% 12.5%
12.1%
11.4%
14.2%
 Leverage pro-forma at
3.26x in June 2014 in line
with March 2014 (3.26x)
and June 2013 (3.29x)
notwithstanding higher
Capex
Leverage on reported NFD
(1,852M€): 2.91x
 Pro-forma GCF: 17.7%
GCF on reported NFD:
19.9%
 Pro-forma RCF: 14.4%
GCF / ND
RCF / ND
RCF on reported NFD:
16.2%
2014 figures prepared in compliance with IFRS 10-11-12 and IAS 28 and Q4 ‘13 figures restated accordingly
Jun-12Sep-12Dec-12Mar-13Jun-13Sep-13Dec-13Mar-14Jun-14
(*) June ‘14 ratios calculated on 2,076M€ Pro-forma NFD after completion of P150 transactions
(**) March and June 2014 GCF and RCF ratios based on reported figures
LT Rating
Outlook
Last Action
Moody’s
Ba3
Positive
31/07/14 (Outlook raised)
S&P’s
BB+
Negative
28/10/13 (Affirmed)
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
28
Liquidity profile as of June, 30 2014 – Pro-forma post P150
Credit Envelope below 4BN€ mainly thanks the new 450M€ 5-year syndicated revolving
credit facility replacing the existing 920M€ syndicated facility due to mature in September
2015. Debt average maturity at 3.5 years (3.7 years as of March 2014)
Credit Envelop Historical evolution | M€
6000
5,282
5,512 5,567
5,352
5000
4,638
2172
4000
2403
2362
Gross Debt* Maturity profile
Total 2,578M€ as of June 30, 2014
Average maturity: 3.5 years
(3.7y as of March 2014)
4,267 4,379
3,967
2238
1916
1682
365
3000
435
2000
630
10
1104
152
105
599
577
794
1000
909
292
158
540
672
284
1110
823
487
932
912
954
177
630
70
309
6
1285
1271
1253
1956
1388
94
204
337
38
75
271
357
126
1,750
1,750
0
Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec-13 Jun-14
Available Committed RCFs
Uncommitted Bank Lines
Utilized Committed RCFs
Other Bank Loans and Fin. Debt
Commercial Paper (BdT)
Bonds
(*) Face value of financial debt instruments, excluding accrued interests, fair value adjustments and MTM of derivatives as of June 2014
Pro-forma gross debt as per balance sheet equal to 2,706M€ in June ‘14 vs. 2,573M€ in December ‘13
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
29
Liquidity profile as of June, 30 2014 – Pro-forma post P150
Notwithstanding the credit envelope reduction, the extension of back-up lines maturity
has improved liquidity headroom to 2.5 years. That creates positive conditions for new
emissions replacing 2017-18 bonds
Credit Envelope Maturity Profile | M€
Liquidity Headroom | M€
920
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
30
Appendix 2
Italcementi Group
FY 2013
Analyst
Analyst
Meeting
Meeting
-07
7 May
2009
Analyst
Meeting
––-8London,
March
Analyst
2010
Meeting
– 8 31
March
Bank of America
Merrill
Lynch
8 October
2014
31 2010
31
31
Q4 and FY 2013 key results
Volume decline, but positive pricing, particularly in Q4. Back to positive EBIT after strong
negative impact from impairments in 2012. Net results still affected by non recurring
items. Small decrease in cash flow due to lower reduction in WC, but NFP improves
Q4
Chg vs. 12
LFL
2013
10.5
-7.2%
-7.2%
1,018
-6.0%
158
+23M€
15.5%
+3.1p.p
51
+359M€
2013
Cement and clinker volumes (mt)
FY
Chg vs. 12
Chg vs. 12
Chg vs. 12
LFL
43.1
-6.0%
-6.0%
-1.7%
4,235
-5.4%
-2.2%
+33M€
631
-12M€
+16M€
14.9%
+0.5p.p
159
+299M€
-88
+273M€
-165
+230M€
-61M€
0.06
0
non
recurring
0.06
0
430
-67M€
M€
Revenue
Recurring Ebitda
Recurring Ebitda margin on revenues
EBIT
Profit (loss) for the period
Profit (loss) to owners of the parent
-8
+371M€
-30
+326M€
DPS Savings €
M€
Net Financial Position
+55M€
ex. CO2 and
FX effects
Of which
DPS Ordinary €
Cash Flow from operating activities
+40M€
ex. CO2 and
FX effects
182
-102M€
31.12.2013
Chg vs.
Sept. '13
Chg vs.
Dec. '12
-1,939
+92M€
+59M€
Like-for-like: both scope and FX effects excluded
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
32
FY 2013 Cost Reduction results
Variable Costs
2013 Cost Savings
140
Other Fixed
Costs
Maintenance
Labor
Cost
28%
Variable Costs
72%
Fixed Costs
France – Belgium
 19M€ savings from fuel optimization (including Couvrot new
coal grinding system, started in Q4 2012)
Thailand
 WHRs delayed start-up in July: 4M€ savings
India, North America and Morocco
 Clinker production and logistic efficiencies and raw materials
optimization
FY13 Results
2013 Savings: Breakdown by country
Fixed Costs
Others, net
Headquarters
Egypt
Italy
Operational
Spain
France/Belgium
Group-wide FTE variation vs. FY 2012 is -891
(-4.7%) with a 5.6% positive impact on labour cost
Italcementi Group
Italy Operational
 Additional shut down of cement plants
 Rationalization of RMC network
Headquarters
 Further reduction in headquarters’ staff,
focused on managerial positions
From
~40M€ to
~70M€
steady-state
(2015
savings)
Egypt
 Strong savings in maintenance, expected to partially reverse
in 2014
Bank of America Merrill Lynch – London, 8 October 2014
33
“2015 Italy Plan”: industrial network rightsizing
First step (June-September 2012)
Sarche
 Pontassieve – 0.2mt/y sold
Calusco
 Vibo Valentia – 0.8mt/y kiln shut down
Trieste
Rezzato
Broni
 Porto Empedocle – 0.85mt/y kiln shut down
Monselice
Total affected capacity : 1.85mt/y
Second step (H1 2013)
1.3mt/y Rezzato
revamping
set to strengthen 2015
profitable presence in
North Eastern Italy
Novi L.
Ravenna
Borgo
Pontassieve
 Broni – 0.4mt/y kiln shut down
 Monselice – 1.45mt/y kiln shut down
 Trieste – 0.45mt/y kiln shut down
Scafa
Montalto
Total affected capacity : 2.3mt/y
Guardiaregia
Colleferro
Third step (H2 2013)
Matera
Salerno
 Vibo Valentia and Montalto – grinding activities shut down
 Scafa (0.4mt/y) full cycle plant and Broni and Monselice
grinding centres mothballed
Castrovillari
Samatzai
Total affected capacity 0.4mt/y
Vibo Valentia
6 Core Cement Plants
Isola d.F.
Other 4 non-core plants under CIGS scheme,
operating according to market volumes
(1.8mt/y capacity)
Italcementi Group
4 Small Mid Size Cement Plants
5 Grinding Centers
Mothballed plants
Porto Emped.
Disposal and full closure
Bank of America Merrill Lynch – London, 8 October 2014
34
FY Rec. EBITDA variance analysis by driver and by area
Industrial profitability (ex CO2 and FX translation) improved by 55M€, supported by price
and restructuring actions which more than compensate 97M€ negative volume effect.
Progress in all geographical areas, except flat Asia
Industrial Rec. EBITDA by area*
Δ y/y M€ / %
FY 2013 vs. FY 2012 – M€
+55 M€
+9.1%
of which :
Egypt:
(63)
(6)
of which :
Egypt:
97
643
+55 M€
+9.1%
(47)
658
49
+4.6%
(27)
(40)
+16.9%
+8.0%
631
13
8
(1)
-0.8%
16
n/a
19
39 101
603
156
Efficiency
actions
(97)
658
603
14.4%
margin
FY 2012
13.5%
margin
CO2
FY 2012 Volume
ex CO2
Italcementi Group
14.9%
margin
Price
Variable
Costs
Fixed
Costs
Other
FY 2013
ex FX
FX
FY 2013
FY 2012
ex CO2
CWE
NA
EENAME
Asia
Other FY 2013
ex FX
Bank of America Merrill Lynch – London, 8 October 2014
35
Central Western Europe
Positive contribution to Group results (mainly Italy) even stronger excluding CO2 effects
FY – Rec. EBITDA variance analysis M€
54
19
(20)
22
(1)
(68)
Of which :
Inventory: -18
238
Recurring
EBITDA
2012
-23
266
Volume
Price
Variable
costs
Fixed costs
244
Other
Scope & FX Recurring
Operating
EBITDA
Costs
2013
% Chg M€ Chg
-35%
8
-0.4%
-1
of which
Italy
France/Belgium
-15
266
-30
71
-12
5
2
16
of which
Italy
France/Belgium
 Positive price effect in France/Belgium
(17M€**) and Italy (12M€**), negative in
Spain (-7M€**)
 Positive variable cost effect driven mainly
by electricity tariff reduction in Italy
 Strong fixed costs reduction mainly in Italy
(2015 Action Plan) and Spain
 No sale of CO2 excess credits (-28M€ vs.
FY 2012)
Q4 – Rec. EBITDA variance analysis M€
Q4
34
 Another year of volume decline in cement
volumes (-9.3%* ) particularly in Italy
(-19.9%* / -48M€**). France/Belgium
negative (-2.5%* / -15M€**) but improving
trend in last two quarters (+3.7% in Q3;
+1.1% in Q4)
10
0
54
n.s.
-9.6%
24
-7
-6
64
(*) Cement & Clinker sales volumes (Domestic + Export)
(**) EBITDA effects, including RMC and aggregates
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
36
North America
Results improve both in Q4 and FY
FY/Q4 – Rec. EBITDA variance analysis M€
8
1
3
1
(2)
(5)
55
49
Recurring
EBITDA FY
2012
Q4
19
 Slightly positive volume effect (+1.5%* /
+1M€**) notwithstanding sluggish
Canada and Puerto Rico market
dynamics
Volume
Price
Variable
costs
Fixed costs
-3
2
-1
0
 Continuing positive price trend
 Fixed costs impacted by extraordinary
maintenance costs
 Positive 3M€ one-off insurance
proceeds in Q4
Other
Scope & FX Recurring
Operating
EBITDA FY
Costs
2013
5
-1
22
(*) Cement & Clinker sales volumes (Domestic)
(**) EBITDA effects, including RMC and aggregates
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
37
Emerging Europe, North Africa and Middle East
Excluding FX effect, stable FY results in Egypt and improving in Morocco
FY – Rec. EBITDA variance analysis M€
 Volumes: Morocco decline (-4.1%* /
-10M€) penalized by a weak Q1
(-16.6%*); Egypt (-17.6%* / -34M€**)
affected by fuel shortage in an unstable
political environment
112
(60)
4
(11)
(20)
(44)
287
Recurring
EBITDA
2012
268
Volume
Price
Variable
costs
Fixed costs
% Chg M€ Chg
-13.3%
-17
4.3%
6
of which
Egypt
Morocco
127
137
Other
Scope & FX Recurring
Operating
EBITDA
Costs
2013
110
143
 Spread on price/variable costs effects
remains positive mainly thanks to
strong price increase vs. PY in Egypt
(~20%)
 Other operating costs affected by:
 One-off insurance proceeds in Q3
2012 in Egypt (9M€)
 Lower CO2 sales in Bulgaria (13M€)
Q4 – Rec. EBITDA variance analysis M€
Q4
66
31
31
-7
30
-19
5
of which
Egypt
Morocco
0
-6
70
2.0%
10.6%
1
3
32
34
(*) Cement & Clinker sales volumes (Domestic + Export)
(**) EBITDA effects, including RMC and/or aggregates
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
38
Asia
Stable results excluding FX effects; different trend in India (-24M€) and Thailand (+21M€)
FY – Rec. EBITDA variance analysis M€
 Positive volume effect in all countries
but stronger in Thailand (+5.5%* /
+7M€**)
14
10
(6)
(12)
(7)
(5)
86
Recurring
EBITDA
2012
80
Volume
Price
Variable
costs
Fixed costs
% Chg M€ Chg
-45.5%
-24
70.4%
21
of which
India
Thailand
52
30
Other
Scope & FX Recurring
Operating
EBITDA
Costs
2013
28
52
Q4 – Rec. EBITDA variance analysis M€
Q4
21
10
11
1
6
-1
-3
of which
India
Thailand
-4
-2
17
-67.2%
34.0%
-7
4
3
15
 Positive price effect in Thailand
(+25M€) and Kazakhstan (+3M€) while
India remains under competitive
pressure (-14M€)
 Variable cost increase in India and
Kazakhstan. Positive impact from new
Waste Heat Recovery plant in Thailand
in H2
 Fixed costs increase due to
reactivation in March of Takli plant in
Thailand
(*) Cement & Clinker sales volumes (Domestic + Export)
(**) EBITDA effects, including RMC and aggregates
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
39
2013 Cash Flow
Net Debt well contained below 2B€ with 59M€ improvement vs. Dec. 2012
FY 2013
M€
N.F.P.
WC
31.12.12 Cash Flow Change
(*) CapEx
Equity
Invest.
Industrial
& Equity
Divestm. Dividends
Of which:
ITC S.p.A.
CF S.A.
Egypt
Morocco
(1,998)
Others
 Continuing strong control
on WC:
N.F.P.
31.12.13
 €40M June seasonal
securitization peak
reabsorbed
+59
(17)
(17)
(23)
(20)
(1,939)
33
 Ongoing attention on
CapEx, contained well
below Cash Flow from
Operations

(336)
396
38
(84)
(4)
15
 Dividend payment reduced
vs. previous year:
Of which:
CO2
40
 ITC SpA: -24M€
+95
FY 2012
(2,093)
384
N.F.P.
31.12.11
112
Approx €40M shift to
2014
(370)
(14)
129
(121)
(26)
 Egypt :-14M€
(1,998)
N.F.P.
31.12.12
(*) Including change in receivables and payables of 79M€ as of December 13 and -22M€ as of December 12
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
40
FY 2013 Revenue by country
M€
Q4 2013
Q4 2012
% Chg
13-12
FY 2013
FY 2012
Italy
154
183
-15.8%
655
France/Belgium
361
362
-0.2%
Spain
22
24
Greece
7
Eliminations
% Change 13-12
Actual
LfL
799
-18.0%
-18.0%
1,473
1,502
-1.9%
-1.9%
-8.3%
99
111
-10.7%
-10.7%
8
-13.3%
24
28
-14.7%
-14.7%
-5
-5
-
-17
-23
-
-
Central Western Europe
539
572
-5.7%
2,235
2,417
-7.5%
-7.5%
North America
98
108
-9.0%
429
440
-2.5%
0.7%
Egypt
130
141
-8.3%
499
564
-11.5%
3.5%
Morocco
77
76
1.1%
325
325
-0.1%
0.5%
Bulgaria
12
17
-25.7%
59
60
-0.4%
-0.4%
Kuwait
15
14
8.4%
57
56
1.7%
6.4%
Saudi Arabia
1
1
-17.1%
4
4
-3.7%
-0.6%
235
249
-5.7%
944
1,009
-6.4%
2.5%
Thailand
64
59
8.3%
269
228
18.1%
20.6%
India
47
57
-17.2%
214
249
-14.1%
-2.6%
Kazakhstan
9
11
-18.7%
49
44
11.2%
17.3%
Asia
121
128
-5.5%
532
521
2.1%
9.2%
Trading Cement & Clinker
37
54
-31.5%
176
213
-17.3%
-13.0%
Others
77
84
-8.8%
308
342
-9.9%
-8.8%
Eliminations
-89
-112
-
-389
-462
-
-
1,018
1,083
-6.0%
4,235
4,479
-5.4%
-2.2%
Emerging Europe North Africa Middle East
Total
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
41
FY 2013 Recurring EBITDA by country
Q4 2013
M€
Q4 2012
% on
% on
sales
sales
FY 2013
Change
13 vs. 12
FY 2012
% on
% on
sales
sales
Change
13 vs. 12
Italy
-6
-3.9%
-30
-16.5%
24
80%
-15
-2.3%
-23
-2.9%
8
-35%
France/Belgium
64
17.9%
71
19.7%
-7
-10%
266
18.0%
266
17.7%
-1
0%
Spain
-4
-17.1%
-5
-20.7%
1
24%
-3
-2.6%
-1
-1.1%
-1
-104%
Greece
-1
-11.5%
-2
-22.5%
1
55%
-4
-15.6%
-4
-13.5%
0
1%
Central Western Europe
54
10.0%
34
6.0%
19
56%
244
10.9%
238
9.8%
6
2%
North America
22
22.1%
19
17.5%
3
15%
55
12.8%
49
11.1%
6
13%
Egypt
32
24.4%
31
21.9%
1
2%
110
22.1%
127
22.5%
-17
-13%
Morocco
34
44.3%
31
40.5%
3
11%
143
44.0%
137
42.2%
6
4%
Bulgaria
2
15.9%
2
13.3%
0
-12%
9
15.9%
18
29.9%
-8
-47%
Kuwait
2
11.9%
2
12.0%
0
7%
5
8.7%
5
8.2%
0
7%
Others
0
-3.6%
0
12.1%
0
n.s.
0
8.7%
1
14.2%
0
-41%
Emerging Europe, North Africa and
Middle East
70
29.6%
66
26.4%
4
5%
268
28.4%
287
28.5%
-19
-7%
Thailand
15
22.6%
11
18.3%
4
34%
52
19.1%
30
13.3%
21
70%
India
3
7.2%
10
18.2%
-7
-67%
28
13.3%
52
20.9%
-24
-45%
Kazakhstan
-1
-8.0%
0
-2.0%
-1
n.s.
0
0.5%
4
7.9%
-3
-92%
Asia
17
14.3%
21
16.4%
-4
-18%
80
15.1%
86
16.5%
-6
-7%
Trading Cement & Clinker
1
2.9%
2
4.1%
-1
-51%
7
3.9%
9
4.2%
-2
-24%
Others
-5
n.s.
-8
n.s.
3
n.s.
-23
n.s.
-25
n.s.
2
n.s.
Total
158
15.5%
134
12.4%
23
17%
631
14.9%
643
14.4%
-12
-2%
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
42
Group Structure
Diversified activities
Holding company also operating
Italian cement activities
Italcementi S.p.A.
Ready-Mix and Aggregates in Italy
Group financing
Support activities
Power production
100%
100%
Calcestruzzi S.p.A.
Italcementi Finance S.A.
Italgen S.p.A.
100%
100%
Captive reinsurance
100%
Ciments Français S.A.
Société Internationale
Italcementi (Luxembourg) S.A.
Affiliates
E-business initiatives
R&D, engineering and technical support
50%
50%
France
Bulgaria
Belgium
Egypt(*)
Spain
Morocco(*)
Greece
India
U.S.
Thailand(*)
Canada
Kazakhstan
75%
CTG S.p.A.
Affiliates
Trading Co
15%
BravoSolution S.p.A.
Interbulk Trading S.A.
50%
Medcem S.r.l.
Shipping
85%
Others(**)
International cement, ready-mix and
aggregates activities
All figures as of 31st December 2013, with the exception of Ciments Français (as of 15 July 2014, after the completion of Italcementi tender offer)
(*)
Controlling presence with significant minority interests
(**) Italcementi is also present in Kuwait (terminals and Ready-Mix) and Mauritania (grinding centre and Ready-Mix); Albania, Gambia, Sri Lanka (terminals); Saudi Arabia (Ready-Mix); China, Syria and
Cyprus (minority stakes)
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
43
Country rankings and market shares
BELGIUM
3rd - 14%
31% - 1st
BULGARIA
KAZAKHSTAN
8% -
U.S.A. & CANADA
6th
1st - 20%
MOROCCO
SPAIN
2nd
14% - 4th
- 24%
7th - 6%
2013 Revenues by Geography (after eliminations)
Other Emerging Markets,
Trading & Others
7%
FRANCE
2nd - 30%
1st - 23%
Country ranking and market shares
in regions where the Group operates
(Italcementi estimates)
Asia
13%
15% - 1st
France
Belgium
35%
Egypt
11%
N. America
10%
INDIA
Italy
14%
Morocco
8%
ITALY
7th - 5%
THAILAND
8% - 3rd
EGYPT
GREECE
Other W. E.
Markets
2%
Source: Italcementi estimates based on brokers’ reports
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
44
Emerging market strategy: historical milestones
2.7mt/y in
Bulgaria
6.5mt/y in
Thailand
8.5mt/y
in Egypt
5mt/y
in Egypt
2mt/y in
China
1.1mt/y in
Morocco
Main Organic and Non-Organic Developments
1998-1999
2.0mt/y in
Kazakhstan
2001-2002
1.3mt/y in
Morocco
2005
2007
2010
3.0mt/y
in India
2.3mt/y
in India
2011-2012
3.0mt/y in
Turkey sold
2mt/y in
China sold (**)
Capacity Breakdown Evolution
1996
2000
2004
2013(*)
2008
15%
35%
Mature countries
(*)
(**)
46%
52%
52%
Emerging countries
Excludes ~5mt/y capacity through companies consolidated at equity method
In June 2012, 2mt/y capacity in China (Fuping) was sold in exchange for 6.25% stake in West China Cement
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
45
Disclaimer
This presentation contains forward-looking statements regarding future events and future results of Italcementi and its affiliates
that are based on the current expectations, estimates, forecasts and projections about the industries in which the Italcementi
Group operates, and on the beliefs and assumptions of the management of the Italcementi Group. In particular, among other
statements, certain statements with regard to management objectives, trends in results of operations, margins, costs, return on
equity, risk management, competition, changes in business strategy and the acquisition and disposition of assets are forwardlooking in nature. Words such as ‘expects’, ‘anticipates’, ‘scenario’, ‘outlook’, ‘targets’, ‘goals’, ‘projects’, ‘intends’, ‘plans’,
‘believes’, ‘seeks’, ‘estimates’, as well as any variation of such words and similar expressions, are intended to identify such
forward-looking statements. Those forward-looking statements are only assumptions and are subject to risks, uncertainties and
assumptions that are difficult to predict because they relate to events and depend upon circumstances that will occur in the
future. Therefore, actual results of the Italcementi Group or of its affiliates may differ materially and adversely from those
expressed or implied in any forward-looking statement and Italcementi Group does not assume any liability with respect thereto.
Factors that might cause or contribute to such differences include, but are not limited to, global economic conditions, the impact
of competition, or political and economic developments in the countries in which the Italcementi Group operates. Any forwardlooking statements made by or on behalf of the Italcementi Group speak only as of the date they are made. The Italcementi
Group does not undertake to update forward-looking statements to reflect any change in their expectations with regard thereto,
or any change in events, conditions or circumstances which any such statement is based on. The reader is advised to consult
any further disclosure that may be made in documents filed by the Italcementi Group with the Italian Market Authorities.
The Manager in Charge of preparing Italcementi S.p.A financial reports, Carlo Bianchini, hereby certifies pursuant to paragraph
2 of art. 154-bis of the Consolidated Law on Finance (Testo Unico della Finanza), that the accounting disclosures of this
document are consistent with the accounting documents, ledgers and entries.
This presentation has been prepared solely for the use at the meeting/Analyst Meeting with investors and analysts at the date
shown below. Under no circumstances may this presentation be deemed to be an offer to sell, a solicitation to buy or a
solicitation of an offer to buy securities of any kind in any jurisdiction where such an offer, solicitation or sale should follow any
registration, qualification, notice, disclosure or application under the securities laws and regulations of any such jurisdiction.
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
46
Italcementi Group
Investor Relations
2014 calendar
Contacts
 Q3 2014 Results Conference Call
November 10th, 2014
Investor Relations Department
Via G. Camozzi, 124 - 24121 Bergamo - Italy
www.italcementigroup.com
Giancarlo Berera,
Head of IR
Tel. +39 035 39 67 50
E-mail: [email protected]
Arturo Carchio, IR
Tel. +39 035 39 68 66
E-mail: [email protected]
Fabienne Moreau, IR
Tel. +33 1 4291 7758
E-mail: [email protected]
Italcementi Group
Bank of America Merrill Lynch – London, 8 October 2014
48