TABLE OF CONTENTS. Worldwide overview. European Union overview. Italian industry overview. Company overview. Financials. Outlook

Transcription

1 April 2004

2 TABLE OF CONTENTS Worldwide overview European Union overview Italian industry overview Company overview Financials Outlook 2

3 Worldwide overview Turkey and Italy are the 7th and 8th world wide markets, respectively WORLD MAJOR CEMENT PRODUCERS (capacity( in M.Tons,, 2002) LEADING CEMENT EXPORTING COUNTRIES (M.Tons( M.Tons,, 2002) * ,23 // // 10,4 9 8, ,3 6 5,5 3,9 3,7 3,4 3 2,4 1,9 1,5 1,5 C h i n a In d ia J a p a n U S A R u s s i a S o u t h K o r e a T u r k e y It a ly T h a ila n d B r a z i l S p a i n Thailand Turkey Indonesia Japan India China Canada Taiwan Germany Korea Malaysia Italy Philippines France Spain * Source: AITEC

4 European Union overview From the 1993 cyclical low of 165 million tons,, the market grew to 192 million tons in 2002 Million Tons 210 CEMENT CONSUMPTION AND PRODUCTION DYNAMICS* % Change Consumption Production Consumption change YoY (Rh scale) Production change YoY (Rh scale) * Source: International Cement Review (Global Cement ReportNo. 5) 4

5 European Union overview CEMENT CONSUMPTION BREAKDOWN 1990 * CEMENT CONSUMPTION BREAKDOWN 2002 * OTHERS 14% FRANCE 15% GERMANY 16% FRANCE 11% UK 7% PORTUGAL 5% OTHERS 18% UK 9% PORTUGAL 4% SPAIN 17% GERMANY 15% SPAIN 23% ITALY 25% ITALY 21% * Source: International Cement Review (Global Cement Report n. 5) * Source: International Cement Review (Global Cement Report n. 5) CEMENT CONSUMPTION BETWEEN 1990 AND 2002 The cement industry in Western Europe is mature Only Spain, amongst large countries, increased its share of consumption Italy was the second largest market in Western Europe in

6 Italian industry overview: market share breakdown by region Cementir has 7.4% market share in Italy and 20% share in the South HOLCIM 6.5% CEM ENTI ZILLO 2.7% LAFARGE 2.8% SACCI 3.2% OTHERS 10.1% GRUPPO ITALCEM ENTI 30.3% CEM ENTI ROSSI 6.1% COLACEM 13.0 % GRUPPO CEM ENTIR 7.4% GRUPPO BUZZI UNICEM 17.9% TOP 3 PLAYERS PER MACROREGION * NORTH WEST ITALCEMENTI 26-28% MERONE (HOLCIM ITALIA) 23-25% 25% GRUPPO BUZZI UNICEM 18-19% NORTH EST ITALCEMENTI 26-28% CEMENTI ROSSI 16-18% GRUPPO BUZZI UNICEM 13-14% CENTER ITALCEMENTI 20-22% COLACEM 16-18% 18% CEMENTIR 12-13% ISLANDS ITALCEMENTI 30-40% GRUPPO BUZZI UNICEM 28-32% COLACEM 20-24% 24% SOUTH ITALCEMENTI 34-35% CEMENTIR 20-21% COLACEM 13-15% 15% *

7 Company overview: shareholders structure Caltagirone group is a family-controlled industrial concern operating mainly in Italy The group structure is based on 3 different businesses: Construction & Real Estate, Cement, Media Caltagirone Family 11% 7% 84% 34% CALTAGIRONE S.p.A. 4% Treasury shares Mkt cap: 579 Free Float: : 12% CONSTRUCTION CEMENT MEDIA Sales: 189 Mkt cap: 316 (avg) Free Float: 33% (avg) * Sales: 293 Mkt cap: 406 Free Float: 36% * Sales: 249 Mkt cap: 841 Free Float: 30% * 54% VIANINI LAVORI S.p.A 2% Treasury shares (General Contractor) 25% **** CEMENTIR S.p.A 2% Treasury shares (Italy) 97% 30% ** CALTAGIRONE EDITORE S.p.A. (Newspapers, Advertising, Internet) 36% *** 62% VIANINI INDUSTRIA S.p.A 5% Treasury shares (Water pipes/pilons) CIMENTAS.A.S. (Turkey) * Data 2003 * Includes 30% stake held by Mantegna 87 Srl, 100% controlled by Caltagirone S.p.A. *** 11% stake held by Mantegna 87 Srl,100% controlled by Caltagirone S.p.A. **** Stake held by Vianini Lavori S.p.A., S.I.L.M. S.p.A. and C.D.R. Srl 7

8 Company overview: strategy Progressive Dividend policy Pursuing growth in attractive new markets Dividends Paid to Shareholders - Euro (000) 9,547 9,547 9,547 7,902 4,741 6,321 Strong focus on core business (cement( cement) Ready-Mix Concrete 10% Cem ent 90% Focus on long-term value creation Share price CAGR of 12.7% since 1996 Price Q/CEMI.MI, Last Trade, Bar EUR 4/30/ Q/CEMI.MI, Close(Last Trade), MA /30/ Vol Q/CEMI.MI, Last Trade, VOL 4/30/ Milln 40M 30M 20M 10M 0 Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Ongoing commitment to cost efficiency EBITDA has increased from 11 m (1996) to 88 m (2003), representing an EBITDA CAGR of 34.5% m EBITDA m

9 Company overview: Italy Cementir is the 4th largest cement producer in Italy CEMENT PLANTS KILNS CEMENT MILLS NOMINAL CAPACITY Arquata Scrivia (North of Italy) 2 * tons Spoleto (Central Italy) 2 * tons Maddaloni (South of Italy) 2 * tons Taranto (South of Italy) 3* tons TOTAL tons * one temporary stopped CONCRETE PLANTS N OF PLANTS PRODUCTION CAPACITY Cement Plants Central/South of Italy m3/year Concrete Plants Head office 5,000 Actual capacity utilisation 100.0% 90.0% Distribution Centers 4, % 70.0% 3, % Actual cement capacity (000 t) 2, % 40.0% 30.0% Volumes, production (000 t) Utilisation (rh scale) 1, % 10.0% % 9

10 Company overview: Turkey Cimentas is the 7th largest cement producer in Turkey CEMENT PLANTS KILNS CEMENT MILLS NOMINAL CAPACITY Izmir (West of Turkey) tons Kars (East of Turkey) tons TOTAL tons CONCRETE PLANTS Aegean region (West of Turkey) N OF PLANTS 14 PRODUCTION CAPACITY m3/year Cement Plants Concrete Plants Head office 2,500 2,000 1,500 Actual capacity utilisation 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 1, % 30.0% 20.0% 10.0% Actual cement capacity (000 t) Volumes (production) Utilisation rh scale * % * Cement capacity from clinker produced internally, seasonally adjusted 10

11 Company overview: sales TOTAL SALES (FY 03) SALES BREAKDOWN ITALIAN SALES (FY 03) TURKEY 23% ITALY 68% EXPORT 9% 21.8% 50.8% 23.6% 3.7% North Italy Center Italy * South Italy Islands * Nation-wide presence with a bias on Southern Italy SALES BY DESTINATION ITALY TURKEY CONSTRUCTION 9% READY-MIX 36% OTHERS 3% READY - MIX 22% EXP ORT 6% OTHERS 13 % EXP ORT 46% PRE-MIX 2% WHOLES ALERS 34% AUTHORIZED DISTRIBUTORS 29% 11

12 Company overview: operating costs OPERATING COSTS SPLIT (FY 2003) 15% 31% Energy Raw Materials Services 24% 30% La b o ur Personnel Costs/Sales % Production (tons( tons.) /Personnel/ 30.0% % 20.0% 15.0% 10.0% 27.6% 22.8% 23.8% 25% 18.8% 20.1% 14.8% 13% 12.2% 11.3% 10.6% % % '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 ' '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 12

13 Company overview: profitability growth MILIONS EBITDA EBIT MILIONS EBITDA Margin EBIT Margin * EBITDA Margin and EBIT Margin are lower because of Cimentas acquisition 32.9% 35.8% 30.5% 29.9% 30.0% 26.5% 22.2% 20.2% 21.5% 21.6% 17.7 % 18.1% % 7.3 % 6.2% -9% * 2002 * 2003 * 13

14 Financials: FY 2003 and 2002 (EUR/000) YoY Revenues 292, , % Operating costs (173,787) (166,200) 4.6% Value added 118, , % Labour cost (31,042) (32,112) -3.3% EBITDA 87,774 84, % EBITDA Margin 30.00% 29.93% Depreciation (28,882) (28,517) 1.3% Other (costs) / revenues (6,034) (6,076) -0.7% EBIT 52,858 50, % EBIT Margin 18.06% 17.71% Financial (loss) profit 2,264 16,634 * -86.4% Extraordinary (loss) profit (15,237) ** (6,248)*** 143.9% Income before tax 39,885 60, % Taxes **** 20,477 (15,906) Net income before minorities 60,362 44, % M inorities (119) 704 Net income 60,243 45, % * Includes exceptional currency gains related to a loan (completely reimboursed). ** In 2003, exceptional charges of 6.8 m refer to tax amnesty (D.L. n. 282/2002 and L. 27/2003) which Cementir S.p.A took advantage of. The figure also includes the antitrust fine imposed by the European Commision ( 8 m). *** Includes exceptional loss related to sale of Cimentas non core assets. **** Deffered tax assets due to revaluation and devaluation calculated for fiscal purposes. 14

15 Financials: strong cash flow (Eur m) 70.7 m (20) m 6.8 m 3.2 m (15.4) m m (9.4) m 76.8 m Operating Cash Flow Tax * Capex Divestment of financial assets Real Estate disposal Dividend pay out Net Cash December 2002 Net Cash December 2003 * Group tax rate in the next 4 years is expected to be lower than 20% due to tax devaluation of Cimentas investment shares. 15

16 Financials: market multiples Adjusted firm value is only 2.6x historical Ebitda 406 m* 192 m (112,7 m) (61,3 m) 232 m Adjusted EV =1.2x Tangible Assets Tangible Assets 87,8 m Market Cap Net Cash Peripheral Assets Adjusted EV Adjusted EV Ebitda 2003 =2.6x FY % stake in Caltagirone Editore S.p.A.: 35 m * 1.6% own shares: 6.3 m * Real Estate: 20m Ebitda 2003 * As of April,

17 Outlook: Italy The return of public spending, as envisaged by the Government, should boost cement consumption, especially in Southern Italy. BREAKDOWN OF CEMENT CONSUMPTION GROWTH OF PUBLIC EXPENDITURE BY GEOGRAPHY 76.40% 83.60% 41.30% 35.80% 31.30% 33.10% 24.30% 29.70% 32.60% 32.80% 37.30% 34.40% 34.50% 36.10% 34.10% RESIDENTIAL NON RESIDENTIAL PUBLIC WORKS NORTH CENTER SOUTH/ISLANDS 13,042 m 5,237 m 11,349 m In the first 10 months of 2003, projects related to total public spending have increased by 63,3% from the comparable period of last year *. Source: Cofiri 2002 * Source: Il Sole 24 Ore December 5th, 2003 The European Union has included 4 Italian projects in the list of priority infrastructure investment (Torino-Lione railway, Genova-Milano-Gottardo railway, harbour infrastructure improvement, bridge over Messina channel). Volumes are expected to grow. Cement prices to remain stable/slightly decreasing, still below European average. 17

18 Outlook: Turkey Favourable economic growth prospects Rate of inflation decreased in the last 3 years 9.00% GDP GROWTH 7.80% % 88.90% RATE OF INFLATION 6.00% 5.00% 5.50% 80.00% 3.00% 60.00% 0.00% * 2004* 40.00% -3.00% 30.90% -6.00% 20.00% 13.90% 12% -9.00% -7.50% Source: European Central Bank * Expected 0.00% * * Governamental budget Favourable demographics: 40% of population is less Prices are increasing than 25 years old, current population is 70 million, expected to rise to 100 million in 2020 Huge backlog of infrastructure projects which should gather pace as soon as the country economic backdrop stabilizes CEMENT PRICES IN USD Cement volumes are expected to grow in

19 For further information INVESTOR RELATIONS Beniamino Natola Tel Fax Claudia Del Grosso Ronchitelli Tel Fax Contact Alessandra Crisari Tel Fax