Building Mat a erials and Cons truction Cons Conference 2009

Transcription

1 BuildingMaterials and Construction BuildingMaterials and Construction Conference 2009

2 AGENDA 2

3 1.- GCPV HIGHLIGHTS Group CPV Focus in the service to people for a sustainable enviroment Services Solutions Customers Priorities Increase the Free Cash Flow Optimization of the overhead costs Consolidation of the EBITDA Margin 3

4 1.- GCPV HIGHLIGHTS CPV overide 9M09 its targets for 2009: Margin EBITDA :28,8%. Free cash flow after maintenance capex: 246,5 M. Savings, working capital reduction of demand and capex balanced the Plan 100. Group will be over the target for 2009: 65 M Notable increase in energy valorization in the period 4

5 AGENDA 5

6 2.-- GCPV EVOLUTION 2. U. KINGDOM 2 terminals HOLAND Trading TUNISIA MARKET LEADER USA & CANADA 1 plant of cement, cement concrete and 1 terminal 3º in East Coast in USA 3 plants of cement; 3 terminals; aggregates, concrete and waste deal SPAIN MARKET LEADER 8 plants of cement, 6 terminals, aggregates, concrete and mortar An integrated Group Cement Concrete Aggregates Mortar 15 Mt 12 plants of cement 7 Mm3 149 plants of concrete 23,8 Mt 50 q quarries 3,0 Mt 19 plants of Dry mortar Logistic 12 Terminals 6

7 2.- GCPV EVOLUTION Plant in Keystone. Pensilvannya Change from wet to dry process and others developments Included in GCHI group Working 2010 Capital expenditure change from wet to dry include: Increase the capacity up to 1 million clinker ston per year. + 40% Reduction of energy consumption Less variable costs. 25% New grinding facilities New storage for clinker and cement 7

8 2.- GCPV EVOLUTION Sales of activities in Latinamerica 50% in Cementos Avellaneda & Minus Inversora( Argentina ) 50% Cementos Artigas ( Uruguay) This activities were consolidated by the equity method Other 50% shareholder is Cementos Molins Buyer: Grupo Votorantim ( Brasil) Price: 135 M plus consolidated cash adjustment Cementos Molins has a preferential right for claiming the 50% No effect in EBITDA 8

9 AGENDA 9

10 3.- MARKETS. KEY FACTORS Evolution of cement consumption in Spain Market estructural adjustament done in 2008 & 2009 Average consumption per capita in line with European average Huge reduction of imports and less in domestic production Millions of t 60,00 50,00-39,4 % -22 Mt 40,00-21,1 % -6 Mt 30,00 Clear slowdown in demand decrease in last half 3Q09 better market perfomance than 1H09 20,00 10,00 1H09 0,00 New uptrend is expected in next years % of consumption provided by importers in en pp -7,9-11,8 10

11 3.- MARKETS. KEY FACTORS Evolution of cement consumption in Spain Last figures Figures in millions metric tones 9M09 % Var. 9M09/9M08 YTD % Var. YTD Cement consumption 21,8-36,8 30,0-37,1 Domestic production 22, ,9 30, ,8 Imports of clinker 1,4-70,0 2,1-70,9 Imports of cement 05 0, ,8 0, ,3 Exports 2,2 32,4 2,9 50,2 Source: Oficemen % Distribution of cement consumption in Spain YTD Domestic production Production with imported clinker 9M09 9M08 Var. 09/08 pp 87,8 76,7 +11,1 9,7 18,9-9,2 Imported cement 2,5 4,4-1,9 11

12 3.- MARKETS. KEY FACTORS Evolution of cement consumption in USA Market adjustment due to financial crisis is almost finished Stimulus plans provide better market expectations in 2010 Infraestructures and civil works launch the recovery Intensity consumption ratio growth anounce 2010 with 5% uprise in Internal demand GCPV expectations better in its market area Decrease of imports in en Mt - 54 MMT Added capacity in Mt 8,3 3,8 Source: PCA Portland Cement Association 12

13 3.- MARKETS. KEY FACTORS Evolution of cement consumption in USA Slowdown in 3Q09 of cement consumption decrease 2010 and after. Change in trend. Growth of demand % YTD variation Construction -16,6-2,9 14,9 Residential building -29,1 9,5 43,1 No residential building -13,6-18,2-2,1 21 Civil Works -4,9 3,6 2,9 % YTD variation Cement Consumption -26,3 5,2 16,5 Building -32,3-3,6 24,5 Civil works -20,2 12,6 10,8 Consumption intensitivy ratio t/.000$ -11,6 Source: PCA Portland Cement Association 11,6 9,9 1,5 13

14 AGENDA 14

15 4.- PLAN 100. Main targets STRONG REDUCTION OF COST CAPEX ADJUSTMENT DESINVESTMENT PROGRAME MORE EXPORTS The answer to on-going crisis Recurring savins: 100 Mn Global review: business & corporate Committed for further improvements Other improvementss: non recurrent savings and changes 50 M 15

16 4.- PLAN 100. Results M 70 Done To be done PLAN TARGET: 65 M DONE: 63,8M 20 TO BE DONE: 1,2 M 10 0 Energy Overhead Suppliers Logistic Maintenance External services More than 270 initiatives New added in maintenance, stocks and purchases. PLAN100 16

17 4.- PLAN 100. Results Improvement Flow of Funds Non-recurrent savings Stock External Cash Strong reduction adjusted to production for fitting the demand New negotiation model for suppliers and customers Unified management of tresury flow of funds TARGET M 17

18 AGENDA 18

19 5.- GCPV. 9M09 Results Figures in millions of 9M09 9M08 % Var. 3Q09 3Q08 % Var. Turnover 800, ,2-28,6 263,5 352,6-25,3 EBITDA 230,9 335,7-31,2 80,6 103,9-22,4 EBIT 113,1 204,3-44,6 40,7 54,2-24,9 Profit from cont. operations 61,6 164,5-62,5 24,8 46,4-46,6 EAT attributed to equity 35,0 95,9-63,5 14,4 28,0-48,6 % sobre Turnover 9M09 9M08 Var. pp 3Q09 3Q08 Var. pp EBITDA 28,8 29,9-1,1 30,6 29,5 1,1 EBIT 14,1 18,2-4,1 15,4 15,3 0,1 Profit from cont. Operations 7,7 14,7-7,0 9,4 13,2-3,7 EAT attributed to equity 44 4,4 86 8,6-4, ,5 79 7,9-2,

20 5.- GCPV. 9M09 Results Evolución of Turnover Figures in millions of SPAIN INTERNATIONAL 1.121,2-44,3-250,4 25,2-55,8 5,0 800,8 9M08 PRICE VOLUMEN PRICE VOLUMEN FX 9M09 20

21 5.- GCPV. 9M09 Results Evolution of margin EBITDA % Target % 29,9-1,06-0,20 0,16 28,8 9M08 VOLUMEN PRICE OTHERS 9M09 21

22 5.- GCPV. 9M09 Results Evolución of FCF after Capex Figures in millions of Target 2009 > 200 M 230,9 61,52-8,4-37,5 246,5 EBITDA Var. W.Capital Other Revenues & Expenses CAPEX Net of desinvestments FCF net of CAPEX 22

23 5.- GCPV. 9M09 Results 40 Evolution of margin EBITDA & FCF net of Capex (*) o/ Turnover Y-t-d % Margin EBITDA % Margin FCF net of capex mar-07 jun-07 sep-07 dic-07 mar-08 jun-08 sep-08 dic-08 mar-09 jun-09 sep % Acum Var. Turnover Base: Citi Building (*) NET OF Materials DESINVESTMENTS and Construction Conference London November

24 5.- GCPV. 9M09 Results % coverage % uncoverage M09 % Long term % Short term ND / EV ND / EQ 9M08 0, , ,61 1,35 % in % in currencies Net debt : M ,0 35,0 % Aging debt 29,0 39,0 30,0 25,0 20,0 15,0 10,0 50 5,0 9,0 18,0 5,0 0, y ss 24

25 AGENDA 25

26 6.- GCPV tomorrow. ENERGY European cement sector faces new targets in the Emisions Market: EU Act 2009/29/CE New assignment of CO2 rights by European Comision. Reduction of free assignment of CO2 rights to industrial sectors Assignment method based on sector benchmarking (draft under revision). 26

27 6.- GCPV tomorrow. ENERGY STRATEGIC POSITIONING ENVIRONMENT Dependency on petrol. Change in rules in EU. Post- Kyoto Loss of competitiveness. New Deal for cement sector STRENGTH Great background in managing wasted fuel and low cost for updated premises Sinergies with FCC and commitment with the enviroment GUIDELINES 1ª.- Technological Development to achieve reduction in consumption. 2ª.- Improvements with limited investment. Energy management system for efficiency. UNE Best procedures for savings in energy 3ª.- Use of own infraestructures for generation.developed technologies. Eolic. Sunpower. Hidraulic. New technologies: Heat from radiation. Cogeneration. Recicled emisions for power 27

28 6.- GCPV tomorrow. ENERGY CAPEX defined Licenced activities ready Alternative raw materials and fuels ready Production programe ready TARGETS : Year % Thermic substitution 30% 40% 70% Other countries USA: Giant (55% sust.: 5% biomass) / Keystone (47%: 0% biomass) Tunisia: starting phase for uprise alternatives 28

29 6.- GCPV tomorrow. R+D+i GUIDELINES Construction sector demands more functional qualities More added value in functionalities and focus on customers and civil works Cements for more enviroment requierements ( Green cement ) Earlier and higher resistances for lighter structures and mortars for soil estabilization ti Capture and storage of CO2 NEW CEMENTS Behaived on sustainability. Two new cements Target: absorb the soil polution due to heavy metals Afford more functionalities. New micro cements Target: land isolation, concrete for aggresive ontour and rehabilitation of estructures, oil sector, etc. 29

30 6.- GCPV tomorrow. OUTLOOK Markets: US market recovery in 2010 Spain. New trend expected 2H10 Extended Plan 100 in 2010 over starting target Better adjustment to new demand in Spain Reinforcing financial estructure with desinvestments More capex reduction in next years Better margins in US with Keystone launch 30

31 LEGAL NOTICE: DISCLAIMER This document has been done by Cementos Portland Valderrivas, S.A. (the Company ) only for its use during the presentation in the Citi Group Building Materials and Construction Conference in London and include aspects of the results corresponding to the third quarter of the financial year The information and any opinions and statements herein contained have not been verified by independent third parties and, therefore, no guarantee either express or implicit is given regarding the impartiality, accuracy, completeness or correctness of the information or the opinions and statements herein made. The Company or any of its assessors or representatives do not take any responsibility whatsoever by negligence or otherwise regarding any damages or losses arising from any use of this document or its contents. This document does not constitute an offer or an invitation to acquire or subscribe shares under the provisions of Spanish Law 24/ 1988, of 28 July on the Stock Market, Royal Decree Law 5/ 2005, of 11 March, and/or Royal Decree 1310/ 2005, of 4 November and their implementing regulations. Furthermore, this document does not constitute a purchase, sale or swap offer, nor a request for a purchase, sale or swap offer for securities, nor any request for a vote or approval whatsoever in other jurisdictions. This document or any part thereof does not constitute a document with a contractual nature and may not be used to integrate or construe any contract or any other type of agreement. STATEMENTS OR REPRESENTATIONS WITH FUTURE PROJECTIONS This communication contains information and statements or representations with future projections regarding Cementos Portland Valderrivas, S.A. Such representations contain forecasts and financial estimations with underlying assumptions, statements regarding plans, aims and expectations related to future operations, investments, synergies, products and services, and statements on future results. The representations with future projections are not historical facts and are generally identified by the use of terms such as expect, anticipate, believe, think, forecast and similar expressions. In this respect, although Cementos Portland Valderrivas, S.A. considers that the expectations contained in such statements are reasonable, the investors and shareholders of Cementos Portland Valderrivas, S.A. are warned that the information and the statements with future projections are subject to risks and uncertainties, many of which are difficult to foresee and are generally beyond the control of Cementos Portland Valderrivas,.S.A., and such risks may cause actual results and developments different from those stated, implicit or projected in the information and statements with future projections. Such risks and uncertainties include among others those identified in the documents sent by Cementos Portland Valderrivas, S.A. to the Comisión Nacional del Mercado de Valores (Spanish Stock Exchange Commission), which are available to the public. The statements or representations with future projections do no constitute any guarantee whatsoever of future results and have not been revised by the auditors of Cementos Portland Valderrivas, S.A. It is recommended not to take any decisions based on the statements or representations with future projections referring exclusively to the date when they were stated. The whole of the statements or representations for the future reflected below issued by Cementos Portland Valderrivas, S.A. or any of its Directors, officers, employees or representatives are specifically subject to the warnings made. The statements or representations with future projections included in this document are based on the information available at the time of this communication. Except for the extent allowed by the applicable law Cementos Portland Valderrivas, S.A. does not take any obligation whatsoever even when new data are published or new facts occur to update publicly its statements or to revise the information with future projections. 31

32 BuildingMaterials and Construction BuildingMaterials and Construction Conference 2009