CIMPOR Q1’12 Results Supportive emerging DNAweb3.cmvm.pt/sdi2004/emitentes/docs/FR39475.pdf · 2021. 2. 28. · CIMPOR Q1’12 Results | May 8th 3 Q1’11 market conditions and

CIMPOR Q1’12 Results

Supportive emerging DNA

CIMPOR – Cimentos de Portugal, SGPS, S.A.

May 8th, 2012

CIMPOR Q1’12 Results | May 8th

2

Contents

1 Q1'12 Highlights

2 Operations Review

3 Global Overview

4 Outlook

5 Governance Issues

6 Appendix - Regional contributions and Reporting data


3

Q1’11 market conditions and exceptional weather distort YoY comparisons.

Q1’12 beats Q1’10.

Iberia contraction, China slowdown and Turkey weather, drag Turnover by 5%,

despite 4% price increases and healthy Southern hemisphere.

Iberia reinforces exports while China is defied by lower demand and higher competition;

Brazil drives growth and returns, Morocco steps up, Mozambique stars;

Arab Spring settles.

EBITDA margin kept at top of industry 25%, despite 10% EBITDA YoY contraction.

No CO2 sales. Excluding Q1’11 CO2 sales, EBITDA fall limited to 5%.

Higher prices and “Best” cost cutting program interventions fight energy cost

increase and address lower activity.

Net Profit down to €49M also impacted by non operating items.

Investment grade and risk decoupled from Portugal’s sovereign.

Supportive emerging DNA handles Iberia downbeat


4

12010

142

54

405

58

548

Operating slowdown and Financials drag Net Profit

Turnover Operating

Cash Costs

Depreciations

and

Provisions

Taxes Financials Minorities Net Profit

-4.9% -3.0% -10.2% -7.5% 2.6% n.s. -15.4%

Q1’11

Q1’12

YoY Growth

EBITDA

8.9%

€ million

12011

128

521

393

49

50 ( ) ( )

( )

( ) ( ) ( ) ( )

Iberia, China and Turkey penalize operations.

Recent debt rollover at current spreads weakens financials by 9%.

Higher tax rate widens Net Profit contraction.

( )

( )


5

Contents

1 Q1'12 Highlights

2 Operations Review

3 Global Overview

4 Outlook

5 Governance Issues



6

-14% +9% -20% +63% -5% +6%

+12% -13% -40% +24% n.s. +204%. -10%

€ million

-13%

Med Rim

Iberia

& CV

Southern

Africa

Asia Other

9

(27) 7

(9) 5 (22)

(17)

YoY growth (%)

Brazil Consolidated

6

(14) 3

(9) 4 (14)

(4)

Despite price increase - sales contraction, ongoing turnarounds and

zero CO2 sales affect EBITDA.

Q1’12 Operations: Emerging DNA support

Brazil drives growth

and profitability.

Capacity upgrade

and higher

efficiency.

Focus on

investments.

Iberia: suffering

adjustment

programs; No CO2

sales given low

price.

Mozambique take-

off proceeds. South

Africa good quarter.

China dealing with

market changes

and operating

issues, while India

recovering from

recent competition

increase.

Turnover evolution

EBITDA evolution

Turkey tough

weather

conditions.

Egypt easing

turbulence..


7

€ million -5%

Q1’12

521

Asia: 7%

S. Africa:

12%

Iberia + CV:

27%

Brazil: 34%

Q1’11

548

Asia: 8%

S. Africa: 10%

Iberia + CV: 30%

Med Rim: 23%

Brazil: 31%

+6%

-13%

-14%

+ 9%

-20%

Other:

-2% Other:

-1%

Variation %

7

Med Rim: 21%

Price increases mitigated the

seasonality impact on

Turnover.

521

Q4’11

534

-2%

Q1’12

Br

Med

Ib

SA

A

+9%

-9%

+1%

-9%

-29%

Turkey long winter delays sales in positive

price context. Egypt operating constraints

and competition prevent growing with

market. Tunisia readjusts to natural market

share. Morocco demand growth starts

absorbing entrant.

Portugal rises exports by 60% overcoming

local demand contraction but diluting avg.

local price. Lower concrete and aggregate

activity. Spain: 7% price increase and

concrete sales mitigate cement demand

contraction (-33%).

Mozambique take-off: fierce demand

drives sales up 13%, competition drags

price (-16%). MZN up 18%. South Africa

Undefined local market trend. Lower

exports offset by 14% price increase.

Improving regional contribution.

China slowdown and new entrant harms

sales and prices (-26% and -18%

respectively). India recovering: growing

demand is accommodating recent entrant

and increased price by 12% YoY.

Brazil: supports results steady demand

growth. Higher local cement volumes sales

(7%). Stable prices.

Turnover down 5%,

despite Brazil and Southern Africa growth


8

Q1’12

393

Others

74%

Fuel: 16%

Power: 11%

Q1’11

405

Others

75%

Fuel: 15%

Power: 10%

-3%

Variation %

€ million

… offset by Power cost increase.

No CO2 sales penalizes costs.

8

9% cement power costs increase. 16%

tariffs increase offset higher efficiency

achieved. Heat recovery project in India

moves forward.

Slight (2%) cement fuel costs decrease.

Recent downward trend has already

been inverted.

No CO2 licenses sold vs €8M in Q1’11.

Cash costs – Best cost cutting effort…

393

-1%

Q1’12

Fuel: 16%

Power: 11%

Q4’11

397

Others:

73% Others:

74%

Fuel: 16%

Power: 11%

Lower activity enhances

proportion of fixed costs.

Preventing drop along

Turnover.

Best+ cost cutting program proceeds

focused on co-processing, logistics

and purchasing.


9

Asia: 5%

S. Africa: 10%

Iberia + CV: 25%

Med Rim: 24%

Brazil: 35%

Q1’11

142

Iberia + CV: 17%

Med Rim: 23%

S. Africa: 14%

-10%

Q1’12

128

Asia: -1%

Brazil: 44%

+12%

-13%

-40%

+24%

Other:

1% Other:

3%

€ million

Variation %

9

Despite seasonality EBITDA

resisted more than Sales,

fuelled by Brazil, Portugal,

Egypt and India.

Br

Med

Ib

SA

A

-6%

Q1’12

128

Q4’11

137

Br

Med

Ib

SA

A

+26%

-15%

-2%

-22%

+46%

Brazil: drives growth and profitability. Margin

up to 32%. Capacity upgrade fully utilized and

improving operations enhance momentum.

Egypt competition, operating constraints,

ongoing revamping and fuel shortages.

Morocco: competition prevents price

increase. Higher sales and low energy costs

improve EBITDA and drive margin up to 34%.

Tunisia corrects to natural activity level

keeping margin above 25%.

Iberia: lower activity and fixed cost dilution in

Spain. Price erosion due to Portugal

increasing exports weight. Restructuring

initiatives and no CO2 drag EBITDA.

Mozambique: despite price competition,

turnaround enhance demand impact. EBITDA

up 38%. MZN appreciates 18%.

South Africa: EBITDA up 21%: Mg at

40%.14% price increase and efficiency

improvement offset energy price increases.

China: tough market conditions and operating

issues prevent EBITDA generation. India is

recovering. Nevertheless, despite price

increase, higher energy and maintenance

costs affect EBITDA.

Iberia constraints hit EBITDA by 10%...

… while healthy South hemisphere overcomes China and Turkey


10

Q1’11 atypically strong. Q1’12 beats Q1’10, softening Turnover impact on EBITDA

The northern hemisphere winter season impact

Turnover (€M)

Q2 Q1 Q4 Q3 Q2

-2% -2% -6%

Q1 Q4 Q3 Q1 Q4 Q3 Q2 Q1

2009 2010 2011 2012

Cement and Clinker Sales (M ton)

Q4 Q3 Q2 Q1

-13% -8% -11%

Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 2009 2010 2011 2012

EBITDA (€M)

-6% -8% -17%

Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 2009 2010 2011 2012

*Q1 Averages excluding Q1’12.

5.9

521

128


11

-8.0%

Q1’12

5.9

Q1’11

6.4

Concrete sales

Aggregates sales

Cement and

clinker sales

Cement price

contribution at

constant Forex

Net Forex

contribution

(M tons)

-25.3%

-10.8%

Turnover

Excluding

Forex

Effect

Spain, China and Turkey drive cement sales down...

…despite Brazil, Mozambique, Morocco and Portugal increased volumes.

Fustigated aggregates.

+4.2%

-0.3%

Turnover

Decrease

YoY growth (%)

-4.9%

(m3)

(ton)

-4.6%

Lower activity offsets 4% price increase


12

26%29% 28% 26% 25%

Q1´11 Q2´11 Q3´11 Q4´11 Q1´12

Quarter

… upon markets flotation and interventions, supported by balanced portfolio.

17%

23%

14%

-5% -4%

28%

35% 35%

30%

21%25%

19% 15%15%

27%

30%

29%

28%

27%

30%

33%32%

27%

32%

Q1´11 Q2´11 Q3´11 Q4´11 Q1´12

Per

Region

Southern Africa

Asia

Brazil

Med Rim

Iberia

Quarter

Group

Iberia: no CO2 sales and higher exports. China - new market challenges

Cimpor top of industry EBITDA margin wobbling…


13

1200

21

601

(7)

Q1’11

142

Q1’12

128

Other

(2)

(8)

Trading

Shipping

(7)

(3)

Country by Country € million

128328

142

4

Others

(Lower

activity)

Staff costs

(1)

CO2

(8)

Cement

Power Costs

Cement

Fuel Costs

(1)

Turnover

(27)

Q1’12 Transport

costs Q1’11

Built up

EBITDA delta

Brazil and Africa drive returns.

CO2 absence and power costs penalize. Best+ offsets lower fixed cost

dilution


14

Contents

1 Q1'12 Highlights

2 Operations Review

3 Global Overview

4 Outlook

5 Governance Issues



15

Portugal; 15.0%

Morocco; 7.0%

Brazil; 36.0%

South Africa; 10.3%

Cape Verde; 0.6%

Trading/Shipping/Others; 3.7%

Last Twelve Months Contributions to EBITDA:

Emerging Markets

80% (1)

Emerging markets contributions

rise from 73% to 80%

Brazil and Southern Africa lead

contributions growth:

- Brazil: +4.6 p.p.

- Mozambique: +2.4 p.p.

- South Africa: +1.8 p.p.

Egypt turbulence justifies decrease:

-4.5 p.p.

Iberia deleveraging shows: -7.4 p.p.

Emerging profile generates EBITDA

(1) 84% in Q1’12


16

Higher interest rates and increasing weight of

Brazilian taxes

-11-10

+8.9%

Financial Results

Q1’11 Q1’12

€ million Maturing debt, contracted at

low historic costs. Rollover

suffers high “periphery”

spreads, despite S&P

decoupling.

YTD interest rate ease and

USD depreciation effect on

debt sustain Q1 Financials.

Taxes

Q1’11 Q1’12

€ million Income tax rate up 5pp to

29.7%.

Growing results

contribution from higher

taxes jurisdictions.

Tax benefits reduction.

2020

+2.6%

Financials and taxes


17 (1) ROCE calculation considering average Capital Employed

Avg. Capital Employed ROCE (1)

3,784.9

7.0%

3,816.6

8.4%

-0.8%

-1.4p.p.

Iberia and China, interests and higher

tax rate affect P&L

€ Million Q1'12 Q1'11 %chg. Q4'11 %chg.

Turnover 521.2 547.7 -4.9% 534.3 -2%

Operational Cash Costs 393.2 405.3 -3.0% 397.5 -1.1%

EBITDA 128.0 142.4 -10.2% 136.8 -6.4%

EBITDA Margin 24.6% 26.0% -1.45pp 25.6% -1.05pp

Depreciations & Provisions 49.7 53.7 -7.5% 69.4 -28.4%

EBIT 78.3 88.7 -11.8% 67.4 16.2%

Net Financial Results (10.7) (9.8) 8.9% (31.8) -66.2%

Net Profit before taxes 67.6 78.9 -14.3% 35.6 89.8%

Corporate tax 20.0 19.5 2.6% 20.6 -2.8%

Net Profit 47.5 59.3 -19.9% 15.0 217.4%

Minorities (1.5) 1.5 -200.1% (2.4) -38.6%

Net Profit after minorities 49.0 57.9 -15.4% 17.3 182.5%

Summary of Profit & Loss Statement


18

Steady ongoing investments addressing future growth

68 69

105 7

39

80

Other

16

Asia

3

Southern

Africa

11

Iberia

5

MedRim

16

Brazil

17

Q1’12

Consolidated

Q1’11 € million

Brazil: capacity

increases

underway.

Waste heat

recovery India.

Egypt: Ongoing

clinker line

revamping and

mill overhaul.

Tunisia: bag

filters.

Iberia:

sustainability

investments.

Mozambique:

New mills

Nacala (CINAC)

and Matola

Souselas

ship

Capex per Region

Mozambique:

New Dondo mill


19

Cash Flow analysis

€ million

2 31

5

(69)

(1)

(6)

(12)

(14)

(3)

Net Debt up €31M

EBITDA

Non cash

and non

operating

EBITDA Taxes

Changes

in

Working

Capital

Divest.

and

Invest.

Income

Net

interests

Capex Financial

Invest. Dividends

and Capital

Changes

Net Cash

Flow =

Impact in

Net Debt

Free

Cash

Flow

Cash Flow

from

Operating

Activities

128

107

98


20

No assets change

Among industry strongest Balance Sheets

€ Million Q1'12 Dec'11 % Chg.

Assets

Non-current Assets 3,848 3,867 0%

Current Assets

Cash and Equivalents 615 610 1%

Other Current Assets 781 760 3%

Total Assets 5,244 5,237 0%

Shareholders' Equity attributable to:

Equity Holders 2,030 1,983 2%

Minority Interests 98 101 -3%

Total Shareholders' Equity 2,128 2,084 2%

Liabilities

Loans 2,169 2,208 -2%

Provisions 208 225 -8%

Other Liabilities 739 720 3%

Total Liabilities 3,116 3,153 -1%

Total Liabilities and Shareholders' Equity 5,244 5,237 0%

Summary of Consolidated Balance Sheet


21

€1Bn Liquidity: €615M consolidated cash position; €467 unused credit lines. EMTN programme ready for markets opening. Extended €300M loan maturity. Credit lines converted in MLT bank deposits. Average debt maturity : 2.6 years. Current cost of debt: 4%. Financial ratios well within covenants:

Net Debt/EBITDA < 3.5

EBITDA/ Net Finance Expenses >= 5

(1) USPP disclosure criteria (LTM)

Net Debt (€ Million)

Net Debt/EBITDA(1)

Net Debt/EV

EBITDA/Net Financial Expenses(1)

1,585

2.63x

32%

6.9x

Mar’ 12

Financing growth capex despite financial markets turbulence

Stable indebtedness relative to EBITDA

Investment Grade credit profile

1,623

2.63x

31%

7.7x

Dec’ 11


22

Contents

1 Q1'12 Highlights

2 Operations Review

3 Global Overview

4 Outlook

5 Governance Issues



23

Emerging markets:

Performing markets continuing to deliver,

Underperforming markets already improving.

Iberia restructuring to retain profitability.

Ample liquidity reserves.

23

Growing a sound business platform with talents and capital


24

Contents

1 Q1'12 Highlights

2 Operations Review

3 Global Overview

5 Governance Issues


4 Outlook


25

April 20th Shareholder General Meeting, after unanimously approving the 2011 Annual Report and

Accounts, suspended its works until July 6th, 2012, as proposed the shareholder by Camargo

Corrêa Cimentos Luxembourg, Sàrl.

Moreover, the representative of the said shareholder informed the General Meeting that this

shareholder intends to vote favorably the proposals already presented for the following agenda

items:

• ITEM TWO: Resolve on the proposal for the allocation of profits (including the amount to be

distributed as dividend);

• ITEM THREE: Resolve on the general appraisal of the management and supervision of the

Company;

• ITEM FIVE: Resolve on the election of a new director of the Company for the current term-of-

office (2009/2012), in view of the resignation submitted.

AGM suspension up to July 6th, 2012…

… postpones dividend approval and distribution


26

Up to now:

• March 30: Intercement (Camargo Corrêa) discloses Offer Preliminary Announcement

• Unconditional and voluntary full takeover bid @ €5.50 per share.

• April 3: Following Offer Preliminary Announcement S&P places Cimpor in negative credit watch.

“Although the takeover will have to pass several regulatory hurdles, we could lower our ratings on Cimpor if CCSA achieves

majority ownership, in line with our criteria on rating parents and their subsidiaries. This is because we assess CCSA as

having weaker credit quality than Cimpor. “

• April 13: Cimpor Board discloses opinion on Opportunity and Conditions of the Offer

“The Board is of the firm opinion that the low price offered for Cimpor’s shares significantly undervalues the Company and

does not incorporate a control premium, and also that the Offer Documents fail to inform on critical aspects of the future

of Cimpor and on the commitments towards its stakeholders. Therefore, the Board is not in a position to issue a

recommendation either to sell or to remain invested in the Company.”

• May 5: Cimpor receives new draft Prospectus

Next steps:

• May 11: New Board of Directors Report on the Opportunity and Conditions presented in the new draft

Prospectus

• Pending Offer registration

Intercement (Camargo Corrêa) Offer next Steps


27

Contents

1 Q1'12 Highlights

2 Operations Review

3 Global Overview

4 Outlook

5 Governance Issues



28

Regional contributions


29

Brazil

Q1'12 YoY QoQ

Sales 7.0% 5.4%

Turnover 5.6% 8.6%

EBITDA 12.3% 26.2%

EBITDA Margin 1.9pp 4.4pp

Q1'12 EBITDA Margin 31.7%

29

Comments

Campo Formoso

Brumado

Cezarina

Cajati

Nova Santa Rita Candiota

Brasilia

Porto Alegre

João Pessoa

Atol

200 Miles

500 Kilometers

Brazil

Still strong economic and construction driving building materials

demand up .

Stable price and market share.

’11 0.5M ton capacity upgrade decreases imports needs.

Revamped operations and cost cutting efforts increase

efficiency offsetting energy cost increases and lower concrete

profitability. EBITDA up 12% and margin up to 31.7%.

Operations at full capacity, pending ongoing 3.5 M ton capacity

increases. Electricity tariffs renegotiation to impact in Q2.

No BRL forex material impact. 2% delta: depreciation YoY;

appreciation QoQ.

Outlook: focus on investments to address growing

demand.

Heated economy and construction dynamics

feed demand growth sustaining EBITDA

margin above 30%. Capacity upgrade.


30

Egypt Turkey

Q1'12 YoY QoQ YoY QoQ

Sales -10.4% -1.1% -35.4% -53.9%

Turnover -12.7% 16.6% -33.5% -48.5%

EBITDA -15.9% 46.1% -60.7% -79.9%

EBITDA Margin -1.2pp 6.3pp -5.2pp -11.8pp

Q1'12 EBITDA Mg 31.3% 7.6%

Morocco Tunisia

Q1'12 YoY QoQ YoY QoQ

Sales 5.5% 3.3% -7.7% -1.7%

Turnover 4.5% 5.8% -5.5% -2.1%

EBITDA 11.8% -24.5% -7.0% -12.0%

EBITDA Margin 2.3pp -13.9pp -0.4pp -2.8pp

Q1'12 EBITDA Mg 34.4% 25.1%

200 Miles

500 Kilometers

Comments

Çorum

Yozgat Ancara

Samsun

Hasanoglan

Rabat

Asment de

Temara Casablanca

Tunis

Jbel Oust

Cairo

Amreyah Alexandria

Mediterranean Rim

Egypt: local turbulence ease shows first signs: enhanced demand by

10% supports price recovery from new entrants impact on Q2’11.

Cimpor took advantage of down-cycle to start revamping operations.

Required stoppages, fuel supply constraints and increased energy

costs lower EBITDA contribution though allowing a 31% margin.

Turkey: Promising YoY 12% price increase. Severe weather

conditions beyond marked seasonality delay sales - market drops

25%-30% YoY. Abnormal low activity, to be recovered in Q2,

stoppages and increased energy costs justify low EBITDA

contribution and negligible Q1 margin.

Morocco: Impressive demand increase (20%) proceeds absorbing

recent entrant 2nd plant. Higher competition widens client base

eroding avg. price by 3%. Lower energy prices/costs. EBITDA rises

12% driving margin above 34%. New mill project anticipating further

market growth.

Tunisia: 4% Price increase. Market grows 5%, while Cimpor

converges to natural market share (23%). Successful revolution

handling allowed sales to competitor clients in Q1’11. Lower energy

costs support EBITDA margin of 25%, despite clinker acquisitions.

Outlook: positive signs though yet low visibility in Arabic countries.

Good price environment. Ongoing Turkey recovery.

Demand recovery signs following ’11

turbulence. Natural market positions

retrieving. Long Turkey winter.


31

Spain

Q1'12 YoY QoQ

Sales -33.8% -20.3%

Turnover -18.0% -9.5%

EBITDA -75.9% -73.8%

EBITDA Margin -11.0pp -11.3pp

Q1'12 EBITDA Mg 4.6%

Portugal

Q1'12 YoY QoQ

Sales 2.3% 19.0%

Turnover -11.0% 6.2%

EBITDA -27.1% 41.9%

EBITDA Margin -4.6pp 5.2pp


31

200 Miles

500 Kilometers

Comments

S. Miguel

Terceira

Azores

Loulé

Lisbon Alhandra

Souselas

Oporto

Sines

Cabo Mondego

Oural

Toral de los Vados Vigo

Huelva

Niebla

Sevilla Cordoba

Iberia

Iberia deleveraging - lack of credit still weakening demand.

Aggressive Portuguese exports strategy to North Africa and Latin

America, while CO2 licenses price drop discourages its trade.

Iberia delivers €21 M EBITDA, despite 40% drop.

Portugal: 60% exports increase mitigates local demand 17% drop,

but drags avg. price despite inland stability. Lower concrete and

aggregates activity. Stable EBITDA margin excluding Q1’11 CO2

sales effect.

Spain: local cement demand down ~30%. 7% cement price

increase and rising concrete volumes and prices controls turnover

drop by 18%. €4Mn restructuring costs increase upon Q1’11 and no

CO2 sales justify EBITDA cut.

Outlook: deleveraging still toughening local improvement.

A cash flow provider, struggling through

tough economics.


32

South Africa

Q1'12 YoY QoQ

Sales -2.9% -7.3%

Turnover 7.0% 5.4%

EBITDA 20.8% -1.4%

EBITDA Margin 4.6pp -2.8pp


Mozambique

Q1'12 YoY QoQ

Sales 13.0% -21.6%

Turnover 11.5% -24.2%

EBITDA 37.9% -54.3%

EBITDA Margin 3.2pp -11.2pp


32

200 Miles

500 Kilometers

Matola

Maputo

Dondo

Nacala

Simuma

Durban

Pretoria

Comments

Southern Africa

Mozambique: Q1’12 affirms recent Q4 dynamics. Foreign

investment boosts local demand (+20% YoY). Ports and roads

progress. New competitor and imports seek market share and

drag price (-16% YoY; -3% QoQ). Cimpor reacts with 2 new

mills and Matola plant improvements. Despite annual stoppage

in Q1, margin rises to 17%. Forex: MZN appreciates 18%.

South Africa: EBITDA raises 21%, driving margin to 40%. 14%

price increase and Best+ cost cutting program offset increasing

Q1 higher energy costs. Stable local sales, despite improving

national demand perspectives. Lower exports to Mozambique.

6% YoY ZAR depreciation.

Outlook: South Africa awakes. Mozambique takes off.

Mozambique takes-off. South Africa

awakes. Region gets prepared for rising

demand.


33

India

Q1'12 YoY QoQ

Sales -1.5% 9.6%

Turnover 3.7% 27.2%

EBITDA -11.3% n.s.

EBITDA Margin -2.6pp 8.8pp


China

Q1'12 YoY QoQ

Sales -25.8% -45.3%

Turnover -34.2% -49.3%

EBITDA n.s. n.s.

EBITDA Margin -37.2pp -11.9pp

Q1'12 EBITDA Mg -20.9%

33

200 Miles

500 Kilometers

Beijing

Suzhou Nanda

Shree Digvijay

New Liuyuan

Shangai

New Delhi

Zaozhuang

Liyang

Comments

Asia

China addressing market changes.

Promising India: recovery signs.

China: Atypical positive Q1’11 following competitors closures

which enhanced turnaround returns in a growing demand context.

Q1’12 addresses market changes: economic slowdown lowers

demand; new entrant gains market share, price drops 18% YoY,

8% QoQ. Current market scenario, combined with operating issues

(i.e. electrical stoppages), prevents EBITDA generation.

India: Challenging competitive environment. Improving on Q4’11.

Demand growth accommodates recent entrants.12% YoY price

recovery and industrial turnaround yet to compensate 30% energy

price increases on annual basis, while EBITDA margin rises 9p.p.

QoQ. INR down 7%.

Outlook: China to overcome market changes. India: foot printing

in a highly competitive but promising growing market. Waste heat

recovery electricity to deliver in next Qs.


34

Reporting data


35

(1) Including Intra-group eliminations.

Sales Volumes and Turnover by Country

Portugal 956 2.3% 19.0%

Spain 407 -33.8% -20.3%

Morocco 305 5.5% 3.3%

Tunisia 410 -7.7% -1.7%

Egypt 796 -10.4% -1.1%

Turkey 331 -35.4% -53.9%

Brazil 1,440 7.0% 5.4%

Mozambique 215 13.0% -21.6%

South Africa 272 -2.9% -7.3%

China 600 -25.8% -45.3%

India 265 -1.5% 9.6%

Cape Verde 54 -0.3% 21.0%

Intragroup -168 -28.0% 31.7%

Consolidated 5,882 -8.0% -12.7%

Cement and Clinker Sales (Thousand tons)

%Chg. YoY%Chg.

QoQ

Q1

2012

Portugal 87 -11.0% 6.2%

Spain 49 -18.0% -9.5%

Morocco 26 4.5% 5.8%

Tunisia 20 -5.5% -2.1%

Egypt 45 -12.7% 16.6%

Turkey 20 -33.5% -48.5%

Brazil 177 5.6% 8.6%

Mozambique 25 11.5% -24.2%

South Africa 36 7.0% 5.4%

China 18 -34.2% -49.3%

India 16 3.7% 27.2%

Cape Verde 7 -11.4% 15.6%

Trading/Shipping 47 -2.7% -15.5%

Other (1) -51 -13.7% -19.3%

Consolidated 521 -4.9% -2.5%

Turnover (€ Million)

Q1

2012%Chg. YoY

%Chg.

QoQ


36

EBITDA and EBITDA margin per Country

(1) Including Intra-group eliminations.

Portugal 18 -27.1% 41.9%

Spain 2 -75.9% -73.8%

Morocco 9 11.8% -24.5%

Tunisia 5 -7.0% -12.0%

Egypt 14 -15.9% 46.1%

Turkey 1 -60.7% -79.9%

Brazil 56 12.3% 26.2%

Mozambique 4 37.9% -54.3%

South Africa 14 20.8% -1.4%

China -4 n.s. n.s.

India 2 -11.3% n.s.

Cape Verde 1 -19.1% 147.8%

Trading/Shipping 4 n.s. -8.7%

Other (1) 0 n.s. n.s.

Consolidated 128 -10.2% -6.4%

EBITDA (€ Million)

Q1

2012%Chg. YoY

%Chg.

QoQ

Portugal 20.9% -4.6pp 5.2pp

Spain 4.6% -11.0pp -11.3pp

Morocco 34.4% 2.3pp -13.9pp

Tunisia 25.1% -0.4pp -2.8pp

Egypt 31.3% -1.2pp 6.3pp

Turkey 7.6% -5.2pp -11.8pp

Brazil 31.7% 1.9pp 4.4pp

Mozambique 16.9% 3.2pp -11.2pp

South Africa 39.9% 4.6pp -2.8pp

China -20.9% -37.2pp -11.9pp

India 15.4% -2.6pp 8.8pp

Cape Verde 13.0% -1.2pp 6.9pp

Trading/Shipping 8.3% 4.0pp 0.6pp

Other (1) -0.2% -1.5pp 16.3pp

Consolidated 24.6% -1.4pp -1.0pp

EBITDA Margin

Q1

2012

pp Chg.

YoY

pp Chg.

QoQ