Report 2010 - Italcementi Group

2010 Annual Report
Presentation 6
Consolidated Annual Report Directors’ report 28
Corporate Governance Consolidated financial statements 68
Italcementi S.p.A. financial statements 158
other companies/groups.
This report contains many financial and non-financial earnings indicators, including those
mentioned above. The financial indicators, taken from the financial statements, are used in
the tables summarizing Group business, equity and financial performance, in relation to
comparative values and other values from the same period (e.g., change in revenues,
recurring EBITDA and EBIT with respect to the previous year, and change in their return on
revenues). The use of economic values not directly apparent from the financial statements
(e.g., the exchange-rate effect on revenues and on earnings) and the presentation of
comments and assessments assist qualification of the trends in the values concerned.
The directors’ report also provides a series of financial ratios (gearing, leverage, coverage)
that are clearly of importance for a better understanding of Group performance, especially
with respect to previous periods. The non-financial indicators refer to external and internal
elements: the general economic situation and the situation of the industry in which the
Group operates, trends on the various markets and lines of business, trends in sales prices
and key cost factors, acquisitions and disposals, other significant events in the period,
organizational developments, the introduction of laws and regulations, etc.. In the notes,
the section on the net financial position provides information about the effects of changes in
interest rates and the main exchange rates on the balance sheet and the income
statement.
Results and significant events for the year
Results
Inevitably, the Group’s results were affected by the continuing difficulties in the international
economic scenario in 2010.
Sales volumes decreased, with a sharper reduction in aggregates and cement, and a
marginal reduction in ready mixed concrete.
Revenues, at 4,790.9 million euro, were down 4.3% from 2009 (-6.6% at constant size and
exchange rates).
Recurring EBITDA, at 836.3 million euro, was down 13.9%.
EBIT, after amortization and depreciation charges of 472.5 million euro (459.8 million euro
in 2009) and impairment losses of 8.0 million euro (54.0 million euro in 2009), was 353.8
million euro (-20.1%).
Profit before tax, at 259.2 million euro (309.5 million euro in 2009), fell by 16.3%.
The downturn in results generated a reduction in income tax expense, from 94.2 million
euro in 2009 to 62.1 million euro in 2010.
Net profit for the year was 197.1 million euro (215.3 million euro in 2009), while net profit
attributable to the Group was 45.8 million euro (71.3 million euro in 2009). Net profit
attributable to minority interests increased from 144.0 million euro to 151.3 million euro.
Net debt at December 31, 2010, was 2,230.9 million euro, a decrease of 189.0 million euro
from December 31, 2009 (2,419.9 million euro).
Total shareholders' equity stood at 4,985.9 million euro, an increase of 293.8 million euro
from December 31, 2009; Group shareholders' equity was 3,525.1 million euro, an
increase of 172.0 million euro from the end of 2009 (3,353.1 million euro).
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