2012 Annual Report - Italcementi Group

2012 Annual Report
Presentation 4
General information 14
Annual Report Consolidated Annual Report Directors’ report 146
Sustainability disclosure Italcementi S.p.A. Annual Report Separate financial statements 241
Extraordinary session 351
Results and significant events for the year
Results
Italcementi S.p.A. ended 2012 with a 202.9 million euro loss (against a 7.0 million euro
profit in 2011) primarily as a result of non-recurring items, impairment losses on property,
plant and equipment, a decrease in net finance income and impairment losses on equity
investments.
Condensed income statement
2012 2011 % change
(in millions of euro)
vs. 2011
Revenue 554.7 613.8 (9.6)
Recurring EBITDA (5.1) (0.5) (>100.0)
% of revenue (0.9) (0.1)
Other non-recurring income and expense (26.4) 8.2
EBITDA (31.5) 7.7 n.s.
% of revenue (5.7) 1.3
Amortization and depreciation (75.9) (81.6) (7.0)
Impairment (27.4) (0.7)
EBIT (134.7) (74.6) (80.6)
% of revenue (24.3) (12.2)
Finance income and costs 80.1 109.8 (27.0)
Impairment on financial assets (141.4) (52.3)
Profit (loss) before tax (195.9) (17.1) (>100.0)
% of revenue (35.3) (2.8)
Income tax (expense) (6.9) 24.1
Profit (loss) for the period (202.9) 7.0 n.s.
% of revenue (36.6) 1.1
Cash flow from operating activities 105.2 36.1 >100.0
Capital expenditure 82.1 131.6 (37.6)
n.s.: not significant
In the second half of 2011, the Italian economy once again entered into recession, which
continued throughout the whole of last year. Gross domestic product fell by more than 2%;
the decrease in internal consumer and investment demand was even more substantial,
while net exports increased considerably. At the core of the new downward cycle were the
strong measures introduced to contain public spending and a tightening of credit; the
reduction in disposable income was also affected by higher unemployment and salary
increases below the rise in prices. Improved financial conditions toward the end of the year
provided indications of an upturn in the economy; even in the absence of further upheavals,
it will still take time before the improved financial conditions can be reflected in the real
economy.
Investments in construction showed a substantial decline in 2012 for the fifth consecutive
year and are now almost 25% less than before the recession; furthermore, the rate of
contraction, which had slowed down during 2010-2011, sharply increased last year. This
situation affected all segments, with the partial exception of extraordinary maintenance,
which continued to benefit from substantial public incentives. At the beginning of 2012, the
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