2012 Annual Report - Italcementi Group

2012 Annual Report
Presentation 4
General information 14
Annual Report Consolidated Annual Report Directors’ report 30
Sustainability disclosure Italcementi S.p.A. Annual Report Consolidated financial statements 63
Extraordinary session 351
Risks relating to availability of raw materials
The availability of raw materials is a strategic factor in investment decisions. The Group
generally sources its raw materials – limestone, clay, gypsum, aggregates and other
materials used in the production of cement, ready mixed concrete and aggregates – from
quarries it owns (the majority) or quarries rented from third parties. For these and other
significant materials, the Group has also reached specific agreements with suppliers to
guarantee continuous, stable procurement, under terms and conditions at the best market
levels.
Environmental risks
The “Sustainability Report” and the section on Sustainable Development in this report
illustrate the measures taken by the Group to manage environmental risks and control and
reduce emissions. With regard to CO 2 emissions, the Group’s European companies are
exposed to price fluctuations on emission rights depending on their own rights surplus or
deficit. The Group’s position is therefore constantly monitored to ensure correct risk
management (see note 22 in the notes).
Financial risks
The current period of crisis puts corporate cash flows at risk, endangering companies’ selffinancing
ability and creating difficulties for normal, orderly operations on the financial
market.
The Group procures sources of finance and manages interest rates, currency and
counterparty risk, for all the companies in the scope of consolidation. The Group uses
derivatives to reduce the risk of fluctuations in interest rates and exchange rates with
respect to debt and its international operations. Detailed analysis of this type of risk is
provided in note 22 of the notes, on net debt.
Ratings risk
The Group’s ability to compete successfully in the marketplace for funding depends on
various factors, including its credit ratings assigned by recognized ratings agencies. Its
credit ratings may change to reflect changes in its results, financial position, credit structure
and liquidity profile. As a result, a rating downgrade may have negative repercussions on
the Group’s ability to raise funding.
Legal risks
Suitable provisions and impairment losses have been applied with regard to existing risks
and their related economic effects. Estimates and valuations are based on available
information and are in any case regularly reviewed, with immediate recognition in the
financial statements of any variations.
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