Annual Report 2010 - CMVM

Management Report of the Board of Directors 2010- OVERVIEW OF THIS SECTOR DURING 2010:33,080Evolution of Turnover of Cement,Concrete and Aggregates(Values in thousand Euros)16,84513,176Consolidated Turnover in the Cement, Concrete and Aggregatessector was EUR 13,176 thousand, reflecting a reduction of21.8%, as a result of the renewed fall in demand in Ukraine,where Teixeira Duarte has its most important productionunit, and as a consequence of the alteration of the activitiesof the subsidiaries in Angola, which, in spite of the increaseof activity, reduced their contribution to the consolidatedturnover by working essentially for TD-EC.2008 2009 20107,279Evolution of EBITDA of Cement,Concrete and Aggregates(Values in thousand Euros)1,312As a result of the considerable reduction in turnover, theassociated fixed cost structure and the revaluation of variousassets in view of the discontinuation of investment projects,EBITDA were greatly penalised.(7,416)2008 2009 2010In non-consolidated terms and in order to provide an overall view of the total activity during 2010, we disclose that the operating income ofthe companies of the Group which operate in the Cement, Concrete and Aggregates sector reached the total value of EUR 45,334 thousand,reported exclusively relative to activities developed abroad, representing an increase of 24% compared with 2009.Regarding the development of the activity, below are brief notes on the production units operating in the markets of China and Ukraine.- CHINAIn China, the local companies developed various projects to expand their installed capacity, which is currently at 5,270 tons/year, with theirown clinker, corresponding to an increase of 93.4% in relation to 2009.In this context, note should be made of the following facts relative to 2010:- Finalisation of the construction of the Zaozhuang factory and Huaian mill;32