marketing material - this is not investment research …

MARKETING MATERIAL - THIS IS NOT INVESTMENT RESEARCH AND IS INTENDED FOR QUALIFIED

INSTITUTIONAL BUYERS ONLY

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REPRESENTATIVE FOR MORE INFORMATION.

Europe CREDIT OVERVIEW INDUSTRIALS

25 March 2014 Alex Field

David Krancenblum

+44 20 7888 0940

+44 20 7888 0326

[email protected]

[email protected]

Global cement manufacturers

Western markets poised for recovery After seven years of weakness, European cement companies finally seem

to be heading toward positive prospects. Volumes are picking up in many

geographies following recovery of the construction market, both for

housing and infrastructure. Recession has left cement companies leaner,

offering substantial operational gearing as activity rebounds. Underlying

fundamentals of the industry remain intact: strong barriers to entry due to

capital intensity, high cost of ground transport, and limited substitution and

technological risks across products. A potential slowdown in construction

recovery remains a key risk, although many cement producers have

demonstrated an ability to preserve cash flow generation in downturns

through capex cuts and selected divestures. FX exposure is also to be

monitored given significant operations in emerging markets, both for

translation risk as well as asymmetric cost inflation risk. Finally,

implementation of new IFRS rules for JVs in 2014 is likely to impact

consolidation scope for EBITDA, typically decreasing reported EBITDA

and therefore increasing leverage. This should not however impact cash

flow, and we are positive overall on the prospects of the industry.

We adopted a top down approach when differentiating the various players,

including a focus on geographical exposure which varies significantly

among companies. The US market is significantly rebounding and is

expected to continue to do so in the coming years, delivering volume

growth and operational gearing. Europe has suffered a lot, but is currently

stabilising. Market consensus expects a pick-up to come gradually in the

next 24 months, with Southern Europe reducing losses and Western

Europe ramping up. Central and Eastern Europe is a high margin region,

although geopolitical and economic uncertainty may weaken certain

countries’ prospects, such as Russia. Africa, Middle East and Asia

encompass some of the highest margin markets, which offered double-

digit growth sustained through the cycle. However, country-specific events

such as the 2013 energy shortage in Egypt, government intervention on

prices in Nigeria, cuts in public spending in Morocco, or FX movements in

Indonesia leading to cost inflation can suddenly impact profitability. We

have attempted to account for these differences in our views.

Our favourite pick is Titan Cement, which delivers healthy relative yields

given its good geographical mix and growth prospects. We also like

HeidelbergCement and Lafarge, where management focus on reaching

investment grade financial metrics could lead to a repricing of their debt

complex. While we recognise upside potential in earnings for Buzzi

Unicem and Italcementi, we believe that the yield differentials to peers

does not reward bondholders for difference in scale and substantial

exposure Southern Europe.

European Leveraged Finance

Sector Strategy

Chart 1: Our preference list

Company Ticker Ref. YTW

① Titan Cement TITKGA 4.38%

② Heidelbergcement HEIGR 2.48%

③ Lafarge LGFP 2.87%

④ Buzzi BZUIM 3.05%

⑤ Italcementi ITCIT 2.80%

Source: the BLOOMBERG PROFESSIONAL™ service.

Chart 2: Cement products cheat sheet

Composi t ion and descript ion

Cement Made of limestone (80%) and clay (20%).

Crushed to become "raw meal".

Heated (1,450°C) to become "Clinker".

Further ground with gypsum to become

"Cement".

Aggregates Made of sand and gravel extracted from

quarries.

Concrete Made of cement, aggregates, water,

admixtures and others.

Either mixed on the building site or

delivered "ready-mixed" by the supplier.

Further ingredients can be addded to

create specific by-products.

Source: Credit Suisse, Italcementi.

Chart 3: TITKGA vs. iTraxxx Xover

YTW of the 8.75% snr. nts. due ’17 for TITKGA, price for iTraxx xover.

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TITKGA 8.75% EUR '17(left axis)

iTraxx xover (right axis)


mailto:[email protected]

mailto:[email protected]

March 25, 2014

2

Titan Cement has demonstrated through the credit and sovereign crisis it

was capable of generating positive cash flow throughout cycles, thanks to

a good geographical mix and efficient capital management. As the

housing market improves, the company should be able to leverage its

strong presence in the US (particularly Florida). Given a positive operating

outlook, the company announced it would increase capex in 2014 to

expand capacity in the US and secure energy supply in Egypt. In Greece,

management expects some recovery driven by EU-funded infrastructure

projects. However, we recognise that bonds may be difficult to source

given the small size of the issue and some retail bondholders.

HeidelbergCement is one of the world's largest cement producers. The

company is dedicated to returning to investment grade, and has focused

on improving credit metrics through operational restructuring and

divestments. In its annual investor call, management indicated that

unusually high capex in 2013 would be reduced in 2014, alongside

further assets disposal (Building Products division: c.€1bn of revenues,

c.€120m of EBITDA). As the company moves toward investment grade,

we expect some repricing to occur, given the trading level of BBB comps

such as Holcim (see HeidelbergCement – Still on the path to

investment grade (07/02/14)). Key risks in our view lie in emerging

markets macro events and FX, with regards to Indonesian operations in

particular.

Lafarge has a similar profile to HeidelbergCement in terms of scale and

geographical diversification, although it is more focused on the MEA

region. It has also successfully rationalised its operation as well as

divested non-core assets to delever the balance sheet. A further €380m

of divestments secured for 2014 should help management in its quest

for investment grade metrics, although slightly higher adjusted leverage

than HeidelbergCement may delay the rating upgrade. In addition,

stabilisation of troubled dynamics encountered in 2013 in Egypt,

Morocco and Nigeria will be key to reach consensus estimates. Finally,

investors should differentiate bonds with a coupon step down mecanism,

given the potential for a rating upgrade in upcoming years.

Buzzi Unicem benefits from some good exposure to the US, but has

been late in cutting costs in Italy, where losses further deteriorated in

2013. In addition, concerns are being raised given the substantial

exposure to Russia (c.15% of EBITDA). We do recognise that

profitability should increase alongside overall industry recovery, but we

do not believe that the current 25-50bp yield differential to

HeidelbergCement and Lafarge provides appropriate reward for the

much smaller scale and enhanced exposure to Southern Europe.

Italcementi has been more proactive in cutting costs in Italy, leading to

some reduction of losses in the country in 2013. In addition, the recent

announcement of the purchase of the Ciments Français minority funded

with a right issue is a positive for bondholders as the transaction will help

reduce cash leakage. However, the country is significantly exposed to

challenged areas (Western Europe, Egypt, Morocco), and heavy capex

spending impairs cash flow generation. We do not perceive the Ciments

Français bonds or the structurally subordinated Italcementi bonds as

particularly attractive relative to peers at current levels (YTW of 2.1%

and 2.8%, respectively). However, Ciments Français might be of interest

for a short duration play, given the bonds' position in the capital structure

and their short maturity.

Chart 4: HEIGR vs. iTraxxx Xover

YTW of the 9.5% snr. nts. due ’18 for HEIGR, price for iTraxx xover.

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Source: the BLOOMBERG PROFESSIONAL™ service .

Chart 5: LGFP vs. iTraxxx Xover

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Chart 6: BZUIM vs. iTraxxx Xover

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BZUIM 6.25% EUR '18(left axis)



Chart 7: ITCIT vs. iTraxxx Xover

YTW of the 6.125% snr. nts. due ’18 for ITCIT, price for iTraxx xover.

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ITCIT 6.125% EUR '18(left axis)



https://plus.credit-suisse.com/r/C3yFfz

https://plus.credit-suisse.com/r/C3yFfz

March 25, 2014

3

① Titan Cement ② HeidelbergCement ③ Lafarge ④ Buzzi ⑤ Italcementi

Snr unsec. bond benchmark 8.75% € Jan-17 2.25% € Mar-19 5.875% € Jul-19 6.25% € Sep-18 6.125% € Feb-18 4.75% € Apr-17

Issuer TITKGA HEIGR LGFP BZUIM ITCIT CMAFP

Price 111.4 99.0 114.5 113.3 112.1 107.8

Yield-to-w orst (%) 4.4 2.5 2.9 3.0 2.8 2.1

Z-spread (bps) 378 150 186 217 202 144

Rating (Moody's/S&P/Fitch) NA / BB / NA Ba1 / NA / BB+ Ba1 / BB+ / BB+ NA / BB+ / NA Ba3 / BB+ Ba2 / BB+

CDS

3y CDS NA 99 124 NA NA NA

5y CDS NA 167 211 NA NA NA

Revenue split by geography

Number of countries 9 countries 40 countries 58 countries 12 countries 22 countries

Revenue split by product

Note: Aggregate segment includes ready-mix and concrete.

KPIs

Number of employees 5,500 52,000 65,000 11,000 19,000

Cement volume (MT) 17 91 137 27 43

Aggregate volume (MT) 12 241 193 9 33

Concrete volume (Mm3) 3 40 31 14 12

Cement revenue / ton (€/t) 50 74 71 66 63

'11-'13 sales CAGR 2.5% 2.6% -0.2% -0.5% -3.6%

'11-'13 EBITDA CAGR -7.0% 1.5% -1.2% -1.0% -3.3%

EBITDA margin 16.7% 17.4% 20.4% 15.4% 14.9%

IS and cash flow Dec-13 Dec-13 Dec-13 Sep-13PF Dec-13PF

Sales €1,176m €13,936m €15,198m €2,746m €4,235m

EBITDA 196 2,424 3,102 422 631

Capex -46 -936 -1,051 -146 -336

Interest -57 -742 -893 -65 -116

Tax -22 -406 -525 -78 -152

Change in WC 2 193 -36 1 33

Restructuring and others 2 -422 -226 -42 -64

FCF 74 111 371 93 -3

Net acquisitions -8 -277 1,276 -27 38

Dividends -8 -164 -672 -35 -63

FCF after acq. / div. 58 -330 975 31 -28

Capitalisation and valuation

Net debt 539 7,523 10,330 1,108 1,939

Market cap (25-Mar-14) 2,006 11,239 15,489 2,438 2,092

Minorities and other 123 959 1,951 174 1,173

EV 2,667 19,721 27,770 3,720 5,203

Key credit metrics

Net debt / LTM EBITDA 2.7x 3.1x 3.3x 2.6x 3.1x

EV / LTM EBITDA 13.6x 8.1x 9.0x 8.8x 8.2x

LTM EBITDA / Interest 3.4x 3.3x 3.5x 6.5x 5.4x

Strengths + Exposure to the US

(Florida)

+ Presence focused on high

grow th / high margin markets

+ Equity value

+ Operation restructuring

already achieved

+ Scale

+ Further delev. expected

from €1bn+ disposal of

building products in 2014

+ Operational restruct.

already achieved

+ Potential IG upgrade

+ Scale

+ Good results achieved in

cost cutting and further to

come

+ €380m of divestments

already secured

+ Potential IG upgrade

+ Exposure to the US (mid-

West)

+ Some ability to preserve

Volume in Italy through

exports

Concerns - Exposure to Greece

- Dependence on exports for

Greek production

- Exposure to Egypt

- Lack of bond liquidity

- Performance in Indonesia

given FX risk and costs

inflation

- Limited exposure to high

margin Mediterranean region

- Substantial restruc. Costs

still being incurred

- Exposure to Egypt and

Nigeria

- Exposure to Italy

- Concerns re performance

in Russia given cost inflation

- Exposure to Western

Europe

- Slow dow n in Mexico

Note: PF f inancials based on based on LTM Revenue, EBITDA and net debt, but CF est imated as per previous period due to lack of disclosure at the t ime of the publicat ion. Buzzi volume metrics as of 2012. Buzzi revenue and EBITDA based on 21m CAGR.

Perf. catalysts

+ Grow th in Asia

+ Leading position in high margin

Morocco

+ Improved CF since acquisition of

Ciment Francais minority

- Exposure to Italy

- Exposure to Western Europe

- Exposure to Egypt

- FX Indian risk

W Eu 29%

E Eu 9%

Medit. 8%Amer. 24%

Asia 24%

Other 6%

Cement 64%

Aggreg 25%

Other 11%

W Eu 21%

CE Eu 7%

MEA 27%N Amer.

21%

Asia 18%

LATAM 6%

Cement 64%

Aggreg 36%

Cement 74%

Aggreg 26%

W Eu 21%

SE Eu 18%

Medit. 26%

Amer. 35%

W Eu 43%

CEE 22%

Amer. 26%

Mex. 9%

Cement 65%

Aggreg 35%

Cement 64%

Aggreg 30%

Other 6%

W Eu 48%

EEMEA 20%

Amer. 9%

Asia 12%

Other 11%

March 25, 2014

4

Titan Cement 25/03/2014

Issuer Description Coupon Maturity Moody's S&P Price YTW Z-spread

Titan Global Finance Plc Sn notes 8.75% 19-Jan-17 NA BB (Stable) 111.4 4.38% 378

Business description

Products: - Greece-based producer of cement, ready-mix and concrete.

- Second market share in greece. How ever Greek local production much greater than domestic market, and therefore is signif icantly oriented tow ard exports.

Customers: - Greece and Western Europe (Greece, France, UK, Italy): 21% of revenues / 6% of EBITDA.

- Eastern Mediterranean (Turkey and Egypt): 26% / 49%.

- North America (US): 34% / 14%.

- South Eastern Europe: 19% / 31%.

Competition: - Global cement producers: HeidelbergCement, Holcim, CEMEX.

- Producers w ith strong presence in Mediterranean area: Lafarge, Italcementi, Buzzi. Competition tends to occur at the regional level due to high transportation costs.

- Geece market: #1 Lafarge-ow ned Heracles (40-50% market share), #2 Titan (40-45%), #3 Italcementi (5%).

- Other signif icant market shares: US (18%), Bulgaria (30%), Yugoslav Republic of Macedonia (80%), Serbia (20%), Albania (30%), Egypt (9%).

Ow nership: - Listed on the Athens Stock Exchange (TITK GA) w ith market cap of €2,006m (as of 25-Mar-14).

Key considerations

Positives: - Strong competitive position in key markets. Presence in high groath / high margins regions.

- Track record of managing capacity through international export capabilities.

- Good liquidity management, including recently renew ed €430m forw ard start RCF.

- Building materials industry: strong barriers to entry due to capital intensity and limited subsitution risk.

Negatives: - Signif icant exposure to volatile markets such as home Greece, Egypt, and Southeastern Europe.

- Smaller scale than many competitors, further enhancing contry specif ic risks.

- Building materials industry: dependence on macro-economic cycle and construction cycles. Exposure to geo-political and FX risks.

Divisional Split:

Source: Credit Suisse, Company Reports, the BLOOMBERG PROFESSIONALTM service.

Greece and Western

Europe

21%

North America35%South Eastern

Europe

18%

Eastern Mediter.

26%

Revenues

Maturity Profile <1 yr 1-2 yr 2-3 yr 3-4 yr 4-5 yr >5 yr

Amt. due 112 299 21 223 11 56

Financial summary (€ millions) Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 2010 2011 2012 2013 LTM 2014E 2015E

Period ending 31/12/12 31/03/13 30/06/13 30/09/13 31/12/13 31/12/10 31/12/11 31/12/12 31/12/13 31/12/13 31/12/14 31/12/15

Sales 284 243 329 316 288 1,350 1,091 1,131 1,176 1,176 1,267 1,383

Sales growth y-o-y NA 7.8% 2.0% 5.7% 1.4% NA -19.2% 3.6% 4.0% NA 7.8% 9.1%

EBITDA 33 24 68 61 42 316 244 196 196 196 238 293

EBITDA growth y-o-y NA -29.4% -12.6% 21.9% 27.2% NA -22.7% -19.8% 0.1% NA 21.4% 23.1%

EBITDA margin 11.7% 10.0% 20.6% 19.4% 14.7% 23.4% 22.4% 17.3% 16.7% 16.7% 18.8% 21.2%

CAPEX (net) -16 -6 -12 -6 -21 -76 -43 -22 -46 -46 (100) (120)

Interest -20 -11 -10 -25 -11 -53 -51 -69 -57 -57 (58) (57)

Tax 0 -2 -17 -2 -2 -28 -37 -21 -22 -22 (17) (31)

EBITDA-I-T-C -3 5 29 28 8 159 114 83 71 71 63 84

Change in WC 58 -31 16 -23 40 -35 18 -4 2 2 (17) (21)

Other and non-cash items in EBITDA 4 0 -7 -4 5 36 -22 -5 -5 -5 – –

FCF 58 -26 39 1 54 160 110 74 68 68 46 63

Acquisitions (net) 0 -4 0 -4 0 85 0 31 -8 -8 – –

Dividends 0 0 0 0 -2 -8 -25 -10 -2 -2 (10) (10)

FCF after acquisitions / dividends 58 -30 38 -3 52 237 86 94 58 58 36 53

Net debt 596 630 586 594 539 777 708 596 539 539 502 450

EBITDA / Interest 1.6x 2.2x 7.1x 2.4x 3.9x 5.9x 4.8x 2.8x 3.4x 3.4x 4.1x 5.1x

Net debt / LTM EBITDA 3.0x 3.4x 3.3x 3.2x 2.7x 2.5x 2.9x 3.0x 2.7x 2.7x 2.1x 1.5x

FCF / Net debt NA NA NA NA NA 20.6% 15.6% 12.4% 12.6% 12.6% 9.2% 14.0%

LTM EBITDA 196 186 176 187 196 316 244 196 196 196 238 293

Adjusted net debt (for leases) 687 NA NA NA 622 878 795 687 622 622 NA NA

Fully adjusted EBITDAR NA NA NA NA NA 323 251 204 203 203 NA NA

Adjusted net debt to Adjusted EBITDA NA NA NA NA NA 2.7x 3.2x 3.4x 3.1x 3.1x NA NA

Capitalisation (31/12/13) Maturity Rate Size Book Liquid. Lev. Mkt. Lev. Px YTW

RCF € 455 0 455 0.0x 0.0x

Bank borrow ings 456 - 2.3x 2.3x

Senior notes Jan-17 8.75% € 200 217 - 1.1x 1.2x 111 4.4%

Other debt 50 - 0.3x 0.3x

Total debt 723 3.7x 3.8x

Cash -185 185 -0.9x -0.9x

Net debt 539 643 2.7x 2.9x

Market cap 2,006 10.2x

Minorities and other 123 0.6x

EV 2,667 13.6x

Greece and Western

Europe

7%

North America16%

South Eastern Europe

32%

Eastern Mediter.

45%

EBITDA

March 25, 2014

5

HeidelbergCement 25/03/2014


Products: - Global integrated producer of cement (64% of sales), aggregates and concrete (25%) and other products (10%).

- With 52,000 employees and operations in 40 countries, Lafarge is one of the w orld largest cement producers.

- Dow nstream activities include the production of ready-mixed concrete, concrete pipes, other precast concrete parts, and asphalt.

Customers: - Northern / Western Europe: 23% of EBITDA (Mainly Germany and the UK, as w ell as Belgium, Denmark, Estonia, Latvia, Lithuania, Netherlands, Norw ay, Sw eden, Sw itz.).

- Eastern Europe / Central Asia: 11% of EBITDA (Bosnia, Croatia, Czech Republic, Georgia, Hungary, Kazakhstan, Poland, Romania, Russia, Slovakia, Ukraine).

- North America: 23% of EBITDA (Mainly the US, as w ell as Canada)

- Asia Pacif ic: 35% of EBITDA (Indonesia: c.20% of EBITDA, Bangladesh, Brunei, China, India, Malaysia, Singapore, Australia).

- Africa-Mediterranean Basin: 8% of EBITDA (Israel, Spain, Turkey, Benin, Burkina Faso, DR Congo, Gabon, Ghana, Liberia, Sierra Leone, Tanzania, Togo).

Competition: - Global cement producers: Lafarge, Holcim, CEMEX.

- Competition tends to occur at the regional level due to high transportation costs.

Ow nership: - Listed in Germany (HEI GY) w ith market cap of €11,239m (as of 25-Mar-14). 25.11% ow ned by Ludw ig Merkel.

Key considerations

Positives: - Exposed to the large, relatively stable Western markets, including the US expected to rebound. Low exposure to Southern Europe. Some EM exposure to Indonesia.

- Strong free cash f low generation and plenty of scope to reduce capex in times of crisis. EBITDA margins remain in the high teens.

- HeidelbergCement has been upgraded numerous times in the recent past, and the company continues to delever, w ith the goal of reaching an investment grade rating.

- Building materials industry: strong barriers to entry due to capital intensity and limited substitution risk.

Negatives: - Certain of HeidelbergCement's markets remain at risk of contagion from the Eurozone crisis, including its main market, Germany.

- Weak demand in certain Western markets, and over-investment in emerging markets may lead to overcapacity and price competition.

- Cost inflation for energy and w ages may squeeze profits, especially in emerging markets w here there is evidence this is already happening.

- Emerging markets have recently show n increased volatility. HeidelbergCement is exposed to Indonesia, through its Indocement stake (51% stake).


Recent development

Divisional Split:

- In the FY2013 investor call, announced that the company w as considering disposing of the Building Products division, w hich generates revenue and EBITDA of €1bn and

€120m respectively.

West / North EU

23%

East EU / Central

Asia11%

North America

24%

Asia Pac33%

Africa / Med

8%

Other1%

EBITDAWest / North

EU29%

East EU / Central

Asia9%

North America

24%

Asia Pac24%

Africa / Med

8%

Other6%

Revenues

Financial summary (€ millions) Q113 Q213 Q313 Q413 2011 2012 2013

Period ending 31/03/13 30/06/13 30/09/13 31/12/13 31/12/11 31/12/12 31/12/13

Sales 2,761 3,799 3,891 3,486 12,902 14,020 13,936

Sales growth y-o-y -1.4% 0.5% -1.4% -0.3% 9.7% 8.7% -0.6%

EBITDA 219 735 811 660 2,321 2,477 2,424

EBITDA growth y-o-y 2.5% 5.3% -7.3% -4.6% 3.6% 6.7% -2.1%

EBITDA margin 7.9% 19.3% 20.8% 18.9% 18.0% 17.7% 17.4%

CAPEX (Net) -127 -231 -201 -378 -874 -831 -936

Interest -124 -150 -84 -385 -456 -635 -742

Tax -91 -158 -60 -97 -308 -328 -406

EBITDA-I-T-C -123 197 466 -200 682 682 340

Working capital -268 -36 -37 534 45 166 193

Cash change in pensions and other provisions -47 -210 -66 -54 -213 -213 -377

Other -60 -94 -25 135 -83 18 -45

FCF -497 -144 337 416 431 653 111

Acquisitions -266 -104 21 72 107 243 -277

Dividends -2 -156 -1 -5 -78 -98 -164

FCF after acquisitions / dividends -766 -404 358 482 459 799 -330

Summary capitalisation

Total debt 9,385 9,689 9,281 9,065 9,801 8,573 9,065

Cash and cash equivalent -1,495 -1,423 -1,211 -1,465 -1,870 -1,475 -1,465

Put options and other adjustments -102 -67 -64 -78 -161 -51 -78

Net debt 7,788 8,199 8,005 7,523 7,770 7,047 7,523

Key credit metrics

EBITDA / Interest 1.8x 4.9x 9.7x 1.7x 5.1x 3.9x 3.3x

Net debt / LTM EBITDA 3.1x 3.3x 3.3x 3.1x 3.3x 2.8x 3.1x

FCF / Net debt NA NA NA NA 5.5% 9.3% 1.5%

Capitalisation (31/12/13) Maturity Rate Size pf Book Liquid. Lev. Mkt. Lev. Px YTW

Secured revolving credit facility 25/02/19 E+0.95% € 3,000 258 2,742 0.1x 0.1x

Other debt 1,509 - 0.6x 0.6x

Secured debt 1,767 0.7x 0.7x

Senior notes 31/10/14 7.500% €1,000 1,000 - 0.4x 0.4x 104 0.83%

Senior notes 03/08/15 6.500% €650 650 - 0.3x 0.3x 107 1.27%

Senior notes 15/12/15 6.750% €650 650 - 0.3x 0.3x 109 1.30%

Senior notes 08/03/16 4.000% €300 300 - 0.1x 0.1x 105 1.51%

Hanson senior notes 15/08/16 6.125% $750 546 - 0.2x 0.2x NA NA

Senior notes 31/01/17 8.000% €1,000 1,000 - 0.4x 0.4x 117 1.70%

Senior notes 14/11/17 7.250% CHF150 122 - 0.1x 0.1x NA NA

Senior notes 01/04/18 5.625% €480 480 - 0.2x 0.2x 112 2.17%

Senior notes 15/12/18 9.500% €500 500 - 0.2x 0.2x 131 2.56%

Senior notes 31/10/19 8.500% €500 500 - 0.2x 0.2x 129 2.80%

Senior notes 03/04/20 7.500% €750 750 - 0.3x 0.3x 124 3.05%

Senior notes 21/10/20 3.250% €300.0 300 - 0.1x 0.0x

Senior notes 21/10/21 3.250% €500.0 500 - 0.2x 0.0x

Total debt 9,065 - 3.7x 3.4x

Cash and cash equivalents -1,465 1,465 -0.6x -0.6x

Other items -78

Net debt 7,523 4,188 3.1x 2.8x



EV 21,264 8.8x

March 25, 2014

6


Maturity Profile 2014 2015 2016 2017 2018 2019 2020 2021+

Amt. due 2291 1420 1093 1133 999 539 1052 507

Capitalisation (31/12/13) Maturity Rate Size pf Book Liquid. Lev. Mkt. Lev. Px YTW

Secured revolving credit facility 25/02/19 E+0.95% € 3,000 258 2,742 0.1x 0.1x

Other debt 1,509 - 0.6x 0.6x

Secured debt 1,767 0.7x 0.7x

Senior notes 31/10/14 7.500% €1,000 1,000 - 0.4x 0.4x 104 0.83%

Senior notes 03/08/15 6.500% €650 650 - 0.3x 0.3x 107 1.27%

Senior notes 15/12/15 6.750% €650 650 - 0.3x 0.3x 109 1.30%

Senior notes 08/03/16 4.000% €300 300 - 0.1x 0.1x 105 1.51%

Hanson senior notes 15/08/16 6.125% $750 546 - 0.2x 0.2x NA NA

Senior notes 31/01/17 8.000% €1,000 1,000 - 0.4x 0.4x 117 1.70%

Senior notes 14/11/17 7.250% CHF150 122 - 0.1x 0.1x NA NA

Senior notes 01/04/18 5.625% €480 480 - 0.2x 0.2x 112 2.17%

Senior notes 15/12/18 9.500% €500 500 - 0.2x 0.2x 131 2.56%

Senior notes 31/10/19 8.500% €500 500 - 0.2x 0.2x 129 2.80%

Senior notes 03/04/20 7.500% €750 750 - 0.3x 0.3x 124 3.05%

Senior notes 21/10/20 3.250% €300.0 300 - 0.1x 0.0x

Senior notes 21/10/21 3.250% €500.0 500 - 0.2x 0.0x

Total debt 9,065 - 3.7x 3.4x

Cash and cash equivalents -1,465 1,465 -0.6x -0.6x

Other items and adjustments -78 - 0.0x 0.0x

Net debt 7,523 4,188 3.1x 2.8x



EV 21,264 8.8x

March 25, 2014

7

Lafarge 25/03/2014


Products: - Global integrated producer of cement (64% of sales) and aggregates and concrete (35%).

- With 65,000 employees and operations in 58 countries, Lafarge is one of the w orld largest cement producers.

Customers: - North America: 21% of revenue / 18% of EBITDA (Canada: 11%/14%, US: 9%/6%).

- Western Europe: 21%/11% (France: 12%/10%, UK: 7%/3%, Germany, Greece, Spain, Sw itzerland).

- Central and Eastern Europe: 7%/7% (Austria: 4%/-, Poland: 1%/-, Russia: 1%/-, Romania: 1%/-, Czech Republic, Hungary, Moldavia, Serbia).

- Latin America: 6%/8% (Brazil: 3%/5%, Ecuador: 1%/-, Honduras: 1%/-, Mexico: 1%/-).

- Asia (Malaysia: 4%/-, China: 3%/2%, India: 3%/5%, Philippines: 3%/-, Korea: 2%/-, Bangladesh, Indonesia, Pakistan, Singapore, Sri Lanka).


- Producers w ith strong presence in Mediterranean area: Italcementi, Buzzi, Titan. Competition tends to occur at the regional level due to high transportation costs.

Ow nership: - Lafarge is listed in France (LG FP) w ith market capitalisation of €15.5bn (as of 25-Mar-14).

Note: Country breakdown based on estimates. "-" when EBITDA breakdown non-available.

Key considerations

Positives: - Management commitment to returning to IG, although credit metrics improvements required w ill take time to achieve and stabilise.

- Leading market position in key markets, and broad geographical diversif ication.

- Enhanced position in high margin regions, typically Middle East and Africa. EBITDA margins in the high teens.


Negatives: - Leakage to minorities, including Egypt cement (54% ow ned) or Nigeria (c.60% of key subsidiaries).

- Concurrent issues in various key markets in 2013: Egypt (energy shortage), Nigeria (government intervention), Morocco (cut in public spending).


Recent developments

- Sale of 20% minority stake in South African Gypsum operations for 145m announced in Dec-13.

- During the 2013 anaylst call, management confirmed that a further €480m of divestitures had already been secured for 2014, and commitment top returning to IG.

Divisional split:

- Over the last years, Lafarge has restructured its operations, cutting costs and disposing of non cost activities. LT target for net debt below €9bn.

- Middle East and Africa: 27%/37% (Nigeria: 4%/6%, Algeria: 4%/6%, Iraq: 2%/-, Egypt: 2%/3%, Morocco: 2%/-, S. Africa: 2%/-, Kenya: 2%/-, Jordan: 1%/-, Benin,

Cameroon, Malaw i, Qatar, Saudi Arabia, Syria, Tanzania, Uganda, UAE, Zambia, Zimbabw e).

Capitalisation (31/12/13) Curr. Coupon Coupon step down Maturity Book val. (€) Lev. Price YTW

€ millions unless otherw ise indicated

Commercial paper program 0 0.0x

Securitization program 379 0.1x

Syndicated credit facility 1,235 0.4x

Secured debt 1,614 0.5x

Net secured debt -1,732 -0.6x

8.875% EUR senior notes due 2014 EUR 8.875% Yes: 7.625% @ Baa3/BBB- 27/05/14 1,000 0.3x 101.38 0.5%

5.000% EUR senior notes due 2014 EUR 5.000% No 16/07/14 612 0.2x 101.35 0.5%


6.200% USD senior notes due 2015 USD 6.200% Yes: 5.500% @ Baa3/BBB- 09/07/15 412 0.1x 105.70 1.7%


6.500% USD senior notes due 2016 USD 6.500% No 15/07/16 599 0.2x 110.31 1.9%

8.875% EUR senior notes due 2016 EUR 8.875% Yes: 7.625% @ Baa3/BBB- 24/11/16 750 0.2x 118.03 1.9%


6.625% GBP senior notes due 2017 GBP 6.625% No 30/05/17 236 0.1x 119.92 3.3%




10.000% GBP senior notes due 2017 GBP 10.000% Yes: 8.750% @ Baa3/BBB- 29/11/17 412 0.1x 111.66 3.2%








7.125% USD senior notes due 2036 USD 7.125% No 15/07/36 450 0.1x



Total bonds 11,111 3.6x

Other debt, including bilateral facilities and subsidiary debt 971 0.3x

Total debt 13,696 4.4x

Cash & cash equivalent -3,346 -1.1x

Derivatives and other adjustments -20 0.0x

Net debt 10,330 3.3x

Market capitalisation 15,489 5.0x

Minorities and other 1,951 0.6x

EV 27,770 9.0x

North America21%

Western Europe

21%

Central and Eastern Europe

7%

Middle East and Af rica

27%

Latin America6%

Asia18%

Revenue

North America18%

Western Europe

11%

Central and Eastern Europe

7%Middle East and Af rica

37%

Latin America8%

Asia19%

EBITDA

Financial summary (€ millions) Q412 Q113 Q213 Q313 Q413 2010 R 2011 2012 2013 LTM

Period ending 31/12/12 31/03/13 30/06/13 30/09/13 31/12/13 31/12/10 31/12/11 31/12/12 31/12/13 31/12/13

Sales 3,809 3,136 4,112 4,236 3,714 14,834 15,284 15,816 15,198 15,198

Sales growth y-o-y -0.1% -6.5% -3.5% -3.6% 18.4% NA 3.0% 3.5% -3.9% NA

EBITDA 829 380 922 1,007 793 3,486 3,217 3,423 3,102 3,102

EBITDA growth y-o-y 3.9% -26.4% -8.4% -6.0% 108.7% NA -7.7% 6.4% -9.4% NA

EBITDA margin 21.8% 12.1% 22.4% 23.8% 21.4% 23.5% 21.0% 21.6% 20.4% 20.4%

Capex -282 -289 -221 -237 -304 -1,272 -1,071 -775 -1,051 -1,051

Interest -344 -142 -297 -169 -285 -911 -944 -954 -893 -893

Tax -125 -105 -160 -119 -141 -383 -484 -487 -525 -525

EBITDA-I-T-C 78 -156 244 482 63 920 718 1,207 633 633

Change in WC 626 -292 -154 -45 455 361 20 -304 -36 -36

Restructuring costs -40 -19 -57 -27 0 -150 -61 -183 -157 -157

Exceptionals 20 -15 -16 -183 0 -61 -189 -112 -69 -69

FCF 684 -482 17 227 518 1,070 488 608 371 371

Acquisitions (net) 160 115 42 879 240 317 1,909 305 1,276 1,276

Dividends -49 -117 -79 -204 -272 -1,127 -528 -383 -672 -672

FCF after acquisitions / dividends 795 -484 -20 902 486 260 1,869 530 975 975

Summary capitalisation

Total debt 14,084 14,542 14,513 14,467 13,696 17,280 15,206 14,084 13,696 13,696

Cash -2,733 -2,729 -2,629 -3,536 -3,346 -3,294 -3,171 -2,733 -3,346 -3,346

Derivatives and other adjustments -34 -1 -3 13 -20 7 -61 -34 -20 -20

Net debt 11,317 11,812 11,881 10,944 10,330 13,993 11,974 11,317 10,330 10,330

Key credit metrics

EBITDA / Interest 2.4x 2.7x 3.1x 6.0x 2.8x 3.8x 3.4x 3.6x 3.5x 3.5x

Net debt / LTM EBITDA NA NA NA NA NA 4.0x 3.7x 3.3x 3.3x 3.3x

FCF / Net debt NA NA NA NA NA 7.6% 4.1% 5.4% 3.6% 3.6%

March 25, 2014

8


Capitalisation (31/12/13) Curr. Coupon Coupon step down Maturity Book val. (€) Lev. Price YTW

€ millions unless otherw ise indicated

Commercial paper program 0 0.0x

Securitization program 379 0.1x

Syndicated credit facility 1,235 0.4x

Secured debt 1,614 0.5x

Net secured debt -1,732 -0.6x




6.200% USD senior notes due 2015 USD 6.200% Yes: 5.500% @ Baa3/BBB- 09/07/15 412 0.1x 105.70 1.7%


6.500% USD senior notes due 2016 USD 6.500% No 15/07/16 599 0.2x 110.31 1.9%



6.625% GBP senior notes due 2017 GBP 6.625% No 30/05/17 236 0.1x 119.92 3.3%




10.000% GBP senior notes due 2017 GBP 10.000% Yes: 8.750% @ Baa3/BBB- 29/11/17 412 0.1x 111.66 3.2%











Total bonds 11,111 3.6x

Other debt, including bilateral facilities and subsidiary debt 971 0.3x

Total debt 13,696 4.4x

Cash & cash equivalent -3,346 -1.1x

Derivatives and other adjustments -20 0.0x

Net debt 10,330 3.3x


Minorities and other 1,951 0.6x

EV 27,770 9.0x

March 25, 2014

9

Buzzi Unicem 25/03/2014


Buzzi Unicem Spa Sn notes 5.125% 09/12/16 NA BB+ (neg.) 108.3 1.94% 135

Buzzi Unicem Spa Sn notes 6.250% 28/09/18 NA BB+ (neg.) 113.2 3.06% 217


Products: - Italy-based producer of cement (c.65% of sales), ready-mix and aggregate (c.35% of sales).

- The Group’s other activities include the production of admixtures, mortars and expanded clay (c.1% of sales).

- The company ow ns 97% of German cement manufacturer Dyckerhoff, w hich operates in Western and Eastern Europe, as w ell as in the US.

Customers: - Italy (c.15% of revenue / neg. EBITDA), US (31% of EBITDA), Mexico (c.19%), Russia (c.15%), Germany (c.15%), Luxembourg (c.3%), Poland (c.5%).


- Producers w ith strong presence in Mediterranean area: Lafarge, Italcementi. Competition tends to occur at the regional level due to high transportation costs.

Ow nership: - Listed in Italy (BZU IM) w ith market cap of €2,438m (as of 25-Mar-14).

- 56% ow ned by the Buzzi family (through Presa and Fimedi).

(1) Based on management estimates (2011).

Key considerations

Positives: - Strong performance in the US. Strong exposure to Germany, w hich could benefit from macro pick-up.

- Ability to preserve volumes in Italy to some extends through exports (reccent development of port capacities).


Negatives: - Exposure to Italian market. Further deterioration of profitability in the country in 2013.

- Diff icult market conditions expected in 2014 in Russia (cost inflation) and Mexico (volume and pricing pressure in 2013, creating some risk for 2014)

- Leakage to minorities from Mexican operations (50% ow ned). Given new IFRS rules, Mexican operations w ill be accounted proportionnally in EBITDA starting 2014.


Recent developments

- Placed on BB+ negative outlook in Oct-13.

Divisional Split:


- On 18-Feb-14, Buzzi acquired a 25% stake in the Italian subsidiary of Austrian producer Wietersdorfer, in exchange for the transfer of its Cadola plant (0.3mt) and

potentially the Travesio plant (0.4mt). The agreement is to be f inalised by 30-Jun-14. Total consideration for the transaction is €22m, although w e do not expect any

cash payment to be made.

- Italy (#2 cement producer after Italcementi, 5.8bn tons, 16% market share), Germany (#2, 5.4bnt, 14%), US (#5, 6.1bnt, 9%), Mexico (#4, 2.8bnt, 12%), Poland (#5,

1.6bnt, 9%), Ukraine (#3, 1.9bnt, 18%).(1)

Italy16%

Central Europe

27%

Eastern Europe

22%

USA26%

Mexico9%

RevenuesCentral Europe

19%

Eastern Europe31%

USA31%

Mexico19%

EBITDA

Note: Excl. Italy region due to negativ e EBITDA.

Financial summary (€ millions) Q3 12 Q3 13 H1 12 H2 12 H1 13 2010 2011 2012 LTM 2013E 2014E 2015E 2016E

Period ending 30/09/12 30/09/13 30/06/12 31/12/12 30/06/13 31/12/10 31/12/11 31/12/12 30/09/13 31/12/13 31/12/14 31/12/15 31/12/16

Sales 795 805 1,351 1,463 1,274 2,648 2,787 2,813 2,746 2,753 2,860 3,074 3,378

Sales growth y-o-y NA 1.2% NA NA -5.7% NA 5.2% 0.9% NA -2.1% 3.9% 7.5% 9.9%

EBITDA 171 185 197 258 151 387 434 455 422 436 501 588 688

EBITDA growth y-o-y NA 8.0% NA NA -23.6% NA 12.2% 4.8% NA -4.2% 14.9% 17.3% 17.0%

EBITDA margin 21.6% 23.0% 14.6% 17.6% 11.8% 14.6% 15.6% 16.2% 15.4% 15.8% 17.5% 19.1% 20.4%

CAPEX (net) NA NA -51 -69 -77 -256 -99 -119 NA -184 -215 -240 -240

Interest NA NA -30 -46 -19 -81 -76 -76 NA -76 -79 -78 -77

Tax NA NA -18 -49 -29 -45 -42 -67 NA -67 -38 -57 -77

EBITDA-I-T-C NA NA 99 94 26 6 217 193 NA 109 169 213 294

Change in WC NA NA -52 53 -51 3 -23 1 NA 0 -21 -48 -68

Non-cash items and change in f inancial receiv. / payab. NA NA -18 -26 -16 -6 -43 -44 NA -42 -40 -40 -40

FCF NA NA 29 121 -42 2 151 150 NA 68 108 125 186

Acquisitions (net) NA NA -58 -26 -1 4 -4 -84 NA -1 0 0 0

Dividends NA NA -27 -13 -21 -34 -8 -41 NA -35 -36 -37 -42

FCF after acquisitions / dividends NA NA -56 81 -64 -28 140 25 NA 32 73 88 143

Net debt 1,003 1,108 973 1,188 1,161 1,010 901 1,188 1,108 1,108 1,035 947 804

EBITDA / Interest NA NA 6.6x 5.7x 7.9x 4.8x 5.7x 6.0x NA 5.8x 6.4x 7.5x 8.9x

Net debt / LTM EBITDA NA NA NA NA NA 2.6x 2.1x 2.6x 2.6x 2.5x 2.1x 1.6x 1.2x

FCF / Net debt NA NA NA NA NA 0.2% 16.7% 12.6% NA 6.1% 10.5% 13.2% 23.1%

Capitalisation (30/09/13) Maturity Rate Size Book Liquid. Lev. Mkt. Lev. Px YTW

Bank overdrafts and borrow ing 74 719 0.2x 0.2x

Finance leases 3 - 0.0x 0.0x

Unsecured term loan 492 - 1.2x 1.2x

Buzzi senior notes 09/12/16 5.125% € 350 350 - 0.8x 0.9x 108 1.9%

Buzzi senior notes 28/09/18 6.250% € 350 350 - 0.8x 0.9x 113 3.1%

Convertibles 17/07/19 1.375% € 220 220 - 0.5x 0.5x 109 -0.3%

Other debt, including RC Lonestar bonds 282 0.7x 0.7x

Total debt 1,771 - 4.2x 3.9x

Cash -663 663 -1.6x -1.6x

Net debt 1,108 1,382 2.6x 2.3x



EV 3,720 8.8x

March 25, 2014

10

Italcementi 25/03/2014


Cement Francais Senior Notes 4.750% Apr-17 Ba2 BB+ 107.8 2.07% 144

Italcementi Senior Notes 6.125% Feb-18 Ba3 BB+ 112.1 2.80% 202

Italcementi Senior Notes 6.625% Mar-20 Ba3 BB+ 114.4 3.88% 274


Products: - Italy-based producer of cement and clinker (64%), aggregates (29%) and ready mixed concrete (6%) based in Italy.

- The company is one of the top 5 cement producer, and is active in 22 countries, primarily in the Mediterranean bassin.

- Italcementi ow ns 83% and consolidates Ciment Francais ("CMA FP").

Customers: - Central Western Europe: 53% of revenue / 39% of EBITDA (Italy: 15%/neg., France-Belgium: 35%/42%, Spain: 2%/neg., Greece: 1%/neg.).

- North America: 10%/9% (U.S.A., Canada, Puerto Rico).

- Emerging Europe, North Africa, Middle East: 22%/42% (Egypt: 12%/17%, Morocco: 8%/23%, Bulgaria: 1%/1%, Kuw ait: 1%/1%, Saudi Arabia).

- Asia: 13%/13% (Thailand: 6%/8%, India: 5%/4%, Kazakhstan: 1%/1%).

Competition: - Globel cement producers: HeidelbergCement, Lafarge, Holcim.

- Producers w ith strong presence in Mediterranean area: Lafarge, Titan, Buzzi. Competition tends to occur at the regional level due to high transportation costs.

- Leading market position in Italy (c.25% of volumes).

Ow nership: - Italcementi is listed in Italy (IT IM) w ith market capitalisation of €2.1bn (as of 25-Mar-14).

- 60% ow ned by Italmobiliare (ITMR IM).

Key considerations

Positives: - Strong market position in Emerging markets, in particular in Morocco (40%+ EBITDA margin).


Negatives:

- Exposure to w eak construction markets such as Italy, although some improvement came in 2013.

- Geographical concentration (although 82% of EBITDA is generated from France/Belgium, Egypt and Morocco).


Recent developments

- On 7-Mar-14, Italcementi announced a tender offer on Ciment Francais minorities, funded by a €450m rights issue by Italcementi.

- Placed on BB+ negative outlook by S&P in May-13.

Waterfall analysis

- Debt issued at Cement Francais is structurally senior to debt ussed at Italcementi.

Divisional Split:

- Importance of minority interest, and implied lack of full control, as w ell as cash f low leakage, in particular in Egypt and Marocco. How ever the recent acquisition of the

remaining stake of Ciment Francais should help minimising this leakage going forw ard.

- Italcementi benefits from senior unsecured claims over subsidiaries such as Ciment Francais through dow nstream intergroup senior loans. Documentation includes a

cross-default clause.

- Dow ngraded from Ba2 to Ba3 by Moody's in Aug-13. Follow ing the announcement of the potential purchase of Cement Francais minorities, Italcementi Ba3 w as placed

under "review for upgrade", and Ciment Francais Ba2 under "review for direction uncertain" (Mar-14).

Capitalisation (31/12/13) Maturity Rate Size Book Lev. Px YTW

IT IM CMA FP

Cash and cash equivalents 484 0.8x 476 0.7x

Bank debt 619 1.0x NA NA

Other secured debt 222 0.4x NA NA

Ciment Francais senior notes 2017 4.750% 500 0.8x 107.76 2.07% 500 0.8x

Italcementi senior notes 2018 6.125% 500 0.8x 112.13 2.80% NA NA


Faire value adjustments -157 -0.2x NA NA

Total debt 2,423 3.8x 1,299 2.0x

Net debt 1,939 3.1x 823 1.3x

Market capitalisation 2,092 3.3x 2,792 4.3x

Minorities and other 1,173 1.9x 787 1.2x

EV 5,203 8.2x 4,402 6.8x

Cement and

clinker64%

RMC & Aggregate

30%

Misc6%

Revenue

CW Europe

52%

EEMEA22%

Asia12%

Amer10%

Cement & clinker

4%

Revenue

CW Europe

37%

EEMEA41%

Asia12%

Amer9%

Cement & clinker

1%

Recurring EBITDA

Financial summary ($ millions) Q1 13 Q2 13 Q3 13 Q4 13 2009 2010 2011 2012* 2013

Period ending 31-Mar-13 30-Jun-13 30-Sep-13 31-Dec-13 31-Dec-09 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13

Central Western Europe 493 631 572 539 2,754 2,407 2,681 2,417 2,235

North America 74 128 129 98 401 415 405 440 429

Emerging Europe, North Africa and Middle East 243 262 204 235 1,345 1,379 1,030 1,009 944

Asia 136 142 134 121 412 449 499 521 532

Cement and clinker trading 40 56 44 37 253 229 183 213 176

Other 75 86 71 77 - 425 424 342 308

Eliminations -95 -113 -91 -89 -159 -513 -502 -462 -389

Sales 965 1,192 1,061 1,018 5,006 4,791 4,721 4,479 4,235

Sales growth y-o-y -10.0% -3.0% -3.2% -6.0% NA -4.3% -1.5% -5.1% -5.4%

Recurring EBITDA 88 210 175 158 972 836 697 643 631

Recurring EBITDA growth y-o-y -30.2% 4.1% 1.6% 17.8% NA -13.9% -16.6% -7.8% -1.9%

Recurring EBITDA margin 9.2% 17.6% 16.5% 15.5% 19.4% 17.5% 14.8% 14.4% 14.9%

CAPEX (net) -64 -75 -94 -103 -699 -523 -400 -370 -336

Interest -26 -27 -35 NA -106 -152 -131 -133 NA

Tax -22 -43 -25 NA -136 -133 -118 -129 NA

EBITDA-I-T-C -24 65 21 NA 31 28 49 11 NA

Change in WC -82 60 -30 85 380 134 -21 112 33

Other and non-cash items in EBITDA NA NA NA NA -24 20 0 47 NA

FCF -105 126 -10 NA 387 182 28 170 NA

Acquisitions (net) 3 14 2 19 58 143 182 85 38

Dividends 0 -51 -31 NA -121 -96 -117 -94 NA

Other Equity transaction NA NA NA NA 0 -1 26 -10 NA

Restructuring -2 -9 -8 NA -34 -12 -26 -56 NA

FCF after acquisitions / dividends -105 80 -46 NA 291 216 94 95 NA

Net debt 2,106 2,001 2,031 1,939 3,236 2,231 2,093 1,998 1,939

Adjusted EBITDA / Interest 3.4x 7.8x 5.1x NA 9.2x 5.5x 5.3x 4.8x NA

Net debt / LTM Adjusted EBITDA 3.5x 3.3x 3.3x 3.1x 2.5x 2.7x 3.0x 3.1x 3.1x

FCF / Net debt NA NA NA NA 12% 8% 1% 8% NA

March 25, 2014

11


Capitalisation (31/12/13) Maturity Rate Size Book Lev. Px YTW

IT IM CMA FP

Cash and cash equivalents 484 0.8x 476 0.7x

Bank debt 619 1.0x NA NA

Other secured debt 222 0.4x NA NA

Ciment Francais senior notes 2017 4.750% 500 0.8x 107.76 2.07% 500 0.8x



Faire value adjustments -157 -0.2x NA NA

Total debt 2,423 3.8x 1,299 2.0x

Net debt 1,939 3.1x 823 1.3x

Market capitalisation 2,092 3.3x 2,792 4.3x

Minorities and other 1,173 1.9x 787 1.2x

EV 5,203 8.2x 4,402 6.8x

Maturity Profile (31/12/13) 2014 2015 2016 2017 2018 2019 2019+

Amt. due 330 43 118 519 518 77 819

Financial summary ($ millions) Q1 13 Q2 13 Q3 13 Q4 13 2009 2010 2011 2012* 2013

Period ending 31-Mar-13 30-Jun-13 30-Sep-13 31-Dec-13 31-Dec-09 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13

Central Western Europe 493 631 572 539 2,754 2,407 2,681 2,417 2,235

North America 74 128 129 98 401 415 405 440 429

Emerging Europe, North Africa and Middle East 243 262 204 235 1,345 1,379 1,030 1,009 944

Asia 136 142 134 121 412 449 499 521 532

Cement and clinker trading 40 56 44 37 253 229 183 213 176

Other 75 86 71 77 - 425 424 342 308

Eliminations -95 -113 -91 -89 -159 -513 -502 -462 -389

Sales 965 1,192 1,061 1,018 5,006 4,791 4,721 4,479 4,235

Sales growth y-o-y -10.0% -3.0% -3.2% -6.0% NA -4.3% -1.5% -5.1% -5.4%

Recurring EBITDA 88 210 175 158 972 836 697 643 631

Recurring EBITDA growth y-o-y -30.2% 4.1% 1.6% 17.8% NA -13.9% -16.6% -7.8% -1.9%

Recurring EBITDA margin 9.2% 17.6% 16.5% 15.5% 19.4% 17.5% 14.8% 14.4% 14.9%

CAPEX (net) -64 -75 -94 -103 -699 -523 -400 -370 -336

Interest -26 -27 -35 NA -106 -152 -131 -133 NA

Tax -22 -43 -25 NA -136 -133 -118 -129 NA

EBITDA-I-T-C -24 65 21 NA 31 28 49 11 NA

Change in WC -82 60 -30 85 380 134 -21 112 33

Other and non-cash items in EBITDA NA NA NA NA -24 20 0 47 NA

FCF -105 126 -10 NA 387 182 28 170 NA

Acquisitions (net) 3 14 2 19 58 143 182 85 38

Dividends 0 -51 -31 NA -121 -96 -117 -94 NA

Other Equity transaction NA NA NA NA 0 -1 26 -10 NA

Restructuring -2 -9 -8 NA -34 -12 -26 -56 NA

FCF after acquisitions / dividends -105 80 -46 NA 291 216 94 95 NA

Net debt 2,106 2,001 2,031 1,939 3,236 2,231 2,093 1,998 1,939

Adjusted EBITDA / Interest 3.4x 7.8x 5.1x NA 9.2x 5.5x 5.3x 4.8x NA

Net debt / LTM Adjusted EBITDA 3.5x 3.3x 3.3x 3.1x 2.5x 2.7x 3.0x 3.1x 3.1x

FCF / Net debt NA NA NA NA 12% 8% 1% 8% NA

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This information has been issued by Credit Suisse Securities (Europe) Ltd. ("CS"), which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority for the conduct of investment business in the United Kingdom. These materials have been prepared by a Credit Sector Strategist ("Strategists"). Strategists are employees of CS's Trading Desk and are supervised by Trading Desk managers. Their primary responsibility is to support the trading desk. To that end, Strategists prepare trade commentary, trade ideas, and other analysis ("analysis") in support of CS's trading desks. The information in these materials has been obtained or derived from publicly available sources believed to be reliable, but CS makes no representations as to its accuracy or completeness. Strategists may receive additional or different information subsequent to your receipt of these materials. The analysis of Strategists is subject to change, and subsequent analysis may be inconsistent with information previously provided to you. CS does not undertake a duty to update these materials or to notify you when or whether the Strategist's analysis has changed. These materials and other written and oral communications from Strategists are provided for information purposes only, do not constitute a recommendation and are not a sufficient basis for an investment decision. Strategists are not part of CS's Fixed Income Research Department, and the written analyses disseminated by Strategists are not research reports. The views of CS's Trading Desks, including Strategists, may differ materially from the views of the Research Department and other divisions at CS. CS has a number of policies in place designed to ensure the independence of CS's Fixed Income Research Department including policies relating to trading securities prior to distribution of research reports. These policies do not apply to the analysis provided by Strategists. CS may have accumulated, be in the process of accumulating, or accumulate long or short positions in the subject security or related securities on the basis of Strategists' analysis. Trading desks may have, or take, positions inconsistent with analysis provided by Strategists.

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