2012  2013  
Price:  4.19  EPS  $0.00  $0.00  
Shares Out. (in M):  177  P/E  n/m  81.6x  
Market Cap (in $M):  962  P/FCF  0.0x  0.0x  
Net Debt (in $M):  2,283  EBIT  0  0  
TEV ($):  3,245  TEV/EBIT  27.7x  20.2x  
Borrow Cost:  NA 
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Trade
Thesis
* Note: “carry” on dividend differential is threefold: (i) savings shares are required to pay higher dividends than ordinary shares; (ii) savings shares currently have accrued “catchup” dividends that need to be paid before any dividend can be paid to ordinary shares; and (iii) (depending on your ratio) this trade will have you owning more savings shares than you are short ordinary shares)
Risks
Business Overview
Operational Performance – Likely to Remain Challenging
Leverage

2004 
2005 
2006 
2007 
2008 
2009 
2010 
2011 
Sep12 
Net Debt 
1.7bn 
2.2bn 
2.4bn 
2.7bn 
2.4bn 
2.2bn 
2.1bn 
2.1bn 
2.2bn 
ND/EBITDA 
1.4x 
1.9x 
1.5x 
1.6x 
2.4x 
2.5x 
2.7x 
3.0x 
3.5x 
Valuation

EV/EBITDA (2012) 
EV/EBITDA (2013) 
EV/EBIT (2012) 
EV/EBIT (2013) 
P/E 
P/E 
Italcementi 
7.4x 
6.7x 
27.7x 
20.2x 
n/m 
81.6x 
vs. Peers 
(5.1%) 
(6.9%) 
108% 
77% 
n/m 
423% 







CRH 
9.0x 
8.4x 
16.5x 
14.9x 
19.1x 
16.3x 
Heidelberg Cement 
6.8x 
6.3x 
10.5x 
9.2x 
15.7x 
11.6x 
Holcim 
8.5x 
7.6x 
14.2x 
11.9x 
19.8x 
15.1x 
Lafarge 
8.1x 
7.4x 
12.0x 
10.3x 
24.2x 
13.2x 
Buzzi 
6.8x 
6.1x 
13.5x 
10.9x 
38.8x 
21.7x 
Average (exc. IT) 
7.8x 
7.2x 
13.3x 
11.4x 
23.5x 
15.6x 
Source: Bloomberg Consensus
Background on IT Share Classes
IT 10 Year Dividend History

Ordinary Shares 
Savings Shares 
2001 
0.24 
0.27 
2002 
0.27 
0.30 
2003 
0.27 
0.30 
2004 
0.30 
0.33 
2005 
0.33 
0.36 
2006 
0.36 
0.39 
2007 
0.36 
0.39 
2008 
0.18 
0.21 
2009 
0.12 
0.12 
2010 
0.12 
0.12 
2011 
0.12 
0.19 
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