Interim Report of Dyckerhoff AG

Transcription

1 Interim Report of Dyckerhoff AG as of March 31, 2008

2 2 interim report of dyckerhoff ag Construction sectors driving growth in Eastern Europe Group sales up by 36 % Full-year forecast slightly improved Dear Shareholders, In the following we will provide you with an overview of the development of the Dyckerhoff Group in the first quarter of the 2008 financial year. Interim Management Report of the Dyckerhoff Group Overview of Group Business Trends The Dyckerhoff Group at a Glance Change in % Volume cement (mn. t) Volume concrete (mn. m 3 ) Sales EBITDA EBIT (operating result) Result before income taxes Net profit 40 8 Capital Expenditure Employees (March 31) 7,457 6,918 8 The overall business environment in our European markets and Russia was positive in the first three months of this year. There was expansion in the construction sectors in the countries of Eastern Europe and in the Netherlands, while construction activity developed on a modest scale in Germany and Luxembourg. In the USA, on the other hand, the pace of economic growth continued to slow due to the

3 interim report of dyckerhoff ag 3 real estate crisis, with effects on the U.S. construction sector. The volume of cement and other hydraulic binding agents rose by 5 %, to 3.5 million tons, in the first three months of The increase in concrete volume was primarily due to the consolidation of the Dutch Dyckerhoff Basal Group that we consolidate since June There was a corresponding rise in Group sales by 36 %, or EUR 105 million, to EUR 400 million. Adjusted for changes in the composition of the consolidated group, the growth rate for Group sales was 23 %. Currency effects reduced the sales figure by EUR 9 million. The share of Group sales contributed by countries outside Germany was, at 71 %, five percent higher than in the first quarter of last year. EBITDA soared by EUR 48 million to EUR 91 million, more than doubling last year s figure. Neither currency effects nor changes in the composition of the consolidated group had any significant impact: the former pushed down the net income result by only EUR 3 million, while the latter had a positive effect in the amount of EUR 2 million. With a EUR 1 million rise in depreciation and amortization, EBIT rose by EUR 47 million, to EUR 64 million. Net interest and other financial results, along with net investment income, fell by a total of EUR 3 million. The result before taxes improved by a total of EUR 44 million, to EUR 55 million. The net profit figure of EUR 40 million, which includes a rise of EUR 32 million, was significantly higher than for the same period last year. The large projects in Russia, the Ukraine, and the USA pushed capital expenditure to a higher level than last year. The number of employees rose largely because of the consolidation of the Dyckerhoff Basal Group.

4 4 interim report of dyckerhoff ag Sales by divisions and products Change in % Germany / Western Europe Eastern Europe USA Group Cement Concrete The Germany / Western Europe division benefited both from increased volumes and prices and from the first-time consolidation of the Dyckerhoff Basal Group. Dyckerhoff Basal contributed EUR 32 million to Group sales. Growth in the Eastern Europe division was reflected not only in increased volume but also in higher prices. Sales in the USA division were down from last year as a result of the crisis in American residential construction and the weakness of the U.S. dollar. EBITDA by divisions Change in % Germany / Western Europe 21 9 Eastern Europe USA Divisions Central Services Group The bulk of the improvement in EBITDA after allowing for changes in the composition of the consolidated group and for currency effects was achieved in Eastern Europe, at EUR 44 million, but Germany / Western Europe also made a contribution in the amount of EUR 10 million. We were able to offset cost increases in all of the countries in Western and Eastern Europe in which we operate. In the

5 interim report of dyckerhoff ag 5 United States, major impact was felt due to the decline in cement volume, which pushed down EBITDA by EUR 4 million. The result for Central Services was virtually unchanged. Research and Development One of our most important aims is to continue reducing our CO 2 emissions, which can be achieved by reducing the proportion of clinker in our new cements. Thus far, some of our customers, such as the manufacturers of concrete paving stones, concrete slabs, and concrete curbstones, have been using pure Portland cements (CEM I). To meet the needs of these customers, our new CEM-II cements must have properties comparable to those of Portland cements and deliver the same performance. These new, mixed cements (CEM II/M) have less Portland cement clinker and a larger proportion of alternative cement ingredients. Our researchers and developers are therefore investigating the efficiency of our CEM II cements with a vibration press production method that is used in the production of concrete goods. For this purpose, we are using new testing methods, such as the vibration penetration test. In this test, the earth-moist concrete, which contains much less water than normal ready-mixed concrete, is poured into a cylinder, pressed down with a superimposed load, and compacted on a vibrating table. After that the test specimen can be examined. We also use a laboratory paving-stone machine to simulate the practical application of the product. This means our customers can just go ahead and put the new type of cement into service we supply them with optimized concrete formulas right with the product.

6 6 interim report of dyckerhoff ag Dyckerhoff by regions Germany Key figures Germany Change in % Volume cement (mn. t) Volume concrete (mn. m 3 ) Sales of which Cement of which Concrete EBITDA Depreciation / amortization 9 9 EBIT (operating result) 3 3 The German economy grew by 2.5 % in 2007 an upturn that was generated by corporate investment and exports. The construction sector also delivered robust performance, with investments in this sector gaining by 2.3 % overall. However, it was only commercial and public-sector construction that were instrumental in that growth. Economic conditions continued to be favorable in the first quarter of 2008 and gross domestic product probably saw a further rise. On the back of the mild weather in January and February 2008, the German construction industry also set off to a good start in the new year. Compared with the exceptionally strong first quarter of 2007, however, the first quarter of 2008 is expected to show only slight improvement as far as construction investment is concerned. This development has also influenced the market for building materials: As of March 2008, cement consumption was marginally above the level for the first quarter of last year. In spite of the modest development of the market at the beginning of the year, we were able to raise our cement volume by means of exports to neighboring countries. Concrete volume, however, showed a slight decline. Our prices for cement and concrete went up by 9 % and 13 %, respectively.

7 interim report of dyckerhoff ag 7 Sales rose accordingly, by EUR 13 million. Changes in the consolidated group had no significant impact, increasing sales by EUR 2 million. There was also a clear improvement in EBITDA, which increased by EUR 6 million. With unchanged depreciation and amortization, EBIT also went up by EUR 6 million. Luxembourg Key figures Luxembourg Change in % Volume cement (mn. t) Sales EBITDA 7 3 Depreciation / amortization EBIT (operating result) 6 1 In Luxembourg, gross domestic product grew by around 6 % in 2007, but development in the construction sector was moderate. For the first quarter of 2008, our assumption is that the economy in general has developed positively. Construction activity was again subdued in the first quarter of 2008, with a slight rise in cement consumption. Our Luxembourg company s volume also increased, and prices were about 3 % higher. Operating sales rose by EUR 2 million. The nominal decline in sales was exclusively due to the exit of Marbrérie Jacquemart S. à r.l. in October EBITDA increased by EUR 4 million. This figure includes a book profit of EUR 7 million, which accrued to us through the sale of our minority interests in Eurobeton Holding S.A. With a slight improvement in depreciation and amortization, EBIT rose by EUR 5 million.

8 8 interim report of dyckerhoff ag Netherlands Key figures Netherlands Change in % Volume concrete (mn. m 3 ) Sales 32 EBITDA 2 Depreciation / amortization 1 EBIT (operating result) 1 Gross domestic product grew by 3.5 % in the Netherlands in 2007, with the major contributions coming from the services and construction sectors. Investment in construction is estimated to have risen by more than 5 %. We expect the Dutch economy to have shown continued growth in the first three months of The construction industry, too, continues to expand. Our company Dyckerhoff Basal Nederland B.V., which was established last year, saw a pleasing development in its volume. The Dyckerhoff Basal Group contributed EUR 32 million to sales and EUR 2 million to EBITDA. Depreciation and amortization came to EUR 1 million, thus producing an EBIT figure of EUR 1 million.

9 interim report of dyckerhoff ag 9 Poland Key figures Poland Change in % Volume cement (mn. t) Volume concrete (mn. m 3 ) Sales of which Cement of which Concrete EBITDA Depreciation / amortization EBIT (operating result) saw a 6.5 % rise in Poland s gross domestic product. Construction activity increased by around 13 % due to the rebound in investment demand, brisk domestic consumption, and the very mild weather at the beginning of the year. This positive development persisted in the first quarter of 2008 as well. Stronger demand came particularly from the residential and road construction segments. There was also a significant rise in cement consumption in the first three months of the year. The positive market environment made for an increase in both cement and concrete volume. Cement prices in Poland went up by 20 % and concrete prices by around 17 %. Higher volume combined with price increases resulted in a EUR 15 million increase in sales. The exchange rate effects included in this figure made a positive contribution of EUR 3 million. EBITDA improved by EUR 4 million. With a slight drop in depreciation and amortization, this meant EBIT went up by EUR 5 million.

10 10 interim report of dyckerhoff ag Czech / Slovak Republics Key figures Czech / Slovak Republics Change in % Volume cement (mn. t) Volume concrete (mn. m 3 ) Sales of which Cement of which Concrete EBITDA Depreciation / amortization EBIT (operating result) The Czech economy grew by 6.1 % in The ongoing upturn in general economic conditions had a positive effect on the construction sector as well: Investment in construction increased particularly because of the expansion of around 6 % in investment in commercial buildings (production facilities) and in residential construction. Our assumption is that gross domestic product continued to grow in the first quarter of The construction industry, too, showed positive development at the beginning of the year. Construction activity in the civil engineering sector, which shrank last year, showed significant improvement as a result of new construction and maintenance work on roads and freeways. Compared with the first quarter of 2007, which was a very robust period due to the mild winter conditions, construction activity in the other sectors experienced a slight decline. Demand for building materials continued to be strong, and there was a steep rise in Dyckerhoff s cement and concrete volumes. Cement prices rose by just under 5 % and those for concrete by nearly 3 %. Sales went up by EUR 14 million, chiefly on account of higher volumes and prices. Changes in the consolidated group had no significant impact. Exchange rate effects pushed up sales by EUR 4 million. EBITDA was up by EUR 3 million

11 interim report of dyckerhoff ag 11 over the same period last year. A slight rise in depreciation and amortization meant that EBIT was EUR 2 million higher than last year. Ukraine Key figures Ukraine Change in % Volume cement (mn. t) 0, Volume concrete (mn. m 3 ) Sales of which Cement of which Concrete EBITDA Depreciation / amortization 1 0 EBIT (operating result) The Ukraine s gross domestic product grew by 7.3 % in 2007 on the basis of brisk investment activity and robust private consumption. This also had a distinctly positive effect on construction activity. The Ukrainian economy continued to grow in the first quarter and the construction industry maintained its positive trend. Demand for cement during this period was also clearly above that of the same period last year. There was a corresponding increase in our cement and concrete volumes. High energy prices pushed up cement prices by 51 % and concrete prices by nearly 23 %. We increased our sales in the Ukraine by EUR 15 million. This was related to quantity and prices for both cement and concrete. Exchange rate effects reduced the sales figure by EUR 6 million. We were able to more than offset gas price increases by raising our product prices. EBITDA therefore rose significantly, by EUR 6 million. Depreciation and amortization went up by EUR 1 million and EBIT, consequently, by EUR 5 million.

12 12 interim report of dyckerhoff ag Russia Key figures Russia Change in % Volume cement (mn. t) Sales EBITDA Depreciation / amortization 1 1 EBIT (operating result) The Russian economy expanded by 8.1 % in The construction industry played a role in this growth, profiting from the brisk investment activity that resulted from continued strong demand for modernization on the part of private enterprise. There was also growth in the residential construction sector, with private construction projects showing significant expansion, particularly in urban hubs. Gross domestic product recorded a further increase in the first quarter, underscoring the positive trend for The development of the Russian construction industry and the market relevant for us the Ekaterinburg region continued to be positive. We were able to raise our cement prices by 117 %. In consequence, our sales went up by EUR 27 million. That amount includes exchange rate effects, which pushed down the sales figure by EUR 3 million. EBITDA improved strongly, by EUR 26 million. With no change in depreciation and amortization, we increased EBIT by EUR 26 million.

13 interim report of dyckerhoff ag 13 USA Key figures USA Change in % Volume cement (mn. t) Sales EBITDA Depreciation / amortization EBIT (operating result) 3 1 The real estate crisis has had a noticeably dampening effect on the U.S. economy. The weakness of the dollar allowed a substantial rise in exports, which, together with robust private consumption, enabled the gross domestic product to climb 2.2 % in As a result of countless payment defaults on home mortgages and the subsequent foreclosure sales, there was a steep drop in investment in private residential construction. At the end of the year, real construction investments, adjusted for price movements, were therefore down 5.5 % from last year s level. The economic situation deteriorated further in the first quarter of Multi-billion write-downs at the banks led to a further tightening of credit conditions for external capital with respect to both private persons and companies. The gloomy condition of the labor market and rising energy prices also helped to intensify the downturn. There was another steep decline in investment in residential construction in the first three months, a decline that the growth in commercial and public-sector construction was unable to offset. All these factors, plus the poor weather, caused a significant fall in the demand for cement. Volume at Buzzi Unicem USA declined likewise. In spite of stiffer competition, it was possible for us to keep cement prices stable.

14 14 interim report of dyckerhoff ag The developments described above had a corresponding impact on sales, which in local currency were down EUR 5 million. Currency effects also pushed the sales figure down by EUR 7 million. EBITDA fell by EUR 5 million. With a slightly lower level of depreciation and amortization, EBIT was EUR 4 million lower than last year.

15 interim report of dyckerhoff ag 15 Financial Position Balance Sheet Overview of the Dyckerhoff Group Balance Sheet At March 31, 2008 At December 31, 2007 Change in % Fixed assets 2,259 2,309 2 Other long-term assets Long-term assets 2,359 2,407 2 Short-term assets Total assets 3,095 3,189 3 Shareholders equity / minority interests 1,426 1,441 1 Long-term provisions and liabilities 1,266 1,311 3 Short-term provisions and liabilities Total liabilities and shareholders equity 3,095 3,189 3 The balance sheet total fell by 3 %, to EUR billion. Fixed assets declined by EUR 50 million owing to the lower U.S. dollar/euro exchange rate. The decline was partly offset by capital expenditure, since this was higher than depreciation and amortization. Changes in the consolidated group had no significant impact. Short-term assets declined by EUR 46 million, to EUR 736 million, because of the decrease in cash and cash equivalents and because of negative currency effects. Capital expenditure payments were made and we repaid shortterm bank liabilities. The seasonal rise in receivables and inventories, plus positive effects arising from changes in the composition of the consolidated group, brought about an increase.

16 16 interim report of dyckerhoff ag Shareholders equity, including minority interests, decreased overall by EUR 15 million, or 1 %, to EUR billion. The negative currency effects of EUR 53 million exceeded the net profit of EUR 40 million earned in the first quarter. Long-term provisions and liabilities decreased by EUR 45 million, or 3 %, to EUR billion owing to currency effects. Short-term provisions and liabilities fell by EUR 34 million, or 8 %, to EUR 403 million. The decrease was caused by the redemption of bank loans in an amount that exceeded the increase in other liabilities arising from accruals and deferrals for wage and salary payments, interest and other taxes. Neither exchange rate effects nor changes in the composition of the consolidated group had any significant impact. Contingent liabilities rose compared with the position as of December 31, 2007, largely due to order commitments for the capacity expansion at our Russian plant in Suchoi Log.

17 interim report of dyckerhoff ag 17 Outlook, Opportunities and Threats Outlook With the exception of the USA, our markets are set to grow, though we expect the pace of expansion to slow down in the current year on account of the crisis in the financial markets. In Germany, demand is being boosted by rising private consumption and marginal growth in investments. With exports up, the gross domestic product will probably grow by just under 2 %. GDP in Luxembourg is due to expand by 4 to 5%; the forecast for the Dutch economy is growth of 2 to 3 %. Growth of construction investment in Germany will likely be a modest 1 %, and it will come only from commercial and public-sector construction. As a result of the increase in value-added tax, investment in residential construction is expected to be slightly below the level of last year. In Luxembourg, we expect construction investment to hold steady at last year s level. Construction activity in the Netherlands is expanding in all sectors; the forecast for construction investment overall is around 3 %. We expect the Polish economy to grow by 5 to 6 % in 2008; extra construction projects connected with the European championships in soccer, which are to take place in Poland and the Ukraine in the summer of 2012, could even push up construction investments by over 15 %. The forecast for the Czech gross domestic product is a plus of 5 %; on the basis of somewhat modest development in building construction and rising investment in the civil engineering sector, we expect construction investment overall to increase by just under 4 %. Our expectation for the Ukraine and Russia for 2008 is economic growth of 6 % and over 7 %, respectively. The high level of investment which in the Ukraine is, among other things, related to the European soccer championships in 2012 will encourage the expansion of construction activities in these two countries. The U.S. economy will be adversely affected in 2008 as well by the consequences of the crisis on the real estate and

18 18 interim report of dyckerhoff ag financial markets. Because of the economic and monetary measures that have already been taken, many economists expect a mild and brief recession, one restricted to the first six months of the year. For the full current year, therefore, growth in the U.S. economy will be stagnant. Ongoing corrections on the housing market will cause another substantial fall in construction activity; construction investment is expected to suffer a decline of 12 % overall, and all sectors will be affected. Against the background of the above-stated expectations for the economy in general and the construction industry in particular, we anticipate that the Group s business development will continue to be positive this year. Different markets will develop differently. In Germany, cement consumption will increase only slightly. We expect a small rise in cement and ready-mixed concrete volumes. Overall, our sales in Germany will be slightly above last year s level. In Luxembourg we expect a stable market environment. The loss of a major project will cause both the ready-mixed concrete volume and the sales of our Dutch company to fall. While we anticipate slight gains in volume for cement and concrete in Poland, we expect that cement volume will remain stable, with a slight drop in ready-mixed concrete volume, in the Czech Republic. In Poland and in the Czech Republic, we anticipate an overall sales figure above that of last year. Growth in both our cement and our ready-mixed concrete segments is anticipated for the Ukraine, which would mean a further rise in sales. Our plant in Russia is working at full capacity, so there is no scope for a volume increase. However, rising prices in Russia will mean a substantial improvement in sales. On account of the weak residential construction market and intensifying competition, we expect to see an appreciably lower level of sales in the USA. On that basis we expect a slight improvement in Group sales and results.

19 interim report of dyckerhoff ag 19 Opportunities and Threats We are confident that in the remaining nine months of the year, our business will continue to grow on the back of economic activity in Western and Eastern Europe, though we expect the pace of expansion to slow down compared with last year. We anticipate an economic downturn in the USA that will have a negative effect on our business as well. To what extent our budget targets will be met depends largely on the development of the economy. We might not achieve our planned targets, at least in part, if economic development is poorer than expected. For us, this could result in an adverse development of cement consumption, with the result that our performance would fail to match up to our expectations. Conversely, of course, there is the chance that the economy, and thus the construction industry and, with it, cement / ready-mixed concrete consumption might grow stronger than anticipated in our key regions one possible consequence being that competitive conditions could shift more strongly in our favor and we can achieve higher prices. With regard to the general risk situation for Dyckerhoff AG and its subsidiaries, we refer to the comments in the annual financial statement for 2007, which continue to be valid without change.

20 20 interim report of dyckerhoff ag Report on Important Transactions with Related Parties In principle, all associated companies, persons, and entities can be considered related parties in the sense defined in IAS 24. Of particular importance for Dyckerhoff in this context are the majority shareholder Buzzi Unicem S.p.A. and RC Lonestar, which is jointly controlled by this company and Dyckerhoff. There is no business relationship with Fimedi S.p.A., which controls Buzzi Unicem S.p.A. Beyond that, there are significant relationships with the associated Sievert Group and with various associated companies in the Netherlands and Luxembourg. Dyckerhoff AG and RC Lonestar also maintain an ongoing business relationship with dy-pack Verpackungen Gustav Dyckerhoff GmbH. Mr. Gert Dyckerhoff, member of the Supervisory Board of Dyckerhoff AG, is a managing shareholder of dy-pack. Of minor importance in this context are our connections to other jointly controlled and associated companies, to other affiliated companies of Buzzi Unicem S.p.A., to the Board of Management, and to other members of the Supervisory Board and their immediate family members. The relationships between Buzzi Unicem S.p.A. and the Dyckerhoff Group are presented below: For details of the loan to Buzzi Unicem S.p.A. provided by RC Lonestar, we refer to the information on related parties in the notes to the consolidated financial statements as of December 31, 2007; there have been no changes. The conditions of this loan are unchanged and are still in keeping with the conditions of the corresponding liability, plus a handling margin in favor of RC Lonestar. As of March 31, 2008, there were receivables from this loan at RC Lonestar vis-à-vis Buzzi Unicem S.p.A. amounting to EUR 466,379 thousand. This figure must be shown proportionately in the Dyckerhoff consolidated financial statements, which, at a level of 48.5 %, means that the sum shown is EUR 226,194 thousand. Interest income on this loan from Buzzi Unicem S.p.A. in favor of RC Lonestar of proportionately EUR 3,712

21 interim report of dyckerhoff ag 21 thousand is included in the Dyckerhoff consolidated financial statements. From the accrued interest as of March 31, 2008, there were receivables from Buzzi Unicem S.p.A. in the proportional amount of EUR 3,415 thousand that must be shown. In previous years, Buzzi Unicem S.p.A. provided RC Lonestar with a guarantee to secure a loan on the capital market (U.S. private placement). The guarantee amount was USD 677 million as of March 31, Buzzi Unicem S.p.A. participated in the mezzanine financing in favor of Dyckerhoff AG in the amount of EUR 1 million. For details, we refer likewise to the information in the notes to the consolidated financial statements as of December 31, 2007; there have been no changes. On account of current interest payments at 4.5 % p.a. and additional payments of 2.5 % p.a., interest expenses of EUR 17,000 were incurred in the first quarter of Overall, as of March 31, 2008, there were liabilities, including accrued interest, amounting to EUR million due to Buzzi Unicem S.p.A from the mezzanine financing. In the first quarter of 2008, two companies in the Dyckerhoff Group billed Buzzi Unicem S.p.A. for deliveries and services in the amount of EUR 13,000. The net receivables thereof outstanding on March 31, 2008 were EUR 10,000. The relations between Dyckerhoff AG and RC Lonestar are described below: As of December 31, 2007, RC Lonestar had invested a sum of USD 65 million in Dyckerhoff AG without furnishing of security. The amount and conditions of this loan were unchanged as of March 31, The term of the loan was adjusted to Dyckerhoff AG s planned liquidity requirements and interest was paid on the loan at between 4.7 % and 4.8 %, depending on maturity. The terms were on the basis of USD LIBOR and in conformity with the marketplace. On that basis, Dyckerhoff paid interest in the amount of EUR 521,000

22 22 interim report of dyckerhoff ag in the first quarter of RC Lonestar also supplied Dyckerhoff AG with a guarantee of EUR 160 million in 2004, for which an annual surety commission of % was agreed. For this purpose, Dyckerhoff AG had to defer the amount of EUR 50,000 for the first quarter of In previous years, Dyckerhoff AG provided RC Lonestar with a guarantee to secure a loan on the capital market (USD bond). The guarantee amount is unchanged, at USD 316 million. The companies of the Dyckerhoff Group supplied cements to various companies in the Sievert Group for a total of EUR million. This resulted in net receivables of EUR 98,000 outstanding as of March 31, Sievert Handel Transporte GmbH, also a company in the Sievert Group, rendered logistics services for Dyckerhoff in the amount of EUR 849,000. This resulted in net liabilities of EUR 1,000 outstanding as of March 31, In addition to the operational business relations maintained between them, Dyckerhoff has also extended loans to two companies in the Sievert Group in the total amount of EUR million. The interest charged on the loans is 6.6 % and they are due for repayment on December 31, The interest a- mount deferred for the first quarter of 2008 was EUR 72,000. CIMALUX S.A., a company in the Dyckerhoff Group, supplied cement to various associated Luxembourg companies to a total value of EUR million. This resulted in net receivables of EUR million outstanding as of March 31, An associated company carried out transportation services for CIMALUX S.A. for EUR 109,000, which resulted in net liabilities of EUR 20,000 outstanding at the end of March Dutch companies in the Group supplied raw materials to associated Dutch companies to a total value of EUR 204,000. This resulted in net receivables of EUR 165,000 outstanding as of March 31, 2008.

23 interim report of dyckerhoff ag 23 In the first quarter of 2008, dy-pack sold cement sacks to Dyckerhoff AG for EUR 224,000, resulting in net liabilities of EUR 29,000 outstanding as of March 31, RC Lonestar was charged EUR 110,000 for cement sacks sold to it by dy-pack. There were no resulting liabilities from the transaction as of March 31, May 7, 2008 D Y C K E R H O F F A G The Board of Management

24 24 notes to the interim report Notes to the Interim Report Income Statement of the Dyckerhoff Group Sales Operating performance EBITDA Depreciation / amortization EBIT (operating result) Net investment income 1 1 Net interest and other financial results 10 7 Result before income taxes Income taxes 15 3 Net profit 40 8 Minority interests 9 4 Group net profit (attributable to Dyckerhoff) 31 4 Earnings per share (in EUR) - Common share Preferred share

25 notes to the interim report 25 Cash Flow Statement of the Dyckerhoff Group EBITDA Net investment income (without write-offs on investments) 1 1 Other net interest and other financial results 10 7 Tax payments 15 3 Net profit before depreciation / amortization and write-ups Other net cash used by operating activities Net cash provided by operating activities Net of cash paid for investments and cash acquired Net of cash received for companies sold and cash diposed of 0 0 Proceeds from purchase prices (Earn out) 15 4 Cash payments (-) / cash receipts (+) from acquisition and sale of securities not included in cash equivalents 0 10 Net cash used by investment activities Additions to bonds and notes 0 0 Redemption of bonds and notes 0 0 Additions to liabilities to banks 1 1 Redemption of liabilities to banks 52 1 Dividend paid by Dyckerhoff AG 0 0 Dividends to minority shareholders 0 2 Minority interest in capital decreases / increases 0 0 Net cash used by financing activities 51 2 Cash-effective changes in cash and cash equivalents Currency-related changes in cash and cash equivalents 9 1 Cash and cash equivalents at start of period Cash and cash equivalents at end of period

26 26 notes to the interim report Balance Sheet of the Dyckerhoff Group At March 31, 2008 At December 31, 2007 Intangible assets Property, plant and equipment 1,834 1,860 Investment properties 1 1 Financial investments Total fixed assets 2,259 2,309 Long-term receivables and other assets Deferred tax assets Other long-term assets Total long-term assets 2,359 2,407 Inventories Short-term receivables and other assets Cash and cash equivalents Total short-term assets Total assets 3,095 3,189

27 notes to the interim report 27 At March 31, 2008 At December 31, 2007 Shareholders equity without minority interests 1,374 1,396 Minority interests Total shareholders equity incl. minority interests 1,426 1,441 Long-term provisions Deferred tax liabilities Total long-term provisions and deferred tax liabilities Long-term liabilities Total long-term provisions and liabilities 1,266 1,311 Short-term provisions Short-term liabilities Total short-term provisions and liabilities Total liabilities and shareholders equity 3,095 3,189

28 28 notes to the interim report Changes in Shareholders Equity of the Dyckerhoff Group 2008 Shareholders equity without minory interests Shareholders equity including minority interests At December 31, ,397 1,441 Changes caused by cash flow hedge pursuant to IAS First-time adoption IAS 32 for partnerships 0 0 Currency changes Other income and expenses recognized directly in equity 0 0 Net results recognized directly in equity Net profit Total results for the period Dividend paid by Dyckerhoff AG for prior year 0 0 Dividends paid to (-) / loss compensations by (+) minority shareholders 0 0 Changes in the consolidated group and changes due to step acquisitions / disposals 2 2 Capital increase (+) / reduction (-) by minority shareholders 0 0 At March 31, ,374 1,426

29 notes to the interim report 29 Changes in Shareholders Equity of the Dyckerhoff Group 2007 Shareholders equity without minory interests Shareholders equity including minority interests At December 31, ,259 1,285 Changes caused by cash flow hedge pursuant to IAS First-time adoption IAS 32 for partnerships 0 0 Currency changes Other income and expenses recognized directly in equity 0 0 Net results recognized directly in equity Net profit 4 8 Total results for the period 9 5 Dividend paid by Dyckerhoff AG for prior year 0 0 Dividends paid to (-) / loss compensations by (+) minority shareholders 0 2 Changes in the consolidated group and changes due to step acquisitions / disposals 1 2 Capital increase (+) / reduction (-) by minority shareholders 0 0 At March 31, ,249 1,276

30 30 notes to the interim report Segment Reports by Regions January - March Germany / Western Europe Eastern Europe Sales in % of total Group EBITDA in % of total Group in % of sales Depreciation / amortization EBIT (operating result) Capital expenditure Employees (March 31) 1,836 1,548 4,588 4,429 Segment Reports by Products January - March Cement Sales in % of total Group EBITDA in % of total Group in % of sales Depreciation / amortization EBIT (operating result) Capital expenditure Employees (March 31) 5,460 5,317

31 notes to the interim report 31 USA Central Services / Reconciliation Group ,0 0, ,8 14, ,457 6,918 Concrete Central Services / Reconciliation Group ,8 14, ,811 1, ,457 6,918

32 32 notes to the interim report Comments on the Interim Report Accounting and Valuation Principles This Interim Report for the Dyckerhoff Group for the period ending March 31, 2008 has been prepared in accordance with the International Financial Reporting Standards (IFRS) valid as of March 31, 2008, adopted by the EU. The same accounting and valuation principles have been used as applied in the annual financial statements as of December 31, The explanations in the notes to the accounts in the Annual Report for 2007 therefore apply accordingly. Group of Consolidated Companies There have been the following changes in the group of consolidated companies compared with December 31, 2007: Germany / Western Europe At the beginning of 2008, the consolidated group was enlarged in the German ready-mixed concrete segment through the first-time inclusion of two smaller companies, both of which are wholly owned by us, and through the merger of a company that had not previously been consolidated. In addition, we increased our ownership interest in CIMALUX S.A. in Luxembourg slightly, to %. Eastern Europe Gradual, smaller acquisitions also took place in Russia and the Ukraine. Our ownership interest in ZAO Akmel increased by 2 %, to 100 %, with acquisition costs amounting to EUR 1.5 million. The ownership interest in VAT Volyn-Cement went up by 0.1 %, or EUR 0.1 million. The following table shows the initial balance sheet figures for the companies consolidated for the first time in the cur-

33 notes to the interim report 33 rent year as well as the effects on sales and results arising from the changes to the consolidated group as compared with the same period last year: Effects of changes in the group of consolidated companies Long-term assets 1 Short-term assets 3 Cash and cash equivalents 2 Long-term provisions and liabilities 1 Short-term provisions and liabilities 3 Sales 30 Net profit / loss 1 EUR 32 million of the sales, and EUR 1 million of net profit, for the first quarter of 2008 are attributable to the Dyckerhoff Basal Group in the Netherlands, which was consolidated for the first time as of June The other effects on sales and results are attributable to the balance resulting from the aforesaid acquisitions in the current year and the other changes in the consolidated group last year, in the period after April 1, Current year s changes in the group of consolidated companies had no impact on contingent liabilities. Seasonal Dependence of the Business As manufacturers of construction materials, the Dyckerhoff Group businesses produce and sell less products in many regions during the winter and springtime than in the summer and fall months.

34 34 notes to the interim report Events occurring after the Period Covered by Interim Report The rating agency Moody s upgraded Dyckerhoff s investment grade rating on April 24, The reason was our stable financial situation. The current ratings are: Moody s: Standard & Poor s: long-term: Baa2, short-term: P-2, outlook: stable long-term: BBB, short-term: A-2, outlook: stable Future-oriented Statements and Forecasts The Interim Report at hand contains future-related statements, which are based on present expectations and forecasts in accordance with current information. Such statements are subject to risks and uncertainties and can thus deviate perceptibly from the actual development. Dyckerhoff AG is under no obligation to adjust any futureoriented statements made in this document.

35 notes to the interim report 35 Financial Calendar of Dyckerhoff AG May 9, 2008 Annual General Meeting 2008 May 12, 2008 Ex dividend date August 11, 2008 Interim Report 1 st half 2008 November 10, 2008 Interim Report 3 rd quarter 2008 February 2, 2009 Interim Report with first overview of 2008 results

36 Imprint Published by Dyckerhoff Aktiengesellschaft Biebricher Straße 69, D Wiesbaden P.O. Box 22 47, D Wiesbaden Telephone +49 (611) Fax +49 (611) Internet Contact Corporate Communications Telephone +49 (611) Fax +49 (611) Printing Zeidler GmbH & Co. KG, Mainz-Kastel Copies of this Interim Report can be requested via Internet German version: English version: This Interim Report appears in German (original version) and English (non-binding translation).