Cementos Portland Valderrivas ended 2011 with revenues of 609 million euro (Spain accounts for 490 and other countries for 119). EBITDA totalled 150 million euro. Earnings attributed to equity holders of the parent company amounted to -327 million euro, of which 311 million euro correspond to the above-mentioned adjustments. But for the writedowns, this item would have amounted to -16 million euro.

The balance sheet adjustments are as follows: 261 million euro for impairment of the carrying value of existing goodwill, especially that relating to Corporación Uniland; 42 million euro for asset impairment, especially in the mortar, aggregate and concrete segments; and 33.6 million euro for impairments of equity holdings and for provisions for expenses.

NewVal 2012-13 Action Plan

Juan Béjar, the new Chairman and CEO of Cementos Portland Valderrivas, presented to the Board of Directors the balance sheet adjustments at 2011 year-end and the NewVal 2012-13 action plan, which aims to adapt the group's structure to demand and prepare for the new economic cycle. The group's new strategy seeks to increase EBITDA by more than 60 million euro in two years.

The NewVal Plan includes the review and adjustment of the industrial structure in Spain, adapting it to the market situation and optimising operations; a structural reorganisation of the businesses in Spain, increasing process standardisation and centralisation and enhancing interaction with customers; and a revision of corporate functions, adapting them to the new market conditions.

Actions in 2011

Surpassing its initial 50 million euro target, the Excellence Plan 2011 achieved 55 million euro in additional savings and revenues in 2011 (40 million in Spain and 15 million in the US), through measures which are impacting most of the group's areas. Unlike previous plans (Plan 100 and Plan 100+), which focused on costs, the Excellence Plan also focused on improving the group's top line. The savings generated to 2010 as part of Plan 100+ are recurring.

The group continues to advance with its alternative fuel policy and has achieved cumulative savings of over 6 million euro as a result. CPV started to use alternative fuels at two more Spanish plants in 2011. The company also obtained an amendment to the Integrated Environmental Authorisation to enable it to burn biomass at the Olazagutía plant. All of its plants in Spain now have permission to burn certain alternative fuels. Alternative fuel accounted for over 13% of total fuel usage in Spain, and half of the plants exceeded the European average (20%). The goal is for alternative fuel to represent 30% of the group total by the end of 2012.

Cementos Portland Valderrivas remains firmly committed to innovation in order to promote a cultural change in products, services and processes. In the last two years, it has developed 11 new special cements with strong competitive advantages, in terms of shorter setting time, strength in adverse external conditions, notably lower environmental impact in manufacturing, and inertisation of pollutants. In 2011, the group started to develop an ambitious project with a view to boosting innovation at all levels.