The Cementos Portland Valderrivas group performed very well in the first quarter of 2007, with strong growth in all line-items. Sales amounted to 471.7 million euro in 1Q07, 69.6% more than in the same period of 2006.

Spain provided 79.4% of sales, and the other 20.6% were obtained in other countries. The 374.6 million euro of sales in Spain represent a 69.6% increase, while the 97.1 million euro in international sales represent a 69.7% increase on 1Q06.

The figures for 1Q07 gained notably from the two major acquisitions in 2006: the takeover of Cementos Lemona in March, and the acquisition of 51% of Corporación Uniland in August.

In recent months, Cementos Portland Valderrivas exercised call options on 289,690 shares of Corporación Uniland, S.A. (5.50% of capital), with the result that it owned 56.55% at 31 March 2007. Subsequently, on 12 April 2007, the company acquired another 130,000 shares of Corporación Uniland, S.A., which represent 2.47% of its capital, with the result that Cementos Portland Valderrivas, S.A. owned 59.20% of Corporación Uniland, S.A. through Portland, S.L. at that date.

EBITDA amounted to 150.2 million euro, 65.1% more than in 1Q06, as a result of growth in sales volumes and higher average prices.The EBITDA margin was 31.8%.

Earnings before taxes (EBT) amounted to 77.5 million euro, 24.4% more than in 1Q06 (62.3 million euro). The tax rate was 29.8%.

Net income attributable to the parent company amounted to over 43 million euro. However, adjusting the 12 million euro of minority interests to 7.6 million euro, which would be the figure if all the put options on Corporación Uniland were exercised, net income would have increased by 18.6% with respect to 1Q06.

Funds from operations increased by 59.2% to 150.2 million euro.

Capital expenditure totalled 98.9 million euro, including: 71.6 in financial investments (71.4 million euro to partly exercise the put option on Corporación Uniland), 25.1 million euro in property, plant and equipment, and 2.2 million euro in intangible assets.

Sales in terms of physical units were as follows: 4.7 million tonnes of cement and clinker (+81.3%), 2.1 million cubic metres of concrete (+62.3%), 6.3 million tonnes of gravel (+56.4%), and 0.7 million tonnes of dry mortar (+199.1%).

The CPV group had 5,056 employees at 31 March 2007. The work force increased by 2,042 with respect to 31 March 2006 due to the addition of staff of Corporación Uniland and Lemona.

The Board of Directors will propose that the Shareholders' Meeting approve a supplementary dividend of 2.08 euro per share. The interim dividend out of 2006 income amounted to 1.08 euro. The 3.16 euro dividend out of Cementos Portland Valderrivas' 2006 income represented a 50% payout and was 26.4% higher than in the previous year (2.50 euro).The 2007 dividend will exceed 88 million euro.

Key figures (million euro)

Aggregated sales (physical units)