The Board of Directors of BUZZI UNICEM met on 29th March 2001 to examine the financial statements for the year ended December 31, 2000.

The Group’s results confirm the positive trend and are still on the rise compared with the previous year’s, in spite of increases in energy costs and signs of slowing-down in the US market.

Consolidated Financial highlights

                                             

(bitl)	Year 2000	Year 1999	% change
Net Sales	2583.2	2223.7	+16.2%
EBITDA	802.8	645.3	+24.4%
% of net sales	31.1%	29,0%
EBIT	567.4	446.9	+26.9%
Consolidated net income	310.6	230.1	+35.0%
Cash Flow	581.3	477.4	21.8%

Overall sales amounted to 12.6 million tonnes of cement (+4.7%) and 8.2 million cubic meters of ready-mix concrete (+5.7%).
A positive effect on the consolidated results comes from the higher value of Usd and Mxp compared with Italian Lira. This effect is in the range of 5% for net sales, 6% for EBITDA and 9% for net income.

Highlights on markets:
In Italy net sales, including cement and ready-mix operations, totalled 1483 bitl, up 12.8% over 1999. Sales volumes amounted to 7.6 million tonnes of cement (+4%) and 6.5 million cubic meters of ready-mix concrete (+9.3%). The good trend on the domestic market was partially mitigated by the decrease in exports, mainly to the United States.
EBITDA of 364.5 bitl is up 26.7%, notwithstanding the high increase in energy costs.

The US market reported net sales of 891.8 bitl (+10.4%), EBITDA of 309.6 bitl vs. 281.2 bitl in 1999 (+10.1%). Economic results benefit from an Itl/Usd higher rate of exchange while business activities are stable.

Mexico – For the Group’s stake (50%) net sales amounted to 229.8 bitl (+64%) and EBIDTA to 128.7 bitl (+68.5%).
On an upward market, with cement consumptions increased by 9% approximately, the subsidiary Corporacion Moctezuma put on stream a 2nd production line, thus doubling the capacity (2.4 million tonnes).

The Group’s net financial position at the end of the year reports a net debt of 357.1 bitl, falling by 129.3 bitl. compared with the beginning of the year, after capital expenditures in the year of 314 bitl, 160 of which in new production lines and 20 bitl approximately in industrial equity investments.
Group’s stockholders’ equity at the end of the year is 1785 bitl vs. 1414 bitl at the end of 1999 (+371 bitl).

The parent Company , Buzzi Unicem SpA, reported net sales of 655 bitl (+12.6%), EBITDA of 223 bitl (+25%) and EBIT of 115.7 bitl vs. 100.5 bitl in 1999, after 30 bitl higher
depreciation mainly due to the voluntary revaluation of the fixed assets.
Net income of 48.8 bitl (64.9 bitl in 1999) is influenced, besides higher depreciation, by lower dividends distributed by subsidiaries (8.2 bitl in 2000 vs. 45.5 bitl in 1999).
The parent Company’s cash flow is 156 bitl vs. 143 bitl in the previous year.

The Board of Directors will propose to the Shareholders’ General Meeting, convened for 11th May 2001, the distribution of a dividend of €0.20 (387 lire approximately) to ordinary shares and of €0.224 (434 Lire approximately) to savings shares, with partial withdrawal from the reserves (in 1999 the dividend was 300 Lire to ordinary shares and 340 Lire to savings shares). The dividend will be payable as from 24 May 2001.

In the current year the outlook is positive with Italian and Mexican markets still on the rise, while in the US the present uncertain economic situation should not significantly affect the construction sector, currently supported by important public investments in infrastructures.

The Board of Directors fixed the principles of the Company’s Corporate Governance, approving the report on the compliance with the Code of Ethics which will be made available at the 11th May Annual Shareholders’ Meeting.
Within the above Corporate Governance system, the Board of Directors resolved to submit to the Shareholders’ approval the adoption of the rules which shall govern the Company’s Shareholders’ Meetings.

Moreover the Board of Directors resolved to ask the Shareholders’ Meeting to authorise the buying of a maximum of no. 2,000,000 ordinary and/or savings treasury shares.