Heracles GroupHeracles GroupAnalysts’ Day – 24th May 2007Analysts’ Day – 24th May 2007

2

Highlights 2006

Financial & Market Overview

Financial Performance

AgendaAgenda

3

Highlights 2006Highlights 2006 Safety cascading program launched and in progress

Domestic market boomed due to private residential activity

Better market conditions for exports

Customer orientation program fully deployed

Increased fuel, power and raw material prices affected cost,

partly set off by performance improvement of fuel mix and

power consumption.

Headcount reduction compensated wages’ general increase

Organizational restructuring program initiated

4

Financial OverviewFinancial Overviewin mio € 2006 2005 variance

Turnover 693,7 609,1 13,9%

Profit from Operations, as analysed: 101,4 134,4 -24,6%

Cost of voluntary retirement scheme 14,9 - -

Partial recovery of fees by Greek State - (44,1) -

Profit from Operations - like to like 116,3 90,3 28,8%

Net Profit after Tax, as analysed: 58,0 158,7 -63,5%

Prior years income tax 10,1 - -

Net deferred tax income from real property revaluation

- (50,3) -

Net Profit after Tax - like to like 83,0 64,3 29,1%

Proposed dividend 1,00 € 0,95 € 5,3%

5

Market OverviewMarket Overview

Prior historical high in 2003 due to the Olympic Games construction projects Market boomed in 2006 to all times high due to private residential activity (VAT in

construction resulted in sharp increase of permits in 2nd half of 2005) Slow down of private housing smoothen by an increase in infrastructure construction One of the highest per capita consumptions worldwide, driven by

– Significant use of concrete in the buildings

– Housing & real estate viewed as a solid investment

– Potential for summer / secondary housing for Northern Europeans / development of resort constructions

– Infrastructure still lagging behind European standards

M tons

7,4 7,7 8,2 8,6 8,9 9,410,5 11,0

10,4 10,3

11,911,3

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 F2007

6

Market Shares – Customer StructureMarket Shares – Customer Structure

Heracles is the market leader (*)

(*) 2005 Cement Industry Association Statistics

Ready Mix concrete producers consume two thirds of the total cement supplies

Customer structure remains stable

Market Share

Competition

48%

Heracles52%

0%

Customer Structure 2006

Other5%

Ready Mix68%

Distri-butors21%

Constru-ction Co

6%

7

Heracles Sales BreakdownHeracles Sales Breakdown: Domestic / : Domestic / ExportsExports

Domestic market is a priority and absorbs the majority of production Exports (cement & clinker) cover the rest of our production capacity

4,7 4,9 5,4 5,9 5,4 5,36,2 5,8

4,3 3,5 2,3 2,7 2,92,3 2,4

1

2,2

0,50,40,50,50,4

0,5

2000 2001 2002 2003 2004 2005 2006 F2007

Mto

ns

Domestic Cement Export Cement Export Clinker

8

Profit & Loss EvolutionProfit & Loss Evolutionin € thousands GROUP

2004 2005 2006

Turnover 588.001 609.081 693.660Cost of sales (444.726) (470.030) (518.136)Gross margin 143.275 139.051 175.524Administrative & Selling expenses (46.236) (44.781) (53.624)Other operating revenues/(expenses) (201) (3.977) (5.652)Partial recovery of fees by Greek State 0 44.138 0Cost of voluntary retirement scheme 0 0 (14.875)Share of profits/(losses) of associates 26 (34) 3Profit from operations 96.864 134.397 101.376Financial revenues/(expenses) (2.519) (310) 1.433Net income before tax 94.345 134.087 102.809Income tax 1.955 24.606 (44.798)Net income after tax 96.300 158.693 58.011

9

Domestic cement volume increased by 16% due to the dynamic private building activity Exports volume decrease by 23%, largely compensated by export selling prices increase by

19% thanks to better market conditions Domestic selling prices increased at inflation level

Sales Variance Analysis 2006 vs Sales Variance Analysis 2006 vs 20052005

609.081

693.660

59.375

23.23634.525

13.915

525.000

550.000

575.000

600.000

625.000

650.000

675.000

700.000

Total turnover2004

Domesticcement volume

variance

Export cementvolume

variance

Cement pricevariance

A&C and othersubsidiaries

variance

Total turnover2005

10

NPAT Variance Analysis 2006 vs 2005NPAT Variance Analysis 2006 vs 2005

Cost of sales adversely affected by increased prices in fuels, power and raw materials as well as departure cost One off positive effects in 2005 from Greek State refund and deferred tax on property revaluation for tax purposes One off negative effect in 2006 from cost of voluntary retirement scheme and prior years income tax

44.138

58.011

158.693

84.579

48.106

8.73814.875

50.339

10.1438.922

50.000

60.000

70.000

80.000

90.000100.000

110.000

120.000

130.000

140.000

150.000

160.000

170.000

180.000

190.000

200.000210.000

220.000

230.000

240.000

250.000

NPAT 2005 Salesvariance

COSvariance

SGA & οther Voluntaryretirement

cost

Greek Staterefund in

2005

Net taxincome in

2005

Prior yearsincome tax

Income taxvariance

NPAT 2006

11

Fuel Prices Evolution

Steam coal price increase 2006 vs 2005: +4% Pet coke price increase 2006 vs 2005: +28%

115

179

229237

100

134

170

219

0

50

100

150

200

250

2003 2004 2005 2006

So

lid

Fu

el

Pri

ces (

Pri

ce I

nd

ex)

Steamcoal Petcoke

12

Balance Sheet EvolutionBalance Sheet Evolutionin € thousands GROUP

31.12.2004 31.12.2005 31.12.2006

Non current assets 659.313 648.200 625.885

Working capital 115.575 120.040 119.371

Working capital days 62 62 54

Net cash 39.244 102.462 118.840

Total 814.132 870.764 864.096

Long-term liabilities 156.874 84.098 85.101

Shareholders' equity 657.258 786.604 778.995

Total 814.132 870.702 864.096

Ass

ets

Liab

ilit

ies

&

Shar

ehol

ders

' eq

uit

y

13

Bank Loans EvolutionBank Loans Evolution

60.015

37.634

7.401

33.071

2.497

24.447

13.187

30.233

-9.985

15

10.015

20.015

30.015

40.015

50.015

60.015

LoanBalance

31.12.2003

Settlement SubsidiaryDisposal

LoanBalance

31.12.2004

LeveragedAcquisition

LoanBalance

31.12.2005

Settlement LoanBalance

31.12.2006

2004 2005 2006

14

Profitability IndicatorsProfitability Indicators

14,7% 11,9%

20,2%15,4%

7,4%11,7%

ROE ROIC2004 2005 2006

24,4%16,4%

22,8% 26,1%25,3%

8,4%

Gross Margin Net Margin2004 2005 2006

15

Working Capital IndicatorsWorking Capital Indicators

52

76

49

61

81

46 48

73

39

30

40

50

60

70

80

90

D.P.O. D.I. D.S.O.

2004 2005 2006

16

Cash Flow 2006Cash Flow 2006

174.008

-13.911

30.356

656 124.899

32.008

-14.000

6.000

26.000

46.000

66.000

86.000

106.000

126.000

146.000

166.000

186.000

Adjusted EBITDA Capex & Invest(net of disposals)

Working Capital Interest, Tax &Dividends

Loan Settlement Net Decrease inCash

17

Capital Expenditure EvolutionCapital Expenditure EvolutionCement DivisionCement Division

Capex Bookings (M€)

23,8 24,733,0

22,2

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

2003 2004 2005 2006