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									Italcementi
Italcementi Group




2002 Half year report
Italcementi S.p.A.
Via G. Camozzi 124
24121 Bergamo - Italy

Tel: + 39 035 396 111
Fax: + 39 035 244 905
Telex: 300123 ITALC I
www.italcementigroup.com
                                        Contents


                                        Group financial highlights                                      6
                                        Italcementi S.p.A. on the Stock Exchange                        7



                                        Directors’ report

                                           Results and significant events for the half year             8
                                           Human resources                                             12
                                           Ecology, environment and safety                             13
                                           Engineering, technical support, research and developement   14
                                           Analysis of group performance in the half year              14
                                           Performance by country and business                         19
                                           Group e-business initiatives                                27
                                           Energy project                                              28
                                           Information systems                                         28
                                           Corporate Governance                                        28
                                           Dealings with related parties                               29
                                           Disputes                                                    29
                                           Significant events after 30 June 2002                       30
                                           Outlook                                                     30




                                        Consolidated financial statements
                                          Consolidated balance sheet                                   32
                                          Consolidated income statement                                33
                                          Consolidated statement of cash flows                         34
                                          Reclassified consolidated balance sheet                      35
                                          Notes to the consolidated financial statements               36
The photos of Carlo Carino
represent the “Dives in Misericordia”   Report of the Independent Auditors                             55
church, of which Italcementi
is the technical sponsor. The church
was commissioned by the Vicariate
of Rome and designed by architect
Richard Meier.
2002
Half year report

Italcementi
Italcementi Group




September 4, 2002




Italcementi S.p.A.
Head office in Bergamo, Italy
Via G. Camozzi 124
Share capital    282,548,942
Bergamo Companies Register
Italcementi S.p.A.




                                                     Antonio Catani               Honorary Chairman


    Board of Directors
    (Term ends on approval of financial statements at 31 December 2003)


                                                  Giovanni Giavazzi       1       Chairman
                                                Pierfranco Barabani       1       Deputy Chairman
                                                 Giampiero Pesenti        1       Chief Executive Officer
                                                        Mario Arcelli     4

                                                       Alberto Falck      1-3-4

                                                   Danilo Gambirasi
                                                      Bruno Isabella
                                                          Karl Janjöri    2-4

                                                       Italo Lucchini     2

                                                   Yves René Nanot        1

                                                 Massimo Pellegrini       4

                                                       Carlo Pesenti      1

                                                     Marco Piccinini
                                                         Ettore Rossi     3

                                                         Attilio Rota     3-4

                                                       Emilio Zanetti     2-4




                                                     Paolo Santinoli      5       Secretary to the Board

    Board of Statutory Auditors
    (Term ends on approval of financial statements at 31 December 2002)


Acting Auditors
                                                        Luigi Guatri              Chairman
                                                     Claudio De Re
                                                     Claudio Cavalli
Substitute Auditors
                                                  Eugenio Mercorio
                                                    Dino Fumagalli
                                                      Paolo Marchi

                                                    Rodolfo Danielli              Chief Operating Officer

                                     Reconta Ernst & Young S.p.A.                 Independent Auditors
1
  Member of the Executive Committee
2
  Member of the Remuneration Committee
3
  Member of the Internal Control Committee
4
  Independent Director
5                                                                                                           3
  Secretary to the Executive Committee
    Italcementi Group




     NORTH AMERICA
     Essroc
     Ciment Quebec (JV 50%)
     Essroc San Juan
     Riverton



     MOROCCO
     Ciments du Maroc

     SPAIN
     Financiera y Minera

     FRANCE
     Ciments Français
     Ciments Calcia
     Arena
     GSM
     Unibéton
     Axim

     BELGIUM
     CCB

     BULGARIA
     Devnya Cement
     Vulkan




4
Italcementi Group in the world
           (as at 30 June 2002)




                        ITALY
                Italcementi
               Calcestruzzi
                       CTG
           Società del Gres
                      Axim
             KAZAKHSTAN
        Shymkent Cement
                        INDIA
     Zuari Cement (JV 50%)
        Sri Vishnu

                  THAILAND
                Jalaprathan
               Asia Cement
                     TURKEY
                         Set
                    Marmara
                     CYPRUS
          Vassiliko Cement

                       EGYPT
               Suez Cement

                     GREECE
                       Halyps




                                  5
    Group financial highlights




                                                                                                     (in millions of euro)

                                                             30 June       30 June    30 June    30 June   31 December
                                                               2002           2001      2001       2000           2001
                                                                        pro forma*

    Net sales                                                2,108           2,019    2,039      1,879         4,063
    Gross operating profit                                     510            485       490        434         1,029
    Amortization and depreciation                              188            186       188        176            374
    Operating income                                           321            298       302        258            654
    Income before minority interest                            142            127       128        115            283
    Group net income                                           108             89        89         85            201
    Cash flow (income+amortization
    and depreciation)                                          331            314       316        291            657
    Investments in fixed assets                                462            230       230        191            743
    Total shareholders’ equity                               2,750           2,852    2,893      2,612         2,930
    Group shareholders’ equity                               2,013           1,981    1,981      1,795         2,071
    Net debt                                                 2,261           1,819    1,839      1,795         1,867
    Employees at 30 June (heads)                           18,109           17,725   18,028     18,128       17,426

    * Zuari Cement Ltd (India) consolidated on a proportional basis (50%)




6
Italcementi S.p.A. on the Stock Exchange




 Share prices and capitalization

 From 07.02.2001 to 08.30.2002
                                                                                                                                                               Share price                                                                                                                                                                                             Capitalization
                                                                                                                                                                (in euro)                                                                                                                                                                                          (in millions of euro)
                                                                                    at 07.02.01                                                                 high                                       low at 08.30.02                                                                                          at 07.02.01                                                            high                                     low at 08.30.02
 Ordinary shares                                                                                             9.318 10.616                                                                    6.686                                                      9.759                                                                       1,650                                    1,880                                       1,184                                                1,728
 Savings shares                                                                                              4.230                                     5.700                                 3.156                                                      4.900                                                                                     446                                      601                                 333                                                    517
 Total                                                                                                                                                                                                                                                                                                                              2,096                                    2,481                                       1,517                                                2,245
 Mibtel index                                                                                       26,617 26,617 17,382                                                                                                                        18,832




 Italcementi share prices and Mibtel index
  Share
  prices                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Mibtel
 in euro                                                                                                                                                                                                                                                                                                                                                                                                                                                                             index
     12                                                                                                                                                                                                                                                                                                                                                                                                                                                                               40,000
                                       Italcementi ordinary shares                                                                                             Italcementi savings shares                                                                                         Mibtel index
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      36,000
     10

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      32,000
     8
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      28,000
     6
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      24,000

     4
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      20,000

     2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                16,000
                                                                                    10 Sept. 2001
                                                                                                    24 Sept. 2001
                                                                                                                    8 Oct. 2001
                                                                                                                                  22 Oct. 2001
                                                                                                                                                 5 Nov. 2001




                                                                                                                                                                                             3 Dec. 2001
                                                                                                                                                                                                           31 Dec. 2001




                                                                                                                                                                                                                                                                                                                                                               20 May 2002


                                                                                                                                                                                                                                                                                                                                                                                            17 June 2002


                                                                                                                                                                                                                                                                                                                                                                                                                         15 July 2002


                                                                                                                                                                                                                                                                                                                                                                                                                                                       12 Aug. 2002
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      26 Aug. 2002
          2 July 2001
                        16 July 2001
                                       30 July 2001
                                                      13 Aug. 2001
                                                                     27 Aug. 2001




                                                                                                                                                                19 Nov. 2001
                                                                                                                                                                               7 Dec. 2001




                                                                                                                                                                                                                          14 Jan. 2002
                                                                                                                                                                                                                                         28 Jan. 2002
                                                                                                                                                                                                                                                        11 Feb. 2002
                                                                                                                                                                                                                                                                       25 Feb. 2002
                                                                                                                                                                                                                                                                                      11 Mar. 2002
                                                                                                                                                                                                                                                                                                     25 Mar. 2002
                                                                                                                                                                                                                                                                                                                     8 Apr. 2002
                                                                                                                                                                                                                                                                                                                                   22 Apr. 2002
                                                                                                                                                                                                                                                                                                                                                  6 May 2002


                                                                                                                                                                                                                                                                                                                                                                             3 June 2002


                                                                                                                                                                                                                                                                                                                                                                                                           1 July 2002


                                                                                                                                                                                                                                                                                                                                                                                                                                        29 July 2002




 Italcementi shares and Mibtel index performance
 (base 07.02.2001=10.000)

 Value
 13,500
                                       Italcementi ordinary shares                                                                                             Italcementi savings shares
                                       Mibtel index
 11,750
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     11,584

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     10,473
 10,000



  8,250

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     7, 075
  6,500
                                                                                    10 Sept. 2001
                                                                                                    24 Sept. 2001
                                                                                                                    8 Oct. 2001
                                                                                                                                  22 Oct. 2001
                                                                                                                                                 5 Nov. 2001




                                                                                                                                                                                             3 Dec. 2001
                                                                                                                                                                                                           31 Dec. 2001




                                                                                                                                                                                                                                                                                                                                                               20 May 2002


                                                                                                                                                                                                                                                                                                                                                                                            17 June 2002


                                                                                                                                                                                                                                                                                                                                                                                                                         15 July 2002


                                                                                                                                                                                                                                                                                                                                                                                                                                                       12 Aug. 2002
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      26 Aug. 2002
          2 July 2001
                        16 July 2001
                                       30 July 2001
                                                      13 Aug. 2001
                                                                     27 Aug. 2001




                                                                                                                                                                19 Nov. 2001
                                                                                                                                                                               7 Dec. 2001




                                                                                                                                                                                                                          14 Jan. 2002
                                                                                                                                                                                                                                         28 Jan. 2002
                                                                                                                                                                                                                                                        11 Feb. 2002
                                                                                                                                                                                                                                                                       25 Feb. 2002
                                                                                                                                                                                                                                                                                      11 Mar. 2002
                                                                                                                                                                                                                                                                                                     25 Mar. 2002
                                                                                                                                                                                                                                                                                                                     8 Apr. 2002
                                                                                                                                                                                                                                                                                                                                   22 Apr. 2002
                                                                                                                                                                                                                                                                                                                                                  6 May 2002


                                                                                                                                                                                                                                                                                                                                                                             3 June 2002


                                                                                                                                                                                                                                                                                                                                                                                                           1 July 2002


                                                                                                                                                                                                                                                                                                                                                                                                                                        29 July 2002




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               7
    Directors’ report




    As set out in more detail in the explanatory notes and as adopted in the quarterly report
    at 31 March 2002, to allow a consistent comparison, figures for the 1st half of 2001 have
    been restated on a pro forma basis to reflect the consolidation on a proportional basis of
    Zuari Cement Ltd, a company in which a 50% equity investment is held, and which was
    consolidated on a line-by-line basis in the interim reports for 2001.


    Results and significant events for the half year

    Results

    Throughout the whole of the first part of 2002 the international economic outlook was
    characterized by uncertainty surrounding the timing and size of the economic recovery.
    The construction sector performed variably across different countries, even within
    relatively homogenous areas, and showed a tendency for growth rates to fall in various
    important markets. Against this difficult background, the Italcementi Group achieved an
    improvement in its results with overall consolidated net income of 142.3 million euro
    and Group net income of 107.9 million euro, up by 11.9% and 21% respectively
    compared to the 1st half of 2001.

    The increase in results was achieved thanks to the improvement in operations and the
    containment of net financial charges, despite the negative trend in non-recurring items.

    Net sales were 2,108 million euro, an increase of 4.4% compared to the 1st half of 2001.
    Gross operating profit and operating income were also up by 5.2% and 7.7%
    respectively.

    Financial charges, net of financial income, stood at 60 million euro, down by 11.4%
    compared to the same period of 2001, mainly due to the reduction in interest rates and
    the reduced effects of the devaluation of the Turkish lira in this period compared to the
    previous one.

    Non-recurring items and adjustments to financial asset values had a net negative
    balance of approximately 14.1 million euro compared to a positive balance of over 2 million
    euro in the first six months of 2001, mainly due to lower proceeds from capital gains on
    assets and to provisions for ongoing civil disputes.

    Taxes were estimated approximately 105 million euro as in the 1st half of 2001, while
    minority interest, at 34 million euro, fell by around 4 million euro.

    At 30 June 2002 net debt stood at 2,261 million euro, up by 394 million euro compared
    to 31 December 2001, in the light of investments in the half year of 462 million euro,
    largely on the acquisition of equity investments, the main aim of which was international
    expansion.




8
Total shareholders’ equity at approximately 2,750 million euro, fell by around 181 million
euro compared to the situation at 31 December 2001, mainly because of the effect of the
fall against the euro of some currencies, especially the US dollar, and the reduction in the
minority interest. Group shareholders’ equity, which at the end of the half year stood at
2,013 million euro, also fell by 58 million euro compared to the figure at 31 December
2001. However, this was entirely due to the above mentioned exchange rate effect.

In the period the Parent Company Italcementi S.p.A. recorded net sales of 440 million
euro, up by 4.7% compared to the 1st half of 2001, gross operating profit of 129 million
euro (+8.0%), operating income of 102 million euro (+18.7%) and net income of 77
million euro compared to approximately 64 million euro in the same period of 2001
(+21.3%).


Significant events in the first half

In the 1st half of the year some important operations took place, largely aimed at the
Group’s international expansion, and which have already been partly described in the
Directors’ Report for the 1st quarter of 2002.

In January the Group strengthened its presence in the Southern India market by means
of the acquisition, through Zuari Cement Ltd, of a 95.6% shareholding in Sri Vishnu
Cement Ltd, which is likewise located in the state of Andhra Pradesh. The investment
was 38.9 million euro. Sri Vishnu Cement Ltd, as Zuari Cement Ltd, was consolidated on
a proportional basis.

At the start of February in Turkey the Group acquired, for 22 million euro, Marmara
Cimento, which owns a plant with a cement grinding facility and an annual production
capacity of approximately 700 thousand tons, near the site at Ambarli (Istanbul). The
company was integrated on a line-by-line basis.

Also in February, in Egypt, Ciments Français acquired a further 2.8% of the share capital
of Suez Cement Company, thus raising its equity investment to over 34%, with overall
investment in the two year period 2001-2002 of 310.9 million euro. Suez Cement was
consolidated on an equity basis.

On 1 April 2002, in Thailand, the public tender offer launched by Asia Cement Public
Company (ACC) for 75.6 million shares in Jalaprathan Cement Public Company (63%
of the share capital at a price of 15 baht per share, approximately 0.39 euro) ended with
17,395,823 shares (14.5% of the share capital) taking up the offer. ACC subsequently
bought a further 4.3% of the share capital at a price of 15 baht per share. The overall
outlay for these operations was 8.8 million euro.




                                                                                               9
     In the United States in May the purchase by Essroc of the entire share capital of
     Riverton Investment Corporation was formalized. The latter company trades under the
     name Capitol Materials and has a cement plant and businesses in the construction
     materials sector in the state of Virginia, the investment totaled 138.9 million euro. The
     company was consolidated on a line-by-line basis as from 25 May 2002.

     In June, Calcestruzzi S.p.A., by means of an investment of 15.4 million euro, acquired
     59% of the share capital of E.S.A. Monviso S.p.A., a company in which it already had an
     indirect stake of 41%.

     In the half year Ciments du Maroc launched a public tender offer for its own shares,
     which finished at the end of June with a take-up of approximately 9.5% of the share
     capital and an overall cost of around 57.5 million euro. Following this operation the Group
     controls 61.8% of Ciments du Maroc (56.1% at 31 December 2001).

     Ciments Français, launched an EMTN (Euro Medium Term Notes) plan on the
     European market for a maximum authorized total of a billion euro. As part of this plan,
     at the end of June, Ciments Français issued a bonded loan worth 350 million euro at a
     fixed rate of 5.875% over 7 years. The funds were applied on 10 July 2002. As a result,
     from that date, the maximum amount that may be issued is 650 million euro.

     During the 1st half of 2002, Italcementi S.p.A., through its subsidiaries Société
     Internationale Italcementi France S.A. and Société Internationale Italcementi Luxembourg
     S.A., increased its own equity investment in Ciments Français S.A. by 568,818 shares
     overall, with an investment of 28.2 million euro.

     At 30 June 2002 the overall stake held indirectly by Italcementi S.p.A. in Ciments Français
     S.A. was 69.8% (81.6% of the voting rights).


     Consolidated figures at 30 June 2002

     Group performance in the 1st half, which was positive overall, was characterized by
     differing results both in developed and in emerging countries.
     The countries of the European Union saw an overall improvement in results compared to
     the same period in 2001, while North America fell back slightly.
     Among emerging countries, the improvement in results in Morocco and Bulgaria was in
     contrast to the downward trend in Thailand and India, where markets were expanding
     but were affected by heavy excess production capacity which had a negative impact on
     sale prices. Turkey, although again producing extremely negative results for the period,
     saw an improvement compared to the 1st half of 2001.




10
                                                                                                             (in millions of euro)
                                                           30 Jun. 2002      30 Jun. 2001      31 Dec. 2001        30 Jun. 2001
                                                                              pro forma*
Net sales                                                        2,108.1         2,019.2               4,062.7           2,039.4
Value added                                                        867.7           830.6               1,712.9             837.0
Gross operating profit (Ebitda)                                    509.6           484.6               1,028.8             490.2
% of net sales                                                      24.2            24.0                  25.3              24.0
Amortization and depreciation                                     (188.3)          (186.3)              (374.4)            (188.0)
Operating income (Ebit)                                            321.3           298.3                654.4              302.2
% of net sales                                                      15.2            14.8                 16.1               14.8
Financial income and charges                                       (60.0)           (67.8)              (135.6)             (70.4)
Adjustments to asset values and non-recurring items                (14.1)             2.1                (13.7)               2.1
Income before taxes                                                247.1           232.6                505.1              233.9
Income before minority interest                                    142.3           127.2                282.7              128.5
Minority interest                                                  (34.4)           (38.0)               (81.4)             (39.3)
Group net income                                                   107.9            89.2                201.3                89.2
Investments in fixed assets                                        462.5           230.0                742.6              230.5

Cash flow (income+amortization and depreciation)                   330.7           313.5                657.1              316.5

* Zuari Cement Ltd (India) consolidated on a proportional basis (50%)



Quarterly trend
                                                                                                                  (milioni di euro)
                                                                  1st half             2nd quarter                     1st quarter
                                                                   2002                      2002                            2002
Net sales                                                        2,108.1                     1,170.4                       937.7
% change on 2001 pro forma*                                         +4.4                        +5.3                       + 3.3
Gross operating profit                                             509.6                      332.9                        176.7
% change on 2001 pro forma*                                         +5.2                       +9.3                         -1.8
Operating income                                                   321.3                      237.3                          84.0
% change on 2001 pro forma*                                         +7.7                      +11.9                          -2.5
Net debt (at period end)                                         2,260.7                     2,260.7                     1,917.5

* Zuari Cement Ltd (India) consolidated on a proportional basis (50%)


As repeatedly highlighted in previous reports, the sectors in which the Group operates are
highly seasonal: generally better weather conditions and lower maintenance costs
normally lead to higher levels of business and operating results in the second quarter
compared to the first months of the year.
However it should be noted how the slight fall in operating performance recorded at the
end of March compared to the first three months of 2001 was fully recovered in the
2nd quarter with a solid improvement in the overall situation at the end of June.




                                                                                                                                      11
     Human resources

     To support its human resource development policies, in the half year the Group launched
     an important project to finalize a Personnel Information System, which will enable more
     thorough oversight of the issues regarding the Group’s human resources. This project,
     which will be completed by the end of the year, will involve all the Group’s subsidiaries:
     its aim is to reinforce the integration and internationalization of the key resources to be
     found in the various companies, and enable the adoption of increasingly uniform and
     transparent personnel management criteria.
     In the half year, besides completing the planned training activities, particular attention was
     paid to carrying out, within the Group companies, the important training program that
     forms part of the "Zero Injuries" project, and which saw the fully committed support and
     co-operation of all the staff involved.
     In partnership with the Milan MIP Polytechnic a Masters Program for promising young
     people was drawn up, which will be delivered using innovative methods and with the
     involvement of universities in the countries where Italcementi subsidiaries are located.
     An English language pilot version was completed of a multimedia support called
     "Welcome", that is used to orient new employees and present the Group to them.
     A survey was launched in all the countries where the Group operates on welfare and
     insurance conditions (life insurance, accidents, medical costs, pension arrangements)
     which, after due comparison, will allow common guidelines to be identified for this
     important area.
     On the organizational side, in Italy initiatives were undertaken both in the head office and
     in peripheral units, as set out in the rationalization plan that was drawn up to realize
     efficiency and effectiveness gains.
     In the French – Belgian area the shared activities (Administration, Human Resources,
     Information Technology, Purchasing) were allocated to Calcia and steps were taken to
     integrate operations in the two countries.
     An integration project was launched between Greece and Bulgaria which aims to provide
     the three production units with the best skills available in the two subsidiaries.
     In the USA an analysis was started of the integration between Essroc and Riverton, which
     will enable major efficiency gains.




12
Personnel by country was as follows
                                                                                                                     (heads)*
                                         30 Jun. 2002        %           31 Dec. 2001        %       30 Jun. 2001        %
Italy                                           4,865      26.9                 4,858      27.9             4,923      27.8
France                                          4,333      23.9                 4,333      24.9             4,375      24.7
Belgium                                           586       3.2                   603       3.5               608        3.4
Spain                                             853       4.7                   849       4.9               840        4.7
Greece                                            329       1.8                   313       1.8               309        1.7
North America                                   1,854      10.2                 1,547       8.9             1,544        8.7
Turkey                                          1,041       5.8                 1,040       6.0             1,131        6.4
Morocco                                         1,031       5.7                 1,036       5.9             1,042        5.9
Bulgaria                                          927       5.1                 1,018       5.8             1,090        6.2
Thailand                                        1,483       8.2                 1,509       8.7             1,552        8.8
India**                                           544       3.0                   313       1.8               304        1.7
Other                                             263       1.5                      7         -                 7         -
Total                                          18,109     100.0                17,426     100.0            17,725     100.0

  * excluding employees in Kazakhstan (443 at 30 June 2002 and 421 at 31 December 2001), since these operations are not
    consolidated; the figures at 30 June 2002 include employees from the companies that entered the consolidation area in the
    period (Riverton Investment Corporation – North America, Sri Vishnu Cement – India, Marmara Cimento – Turkey, Foreign
    terminals - Other)
 ** the number shown reflects half of those employed, in keeping with the consolidation on a proportional basis of the Indian
    companies



                                                               Ecology, environment and safety

The Italcementi Group’s commitment to a better balance of economic growth, protection
of the environment and social responsibility was further strengthened during the half year
with the creation within the Group of the “Sustainable Development Steering Committee”,
whose task it is to define policies and promote projects, activities, and communication and
training plans as part of the various aspects of sustainable development.
Italcementi Group, as part of the special cement industry plan devised by the World
Business Council for Sustainable Development (WBCSD), signed, together with the other
companies that have adhered to the project, a common action plan set out in six key areas:
protection of the environment, fuels and raw materials, health and safety of employees,
emission reduction, local impacts, business processes. These areas are the basis of the action
plan which sets out the work program for the sustainable development initiative in the
cement sector for the next five years.
The effort to obtain ISO 14001 certification continued in Italy, France, Spain, Morocco and
Turkey, as did the activities to improve the protection of the environment and to obtain the
necessary authorizations to use industrial and animal waste as alternative fuels.
After the success of the trials carried out on quarrying equipment at the Rezzato cement
plant, the use of the environmentally friendly fuel GECAM was launched in all the Group’s
cement plants in Italy.
In parallel with these environmental initiatives the Italcementi Group’s commitment to
safety was maintained through the “Zero Injuries” project launched in 2000. The project
continued with the realization of training programs and the launch of a dedicated Group
reporting system.
The reduction in accident frequency rates, that was already clear in 2001, was confirmed in
this half year.
                                                                                                                                13
     Engineering, technical support, research and development
     (CTG S.p.A. - Centro tecnico di gruppo, Group Technical Center)
     In the 1st half of 2002, CTG S.p.A. worked for Group companies in the areas of research,
     engineering and technical assistance in Italy and abroad. It provided services worth 15.7
     million euro, in line with the same period in 2001.
     At 30 June 2002, the company had 399 employees (394 employees at 31 March 2002),
     of whom 277 worked at the Bergamo office and 122 at the secondary office in Guerville.
     The main design and installation projects undertaken by CTG S.p.A. were the new Italian
     cement plant at Calusco, where the works and engineering for the new kiln continued
     apace, as well as the realization of the Colle Pedrino – Monte Giglio tunnel.
     Studies to enhance production facilities at the Group's American cement plants, in
     particular Nazareth, Picton and, recently, Martinsburg (Riverton) continued, as well as
     important works on the quarries at the Gaurain cement plant.
     In the assistance area, note should be made of the work to improve the quality of
     products, production and technology and to start-up and/or equip new facilities in several
     Group cement plants.
     In 2002 research work covered materials and processes.
     Particular attention was paid to the transfer of technology of new techniques for
     producing ready mixed concrete and special cements.
     In the additives sector new formulations for superfluidizing additives were completed that
     are very efficient at obtaining highly resistant and durable ready mixed concrete. Industrial
     tests started for the extrusion of perforated building materials and on quick-setting
     cements for the prefabrication sector.


     Analysis of group performance in the half year

     Sales volumes and internal transfers*

                                    Cement and clinker                        Aggregates **                  Ready mixed concrete
                                   (millions of metric tons)              (millions of metric tons)             (millions of m3)
                                1st half       % change on            1st half       % change on          1st half       % change on
                                 2002          1st half 2001           2002          1st half 2001         2001          1st half 2001
                                           Historic   At constant                Historic   At constant              Historic   At constant
                                                             size                                  size                                size
     European Union               12.4        -0.6             -0.5     27.0       +2.4           +2.4        8.1      +2.6           +2.3
     North America                  3.0       -1.0             -3.4       0.1           -             -       0.1        n.s.          n.s.
     Asia                           3.0     +19.2          +12.0             -          -             -       0.4      +7.2           +7.2
     Other countries                3.2       -1.8             -5.1       0.8      +7.0           +7.0        0.9       -8.7           -8.7
     Total                        21.6       +3.1              +1.4     27.9       +2.6           +2.6        9.5      +1.5           +1.2

      * changes are calculated on the basis of the consolidation on a proportional basis of Zuari Cement Ltd in the 1st half of 2001
         as well
     ** excluding outgoes on work-in-progress account
     n.s.: not significant




14
Group sales volumes in the 1st half of 2002 were satisfactory in all areas of business,
although there were varying trends in different geographical areas.
While overall performance was relatively stable in the countries of the European Union, a
fall was recorded in North America and an improvement in emerging countries, except for
Turkey, which fell sharply albeit at a slower rate compared to the 1st quarter.


Net sales and operating results

The 4.4% increase in consolidated Group net sales compared to the 1st half of 2001 was
due to improved performance (2.8%) and to the enlargement of the consolidation area
(1.6%), while the overall impact from exchange rate movements was negligible.
The European Union, thanks to all the countries, was the area which made the biggest
contribution to the growth in net sales.
Net sales in North America were basically stable, but fell slightly on a constant
consolidation area and exchange rate basis.
Among emerging countries, growth was strong in Morocco and Bulgaria, while a negative
change was seen once again in Turkey. As previously mentioned, the level of net sales in
India and Thailand was badly affected by the fall in sales prices.
Compared to the 1st half of 2001, gross operating profit and operating income grew by
5.2% and 7.7%, thanks to the improvement achieved in the 2nd quarter, following the
resolution or easing of particular situations which had had a negative impact on the
performance of the Group in the first months of the current year: i.e. the prolonged
period of strikes in France at the Ciments Calcia production units, and the worsening of
margins in Thailand because of the fall in sales prices.
The efficiency recovery program, which had been launched at Group level at the end of
2000, continued with positive results in the logistics area and in industrial costs.
In the half year maintenance works were brought forward in various countries to improve
the reliability and so the productivity of plants.
This led to an extra charge of 12 million euro compared to the same period in 2001.




                                                                                            15
     Breakdown of consolidated net sales by geographical area and business*
                                                                                                             (in millions of euro)

                                                1 half
                                                  st
                                                                         1 half 2001
                                                                           st
                                                                                                     % Change              1st half
                                                 2002          %         pro forma**          %                             2001
     Geographical area
     European Union                            1,512.8       71.8               1,442.3     71.4             4.9         1,442.3
     North America                               292.5       13.9                291.0      14.4             0.5           291.0
     Asia                                          92.7       4.4                 90.7       4.5             2.2           107.9
     Other countries                             168.0        8.0                168.1       8.3                -          168.1
     Trading                                       42.1       2.0                 27.1       1.4            55.4             27.1
     Total                                     2,108.1     100.0                2,019.2    100.0             4.4         2,039.4
     Business
     Cement                                    1,306.0       61.9               1,261.3     62.5             3.5         1.281.4
     Ready mixed concrete and aggregates         703.9       33.4                660.1      32.7             6.6           660.1
     Other                                         98.2       4.7                 97.9       4.8             0.3             97.9
     Total                                     2,108.1     100.0                2,019.2    100.0             4.4         2,039.4
     Total on a constant exchange rate and consolidation area basis                                          2.8

      * net sales by geographical area/business are shown net of infragroup transactions between geographical areas/businesses
     ** Zuari Cement Ltd (Asia) consolidated on a proportional basis (50%)



     Financial charges and other items


     Financial charges, net of financial income, saw a fall of 7.7 million euro compared to the
     1st half of 2001, thus reducing their ratio to net sales from 3.4% to 2.8%. The
     improvement was due to the more limited impact of the devaluation of the Turkish lira
     compared to the first six months of the previous year and to the positive effect from the
     reduction in interest rates, which more than made up for the contrary effect of the
     increase in net debt.
     Non-recurring items and adjustments to the value of financial assets recorded a negative
     balance overall of 14.1 million euro (a positive net balance of 2.1 million euro in the 1st
     half of 2001). The change compared to the first six months of 2001 was mainly due to
     lower capital gains on the disposal of tangible assets, adjustments to welfare systems and
     provisions made in the light of ongoing civil litigation.

     Net income

     Income before taxes in the half year was 247.1 million euro, up 6.2% compared to the
     first six months of 2001. After taxes of 105 million euro, in absolute terms the same as in
     the 1st half of 2001, total consolidated net income before minority interest was 142.3
     million euro (+11.9%).
     Group net income, after minority interest of 34.4 million euro (38.0 million euro in the 1st
     half of 2001), was 107.9 million euro, an increase of 21% compared to the same period
     of 2001.




16
Key financial data
                                                                                       (in millions of euro)

                                              30 Jun. 2002   31 Dec. 2001   30 Jun. 2001    30 Jun. 2001
                                                                               pro forma
Net fixed assets                                  4,980.7         4,868.3       4,619.4           4,674.5
Working capital                                     832.1          717.7          853.0             859.7
Net capital employed                              5,812.8         5,586.0       5,472.7           5,534.2
Group shareholders’ equity                        2,012.6         2,070.5       1,981.0           1,981.0
Minority interest                                   737.0          860.0          870.6             912.0
Total shareholders’ equity                        2,749.6         2,930.5       2,851.6           2,893.0
Floating rate subordinated securities (net)          88.5          100.5          111.4             111.4
Provisions                                          714.0          688.2          690.7             690.8
Net debt                                          2,260.7         1,866.8       1,819.0           1,839.0
Total financing                                   5,812.8         5,586.0       5,472.7           5,534.2



Investments in fixed assets

Gross investments in fixed assets in the half year totaled 513 million euro (220 million euro
in the 1st half of 2001). The marked growth (293 million euro) compared to the same
period in 2001 was above all due to financial investments concerning the acquisition of
the equity investments described previously (the purchase of Ciments Français shares, the
investments in the United States, India, Egypt, Turkey, Morocco and Thailand).
Investments in tangible and intangible assets, totaling 165 million euro (137 million euro
in the 1st half of 2001), mainly concerned Italy, France, North America and Spain.


Shareholders’ equity

Total shareholders’ equity, at 2,750 million euro, saw a fall of 181 million euro compared
to 31 December 2001. This change was mainly due to the depreciation, compared to the
euro, of the US dollar, the Egyptian lira and other currencies as well as the reduction in
the minority interest owing to the increase in the Group’s equity investments in subsidiary
companies (Ciments Français, Ciments du Maroc, Jalaprathan Cement Public Company).
The depreciation of some currencies compared to the euro led to a reduction in the
translation reserve included in total shareholders’ equity of about 144 million euro, of
which 91.5 million euro related to Group shareholders’ equity.
Without this element Group shareholders’ equity would have risen by 33.6 million euro.




                                                                                                               17
     Net debt

     The increase (394 million euro) in net debt at the end of the half year was mainly caused
     by heavy investment in fixed assets (462 million euro) and by dividends paid out (114
     million euro), partially compensated by the positive cash flow generated from operations
     (158 million euro net of the change in working capital).
     The ratio of net debt plus net floating rate subordinated securities to shareholders’ equity at
     30 June 2002 was 85.4% compared to 67.1% at 31 December 2001 and 67.4% at 30 June
     2001; the ratio of debt as defined above to gross operating profit for the last 12 months
     rose from 1.9 at the end of December 2001 to 2.2 at the end of the 1st half of 2002.

     Cash flow summary
                                                                                             (in millions of euro)

                                                                          1 half 2002
                                                                           st
                                                                                                      1st half 2002
                                                                                                          pro forma
     Cash flow from operating activities                                          327.6                    297.7
     Change in working capital                                                   (169.5)                   (132.5)
     Investments
                                                  Intangible      (9.4)                      (14.7)
                                                    Tangible    (155.5)                     (122.0)
                               Financial (equity investments)   (347.9)                      (78.4)
                                    Purchase of own shares           -                        (4.7)
             Change in payables for purchase of fixed assets     50.4                        (10.2)
     Total investments in fixed assets                                            (462.4)                  (230.0)
     Proceeds from sale of fixed assets                                            18.6                      24.8
     Change in other financial fixed assets                                        (20.3)                   (14.6)
     Dividends paid                                                              (113.6)                    (80.4)
     Change in consolidation area and translation gain/loss                        22.7                     (22.8)
     Other                                                                           3.0                      4.1
     Change in net debt                                                          (393.9)                   (153.7)




     The breakdown of the net debt at 30 June 2002 was as follows:

     Net debt
                                                                                             (in millions of euro)

                                                                                30 June               31 December
                                                                                  2002                       2001
     Cash, cash equivalents and current financial assets                          239.6                     292.0
     Short-term financing                                                         (794.3)                   (836.2)
     Medium/long-term financial assets                                               0.7                       1.3
     Medium/long-term financing                                                 (1,706.7)                 (1,323.9)
     Net debt                                                                   (2,260.7)                 (1,866.8)
     Change from 31 December 2001                                                (393.9)                            -
     Net floating rate subordinated securities                                     (88.4)                   (100.5)




18
                                                       Performance by country and business

                                                                              The Group in the 1st half of 2002

Net sales, gross operating profit, capital expenditure and invested capital by geographical
area*
                                                                                                                                                         (in millions of euro)
                                                                Net sales                 Gross operating                         Capital                  Invested
                                                                                               profit                          expenditure                capital**
                                                        1st half    % Change on       1st half % Change on               1st half         1st half   30 June 31 December
                                                         2002        1st half 2001     2002       1st half 2001           2002             2001        2002         2001
European Union                                        1,539.2                 4.6     365.2                 6.7          121.4              84.3     2,798.8        2,687.2
North America                                           292.5                 0.5      58.6                (5.6)          23.0              23.3      667.0           563.9
Asia                                                      97.4                0.5      19.7               (38.9)            2.3               1.9     592.4           596.7
Other countries                                         189.6                 0.7      61.9               31.7              8.4             11.9      659.2           684.0
Trading and other                                         94.4                9.3        4.2              >100              0.4               0.6      91.3             53.7
Holdings                                                        -                 -           -               -                -                 -    357.2           355.3
Elimination of inter-area sales                         (105.0)               n.s.            -               -                -                -         -                -
Total                                                 2,108.1                 4.4     509.6                 5.2          155.5             122.0     5,165.9        4,940.8

 * the comparison is made with the pro forma figures for the 1st half of 2001 (Zuari Cement Ltd - Asia - consolidated on a proportional basis, 50%)
** net tangible and intangible assets and working capital
n.s.: not significant

                                                                                                                              Italy

                                                                                                            (in millions of euro)*

                                                                                        1 half 2002
                                                                                         st
                                                                                                                      1st half 2001
Net sales                                                                                         695.9                      674.6
Gross operating profit                                                                            157.8                      142.6
Capital expenditure                                                                                67.9                        41.8

* consolidated country data before infragroup eliminations




Cement
                                                             (milioni di euro)*                                    (miliardi di lire)*

                                                                                        1 half 2002
                                                                                         st
                                                                                                                      1st half 2001
Net sales                                                                                         444.3                      425.2
Gross operating profit                                                                            130.4                      120.6
Capital expenditure                                                                                59.4                        34.3

* consolidated business sector data before infragroup eliminations


In Italy, despite the fact that economic activity was again generally weak in the half year,
the construction sector maintained positive, albeit decelerating, growth rates.




                                                                                                                                                                                 19
     National cement consumption, which was estimated to be approximately 2.9% up
     compared to the 1st half of 2001, consequently followed a positive trend once again,
     although the growth rate slowed from April onwards and there were marked territorial
     variations: a strong increase in the northern regions, a slight rise in the center and a fall
     in the south and the islands.
     Despite the fact that commercial trade led to a further increase in exports set against a
     fall in cement imports, the increasing importation of clinker caused an overall share of
     national consumption from imported materials which, it is estimated, is now tending to
     exceed the previous record figures reached in 1993.
     In this market context Group sales of hydraulic binders in the half year, which were
     affected by an unfavorable geographical mix, fell slightly compared to the same period in
     2001.
     The overall increase in operating costs (in particular electricity, raw materials and
     transport), only partially offset by the fuel economies achieved (a reduction in unit costs
     and efficiency gains by means of an improved mix), was more than compensated for by
     the favorable trend in net sales.

     Ready mixed concrete and aggregates
                                                                                        (in millions of euro)*

                                                                          1 half 2002
                                                                           st
                                                                                               1st half 2001
     Net sales                                                                  234.5                 211.6
     Gross operating profit                                                      21.6                   18.6
     Capital expenditure                                                          4.5                    4.9

     * consolidated business sector data before infragroup eliminations


     As with cement commented on above, the ready mixed concrete sector too, in an overall
     favorable market, saw greatly differing trends throughout the country with high growth
     rates in the north, an unchanged situation in the center and large falls in consumption in
     the south and the islands.
     Against this background, Calcestruzzi S.p.A. and its Italian subsidiaries improved net sales
     overall by 10.8% compared to the 1st half of 2001.
     The marked upward trend in raw material and transport costs was largely balanced out
     by the improvement in net sales. The overall increase in sales volumes and the
     containment of fixed costs at the levels of the first six months of 2001 had a positive
     impact on operating results.
     After the conclusion of the process to reorganize the centralized operations, attention
     today is focussed on outsourcing some activities and strengthening the aggregates sector,
     among which we may include the aforementioned acquisition of a further equity
     investment (59%) in E.S.A. Monviso S.p.A.




20
Other businesses

The Group’s other businesses in Italy mainly concern the PVC and clay pipes sector
(Società del Gres ing. Sala S.p.A.) and cement and ready mixed concrete additives (Axim
Italy S.p.A.).
The reduction, following the market trend, of sales volumes and prices for PVC pipes led
to a fall in the net sales and operating results of Società del Gres ing. Sala S.p.A., while
the growth of Axim Italy S.p.A. continued as it benefited from the expansion of the ready
mixed concrete additives market.
For other important Group businesses in Italy, refer to the specific comments on CTG
S.p.A. (engineering, technical assistance and research), BravoSolution S.p.A. (e-business)
and Italgen S.p.A. (energy).


                                                                                                        France

                                                                                             (in millions of euro)*

                                                                               1 half 2002
                                                                                st
                                                                                                    1st half 2001
Net sales                                                                            609.7                 588.1
Gross operating profit                                                               125.5                 133.5
Capital expenditure                                                                   27.4                   25.8

* consolidated data from operations before infragroup eliminations



Cement
                                                          (milioni di euro)*                     (miliardi di lire)*

                                                                               1 half 2002
                                                                                st
                                                                                                    1st half 2001
Net sales                                                                            349.8                 326.2
Gross operating profit                                                                90.5                   97.7
Capital expenditure                                                                   13.8                   14.3

* consolidated business sector data before infragroup eliminations


In France national cement sales volumes at Ciments Calcia S.A. increased, in line with
market trends, by 1.3%. Net sales, which in the 1st half of 2002 included revenues
(9 million euro) for services provided to other Group sectors/companies following the
business reorganization in France and Belgium, rose by approximately 7%.
Operating results, despite the recovery in the second quarter, were nonetheless penalized
by the long period of strikes which limited production in the 1st quarter and caused a
major running down of stocks and increased costs for the provision of cement and clinker
from Group plants in Belgium and Spain and from third parties.




                                                                                                                       21
     Ready mixed concrete and aggregates
                                                                                        (in millions of euro)*

                                                                          1 half 2002
                                                                           st
                                                                                               1st half 2001
     Net sales                                                                  291.9                 282.9
     Gross operating profit                                                      31.9                   32.3
     Capital expenditure                                                         12.9                    9.7

     * consolidated business sector data before infragroup eliminations


     The improvement in Group net sales in the aggregates and ready mixed concrete sectors
     was caused by the rise in average sales prices, set against a negative trend in some
     important cost factors (in particular raw materials and transport). On a constant basis,
     business volumes registered overall falls of 2% and 3.2% respectively for the two sectors.
     The reduction in volumes in the aggregates concerned in particular the highways and
     public infrastructure sector, which was kept buoyant in the 1st half of 2001 by some
     important works, while Group sales in the ready mixed concrete sector were affected by
     the poor performance in May and June.
     Overall operating results in the period were at the levels of the 1st half of 2001.


     Belgium

                                                                                        (in millions of euro)*

                                                                          1 half 2002
                                                                           st
                                                                                               1st half 2001
     Net sales                                                                  104.8                   96.5
     Gross operating profit                                                      28.0                   22.3
     Capital expenditure                                                          6.7                    7.8

     * consolidated country data before infragroup eliminations



     In a market which saw a major fall in cement consumption compared to the 1st half of
     2001, Compagnie des Ciments Belges improved its activity (+7.1%) thanks above all to the
     marked increase in volumes destined for the French market (because of the strikes which
     affected production at Ciments Calcia S.A. in the 1st quarter), which more than offset the
     fall recorded in Benelux (-4.6%).
     However, business in the ready mixed concrete and aggregates sectors fell, penalized by
     unfavorable weather and the postponement of some important work projects.
     The increase in net sales, owing to higher levels of cement exports to the French market
     and the containment of operating costs, caused a notable improvement in operating
     results.




22
                                                                                             Spain

                                                                                 (in millions of euro)*

                                                                 1 half 2002
                                                                  st
                                                                                        1st half 2001
Net sales                                                              133.8                   127.1
Gross operating profit                                                   36.4                    32.0
Capital expenditure                                                      16.4                     6.7

* consolidated country data before infragroup eliminations



Despite a market that continued to be favorable, above all in the southern regions of the
country, national cement sales at Financiera y Minera fell by 1.9%, offset in part by higher
exports to Ciments Calcia. Group sales in the south of Spain felt the effect of the
increasing volume of imports, while in the northern regions they suffered the effects of a
long period of strikes and the postponement of an important works project.
However, steady levels of business in aggregates (+9.8% compared to the 1st half of 2001)
and, to a lesser extent, in ready mixed concrete (+2.5%) more than made up for the fall
in cement sales volumes.
The favorable trend in net sales and the firm control of costs were reflected in improved
operating results.


                                                                                           Greece


                                                                 1st half 2002          1st half 2001
Net sales                                                                49.7                    38.6
Gross operating profit                                                   17.4                    12.0
Capital expenditure                                                       3.0                     2.2

* consolidated country data before infragroup eliminations



In the 1st half of 2002, Halyps continued to benefit from the high levels of activity which
have been a feature of the construction sector in the Attica region, driven by infrastructure
works for the 2004 Olympic Games.
In the cement sector, Halyps increasingly favored more profitable domestic sales to exports,
realizing an overall increase in volumes of 7%.
Group business levels were also strongly up in the aggregates and ready mixed concrete
sectors with increases of 32.5% and 19.5% respectively compared to the 1st half of 2001.
The marked increase in overall volumes, with an increasingly important contribution from
national cement sales, translated into a notable increase in net sales and operating results.




                                                                                                          23
     North America

                                                                                            (in millions of euro)*

                                                                            1 half 2002
                                                                             st
                                                                                                   1st half 2001
     North America                                                                292.5                   291.0
     Gross operating profit                                                         58.6                    62.1
     Capital expenditure                                                            23.0                    23.3

     * consolidated geographical area data before infragroup eliminations



     The figures for North America include, from the end of May, operations at the Riverton
     Investment Corporation, a company which owns a cement plant in Martinsburg, West
     Virginia (with an annual production capacity of approximately 750 thousand metric tons)
     and has production facilities for aggregates and hydraulic limes at special sites.
     Against continuing uncertainty in the economy, forecasts for cement consumption for the
     current year indicate a fall compared to 2001, despite the solid performance of the
     residential construction sector.
     On a constant size basis, Group cement sales volumes in the half year fell by 3.4%.
     However, average sales prices, although they varied across different markets, improved
     slightly, which enabled the fall in net sales (-2.6%) to be contained, on a constant size and
     exchange rate basis.
     The fall in business and the increase in some operating costs, in particular connected to
     maintenance work that was brought forward, had a negative impact on operating results,
     which was, on the other hand, mitigated by the positive effect from the increase in
     production compared to the previous year.


     Turkey

                                                                            1st half 2002          1st half 2001
     Net sales                                                                      62.2                    65.6
     Gross operating profit                                                          9.4                     2.6
     Capital expenditure                                                             1.8                     5.1

     * consolidated country data before infragroup eliminations


     As previously indicated the figures for the 1st half of 2002 include Marmara Cimento
     which has a plant with a grinding facility to complement the site at Ambarli serving the
     Istanbul market.
     In Turkey, against a general background that remains negative and uncertain, investment,
     whether public or private, has still not shown any concrete signs of recovery.
     Compared to the 1st half of 2001, which benefited from a positive start before the crisis
     in February, Group national cement sales fell heavily (-22.7% on a comparable size basis),
     only partially offset by exports (-18.3% was the overall fall in cement and clinker
     volumes).



24
Group sales volumes in the ready mixed concrete sector were also heavily down (-13.7%),
while the aggregates business remained at the same levels as the 1st half of 2001.
Following the recovery, in the 1st quarter, of the exchange rate with the euro, the Turkish
lira lost value once again in the 2nd quarter. The trend in inflation/devaluation, nonetheless,
had a positive effect on cement sales prices that was greater than the negative impact on
costs. This was reflected in operating results which, although down, improved compared
to the first six months of 2001.


                                                                                       Morocco

                                                                                (in millions of euro)*

                                                                  1 half 2002
                                                                   st
                                                                                       1st half 2001
Net sales                                                                95.0                   91.8
Gross operating profit                                                   42.9                   39.2
Capital expenditure                                                       1.5                    2.8

* consolidated country data before infragroup eliminations



National cement consumption, which was stable at the end of March, grew in the half
year by 3.9% compared to the same period in 2001, thanks to important infrastructure
and residential construction development projects (the Marrakech stadium, dams,
motorways, real estate projects around Casablanca).
Apart from the aforementioned recovery, overall cement and clinker volumes sold by
Ciments du Maroc (+4.2% compared to the 1st half of 2001) also benefited from the
increase in volumes for export.
Group business levels grew strongly in the aggregates sector (+9.4%) and above all in the
ready mixed concrete sector (+13.5%).
The sound performance of the market coupled with firm cost control led to an
improvement in operating results. The latter was also helped by the postponement of
some maintenance work to the second part of the year.


                                                                                        Bulgaria

                                                                                (in millions of euro)*

                                                                  1 half 2002
                                                                   st
                                                                                       1st half 2001
Net sales                                                                32.4                   30.9
Gross operating profit                                                    9.6                    5.1
Capital expenditure                                                       5.1                    4.1

* consolidated country data before infragroup eliminations



Group net sales in Bulgaria improved strongly, thanks in part to the positive trend in the
construction sector in the tourist area to the south of the Black Sea.



                                                                                                         25
     The positive trend in sales on the more profitable home market (+17.3%) more than
     made up for the fall in volumes for export.
     The overall growth in volumes, the favorable sales mix and the containment of fuel costs
     (a result of the price and the mix) resulted in a significant improvement in operating
     results.


     Thailand

                                                                                                          (in millions of euro)*

                                                                                         1st half 2002           1st half 2001
     Net sales                                                                                   76.1                     76.8
     Gross operating profit                                                                      17.7                     26.7
     Capital expenditure                                                                          2.0                      1.5

     * consolidated country data before infragroup eliminations


     In the half year, the economic situation in Thailand showed strong signs of recovery
     following the period of crisis that had persisted since 1997.
     Cement consumption grew strongly, above all in the residential sector, driven higher also
     by the fall in interest rates.
     Overall Group cement and clinker sales grew by 13.3%, while the increase in the ready
     mixed concrete sector was 7.2%.
     Despite the solid progress in business levels, net sales were badly affected by the fall in
     sales prices that occurred in the last months of 2001 and which was linked to the difficult
     financial situation of one of the main players on the market (TPI).
     This situation continued into the 1st quarter of 2002 and, albeit less so in the 2nd quarter,
     had a notable impact on operating results which were markedly down over the period as
     a whole.


     India*

                                                                                                         (in millions of euro)**

                                                                                         1st half 2002           1st half 2001
     Net sales                                                                                   21.3                     20.1
     Gross operating profit                                                                       2.0                      5.6
     Capital expenditure                                                                          0.3                      0.4

      * Zuari Cement Ltd and Sri Vishnu Cement Ltd (as from 2002) consolidated on a proportional basis
     ** consolidated country data before infragroup eliminations



     At the start of 2002 Zuari Cement Ltd bought 95.6% of the share capital of Sri Vishnu
     Ltd, which was consolidated on a proportional basis. The contribution from this
     acquisition in the 1st half was 4.9 million euro in terms of net sales and 0.5 million euro in



26
terms of gross operating profit. In a rapidly expanding market, the Group felt the impact,
both in terms of volumes and prices, of strong competitive pressures following the
increase in production capacity by some companies that was greater than the increase in
consumption.
Against this background the increase in sales volumes, on a constant size basis, was only
7.4%; in addition the marked fall in prices affected the levels of net sales and caused a
notable reduction in operating results.


                                                                                     Egypt

In a market suffering the effects of an unstable economy and the installation of new
production capacity, Suez Cement Group broadly maintained domestic sales levels and
increased exports, thus realizing an overall rise in volumes compared to 2001 of 14.7%.
Results for the half year, which were down compared to the same period in 2001, were
particularly affected by the fall in prices which occurred in the 2nd quarter.
As previously mentioned, from the beginning of 2002 Suez Cement was consolidated on
an equity basis.


                                                      Group e-business initiatives

During the 1st half of 2002 BravoSolution S.p.A. (formerly Newco.com S.p.A.) continued
the process of expanding its corporate activities which in 2001 had already seen the
launch of new initiatives: BravoFood (food and grocery sector), BravoIndustry (process
industry and new sectors), BravoGov (e-procurement for public authorities) and an e-
procurement consultancy service for suitable clients.
Consolidated turnover in the half year (approximately 3.14 million euro) was more than
double the entire turnover for 2001; the final consolidated result was still a loss (-3.2
million euro), but it is gradually improving, in line with the original business plan.
Since it started operating and up to 30 June 2002, BravoSolution S.p.A. has held over 380
auctions, with an overall transaction value for goods and services of approximately 245
million euro and has commercialized approximately 90 catalogues, with more than
440,000 product codes published or about to be published, confirming its leading
position in the field of Italian and European e-procurement initiatives.
Also since the start of the company’s operations and up to 30 June 2002, the Italcementi
Group has been able to enjoy overall savings on the purchase of goods and services for
its own business of approximately 3.1 million euro through the use of BravoSolution’s
facilities and assistance. The share of turnover and transactions that relate to Italcementi
Group companies was approximately 18%.
Today the BravoSolution Group numbers 84 heads in the three countries (Italy, France and
Spain) where the business has been carried on up to now.




                                                                                               27
     Energy project

     As set out in the Directors’ Report for 2001, at the end of last year, Italcementi S.p.A.
     transferred the electric power production and distribution unit to the subsidiary Italgen
     S.p.A. The objective of this transfer was to ensure greater competition in the supply of
     energy, increase the Group’s presence in the sector and maximize the value of the assets
     currently owned.
     As part of the project to develop this initiative, during the 1st half of 2002, Italgen S.p.A.
     acquired from Italcementi S.p.A., on the basis of the results of a sworn expert opinion,
     lands at Colleferro (Rome) and the industrial complex at Modugno (Bari).
     In the half year, in accordance with the plans established, the process continued to obtain
     the necessary authorizations to build new combined cycle thermoelectric plants and, in
     the hydroelectric sector, the study project relating to the expansion of the existing plants
     went on, in order to obtain the status of renewable energy plants.
     Italgen S.p.A.’s electricity production is still destined almost exclusively for Group
     companies.




     Information systems

     Following the successful changeover to the Euro for all the companies involved, the 1st half
     of 2002 saw initiatives to contain costs and improve process efficiency.
     In particular in Italy various projects are underway as part of the performance
     improvement plan, as well as pilot initiatives in logistics and more effective customer
     relationship.
     In France and Belgium the integration process between the French and Belgian companies
     allowed a review of IT charges and action is being taken to optimize processes, while in
     North America the integration of Riverton Investment Corporation into the Essroc
     information system is fully underway.
     Overall the action to contain IT costs proved successful also in the 1st half of 2002.




     Corporate Governance

     During 2001, the Company’s Board of Directors adopted a Code of Conduct (the Code)
     which follows on from and integrates the rules proposed by the Corporate Governance
     for Listed Companies Committee set up at Borsa Italiana S.p.A. (the company managing
     the Italian Stock Exchange).

     The Corporate Governance structure, as set out in the binding regulations in the articles
     of association and in the voluntary measures of the Code, highlights Italcementi S.p.A.’s
     adhesion to ‘best practice’ rules that meet general approval.




28
Among other measures, the Code states that the Board of Directors nominate from their
own number the Internal Control Committee and the Remuneration Committee with the
duty to consult and make proposals. These Committees met and operated frequently
during the half year.


                                                     Dealings with related parties

For the purposes of the consolidated situation of the Italcementi Group, regular dealings
took place with the following related parties:
- the Parent Company Italmobiliare S.p.A. and its subsidiary companies;
- the Italcementi S.p.A. subsidiary companies that are not consolidated on a line-by-line
    basis;
- associated companies.
Transactions with related parties reflect Italcementi S.p.A.’s interest in leveraging the
synergies within the Group to enhance production and commercial integration, employ
competencies efficiently, and rationalize use of corporate structures and financial resources.
Italcementi S.p.A. provides Italmobiliare S.p.A. and that company’s subsidiaries with
personnel administration services and receives and provides services to optimize use of the
two companies’ resources and skills in the interest of the Group.
It also provides Italmobiliare S.p.A. with a share register management service.
Dealings with subsidiaries not consolidated with the line-by-line method and with
associated companies are of a business (goods/services) and a financial nature.
All dealings, of either a business or financial nature, are conducted at normal market
conditions.
In the half year there were no atypical or unusual operations.


                                                                                 Disputes

Disputes largely concern actions brought by the Antitrust Authorities, for which the
companies involved have already made adequate provision in the period concerned.
The judicial appeal presented by Italcementi, Ciments Français and by other European
cement producers, against the ruling of 15 March 2000 by the EU Court of First Appeal,
continued with a hearing before the Court of Justice held in Luxembourg on 4 July 2002.
There Italcementi and the other companies involved in the appeal set out their
observations.
The next stage in the procedure is for the Advocate General to expresses his opinion, which
is non-binding on the Court that will give its ruling.
As for tax assessments, appropriate provisions have been made where, on the basis of the
findings, the potential liabilities have been considered probable.




                                                                                                 29
     Significant events after 30 June 2002

     Within the context of specific authorizations arising from shareholders’ meetings, after
     the end of the half year Italcementi S.p.A. bought 957,800 of its own ordinary shares
     for an equivalent value of 8,986,045 euro to be used in the stock option plans for
     directors and managers.

     At the beginning of September Ciments Français S.A.’s public tender offer for 975,979
     ordinary shares of the Greek subsidiary Halyps Building Materials ended. It was taken
     up by 835,988 shares at a price of 9 euro per share. As part of a commitment to buy
     339,821 preferred shares at the same price of 9 euro per share, Ciments Français S.A. also
     acquired 215,879 preferred shares.
     At the end of the operation Ciments Français’ direct and indirect equity investment
     totaled 99.25% of the ordinary shares and 95.84% of the preferred shares. As a result
     the process to delist Halyps Building Material from the Athens Stock Exchange will be
     started and will be followed by the withdrawal of the remaining ordinary and preferred
     shares at the same price of 9 euro.

     In August, the shareholders’ meeting of Jalaprathan Cement Company approved the
     request to delist the company from the Bangkok Stock Exchange. Once the delisting
     authorization has been obtained from the necessary authorities, a public offer for the
     remaining shares will be launched at 15 baht per share.

     Following 30 June 2002, Italcementi S.p.A., through its subsidiaries Société Internationale
     Italcementi France S.A. and Société Internationale Italcementi Luxembourg S.A., increased its
     equity investment in Ciments Français S.A. by 218,913 shares in total, by means of a
     10.6 million euro investment.
     At 31 August 2002 the total equity investment held indirectly by Italcementi S.p.A. in
     Ciments Français S.A. was approximately 70.4%.




     Outlook

     In recent months economic conditions worldwide have been marked by great uncertainty
     which is likely to continue in the near future.
     The most delicate issues for the Group concern the performance of the construction
     sector in the United States, the difficult economic and political situation in Turkey, and the
     persistent weakness of prices in India and Thailand.
     In the other countries where the Group operates current market trends should continue.
     On the basis of the results for the 1st half and the generally favorable trend in sales in July,
     subject to exceptional events, the consolidated Group results for 2002, bearing in mind
     the likely improvement in the results of the Parent Company Italcementi S.p.A., should be
     slightly up on those for the previous year.




30
                       Italcementi Group



Consolidated
financial statements
as at and for
the period ended
30 June 2002
     Consolidated balance sheet




                                                                             06.30.2002   12.31.2001   Change      06.30.2001   06.30.2001
     ASSETS                                      (in thousands of euro)                                             Pro forma
     Fixed assets
        Intangible assets                                                     1,441,082    1,337,522   103,560      1,394,652    1,394,889
        Tangible assets                                                       2,892,712    2,885,575      7,137     2,870,060    2,923,417
        Investments and other financial assets                                 884,495      973,679     (89,184)     630,207      631,378
                                                      Total fixed assets      5,218,289    5,196,776    21,513      4,894,919    4,949,684
     Current assets
        Inventories                                                            420,725      430,019      (9,294)     428,587      432,636
        Trade and other receivables                                           1,374,917    1,172,139   202,778      1.324,065    1,330,318
        Financial assets not held as fixed assets                               74,302      126,281     (51,979)     162,308      186,370
        Cash and cash equivalents                                              159,236       58,305    100,931       103,667      105,377
                                                    Total current assets      2,029,180    1,786,744   242,436      2,018,627    2,054,701
     Prepayments and accrued income                                             80,841       72,354       8,487       79,442       79,546
     Total assets                                                             7,328,310    7,055,874   272,436      6,992,988    7,083,931




                                                                             06.30.2002   12.31.2001   Change      06.30.2001   06.30.2001
     EQUITY AND LIABILITIES                                                                                         Pro forma
     Shareholders’ equity
        Share capital                                                          282,549      282,549           -      282,549      282,549
        Share premium reserve                                                  344,316      344,316           -      344,316      344,316
        Other reserves and retained earnings                                  1,385,773    1,443,642    (57,869)    1,354,118    1,354,118
                                           Group shareholder’s equity         2,012,638    2,070,507    (57,869)    1,980,983    1,980,983
                                                        Minority interest      736,982      859,975    (122,993)     870,592      911,998
                                          Total shareholders’ equity          2,749,620    2,930,482   (180,862)    2,851,575    2,892,981
     Liabilities
        Floating rate subordinated securities                                  324,640      324,640           -      324,640      324,640
        Provisions for contingencies and charges                               636,832      611,872     24,960       614,271      614,271
        Employees’ leaving entitlements                                         77,204       76,385        819        76,528       76,528
        Payables                                                              3,522,221    3,098,073   424,148      3,108,572    3,158,109
        Accruals and deferred income                                            17,793       14,422       3,371       17,402       17,402
                                                         Total liabilities    4,578,690    4,125,392   453,298      4,141,413    4,190,950
     Total equity and liabilities                                             7,328,310    7,055,874   272,436      6,992,988    7,083,931




32
Consolidated income statement




CONTO ECONOMICO                                                   1st half 2002   1st half 2001   Change     1st half 2001       2001
                                         (in thousands of euro)                      Pro forma
Net sales and other operating income
  Net sales                                                         2,108,073       2,019,243     88,830       2,039,382     4,062,659
  Change in inventories work in progress,
  semi-finished and finished goods                                     (14,885)        (16,909)    2,024          (17,042)      (6,151)
  Increase on internal work capital.under fixed assets                   8,475           7,787       688            7,795      15,011
  Other operating income                                                17,225          16,931       294           17,003      40,552
                                                         Total      2,118,888       2,027,052     91,836       2,047,138     4,112,071
Operating costs
  Raw, ancillary and consumable materials and supplies                527,791         508,763     19,028         516,810      998,025
  Services                                                            663,951         636,434     27,517         641,395     1,292,590
  Personnel expenses                                                  345,137         335,917      9,220         336,591      660,085
  Other operating costs                                                 59,442          51,282     8,160           51,960     108,575
  Provisions and write-downs                                            12,964          10,088     2,876           10,183      23,995
                                                         Total      1,609,285       1,542,484     66,801       1,556,939     3,083,270
Gross operating profit                                                509,603         484,568     25,035         490,199     1,028,801
  Amortization and depreciation                                       188,349         186,315      2,034         188,032      374,352
Operating income                                                      321,254         298,253     23,001         302,167      654,449
  Financial income and charges, net                                    (60,044)        (67,752)    7,708          (70,364)    (135,650)
  Adjustments to financial asset values, net                              (390)          2,025     (2,415)          2,025       6,489
  Non-recurring income and charges, net                                (13,688)            107    (13,795)             90      (20,181)
Income before taxes                                                   247,132         232,633     14,499         233,918      505,107
  Income taxes                                                        (104,821)       (105,445)      624         (105,445)    (222,400)
Income before minority interest                                       142,311         127,188     15,123         128,473      282,707
  Minority interest                                                    (34,444)        (38,038)    3,594          (39,323)     (81,422)




Group net income                                                      107,867           89,150    18,717           89,150     201,285




                                                                                                                                          33
     Consolidated statement of cash flows




                                                 (in thousands of euro)             1st half 2002                   1st half 2001 pro forma
     Cash and cash equivalents at beginning of year                                                  58,305                           44,562
     Cash flow from operating activities
        Group net income                                                                            107,867                           89,150
        Minority interest                                                                            34,444                           38,038
        Amortization and depreciation                                                               188,349                          186,315
        Change from companies valued using the equity method                                          (1,055)                          (1,786)
        Write-downs of fixed assets, net                                                               6,152                            2,573
        Capital (gain) loss on sales of fixed assets                                                  (7,605)                         (12,448)
        Net change in employees’ severance entitlements                                                 819                             1,432
        Change in other provisions                                                                     5,928                           (5,064)
        Interest on debenture loan                                                                     4,741                            9,909
        Interest income on floating rate subordinated securities                                     (12,035)                         (10,407)
        Change in working capital
                                                             Inventories      13,818                               7,511
                                                       Trade receivables     (191,952)                          (184,202)
                                                         Trade payables        1,498                             17,449
                                                  Other assets/liabilities      7,139                            26,698
                                                                    Total                           (169,497)                        (132,544)
                                                                    Total                           158,108                          165,168
     Cash flow from investing activities
        Investments in fixed assets
                                                              Intangible       (9,427)                           (14,711)
                                                                 Tangible    (155,540)                          (122,024)
                                         Financial (equity investments)      (347,889)                           (78,362)
                                                   Own shares buyback               -                             (4,750)
         Change in payables for purchase on tangible and intangible           (13,968)                           (10,092)
                         Change in payables for purchase on financial         64,357                                 (62)
                                                                    Total                           (462,467)                        (230,001)
        Change in (receivables)/payables for sales of investments                                      9,460                            2,623
        Proceeds from sale of fixed assets                                                             9,157                          22,167
                                                                    Total                           (443,850)                       (205,211)
     Cash flow from financing activities
        Net financing                                                                               518,227                          257,973
        Repayments of financing                                                                     (344,758)                        (193,825)
        Change in financial payables                                                                159,029                           91,493
        Change in financial receivables/other financial assets                                      166,727                           (16,700)
        Change in other financial assets, other than equity investments                              (15,580)                          (4,660)
                                                                    Total                           483,645                          134,281
     Cash flow from variations in shareholders’ equity
        Share capital increases                                                                        2,998                            4,109
        Grants related to assets                                                                           -                              50
        Dividends paid                                                                              (113,551)                         (80,410)
                                                                    Total                           (110,553)                         (76,251)
     Change in consolidation area and translation adjustments                                        13,581                           41,118
     Cash flows for the period, net                                                                 100,931                           59,105
     Cash and cash equivalents at end of period                                                     159,236                          103,667




34
Reclassified consolidated balance sheet




                                            (in thousands of euro)   06.30.2002    12.31.2001    Change
Fixed assets, net
   Intangible assets                                                  1,441,082     1,337,522    103,560
   Tangible assets                                                    2,892,712     2,885,575       7,137
   Investments and other financial assets*                             646,896       645,247        1,649
                                                            Total     4,980,690     4,868,344    112,346
Working capital, net
   Inventories                                                         420,725       430,019       (9,294)
   Trade receivables                                                  1,104,626      915,511     189,115
   Trade payables                                                      (626,146)     (618,239)     (7,907)
   Other assets                                                        345,809       324,547      21,262
   Other liabilities                                                   (412,916)     (334,169)    (78,747)
                                                            Total      832,098       717,669     114,429
Net capital employed                                                  5,812,788     5,586,013    226,775
Shareholders’ equity
   Group shareholders’ equity                                         2,012,638     2,070,507     (57,869)
   Minority interest                                                   736,982       859,975     (122,993)
                                                            Total     2,749,620     2,930,482    (180,862)
Floating rate subordinated securities, net                              88,470       100,505      (12,035)
Provisions
   Employees’ leaving entitlements                                      77,204        76,385         819
   Other provisions                                                    636,832       611,872      24,960
                                                            Total      714,036       688,257      25,779
Net debt
   Liquid funds and current financial assets                           (239,638)     (292,046)    52,408
   Short-term financing                                                794,251       836,156      (41,905)
   Medium to long-term financial assets                                    (652)       (1,272)       620
   Medium to long-term financing                                      1,706,701     1,323,931    382,770
                                                            Total     2,260,662     1,866,769    393,893




Total financing                                                       5,812,788     5,586,013    226,775


* net of the portion included in net debt



                                                                                                             35
     Notes to the consolidated financial statements




     Foreword

     The financial statements, the tables and the explanatory notes to the statements
     contained in this Half Yearly Report are expressed in thousands of euro, unless otherwise
     indicated. The figures for the 1st half of 2001 have been converted into euros using the
     official exchange rate prevailing.
     To allow a consistent comparison to be made with the figures for the 1st half of 2001,
     figures for that half were restated on a pro forma basis by consolidating Zuari Cement Ltd
     (India) on a proportional basis, as adopted in the financial statements for 2001, rather
     than on a line-by-line basis as adopted in the interim reports for 2001.
     This restatement led to the consolidation on a proportional basis of 50% of the balance
     sheet and income statement figures for Zuari Cement at 30 June 2001. The restatement
     had no effect on Group net income and shareholders’ equity. In the consolidated financial
     statements and these explanatory notes under the income statement headings, the
     changes compared to the restated pro forma figures have been shown; to provide full
     information the historic consolidated figures for the 1st half of 2001 have also been
     included.
     Under additional information the statement of cash flows sets out the changes in cash
     and cash equivalents in accordance with the scheme adopted in the annual financial
     statements. To allow for a consistent comparison the values for the 1st half of 2001 have
     been duly restated.

     Information on the Group’s activities and on significant events subsequent to the close of
     the period is given in the Directors’ Report.


     Basis of presentation

     The consolidated financial statements have been drawn up on the basis of the accounts
     at 30 June 2002 provided by the consolidated companies, adjusted, where necessary, to
     ensure alignment with the Group’s classification criteria and accounting policies by
     applying the valuation criteria and consolidation principles used during the preparation of
     the consolidated financial statements for the 2001 accounting period.




36
                                                                                    Consolidation area

The consolidation area has the following changes compared to 30 June 2001 (in terms of
the income statement) and to 31 December 2001 (in terms of the balance sheet):

Changes                                                Company
Entered the consolidation area
On line-by-line basis                                  Béton Sud Atlantique (France)
                                                       Cementos Capa S.L. (Spain)
                                                       Eurotech Cement s.h.p.k. (Albania)
                                                       Gacem Company Limited (Gambia)
                                                       Granulats de la Drome S.a.s. (France)
                                                       International Cement Traders (PVT) Ltd (Sri Lanka)
                                                       Mauritano-Française des Ciments (Mauritania)
                                                       Marmara Cimento Sanayi T.A.S. (Turkey)
                                                       Riverton Investment Corporation (Usa)
                                                       Berkeley Resource Recovery Ltd (Usa)
                                                       Capitol Cement Corporation (Usa)
                                                       Consumer Materials Inc (Usa)
                                                       Riverton Corporation (Usa)
                                                       Riverton Lime&Stone Co. Inc. (Usa)
On a proportional basis                                Les Calcaires Girondins (France)                      (at 50%)
                                                       L.G.E.G. (France)                                     (at 50%)
                                                       Sri Vishnu (India)                                   (at 47,8%)
On an equity basis                                     Suez Bag Company (Egypt)
                                                       Suez Cement Company (Egypt)
                                                       Tourah Portland Cement Company (Egypt)


Left the consolidation area
                                                       Essroc Offshore Ltd (Grand Cayman)
                                                       Armement Secam S.A. (France)
                                                       Cave Comand S.r.l. (Italy)


Change in consolidation method
From line-by-line to proportional basis                Zuari Cement Ltd (India) *


Merged companies
Incorporating company                                  Merged company
Société Internationale Italcementi (Luxembourg) S.A.   Italcementi Europe (Luxembourg) S.A. *
Ciments Calcia S.A. (France)                           S.N.C. Arena Services (France)
Compagnie des Ciments Belges S.A. (Belgio)             ORCQ Beton S.A. (Belgium)
Sociedad Financiera y Minera S.A. (Spain)              Rosa del Amulej (Spain)

* only in comparison to 30 June 2001




                                                                                                                         37
     The consolidation does not include controlling shareholdings that are not significant in terms
     of investment or results; recent acquisitions are also not consolidated. Non-consolidated
     subsidiary companies and associated companies in which the Group holds from 20% to
     50% of voting rights, or exercises considerable influence, have been valued with the equity
     method if significant; the others have been stated at cost.


     Currency translation

     The foreign-currency balances of non-Italian subsidiaries consolidated on a line-by-line or
     proportional basis and those of non-Italian associated companies valued with the equity
     method, have been translated into the accounting currency using the exchange rate ruling
     at 30 June 2002 for balance sheet items and the average rate for the 1st half of 2002 for
     the income statement.

     The following exchange rates were used:
                                                                                                           (in euro)

                                           Average rate                               Period-end rate
                                1st half         2001        1st half      30 June      31 December        30 June
     Currency                    2002                         2001           2002              2001          2001
     US dollar                0.89787         0.89581       0.89866        0.99750           0.88130       0.84800
     Canadian dollar          1.41275         1.38677       1.37868        1.50050           1.40770       1.29270
     Pound sterling           0.62167         0.62191       0.62371        0.64980           0.60850       0.60310
     Cypriot pound            0.57701         0.57589       0.57788        0.57974           0.57504       0.57428
     Moroccan dirham         10.25610        10.08960       9.93568       10.59320          10.19830      10.12670
     Turkish lira          1,241,035.0     1,091,893.0    876,287.0     1,577,410.0      1,265,229.0    1,078,950.0
     Swiss franc              1.46902         1.51047       1.53092        1.47210           1.48290       1.52280
     Thai baht               38.81650        39.81730      39.75850       41.42240          38.94290      38.38870
     Indian rupee            45.09980        42.82580      42.22460       50.87760          43.54740      40.52750
     Mauritanian ouguiya    238.97900       228.32600     226.83100      275.81800         228.59500     216.21000
     Albanian lek           127.34500       127.80000     129.31900      138.45500         119.28500     125.29200
     Sri Lankan rupee        83.16620        80.91860      79.89800       93.53800          80.57050      78.58480
     Egyptian lira            4.14322         3.82451       3.46319        4.61151           4.01449       3.28394




38
                                                       Consolidated balance sheet
Assets

Fixed assets

Intangible assets

Compared to 31 December 2001 these rose by 103,560 thousand euro, as follows:

                                                                              (in thousands of euro)

Description                                                 06.30.2002   12.31.2001           Change
Start-up and expansion costs                                   16,862       16,840                  22
Research, development and advertising expenses                    594          681                 (87)
Industrial patents and intellectual property rights              2,759        2,215                544
Concessions, licenses, trademarks and similar rights           27,344       30,794              (3,450)
Goodwill                                                       22,897       25,476              (2,579)
Assets in process of formation and advance payments              5,548       4,964                 584
Consolidation differences                                    1,330,046    1,222,391           107,655
Other                                                          35,032       34,161                 871
Total                                                        1,441,082    1,337,522           103,560



The change arose as follows:
                                                                                      (migliaia di euro)

Additions                                                                                        9,427
Amortization and write-downs                                                                  (48,133)
Translation differences                                                                       (33,515)
Change in consolidation area and reclassifications                                            175,781
Total                                                                                         103,560



“Change in consolidation area” refers mainly to the entry into the consolidation area of
the Riverton Group, United States for 102.0 million euro and the Sri Vishnu company, India
for 41.1 million euro; it also includes the surplus on the acquisition of Ciments du Maroc
shares worth 24.5 million euro. These amounts have been classified under “Consolidation
differences”.




                                                                                                           39
     Tangible assets

     Compared to 31 December 2001 these increased by 7,137 thousand euro, as follows:

                                                                                                       (in thousands of euro)

                                                                  06.30.2002                       12.31.2001
     Description                                 Gross value   Accum. depreciation    Net value      Net value         Change
     Land and buildings                           2,000,687              (914,113) 1,086,574        1,099,623          (13,049)
     Plant and machinery                          3,987,189            (2,640,946) 1,346,243        1,379,484          (33,241)
     Freely transferable assets                      37,825               (25,258)      12,567         12,844              (277)
     Industrial and commercial equipment            544,484              (413,951)     130,533        128,089             2,444
     Other                                          266,811              (209,814)      56,997         63,430            (6,433)
     Assets under construction
     and advance payments                           259,798                      -     259,798        202,105           57,693
     Total                                        7,096,794            (4,204,082) 2,892,712        2,885,575             7,137



     The increase arose as follows:

     Additions                                                                                                         155,540
     Disposals                                                                                                           (2,367)
     Depreciation and write-downs                                                                                     (142,562)
     Translation differences                                                                                           (90,661)
     Change in consolidation area and reclassifications                                                                 87,187
     Total                                                                                                                7,137



     “Change in consolidation area” mainly depends on the entry into the consolidation area
     of Marmara Cimento Sanayi T.A.S, Turkey for 26.1 million euro, Sri Vishnu, India for 17.7
     million euro, and the Riverton Group, United States for 32.4 million euro. Translation
     differences mainly come from changes in the dollar, the Thai baht and the Indian rupee
     against the euro.


     Investments and other financial assets

     Compared to 31 December 2001, these fell by 89,184 thousand euro, as follows:
                                                                                                                 (milioni di lire)

     Description                                                                06.30.2002        12.31.2001           Change
     Equity investments                                                              549,349        552,025              (2,676)
     Receivables                                                                     323,652        307,912             15,740
     Other securities                                                                   236         102,484           (102,248)
     Own shares                                                                       11,258         11,258                     -
     Total                                                                           884,495        973,679            (89,184)




40
Equity investments

These fell by 2,676 thousand euro as a result of the following changes:

                                                                                                                       (in thousands of euro)

                       Opening   Additions   Disposals   Write-downs    Revaluations   Translation     Change in       Total         Closing
                         value                                                         differences   consolidation   change            value
                                                                                                              area
Subsidiary companies    23,682   276,104         (597)        (2,855)            48         4,250        (258,316)   18,634          42,316
Associated companies   414,414     71,557        (485)        (1,368)         4,470       (43,914)        (50,385)   (20,125)       394,289
Other companies        113,929        228         (23)        (1,245)              -          (28)           (117)    (1,185)       112,744
Total                  552,025   347,889       (1,105)        (5,468)         4,518      (39,692)       (308,818)     (2,676)       549,349



“Additions” and “Change in consolidation area” mainly refer to the acquisition of equity in
the Riverton Group (United States) for 138.9 million euro, Sri Vishnu (India) for 38.9 million
euro, Marmara Cimento Sanayi T.A.S. (Turkey) for 22.1 million euro, as well as the purchase
of further shares in Ciments Francais S.A. for 28.4 million euro, in Ciments du Maroc for
57.5 million euro, in Suez Cement Ltd (Egypt) for 32.3 million euro and in E.S.A Monviso
S.p.A. (Italy) for 15.4 million euro.
“Revaluations” refers to the profits from companies valued with the equity method.

Receivables and Other securities

“Receivables” includes 236.2 million euro for the principal and interest accrued on
deposits with banks, which are due after more than five years, lodged at the time of the
issue of “floating rate subordinated securities” described under liabilities.
The change in “Other securities” refers to the repayment of “Italcementi Zero Coupon
1997-2002” bonds.

Own shares

The balance of 11,258 thousand euro represents the value of the purchase of 1,279,400
of its own ordinary shares by the Parent Company held at 30 June 2002, the par value of
which is 1,279,400 euro. Pursuant to article 2357 ter, 3rd section of the Italian Civil Code,
an undistributable reserve of equal value is included on the Group shareholders’ equity.




                                                                                                                                                41
     Current assets

     Inventories

     Compared to 31 December 2001 these fell by 9,294 thousand euro.
     Inventories at the end of the period were as follows:
                                                                                (in thousands of euro)

     Description                                             06.30.2002   12.31.2001           Change
     Raw, ancillary and consumable materials                   263,566       263,088                478
     Work-in-progress and semi-finished goods                   61,303        71,640           (10,337)
     Finished goods                                             82,746        87,360             (4,614)
     Payments on account                                        13,110         7,931              5,179
     Total                                                     420,725       430,019             (9,294)



     Inventories are shown net of write-down provisions that total 56.4 million euro (54.7
     million euro in 2001) mainly against the risk of slow-moving ancillary and consumable
     materials.

     Trade and other receivables

     Compared to 31 December 2001 these increased by 202,778 thousand euro, as follows:
                                                                                       (migliaia di euro)

     Description                                             06.30.2002   12.31.2001           Change
     Trade receivables                                        1,101,607      906,109           195,498
     From subsidiary companies                                    7,154       10,677             (3,523)
     From associated and related companies                       1,669         3,611             (1,942)
     From parent companies                                         141          189                 (48)
     Other receivables                                         264,346       251,553            12,793
     Total                                                    1,374,917    1,172,139           202,778



     Trade receivables

     This heading reflects trade receivables due from third parties net of a 75,156 thousand
     euro provision for bad debts (67,802 thousand euro in 2001).
     The increase in “Trade receivables” is due to the combined effect of the increase in
     turnover and the seasonal nature of sales, as well as the entry into the consolidation area
     of the Riverton Group (United States) worth 8.3 million euro and other subsidiaries for 8.2
     million euro overall.
     There are no receivables due after more than five years.




42
Financial assets not held as fixed assets

Compared to 31 December 2001 these fell by 51,979 thousand euro, as follows:

                                                                        (in thousands of euro)

Description                                          06.30.2002   12.31.2001           Change
Equity investments not held as fixed assets                288          299                 (11)
Own shares                                                 348          348                    -
Other securities                                        73,666      125,634            (51,968)
Total                                                   74,302      126,281            (51,979)



Major falls in the “Other securities” heading were recorded at Ciments du Maroc for
45,292 thousand euro and Zuari Cement Ltd for 18,095 thousand euro.

Own shares

The balance of 348 thousand euro represents the value of the purchase of 105,500 of its
own savings shares by the Parent Company held at 30 June 2002, the par value of which
is 105,500 euro. Pursuant to article 2357 ter, 3rd section of the Italian Civil Code an
undistributable reserve of equal value is included on the Group shareholders’ equity.


Cash and cash equivalents

Compared to 31 December 2001 these rose by 100,931 thousand euro, as follows:
                                                                               (migliaia di euro)

Description                                          06.30.2002   12.31.2001           Change
Bank and postal accounts                               152,771       52,758            100,013
Checks                                                   3,864        4,136                (272)
Cash in hand and cash equivalents                        2,601        1,411               1,190
Total                                                  159,236       58,305            100,931



The major increases in the “Bank and postal accounts” heading were recorded at S.I.I.L.
for 74,524 thousand euro and Ciments du Maroc for 39,406 thousand euro. A notable
fall was recorded at Asia Cement for 22,816 thousand euro.


                                                   Prepayments and accrued income

Compared to 31 December 2001 these rose by 8,487 thousand euro. They include interest-
related accrued income, prepaid expenses and advances, including 41,912 thousand euro
for advances paid for the use of quarries.




                                                                                                    43
     Equity and liabilities

     Shareholders’ equity

     Group shareholders’ equity

     Group shareholders’ equity fell, compared to 31 December 2001, by 57,869 thousand euro.
     In the following table the changes in consolidated Group shareholders’ equity are set out:

                                                                                   (in thousands of euro)

     Result for the period                                                                        107,867
     Change in consolidation area and translation differences                                     (93,932)
     Dividends paid                                                                               (71,804)
     Total                                                                                        (57,869)



     The change of 93.9 million euro in “Change in consolidation area and translation
     differences” refers for a total of 91.5 million euro to the fall in the translation reserve
     following the change in exchange rates of the dollar, the Indian rupee, the Egyptian lira,
     the Moroccan dirham and the Thai baht against the euro.


     Minority interest

     This reflects the equity of the consolidated companies held by third-party shareholders at
     30 June 2002:
                                                                                          (migliaia di euro)

     Description                                                06.30.2002   12.31.2001           Change
     Portion of share capital and reserves                        702,538      778,553            (76,015)
     Portion of the result for the period                          34,444       81,422            (46,978)
     Total                                                        736,982      859,975           (122,993)



     The fall of 123 million euro is due to exchange rate changes of 52.3 million euro, dividends
     paid out of 41.7 million euro, the purchase of further shares in Ciments Français S.A. of 26
     million euro and in Ciments du Maroc of 34.1 million euro, net of the profit of 34.4 million
     euro.




44
                                              Provisions for contingencies and charges

These rose by 24,960 thousand euro compared to 31 December 2001, as follows:

                                                                             (in thousands of euro)

Description                                              06.30.2002    12.31.2001           Change
Employee pensions and similar obligations                   73,767        58,709             15,058
Provisions for taxes and charges                            41,188        41,365                (177)
Provisions for deferred taxes                              289,124       293,900              (4,776)
Other                                                      232,753       217,898             14,855
Total                                                      636,832       611,872             24,960



Other

At 30 June 2002 other provisions comprised:
                                                                                    (migliaia di euro)

Description                                              06.30.2002    12.31.2001           Change
Environmental restoration costs                             78,542        78,528                  14
Restructuring and reorganization                            46,279        51,681              (5,402)
Disputes                                                    18,267        20,794              (2,527)
Other                                                       89,665        66,895             22,770
Total                                                      232,753       217,898             14,855




                                                       Employees’ leaving entitlements

This provision increased by 819 thousand euro compared to 31 December 2001, and
represents the severance liabilities accrued in respect of the 4,865 employees of the Italian
consolidated companies at 30 June 2002 (4,858 at 31 December 2001).




                                                                                                         45
     Payables

     These rose by 424,148 thousand euro compared to 31 December 2001. The movements
     for the period are set out below:
                                                                                 (in thousands of euro)

     Description                                              06.30.2002   12.31.2001         Change
     Financial payables
                                               Debentures       350,933      655,236         (304,303)
                                             Due to banks      1,451,300     895,374          555,926
                          Due to other providers of finance     694,715      600,506           94,209
     Total financial payables to third parties                 2,496,948    2,151,116         345,832
     Payments on account                                         21,340       10,574           10,766
     Due to suppliers                                           512,652      534,265          (21,613)
     Due on bills accepted and drawn                             86,059       69,926           16,133
     Due to subsidiary companies                                  3,307         1,882           1,425
     Due to associated companies                                  6,200         4,113           2,087
     Due to parent companies                                        541          370               171
     Due to related companies                                        50         6,079           (6,029)
     Due to tax authorities                                     115,485      108,361            7,124
     Due to social security authorities                          33,110       41,640            (8,530)
     Other amounts due                                          246,529      169,747           76,782
     Total                                                     3,522,221    3,098,073         424,148



     The main financial transactions resulting in the change in financial payables to third
     parties are contained in the comment on the “Net debt”.

     Medium/long-term debt, totaling 1,707 million euro at 30 June 2002, was divided as
     follows:
                                                                                   (in millions of euro)

     Description                                                           06.30.2002     12.31.2001
     Euro                                                                      1,629            1,231
     U.S. and Canadian dollar                                                     12                 2
     Thai baht                                                                    41                60
     Indian rupee                                                                 25                31
     Total                                                                     1,707            1,324



     Debt payable after five years totaled 205.8 million euro overall, of which 204.7 million
     euro related to loans to non-Italian companies.




46
                                                           Accruals and deferred income

These increased by 3,371 thousand euro compared to 31 December 2001: they largely
relate to accrued interest expense and costs for 4,424 thousand euro and deferred income
of 13,369 thousand euro.

                                                                         Financial position

At 30 June 2002, net debt stood at 2,260.7 million euro (1,866.8 million euro at 31
December 2001); it consisted of gross financial payables of 2,501.0 million euro and
medium/long-term financial assets and cash, cash equivalents and current financial assets
worth 240.3 million euro.
“Gross financial payables” of 2,501.0 million euro (2,160.1 million euro at 31 December
2001) were made up of short-term payables of 794.3 million euro (836.2 million euro at
31 December 2001) and medium/long-term payables of 1,706.7 million euro (1,323.9
million euro at 31 December 2001).

The main financial operations undertaken in the 1st half of 2002 were: 1) repayment on
maturity of the “Zero Coupon” bonded loan for 309.9 million euro and increased use of
250 million euro of bank credit lines guaranteed in the medium-term by Italcementi
S.p.A.; 2) opening of a syndicated variable rate loan worth 109.5 million euro maturing
in 6 years by Ciments Français S.A.

“Floating rate subordinated securities” (F.R.S.S.) are also recorded on the balance sheet at a
net value of 88.5 million euro, which brings net financial payables to 2,349.1 million euro.




                                                                                                 47
     Memorandum and contingency accounts

     These increased by 94,235 thousand euro compared to 31 December 2001, as follows:

                                                                                   (in thousands of euro)

     Description                                                             06.30.2002     12.31.2001
     Guarantees                                                                 109,844          98,305
     Guarantees on company assets                                               205,099        206,915
     Group assets held by third parties                                       1,350,623       1,421,087
     Third-party assets held by the Group                                        60,127          60,067
     Guarantees received from third parties                                      92,340          97,476
     Other memorandum and contingency accounts                                1,570,837       1,410,785
     Total                                                                    3,388,870       3,294,635



     “Guarantees on company assets” refers to 91.9 million euro for share pledges of
     subsidiaries as security for the Parent Company and 113.2 million euro for mortgages and
     liens on tangible assets.

     “Other memorandum and contingency accounts” includes purchase and sale
     commitments for forward contracts transacted to hedge exchange-rate fluctuation risks
     on foreign-currency receivables and payables and commitments in respect of interest-rate
     hedging contracts relating to a portion of borrowings and floating rate subordinated
     securities, as illustrated in the comment on the financial hedging instruments.

     Commitments in respect of new acquisitions

     a) Following the acquisition of Devnya Cement AD (Bulgaria) in 1998, the Group
        undertook to make investments totaling 100 million dollars in 10 years.
     b) In February 2001, Essroc Cement Corp. agreed with the Department for Environmental
        Protection of Pennsylvania to make investments to modernize filter equipment at the
        Nazareth III cement plant within five years, or risk closure of the plant itself. In
        December 2001, the company filed an application to expand and restructure the
        Nazareth I site. If this project is accepted, the kilns at Nazareth III will be closed, thus
        releasing Essroc Cement Corp. from the aforementioned investments. The restructuring
        project for Nazareth I represents an investment of over 100 million dollars up to 2005.




48
                                                          Financial hedging instruments

Interest rate hedging

The group enters into hedging operations in order to reduce the exposure of its net debt
to interest rate variations.
These operations consist of interest rate swaps, by which financial transactions that were
originally at variable rates are transformed into fixed rates.
The situation at 30 June 2002 can be summarized as follows:
                                                                                (in millions of euro)

                                                          Net debt +      Hedging        Net debt +
                                                      F.R.S.S. before   operations     F.R.S.S. after
                                                             hedging                        hedging
Variable rate                                              (2,264.9)     1,162.9            (1,102.0)
Fixed rate                                                    (84.2)     (1,162.9)          (1,247.1)
Total                                                      (2,349.1)            -          (2,349.1)




Exchange rate hedging

The Group is structurally exposed to the risk of exchange rate fluctuations with regard to
the purchase in US dollars of solid fuel; in addition Ciments Français S.A. normally
undertakes hedging operations on some infragroup loans to its subsidiaries.
To cover these risks, the following hedging operations, valued at the official ECB rates of
28 June 2002, were in place at 30 June 2002:

                                                                                     (milioni di euro)

Forward purchases                                                                               37.8
Forward sales                                                                                 213.1
Options                                                                                         16.7




                                                                                                         49
     Consolidated income statement

     Net sales and other operating income

     Net sales

     These rose by 88,830 thousand euro compared to the 1st half of 2001, as follows:

                                                                                  (in thousands of euro)

     Description                               1st half 2002   1st half 2001   Change        1st half 2001
                                                                   pro forma
     Product sales in Italy                        616,248         585,895     30,353             585,895
     Product sales abroad                        1,441,138       1,379,548     61,590           1,399,687
     Services in Italy                              27,201          25,262      1,939              25,262
     Services abroad                                20,314          24,508      (4,194)            24,508
     Other net sales in Italy                        1,505           1,598         (93)              1,598
     Other net sales abroad                          1,667           2,432        (765)              2,432
     Total                                       2,108,073       2,019,243     88,830           2,039,382




     A breakdown of net sales by business and by geographical area is provided in Directors’
     Report.


     Operating costs

     Raw, ancillary and consumable materials and supplies

     These rose by 19,028 thousand euro compared to the 1st half of 2001, as follows
                                                                                          (migliaia di euro)

     Description                               1st half 2002   1st half 2001   Change        1st half 2001
                                                                   pro forma
     Raw materials and semi-finished goods         234,844         198,912     35,932             199,234
     Fuel                                          112,072         139,255     (27,183)           144,703
     Packaging, materials and machinery            118,281         118,130        151             119,560
     Finished goods                                 62,266          61,862        404              62,240
     Change in inventories of raw, ancillary
     and consumable materials and supplies             328           (9,396)    9,724               (8,927)
     Total                                         527,791         508,763     19,028             516,810




50
Services

Compared to the 1st half of 2001 they rose by 27,517 thousand euro, as follows:

                                                                            (in thousands of euro)

Description                              1 half 2002
                                          st
                                                         1 half 2001
                                                          st
                                                                         Change        1st half 2001
                                                           pro forma
Electricity, water, gas                        131,572         125,627    5,945             125,652
External services and maintenance              187,668         169,055   18,613             169,226
Transport                                      196,998         191,435    5,563             194,875
Legal fees and consultancy                      27,017          30,036   (3,019)             30,297
Rents                                           37,416          37,764     (348)             37,823
Insurance                                       15,128          11,686    3,442              11,729
Other                                           68,152          70,831    (2,679)            71,793
Total                                          663,951         636,434   27,517             641,395




Personnel expenses

Total personnel expenses rose by 9,220 thousand euro compared to the 1st half of 2001,
as follows:
                                                                                    (migliaia di euro)

Description                              1st half 2002   1st half 2001   Change        1st half 2001
                                                             pro forma
Wages and salary                               246,630         236,456   10,174             236,903
Social security contributions                   87,982          86,581    1,401              86,808
Employees’ leaving entitlements                  7,128           7,734     (606)               7,734
Pensions and similar obligations                  188            1,482   (1,294)               1,482
Other costs                                      3,209           3,664     (455)               3,664
Total                                          345,137         335,917    9,220             336,591




The average number of employees in the 1st half of 2002 was 17,703 (17,732 in the 1st half
of 2001), representing 4,211 managers and clerical staff and 13,492 workers.




                                                                                                         51
     Other operating costs

     These rose by 8,160 thousand euro compared to the 1st half of 2001, as follows:

                                                                                (in thousands of euro)

     Description                             1 half 2002
                                              st
                                                             1 half 2001
                                                              st
                                                                             Change        1st half 2001
                                                               pro forma
     Subscriptions                                  4,859           4,636       223                4,643
     Other taxes                                   31,576          28,096     3,480              28,644
     Other costs                                   23,007          18,550     4,457              18,673
     Total                                         59,442          51,282     8,160              51,960




     Financial income and charges

     Financial income

     This totaled 52,491 thousand euro (59,275 thousand euro in the 1st half of 2001) and
     includes income from equity investments of 8,123 thousand euro and other financial
     income of 44,368 thousand euro.

     Income from equity investments grew by 101 thousand euro compared to the 1st half of
     2001 and refers mainly to dividends and related tax credits for the Parent Company and
     companies not included in the consolidation.
     Other financial income totaled 44,368 thousand euro in the 1st half of 2002, a fall of
     6,885 thousand euro compared to the same period in 2001, as follows:

                                                                                        (migliaia di euro)

     Description                             1st half 2002   1st half 2001   Change        1st half 2001
                                                                 pro forma
     Bank interest income                           1,041           1,800      ( 759)              1,799
     Interest income on receivables                 2,056           2,945      ( 889)              3,772
     Translation gains                             24,622          28,698    (4,076)             28,698
     Other income                                  16,649          17,810     (1,161)            17,819
     Total                                         44,368          51,253    (6,885)             52,088




52
Interest and other financial charges

These totaled 112,535 thousand euro, a fall, compared to the 1st half of 2001, of 14,492
thousand euro, as follows:

                                                                                       (in thousands of euro)

Description                                         1st half 2002   1st half 2001   Change     1st half 2001
                                                                        pro forma
Interest on debentures                                   14,223          20,567      (6,344)        20,567
Interest on floating rate subordinated securities        14,598          14,845       ( 247)        14,845
Translation losses                                       31,574          40,474      (8,900)        40,474
Interest expense on bank loans and mortgages             43,815          45,314      (1,499)        48,484
Other charges                                             8,325           5,827      2,498            6,104
Total                                                   112,535         127,027     (14,492)       130,474




Adjustments to financial asset values

Revaluations

These increased by 1,324 thousand euro compared to the 1st half of 2001.
The total refers to results reported by associated companies valued with the equity
method for 4,518 thousand euro (3,698 thousand euro in the 1st half of 2001) and
revaluations of financial assets that do not represent equity investments for 563 thousand
euro.


Write-downs

Compared to the 1st half of 2001 these increased by 3,739 thousand euro. The most
important change relates to the “Write-downs of equity investments” heading, the
balance of which includes 1,446 thousand euro due to losses at associated companies
valued with the equity method, 216 thousand euro for amortization and write-downs of
goodwill paid on the acquisition of associated companies, and 3,806 thousand euro for
write-downs during the half year.




                                                                                                                53
     Non-recurring income and charges

     Income

     This fell by 1,543 thousand euro compared to the 1st half of 2001, as follows:

                                                                                    (in thousands of euro)

     Description                               1 half 2002
                                                st
                                                                1 half 2001
                                                                 st
                                                                                 Change        1st half 2001
                                                                  pro forma
     Capital gains on disposal                         5,708           10,864    (5,156)             10,864
     Other income                                     19,289           15,676     3,613              16,580
     Total                                            24,997           26,540    (1,543)             27,444




     “Capital gains on disposal” includes 5.0 million euro for the sale of tangible assets.


     Charges

     These rose by 12,252 thousand euro compared to the 1st half of 2001, as follows:

                                                                                    (in thousands of euro)

     Description                               1st half 2002    1st half 2001    Change        1st half 2001
                                                                    pro forma
     Capital losses on disposal                         441             1,024      (583)               1,041
     Taxes in respect of prior years                   1,343            5,305     (3,962)              5,304
     Other charges                                    36,901           20,104    16,797              21,009
     Total                                            38,685           26,433    12,252              27,354




     “Other charges” includes write-downs of buildings and plant for 2.4 million euro,
     provisions for personnel charges of 6.3 million euro and other charges and contingent
     liabilities of 28.2 million euro.


     Income taxes

     These fell by 624 thousand euro compared to the 1st half of 2001.
     The tax charges in the income statement were as follows:

                                                                                            (migliaia di euro)

     Description                               1 half 2002
                                                st
                                                                1 half 2001
                                                                 st
                                                                                 Change        1st half 2001
                                                                  pro forma
     Current taxes                                   108,785          106,299     2,486             106,299
     Deferred taxes                                   (3,964)            (854)    (3,110)               (854)
     Total                                           104,821          105,445      (624)            105,445




54

								
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