Cement, Energy and Environment

The traditional France Cement Exports export markets for the Turkish Cement Sector are mainly; Russia, Bulgaria and Georgia in Black Sea Zone, Iraq, Syria, Israel, Egypt, Libya and Algeria in MENA region, besides the traditional markets Sudan 2% Angola (2009) Rorrania 1% 2% Spain 2% Bulgaria 2% Azerbaijan 3% Israel 3% Rlssia 4% 2% T.RN.C. Ngeria 5% Overall export volumes in 2009 exceeded 20 million tons bringing the industry to the top of the World among the Cement Exporters. Turkey now ranks among the major cement producers of Europe and the World. Approximately 26% of the cement production was exported in 2009. Now the most crucial concern of the Industry is to keep the exports at the same level of last year. Iraq, where most of the exports targeted since the last 4 years, had passed this reputation to Russia in 2008, but has become again the highest importer in 2009 with the dramatic reduction in Russian imports. In 2009, 3.4 Mtons of cement exported to Iraq. Syria emerges as the second biggest importer with 2.1 Mtons. Syria and Iraq had 15% and 24% shares in cement exports respectively. Other important markets are Italy, Libya and Egypt. The table shows main countries and market shares which imports cement. Other 10% ~aq 24% Egypt 6% libya 7% Throughout the last 4 years, we observe strong shift in exports from Europe to the new emerging countries in Africa. Market Shares of Cement Exports of Turkey in 2008 & 2009 are given below: Iraq 20,23 24,17 Syria 13,63 14,40 Libya 0,65 6,97 Italy 2,35 6,56 Egypt 0,00 6,54 Nigeria 1'14 3,94 Israel 2,62 3,63 Russia 27,25 2,99 Bulgaria 0,09 2,91 Syria 15% naty 10% like Italy and Spain. Since last year new markets as Nigeria, Angola, Sudan, Cameroon, Congo and Liberia are emerging. Potential exports volume is expected to be around 20 million tons in the next 5 years. Pricing trends Due to a severe competitive environment after the start of the new capacities, domestic market prices suffer badly to cause considerable deterioration of the Companies' Financials. Energy reduction and fuel usage Being an energy intensive Industry, Turkish Cement Sector closely follow the Sustainability efforts made at global level. Cement Exports due to Continents (%) 2009 2008 2007 2006 oAmerica o Europe •Africa 11 Asia 4