Large size and strong market positions in highly consolidated areas Good cash flow generation Extensive product, end-market, and geographic diversity Cyclicality, seasonality, and high capital intensity of the cement industry Aggressive financial profile after Hanson acquisition The ratings on Germany-based HeidelbergCement AG (HC) are supported by its good and further improving profitability, strong market positions as a leading global player in heavy construction materials, and extensive geographic diversity, which translate into strong cash flow generation. These strengths are offset by the group's aggressive financial profile after the mostly debt financed Hanson acquisition. Pro forma the acquisition of U.K.-based building material group Hanson PLC, which was completed on Aug. 23, 2007, the combined group had sales of €15.3 billion and EBITDA
