Titan S.a. · EURONEXT:TITC

Titan — TITAN Cement Group — 9M 2017 Earnings Presentation

22 slides from Titan's earnings presentation, Nov 2, 2017

  1. Slide 1: Financial Results 9 Months 2017

    Financial Results 9 Months 2017 Investors’ and Analysts’ Presentation Athens, 2 November 2017 9M 2017

  2. Slide 2: Highlights 9 Months 2017

    Highlights 9 Months 2017  Group 9M 2017 Turnover at €1,145m and EBITDA at €215m, +2% and +5% respectively above last year. EBITDA margin improved y-o-y by 50bps to 18.7%. US the driver of growth. 9M NPAT at €33m.  Soft performance in Q3 2017 affected by two one-off events. As a result of hurricane

  3. Slide 3: Turnover and EBITDA Growth Sustained Despite Two Exceptional Q3 Events

    Turnover and EBITDA Growth Sustained Despite Two Exceptional Q3 Events in US and Egypt. Group Turnover Group EBITDA Group NPAT € in m illions 1.8% € in m illions € in m illions -72.9% 4.6% 1250 1000 1,124.2 20.3 1,144.5 250 200 205.0 9.5 214.5 150 120 121.9 * -88.8 * 9 Months 750 150 90 500 100 60 3

  4. Slide 4: Most Markets Posted Volume Growth in 2017

    Most Markets Posted Volume Growth in 2017 9 Months Sales Volume +13%(3) 16.0 14.3 2016A 12.7 13.0 2017A 10.0 -2%(3) 7.0 +16%(3) 12.0 11.8 4.0 3.58 4.16 1.0 -2.0 (2) (2) Cement(1), (2) Aggregates Ready-mix (tn m) (tn m) (m3 m) * Intragroup product sales for processing are included in sales volumes (1

  5. Slide 5: 9 Month 2017 Performance: Growth Was Maintained Despite One-Offs

    9 Month 2017 Performance: Growth Was Maintained Despite One-Offs In Million Euros, unless otherwise stated 9M 2017 9M 2016 Variance Q3 2017 Q3 2016 Variance Net Sales 1,144.5 1,124.2 1.8% 370.7 400.4 -7.4% Cost of Goods Sold -812.4 -805.3 0.9% -257.7 -274.5 -6.1% Gross Margin (before depreciation) 3

  6. Slide 6: Higher Working Capital Needs while CAPEX Slowed Down

    Higher Working Capital Needs while CAPEX Slowed Down Sources and Uses of Cash 9M Operating Free Cash Flow (€ in millions) 250 215 7 (90) €54m 200 150 (78) 100 (49) 50 (147) (97) 0 -50 45 -100 -150 EBITDA 9M Non-Cash CapEx Operating Acquisitions Interest, Tax, FX Impact Increase in 2017 Items Working

  7. Slide 7: YoY €45m Increase in Net Debt. In Q3 Net Debt Decreased by €29m

    YoY €45m Increase in Net Debt. In Q3 Net Debt Decreased by €29m. Group Net and Gross Debt Evolution (€ in millions) Net Debt Gross Debt 1,200 1169 1,100 1031 1017 1112 994 1008 1021 963 967 980 1,000 947 886 906 907 900 986 988 881 851 852 877 876 846 849 930947 806825 818 840 814 825 791 798 800 87

  8. Slide 8: Total Assets Decline Due to Weaker US$

    Total Assets Decline Due to Weaker US$ In Million Euros, unless otherwise stated 30 Sep' 17 31 Dec' 16 Variance Property, plant & equipment 1,482.1 1,573.2 -91.1 Intangible assets and goodwill 344.2 375.1 -30.9 Investments/Other non-current assets 197.3 216.7 -19.4 Non-current assets 2,023.6 2,165.0

  9. Slide 9: Market Overviews

    Market Overviews 9 Investors' 9M 2017 and Analysts' Presentation

  10. Slide 10: EBITDA 12Month-Rolling Quarterly Analysis by Region (2006-2017)

    EBITDA 12Month-Rolling Quarterly Analysis by Region (2006-2017) USA GREECE & WE 240 250 213 186186 194 184 190 200 191 183 154 169 145 140 150 135 106 111 128 123 101 90 100 87 70 70 61 43 39 40 47 32 49 45 40 26 32 50 35 36 37 36 37 3129 21 4 4 3 6 12 13 14 -3 -6 -10 0 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2

  11. Slide 11: Group 12Month-Rolling EBITDA

    Group 12Month-Rolling EBITDA TITAN GROUP (€ in millions) 500 481 488 428 398 400 381 349 330 330 315 295 302 300 279 288 * 243 231 213 217 196 196 193 198 200 176 182 100 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q3 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

  12. Slide 12: US Market Trends Remain Robust Despite Hurricane Effect in Q3

    US Market Trends Remain Robust Despite Hurricane Effect in Q3  Revenue in 9M rose to €667m (+14%) due to price increases, higher volumes and the benefits accrued from our extensive investments in cement and for expansion of activities in RMC, aggregates and fly-ash.  9M EBITDA grew by 42% to €139m

  13. Slide 13: Greece Revenue Declined Further Due to Weak Domestic Market

    Greece Revenue Declined Further Due to Weak Domestic Market  Greece Turnover dropped to €190m in 9M (-3%) due to weak domestic cement sales volumes and FX impact on $ exports.  EBITDA declined in 9M to €20m (-27%), as rising fuel prices put further pressure on margin.  Domestic cement market retr

  14. Slide 14: In SEE Cement Market Demand Growth. Margins Decreased Due to Higher Energy Costs

    In SEE Cement Market Demand Growth. Margins Decreased Due to Higher Energy Costs.  In SEE Sales Revenues further improved in 9M (€173m, +11%) on the back of stronger demand. Export volumes (Albania, Bulgaria) contributed to stabilization of profitability.  Revenue and EBITDA growth in Q3 supported

  15. Slide 15: Egypt Profitability Suffered from Low Prices and Staff Reduction Restructuring Charge

    Egypt Profitability Suffered from Low Prices and Staff Reduction Restructuring Charge in Q3  EMED Turnover continued to decline in 9M, down 39% to €114m. In Egypt prices (average) increased by 9% in Q3 compared to previous quarters but lag significantly compared to the EGP devaluation and inflation

  16. Slide 16: 9M 2017 - Joint Ventures' Performance

    9M 2017 - Joint Ventures’ Performance  Cement consumption in Brazil dropped by 7% in 9M 2017 vs last year. Rate of market decline slowed down significantly in Q3. In 9M 2017 Apodi improved sales turnover maintaining positive EBITDA.  Improvement of key economic indicators with two Qs of GDP growth

  17. Slide 17: Outlook

    Outlook 17 Investors' 9M 2017 and Analysts' Presentation

  18. Slide 18: Outlook 2017

    Outlook 2017 • Short and medium term prospects for construction continue strong. USA • Focus on delivering high profitability, capitalizing on recent investments. • Gap in public works pipeline causes stronger headwinds. Improving macros? Greece • Focus on cost competitiveness and optimization of ex

  19. Slide 19: Appendix

    Appendix 19 Investors' 9M 2017 and Analysts' Presentation

  20. Slide 20: Q3 Sales and Profitability by Region

    Q3 Sales and Profitability by Region Turnover € in m illions USA GREECE & WE SEE EMED -0.3% € in millions -2.3% € in m illions € in m illions -49.7% 9.1% 240 240 240 240 211.7 -0.6 211.1 160 160 160 160 80 80 62.2 -1.5 60.7 80 5.5 65.3 80 66.7 -33.1 59.8 33.6 0 0 0 0 Turnover Variance Turnover Turno

  21. Slide 21: Disclaimer

    Disclaimer •This document contains forward-looking statements relating to the Group’s future business, development and economic performance. It also includes statements from sources that have not been independently verified by the Company. •Such statements may be subject to a number of risks, uncert

  22. Slide 22: Thank you

    Thank you 22 Investors' 9M 2017 and Analysts' Presentation

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