Titan S.a. · EURONEXT:TITC
Titan — TITAN Cement Group — Q1 2014 Earnings Presentation
18 slides from Titan's earnings presentation, May 15, 2014
Slide 1: Financial Results – 1st Quarter 2014
Financial Results – 1st Quarter 2014 Investors’ and Analysts’ conference call Athens, 15th May 2014
Slide 2: 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
Slide 3: Agenda
Agenda Group Financial Results Market Overviews Outlook 3
Slide 4: Growth in Greece and South Eastern Europe Stand Out in a Low Seasonality, Non Trend-setting 1st Quarter
Growth in Greece and South Eastern Europe Stand Out in a Low Seasonality, Non Trend-setting 1st Quarter 7% top-line growth in 1Q 2014. 31% growth in operating profitability. Public Works drive growth in Greek domestic demand for the first time in 7 years. Improved performance in South Easter
Slide 5: Continued Improvement In a Seasonally Weak Quarter
Continued Improvement In a Seasonally Weak Quarter In Million Euro, unless otherwise stated 2014 2013 Variance Net Sales 251.8 235.2 7.0% Net Sales excl. Translation Impact 258.3 235.2 9.8% EBITDA 30.5 23.3 30.9% EBITDA excl. Translation Impact 31.9 23.3 37.0% FX Gains/Losses -0.3 -1.3 Profit Before
Slide 6: Net Losses Decline vs. Last Year as Operating Profitability Improves
Net Losses Decline vs. Last Year as Operating Profitability Improves Evolution of Group Net Profit After Taxes and Minorities (€ in millions) 10 (27.1) (11.0) 0 EBITDA 3.0 (0.7) -10 (Net of FX) 1.1 2.1 1.0 EBITDA 2.4 FX 8.6 -20 (1.4) -30 7.2 -40 NPAT Change in Operating Depn. Interest Other FX Gains
Slide 7: Growing Demand Across All Regions Offsets Sales Drop Induced by Gas-shortage in Egypt
Growing Demand Across All Regions Offsets Sales Drop Induced by Gas-shortage in Egypt 1st Quarter 2014 4.0 3.5 3.6 2013A 3.2 2014A 2.7 2.0 +2%(3) +17%(3) 0.79 0.81 +2%(3) 0.0 (1) (2) (2) (2) Cement Aggregates Ready-mix (tn m) (tn m) (m3 m) (1) Cement sales include clinker and cementitious materials
Slide 8: Organic Operating Profits on the Rise Despite Negative Impact from Egypt and Extreme Weather in US
Organic Operating Profits on the Rise Despite Negative Impact from Egypt and Extreme Weather in US Turnover Reconciliation EBITDA Reconciliation (€ in millions) (€ in millions) 7.0% 30.9% 35 8.6 30.5 300 23.1 251.8 30 235.2 -6.5 23.3 1st Quarter 250 -1.4 25 200 -2.8% 9.8% 37.0% 20 -6.0% 150 15 100 1
Slide 9: Seasonally Higher Working Capital Leads to Negative Free Cash Flow
Seasonally Higher Working Capital Leads to Negative Free Cash Flow Sources and Uses of Cash (€ in millions) Operating Free Cash Flow 40 31 (2) (14) 30 20 (30) 10 (32) 0 -10 (17) -20 -30 €-15m -40 EBITDA 3M 2014 Non-Cash CapEx Operating Interest, Tax, Change in Items Working Dividends Net Debt Capita
Slide 10: Net Debt Reduced by €54M Compared to 1Q13
Net Debt Reduced by €54M Compared to 1Q13 Group Net Debt (€ in millions) 1,200 1,112 988 986 1,000 947 930 874 831 800 739 739 754 732 707 674 602 632 596 562 563 600 552 541 509 400 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2012 2013 2014 For comparability purpos
Slide 11: Agenda
Agenda Group Financial Results Market Overviews Outlook 11
Slide 12: Turnover and Operating Profits Grow Across All Regions Except for Fuel-constrained Egypt
Turnover and Operating Profits Grow Across All Regions Except for Fuel-constrained Egypt Q1 2014 Turnover (€m) Q1 2014 EBITDA (€m) 29% 26% 66.6 13% 15% 4.0 GREECE 31% GREECE 38% 22% 51.0 -2.6 -11% 42% 27% -11 38% 94.7 3%0.9 USA 25% 6% USA -11 80% 38% 89.2 2%0.5 14% 16% 9% 41.1 32% 20% 9.7 SEE 28% SE
Slide 13: Public Works Drive Domestic Growth in Greece
Public Works Drive Domestic Growth in Greece For the first time in 7 years domestic sales of Cement grow by 27%, driven by public works and supported by mild winter. Growing exports still support operating rates. Prices continue to come under pressure. Disciplined management of fixed costs h
Slide 14: US Performance Affected by Extreme Weather and Front-Loading of Maintenance Costs
US Performance Affected by Extreme Weather and Front-Loading of Maintenance Costs PCA reports +4.7% average market demand growth in 1Q 2014 USA. In Florida cement demand expanded at 23%, while consumption in Mid-Atlantic states hit by severe weather shrunk between 5-14%. Successful price incre
Slide 15: In SEE, Profitability Rebounds as a Result of Growth in Both Sales Volumes and Prices
In SEE, Profitability Rebounds as a Result of Growth in Both Sales Volumes and Prices A mild winter drives stronger construction activity in the South Eastern European region, amidst sluggish economic growth. As a result, Cement demand recorded growth in most SEE countries, as compared to last y
Slide 16: In Egypt, Gas Shortages Affect Sales and Operating Profits
In Egypt, Gas Shortages Affect Sales and Operating Profits Challenging business environment due to severe shortage in fuel. Egypt market demand growth reported at +2%. Titan Cement production curtailed by almost 1/3, leading to 24% reduction in sales volume. Cement prices increase in respond
Slide 17: Agenda
Agenda Group Financial Results Market Overviews Outlook 17
Slide 18: Outlook 2014
Outlook 2014 • Greece: demand to grow, underpinned by public works • US: recovery momentum set to continue • South Eastern Europe: no catalyst for growth yet visible • Eastern Med: resilience in a challenging environment Group priorities: Maintain productivity gains Focus on operating excellence