Titan S.a. · EURONEXT:TITC
Titan — H1 2009 Earnings Presentation
20 slides from Titan's earnings presentation, Aug 27, 2009
Slide 1: Titan Group Financial Results – Half Year 2009
Titan Group Financial Results – Half Year 2009 Athens – 27th August 2009
Slide 2: Forward-looking statements
•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, uncertainties and
Slide 3: Agenda
Agenda • Performance Highlights • Market Overviews • Group Financial Results • Outlook
Slide 4: Performance Highlights H1 2009
Performance Highlights H1 2009 • Turnover decreased by -10.6% to €684m, -15% excl. FX, -19% excl. FX and acquisitions • EBITDA decreased by -16.1% to €161m, -19% excl. FX , -25% excl. FX and acquisitions • Net Profit after tax and minority interest down by -48.8% to €59m, due to higher D&A, finance
Slide 5: Agenda
Agenda • Performance Highlights • Market Overviews • Group Financial Results • Outlook
Slide 6: Consolidated Sales & EBITDA by Region – 1st Half 2009
Consolidated Sales & EBITDA by Region – 1st Half 2009 Strong performance in East Med increased weight on Group turnover and EBITDA to 20% and 30% respectively. Stronger $ parity vs. the € eased decline rates in the US Turnover (€m) EBITDA (€m) -37% 36% 248,4 -23% 36% 57,9 GREECE GREECE 321,8 48% 91,
Slide 7: Market Overview, Greece & W. Europe
Market Overview, Greece & W. Europe Financial Results 1st Half 2009 ● Worsening economic climate continues to affect construction activity ● Unsold stock of newly-built houses weighs on demand ● Prices broadly stable ● Decline in solid fuel prices will gradually benefit profitability in H2 2009 Turn
Slide 8: Market Overview, USA
Market Overview, USA Financial Results 1st Half 2009 ● Stimulus package not seen in the market yet Demand continues to decline in the US; particularly in Florida ● Prices slightly eroded in $ terms (1) FLORIDA SOUTH ATLANTIC USA Cement Market Volumes ● In Lake Belt, the ACE to issue a Record of Ceme
Slide 9: Market Overview, SE Europe
Market Overview, SE Europe Financial Results 1st Half 2009 • Demand declined in all major markets • New plant in Albania progresses according to plan (Q1 2010), while keep building market share • Prices compare favorably against last year • Acquisition of remaining minorities (3.65%) of Kosjeric (Se
Slide 10: Market Overview, Eastern Med.
Market Overview, Eastern Med. Financial Results 1st Half 2009 • In Egypt, volume and prices ahead of last year • Beni Suef 2nd line on schedule for completion in early Nov 09; meet increased demand through purchased clinker & imported cement/clinker • Exports slowdown from Turkey challenges surplus
Slide 11: Agenda
Agenda • Performance Highlights • Market Overviews • Group Financial Results • Outlook
Slide 12: Key Sales Volume
Key Sales Volume 1st Half 2009 The drop in cement volumes reflects the downturn in the US, Greece &SEE, partially offset by growth in East Med (organic & scope). The volume decline in other product lines is driven by poor market conditions in the USA & Greece 2nd Quarter Half Year 9,4 8,6 7,6 7,5 4,
Slide 13: Group Turnover and EBITDA 1st Half & Q2 2009
Group Turnover and EBITDA 1st Half & Q2 2009 The rate of decline of the organic turnover and EBITDA in the 2nd quarter was lower compared to the 1st quarter of the year. Turnover €m EBITDA €m 32,9 (148,0) 250 800 765,1 192 6,0 (48,6) 200 4,3% 11,6 161,1 1st Half 700 683,7 3.1% 33,7 150 -25.3% 6.0% -
Slide 14: Financial Highlights 1st Half & Q2 2009
Financial Highlights 1st Half & Q2 2009 Net profit after tax & minorities is impacted negatively by the increased D&A, financing costs. Additionally, the €16m positive one-off tax items which were booked in Q2 2008, distort comparisons on a year-to-year basis Q2 2009 1st Half 2009 Var 09 vs Var 09 v
Slide 15: Group Net Profit after Tax
Group Net Profit after Tax 1st Half 2009 Net profit after taxes and minorities almost halved due to: • organic EBITDA decline, partially offset by acquisitions, and • positive one-off tax items which benefited H1 2008 120 116 1,9 (13,4) €m (48,6) 100 80 (4,5) 2,3 60 7,5 2,4 59,4 (4,3) 40 20 0 NPAT D
Slide 16: Foreign Currency Rates
Foreign Currency Rates 1st Half 2009 P&L impacted by the strengthening of the $ and EGP vs. the € Variance 30/6/09 vs BALANCE SHEET 30/6/2009 31/12/2008 31/12/08 €1 = USD 1,41 1,39 -2% €1 = EGP 7,91 7,68 -3% 1USD=EGP 5,59 5,52 -1% €1 = RSD 93,44 88,60 -5% 1USD=JPY 95,88 90,64 -6% €1 = TRY 2,16 2,15
Slide 17: Net & Gross Debt as of 30.06.09
Net & Gross Debt as of 30.06.09 Gross Debt decreased by €149m since end of 2008, mainly due to positive free cash flow and cash utilization 1300 1265 1184 1211 1208 €m 1200 1154 1059 1100 1133 1114 1058 Net Debt 1028 1000 Gross Debt 900 800 746 736 729 720 675 700 547 593 533 587 600 560 532 513 562
Slide 18: Sources and Uses of Cash
Sources and Uses of Cash 1st Half 2009 Free Cash Flow was positive €92m due to improving operating working capital and despite the front loaded CAPEX schedule for the two big projects 180 (€ m) 160 (110) 140 161 120 100 80 41 (21) 15 86 60 40 CAPEX (106) Investments (4) 20 (110) 0 CAPEX & Decrease i
Slide 19: Agenda
Agenda • Performance Highlights • Market Overviews • Group Financial Results • Outlook
Slide 20: 2009 Outlook
2009 Outlook • “Green shoots” not yet visible • Market trends not expected to change materially during the balance of the year • Demand in Greece to maintain declining trend • US outlook remains challenging as noted by the PCA in the Summer Forecast (-22%) • In SEE, the decline of demand in major ma