Slide 1: Financial Results – Full Year 2012
Financial Results – Full Year 2012 Analysts’ conference call Athens, 4th March, 2013
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: In 2012 US Return to Growth and EMED Resilience Not Enough to Overcome Weakness
In 2012 US Return to Growth and EMED Resilience Not Enough to Overcome Weakness in Greece and SEE Top-line growth of 12.3% in Q4, wrapping-up a year of US come-back and strong exports. Headwinds in Greece and SEE lead to €24.5m Net Loss in 2012, despite turnaround in US. €112m Net Debt reducti
Slide 5: Improved Performance in Q4 Despite Fragile Economic Conditions in Key Regions
Improved Performance in Q4 Despite Fragile Economic Conditions in Key Regions 5
Slide 6: Cement Sales Growth Continues Driven by US & Exports
Cement Sales Growth Continues Driven by US & Exports 12 Months 4th Quarter 18.0 5.0 16.1 2011A 2011A 16.0 15.3 2012A 4.2 2012A 3.9 14.0 4.0 12.0 10.9 10.9 2.9 3.0 10.0 2.6 +5%(3) +6%(3) 8.0 2.0 6.0 +12%(3) 3.66 3.40 0.91 4.0 0.88 1.0 -7%(3) -3%(3) 2.0 0.0 0.0 Cement (1) (2) Aggregates Ready-mix Ceme
Slide 7: Operating Profits Impacted by Weakness in Greece and SEE
Operating Profits Impacted by Weakness in Greece and SEE Turnover Reconciliation EBITDA Reconciliation 12 Months Turnover Reconciliation EBITDA Reconciliation 4th Quarter 21.4% 18.9% 7
Slide 8: Realized Restructuring-Plan Savings Surpass 2012 Target
Realized Restructuring-Plan Savings Surpass 2012 Target Restructuring Plan Scheduled Savings and Charges 2012 Realized Savings 19,7 18.0 2012 Target 6,6 6,3 5,6 1,2 Q1 Q2 Q3 Q4 2012 Realized Cumulative Cash Flow Impact 2012 Recurring EBITDA Savings -18 +3 +29 6.6 6.3 5.6 1.2 19.7 8
Slide 9: NPAT after Minorities Impacted by Weak EBITDA and FX Gains
NPAT after Minorities Impacted by Weak EBITDA and FX Gains Evolution of Group Net Profit After Taxes and Minorities (€ in millions) CO2 Variance Other Income/ Expense EBITDA Variance 9
Slide 10: Free Cash Flow from Operations is Augmented by Divestitures
Free Cash Flow from Operations is Augmented by Divestitures and Results in €112m Net Debt Reduction Sources and Uses of Cash (€ in millions) Operating Free Cash Flow 250 196 (6) 60 (102) 200 (50) 150 0 14 112 100 50 €140m 0 EBITDA 12M Non-Cash CapEx Operating Disposals Interest, Tax, Net FX Impact C
Slide 11: Net Debt Reduction Exceeding €0.5 B in 4 Years
Net Debt Reduction Exceeding €0.5 B in 4 Years Group Net Debt 2009 2010 2011 2012 11
Slide 12: Robust Liquidity Profile FY 2012
Robust Liquidity Profile FY 2012 Credit Facilities by Type Facilities by Tenor (€ m)1 1: includes capital leases Bonds: Inter- 1,270 20% national banks: 39% 308 Greek banks: 41% Maturity Profile (€ m) Liquidity- 31 December 2012 • Titan’s liquidity ratio (long term committed un-utilized lines plus c
Slide 13: Agenda
Agenda Group Financial Results Market Overviews Outlook 13
Slide 14: Turnaround in US Amidst Continuing Uncertainties in Key Regions
Turnaround in US Amidst Continuing Uncertainties in Key Regions FY 2012 Turnover (€m) FY 2012 EBITDA (€m) 29% 15% 38% 42% 27% -11 25% -11 14% 30% 9% 20% 30% 73% 28% 55%
Slide 15: Drop in Profitability in Greece Continues on a Like-For-Like Basis
Drop in Profitability in Greece Continues on a Like-For-Like Basis, Abated by Restructuring and Increased Exports 2012 sales volumes drop by more than 30% in cement, rmc and aggregates amidst Greek depression. Rate of decline slows down in Q4. Prices continue to decline in all products. Stro
Slide 16: US Back to Positive Operating Profits with Construction Activity Firming Up
US Back to Positive Operating Profits with Construction Activity Firming Up USA cement consumption increases by 8.9% in 2012. New housing put in place grows at 26%. Multi-family residential buildings increase by 42% and non-residential also turns the corner with 10% growth. Accelerating growth
Slide 17: U.S.A.: Strong residential construction drives recovery of cement consumption
U.S.A.: Strong residential construction drives recovery of cement consumption PCA forecasts high growth in TITAN’s major Homebuilding expected to rump up markets 9.000.000 Total Portland cement consumption, (Metric Tons) 8.000.000 Single-family and multifamily starts, mil 7.000.000 6.000.000 5.000.0
Slide 18: In SEE Weak Economic Conditions Lead to Declining Demand and Soft Prices
In SEE Weak Economic Conditions Lead to Declining Demand and Soft Prices Demand for Construction materials slowing down, as SEE economies stagnate. 2012 cement volumes decline. Substantial price gains materialize in the 1H2012, but are for the most part reversed in H2. Lower proceeds from sa
Slide 19: EMED Demonstrates Like For Like Earnings Resilience Despite Uncertainties
EMED Demonstrates Like For Like Earnings Resilience Despite Uncertainties Political uncertainties construe a challenging business environment in Egypt. Cement demand in Egypt continues to grow, albeit at a slower pace of +5% YTD. Near balanced supply and demand despite new capacity additions i
Slide 20: Egypt: Resilient demand for building materials despite the political transition
Egypt: Resilient demand for building materials despite the political transition Egyptian Cement Market Size (million tons) 49.49 48.60 50.98 20
Slide 21: Agenda
Agenda Group Financial Results Market Overviews Outlook 21
Slide 22: Outlook 2013
Outlook 2013 • Greece: Demand nearing the bottom? • US: Sustained Turnaround • South Eastern Europe: Held back by EU crisis • Eastern Med: Challenging Environment, Low Visibility in Egypt • Focus remains on: ¾ Free cash flow generation ¾ Productivity initiatives ¾ Reducing carbon footprint ¾ Bolt –o
Slide 23: Adapting to the Crisis
Adapting to the Crisis Cement Capacity (m tons) ") 20.9 24.9 19% % Cement Capacity in Emerging Markets 45% 53% +8 points Cement Sales (m tons) ” 17.2 16.1 6% EBITDA (€m) 380 196 -48% % EBITDA in Emerging Markets 45% 81% +36 points Fixed Cost incl. SG&A (€ m) 400 334 -16% Personnel No. (like-for-like