Titan S.a. · EURONEXT:TITC

Titan — TITAN Cement Group — 9M 2016 Earnings Presentation

24 slides from Titan's earnings presentation, Nov 3, 2016

  1. Slide 1: Financial Results – 9 Months 2016

    Financial Results – 9 Months 2016 Investors’ and Analysts’ Presentation Athens, 3 November 2016

  2. Slide 2: 9M 2016 Highlights

    9M 2016 Highlights  Group Turnover increases 12% (Q3 2016 vs Q3 2015) reaching €1,124.2m YTD (+9%yoy) due to US growth.  Best quarterly profitability performance for over 5 years. EBITDA jumps to €85.5m in Q3 (up 43% yoy) primarily due to US growth and Egypt recovery. 9M 2016 EBITDA up €39.8m to r

  3. Slide 3: Strong Q3 2016 Profitability with YTD EBITDA Rising by €40m

    Strong Q3 2016 Profitability with YTD EBITDA Rising by €40m (24.1% increase) Turnover EBITDA € in m illions 9.2% € in m illions 24.1% 1200 94.7 1,124.2 240 1,029.5 39.8 205.0 165.2 9 Months 800 160 400 80 0 0 Turnover Variance Turnover EBITDA Variance EBITDA 2015 2016 2015 2016 16.0% EBITDA Margin 1

  4. Slide 4: Robust Financial Performance Best Quarterly Profitability in Five Years

    Robust Financial Performance Best Quarterly Profitability in Five Years In Million Euros, unless otherwise stated 9M 2016 9M 2015 Variance Q3 2016 Q3 2015 Variance Net Sales 1,124.2 1,029.5 9.2% 400.4 356.7 12.2% Cost of Goods Sold -805.3 -768.8 4.7% -274.5 -262.2 4.7% Gross Margin (before depreciat

  5. Slide 5: Increasing Operating Cash Generation Net Debt Impacted by Acquisitions

    Increasing Operating Cash Generation Net Debt Impacted by Acquisitions Sources and Uses of Cash 9M Operating Free Cash Flow (€ in millions) 205 6 (97) 200 €80m 150 (34) 100 (91) 50 (100) (91) 0 -50 20 -100 -150 EBITDA 9Μ Non-Cash CapEx Operating Acquisitions Interest, FX Impact Increase in 2016 Item

  6. Slide 6: Funds Raised in Q2 Utilized for Buy-back of 2017 Bond and Brazil Acquisition

    Funds Raised in Q2 Utilized for Buy-back of 2017 Bond and Brazil Acquisition Group Net and Gross Debt Evolution (€ in millions) Net Debt Gross Debt 1,200 1,169 1,100 1,031 1,112 1,017 994 1,008 1,021 1,000 947 963 967 980 886 906 907 877 900 986 988 846 881 851 852 947 849 930 806825 791 818 874 798

  7. Slide 7: Debt & Liquidity Profile

    Debt & Liquidity Profile September 2016 Facilities by Type / Utilization (€m) Facilities / Utilization by Lender 1,600 Total Committed Lines: 1,390 1,400 1,218/ Utilization 871 1% 25% 22% 1,200 27% 513 37% 1,000 Un-Utilized Total Total 800 674 Utilized Facilities Utilization 544 600 €1,390m €877m 40

  8. Slide 8: Titan Group Balance Sheet

    Titan Group Balance Sheet In Million Euros, unless otherwise stated 30 Sep' 16 31 Dec' 15 Variance Property, plant & equipment 1,731.3 1,806.2 -74.9 Intangible assets and goodwill 428.4 455.9 -27.5 Other non-current assets 228.8 108.9 119.9 Non-current assets 2,388.5 2,371.0 17.5 Inventories 269.6 2

  9. Slide 9: Strong Volume Growth in Q3 YTD Volume Increase Across All Product Lines

    Strong Volume Growth in Q3 YTD Volume Increase Across All Product Lines 9 Months Sales Volume 3rd Quarter Sales Volume +4%(3) 12.7 12.2 2015A 201 5A 2016A 201 6A +9%(3) +18%(3) 4.6 +12%(3) 4.3 +23%(3) 12.0 10.2 +18%(3) (1), (2) (2) 3.19 3.58 (2) (1), (2) (2) (2) 4.1 3.3 1.06 1.26 Cement Aggregates R

  10. Slide 10: Market Overviews

    Market Overviews 10 Investors' 9M 2016 and Analysts' Presentation

  11. Slide 11: Strong US Performance and Improving Egypt Profitability Drive EBITDA Growth

    Strong US Performance and Improving Egypt Profitability Drive EBITDA Growth. 9M 2016 Turnover (€m) 9M 2016 EBITDA (€m) Total Assets (€m) 52% 584.2 18% 48% 98.0 38% 36% 1,086 USA USA USA 48% 496.5 18% 43% 71.1 40% 34% 1,006 17% 195.6 13% 28.0 -11% 21% 655 GR/WE -2% GR/WE GR/WE * 19% 198.6 19% 31.4 19

  12. Slide 12: EBITDA 12Month-Rolling Quarterly Analysis by Region (2006-2016)

    EBITDA 12Month-Rolling Quarterly Analysis by Region (2006-2016) USA GREECE & WE 240 250 213203 206 194 185 184 190 200 191 183 164 177 154 169 150 140 130 128 150 135 130 113111 129 128 123 106 101 101 107 86 100 87 90 70 70 69 51 51 61 43 39 404147 55 44 32 4249394544 41 40 39 36 26 25 3233 50 35 3

  13. Slide 13: US Continues to Grow with Marked Increase of Turnover, EBITDA and EBITDA Margin

    US Continues to Grow with Marked Increase of Turnover, EBITDA and EBITDA Margin  Higher yoy prices and volumes across all geographies and products lead to YTD sales of €584.2m (+18% yoy) and EBITDA of €98.0m (+38% yoy).  In Q3, strong growth in US Revenues (€211.7m +16% vs Q3 2015) and robust EBIT

  14. Slide 14: Greece Performance Remains Subdued due to Weak Local Market

    Greece Performance Remains Subdued due to Weak Local Market and Intense Exports Competition  Greece Turnover and EBITDA remain weak. Favorable comparison to Q3 of last year, exclusively due to the Capital Controls disruption in Q3 2015.  Domestic cement sales volumes at low levels representing 7%

  15. Slide 15: SEE Performance Largely Stable. Mixed Performance Among Countries.

    SEE Performance Largely Stable. Mixed Performance Among Countries.  In SEE, stable overall performance with YTD Turnover at €156.8m and EBITDA at €46.1m.  Cement sales volumes in the Region increase but prices remain soft.  Savings from lower fuel cost and higher use of alternative fuels. High al

  16. Slide 16: Egypt Cement Production and Sales Volumes Reach Record Highs in Q3 2016

    Egypt Cement Production and Sales Volumes Reach Record Highs in Q3 2016  Egypt Turnover YTD increases in EGP (+18%) and in € terms (+5%). Significant negative FX translation impact on sales revenues. YTD EBITDA more than doubles to €32.8m and EBITDA margin reaches 17.5% vs 9% in 2015.  Cement dema

  17. Slide 17: TITAN invests in Brazil a country with long term growth potential

    TITAN invests in Brazil a country with long term growth potential Joint venture in Cimento Apodi – Aug 2016 Cement consumption per capita in Brazil has increased considerably but still has room to grow 349 354 354 • A large country (205mln people) with strong growth potential 333 311 320 285 young p

  18. Slide 18: Cimento Apodi – State of Ceará - Northeast Brazil

    Cimento Apodi – State of Ceará -Northeast Brazil Cimento Apodi operates two units in Ceará state, which together form a well-connected network:  One integrated cement plant in Quixere, which began clinker production in March 2015  One grinding cement plant in Pecem, operating since 2011  Total ca

  19. Slide 19: Outlook

    Outlook 19 Investors' 9M 2016 and Analysts' Presentation

  20. Slide 20: Outlook 2016

    Outlook 2016 USA • Growth to continue within a positive environment. • Focus on business development and on expanding margins. Eastern Med • Egypt adjustment program and devaluation increase short term uncertainty. • Focus on completing task for restoring profitability and margins. • Turkey market s

  21. Slide 21: Appendix

    Appendix 21 Investors' 9M 2016 and Analysts' Presentation

  22. Slide 22: Q3 Sales and Profitability by Region

    Q3 Sales and Profitability by Region Turnover USA GREECE & WE SEE EMED € in m illions 15.8% € in millions 19.8% € in m illions -7.5% € in m illions 16.4% 28.9 211.7 200 182.8 200 200 200 150 150 150 150 100 100 100 100 51.9 10.3 62.2 64.7 -4.8 9.4 59.8 57.3 66.7 50 50 50 50 0 0 0 0 Turnover Variance

  23. Slide 23: 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

  24. Slide 24: Thank you

    Thank you 24 Investors' 9M 2016 and Analysts' Presentation

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