Titan S.a. · EURONEXT:TITC

Titan — TITAN Cement Group — H1 2017 Earnings Presentation

23 slides from Titan's earnings presentation, Jul 27, 2017

  1. Slide 1: Financial Results – 1st Half 2017

    Financial Results – 1st Half 2017 Investors’ and Analysts’ Presentation Athens, 27 July 2017 H1 2017

  2. Slide 2: 2017 Highlights

    2017 Highlights  Group financial performance continued to improve in 2017 driven by US.  Turnover increased by 7% in both Q2 and H1, reaching €774m. EBITDA grew by 19% to €142m.  H1 NPAT reached €14m due to higher EBITDA and lower finance costs, partly offset by higher taxes and JV losses.  In t

  3. Slide 3: Turnover and EBITDA Growth Driven by Strong Performance in the US

    Turnover and EBITDA Growth Driven by Strong Performance in the US Group Turnover Group EBITDA Group NPAT € in m illions 6.9% € in m illions 51.4% € in m illions 18.9% 900 150 22.6 142.1 30 50.0 773.8 723.8 119.5 6 Months 600 100 20 4.7 13.9 300 50 10 9.2 0 0 0 Turnover Variance Turnover EBITDA Varia

  4. Slide 4: Volume Growth in Most Markets

    Volume Growth in Most Markets 6 Months Sales Volume +17%(3) 9.4 2016A 8.1 2017A +18%(3) 8.0 8.0 2.78 2.35 Cement (1), (2) Aggregates (2) Ready-mix (2) (tn m) (tn m) (m3 m) * Intragroup product sales for processing are included in sales volumes (1) Cement sales include clinker and cementitious materi

  5. Slide 5: Strong Q2 and H1 Performance

    Strong Q2 and H1 Performance In Million Euros, unless otherwise stated H1 2017 H1 2016 Variance Q2 2017 Q2 2016 Variance Net Sales 773.8 723.8 6.9% 412.0 386.0 6.7% Cost of Goods Sold -554.7 -530.8 4.5% -279.4 -272.2 2.6% Gross Margin (before depreciation) 219.2 193.0 13.6% 132.6 113.8 16.5% SG&A -7

  6. Slide 6: Capital Return in H1 Drives Net Debt Increase by €126m

    OFCF Affected by High CAPEX and Working Capital. Capital Return in H1 Drives Net Debt Increase by €126m. Sources and Uses of Cash 6M Operating Free Cash Flow (€ in millions) 200 150 142 6 (72) €17m 100 (59) Distribution to 50 Shareholders -92 (38) (126) 0 (129) -50 -100 24 -150 -200 EBITDA 6M Non-Ca

  7. Slide 7: Increase in Net Debt due to Capital Return to Shareholders

    Increase in Net Debt due to Capital Return to Shareholders 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 1,021 967 980 1,000 947 963 886 906 907 877 986 988 881 876 900 947 846 851 849 852 930 806825 818 840 791 798 814 800 874 7

  8. Slide 8: Equity Reduced Due to Capital Return to Shareholders and Weakening of US$

    Equity Reduced Due to Capital Return to Shareholders and Weakening of US$ In Million Euros, unless otherwise stated 30 Jun' 17 31 Dec' 16 Variance Property, plant & equipment 1,517.3 1,573.2 -55.9 Intangible assets and goodwill 351.5 375.1 -23.6 Investments/Other non-current assets 206.1 216.7 -10.6

  9. Slide 9: Market Overviews

    Market Overviews 9 Investors' H1 2017 and Analysts' Presentation

  10. Slide 10: Rising US Contribution Leads to Growth in Revenue, EBITDA and NPAT

    Rising US Contribution Leads to Growth in Revenue, EBITDA and NPAT H1 2017 Turnover (€m) H1 2017 EBITDA (€m) Total Assets (€m) 65% 92.4 77% 39% 1,043 USA 59% 456.0 22% USA USA 41% 1,159 51% 372.6 19% 44% 52.2 72% 21% 544 GR/WE 17% 129.1 -3% 10%13.7 20% 559 GR/WE GR/WE -30% 18% 133.4 16% 19.7 SEE 19%

  11. Slide 11: EBITDA 12Month-Rolling Quarterly Analysis by Region (2006-2017)

    EBITDA 12Month-Rolling Quarterly Analysis by Region (2006-2017) USA GREECE & WE 240 250 213 186 194 184 190 200 191 183 154 169 145 140 150 135 106 111 128 123 101 100 87 90 70 70 61 43 39 40 47 49 45 32 36 37 31 40 26 32 50 35 36 37 12 21 4 4 3 6 13 14 -3 -6 0 -10 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q

  12. Slide 12: Group 12Month-Rolling EBITDA

    Group 12Month-Rolling EBITDA TITAN GROUP (€ in millions) 500 481 488 428 398 400 381 349 330 330 315 295 302 300 279 243 231 213 217 196 196 193 198 200 176 182 100 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2006 2

  13. Slide 13: US Revenue Growth at the Back of Volume and Price Increases

    US Revenue Growth at the Back of Volume and Price Increases Across All Activities  Revenue increased by 19% in US$ in H1 due to successful price increases and rise in volumes (Q2 2016 Cement sales were hit by long stoppage in Florida). Double-digit growth in our expanded vertically integrated activ

  14. Slide 14: Greece Revenue Remained Low Due to Depressed Economy

    Greece Revenue Remained Low Due to Depressed Economy and Intensified Competition in Exports  Greece Turnover slightly down to €129m in H1 (-3%) due to lower domestic cement sales.  EBITDA declined in H1 to €14m from €20m, impacted by lower domestic sales and higher fuel costs.  Domestic cement ma

  15. Slide 15: In SEE Improved Market Demand and Higher Sales Volumes

    In SEE Improved Market Demand and Higher Sales Volumes  In SEE Turnover improved in H1 (€108m, +11%). Cement volume growth positively correlated with election cycles in the region. Exports support plant utilization rates.  EBITDA decreased by 10% to €24m in H1, due to Q1 weak performance (Q2 stabl

  16. Slide 16: Egypt Financial Performance Hit by Low Prices

    Egypt Financial Performance Hit by Low Prices  H1 Turnover declined by 33% to €81m despite higher sales volumes, affected by weak cement prices, still not absorbing the EGP devaluation and inflation. Turnover in EGP up by 24%.  EBITDA, despite the reduction of our operating costs due to fuel cost

  17. Slide 17: H1 2017 - Joint Ventures' Performance

    H1 2017 - Joint Ventures’ Performance  Brazilian market not recovered in volumes or prices. Inflation reduced to 4% and central bank interest rate reduced to 10%. Apodi improved sales turnover at lower profitability due to weak prices.  Recovery in Brazil expected in 2018.  In Turkey, Adocim H1 c

  18. Slide 18: Outlook

    Outlook 18 Investors' H1 2017 and Analysts' Presentation

  19. Slide 19: Outlook 2017

    Outlook 2017 • Short and medium term prospects 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 exports profitabili

  20. Slide 20: Appendix

    Appendix 20 Investors' H1 2017 and Analysts' Presentation

  21. Slide 21: Q2 Sales and Profitability by Region

    Q2 Sales and Profitability by Region Turnover USA GREECE & WE SEE EMED € in m illions 18.5% € in millions 0.8% € in m illions 14.6% € in m illions -36.2% 240 36.7 234.8 240 240 240 198.2 160 160 160 160 71.0 0.6 71.6 9.0 80 80 80 61.2 70.1 80 55.7 -20.1 35.5 0 0 0 0 Turnover Variance Turnover Turnov

  22. Slide 22: 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

  23. Slide 23: Thank you

    Thank you 23 Investors' H1 2017 and Analysts' Presentation

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