Titan S.a. · EURONEXT:TITC
Titan — Titan Cement Group — Q1 2017 Earnings Presentation
19 slides from Titan's earnings presentation, May 11, 2017
Slide 1: Financial Results – 1st Quarter 2017
Financial Results – 1st Quarter 2017 Investors’ and Analysts’ Briefing Athens, 11 May 2017 Q1 2017
Slide 2: 2017 Highlights
2017 Highlights Q1 2017 Turnover and EBITDA recorded growth driven by Titan America performance. Q1 y-o-y Turnover was up by 7% to €362m. EBITDA increased by 18% reaching €51m, raising 12-month rolling EBITDA to €287m. Seasonal Q1 Net Losses reduced to €-4m (vs €-19m in 2016) due to improved pro
Slide 3: Higher Sales Volumes and Increased EBITDA Driven by Titan America
Higher Sales Volumes and Increased EBITDA (up €8m, +18%) Driven by Titan America Strong Performance Group Turnover Group EBITDA Group NPAT € in m illions 7.1% € in m illions € in m illions 18.0% 400 361.8 60 40 24.0 7.8 337.8 51.1 43.3 1st Quarter 300 40 20 200 -18.6 14.7 -3.9 20 0 100 0 0 -20 Turno
Slide 4: Strong Sales Volume Growth Across Regions but Greece
Strong Sales Volume Growth Across Regions but Greece 1st Quarter Sales Volume 2016A 2017A +16%(3) 4.2 -1%(3) 3.6 +22%(3) 3.8 3.8 1.07 1.31 Cement(1), (2) (2) Aggregates (2) Ready-mix (tn m) (tn m) (m3 m) * Intragroup product sales for processing are included in sales volumes (1) Cement sales include
Slide 5: Sales Volume Growth and Lower FX Losses Minimized Seasonal Q1 Net Losses
Sales Volume Growth and Lower FX Losses Minimized Seasonal Q1 Net Losses In Million Euros, unless otherwise stated 2017 2016 Variance Net Sales 361.8 337.8 7.1% Cost of Goods Sold -275.2 -258.6 6.4% Gross Margin (before depreciation) 86.6 79.2 9.3% SG&A -35.7 -34.8 2.6% Other Income / Expense 0.3 -1
Slide 6: Negative OFCF Despite Higher Profitability
Negative OFCF Despite Higher Profitability Due to Increased Working Capital and Capex Sources and Uses of Cash Q1 Operating Free Cash Flow (€ in millions) 80 60 51 2 (33) €-19m 40 (39) 20 (55) 0 (27) -20 -40 (18) 9 -60 -80 EBITDA 3Μ Non-Cash CapEx Operating Acquisitions Interest, FX Impact Increase
Slide 7: Increase in Net Debt due to Seasonal Working Capital Needs, Capex and Brazil Equity Payments
Increase in Net Debt due to Seasonal Working Capital Needs, Capex and Brazil Equity Payments 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 1,000 947 963 967 980 906 907 900 986 988 947 886 881 846 851 877 852 840 930 849 80
Slide 8: Titan Group Balance Sheet
Titan Group Balance Sheet In Million Euros, unless otherwise stated 31 Mar' 17 31 Dec' 16 Variance Property, plant & equipment 1,563.9 1,573.2 -9.3 Intangible assets and goodwill 370.0 375.1 -5.1 Investments/Other non-current assets 218.4 216.7 1.7 Non-current assets 2,152.3 2,165.0 -12.7 Inventorie
Slide 9: Market Overviews
Market Overviews 9 Investors' Q1 2017 and Analysts' Briefing
Slide 10: A Strong Q1 with Growth in Group Revenues and Profitability
A Strong Q1 with Growth in Group Revenues and Profitability Q1 2017 Turnover (€m) Q1 2017 EBITDA (€m) Total Assets (€m) 67% 34.1 42% 1,122 USA 61% 221.2 27% USA 90% USA 42% 1,159 52% 174.4 41% 17.9 GR/WE 19% 529 16% 57.6 -8% 9%4.4 19% 565 GR/WE GR/WE -48% 18% 62.4 19% 8.3 18% 488 SEE 18% 489 10%37.9
Slide 11: US Revenue and Profitability Growth Driven by Steadily Rising Strong Markets
US Revenue and Profitability Growth Driven by Steadily Rising Strong Markets US Revenues recorded high growth (€221m, +27% or +23% in USD) due to higher volumes and better pricing yoy. EBITDA almost doubled (€34m, +91%) as costs remained relatively stable and asset utilization increased. Resid
Slide 12: Greece Revenue and Profitability Decreased
Greece Revenue and Profitability Decreased Lower Greece Turnover (€58m, -8%) and EBITDA (€4m, -48%) due to lower export revenues and higher energy costs. Q1 domestic cement sales volumes stable at low levels with no signs of recovery. Export revenues declined due to volumes and prices. Negativ
Slide 13: Resilient Performance in SEE in a Volatile Environment
Resilient Performance in SEE in a Volatile Environment In SEE Turnover improved (€38m, +6%) supported by cement volume growth in all countries except Bulgaria. Competition in the Region and imports continued to put pressure on pricing. Higher energy costs impact margin. Alternative fuel subs
Slide 14: Egypt Posted Growth in EGP Revenues (-31% in € Terms)
Egypt Posted Growth in EGP Revenues (-31% in € Terms) Domestic cement prices increased by about 10% in Q1 2017 vs last year despite inflation running over 30% per annum. The devaluation of the EGP by over 50% led to lower Turnover (€45m, -31%) and EBITDA (€9m, -17%). Production volumes restored
Slide 15: Q1 2017 - Joint Ventures' Performance
Q1 2017 - Joint Ventures’ Performance In Turkey demand was affected by heavy winter. Sliding of the Turkish Lira by over 20% impacted results further. New capacity of 2.5 mMT added in the region intensifies competition for Adocim. In Brazil, cement consumption continues to decline (-8% Total a
Slide 16: Outlook
Outlook 16 Investors' Q1 2017 and Analysts' Briefing
Slide 17: Outlook 2017
Outlook 2017 • Short and medium term prospects continue to improve. USA • Focus on delivering higher profitability, capitalizing on recent investments. • Gap in public works pipeline causes headwinds. Greece • Focus on cost competitiveness and optimization of exports profitability. • Market proves u
Slide 18: 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 19: Thank you
Thank you 19 Investors' Q1 2017 and Analysts' Briefing