Titan S.a. · EURONEXT:TITC
Titan — Titan Cement International — FY2019 Earnings Presentation
26 slides from Titan's earnings presentation, Mar 19, 2020
Slide 1: Financial Results – Full Year 2019
Financial Results – Full Year 2019 Investors’ & Analysts’ Presentation Nicosia, 19 March 2020
Slide 2: 2019 FY Highlights
2019 FY Highlights • Group Revenue reached €1,610m (+€120m or 8.0%). Growth across all geographies except EMED. EBITDA rose to €267m (+€7m or 2.8% vs last year). • FY 2019 Net Profit decreased by 5.5% to €51m. • US Revenue improved to €952m (up 10.7% vs FY 2019, +5% in US$). Market conditions remain
Slide 3: Sustained Performance in 2019. Revenue Growth in All Quarters.
Sustained Performance in 2019. Revenue Growth in All Quarters. Group Revenue Group EBITDA Group NPAT € in millions 8.0% € in millions 2.8% € in millions -5.5% 119.7 1,609.8 7.4 267.1 80 1600 1,490.1 280 259.7 12 Months 1200 210 60 53.8 -2.9 50.9 800 140 40 400 70 20 0 0 0 Revenue Variance Revenue EB
Slide 4: Growth in Revenue and EBITDA. Increased Depreciation and FX Losses Reduced NPAT.
Growth in Revenue and EBITDA. Increased Depreciation and FX Losses Reduced NPAT. In Million Euros, unless otherwise stated FY 2019 FY 2018 Variance Revenue 1,609.8 1,490.1 8.0% Cost of Goods Sold -1,184.9 -1,091.1 8.6% Gross Margin (before depreciation) 424.9 399.0 6.5% SG&A -161.4 -147.5 9.3% Other
Slide 5: Titan Group Equity Transformed as TCI Became the New Parent Company
Titan Group Equity Transformed as TCI Became the New Parent Company. Borrowings Include Lease Liabilities. Variance In Million Euros, unless otherwise stated 31 Dec' 19 31 Dec' 18 Dec 19 vs Dec 18 Property, plant & equipment and inv. Property 1,710.7 1,660.1 50.6 Intangible assets and goodwill 425.3
Slide 6: Sales Volume Growth in USA, SEE and Greece. Further Decline in Egypt
Sales Volume Growth in USA, SEE and Greece. Further Decline in Egypt, Stabilization Signs in Turkey. 12 Month Sales Volume -7%(3) 18.2 17.0 2018A 2019A +5%(3) 17.1 18.0 -1%(3) 5.29 5.24 (1), (2) (2) (2) Cement Aggregates Ready-mix (tn m) (tn m) (m3 m) * Intragroup product sales for processing are in
Slide 7: Improved OFCF vs 2018 and Positive Net Cash Generation
Improved OFCF vs 2018 and Positive Net Cash Generation. IFRS 16 and Titan Shares Purchased by TCI Increased Net Debt. Sources and Uses of Cash 12M Operating Free Cash Flow (€ in millions) 300 2 67 18 (1 09) €175m 250 200 (1 ) (1 4) (8 8) 150 100 (2 5) (5 9) 50 (5 2) (6 4) 0 -50 -100 EBITDA Non-Cash
Slide 8: Net Debt Growth Due to IFRS 16 and TCI Squeeze Out
Net Debt Growth Due to IFRS 16 and TCI Squeeze Out Group Net and Gross Debt Evolution (€ in millions) Net debt Gross Debt 1,200 1112 1,100 986988 1,000 930947 874 889 891 900 831 839 836 787 784 800 739739 732 754 758 738751 772 707 713 716 723 674 660 650 661 700 632 630 621605 602 596 578 600 562
Slide 9: Performance by Region
Performance by Region Full Year 2019
Slide 10: US Market Fundamentals and Consumption Growth Remained Strong
US Market Fundamentals and Consumption Growth Remained Strong. Lower Profit Margin. USA Revenue USA EBITDA € in millions 10.7% € in millions 0.8% 91.9 952.0 177.9 1.4 179.3 860.1 180 900 12 Months 120 600 300 60 0 0 Revenue Variance Revenue EBITDA Variance EBITDA 2018 2019 2018 2019 20.7% EBITDA Mar
Slide 11: Greece Mild Recovery in 2019
Greece Mild Recovery in 2019 Greece Revenue Greece & Corporate EBITDA € in millions 3.3% € in millions 9.2% 900 180 12 Months 600 120 300 237.1 7.8 244.9 60 10.9 1.0 11.9 0 0 Revenue Variance Revenue EBITDA Variance EBITDA 2018 2019 2018 2019 4.6% EBITDA Margin 4.8% • Greece & WE Revenue up 3.3% to
Slide 12: Resilient Growth in SEE Across Most Markets
Resilient Growth in SEE Across Most Markets. SEE Revenue SEE EBITDA € in millions 10.0% € in millions 900 29.4% 180 600 120 12 Months 17.5 77.2 300 24.0 262.6 59.7 238.6 60 0 0 Revenue Variance Revenue EBITDA Variance EBITDA 2018 2019 2018 2019 25.0% EBITDA Margin 29.4% • SEE recorded Revenue and EB
Slide 13: EMED Market Decline Slowed Down in H2 2019. Market Distortions Persist.
EMED Market Decline Slowed Down in H2 2019. Market Distortions Persist. EMED Revenue EMED EBITDA € in millions -2.6% € in millions 900 170 600 12 Months 110 300 50 154.3 -4.0 150.3 11.4 -12.6 -1.2 0 -10 Revenue Variance Revenue EBITDA Variance EBITDA 2018 2019 2018 2019 7.4% EBITDA Margin -0.8% • EM
Slide 14: 12M 2019 – Apodi Brazil Performance
12M 2019 – Apodi Brazil Performance • Following the recession, the economy grew by 1% for the third consecutive year. Low inflation and interest rates. Progress on structural reforms (pension reform) lift confidence and support investment. • In 2019, cement demand in Brazil grew by 3.5% yoy, reachin
Slide 15: Climate Change
Climate Change Full Year 2019
Slide 16: Climate change
Climate change Concrete, with cement as a binder, is the most used man-made material on earth. It serves the society’s need for durable, resilient and affordable housing and infrastructure providing shelter, connecting people and enhancing commerce. Climate change is one of the most pressing issues
Slide 17: Climate change: Our approach
Climate change Our approach CO2 initiative, launched in 2018, with specific CO2 reduction plans for each facility up to 2030, based on the levers: 1 Alternative fuels utilization 2 Blended cements 3 Improved energy efficiency TITAN Group cement and grinding plants TITAN Group clinker to cement ratio
Slide 18: EU – Emissions Trading System
EU – Emissions Trading System Our plants in the EU* 1 CO2 performance of EU plants is similar to Group average CO2 reduction in a good pace, due to increase in Alternative Fuels 2 use in both countries EUA holdings sufficient to cover all domestic sales and a large 3 part of exports until 2030 Risk
Slide 19: Outlook
Outlook Full Year 2019
Slide 20: Outlook 2020
Outlook 2020 First 2 ½ months: No disruptions. Sales and operating results ahead of last year. Short term uncertainties: Level and duration of demand decline Disruption of operations Local regulatory interventions Positioning of governments towards construction TCI taking measures and prepar
Slide 21: Appendix
Appendix Full Year 2019
Slide 22: Beyond climate change
Beyond climate change An established track record on sustainability Disclosure and Materiality matrix Monitoring of linked to sustainability targets Participant since since 2005 2002 1983 2002 2003 2005 2007 2012 2015 2016 2018 1st Social Report 1st CSR & Reasonable assurance since 1st IAR in compli
Slide 23: Beyond climate change
Beyond climate change Strong environmental and social performance Dust SOx NOx Water Emissions 2019 Emissions 2019 Emissions 2019 Consumption 2019 - 96% - 54% - 57% - 49% compared to 2003* base level compared to 2003* base level compared to 2003* base level compared to 2003* base level Cumulative av
Slide 24: Corporate Governance
Corporate Governance Structure Group Policies Transparency • Board of Directors with majority of • Corporate Values and Code of Conduct • Reasonable Assurance (Sustainability non-executive directors Performance)1 • Antitrust and Fair Competition • BoD Chairman is a non-executive • Country CSR / Sust
Slide 25: Disclaimer
Disclaimer This presentation has been prepared by Titan for informational purposes only. Although the information contained in this presentation has been obtained from sources which Titan believes to be reliable, it has not been independently verified and no representation or warranty, express or im
Slide 26: Thank you
Thank you 26 Investors' and Analysts' Presentation Full Year 2019
Titan Cement International — FY2019 Earnings Presentation on 6ix