Titan S.a. · EURONEXT:TITC
Titan — Titan Cement International — FY2020 Earnings Presentation
26 slides from Titan's earnings presentation, Mar 23, 2021
Slide 1: Financial Results – Full Year 2020
Financial Results – Full Year 2020 Investors’ and Analysts’ Presentation Nicosia, 23 March 2021
Slide 2: Full Year 2020 Group Highlights
Full Year 2020 Group Highlights Solid Performance Despite the Pandemic. Organic Growth in All Regions. NPAT Hit by One-Off Non-Cash Charges. Group Revenue Group EBITDA Group NPAT € in millions € in millions -97.0% -0.2% € in millions 7.1% 1,609.8 -2.8 1,607.0 320 19.1 286.2 75 1600 267.1 240 50.9 -4
Slide 3: Full Year 2020 Regional Performance Highlights
Full Year 2020 Regional Performance Highlights Titan America Maintained Strong Performance. SEE Contributed to EBITDA Growth. Revenue EBITDA Total Assets €152m €-3m €78m +1%* N/A* €485m €938m -1% €176m 3% €1,096m 9% -2%* 18% €271m -2%* €96m +3%* 17% +25%* 34% €2,679m41% €1,607m €286m €457m 17% -6.4%
Slide 4: Higher Domestic Market Sales and Lower Costs Led to Improved Profitability
Higher Domestic Market Sales and Lower Costs, Especially Fuel Costs, Led to Improved Profitability. NPAT Impacted by One-off Charges in Egypt. FY 2020 Variance Variance In Million Euros, unless otherwise stated FY 2020 FY 2019 excl. Egypt vs LY vs LY One-Offs Revenue 1,607.0 1,609.8 -0.2% 1,607.0 -0
Slide 5: Group Balance Sheet at December 2020 Deflated by Strengthening of the €
Group Balance Sheet at 31 December 2020 Deflated by Strengthening of the €. Variance In Million Euros, unless otherwise stated 31 Dec' 20 31 Dec' 19 Dec 20 vs Dec 19 Property, plant & equipment and inv. Property 1,541.0 1,706.3 -165.3 Intangible assets and goodwill 352.3 429.7 -77.4 Investments/Othe
Slide 6: Sales Volume Growth Across Our Activities
Sales Volume Growth Across Our Activities. Full Year Sales Volume 4th Quarter Sales Volume +1%(3) 17.0 17.1 2019A 2019A 2020A +7%(3) 2020A +5%(3) 4.7 4.3 19.1 20.0 +7%(3) +3%(3) +3%(3) 4.9 5.2 5.24 5.43 1.33 1.37 Cement(1), (2) Aggregates (2) Ready-mix (2) Cement (1), (2) Aggregates (2) Ready-mix (2
Slide 7: €225m Operating Free Cash Flow Generation
€225m Operating Free Cash Flow Generation (+€50m vs 2019) Due to Improved Profitability and Lower CAPEX. Substantial Net Debt Reduction Aided by FX. Sources and Uses of Cash FY Operating Free Cash Flow (€ in millions) 18 (8 4) 300 2 86 €225m 250 5 (1 9) (7 7) 200 26 1 55 150 100 50 0 EBITDA Non-Cash
Slide 8: Leverage Ratio Dropped to 2.35x as Net Debt Reduced to €684m
Leverage Ratio Dropped to 2.35x as Net Debt Reduced to €684m. Group Net and Gross Debt Evolution (€ in millions) Net debt Gross Debt 1,200 1112 1,100 986988 1,000 930947 874 889 891 878 900 831 839 840 787 784 758 738751 772 808 800 739739707732 754 713 716 723 766 674 660 661 684 700 602632 596 630
Slide 9: Extended Debt Maturity Profile Following July Bond Issue. Ample Liquidity
Extended Debt Maturity Profile Following July Bond Issue. Ample Liquidity. Maturity Profile as at 31 December (€m) Facilities by Type / Utilization (€m) 400 Total Committed Lines: 1,436 358 1.600 5 1,118 Utilization 821 350 1.400 38% 300 1.200 247 545 250 224 763 Un-Utilized 1.000 200 18 635 Utilize
Slide 10: Performance by Region
@ TITAN Performance by Region eee al ne wei *. AGE ot OO ae i .
Slide 11: USA Revenue
Strong Performance in the US Supported by Resilient Construction Industry. Benefit From Operational Efficiencies and Vertical Integration. € in millions -1.5% 952.0 -14.3 937.7 900 $ 1,065.6 $ 1,069.3 600 USA Revenue €-17.6m translation impact 0.3% growth in local currency 300 0 Revenue Variance Rev
Slide 12: Greece Revenue
Increased Domestic Demand in Greece, Partly Offset by Lower Exports. Benefit from Low Energy Costs. 0.7% € in millions 900 Greece Revenue 600 300 244.9 1.7 246.6 0 3 1 25 28 1 2 Revenue 2019 Variance Revenue 2020 € in millions 44.8% 180 Greece & Corp EBITDA 120 Cement plant Grinding plant 60 Cement
Slide 13: SEE Revenue
Strong Rebound in SEE Markets in H2. Significant Profitability Improvement Aided by Lower Fuel and Electricity Cost. 3.2% € in millions 900 600 SEE Revenue 300 262.6 8.4 271.0 Titan Plants 0 Revenue Variance Revenue 2019 2020 5 20 6 1 € in millions 180 24.6% SEE EBITDA 120 19.0 96.2 Cement Capacity:
Slide 14: EMED Revenue
In EMED, Egypt Volumes Recovered in Q4. Prices Remain Low. Sustained Growth in Turkish Domestic and Export Volumes. € in millions 900 1.0% EMED Revenue €-8.6m translation impact 600 6.7% growth in local currency 300 150.3 1.4 151.7 0 Revenue Variance Revenue € in millions 2019 2020 Cement plant 170
Slide 15: Brazil – Joint Venture: Cimento Apodi
Brazil – Joint Venture: Cimento Apodi Cimento Apodi operates two units in Ceará state with total capacity over 2m MT cement • 2020 cement demand in Brazil reached 60.5m tons 10.7% higher y-o-y. North and Northeast regions grew at 14%. • Apodi sales benefited from a number of projects including the
Slide 16: Climate Change
Climate Change FY 2020 Financial Results
Slide 17: Acceleration of CO2 reduction efforts, strong environmental performance
Acceleration of CO2 reduction efforts, strong environmental performance Direct net specific CO2 emissions Climate-related commitments and partnerships kgCO2/t cementitious products 700 695 690 685 680 701 700 675 686 670 677 665 674 660 2016 2017 2018 2019 2020 • Net CO₂ emissions at 674 kgCO₂/t cem
Slide 18: Promotion of a safe and healthy work environment and support to local communities
Promotion of a safe and healthy work environment and provision of support to local communities during the pandemic PROTECTING OUR PEOPLE • Intensified hygiene measures • Medical and psychological support • Remote working and virtual meetings • Additional protective measures on site SUPPORTING OUR CO
Slide 19: New ESG targets for 2025 and beyond
New ESG targets for 2025 and beyond 19 Investors' and Analysts' Presentation FY 2020 Financial Results
Slide 20: Outlook
Outlook FY 2020 Financial Results
Slide 21: Outlook 2021
Outlook 2021 • Strong economic rebound anticipated to fuel the growth cycle in construction USA • Focus on capturing growth opportunities • Short and medium-term growth prospects improve in both housing & infrastructure Greece • Short-term headwinds from energy & freight rates • Focus on competitive
Slide 22: Appendix
Appendix
Slide 23: Q4 Group Sales and Profitability
Q4 Group Sales and Profitability Q4 2020 Variance In Million Euros, unless otherwise stated Q4 2020 Q4 2019 Variance excl. Egypt vs LY One-Offs Revenue 404.7 401.2 0.9% 404.7 0.9% Cost of Goods Sold -307.4 -296.9 3.5% -307.4 3.5% Gross Margin (before depreciation) 97.3 104.3 -6.7% 97.3 -6.7% SG&A -4
Slide 24: Q4 Sales and Profitability by Region
Q4 Sales and Profitability by Region Revenue USA GREECE & WE SEE EMED € in millions 15.1% € in millions € in millions -3.2% 9.7% € in millions -11.0% 230.4 240 240 240 240 -7.3 223.1 $ 255.1 $ 265.9 180 180 180 180 120 120 120 120 9.0 68.7 67.8 6.6 74.4 59.7 60 60 60 60 43.3 -4.8 38.5 0 0 0 0 Revenu
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 FY 2020 Financial Results
Titan Cement International — FY2020 Earnings Presentation on 6ix