Titan S.a. · EURONEXT:TITC

Titan — TITAN Cement Group — H1 2014 Earnings Presentation

18 slides from Titan's earnings presentation, Jul 31, 2014

  1. Slide 1: Financial Results – 1st Half 2014

    Financial Results – 1st Half 2014 Investors’ and Analysts’ conference call Athens, 31st July 2014

  2. Slide 2: 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

  3. Slide 3: Agenda

    Agenda  Group Financial Results  Market Overviews  Outlook 3

  4. Slide 4: Positive H1 Results. Gains from US Recovery Overshadowed by Gas Shortages in Egypt

    Positive H1 Results. Gains from US Recovery Overshadowed by Gas Shortages in Egypt  4% top-line growth in H1 2014.  Profitable H1 2014 at €2.9m.  Growth across all products in Greece driven by public works and exports.  US firm recovery benefits volume sales and prices.  SEE continues profitabl

  5. Slide 5: Total Revenue Growth and Positive Bottom Line

    Total Revenue Growth and Positive Bottom Line In Million Euro, unless otherwise stated H1 2014 H1 2013 Variance Q2 2014 Q2 2013 Variance Net Sales 571.2 549.9 3.9% 319.4 314.7 1.5% Cost of Goods Sold -430.9 -415.8 3.6% -231.4 -227.8 1.6% Gross Margin 140.3 134.1 4.6% 88.0 86.9 1.3% SG&A and Other In

  6. Slide 6: Significant Improvement in NPAT

    Significant Improvement in NPAT Evolution of Group Net Profit After Taxes and Minorities – 1st Half (€ in millions) 10 1.7 2.9 (21.8) 4.0 0 2.8 5.3 -10 4.1 6.2 (4.0) 6.1 (1.5) -20 -30 NPAT Gross SG&A Other Depn. Finance FX Gains/ Profit of Taxes Minority NPAT 2013 Margin Cost Losses Associates Inter

  7. Slide 7: Cash Generated from Operating Profits Covers Capex, Interest and Tax Payments

    Cash Generated from Operating Profits Covers Capex, Interest and Tax Payments and Further Reduces Net Debt Sources and Uses of Cash (€ in millions) Operating Free Cash Flow 100 89 (2) 90 (29) 80 70 1 (39) 60 50 40 30 (1) 19 20 €59m 10 0 EBITDA 6M Non-Cash CapEx Operating Interest, Tax, Net FX Impact

  8. Slide 8: Net Debt Reduction Exceeding €600 Million Since 2009

    Net Debt Reduction Exceeding €600 Million Since 2009 Group Net Debt (€ in millions) 1,200 1,112 988 986 1,000 947 930 874 831 800 739739 754 732 707 674 602 632 596 562 600 552 563 541 509 490 400 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012 2013 2014 For com

  9. Slide 9: Gains Achieved in All Regions Offset by Limited Egyptian Sales and Production

    Gains Achieved in All Regions Offset by Limited Egyptian Sales and Production Due to Acute Gas Shortages 1st Half Sales Volume 2nd Quarter Sales Volume 10.0 6.0 8.5 2013A 4.9 2013A 8.1 8.0 7.3 4.4 2014A 2014A 4.1 5.9 4.0 6.0 3.2 -5%(3) -11%(3) 4.0 +23%(3) 2.0 +29%(3) 1.88 1.07 2.0 1.64 0.86 +14%(3)

  10. Slide 10: Agenda

    Agenda  Group Financial Results  Market Overviews  Outlook 10

  11. Slide 11: Higher Contribution from all Regions in H1, Except from Fuel-Constrained Egypt

    Higher Contribution from all Regions in H1, Except from Fuel-Constrained Egypt Turnover EBITDA (€ in millions) (€ in millions) 3.9% 0.8% 600 549.9 21.3 571.2 100 88.3 0.7 89.0 90 500 3.9% 6 Months 80 0.8% 70 400 60 300 50 40 200 30 20 16.0% EBITDA Margin 15.6% 100 10 0 0 Turnover Variance Turnover E

  12. Slide 12: H1 Turnover and EBITDA by Region

    H1 Turnover and EBITDA by Region 6 Months 2014 Turnover (€m) 6 Months 2014 EBITDA (€m) 26% 29% 147.8 18% 16.0 GREECE 22% GREECE 72% 22% 38% 121.5 11% 9.3 39% 27% 220.1 21% 18.3 USA 14% USA 78% 35% 25% 193.4 12% 10.3 14% 18% 102.4 34% 30.2 SEE 3% SEE 30% 9% 18% 99.0 26% 23.2 30% 17% 100.8 27% 24.5 E.

  13. Slide 13: Higher Turnover in Greece Driven by Public Works and Increased Exports

    Higher Turnover in Greece Driven by Public Works and Increased Exports  Sales growth across all products driven by public works.  Residential construction remains depressed.  Growing exports support operating rates.  Prices continue to come under pressure.  Reduced energy costs contribute to im

  14. Slide 14: Growth in US Sales Across all Geographies and Products, Led by Boom Growth in Florida

    Growth in US Sales Across all Geographies and Products, Led by Boom Growth in Florida  Sales volumes increase in all geographies.  PCA reports 27% cement consumption growth in Florida (US average: +8%).  Successful price increases across all products.  TITAN America well positioned to capture up

  15. Slide 15: In SEE Positive Weather Effect in Q1 Reversed in Q2

    In SEE Positive Weather Effect in Q1 Reversed in Q2 Cost Efficiencies Improve Organic Profitability  Economic growth in the region remains marginal but positive.  Q1 positive weather effect reversed in Q2.  Operating profitability improved due to improved price environment, cost efficiencies and

  16. Slide 16: EMED Operations Severely Impacted by Gas Shortages in Egypt

    EMED Operations Severely Impacted by Gas Shortages in Egypt Egypt  Market demand growth reported at +1%.  Severe country fuel shortages in Q2 have serious adverse impact on operations.  Solid fuels investment in Beni-Suef expected to be completed by end of year.  Clinker purchases to address cus

  17. Slide 17: Agenda

    Agenda  Group Financial Results  Market Overviews  Outlook 17

  18. Slide 18: Outlook 2014

    Outlook 2014 • Greece: demand to post modest growth, underpinned by public works • US: recovery momentum set to continue • South Eastern Europe: no catalyst for growth yet visible • Eastern Med: focus on overcoming fuel constraints Group priorities:  Maintain productivity gains  Focus on operating

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