Titan S.a. · EURONEXT:TITC

Titan — Titan Cement International — H1 2020 Earnings Presentation

25 slides from Titan's earnings presentation, Jul 30, 2020

  1. Slide 1: Financial Results – First Half 2020

    Financial Results – First Half 2020 Investors’ and Analysts’ Presentation Nicosia, 30 July 2020

  2. Slide 2: Our response to Covid-19

    Our response to Covid-19 Protecting our people • Immediate actions with focus on prevention and preparedness Looking ahead Close to our local communities • Support the communities in addressing their We remain vigilant and most urgent needs during the pandemic flexible to adjust further • Help local

  3. Slide 3: First Half 2020 Highlights

    First Half 2020 Highlights • Group Revenue resilient at €786m (+€1m) as Covid-19 impact on construction activity was moderate in our geographies. After lockdowns, sales recovery started in May, growth in June. • EBITDA rose to €137m (+12.0% vs last year) benefiting from lower fuel prices and cost co

  4. Slide 4: Stable Revenue and Improved Profitability Despite Covid-19 Disruption

    Stable Revenue and Improved Profitability Despite Covid-19 Disruption. Group Revenue Group EBITDA Group NPAT € in millions 0.1% € in millions 12.0% € in millions 68.0% 785.4 0.9 786.3 160 40 800 14.6 136.8 122.2 600 120 30 9.1 22.4 First Half 400 80 20 13.3 200 40 10 0 0 0 Revenue Variance Revenue E

  5. Slide 5: Cost Reduction Measures and Lower Fuel Costs Drove Profitability Growth

    Cost Reduction Measures and Lower Fuel Costs Drove Profitability Growth. In Million Euros, unless otherwise stated H1 2020 H1 2019 Variance Revenue 786.3 785.4 0.1% Cost of Goods Sold -575.2 -587.0 -2.0% Gross Margin (before depreciation) 211.1 198.4 6.4% SG&A -76.4 -77.8 -1.8% Other Income / Expens

  6. Slide 6: Group Balance Sheet 30 June 2020

    Group Balance Sheet 30 June 2020. Variance In Million Euros, unless otherwise stated 30 Jun' 20 31 Dec' 19 Jun 20 vs Dec 19 Property, plant & equipment and inv. Property 1,660.6 1,710.7 -50.1 Intangible assets and goodwill 418.7 425.3 -6.6 Investments/Other non-current assets 139.7 156.2 -16.5 Non-c

  7. Slide 7: Sales Volumes Affected by Epidemic Outbreak in April/Early May

    Sales Volumes Affected by Epidemic Outbreak in April/Early May. 1st Half Sales Volume 2nd Quarter Sales Volume -2%(3) 2019A 2019A 8.1 7.9 -7%(3) 2020A 2020A 4.4 +3%(3) 4.1 +2%(3) 9.2 +1%(3) 8.9 0%(3) 4.5 4.6 2.60 2.64 1.34 1.34 (1), (2) (2) (2) (1), (2) (2) (2) Cement Aggregates Ready-mix Cement Agg

  8. Slide 8: Improved Profitability and CAPEX Tightening Led to €69m OFCF in H1 2020

    Improved Profitability and CAPEX Tightening Led to €69m OFCF in H1 2020. Sources and Uses of Cash 6M Operating Free Cash Flow (€ in millions) 150 4 (4 1) €69m 1 37 120 (3 1) 90 (2 ) (3 6) 60 (3 ) 28 30 0 EBITDA Non-Cash CapEx Operating Acquisitions Interest, Tax, FX Impact IFRS 16 Decrease in 6M 202

  9. Slide 9: Net Debt Contraction in Q2 2020. Net Debt/EBITDA Decline

    Net Debt Contraction in Q2 2020. Net Debt/EBITDA Decline. Group Net and Gross Debt Evolution (€ in millions) Net debt Gross Debt 1,200 1112 1,100 986988 1,000 930947 874 889 891 878 900 831 839 787 784 772 836 808 739739707732 754 758 738751 800 713 716 723 674 660 650 661 700 602632 596 630 621605

  10. Slide 10: July Bond Issue Extended Debt Maturity Profile

    July Bond Issue Extended Debt Maturity Profile Maturity Profile as at 30 June (€m) Maturity Profile post 7Y Bond Issue (€m) * 400 373 400 356 334 350 20 350 3 13 235 261 300 300 250 250 195 14 8 200 287 200 13 119 348 348 150 99 150 191 7 163 8 247 100 16 100 26 77 7 2 50 83 50 16 34 36 4 19 34 4 0

  11. Slide 11: We Play Our Role in Addressing Global Challenges Focusing on Our Material Issues

    We Play Our Role in Addressing Global Challenges Focusing on Our Material Issues. Our focus areas Our role 2020 material issues De-carbonization TRANSFORM • Future-ready business model our business, focusing on resilience, for a carbon neutral world and • Innovation with emphasis on innovation and o

  12. Slide 12: De-Carbonization and Climate Change

    De-Carbonization and Climate Change. Building on Our CO2 Initiative and Improving Disclosures. We are committed to the COP21 Paris global goal to keep the increase in global temperature below 2°C 2020 H1 milestones We support the European Green Deal vision of • Use of natural gas in our carbon neutr

  13. Slide 13: TCI's ESG Performance Assessment by Industry-Leading ESG Rating Agencies

    TCI’s ESG Performance Assessment by Industry-Leading ESG Rating Agencies. Recording strong The Group’s 1st ESG performance At par with management of assessment in 2019 our peers ESG issues under the new legal entity of TCI Disclaimer statement The use by Titan cement international of any MSCI ESG re

  14. Slide 14: Performance by Region

    Performance by Region

  15. Slide 15: US Resilient Financial Performance Due to Flex Strategy

    US Resilient Financial Performance Due to Flex Strategy in Market Responsiveness and Cost Control. USA Revenue USA EBITDA € in millions 0.8% € in millions 3.5% 471.8 3.7 475.5 2.9 90 84.2 87.1 450 6 Months 300 60 150 30 0 0 Revenue Variance Revenue EBITDA Variance EBITDA 2019 2020 2019 2020 17.8% EB

  16. Slide 16: Greece Market Demand Rebound Interrupted by Covid-19 Outbreak

    Greece Market Demand Rebound Interrupted by Covid-19 Outbreak. Major Projects Expected to Gain Traction by Year-End. Greece Revenue Greece & Corporate EBITDA € in millions -7.8% € in millions -16.4% 450 90 300 60 6 Months 150 123.3 -9.6 113.7 30 9.9 -1.7 8.2 0 0 Revenue Variance Revenue EBITDA Varia

  17. Slide 17: Sustained, Well-Grounded Performance Continued in Southeastern Europe

    Sustained, Well-Grounded Performance Continued in Southeastern Europe SEE Revenue SEE EBITDA € in millions -3.9% € in millions 19.0% 450 90 6 Months 300 60 6.2 39.1 32.9 150 120.7 -4.8 115.9 30 0 0 Revenue Variance Revenue EBITDA Variance EBITDA 2019 2020 2019 2020 27.2% EBITDA Margin 33.7% • In SEE

  18. Slide 18: EMED Market Challenges Persist

    EMED Market Challenges Persist. Flat H1 Egypt Revenue (Q2 Decline). Growth in Turkish Domestic and Export Volumes. EMED Revenue EMED EBITDA € in millions 16.4% € in millions 450 80 6 Months 300 50 150 20 69.7 11.4 81.1 7.0 -4.7 2.3 0 -10 Revenue Variance Revenue EBITDA Variance EBITDA 2019 2020 2019

  19. Slide 19: 1st Half 2020 – Apodi Brazil Performance

    1st Half 2020 – Apodi Brazil Performance • In H1 cement demand in Brazil reached 26.9 million tons 3.6% higher YoY, with the North and Northeast region at +5.7%. Q2 recorded a quick and sharp recovery in construction activity and a significant increase in demand. • Revenue and EBITDA improved in loc

  20. Slide 20: Outlook

    Outlook

  21. Slide 21: Outlook

    Outlook • Several layers of uncertainty with longer lasting effects: o COVID evolution o Macroeconomic impact o Sector demand drivers o Geopolitical disruptions • Continuously adapt to changing conditions: o Prioritise health & safety o Effectively serve markets o Contain costs and maximize cash flo

  22. Slide 22: Appendix

    Appendix

  23. Slide 23: Q2 Sales and Profitability by Region

    Q2 Sales and Profitability by Region Revenue USA GREECE & WE SEE EMED € in millions -4.1% € in millions -16.3% € in millions -6.0% € in millions 11.7% 247.8 -10.1 237.7 240 240 240 240 180 180 180 180 120 120 120 120 67.2 72.3 -4.3 68.0 -10.9 56.3 60 60 60 60 35.4 4.2 39.6 0 0 0 0 Revenue Variance R

  24. Slide 24: 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

  25. Slide 25: Thank you

    Thank you 25 Investors' and Analysts' Presentation First Half 2020

Titan Cement International — H1 2020 Earnings Presentation on 6ix