Titan S.a. · EURONEXT:TITC

Titan — Titan Cement International — H1 2023 Earnings Presentation

28 slides from Titan's earnings presentation, 2023

  1. Slide 1: Financial Results – 1st Half 2023

    Financial Results – 1st Half 2023 TCI Investors’ and Analysts’ Presentation 1 OYMPIA ODOS, GREECE

  2. Slide 2: First Half 2023 Highlights

    First Half 2023 Highlights • Good markets and solid performance in the US and Europe drove sales and earnings growth. • Group Sales in H1 2023 reached €1,229m (+19% vs last year), while EBITDA increased by 77% to €241m and EBITDA margin rose to 19.6%. Sales in Q2 were €641m (+10% vs Q2 2022) and EBI

  3. Slide 3: Volumes growth and higher prices raise H1 2023 sales by 18.7%

    Volumes growth and higher prices raise H1 2023 sales by 18.7% to €1.2bn. Strong market demand supports increased prices and EBITDA rises by 77%. Group Sales Group EBITDA Group NPAT First Half Group Sales Group EBITDA Group NPAT 10.3% 49.2% 51.7% Second Quarter 641.0 150 44.1 75 66.6 750 60.1 134.0 2

  4. Slide 4: 12MR financials highlight record levels of sales and profitability growth

    12MR financials highlight record levels of sales and profitability growth 12-Month Rolling 12-Month Rolling 12-Month Rolling Group Sales Group EBITDA Group NPAT First Half First Half 2023 Results – Investors' and Analysts' Presentation 4

  5. Slide 5: As full effect of 2022/23 prices kicks in, sales growth exceeded cost inflation

    As full effect of 2022/23 prices kicks in, sales growth exceeded cost inflation bringing higher EBITDA and NPAT. Variance Variance In Million Euros, unless otherwise stated H1 2023 H12022 Q2 2023 Q2 2022 H1 23 vs H1 22 Q2 23 vs Q2 22 Sales 1,229.0 1,035.5 18.7% 641.0 580.9 10.3% Cost of Goods Sold -

  6. Slide 6: Market Overview

    Market Overview Critical Cost Factors softer, but quite higher than 2020/21 levels. WTI Brent Actual First Half 2023 Results – Investors' and Analysts' Presentation Futures / Forecasts as of 30/6/2023 6

  7. Slide 7: Healthy demand in the US and Greece

    Healthy demand in the US and Greece. Rise in most domestic market volumes in cement, ready-mix and aggregates. All cement exports directed to Group terminals. First Half Sales Volume Second Quarter Sales Volume -2% +3% 4.6 4.5 8.4 2022A 8.1 2022A 2023A 2023A +6% +4% 9.4 10 4.9 4.7 -1% +3% 2.8 2.8 1.

  8. Slide 8: High EBITDA results to Net Debt reduction by €36m to €762m

    High EBITDA results to Net Debt reduction by €36m to €762m. Strong free cash flow generation despite seasonal working capital needs and CAPEX program. Sources and Uses of Cash H1 2023 Operating Free Cash Flow (€ in millions) 250 2 41 13 (1 17) €77m 200 150 (6 0) 100 (2 ) (5 ) (2 4) 50 (2 1) 11 36 0

  9. Slide 9: Investments in energy efficiency, logistics and digitization continue

    Investments in energy efficiency, logistics and digitization continue. Completion in H1 of major projects (Kamari calciner, Tampa dome) Capital Expenditure Major 2023 CAPEX projects (€ in millions) Tampa Dome 61.6 USA 60.0 Norfolk Dome 34.0 Titan America RMC Trucks GREECE 19.0 H1 2023 Florida Silos

  10. Slide 10: Group net debt down to €762m. Leverage ratio dropped to 1.7x

    Group net debt down to €762m. Leverage ratio dropped to 1.7x. New Fitch credit rating at BB+. Strong EBITDA growth led to rapid reduction of Net Debt / EBITDA ratio. Group Net and Gross Debt Evolution (€ in millions) Net debt ross Debt Net Debt B D 1,200 2 3 3 3 2 3 00 3 32 33 3 3 33 3 3 3 2 2 2 2 2

  11. Slide 11: Overview of markets performance

    Overview of markets performance

  12. Slide 12: Strong demand for cement in tight supply markets in the US

    Strong demand for cement in tight supply markets led to favorable price-cost dynamics and growth in US sales and profitability. Market fundamentals support resilient demand levels. USA Sales USA EBITDA 24.5% 115.3% 750 144.5 735.5 72.5 135.5 591.0 120 First Half 500 80 63.0 $644m $644m $795m $795m $

  13. Slide 13: Greek domestic Sales significantly increase across products

    Greek domestic Sales significantly increase across products. Step up of EBITDA to higher level. Healthy Greek economy momentum supports construction activity. Greece & WE Sales Greece & Corporate EBITDA 21.3% 82.4% 750 First Half 500 120 162.7 34.6 197.3 80 250 19.9 16.4 36.3 40 0 0 Sales Variance S

  14. Slide 14: SEE sustained operational growth in 2023

    SEE sustained operational growth in 2023. Higher volumes in residential and infrastructure construction. SEE Sales SEE EBITDA 15.7% 37.0% 750 120 First Half 500 80 16.2 60.0 26.5 195.1 43.8 250 168.6 40 0 0 Sales Variance Sales EBITDA Variance EBITDA 2022 2023 2022 2023 26.0% EBITDA Margin 30.8% • S

  15. Slide 15: EMED affected by volatile environment and currency devaluations

    EMED affected by volatile environment and currency devaluations. Rising demand in Turkey while Egypt market receded to lower level. EMED Sales EMED EBITDA -10.7% -2.7% 750 120 First Half 500 80 250 40 113.1 -12.1 101.0 -0.3 9.6 9.3 0 0 Sales Variance Sales EBITDA Variance EBITDA 2022 2023 2022 2023

  16. Slide 16: Brazil – Joint Venture: Cimento Apodi profitability improves

    Brazil – Joint Venture: Cimento Apodi profitability improves $ 1,069.3 H1 2023 Apodi (100%) 2023 2022 Sales (€m) 59.7 50.5 EBITDA (€m) 6.0 3.6 * Consolidated on an equity basis • In H1 2023, the country’s cement demand was lower by 1.6% y-o-y, as both real estate and infrastructure construction slow

  17. Slide 17: Decarbonization - Digital - Innovation

    Decarbonization - Digital - Innovation 17

  18. Slide 18: TITAN's large-scale CCS project selected by the EU Innovation Fund

    TITAN’s large-scale CCS project selected by the EU Innovation Fund Project IFESTOS: producing c.3 mtpy zero-carbon cement to serve the needs for green construction in the metropolitan area of Athens and beyond. Carbon Capture Industrial Hub Ship Transport LC Permanent Geo- @ Kamari Gulf of Elefsina

  19. Slide 19: Further reduction of carbon footprint and acceleration of decarbonization initiatives

    Further reduction of carbon footprint and acceleration of decarbonization initiatives • Completion of three key alternative fuels investments in Greece, Bulgaria and Turkey, Specific net CO2 emissions (Scope 1) including the €26m calciner project in the Kamari plant, Greece (kg/t cementitious produc

  20. Slide 20: Group Digital CoC: H1, 2023 highlights

    Group Digital CoC: H1, 2023 highlights All initiatives on track Manufacturing Supply Chain & Customer Experience ▪ Real-Time Optimizers (RTOs) ▪ Digital Supply Chain & Customer Excellence (US) • Added RTOs in plants in US, Greece & Albania; assets in 6 • Phase 1 launched in November 2022 other plant

  21. Slide 21: ReGeneration Academy for Digital Acceleration

    ReGeneration Academy for Digital Acceleration 4th year of our successful training/CSR program ➢ 3rd Lab focusing on Data Science ➢ On-site event – 1st time since Covid ➢ Training completed in June ➢ 483 applicants ➢ 36 graduates (125 in total after 4 years of RADA) ➢ Interviews ongoing to select pla

  22. Slide 22: Outlook

    Outlook Z TVTAN

  23. Slide 23: Outlook

    Outlook Global economic conditions started improving, helped by softer energy prices and improved sentiment, however, high-interest rates may impact investment confidence. • US economy remains strong with positive private residential construction in our regions, amidst low housing inventories and a

  24. Slide 24: Appendix

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  25. Slide 25: Group Balance Sheet 30 June 2023

    Group Balance Sheet 30 June 2023 Variance In Million Euros, unless otherwise stated 30 Jun' 23 31 Dec' 22 Jun 23 vs Dec 22 Property, plant & equipment and inv. Property 1,653.8 1,675.7 -21.9 Intangible assets and goodwill 356.2 364.7 -8.5 Investments/Other non-current assets 142.7 141.7 1.0 Non-curr

  26. Slide 26: Q2 Sales and Profitability by Region

    Q2 Sales and Profitability by Region Sales USA GREECE & WE SEE EMED 14.5% 14.1% 6.1% -10.2% 450 450 450 47.1 372.6 325.5 $ 255.1 $ 265.9 300 300 300 12.8 104.9 6.4 111.3 150 $349.0 150 90.7 103.5 150 -6.1 53.6 $307.5 59.7 0 0 0 Sales Variance Sales Sales Variance Sales Sales Variance Sales Sales Var

  27. Slide 27: Disclaimer

    Disclaimer This presentation (“the Presentation”) has been prepared by Titan Cement International S.A (the “Company” and together with its subsidiaries, “the Group”) and is general background information about the activities of the Group at the date of the Presentation. The information in the Presen

  28. Slide 28: Thank you!

    Thank you! We invite you to visit our corporate’s website dedicated section “Net Zero” & “Digitalization”, as we are shaping a more sustainable nature-positive future for all and creating an ecosystem of digital innovation.

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