Slide 1: TITAN Group 2014 Financial Results
Athens, 5 March, 2015 TITAN GROUP 2014 Financial Results Investors‘ and Analysts‘ Conference Call
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
Slide 3: Group Financial Results
01 Group Financial Results 05 March 2015 2014 Financial Results 3
Slide 4: 2014 Highlights – Return to Profitability
2014 Highlights – Return to Profitability • Turnover and EBITDA stable compared to 2013. • Profit before taxes at €47m (2013: €9m loss) after €31m FX gains. Net Profit attributable to shareholders €31m (2013: €36m loss). • Distribution of dividends (€0.15/share) and special reserves (€0.15/share). •
Slide 5: Positive Growth in Group Revenue and Margins. NPAT Boosted by FX Gains
Positive Growth in Group Revenue and Margins. NPAT Boosted by FX Gains In Million Euros, unless otherwise stated FY 2014 FY 2013 Variance Q4 2014 Q4 2013 Variance Net Sales 1,158.4 1,127.9 2.7% 292.7 276.1 6.0% Cost of Goods Sold -863.9 -846.3 2.1% -221.6 -209.0 6.0% Gross Margin (before depreciatio
Slide 6: €67m NPAT Improvement Aided by Switch from FX Losses to FX Gains
€67m NPAT Improvement Aided by Switch from FX Losses to FX Gains in the 2nd Half of 2014 Evolution of Group Net Profit after Taxes and Minorities – Full Year 2014 € in millions 40 2.3 30.9 30 8.5 49.4 5.6 20 10 -36.1 0 -10 -20 12.9 -11.3 9.8 -3.8 -30 -6.4 -40 -50 -3.3% NPAT Gross SG&A Other Deprec.
Slide 7: Drop in Operating Free Cash Flow Due to Higher CAPEX and WC
Drop in Operating Free Cash Flow (€46m Below 2013) Due to Higher CAPEX and WC Sources and Uses of Cash (€ in millions) Operating Free Cash Flow 200 7 (82) 182 €90m 150 (17) 100 (95) 50 (27) (32) 0 -50 -100 EBITDA 12M Non-Cash CapEx Operating Interest, Tax, FX Impact Change in 2014 Items Working Divi
Slide 8: Titan Group Balance Sheet – Strong Equity Base
Titan Group Balance Sheet – Strong Equity Base In Million Euros, unless otherwise stated 31 Dec' 14 31 Dec' 13 Variance Property, plant & equipment 1,673.0 1,564.9 108.1 Intangible assets and goodwill 446.1 414.0 32.1 Other non-current assets 115.9 104.9 11.0 Non-current assets 2,235.0 2,083.8 151.2
Slide 9: Net Debt Stabilizes Below €550m
Net Debt Stabilizes Below €550m Group Net Debt (€ in millions) 1,200 1,112 1,100 988 986 1,000 947 930 874 900 831 800 739739 732 754 707 674 700 602 632 596 562 552 563 600 541 529 541 509 490 500 -3.3% 400 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2010 2011 2012
Slide 10: Debt & Liquidity Profile
Debt & Liquidity Profile Facilities / Utilization by Lender Facilities by Tenor / Utilization (€m) 3% 1.400 1,180 25% 21% 1.200 998 42% 30% 1.000 496 Un-Utilized Total Total 800 364 600 Utilized Facilities Utilization €1,180m 400 182 58% €684m 634 684 200 45% 76% 132 0 50 1 ST LT Total Facilities In
Slide 11: Increase in Cement Sales in Greece and USA Cannot Offset the Drop in Egypt and Albania
Increase in Cement Sales in Greece and USA Cannot Offset the Drop in Egypt and Albania 12 Months Sales Volume 4th Quarter Sales Volume -7%(3) 1 7 .2 2013A 2013A 1 6 .0 2014A 2014A -5%(3) +14%(3) 4 .1 3 .9 +14%(3) 1 4 .2 1 2 .5 +10%(3) 3 .4 3 3 .9 0 3 .4 3 .4 0 .9 0 0 .9 9 (1), (2) (2) (2) (1), (2) (
Slide 12: Market Overviews
02 Market Overviews 05 March 2015 2014 Financial Results 12
Slide 13: 2014 a Profitable Year - Recovery in USA and Greece Offset by Lost Production in Egypt
2014 a Profitable Year - Recovery in USA and Greece Offset by Lost Production in Egypt Turnover EBITDA NPAT € in millions 2.7% € in millions -2.6% € in millions 185.7% 1,127.9 30.5 1,158.4 186.4 -4.8 1200 200 181.6 40 30.9 67.0 30 1000 150 20 800 12 Months 10 -36.1 600 100 0 -10 400 50 -20 200 -30 0
Slide 14: 2014 Turnover, EBITDA and Total Assets by Region
2014 Turnover, EBITDA and Total Assets by Region FY Turnover (€m) FY EBITDA (€m) Total Assets (€’000m) 25% 284.9 20% 37.1 21% 583.4 GREECE 14% GREECE 159% GREECE 19% 22% 249.3 8% 14.3 515.3 40% 468.9 26% 46.5 31% 880.9 USA USA 45% USA 36% 411.0 14% 17% 32.1 30% 797.3 18% 207.8 37% 67.1 18% 492.4 SEE
Slide 15: EBITDA 12Month-Rolling Quarterly Analysis by Region 2006-2014
EBITDA 12Month-Rolling Quarterly Analysis by Region 2006-2014 GREECE USA 250 240 213 206 203 194 184 200 191 185 190 183177 164 169 154 150 130 150 135 140 129128130123 106 107 101 100 87 90 70 69 51 61 55 43 39 404147 50 35 44 36 32 31 37 40 39 3626 3233 25 17 13 11 14 21 21 10 1225 4 4 4 5 3 2 6 8
Slide 16: In Greece, Higher Sales Volumes and Cost Efficiencies Boost Operating Profitability
In Greece, Higher Sales Volumes and Cost Efficiencies Boost Operating Profitability Public works drive double-digit increase in domestic sales across all products. Momentum in export sales continues, fuelled by increased clinker exports. Cement domestic prices stable in 2014, slightly lower than las
Slide 17: In the US Higher Sales Volumes and Favorable Pricing Drive Performance
In the US Higher Sales Volumes and Favorable Pricing (Especially in Florida) Drive Performance €14m higher operating profitability (EBITDA) and €15m fx gains (mainly in the 2nd half). Volumes grew in all products and geographies. Strong market demand. US growth was driven by double-digit growth in F
Slide 18: In SEE, Price Increases and Contained Costs Counter-Balance the Drop in Albanian Sales
In SEE, Price Increases and Contained Costs Counter-Balance the Drop in Albanian Sales In SEE, the drop in sales volumes was balanced by better prices and cost savings, thus leaving Turnover stable with a small improvement in EBITDA margin. The Region contributes 18% of Group Turnover and 37% of Gro
Slide 19: Gas Shortages in Egypt Cut Production, Limit Cement Sales and Reduce Profitability
Gas Shortages in Egypt Cut Production, Limit Cement Sales and Reduce Profitability Titan lost €55m in Turnover and €46m in EBITDA compared to 2013. Titan Egypt Cement sales seriously curtailed (down ≈30%) due to low production caused by severe gas shortages. Market demand up 2.4%. Titan Egypt purcha
Slide 20: Outlook
03 Outlook 05 March 2015 2014 Financial Results 20
Slide 21: Outlook 2015
Outlook 2015 USA • Recovery momentum set to continue. • Focus on capturing opportunities and on expanding margins. Eastern Med • Demand likely to remain high, despite uncertainties. • Focus on overcoming fuel constraints in Egypt. Greece • Demand underpinned by funded public works. • Focus on export