Titan S.a. · EURONEXT:TITC
Titan — Q1 2009 Earnings Presentation
21 slides from Titan's earnings presentation, May 28, 2009
Slide 1: Titan Group Financial Results – First Quarter 2009
Titan Group Financial Results – First Quarter 2009 Conference Call Athens – 28th May 2009
Slide 2: Agenda
Agenda • Performance Highlights • Market Overviews • Group Financial Results • Outlook & Acquisitions Highlights
Slide 3: Performance Highlights Q1 2009
Performance Highlights Q1 2009 • Turnover decreased by -9.5% to € 308m, -16% excl. FX, -23% excl. FX and acquisitions • EBITDA dropped by -18.8% to €62m, - 24% excl. FX, -36% excl. FX and acquisitions • Net Profit after Tax and Minorities -50% to €21m • Negative volume trends exacerbated by tough wi
Slide 4: Agenda
Agenda • Performance Highlights • Market Overviews • Group Financial Results • Outlook & Acquisitions Highlights
Slide 5: Market Overview, Greece & W. Europe
Market Overview, Greece & W. Europe Financial Results Q1 2009 ● Construction activity affected by worsening economic climate and prolonged winter ● Production adjusted to reflect weak demand ● Prices proving resilient ● Benefit from lower energy prices will gradually materialize within 2009 Turnover
Slide 6: Market Overview, USA
Market Overview, USA Financial Results Q1 2009 PCA Cement Consumption Estimates (1) ● Demand continues to decline across the board ● Impact from economic stimulus package not FLORIDA VIRGINIA N. CAROL. USA felt yet ● Prices broadly stable in $ terms Q1 2009 -36% -26% -33% -27% ● Significant translat
Slide 7: Lake Belt - Update
Lake Belt - Update ● In January 2009, the US District Court for the Southern District of Florida invalidated permits for mining Lake Belt ● Decision affects all competitors in the area; Titan has already appealed ● No impact on Titan’s 2009 results ● Cost effective contingency plans to maintain Penn
Slide 8: Market Overview, SE Europe
Market Overview, SE Europe Financial Results Q1 2009 ● Volumes declined sharply due to a combination of liquidity crunch, a tough winter and imports activity ● Construction of plant in Albania on time and on budget – continuing to build market share ● Prices compare favorably against last year ● Acq
Slide 9: Market Overview, Eastern Med.
Market Overview, Eastern Med. Financial Results Q1 2009 ● Scope expansion fuels turnover and profitability ● In Egypt volumes and prices ahead of last year ● Beni Suef 2nd line on schedule for completion in Q4 2009 ● Domestic demand slowdown in Turkey coincides with new capacity coming on stream, re
Slide 10: Agenda
• Performance Highlights • Market Overviews • Group Financial Results • Outlook & Acquisitions Highlights
Slide 11: Key Sales Volumes Q1 2009
Key Sales Volumes Q1 2009 Decline of cement volumes reflects downturn in the US, Greece and SEE, partially offset by growth in East Med. (organic + acquisitions) Decrease of volumes in other segments driven by weakening demand in the US and Greece 4,56 3,69 3,25 3,40 -25% 1,39 -12% 0,92 08A 09B -33%
Slide 12: Group Turnover and EBITDA Q1 2009
Group Turnover and EBITDA Q1 2009 Turnover and EBITDA decline in the US, Greece and SEE, partially offset by strong performance in East Med and positive FX translation impact due to stronger $ vs. € Turnover €m EBITDA €m 400 3,7 (27.5) 80 76,7 20,6 (78,4) 4.8% 62,3 350 340,2 9,4 60 6,1% 25,5 307,9 -
Slide 13: Financial Highlights Q1 2009
Financial Highlights Q1 2009 Net profit after tax & minorities impacted negatively by the increased D&A and financing costs, partially offset by lower income tax due to profitability drop Var 09 Q1 2009 Q1 2008 vs 08 Turnover 307,9 340,2 -9,5% EBITDA 62,3 76,7 -18,8% EBITDA Margin 20,2 22,6 -2,4pts
Slide 14: Consolidated Sales & EBITDA by Region - Q1 2009
Consolidated Sales & EBITDA by Region - Q1 2009 Good performance in East Med was offset by lower contribution of other regions. Stronger $ parity vs. € eased Sales and EBITDA decline rate in the US EBITDA (€m) SALES (€m) 35% 108,4 -28% 19,6 -49% GREECE GREECE 32% 44% 151,2 50% 38,3 33% 100,9 -17% 14
Slide 15: Group Net Profit after Tax Q1 2009
Group Net Profit after Tax Q1 2009 Net Profit after Taxes halved due to organic EBITDA decline, partially offset by acquisitions 50 0,4 0,6 €m 40 30 1,6 42,7 1,8 20 5,8 (27,2) (0,6) 10 (3,8) 21,3 0 NPAT Depn. Taxes EBITDA Interest FX Diff. Scope Minority Other NPAT Q1 2008 like-for-like Changes Q1 2
Slide 16: Foreign Currency Rates Q1 2009
Foreign Currency Rates Q1 2009 Balance Sheet and P&L impacted by $ vs. € variance Actual Actual Variance 31/3/09 vs BALANCE SHEET 31/3/2009 31/12/2008 31/12/08 €1 = USD 1,33 1,39 4% €1 = EGP 7,50 7,68 2% 1USD=EGP 5,64 5,51 -2% €1 = RSD 94,78 88,60 -7% 1USD=JPY 98,56 90,64 -9% €1 = TRY 2,22 2,15 -3%
Slide 17: Net Debt as of 31.03.09
Net Debt as of 31.03.09 Increase of Net Debt by €40m vs. 31/12/08, due to front loaded CAPEX and stronger $ vs. € 1300 €m 1200 1100 1133 1154 1114 1058 1000 900 800 Consolidated Net Debt 700 600 562 582 569 565 500 529 498 524 498 494 400 455 414 417 392 327 411 394 363 300 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 18: Sources and Uses of Cash Q1 2009
Sources and Uses of Cash Q1 2009 80 CAPEX in two new expansion projects (Albania & Egypt) amounted to €44m 62 (53) 60 40 €m 20 (27) 0 EBITDA CAPEX & Q1 2009 Investments (8) -20 Operating (14) Working Int., Tax, Capital Dividends -40 Net FX (40) Impact Increase in Net Debt 31.03.09 18
Slide 19: Agenda
• Performance Highlights • Market Overviews • Group Financial Results • Outlook
Slide 20: 2009 Outlook
2009 Outlook • Demand for building materials heavily affected by the continuing global financial crisis • Visibility of market trends remains poor • US outlook remains negative; (PCA: –17% in ‘09); stimulus package likely impact end ’09 • Greek demand to decline faster vs. 2008 • Volumes in S. E. Eu
Slide 21: Titan Group Financial Results – First Quarter 2009
Titan Group Financial Results – First Quarter 2009 Athens – 28th May 2009