Titan S.a. · EURONEXT:TITC

Titan — H1 2018 Earnings Presentation

21 slides from Titan's earnings presentation, Jul 26, 2018

  1. Slide 1: Financial Results – 1st Half 2018

    Financial Results – 1st Half 2018 Investors’ and Analysts’ Presentation 1st Half 2018 Athens, 26 July 2018

  2. Slide 2: 2018 H1 Highlights

    2018 H1 Highlights  Turnover in H1 2018 at €713m (down €61m vs H1 2017 of which €57m from FX, mainly due to the weakening of the $ vs €) and EBITDA at €122m (down €20m of which €10m from FX).  Net Profit in H1 2018 almost doubled at €25m compared to €14m in 2017.  In the US, Turnover and EBITDA i

  3. Slide 3: Bad Weather and Strong € Eroded Financial Performance

    Bad Weather and Strong € Eroded Financial Performance. Net Profit Rose Due to FX Gains and Lower Tax Charge. Group Turnover Group EBITDA Group NPAT € in m illions -7.9% € in m illions € in m illions 78.3% -14.0% 773.8 -61.3 160 32 800 142.1 712.5 -19.9 122.2 10.9 24.8 600 120 24 400 80 16 13.9 1st H

  4. Slide 4: Cement Volume Decline Affected by Lower Sales in Greece, Albania, Egypt

    Cement Volume Decline Affected by Lower Sales in Greece, Albania, Egypt H1 Sales Volume -5%(3) 9.4 8.9 2017A 2018A +6%(3) -5%(3) 8.0 8.5 2.78 2.63 Cement (1), (2) Aggregates (2) Ready-mix(2) (tn m) (tn m) (m3 m) * Intragroup product sales for processing are included in sales volumes (1) Cement sales

  5. Slide 5: Bottom Line Benefited from FX Gains, Improved JV Results and Lower Effective Tax Rate

    Bottom Line Benefited from FX Gains, Improved JV Results and Lower Effective Tax Rate In Million Euros, unless otherwise stated H1 2018 H1 2017 Variance Q2 2018 Q2 2017 Variance Net Sales 712.5 773.8 -7.9% 390.0 412.0 -5.3% Cost of Goods Sold -520.2 -554.7 -6.2% -275.4 -279.4 -1.4% Gross Margin (bef

  6. Slide 6: Stronger Generation of OFCF Due to Lower CAPEX and Lower Seasonal Working Capital Needs

    Stronger Generation of OFCF Due to Lower CAPEX and Lower Seasonal Working Capital Needs Sources and Uses of Cash H1 Operating Free Cash Flow (€ in millions) 130 122 0 (55) 110 €29m 90 (38) 70 50 (13) 30 (31) 10 (28) -10 (13) -30 EBITDA H1 Non-Cash CapEx Operating Acquisitions Interest, FX Impact Inc

  7. Slide 7: Stable Net Debt Levels

    Stable Net Debt Levels Group Net Debt Evolution (€ in millions) Net debt 1,200 1,100 1112 1,000 900 986988 930947 800 874 831 700 787758 739739 732 754 723 751 707 713 716 600 674 660 650 661 632 630 621605 602 596 578 500 562 552563 541 541 509 490529 400 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q

  8. Slide 8: Titan Group Balance Sheet

    Titan Group Balance Sheet Variance In Million Euros, unless otherwise stated 30 Jun' 18 30 Jun' 17 31 Dec' 17 30 Jun '18 vs 30 Jun '17 Property, plant & equipment 1,482.4 1,517.3 1,466.0 -34.9 Intangible assets and goodwill 358.0 351.5 346.0 6.5 Investments/Other non-current assets 185.4 206.1 189.4

  9. Slide 9: Market Overviews

    Market Overviews 9 Investors' and Analysts' Presentation 1st Half 2018

  10. Slide 10: Weakening of the US$ vs € and Low Market Demand in Greece Affected H1 2018 Performance

    Weakening of the US$ vs € and Low Market Demand in Greece Affected H1 2018 Performance Turnover EBITDA Total Assets €142m €81m €13m €404m -7%* 0%* +4%* +6%* 12% €414m 10% €80m 5% €1,033m -9%* -13%* +5%* 1st Half 2018 €103m €24m 15% -4%* 14% +1%* 20% 38% €713m €122m €2,715m -8%* 58% -14%* €506m 19% +

  11. Slide 11: US Underlying Market Conditions and Pricing Trends Remain Robust

    US Underlying Market Conditions and Pricing Trends Remain Robust USA Turnover USA EBITDA € in m illions -9.2% € in millions -13.2% 456.0 -41.7 92.4 -12.2 414.3 80.2 400 80 300 60 1st Half 200 40 100 20 0 0 Turnover Variance Turnover EBITDA Variance EBITDA 2017 2018 2017 2018 20.3% EBITDA Margin 19.4

  12. Slide 12: In Greece Public and Private Construction Remained Weak. Export Volumes at High Levels.

    In Greece Public and Private Construction Remained Weak. Export Volumes at High Levels. Greece Turnover Greece EBITDA € in m illions -11.2% € in m illions -61.8% 400 80 60 1st Half 300 200 40 129.1 -14.5 114.6 100 20 13.7 -8.5 5.2 0 0 Turnover Variance Turnover EBITDA Variance EBITDA 2017 2018 2017

  13. Slide 13: SEE H1 2018 Resilient Financial Performance and Recovery from a Slow Start

    SEE H1 2018 Resilient Financial Performance and Recovery from a Slow Start SEE Turnover SEE EBITDA € in m illions -4.5% € in m illions 1.5% 400 80 1st Half 300 60 200 40 103.1 23.6 0.3 23.9 108.0 -4.9 100 20 0 0 Turnover Variance Turnover EBITDA Variance EBITDA 2017 2018 2017 2018 21.9% EBITDA Margi

  14. Slide 14: Egypt Better H1 Results Due to Higher Prices

    Egypt Better H1 Results Due to Higher Prices EMED Turnover EMED EBITDA € in m illions -0.1% € in m illions 3.5% 400 80 300 60 1st Half 200 40 80.7 -0.1 80.6 12.8 100 20 12.4 0.4 0 0 Turnover Variance Turnover EBITDA Variance EBITDA 2017 2018 2017 2018 15.3% EBITDA Margin 15.9% €-10.1m translation im

  15. Slide 15: H1 2018 – Joint Ventures’ Performance

    H1 2018 – Joint Ventures’ Performance  Cement consumption in Brazil stalled in May by nation-wide truckers’ strike. June rebound confirms market being in early stages of recovery.  Apodi improved profitability with price growth and positive volume trends.  In Turkey macroeconomic deterioration -

  16. Slide 16: Outlook

    Outlook 16 Investors' and Analysts' Presentation 1st Half 2018

  17. Slide 17: Outlook 2018

    Outlook 2018 • Short and medium term prospects for construction continue strong. Tax reform USA providing boost. • Focus on delivering in the market in H2. • Domestic demand at very low levels despite improving macros. Greece • Focus on cost competitiveness and optimization of exports profitability.

  18. Slide 18: Appendix

    Appendix 18 Investors' and Analysts' Presentation 1st Half 2018

  19. Slide 19: Q2 Sales and Profitability by Region

    Q2 Sales and Profitability by Region Turnover € in m illions USA GREECE & WE SEE EMED -4.7% € in millions -13.8% € in m illions -1.7% € in m illions 0.8% 234.8 -11.1 240 240 240 223.7 240 160 160 160 160 80 80 71.6 -9.9 61.7 80 70.1 -1.2 68.9 80 35.5 0.3 35.8 0 0 0 0 Turnover Variance Turnover Turno

  20. Slide 20: 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

  21. Slide 21: Thank you

    Thank you 21 Investors' and Analysts' Presentation 1st Half 2018

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