Titan S.a. · EURONEXT:TITC
Titan — Q1 2015 Earnings Presentation
18 slides from Titan's earnings presentation, May 7, 2015
Slide 1: TITAN Group 2015 Q1 Financial Results
Athens, 7 May, 2015 TITAN GROUP 2015 Q1 Financial Results Investors‘ and Analysts‘ Conference Call
Slide 2: Q1 2015 Highlights
Q1 2015 Highlights • Increased Turnover and NPAT while EBITDA lower than Q1 2014. • Bottom line profitable with Earnings before Tax (EBT) at €7.6m (vs -€9.7m loss last year) aided by €27m in FX gains. • Higher profitability in Greece. Local sales are stable, production costs decrease and export reve
Slide 3: Positive Growth in Group Revenue and NPAT (Boosted by FX Gains). Lower EBITDA
Positive Growth in Group Revenue and NPAT (Boosted by FX Gains). Lower EBITDA In Million Euros, unless otherwise stated Q1 2015 Q1 2014 Variance Net Sales 283.8 251.8 12.7% Cost of Goods Sold -229.7 -199.5 15.1% Gross Margin (before depreciation) 54.1 52.3 3.5% SG&A -30.0 -26.3 13.9% Other Income /
Slide 4: Lower Operating Free Cash Flow (€39m Below Q1 2014) Due to Higher CAPEX and WC
Lower Operating Free Cash Flow (€39m Below Q1 2014) Due to Higher CAPEX and WC Sources and Uses of Cash Operating Free Cash Flow 50 (€ in millions) 23 2 -35 €-54m -119 0 -44 -50 -10 -25 -30 -100 -150 EBITDA Q1 Non-Cash CapEx Operating Acquisitions Interest, Tax, FX Impact Change in 2015 Items Workin
Slide 5: Group Balance Sheet Asset Growth Due to High USD
Group Balance Sheet Asset Growth Due to High USD In Million Euros, unless otherwise stated 31 Mar' 15 31 Dec' 14 Variance Property, plant & equipment 1,780.2 1,673.0 107.2 Intangible assets and goodwill 477.9 446.1 31.8 Other non-current assets 118.7 115.9 2.8 Non-current assets 2,376.8 2,235.0 141.
Slide 6: Net Debt Increases Following New Capital Investments, FX Movements and Seasonality Impact
Net Debt Increases Following New Capital Investments (€45m), FX Movements (€30m) and Seasonality Impact Group Net Debt (€ in millions) 1,200 1,112 1,100 988 986 1,000 947 930 874 900 831 800 739739 732 754 707 674 660 700 602 632 596 562 600 552 563 541 529 540 509 490 500 6.4% 400 Q1 Q2 Q3 Q4 Q1 Q2
Slide 7: Debt & Liquidity Profile – 31 Mar 2015
DEBT & LIQUIDITY PROFILE – 31 MAR 2015 Facilities / Utilization by Lender Maturity Profile (€m)2 12% 23% 350 24% 300 33% 219 250 Bonds Total Total 200 Facilities Utilization 45 Bank Debt 150 294 55 €1,207m €798m 197 100 43% 7 157 65% 50 20 0 38 28 21 35 1 Int'nal Banks Bonds Greek Banks <Dec'15 <Dec
Slide 8: Small Drop in Cement Sales Due to Lower SEE Performance, While Sales in Egypt and US Grow
Small Drop in Cement Sales Due to Lower SEE Performance, While Sales in Egypt and US Grow 1st Quarter Sales Volume -4%(3) 4.0 3 .6 3 .5 2014A 2015A 3.0 2.0 +11%(3) 3 .2 3 .2 1.0 0 .9 0 0 .8 1 0.0 (1), (2) (2) (2) Cement Aggregates Ready-mix (tn m) (tn m) (m3 m) (1) Cement sales include clinker and c
Slide 9: Market Overviews
02 Market Overviews 07 May 2015 2015 Q1 Financial Results 9
Slide 10: Q1 2015 Turnover, EBITDA and Total Assets by Region
Q1 2015 Turnover, EBITDA and Total Assets by Region FY Turnover (€m) FY EBITDA (€m) Total Assets (€’000m) 23% 65.3 40% 9.4 20% 598.8 GREECE -2% GREECE 141% GREECE 26% 66.6 13% 3.9 21% 593.1 46% 130.2 37% 13% 25% 5.8 33% 990.8 USA USA 544% USA 38% 94.7 3% 0.9 31% 880.8 10% 28.1 18% 4.2 17% 498.7 SEE
Slide 11: EBITDA 12Month-Rolling Quarterly Analysis by Region 2006-2015
EBITDA 12Month-Rolling Quarterly Analysis by Region 2006-2015 GREECE USA 250 240 213 206 203 191 194 184 200 185 190 183177 164 169 154 150 150 135 140 130 129128130123 106 107 101 100 87 90 70 69 51 61 55 51 44 43 39 404147 50 35 36 32 31 37 42 40 39 36 26 3233 25 17 21 21 25 13 11 14 10 4 4 4 5 3
Slide 12: Greece Sales Stable Amidst a Depressed Local Market Environment
Greece Sales Stable Amidst a Depressed Local Market Environment Greece turnover is stable while profitability recovers with €5.5m EBITDA improvement. Increased profitability is driven by strong exports revenue and cost savings. Favorable $/€ rate boosts effective exports prices offsetting slig
Slide 13: US Operating Margins Strengthened by Increases in Sales Volumes and Prices
US Operating Margins Strengthened by Increases in Sales Volumes and Prices. High US sales turnover resulting from rising sales volumes, higher prices and increase in USD fx rate. Higher operating profitability (EBITDA) by €5m Solid growth momentum continues with strong demand. Volumes higher i
Slide 14: In SEE, Profitability Declines as Poor Weather Leads to Seasonal Drop in Local Sales
In SEE, Profitability Declines as Poor Weather Leads to Seasonal Drop in Local Sales In SEE, Cement sales volumes seasonally declined across all markets (2014 winter was unusually mild). Cement sales prices slightly higher than last year. In February 2015, Titan purchased from EBRD its 20% sta
Slide 15: In Egypt Q1 2015 Marks the Turnaround in Sales and Profitability as 1st Kiln Converts to Coal
In Egypt Q1 2015 Marks the Turnaround in Sales and Profitability Performance as 1st Kiln Converts to Coal Egypt Q1 2015 profitability improved by €6m from previous quarter but lower than last year. Q1 2015 production costs absorbed high imported clinker costs for cement production. Beni-Suef f
Slide 16: Outlook
03 Outlook 07 May 2015 2015 Q1 Financial Results 16
Slide 17: 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
Slide 18: 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