Titan S.a. · EURONEXT:TITC

Titan — TITAN Cement — Q1 2019 Earnings Presentation

20 slides from Titan's earnings presentation, 2019

  1. Slide 1: Investors' and Analysts' Presentation First Quarter 2019

    Investors’ and Analysts’ Presentation First Quarter 2019

  2. Slide 2: Q1 2019 Highlights

    Q1 2019 Highlights  Group Turnover in Q1 2019 increased to €363m (+12.5% vs Q1 2018) and EBITDA reached €44m (+1.9% vs Q1 2018) despite weak results (-€5m) in EMED.  Net Profit turned negative to -€6m in Q1 2019, due to higher depreciation (€3.2m from IFRS 16) and worse FX result.  In the US, und

  3. Slide 3: Strong US and SEE Performance Offset by Weak Market Conditions in Egypt and Turkey

    Strong US and SEE Performance Offset by Weak Market Conditions in Egypt and Turkey. Group Turnover Group EBITDA Group NPAT € in m illions 12.5% € in m illions 1.9% € in m illions 400 40.2 362.7 60 40 322.5 43.5 0.8 44.3 300 45 1st Quarter 20 200 30 0.9 -7.1 -6.2 0 100 15 0 0 -20 Turnover Variance Tu

  4. Slide 4: Increased Sales Volume in USA, SEE and Greece. Sharp Drop in Egypt and Turkey

    Increased Sales Volume in USA, SEE and Greece. Sharp Drop in Egypt and Turkey. 1st Quarter Sales Volume 2018A 2019A -10%(3) 4.1 +7%(3) 3.7 +0%(3) 4.1 4.4 1.26 1.26 (1), (2) (2) (2) Cement Aggregates Ready-mix (tn m) (tn m) (m3 m) * Intragroup product sales for processing are included in sales volume

  5. Slide 5: Higher Depreciation Leads to Quarterly Net Loss

    Higher Depreciation Leads to Quarterly Net Loss In Million Euros, unless otherwise stated 2019 2018 Variance Net Sales 362.7 322.5 12.5% Cost of Goods Sold -280.9 -244.7 14.8% Gross Margin (before depreciation) 81.8 77.7 5.3% SG&A -38.3 -35.0 9.4% Other Income / Expense 0.8 0.7 13.0% EBITDA 44.3 43.

  6. Slide 6: Group 12Month-Rolling EBITDA

    Group 12Month-Rolling EBITDA TITAN Group (€ in millions) 400 330 330 315 295 302 300 279 273 254 260260 243 231 213 216 196 196 193 198 200 176 182 100 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q1 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 6 Investors' and Analysts' Presentat

  7. Slide 7: €117m Higher Net Debt (vs Q4 2018) Due to Seasonal WC Needs and IFRS 16

    €117m Higher Net Debt (vs Q4 2018) Due to Increased Seasonal WC Needs and €59m IFRS 16 Impact Sources and Uses of Cash Q1 Operating Free Cash Flow 100 (€ in millions) -€28m 50 44 3 (23) (52) (117) 0 1 (20) (11) -50 (59) -100 -150 EBITDA Non-Cash CapEx Operating Acquisitions Interest, FX Impact IFRS

  8. Slide 8: Titan Group Balance Sheet

    Titan Group Balance Sheet Variance In Million Euros, unless otherwise stated 31 Mar' 19 31 Mar' 18 31 Dec' 18 31 Mar '19 vs 31 Mar '18 Property, plant & equipment and inv. Property 1,720.2 1,450.6 1,660.1 269.6 Intangible assets and goodwill 412.1 338.9 405.2 73.2 Investments/Other non-current asset

  9. Slide 9: Seasonal Q1 Increase in Net Debt Levels Affected by Adoption of IFRS 16

    Seasonal Q1 Increase in Net Debt Levels Affected by the Adoption of IFRS 16 Group Net and Gross Debt Evolution (€ in millions) Net debt Gross Debt 1,200 1112 1,100 986988 1,000 930947 874 889 900 831 787 751784772 800 739739 732 754 758 738 707 713 716 723 674 660 650 661 700 632 630 621605 602 596

  10. Slide 10: New Voluntary Share Exchange Tender Offer by Titan Cement International

    New Voluntary Share Exchange Tender Offer made by Titan Cement International (“TCI”) to all shareholders of TITAN Summary Significant milestone in the dynamic growth path of TITAN Group, fully reflecting its international outlook Principal Objectives The Offer & Conditions  To enhance the internati

  11. Slide 11: Performance by Region

    Performance by Region First Quarter 2019

  12. Slide 12: US Solid Growth in Q1 2019, Compared to Soft Q1 2018

    US Solid Growth in Q1 2019, Compared to Soft Q1 2018. Positive Market Environment on the East Coast. € in m illions USA Turnover 17.5% USA EBITDA € in millions 41.8% 240 33.4 223.9 45 12.1 41.2 190.6 1st Quarter 160 29.1 30 80 15 0 Turnover Variance Turnover 0 2018 2019 EBITDA Variance EBITDA 2018 2

  13. Slide 13: In Greece Domestic Cement and Ready-Mix Sales Improved

    In Greece Domestic Cement and Ready-Mix Sales Improved Greece Turnover Greece & Corporate EBITDA € in m illions 6.0% € in m illions 240 55 40 1st Quarter 160 25 80 3.2 56.1 52.9 10 2.1 -2.9 -0.8 0 -5 Turnover Variance Turnover EBITDA Variance EBITDA 2018 2019 2018 2019 4.0% EBITDA Margin -1.4%  Gre

  14. Slide 14: Strong SEE Growth in Q1 2019 Following Good Market Conditions and Mild Weather

    Strong SEE Growth in Q1 2019 Following Good Market Conditions and Mild Weather SEE Turnover SEE EBITDA € in m illions 41.4% € in m illions 240 132.8% 45 1st Quarter 160 30 80 15 14.2 48.4 5.2 9.1 34.2 3.9 0 0 Turnover Variance Turnover EBITDA Variance EBITDA 2018 2019 2018 2019 11.5% EBITDA Margin 1

  15. Slide 15: EMED Markets Under Pressure as Egypt and Turkey Face Challenges

    EMED Markets Under Pressure as Egypt and Turkey Face Challenges EMED Turnover EMED EBITDA € in m illions -23.5% € in m illions 240 50 1st Quarter 35 160 20 -13.6 80 8.4 44.8 -10.6 5 -5.2 34.2 0 -10 Turnover Variance Turnover EBITDA Variance EBITDA 2018 2019 2018 2019 18.8% EBITDA Margin -15.3%  EME

  16. Slide 16: Q1 2019 – Joint Venture Performance

    Q1 2019 – Joint Venture Performance  In Brazil, cement market grew by 1.2% in the Northeast (Apodi’s market).  Reversal of trend of 4 years decline.  Positive price environment supported Turnover growth.  Rising costs, especially distribution expenses impacted profitability. 16 Investors' and An

  17. Slide 17: Outlook

    Outlook 17 Investors' and Analysts' Presentation First Quarter 2019

  18. Slide 18: Outlook 2019

    Outlook 2019 • Bottom-up analysis strongly supports continued growth prospects. USA • Focus on delivering on both growth and profitability. • Slowly improving outlook for domestic demand. Greece • Focus on cost competitiveness and optimization of exports profitability. • Overall, positive outlook. S

  19. Slide 19: Disclaimer

    Disclaimer This presentation has been prepared by Titan for informational purposes only. Although the information contained in this presentation has been obtained from sources which Titan believes to be reliable, it has not been independently verified and no representation or warranty, express or im

  20. Slide 20: Thank you

    Thank you 20 Investors' and Analysts' Presentation First Quarter 2019

TITAN Cement — Q1 2019 Earnings Presentation on 6ix