Slide 1: Financial Results – Full Year 2008
Titan Group Financial Results – Full Year 2008 Analyst Conference Call Athens – 24th February 2009
Slide 2: Forward-looking statements
•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, uncertainties and
Slide 3: Agenda
Agenda • Performance Highlights • Market Overviews • Group Financial Results • Outlook
Slide 4: Performance Highlights Full 2008
Performance Highlights Full 2008 • Q4 turnover +11.8%; +8% excl. FX; -2% excl. FX and acquisitions • Q4 EBITDA grew by +8.0%; +6% excl. FX; -10% excl. FX and acquisitions • Full year turnover + 5.4% to €1.578m; +8% excl. FX • Full year like-for like turnover (excl. FX & acquisitions) flat; organic g
Slide 5: Agenda
Agenda • Performance Highlights • Market Overviews • Group Financial Results • Outlook
Slide 6: Turnover & EBITDA by Region Q4 2008
Turnover & EBITDA by Region Q4 2008 Operating profitability in Q4 more than doubled in East Med., grew in SE Europe and declined in the US and Greece TURNOVER (€m) EBITDA (€m) 37% 144,9 38% 34,7 -12% GREECE 46% 162,3 -11% GREECE 47% 39,4 30% 117,4 9% 7,7 -51% USA € 36% 125,6 -7% USA € 19% 15,7 153,4
Slide 7: Market Overview, Greece & W. Europe
Market Overview, Greece & W. Europe Financial Results Full Year 2008 ● Moderate decline of domestic cement volumes continues ● Aggregates & ready mix volumes supported by minor acquisitions ● Excess housing inventory weighs on demand ● Record increases in energy costs partially offset by better pric
Slide 8: PCA Cement & Construction Market, USA 2008
PCA Cement & Construction Market, USA 2008 Cement consumption continues to deteriorate in the US and particularly in Florida FLORIDA VIRGINIA N. CAROLINA USA (1) Cement Market Volumes Cement Consumption (PCA) YTD December '08 vs '07 -26% -15% -21% -15% Cement Consumption (PCA) YTD December '07 vs 06
Slide 9: Market Overview, USA
Market Overview, USA Financial Results Full Year 2008 ● Cement volumes decline continued ● Deepening of the crisis of housing market affects volumes across all products ● Uncertain time of recovery – no signs of stabilization in key markets ● Moderate price erosion in $ terms ● Positive contribution
Slide 10: Lake Belt - Update
Lake Belt - Update ● In 2007, the US District Court for the Southern District of Florida invalidated permits for mining Lake Belt ● In May 2008, the Court of Appeals in Atlanta reversed that order and remanded the case back to the District Court for reconsideration ● In January 2009, the same Distri
Slide 11: Market Overview, SE Europe
Market Overview, SE Europe Financial Results Full Year 2008 • Demand grew in major markets • Continued expansion in Albania in preparation for completing new cement plant in early 2010 • Prices increases followed energy costs surge • Draft CO2 emission rights allocation in Bulgaria likely to have no
Slide 12: Market Overview, Eastern Med.
Market Overview, Eastern Med. Financial Results Full Year 2008 • Scope expansion boosts turnover and profitability • Volume growth maintained in Egypt • In Egypt prices covered increased costs of energy and raw material • Exports slowdown from Turkey challenges surplus absorption and applies downwar
Slide 13: Agenda
Agenda • Performance Highlights • Market Overviews • Group Financial Results • Outlook
Slide 14: Key Sales Volume
Key Sales Volume Full Year 2008 Cement volume growth is driven by SE Europe (organic) & East Med (organic + acquisitions). Volumes decline in other segments reflects downturn in the USA & Greece 4th Quarter Full Year 2008 -7% 2007 -5% +10% (3) +8% (2) 19,9 18,6 4,8 4,5 17,2 4,2 15,6 3,9 -17% -8% 1,5
Slide 15: Group Turnover and EBITDA – Full Year & Q4 2008
Group Turnover and EBITDA – Full Year & Q4 2008 Group Turnover and EBITDA benefited by organic growth in S.E. Europe/Egypt and by acquisitions in East Med., despite the negative organic growth in the US and Greece 1800 1700 550 1600 1496,9 (1,9) 118,4 1578,4 (35) 500 1500 428 (4,4) 450 (74,6) Full Y
Slide 16: Financial Highlights Full Year & Q4 2008
Financial Highlights Full Year & Q4 2008 Net profit after tax for full year has been impacted negatively by the increased D&A and financing costs, offset by the zeroed income tax due to one-off items (reversal of provision in Greece, tax credits in Bulgaria, lower tax expense from the US and lower d
Slide 17: Group Net Profit after Tax
Group Net Profit after Tax Full Year 2008 Group benefits from significantly lower taxes reflecting lower earnings in US and one-off tax related items with positive impact 300 56,2 (74,6) €m 280 260 239,7 (8,5) 240 220 (16,1) 2,7 16,8 (1,5) 208,2 200 (6,5) 180 160 140 NPAT Depn. Taxes Organic Interes
Slide 18: Foreign Currency Rates
Foreign Currency Rates Full Year 2008 Balance Sheet and P&L impacted by USD vs Euro variance Variance 31/12/08 vs BALANCE SHEET 31/12/2008 31/12/2007 31/12/07 €1 = USD 1,39 1,47 5% €1 = EGP 7,68 8,12 6% 1USD=EGP 5,51 5,52 0% €1 = RSD 88,60 79,24 -12% 1USD=JPY 90,64 112,04 19% €1 = TRY 2,15 1,72 -25%
Slide 19: Consolidated Balance Sheet
Consolidated Balance Sheet Full Year 2008 CAPEX and Acquisitions were the most significant impacts on the Balance Sheet, funded through increase in Net Debt (€ m) Balance Sheet 2008 2007 08 vs 07 Fixed Assets and Investments 2496 1641 855 Net Current Assets Inventories 285 226 59 Receivables and Oth
Slide 20: Net Debt as of 31.12.08
Net Debt as of 31.12.08 Increase of Net Debt by € 545m since the beginning of 2008 mainly due to financing acquisitions and capex 1200 1133 €m 1114 1100 1058 1000 900 800 Consolidated Net Debt 700 582 569 565 600 562 524 529 498 498 494 500 455 414 411 417 394 392 400 363 327 300 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 21: Sources and Uses of Cash
Sources and Uses of Cash Full Year 2008 Acquisitions and Capex and represent the main use of cash in 2008 In Q4, working capital needs decreased by €57m 500 380,0 (587) 450 €m 400 350 300 250 Acquisitions 200 378m 150 100 50 0 -50 Capex -100 209m -150 -200 -250 -300 -350 (86) -400 31 -450 -500 -550
Slide 22: Agenda
Agenda • Performance Highlights • Market Overviews • Group Financial Results • Outlook
Slide 23: 2009 Outlook
2009 Outlook • The unprecedented global financial crisis spills over into the real economy • The world has changed and we are adapting to the new realities • Focus on generating positive free cash flow and repaying debt • Drive production costs and SG&A expenses down • Limit new capex; complete inve