Titan S.a. · EURONEXT:TITC
Titan — TITAN Cement Group — 9M 2020 Earnings Presentation
22 slides from Titan's earnings presentation, Nov 12, 2020
Slide 1: Financial Results – 9 Months 2020
Financial Results – 9 Months 2020 Investors’ and Analysts’ Presentation Nicosia, 12 November 2020
Slide 2: 9M 2020 Highlights
9M 2020 Highlights • Group Revenue stable at €1,202m. Healthy growth rates in all markets except Egypt. • EBITDA rose to €229m (+10.1% vs last year) benefiting from lower energy prices, cost control and selective price increases. 9M 2020 Net Profit reached €58m (up by €13m). • Drop in Net Debt by €7
Slide 3: Improved Revenue and Profitability in Q3 (But Hit by Translation Impact)
Improved Revenue and Profitability in Q3 (But Hit by Translation Impact). Group Revenue Group EBITDA Group NPAT € in millions -0.5% € in millions 10.1% € in millions 28.1% 1,208.5 -6.1 1,202.4 21.0 229.4 240 80 1200 208.4 9 Months 180 60 12.8 58.0 900 45.2 600 120 40 300 60 20 0 0 0 Revenue Variance
Slide 4: Profitability Growth Due to Lower Energy Costs, Pricing Resilience and Higher Domestic Market Sales
Profitability Growth Due to Lower Energy Costs, Pricing Resilience and Higher Domestic Market Sales. In Million Euros, unless otherwise stated 9M 2020 9M 2019 Variance Revenue 1,202.4 1,208.5 -0.5% Cost of Goods Sold -860.5 -888.0 -3.1% Gross Margin (before depreciation) 341.9 320.5 6.7% SG&A -114.8
Slide 5: Group Balance Sheet 30 September 2020
Group Balance Sheet 30 September 2020. Variance In Million Euros, unless otherwise stated 30 Sep' 20 31 Dec' 19 Sep 20 vs Dec 19 Property, plant & equipment and inv. Property 1,593.2 1,710.7 -117.5 Intangible assets and goodwill 402.2 425.3 -23.1 Investments/Other non-current assets 128.3 156.2 -27.
Slide 6: Cement Sales Volumes Recovery in Q3, Except Egypt
Cement Sales Volumes Recovery in Q3, Except Egypt. Growth in Our Vertically Integrated Activities. 9 Months Sales Volume 3rd Quarter Sales Volume -1%(3) 12.6 12.5 2019A 2019A 0%(3) 2020A 2020A +6%(3) 4.5 4.5 +4%(3) 13.3 14.1 +12%(3) +8%(3) 4.4 4.9 3.92 4.06 1.31 1.42 (1), (2) Cement Aggregates (2) R
Slide 7: Robust Cash Generation and Decrease in Net Debt
Robust Cash Generation and Decrease in Net Debt Following Improved Profitability and Lower CAPEX. Sources and Uses of Cash 9M Operating Free Cash Flow (€ in millions) 250 2 29 6 (6 0) €128m 200 (4 7) 150 (6 7) 100 13 74 50 0 EBITDA Non-Cash CapEx Operating Acquisitions Interest, Tax, FX Impact IFRS
Slide 8: Improved Cash Flow and Higher EBITDA Led to Drop of Leverage Ratio to 2.6x
Improved Cash Flow and Higher EBITDA Led to Drop of Leverage Ratio to 2.6x Group Net and Gross Debt Evolution (€ in millions) Net debt Gross Debt 1,200 1112 1,100 986988 1,000 930947 874 889 891 878 900 831 839 840 787 784 758 738751 772 808 800 739739707732 754 713 716 723 766 674 660 661 700 60263
Slide 9: Extended Debt Maturity Profile Following July Bond Issue
Extended Debt Maturity Profile Following July Bond Issue. Ample Liquidity and Unutilized Facilities. Maturity Profile as at 30 September(€m) Facilities by Type / Utilization (€m) Bank Debt Bond 1,536 400 356 1.600 Leases 350 3 1.400 Total Committed Lines: 300 1,210 Utilization 910 552 1.200 247 36%
Slide 10: Acceleration of our decarbonization efforts and submission to CDP
Acceleration of our decarbonization efforts and submission to CDP Reducing our carbon footprint Enhancing our CO2 disclosures Direct net specific CO2 emissions reduction targets* 1st submission to Carbon Disclosure Project (CDP) 2019 2021-2023 2030 -13% ✓ Climate Change -20% -30% ✓ Water Security *c
Slide 11: Performance by Region
=< Performance by Region
Slide 12: Solid Market Fundamentals and Prompt Management Responsiveness Drive USA Profitability
Solid Market Fundamentals and Prompt Management Responsiveness Drive USA Profitability. USA Revenue USA EBITDA € in millions -1.0% € in millions 3.2% 750 721.6 -7.0 714.6 150 137.0 4.4 141.4 9 Months 500 100 250 50 0 0 Revenue Variance Revenue EBITDA Variance EBITDA 2019 2020 2019 2020 19.0% EBITDA
Slide 13: Greece Increased Domestic Demand. Benefit from Low Energy Costs
Greece Increased Domestic Demand. Benefit from Low Energy Costs. Greece Revenue Greece & Corporate EBITDA € in millions -3.9% € in millions 5.9% 750 150 9 Months 500 100 250 185.2 -7.3 177.9 50 15.5 0.9 16.4 0 0 Revenue Variance Revenue EBITDA Variance EBITDA 2019 2020 2019 2020 8.4% EBITDA Margin 9
Slide 14: SEE Market Growth Strengthened in Q3
SEE Market Growth Strengthened in Q3, Recapturing Volumes Lost in Q2. Significant Profitability Improvement. SEE Revenue SEE EBITDA € in millions 0.9% € in millions 23.4% 750 150 9 Months 500 100 13.7 72.7 59.0 250 194.7 1.9 196.6 50 0 0 Revenue Variance Revenue EBITDA Variance EBITDA 2019 2020 2019
Slide 15: In EMED, Egypt Volume and Pricing Erosion Continued in Q3
In EMED, Egypt Volume and Pricing Erosion Continued in Q3. Strong Growth in Turkish Domestic and Export Volumes. EMED Revenue EMED EBITDA € in millions 5.8% € in millions 750 140 9 Months 500 90 250 40 107.0 6.2 113.2 -3.0 1.9 -1.1 0 -10 Revenue Variance Revenue EBITDA Variance EBITDA 2019 2020 2019
Slide 16: 9 Months 2020 – Apodi Brazil Performance
9 Months 2020 – Apodi Brazil Performance • 9M 2020 cement demand in Brazil reached 44.5 m tons 9.2% higher y-o-y, with the North and Northeast regions at 13.7%. • Q3 recorded a significant increase in construction activity and demand for cement. • Selling prices also showed considerable increase dur
Slide 17: Outlook
Outlook
Slide 18: Outlook
Outlook • Encouraging demand drivers in almost all markets, clouded by COVID uncertainty • Remain flexible and adapt to changing conditions: o Prioritize health & safety o Effectively serve markets o Maintain cost discipline and focus on cash flow • Keep long term projects on track: D3 o Deliver per
Slide 19: Appendix
Appendix
Slide 20: Q3 Sales and Profitability by Region
Q3 Sales and Profitability by Region Revenue USA GREECE & WE SEE EMED € in millions -4.3% € in millions 3.7% € in millions 8.9% € in millions -14.0% 249.8 -10.7 239.1 240 240 240 240 $ 277.8 $ 279.4 180 180 180 180 120 120 120 120 74.0 6.6 80.6 61.9 2.3 64.2 60 60 60 60 37.4 -5.3 32.1 0 0 0 0 Revenu
Slide 21: 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
Slide 22: Thank you
Thank you 22 Investors’ and Analysts’ Presentation 9M 2020 Financial Results