Titan S.a. · EURONEXT:TITC

Titan — TITAN Cement Group — FY2010 Earnings Presentation

22 slides from Titan's earnings presentation, Mar 17, 2011

  1. Slide 1: Financial Results – 12 Months 2010

    Financial Results – 12 Months 2010 Investors’ and Analysts’ conference call Athens, March 17, 2011

  2. Slide 2: 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

  3. Slide 3: Agenda

    Agenda  Performance Highlights  Market Overviews  Group Financial Results  Outlook 3

  4. Slide 4: Solid Progress Towards Key Priorities

    Solid Progress Towards Key Priorities DELIVERING SOLID FINANCIAL PERFORMANCE IN TROUGHLIKE CONDITIONS • Turnover at €1.35B, reduced by 0.7% • EBITDA at €314.4m, a decrease of 5.5% • Net Profit after taxes and minority interests at €102.2m, down by 17.2% OPTIMIZING BUSINESS PORTFOLIO • Expansion in W

  5. Slide 5: Solid Performance in FY 2010 Despite Continued Trough-like Conditions in Key Markets

    Solid Performance in FY 2010 Despite Continued Trough-like Conditions in Key Markets EBITDA in Q4 adversely impacted by €17.7m increased provisions versus 2009 Key Financials 4th Quarter 2010 Key Financials 12 Months 2010 (€ in millions - unless stated otherwise) (€ in millions - unless stated other

  6. Slide 6: Strengthening of US$ and Egyptian Pound Led to Substantial B/S Impact

    Strengthening of US$ and Egyptian Pound Led to Substantial B/S Impact but Did Not Materially Affect EBITDA FX Impact in Million € 9M Q4 12M P&L EBITDA +2 +1 +3 FX Gains/Losses -6 -2 -8 30th Sept 2010 Δ Q4 31st Dec 2010 Net Equity +45 +9 +54 BS Net Debt +24 +5 +29 Working Capital -6 +13 +7 Actual Act

  7. Slide 7: Agenda

    Agenda  Performance Highlights  Group Financial Results  Market Overviews  Outlook 7

  8. Slide 8: Strong Results in Egypt and Western Balkans Compensate for Continued Weakness in Greece and USA

    Strong Results in Egypt and Western Balkans Compensate for Continued Weakness in Greece and USA Turnover EBITDA (€ in millions) (€ in millions) -0.7% -5.5% 1.500 1.360,6 26,1 (100.7) 1,350.5 350 332.7 3.5 (41.7) 1.400 64.5 19.9 314.4 Full Year 1.300 1.9% 1.200 4.8% 300 1.0% -7.4% 1.100 -12.5% 6.0% 1

  9. Slide 9: 9% Cement Sales Volume Growth in FY 2010

    9% Cement Sales Volume Growth in FY 2010 4th Quarter Full Year 5,0 20 4,2 2009A 17,4 18 2009A 4,0 15,9 4,0 2010A 16 2010A 9%(3) 13,6 3,2 3,2 14 13,0 3,0 12 6%(3) 10 -5%(3) 2,0 8 6 1,04 3,88 3,98 0,93 1,0 4 12%(3) 3%(3) 2 0,0 0 (1) (2) (4) (1) (2) Cement Aggregates (4) Ready-mix Cement Aggregates Rea

  10. Slide 10: 2010 Net Profit After Taxes and Minorities at €102.2m

    2010 Net Profit After Taxes and Minorities at €102.2m 2010 NPAT Reconciliation (€ in millions) 150 123.4 (18.3) 18.3 (8.1) 120 (10.5) (7.3) 5.2 (0.5) 102.2 90 60 30 0 NPAT EBITDA Depn. Interest FX Dif f . Taxes Other Minority NPAT 2009 Interest 2010 2010 EBITDA adversely impacted by €19.4m of increa

  11. Slide 11: €195 Million of Operating Free Cash Flow Generated in 2010

    €195 Million of Operating Free Cash Flow Generated in 2010 Sources and Uses of Cash (€ in millions) Operating Free Cash Flow 350 314 (87) 300 98 (78) 250 (32) 8 (29) 194 200 150 100 50 0 EBITDA 12M CapEx Operating Acquisitions/ Interest, Tax, Minorities Net FX Impact Decrease in 2010 Working Disposa

  12. Slide 12: €93.1m Reduction of Capital Expenditures

    €93.1m Reduction of Capital Expenditures CAPEX (€m) 15.7 GREECE 8.8 10.2 USA 7.8 40.2 SEE 77.3 20.0 E. MED. 85.3 -10 10 30 50 70 90 2010 ACT 2009 ACT Significant reduction in Capex driven by the completion of the two projects (Beni Suef in Nov 2009 and Antea in Mar 2010) and by the prioritization an

  13. Slide 13: Net Debt Reduced by €194m in 2010

    Net Debt Reduced by €194m in 2010 Group Debt (€ in millions) Net Debt/EBITDA (1) = 2.53 1,300 1154 1114 1,100 1028 1029 971 988 917 873 900 Net debt 777 700 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 (1) According to covenants definition in the syndicated loan of €800m Focus on reducing Debt continue

  14. Slide 14: Agenda

    Agenda  Performance Highlights  Group Financial Results  Market Overviews  Outlook 14

  15. Slide 15: EBITDA contributed from EMED and SEE outweighs heritage markets of Greece and US

    EBITDA contributed from EMED and SEE outweighs heritage markets of Greece and US Full Year 2010 Turnover (€m) Full Year 2010 EBITDA (€m) 32% 437.2 27% 86.2 -13% -34% GREECE GREECE 37% 504.3 39% 130.3 24% 316.9 1% 3.5 USA -13% USA -86% 27% 365.9 8% 25.7 17% 236.4 28% 86.8 SEE +10% SEE +17% 16% 215.8

  16. Slide 16: Accelerating Decline in Greece Partially Cushioned by Export Activity

    Accelerating Decline in Greece Partially Cushioned by Export Activity and Targeted Cash-Generating Initiatives  Significant contraction of domestic demand for building products  Prices remain broadly stable but shift of product mix towards exports impacts profitability  Substantial increase in el

  17. Slide 17: Continued Weakness in USA; No Solid Signs of a Sustained Recovery

    Continued Weakness in USA; No Solid Signs of a Sustained Recovery  Mid-Atlantic cement demand seems to have stabilized at trough levels  Florida market conditions remain challenging; erosion of prices in $ terms  €32.7m disposal of Kentucky quarry in April, transaction was EBITDA neutral  Early

  18. Slide 18: South Eastern Europe: Growth in Kosovo & Albania Far Offsets Weakness

    South Eastern Europe: Growth in Kosovo & Albania Far Offsets Weakness in Bulgaria and FYROM  Cement volume growth driven by the new plant in Albania and expanded activities in Kosovo  Acquisition of previously leased plant in Kosovo  New plant in Albania that commenced production at end of Q1, ra

  19. Slide 19: Eastern Mediterranean Region Shows Solid Growth Potential

    Eastern Mediterranean Region Shows Solid Growth Potential  In Egypt Titan volume growth continued unabated on the back of increased capacity and strong market fundamentals  Strong volume growth in Turkey fueled by fast recovery of the economy. Export markets continue to augment capacity utilizatio

  20. Slide 20: Agenda

    Agenda  Performance Highlights  Market Overviews  Group Financial Results  Outlook 20

  21. Slide 21: Important Subsequent Events

    Important Subsequent Events Political Crisis in Egypt • All our colleagues and associates are safe. • No impact on our facilities, assets and operations. • Both plants continued producing at capacity throughout the turmoil. • January-February sales and EBITDA at same levels as 2010. Debt Refinancing

  22. Slide 22: Outlook 2011

    Outlook 2011 • Greece: Market decline to continue • US: Stability with upside risk • South Eastern Europe: Economic recovery not yet translating into better markets • Eastern Med: Growth in Turkey, uncertainty in Egypt • Pressure on margins from increasing energy costs • Pricing outlook differs by r

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