Titan S.a. · EURONEXT:TITC
Titan — Q1 2020 Earnings Presentation
22 slides from Titan's earnings presentation, May 14, 2020
Slide 1: Financial Results – First Quarter 2020
Financial Results – First Quarter 2020 Investors’ and Analysts’ Presentation 14 May 2020
Slide 2: Covid-19 Response
@ TITAN er Covid-19 Response
Slide 3: We Successfully Navigated the First Phase of the Crisis
We Successfully Navigated the First Phase of the Crisis Took measures to protect the health and safety of our employees and business partners. Played our part in containing the pandemic and contributed to local communities. Switched to teleworking effectively. Maintained operating efficiency. Ensure
Slide 4: Status of Operations and Markets
Status of Operations and Markets No significant infection incidents. No fatalities. All cement plants operational. Exiting lockdowns in some countries. Construction confirmed ‘essential business’. April demand varies between geographies: • Small decline (≤10%): USA (Florida and Mid- Atlantic), Turke
Slide 5: Financial Results – First Quarter 2020
Financial Results – First Quarter 2020
Slide 6: 2020 Q1 Highlights
2020 Q1 Highlights • Group Revenue improved by 6.1% to €385m despite mild March slowdown. Growth led by USA and EMED. • Q1 EBITDA decreased from €44m to €41m due to earlier maintenance shutdowns. • Q1 2020 Net Result at €-16m loss, hit by a one-off €9m mark-to-market loss on fixed US$ interest rate
Slide 7: Q1 2020 Posted Revenue Growth. Covid-19 Impact from Mid-March.
Q1 2020 Posted Revenue Growth. Covid-19 Impact from Mid-March. Profitability Reduced by Timing of Plant Maintenance and Loss on Interest Rate Hedges. Group Revenue Group EBITDA Group NPAT € in millions 6.1% € in millions -8.5% € in millions 156.9% 400 22.1 384.8 60 20 362.7 44.3 -3.7 300 45 40.6 10
Slide 8: Healthy Topline Growth in Q1 Driven by USA and EMED. Lower Profitability.
Healthy Topline Growth in Q1 Driven by USA and EMED. Lower Profitability. In Million Euros, unless otherwise stated 2020 2019 Variance Revenue 384.8 362.7 6.1% Cost of Goods Sold -305.5 -281.0 8.7% Gross Margin (before depreciation) 79.3 81.7 -3.0% SG&A -39.3 -38.3 2.6% Other Income / Expense 0.6 1.
Slide 9: Group Balance Sheet March 2020
Group Balance Sheet 31 March 2020. Variance In Million Euros, unless otherwise stated 31 Mar' 20 31 Dec' 19 Mar 20 vs Dec 19 Property, plant & equipment and inv. Property 1,703.2 1,710.7 -7.5 Intangible assets and goodwill 430.0 425.3 4.7 Investments/Other non-current assets 155.9 156.2 -0.3 Non-cur
Slide 10: Strong Start of the Year, Despite Slowdown in Second Half of March
Strong Start of the Year, Despite Slowdown in Second Half of March. 1st Quarter Sales Volume 2019A +4%(3) 2020A 3.7 3.8 +3%(3) +2%(3) 4.4 4.6 1.27 1.29 Cement(1), (2) Aggregates (2) Ready-mix(2) (tn m) (tn m) (m3 m) * Intragroup product sales for processing are included in sales volumes (1) Cement s
Slide 11: Improved OFCF vs 2019. Seasonal Q1 Increase in Working Capital
Improved OFCF vs 2019. Seasonal Q1 Increase in Working Capital at Lower Levels vs Last Year. Sources and Uses of Cash 3M Operating Free Cash Flow (€ in millions) 60 €-17m 41 4 (21) 40 (41) 20 (42) 0 (0) (8) -20 (17) -40 -60 EBITDA Non-Cash CapEx Operating Acquisitions Interest, Tax, FX Impact IFRS 1
Slide 12: Seasonal Net Debt Growth Below Previous Year Peak
Seasonal Net Debt Growth Below Previous Year Peak Group Net and Gross Debt Evolution (€ in millions) Net debt Gross Debt 1,200 1112 1,100 986988 1,000 930947 874 889 891 878 900 831 839 787 784 772 836 739 739 732 754 758 738751 800 707 674 713 716 723 660 650 661 700 602632 596 630 621605 578 562 5
Slide 13: Performance by Region
Performance by Region ~ Rea
Slide 14: Topline Growth in the US. Profitability Declined Due to Earlier Planned Maintenance.
Topline Growth in the US. Profitability Declined Due to Earlier Planned Maintenance. USA Revenue USA EBITDA € in millions 6.2% € in millions -32.9% 13.9 237.8 240 223.9 45 41.2 -13.6 1st Quarter 160 30 27.7 80 15 0 0 Revenue Variance Revenue EBITDA Variance EBITDA 2019 2020 2019 2020 18.4% EBITDA Ma
Slide 15: Revenue Growth in Greece. Benefit from Solid Fuel Cost.
Revenue Growth in Greece. Benefit from Solid Fuel Cost. Greece Revenue Greece & Corporate EBITDA € in millions 2.4% € in millions -274.9% 240 40 1st Quarter 160 25 80 10 56.1 1.4 57.5 -0.8 2.2 1.4 0 -5 Revenue Variance Revenue EBITDA Variance EBITDA 2019 2020 2019 2020 -1.4% EBITDA Margin 2.4% • Gre
Slide 16: Resilient Revenue in SEE, Further Improvement in Profitability.
Resilient Revenue in SEE, Further Improvement in Profitability. SEE Revenue SEE EBITDA € in millions -1.0% € in millions 30.8% 240 45 1st Quarter 160 30 80 15 2.9 12.0 48.4 -0.5 47.9 9.1 0 0 Revenue Variance Revenue EBITDA Variance EBITDA 2019 2020 2019 2020 18.9% EBITDA Margin 24.9% • Despite weak
Slide 17: EMED Volume Growth in Q1 2020 Due to Egypt Domestic Sales and Turkish Exports
EMED Volume Growth in Q1 2020 Due to Egypt Domestic Sales and Turkish Exports. Reduction in Losses. EMED Revenue EMED EBITDA € in millions 21.3% € in millions 240 35 1st Quarter 160 20 80 5 -5.2 4.8 -0.4 34.2 7.3 41.5 0 -10 Revenue Variance Revenue EBITDA Variance EBITDA 2019 2020 2019 2020 -15.3% E
Slide 18: 1st Quarter 2020 – Apodi Brazil Performance
1st Quarter 2020 – Apodi Brazil Performance • In Q1 2020 cement demand in Brazil at the same levels as 2019. Small growth in the Northeast • Apodi increased sales volumes and revenues vs last year. • Prices stable vs Q4 2019. • Profitability improved due to higher capacity utilization. 18 Investors'
Slide 19: Outlook
Outlook
Slide 20: Outlook
Outlook • Duration and depth of demand decline cannot be assessed. • Housing and non-residential segments to be more heavily impacted. • Support potentially provided by: o Government and institutional actions o Infrastructure spending o Energy costs tailwind • Decisive measures taken in the areas un
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! We invite you to visit our 2019 Integrated Annual Report 22 Investors' and Analysts' Presentation First Quarter 2020