Titan S.a. · EURONEXT:TITC

Titan — Titan Cement — H1 2016 Earnings Presentation

22 slides from Titan's earnings presentation, Jul 28, 2016

  1. Slide 1: Financial Results – 1st Half 2016

    Financial Results – 1 Half 2016 st Investors’ and Analysts’ Presentation Athens, 28 July 2016

  2. Slide 2: H1 2016 Highlights

    H1 2016 Highlights  Turnover and EBITDA in Q2 2016 lower than prior year (0.8% and 7.2% respectively) due to higher cost of Florida plant stoppage. Growth in H1 Turnover and EBITDA at €724m (+7.6%yoy) and €119m (+13.5%yoy).  NPAT in Q2 2016 reaches €27.8m (better FX result vs Q2 2015), while H1 NP

  3. Slide 3: H1 Higher but Q2 Turnover and EBITDA Below Strong 2015 Performance

    H1 Higher but Q2 Turnover and EBITDA Below the Strong 2015 Performance Affected by One-Offs Turnover EBITDA € in m illions 7.6% 13.5% € in m illions 800 51.0 723.8 150 672.8 14.2 119.5 105.3 6 Months 120 600 90 400 60 200 30 0 0 Turnover Variance Turnover EBITDA Variance EBITDA 2015 2016 2015 2016 1

  4. Slide 4: Top Line and EBITDA Growth in H1 2016

    Top Line and EBITDA Growth in H1 2016 In Million Euros, unless otherwise stated H1 2016 H1 2015 Variance Q2 2016 Q2 2015 Variance Net Sales 723.8 672.8 7.6% 386.0 389.0 -0.8% Cost of Goods Sold -530.8 -506.6 4.8% -272.2 -277.0 -1.7% Gross Margin (before depreciation) 193.0 166.1 16.2% 113.8 112.0 1.

  5. Slide 5: Strong Operating Cash Generation Due to Improved Profitability and WC Management

    Strong Operating Cash Generation Due to Improved Profitability and WC Management Sources and Uses of Cash H1 Operating Free Cash Flow (€ in millions) 150 6 (62) 119 €67m 100 4 1 (40) 50 16 44 0 EBITDA H1 Non-Cash CapEx Operating Acquisitions Interest, Tax, FX Impact Reduction in 2016 Items Working N

  6. Slide 6: Net Debt Continues to Decline, Gross Debt Affected by June Bond Issue

    Net Debt Continues to Decline Gross Debt Affected by the June Bond Issue Group Net and Gross Debt Evolution (€ in millions) Net Debt Gross Debt 1,200 1,169 1,100 1,031 1,112 1,017 994 1,008 1,021 1,000 947 963 967 980 886 906 907 986 988 881 900 947 846 851 849 852 930 806825 818 874 791 798 800 743

  7. Slide 7: Debt & Liquidity Profile

    Debt & Liquidity Profile June 2016 Facilities / Utilization by Lender Facilities by Type / Utilization (€m) 1.600 Total Committed Lines: 1,385 1% 20% 1.400 1,220/ Utilization 851 25% 27% 1.200 39% 533 Total Total 1.000 Un-Utilized Facilities Utilization 800 673 547 Utilized €1,385m €852m 600 48% 400

  8. Slide 8: Titan Group Balance Sheet

    Titan Group Balance Sheet In Million Euros, unless otherwise stated 30 Jun' 16 31 Dec' 15 Variance Property, plant & equipment 1,722.6 1,806.2 -83.6 Intangible assets and goodwill 426.8 455.9 -29.1 Other non-current assets 106.1 108.9 -2.8 Non-current assets 2,255.5 2,371.0 -115.5 Inventories 271.2

  9. Slide 9: Cement Sales Volume Growth in US, Egypt and SEE Offset by Decline in Greece

    Cement Sales Volume Growth in US, Egypt and SEE Offset by Decline in Greece 6 Months Sales Volume 2nd Quarter Sales Volume +2%(3) 201 5A 201 5A 7.9 8.1 201 6A 201 6A -1%(3) +16%(3) +10%(3) 4.5 4.4 +13%(3) 8.0 +3%(3) 6.9 2.13 2.35 3.7 4.2 1.24 1.28 (1), (2) (2) (2) (2) Cement Aggregates Ready-mix Cem

  10. Slide 10: 2. Market Overviews

    2. Market Overviews 10 Investors' H1 2016 and Analysts' Presentation

  11. Slide 11: USA Momentum and Egypt Recovery Drive EBITDA Growth

    USA Momentum and Egypt Recovery Drive EBITDA Growth. US Represents 51% of Group Turnover H1 2016 Turnover (€m) H1 2016 EBITDA (€m) Total Assets (€m) 51% 372.6 19% 44% 52.2 24% 37% 1,097 USA USA USA 47% 313.7 19% 40% 42.1 26% 34% 1,006 18% 133.4 16% 19.7 -30% 20% 617 GR/WE -9% GR/WE GR/WE 22% 146.7 2

  12. Slide 12: 10-Year EBITDA 12-Month Rolling Quarterly Analysis by Region (2007-2016)

    10-Year EBITDA 12Month-Rolling Quarterly Analysis by Region (2007-2016) USA GREECE & WE 240 250 213 203 206 194 185 184 190 200 191 183 164 177 154 169 150 140 130 150 135 130 113111 129 128 123 106 101 101 107 86 100 87 90 70 70 69 51 51 61 43 39 404147 55 44 36 32 42 4939454436 40 39 36 3233 50 35

  13. Slide 13: US Sales Continue to Grow While Q2 Turnover and EBITDA Affected by Florida Stoppage

    US Sales Continue to Grow While Q2 Turnover and EBITDA Affected by Florida Stoppage  Market demand remains robust in all areas we operate.  US Revenues continue to grow in Q2 (+8% at €198m) boosted by higher volumes across all geographies and products, combined with increased prices.  Despite Tur

  14. Slide 14: Capital Controls Continue to Weigh Down on Greece Performance

    Capital Controls Continue to Weigh Down on Greece Performance  Greek market declines in H1 2016 yoy still affected by capital controls imposed in June 2015.  Public works support building materials consumption, but overall demand remains poor.  Greece/W. Europe Turnover and EBITDA drop as a resul

  15. Slide 15: SEE Performance Slightly Improved at H1 2016

    SEE Performance Slightly Improved at H1 2016 Due to Increased Demand in Some Countries  In SEE domestic cement consumption increases in H1 2016 vs last year, mainly in SW Balkans.  Cement prices remain at lower levels due to increased competition.  H1 2016 Turnover improves by 6.7% yoy and EBITDA

  16. Slide 16: Egypt Profitability Recovers as Production is Restored and Fuel Costs Drop

    Egypt Profitability Recovers as Production is Restored and Fuel Costs Significantly Drop  Cement consumption in Egypt grows by 9.6% (Jan-May 2016, Ministry Report). Macroeconomic situation in the country raises concerns, while the currency is under pressure.  Titan cement production restored to pr

  17. Slide 17: 3. Outlook

    3. Outlook 17 Investors' H1 2016 and Analysts' Presentation

  18. Slide 18: Outlook 2016

    Outlook 2016 USA • Growth to continue within a positive environment. • Focus on business development and on expanding margins. Eastern Med • Egypt short-term demand growth to continue, though rising macroeconomic difficulties pose risks. • Focus on completing task for restoring profitability and mar

  19. Slide 19: 4. Appendix

    4. Appendix 19 Investors' H1 2016 and Analysts' Presentation

  20. Slide 20: Q2 Sales and Profitability by Region

    Q2 Sales and Profitability by Region Turnover USA GREECE & WE SEE EMED € in m illions 8.0% € in millions € in m illions -12.7% -2.6% € in m illions -9.2% 14.8 198.2 200 183.4 200 200 200 150 150 150 150 100 100 81.4 -10.4 71.0 100 100 62.8 -1.6 61.2 61.4 -5.7 55.7 50 50 50 50 0 0 0 0 Turnover Varian

  21. Slide 21: 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

  22. Slide 22: Thank you

    Thank you 22 Investors' H1 2016 and Analysts' Presentation

Titan Cement — H1 2016 Earnings Presentation on 6ix