Titan S.a. · EURONEXT:TITC

Titan — H1 2010 Earnings Presentation

22 slides from Titan's earnings presentation, Aug 26, 2010

  1. Slide 1: Financial Results – First Half 2010

    Financial Results – First Half 2010 Analysts’ conference call Athens, August 26, 2010 1

  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 ¾ Performance Highlights ¾ Group Financial Results ¾ Market Overviews ¾ Outlook 3

  4. Slide 4: Performance Highlights – H1 2010

    Performance Highlights – H1 2010 SOLID FINANCIAL PERFORMANCE • Turnover at €680.8m, reduced by 0.4% • EBITDA at €161.4m, an increase of 0.2% • Net Profit after taxes and minority interests at €68.3m, up by 14.9% OPTIMIZING BUSINESS PORTFOLIO • The new plant in Albania commenced production • Agreed w

  5. Slide 5: Solid Performance in 1H 2010 Despite Weak Fundamentals in Key Markets

    Solid Performance in 1H 2010 Despite Weak Fundamentals in Key Markets Key Financials First Half 2010 Key Financials 2nd Quarter 2010 (€ in millions - unless stated otherwise) (€ in millions - unless stated otherwise) 2010 2009 Var 10 vs 09 2010 2009 Var 10 vs 09 Turnover 680.8 683.7 -0.4% Turnover 3

  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 Affect EBITDA 1H FX Impact in Million € EBITDA +1 Net Equity +150 Net Debt +40 Working Capital +12 6

  7. Slide 7: Agenda

    Agenda ¾ Performance Highlights ¾ Group Financial Results ¾ Market Overviews ¾ Outlook 7

  8. Slide 8: Group Turnover & EBITDA at Same Levels as Last Year, Supported by New Assets

    Group Turnover & EBITDA at Same Levels as Last Year, Supported by New Assets and Acquisitions 1H Turnover (€m) 1H EBITDA (€m) & EBITDA Margin 800 684 681 200 700 161 161 600 150 500 395 97 100 376 400 308 286 100 64 61 300 200 50 100 20.9% 21.4% 25.7% 25.4% 23.6% 23.7% 0 0 Q1 Q2 YTD Q1 Q2 YTD 2009 2

  9. Slide 9: At Group Level Strong Results in Eastern Mediterranean and SEE Compensate for Weakness

    At Group Level Strong Results in Eastern Mediterranean and South Eastern Europe Compensate for Continued Weakness in Greece and USA Turnover EBITDA (€ in millions) (€ in millions) -0.4% 0.2% 800 683.7 3.4 (35.1) 680.8 200 28.8 161.1 0.8 161.4 700 (10.0) 9.5 First Half 600 0.5% -5.1% 4.2% 150 500 0.5

  10. Slide 10: Strong Growth of +14% in Cement Sales Volumes

    Strong Growth of +14% in Cement Sales Volumes 2nd Quarter First Half 10 6 8.7 5.0 8 7.6 5 4.3 6.7 6.7 4 3.6 6 14%(3) 3.4 14%(3) 3 4 -6%(3) 2 1.9 2.0 1.0 1.1 2 1 1%(3) 8%(3) 0 (1) (2) 0 (1) (2) (4) (4) Cement Aggregates Ready-mix Cement Aggregates Ready-mix (tn m) (tn m) (m3 m) (tn m) (tn m) (m3 m) 2

  11. Slide 11: Group Net Profit Positively Impacted by Reduced Net Interest Expense and Tax Reduction

    Group Net Profit Positively Impacted by €5.3m Reduced Net Interest Expense and €2.4m Tax Reduction Group Net Profit After Taxes and Minorities (€ in millions) 100 13.1 2.4 (4.4) 80 (5.5) 68.3 2.2 59.4 (0.5) (3.7) 5.3 60 40 20 0 NPAT EBITDA Depn. Interest Realized Unrealized Taxes Other Minority NPAT

  12. Slide 12: €95 Million of Free Cash Flow Generated in 1H

    € 95 Million of Free Cash Flow Generated in 1H Sources and Uses of Cash (€ in millions) Free Cash Flow from Operations 180 161 (37) 160 140 (29) 33 (45) 120 10 (40) 100 80 60 54 40 20 0 EBITDA 6M CapEx Operating Acquisitions / Interest, Tax, Minorities Net FX Impact Decrease in 2010 Working Disposal

  13. Slide 13: Substantial Reduction of Capital Expenditures

    Substantial Reduction of Capital Expenditures CAPEX (€m) 5.2 GREECE 3.9 3.8 2010 2009 USA 5.1 19.4 SEE 46.0 9.0 E. MED. 51.7 0 20 40 60 Significant reduction in Capex (by €70 mil) due to completion of Beni Suef project (Nov 2009) and Antea new plant (Mar 2010). 13

  14. Slide 14: Net Debt Continues to Improve Significantly

    Net Debt Continues to Improve Significantly Group Debt (€ in millions) 1,300 Net Debt/EBITDA (1) = 2.76 1154 1133 1114 1,100 1058 1028 1029 988 971 917 900 Net debt 700 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2008 2009 2010 (1) According to covenants definition in the syndicated loan of €800m Net debt reduced by

  15. Slide 15: Agenda

    Agenda ¾ Performance Highlights ¾ Group Financial Results ¾ Market Overviews ¾ Outlook 15

  16. Slide 16: Growth in Egypt, the Balkans and Turkey compensate for continued weakness in Greece and USA

    Growth in Egypt, the Balkans and Turkey compensate for continued weakness in Greece and USA Turnover (€m) EBITDA (€m) 35% 32% 53.3 235.0 -5% GREECE GREECE -8% 36% 248.4 35% 57.9 1% 1.5 24% 163.3 -18% USA USA -93% 29% 199.2 14% 23.0 15% 103.9 27% 42.8 SEE +6% SEE +32% 15% 98.1 21% 32.5 26% 178.6 40%

  17. Slide 17: Increased Export Activity and Targeted Cash-Generating Initiatives Cushion Decline in Greece

    Increased Export Activity and Targeted Cash-Generating Initiatives Cushion Decline in Greece ƒ Accelerated decline of domestic cement demand combined with broadly stable prices in Q2. ƒ Continued strong export demand. ƒ Solid fuel and transport costs head up in Q2 while additional levies applied on

  18. Slide 18: Continued Weakness in USA; No Solid Signs of a Recovery

    Continued Weakness in USA; No Solid Signs of a Recovery ƒ Mid-Atlantic cement demand seems to stabilize at US Quarterly EBITDA Evolution trough levels. ƒ Particularly challenging market conditions in Florida; Price erosion in all product lines. ƒ EBITDA neutral, €32.7m disposal of Kentucky quarry in

  19. Slide 19: Growth Initiatives in Western Balkans offset weakness in South Eastern European Markets

    Growth Initiatives in Western Balkans offset weakness in South Eastern European Markets ƒCement volume growth driven by the new plant in Albania and expanded activities in Kosovo ƒPrices broadly stable in 1H’10, except in Bulgaria and to a lesser extent in FYROM. ƒBulgaria severely impacted by econo

  20. Slide 20: Eastern Mediterranean Region Shows Solid Growth Potential

    Eastern Mediterranean Region Shows Solid Growth Potential ƒ Egyptian market continues to grow albeit at a slower pace of 7%. ƒ New second line at Beni Suef boosts our sales volumes. ƒ Titan Ready Mix business kick-started in Egypt. ƒ 5% sales tax levied on cement sales as of July 1st. ƒ Agreed with

  21. Slide 21: Agenda

    Agenda ¾ Performance Highlights ¾ Market Overviews ¾ Group Financial Results ¾ Outlook 21

  22. Slide 22: In the 2H Our Diversified Business Will Help Us Face Uncertainty in US and Weakness in Greece

    In the 2H Our Diversified Business Will Help Us Face Uncertainty in US and Weakness in Greece. • Emerging markets in Eastern Mediterranean are expected to continue driving cement growth. • Continued weakness in some South Eastern European countries. • Strong benefits from new capacity in Egypt and t

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