Slide 1: Financial Results – Full Year 2011
Financial Results – Full Year 2011 Analysts’ conference call Athens, March 1, 2012
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
Slide 3: Agenda
Agenda Group Financial Results Market Overviews Outlook 3
Slide 4: Greek Recession, Unstable Egypt and Stronger Euro Take a Toll on 2011 Results
Greek Recession, Unstable Egypt and Stronger Euro Take a Toll on 2011 Results In Million Euro, unless 12M 2011 12M 2010 Variance Q4 2011 Q4 2010 Variance otherwise stated Net Sales 1,091.4 1,350.5 -19.2% 252.5 322.0 -21.6% EBITDA 242.7 315.1 -23.0% 22.8 54.8 -58.3% FX Gains/Losses -11.9 -8.2 5.7 -2.
Slide 5: 2011-2012 Restructuring Plan Results in more than 26 MM€ in Annualized Recurring EBITDA Savings
2011-2012 Restructuring Plan Results in more than 26 MM€ in Annualized Recurring EBITDA Savings Scope SG&A Fixed Cost 18 145 17 128 123 115 260 218 220 201 2008 2009 2010 2011 Scope: Albania and Kosovo Cumulative Cash Flow Impact -18 +3 +29 5
Slide 6: Group Volume Declines Due Almost Exclusively to Greece
Group Volume Declines Due Almost Exclusively to Greece Full Year 4th Quarter 20.0 5.0 17.4 18.0 2010A 4.2 2010A 16.0 15.3 4.0 3.7 2011A 2011A 14.0 13.0 3.2 12.0 10.9 3.0 2.7 10.0 -12%(3) -12%(3) 8.0 -16%(3) 2.0 -18%(3) 6.0 3.98 3.66 1.04 0.94 4.0 1.0 2.0 -8%(3) -10%(3) 0.0 (1) (2) 0.0 Cement Aggrega
Slide 7: 2011 Results Affected by Sharp Decline in Greece Sales and Exacerbated by Strong Euro
2011 Results Affected by Sharp Decline in Greece Sales and Exacerbated by Strong Euro Turnover Reconciliation EBITDA Reconciliation (€ in millions) (€ in millions) 1,600 -19.2% 360 -23.0% 1,350.5 (47.6) 315.1 (13.0) (59.4) 1,400 (211.5) 310 12 months 1,200 -3.5% 1,091.4 -4.1% 242.7 260 1,000 -15.7%
Slide 8: NPAT Impacted by Lower Operating Profitability
NPAT Impacted by Lower Operating Profitability 2011 Group Net Profit After Taxes and Minorities (Reconciliation vs. 2010) (€ in millions) 120 103.1 (59.4) 100 80 60 (13.0) 40 (18.5) 2.5 (6.9) 6.7 (1.7) (3.7) 20 1.9 11.0 0 NPAT EBITDA EBITDA Impairment Depn. Interest Taxes Other Minority FX Gains/ NP
Slide 9: Strengthening of the Euro in 2011 Leads to a Substantial Drop in Profitability
Strengthening of the Euro in 2011 Leads to a Substantial Drop in Profitability FX Gains/Losses FX Impact in Million € Local Loan Country 12M 2011 Currency Currency Q1 Q2 Q3 Q4 FY Egypt EGP EUR +5.1 P&L EBITDA -2 -7 -4 0 -13 Turkey TRY EUR, USD -7.3 FX Gains/Losses -14 -6 +8 +8 -4 Albania ALL EUR -1.
Slide 10: Group Generates €206m in Operating Free Cash Flow in 2011
Group Generates €206m in Operating Free Cash Flow in 2011 Sources and Uses of Cash (€ in millions) Operating Free Cash Flow 300 243 (8) 250 (58) 15 (146) 29 200 150 100 €206m (6) 69 50 0 EBITDA 12M Non-Cash CapEx Operating Acquisitions/ Interest, Tax, Net FX Impact Change in 2011 Items/ Working Disp
Slide 11: Further Improving Financial Flexibility Remains a Top Priority for the Group
Further Improving Financial Flexibility Remains a Top Priority for the Group Group Net Debt (€ in millions) Net Debt/EBITDA (1) = 2.80 1,200 1154 1114 1028 1029 988 1,000 971 917 873 800 777 777 768 745 708 Net debt 600 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 2011 (1) calculation accor
Slide 12: Robust Liquidity Profile FY 2011
Robust Liquidity Profile FY 2011 Credit Facilities by Type Facilities by Tenor (€ m)1 Bonds: 1: includes capital leases Utilized Un-utilized 14% 1,206.9 International 391,8 banks: 51% Greek 323.8 banks: 815,1 35% 97,2 226,6 ST LT Maturity Profile (€ m) Liquidity- 31 December 2011 • Titan’s liquidity
Slide 13: Agenda
Agenda Group Financial Results Market Overviews Outlook 13
Slide 14: 2011 EBITDA of €242.7m Driven Mainly by SEE and EMED
2011 EBITDA of €242.7m Driven Mainly by SEE and EMED 12M 2011 Turnover (€m) 12M 2011 EBITDA (€m) 29% 15% 25% 268.7 -39% 14% 35.0 -60% GREECE 38% GREECE 42% 32% 437.2 28% 86.8 27% -11 28% 303.7 -2% -5.7 USA 25% -4% -11 USA 23% 316.9 1% 3.6 14% 30% 22%9% 241.2 35% 20% 85.6 SEE 2% SEE -1% 17% 236.3 28%
Slide 15: Profitability in Greece Plummets amidst Recession
Profitability in Greece Plummets amidst Recession Greek recession leads building activity to a tailspin in 2011. Dramatic decline in sales volumes across all products and market segments. Export volume almost at 1/3 of 2010 due to collapse of North African exports. Selling prices quarter-on-
Slide 16: 2011 USA: Bouncing Along the Bottom
2011 USA: Bouncing Along the Bottom Cement consumption growth in 2011 (PCA data): South Atlantic +4%, Florida +1.7%, Virginia +6.3%, North Carolina +6.5%. Infrastructure spending weak in 2011. Modest sales volume growth across all products. Year-on-Year average price decline as selling price
Slide 17: Continued Growth in SE Europe, whilst Profitability Remains Stable
Continued Growth in SE Europe, whilst Profitability Remains Stable Modest macroeconomic improvement in the region leads to growing demand in construction materials. 4% average cement sales growth in the region. 2011 average cement prices below last year. Increasing fuel & energy costs clip m
Slide 18: Political Unrest in Egypt and the Strong Euro Affect EMED Profitability
Political Unrest in Egypt and the Strong Euro Affect EMED Profitability Political uncertainty and social unrest take their toll on Egypt’s economy. Egyptian cement demand declines by 2%. More than 5MT new market capacity in Egypt came on stream within 2011, putting pressure on prices. Egypt
Slide 19: Agenda
Agenda Group Financial Results Market Overviews Outlook 19
Slide 20: Outlook 2012
Outlook 2012 • Greece: Further substantial decline in demand • US: Optimism returns • South Eastern Europe: Improving trends • Eastern Med: Growth in Turkey, Transition progressing in Egypt • Energy costs: Roughly stable (excluding Egypt) • Pricing power: Some upside potential (excluding Greece) • F