Slide 1: Financial Results – 9 Months 2010
Financial Results – 9 Months 2010 Analysts’ conference call Athens, November 23, 2010
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 ¾ Performance Highlights ¾ Market Overviews ¾ Group Financial Results ¾ Outlook 3
Slide 4: Performance Highlights – 9M 2010
Performance Highlights – 9M 2010 DELIVERING SOLID FINANCIAL PERFORMANCE • Turnover at €1.03B, reduced by 1.7% • EBITDA at €260.3m, an increase of 0.9% : Net Profit after taxes and minority interests at €98.3m, down by 5.2% : Steep slowdown in Greece in Q3 OPTIMIZING BUSINESS PORTFOLIO • Expansion in
Slide 5: Solid Performance in 9M 2010 Despite Continued Trough-like Conditions in Key Markets
Solid Performance in 9M 2010 Despite Continued Trough-like Conditions in Key Markets Key Financials 3rd Quarter 2010 Key Financials 9 Months 2010 (€ in millions - unless stated otherwise) (€ in millions - unless stated otherwise) 2010 2009 Var 10 vs 09 2010 2009 Var 10 vs 09 Turnover 347,7 362,6 -4,
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 € 6M Q3 9M P&L EBITDA +1 +1 +2 FX Gains/Losses +11 -17 -6 30th Jun 2010 Δ Q3 30th Sep 2010 Net Equity +150 -105 +45 BS Net Debt +20 +4 +24 Working Capital +12 -18 -6 Actual
Slide 7: Agenda
Agenda ¾ Performance Highlights ¾ Group Financial Results ¾ Market Overviews ¾ Outlook 7
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 9M Turnover (€m) 9M EBITDA (€m) & EBITDA Margin 1200 300 1046 1028 258 260 1000 250 800 200 600 150 376 395 97 100 97 99 363 348 400 308 286 100 64 61 25.3% 200 50 21.4% 25.4% 28.4% 20.9% 25.7% 26.7% 24.7% 0 0 Q1 Q2 Q3 YTD
Slide 9: Strong Results in Egypt and Western Balkans Compensate for 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) -1.7% 0.9% 1,100 16.1 (83.2) 280 257.9 2.4 (16.5) 16.5 260.3 1,046.2 49.4 1,028.5 260 9 Months 1,000 1.5% 240 220 0.9% -6.4% 6.4% 900 -8.0% 4.7% 200 800 -3.
Slide 10: Slowdown in Q3 Cement Sales Volumes but Overall 10% Growth in 9M 2010
Slowdown in Q3 Cement Sales Volumes but Overall 10% Growth in 9M 2010 3rd Quarter 9 Months 14 5,0 13,1 4,4 2009A 11,9 2009A 4,3 4,1 12 2010A 10,8 2010A 4,0 9,7 10 3,1 3,0 2%(3) 8 10%(3) -26%(3) 6 2,0 -10%(3) 4 1,00 2,9 2,9 0,97 1,0 2 -3%(3) 0,0 (1) (2) (4) 0 Cement Aggregates Ready-mix Cement (1) (2
Slide 11: 9M 2010 Net Profit After Taxes and Minorities at €98.3 Million
9M 2010 Net Profit After Taxes and Minorities at € 98.3 Million Group Net Profit After Taxes and Minorities (€ in millions) 150 12.3 (8.5) 120 (8.0) 103.7 (0.1) (4.5) 3.2 0.2 98.3 90 60 30 0 NPAT EBITDA Depn. Interest FX Dif f . Taxes Other Minority NPAT 2009 Growth Interest 2010 11
Slide 12: €147 Million of Operating Free Cash Flow Generated in 9M 2010
€147 Million of Operating Free Cash Flow Generated in 9M 2010 Sources and Uses of Cash (€ in millions) Free Cash Flow from Operations 300 260 (59) 250 (54) 200 35 (70) 150 10 (24) 98 100 50 0 EBITDA 9M CapEx Operating Acquisitions/ Interest, Tax, Minorities Net FX Impact Decrease in 2010 Working Dis
Slide 13: €92 Million Reduction of Capital Expenditures
€ 92 Million Reduction of Capital Expenditures CAPEX (€m) 11.0 GREECE 5.5 5.6 USA 6.8 28.3 SEE 64.6 13.8 E. MED. 74.0 0 20 40 60 80 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
Slide 14: Net Debt Continues to Improve Significantly
Net Debt Continues to Improve Significantly Group Debt (€ in millions) Net Debt/EBITDA (1) = 2.54 1,500 1,300 1133 1154 1114 1,100 1028 1029 971 988 917 873 900 Net debt 700 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2010 (1) According to covenants definition in the syndicated loan of €800m Focus on reduc
Slide 15: Agenda
Agenda ¾ Performance Highlights ¾ Group Financial Results ¾ Market Overviews ¾ Outlook 15
Slide 16: 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 9M 2010 Turnover (€m) 9M 2010 EBITDA (€m) 32% 330.4 29% 75.4 GREECE -13% GREECE -21% 36% 380.3 37% 96.1 24% 247.9 3% 6.8 USA -15% USA -76% 28% 291.1 11% 28.1 18% 181.3 28% 72.6 SEE +7% SEE +18% 16% 168.7 24% 61.4 26% 26
Slide 17: Accelerating Decline in Greece Cushioned by Increased Export Activity
Accelerating Decline in Greece Cushioned by Increased Export Activity and Targeted Cash-Generating Initiatives Significant contraction of domestic demand for building products Decline in sales volume exacerbated in Q3 by truck drivers’ strike in September EBITDA positively impacted by disposal
Slide 18: Continued Weakness with No Solid Signs of a Sustained Recovery in the USA
Continued Weakness with No Solid Signs of a Sustained Recovery in the USA 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
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 Cement volume growth driven by the new plant in Albania and expanded activities in Kosovo New plant in Albania commenced production at end of Q1. Growth in both domestic and export cement sales as plant ramps
Slide 20: Eastern Mediterranean Region Shows Solid Growth Potential
Eastern Mediterranean Region Shows Solid Growth Potential In Egypt Titan volumes grow on the back of increased capacity, temporary slow-down during Ramadan period was reversed in October Strong volume growth in Turkey fueled by fast recovery of the economy and supported by export markets New-t
Slide 21: Agenda
Agenda ¾ Performance Highlights ¾ Market Overviews ¾ Group Financial Results ¾ Outlook 21
Slide 22: Outlook 2010
Outlook 2010 • Greek market decline continues • No upturn seen in the US • Markets remain weak in South Eastern Europe • Demand grows in Eastern Med • Energy costs trending up • Pricing pressures increasing • Titan benefiting from : ¾ Focus on free cash flow generation ¾ Productivity initiatives ¾ N