Titan S.a. · EURONEXT:TITC
Titan — Titan Cement International — H1 2024 Earnings Presentation
24 slides from Titan's earnings presentation, Jul 31, 2024
Slide 1: Financial Results-H1 2024
Financial Results-H1 2024 TCI Investors’ & Analysts’ Presentation Athens, 31 July 2024
Slide 2: First Half 2024 Highlights
First Half 2024 Highlights ❑ Sustained growth in USA, Southeastern Europe and Greece drove first half results. ❑ Group Sales in H1 2024 rose by 7.6% vs H1 2023 to €1,323m. EBITDA reached €281m (+16.7%; +20% like-for-like) leading to an LTM EBITDA margin of 22.0%. Net Profit in H1 2024 grew by 34.1%
Slide 3: Second Quarter
Sales growth across all regions and products. Profitability benefitted from performance efficiencies. Sales EBITDA NPAT +7.6% Like-for-Like 1,500 450 €290m, +20% 300 94.0 1,323.0 1,229.0 +16.7% First Half 1,000 300 40.2 281.4 200 +34.1% 241.2 37.8 148.7 110.9 500 150 100 0 0 0 Sales 2023 Variance Sa
Slide 4: Sustained 12-month rolling growth trajectory
Sustained 12-month rolling growth trajectory Sales EBITDA NPAT +6.7% 900 600 3,000 165.2 2,640.9 2,475.7 +33.1% 600 580.5 400 +74.7% First Half 2,000 144.4 306.5 436.1 131.1 1,000 300 200 175.4 0 0 0 12 MR - June Variance 12 MR - June 12 MR - June Variance 12 MR - June 12 MR - June Variance 12 MR -
Slide 5: Group Income Statement – H1 2024
Group Income Statement – H1 2024 First Half 2024 Results – Investors’ & Analysts’ Presentation 5
Slide 6: Market Overview – Critical cost factors
Market Overview – Critical cost factors Benefit from lower solid fuel cost US Natural Gas (USD/Mmbtu) Coal API2 Index (USD/ton) PACE Index >50 HGI; 4.5% Sulfur (USD/MT) 10 450 300 9 400 250 8 350 7 200 6 300 5 250 150 4 200 100 3 150 2 50 1 100 0 50 0 Q2’24 Q3’21 Q1’22 Q4’23 Q2’24 Q3’22 Q1’21 Q2’21
Slide 7: Growth across all product lines
Growth across all product lines H1 2024 Sales Volume Q2 2024 Sales Volume +4% +3% 2023A 4.6 +3% 2023A +3% 4.4 8.4 8.7 2024A 5.1 2024A 10.2 5.0 10.0 +8% +7% 3.1 1.5 1.6 2.9 0.5 0.7 0.1 0.1 Cement 3rd Party Aggregates Ready-mix Cement 3rd Party Aggregates Ready-mix Domestic Cement (tn m) (m3 m) Domest
Slide 8: Operating Free Cash Flow at €110m. Net Debt reduction by €20m in H1 2024
Operating Free Cash Flow at €110m. Net Debt reduction by €20m in H1 2024 despite high CAPEX and seasonal working capital needs. 2024 Operating Free Cash Flow 281 4 (109) €110 (66) (11) (63) (16) 20 EBITDA 2024 Non-Cash CapEx Operating Acquisitions Interest, Tax, FX Impact Decrease in Items WC (Net)
Slide 9: Investments in energy efficiency, logistics and digitization continue
Investments in energy efficiency, logistics and digitization continue Completion in H1 of major projects 2024 Capital Expenditure Major 2024 CAPEX Projects CapEx Region 61.6 USA 60.1 RMC Trucks USA 34.0 RMC Plants USA GREECE 29.5 Quarry expansion USA 17.2 SEE RMC Plants & Pumps Greece 14.1 New Silos
Slide 10: Debt and Liquidity Profile June 2024
Debt and Liquidity Profile 30 June 2024 Net Debt/ EBITDA ratio at 1.07x. Group Net and Gross Debt Evolution Maturity Profile (€m)** Gross Debt Leases Net Debt Bond 392 1,200 Net Debt/EBITDA* 6 Bank Debt 17 1,000 934 5 882 903 902 869 853 867 861 793 912 800 838 4 795 797 758 762 765 261 7 660 684 3
Slide 11: Overview of Markets Performance
Overview of Markets Performance June 2024
Slide 12: Sales and margin growth in the US
Sales and margin growth in the US. Selective price increases and volume expansion in Ready-Mix and blocks. USA Sales USA EBITDA (€m) (€m) +5.3% 900 300 39.1 774.6 735.5 +21.1% 600 200 $836.0 28.6 164.1 $794.5 135.5 300 100 $177.0 $146.3 0 0 Sales 2023 Variance Sales 2024 EBITDA 2023 Variance EBITDA
Slide 13: In Greece robust domestic Sales growth across all products
In Greece robust domestic Sales growth across all products. Margins impacted by lower export prices (intragroup) and one-off items. Greece & WE Sales Greece & Corporate EBITDA (€m) (€m) 900 300 600 200 +10.7% 300 100 197.3 21.2 218.5 -15.1% 36.3 -5.4 30.9 0 0 Sales 2023 Variance Sales 2024 EBITDA 20
Slide 14: Robust Sales growth in SEE coupled with improved efficiencies
Robust Sales growth in SEE coupled with improved efficiencies SEE Sales SEE EBITDA (€m) (€m) 900 300 600 200 +37.9% +10.4% 300 100 22.8 82.8 195.1 20.3 215.4 60.0 0 0 Sales 2023 Variance Sales 2024 EBITDA 2023 Variance EBITDA 2024 30.8% EBITDA Margin 38.4% • SEE Sales increased by 10.4% in H1 2024 t
Slide 15: Challenges in EMED persist with high inflation, currency devaluation and deficits
Challenges in EMED persist with high inflation, currency devaluation and deficits. Market growth in Turkey, flat demand in Egypt. EMED Sales EMED EBITDA (€m) (€m) 900 300 600 200 300 +13.3% 100 -60.8% 101.0 13.5 114.5 9.3 -5.6 3.7 0 0 Sales 2023 Variance Sales 2024 EBITDA 2023 Variance EBITDA 2024 9
Slide 16: Brazil - Joint Venture: Cimento Apodi profitability improves
Brazil - Joint Venture: Cimento Apodi profitability improves H1 2024 Apodi (100%) In million Euro 2024 2023 Sales 59.9 59.7 EBITDA 8.8 6.0 * Consolidated on an equity basis • In H1 2024, cement demand in Brazil rose by 1.5% y-o-y supported by government housing and infrastructure projects. In the no
Slide 17: Decarbonization - Digitalization
Decarbonization - Digitalization
Slide 18: H1 2024 Decarbonization Performance
H1 2024 Decarbonization Performance: Slight increase in CO2 emissions despite new records in alternative fuels’ utilization and reduction of clinker to cement ratio; 2026 targets on track Specific net CO2 emissions (Scope 1) Alternative fuels substitution rate (%) % heat basis kg/t cementitious prod
Slide 19: Digital transformation
Digital transformation Applying the tools of the fourth industrial revolution to our business Manufacturing Digital Plant of the Future: Productivity & Reliability Factor Improvements Manufacturing • AI-based Real-Time Optimizers (RTOs) o Already deployed in most plants of TITAN’s footprint (US, Gre
Slide 20: Outlook
Outlook The global economy has been resilient so far and is expected to grow steadily, yet at a slower pace in the near term due to tight monetary policies, while moderate disinflation should continue to be pursued. Titan Group maintains a positive outlook for the rest of the year, as market fundame
Slide 21: APPENDIX
APPENDIX
Slide 22: Group Balance Sheet – H1 2024
Group Balance Sheet – H1 2024 First Half 2024 Results – Investors’ & Analysts’ Presentation 22
Slide 23: Q2 2024 Sales and Profitability per Region
Q2 2024 Sales and Profitability per Region SALES USA GREECE & CORP SEE EMED 600 600 600 600 +8.4% 31.5 404.1 400 372.6 400 400 400 +10.3% +8.9% 200 200 200 200 +11.8% 103.5 10.6 114.1 111.3 9.9 121.2 53.6 6.3 59.9 0 0 0 0 Sales 2023 Variance Sales 2024 Sales 2023 Variance Sales 2024 Sales 2023 Varia
Slide 24: DISCLAIMER
DISCLAIMER This presentation (“the Presentation”) has been prepared by Titan Cement International S.A (the “Company” and together with its subsidiaries, “the Group”) and is general background information about the activities of the Group at the date of the Presentation. The information in the Presen
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