Titan S.a. · EURONEXT:TITC
Titan — Titan Cement Group — Investor Day (2023)
84 slides from Titan's investor day presentation, 2023
Slide 1: Green Growth: Strategic Directions 2026
GREEN GROWTH: STRATEGIC DIRECTIONS 2026 TITAN CEMENT GROUP INVESTOR DAY 2023
Slide 2: Agenda
AGENDA 01 Setting the Scene Dimitri Papalexopoulos Chair of the Board of Directors 02 Strategic Directions 2026 Marcel Cobuz Chair of the Group ExCo 03 TITAN America: Entering a Bill Zarkalis New Growth Phase President & CEO Titan America 04 Europe: Well-positioned Yanni Paniaras for Green Growth Gr
Slide 3: Today's Presenters
TODAY’S PRESENTERS Dimitri Papalexopoulos Marcel Cobuz Bill Zarkalis Yanni Paniaras Chair of the Board of Directors Chair of the Group ExCo President & CEO Titan America Group Executive Director Europe Leonidas Canellopoulos Antonis Kyrkos Michael Colakides Angelos Kalogerakos Chief Sustainability &
Slide 4: Setting the Scene
SETTING THE SCENE Dimitri Papalexopoulos Chair of the Board of Directors
Slide 5: A Long History in a Cyclical Industry, Leading to a New Phase
A LONG HISTORY IN A CYCLICAL INDUSTRY, LEADING TO A NEW PHASE OF TRANSFORMATION & GROWTH 1902 1920 1990-2011 Titan Cement founded, Started exports from International Expansion to Elefsina plant the Elefsina plant multiregional footprint NEW PHASE OF TRANSFORMATION & GROWTH 1960 -1980 2019 1912 Expan
Slide 6: A Rapidly Changing World Creates New Opportunities
A RAPIDLY CHANGING WORLD CREATES NEW OPPORTUNITIES BUT NECESSITATES TRANSFORMATIONAL CHANGE 4th Industrial New building Climate change Societal changes revolution methods & materials DECARBONIZE THE HARNESS THE CORE BUSINESS POWER OF AI GO BEYOND THE EVOLVE CORE BUSINESS LEADERSHIP EMBRACE GREEN DIG
Slide 7: We Can Build on Our Leading Positions in Key Markets
WE CAN BUILD ON OUR LEADING POSITIONS IN KEY MARKETS… Cement plant Import terminal Market share USA Southeastern Europe 2 cement plants 5 cement plants #1 #3 3 Import terminals 6 ready-mix plants 82 ready-mix plants #1 #1 #2 21 aggregates quarries 8 aggregates quarries #2 #1 #1 Greece and Eastern We
Slide 8: A Number of Tangible and Intangible Strengths
… A NUMBER OF TANGIBLE AND INTANGIBLE STRENGTHS … Deep domain expertise World-leading proprietary technology in fly-ash beneficiation Recognized ESG leadership A committed core shareholder family focused on the long-term Cutting edge applications of AI in manufacturing A healthy culture, underpinned
Slide 9: A Healthy Set of Values That Support Our Strategy
…AND A HEALTHY SET OF VALUES THAT SUPPORT OUR STRATEGY Integrity Value to the Continuous Learning Delivering Sustainable customer improvement organization results development TITAN Cement Group - 2023 Investor Day 9
Slide 10: Strategic Directions 2026
STRATEGIC DIRECTIONS 2026 Marcel Cobuz Chair of the Group Executive Committee
Slide 11: Leading Provider of Building Materials Solutions
Leading provider of building materials solutions everywhere we operate, delivering long-term value to our stakeholders TITAN Cement Group - 2023 Investor Day 11
Slide 12: A Renewed Management Team with Global Industry Experience
A RENEWED MANAGEMENT TEAM WITH GLOBAL INDUSTRY EXPERIENCE Marcel Cobuz1,2 Alexandra Papalexopoulou1,2 Michael Colakides1,2 Bill Zarkalis1,2 Yanni Paniaras 1,2 Samir Cairae2 Chair of Group Chair of Strategy Committee Finance Americas Europe Technology Executive Committee Leonidas Canellopoulos1,2 Ant
Slide 13: Titan at a Glance: Improving Financial and ESG Performance
TITAN AT A GLANCE: IMPROVING FINANCIAL AND ESG PERFORMANCE Markets Served 25 Leader in corporate transparency and Sales € 2,282m performance on Operating Sites 240 climate change Employees High EBITDA € 331m 5,500 Engagement LEADER Rate Credit Rating* CO2 Reduction (vs 2020) S&P BB positive outlook
Slide 14: Accelerating Growth of Sales and Overproportional EBITDA
ACCELERATING GROWTH OF SALES AND OVERPROPORTIONAL EBITDA WITH MILESTONE CAPEX PROJECTS UNDER EXECUTION GROUP SALES GROUP EBITDA GROUP CAPEX (in billion €) (in million €) (in million €) Growth +9% +32% Maintenance & Efficiencies Other 2.5 436 126 242 117 2.3 11% 13% 22% 1.7 331 48% 47% 275 59% 41% 41
Slide 15: Monitoring Growth Drivers in Our Markets
MONITORING GROWTH DRIVERS IN OUR MARKETS Mid-Term demand Increasing demand Infrastructure Growth investments Long-term growth in our US for low-carbon tailwinds for decarbonized fundamentals and Europe cement materials and sales and and cost and aggregate digital solutions in Cementitious competitiv
Slide 16: New Strategic Priorities for Capturing Growth
NEW STRATEGIC PRIORITIES FOR CAPTURING GROWTH 01 02 03 Focus on growing US and Accelerate time to market Apply Digital and Europe attractive positions: of new green products and New Technologies: 1. Efficient supply chains cementitious solutions: 1. Digitizing operations and 2. Value Chain Integrati
Slide 17: Strengthen Portfolio and Improve Sales Mix
01 WE WILL FURTHER STRENGTHEN OUR WELL-POSITIONED PORTFOLIO AND IMPROVE THE SALES MIX THANKS TO CAPACITY INVESTMENTS AND BOLT-ONS SALES BY BUSINESS SEGMENT1,2 Cement 5% 5% 10% <45% Ready mix >12% concrete Aggregates 30% 2022 2026 60% Building products >35% & solutions >60% USA >30% EUROPE SALES BY E
Slide 18: Leveraging Recent Achievements in the US and Greece
01 LEVERAGING RECENT ACHIEVEMENTS IN THE US AND GREECE Specialty Offers for Infrastructure Upgrading our Multi-Family Residential Integrated Offers Route to Market High Rise buildings in US “Ellinikon”, Greece Terminals Capacity increase in US August 2023 April 2023 July & December 2023 TITAN Cement
Slide 19: Increase the Volume of Green Cements
02 WE WILL INCREASE THE VOLUME OF GREEN CEMENTS RESPONDING TO CUSTOMERS’ DEMAND AND LAUNCH SIGNIFICANT GREEN GROWTH INITIATIVES 21% 40% Low Carbon at least 25% less than 2022 2026 Products baseline OPC1 1 Baseline OPC clinker to cement ratio: 95% Clinker specific Scope 1 gross emissions: Avg. GNR fi
Slide 20: Accelerate Digital Deployment and Adoption of New Technologies
03 WE WILL ACCELERATE DIGITAL DEPLOYMENT AND ADOPTION OF NEW TECHNOLOGIES Testing for green End-to-end digitalized Early adopter of game manufacturing changing technologies cement solutions Pilot production Driving efficiencies of Calcined Clay in Flagship Accelerated investments to in Greece Plants
Slide 21: Keep Local, Performance-Driven Operating Model
04 WE WILL KEEP OUR LOCAL, PERFORMANCE-DRIVEN OPERATING MODEL WHILE BUILDING NEW CAPABILITIES Market driven local organizations (3 Regions, 12 P&L) Integrated supply chain and trading Regional Innovation Hubs Best operating practices and Group Program of "Plant of the Future" Digital Competency Cent
Slide 22: New Profitability and Operational Excellence Level for 2023-2026
…WE WILL REACH NEW PROFITABILITY AND OPERATIONAL EXCELLENCE LEVEL FOR THE 2023-2026 PERIOD Sales Growth EBITDA Growth ROACE EPS Net Debt/EBITDA Reach €3bn >10% p.a. >12% €3/share 1.5x-2x Low Carbon products1 Specific net direct Digitized cement CO2 emissions manufacturing & 40% Ready Mix Logistics 5
Slide 23: Summary: Strategic Directions for Green Growth
SUMMARY: STRATEGIC DIRECTIONS FOR GREEN GROWTH Focused Portfolio in attractive Focus on US and Europe Acceleration of green offers markets with above growth investments and and cementitious solutions average market growth bolt-ons with significant moves Best in Class operations Modern ways of workin
Slide 24: Titan America: Entering a New Growth Phase
TITAN AMERICA: ENTERING A NEW GROWTH PHASE Bill Zarkalis President & CEO, Titan America
Slide 25: A Leading, Fully Integrated Player in US East Coast Mega-Regions
A LEADING, FULLY INTEGRATED PLAYER IN THE FAST- GROWING MEGA-REGIONS OF THE US EAST COAST 2 Cement Plants Florida Economic 3 Import Terminals #1 Mega-Region 6 Construction Aggregate Quarries 82 Ready-Mix Plants #1 Mid-Atlantic 8 Concrete Block Plants 3 Fly Ash Processing Plants New York/ New Jersey
Slide 26: A New Multi-Year Growth Phase for Titan America
A NEW MULTI-YEAR GROWTH PHASE FOR TITAN AMERICA 2013-2023 Titan America CAGR of 9% in a Cement Market that grows at 3% Titan America Sales, MMT vs. Market Size 2006 Market Size & TA Sales Index=100 2023 LTM1 143 138 Sales $1,514 100 84 72 55 EBITDA $275m 44 FTEs2 2,374 2006 2007 2008 2009 2010 2011
Slide 27: Tapping on Dynamic Transformation Themes
TAPPING ON DYNAMIC TRANSFORMATION THEMES Decarbonization & Infrastructure Resilient Circular Economy Modernization Urbanization Refurbishment & New Construction High Performance Products Renovation Technologies TITAN Cement Group - 2023 Investor Day 27
Slide 28: Trends Driving a Multi-Year Growth Cycle in the USA
CAPITALIZING ON THE TRENDS DRIVING A POWERFUL MULTI-YEAR GROWTH CYCLE IN THE USA Operating in 3 US 10% population & economic 6% mega-regions IIJA*:46m 40% 12% MT over the Our Attractive Infrastructure next 5 years US Residential underbuilt Regions & Onshoring 15% by up to 4.5m homes, of Spending whi
Slide 29: Strategic Priorities for a New Phase of Growth
STRATEGIC PRIORITIES FOR A NEW PHASE OF GROWTH 01 02 03 Build on strong Accelerate growth with Apply technology as a local positions new materials & service critical enabler for growth models 1. Expanding logistics & 1. New green & zero-carbon 1. End-to-end digital distribution network products manu
Slide 30: Extended Logistics Network Enables Superior Service
01 EXTENDED LOGISTICS NETWORK ENABLES SUPERIOR SERVICE TO OUR CUSTOMERS AND THE PROJECT MEGA-SITES Extended network of sea and land terminals, railway and trucks, and modern infrastructure and technology supports our access into primarily growing markets Jacksonville St. Augustine Washington DC Natl
Slide 31: Expanding Our Import Terminals
01 CRITICAL INVESTMENTS EXPANDING OUR IMPORT TERMINALS AHEAD OF MEGA INFRASTRUCTURE PROJECTS Tampa & Norfolk Import Terminals Become World Class Multi-Product Hubs with $70m investment FLORIDA Schematic of the Tampa port, Florida Tampa dome, Florida VIRGINIA Schematic of the Norfolk port, Virginia N
Slide 32: Strengthening and Expanding Our Aggregates Business
01 STRENGTHENING & EXPANDING OUR AGGREGATES BUSINESS Jacksonville Strong Aggregates business in Florida while St Augustine growing in the Mid-Atlantic Natl. Gardens Capitalize on high reserves & logistics Edgewater capabilities to meet increasing market demand Orlando Cocoa Investments in Aggregates
Slide 33: Expanding Our Ready-Mix Business
01 INVESTMENT IN EXPANDING OUR READY-MIX BUSINESS AND BOOSTING ITS PROFITABILITY Investment in new sites as well as multiple portable Upscaling and modernizing our Ready-mix plants to serve marquee projects and core market truck fleet and logistics infrastructure support Lego Columbus Project Cheste
Slide 34: Investing in Cement Capacity Expansion and Green Products
02 INVESTING IN CEMENT CAPACITY EXPANSION, GREEN PRODUCTS AND DECARBONIZATION OF OUR PRODUCT MIX EVOLUTION OF CEMENT CAPACITY EVOLUTION OF THE PRODUCT MIX (in kt) for PNS + RNK for PNS + RNK 5,000 Other Other Other Products* Products* Products* Current 4,000 Type IL New types 3,000 of green Type III
Slide 35: Delivering New High-Performance Concrete Products
02 DELIVERING NEW HIGH-PERFORMANCE CONCRETE PRODUCTS PROVIDING A TOTAL CUSTOMER SOLUTION Greencrete Extended Joint Anti-Microbial Marine Concrete Ultra-High Spacing Performance Low Carbon Designed for Super Prevents corrosion and Anti-washout and Resilient Urbanization Concrete Solution. flat floori
Slide 36: End-to-End Digitalization of Titan America Operations
03 CUTTING EDGE END-TO-END DIGITALIZATION OF TITAN AMERICA OPERATIONS End-to-end Digitized Manufacturing Dynamic Logistics and Customer Management Platform Integrated Dynamic Manufacturing Control Tower Real-time Smart Quarries Optimization Lead 2 Digitally 1 engine enabled sales 3 Customer portal C
Slide 37: Strategic Projects and Investments Will Improve EBITDA
STRATEGIC PROJECTS & INVESTMENTS WILL IMPROVE EBITDA LEVELS CAPTURING THE ANTICIPATED MARKET GROWTH CAPEX EBITDA in million $ in million $ 275 … 195** 154 160 80 96 62 46 56 2020 2021 2022 2023H1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023LTM* *LTM: Last twelve months TITAN Cement Gr
Slide 38: Key Takeaways
KEY TAKEAWAYS Strong market positions in the fast-growing economic mega-regions of the East Coast A powerful multiyear growth cycle underpinned by secular residential underbuilt and boosted by federal spending in Infrastructure and Manufacturing onshoring Investments in Cement capacity, Aggregates,
Slide 39: Europe: Well-Positioned for Green Growth
EUROPE: WELL-POSITIONED FOR GREEN GROWTH Yanni Paniaras Group Executive Director Europe
Slide 40: Leading Position in a Well-Connected Cluster
LEADING POSITION IN A WELL-CONNECTED CLUSTER WITH INTEGRATED SUPPLY CHAIN CAPABILITIES Albania #1 North Macedonia Greece Bulgaria Serbia Kosovo 9 Cement EU Terminals 2023 LTM1 Plants Sales €778m 4 Terminals 35 Concrete Plants EBITDA €159m 46 Aggregates Quarries FTEs2 2,364 1 Mortars Plant * Rank in
Slide 41: Positive Regional Market Outlook
POSITIVE REGIONAL MARKET OUTLOOK CEMENT CONSUMPTION (k tons) CAGR 12,600 14,100 +5% +2% 2023E 2026E SEE GREECE EU co-funded Residential Infrastructure Non-residential * Energy efficiency, infrastructure recycling & resilience projects GREECE 48% 37% 15% Renewal of Remittances and FDI building stock
Slide 42: Greece: Infrastructure-Led Growth
GREECE: INFRASTRUCTURE-LED GROWTH ~8€bn1 investments in ongoing infrastructure projects Flyover (Thessaloniki) CEMENT CONSUMPTION (m tons) E-65 North Highway Bralos-Amfissa Highway 11.6 Kymis Avenue 7 3.4 Metro Line 4 2.4 Amfilochia Pumped Storage Hybrid “Ellinikon” – Phase I 1980 1990 2000 2010 202
Slide 43: Southeast Europe: A Consistently Strong Market
SOUTHEAST EUROPE: A CONSISTENTLY STRONG MARKET CEMENT CONSUMPTION FDI & REMITTANCES (m tons) ($ in Billions) 9.4 23 9.2 19 Belgrade Waterfront, Serbia 7.3 13 14 8 480kg/ person 2012 2015 2018 2021 2007 2010 2013 2016 2019 2022 Cement Consumption in SEE Average 2006-2020 FDI & Remittances Connecting
Slide 44: Our Strategic Priorities for Green Growth
OUR STRATEGIC PRIORITIES FOR GREEN GROWTH 01 02 03 Build on strong local Accelerate the introduction Apply technology to positions: of new green products: enable long-term growth: 1. Vertical integration 1. Low carbon cements 1. Net-zero cement 2. Value-added products 2. Cementitious alternatives 2.
Slide 45: Accelerating Vertical Integration in Ready-Mix and Aggregates
01 ACCELERATING VERTICAL INTEGRATION IN READY-MIX AND AGGREGATES: CAPACITY EXPANSION AND BOLT-ONS Building products & solutions Building products & solutions SALES BY Aggregates BUSINESS Ready mix Aggregates SEGMENT concrete (Europe) 2022 2026 Ready mix Cement concrete Cement New Ready Mix plants to
Slide 46: Developing New Value-Adding Products
01 DEVELOPING NEW VALUE-ADDING PRODUCTS FOR OUR STRONG CUSTOMER BASE MARKET CEMENT RESOURCE POSITIONING EFFICIENT & ARCHITECTURAL & GREEN PRODUCTS FOR RETAIL HIGH-PERFORMANCE CONCRETE VALUE ADDED CONCRETE PRODUCTS IN GREECE x2 2020 2023 Costa Navarino, Greece TITAN Cement Group – 2023 Investor Day 4
Slide 47: Investing in Green Products for Growth and Competitiveness
02 INVESTING IN GREEN PRODUCTS FOR GROWTH AND COMPETITIVENESS CLINKER-TO-CEMENT RATIO (%) ALTERNATIVE FUELS SUBSTITUTION RATE (%) Europe Europe -12% 2.6x % heat basis p.p. 79.7 44.7 75.7 28.7 67.6 17.2 2020 2023 2026 2020 2023 2026 High performance concretes & cements Calciner & Hydrogen technologie
Slide 48: Securing Long-Term Supply Chains for Cementitious Alternatives
02 SECURING LONG-TERM SUPPLY CHAINS FOR CEMENTITIOUS ALTERNATIVES Direct access to >17m tons of fly ash per year EU Terminals provide an outlet can complement our SCM offering, together ~100Mt pozzolan and perlite reserves (est.) for mature green markets with >230m tons of fly ash already deposited
Slide 49: Applying Technology for Net-Zero Cement
03 APPLYING TECHNOLOGY FOR NET-ZERO CEMENT… 3m t/year zero carbon cement Growing our green energy sourcing TITAN Cement Group – 2023 Investor Day 49
Slide 50: Digitally Enabled Operational Excellence
03 … AND FOR DIGITALLY ENABLED OPERATIONAL EXCELLENCE RTOs implemented in 9 units by the end of 2023; full implementation in all plants before 2026 Throughput Electricity +10% –10% Tighter performance ranges TITAN Cement Group – 2023 Investor Day 50
Slide 51: Strong Cash Flows Fuel Our Growth Plan
STRONG CASH FLOWS FUEL OUR GROWTH PLAN CAPEX EBITDA EVOLUTION in million € in million € 159 SEE SEE GREECE GREECE 96 71 51 40 29 2020 2021 2022 20231H 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023LTM TITAN Cement Group – 2023 Investor Day * LTM: Last Twelve Months 51
Slide 52: Delivering with and for the Future Generations
DELIVERING WITH AND FOR THE FUTURE GENERATIONS Building on our strong employer brand in the region, we invest in youth. 100 New hires +100% (age <29) (2022 vs 2020) 207 +200% Internships (2022 vs 2020) “Together” initiative, Greece Students Skills Internship Young Leaders Development programs empowe
Slide 53: Key Takeaways
KEY TAKEAWAYS Strong market positions: healthy markets, operational flexibility & strength and export capacity with footholds in EU via own terminals Optimistic about market fundamentals and our ability to maintain strong profitability and cash flows Vision to be the regional leader in green constru
Slide 54: Future-Ready for a Net-Zero World
FUTURE-READY FOR A NET-ZERO WORLD Leonidas Canellopoulos Chief Sustainability & Innovation Officer
Slide 55: Committed to Reducing Carbon Emissions in Line with 1.5°C
COMMITTED TO REDUCING CARBON EMISSIONS IN LINE WITH THE 1.5OC SCENARIO 1990 - 2020 2020 - 2030 2030 - 2050 Strong track record A whole new Commitment to net zero in CO2 emissions reduction level of ambition Developing products and solutions with science-based targets for a carbon-neutral world for S
Slide 56: Detailed Business Unit Roadmaps Across the Value Chain
DETAILED BUSINESS UNIT ROADMAPS WITH CONCRETE ACTIONS ACROSS THE VALUE CHAIN Growth targets to 2026: DECARBONIZATION 2.4x 2.1x 120 MW more more green clean energy alternative fuels products investments TITAN Cement Group – 2023 Investor Day *2020 reference year 56
Slide 57: Leveraging a Strong Track Record in Emissions Reduction
ACTION-READY: LEVERAGING A STRONG TRACK RECORD IN EMISSIONS REDUCTION Continuous improvement in CO2 emissions, alternative fuels and clinker content Alternative fuels substitution rate (%) Specific net CO2 emissions (Scope 1) % heat basis kg/t cementitious product 30.7 682 675 672 17.5 13.4 12.8 15.
Slide 58: Large-Scale Carbon Capture Project Selected by EU Innovation Fund
PIONEERING NEW TECHNOLOGIES: LARGE-SCALE CARBON CAPTURE PROJECT SELECTED BY THE EU INNOVATION FUND Capture 1.9M tonnes of CO2 p.a. (~1/5 of Group emissions*) Produce ~3.0M tonnes of zero-carbon cement for Athens and beyond Capture Liquefaction Ship Transport Permanent Geological Storage Other em
Slide 59: Innovating Across Three Megatrends
INNOVATING ACROSS THREE MEGATRENDS THAT ARE TRANSFORMING HOW WE BUILD Novel Construction Sustainable and Nanotechnology and 01 Methods and Technologies 02 Circular Solutions 03 Material Innovations Smart digital technologies (AI, IoT, Eco-friendly materials and Advanced materials, offering Building
Slide 60: New €40M Venture Capital Fund for Startups
NEW €40M VENTURE CAPITAL FUND TO INVEST IN EARLY-STAGE CONTECH AND GREENTECH STARTUPS 01 02 03 04 Indirect participations through Transforming low-cost High-performance, Using CO2 emissions to intermittent electricity to nature-based solutions for transform industrial serve continuous demand coastal
Slide 61: Key Takeaways: Future-Ready for a Net-Zero World
KEY TAKEAWAYS: FUTURE-READY FOR A NET-ZERO WORLD Proven track record, net zero commitment 01 and science-based targets, in line with the 1.5oC scenario Clear decarbonization roadmap with 100+ 02 value-generating initiatives across the value chain Breakthrough innovation to enable the 03 transition t
Slide 62: Next Operating Model Through Digital Transformation
010010110 001010100 101010110 100101001 010010110 001010100 101010110 100101001 NEXT OPERATING MODEL 010010110 001010100 101010110 100101001 THROUGH DIGITAL TRANFORMATION Antonis Kyrkos Chief Digital & Strategy Officer 010010110 001010100 101010110 100101001
Slide 63: Accelerate Operational Model Transformation Through Digital Platform
OUR STRATEGY: ACCELERATE OPERATIONAL MODEL TRANSFORMATION THROUGH PROPRIETARY DIGITAL PLATFORM Reinvent Operations across value chain New Digital Manufacturing Supply Chain Customer Businesses Data Foundation 01001011 00010101 00101010 11010010 1001 Core business TITAN Cement Group – 2023 Investor D
Slide 64: Building Unique Digital Capabilities and Assets
BUILDING UNIQUE DIGITAL CAPABILITIES AND ASSETS OUR UNIQUE CAPABILITIES Manufacturing Supply Chain & Customer Spare Parts >200 operations experts in digital rollouts Real time asset Inventory optimizers Optimization >50 dedicated digital & data experts Failure Prediction Digitized S&OP >15 digital i
Slide 65: Global Leaders in Digitalizing Cement Manufacturing
GLOBAL LEADERS IN DIGITALIZING CEMENT MANUFACTURING Integrated Dynamic Manufacturing Control Tower Smart Quarries, AI-based LiDAR, Drones, Real-time Autonomous Vehicles Optimization Algorithmic Spare AI-driven Parts Optimization Predictive & Prescriptive Maintenance Predictive Quality Analytics The
Slide 66: Digital Manufacturing Already Delivering Tangible Benefits
DIGITAL MANUFACTURING ALREADY DELIVERING TANGIBLE BENEFITS Real-time asset optimization (RTO) >10% productivity improvement Pioneering ‘closed loop’ AI optimizer in cement 5%-10% energy Investments1 consumption reduction ~€15m Predictive & Prescriptive Maintenance Impact >€20m p.a. Only AI, end-to-e
Slide 67: Next Frontier: Digital Supply Chain and Customer 4.0
OUR NEXT FRONTIER: CUTTING-EDGE DIGITAL SUPPLY CHAIN & “CUSTOMER 4.0” “Customer 4.0” Customer digital channel (app) Digitally enabled sales • Deployed in 50% of BUs1 Lead engine 2 Customer portal • >90% of sales through app2 1 3 CUSTOMER 6 Dynamic Logistics 4 Cutting edge AI & analytics 5 for effici
Slide 68: Our Digital Transformation Targets
OUR DIGITAL TRANSFORMATION TARGETS 2026 TARGETS 100% 100% 100% of cement of concrete of customers manufacturing logistics digitized covered by digital digitized channels ROI > 5x Debottlenecking Approx. 17m ton 10% of cement cement & 6m m3 capacity concrete TITAN Cement Group – 2023 Investor Day 68
Slide 69: Delivering Strong Shareholder Value
DELIVERING STRONG SHAREHOLDER VALUE Michael Colakides Chief Finance Officer
Slide 70: Geographic Diversification Mitigates Volatility
GEOGRAPHIC DIVERSIFICATION MITIGATES VOLATILITY Full Year EBITDA (€m) by Region USA GREECE & W. EUROPE 257 178 187 32 29 49 6 11 2012 2018 2022 2023LTM 2012 2018 2022 2023LTM SOUTHEASTERN EUROPE EASTERN MEDITERRANEAN 95 111 94 64 60 11 20 19 2012 2018 2022 2023LTM 2012 2018 2022 2023LTM TITAN Cement
Slide 71: Our 2023-2026 Growth Targets
OUR 2023-2026 GROWTH TARGETS 2026 Target 2022 Actuals (Base) Financial KPIs Profitability SALES >€3bn Growth above EBITDA Growth above sales by 2026 (>30%) market >10% p.a. growth € 2,282m € 331m ROACE Aligned with EPS * Double EPS for best sector our >12% performers €3/share shareholders 8.5% € 1.4
Slide 72: Above Market Sales Growth and Profitability Increase
ACHIEVE ABOVE MARKET SALES GROWTH PROFITABILITY INCREASE ABOVE SALES GROWTH Achieving higher sustainable profitability is a key target GROUP SALES GROUP EBITDA (in million €) (in million €) 550 3,000 >10% p.a. 18% 18% 500 16% 436 2,476 450 15% 2,282 400 350 331 1,715 1,607 300 286 275 250 200 150 10
Slide 73: Achieve Return on Capital Above Peers' Average
ACHIEVE RETURN ON CAPITAL ABOVE PEERS’ AVERAGE Profitability to be in line with the best industry performers ROACE (2022) 12.0% 8.5% TITAN 2026 Target Peers Average: 9.7%1 including Buzzi, Cementir, CRH, Heidelberg, Holcim, Vicat TITAN Cement Group – 2023 Investor Day * Company estimates 73
Slide 74: Double Earnings Per Share for Our Shareholders
DOUBLE EARNINGS PER SHARE FOR OUR SHAREHOLDERS Target to double our EPS by 20261 EPS (€/share) 3.00 1.45 1.23 0.67 0.65 0.53 0.02* 2017 2018 2019 2020 2021 2022 2026 Target 1 Excluding extraordinaries TITAN Cement Group – 2023 Investor Day * Goodwill write-off 74
Slide 75: Disciplined Investment Allocation Through the Cycle
DISCIPLINED INVESTMENT ALLOCATION THROUGH THE CYCLE Well-invested with advanced technology assets Annual Cumulative Economic crisis Reverting to growth Accelerated growth Economic crisis Reverting to growth Accelerated growth 2010 – 2014 2015 – 2022 2023 – 2026 2010 – 2014 2015 – 2022 2023 – 2026 (5
Slide 76: Accelerated Value-Focused Growth, Balanced Capital Allocation
ACCELERATED VALUE-FOCUSED GROWTH. BALANCED CAPITAL ALLOCATION TO EXPAND AND BROADEN OUR EARNINGS PROFILE GROUP CAPITAL ALLOCATION 2023 - 2026 Cement supply capacity increase (in million €) Ready-Mix business expansion (bolt-on, mobile plants & fleet) Bolt-on investments in Aggregates’ business Rest
Slide 77: Financial Planning
FINANCIAL PLANNING LEVERAGE RATIO 1,063 1,048 1,000 941 Credit rating: not below BB+ 807 869 839 912 808 751 735 762 3.1 2.8 3.1 Net Debt /EBITDA 1.5x-2.0x 2.8 2.6 Leverage: Net Debt/Equity < 60% 1.7 Q2 Q2 Q2 Q2 Q2 Q2 2018 2019 2020 2021 2022 2023 Long-term to Short-term Debt >80% Net Debt (€m) Gros
Slide 78: Q&A Session
Q&A SESSION
Slide 79: Closing Remarks
CLOSING REMARKS Marcel Cobuz Chair of the Group Executive Committee
Slide 80: Summary: Strategic Directions for Green Growth
SUMMARY: STRATEGIC DIRECTIONS FOR GREEN GROWTH Portfolio of attractive markets Focus on US and Europe Acceleration of green offers and sales mix growth investments and and cementitious solutions bolt-ons with significant moves Efficiencies thanks to Modern ways of working, Targets 2026 to increase d
Slide 81: Our Growth Targets for the 2023-2026 Period
OUR GROWTH TARGETS FOR THE 2023-2026 PERIOD Sales Growth EBITDA Growth ROACE EPS Net Debt/EBITDA Reach €3bn >10% p.a. >12% €3/share 1.5x-2x Low Carbon products1 Specific net direct Digitized cement CO2 emissions manufacturing & 40% Ready Mix Logistics 550 kg/tn 100% TITAN Cement Group - 2023 Investo
Slide 82: Leading Supplier of Building Materials Solutions
Leading supplier of building materials solutions everywhere we operate, delivering long-term value to our stakeholders TITAN Cement Group - 2023 Investor Day 82
Slide 83: Kamari Visit Highlights
KAMARI VISIT HIGHLIGHTS Angelos Kalogerakos General Manager, Greece
Slide 84: Legal Notice/Disclaimer
LEGAL NOTICE/DISCLAIMER By accepting this presentation, recipients acknowledge that they have read, understood and accepted the terms of this disclaimer. This presentation (“the Presentation”) has been prepared by Titan Cement International S.A (the “Company” and together with its subsidiaries, “the