Titan S.a. · EURONEXT:TITC
Titan — Titan Cement Group — Q1 2018 Earnings Presentation
19 slides from Titan's earnings presentation, May 24, 2018
Slide 1: Financial Results – 1st Quarter 2018
Financial Results – 1st Quarter 2018 Investors’ and Analysts’ Briefing Athens, 24 May 2018 Q1 2018
Slide 2: 2018 Highlights
2018 Highlights Adverse weather in the US and SEE resulted to slow start to the year while the Q1 weakness of the USD resulted to a decline in Turnover to €323m (down €39m of which €36m from FX) and EBITDA to €44m (down €7.6m of which €5.7m from FX). In Q1 2018 the Group recorded Net Profit of €
Slide 3: Bad Weather and Strong € Eroded Financial Performance
Bad Weather and Strong € Eroded Financial Performance. Stable Turnover and EBITDA Before FX Translation. Group Turnover Group EBITDA Group NPAT € in m illions -10.9% € in m illions € in m illions -124.4% -14.9% 400 -39.3 100 10 361.8 322.5 300 75 5 1st Quarter 51.1 -7.6 4.9 0.9 -3.9 200 50 43.5 0 10
Slide 4: Mixed Sales Volume Performance Amongst Countries Affected by Weather Conditions
Mixed Sales Volume Performance Amongst Countries Affected by Weather Conditions 1st Quarter Sales Volume 2017A 2018A -3%(3) 4.2 4.1 +10%(3) -3%(3) 3.8 4.1 1.31 1.26 (2) Cement (1), (2) Aggregates (2) Ready-mix (tn m) (tn m) (m3 m) * Intragroup product sales for processing are included in sales volum
Slide 5: Neutral OFCF, Lower CAPEX and Seasonal Increase in Working Capital
Neutral OFCF, Lower CAPEX and Seasonal Increase in Working Capital Sources and Uses of Cash Q1 Operating Free Cash Flow (€ in millions) 50 1 (19) 40 44 €-1m 30 (27) 20 10 (12) (15) 0 -10 (16) 14 -20 -30 EBITDA Q1 Non-Cash CapEx Operating Acquisitions Interest, FX Impact Increase in 2018 Items Workin
Slide 6: Stable Net Debt Levels
Stable Net Debt Levels Group Net Debt Evolution (€ in millions) Net debt 1,200 1,100 1112 1,000 900 986 988 930947 800 874 831 700 787758 739739 732 754 707 713 716 723738 600 674 660 650 661 632 630 621605 602 596 578 500 562 552563 541 541 509 490529 400 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q
Slide 7: Market Overviews
Market Overviews Q1 2018
Slide 8: US Performance Affected by Adverse Weather
US Performance Affected by Adverse Weather. Demand Fundamentals and Pricing Trends Remain Positive. USA Turnover USA EBITDA € in m illions -13.9% € in millions -14.7% 221.2 -30.6 40 200 190.6 34.1 -5.0 29.1 1st Quarter 30 150 20 100 50 10 0 0 Turnover Variance Turnover EBITDA Variance EBITDA 2017 20
Slide 9: Greece Further Impacted by Weak Domestic Demand and Lower Export US$ Revenues
Greece Further Impacted by Weak Domestic Demand and Lower Export US$ Revenues Greece Turnover Greece & Corporate EBITDA € in m illions -8.1% € in m illions -51.9% 200 40 1st Quarter 150 30 100 20 57.6 -4.7 52.9 50 10 -2.3 4.4 2.1 0 0 Turnover Variance Turnover EBITDA Variance EBITDA 2017 2018 2017 2
Slide 10: SEE Q1 Volatile Demand Affected by Unfavorable Weather
SEE Q1 Volatile Demand Affected by Unfavorable Weather. SEE Turnover SEE EBITDA € in m illions -9.7% € in m illions 4.0% 200 40 1st Quarter 150 30 100 20 50 37.9 -3.7 34.2 10 3.8 0.1 3.9 0 0 Turnover Variance Turnover EBITDA Variance EBITDA 2017 2018 2017 2018 10.0% EBITDA Margin 11.5% In SEE Turn
Slide 11: Egypt's Results Recovered Due to Higher Prices
Egypt’s Results Recovered Due to Higher Prices EMED Turnover EMED EBITDA € in m illions -0.9% € in m illions -5.5% 200 40 150 30 1st Quarter 100 20 45.2 -0.4 44.8 8.9 -0.5 8.4 50 10 0 0 Turnover Variance Turnover EBITDA Variance EBITDA 2017 2018 2017 2018 19.7% EBITDA Margin 18.8% €-5.9m translation
Slide 12: Q1 2018 – Joint Ventures' Performance
Q1 2018 – Joint Ventures’ Performance Market in Brazil in early stages of recovery. Apodi recorded growth in sales volumes and BRL revenues. Prices in Apodi region increased 15% y-o-y in BRL, stable in € terms. In Turkey market demand relying on large infrastructure projects. Price increases i
Slide 13: Outlook
Outlook 13 Investors' Q1 2018 and Analysts' Presentation
Slide 14: Outlook 2018
Outlook 2018 • Short and medium term prospects for construction continue strong. Tax reform USA providing boost. • Focus on delivering high profitability, capitalizing on recent investments. • Domestic demand at very low levels despite improving macros. Greece • Focus on cost competitiveness and opt
Slide 15: Appendix
Appendix 15 Investors' Q1 2018 and Analysts' Presentation
Slide 16: Titan Group Income Statement
Titan Group Income Statement In Million Euros, unless otherwise stated 2018 2017 Variance Net Sales 322.5 361.8 -10.9% Cost of Goods Sold -244.8 -275.2 -11.1% Gross Margin (before depreciation) 77.7 86.6 -10.3% SG&A -34.7 -35.7 -2.9% Other Income / Expense 0.5 0.3 105.9% EBITDA 43.5 51.1 -14.9% Depr
Slide 17: Titan Group Balance Sheet
Titan Group Balance Sheet In Million Euros, unless otherwise stated 31 Mar' 18 31 Dec' 17 Variance Property, plant & equipment 1,438.4 1,466.0 -27.6 Intangible assets and goodwill 338.9 346.0 -7.1 Investments/Other non-current assets 193.8 189.4 4.4 Non-current assets 1,971.1 2,001.4 -30.3 Inventori
Slide 18: 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 19: Thank you
Thank you 19 Investors' Q1 2018 and Analysts' Presentation