Titan S.a. · EURONEXT:TITC
Titan — Titan Cement International — FY2022 Earnings Presentation
29 slides from Titan's earnings presentation, Mar 22, 2023
Slide 1: Financial Results – Full Year 2022
Financial Results – Full Year 2022 TCI Investors’ and Analysts’ Presentation Athens, 22 March 2023 OYMPIA ODOS, GREECE1
Slide 2: Full Year 2022 Results
Full Year 2022 Results Record sales and profitability growth in all markets in a challenging environment • Second consecutive year of record Group sales of €2,282.2m, up 33.1%, following a very strong Q4. US and Greece represent over 70% of Group sales. • EBITDA rose by 20.3% to €331.2m, with all re
Slide 3: Margin restoration recorded in Q4
Margin restoration recorded in Q4 Sales and profitability growth as price increases and cost efficiencies covered inflated cost basis Group Sales Group EBITDA Group NPAT Full Year 4Q (all figures in € millions) Full Year 2022 Results – Investors' and Analysts' Presentation 3
Slide 4: Sales and EBITDA growth across all geographies. Strong H2.
Sales and EBITDA growth across all geographies. Strong H2. Turnaround in second half profitability through effective pricing Sales Quarterly Evolution EBITDA Quarterly Evolution +41.8% +37.3% +7.1% +25.1% +73.9% +29.0% +22.6% 620 93 95 97 626 87 581 77 455 -17.3% 450 442 452 371 56 56 46 (all figure
Slide 5: Record Sales and best EBITDA result since 2009
Record Sales and best EBITDA result since 2009 Variance In Million Euros, unless otherwise stated FY 2022 FY 2021 FY 22 vs FY 21 Sales 2,282.2 1,714.6 33.1% Raw materials and consumables used -635.6 -481.3 32.1% Energy cost -479.8 -279.3 71.8% Distribution expenses -236.0 -194.2 21.5% Other cost of
Slide 6: Sharp rise at Group level of electricity and fuel costs
Sharp rise at Group level of electricity and fuel costs Electricity Cost Increases (€/MWh) Var 2022 Var 2022 vs 2020 vs 2021 Titan Group Energy Cost (€m) Greece +59.0% +30.3% Var 2022 Var 2022 2020 2021 2022 vs 2020 vs 2021 USA +85.0% +40.8% Group Energy Cost 204,269 279,296 479,790 134.9% 71.8% Egy
Slide 7: Cost factors overview
Cost factors overview Improvement of critical cost factors through H2 2022 WTI Brent Actual Futures / Forecasts as of 8/3/2023 Full Year 2022 Results – Investors' and Analysts' Presentation 7
Slide 8: Rise in domestic cement volumes and in RM concrete
Rise in domestic cement volumes and in RM concrete Lower cement exports and aggregates volumes Full Year Sales Volumes 4th Quarter Sales Volumes +2% +2% -5% -5% -73% +2% +2% -91% * Intragroup product sales for processing are included in sales volumes 1) Cement sales in Domestic markets including cli
Slide 9: Net debt rose by €84m to €797m
Net debt rose by €84m to €797m Extensive CAPEX program (15-year high). Higher working capital to support higher Sales Sources and Uses of Cash FY 2022 Operating Free Cash Flow (€ in millions) 22 (2 42) 350 3 31 €19m 250 150 (9 2) 50 4 (6 1) (8 4) (3 0) -50 (1 6) 0 -150 EBITDA Non-Cash CapEx Operatin
Slide 10: CAPEX at €242m aligned with Group’s strategic objectives
CAPEX at €242m aligned with Group’s strategic objectives Growth, cost saving, logistics & green investments at full speed. Increased cost due to inflation and strong US$. Capital Expenditure (€ millions) Major CAPEX projects Tampa Dome Norfolk Dome Kamari Calciner SEE Hydrogen Injection Florida RMC
Slide 11: Group net debt at €797m. Lower leverage ratio at 2.37x
Group net debt at €797m. Lower leverage ratio at 2.37x Strong funding base. Over 80% of debt in fixed rates or hedged long term. Group Net and Gross Debt Evolution (€m) * Net Debt / EBITDA calculation as per the RCF covenant rules. Facilities by Type / Utilization (€m) Maturity Profile (€m) 371 Leas
Slide 12: Performance by Region
s @ TITAN Performance by Region
Slide 13: All Regions posted high Sales and EBITDA growth
All Regions posted high Sales and EBITDA growth America and Europe account for c.90% of Sales and EBITDA Group Sales Group EBITDA Group Total Assets €256m €20m €117m +48%* +66%* €443m €1314m €188m 4% 11% +34%* 6% €1,362m €386m +19%* 15% €95m +33%* 17% +16%* Full Year 29% €2,994m 46% €2,282m €331m +3
Slide 14: Titan America strong H2 performance led to solid full year results
Titan America strong H2 performance led to solid full year results Dynamic pricing and cement volume growth led to margin improvement Operating units USA Sales USA EBITDA 2 Cement plants 8 Quarries 82 Ready-mix plants $1,377m $195m 8 Concrete block plants Year FullYear $187m 4 Fly ash processing pla
Slide 15: Sales and EBITDA growth in a rising market in Greece
Sales and EBITDA growth in a rising market in Greece Accelerating domestic demand and cost efficiency improvements Operating units Greece Sales Greece & Corporate EBITDA 3 Cement plants 1 Grinding plant 25 Quarries Year FullYear 29 Ready-mix plants 1 Dry mortar plant Full 2 Processed engineered fuel
Slide 16: Solid performance in SEE despite market slowdown
Solid performance in SEE despite market slowdown Efficient coverage of market volume needs and adaptive pricing to spikes in energy costs Operating units SEE Sales SEE EBITDA 5 Cement plants 21 Quarries 6 Ready-mix plants Year FullYear 1 Processed engineered fuel facilities Full Principal products /
Slide 17: EMED improved financial performance in a volatile environment
EMED improved financial performance in a volatile environment Resilient operations in Turkey and Egypt in the face of macroeconomic and monetary challenges Operating units EMED Sales EMED EBITDA 3 Cement plants 1 Grinding plant 13 Quarries 6 Ready-mix plants Year FullYear 2 Processed engineered fuel
Slide 18: Brazil – Joint Venture: Cimento Apodi
Brazil – Joint Venture: Cimento Apodi* $ 1,069.3 Operating units FY 2022 Apodi (100%) 1 Cement plants 1 Grinding plant 2022 2021 4 Quarries Sales (€m) 115.9 83.8 4 Ready-mix plants EBITDA (€m) $ 200.7 $ 200.6 21.1 19.5 Principal products / activities * Consolidated on an equity basis Cement Ready-mi
Slide 19: Digitalization - Decarbonization
Digitalization - Decarbonization
Slide 20: Digital transformation
Digital transformation Applying the tools of the fourth industrial revolution to our business Manufacturing Productivity & Reliability Factor Improvements Manufacturing • AI-based Real-Time Optimizers (RTOs) o Already deployed in 8 plants in US, Greece & SE Europe o Both TITAN’s plants in the US liv
Slide 21: Best annual reduction in CO2 emissions in the last decade
Best annual reduction in CO2 emissions in the last decade Accelerating climate change mitigation efforts Specific net CO2 emissions (Scope 1) ▪ - 5% CO2 emissions vs. 2021 level 700 682 (kg/t cementitious product) 675 672 ▪ Record high 17.5% alternative fuels substitution 652 650 ▪ Record low 78.4%
Slide 22: Acceleration towards lower carbon products and solutions
Acceleration towards lower carbon products and solutions Alternative fuels substitution rate (%) Clinker to cement ratio (%) 20% 85% 17.5% Hundreds 15.5% 83.1% 82.4% 15% 13.4% 12.8% 83% 81.9% 11.8% 81.0% % heat basis 10% 80% 78.4% 5% 78% 0% 75% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 The o
Slide 23: Outlook
Outlook
Slide 24: Outlook
Outlook • Challenging global conditions still signal towards mild slowdown rather than a recession. ➢ US economy remains strong. Our privileged geographic locations and leading market positions will support our US sales volumes despite housing sector headwinds. Florida’s economic and population grow
Slide 25: Appendix
@ TITAN Appendix
Slide 26: Group Balance Sheet 31 December 2022
Group Balance Sheet 31 December 2022 Variance In Million Euros, unless otherwise stated 31 Dec' 22 31 Dec' 21 Dec 22 vs Dec 21 Property, plant & equipment and inv. Property 1,675.7 1,556.4 119.3 Intangible assets and goodwill 364.7 363.4 1.3 Investments/Other non-current assets 141.7 124.8 16.9 Non-
Slide 27: Q4 Sales and Profitability by Region
Q4 Sales and Profitability by Region Sales USA GREECE & WE SEE EMED (all figures in € millions) EBITDA USA GREECE & WE SEE EMED 27 Full Year 2022 Results – Investors' and Analysts' Presentation
Slide 28: 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
Slide 29: Thank you!
Thank you! We invite you to visit our corporate’s website dedicated section “Net Zero” & “Digitalization”, as we are shaping a more sustainable nature-positive future for all and creating an ecosystem of digital innovation. Full Year 2022 Results – Investors' and Analysts' Presentation 29
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