Titan S.a. · EURONEXT:TITC
Titan — Titan Cement International — FY2023 Earnings Presentation
30 slides from Titan's earnings presentation, Mar 13, 2024
Slide 1: Financial Results - Full Year 2023
Financial Results - Full Year 2023 TCI Investors’ and Analysts’ presentation Athens, 13 March 2024 1
Slide 2: Full Year 2023 Highlights (1/2)
Full Year 2023 Highlights (1/2) Above market performance resulted in record sales and profitability • Third consecutive year of record growth. Group sales at €2,547m, up by 11.6%; US and Europe contributed over 90% of Group sales and profitability. • Record EBITDA 2023 performance of €540.3m, up by
Slide 3: Full Year 2023 Highlights (2/2)
Full Year 2023 Highlights (2/2) Above market performance resulted in record sales and profitability • Reduction of specific net CO2 emissions by 11 kg YoY to 608 kg/ton of cementitious product thanks to improved alternative fuels’ usage and lower clinker-to-cement ratio; share of green products reac
Slide 4: Profitability growth in 2023 supported margin expansion
Profitability growth in 2023 supported margin expansion. Group Sales Group EBITDA +63% (€ m) +12% (€ m) +33% +7% +20% -4% 4 Full Year 2023 Results – Investors’ and Analysts’ Presentation
Slide 5: 7th consecutive quarter of Sales and EBITDA growth
7th consecutive quarter of Sales and EBITDA growth. Group Sales Quarterly Evolution Group EBITDA Quarterly Evolution (€ m) (€ m) +10% +6% +6% +29% +42% +37% +64% +44% +29% 641 663 655 +49% 588 581 626 620 156 144 +23% 134 +132% 455 +24% +74% +7% 107 95 100 90 -17% 46 $399 $389 $406 $402 $298 $347 $3
Slide 6: Volume growth across key geographies capitalizing on leading market positions
Volume growth across key geographies capitalizing on leading market positions. Full Year 2023 Sales Volume 4th Quarter Sales Volume +2% +4% +5% +2% +8% +7% (1), (2) (2) (2) (2) (1), (2) (2) (2) (2) * Intragroup product sales for processing are included in sales volumes (1) Cement sales include clink
Slide 7: Sales growth while energy cost performance improves. Record EPS and ROACE
Sales growth while energy cost performance improves. Record EPS and ROACE. Variance Variance In Million Euros, unless otherwise stated FY 2023 FY 2022 Q4 2023 Q4 2022 FY 23 vs FY 22 Q4 23 vs Q4 22 Sales 2,547.0 2,282.2 11.6% 654.8 620.4 5.5% Cost of Sales -1,768.0 -1,749.4 1.1% -441.2 -458.6 -3.8% G
Slide 8: Improved energy cost performance in 2023
Improved energy cost performance in 2023. Still 70% up vs 2018-2021. Price increases offset cost pressures. Energy Cost Cost of Goods Sold and SG&A (excl. Energy) (€ m) (€ m) • Elevated costs were offset by higher prices, leading to improved margins. • Real Time Optimizers implementation assisted in
Slide 9: Operating Free Cash Flow at €293m despite more high CAPEX
Operating Free Cash Flow at €293m despite more high CAPEX. Sources and Uses of Cash FY 2023 Operating Free Cash Flow (€ m) 600 5 40 30 (2 24) €293m 500 400 (5 4) (1 ) (5 8) 300 (4 3) 200 (6 7) 14 1 37 100 0 EBITDA Non-Cash CapEx Operating Acquisitions Return to Interest & Taxes & FX Impact Decrease
Slide 10: High CAPEX maintained at €224m
High CAPEX maintained at €224m. Investments contribute to Group improved performance and are aligned with long-term strategy. Capital Expenditure (€ in millions) Major 2023 CAPEX projects Tampa Dome Norfolk Dome Titan America RMC Trucks Florida Silos Kamari Kiln Line #1 Calciner Florida Quarry New D
Slide 11: Net Debt dropped to €660m
Net Debt dropped to €660m (- €137m vs December 2022). Leverage ratio further declined to 1.18x. (€ m) Group Net and Gross Debt Evolution * Net Debt/EBITDA calculation as per the RCF covenant rules Facilities by Type/Utilization (€m) Maturity Profile (€m) 11 Full Year 2023 Results – Investors’ and An
Slide 12: Overview of markets performance
Overview of markets performance 12
Slide 13: All Regions posted significant profitability growth
All Regions posted significant profitability growth. Group Sales Group EBITDA €33m €240m +70%* -6%* 9% 6% €422m €147m Full Year +10%* 17% +54%* €296m €1477m 27% +13%* +60%* €2,547m €540m +11.6%* +63.1%* 55% 58% 16% €408m 12% +24%* €65m +103%* USA Greece & WE SEE EMED USA Greece & WE SEE EMED * Varia
Slide 14: In the US profitable growth continued
In the US profitable growth continued, leveraging on strong market positions and operational excellence. Elevated price levels. New infrastructure projects under construction. USA Sales USA EBITDA $1,595.9 Full Year $1,368.8 $319.3 +16.6% +67.1% $191.1m • US Sales rose by +16.6% in $ terms (+13.1% i
Slide 15: Strong domestic Greek market. Growth in all segments and products
Strong domestic Greek market. Growth in all segments and products. Improving profitability as domestic and export prices rise and energy costs are contained. Greece & WE Sales Greece & Corporate EBITDA Full Year $ 200.7 • Sales in Greece and EU Terminals reached €408m (+22.0%). Robust growth in dome
Slide 16: Growth pace continues in SEE markets
Growth pace continues in SEE markets. Residential sector and infrastructure projects drive demand. SEE Sales SEE EBITDA Full Year $ 200.7 • SEE Sales rose by 9.5% to €422m. Growth in most markets. Resilient sales prices. • EBITDA reached a new record level of €147m (+54.4%) driven by the partial rev
Slide 17: Challenging economic environment in EMED
Challenging economic environment in EMED. Strong market growth in Turkey; Softer demand in Egypt. EMED Sales EMED EBITDA Full Year $ 200.7 • EMED Sales decreased by -6.1% to €240m, impacted by severe loss of value in local currencies and weak demand and prices in Egypt. In local currency, Sales grew
Slide 18: Brazil – Joint Venture: Cimento Apodi profitability improved
Brazil – Joint Venture: Cimento Apodi profitability improved. $ 1,069.3 FY 2023 Apodi (100%) 2023 2022 Sales (€m) 128.2 115.9 $ 200.7 $ 200.6 EBITDA (€m) 24.4 21.1 * Consolidated on an equity basis • In 2023, cement demand in Brazil declined by 1.7% to 61.8m tons affected by high interest rates and
Slide 19: Decarbonization - Digital
Decarbonization - Digital 19
Slide 20: Digital transformation
Digital transformation Unique digital capabilities and assets: already delivering tangible benefits Logistics optimization & enhanced customer experience • “Customer 4.0” o AI-enabled Dynamic Logistics solution for RMC developed and deployed Manufacturing in pilot areas in the US Operations o Proact
Slide 21: TITAN Group ESG performance 2023 at a glance
TITAN Group ESG performance 2023 at a glance Strong performance across all focus areas Growth-enabling work Decarbonization Positive local impact Responsible sourcing environment Lost Time Injury CO2 Emissions1 Frequency Rate4 0.35 Local Alternative raw (vs. 2020) –10% among sector’s spend5 67.8% ma
Slide 22: Spotlight on decarbonization
Spotlight on decarbonization Continuous reduction of CO2 footprint, while preparing for a net zero future Specific net CO2 emissions (Scope 1) 19.6% (% heat basis) 17.5% substitution 15.5% Alternative 672 12.8% fuels (kg/t cementitious 652 619 product) 608 2020 2021 2022 2023 81.9% 81.0% Clinker to
Slide 23: Continuous improvement in ESG Ratings
Continuous improvement in ESG Ratings Solidifying the Group’s position among top performers in the sector Full Year 2023 Results – Investors’ and Analysts’ Presentation 23
Slide 24: Innovation highlights
Innovation highlights Investments and research to develop the next generation of innovative products and solutions €40m Corporate VC Fund R&I Initiatives Innovation Culture With investments in: • Further development of 3D printing • First ever TITAN Ideation Challenge with • Energy Storage solutions
Slide 25: Outlook
Outlook • Positive Outlook for the Group as market demand fundamentals support improved volumes and pricing in our attractive markets in the US & Europe. ➢ In the US, federal funds drive infrastructure and non-residential construction growth. Favorable demographics, low housing inventories and expec
Slide 26: Appendix
Appendix 26
Slide 27: Group Balance Sheet 31 December 2023
Group Balance Sheet 31 December 2023 Total Equity higher by €159m (+11%) while Net Debt reduced by 17%. Variance In Million Euros, unless otherwise stated 31 Dec' 23 31 Dec' 22 Dec 23 vs Dec 22 Property, plant & equipment and inv. Property 1,699.9 1,675.7 24.2 Intangible assets and goodwill 353.7 36
Slide 28: 4th quarter
Growth pace continued in Q4 leading to strong full year performance. Group Sales Group EBITDA Group NPAT (€ m) (€ m) (€ m) 4th quarter Full Year 2023 Results – Investors’ and Analysts’ Presentation 28
Slide 29: Q4 Sales and Profitability by Region
Q4 Sales and Profitability by Region Sales USA GREECE & WE SEE EMED $ 265.9 $402 $368 $399.9 $356.4 EBITDA USA GREECE & WE SEE EMED $ 41.2 $54.2 $45.5 $82.2 $60.0 Full Year 2023 Results – Investors’ and Analysts’ Presentation 29
Slide 30: 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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