Analyst Presentation 9M 2011

8/3/2019 Analyst Presentation 9M 2011

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Athens, November 10, 2011

Financial Results –

9 Months 2011

Analysts’

conference call



Disclaimer

2

•This document contains forward-looking statements relating to the Group’s future business,development and economic performance. It also includes statements from sources that havenot been independently verified by the Company.

•Such statements may be subject to a number of risks, uncertainties and other importantfactors, such as but not limited to:

– Competitive pressures

– Legislative and regulatory developments

– Global, macroeconomic and political trends

– Fluctuations in currency exchange rates and general financial market conditions

– Delay or inability in obtaining approvals from authorities

– Technical development

– Litigation

– Adverse publicity and news coverage, which would cause actual development andresults to differ materially from the statements made in this document

•TITAN assumes no obligation to update or alter such statements whether as a result of newinformation, future events or otherwise.



Agenda

Group Financial Results

Market Overviews

Outlook

3



4

Severe Greek Recession and Euro Affect 9M 2011 Results



13.1

10.1

2.94

11.6

8.2

2.72

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Cement(tn m)

Aggregates(tn m)

Ready-mix(m3 m)

2010A

2011A

5

9 Months

-12% (3)

(1) (2)

(1) Cement sales include clinker and cementitious materials(2) Includes Turkey at 100%(3) % represents performance versus last year

-19% (3)

-7% (3)

4.4

3.1

0.97

4.0

2.8

0.90

0.0

1.0

2.0

3.0

4.0

5.0

Cement

(tn m)

Aggregates

(tn m)

Ready-mix

(m3 m)

2010A

2011A

3 rd

Quarter

-9% (3)

-7% (3)

-7% (3)

(1) (2)

Declining Sales Volumes Driven by Weak Demand inGreece and Shutdown of N. Africa Export Markets

Loss of sales due to steep decline of demand in the Greek marketLoss of sales due to steep decline of demand in the Greek market

and closureand closure

of some targeted export markets was not offset by growth experieof some targeted export markets was not offset by growth experie nced acrossnced acrossall product lines in the US, most of the Balkans and Turkey.all product lines in the US, most of the Balkans and Turkey.



1,028.5

838.9

(45.3)(144.3)

200300

400500600

700

800900

1,000

1,100

Turnover2010

TranslationImpact

OrganicGrowth

Turnover2011

‐4.4%

‐14.0%

‐18.4%(€ in millions)

Turnover Reconciliation

21.4% 18.9%

6

260.3

219.8

(13.0)(27.4)

60

110

160

210

260

310

EBITDA2010

TranslationImpact

OrganicGrowth

EBITDA2011

‐5.0% ‐10.5%

26.2%25.3%

‐15.5%

EBITDA Margin

(€ in millions)

9 m o n

t h s

3 r d

Q u a r t e r

EBITDA Reconciliation

Turnover Reconciliation

347.7

282.0

(17.4) (48.3)

0

100

200

300

400

Turnover2010

TranslationImpact

OrganicGrowth

Turnover2011

‐5.0%‐13.9%

‐18.9%(€in millions)

EBITDA Reconciliation

98.978.5

(3.6) (16.8)

0

20

40

60

80

100

120

EBITDA2010

TranslationImpact

OrganicGrowth

EBITDA2011

‐3.6%‐17.0%

27.8%28.4%

‐20.6%

EBITDA Margin

(€in millions)

ExcludingExcluding € € 13 m negative impact from FX, organic EBITDA declined by13 m negative impact from FX, organic EBITDA declined by € € 27.4 mil, adversely impacted by27.4 mil, adversely impacted by € € 32.7m drop in Greece and32.7m drop in Greece and € € 11m in US.11m in US.

9M 2011 Results Affected by Sharp Decline in Greece Salesand Exacerbated by Strong Euro

Note: Organic growth includes changes net of translation and scope impacts.



98.3

52.9

(39.7)

(13.0)4.1 (2.7) 0.7

7.0 (2.1) (12.1)12.3

0

20

40

60

80

100

120

NPAT2010

EBITDAOrganicGrowth

EBITDATranslation

Impact

EBITDAOne-off

Depn. Interest Taxes Other MinorityInterest

FX Gains/ Losses

NPAT2011

NPAT after Minorities Adversely Impacted by WeakMarkets and Strong Euro

7

(€ in millions)

9M 2011 Group Net Profit After Taxes and Minorities9M 2011 Group Net Profit After Taxes and Minorities(Reconciliation vs. 9M 2010)(Reconciliation vs. 9M 2010)



FX Impact in Million €

(Variance)Q1 Q2 Q3 9M

EBITDATranslation Impact -2 -7 -4 -13

FX Gains/Losses -14 -6 +8 -12

30 th

Jun2011

Δ

Q3 30 th

Sep2011

Net Equity -88 +53 -35

Net Debt -20 +15 -5

Working Capital -5 +2 -3

8

P & L

B S

Variance Variance

30/9/2011 31/12/2010 30/9/11 vs 31/12/10 Avg 9M 11 Avg 9M 10 Avg 9M 11 vs 9M 10

€1 = USD 1.35 1.34 -1% 1.41 1.32 -7%€1 = EGP 8.05 7.76 -4% 8.34 7.36 -13%1USD=EGP 5.97 5.80 -3% 5.93 5.59 -6%€1 = RSD 101.17 105.50 4% 101.95 101.66 0%€1 = ALL 140.95 138.77 -2% 140.43 137.48 -2%€1 = TRY 2.51 2.07 -21% 2.29 2.00 -15%

Bulgarian Leva fixed at €1 = BGN 1,956

No change in €/MKD exchange rates , at €1 = 61,51A negative variance represents a devaluation of the bas e currency vs. the Euro

Balance Sheet P&L

Strengthening of the Euro in 9M 2011

Leads to a SubstantialDrop in Profitability and Net Equity

FX Gains/Losses (Variance)

Country LocalCurrency

LoanCurrency

9M 2011

Egypt EGP EUR +4.2

Turkey TRY EUR, USD -8.8

Albania ALL EUR -4.3

Other -3.3

Total -12.2



220

9

4

5

(30)

(42)

(41)

(107)

0

50

100

150

200

250

EBITDA 9M2011

Non-CashItems

CapEx OperatingWorkingCapital

Acquisitions/ Disposals

Interest, Tax,Dividends,Accruals

Net FX Impact Change inNet Debt30/09/11

Sources and Uses of Cash(€ in millions)

9

Operating Free Cash Flow

€107m

Group Generates €107m in Operating Free Cash Flow in 9M 2011

€ € 107m Operating Free Cash Flow covers107m Operating Free Cash Flow covers € € 92.3m of finance/tax/dividends related92.3m of finance/tax/dividends relatedpayments and reduces Net Debt bypayments and reduces Net Debt by € € 9m9mNote: NonNote: Non --cash items includes Egypt clay fee returncash items includes Egypt clay fee return



11141154

1028 1029

971 988

917873

777 777745

768

700

900

1,100

1,300

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Net debt

(€ in millions)

Deleveraging Remains a Top Priority for the GroupDeleveraging Remains a Top Priority for the Group

Group Net Debt

10

2008 2009 2010 2011



Agenda


Market Overviews

Outlook

11



€219.8m Group EBITDA Driven Mainly by SEE and EMED

9M 2011 Turnover (€m) 9M 2011 EBITDA (€m)

29%

38%

27%

25%

14%

9%

30%

28%

15%

42%

-11

-11

30%

20%

73%

55%

268.9

181.3

247.9

330.4

215.8

183.4

229.4

210.3

0 100 200 300 400

E. MED.

SEE

USA

GREECE

2011 ACT 2010 ACT

‐20%

1%

‐7%

‐36%25%

26%

26%

18%

22%

24%

27%

32%

105.5

72.6

6.8

75.4

108.1

73.4

-4.3

42.7

-10 0 10 20 30 40 50 60 70 80 90 100110120

E.MED.

SEE

USA

GREECE

2011 ACT 2010 ACT

2%

1%

‐43%

41%

49%

28%

33%

3%

‐2%

28%

20%



13

Greece Turnover Reconciliation Greece EBITDA Reconciliation

330.4

210.3

(120.0)

0

50

100

150

200

250

300

350

Turnover

2010

Organic

Growth

Turnover

2011

‐36.3%(€ in millions)

‐36.3%

75.4

42.7

(32.7)

0

10

20

30

40

50

60

70

80

EBITDA2010

OrganicGrowth

EBITDA2011

‐43.3%

22.8% 20.3%EBITDA Margin

(€ in millions)

‐43.3% 9 M o n t h

s

Profitability in Greece Plummets amidst Severe Recession

Greek recession leads building activity to a tailspin.

Dramatic decline in sales volumes across all products and market segments.

Export volume almost at 1/3 of 2010 due to collapse of North African

exports.

Selling prices quarter-on-quarter decline in all products.

Gross margin supported by sale of excess Carbon rights.

Initiatives to curtail fixed cost. SG&A reduced by 13% in 9M 2011.




14

US Turnover Reconciliation US EBITDA Reconciliation

Continued Weakness in the USA

247.9229.4

(15.5)(3.1)

100

120

140

160

180

200220

240

260

Turnover2010

TranslationImpact

OrganicGrowth

Turnover2011

‐1.2%‐6.3%

‐7.5%

(€in millions)

9 M o n t h s

6.8

(4.3)

0.3 (11.4)

-4

-2

0

2

4

6

8

EBITDA2010

TranslationImpact

OrganicGrowth

EBITDA2011

(€ in millions)

4.4%

Economic recovery slow and fragile. Housing market remains weak.

Sales volume growth across all products, as a result of targeted activities.

Selling prices stabilize at the low levels of year-end 2010 for all

products.

ST profitable growth continues with sales up by 15%.

Fuel & Energy costs stable due to lower environmental surcharges

andefficiency initiatives




Continued Growth in SE Europe, whilst ProfitabilityRemains Stable

15

SEE EBITDA ReconciliationSEE Turnover Reconciliation

181.3 183.43.1(1.0)

130

140

150

160

170

180

190

Turnover2010

TranslationImpact

OrganicGrowth

Turnover2011

1.7%‐0.6%

1.2%(€ in millions)

72.6 73.40.9(0.2)

20

30

40

50

60

70

80

EBITDA2010

TranslationImpact

OrganicGrowth

EBITDA2011

40.0%40.1%

1.2%

EBITDA Margin

1.0%(€ in millions)

‐0.3%

9 M o n t h s

Modest macroeconomic improvement in the region leads to growingdemand in construction materials.

5% average cement sales growth in the region.

Cement prices grow or stabilize quarter on quarter but are still below

the 9M 2010 levels.

Increasing fuel & energy costs clip margins. New alternative fuelsinvestment in Bulgaria bears fruit.

Gross margin supported by sale of excess Carbon rights ex Bulgaria.




16

46.4%41.4%

EMED EBITDA ReconciliationEMED Turnover Reconciliation

105.5 108.115.7(13.1)

0

20

40

60

80

100

120

EBITDA2010

TranslationImpact

OrganicGrowth

EBITDA2011

2.4%

14.9%‐12.4%

EBITDA Margin 50.1%39.2%

(€in millions)

268.9

215.8

(28.7)

(24.3)

100

120

140

160

180

200

220

240

260

280

Turnover2010 TranslationImpact OrganicGrowth Turnover2011

‐19.7%

‐9.1%

‐10.7%

(€ in millions)

9 M o n t h s

Political volatility in Egypt affects the construction industry.

In Egypt sales shrink by 9%, affected by weak July-August demand andincreasing S/D imbalance.

EBITDA in Egypt affected by €25m positive contribution of clay fee case,

partly offset by increased profit sharing and legal settlements.

More than 5MT new market capacity in Egypt comes gradually onstream, pressuring prices.

In Turkey double-digit sales growth further accelerates in Q3. Domesticprices continue on an upward trend.

EMED Region Delivers Solid Performance AmidstWeakening Market Fundamentals in Egypt




Agenda


Market Overviews

Outlook

17



• Increasing Global uncertainty• Greece: Downward trend continues

• US: Stability at very low levels

• South Eastern Europe: Upside opportunity more visible

• Eastern Med: Growth in Turkey, short-term slowdown in Egypt

• Energy costs stabilizing• Pricing power differs by region

• Focus remains on:

Free cash flow generation

Productivity initiatives

Reducing carbon footprint

Bolt –on growth initiatives

Outlook 2011

18

Documents

Analyst Presentation 9M 2011