corporate presentation - titan...1. an established group with a strong shareholder base, dedicated...

Corporate presentation

June 2019

Table of Contents

1. TITAN Group at a glance

2. Key investment highlights

3. Summary Financials Q1 2019

4. Review of key markets

5. Appendix

2 June 2019Corporate Presentation


TITAN Group at a glanceOverview, history, objectives and strategy

Governing objective

• To grow as a multi-regional, vertically integrated building

materials producer, combining an entrepreneurial spirit

and operational excellence with respect for people,

society and environment

Objectives and strategic priorities

1902 1912 1960-1980

Listing on the

Athens Stock

Exchange

Titan Cement

founded, Elefsina

plant1962: Second cement plant in

Greece, Thessaloniki

1968: Third cement plant,

Drepano

1976: Fourth cement plant,

Kamari

1990-2019

Titan is one of the oldest Greek corporates with a long history of over 115 years and a strong track record of international diversification

International expansion

• Founded in 1902, Titan is a leading international, vertically integrated

cement and building materials producer

• Cement production capacity of c.27m MT with operations in 14 countries

• 2018 sales volumes: 18.2m MT cement, 17.1m MT aggregates, 5.29m m3 RMC

• Market capitalization: c.€1.5bn; enterprise value: c.€2.4bn (25 June ’19)

• S&P rating: BB+ with negative outlook

Titan’s key milestones

Company overview

Strategic priorities

• Geographical diversification

• Continuous competitive improvement

• Vertical integration

• Focus on Human Capital and Corporate Social Responsibility

International expansion started (1992) with the acquisition of 60% stake in • Roanoke

Cement, Virginia, USA and was followed by acquisitions: • Cementarnica Usje, North

Macedonia (1998), • Beni Suef Egypt (50% JV – 1999), • 100% of Roanoke, Virginia

and Pennsuco, Florida, USA (2000), • Kosjeric, Serbia and • Alexandria PCC, Egypt

(50% JV, 2002), • Zlatna Panega, Bulgaria (2003), greenfield • Antea plant, Albania

(2007), • Adocim, Turkey (50% JV) and • 100% of Beni Suef and APCC Egypt (2008),

• Sharr plant, Kosovo (2010), • Cimento Apodi, Brazil (JV – 2016) and • 75% in

Adocim, Turkey (2018).

Key Investment Highlights

1. An established Group with a strong shareholder base, dedicated management

team, strong governance and a long-term vision

2. A geographically diversified portfolio with 60% of Group Assets in Emerging

Markets and leading market positions (operations close to the end markets)

3. Vertically-integrated business model

4. Well-invested, low cost, modern asset base

5. Strong financial track record with healthy cash flow generation and proven

ability to manage leverage

6. Well positioned for future growth


Geographically Diversified Cement and Building Materials Producer

USA Greece & Western Europe Southeastern Europe Eastern Mediterranean Group 2018*

• TOTAL ASSETS: €564m

• 3 cement plants

• 1 grinding plant

• 8 distribution terminals

• 26 quarries

• 27 ready mix plants

• 1 dry mortar plant

• TOTAL ASSETS: €1,055m

• 2 cement plants


• 8 quarries


• 10 concrete block plants

• 6 fly-ash processing

plants


• 5 cement plants

• 1 distribution terminal

• 20 quarries



• 3 cement plants



• 16 quarries


• TOTAL ASSETS: €2,870m

• 14 cement plants c.27m MT

• 3 grinding plants


• 73 quarries

• 123 ready-mix plants


• 6 fly-ash processing plants

• 1 dry mortar plant

USA

UK France Italy

Greece Bulgaria Albania

Kosovo

Serbia

North

Macedonia

Egypt

Brazil

Corporate Presentation

€178m €11m €239m €11m€154m€860m €60m€237m

€1,490m / €260m

58% 68% 16%

19%

23%16% 4%11%4%

3 year average (2016-2018)

2018

Turnover / EBITDA

JV


• 1 cement plant



• 3 quarries


€843m €249m €22m €58m€223m €187m €22m€169m

€1,502m / €271m

Turnover EBITDA Turnover EBITDA Turnover EBITDA Turnover EBITDA56% 63% 17% 8% 15% 21% 12% 8%

1

Turkey

June 20195

Note: Including JV

68 81146

191

35 36 11

11

78

184

145 178

17

73

87

56 60

21

33

128

4111

1991 1996 2001 2006 2011 2016 2018

Greece USA Southeastern Europe Eastern Mediterranean

-6

Geographic Diversification Helps Mitigate Demand Cycles

6892

262

481

260

TITAN Group

EBITDA (€million)

Within this period TITAN’s capacity has increased five-fold with no capital increase

1

6

244

June 2019Corporate Presentation

279

Leading Local Market Positions

Titan’s operations are close to its end markets and in most cases it ranks in top 3 in terms of market share

USA

Significant presence in the East Coast with 2 integrated

cement plants in Florida and Virginia

Import Terminals in New Jersey, Norfolk (VA), Tampa (FL)

Extensive vertical integration in RMC, Aggregates etc

Cement plant

Market presence through

vertically integrated

activities

Import terminals

Greece

#1

Plants are near:

the 3 major cities and

ports, facilitating exports

Largest operator in aggregates and

RMC

South Eastern Europe

#1

#1

#3

#2

#1

Largest producer in the region

Synergies among the countries

Coverage of the whole region

Eastern Mediterranean

#5

#3 in Black Sea

Region

Cement plant

Grinding plant

Beni –Suef close to Cairo

APCC plant in Alexandria

In Turkey, Titan acquired

control of JV in Q3 2018

Note: Market position: Company estimates 3- year average

2

7

#1

#2


Cement plant

Grinding plant

Vertically Integrated Business Model, Strengthening Market Positions for Maximum Value

June 2019

Titan Group has been selectively increasing its vertical integration since 1992

Cement

79%

Other B.M.

21%

Cement

57%

Other B.M.

43%

211

848

56

642

267

1,490

0

200

400

600

800

1,000

1,200

1,400

1,600

1992 2018

Cement Other Building materials: Ready mix, aggregates, blocks

3

Corporate Presentation8

• Vertical integration:

− Secures access to market

− Helps reduce earnings volatility

− Increases proximity to end users

• Strong market presence in vertically

integrated operations in Eastern

USA and Greece.

• Growing presence in Southeastern

Europe and Eastern Mediterranean.

• 2018 annual sales of cement and

cementitious materials of 18.2m MT,

ready mix concrete 5.29 m3m,

aggregates 17.1m MT.

• In 2018 Titan Group operations

comprised of: 14 cement plants, 3

grinding plants, 34 distribution

terminals, 123 ready mix plants, 73

quarries

Turnover Turnover

50 97 134224

155 146 160252 209 180

87 58 51 49 82173 151 123 119 23

449

1795

7123

2

76

243 402

14

2519

83

1199

50 39

0

100

200

300

400

500

600

700

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1 2019

Capex Acquistions

Well-invested, Low-cost, Modern Asset BaseTitan Growth CAPEX Program of €324m in 2015-2016

Kosovo acquisition

USA Ready Mix acquisition

Acquisition of Lafarge’s 50% stake in EgyptAcquisition of 50% Adocim Turkey

Construction of new plant in Albania & new line in Egypt

Tarmac acquisition

Zlatna, BGacquisition

Acquisition of EBRD’s 20%

stake in Albania

€4.2bn invested since 2000 split between capex of €2.5bn and acquisitions of €1.7bn

Highlights

• The Group owns new plants, or plants upgraded within thelast decade. This provides flexibility on capex managementduring the down cycle.

• Demonstrated ability to cut capex during challengingeconomic periods.

• In 2015-2016, the Group implemented a €324m capexprogram, focusing on technological competitiveness, revenuegrowth, cost efficiencies and protection of the environment.

4

Acquisition of 50% Cim. Apodi Brazil

(c. 2m MT capacity and cost €106m)

Thessaloniki and Pennsuco modernisation


• Beyond 2017 CAPEX reverted to lower levels with focus oncontinuous improvement.

• Titan has several projects in progress to improve operationalperformance by implementing group new SAP & IT systems,centralizing procurement, optimizing the supply chain,leveraging digital technology, and automating maintenanceprocess.

Increase of stake to 75% in Adocim Turkey

Strong Cash Flow Generation Enables Deleveraging

June 2019

2,489

395

65

47

18

(1,080)

(3) (1,141)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

EBITDA2009-2018

Non-CashItems

CapEx OperatingWorkingCapital

AcquisitionsNet of

Disposals

Interest,Tax,

Dividends

FX Impacton Net Debt

Net DebtReduction(31/12/18)

Operating Free Cash Flow

€1,471m

Sources and Uses of Cash in 2009-2018

Note: Operating Free Cash Flow = EBITDA – Capital Expenditure + Δ(Operating Working Capital) – Non-Cash Items

Note: Turkey is fully consolidated up to 2012. Turkey’s net debt has been excluded from the €459 million net debt reduction as at 31 December 2015.

5


Seasonal Q1 Increase in Net Debt Levels Affected by the Adoption of IFRS 16

1112

986988930947

874831

739739707

732674

754

602632

562596

552563509

541490

529541

660630650

621605578

713661

716

787758

723738

751784772

889

400

500

600

700

800

900

1,000

1,100

1,200

Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4Q1

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Net debt Gross Debt(€ in millions)

June 2019Corporate Presentation11

Group Net and Gross Debt Evolution

2019 figures affected by adoption of IFRS 16.

25 40 32 30 0

160

298 347

17

14

11

5

3

190

50

100

150

200

250

300

350

400

<Dec'19 <Dec'20 <Dec'21 <Dec'22 <Dec'23 <Dec'24 >Dec'24

Maturity Profile (€m)

Leases

Bonds

Bank Debt185

344

5

12

6

With several proactive measures undertaken, the

Group is well positioned to take advantage of…

• Significant asset upgrades across geographies –capex of €4.2bn since 2000 in organic expansion,maintenance and M&A, leading to increased capacityand better cost position

• Increased capacity providing headroom to grow withoutmaterial additional capex

• Improved leverage position provides financial flexibilityto pursue inorganic and organic growth opportunities

…the growth potential in the existing markets

of Titan

USA

• Population growth and healthy fiscal balance drivinghousing and infrastructure growth in key Titan US states

• Cement demand and residential activities well below thepeak supporting medium term demand outlook

Greece:

• Cement consumption at extremely low levels – currently50Y low and 80% below the peak demand

• Improving macroeconomics (GDP growth, credit rating,unemployment) to support construction activities in MT

SEE:

• Improving growth rates and urbanisation, long-terminfrastructure needs and EU support

E.Med.:

• Long term demand potential supported by populationgrowth and infrastructure pipeline

Brazil:

• Improving growth rates, large and young population,growing urbanization and infrastructure needs

Positioned for future growth

Corporate PresentationJune 2019

Committed to Sustainable Development


Sustainability

Performance 2020 targets

6

Specific net direct

CO2 emissions

(kg/tproduct)*

(comp. to 1990** level)

Specific dust particulates

(g/tclinker)

(comp. to 2003*** level)

Specific water

consumption

(lt/tcement)

(comp. to 2003*** level)Active wholly owned sites with

quarry rehabilitation plans

Active wholly owned sites of

biodiversity value with Biodiversity

Management Plans

Biodiversity and land

stewardship

* Product equals cementitious product as defined by WBCSD/CSI.

** 1990 is the base year for CO2 emissions, in line with the Kyoto Protocol.

*** 2003 is the base year for environmental data other than CO2 emissions.

Included since 2017

Most relevant SDGs identified

through materiality process

Corporate

Governance UK Corporate Governance Code

since 2010

Board Composition

15 Members

7 Independent directors (47%)

9 Non-Executive directors

Board diversity

73% Male

27% Female

TITAN was among the first

signatories and now a Participant

of the UN Global Compact

Financial Results – Full Year 2016Corporate Presentation

Summary Financials Q1 2019


Q1 2019 Highlights


Group Turnover in Q1 2019 increased to €363m (+12.5% vs Q1 2018) and EBITDA reached €44m (+1.9% vs Q1 2018)

despite weak results (-€5m) in EMED.

Net Profit turned negative to -€6m in Q1 2019, due to higher depreciation (€3.2m from IFRS 16) and worse FX result.

In the US, under positive market fundamentals, a strong Q1 2019 performance compared to a soft start in 2018, led

to Turnover and EBITDA growth, up 8.5% and 30.6% in US $ respectively.

In Greece, revenue improved by 6% to €56m as domestic market increased albeit from very low levels. EBITDA was

negative at -€1m, impacted by scheduled maintenance costs in the quarter.

SEE posted significant growth in Q1 revenues (+41.4% vs 2018) reaching €48m, driven by mild weather conditions

and market growth across all countries. EBITDA more than doubled to €9m.

In EMED, both Egyptian and Turkish markets face significant challenges. Against a one off favorable Q1 2018,

Turnover dropped by 23.5% to €34m.EBITDA inverted from €8.4m positive in Q1 2018 to -€5m in Q1 2019 after -€3m

in Q4 2018.

Net Debt at €889m after inclusion of €59m of IFRS 16 long term liabilities.

TITAN Cement International S.A. (TCI), submitted a new VTO for the exchange of all the ordinary and preference

shares issued by TITAN Cement Company S.A. with new shares of TCI. Success threshold at 75%.

Titan AGM on June 7th. Ex-dividend date June 11th.

June 2019


Strong US and SEE Performance Offset by Weak Market Conditions in Egypt and Turkey.

Group Turnover Group EBITDA Group NPAT

1s

t Q

ua

rter

322.5362.740.2

0

100

200

300

400

Turnover2018

Variance Turnover2019

12.5%€ in millions

43.5 44.30.8

0

15

30

45

60

EBITDA2018

Variance EBITDA2019

1.9%

EBITDA Margin 12.2%13.5%

€ in millions

4.1

4.11.26

3.7

4.4

1.26

Cement(tn m)

Aggregates(tn m)

Ready-mix(m3 m)

2018A

2019A


Increased Sales Volume in USA, SEE and Greece. Sharp Drop in Egypt and Turkey.

* Intragroup product sales for processing are included in sales volumes

(1) Cement sales include clinker and cementitious materials

(2) Includes Turkey and Brazil, does not include Associates

(3) % represents performance versus last year

1st Quarter Sales Volume

+7%(3)

-10%(3)

(1), (2) (2) (2)

+0%(3)

Group 12Month-Rolling EBITDA


TITAN Group

(€ in millions)

330 330315

295

243

213196

176196 193

182198

216231

279302

273254 260260

100

200

300

400

Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q1

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019


44

(117)

3 (23)

(52)

1 (20)(11)

(59)

-150

-100

-50

0

50

100

EBITDA3M 2019

Non-CashItems

CapEx OperatingWorkingCapital *

AcquisitionsNet of

Disposals

Interest,Tax,

Dividends,Other

FX Impacton Net Debt

IFRS 16 Increase inNet Debt31/03/19

Sources and Uses of Cash

Q1 Operating Free Cash Flow

-€28m(€ in millions)

* Acquisitions, Interest and tax related payments are presented separately and excluded from Operating Working Capital cash movements

2018

3M44 1 (19) (27) (12) (16) 14 (15)-€1m

€117m Higher Net Debt (vs Q4 2018) Due to Increased Seasonal WC Needs and €59m IFRS 16 Impact

New Voluntary Share Exchange Tender Offer made by Titan Cement International (“TCI”) to all shareholders of TITAN

Principal Objectives The Offer & Conditions

To enhance the international nature of TITAN

Group’s business activities

Link TITAN Group with a large international

stock exchange and a broader and deeper

investor base

Broaden TITAN Group’s capital markets and

banking funding sources, enabling the Group

to fund growth under more competitive terms

Titan shareholders will receive new ordinary

shares in TCI as consideration

Exchange ratio of one TCI share for each TITAN

ordinary or preference share

75% minimum acceptance condition

Upon the listing of its shares on Euronext

Brussels, TCI will adopt the corporate

governance code of Belgium

The squeeze-out and sell-out rights may be

exercised only for the class of the TITAN

shares in respect of which the 90% threshold

has been reached

The exercising ordinary shareholders can elect

to receive either ordinary shares of TCI or

€19.64 in cash & the exercising preference

shareholders can elect to receive either

ordinary shares of TCI or €18.98 in cash

April-19: Announcement of VTO by TCI

Mid May-19: Prospectus approval by the FSMA

Late May-19: Publication of the Information

Circular following approval by the HCMC & Start

of acceptance period

Late June-19: Announcement of results of

exchange offer; Admission of TCI shares to

trading on Euronext Brussels, ATHEX and

Euronext Paris & Commencement of squeeze out

process, if applicable

SummarySignificant milestone in the dynamic growth path of TITAN Group, fully reflecting its international outlook

20

Squeeze-Out & Sell-Out Indicative Timetable


29.1

41.212.1

0

15

30

45

EBITDA

2018

Variance EBITDA

2019

41.8%


€ in millions


USA Turnover USA EBITDA

US Solid Growth in Q1 2019, Compared to Soft Q1 2018. Positive Market Environment on the East Coast.

€+17.1m translation impact; 8.5% growth in local currency €+3.2m translation impact; 30.6% growth in local currency

1s

t Q

ua

rter

190.6

223.933.4

0

80

160

240

Turnover

2018

Variance Turnover

2019


US Turnover improved by 17.5% (+8.5% in $ terms) and EBITDA increased by 41.8% (+30.6% in $ terms)

in Q1 2019, to €224m and €41m respectively, supported by strengthening of US$.

Cement sales grew in both Florida and Mid-Atlantic. Pricing initiatives implemented successfully.

Residential growth mild. Stronger demand for single family housing.

Continued growth in all segments. Expectations for increased infrastructure spending, at both State and

Federal levels.

Cement consumption expected to improve in Florida by 2.3% in 2019 and 2.6% in 2020 and in Mid-

Atlantic (North & South Carolina, Virginia) by 3.3% in 2019 and 1.4% in 2020 (PCA Spring Forecast).


Greece Turnover Greece & Corporate EBITDA

In Greece Domestic Cement and Ready-Mix Sales Improved

1s

t Q

ua

rter

52.9 56.13.2

0

80

160

240

Turnover

2018

Variance Turnover

2019

6.0%€ in millions

2.1 -0.8-2.9

-5

10

25

40

55

EBITDA

2018

Variance EBITDA

2019

EBITDA Margin -1.4%4.0%

€ in millions

Greece & WE Turnover up by 6.0% to €56m while EBITDA negative at -€1m in Q1 2019.

Domestic market higher in the quarter albeit from very low levels.

Stable pricing environment.

New infrastructure projects not expected to affect cement market demand until late 2019.

Significant annual maintenance in Q1 2019 in all plants weighed on results.


SEE Turnover SEE EBITDA

Strong SEE Growth in Q1 2019 Following Good Market Conditions and Mild Weather

1s

t Q

ua

rter

34.248.414.2

0

80

160

240

Turnover

2018

Variance Turnover

2019


3.9

9.15.2

0

15

30

45

EBITDA

2018

Variance EBITDA

2019

132.8%


€ in millions

In SEE Turnover and EBITDA increased to €48m (up 41.4%) and €9m (up 132.8%) respectively.

Sales volume rose across all countries supported by favorable weather conditions and overall market

growth in Q1 2019.

Improved pricing environment in most markets.

Costs contained by use of alternative fuels and improved plant utilization.

Positive market conditions expected in 2019, growth expected to continue.


EMED Turnover EMED EBITDA

EMED Markets Under Pressure as Egypt and Turkey Face Challenges

1s

t Q

ua

rter

44.834.2-10.6

0

80

160

240

Turnover

2018

Variance Turnover

2019

-23.5%€ in millions

8.4

-5.2

-13.6

-10

5

20

35

50

EBITDA

2018

Variance EBITDA

2019

EBITDA Margin -15.3%18.8%

€ in millions

EMED Turnover in Q1 2019 dropped by 23.5% to €34m (-37% on a like-for-like basis), while EBITDA

turned negative at -€5m (after -€3m in Q4 2018).

In Egypt revenue decreased due to market slowdown, increased competition and drop in domestic

prices. Negative EBITDA also hit by higher electricity cost and clay taxes.

Continued efforts for cost containment. Current price levels not sufficient to cover operating costs.

In Turkey the cement market contracted by 45%. Prices increased below inflation levels, further

impacted by significant weakening of the Turkish Lira. Demand arising mainly from tourism sector,

while public works consumption has decreased.

Adocim full consolidation in Q1 2019.


Q1 2019 – Joint Venture Performance

In Brazil, cement market grew by 1.2% in the Northeast (Apodi’s market).

Reversal of trend of 4 years decline.

Positive price environment supported Turnover growth.

Rising costs, especially distribution expenses impacted profitability.


Outlook 2019

Greece

USA

Eastern Med

S.E. Europe

Brazil JV

• Positive demand outlook maintained.

• Focus on growth, performance and profitability.

• Expectations of a modest pick up in construction activity.

• Focus on cost competitiveness and optimization of exports profitability.

• Improvement in cement market dynamics supported by economic growth.

• Focus on capturing synergies and efficiencies.

• Challenging environment in both Egypt and Turkey.

• Focus on cost containment, price recovery, operating cash-flow.

• Expectations for the launch of a new growth cycle in the cement market.

June 201926


Review of key markets


USA – Business Overview

TITAN

• Cement: 2 plants approx. total 3.5m MT and 14 distribution terminals

• Ready-mix: 78 production plants

• 8 quarries


• 6 fly-ash processing plants

US operations (2018)

• 58% of Group Turnover (€860.1m)

• 69% of Group EBITDA (€177.9m)

• 37% of Group Total Assets (€1,055m)

Cement plant

Market presence

through vertically

integrated activities

Import terminals

Turnover & EBITDA

TITAN America is well positioned to capture growth along the East Coast (New York - Florida)


469

680794

873 860

47101 145 185 178

10%

15%

18%21% 21%

-5%

0%

5%

10%

15%

20%

0

200

400

600

800

2014 2015 2016 2017 2018

Turnover EBITDA EBITDA margin

Trends & Drivers

• Population growth and healthy fiscal balances drivedemand for housing and infrastructure in Titan’sfootprint States.

• For 2019, the PCA expects cement consumption togrow by 2.3% in the US*.

• Demand growth and benefits from €240m capex in2015-2017, strengthen Titan’s position and profitability.

• Well-positioned to grow with strong presence in theexpanding metropolitan areas and further operatingleverage.

*Based on PCA Spring Forecasts

95%95%

92%84%

64%62%

61%

69%

69%77%

76%79%

80%81%

82%82%

82%83%83%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

20,000

40,000

60,000

80,000

100,000

120,000

140,000

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19E

20

20E

20

21E

20

22E

20

23E

Portland Cement Consumption Capacity Utilization Rate

Cem

en

t co

nsu

mp

tio

n

(00

0 M

etr

ic T

on

s)

USA – Consistent Growth and Promising Mid-Term Outlook

Source: US Census Bureau, U.S. Geological Survey, PCA State Forecasts Spring 2019 Note: Red bars represent recessionary periods

Source: US Census Bureau

50 Year US housing starts show gains since 2010, but

remain below average and well below the peak of 2005

Source: PCA, US Spring Forecast

US cement demand remains 22% below its peak

at 100.1m tons in 2018 vs 128m in 2005

2019 = 2.3%

2020 = 1.8%

R² = 0.997

R² = 0.0135

1.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6

2.8

3.0

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0

198

2

198

4

198

6

198

8

199

0

199

2

199

4

199

6

199

8

200

0

200

2

200

4

200

6

200

8

201

0

201

2

201

4

201

6

201

8

202

0

202

2

Cem

en

t C

on

su

mp

tio

n (

mill

ion

s o

f M

T)

Po

pu

latio

n (

mill

ion

s)

Virginia - Positive market dynamics

Population (millions) Cement Consumption(Millions of ST)

Linear (Population (millions)) Linear (Cement Consumption(Millions of ST))

R² = 0.9976

R² = 0.0348

3.0

5.0

7.0

9.0

11.0

13.0

15.0

10.0

12.0

14.0

16.0

18.0

20.0

22.0

198

2

198

4

198

6

198

8

199

0

199

2

199

4

199

6

199

8

200

0

200

2

200

4

200

6

200

8

201

0

201

2

201

4

201

6

201

8

202

0

202

2

Cem

en

t C

on

su

mp

tio

n (

mill

ion

s o

f M

T)

Po

pu

latio

n (

mill

ion

s)

Florida - Strong demographics drive demand

Population (millions) Cement Consumption(Millions of ST)

Linear (Population (millions)) Linear (Cement Consumption(Millions of ST))

0

500

1000

1500

2000

2500

3000

19

66

19

69

19

72

19

75

19

78

19

81

19

84

19

87

19

90

19

93

19

96

19

99

20

02

20

05

20

08

20

11

20

14

20

17

Tho

usa

nd

s


Fo

rec

ast

Fo

rec

ast

Lead Indicators for US Cement Market

US cement consumption remains 22% below its peak at 100.1 million tons in 2018,

compared with 128 million tons in 2005. (US Geological Survey, PCA)

The share of imports to consumption which was 27.5% in 2005 stood at 15% in 2018. (US

Census Bureau Foreign Trade, PCA Monitor)

2019 cement consumption forecast (PCA Forecasts, Spring 2019)


Solid fundamentals support positive prospects

Florida +2.3%

Virginia +2.7%

N & S Carolina +4%

Total USA +2.3%

Infrastructure Investment Remains Dangerously Low

Source: BEA, Moody’s Analytics

Federal, state, & local spending on civilian Infrastructure, % GDP (1950-2018)

EPA / Clean Water /

Safe Drinking

Water Acts 1970s

American

Recovery and

Relief Act of 2009

Federal-Aid Highway

Act of 1956

Greece and Western Europe - Business Overview

TITAN

• Cement:

3 plants approx. 6.5m MT

1 grinding plant

8 distribution terminals

• Ready-mix: 27 production

plants (largest producer)

• 26 quarries (largest producer)

• Market share 40-45%

Greek/WE operations

(2018)

• 16% of Group Turnover

(€237.1m)


• 20% of Group Total Assets

(€563.6m)

Turnover & EBITDA

Titan’s home market: modern assets to serve the local market and to dynamically pursue export opportunities

31

Cement plant

Grinding plant


285 269 261 249 237

37 45 3618 11

13%17%

14%7% 5%

0

100

200

300

2014 2015 2016 2017 2018


Trends & Drivers

• Building activity remains overall at very low levels.

• Improving macros not yet seen in construction

activity.

• Commencement of new infrastructure projects

delayed, but continues to provide potential for the

reactivation of the construction sector.

• Exports absorb the excess production capacity

with the US representing the Group’s single

biggest exports destination.

Greece and Western Europe – Robust Exports Support Operating Rates

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

0

5

10

15

20

19

60

19

62

19

64

19

66

19

68

19

70

19

72

19

74

19

76

19

78

19

80

19

82

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

20

08

20

10

20

12

20

14

20

16

20

18E

Cement consumption GDP per capita, $

Cement consumption (million MT) GDP/capita(current US$)

Greece

enters EU

Greece

enters

Eurozone

6.5

10.5

11.6

2.4

3.5%

-0.4%

-4.4% -5.4%

-8.9%

-6.6%

-3.9%

0.7%

-0.3%

-0.2%

1.4%2.1% 2.2%

-10

-6

-2

2

6

Source: Hellenic Cement Industry Association (1960-2017), World Bank, I.M.F., Company estimates

Cement consumption in Greece is about 80% below the 2006

peak, close to 50-year lows. GDP annual change %


Source: IMF, World Economic Outlook (April 2019)

South Eastern Europe - Business Overview

TITAN

• Cement: 5 plants approx. 5.6m MT

• Ready-mix: 6 production units

• 20 quarries

SEE Operations (2018)



• 17% of Group Total Assets (€492.6m)

TITAN Plants

Trends & Drivers

Source: Titan 3-year average estimates, approximations

Attractive regional cluster set to benefit from long-term infrastructure needs and EU admission

Turnover & EBITDA


208 209 204226

239

67 56 56 57 60

32%27% 28% 25% 25%

0

50

100

150

200

250

300

2014 2015 2016 2017 2018


• Signs of recovery in public and privateconstruction, following continuing positiveeconomic growth.

• Resilient financial performance. Increasedcompetitiveness through expansion of alternativefuels usage, benefiting also the local communities.

• Consistent GDP growth and political stabilityprovide strong scope for future recovery ofdemand.

3.5

1.82.2

4.1 3.93.4

3.9

3.3 3.3

4.1

2.8 2.9

3.8

2.0

3.84.2

0.2

4.7

3.2

4.4 4.2 4.0

2.7

4.5

Bulgaria Serbia Albania Kosovo North Macedonia Montenegro

2015 2016 2017 2018

Cement consumption

SEE Prospects for Growth Lead to Positive Outlook: Low

Volatility Markets with Upside Potential as Urbanization Rises

GDP growth %

Source: IMF, World Economic Outlook, April 2019

2.2

1.81.4

1.10.7

0.4

2.2

1.8

1.4 1.3

0.8

0.4

2.3

1.9

1.5 1.4

0.80.5

2.6

2.1

1.4 1.5

0.8 0.7

Bulgaria Serbia Albania Kosovo North Macedonia Montenegro

2015 2016 2017 2018

Source: GCR 12th Edition, Company estimates

(‘000 MT)


Eastern Mediterranean - Business Overview

TITAN

• Cement total: 7.5m MT

• Ready-mix: 7 production plants

• Aggregates: 16 quarries

EGYPT

• 2 cement plants approx. 5m MT

TURKEY

Adocim Cimento

1 cement plant

1 grinding plant

Eastern Mediterranean(2018)



• 23% of Group Total Assets (€650.6m)

Cement plant

Grinding plant

Turnover & EBITDA

Two large markets (over 110m MT of combined cement consumption)


197

241249

158 154.3

31 15 41 13 11.4

16%6%

16%

8% 7%

0

100

200

300

2014 2015 2016 2017 2018


Trends & Drivers

• In Egypt existing oversupply exacerbated by the launch of substantial newcapacity in 2018.

• Significant increases in energy costs and additional levies on production ofcement, make price increases imperative.

• EGP devaluation by over 50% in 2016 results in lower construction, pricevolatility and high inflation.

• IFC holds 8.5% stake in TCE (Dec. 2018).

• In Turkey, deterioration in macroeconomic indicators and pressure on thebanking system to lead to significant reduction in demand in the short term.

• Adocim well prepared to face challenges, with modern asset base,competitive cost structure and low gearing.

54 56 54 51

64 6772

65

2015 2016 2017 2018

Egypt Consumption Turkey Consumption

Long term Demand Potential Supported by Favorable Demographics

89 90 95 97

79 80 81 82

2015 2016 2017 2018

Egypt Turkey

Large and growing population

Cement consumption

Source: IMF, World Economic Outlook, April 2019

Source: Ministry of Trade and Industry of Egypt, Turkish Cement Association

(‘000 MT)

(Population in millions)

36 June 2019


45.1

51.6 51.9

6065

69.3 71 71.7

64.9

57.453.3 52.7

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

-11.6%-7.1%

-9.5%

Evolution of Cement Consumption(m MT)

Brazil – Joint Venture investment in Cimento Apodi

Macro indicators are positive. The economy grew by 1% for a second

consecutive year, while the World Bank estimates +2.2% GDP growth in 2019.

A large country (pop. 205m) with strong potential due to its young population,

the large scope for urbanization and lagging infrastructure.

Cement consumption reached 52.7 million metric tons in 2018, a yoy decline

of 1.2%, the slowest decline since the peak year 2014 (72 m MT).

The National Union of Cement Industry (SNIC) expects cement demand

growth in 2019, driven by both residential and infrastructure investments.

Cement consumption increased by 6% in Jan-May 2019.

37

Cimento Apodi operates two units in Ceará state with total

capacity over 2 m MT cement per year

- One integrated cement plant in Quixere (2015)

- One grinding cement plant in Pecem (2011)

Market share estimated at 25% in Ceara and 6% in the

Northeast

Joint Venture 50/50

Source: SNIC

June 2019

-1.2%

Cement plant

Grinding plant



Appendix



In Million Euros, unless otherwise stated 2019 2018 Variance

Net Sales 362.7 322.5 12.5%

Cost of Goods Sold -280.9 -244.7 14.8%

Gross Margin (before depreciation) 81.8 77.7 5.3%

SG&A -38.3 -35.0 9.4%

Other Income / Expense 0.8 0.7 13.0%

EBITDA 44.3 43.5 1.9%

Depreciation/Impairments -33.5 -26.9

Finance Costs - Net -15.0 -14.0

FX Gains/ Losses -3.1 2.0

Share of profit of associates & JVs -1.4 -2.0

Profit Before Taxes -8.7 2.6

Income Tax Net 1.4 -1.5

Non Controlling Interest 1.2 -0.2

Net Profit after Taxes & Minorities -6.2 0.9

Earnings per Share (€/share) – basic -0.077 0.012

31 Mar' 19 31 Dec' 18 Variance

Net Debt 889 772 15.1%

Share Price 19.26 19.38 -0.6%

ASE Index 721.37 613.30 17.6%

Higher Depreciation Leads to Quarterly Net Loss

Titan Group Balance Sheet


In Million Euros, unless otherwise stated 31 Mar' 19 31 Mar' 18 31 Dec' 18

Variance

31 Mar '19

vs 31 Mar '18

Property, plant & equipment and inv. Property 1,720.2 1,450.6 1,660.1 269.6

Intangible assets and goodwill 412.1 338.9 405.2 73.2

Investments/Other non-current assets 140.4 181.6 139.5 -41.2

Non-current assets 2,272.7 1,971.1 2,204.8 301.6

Inventories 284.3 263.3 286.6 21.0

Receivables and prepayments 240.5 196.8 207.5 43.7

Cash and liquid assets 113.9 233.8 171.0 -119.9

Current assets 638.7 693.9 665.1 -55.2

Total Assets 2,911.4 2,665.0 2,869.9 246.4

Share capital and share premium 314.8 276.7 314.8 38.1

Treasury shares -114.2 -106.7 -109.1 -7.5

Retained earnings and reserves 1,189.6 1,110.4 1,188.4 79.2

Non-controlling interests 75.6 62.1 77.2 13.5

Total equity 1,465.8 1,342.5 1,471.3 123.3

Long-term borrowings 782.2 920.1 745.2 -137.9

Deferred income tax liability 96.9 40.6 94.4 56.3

Other non-current liabilities 69.4 69.8 66.8 -0.4

Non-current liabilities 948.5 1,030.5 906.4 -82.0

Short-term borrowings 220.5 51.8 197.6 168.7

Trade payables and current liabilities 276.6 240.1 294.6 36.5

Current liabilities 497.1 291.9 492.2 205.2

Total Equity and Liabilities 2,911.4 2,665.0 2,869.9 246.4

41

Disclaimer


This presentation has been prepared by Titan for informational purposes only. Although the information contained in this presentation has been obtained from sources which Titan

believes to be reliable, it has not been independently verified and no representation or warranty, express or implied, is made and no responsibility is or will be accepted by Titan as to or

in relation to the accuracy, reliability or completeness of any such information. Opinions expressed herein reflect the judgment of Titan as of the date of this presentation and may be

subject to change without notice if Titan becomes aware of any information, whether specific or general, which may have a material impact on any such opinions. Titan will not be

responsible for any consequences resulting from the use of this presentation as well as the reliance upon any opinion or statement contained herein or for any omission. This

presentation is confidential and may not be reproduced (in whole or in part) nor summarized or distributed without the prior written permission of Titan. Titan is not responsible for

providing you with accounting, legal, tax or other specialist advice and you should make your own arrangements.

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 Titan. Such statements may be subject to a number of risks, uncertainties and other important factors, such as but not limited to:

• macroeconomic developments, in particular, periods of economic slowdown or recession and declines in demand for building materials in the markets in which the Group operates;

• fluctuations in energy, fuel prices and transportation costs;

• decreases in the availability of or increases in the cost of raw materials;

• risks inherent to operating in emerging markets;

• risks related to minority interests, minority participations and joint ventures;

• fluctuations and risks of business interruptions, including as a result of natural disasters;

• fluctuations in distribution costs;

• entry into new geographic markets, or expansion (including by means of acquisition) in existing markets;

• fluctuations in currency exchange rates and other financial market conditions;

• competition in the markets in which the Group operates;

• legislative and regulatory developments;

• delays or the Group’s inability in obtaining approvals from authorities;

• potential delays, funding challenges or cost overruns in the Group’s capital expenditure projects;

• risks from potential and on-going litigation; and

• adverse publicity and news coverage.

The information, statements and opinions contained in this document do not constitute an offer to sell or a solicitation of an offer to buy any securities, and are not for publication or

distribution in, the U.S. or to persons in the U.S. (within the meaning of Regulation S under the US Securities Act of 1933, as amended (the “Securities Act”)), Canada, Japan, Australia

or any other jurisdiction where such distribution or offer is unlawful. Any securities referred to in this document and herein have not been, and will not be, registered under the Securities

Act, and may not be offered or sold in the United States absent registration under the Securities Act or pursuant to an applicable exemption from, or in a transaction not subject to, the

registration requirements thereof. Any failure to comply with the foregoing restrictions may constitute a violation of securities laws.

42

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