Financial Review

The severe recession in Greece, the stagnation of building activity in the U.S.A. at very low levels, as well as the effect of instability in Egypt, took a toll on the 2011 results of TITAN Group. The positive contribution of Turkey and Southeastern Europe partially offset this impact.

In 2011, Group turnover stood at €1,091 million, posting a 19% decrease compared to 2010. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) declined by 23% to €243 million. In addition to market dynamics, results were also impacted negatively by higher fuel costs and positively by increased disposal of excess carbon emission rights. The strengthening of the Euro versus local currencies had a negative effect on results, while asset impairment charges at year’s end amounted to €18.7 million. Overall Group net profit, after minority interests and the provision for taxes, reached €11 million, a decline of 89% compared to 2010.

The Group’s continuous efforts towards cost containment, resulted in  lower administrative, operating and selling expenses, which  declined by 6% in 2011 compared to the previous year and stood at €122 million.

In the course of the year, the Group also adopted a two-year restructuring plan with a view to reduce fixed costs further. It is estimated that the plan will accrue €26 million in fixed cost savings annually. The project realigns resources to growth markets and reduces fixed costs in mature markets with a Group-wide scope and a particular focus on Greece and the U.S.A. The cost of implementing the restructuring plan affected EBITDA for the year by €12 million.

In 2011, financial expenses increased by 6% compared to the previous year, reaching €66 million, mainly due to the increase in interest rates and expenses. In the course of 2011, the Group refinanced its existing syndicated credit facility maturing in April 2012 with two new four-year syndicated credit facilities maturing in 2015.

Despite trough like conditions in key markets, TITAN Group generated positive operating cash flow of €206 million in 2011. As a result, Group net debt was further reduced by €69 million in 2011 and stood at €708 million at the end of the year. In the last three years, the Group’s net debt has been reduced by a total of €406 million. The Net Debt/EBITDA ratio stood at 2.9 times at the end of 2011. The ratio of the Group’s committed long term unutilized facilities and cash over short term debt stood at 3.2 times, giving the Group a robust liquidity profile.

In the course of 2011, capital expenditure was further curtailed following the completion of recent investments in Egypt and Albania. Consequently capital expenditure, excluding acquisitions, stood at €58 million a decrease of 33% compared to 2010. Environmental expenditures were €36.6 million compared to €27.1 million in 2010.

TITAN’s share price ended the year at €11.59, declining by 29% year on year, outperforming the Athens Exchange Index which declined by 52% during the same period. The return for long term investors has been 7% per annum over the last 15 years.

TITAN is a signatory of the U.N. Global Compact and has been recognized as an Advanced level reporter for reporting on the implementation of the U.N. Global Compact principles. TITAN’s commitment to responsible corporate practices was acknowledged and welcomed by international investors, signatories of the United Nations backed Principles for Responsible Investment.



Parent company TITAN S.A.

In 2011, the financial results of the parent company TITAN Cement Company S.A. reflected the collapse of the building and construction activity of the Greek market. Turnover for the year  stood at €217 million, a decrease of 41% compared to 2010, while EBITDA reached €41 million, posting a 53% decline. The Company posted a €13 million net loss for the year compared to profits of €20.8 million in 2010.


2011 Group Net Profit After Taxes and Minorities

Performance by Region 2009-2011


TITAN Group Performance Highlights 2007-2011