Titan S.A.

Quarterly Report • Jul 27, 2023

1 January – 30 June 2023

Interim Condensed Financial Information of Titan Cement Group

Index

Declaration by the persons responsible02
Financial performance overview03
Report on review of interim financial information06
Interim condensed consolidated financial statements07
Notes to the interim condensed consolidated financial statements13

The Interim Condensed Consolidated Financial Statements, presented through pages 7 to 24, have been approved by the Board of Directors on 26th of July 2023.

Dimitrios Papalexopoulos Michael Colakides

Chair of the Board of Directors Managing Director and Group CFO

Company CFO Financial Consolidation Director Grigorios Dikaios Athanasios Ntanas

Declaration by the persons responsible

We certify, to the best of our knowledge, that:

a) The condensed financial statements for the Half Year 2023 were prepared in accordance with the International Financial Reporting Standards (IFRS) applicable to interim financial reporting and give a true and fair view of the assets, liabilities, financial position and profit or loss of the issuer and of the undertakings included in the consolidation, and

b) The interim management report presents a fair review of any important events that have occurred during the first six months of the financial year 2023 and their effect on the condensed set of financial statements, major transactions with related parties and their effect on the condensed set of financial statements and a description of the principal risks and uncertainties of the remaining six months of the year.

Dimitrios Papalexopoulos Michael Colakides

Chair of the Board of Directors Managing Director and Group CFO

Financial performance overview

TITAN Group - Overview of the first half of 2023

With two very strong quarters in 2023, Group's consolidated sales for H1 2023 surpassed the €1.2bn level, reaching €1,229m, increased by 18.7% versus the first half of 2022. This strong top-line performance was achieved thanks to increased domestic demand levels across our products in our main markets. Price increases implemented in 2022 across regions, coupled with price increases in selective markets at the beginning of 2023 -targeted to mitigate the continuously high inflation level and restore margins- supported the positive revenue trajectory.

EBITDA increased to €241.2m compared with €136.3m in H1 2022, an increase of 77%, with profitability margins expanding, as investments implemented during the last two years are progressively improving cost performance. The energy mix improves with higher use of alternative fuels and the energy cost levels soften, still however being at higher than the pre-crisis levels. Group EBITDA over the past 12-month period (July 2022-June 2023) reached €436m. Net profit after taxes and minority interests (NPAT) in the first six months of 2023 more than doubled to €110.9m compared to the €45.2m of the first six months of 2022. Trends and economic conditions in the regions we operate in the US remain favorable to construction, resulting in improved demand and pricing levels. In Greece, demand continues to rise, while market trends in Southeastern Europe remain positive year-to-date. Domestic demand has been increasing significantly in Turkey, while volumes have been softening in Egypt. Volume trends across all main product lines testify to healthy demand, as domestic cement sales volumes increased by 3%, aggregates and ready-mix increased by 6% and 3% respectively, year-over-year.

Regional review for the first half of 2023

USA

The underlying momentum in one of the Group's core markets translated into a very strong performance in the first six months. Regional factors explain both the healthy state of the market and the resilience of demand. Economic growth, internal migration, strong employment levels and payroll growth across our specific markets along the East Coast, underpin a solid demand in the housing market and non-residential development while strong public investment are spurring public infrastructure. Housing inventories remain low in our key markets driven by increased demand and tight supply, and backlogs for heavy non-residential have been strong. Simultaneously, favorable trends from onshoring, warehousing, and data centers are present. On the public side, the Departments of Transportation have started putting the funds from the "Infrastructure Investments & Jobs Act" to work, with transportation contract awards accelerating, reaching record high value of contract awards, resulting in incremental demand for aggregates, cement, and downstream products and increased profitability. The latter is not only the result of a robust pricing cycle but more critically, the result of operational efficiencies deployed strategically through investments in digitalization, decarbonization and supply chain across the Group's US footprint. In July, the \$37m milestone project of the 67,500 tons storage in our import terminal in Tampa, Florida has been commissioned, enhancing its capabilities for distributing and importing larger quantities of cement and cementitious materials such as fly ash, slag, as well as aggregates. The second such dome investment of another \$36m in Norfolk, Virginia is due to come on stream in December, complementing and expanding the Group's Mid-Atlantic supply network.

Sales in the USA recorded a 24.5% increase to €735.5m during the first six months of 2023 (23.3% increase in US \$ terms), while EBITDA reached €135.5m, a 115.3% hike vs the H1 2022 EBITDA of €63.0m.

Greece & W. Europe

Economic activity in Greece remained on a solid upward trend also in the second quarter exceeding the respective Euro area average. Construction activity is expanding, backed by numerous long-term strategic public works across the mainland, smaller infrastructure projects in the periphery and by investments in the tourism-related sector in anticipation of a strong seasonal performance. Additionally, residential construction in urban areas continues to grow. The Group significantly increased its domestic sales volumes across all product lines, capitalizing on its vertically integrated positioning across the country. While energy, production, distribution and other operating costs remained elevated, the Group benefitted from its higher sales volumes, achieved cost efficiencies and its earlier applied successive price increases to achieve higher profitability margins. The second quarter also saw the successful completion of a €26m investment at the Group's Kamari cement plant, close to Athens, marking a significant milestone in the Group's decarbonization program. The investment entailed the installation of stateof-the-art pre-calciner technology, which is now fully operational at the plant, with an estimated payback period of well under 5 years. The integration of the new pre-calciner technology allows the Group to expand its range of lower carbon cements and to achieve an annual reduction of approximately 150,000 tonnes of CO² emissions.

During the second quarter, the Group also launched a new modern ready-mix unit in the 'Ellinikon' landmark urban development project in Athens with the new unit providing a wide range of green ready-mix products.

Mainly as a result of increased demand levels, total sales for the region of Greece and Western Europe in the first half of 2023 grew by 21.3% to €197.3m compared to €162.7m in H1 2022, while the EBITDA increased by €16.4m, reaching €36.3m.

Southeastern Europe

High inflation persisted across all the countries of the region with an adverse impact on consumption via a squeeze on disposable income. However, cement demand recorded growth compared to last year through a combination of various drivers depending on the country, ranging from public investment in transportation corridors to utility infrastructure as well as small private projects. Also, housing demand was high, especially in the countries enjoying robust remittance inflows and tourism

revenues. Following on from investments undertaken in previous years which resulted in a structural step-up in operational efficiency and reduced cost, coupled with resilient prices, margin performance was improved. On the product side, lower CO² cement products have been established as a standard across all countries, with increased penetration rates lowering the clinkerto-cement ratio in the region.

Sales for this region, as a whole, in the first semester of 2023 increased by 15.7% to €195.1m, while EBITDA increased by 37.0% to €60m.

Eastern Mediterranean

The performance in this region in the first six months of the year reflected the contrasting fortunes of the two countries faced with structural challenges exacerbated by the volatile global macroeconomic environment.

In Turkey, the performance improved with robust volume growth and healthy profitability levels. The earthquake which hit Turkey at the beginning of the year has resulted in an accelerated rebuilding activity while many of the estimated 3 million people who have been displaced by the disaster have moved to other parts of the country, causing a spike in housing and infrastructure demand. Extensive rebuilding and reconstruction works have created a ripple effect in cement consumption, while demand and prices for newer and safer buildings soar. Our sales volumes reflected the growth witnessed in the country while prices stabilized at high levels. During the second quarter, the Group inaugurated its biomass facility at its integrated cement plant which will allow it to double its thermal substitution rates to 40% by year-end, representing a milestone for the Group and the country since it is the first of its kind across the cement industry in Turkey.

In Egypt, delays to structural reforms put pressure on the Egyptian pound, increasing the risk of further currency devaluations, higher inflation, and rising interest rates. The government has halted capital expenditures on projects that have yet to start and proceeds with those already underway at a reduced pace. All this has been reflected in depressed cement sales, while the explosion of variable costs had an impact on profitability. Despite challenges, the group has managed to increase the rates of thermal substitution to more than 40% at the Alexandria plant, while similar investments are already underway at the Beni Suef plant.

Total sales in the Eastern Mediterranean reached €101m in the first half of 2023, dropping by 10.7% (however recording a 45% increase in local currencies) year on year, while albeit the improvement of the energy mix, EBITDA reached €9.3m versus €9.6m, in the first half of 2022.

Brazil (Joint venture)

Cement consumption in Brazil declined by 1.6% in the first six months of the year compared to the same period in 2022. In the Northeast, the region where our joint venture operates, there was a slight increase of 0.3%. The main drivers of cement consumption continue to decelerate, due to high-interest rates, lower disposable incomes as well as delays in the public housing program. Despite the still unfavorable economic scenario, confidence indicators are mixed, owing to the recent easing of inflation and the minimum wage increase applied in May.

In the first half of the year, Apodi posted increased sales of €59.7m, versus €50.5m in the first half of 2022, while the EBITDA increased to €6.0m versus €3.6m in the same period in 2022.

Investments and Financing

Operating free cash flow for the first six months of the year was positive, recording an inflow of €77m compared to a net outflow of €49m during the same period in 2022. This has been mainly the result of a significant EBITDA increase of €104.9m. Group's capital expenditure continued at high level of €117.3m on the back of long-term investment initiatives across the Group's core markets. Most of the Capital Expenditure was directed to the US, where funds have been allocated for growth-oriented and cost efficiency projects. In Greece, substantial funds were directed toward energy efficiency and alternative fuels conversion projects such as the calciner in the Kamari cement plant, which was recently completed.

Following improved EBITDA and Net Debt levels, the Group's leverage Net Debt/EBITDA ratio has dropped substantially to 1.7x. The Group's net debt at the end of the first six months of 2023 decreased by €35.8m, compared to the end of 2022, closing at €761.5m. Fitch initiated coverage and has assigned to TCI a long-term issuer rating of BB+. A senior unsecured rating of BB+ has also been assigned to the outstanding bonds of Titan Global Finance plc.

The Group continues the existing share buyback program initiated in March 2023 and as of the end of June 2023, a total of 261,623 shares had been bought as part of the program for €4.1m. As of the same date, the Group owned treasury shares representing 4.54% of total voting rights. On 11 May 2023, the Annual General Meeting of Shareholders approved the distribution of a gross dividend of €0.60 per share to all shareholders of the Company on record on 29 June 2023, which was paid on 5 July 2023.

Outlook

Global economic conditions started improving, helped by softer energy prices and the attendant improving business and consumer sentiment. However, the upturn remains fragile with the effects of tighter monetary policy increasingly being felt. Inflation could prove more persistent and the impact of higher interest rates on financial markets and economic activity could continue taking a toll on investment confidence.

The US continues operating in tight supply conditions and the industry is primed for a robust cycle over the next several years, driven by reshoring, stimulus and other structural investments. Private residential construction in our regions, amidst low housing inventories and growing population through internal migration is positive. Private non-residential construction is also poised to add to construction material demand growth in 2023 and for several years. At the same time stimulus money is flowing and budgets are healthy. Moreover, "Infrastructure Investments & Jobs Act" funds have been allocated or are being awarded now through different programs. Such structural and public investments should keep the non-residential construction cycle growing well into 2024 and beyond. The Group's favorable exposure to high-growth US markets, coupled with efficiencies attained in recent years, as a result of growth investments, primarily across logistics and in the realm of digitization, offer the structural underbearing which will allow the Group to capture the expected upside.

In Greece, the outcome of the national elections signifies a continuation of fiscal and economic policies. The country has a growing urban residential sector and a strong pipeline of private and RRF-financed investment projects. The anticipated investment pick-up provides support to the infrastructure and building materials sectors, despite cost inflation concerns, while supportive labor market conditions and declining energy prices should assist in terms of consumption. Initial signs call for yet another record year for Greek tourism. Moreover, megatrends such as the energy transition and RES development are projected to last for many years due to increasing demand for cleaner energy and energy security concerns.

In Southeastern Europe, gross fixed capital formation should emerge as the key growth driver over the medium term, with public investment holding the lead role. Private investment should also contribute to overall growth, amid inflationary conditions and still elevated uncertainty. The Group expects to maintain improved performance and returns in the region, owing to its leadership plant network presence, the operational synergies enjoyed by its plants and the investments that will allow improved energy mix and reduced costs.

Demand in Turkey is expected to continue growing over the next years, the result of the extensive rebuilding underway as well as the reassessment of existing buildings in light of the recent earthquake. In the near term, next year's municipal elections are generating small-scale public investment across different micro markets in the country, further underpinning cement demand. The outlook for the Egyptian market and the wider economy hinges on the institutional progress made in reforming the economy which will ease the fiscal burden on the state and help improve investor and lenders' confidence in the country. The expected continuation of the market regulation agreement should provide in the interim cushion for the cement industry to withstand the current macroeconomic headwinds.

Brazil's outlook has proved more resilient than expected and growth will likely pick up near the end of the year, as economic headwinds should begin to wane. Forecasts anticipate a boost in investment confidence and a rekindle of construction activity thanks to government policies and rate cuts, expected to kick off in H2 2023.

The Group is operating at an elevated level of sales and profitability, for several quarters since early 2022, showcasing the increased importance of its regional footprint, its product offering and the strength of its vertical integration. Moreover, it accelerates various decarbonization and digitalization projects across regions, rolling out more lower clinker types of cement while digitalization initiatives across the production and distribution stage increase throughput and cost savings. We remain agile, proactive and vigilant while we maintain our focus on the customer and our people, continuing our growth investments and targeting broad-based sustainable growth.

FREE TRANSLATION

Titan International SA Rue de la Loi 23, bte 4, 7ième étage 1040 BRUXELLES

For the attention of the Board of Directors

STATUTORY AUDITOR'S REPORT ON REVIEW OF CONSOLIDATED CONDENSED FINANCIAL INFORMATION FOR THE PERIOD ENDED 30 JUNE 2023

Introduction

We have reviewed the accompanying consolidated condensed statement of financial position of Titan Cement International SA and its subsidiaries as of 30 June 2023 and the related consolidated condensed statement of profit and loss and other comprehensive income, changes in equity and cash flows for the six-month period then ended, as well as the explanatory notes. The board of directors is responsible for the preparation and presentation of this consolidated condensed financial information in accordance with IAS 34, as adopted by the European Union. Our responsibility is to express a conclusion on this consolidated condensed financial information based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated condensed financial information is not prepared, in all material respects, in accordance with IAS 34, as adopted by the European Union.

Diegem, 26 July 2023

The statutory auditor PwC Reviseurs d'Entreprises SRL/ Bedrijfsrevisoren BV Represented by

Didier Delanoye Réviseur d'Entreprises / Bedrijfsrevisor

PwC Bedrijfsrevisoren BV - PwC Reviseurs d'Entreprises SRL - Financial Assurance Services Maatschappelijke zetel/Siège social: Culliganlaan 5, B-1831 Diegem T: +32 (0)2 710 4211, F: +32 (0)2 710 4299, www.pwc.com BTW/TVA BE 0429.501.944 / RPR Brussel - RPM Bruxelles / ING BE43 3101 3811 9501 - BIC BBRUBEBB / BELFIUS BE92 0689 0408 8123 - BIC GKCC BEBB

Interim Condensed Consolidated Income Statement

(all amounts in Euro thousands)		For the six months ended 30/6
Notes	2023	2022
Sales 5	1,229,014	1,035,500
Cost of sales	-946,206	-872,591
Gross profit	282,808	162,909
Other operating income	6,963	7,729
Administrative expenses	-102,653	-87,127
Selling and marketing expenses	-13,610	-13,175
Net impairment losses on financial assets	-1,278	-207
Other operating expenses	-3,323	-3,826
Profit before impairment losses on goodwill, interest and taxes	168,907	66,303
Impairment losses on goodwill	-	-10,390
Gain on net monetary position in hyperinflationary economies	6,618	17,407
Finance income	2,733	2,874
Finance expenses	-25,998	-17,449
Loss from foreign exchange differences	-8,704	-1,921
Net finance costs	-25,351	911
Share of loss of associates and joint ventures 11	-1,612	-2,800
Profit before taxes	141,944	54,024
Income taxes 7	-31,279	-8,617
Profit after taxes	110,665	45,407
Attributable to:
Equity holders of the parent	110,857	45,202
Non-controlling interests	-192	205
	110,665	45,407
Basic earnings per share (in €)	1.4815	0.5919
Diluted earnings per share (in €)	1.4802	0.5912

Interim Condensed Consolidated Statement of Comprehensive Income

(all amounts in Euro thousands)		For the six months ended 30/6
	Notes	2023	2022
Profit after taxes		110,665	45,407
Other comprehensive income:
Items that may be reclassified to income statement
Exchange differences on translation of foreign operations	17	-53,824	57,871
Currency translation differences on transactions designated as part of net investment in foreign operation		-5,190	-1,567
Gains on cash flow hedges		26	27,914
Income tax relating to these items	7	1,161	-5,361
Other comprehensive (loss)/income for the period net of tax		-57,827	78,857
Total comprehensive income for the year net of tax		52,838	124,264
Attributable to:
Equity holders of the parent		55,892	118,068
Non-controlling interests		-3,054	6,196
		52,838	124,264

Interim Condensed Consolidated Statement of Financial Position

(all amounts in Euro thousands)	Notes	30/06/2023	31/12/2022
Assets
Property, plant and equipment	8	1,642,751	1,664,474
Investment properties		11,088	11,240
Goodwill	9	275,189	280,834
Intangible assets	10	81,037	83,873
Investments in associates and joint ventures	11	106,515	100,412
Derivative financial instruments		2,506	3,479
Receivables from interim settlement of derivatives	12	7,983	12,103
Other non-current assets		21,680	19,933
Deferred tax assets	7	3,994	5,730
Total non-current assets		2,152,743	2,182,078
Inventories	17	395,304	394,672
Receivables and prepayments	18	330,130	294,829
Income tax receivable		1,787	1,925
Derivative financial instruments	12	1,075	3,601
Receivables from interim settlement of derivatives	12	10,706	11,491
Cash and cash equivalents		107,499	105,703
Total current assets		846,501	812,221
Total Assets		2,999,244	2,994,299
Equity and Liabilities
Equity and reserves attributable to owners of the parent		1,399,822	1,394,533
Non-controlling interests		25,933	29,741
Total equity (a)		1,425,755	1,424,274
Long-term borrowings	12	709,411	704,821
Long-term lease liabilities		55,396	58,777
Derivative financial instruments	12	7,983	12,103
Payables from interim settlement of derivatives	12	1,162	3,450
Deferred tax liability	7	128,913	130,113
Retirement benefit obligations		20,303	20,217
Provisions		50,406	52,209
Non-current contract liabilities		1,074	1,328
Other non-current liabilities		16,752	13,159
Total non-current liabilities		991,400	996,177
Short-term borrowings	12	87,952	122,496
Short-term lease liabilities		16,224	16,870
Derivative financial instruments	12	10,290	9,644
Payables from interim settlement of derivatives	12	2,220	2,822
Trade and other payables	19	429,728	387,725
Current contract liabilities		11,171	13,934
Income tax payable		10,698	5,863
Provisions		13,806	14,494
Total current liabilities		582,089	573,848
Total liabilities (b)		1,573,489	1,570,025
Total Equity and Liabilities (a+b)		2,999,244	2,994,299

Interim Condensed Consolidated Statement of Changes in Equity

(all amounts in Euro thousands)

Attributable to equity holders of the parent

	Ordinary share capital	Share premium	Share options	Ordinary treasury shares	Other reserves (note 14)	Retained earnings	Total	Non-controlling interests	Total equity
Balance at 31 December 2021	1,159,348	5,974	3,913	-31,773	-1,166,698	1,350,862	1,321,626	15,260	1,336,886
Hyperinflation restatement	-	-	-	-	35,699	-	35,699	6,828	42,527
Restated balance at 1 January 2022	1,159,348	5,974	3,913	-31,773	-1,130,999	1,350,862	1,357,325	22,088	1,379,413
Profit for the period	-	-	-	-	-	45,202	45,202	205	45,407
Other comprehensive income	-	-	-	-	72,866	-	72,866	5,991	78,857
Total comprehensive income for the period	-	-	-	-	72,866	45,202	118,068	6,196	124,264
Deferred tax on treasury shares held by subsidiary	-	-	-	-	544	-	544	-	544
Distribution of reserves (note 15)	-	-	-	-	-38,108	-	-38,108	-	-38,108
Dividends distributed	-	-	-	-	-	-	-	-398	-398
Purchase of treasury shares (note 13)	-	-	-	-12,196	-	-	-12,196	-	-12,196
Sale - disposal of treasury shares for option plan (note 13)	-	-	-	432	-	-206	226	-	226
Capital reduction/transfer to distributable reserves	-200,000	-	-	-	200,000	-	-	-	-
Transfer among reserves (note 14)	-	-	-1,663	-	11,900	-10,237	-	-	-
Restated Balance at 30 June 2022	959,348	5,974	2,250	-43,537	-883,797	1,385,621	1,425,859	27,886	1,453,745

Interim Condensed Consolidated Statement of Changes in Equity (continued)

(all amounts in Euro thousands)	Attributable to equity holders of the parent
	Ordinary share capital	Share premium	Share options	Ordinary treasury shares	Other reserves (note 14)	Retained earnings	Total	Non-controlling interests	Total equity
Balance at 31 December 2022	959,348	5,974	1,747	-54,201	-861,810	1,343,475	1,394,533	29,741	1,424,274
Profit for the year	-	-	-	-	-	110,857	110,857	-192	110,665
Other comprehensive loss	-	-	-	-	-54,965	-	-54,965	-2,862	-57,827
Total comprehensive (loss)/income for the year	-	-	-	-	-54,965	110,857	55,892	-3,054	52,838
Deferred tax on treasury shares held by subsidiary	-	-	-	-	-3,062	-	-3,062	-	-3,062
Dividends distributed (note 15)	-	-	-	-	-	-44,956	-44,956	-744	-45,700
Purchase of treasury shares (note 13)	-	-	-	-6,818	-	-	-6,818	-	-6,818
Sale - disposal of treasury shares for option plan (note 13)	-	-	-	4,249	-	-779	3,470	-	3,470
Share based payment transactions	-	-	753	-	-	-	753	-	753
Acquisition of non-controlling interest	-	-	-	-	10	-	10	-10	-
Transfer among reserves (note 14)	-	-	-245	-	7,013	-6,768	-	-	-
Balance at 30 June 2023	959,348	5,974	2,255	-56,770	-912,814	1,401,829	1,399,822	25,933	1,425,755

Interim Condensed Consolidated Cash Flow Statement

(all amounts in Euro thousands)		For the six months ended 30/6
Notes	2023	2022
Cash flows from operating activities
Profit after taxes	110,665	45,407
Taxes	31,279	8,617
Depreciation, amortization and impairment of assets 8,10	72,270	69,999
Impairment of goodwill 9	-	10,390
Interest and related expenses	23,146	17,122
Provisions	11,312	5,103
Hyperinflation adjustments	-4,960	-14,841
Other non-cash items	10,640	-207
Income tax paid	-20,662	-8,969
Changes in working capital	-60,012	-94,140
Net cash generated from operating activities (a)	173,678	38,481
Cash flows from investing activities
Payments for property, plant and equipment 8	-112,342	-92,097
Payments for intangible assets 10	-4,917	-4,364
Payments for other investing activities	-1,829	-1,380
Payments for acquisition of associate 11	-3,400	-
Proceeds from sale of PPE, intangible assets and investment property 8	3,644	974
Proceeds from dividends	1,171	27
Interest received	1,228	294
Net cash flows used in investing activities (b)	-116,445	-96,546
Cash flows from financing activities
Dividends paid	-598	-296
Payments for shares purchased back	-6,818	-12,196
Proceeds from sale of treasury shares	770	226
Interest and other related charges paid	-23,318	-15,511
Principal elements of lease payments	-8,417	-8,599
Proceeds from borrowings and derivative financial instruments	87,499	208,848
Payments of borrowings and derivative financial instruments	-101,454	-105,882
Net cash flows (used in)/from financing activities (c)	-52,336	66,590
Net increase in cash and cash equivalents (a)+(b)+(c)	4,897	8,525
Cash and cash equivalents at beginning of the year	105,703	79,882
Effects of exchange rate changes	-3,101	-510
Cash and cash equivalents at end of the period	107,499	87,897

Contents of the notes to the interim condensed consolidated financial statements

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1. General information

TITAN Cement International S.A. (the Company or TCI) is a société anonyme incorporated under the laws of Belgium. The Company's corporate registration number is 0699.936.657 and its registered address is Rue de la Loi 23, 7th floor, box 4, 1040 Brussels, Belgium, while it has established a place of business in the Republic of Cyprus in the address Andrea Zakou 12 & Michail Paridi str, MC Building, 2404 Egkomi, Nicosia, Cyprus. The Company's shares are traded on Euronext Brussels, with a parallel listing on Athens Stock exchange and Euronext Paris.

The Company and its subsidiaries (collectively the Group) are engaged in the production, trade and distribution of a wide range of construction materials, including cement, concrete, aggregates, cement blocks, dry mortars and fly ash. The Group operates primarily in Greece, the Balkans, Egypt, Turkey, the USA and Brazil.

These interim condensed consolidated financial statements (the financial statements) were approved for issue by the Board of Directors on 26 July 2023.

2. Basis of preparation and summary of significant accounting policies

These financial statements for the six-month period ended 30 June 2023 have been prepared by management in accordance with International Accounting Standard (IAS) 34 "Interim Financial Reporting".

The financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements as at 31 December 2022.

However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual group financial statements.

The official language of these financial statements is French. They are presented in euros, all values are rounded to the nearest thousand (€000), except when otherwise indicated.

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2022, except for the new or revised standards, amendments and/or interpretations that are mandatory for the periods beginning on or after 1 January 2023 and they are applicable to the Group.

New or revised standards, amendments and/or interpretation

The following amendments to standards are mandatory for the first time for the financial year beginning 1 January 2023 and have been endorsed by the European Union:

Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies (effective 1 January 2023). The amendments aim to improve accounting policy disclosures and to help users of the financial statements to distinguish between changes in accounting estimates and changes in accounting policies. The IAS 1 amendment requires companies to disclose their material accounting policy information rather than their significant accounting policies. Further, the amendment to IAS 1 clarifies that immaterial accounting policy information need not be disclosed. To support this amendment, the Board also amended IFRS Practice Statement 2, 'Making Materiality Judgements', to provide guidance on how to apply the concept of materiality to accounting policy disclosures. The amendments are effective for annual reporting periods beginning on or after 1 January 2023.

Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (effective 1 January 2023). The amendment to IAS 8, 'Accounting Policies, Changes in Accounting Estimates and Errors', clarifies how companies should distinguish changes in accounting policies from changes in accounting estimates. The amendments are effective for annual reporting periods beginning on or after 1 January 2023.

Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (effective 1 January 2023 but immediate application permitted). The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The main change in the amendments is an exemption from the initial recognition exemption of IAS 12.15(b) and IAS 12.24. Accordingly, the initial recognition exemption does not apply to transactions in which equal amounts of deductible and taxable temporary differences arise on initial recognition. The amendments are effective for annual reporting periods beginning on or after 1 January 2023.

The Group had either no impact or an immaterial impact from the adoption of the aforementioned amendment of standards.

The following amendments have been issued, but are not mandatory for the first time for the financial year beginning 1 January 2023 and have not been endorsed by the European Union:

Amendments to IAS 1 'Presentation of Financial Statements: Classification of Liabilities as current or non-current' (effective 01/01/2024), affect only the presentation of liabilities in the statement of financial position — not the amount or timing of recognition of any asset, liability income or expenses, or the information that entities disclose about those items. They:

• Clarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period and align the wording in all affected paragraphs to refer to the "right" to defer settlement by at least twelve months and make explicit that only rights in place "at the end of the reporting period" should affect the classification of a liability;

• Clarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services.

• Clarify how conditions with which an entity must comply within 12 months after the reporting period, such as covenants, affect the corresponding liability's classification.

Amendments to IFRS 16 'Leases': Lease Liability in a Sale and Leaseback (effective 1 January 2024). The amendments explain how an entity accounts for a sale and leaseback after the date of the transaction, specifically where some or all the lease payments are variable lease payments that do not depend on an index

or rate. They state that, in subsequently measuring the lease liability, the seller-lessee determines 'lease payments' and 'revised lease payments' in a way that does not result in the seller-lessee recognising any amount of the gain or loss that relates to the right of use it retains. Any gains and losses relating to the full or partial termination of a lease continue to be recognised when they occur as these relate to the right of use terminated and not the right of use retained.

Amendments to IAS 7 'Statement of Cash Flows' and IFRS 7 'Financial Instruments: Disclosures': Supplier Finance Arrangements (effective 1 January 2024). The amendment describes the characteristics for which reporters will have to provide additional disclosures regarding the impact of supplier finance arrangements on liabilities, cash flows and exposure to liquidity risk.

3. Estimates

The preparation of the interim condensed consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and consequently the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. Any update in estimates of specific topics is included in the related note of these consolidated interim financial statements.

4. Seasonality of operations

The Group is a supplier of cement, concrete, aggregates and other building materials. The demand for these products is seasonal in temperate countries such as in Europe and North America. Therefore, the Group generally records lower revenues and operating profits during the first and fourth quarters when adverse weather conditions are present in the northern hemisphere. In contrast, sales and profitability tend to be higher during the second and third quarters, as favorable weather conditions support construction activity.

5. Operating segment information

For management information purposes, the Group is structured in five operating segments: Greece and Western Europe, North America, South Eastern Europe, Eastern Mediterranean and Joint Ventures. Each operating segment is a set of countries. The aggregation of countries is based mainly on geographic position.

Each region has a regional Chief Executive Officer (CEO) who is a member of the Group Executive Committee and reports to the Group's CEO. In addition, the Group's finance department is organized by region for effective financial control and performance monitoring.

Management monitors the operating results of its business units separately for the purpose of making decisions, allocating resources and assessing performance. Segment performance is evaluated based on earnings before interest, taxes, depreciation, amortization & impairment (EBITDA). EBITDA calculation includes the profit before impairment losses on goodwill, interest and taxes plus depreciation, amortization and impairment of tangible and intangible assets and amortization of government grands.

Information by operating segment

(all amounts in Euro thousands)	Period from 1/1-30/6
	Greece and Western Europe			North America		South Eastern Europe		Eastern Mediterranean		Total
	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022
Sales	236,983	195,195	735,544	591,029	195,146	168,647	112,986	115,241	1,280,659	1,070,112
Inter-segment sales	-39,668	-32,473	-	-	-	-	-11,977	-2,139	-51,645	-34,612
Sales to external customers	197,315	162,722	735,544	591,029	195,146	168,647	101,009	113,102	1,229,014	1,035,500
Earnings before interest, taxes, depreciation, amortization and impairment (EBITDA)	36,324	19,923	135,524	62,958	60,013	43,813	9,316	9,608	241,177	136,302
Depreciation, amortization and impairment of tangible and intangible assets	-12,600	-11,580	-40,104	-36,359	-12,605	-12,062	-6,961	-9,998	-72,270	-69,999
Profit before impairment losses on goodwill, interest and taxes	23,724	4,475	95,420	30,467	47,408	31,751	2,355	-390	168,907	66,303

5. Operating segment information (continued)

ASSETS

30/6/2023	31/12/2022	30/6/2023	31/12/2022	30/6/2023	31/12/2022	30/6/2023	31/12/2022	30/6/2023	31/12/2022
									2,901,392
-	-	-	-	-	-	-	-	95,863	92,907
								2,999,244	2,994,299
	700,740	621,984	1,327,436	1,347,108	503,068	489,486	372,137	442,814	2,903,381

LIABILITIES

	Total liabilities	591,264	501,619	710,919	780,960	127,184	136,528	144,122	150,918	1,573,489	1,570,025
--	----------------------	---------	---------	---------	---------	---------	---------	---------	---------	-----------	-----------

Reconciliation of profit

Net finance costs are not allocated to individual segments as the underlying instruments are managed on a Group basis.

(all amounts in Euro thousands)	For the six months ended 30/6
	2023	2022
Profit before impairment losses on goodwill, interest and taxes	168,907	66,303
Impairment losses on goodwill	-	-10,390
Net finance costs	-25,351	911
Share of profit of associates	917	726
Share of loss of joint ventures	-2,529	-3,526
Profit before taxes	141,944	54,024

6. Number of employees

The average number of Group employees for the reporting period was 5,592 (prior period: 5,393).

7. Income tax

The Group calculates the period income tax using the tax rate that would be applicable to the expected total annual earnings.

The major components of income tax in the interim consolidated income statement and the interim statement of comprehensive income are:

(all amounts in Euro thousands)	For the six months ended 30/6
	2023	2022
Current income tax - expense	-25,587	-7,222
Provision for other taxes	-15	-468
Deferred tax expense	-5,677	-927
Income tax recognised in income statement	-31,279	-8,617
Income tax recognised in other comprehensive income	1,161	-5,361
Total income tax - (expense)	-30,118	-13,978

7. Income tax (continued)

The movement of the net deferred tax liabilities is analyzed as follows:

(all amounts in Euro thousands)	2023	2022
Opening balance 1/1	124,383	104,737
Hyperinflation restatement	-	7,827
Restated opening balance 1/1	124,383	112,564
Tax expenses during the period recognised in the income statement	5,182	-750
Deferred tax on treasury shares held by subsidiary (note 14)	3,062	-544
Income tax recognised in other comprehensive income	-1,161	5,361
Hyperinflation adjustment	4,490	7,753
Exchange differences	-11,037	3,261
Ending balance 30/6	124,919	127,645

Deferred income taxes are calculated in full on temporary differences under the liability method using the principal tax rates that apply to the countries in which the companies of the Group operate.

8. Property, plant and equipment

(all amounts in Euro thousands)	Property, plant and equipment	Right of use assets	Total property, plant and equipment
Balance at 1/1/2023	1,594,799	69,675	1,664,474
Additions	106,982	5,360	112,342
Disposals (net book value)	-3,481	32	-3,449
Depreciation/impairment	-59,060	-7,513	-66,573
Transfers from/to other accounts	508	-521	-13
Hyperinflation adjustment	22,037	-	22,037
Exchange differences	-84,869	-1,198	-86,067
Ending balance 30/6/2023	1,576,916	65,835	1,642,751
Balance at 1/1/2022	1,490,564	54,818	1,545,382
Hyperinflation restatement	38,977	52	39,029
Restated balance at 1/1/2022	1,529,541	54,870	1,584,411
Additions	87,077	5,020	92,097
Interest capitalization	1	-	1
Disposals (net book value)	-151	-156	-307
Depreciation/impairment	-57,423	-7,368	-64,791
Transfers from/to other accounts	-1,584	-	-1,584
Hyperinflation adjustment	38,421	-52	38,369
Exchange differences	26,316	3,431	29,747
Ending balance 30/6/2022	1,622,198	55,745	1,677,943

On the Turkish subsidiary Adocim Cimento Beton Sanayi ve Ticaret A.S. assets, there are mortgages of €26.1m, securing bank credit facilities. On 30.6.2023, utilization under these credit facilities amounted to €8.0m.

Assets with a net book value of €3,449 thousand were disposed by the Group during the six months ended 30 June 2023 (1.1-30.6.2022: €307 thousand) resulting in a net gain of €52 thousand (1.1-30.6.2022: gain €167 thousand).

9. Goodwill

(all amounts in Euro thousands)	2023	2022
Opening balance 1/1	280,834	271,986
Hyperinflation restatement	-	10,202
Restated opening balance 1/1	280,834	282,188
Hyperinflation adjustment	2,388	10,390
Impairment	-	-10,390
Exchange differences	-8,033	15,501
Ending balance 30/6	275,189	297,689
North America	201,285	210,565
Bulgaria	45,440	45,440
Turkey	11,106	24,532
Other	17,358	17,152
Total	275,189	297,689

10. Intangible assets

(all amounts in Euro thousands)	2023	2022
Opening balance 1/1	83,873	91,444
Hyperinflation restatement	-	19
Restated opening balance 1/1	83,873	91,463
Additions	4,917	4,364
Transfers from/to other accounts	141	91
Amortization/impairment	-3,663	-3,676
Hyperinflation adjustment	-	10
Exchange differences	-4,231	341
Ending balance 30/6	81,037	92,593

11. Investments in associates and joint ventures

The movement of the Group's participation in associates and joint ventures is analyzed as follows:

(all amounts in Euro thousands)	30/6/2023	31/12/2022
Opening balance 1/1	100,412	88,753
Share of (loss)/gain of associates and joint ventures	-1,612	1,876
Dividends received	-1,171	-923
Additions	3,400	-
Foreign exchange differences	5,486	10,706
Ending balance	106,515	100,412

On 10.2.2023, the Group took a 45% participation in «Aegean Perlites», for a consideration of €3.4m. The company operates perlite and pozzolan quarries on the Greek island of Yali.

12. Financial instruments and fair value measurement

Set out below is a comparison by category of carrying amounts and fair values of the Group's financial instruments.

(all amounts in Euro thousands)		Carrying amount	Fair value
	30/6/2023	31/12/2022	30/6/2023	31/12/2022
Financial assets
At amortised cost
Other non-current financial assets	10,394	10,321	10,394	10,321
Trade receivables	191,520	173,960	191,520	173,960
Cash and cash equivalents	107,499	105,703	107,499	105,703
Other current financial assets	90,143	63,706	90,143	63,706
Fair value through profit and loss
Derivative financial instruments - non current	2,506	3,479	2,506	3,479
Receivables from interim settlement of derivatives - non current	7,983	12,103	7,983	12,103
Other non-current financial assets	3,438	1,610	3,438	1,610
Derivative financial instruments - current	1,075	3,601	1,075	3,601
Receivables from interim settlement of derivatives - current	10,706	11,491	10,706	11,491
Other current financial assets	30	30	30	30
Financial liabilities
At amortised cost
Long term borrowings	709,411	704,821	690,807	675,527
Other non-current financial liabilities	10	30	10	30
Short term borrowings	87,952	122,496	87,952	122,496
Other current financial liabilities	356,008	361,577	356,008	361,577
Fair value through other comprehensive income
Derivative financial instruments - current	2,649	2,747	2,649	2,747
Fair value through profit and loss
Derivative financial instruments - non current	7,983	12,103	7,983	12,103
Payables from interim settlement of derivatives - non current	1,162	3,450	1,162	3,450
Derivative financial instruments - current	7,641	6,897	7,641	6,897
Payables from interim settlement of derivatives - current	2,220	2,822	2,220	2,822

The management assessed that the cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

On 30.6.2023, the Group derivative balances consist of the fair values of:

a) Cross currency interest rate swap agreements (CCS), interest rate swaps (IRS), Euro-US Dollar and Euro-Turkish Lira forward contracts that hedge interest rate risk and/or foreign currency related to loans,

b) Forward freight agreements (FFAs) with the purpose of hedging against the volatility of freight rates,

c) Bunkering swaps to hedge portion of marine oil costs,

d) Energy swap agreements to fix portion of electricity cost (Hungarian baseload power / Argus),

e) Natural gas forward purchase contracts to fix a portion of the monthly NYMEX component of the natural gas costs in USA. The Group designated a cash flow hedge relationship between the highly probable forecast monthly purchase of natural gas and the forward contracts.

12. Financial instruments and fair value measurement (continued)

Offsetting derivative financial instruments with interim settlement of derivatives

The next table shows the gross amounts of the aforementioned derivative financial instruments in relation with their interim settlement, that is received or paid, as they are representing in the statements of financial position as at 30.6.2023 and 31.12.2022, in order to summarize the total net position of the Group.

(all amounts in Euro thousands)	Asset / Liability (-)
	Fair value of derivatives	Interim settlement of derivatives	Net balance
Balance at 30 June 2023
Forwards - expiring in 2023	668	-952	-284
Energy swap - expiring in 2023	-1,291	1,210	-81
Natural gas forwards - expiring in 2023	-2,649	2,730	81
Forward freight agreements - expiring in 2023	-1,079	1,559	480
Bunkering swap - expiring in 2023	1	-	1
Cross currency swaps - expiring in 2024	-12,848	11,922	-926
Interest rate swap - expiring in 2025	2,506	-1,162	1,344
	-14,692	15,307	615
Balance at 31 December 2022
Forwards - expiring in 2023	3,601	-2,822	779
Energy swap - expiring in 2023	-458	-	-458
Natural gas forwards - expiring in 2023	-2,747	1,670	-1,077
Forward freight agreements - expiring in 2023	-1,481	2,548	1,067
Bunkering swap - expiring in 2023	-1	1	-
Cross currency swaps - expiring in 2024	-17,060	19,375	2,315
Interest rate swap - expiring in 2025	3,479	-3,450	29
	-14,667	17,322	2,655

Fair value hierarchy

The Group uses the following hierarchy for determining and disclosing the fair value of the assets and liabilities by valuation method:

Level 1: based on quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: based on valuation techniques whereby all inputs having a significant effect on the fair value are observable, either directly or indirectly and includes quoted prices for identical or similar assets or liabilities in markets that are not so much actively traded. Level 3: based on valuation techniques whereby all inputs having a significant effect on the fair value are not observable market data.

The following table provides the fair value measurement hierarchy of the Group's assets and liabilities.

(all amounts in Euro thousands)		Fair value
	30/6/2023	31/12/2022	Fair value hierarchy
Assets
Investment property	11,088	11,240	Level 3
Other financial assets at fair value through profit and loss	3,468	1,640	Level 3
Derivative financial instruments	3,581	7,080	Level 2
Receivables from interim settlement of derivatives	18,689	23,594	Level 2
Liabilities
Long-term borrowings	578,944	567,796	Level 2
Long-term borrowings	111,863	107,731	Level 3
Short-term borrowings	87,952	122,496	Level 3
Derivative financial instruments	18,273	21,747	Level 2
Payables from interim settlement of derivatives	3,382	6,272	Level 2

There were no transfers between level 1 and 2 fair value measurements during the period and no transfers into or out of level 3 fair value measurements during the six-month period ended 30 June 2023.

13. Share capital and premium

(all amounts are shown in Euro thousands unless otherwise stated)	Ordinary shares		Share premium	Total
	Number of shares	€'000	€'000	Number of shares	€'000
Shares issued and fully paid
Balance at 1 January 2022	78,325,475	1,159,348	5,974	78,325,475	1,165,322
Capital reduction	-	-200,000	-	-	-200,000
Balance at 30 June 2022	78,325,475	959,348	5,974	78,325,475	965,322
Balance at 1 January 2023	78,325,475	959,348	5,974	78,325,475	965,322
Balance at 30 June 2023	78,325,475	959,348	5,974	78,325,475	965,322
	Number of shares	€'000
Treasury shares
Balance at 1 January 2022	1,497,149	31,773
Treasury shares purchased	943,076	12,196
Treasury shares sold	-22,607	-432

Balance at 1 January 2023	3,364,037	54,201
Treasury shares purchased	454,215	6,818
Treasury shares sold	-265,828	-4,249
Balance at 30 June 2023	3,552,424	56,770

Balance at 30 June 2022 2,417,618 43,537

In the first half of 2023, the average shares stock price of TCI is €15.03 (2022: €12.91) and the closing stock price on 30 June 2023 is €17.10 (2022: €11.00).

On 9.5.2022, the Extraordinary Shareholder's Meeting of TCI approved the actual capital reduction by an amount of €200m by way of reimbursement in cash to the shareholders pro rata to the number of shares they hold in the Company. This capital reduction was carried out without cancellation of shares with the purpose of bringing the capital of the Company into line with the present and future needs of the Company. The Meeting granted the Board of Directors the power to decide, at its own discretion, the date of repayment to the shareholders of the aforementioned amount in one or several times.

14. Other reserves

(all amounts in Euro thousands)		Non		Re organization		Tax exempt reserves		Actuarial	Hedging reserve from cash	Currency translation differences on derivative		Foreign currency
	Legal reserve	Distributable reserve	Distributable reserve	reserve (note 22)	Contingency reserves	under special laws	Revaluation reserve	differences reserve	flow hedges	hedging position	Hyperinflation reserve	translation reserve	Total other reserves
Balance at 1 January 2022	108,178	23,603	149,084	-1,188,374	68,098	27,238	49,115	152	1,609	41,115	-	-446,516	-1,166,698
Hyperinflation restatement	-	-	-	-	-	-	-	-	-	-	35,699	-	35,699
Restated Balance at 1 January 2022	108,178	23,603	149,084	-1,188,374	68,098	27,238	49,115	152	1,609	41,115	35,699	-446,516	-1,130,999
Other comprehensive income	-	-	-	-	-	-	-	-	27,203	-	24,379	21,284	72,866
Deferred tax on treasury shares held by subsidiary	-	-	-	-	-	-	544	-	-	-	-	-	544
Distribution of reserves (note 15)	-	-	-38,108	-	-	-	-	-	-	-	-	-	-38,108
Capital reduction/transfer to distributable reserves	-	-	200,000	-	-	-	-	-	-	-	-	-	200,000
Transfer from/to retained earnings	21,277	-	-757	-	-14,390	5,419	-1,312	-	-	-	-	-	10,237
Transfer from share options	-	-	-	-	1,663	-	-	-	-	-	-	-	1,663
Transfer among reserves	-	11,832	-11,832	-	-	-	-	-	-	-	-	-	-
Balance at 30 June 2022	129,455	35,435	298,387	-1,188,374	55,371	32,657	48,347	152	28,812	41,115	60,078	-425,232	-883,797
Balance at 1 January 2023	158,770	45,463	363,359	-1,188,374	55,876	35,659	46,782	1,593	26,619	41,115	71,821	-520,493	-861,810
Other comprehensive income	-	-	-	-	-	-	-	-	19	-	14,730	-69,714	-54,965
Deferred tax on treasury shares held by subsidiary	-	-	-	-	-	-	-3,062	-	-	-	-	-	-3,062
Acquisition of non-controlling interest	-	-	-	-	-	-	10	-	-	-	-	-	10
Transfer from/(to) retained earnings	36	-	-	-	-	7,540	-808	-	-	-	-	-	6,768
Transfer from share options	-	-	-	-	245	-	-	-	-	-	-	-	245
Transfer among reserves	-	5,741	-5,741	-	-	-	-	-	-	-	-	-	-
Balance at 30 June 2023	158,806	51,204	357,618	-1,188,374	56,121	43,199	42,922	1,593	26,638	41,115	86,551	-590,207	-912,814

15. Dividends and return of capital

For the period ended 30.6.2023

Dividends distributed

On 11 May 2023, the Annual General Meeting of Shareholders of Titan Cement International SA approved the distribution of a gross dividend of €0.60 (60 cents) per share to all shareholders of the Company on record on 29 June 2023, which was paid on 5 July 2023.

For the period ended 30.6.2022

Return of capital paid

Following the authorization granted to the Board of Directors by the Extraordinary Meeting of the Company's Shareholders on 13 May 2019, the Board of Directors of Titan Cement International SA decided on the 16 March 2022 the return of capital of €0.50 (50 cents) per share to all the Shareholders of the Company on record on 28 April 2022, which was paid on 5 July 2022.

16. Contingencies and commitments

Contingent Liabilities

(all amounts in Euro thousands)	30/6/2023	31/12/2022
Bank guarantee letters	19,859	21,657
	19,859	21,657
Contingent assets
(all amounts in Euro thousands)	30/6/2023	31/12/2022
Bank guarantee letters for securing trade receivables	21,901	25,418
Other collaterals against trade receivables	7,672	7,054
	29,573	32,472
Collaterals against other receivables	1,819	2,358
	31,392	34,830

Commitments

Capital commitments

(all amounts in Euro thousands)	30/6/2023	31/12/2022
Property, plant and equipment	6,283	5,197

Purchase commitments

(all amounts in Euro thousands)	30/6/2023	31/12/2022
	6,035	1,286

The increase in purchase commitments is mainly due to electricity and fossil fuels commitments in South Eastern Europe region.

In addition to the aforementioned purchase commitments, the Group's US subsidiaries entered a contract to purchase raw materials and manufacturing supplies as part of their on-going operations in Florida. This includes a contract to buy construction aggregates through a multi-year agreement at prevailing market prices. Moreover, Titan America LLC (TALLC) entered into a take-or-pay natural gas agreement with the local utility in 2019 that requires TALLC to pay the utility €10.7m (\$11.6m) over a maximum period of 6 years. On 30.6.2023, TALLC had paid €6.4m (\$7.0m) cumulatively under the agreement.

Simultaneously, TALLC entered into capacity supply agreements with a natural gas marketer annually since 2020. On 30.6.2023, there is committed volume of 1,240,000 MMBtu's remaining through October 2023 under the contract.

17. Exchange differences on translation of foreign operations

The Group recognized exchange losses on translation of foreign operations of €53.8m mainly due to euro appreciation against Egyptian pound (loss of €34.7m) and Turkish lira (loss of €39.6m). Furthermore, a gain of €18.8m was recognized in exchange differences on translation of foreign operations in other comprehensive income, as a result of the indexation of Turkish subsidiaries' equity due to the application of IAS 29 - Financial Reporting in Hyperinflationary Economies.

18. Receivables and prepayments

Receivables and prepayments increased by €35.3m, because of the trade receivable balances, which reflect the increase in revenue due to price increases combined with resilient demand and the seasonality of the business.

19. Trade and Other Payables

Trade and other payables increased by a net amount of €42.0m, consisting of the Company's dividend payable amounted to €45.0m, foreign exchange differences increase of €19.8m and trade suppliers decrease of €24.8m.

20. Reclassifications

In order the interim consolidated income statement of 2022 to be comparable with current's period income statement, "cost of sales" and "gain on goodwill restatement in hyperinflationary economies" decreased by €2,769 thousand and €10,390 thousand respectively with a corresponding increase in "net finance costs". The change had no impact in the consolidated "profit before taxes" and "profit after taxes".

21. Events after the reporting period

There are no subsequent events to 30 June 2023, which would materially influence the Group's financial position.

22. Principal exchange rates

Spot rates	30/6/2023	31/12/2022	30/6/2023 vs 31/12/2022
€1 = USD	1.09	1.07	2%
€1 = EGP	33.71	26.50	27%
€1 = TRY	28.32	19.96	42%
€1 = BRL	5.24	5.56	-6%
€1 = RSD	117.23	117.32	-%
1USD=EGP	31.03	24.84	25%

Average rates	Ave 6M 2023	Ave 6M 2022	Ave 6M 2023 vs 6M 2022
€1 = USD	1.08	1.09	-1%
€1 = EGP	32.93	18.88	74%
€1 = TRY	21.57	16.25	33%
€1 = BRL	5.48	5.56	-1%
€1 = RSD	117.31	117.59	-%
1USD=EGP	30.47	17.27	76%