Titan S.A.

Quarterly Report • May 24, 2018

1 January – 31 March 2018

Group of Titan Cement Company S.A. Financial Summary Update

Summary of Interim Consolidated Income Statement

	For the three months ended 31/3
	2018	2017
Sales of goods	322,469	361,835
Cost of sales	-244,793	-275,249
Gross profit before depreciation, amortization and impairment	77,676	86,586
Net other income	519	251
Administrative expenses	-29,471	-30,238
Selling and marketing expenses	-5,209	-5,495
Profit before interest, taxes, depreciation, amortization and impairment	43,515	51,104
Depreciation, amortization and impairment	-26,935	-28,529
Profit before interest and taxes	16,580	22,575
Net finance costs	-14,044	-13,799
Gains/(losses) from foreign exchange differences	2,045	-4,980
Share of losses of associates and joint ventures	-1,975	-4,493
Profit/(loss) before taxes	2,606	-697
Income tax	-1,463	-3,230
Profit/(loss) for the period	1,143	-3,927
Attributable to:
Equity holders of the parent	944	-3,871
Non-controlling interests	199	-56
	1,143	-3,927
Basic earnings/(losses) per share (in €)	0.0117	-0.0480
Diluted earnings/(losses) per share (in €)	0.0117	-0.0477

Summary of Interim Consolidated Statement of Comprehensive Income

	For the three months ended 31/3
	2018	2017
Profit/(loss) for the period	1,143	-3,927
Other comprehensive loss:
Exchange differences on translation of foreign operations	-23,359	-13,208
Other comprehensive losses	-1,487	-1,188
Deferred tax benefit	335	267
	-1,152	-921
Net other comprehensive loss	-24,511	-14,129
Total comprehensive loss for the period net of tax	-23,368	-18,056
Attributable to:
Equity holders of the parent	-23,066	-17,260
Non-controlling interests	-302	-796
	-23,368	-18,056

Summary of Interim Consolidated Statement of Financial Position

Assets	31/03/2018	31/12/2017
Property, plant & equipment and investment property	1,450,517	1,478,176
Intangible assets and goodwill	338,905	345,971
Investments in associates and joint ventures	164,493	160,904
Other non-current assets	13,262	13,393
Deferred tax asset	3,879	2,926
Non-current assets	1,971,056	2,001,370
Inventories	263,332	258,204
Receivables, prepayments and other current assets	196,814	181,646
Cash and cash equivalents	233,769	154,247
Current assets	693,915	594,097
Total Assets	2,664,971	2,595,467
Equity and Liabilities
Share Capital (84,632,528 shares of €3.00)	253,897	253,897
Share premium	22,826	22,826
Other equity	-103,404	-102,381
Other reserves	705,500	723,716
Retained earnings	401,594	409,155
Equity attributable to equity holders of the parent	1,280,413	1,307,213
Non-controlling interests	62,088	62,459
Total equity (a)	1,342,501	1,369,672
Long-term borrowings	920,062	820,382
Deferred tax liability	40,619	39,644
Retirement benefit obligations	31,431	32,440
Provisions	31,694	30,172
Other non-current liabilities	6,661	6,711
Total non-current liabilities	1,030,467	929,349
Short-term borrowings	51,845	56,825
Trade, income tax and other payables	231,756	231,063
Provisions	8,402	8,558
Total current liabilities	292,003	296,446
Total liabilities (b)	1,322,470	1,225,795
Total Equity and Liabilities (a+b)	2,664,971	2,595,467

Summary of Interim Consolidated Cash Flow Statement

	For the three months ended 31/3
	2018	2017
Cash flows from operating activities
Profit/(loss) before taxes	2,606	-697
Non-cash adjustments	42,108	54,283
Adjusted profit before changes in working capital	44,714	53,586
Increase in inventories	-7,417	-23,861
Increase in trade and other receivables	-19,626	-19,565
Ιncrease in trade and other payables (excluding banks)	633	4,538
Cash generated from operations	18,304	14,698
Income tax paid	-2,165	-1,955
Net cash flows from operating activities	16,139	12,743
Cash flows from investing activities
Payments for tangible and intangible assets	-19,208	-32,914
Proceeds from sale of tangible and intangible assets	767	158
Proceeds from dividends	312	527
Net payments for increase in investments to affiliates or other equity instruments	-12,576	-27,674
Net cash flows used in investing activities	-30,705	-59,903
Cash flows from financing activities
Net payments of interest and other related charges	-11,708	-17,263
Net payments for purchase of treasury shares	-1,343	-63
Other (payments)/proceeds (of)/from financing activities	-1,050	326
Net proceeds/(repayments) from/(of) borrowings	109,601	-17,676
Net cash flows from/(used in) financing activities	95,500	-34,676
Net increase/(decrease) in cash and cash equivalents	80,934	-81,836
Cash and cash equivalents at start of period	154,247	179,710
Effects of exchange rate changes	-1,412	107
Cash and cash equivalents at end of period	233,769	97,981

Summary of Segment information

(all amounts in Euro thousands)	Europe	Greece and Western	North America		Southeastern Europe		Eastern Mediterranean		Total
Period from 1/1-31/3	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017
Gross revenue	65,940	80,675	190,604	221,265	35,312	39,676	44,766	45,156	336,622	386,772
Inter-segment revenue	-13,018	-23,089	-50	-58	-1,085	-1,790	-	-	-14,153	-24,937
Revenue from external customers	52,922	57,586	190,554	221,207	34,227	37,886	44,766	45,156	322,469	361,835
Profit before interest, taxes, depreciation, amortization and impairment	2,095	4,358	29,069	34,060	3,926	3,775	8,425	8,911	43,515	51,104
Depreciation, amortization and impairment	-5,029	-5,581	-13,853	-14,806	-5,527	-5,425	-2,526	-2,717	-26,935	-28,529
(Loss)/profit before interest and taxes	-2,934	-1,224	15,216	19,254	-1,601	-1,650	5,899	6,195	16,580	22,575

	Greece and Western
(all amounts in Euro thousands)	Europe		North America		Southeastern Europe		Eastern Mediterranean		Total
	31/3/2018	31/12/2017	31/3/2018	31/12/2017	31/3/2018	31/12/2017	31/3/2018	31/12/2017	31/3/2018	31/12/2017
Total assets of segments excluding Joint Ventures	577,528	580,878	1,067,944	996,778	481,093	481,987	381,223	382,622	2,507,788	2,442,265
Total assets of Joint Ventures									157,183	153,202
Total assets									2,664,971	2,595,467
Total liabilities	390,261	375,486	537,568	461,473	136,042	137,395	258,599	251,441	1,322,470	1,225,795

Foreign exchange differences

The variance of €7.0 mil. in the account "Gains/(losses) from foreign exchange differences" in the summary of interim consolidated income statement for the period ended 31 March 2018 compared to the three months of the previous year is mainly due to the valuation of loans and other liabilities (including intercompany loans) in Euro, recorded by the Group's subsidiaries that operate in Egypt and US and have other functional currency. The volatility arising from foreign exchange rate fluctuations will continue to affect the Group's performance until the full repayment of the respective loans.