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Edited Transcript of TITK.AT earnings conference call or presentation 31-Jul-19 4:00pm GMT

Q2 2019 Titan Cement Company SA Earnings Call

Athens Aug 3, 2019 (Thomson StreetEvents) -- Edited Transcript of Titan Cement Company SA earnings conference call or presentation Wednesday, July 31, 2019 at 4:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Dimitrios Th. Papalexopoulos

Titan Cement International S.A. - CEO, MD, Executive Director & Member of Advisory Council

* Michael H. Colakides

Titan Cement International S.A. - Group CFO, Senior Strategic Advisor & Executive Director

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Conference Call Participants

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* Argyrios Gkonis

Axia Ventures Group Ltd, Research Division - SVP

* Iakovos Kourtesis

Piraeus Securities S.A., Research Division - Research Analyst

* Saharat Hartmann

* Yves Brian Felix Bromehead

Exane BNP Paribas, Research Division - Analyst of Building Materials

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Presentation

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Operator [1]

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Ladies and gentlemen, thank you for standing by. I am Gail, your Chorus Call operator. Welcome, and thank you for joining the TITAN Cement Group conference call to present and discuss the 6 months 2019 financial results.

At this time, I would like to turn the conference over to Mr. Dimitri Papalexopoulos, Chief Executive Officer; and Mr. Michael Colakides, Group Chief Financial Officer of the TITAN Cement Group. Mr. Colakides, you may now proceed.

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Michael H. Colakides, Titan Cement International S.A. - Group CFO, Senior Strategic Advisor & Executive Director [2]

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Good evening, ladies and gentlemen, and good morning to a couple of you who are in the U.S. Welcome to our conference call for the year's first half results, and thank you for joining us today. We appreciate the results were sent out just a few minutes ago and ask for your understanding during this transitional period in terms of reporting schedule as we adapt to the requirements of our new listing and we had to wait until the Euronext trading closed.

As you know, on 17th of July, TITAN Cement International, TCI, announced the successful outcome of the voluntary share exchange tender offer that was submitted last April to acquire all of the ordinary preference shares issued by TITAN Cement S.A. TITAN in consideration for new ordinary shares issued by TCI at an exchange ratio of 1 TCI share for each TITAN share. 93% of TITAN's ordinary shares and 92.4% of TITAN's preference shares were tendered. Given the successful outcome of the offer, TCI became the parent company of the TITAN Group and its shares were listed on the 23rd of July on Euronext Brussels, Euronext Paris and the Athens Exchange.

While the parent and the listing changed, the group remains the same. The core shareholder base, comprising members of the founding family of TITAN Group, remains unchanged, and our operations remain unchanged. A new Board of Directors of TCI has been elected, including all the executive directors previously at TITAN level, and there is a majority of independent directors in the new Board. The high standards corporate governance we have always aspired to as a group are also embedded in TCI, which adopted as its reference code the 2020 Belgian Code on Corporate Governance.

As regards to TCI share, we have been notified that MSCI intend to include TCI in the MSCI Global Standard Indices (sic) [Indexes] classified in Greece, while FTSE Russell plan to add the TCI shares to the GEIS Small Cap indices in Belgium. Last, the TCI shares will be replacing the TITAN shares in the Athens Exchange indices, in which they participate.

This is one more important milestone in TITAN's 117 years' history reflecting the international orientation of the group and the strategic focus to further strengthen its independent international growth and development. The TCI listing aims at broadening the group's funding sources by improving access to both international debt capital markets and international banking institution at more competitive financing costs.

TITAN shareholders who did not tender their shares are entitled to exercise their sell-out rights. And on the other hand, TCI intends to exercise its squeeze-out rights, whereby we'll acquire all the remaining TITAN shares under the terms prescribed in the public offer. We expect to have the regulatory approval to start the squeeze-out within the next couple of days.

And now, let's turn to an overview of the first half results of TITAN Cement Group. In the first half of 2019, TITAN Group recorded growth in sales revenue in all regions of operations with the exception of the Eastern Mediterranean. Consolidated turnover for the group assisted by a stronger dollar reached EUR 786 million, recording a 10.2% increase compared to the same period of 2018. This growth in revenue is attributable to the strong performance in the U.S. markets, growth in demand witnessed in Southeastern Europe and a modest recovery of the sales of the Greek operations.

Group EBITDA remained stable at EUR 122 million despite the persistent challenging conditions in both Egypt and Turkey, which led to a drop in both revenue and profitability in the region, thereby offsetting the other regions' improved operational profitability. The group's net profit after minority interest and taxes was EUR 13 million compared to EUR 25 million at same period last year, a drop related to the strength of the U.S. dollar, which caused a $5 million loss of ForEx hedging costs and higher depreciation charges.

Activity in the U.S. continued strong reflecting the healthy stage of both the economy and the market. Sales volume growth across all products brought turnover up to EUR 472 million, a 13.9% growth or 6.3% in U.S. dollars compared to 2018 and an increased EBITDA at EUR 84 million, a 4.9% improvement. In Greece, the domestic market recorded a modest volume increase, which led to an 8% increase in turnover compared to last year to EUR 123 million. EBITDA almost doubled to EUR 10 million, also favored by dollar-denominated exports.

In Southeast Europe, favorable market conditions continued in most countries as had been already witnessed in the first quarter. Combined with improved prices led to increases in both turnover and EBITDA, we reached EUR 121 million and EUR 33 million, respectively, recording corresponding increases of 17% and 37% compared to 2018. In the East Med, market conditions remain challenging. Turnover in the first half of 2019 decreased by 13.5% versus last year. But if we take it in euro terms on a like-for-like basis, including the Adocim sales, that would have been a 32% drop.

First half 2019 EBITDA was negative at EUR 5 million, although the second quarter closed with a positive of EUR 500,000. Net debt for the period stood at EUR 839 million, up by EUR 67 million compared to December '18, mostly due to the EUR 59 million of IFRS 16 adoption and inclusion of long-term liabilities in net debt. Finally in terms of cash flow, the group generated EUR 54 million in the first half in operating cash flow compared to -- EUR 25 million higher than the first half of 2018.

Turning to the next slide. We see the growth charts for turnover and profitability. Q2 turnover growth of 8.4% resulted to a first semester increase of 10.2%. On the other hand, EBITDA remained flat at EUR 122 million as the EUR 18 million improved EBITDA profitability of all the other regions was offset by an equal amount of a negative swing in EBITDA in East Med.

Turning to the next slide. The pattern of sales volume was similar in the first half and the quarter reflecting the trends already mentioned. Increases in sales volumes in the U.S., Southeast Europe and Greece were weighed down by the sharp declines in Turkey and Egypt. Marginally lower ready-mix concrete volumes also reflect declines in Turkey and Egypt. Aggregate volumes increased thanks to higher volumes in the U.S. and Greece.

Turning to our income statement. Looking at the P&L, we had EUR 73 million increase in sales and EUR 67 million rise in cost of goods sold leading to a flat EBITDA of EUR 122 million over the first half of 2018. This margin decline is due to a large extent to East Med but also partially to America as will be explained later. Below the EBITDA line, this year, we recorded higher depreciation charges by nearly EUR 12 million, about half of it due to the implementation of IFRS 16 and the rest due to the strong U.S. dollar and also due to the full consolidation of Adocim in Turkey for the first year. Share of profits from associate and JVs reflect better results from our JV Apodi in Brazil. And as mentioned before, the negative FX result of EUR 5 million is mainly related to the U.S. dollar loans hedging costs.

Turning to Slide 6. Without dwelling into figures, this slide primarily highlights the cyclicality of our business. It also shows the current leaders and laggers in terms of operating profitability. The U.S. remains robust, and Southeast Europe shows a good trend in growing profitability. The East Med is in a trough against a modest uptick in Greek profitability. Nevertheless, our medium- to long-term growth expectations are positive both for Greece and sooner than we hoped in the past as well as for both countries in the East Med.

Turning to the next slide for our cash flow. Group operating cash flow in the first half improved to EUR 54 million, up from EUR 29 million the first half of 2018 benefiting from lower working capital seasonal needs. CapEx in the first half at EUR 53 million, similar to last year's of EUR 55 million. Net debt increased by EUR 67 million against the end of 2018 after the payment of EUR 13 million dividend to the shareholders, and last year that was paid after June 30 and also after having added the EUR 59 million of long-term liabilities stemming from the adoption of IFRS 16.

Looking at our balance sheet on the next slide. The balance sheet has increased by some EUR 225 million in property, plant and equipment compared to the same period last year. About EUR 110 million represent a full consolidation of the Turkish Adocim cement plant, EUR 54 million is the impact of the IFRS 16 assets, while the rest reflects mostly CapEx and FX difference from the U.S.

Total assets were a bit over EUR 3 billion, while the high cash balance on June 30 was helped to cover the repayment of the maturing bond of EUR 161 million on July 10, which was included on the balance sheet under short-term borrowings on the same date.

Moving to Slide 10. At the end of June 2019, net debt stood at EUR 839 million, higher by EUR 67 million compared to 2018. The IFRS 16 liabilities are marked in red color in the maturity profile graph at the bottom of the page. Following the redemption of the mature bond earlier this month, the group's next important maturity comes in July 2021.

Now turning to our performance by region on Slide 11 covering the U.S. Activity in the U.S. continued strong reflecting the healthy state of both the economy and the market. Demand for building materials was higher compared to the previous year across all TITAN America markets, leading to volume and revenue growth across all products with the exception of fly ash.

Turnover recorded a 13.9% increase or 6.3% in dollar terms in the first half of the year reaching EUR 472 million and EBITDA EUR 84 million increased by 4.9%. The second quarter profitability was adversely impacted by 2 factors. And as a result, the top line growth did not translate into higher EBITDA. On the one hand, we had the reduced supply of fly ash as several power plants use fuel other than coal causing a loss of earnings from this product stream as well as leading to the use of more expensive cement rather than fly ash in ready-mix.

Second, the planned Q2 Pennsuco shutdown forced us to make much higher use of the Tampa import terminal to cover our customers' demand for an expanded geographical region. This meant paying more to hire ocean freights for more expensive imported cement and much higher logistics and transportation costs. The good news is that the repairs are now over, and the plant is now operating with higher daily production capabilities and higher reliability levels.

The economic fundamentals of job and income growth as well as favorable mortgage rates continue to underpin residential construction growth. Also infrastructure spending is up on our markets supported by strong state transportation budgets and local ballot funding initiatives.

Turning to Greece. Turnover in Greece and Western Europe in the first half increased by almost 8% to EUR 123 million, while EBITDA almost doubled to EUR 10 million. This improvement in performance was partly due to an increase in domestic market volumes due to tourist-related projects and a higher level of private sector consumption. Profitability was also assisted by the positive impact of a stronger U.S. dollar on export revenues.

The spike in CO2 prices adversely impacted electricity costs. In the first half, we also consumed more expensive pet coke, which, however, is on a declining trajectory, which will become more visible and beneficial in the second half of the year. The commencement of major projects, which have been delayed, is now dependent on the new government initiatives. However, they should not be counted upon to materially affect 2019 market demand.

Moving to Southeast Europe. In the growing economies of Southeastern Europe, construction activity and demand for building materials continued to increase combined with improved prices, thus resulting in an overall improved performance. In the first half of the year, turnover posted a 17% increase to EUR 121 million, while EBITDA was up by 37% reaching EUR 33 million. Both markets posted growth of volumes and successful price increases that helped profitability and margin despite increasing some cost elements and in particular in electricity costs. These market trends should continue throughout 2019.

Moving on to East Med. In the Eastern Mediterranean, market conditions remained challenging, and performance was penalized by the decline in Egypt and the crisis in Turkey. As a result, H1 turnover for the region reached EUR 70 million recording a 17% -- a 14% decline or over 30% in euros if we include Adocim turnover in 2018. At the EBITDA level, there was a big negative swing as the group recorded a EUR 5 million negative EBITDA versus a positive of EUR 15 million the same period in 2018. Some consolation may be drawn by the fact that the Q2 showed better results than Q1. There was a small positive EBITDA of EUR 0.5 million in Q2 compared to a negative EUR 5 million in Q1.

In Egypt, it is estimated that the domestic market cement consumption shrunk by approximately 5% in the first half. Coupled with the existing surplus capacity, stagnant prices and rising operating costs, profitability remains poor. In Turkey, as anticipated, demand continued to decline rapidly and is estimated to decline by about 30% year-on-year. Although prices increased in local currency, they were not sufficient to cover high inflation and the weakening of the Turkish lira. As mentioned in previous communications, our low operating cost and underlevered subsidiary, Adocim, is well prepared to weather the storm.

Finally, a few words about our joint venture in Brazil. The market in Brazil appears to have left the worst behind. And in the first half of 2019, cement consumption in the country increased by 1.5%. Record wet weather in the North and Northeast regions where Apodi, our 50% joint venture, operates, held back consumption in the region, which remained overall flat. Cement sale volume in our JV were broadly stable, while turnover in the first half increased by 7% in euro terms reflecting better market dynamics and improved pricing environment.

On the other hand, uncertainty about last transportation rates, which still seem to be under dispute, poses a risk on the profitability of our business. The relative political stability in the country and the progress on structural reforms, especially the pension system, raised expectations for a more promising outlook in the construction sector.

Now this completes the review of performance in the quarter, and I would like now to hand over to Dimitri for the outlook for the remainder of the year. Dimitri?

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Dimitrios Th. Papalexopoulos, Titan Cement International S.A. - CEO, MD, Executive Director & Member of Advisory Council [3]

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Thank you, Michael, and greetings to everyone. Despite a second quarter that didn't fully live up to our expectations, we maintain a positive outlook for our operating performance for the full year and beyond. The prospects are improving for Greece, Southeastern Europe and Brazil. There is good potential for further growth in the U.S. Energy price trends are mixed with solid fuels down and power costs up, but overall moving positively. Margins are holding up or improving. The dark spot in an otherwise decent picture is, of course, our Eastern Med region consisting of Egypt and Turkey, where conditions are expected to remain challenging in the short term.

So let me say a few more words for each region. In the U.S., reading the tea leaves is made a bit more difficult by quarterly volatility and quite a bit of white noise, but the underlying fundamentals remain solid. The unpredictability of the weather seems to provide us with more excuses more often than in the past. The assessment of the macro picture of the U.S. economy blows hot and cold. Efforts to fund much needed infrastructure spending at the federal level are moving ahead albeit in fits and starts, but with bipartisan support. Local funding is also improving.

Cement demand is somewhat slower -- excuse me, cement demand growth is somewhat slower and patchier than earlier in the cycle. Executing well in the market is becoming more challenging as production and logistic systems by now have less slack to deal with disruptions. Nevertheless, despite all that noise, the market trends remain positive. Demand is projected to grow over the medium term by the Portland Cement Association of America. We are very far from previous peaks as we have discussed in previous calls. Capacity utilization is moving up, which is supportive. We continue to see opportunities for bolt-on growth and efficiency and cost improvements. And we remain well positioned to capture market growth and generate healthy free cash flow.

In Greece, for the first time in a while, there's a palpable sense of optimism. The new government is acting decisively to put the country on a higher growth trajectory. It seems committed to unlocking stalled projects and welcoming new ones. It is proposing to exempt new buildings from value-added tax for 3 years, although we have yet to see the specifics on that proposal. It is still early days, of course, but the markets do seem convinced. Cement is typically one of the late beneficiaries in the virtuous cycle that comes with returning confidence. We do not expect a big uptick this year, but our outlook for 2020 is certainly brighter than it was a few months ago.

In Southeastern Europe, continuing economic growth and macro stability are having a positive effect on construction activity. Price increases have been implemented successfully, capacity utilization is slowly improving, synergies and cost efficiencies still worked on. Further operating leverage is available to us from current levels. In Turkey, macroeconomic uncertainty remains high. Cement demand for the full year seems likely to be about 30% below last year and about 40% below the 2017 high. As previously mentioned, we are well placed to ride out the storm owing to our modern asset base, low cost and low gearing. We do not expect a drain in cash flow in the short term while anticipating an eventual return to growth.

Finally, in Egypt, the situation looks set to remain painful in the second half of the year. Although the macro background is improving, the cement sector is drowning in red ink. Electricity and liquid fuel costs were increased again on July 1. Demand remains weak, exacerbating the overcapacity problem a year or so after the new 12 million ton Army plant entered the market, and the acute price war shows no signs of abating. Increasingly, there is discussion of a political intervention. The current situation is clearly untenable, but visibility is still low, and it's too early to anticipate an improvement.

So in summary, as I mentioned at the beginning, we maintain our expectation of an improvement in the group's operating performance for the full year. With the successful implementation of the voluntary exchange behind us and the squeeze-out, sell-out process expected to be completed soon, we can now focus on the next chapter of our history.

So with that, I'd like to open it up for questions. Thank you.

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Questions and Answers

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Operator [1]

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The first question is from the line of Bromehead, Yves with Exane BNP Paribas.

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Yves Brian Felix Bromehead, Exane BNP Paribas, Research Division - Analyst of Building Materials [2]

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Just a few question on my side. First, congratulation on the successful listing in Brussels. And I have 2 questions, if I can. First one is on the U.S. Could you maybe give us a bit more color in terms of the fly ash situation? And how we should think about this going forward? Has this continued and will continue in H2? And my second question is on the leverage on the debt side. One of the key reasons why you listed -- well you have a main listing in the Euronext Brussels is for refinancing purposes. Could you maybe give us a bit more color in terms of when you expect that to come through? And maybe what type of rates and what type of debt instruments will you use in the short to medium term?

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Dimitrios Th. Papalexopoulos, Titan Cement International S.A. - CEO, MD, Executive Director & Member of Advisory Council [3]

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Let me take the first question and then pass it on to Michael for the second question. So the fly ash situation has -- as follows, fly ash, again very basic, is a byproduct of coal combustion in power plants. The coal being used in power plants is generally going down in unpredictable ways. And we're seeing a significant reduction of the share of coal-fired plants in electricity generation in the U.S. That is neither a fully linear nor a fully predictable process, and it changes a lot. We have also seen plants that have closed down or being mothballed, reopened. We have seen plants operate for certain months and then close for a few months. But generally speaking, although there will be some volatility, I think it is fair to say that we're clearly talking about a structural shift, in which we will be making less contribution from this product line, roughly along the lines described by Michael. Does that answer your question, Yves?

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Yves Brian Felix Bromehead, Exane BNP Paribas, Research Division - Analyst of Building Materials [4]

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Yes. Actually just a follow up on that. Could you maybe quantify the impact in H1 '19 between the shutdowns, the maintenance and the fly ash situation just to get an understanding of what we should expect maybe for H2 as the plants come back on stream?

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Michael H. Colakides, Titan Cement International S.A. - Group CFO, Senior Strategic Advisor & Executive Director [5]

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I can give you a very broad, if you wish, framework. We would have expected profitability to grow by some EUR 15 million more or less in the first half. And these 2 factors took away practically this expected increase. I would say that more of it came from the Tampa Pennsuco disruption, which was planned, but came at a difficult time of the year. Ocean freights have gone up. Cost of cement -- exported cement was higher. That is a nonrecurrable, if you wish, event. And that was most -- took the most of the blame, if you wish, for the (inaudible) profitability.

Now regarding your question on refinancing, there are no immediate plans. As you know, we have the squeeze-out process to be done over the next couple of weeks more or less, 2 to 3 weeks. We have to see how much debt will pile up at the end of the whole exercise. By that time, we will be -- TCI will become 100% owner of TITAN Cement. That was an outcome which was not sure when we began this second tender exercise since the 90% and squeeze-out were not certain. This gives us much more freedom to restructure the group, shift debt around, shift subsidiaries. We have to work the plan now in more detail, maybe in more speed. I would not expect any refinancing exercise to take place within this year. It will be an early 2020 exercise.

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Operator [6]

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The next question is from the line of Hartmann, Saharat with On Field Investment Research.

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Saharat Hartmann, [7]

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I have 3 questions for you today. Firstly, what is your strategy for exports in the second half of this year and perhaps next year? And secondly, we have heard there is an independent import facility in California. Is this something you monitor? And will it have an effect on prices? And lastly, if there are any consolidation activities in Egypt in the near future, do you foresee that you will participate in these consolidation activities?

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Dimitrios Th. Papalexopoulos, Titan Cement International S.A. - CEO, MD, Executive Director & Member of Advisory Council [8]

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Let me start from the end, if I may. Consolidation in Egypt, we have not seen any significant moves at this point in time. Obviously, this is the kind of question where we are -- the textbook answer, it's also a fair answer, is that we continuously look at the portfolio and continuously evaluate it -- reevaluate it both in terms of what we now own, and what we'd like to own and what we'd no longer like to own, and we will continuously monitor the situation as it develops, so which is a way of saying let's see.

In terms of import facilities in the U.S., existing facilities in several areas have plenty of capacity to cope with growing demand. Independent facilities have sprung up in a couple of places, not only in California, also in Georgia. At this point, it's something to be monitored and does not -- is not in some of our areas of operation, and it's not anticipated at this time at least to have a significant impact on us. And in terms of export strategy, I'm not sure exactly what you had in mind. We don't see any change in our export strategy for the next year or so from where we've been for several years and as has been discussed in the past.

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Operator [9]

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The next question is from the line of Kourtesis, Iakovos with Piraeus Securities.

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Iakovos Kourtesis, Piraeus Securities S.A., Research Division - Research Analyst [10]

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First question has to do with Greek EBITDA in second quarter. If it's possible to clarify for us, which part of it is generated by exports? And the second question, as far as I understand, there was a shutdown for maintenance in the U.S. Which plant was this? Was it in Florida?

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Michael H. Colakides, Titan Cement International S.A. - Group CFO, Senior Strategic Advisor & Executive Director [11]

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Regarding the U.S. shutdowns, the difference this year compared to last year is that last year both shutdowns took place in the first quarter, and there were some further closures of Florida in the second because of problems that occurred after the maintenance. This year Mid-Atlantic was done in the first quarter, and the Roanoke was done in the first quarter, and Florida was entirely in the second quarter. Now regarding profitability of the Greek operations, we do not disclose the -- which part of the business it -- each comes from. I should just mention that the Greek operation also absorbs a chunk of group overheads. So the 100% is a bit misleading as a percentage because it has to be considered that the gross revenues of Greece are much higher than what you see -- the net revenues of Greece.

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Operator [12]

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The next question is from the line of Gkonis, Argyrios with Axia Ventures.

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Argyrios Gkonis, Axia Ventures Group Ltd, Research Division - SVP [13]

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My question is regarding the pricing environment. And especially in the U.S., you had already implemented some price increase in the first quarter. And I understand, you had [showed] again in the second quarter and the beginning of April. Can you give us some outlook on how this went? And what are you expecting going forward?

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Dimitrios Th. Papalexopoulos, Titan Cement International S.A. - CEO, MD, Executive Director & Member of Advisory Council [14]

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We did implement increases in January in -- mostly in Florida, and they were partially successful. We implemented the price increases in April in the Mid-Atlantic region, so the Carolinas, Virginia, and they were also partially successful. Where price increases were not successful was in the New York, New Jersey area because of increased imports and competition.

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Argyrios Gkonis, Axia Ventures Group Ltd, Research Division - SVP [15]

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And if I may a follow up in respect of the volumes in the second quarter in the U.S. Can you please elaborate to understand how much of the lost volumes -- of the lost profitability is related to the lower volumes? In terms of maybe a bit more clear, maybe [can one say] that the lost volumes is entirely related to the plant shutdown?

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Michael H. Colakides, Titan Cement International S.A. - Group CFO, Senior Strategic Advisor & Executive Director [16]

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As I've mentioned, we did not lose volumes. On the contrary, we had an increase in volumes. There was a substitute of covering the market with imported material rather than domestic material, which combined with the more expensive logistic cost and transportation cost related to handling the imports reduced profitability. But in terms of volumes, we had positive growth in the first half, and we expect to continue with a positive growth in the second half as well.

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Operator [17]

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The next question is from our webcast participant, Mr. Nektarios Papagiannakopoulos from [Hellville Advisors].

Could you please explain which geographies might have deteriorated in Q2 on cement and ready-mix volumes?

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Dimitrios Th. Papalexopoulos, Titan Cement International S.A. - CEO, MD, Executive Director & Member of Advisory Council [18]

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Egypt and Turkey are the prime, as Michael pointed out, areas of volume declines...

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Michael H. Colakides, Titan Cement International S.A. - Group CFO, Senior Strategic Advisor & Executive Director [19]

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And all the others went up.

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Operator [20]

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Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to Mr. Colakides for any closing comments. Thank you.

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Michael H. Colakides, Titan Cement International S.A. - Group CFO, Senior Strategic Advisor & Executive Director [21]

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Thank you. Well, thank you all for attending. We are now, as I mentioned, at the beginning in a transition stage. If things work as anticipated after the squeeze-out process, there will be an application for a divesting of the shares of TITAN Cement. So it is expected that TITAN Cement S.A., which is the company reporting results today on a consolidated basis, by the end of September, will most probably not be listed. So there will be no further result presentations from the Greek company.

The next presentation is anticipated to take place in early November. It has not yet been confirmed, but we tend to try to follow the Greek company schedule, so 6th or -- and 7th of November are the dates we're looking for. But we are still looking at the regulatory obligations. We are in detailed discussion with the FSMA as to what we should publish, in what language, by what time. It's a voluntary disclosure anyway, but we said that we would like to do it. So you should wait for a new announcement for our next results presentation. Thank you.

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Dimitrios Th. Papalexopoulos, Titan Cement International S.A. - CEO, MD, Executive Director & Member of Advisory Council [22]

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Thank you.