In 2012, Group Turnover reached €1,131 million, posting a 3.6% increase compared to 2011. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) declined by 19.8% reaching €196 million. The Group posted a net loss, after minority interests and the provision for taxes, of €24.5million compared to a net profit of €11milion in 2011.

For comparison purposes, it should be noted that 2011 EBITDA included a €25million gain relating to the refund of the clay tax fee in Egypt.

The deterioration in Group results is due to the collapse of building activity in Greece, as well as the slowdown in Southeastern Europe, which suffered the spillover effects of the Eurozone crisis. On the other hand, the Eastern Mediterranean markets once again made a significant positive contribution, in particular Egypt, where despite the challenging  backdrop, construction activity remained robust. Also on a positive note, in the United States signs of improvement progressively became evident during the course of the year.

Additional detail on the performance of each of TITAN’s four reporting regions can be found here.

The Group’s focus on cash flow generation continued to bear fruit. Free cash flow from operating activities in 2012 reached €140 million. Net debt was reduced by €112 million in 2012, closing the year at €596 million.

The Group is in a robust financial position with €284 million in cash and cash equivalents together with € 479 million of undrawn committed bank facilities at year-end.

An analysis on net debt, together with information on Group borrowings can be here found here.

In 2012, as part of its strategy of forging strategic alliances, TITAN broadened its cooperation with the International Finance Corporation (IFC) in the Balkans. Specifically, the IFC invested €50million, in the Group’s subsidiaries operating in the F.Y.R. of Macedonia, Serbia and Kosovo and acquired through its participation in TITAN Group subsidiary Cement Cyprus Limited, an 11.49% minority stake in the Group’s activities in the aforementioned countries.

In 2012 the Group continued with the implementation of its two-year restructuring plan which commenced in 2011 and which aims to improve operational efficiency and generate €26million in annual savings. The Group has already achieved €25million in savings since the launch of the program. Selling, general and administrative expenses were reduced by 7.4% in 2012, compared to the previous year and stood at €113million. Compared to 2008, SG&A expenses have been reduced by 22%.

Despite the reduction in Group net debt, financial expenses, excluding foreign exchange differences, increased by 23% compared to 2011, reaching €67million. The increase is partly due to the rise in Group borrowings denominated in Egyptian pounds.

In December 2012, Group subsidiary TITAN Global Finance PLC successfully placed a €200 million bond, guaranteed by the Parent Company, with a coupon of 8.75% and maturity in January 2017. The proceedings will be utilized to refinance the €200 million July 2013 bond.

In the course of 2012, the Group’s capital expenditure, excluding acquisitions, stood at €51 million, a decrease of 11% compared to 2011.

The Company’s share price closed on 31 December 2012 at €13.96, posting a 20.4% increase compared to the closing price at year-end 2011. Over the same period the General Index of the Athens Exchange increased by 33.4%.

TITAN has been recognized as an “advanced” level reporter regarding the implementation of the U.N. Global Compact principles. TITAN’s commitment to responsible corporate practices was acknowledged by international investors, signatories of the United Nations backed Principles for Responsible Investment, www.unpri.org. Furthermore, on the basis of its sustainability performance, TITAN has been selected for inclusion in the Kempen SNS, SRI Universe, the Triodos Sustainable Investment Universe and the Ethibel Excellence Investment Register.

PARENT COMPANY TITAN S.A.

Turnover for TITAN Cement S.A. stood at €221 million in 2012, posting a 2% increase compared to 2011, while EBITDA stood at €38 million, posting an 8% decline. The Company’s net result in 2012 was a €16 million loss, €2 million higher than the loss of 2011.