Integrated

Annual

Report

2020

TITAN CEMENT GROUP

About the Report

The 2020 TITAN Cement Group Integrated Annual Report (IAR 2020) has been prepared in accordance with the Belgian Law,

the 2020 Belgian Code on Corporate Governance, the International Financial Reporting Standards (IFRS) and the International

Integrated Reporting Council (IIRC) principles for integrated reporting.

Other reporting frameworks followed by TITAN Cement Group include the UN Sustainable Development Goals (SDGs) 2030, the

UN Global Compact Communication on Progress Guidelines and the Charter and Guidelines of the Global Cement and Concrete

Association (GCCA). In 2020, the Group also started reporting according to the Sustainability Accounting Standards Board

(SASB).

The separate and consolidated financial statements of the IAR 2020 were audited by PwC. The ESG performance overview and

statements were independently verified at a reasonable level by ERM Certification and Verification Services (ERM CVS),

in accordance with the Charter and Guidelines of the Global Cement and Concrete Association (GCCA) and the Advanced Level

criteria for Communication on Progress of the United Nations Global Compact (UNGC).

The independent auditor’s report by PwC and the independent assurance statement by ERM CVS are included in the IAR 2020

and are available online at www.titan-cement.com/newsroom/annual-reports. You may access the IAR 2020 by scanning the

following QR code with your mobile device.

We welcome your feedback, which you can send to us through the link above.

Contents

Understanding TITAN

Management Report

2020 highlights 2

Message from the Chairman of the BoD

Message from the Chairman of the Group

Executive Committee

Overview 6

Our business approach in a changing

global landscape

A long history of sustainable growth

Our governing objective

Global presence

Delivering value for all

Materiality assessment and stakeholder engagement

ESG targets 2025 & beyond

Corporate Governance and Risk Management 44

Corporate governance statement

Corporate governance code

Capital, shares and shareholders

Board of Directors

Composition and operation of Board committees

Diversity and inclusion

Internal audit and risk management in the scope of the

financial reporting process

Internal audit

Remumeration report 2020

Information to be disclosed pursuant to Article 34 of

the Royal Decree of 14 November 2007

Shareholder information and services

Risk management 65

Risk management process

Risk management governance and controls

TITAN's principal risks

ESG performance review 70

ESG performance overview 72

TITAN’s response to COVID-19

Climate change

Circular economy

Environmental management

Research and innovation activities

Health and safety

People management and development

Sustainability of communities

Performance highlights 20

Financial performance

Equity market information

ESG performance

• Performance towards our 2020 targets

• Environmental performance

• Social performance

• Corporate governance and risk management

• Regional performance

Outlook 2021

Sustainable supply chain

Governance, transparency, and ethics

Independent assessment of ESG performance

ESG performance statements 80

Financial review 114

Financial performance overview 116

Review of the year 2020

Regional review of the year 2020

Financing and investments

Resolutions of the Board of Directors

Outlook

Treasury shares

Sale of stock in the framework of the

stock options plan

Post balance sheet events

Going concern disclosure

Viability statement

Financial statements 119

Parent company separate summarized

financial statements 189

Declaration by the persons responsible 191

Auditors’ reports 192

Glossary 201

2020 Highlights

€286.2m

EBITDA

€1,607m

Revenue

261

Specific water

consumption

(lt/t cement)

599

New hires across

the Group

0.57

Lost time injuries

frequency rate (LTIFR)

for employees

"BB"

on a stable outlook

Credit rating (S&P)

€2,678.9m

Total Group Assets

674

Specific net direct

CO₂emissions

(kg/t cementitious product)

5,359

Employees

(as at 31 December 2020)

19.3

Specific dust

emissions

(g/t clinker)

I’d like to take this opportunity to thank my fellow

Board members for their continued support and for

ensuring a balanced, responsible and sustainable

long-term growth path for TITAN.

The whole Board joins me in congratulating all our

employees for supporting the company through

these trying times and our senior management

for providing the leadership and for successfully

executing a complex strategic plan in the midst of

such uncertainty. They jointly underpin the long-term

sustainable growth of TITAN, for the benefit of its

shareholders and stakeholders.

With best wishes to all,

Takis Arapoglou

Chairman of the BoD

Message from the Chairman of the BoD

Dear Shareholders and Stakeholders,

One year ago, at the time of writing my previous letter

to you, the world was beginning to feel the effects of the

COVID-19 pandemic. Today we are all too familiar with

government mandated lockdowns and extensive safety

measures. The global economy has suffered a severe blow,

with some sectors of the economy hit disproportionally,

and country balance sheets being overextended to provide

social and economic support. At the same time science,

with an unprecedented speed, was successful in finding

effective vaccines which are currently being delivered to

the public across the globe.

The effects of the pandemic will no doubt influence

permanently our lives going forward, with drastic changes

from the way we live, work and protect our health, to

the way businesses and governments are run. However,

these changes should be seen more as an opportunity to

do more with less, and should help us focus on addressing

growing challenges in global inequality, public health,

education and employment and in adjusting our growth

models accordingly.

Throughout this past year, we at TITAN set as a priority

the protection of our people, we contributed to the efforts

to mitigate the health impact on society and maintained

the continuity of our operations. Risk assessment and

contingency plans were designed and enforced, local

guidelines were drawn up, hygiene measures were

increased and medical and psychological support was

provided by experts or through health care programs.

To ensure that the Group continues to adhere to the

highest standards of corporate governance, the Board

reviewed TITAN’s overall approach to risk management,

assessing the nature and extent of the principal risks

assumed in pursuit of its strategic objectives. Having

completed one year since our listing in Euronext Brussels,

we also conducted a formal evaluation of the effectiveness

of the Board, requesting anonymous feedback from its

members.

Although the human, economic and social challenges

remain, we continue to focus on our values, our corporate

governance and our sustainability footprint. Change,

innovation, digitalization and carbon footprint remain our

main strategic objectives.

In fact, to better align growth with sustainability, we

introduced a remuneration component linked to the

Group’s CO₂ emissions, and we strengthened the oversight

of the sustainability agenda at the Board level.

Although the human, economic and social challenges

remain, we continue to focus on our values, our

corporate governance and our sustainability footprint.

TITAN Cement Group

Integrated Annual Report 2020

Message from the Chairman

of the Group Executive Committee

Dear Shareholders and Stakeholders,

In 2020, we delivered strong financial performance while taking

care of our employees and those around us, ensuring high-quality,

uninterrupted customer service and accelerating progress towards

our digital and sustainability aspirations. In the face of uncertainty

caused by COVID-19, we remained confident in our business model.

We adapted to shifting market conditions and continued to pursue

operational excellence while laying the groundwork to capture

future growth.

Construction activity proved resilient in most of our geographies,

with high sales volumes in the second half of the year more than

compensating for a relatively weak early spring. Demand for our

products on the East Coast of the USA held up on the back of

infrastructure spending, record-low mortgage rates, and a shortage

of available housing. In Greece, following the easing of lockdown

restrictions in May, the market staged a rebound, with support from

small public works and a buoyant commercial and industrial segment.

Our sales in Southeastern Europe benefited from a mix of residential,

commercial, and infrastructure projects, whereas Turkey and Brazil

saw a surge in demand, fueled by private investment activity.

In Egypt, market conditions remained challenging, with cement

consumption suffering from oversupply and a six-month suspension

of building permits. Pricing dynamics were favorable in most markets.

Overall revenue for the Group was steady at €1.6 billion and 1.5%

higher at constant exchange rates. Energy and commodity cost

tailwinds, together with disciplined cost control, bolstered operating

profitability (EBITDA), which grew by 7.1% to €286.2 million. Net profit

after taxes and minority interests (NPAT) fell by €49.4 million to

€1.5 million, impacted by non-cash charges (goodwill impairment

charges and the write-down of accumulated deferred tax assets) in

Egypt, totaling €63.9 million.

Higher EBITDA, tighter working capital management, and reduced

capital expenditure enabled robust cash flow generation and

deleveraging, with net debt declining by €155.2 million. In the summer

of 2020, the Group’s subsidiary, Titan Global Finance PLC, issued

a €250 million bond due in 2027, with a 2.75% annual coupon, the

proceeds of which were used to pay down debt and strengthen our

balance sheet.

Delivery of such results was only made possible by the collective

effort of our people and we are deeply grateful to them for their

commitment and dedication. From the onset of the pandemic, we

took action to protect our employees and their families, focusing on

prevention, preparedness, and knowledge sharing. We instituted

measures to ensure that those working on-site do so under the safest

possible conditions. Over a third of our personnel switched to remote

working, and everyone was given access to updated and complete

information, expert guidance and support.

Living up to our social responsibility, we stood by our neighboring

communities, addressing some of their most urgent needs and offering

equipment, supplies and financial assistance to hospitals and medical

care centers. We worked closely with local authorities, public health

institutions, and civil society organizations in an effort to contain

the spread of the virus. We helped our partners and contractors

sustain their businesses within the crisis. And through meticulous

contingency planning, we minimized disruptions to our operations

and continued to serve our customers effectively.

Meanwhile, we never took our eyes off our strategic objectives

of digitalization and de-carbonization. In the context of the

former, big data and artificial intelligence tools were leveraged

to drive decisions, capture operational efficiencies, advance

our supply chain capabilities and redefine how we interact with

our customers and partners. We developed a modern customer

interface application and discovered innovative ways of looking

at process automation, inventory management, maintenance,

and failure prediction. The Group acquired new digital skills and

sought new collaborations with technology partners, academic

institutions, and the scientific community.

Climate change mitigation remained at the top of our agenda.

While expecting to meet our 2020 CO₂ reduction target with a

short delay due to regulatory and market conditions that influence

product and fuel mix, we decided to raise our longer-term

ambition. We revised our 2030 target for direct emissions down to

500kg net CO₂ per ton of cementitious product, with the aspiration

to deliver society with carbon-neutral concrete by 2050. In line

with our commitment to open and transparent communication

with our stakeholders, we responded for the first time to the

Carbon Disclosure Project (CDP) Climate Change and Water

Security questionnaires.

To reduce our carbon footprint, our Bulgarian and US cement

plants switched partially to natural gas. We obtained a license

to consume fuel derived from municipal waste in northern

Greece, and new feeding installations for alternative fuels were

inaugurated in Florida and North Macedonia. Moreover, we

continued to invest in research and innovation. We patented

a green nanomaterial and developed the world’s first full-cycle

technology to reclaim and convert landfilled ash into a low-carbon

substitute for cement in concrete. Finally, for its contribution to

the EU-funded project RECODE, which aims to capture CO₂ and

convert it into value-added chemicals, the Group was recognized

as a Key Innovator in the European Commission’s Innovation Radar.

As always, our sustainability initiatives were not limited to

de-carbonization and we delivered on the majority of our other

2020 sustainability targets. Our plant in Florida became the first

cement production facility in the world to be Total Resource

Use and Efficiency (TRUE) Platinum certified for zero waste.

To protect biodiversity, we joined forces with key stakeholders

at a European and global level. We encouraged our suppliers

to operate more sustainably and stepped up our efforts to

promote circular economy. Unfortunately, in safety, despite

the achievement of a world-class employee lost time injuries

frequency rate, we had three fatalities, two involving contractors

and one involving a direct employee. We will redouble our efforts

and work with more determination than ever towards the

prevention of all fatal accidents. The results of a survey taken by

our employees worldwide were used to enhance diversity and

inclusion and inform a new action plan to increase employee

engagement. During the year, we reassessed the environmental,

social, and governance (ESG) issues that are material to our

stakeholders and our business units. Based on the output of

this exercise, we set new ESG targets for 2025 and beyond. And

building on our track record of transparency and accountability,

we upgraded our governance systems and launched a new,

more agile organizational structure to address the sustainability

challenges of the future.

With the pandemic still raging, visibility into 2021 remains

limited. The industry is facing inflationary pressures, yet market

fundamentals are solid. Healthy backlogs in the USA should

support demand for building materials while, in the second half

of the year, we expect to see higher stimulus spending funding

urgent infrastructure needs. In Greece, we expect the revival

of the housing sector to continue while a number of public and

private projects gradually pick up steam. Construction in the

country should also benefit from the disbursement of EU recovery

funds. With the suspension of building permits no longer in

place, demand should bounce back in Egypt. And markets in

Southeastern Europe, Turkey, and Brazil should continue to grow,

barring any negative macroeconomic surprises.

2021 will require us to find a balance between managing the

crisis and building for the future. Maintaining discipline on health

and safety and showing support to those around us will remain

priorities. At the same time, we will strive towards operational

excellence to deliver superior results for our stakeholders and

shareholders. We will continue to harness novel tools while

enriching our know-how and technological capabilities, investing

to take advantage of emerging growth opportunities. And we will

seek innovative ways to create value by transforming our business

to serve our customers more efficiently as we move towards a

carbon-neutral and digital world.

Dimitri Papalexopoulos

Chairman of the Group Executive Committee

We will seek innovative ways to create value by transforming

our business to serve our customers more efficiently as we move

towards a carbon-neutral and digital world.

TITAN Cement Group

Integrated Annual Report 2020

Overview

An overview of our Group in a

changing global landscape and our

approach to value creation for our

stakeholders. Our material issues

and our ESG targets for 2025 and

beyond.

Understanding TITAN

Patras cement plant, Greece

Our business

approach in a

changing global

landscape

Building on 118 years of

industry experience and

driven by its commitment to

sustainable growth, TITAN

has become an international

cement and building

materials producer, serving

customers in more than 25

countries worldwide through

a network of 14 integrated

cement plants and three

cement grinding plants.

Increased

societal

expectations

regarding

sustainability

Digital

transformation

as a foundation

for future

growth

Urbanization

and sustainable

infrastructure

development

TITAN also operates quarries, ready-mix

plants, terminals, and other production and

distribution facilities.

We serve society’s need for safe, durable,

resilient, and affordable housing and

infrastructure. We create value by

transforming raw materials into products

– cement, concrete, aggregates, fly ash,

dry mortars, blocks, and other building

materials. We offer transportation and

distribution services to our customers,

as well as a range of additional solutions,

ranging from beneficiation technologies to

waste management.

Amidst accelerating shifts and disruptive

events, such as the COVID-19 pandemic,

we effectively address critical challenges

and play our part in building a better,

more sustainable future together with our

stakeholders.

Climate change

and the societal

need for a

carbon-neutral

future

Climate change represents a long-term risk for our

planet and society. It requires the mobilization of

organizations across many sectors, the cement

industry among them, to take meaningful action

and tackle this global challenge. In 2020, the Global

Cement and Concrete Association (GCCA) announced

its members’ Climate ambition to drive down the

CO₂ footprint of operations and products and deliver

carbon-neutral concrete to society by 2050. Our

industry is working across the built environment value

chain to deliver this aspiration in a circular economy,

life cycle context.

The 4th industrial revolution, driven by the advent of

the Internet of Things, big data, artificial intelligence,

and advanced analytics, promises to transform key

components of the industry’s value chain. Traditional

value generation drivers and differentiators are

complemented by new digital tools that unlock value

through improved operational efficiency and higher

customer engagement. Companies that embrace

Industry 4.0 early on and scale up quickly can reap

significant benefits.

With expectations on corporate responsibility, ESG

(environmental, social & governance) performance,

and transparency on the rise, organizations are

upscaling their sustainability efforts. Companies

must operate in a sustainable way across their value

chain, address what is material to their stakeholders

effectively, and offer products with a sustainable life

cycle.

As urbanization continues, demand for sustainable

infrastructure and green building products and

solutions is set to rise over the coming decades. The

cement industry must respond to the growing need for

resilient construction to protect our cities and natural

environment from a changing climate. At the same time,

it must contribute through innovation to the shaping

of sustainable cities in collaboration with all relevant

stakeholders throughout its value chain.

Understanding

TITAN

Overview

Our approach

We continuously reduce the carbon footprint of our operations and

participate in the de-carbonization of the construction value chain.

We are targeting a 35% reduction of our net direct specific CO₂

emissions by 2030, compared to 1990 levels. Through our participation

in European and international consortia, we are developing low-carbon

cementitious products and are collaborating in R&D projects that will

pilot carbon capture technologies in our plants, actively contributing to

our industry’s ambition for a carbon-neutral future by 2050.

Our approach

We embrace Industry 4.0 as an opportunity, and we are pioneers in the

transformation of the cement industry with an agile and entrepreneurial

approach. Following a series of successful digital pilots, we consolidated

our efforts under our Group Digital Center of Competence in 2020

to accelerate our digital transformation. We are enhancing our

competitiveness through digital transformation, increasing our

operational efficiency in manufacturing and in our supply chain, and

elevating the experience of our customers.

Our approach

We run our operations worldwide with transparency and solid governance,

maximizing our positive local impact beyond the boundaries of our plants.

We aspire to contribute to the sustainable growth of our neighboring

communities by promoting a diverse and inclusive mindset. Most of

our employees, contractors, and suppliers are members of our local

communities. Together with our stakeholders, we work to implement

community engagement plans and empower the youth with quality

education and skills for personal and professional development.

Our approach

We develop sustainable products – we focus on their affordability,

durability and recyclability as well as on their carbon footprint.

When designing them, we take a holistic view of the production,

consumption, reuse/recycle/recovery and disposal of their residuals

to evaluate their environmental impacts throughout their entire life

cycle. At the same time, we encourage our supply chain partners to

incorporate sustainability considerations in their business decisions

and daily behaviors, further promoting responsible sourcing.

Working

together with

our stakeholders

Through our collaboration

with customers, business

partners, local communities,

and academia, we increase

the shared value created at

a global, regional and local

level.

We actively collaborate

with international

organizations to address

global sustainability

challenges within the

framework of the UN

Sustainable Development

Goals for 2030. We are

a participant of the UN

Global Compact (UNGC)

and a core member of CSR

Europe and the Global

Cement and Concrete

Association (GCCA).

TITAN Cement Group

Integrated Annual Report 2020

1990 - 2018: Acquisitions and investments in over 15 countries:

A long history of sustainable growth

Driven by our entrepreneurial spirit and our commitment to sustainable growth, we have

expanded beyond our Greek roots, expanding to four continents.

1902

TITAN Cement is founded with the

opening of the first cement plant in

Elefsina, the first cement-producing

unit in Greece

1912

Listing on the Athens Stock Exchange

1951 - 1957

Rapid growth of exports, which during

the period account for over 50% of the

company’s sales and approximately 50%

of Greece’s total cement exports

Foundations

1902-1960

1962

Second plant in Thessaloniki

1968

Third cement plant in Drepano, Patras

1976

Fourth cement plant in Kamari,

near Athens

Growth in Greece

1960-1990

1990-2020

International expansion

• (1992) 60% in Roanoke Cement, Virginia, USA

• (1998) Cementarnica Usje, North Macedonia

• (1999) Beni Suef Egypt (50% joint venture)

• (2000) 100% of Roanoke, Virginia and

Pennsuco, Florida, USA

• (2002) Kosjeric, Serbia

• (2002) Alexandria PCC (APCC), Egypt

(50% joint venture)

• (2003) Zlatna Panega, Bulgaria

• (2007) Greenfield investment,

Antea plant, Albania

• (2008) 50% in Adocim, Turkey (JV)

• (2008) 100% of Beni Suef and APCC Egypt

• (2010) Sharr plant, Kosovo

• (2016) 50% in Cimento Apodi, Brazil (JV)

• (2018) 75% in Adocim, Turkey

2019

Titan Cement

International S.A.

becomes TITAN

Group’s parent

company and is

listed on Euronext

Brussels, Paris,

and the Athens

Exchange

Our growth journey since 1902

Understanding

TITAN

Overview

Our values

Our values are at the core of who

we are; they guide our strategy

and provide the foundation for

all our operations. They have

provided our people with a strong

bond and supported the growth

that has sustained us for over a

century, stemming directly from

the principles, beliefs, and vision

of our founders back in 1902.

They remain the solid basis of our

culture and family spirit.

Know-how

▶ Enhancement of

knowledge base

▶ Proficiency in

every function

▶ Excellence

in core

competencies

Integrity

▶ Ethical business

practices

▶ Transparency

▶ Open

communication

▶ Good governance

Value to the

customer

▶ Anticipation of

customer needs

▶ Innovative

solutions

▶ High quality of

products and

services

Continuous

improvement

▶ Learning

organization

▶ Willingness to

change

▶ Rise to

challenges

Delivering results

▶ Shareholder value

▶ Clear objectives

▶ High standards

Corporate Social

Responsibility

▶ Safety first

▶ Sustainable

development

▶ Stakeholder

engagement

Underpinning these priorities is our approach to sharing best practice and leveraging expertise. Applying this approach across the Group

helps the development of our capabilities and the efficient delivery of our governing objective.

We aim to grow as a multiregional, building materials producer, combining entrepreneurial

spirit and operational excellence with respect for people, society, and the environment.

Our strategic priorities

To achieve our governing objective, we focus on four strategic priorities:

We expand our business

through acquisitions and

greenfield developments

into attractive new

markets, to diversify

our earnings base and

mitigate the effect of the

volatility inherent in our

industry.

Geographic

diversification

We extend our business

into other product

areas in the cement

value chain, serving our

customers better and

accessing new profit

opportunities.

Vertical

integration

We reduce our

environmental footprint,

with focus on

de-carbonization

and biodiversity.

We care for and develop

our employees, and

foster constructive

collaborations with our

neighboring communities

and other stakeholders.

Sustainability, with focus

on the environment and

society

We deliver new

efficiencies throughout

our business to reduce

costs and compete more

effectively, implementing

digital solutions across

our value chain.

Continuous competitive

improvement

Ingrained in the Group’s identity and

embedded in our culture and our people’s

practices, our values guide

the way we conduct our business –

with respect, accountability, and

responsibility.

Our governing objective

TITAN Cement Group

Integrated Annual Report 2020

Global presence

We report on our performance and activities based on four

geographic regions, and separately on our joint venture in Brazil.

USA

Integrated cement plants

1. Roanoke – Virginia

2. Pennsuco – Florida

Brazil

(Joint venture)

Integrated cement plant

1. Quixere

Cement grinding plant

2. Pecem

Brazil

USA

Principal products/activities

Import

terminals

Quarries

Ready-mix

plants

Concrete

block plants

Fly ash

processing

plants

Integrated

cement

plants

EBITDA

€176.1m

Revenue

€937.7m

Assets

€1,095.8m

Brazil (Joint venture)*

Principal

products/

activities

Cement

grinding

plant

Quarries

Ready-mix

plants

Integrated

cement

plant

Principal products/

activities key:

Cement

Ready-mix concrete

Aggregates

Dry mortars

Building

blocks

Fly ash

Waste management

and alternative

fuels

Number of operational units of

all regions as calculated for ESG

performance reporting purposes

at Group level

* The joint venture in Brazil is incorporated in the

financial statements using the equity method of

consolidation. In the ESG performance overview

and statements, the joint venture in Brazil is not

included.

** 1 facility in Canada is included

Understanding

TITAN

Overview

Greece & Western Europe

Integrated cement plants

1. Thessaloniki

2. Kamari

3. Patras

Cement grinding plant

4. Elefsina

Southeastern Europe

Integrated cement plants

1. Kosjeric – Serbia

2. Zlatna – Bulgaria

3. Sharr – Kosovo

4. Usje – North Macedonia

5. Antea – Albania

Integrated cement plants

1. Alexandria

2. Beni Suef

Eastern Mediterranean

Integrated cement plant

1. Tokat

Cement grinding plant

2. Marmara

Turkey

North Macedonia

Albania

Kosovo

Serbia

Bulgaria

Egypt

Greece

Southeastern Europe

Principal

products/

activities

Quarries

Ready-mix

plants

Processed

engineered fuel

facility

Integrated

cement

plants

EBITDA

€96.2m

Revenue

€271.0m

Assets

€456.9m

Greece & Western Europe

Principal

products/

activities

Import

terminals

Quarries

Ready-mix

plants

Cement

grinding

plant

Dry mortar

plant

Integrated

cement plants

EBITDA

€17.2m

Revenue

€246.6m

Assets

€563.3m

Eastern Mediterranean

Principal products/activities

Cement

grinding

plant

Quarries

Ready-mix

plants

Integrated

cement plants

EBITDA

€-3.3m

Revenue

€151.7m

Assets

€484.8m

Processed

engineered fuel

facilities

Processed engineered

fuel facilities

TITAN Cement Group

Integrated Annual Report 2020

Delivering value for all

We draw on, transform and add to our capital resources to provide our products and services,

creating value¹ for all our stakeholders and contributing to the attainment of the UN Sustainable

Development Goals 2030.

to provide our products and services

Note: for terms denoted with (1)-(12) under 'Delivering value for all' please refer to the section ESG performance statements, under “2.1 Value Creation Core Indicators

Index".

Cement

Ready-mix

concrete

Aggregates

Dry mortars

Building

blocks

Fly ash

Products

we draw on our capital

Driven by our governing objective

Financial capital

We use our economic resources efficiently to

support our business growth and safeguard our

international competitiveness.

Intellectual capital

We use our R&D capabilities, our core

competence, and our deep knowledge of

the building materials industry to enhance

our offerings and further improve our

performance.

Social and Relationship capital

We engage with our stakeholders building

long-term relationships of trust and working

together in collaborative projects to make

a positive impact on society and local

communities.

Natural capital

We source materials responsibly, and we

preserve natural resources and biodiversity in

the areas where we operate. We contribute to

the circular economy by applying the principles

of “reduce, reuse, recycle, recover.”

Human capital

We value our people’s contribution,

continuously supporting their professional

development in an engaging, inclusive, and

collaborative working environment.

• Separation

technologies

• Alternative

fuel and

waste

management

solutions

Manufactured capital

We manufacture our products using best

available techniques in a network of 14

integrated and 3 cement grinding plants in 10

countries, as well as quarries, ready-mix plants,

and other production facilities, and we distribute

them reliably to our customers through

dedicated terminals.

Services

and Solutions

Production,

transportation,

distribution

of building

materials

Circular

economy

solutions:

Understanding

TITAN

Overview

Key Indicators Amounts Stakeholders SDGs 2030

Gross value added

€612.0m

Employees, customers,

suppliers, shareholders, and

investors

Net value added³

€472.4m

Employees, customers,

suppliers, shareholders and

investors

Total spend on suppliers, local,

national and international for

goods and services

⁴

€989.8m

Suppliers and contractors

Taxes to national and local

authorities⁵

€102.7m

Governments and

authorities (central

and local)

Payments in cash

to shareholders and

minorities⁶

€17.6m

Shareholders

Total spend on donations and

social engagement initiatives⁷

€2.1m

Communities, academia,

and educational and

environmental organizations,

civil society, and society at

large

Green investment⁸

€22.2m

Communities, society

at large

Alternative fuels

234,451

tons

Communities, governments

and authorities (central and

local), society at large

Salaries, (contributions to)

pensions, and social benefits,

including additional benefits

beyond those provided by law⁹

€312.2m

Employees and their

families, local

communities

Investments in training of

direct employees¹⁰

€0.5m

Employees and their families

Internships

251

interns

Employees and their families,

local communities, youth

Investments for Research and

Innovation

€10.5m

Employees, customers,

academia and society at

large

Capital expenditures

€84.3m

Employees, shareholders,

customers, local communities,

suppliers and contractors

contributing to the UN SDGs 2030

and create value for our stakeholders

TITAN Cement Group

Integrated Annual Report 2020

The steps we follow to conduct our materiality assessment are presented below:

Materiality assessment

and stakeholder engagement

We have established a robust materiality assessment process to address the expectations of our

stakeholders and pursue sustainable development. Through this process, we aim to build further

on our trusted relationships and create shared value.

TITAN’s approach to materiality assessment

Materiality assessment is an ongoing process that provides the

foundation for the implementation of our sustainability strategy.

A full cycle of materiality assessment has a duration of five years,

with materiality assessments at local level used as input for the

materiality assessment at Group level and vice versa. This is

our fourth materiality assessment cycle and the feedback that

we receive from our stakeholders through open and structured

communication will act as a compass for our continuous

improvement on all fronts.

In the new cycle that we launched in 2019, we upgraded,

harmonized, and further developed our materiality assessment

process across the Group, driven by our long-term commitment

to the ten principles of the UN Global Compact and using the

SASB Materiality Map® for our sector.

Ιn 2020, all TITAN business units reviewed and updated their

priorities, following the process designed by the Group. Areas

such as health and safety, environmental management, employee

development, sustainable supply chain, customer satisfaction,

climate and energy, and good governance remain at the top of the

list of material issues identified in most of the countries where we

operate.

Implementation

• Engage employees across the Group in

strategy implementation

Review and report

performance to stakeholders

• At Group level, we report our sustainability

performance to stakeholders annualy

dedicated materiality assessment workshops at both

Group and country level

300

TITAN Employees contributed to the outcome of the materiality

assessment process

191

managers and experts from TITAN business units and the

Group Corporate Centre participated at the materiality

assessment workshops

Target setting

• Determining our sustainability

focus areas and setting our ESG targets

Identification and prioritization

• Identify and prioritize material issues based on

the importance to our stakeholders and their

current or potential impact on the business

Understanding

TITAN

Overview

According to the Group Materiality Assessment outcomes, we will be addressing nine material issues grouped in four focus areas, all

underpinned by good governance, transparency and business ethics. The diagrams below illustrate how our material issues have evolved

since our last materiality assessment cycle, their prioritization and alignment with the UN SDGs 2030.

2015 – 19 material issues 2020 material issues 2020 focus areas

Future-ready business model

in a carbon-neutral world

Innovation with emphasis on

digitalization and de-carbonization

Safe and healthy working

environment

Continuous development of

our people

Diverse and inclusive

workplace

Positive local social,

economic, and environmental

impact

Resource efficiency, recycling,

and recovery, contributing to

the circular economy

Reliable and sustainable

supply chain

• Financial liquidity and

access to funding

• Climate change

• Social and political risks

and instability

• Health and safety

• People management and

development

• Environmental

management

• Sustainability of

communities

• Circular economy

Importance to stakeholders

Importance to TITAN

Materiality matrix Contributing to SDGs 2030

De-carbonization

and Digitalization

Positive local impact

Growth-enabling

work environment

Responsible sourcing

Good governance, transparency,

and business ethics

• Governance,

transparency, and

ethics

TITAN Cement Group

Integrated Annual Report 2020

ESG targets 2025 & beyond

Underscoring our enduring commitment to sustainability and value creation for all, we have set

our Environmental, Social and Governance (ESG) targets for 2025 and beyond, focusing on four

pillars defined as material by our stakeholders.

De-carbonization

and Digitalization

Growth-enabling

work environment

Focus areas

Addressing material issues

Targets 2025 and beyond

We will TRANSFORM

our business, focusing on

resilience, innovation and

on building solutions to

serve our customers more

efficiently as we move

towards a carbon-neutral,

digital world

Future-ready

business model

in a carbon

neutral world

Safe and

healthy working

environment

Diverse and

inclusive

workplace

Continuous

development of

our people

Innovation with

emphasis on

digitalization and

de-carbonization

• we will reduce our CO₂ emissions

by 2030, and will have our

targets validated by the Science Based Targets Initiative

(SBTi), as follows:

• Scope 1 emissions: we will reduce our net CO₂ emissions to

500kg/t cementitious products (-35% vs. 1990 level)

• Scope 2 emissions: we will reduce our CO₂ emissions to 32kg/t

cementitious products (-45% vs. 2020 level)

• we commit to drive down the CO₂ footprint of our operations

and products aspiring to deliver society with carbon-neutral

concrete by 2050

• we will monitor and independently verify our supply chain

(Scope 3) emissions

• we will increase our annual investment in Research &

Innovation to €20m

• we strive for zero fatalities and for an employee LTIFR

performance which consistently places us among the three

best in our peer group²

• we will implement initiatives addressing the physical,

mental, social and financial dimensions of wellbeing for our

employees, in all countries

• we commit that 1/3 of our BoD members will be women

• we will promote equal opportunities and inclusion and will

grow by 20% the participation of women in senior roles,

talent pools and new hires

• we will offer upskilling and reskilling opportunities to 100%

of our employees, especially in areas vital for sustainable

growth, such as health and safety, digitalization, and

de-carbonization

We will CULTIVATE

an inclusive culture with

equal opportunities for all our

people to grow professionally

within a safe and healthy

work environment

Scope 1: direct CO₂ emissions (net); Scope 2: indirect CO₂ emissions from electricity; Scope 3: indirect CO₂ emissions of the supply chain

² Peer group definition: Cemex, LafargeHolcim, Argos, HeidelbergCement, CRH, Cementir, Vicat, Buzzi

³Active wholly-owned sites

Production from our integrated clinker-cement plants

Key suppliers: critical suppliers according to GCCA Guidance for Sustainable Supply Chain management with a meaningful level of spend for TITAN

Understanding

TITAN

Overview

Positive

local impact

Responsible

sourcing

All underpinned by:

Good governance, transparency and business ethics

Focus areas

Addressing material issues

Targets 2025 and beyond

We will ENABLE

our business operations and

our people worldwide to

contribute to the prosperity

of our local communities with

respect to their social and

environmental concerns

Environmental

positive impact

Social

positive impact

Economic

positive impact

Resource

efficiency,

recycling and

recovery,

contributing to

circular economy

Reliable and

sustainable

supply chain

• we will sustain and further improve our strong

performance in cement production-related specific dust,

NOx and SOₓ emissions

• we will have quarry rehabilitation plans at 100% of our

sites

and will rehabilitate 25% of the affected areas

• we will have quarry biodiversity management plans at

100% of our sites

in high biodiversity value areas

• we will have community engagement plans that are

aligned with material issues for stakeholders and UN

SDGs 2030 at 100% of our key operations

• we will ensure that 2/3 of our total spend are directed to

local suppliers and communities

• we commit to a water consumption of 280lt/t Cementitious

Products and to covering 70% of our water demand with

recycled water

• we will have 85% of our production⁴ covered by ISO 50001 or

energy audits

• we will have 50% of our production⁴ covered by “Zero Waste

to Landfill” certification

• we will ensure that 70% of our key suppliers

meet TITAN

ESG supplier standards

We will EMPOWER

our business ecosystems to

incorporate sustainability

considerations in their

business decisions and

daily behaviors, while using

natural resources responsibly

TITAN Cement Group

Integrated Annual Report 2020

Performance

highlights

An overview of our Group’s overall

financial and ESG performance in 2020.

Understanding TITAN

Kamari cement plant, Greece

Financial performance

Earnings (EBITDA) growth and strong cash flow generation in a challenging year; resilient

markets and encouraging prospects

TITAN Cement Group delivered strong results in 2020, despite the

uncertainty caused by the COVID-19 pandemic. Group consolidated

revenue at €1,607.0 million was stable compared to the previous

year. Earnings Before Interest, Tax, Depreciation and Amortization

(EBITDA) posted a solid increase of 7.1% to €286.2 million. This was

the highest EBITDA recorded since 2010. Net Profit after Taxes and

minorities (NPAT) dropped to €1.5 million (vs. €50.9 million in 2019)

as a result of significant non-cash charges taken representing the

full write-off of the €46.6 million goodwill of TITAN Cement Egypt

and the derecognition of €17.3 million of accumulated deferred tax

assets, also in Egypt.

The impact of the COVID-19 pandemic on our Group was clearly

less severe than what was initially expected. Overall construction

activity escaped the full brunt of the downturn, being allowed to

continue as an essential activity in most of our operating countries.

Performance in 2020 was supported by resilient sales volumes

across most of our markets. In the US, sales were sustained at

high levels along all product lines. In Greece demand showed

further recovery. In Southeastern Europe performance was

robust, while Turkey posted strong domestic and export

growth and demand also improved in Brazil. Performance in

Egypt was disappointing due to the ongoing challenges of that

market. Pricing dynamics in most of our markets benefited

from resurgent levels of demand. The favorable energy cost

environment combined with successful management of the

Group’s cost base, enhanced profitability.

The strengthening of the euro in 2020 mainly against the US$ and

the Egyptian pound impacted results with FX losses of €13.2 million,

while net finance costs were significantly lower at €52.7 million

(€10.9 million lower than 2019).

2020 performance highlights

TITAN’s US Operations had a strong year. Cement, aggregates

and ready-mix sales were sustained at high levels. Cement block

sales volumes grew, benefitting from the growth of the housing

market while fly ash suffered due to lack of supply, as natural

gas continued to replace coal as fuel in the US power generation

industry. Overall, in US$ terms, 2020 revenue increased from

2019, reaching $1.07 billion. In euro terms, revenue declined by 1.5%

to €937.7 million and EBITDA reached €176.1 million, a decline of 1.8%

compared to 2019.

In Greece, 2020 was a year of improved performance. This was the

result of a combination of higher domestic cement sales volumes,

but lower clinker exports, increased operational efficiencies from

digital optimization projects, combined with lower fuel prices and

a notable increase in the use of alternative fuels. As such, total

revenue for Greece and Western Europe in 2020 increased by 0.7%

to €246.6 million while EBITDA increased by €5.3 million to €17.2

million.

In Southeastern Europe, the construction market, after an abrupt

slow down at the start of the pandemic, recovered to post a

net growth for the region in 2020, with a particularly strong

last quarter. Revenue increased to €271.0 million, supported by

pricing and domestic volumes, which more than compensated

for the reduction of exports from the region. Margins improved

substantially, thanks to a recovery from the previously low selling

prices and a significant reduction of fuel costs, on top of efficiency

improvements and cost containment measures. As a result,

EBITDA grew by 24.6% to €96.2 million.

Markets in the Eastern Mediterranean remained challenging

amidst a fragile economic environment. Pre-existing structural

market limitations in Egypt were further exacerbated by the

government’s imposition of a six-month suspension of building

licenses. Improved performance in Turkey, thanks to strong

growth of domestic demand and exports, partially mitigated

the region’s disappointing results. Total revenue reached €151.7

million, an increase of 1.0% year on year, while at EBITDA level,

the Group recorded a €3.3 million loss compared to losses of €1.2

million in 2019.

In our joint venture Cimento Apodi in Brazil, driven by increased

demand and prices, net profit attributable to the Group reached

€2.6 million compared to a €1.0 million loss in 2019.

Stronger sales volumes

Trends in domestic sales volumes were positive across most of

our markets. At Group level, volumes were higher across all lines of

products except fly ash, which suffered from supply constraints.

Following the restrictions on activity in the second quarter of the

year, construction activity rebounded once lockdown restrictions

were eased, testifying to the underlying resilience of market

fundamentals across geographies. Group cement sales increased

by 1% compared to 2019, reaching 17.1 million tons.

Ready-mix concrete sales increased by 3% in 2020, reaching

5.4 million m³ on the back of stronger sales in Greece,

Southeastern Europe, the Eastern Mediterranean and Brazil.

Aggregates' sales volumes increased by 5% year on year, reaching

20 million tons, mainly due to growth of the Greek market.

Aggregates' sales in the US, which is a key contributor in the

aggregates segment, remained stable at high levels.

2020 2019 +/-

Cement (million metric tons) 17.1 17.0 1%

Ready-Μix concrete (million m³) 5.4 5.2 3%

Aggregates (million metric tons) 20.0 19.1 5%

Understanding

TITAN

Performance

highlights

Robust increase of Operating Free Cash Flow

In 2020, the Group generated a strong operating free cash

flow that reached €225.3 million, an increase of €50.2 million

compared to 2019. Cash flow generation benefited from higher

EBITDA levels, tighter capital expenditure and contained working

capital requirements. Group capital expenditures during the year

amounted to €84.3 million compared to €109.3 million in 2019.

2020 2019

Operating free cash flow €225.3m €175.1m

Capital expenditure €84.3m €109.3m

Net debt at the year end €684.4m €839.6m

Deleveraging

Year-end net debt declined to €684.4 million (2019: €839.6

million), reflecting the strong operating cash generation. This

decline of €155.2 million in net debt contributed to a significant

improvement of the Net Debt/EBITDA ratio to improve to 2.35x as

defined by loan agreements.

The Group maintains ample cash and other liquidity sources. It

ended 2020 with a total liquidity of €503 million, comprising €206

million of cash and cash equivalents and €297 million of undrawn

committed credit facilities.

TITAN Group uses a variety of funding sources and debt

instruments to diversify its funding base and combines long-term

and short-term financing. At year end, 86% of Group debt was in

bonds, 8% in bank loans and 6% in lease liabilities. Gross debt as of

31 December 2020 came at €891 million.

In the prevailing environment of low interest rates, TITAN Group

took the opportunity to lower its finance costs and significantly

extend its debt profile. In July 2020, Titan Global Finance issued

€250 million notes, due in 2027, with an annual coupon of 2.75%.

The notes are traded on the Global Exchange Market (GEM), which

is the exchange-regulated market of Euronext Dublin. Pursuant

to a tender offer, the proceeds of the new issue were used to

purchase prior to maturity €109 million of the outstanding €300

million notes with coupon 3.50%, due June 2021. The remaining

proceeds were used for general corporate purposes, including

repayment of bank debt. The Group’s next important maturity

is in mid-2021 for the €163.5 million notes of the 2016 issue that

remained at the end of 2020 and, after that, in 2024 and 2027.

Outstanding bonds

ISIN

Amount

outstanding

Coupon Maturity

XS2199268470 250,000,000 2.75% 09/07/2027

XS1716212243 350,000,000 2.375% 16/11/2024

XS1429814830 163,458,000 3.50% 17/06/2021

Resolutions of the Board of Directors

• Return of capital: 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 the return of capital

of €0.40 per share to all the Shareholders of the Company. All

shareholders who are recorded as shareholders on Thursday, 29

April 2021, at 12.00 midnight (CEST) (record date) will be entitled

to receive the capital return. Shareholders will receive the

payment of the capital return on Friday, 2 July 2021, through their

custodians, banks and securities brokers.

• Cancellation of own shares: the Board also decided the

cancellation of 4,122,393 own shares representing 5% of the

Company’s voting rights. The cancellation is expected to be

completed by the end of the second trimester, according to the

procedure provided by Belgian law.

100

150

200

250

300

350

400

224

358

4 3

247

<Dec'21

<Dec'22

<Dec'23

<Dec'24

<Dec'25

<Dec'26

<Dec'27

>Dec'27

163

348

247

Bank debt LeasesBond

Debt Maturity Profile (€m) as of 31 December 2020

TITAN Cement Group

Integrated Annual Report 2020

Equity market information

Titan Cement International S.A. (TCI) is committed to maintaining strong,

transparent long-term relationships of trust with the investment community

The share

2020 was the first full year of TCI’s listing on Euronext Brussels,

Euronext Paris and the Athens Exchange. TCI became the new

parent company of the TITAN Cement Group after the successful

outcome of a share exchange tender offer submitted to TITAN

Cement Company S.A. shareholders in 2019.

Titan Cement Company S.A. was founded in 1902 and its shares

had been listed on the Athens Exchange since 1912. In 2019

Euronext Brussels became the primary listing of TITAN Group. The

Group is also listed on Euronext Paris and the Athens Exchange.

The total number of TCI shares outstanding (including treasury

shares) is 82,447,868 shares.

In June 2020, TCI’s shares were included in the BEL Mid Cap Index.

In addition, TCI shares are also components of the BEL Industrials

and ATHEX Composite Indices and are also constituents of the

FTSE/ATHEX Large Cap and MSCI Greece Small Cap Index, as well

as the CAC All Shares and CAC Industrials. In February 2020, TCI’s

shares were excluded from the FTSE Developed Europe Small Cap

Index and from the MSCI Greece Index in May 2020.

Share evolution

In 2020, TCI’s share TITC closed the year at €13.86 on Euronext

and at €13.74 on the Athens Exchange, corresponding to a

decline of 27% year on year. Over the same period, the BEL Mid

cap Index and the ATHEX General Index, recorded decreases of

16% and 12%, respectively. As at 31 December 2020, TCI’s market

capitalization stood at €1.1 billion.

Liquidity and market making contracts

In order to maintain a satisfactory level of liquidity for its shares,

TCI has undertaken a liquidity provider agreement for its shares

traded on Euronext and a market maker agreement for its

shares traded on the Athens Exchange, both with local financial

institutions.

ESG investors

Since 2010, ΤΙΤΑΝ Cement Group has attained, and maintained,

the “Advanced” level reporter status in line with United Nations

Global Compact principles. Over the course of 2020, TCI, as a new

legal entity, was assessed for the first time with regards to its ESG

performance, achieving positive results. In May 2020, TCI received

an ESG Risk Rating of 28.6 by Sustainalytics and was assessed as

being at medium risk of experiencing material financial impacts

from ESG factors. The score places ΤΙΤΑΝ thirteenth out of 104

construction materials companies assessed by Sustainalytics. In

June, TCI received a rating of A (on a scale of AAA-CCC) in the MSCI

ESG Ratings assessment. In October, TCI received a rating of B+

by Refinitiv and was ranked ninth in the construction materials

sector across Europe and America. Moreover, 2020 marked our

inaugural response to the CDP climate change and water security

questionnaires.

Treasury shares

In March 2020, the Group activated its share buy-back program.

In total 786,278 shares, representing 0.95% of TCI’s share capital

were repurchased on Euronext Brussels and the Athens Stock

Exchange (ATHEX) for a total consideration €8.8 million.

Αs at 31 December 2020, Titan Cement International S.A. holds

321,225 own shares representing 0.39% of the Company’s

share capital and ΤΙΤΑΝ Cement Company S.A. (TITAN S.A.), a

direct subsidiary of TCI, holds 5,191,277 shares of the Company,

representing 6.30% of the Company’s voting rights.

Shareholder structure of TCI

The chart below represents the shareholder structure of the

Company as of 31 December 2020*

Symbols

Euronext ATHEX

Oasis TITC TITC

Reuters ticker TITC.BR TITC.PA

Bloomberg ticker TITC.BB TITC.GA

ISIN code: BE0974338700

More information for investors

There is comprehensive information on the TCI website regarding

regulatory announcements, the investor relations calendar, share

price analysis tools and quarterly financial results.

You can find us at: https://ir.titan-cement.com or contact us

directly at ir@titan-cement.com

E.D.Y.V.E.M. Public Company Ltd and

TCI founders acting in concert

35.68%

FMR LLC, FMR CO Inc, Fidelity Institutional

Asset Management Trust Company, FIAM

LLC

6.70%

Other 41.76%

Paul and Alexandra Canellopoulos

Foundation

9.56%

TITAN Cement Company S.A.

6.30%

*As notified by the above shareholders to the company on 23 July 2019, on 7 January 2020,

on 9 September 2020 and on 14 December 2020.

Understanding

TITAN

Performance

highlights

KPIs and 2020 targets

2020 performance

SDGs

Absolute figures

(where applicable)

Environmental

management

Specific net direct CO₂

emissions

20%

reduction comp.

to 1990 level*

674 kgCO₂/t

cementitious

product

13.4%

reduction comp. to 1990 level

12, 13, 17

Specific dust emissions

92%

reduction comp.

to 2003 level**

19.3

g/t clinker

94.8%

reduction comp. to 2003 level

Specific NOx emissions

53%

reduction

comp. to 2003 level**

1,282

g/t clinker

56.8%

reduction comp. to 2003 level

Specific SOx emissions

43%

reduction comp. to

2003 level**

253

g/t clinker

39.6%

reduction comp. to 2003 level

Specific water

consumption

40%

reduction comp. to

2003 level**

261

It/t cement

48.2%

reduction comp. to 2003 level

6, 11, 15, 17

Biodiversity and land

stewardship

100%

88%

Active wholly-owned sites with

quarry rehabilitation plans

90%

Active wholly-owned sites of high

biodiversity value with biodiversity

management plans

ISO 50001 coverage

50.0%

of clinker production

54.9%

of clinker production

7, 17

Occupational

health and

safety

Fatalities

0 3

3, 17

LTIs frequency rate

(employees)

To be in the top

quartile of WBSCD/

CSI members’

performance***

0.57

Social

engagement

All key operations with

Community Engagement

Plans related to material

issues and Group policies

14/14

operations by the end

of 2020

14/14

3, 4, 9,

11, 17

Implementation of

engagement plans at all

key operations

100%

by the end of 2020

100%

by the end of 2020

Performance towards our 2020

sustainability targets

Our 2020 sustainability targets have provided us with a roadmap to address our main impacts,

monitor our performance, and tackle global challenges. Moving forward, we will build on our good

results to achieve our ESG targets for 2025 and beyond (see pg. 18), in alignment with our material

issues and the UN SDGs 2030. See below what we have achieved during the last five years.

*1990 is the base year for CO₂ emissions, in line with the Kyoto Protocol.

**2003 is the base year for all other environmental performance indicators.

***As of 31 December 2018, the work and activities of WBCSD/CSI were carried out by the GCCA.

ESG performance

TITAN Cement Group

Integrated Annual Report 2020

29.3 million t

Avoided (direct net)

CO₂ emissions

(1990-2020)

Specific net direct CO₂ emissions (Scope 1)

Alternative fuel substitution rate

60,700 t

Avoided dust emissions

(2003-2020)

32.5 million m

Avoided water consumption

(2003-2020)

13.1%

Alternative fuel

substitution rate

€22.2 million €

Green investments

Environmental performance

Climate change mitigation through alternative fuels

Recognizing the high energy and carbon intensity of cement

making, we actively engage in the global collective effort

toward a carbon-neutral future. We are committed to the

COP21 Paris global goal of keeping the increase in global

temperature to well below 2°C compared to pre-industrial

levels, and the relevant UN Sustainable Development Goals

2030. We support the European Green Deal vision of carbon

neutrality by 2050 and endorse the Global Cement and

Concrete Association (GCCA) 2050 Climate Ambition to deliver

society with carbon-neutral concrete by 2050.

In 2020, our net CO₂ emissions reached 674kgCO₂/t cementitious

product, declining by 13.4% compared to 1990 levels.

We inaugurated a new processing line for alternative fuels at

the Pennsuco cement plant in Florida, USA, and upgraded our

alternative fuels feeding installations in several of our cement

plants in Europe. The Thessaloniki cement plant in Greece

extended its environmental permit to facilitate the use of Solid

Recovered Fuel/Refuse Derived Fuel (SRF/RDF) from municipal

solid waste (MSW), while in Bulgaria and the USA, our plants

installed equipment, which enables the utilization of natural

gas, thereby reducing their carbon footprint. During the last

five years, our alternative fuels substitution rate has increased

by 56%. In 2020, it decreased slightly, mainly due to the limited

availability of suitable streams and delays in obtaining permits in

some of the regions where we operate.

We were recognized as a Key Innovator by the European

Commission in its Innovation Radar for our contribution to the

RECODE research project, which involves the installation of a pilot

unit at Kamari cement plant in Greece for the capture of CO₂ and

its conversion to value-added chemicals.

Responding to society’s needs for sustainable construction, we

expanded our product portfolio to include significant volumes

of low-carbon cement and concrete. Our less carbon-intensive

Type IL cement already enjoys good market penetration in the

USA, while in Greece, we have obtained all the necessary cement

certifications to facilitate this transition.

In 2020, we continued to invest in innovation, having our first

world patent published, on a novel method to produce nanosized

particles of clinker, which can be used to manufacture added-

value, high-performance construction products, in addition to

valorising low-grade minerals and industrial by-products.

As energy management is integral to the sector’s de-carbonization

roadmap, we are systematically monitoring energy consumption

and expanding the use of energy efficiency management systems.

The Pennsuco cement plant in Florida, USA, received its ISO

We are actively participating in the de-carbonization of the construction value chain,

contributing to the global effort toward a carbon-neutral future. Seeking to drive down the

carbon footprint of our operations worldwide, we are investing in innovation for new products

and processes. We continuously improve our environmental performance through the

adoption of best available technologies and the implementation of effective environmental

management systems, water and biodiversity management plans.

Kg/t cementitious product

2016 2017 2018 2019 2020

674.0

676.6

686.1

700.3

701.4

670

620

720

Thermal substitution rate (%)

2016

2017

2018

2019

2020

13.1

13.5

8.9

8.4

12.0

ESG performance

Understanding

TITAN

Performance

highlights

Alternative raw materials use

(as a percentage of total raw materials consumed)

Specific NO

emissions

Environmental expenditures across all activities

(5-years cumulative)

% Dry basis

2016

2017

2018

2019

2020

6.4

7.1

5.5

5.4

5.1

50001 certification. Our clinker capacity covered by ISO 50001 now

represents 54.9% of our total clinker production, thus exceeding

the 50.0% target that we had set for 2020.

Contributing to the circular economy

We are committed to the principles of the circular economy,

which encourage waste minimization, reuse, recycling, or recovery

in order to preserve the world’s natural resources, reduce CO₂

emissions, and manage waste efficiently.

In 2020, we continued to implement programs to collect ready-

mix concrete waste and returns for use as alternative raw

materials in the production of clinker, cement, concrete, and

concrete blocks, and as aggregates for pavements and other

applications. The percentage of concrete returns diverted from

landfills stood consistently over 85% in the last five years, reaching

90% in 2020. Furthermore, the Pennsuco Cement Complex

became the first cement plant in the world to be Total Resource

Use and Efficiency (TRUE) Platinum certified for zero waste.

The use of alternative raw materials in the production of

clinker and cement slightly decreased in 2020 to 6.4% of total

consumption, mainly due to the unavailability of such alternative

sources in the countries and markets where the Group operates,

as well as market demands and regulatory restrictions.

Mitigating our environmental impact

The majority of our cement plants are certified to the latest

version of ISO 14001, the international standard that specifies

the requirements for an effective environmental management

system, while all are aligned with local and federal regulatory

requirements.

Dust and NOx emissions from our kilns were reduced in the last

five years by 19% and 25%, respectively.

In collaboration with local universities, air emission dispersion

studies are conducted, where needed, to ensure a high level of air

quality in the local communities where we operate.

To improve transparency, a new online platform was launched in

Greece, making daily air emission data from our cement plants

publicly available. Similar initiatives exist in other regions where

we operate.

We have developed biodiversity management plans at nine out of

the ten sites that have been identified as areas of high biodiversity

value, using the Integrated Biodiversity Assessment Tool (IBAT).

In 2020, we updated the biodiversity risk assessments for all

our sites. In total, four new sites (three of them being under

full management control of TITAN) are recognized as being in

proximity to (or part of) areas of high biodiversity value and will

be further assessed for their biodiversity baseline conditions.

We contributed to the formulation of the GCCA policy document

“A Commitment to Biodiversity by the Cement and Concrete

Industry” and joined CSR Europe’s Biodiversity and Industry

Platform.

Our long-term initiatives and investments in water management

facilities and systems have resulted in a substantial reduction in

water consumption to 261lt per ton of cement, well below the

target we had set for 2020.

g/t

Clinker

1.000

1.100

1.200

1.300

1.400

1.500

1.600

1.700

1.800

2016

2017

2018

2019

2020

1.282

1.269

1.307

1.345

1.709

Million €

100

120

140

160

180

2016

2017

2018

2019

2020

53.5

81.1

110.2

136.8

159.0

TITAN Cement Group

Integrated Annual Report 2020

Social performance

A robust response to COVID-19

Safeguarding our people and operations against COVID-19 was a

top priority in 2020. In close cooperation with medical experts,

we implemented action plans at all sites, putting an emphasis on

frequent and open communication. We promoted remote working,

while numerous protective measures were taken for people

working on-site. At the same time, we stood by our neighboring

communities and acted to help local partners and contractors to

sustain their business.

Committed to health and safety

We envisage a work environment that ensures the health and

safety of all employees, contractors, customers, and neighboring

communities. To this end, we are continually striving to improve

our health and safety performance through training and

engagement.

Our efforts in 2020 concentrated on further improving risk

assessment procedures. We maintained an active presence on

all sites in spite of the pandemic, utilizing also camera-enabled

remote audits. The employee Frequency of Lost Time Incidents

(LTIFR) per million worked hours was reduced from 1.44 in 2019 to

0.57, the lowest value recorded since 2013. Regrettably, despite

this improvement, there were two contractor fatalities during the

year – one in Kosovo and one in Egypt – and one employee fatality

in a driving accident in the USA.

Bolstering diversity and inclusion

Our sustainable growth relies on the caliber, behavior, and

involvement of our people. Our vision is to ensure an emotionally

and mentally engaged workforce, as stated in our People

Management Framework.

Group and country action plans were developed to address the

results of the 2019 Employee Engagement Survey. The action

plans were derived following in-depth analysis of the aggregated

responses to the survey questions, as well as a series of interviews

and deep dives in diverse employee focus groups.

We support equality, diversity and inclusion and are committed

to providing equal access and remove biases in our operations.

A comprehensive action plan to improve diversity and inclusion

across the Group was drawn up, based on feedback from a number

of focus groups and interviews. Our Group Code of Conduct, and

Human Rights and CSR policies were updated to incorporate

clearer references to diversity and inclusion. In Titan America,

unconscious bias education was mandated for all people managers

and two new Employee Resource Groups were launched – one

supporting our Black and African American community and one

supporting our LGBTQ+ community.

We are committed to cultivating a healthy and safe work environment, enabling our people

to develop new skills and to grow professionally. We aspire to generate a positive impact

for our local communities, supporting their socio-economic development and promoting

sustainable practices across our value chain.

0.5

1.5

2.5

2016

2017

2018

2019

2020

0.57

1.44

1.54

2.41

1.92

Employee Lost Time Injuries Frequency Rate (LTIFR)

Employee Lost Time Injuries Severity Rate

100

120

2016

2017

2018

2019

2020

21.5

57.4

55.7

109.0

78.2

ESG performance

Understanding

TITAN

Performance

highlights

A holistic approach to wellbeing

Our new TITAN Health and Wellbeing framework covers the

four key dimensions of health and wellbeing – physical, mental,

social, and financial – and reflects the importance of following an

integrated, holistic approach. Our Employee Assistance Program

(EAP), a consulting support service that offers expert advice on

personal, family, or work-related issues to employees and their

families, has been extended to all countries to enhance the mental

and emotional health and wellbeing of our people.

An ethical work culture

We introduced our Whistleblowing Policy in 2020, which

encourages employees to report possible misconduct, fraud, or

abuse. In parallel, the TITAN Group reporting platform EthicsPoint®

was launched to provide a globally available digital tool enabling

the confidential reporting of any concern and ensuring its quick

and effective handling, fostering our culture of integrity and

ethical conduct.

Growing our communities

Supporting our local communities, where our operations have

direct and indirect economic, social and environmental impacts,

and contributing to their sustainable development is integral to

our corporate philosophy.

In 2020, we launched a dedicated Group e-platform to record

and evaluate our community initiatives and actions, in an

effort to ensure their alignment with the material issues of our

stakeholders.

In all countries, community outreach programs have yielded

positive long-term results. The “For My Kosjeric” program

offered by Kosjeric cement plant in Serbia was recognized by

external stakeholders as a best practice example of empowering

local communities to meet their own objectives. Through the

ReGeneration Academy for Digital Acceleration, a program

that we developed in partnership with local service providers

aiming to help reverse the brain drain in Greece, we trained 24

young graduates in data science and assisted them in finding

employment.

Employees from local communities - Group average (%)

The percentage of employees from local communities remained

high, at 83% and, despite the challenges posed by the pandemic,

we continued to support youth employment, offering 251

internships in 2020.

75%

80%

85%

2016

2017

2018

2019

2020

Sustainable supply chain

We support sustainable practices across our value chain,

recognizing that a dependable and sustainable supply chain can

contribute to the creation of a net positive environmental, social

and economic impact.

In 2020, we continued our Group Procurement transformation

program, the goals of which are to improve procurement

efficiency and enhance the sustainability of our global

procurement categories. Meanwhile, we continued our review

of the prequalification process for our suppliers to include a

broader sustainability assessment.

TITAN Cement Group

Integrated Annual Report 2020

Corporate governance and risk management

Legal structure of Titan Cement International S.A.

Titan Cement International S.A. (TITAN or the Company) is a public

limited liability company (société anonyme) incorporated under

Belgian Law. Its shares are listed on the regulated markets of

Euronext Brussels, Euronext Paris, and the Athens Exchange. The

seat of the management of the Company is in Cyprus.

Governance structure

TITAN has a one-tier governance structure, consisting of the Board

of Directors, which is authorized to carry out all actions that are

necessary or useful to achieve the company's purpose, except for

those, which only the General Meeting of Shareholders is legally

authorized to carry out. At least once every five years, the Board

of Directors reviews whether the chosen governance structure

remains appropriate.

Board of Directors

The Company’s Board is currently composed of 14 directors. The

Board members have high-level, diverse, and complementary

expertise and significant experience relevant to the main

challenges that TITAN is facing in its business environment and

key markets. The Board members bring their experience and

competence in areas such as finance, international investments,

corporate governance, and business management, as well as their

broader perspective on society and the world.

The Board’s role

Our Board, as a collegial body, pursues sustainable value creation

by setting the Company’s strategy, putting in place effective,

responsible, and ethical leadership, and monitoring the Company’s

performance. To effectively pursue such sustainable value

creation, the Board has developed an inclusive approach that

balances the legitimate interests and expectations of shareholders

and other stakeholders. The Board appoints the executive

management and constructively challenges the executive

management when appropriate.

Group Executive Committee

The Group Executive Committee, as appointed by the Board of

Directors, is composed of executive directors and senior managers

of the Company, heading the main regions and functions of the

Group.

The role of the Group Executive Committee is to facilitate the:

• cooperation and co-ordination between the Company’s

subsidiaries;

• supervision of the Group operations;

• monitoring of the Group management performance; and

• implementation of decisions and related accountability.

Restructuring of the Group Executive Committee

To further accelerate decision-making and organizational agility

in the context of the rapidly changing drivers of competitiveness,

primarily digital and carbon, the Board, in its meeting of 21 July

2020 approved a new organizational structure, effective as of

1 October 2020. The new Group Executive Committee consists

of the following individuals:

• Dimitri Papalexopoulos, Chairman of the Group Executive

Committee

• Alexandra Papalexopoulou, Deputy Chair of the Group

Executive Committee

• Michael Colakides, Group CFO, and Managing Director of TCI

• Bill Zarkalis, Group Chief Operating Officer, President and CEO

of Titan America LLC

• Yanni Paniaras, Group Executive Director Europe and

Sustainability

• Fokion Tasoulas, Group Innovation and Technology Director

• Christos Panagopoulos, Regional Director Eastern

Mediterranean

• Antonis Kyrkos, Group Transformation and Strategic Planning

Director

• John Kollas, Group Human Resources Director

• Leonidas Canellopoulos, Group Chief Sustainability Officer

Management Committee

The Management Committee is composed of the Managing

Director of the Company and other members appointed and

removed by the Board of Directors. Its main role is to support

the Managing Director in the day-to-day management of the

Company.

Through sound corporate governance, we aim to ensure that every management decision is

aligned with our purpose and core values, takes due account of sustainability considerations,

and is in the best interest of our stakeholders. By proactively identifying, assessing, and

managing all our potentially significant risks and opportunities, we prepare for issues that may

affect the long-term sustainability of our business and achieve our strategic objectives.

Performance

highlights

ESG performance

Understanding

TITAN

Titan Cement International S.A. Board of Directors:

100%

3/14

Directors

are female

8/14

Directors are

independent

9/14

Directors are

non-executive

Board attendance*

Different nationalities

represented on the Board

* In the Board meeting of 21/7/2020 only the non-executive directors, the

Managing Director and the Chairman of the Group Executive Committee were

invited to participate.

* Takis-Panagiotis Canellopoulos served as Executive Director until 19 March 2020

** Petros Sabatacakis served as independent Director until 19 March 2020

Efstratios-

Georgios (Takis)

Arapoglou

Kyriacos

Riris

Dimitri

Papalexopoulos

Michael

Colakides

Alexandra

Papalexopoulou

Bill

Zarkalis

Leonidas

Canellopoulos

Chairman

Chair of

Nomination

Committee

Vice-Chairman

Chair of Audit and

Risk Committee

Chairman of the

Group Executive

Committee

Managing

Director & Group

CFO

Deputy Chair

of the Group

Executive

Committee

Chief Operating

Officer

President and

CEO of Titan

America LLC

Chief

Sustainability

Officer

Non-executive

Director

Independent

Director

Executive

Director

Executive

Director

Executive

Director

Executive

Director

Executive

Director

William

Antholis

Andreas

Artemis

Harry

David

Stelios

Triantafyllides

Dimitris

Tsitsiragos

(since March 2020)

Maria

Vassalou

Mona

Zulficar

Member of

Remuneration

Committee

Member of

Nomination

Committee

Member of

Audit and Risk

Committee

Member of

Remuneration

Committee

Member of

Audit and Risk

Committee

Member of

Nomination

Committee

Chair of

Remuneration

Committee

Independent

Director

Independent

Director

Independent

Director

Independent

Director

Independent

Director

Independent

Director

Independent

Director

Board committees

The Board, in order to discharge its duties effectively and

efficiently, has set up specialized committees to analyze specific

issues and advise it. Without prejudice to its right to set up other

committees, the Board has established the:

• Audit and Risk Committee, entirely comprised of independent

directors;

• Remuneration Committee, entirely comprised of independent

directors;

• Nomination Committee, comprising two independent directors

and chaired by the Chairman of the Board, who is a non-

executive director.

The Board ensures that each committee, as a whole, has a

balanced composition and has the necessary independence,

skills, knowledge, experience, and capacity to execute its duties

effectively.

TITAN Cement Group

Integrated Annual Report 2020

Embedding sustainability

Sustainability is a top priority for our company. It is embedded

firmly in our strategy through the regular review of all issues that

are material to our stakeholders, the definition of appropriate

actions and targets, and the adherence to environmental, social

and governance policies. Our two governance bodies, the Board

of Directors and the Group Executive Committee, oversee the

implementation of our strategy and sustainability imperatives

and reflect the culture of transparency and collaboration that is

prevalent across the Group.

Our company is committed to achieving a reduction of net direct

CO₂ emissions from 674 to 500kg/t cementitious product by 2030.

This target is in line with limiting global warming to well below

C compared to pre-industrial levels, and will be verified by the

Science Based Targets Initiative (SBTi). To this effect, a three-year

CO₂ target that is compatible with the path to 500kg CO₂ per ton of

cementitious product is included in the performance objectives of

the deferred compensation incentive for executive members of the

Board and the members of the Executive Committee.

The former Group CSR Department was expanded to reflect

the broader focus of our company and our stakeholders on

Environmental, Social, and Governance (ESG) issues, while a

new Group De-carbonization team was established, reporting

directly to the Chief Sustainability Officer. To increase the level

of assurance, ensure manage compliance and prevent fraud, and

corruption issues, the Group Compliance and Anti-Fraud function

was established as part of the Group Internal Audit, Risk and

Compliance Department, reporting to the Group Audit and Risk

Committee.

Board of Directors: sets overall sustainability strategy and makes policy decisions. The Chief Sustainability Officer

is a member of the Board.

Executive Committee (ExCom)

Executive Director Sustainability

Chief Sustainability Officer

Executive Sustainability

Committee (ExCom

Sustainability)

Group Environmental,

Social & Governance (ESG)

Performance Dpt.

Sustainability Working

Group (SWG)

ESG Performance

Network

ExCom Sustainability Committee

Chair: Chairman of the Group Executive Committee

Convener: Chief Sustainability Officer

The purpose of this Committee is to strengthen and support the

management’s long-term approach in addressing environmental,

social, and governance issues and to monitor the implementation of

the sustainability strategy set by the Board. In particular, its role is to

• oversee and monitor the implementation of the Company’s

sustainability strategy,

• monitor performance vs. the targets set and

• decide on corrective actions, review and revise the areas of focus,

set appropriate targets, and review the corporate materiality

assessment.

Sustainability Working Group

Chair: Chief Sustainability Officer

Convener: Group ESG Performance Director

The Sustainability Working Group (SWG) consists of one Senior

advisor to the Board, three ExCom Members, two Regional

Directors and the Investor Relations Director. The SWG is

responsible for supporting the co-ordination of the Group

Sustainability Agenda and the relevant decision-making at both

Group and regional level. The main tasks of the SWG are to

• develop and present specific proposals related to the Group

Sustainability Agenda,

• facilitate internal communication,

• coordinate TITAN’s engagement efforts with international and

industry rganizations, networks, and initiatives, and

• provide guidance to TITAN’s business units.

Group ESG performance department

The role of the Group ESG Performance department is to

consolidate, coordinate, and monitor the sustainability actions

undertaken across the Group, ensuring that we collectively deliver

the best possible results against well-defined ESG criteria.

TITAN's sustainability governance structure

Understanding

TITAN

Performance

highlights

SR1 Climate Change &

GHGE

SR2 Industry Cyclicality

SR3 Local Market

Conditions and

Prospects

SR4 Geopolitical Risk

SR5 Global Systemic

Disruption

SR6 Acquisitions/

Investments/

Divestments

SR7 Key (top level)

Management

OR1 Energy Costs

OR2 Cybersecurity

OR3 Extreme Natural

Events

OR4 Supply Chain

Disruption

OR5 Product Quality/

Product Failure

OR6 Litigation

ESG1 Health & Safety

ESG2 License to Operate/

Access to Key

Materials

ESG3 Risk Related to the

Environment

ESG4 Human Resources,

Diversity & Inclusion

ESG5 Corruption/Fraud

ESG6 Regulatory and

Compliance Risk

ESG7 Governance,

Transparency &

Ethics

FR1 Foreign Currency

Risk

FR2 Goodwill Impairment

Risk

FR3 Taxation Risk

FR4 Customer Credit Risk

FR5 Liquidity Risk

FR6 Interest Rate Risk

FR7 Counterparty Risk

Risk management

Risk identification and assessment are an integral part of our

management processes, helping to safeguard the long-term

sustainability of our business. Risks are addressed on a day-to-

day basis by the Group’s management at various levels in the

organization according to the nature of each risk. The Board has

the overall responsibility for determining the nature and extent

of the principal risks that the Company is willing to assume

in achieving the strategic objectives of the Group, while the

responsibility for monitoring the effectiveness of the Group’s risk

management and internal control systems is delegated by the

Board to the Audit and Risk Committee. TITAN’s risk management

framework is presented below.

Risk Management

Centrally-led Hybrid BU-led

Risks

covered

Strategic, e.g.:

• Climate change mitigation and

adaptation

• Industry cyclicality

• Market conditions

• Political and economic uncertainty

• Global systemic disruption including

COVID-19 pandemic risk

Financial - in particular:

• Treasury

• Liquidity

Environmental, Social and Governance (ESG):

• Health and safety

• Risks related to the environment

• Human Resources, Diversity & Inclusion

• Regulatory compliance risk

Operational risks:

• Production cost

• Risks arising from business interruption,

including as a result of natural disasters

• Cybersecurity risks

• Supply Chain Disruptio

Most operational/

ESG risks

Risk

Management

approach

• Executive Committee

• Capex Committee

• Group Finance

• Other Group functions

• Group HR processes

• Business Units (BU)

• Higher central oversight vs. BU-led risks

• BU management as

part of day-to-day

operations

• Embedded into

business processes

TITAN is active in a diverse geographical, business, and operational landscape. This results in a multitude of potential risk exposures,

including strategic, financial, sustainability (ESG) and operational risks. Risks are categorized using established risk taxonomies relevant

to the Group’s business and are assessed in terms of probability, impact, and preparedness, in line with industry best practices.

Internal Audit, Risk and Compliance Unit and Audit and Risk Committee

The list of the Group’s main risks and the respective probability vs. impact heat map is presented below:

SR1

SR5

SR7

FR6

FR5

SR2

Probability

Impact

Strategic Financial

ESG Operational

FR7

ESG7

ESG5

ESG6

OR6

OR4

OR5

SR6

ESG4

FR4

ESG3

OR3

ESG2

OR1

FR3

OR2

ESG1

FR2

SR4

SR3

FR1

0 1 2 3 4 5

SR1

SR5

SR3

SR7

SR6

FR4

ESG3

ESG5

ESG7

ESG6

ESG1

ESG4

FR2

FR1

FR3

FR6

FR5

SR4

SR2

OR1

OR2

OR4

OR6

OR3

OR5

ESG2

TITAN Cement Group

Integrated Annual Report 2020

Regional performance

USA

Integrated

cement

plants

Quarries

Import

terminals

Ready-

mix

plants

Concrete

block

plants

Fly ash

processing

plants

Operational Units

Principal Products/Activities

Cement

Ready-mix

concrete

Aggregates

2020 Performance highlights

Despite the disruptions caused by

the pandemic, Titan America was able

to deliver consistent results for 2020.

In a year of economic volatility, construction

activity escaped the full brunt of the

downturn in the US.

Revenue

€937.7m

(2019: €952.0m)

EBITDA

€176.1m

(2019:€179.3m)

Total assets

€1,095.8m

(2019: €1,106.2m)

Roanoke cement plant, USA

Building

blocks

Fly ash

Market overview

COVID-19 caused 2020 to be the first year of contraction

after a decade of economic expansion. Real GDP dropped

31% in Q2 as economic shutdowns hit the US. After a strong

rebound in the second half of the year, 2020 full year real GDP

decreased 3.5%. Decreases in personal consumption and non-

residential investment were the biggest drivers of the real GDP

contraction, but were partially offset by increases in federal

government spending and residential fixed investment. Inflation

remained below target despite liberal monetary policy. The US

unemployment rate was at 6.7% in December 2020, marking a

recovery from the peak April unemployment rate of 14.8%.

Construction spending in the USA increased by 4.7% to $1.43

trillion. US residential construction spending increased by 11.6% in

2020, driven by a strong single-family housing market which was

boosted by low interest rates and migration trends from densely

populated areas to the suburbs. US public construction grew by

4.8%, but private non-residential construction spending decreased

by 3.0%. 2020 US cement consumption increased by 1.9% to

105 million metric tons.

Regional performance

TITAN’s US Operations had a strong year. Our markets

demonstrated resilience as the construction industry managed

to respond effectively with mitigation protocols that largely

enabled construction to continue as an essential activity. Cement,

aggregates and ready-mix sales were sustained at high levels. Block

sales volumes grew, benefitting from the growth of the housing

market while fly ash suffered from supply constraints. Overall,

in US$ terms 2020 revenue increased from 2019, reaching $1.07

billion. In euro terms, revenue declined by 1.5% to €937.7 million.

Active quarry sites with

biodiversity

management plans:

(2019: 3)

Integrated cement plants with

certified Energy Management

Systems (ISO 50001 or equivalent):

100%

(2019: 37%)

LTIFR (employees):

0.39

(2019:1.30)

Employees:

2,307

(2019:2,307)

*1 facility in Canada is included

Performance

highlights

Understanding

TITAN

Titan America is taking a holistic

approach to applying environmental

and energy improvements at every

stage of its operations. In collaboration

with universities and local utilities, as

well as with the involvement of key

stakeholders, it is addressing the needs

of energy conservation and climate

change throughout the manufacturing

and distribution of its products.

In partnership with the Georgia Institute

of Technology, TITAN has created

a world-class energy management

system and now boasts the only two

ISO 50001-certified cement plants in

the USA. Utilizing artificial intelligence

models to maximize efficiencies, the

plants have increased the use of lower-

emission fuels such as natural gas and

alternative fuels. The Pennsuco plant

now produces its own kiln fuel at a new

Processed Engineered Fuel (PEF) facility,

which will offset the plant’s existing

fossil fuel usage by up to 30% while

diverting municipal waste from landfill.

Titan America has also set annual

targets to reduce the environmental

impact of manufacturing by reducing

the clinker required for cement

production.

Changes in the US energy market have

resulted in a significant reduction

in the production of fly ash while

decades of coal use in the electricity

industry have produced large landfills

of fly ash. Addressing this shortage

of freshly available alternative raw

materials, Separation Technologwies,

a TITAN company, operates a pilot

reclamation plant where landfilled fly

ash is excavated and processed into a

consistent, high-quality alternative raw

material for the concrete industry –

ProAsh®. As it lessens the quantity of

cement in concrete, the use of ProAsh®

reduces the CO₂ generated in cement

manufacturing.

A holistic approach to climate change mitigation and energy efficiency

EBITDA reached €176.1 million, a decline of 1.8% compared to

2019. TITAN America’s performance was buoyed by the successful

implementation of cost saving initiatives, improved energy costs

and cash flow preservation initiatives.

Florida

Florida benefitted from increased housing demand, with TITAN

markets outside of South Florida demonstrating notable growth.

However, this was offset by a downturn in non-residential

construction, which was harmed by struggling tourism and service

industries. Overall, 2020 cement consumption in Florida grew 1.0%

to 8.1 million metric tons.

Virginia, and the Carolinas

Cement consumption in Virginia increased by 4.8% to 2.1 million

metric tons, while North Carolina’s consumption increased 2.9%

to 3.0 million metric tons. Solid first and fourth quarters drove

strong results for the region, boosted by favorable weather, strong

residential demand, and cement intensive public works projects.

Business performance improved, driven by increased volumes and

improved production costs.

New York/Metro

Cement consumption in the New York Metropolitan area declined

4.2% to 1.8 million metric tons as New York was the first coronavirus

epicenter and had the worst economic impact. Essex cement

responded well and remained a strong player in the market.

ESG Performance

Protecting the health and wellbeing of our people and local

communities from COVID-19 was a top priority throughout 2020.

Relevant initiatives ranged from providing emergency sick and

quarantine pay to issuing new safe-working protocols, setting up

telehealth services, and offering an employee assistance program

(EAP), a consulting support service for employees and their

families. Lost time and recordable incidents reached historical

lows. Despite the pandemic, we were able to continue to hire,

onboard, and train employees at rates similar to previous years,

in preparation for our next phase of growth. Titan America has

continued to improve its operational sustainability and carbon

footprint, switching partially to natural gas, systematically

monitoring energy consumption, and marketing cement with a

high limestone content. In 2020, the Pennsuco Cement Complex

became the first cement plant in the world to be Total Resource

Use and Efficiency (TRUE) Platinum certified for zero waste. In

addition, Roanoke was awarded the 2020 Outreach Award by the

Portland Cement Association in recognition of its community

engagement efforts.

SDGs related to regional material issues:

TITAN Cement Group

Integrated Annual Report 2020

Regional performance

Greece and Western Europe

Integrated

cement

plants

Processed engineered fuel facilities

Cement

grinding

plant

Import

terminals

Ready-

mix

plants

Quarries

Dry mortar

plant

Operational Units

Principal Products/Activities

Cement

Ready-mix

concrete

Aggregates

2020 Performance highlights

Revenue

€246.6m

(2019: €244.9m)

EBITDA

€17.2m

(2019: €11.9m)

Total assets

€563.3m

(2019: €534.6m)

Dry

mortars

COVID-resilience and significant demand

growth resulted in improved performance.

Thessaloniki cement plant, Greece

Market overview

Demand posted significant growth in 2020, mainly driven by

buoyant activity levels across numerous public and municipal

infrastructure projects. Large-scale infrastructure projects on

the other hand, have yet to commence, but have completed the

tender award and contract signing phases. Growth continued

in residential construction, as well as wider real estate and

logistics projects following last year’s positive trends. The trend in

residential is set to continue with a significant increase in building

permits pointing to a continuing future increase in demand for

new buildings. Tourism activity, which started at the same strong

pace as in 2019 with investments in new facilities, experienced

a slowdown when the pandemic hit the sector hard. Cement

exports remained strong, with the USA representing Greece’s

biggest export market.

Regional performance

2020 was a year of improved performance in Greece. This was the

result of a combination of higher domestic cement sales volumes,

increased operational efficiencies from digital optimization

projects, lower fuel prices, and a notable increase in alternative

fuel utilization.

On the export front, the US remained strong, despite the

pandemic effect. Our import terminals in the UK, Italy and France

experienced disruptions in the early stages of the crisis, but

overall performed in line with the trends of their regional markets.

These conditions led to high cement exports for our plants and

high utilization rates. Clinker export sales dropped, due to lower

marginal profitability arising from CO₂ costs. Overall export

volumes recorded a small decline in 2020 and their profitability

was impacted by the unfavorable US$-euro exchange rate.

As such, total revenue for Greece and Western Europe in 2020

increased by 0.7% to €246.6 million while EBITDA increased by

€5.3 million to €17.2 million.

Active quarry sites with

biodiversity management plans:

(2019: 5)

Integrated cement plants with

certified Energy Management

Systems (ISO 50001 or equivalent):

100%

(2019: 100%)

LTIFR (employees):

0.49

(2019: 0.00)

Employees:

1,175

(2019: 1,172)

Local spend:

71.94%

(2019: 69.45%)

Performance

highlights

Understanding

TITAN

The Phenological Garden at TITAN

Greece’s Efkarpia cement plant is one of

three such gardens in Thessaloniki that

are used to study the role of urban green

assets in the adaptation of cities to

climate change and in the enhancement

of CO₂ capture potential. Operated by

the Aristotle University of Thessaloniki

as part of the European Union’s LIFE

CliVUT program, the 2,500m² garden has

been planted with 100 Mediterranean

trees and bushes using 20 different

species. The garden will be used for

research and educational purposes,

both during the program and after

its completion. For at least 10 years,

researchers will systematically record

data that will contribute to knowledge

about climate change, its effects and

their mitigation. The program also

includes educational activities for school

students and experiential participation

in the recording process.

Overall, the LIFE CliVUT program, which

will run in four EU cities until 2023,

involves the planting of 10,000 new

trees and shrubs in pilot areas and the

replacement of 8,000 existing trees and

shrubs with species with a high climate

performance. The project, which will

help shape the EU’s environmental and

climate policy, aims at a total annual

reduction in greenhouse gas emissions

of 168,000 tons and an increase in CO₂

storage in trees by about 42,000 tons.

Other anticipated benefits include

reducing energy consumption by 2,000

MW/year and air temperature by 4-5°C

in new urban green spaces.

A garden for the future

ESG Performance

In 2020, TITAN Greece achieved a notable improvement in the Lost

Time Injuries Frequency Rate (LTIFR), which dropped below one

for employees and contractors combined. Our Greek operations

received ISO 45001 certification, echoing our commitment to

enhance our safety performance.

We remain focused on reducing our carbon footprint and further

increased the use of alternative fuels at our plants. In addition,

we received a permit for additional streams of alternative fuels for

our plant in Thessaloniki (Efkarpia). Considering local community

needs for transparent and continuous communication, we

launched two separate microsites through which the public can

view our performance on air emissions on a daily basis and receive

information on co-processing.

From the onset of the COVID-19 pandemic, TITAN offered support

to employees, contractors, and local communities. We took action

to contain the spread of the virus, support hospitals and medical

staff, provide digital tools and equipment to own personnel and

school children, and assist customers, contractors, and vulnerable

groups.

SDGs related to regional material issues:

TITAN Cement Group

Integrated Annual Report 2020

Regional performance

Southeastern Europe

Integrated

cement

plants

Quarries

Ready-mix

plants

Processed

engineered

fuel facility

Operational Units

Waste management

and alternative fuel

Principal Products/Activities

Cement

Ready-mix

concrete

Aggregates

2020 Performance highlights

The construction market, after an abrupt

slow down at the start of the pandemic,

recovered to post a net growth for the

region in 2020, with a particularly strong

last quarter.

Revenue

€271.0m

(2019: €262.6m)

EBITDA

€96.2m

(2019: €77.2m)

Total assets

€456.9m

(2019: €483.4m)

Regional performance

Our markets proved resilient. Revenue increased to €271 million,

supported by pricing and domestic volumes, which covered

a reduction of exports from the region. Margins improved

substantially, thanks to a recovery from the previously low

prices and a large reduction of fuel costs, on top of efficiency

improvements and cost containment measures. As a result,

EBITDA grew by 24.6% to €96.2 million.

Our plants remained in operation throughout the pandemic, with

our efforts concentrated in protecting the health of our employees

and supporting the vulnerable in the communities around our

plants, through donations of medical supplies and equipment, as

well as the active engagement of our volunteers.

Albania

The Albanian economy recorded a GDP recession of ~6%. Private

construction continued with robust activity, boosting cement

demand by an estimated 10% compared to 2019, supported also by

activity following the November 2019 earthquake.

Bulgaria

Against the backdrop of a projected 5.1% reduction of Bulgaria’s

GDP, the construction market has shown some resilience with an

approximately 2-3% decline in cement demand. TITAN experienced

a slightly bigger decrease, due to the continuing increase of

imports to the country.

Usje cement plant, N. Macedonia

Employees from local

community:

64.13%

(2019: 65.43%)

Employees:

1,132

(2019: 1,157)

LTIFR (employees):

1.48

(2019: 2.80)

Local spend:

72.16%

(2019: 69.65%)

Performance

highlights

Understanding

TITAN

In Southeastern Europe, all TITAN

subsidiaries have established a track

record of publishing annual reports

focused on sustainability performance

in line with international and sectoral

standards and best practices. In

2020, the business units in Albania,

Bulgaria, North Macedonia, Kosovo,

and Serbia continued to facilitate

transparent and open communication

with local stakeholders. The annual

reports for 2019 were accompanied by

independent assurance in line with

TITAN’s reporting standards. Under

the assurance verification and for the

first time, the reports also succeeded

in meeting the UN Global Compact

Criteria on Advanced Level for their

Communication on Progress (COP)

according to the Ten Principles.

Enhancing our reporting standards

for the annual reports required

additional engagement of our local

teams. Finally, the elevated reporting

standards ensured consistency for

reporting on actions to support the

broader UN Goals under the SDGs

Agenda 2030. This effort builds

on TITAN’s strategy to enhance

our distinctive approach to social

engagement in each country where

we operate.

Elevating annual reports to international standards

Kosovo

The construction sector in Kosovo remained strong, with cement

demand stable, in spite of a drop of GDP by about 8%. The main

driver was residential construction. TITAN revenue increased,

thanks to firm pricing, with a small reduction in volumes. Costs

decreased, supported also by energy efficiency improvements

following the implementation of relevant investments.

North Macedonia

The GDP of North Macedonia declined by 5.1%. The NATO accession

and the start of negotiations for EU membership have helped

stability. The construction market showed particular resilience

with a solid performance recorded across market segments.

Serbia

The Serbian economy recorded a modest contraction of -1.5%.

Higher public infrastructure spending, combined with a surge

of private investment in real estate, resulted in the growth of

construction activity in the country and an increase in cement

demand by approximately 10%, for the second consecutive year. In

neighboring Montenegro, the main export market of our subsidiary

Kosjeric, the cement market continued to decline, primarily due to

the completion of a major highway project.

ESG Performance

During the COVID-19 pandemic, we stood by our local communities

in all countries where we operate in the region. In Albania, we

offered support to our neighboring communities that were heavily

affected by the 2019 earthquake and we continued our community

engagement, with programs such as “Hygiene in School,” “Safety

at Home,” “Back to School,” and “Supporting People with Special

Needs.” In Kosovo, we supported a special community project,

conducted in cooperation with Laboratory for the Activation

of Businesses (LAB), Helvetas, and other partners, that led to

the creation of 20 jobs in an area of high unemployment. In

addition, we contributed through the Kosovo CSR Network to the

#unitedforchildren, #backtoschool, and #generationunlimited

programs in collaboration with UNICEF.

With regards to the environment, we further decreased our CO₂

emissions in Bulgaria, expanding our alternative fuels utilization

capacity and securing additional local streams. In our cement plant

in Serbia, we put in operation two new bag filters in our cement

plant, where preparations are underway for the installation of a

latest-generation bag filter for the kiln and raw mill, which will

further improve the environmental footprint of our cement plant.

SDGs related to regional material issues:

TITAN Cement Group

Integrated Annual Report 2020

Eastern Mediterranean

Regional performance

Integrated

cement

plants

Quarries

Cement

grinding

plant

Ready-

mix

plants

Principal Products/Activities

Cement

Ready-mix

concrete

Aggregates

2020 Performance highlights

Amidst a fragile external economic

environment, conditions in the Eastern

Mediterranean region remained

challenging in 2020 owing to pre-existing

structural market limitations in Egypt,

partially counterbalanced by an improved

performance in Turkey.

Revenue

€151.7m

(2019: €150.3m)

EBITDA

€-3.3m

(2019 €-1.2m)

Total assets

€484.8m

(2019 €634.2m)

Alexandria cement plant, Egypt

Market overview

In Egypt, the impact of the COVID-19 crisis was less severe than

expected, with GDP recording a 3.6% increase in 2020. With

persistent oversupply, however, and a six-month ban on private

construction permits, cement consumption in the country

declined by an estimated 6.5%, reaching approximately 45.5 million

metric tons.

In Turkey, despite the sharp contraction in economic activity

witnessed in the first half of the year, the economy staged a

turnaround in the second half, resulting in a 0.5% GDP increase for

2020. This performance was also reflected in the cement market

which grew by 18% in 2020, reaching approximately 53 million

metric tons, yet still 25% below the peak levels of 2017.

Regional performance

In 2020, amidst market challenges and economic uncertainty,

the Eastern Mediterranean posted total revenue of €151.7 million

recording an increase of 1%, while at EBITDA level the Group

recorded a €3.3 million loss versus a €1.2m loss in 2019.

Following the acquisition of IFC’s minority stake in TITAN’s

Egyptian subsidiaries in 2019, our Egyptian subsidiary Alexandria

Portland Cement Company voluntarily delisted from the Egyptian

Exchange in 2020.

Performance

highlights

LTIFR (employees):

0.00

(2019: 2.04)

Employees:

745

(2019: 764)

Employees from local community:

88.86%

(2019: 87.96%)

Local spend:

85.95%

(2019: 80.07%)

Operational Units

Waste management

and alternative fuel

Processed

engineered

fuel facilities

Understanding

TITAN

Since 2014, TITAN Egypt has been working to improve living

conditions in Alexandria’s WEK district, in partnership with

the Sustainability Center for Development, a local NGO. To

date, it has invested EGP 6.3 million (€446,453) to raise the

capabilities of local organizations, improve local conditions,

support employment for women and young people, and

offer culture and entertainment. It has also contributed

to the renovation of a local elementary school and youth

play facilities. More recently, during the COVID-19 crisis,

it supported hygiene and disinfection activities in the

neighborhood and distributed protective equipment and

food to poor families. The partnership will continue for the

foreseeable future, improving the health and living conditions

of people in the neighborhood.

In a separate initiative in association with the Sehetna

Foundation, TITAN Egypt has provided EGP 7 million

Boosting the sustainability of local communities

Egypt

The cement industry in Egypt continued to suffer from oversupply.

Prices remained stagnant at low levels, wiping out profitability

at our Egyptian operations. The company, nevertheless,

continued to provide new and high-quality products, launching

innovative and environmentally friendly products during the

year. Moreover, the company continued its efforts towards

environmental amelioration, through the use of alternative fuels,

at both the Alexandria and the Beni Suef plants. The continuing

weak performance of our Egyptian operations necessitated a

reassessment of their carrying value which resulted to the write-

off of all related goodwill €46.6m and derecognition of €17.3m of

deferred tax assets.

Turkey

Adocim’s operations in Turkey followed the same positive trend

as the cement industry overall. Group sales capitalised on existing

demand from private housing and public infrastructure projects as

well as increased export activity. The depreciation of the Turkish

lira against the euro by 26.7% during the year, was not fully offset

by increases in domestic prices. Adocim benefited by high export

volumes, however, increasing its overall profitability for the year.

While production costs increased mainly due to higher fuel prices

owing to the Turkish lira’s depreciation, our subsidiary’s modern

asset base, competitive production cost and low gearing placed

it at an advantageous competitive position to mitigate these

challenges while satisfying market demand.

ESG Performance

Despite the pandemic, TITAN Turkey made a determined effort

to improve its environmental, health and safety, and community

engagement performance. While responding to COVID-19 was our

priority, online health and safety, personal development, and IT

training programs were offered to all employees. Furthermore,

Adocim focused on the wellbeing of its personnel by offering online

seminars and an employee assistance program (EAP). Continuous

audits contributed to the proactive prevention of hazards. The

effort to increase the use of alternative fuels to reduce our carbon

footprint continued. Moreover, we took significant steps to

optimize water consumption and recycle wastewater. In waste

management, our efforts to ensure separate collection were

acknowledged through the Zero Waste Certification.

In parallel, TITAN Egypt managed to maintain its performance

in regards to CO₂ emissions, water consumption, and waste

management, keeping its environmental footprint at a satisfactory

level. Through our partnerships with specialized NGOs and local

universities, we implemented projects to improve the living

and health conditions of local communities. TITAN experts

also participated in a digital development program to equip

undergraduate students with hard and soft skills.

SDGs related to regional material issues:

(€360,613) to a public hospital in Beni Suef for the purchase of

furniture and incubators and equipment for gynecology rooms,

pathology laboratories and intensive care units. The project

has proved invaluable during the pandemic.

TITAN Cement Group

Integrated Annual Report 2020

Regional performance

Joint venture in BrazilJoint venture in Brazil

Growth in demand for a second consecutive

year.

Integrated

cement

plant

Quarries

Ready-mix

plants

Operational Units

Principal

Products/Activities

Cement

grinding

plant

STET

ST Equipment & Technology LLC (STET), a wholly-owned

subsidiary of Titan America, is a designer, manufacturer and

marketer of proprietary separation equipment for dry powders. Its

patented technology is suited for the processing of dry powders

and recycling of waste streams in an innovative, environmentally

sustainable, and cost-effective manner, contributing to the circular

economy, both locally and globally.

Applications of the technology include the recycling of coal

combustion fly ash, water-free processing of industrial minerals,

and upgrading of plant-derived proteins for animal feed and human

food applications. In 2020, a new fly ash separator was delivered

for installation and commissioning at a US power station in 2021.

As coal fired power generation declines in the USA, STET has

focused on deploying its processing technology to recover fly ash

stored in landfills and impoundments. In 2020, STET successfully

commissioned its first reclaimed fly ash drying plant at the

Brunner Island Steam Electric Station in Pennsylvania, USA.

STET invests heavily in R&D to further develop its technology. In

2020, the company performed successful separation testing and

continued applications development on a variety of plant-based

food and animal feed ingredients including sunflower meal and

dried distillers’ grains, among other ingredients. In addition, STET

filed patents on electrostatic separation of distillers’ grain and fine

iron ores, iron ore tailings and bauxite ores.

GAEA

Green Alternative Energy Assets (GAEA) is a company that provides

services in waste utilization and alternative fuels production.

Established in 2011 in Bulgaria, GAEA has been recognized as

a reliable solutions provider in the Bulgarian waste market,

providing solutions to a wide range of manufacturing and recycling

industries in the country and actively contributing to the circular

economy. In 2020, GAEA continued its positive trajectory, enabling

the Zlatna Panega Cement plant to achieve an all-time record

thermal substitution rate.

GAEA has also expanded its operations in Egypt since 2016,

providing solutions for municipal solid waste to the municipalities

of Alexandria and Beni Suef and producing refuse-derived fuel for

the Group’s cement plants, thus reducing its carbon footprint.

Other business activities

Contributing to circular economy

Performance

highlights

Overview

Brazil was severely hit by COVID-19 and the restrictive measures

negatively impacted economic recovery. Nevertheless, the easing

of lockdown measures and the government’s stimulus packages,

allowed for a rapid rebound in cement consumption in the second

half of the year. Cement demand, mainly driven by the residential

and commercial sector, grew by 10.7% reaching 60.5 million tons.

This was the second consecutive year of growth.

Regional performance

Cement consumption in the north and northeast, the natural

market of Apodi, grew at a faster pace than the rest of Brazil. Apodi

increased its sales volumes at a rate higher than the national

average by continuing to penetrate the bulk segment, through a

focus on the pre-cast industry, the expansion of Fortaleza’s airport

and metro, restoration and expansion of roads, highways, dams

and water canals.

Driven by the increased demand, selling prices saw a significant

increase, enhancing the company’s profitability. Net profit

attributable to the TITAN Group reached €2.6 million compared to

the €1.0 million loss in 2019, despite a 33.6% y-o-y devaluation of

the Brazilian Real.

ESG performance

Our joint venture in Brazil continued to implement its long-term

community engagement plan, which focuses on quality education

and employment skills for local youth, entrepreneurship and women

empowerment, environmental awareness, social inclusion, and the

promotion of the UN SDGs in the business sector in collaboration

with Rede Brasil UN Global Compact. Furthermore, in 2020, Cimento

Apodi published its first Sustainability Report. More than 80 people

in the local community benefited from the Construir Saber Project of

the Social Service of Industry (SESI) and the community association

of Bom Sucesso. Cimento Apodi also contributed to the fight

against the pandemic through the provision of masks to vulnerable

residents and support to health agents.

Cement

Ready-mix

concrete

Understanding

TITAN

Outlook 2021

In the US, the effects of the pandemic are expected to ease in 2021

as vaccine distribution accelerates. Benefiting from a combination

of pent-up demand and an additional round of anticipated federal

fiscal stimulus, the US economy is poised to rebound sharply and

reach pre-pandemic levels. Titan America’s solid backlogs point to

continuing healthy activity levels and profitability.

In Greece, similar trends to those witnessed thus far should

continue in 2021. Housing-related construction together with

many peripheral infrastructure works such as highways, ports

in the wider periphery and projects in the Attica capital region,

supported by the existing financing mechanisms, should fuel

demand.

In Southeastern Europe, the region is expected to continue

performing solidly. Our cluster of operations, brings the benefits

of network effects to the Group, and across most of the regional

markets, the fundamentals of demand are in place to maintain

performance at high levels.

In Egypt, we anticipate an increase of cement consumption in a

market which faces structural issues and government’s actions

have so far exacerbated rather than contributed to a solution

of the problem. The country harbors very promising underlying

fundamentals for cement growth with a consistently positive GDP

growth, one of the highest birth rates in the region and a strong

trend of urbanization.

In Turkey, construction is anticipated to sustain its positive trend,

amidst an uncertain economic outlook. Due to the prevailing

economic situation, personal investments continue flowing

into real estate while infrastructure spending such as new

transportation projects, will support further growth in cement

consumption.

In Brazil, the National Union of Cement Industry expects that in

2021 cement demand will remain at the high level achieved in

2020.

TITAN Cement Group, underscoring its enduring commitment to

sustainability and value creation for all, released its Environmental,

Social and Governance (ESG) targets for 2025 and beyond. The

targets include an updated, more ambitious, CO₂ reduction goal for

2030 at -35% compared to 1990 levels, aligned with the vision of

the European Green Deal to achieve climate neutrality by 2050.

TITAN has set 20 targets that focus on four pillars, which are

defined as material by its stakeholders, all underpinned by good

governance, transparency and business ethics:

• De-carbonization and digitalization, aiming to transform our

business, focusing on resilience, innovation and on building

solutions to serve our customers more efficiently as we move

towards a carbon-neutral, digital world

• Growth-enabling work environment, aiming to cultivate an

inclusive culture with equal opportunities for all our people to

grow professionally within a safe and healthy work environment

• Positive local impact, aiming to enable our business operations

and our people worldwide to contribute to the prosperity of our

local communities with respect to their social and environmental

concerns

• Responsible sourcing, aiming to empower our business

ecosystems to incorporate sustainability considerations in their

business decisions and daily behaviors, while using natural

resources responsibly

Market fundamentals remain promising, and the key drivers of demand are in place to support

operational growth in 2021. At the same time, intermittent waves of COVID-19 across many

countries are triggering corresponding government measures which impact economic activity.

Roanoke cement plant, USA

TITAN Cement Group

Integrated Annual Report 2020

Corporate

Governance

and Risk

Management

Our approach to corporate governance

and risk management.

Management Report

Acropolis Museum, Athens, Greece

1. Corporate Governance Code

1.1 Application of the Belgian Corporate Governance Code

2020

Titan Cement International S.A. (the Company) is a public limited

liability company incorporated under Belgian law. Its shares are

listed on the regulated markets of Euronext Brussels, Euronext

Paris and the Athens Exchange.

The Company is committed to the highest governance principles,

seeking consistent enhancement of its corporate governance

performance and promoting transparency, sustainability and long-

term value creation.

Τhe Company applies the principles of the Belgian Corporate

Governance Code 2020 (the 2020 CG Code or the Code),

which is publicly available on the website https://www.

corporategovernancecommittee.be/en/over-de-code-2020/2020-

belgian-code-corporate-governance.

The Code is structured under ten principles, which are further

detailed in several provisions–recommendations. The “comply or

explain” principle states that all listed companies are expected to

comply with all the provisions of the Code, unless they provide an

adequate explanation for deviating from a provision.

The Corporate Governance Charter (the CG Charter), which is

available on the Company’s website https://www.titan-cement.

com/wp-content/uploads/2021/01/TCI-CG-Charter.pdf describes

the main aspects of the Company’s governance structure, as

well as the terms of reference of the Board of Directors and its

Committees and the Dealing Code of the Company.

1.2 Deviations from the Code

The Company complies with the provisions of the Code except

with regard to the following deviations:

a. The non-executive members of the Board are not partly

remunerated in the form of shares in the Company. Therefore,

the Company deviates from Provision 7.6 of the Code. This

deviation is explained by the fact that the interests of the non-

executive directors are currently considered to be sufficiently

oriented to the creation of long-term value for the Company

and, hence, that their partial payment in the form of shares is

not deemed necessary. It should be noted that this is a new

provision of the Code which had not been taken into account

when the remuneration of the non-executive directors had been

decided. However, the Company intends to consider after the

completion of the current term in office of the non-executive

Board members, the alignment of the Company with article 7.6 of

the Code.

b. No provisions regarding the recovery of variable remuneration

paid to executives or withholding the payment of variable

remuneration of executives, including specific circumstances

in which it would be appropriate to do so, are included in the

contracts with the Managing Director and other executives.

Therefore, the Company deviates from Provision 7.12 of the

Code. This deviation is explained by the fact that variable

remuneration is paid in case the criteria set for such payment

in advance, have been met. In case of early termination, the

Company applies the Remuneration Policy which was approved

by the AGM on 14 May 2020.

c. As at 31 December 2020, no minimum threshold of shares

held by the executives had been set. Therefore, the Company

deviates from Provision 7.9 of the Code. This deviation is

explained by the fact that the interests of the executive

directors are currently considered to be sufficiently oriented to

the creation of long-term value for the Company. Hence, setting

a minimum threshold of shares to be held by executives is not

deemed necessary. At the same time, in case executives exercise

stock options, they are obliged to retain a minimum threshold of

exercised shares.

1.3 Governance structure

The Company has chosen the one-tier governance structure,

which consists of the Board of Directors, which is authorized

to carry out all actions that are necessary or useful to achieve

the Company’s purpose, except for those for which the General

Meeting of Shareholders is authorized to carry out by law.

At least once every five years, the Board shall review whether the

chosen one-tier structure is still appropriate, and if not, it should

propose a new governance structure to the General Meeting of

Shareholders.

2. Capital, Shares and Shareholders

2.1 Capital

On 31 December 2020 the share capital of the Company

amounted to €1,159,347,807.86 and was represented by

82,447,868 shares, without nominal value, with voting rights,

each representing an equal share of the capital.

2.2 Shareholder structure

The chart in the next page represents the shareholder

structure of the Company as of 31 December 2020, based on

the transparency declarations made by its shareholders, the

announcements of the Company for exercised stock options and

changes in shares that did not require a transparency declaration

due to the fact that the 5% threshold was not exceeded either

upwards or downwards.

Based on the above:

• E.D.Y.V.E.M. Public Company Ltd, Andreas Canellopoulos,

Leonidas Canellopoulos, Nellos-Panagiotis Canellopoulos, Pavlos

Canellopoulos, Takis-Panagiotis Canellopoulos, Trust Neptune,

Alexandra Papalexopoulou, Dimitri Papalexopoulos and Eleni

Papalexopoulou, act in concert and hold 29,416,847 shares

corresponding to 35.68% of the Company’s voting rights;

• The Paul and Alexandra Canellopoulos foundation holds

7,882,883 shares corresponding to 9.56% of the Company’s voting

rights;

• FMR LLC, Fidelity Institutional Asset Management Trust

Company, FIAM LLC and Fidelity Management & Research

Company LLC hold 5,525,706 shares corresponding to 6.70% of

the Company’s voting rights; and

Corporate Governance Statement

Corporate Governance

and Risk Management

Management

Report

• ΤΙΤΑΝ Cement Company S.A. holds 5,191,277 shares

corresponding to 6.30% of the Company’s voting rights.

The legal threshold applied by the Company requires a

transparency declaration by shareholders at 5% and each

subsequent multiple of 5%.

E.D.Y.V.E.M. Public Company Ltd

and TCI founders acting in concert

TITAN Cement Company S.A

Other

Paul and Alexandra

Canellopoulos Foundation

35.68%

9.56%

41.76%

6.70%

6.30%

FMR LLC, FMR CO Inc, Fidelity

Institutional Asset Management

Trust Company, FIAM LLC

The Company’s Shareholder Structure and the relevant

transparency declarations are available on the Company’s website:

https://ir.titan-cement.com/en/shareholder-center/shareholder-

structure.

2.3 Interactions with institutional and individual investors

The Company regularly interacts with institutional investors.

Roadshows are organized with executive Board members and

investor relations representatives. The Company’s representatives

attend investor conferences and pursue dialogue with the

investment community on TITAN’s strategy and business

performance.

In 2020, due to the pandemic, TITAN participated remotely in many

events, including roadshows and conferences, in several countries

across the world.

At the same time, all shareholders have access to clear,

comprehensive and transparent information through direct contact

with the investor relation team.

The Shareholder Services Department responds to all queries and

requests for information and shareholder assistance.

3. Board of Directors

3.1 Resumes of Directors

Efstratios-Georgios (Takis) Arapoglou

Chairman – Non-executive Director – Chairman of the Nomination

Committee

Takis Arapoglou is a consultant with an earlier career in

International Capital Markets and Corporate & Investment

banking and later in managing, restructuring and advising publicly

listed Financial Institutions and Corporates, primarily in SE Europe

and the Middle East.

His most recent executive assignments include: Managing

Director and Global Head of the Banks and Securities Industry

for Citigroup; Chairman and CEO of the National Bank of Greece;

Chairman of the Hellenic Banks Association; CEO of Commercial

Banking at EFG Hermes Holding SAE.

He currently holds the following non-executive Board positions:

Chairman of Bank of Cyprus Group, Chairman of Tsakos Energy

Navigation (TEN) Ltd, Independent Board member of EFG Hermes

Holding SAE and Board member of Bank Alfalah Ltd, representing

the International Finance Corporation (IFC).

He has degrees in Mathematics, Engineering and Management

from Greek and British universities.

Kyriacos Riris

Vice Chairman – Independent Director – Chairman of the Audit and

Risk Committee

Kyriakos Riris completed his high-school education in Cyprus,

before continuing his higher education and professional

qualifications at Birmingham Polytechnic.

He completed his professional exams with the Association

of Certified Chartered Accountants (ACCA) in the UK in 1975,

becoming a Fellow of the Association of Certified Accountants

in 1985. Since 1976 he has worked mostly in Greece. He was

a member of the Executive Committee of PwC Greece and

became a Partner in 1984. His responsibilities have included that

of Managing Partner of the Audit and the Advisory/Consulting

Departments respectively, and later Deputy Territory Senior

Partner. In 2009, he was elected as Chairman of the Board of PwC

Greece, retiring from that position in 2014.

With a career spanning some 40 years, he has accumulated

vast experience with both domestic and multinational entities

in a variety of sectors and industries, including manufacturing,

shipping, commerce, food and beverages, construction,

pharmaceuticals, financial services and information systems.

Dimitri Papalexopoulos

Chairman of the Group Executive Committee

Dimitri Papalexopoulos started his career as a business consultant

for McKinsey & Company Inc. in New York and Munich.

He joined TITAN in 1989 and in 1996 he assumed the position of

Chief Executive Officer.

Mr. Papalexopoulos is Vice-Chair of the European Round Table for

Industry (ERT) and chairs the ERT’s Energy Transition & Climate

Change Committee.

In June 2020, he was elected Chairman of the Board of the Hellenic

Federation of Enterprises (SEV). He is a member of the Board of

the “Foundation for Economic and Industrial Research” (ΙΟΒΕ), the

“Hellenic Foundation for European and Foreign Policy” (ELIAMEP)

and of “Endeavor Greece”.

He holds an MSc in Electrical Engineering from the Swiss Federal

Institute of Technology (ETHZ) and an MBA from Harvard Business

School.

TITAN Cement Group

Integrated Annual Report 2020

Michael Colakides

Managing Director – Group CFO

Michael Colakides started his career in banking at Citibank Greece,

where over time he held the positions of Head of FIG, Head of

Corporate Finance and Local Corporate Banking (1979–1993). In

1993 he was appointed Executive Vice Chairman at the National

Bank of Greece, Vice Chairman of ETEBA Bank S.A. and member of

the BoD of other NBG affiliates.

In 1994 he joined TITAN Cement Company S.A., where he held the

position of Group CFO and executive Board member until 2000. He

was also responsible for several cement company acquisitions in

SE Europe and the USA.

From 2000 to 2007, he served as Vice Chairman and Managing

Director at Piraeus Bank S.A., overseeing the domestic wholesale

and retail banking business as well as the Group’s international

network and activities. In 2007 he moved to EFG Eurobank

Ergasias S.A., assuming the position of Deputy CEO–Group Risk

Executive (2007–2013) overseeing the risk management functions

of the Group.

In January 2014, he rejoined the TITAN Cement Group and assumed

the position of Group CFO of TITAN and also became an executive

member of the Board of Directors.

He holds a BSc in Economics from the London School of Economics

and an MBA from the London Business School.

William Antholis

Independent Director – Member of the Remuneration Committee

William Antholis is director and CEO of the Miller Center, a non-

partisan affiliate of the University of Virginia that specializes in

presidential scholarship, public policy and political history.

From 2004 to 2014, he was Managing Director of the Brookings

Institution. He has also served in government, including at the

White House National Security Council and National Economic

Council, and at the US State Department’s policy planning staff

and bureau of economic affairs.

He has published two books, as well as dozens of articles, book

chapters, and opinion pieces on US politics, US foreign policy,

international organizations, the G8, climate change and trade.

He earned his PhD from Yale University in politics (1993) and his BA

from the University of Virginia in government and foreign affairs

(1986).

Andreas Artemis

Independent Director – Member of the Nomination Committee

Andreas Artemis is an executive member of the Board of Directors

of Commercial General Insurance Group since 1985 and Chairman

since 2002.

He is also member of the Board of Directors of the Cyprus

Employers and Industrialists Federation as well as of the Council of

the Cyprus Red Cross Society.

He has served as member of the Board of Directors of the Bank

of Cyprus Group (2000–2005), Vice Chairman (2005–2012) and

Chairman (2012–2013). He has also served on the Board of Directors

of the Cyprus Telecommunications Authority (1988–1994) and as

Honorary Consul General of South Africa in Cyprus (1996–2012).

He studied Civil Engineering at the Queen Mary and Imperial

colleges of the University of London and holds a BSc (Engineering)

and a MSc degree.

Harry David

Independent Director – Member of the Audit and Risk Committee

Harry David earned his BS from Providence College and began his

career as a certified investment advisor with Credit Suisse in New

York.

He then served in several executive positions within Leventis

Group Companies in Nigeria, Greece and Ireland.

Today he serves as the Chairman of Frigoglass S.A. and is on

the Boards of A.G. Leventis (Nigeria) PLC, the Nigerian Bottling

Company Ltd, Beta Glass (Nigeria) PLC, Frigoglass Industries

(Nigeria) Ltd, Ideal Group, Pikwik (Nigeria) Ltd (a joint venture with

Pick n Pay, South Africa) and ELVIDA Foods S.A.

He is a member of the TATE Modern’s Africa Acquisitions

Committee.

Has served on the Boards of Alpha Finance, Greece’s Public Power

Corporation and Emporiki Bank (Credit Agricole).

Leonidas Canellopoulos

Executive Director

Leonidas Canellopoulos is the Chief Sustainability Officer of TITAN

Group. He is also responsible for Group Corporate Affairs.

Since 2012, he has covered various roles within the Group’s Finance

and Strategic Planning functions and has served as Cement

Operations Director of the Group’s Greek Region.

Prior to that, he worked for Separation Technologies LLC.

He is a member of the BoD of Junior Achievement Greece.

He holds a BA in Economics with Honors from Harvard University

and an MBA from INSEAD, where he received the Henry Ford II Prize.

Alexandra Papalexopoulou

Executive Director

Alexandra Papalexopoulou is the Deputy Chair of the Group

Executive Committee, with direct oversight of Group Strategy and

Business Development, Trading, Legal and the Group’s operations

in the Eastern Mediterranean.

Her career began as an analyst for the Organization for Economic

Co-operation and Development (OECD) and later as an associate

at the consulting firm Booz, Allen & Hamilton in Paris in the 1990s.

Joining TITAN Group in 1992, she started out in trading,

subsequently moved to business development and then headed

Strategic Planning.

She is a Non-Executive Director of Coca-Cola HBC, a FTSE 100

company, a member of the Board and Treasurer of the Paul &

Alexandra Canellopoulos Foundation, and serves on the Board of

Trustees of INSEAD Business School.

She holds a BA in Economics from Swarthmore College, USA, and

an MBA from INSEAD, France.

Corporate Governance

and Risk Management

Management

Report

Stelios Triantafyllides

Independent Director – Member of the Remuneration Committee

Stelios Triantafyllides has been working with and been a partner

of the Antis Triantafyllides & Sons LLC law firm since 1983. His

practice focuses on international business transactions, banking

and finance, capital markets, M&A and joint ventures, general

corporate and commercial, corporate restructuring, tax, financial

services and securities regulation. He is the legal adviser to the

Cyprus Securities and Exchange Commission. He regularly advises

major international companies on corporate and banking matters.

He is member of the Cyprus Bar Association (admitted 1984) and is

Chairman of the Committee for Private Companies and a member

of the Committee on the Cyprus Stock Exchange. From 2006 to

2012, he was a member of the Board of Directors of the Cyprus

Investment Promotion Agency (CIPA).

He studied at Worcester College, Oxford University (MA

(Jurisprudence) and the University of California, Berkeley (LLM).

Dimitris Tsitsiragos

Independent Director – Member of the Audit and Risk Committee

Dimitris Tsitsiragos has over 30 years of extensive international

experience in emerging markets finance across industries, sectors

and products.

He started his career in 1985 in New York as a corporate bond

evaluator at Interactive Data Services, Inc (former subsidiary of

Chase Manhattan Corporation). In 1989, he joined the International

Finance Corporation (IFC), a member of the World Bank Group

as an Analyst and retired in 2017 as Vice President, leading IFC’s

global business operations and stakeholder relations with a global

network of governments, financial institutions and private sector

clients. He also chaired IFC’s Corporate Credit Committee. During

his progressive career at the institution, he held the following

positions: Vice President, Europe, Central Asia, Middle East and

North Africa (EMENA) (2011-2014) based in Istanbul; Director of

Middle East, North Africa and Southern Europe (MENA) (2010-2011)

based in Cairo; Director of Global Manufacturing and Services

Department (2004-2010); Director of South Asia (2002-2004) based

in New Delhi; Manager, New Investments, Central & Eastern

Europe (2001-2002); Manager Oil & Gas (2000-2001) and held a

number of investment positions in the same unit (1989-2001).

Currently Mr. Tsitsiragos is a Senior Advisor, Emerging Markets at

the Pacific Investment Management Company (PIMCO). He also sits

on the Board of Alpha Bank (Greece) as an independent director.

He holds an MBA from the George Washington University and a BA

in Economics from the Rutgers University. He has also attended

the World Bank Group Executive Development Program at Harvard

Business School.

Maria Vassalou

Independent Director – Member of the Nomination Committee

Maria Vassalou is the Chief Investment Officer at Vassalou

Capital Management. She has more than 14 years of investment

experience.

Prior to founding Vassalou Capital Management, she was a Partner

and Portfolio Manager at Perella Weinberg Partners, responsible

for the PWP Global Macro Business. She joined Perella Weinberg

Partners from MIO Partners, a subsidiary of McKinsey & Company,

where as a Portfolio Manager she managed a similar global macro

investment strategy in a dedicated legal entity, and as Head of

Asset Allocation she provided counsel on allocation for liquid

assets within MIO’s portfolio.

Prior to joining MIO, she was a Global Macro Portfolio Manager

at SAC Capital Advisors LP. She joined SAC from Soros Fund

Management, where she was responsible for global quantitative

research, as well as the development and management of global

quantitative trading strategies.

She began her career in academia and she was an Associate

Professor of Finance at Columbia Business School, which she

joined in 1995. She is a Past President of the European Finance

Association and was the Chair of the 2008 European Finance

Association meetings. A Research Affiliate of the Centre for

Economic Policy Research (CEPR) in London for many years, she

is a past member of the Academic Advisory Board of the Vienna-

based Gutmann Center of Competence in Portfolio Management.

Since 2016, she has been a member of the Board of Directors of

Tsakos Energy Navigation (NYSE: TNP).

She earned a BA in Economics from the University of Athens and

holds a PhD in Financial Economics from London Business School.

She is the recipient of several professional awards and she was

included in the 50 Leading Women in Hedge Funds in 2015.

Bill Zarkalis

Executive Director

Bill Zarkalis, in addition to his responsibilities as President and CEO

of Titan America LLC and Chairman of Separation Technologies

(STET) since 2014, has assumed the broader leadership role of

Group Chief Operating Officer (COO) and oversight of joint venture

Apodi in Brazil.

He is a business executive with an international career, having

led diverse global teams across all continents while located

mostly in the USA and Switzerland. He dedicated 18 years to Dow

Chemical Co., where he started in commercial posts, growing in

experience through a fast succession of marketing and product

management responsibilities, culminating into global business-

unit leadership roles. Among others, he served as Vice President of

Dow Automotive, M&A Leader for DuPont-Dow Elastomers, Global

Business Director for Specialty Plastics & Elastomers, and Global

Business Director for Synthetic Latex.

He joined TITAN in 2008 as Group Executive Director for Business

Development and Strategic Planning. In 2010 he became the TITAN

Group CFO, where he served until 2014 before moving into his

current role in Titan America.

He holds a BSc in Chemical Engineering from the National

Technical University of Athens and a MA from Pennsylvania State

University.

Mona Zulficar

Independent Director – Chairwoman of the Remuneration

Committee

Mona Zulficar is one of the founding partners of Zulficar &

Partners, a specialized law firm, which has become one of the best

ranked law firms in Egypt since it was established in June 2009.

She was previously senior partner at Shalakany Law Firm, serving

as the Chair of its Executive Committee for many years.

TITAN Cement Group

Integrated Annual Report 2020

She is recognized in local and international legal circles as a

precedent setter and one of Egypt’s most prominent corporate,

banking and project finance attorneys. As a M&A and capital

markets transactions specialist, she has led negotiations on

some of Egypt’s and the Middle East’s largest and most complex

successful transactions over the past three decades. She has

also played an instrumental role in modernizing and reforming

economic and banking laws and regulations as a former member

of the Board of the Central Bank of Egypt and as a prominent

member of national drafting committees. She is also a leading

human rights activist, recognized locally and internationally and

has initiated several successful campaigns for new legislation

including women’s rights, freedom of opinion and family courts.

She served as Vice President of the Constitutional Committee of

50 and played a key role in drafting the 2014 Egyptian Constitution,

and is currently member of the National Council for Human

Rights. She has served as Non-Executive Chairperson of EFG

Hermes since 2008. In 2015, she was elected President of the

Egyptian Microfinance Federation and has chaired several NGOs

active in providing social development and microfinance to poor

women. Internationally, she served as an elected member of the

international Advisory Committee of the United Nations Human

Rights Council for two terms, ending in 2011.

She holds a BSc in Economics and Political Science from Cairo

University and an LLM from Mansoura University as well as an

honorary PhD in law from the University of Zurich.

3.2 Role and competencies of the Board of Directors

The CG Charter, which is available on the Company’s website

https://www.titan-cement.com/wp-content/uploads/2021/01/

TCI-CG-Charter.pdf, defines the terms of reference of the Board

of Directors including its role, mission, composition, training and

evaluation.

3.3 Structure of the Board of Directors

As at 31 December 2020, the Board was composed of fourteen (14)

directors:

• The majority of directors, namely nine (9) out of fourteen (14),

including the Chairman, are non-executive directors.

• Eight (8) out of fourteen (14) directors, namely Kyriakos

Riris, William Antholis, Andreas Artemis, Harry David, Stelios

Triantafyllides, Dimitris Tsitsiragos, Maria Vassalou and Mona

Zulficar met on their appointment the independence criteria of

article 7:87 of the Belgian Companies and Association Code and

also those of Principle 3.5 of the Code.

• Five (5) out of the fourteen (14) Board members, namely Dimitri

Papalexopoulos, Michael Colakides, Leonidas Canellopoulos

Alexandra Papalexopoulou and Bill Zarkalis are executive

directors.

• Three (3) out of fourteen (14) directors are women. Due to the

fact that the Company’s primary listing on Euronext Brussels

took place in August 2019, the Company is required to comply

with the gender diversity rule of one-third provided in article

7:86 of the Belgian Companies and Associations Code, by 1

January 2026 at the latest. Nevertheless, the company intends to

comply with the above requirement before the end of the above

grace period.

• The directors represent four (4) different nationalities (US,

Egyptian, Cypriot and Greek).

• The Board meeting attendance at the six scheduled Board

meetings was 100%. There were also two unscheduled Board

meetings, in the first of which the attendance was 100%, while in

the second, where only non-executive directors had been invited

to participate together with the managing director and the Chair

of the Group Executive Committee, the attendance rate was 10

out of 11. The individual attendance of each Board member is

shown in the table included in Section 3.4 (“Functioning of the

Board of Directors”) below.

Currently, the Board consists of the following fourteen (14) directors:

Name Position Term started Term expires

Efstratios-Georgios (Takis) Arapoglou Chairman, Non-Executive Director May 2019 May 2022

Kyriacos Riris Vice Chairman, Independent Non-Executive Director October 2018 May 2021

Dimitri Papalexopoulos Executive Director May 2019 May 2022

Michael Colakides Managing Director May 2019 May 2022

William Antholis Independent Non-Executive Director May 2019 May 2022

Andreas Artemis Independent Non-Executive Director May 2019 May 2022

Haralambos (Harry) David Independent Non-Executive Director May 2019 May 2022

Leonidas Canellopoulos Executive Director May 2019 May 2022

Alexandra Papalexopoulou Executive Director May 2019 May 2022

Dimitrios Tsitsiragos Independent Non-Executive Director March 2020 May 2022

Stylianos (Stelios) Triantafyllides Independent Non-Executive Director October 2018 May 2021

Maria Vassalou Independent Non-Executive Director May 2019 May 2022

Bill Zarkalis Executive Director May 2019 May 2022

Mona Zulficar Independent Non-Executive Director May 2019 May 2022

Corporate Governance

and Risk Management

Management

Report

3.4 Functioning of the Board of Directors

During 2020 the Board of Directors held six (6) scheduled

meetings on March 19, April 9, May 13, July 29, November 11 and

December 16.

Two (2) unscheduled meetings were held on June 24 and July 21.

The following table shows the individual attendance of each Board

member at the meetings of the Board and its committees held in

2020:

3.5 Board evaluation

As provided in the Code, the Board should assess at least

every three years its own performance, its interaction with

the executive management, as well as its size, composition,

functioning and that of its committees.

After the completion of more than one year as listed Company

primarily on Euronext Brussels with secondary listings on the

Athens Exchange and Euronext Paris, the Board decided to carry

out a formal Board evaluation for the year 2020 without external

facilitation.

Each Board member received a questionnaire, in the form

of a survey link, ensuring the anonymity of each participant

and requesting feedback on how the Board functions, its

composition, effectiveness and operation, the role of the Chair

and the functioning of the Board committees. All Board members

responded to the questionnaire and the Board evaluation feedback

was presented and discussed at the first Board meeting of 2021.

At the end of each Board member’s term, the Nomination

Committee evaluates this Board member’s presence at the

Board or Committee meetings, his or her commitment and

constructive involvement in discussions and decision-making in

accordance with a pre-established and transparent procedure. The

Nomination Committee also assesses whether the contribution of

each Board member adapted to changing circumstances.

3.6 Code of Conduct – Conflicts of interest

A Code of Conduct has been drawn-up, setting out the

expectations for the Company’s leadership and employees in

terms of responsible and ethical behavior.

All Board members are expected to uphold the highest standards

of integrity and to always act in the best interest of the Company.

Each member of the Board undertakes, both during his or her

membership of the Board and afterwards, not to disclose to

anyone in any manner any confidential information relating to the

business of the Company or companies in which the Company has

an interest, unless he or she has a legal obligation to disclose such

information.

No member of the Board may use the information described above

to his or her own advantage.

Each member of the Board undertakes not to develop, either

directly or indirectly, during the term of his or her mandate, any

activities nor perform any actions that conflict with the activities

of the Company or its Subsidiaries.

All members of the Board are required to inform the Board of

conflicts of interests as they arise. In case a director has a direct

or indirect financial interest that conflicts with the interests of

the Company, he or she is required to inform the other directors

before the Board takes a decision and the Board is required to

implement the procedures set forth in articles 7:96 and 7:97 of the

Belgian Companies and Associations Code. Pursuant to the above

articles of BCCA, the following decisions were taken, without the

presence of any executive member of the Board:

1. Board decision dated 19.3.2020: Approval of variable

remuneration payout for Titan America and the Group.

On 19 March 2020 the board resolved on the variable remuneration

for Titan America and the Group. The conflict of interest is

related to the fact that the executive members of the Board are

potential beneficiaries of the variable remuneration. The executive

members withdrew from the meeting.

The non-executive members of the Board discussed the variable

remuneration payout for Titan America and the Group, based on

the recommendation from the Remuneration Committee. The total

Individual attendance of each Board member at the scheduled meetings of the Board

Administrateur Board of Directors

Meetings

Audit and Risk

Committee

Remuneration

Committee

Nomination

Committee

Efstratios-Georgios (Takis) Arapoglou 8/8 - - 4/4

Kyriacos Riris 8/8 5/5 - -

Dimitri Papalexopoulos 8/8 - - -

Michael Colakides 8/8 - - -

William Antholis 8/8 - 3/3 -

Andreas Artemis 8/8 - - 4/4

Harry David 8/8 5/5 - -

Leonidas Canellopoulos 7/8* - - -

Alexandra Papalexopoulou 7/8* - - -

Petros Sabatacakis 1/1 -/1 - -

Stelios Triantafyllides 8/8 - 3/3 -

Dimitris Tsitsiragos 8/8 4/5 - -

Maria Vassalou 8/8 - - 4/4

Bill Zarkalis 7/8* - - -

Mona Zulficar 7/8 - 3/3 -

* In the Board meeting of July 21, 2020 only the non-executive directors, the Managing Director and the Chairman of the Group Executive Committee were invited to participate.

TITAN Cement Group

Integrated Annual Report 2020

remuneration payout will be up to €800,000 in aggregate and is

justified by the fact that external factors in the US market outside

the local management control (e.g. hurricane impact, no availability

of fly ash) affected the achievement of targets set for 2019.

The board of directors (composed of the non-executive members

only) approved unanimously the variable remuneration payout for

Titan America and the Group as proposed by the Remuneration

Committee.

2. Board decision dated 9.4.2020:

Mrs. Mona Zulficar, Chair of the Remuneration Committee,

presented to the Board of Directors, the recommendations of the

Remuneration Committee on the following matters, namely:

a. To approve the variable remuneration payouts (bonuses) for

2019 of the executive members of the Board, the members of the

Management Committee and the members of the Group Executive

Committee, as included in the Remuneration Report for the year

2019, noting that the relevant variable remuneration payouts

which amount in total to €1,194,436 are paid in accordance with

the provisions of the 2019 Remuneration Policy and following the

appraisal of the performance of each executive director and the

achievement of personal and collective targets provided in the

Remuneration Policy; b. To approve the long-term incentive awards

to be granted in 2020 to the executive members of the Board,

the members of the Management Committee and the members

of the Group Executive Committee, noting that such long term

incentive awards amount in total to 195,160 shares, i.e. €2,010,000,

and are granted subject to the achievement of personal and

collective targets provided in the new Remuneration Policy that

will be submitted for approval in the AGM on 14 May 2020; and c.

To approve the proposed extension of the exercise period of the

stock options granted in 2014 and 2015, in the framework of the 2014

Restricted Stock Incentive Plan (RSIP), until December 2021 (instead

of December 2020) and until December 2022 (instead of December

2021) respectively, noting that the relevant extensions incur no

cost to the Company and are granted in order to ensure the fair

treatment of all stock option beneficiaries.

The conflict of interest is related to the fact that the executive

members of the Board are potential beneficiaries of the variable

remuneration payouts for 2020, the long-term incentive awards

of 2020 and the extension of the exercise period of stock options

mentioned above.

3. Board Decision dated 21.7.2020: Group Organizational Changes

During the Board of Directors of 21 July 2020 Group organizational

changes were decided. Executive Board members were asked not

to attend the meeting as they are associated with most of the

proposed changes and the non-executive Board members should

be free to comment without any pressure. Mr. Michael Colakides,

Managing Director and Mr. Dimitri Papalexopoulos, who under

his capacity as Chairman of the Group Executive Committee

was asked to join the Chairman in presenting the proposed

organizational changes, withdrew from the meeting before any

decision was taken. The following organizational changes were

decided, effective as of October 1, 2020 regarding the composition

of the Group Executive Committee: Dimitri Papalexopoulos,

Chairman; Alexandra Papalexopoulou, Deputy Chair; Michael

Colakides, Group CFO and Managing Director of TCI; Bill Zarkalis,

Group COO; Yanni Paniaras, Group Executive Director Europe and

Sustainability; Fokion Tasoulas, Group Innovation and Technology

Director; Christos Panagopoulos, Regional Director Eastern Med;

Antonis Kyrkos, Group Transformation and Strategic Planning

Director; John Kollas, Group Human Resources Director; Leonidas

Canellopoulos, Chief Sustainability Officer. The decisions had no

direct financial consequences for the Company and the Group.

4. Board decision dated 11.11.2020: Remuneration of the promoted

executives following the Group Organizational Changes decision

taken by the Board of Directors on 21.7.2020

The executive members of the Board of Directors withdrew from

the meeting because they declared that they had a possible conflict

of interest, related to the fact that they are potential beneficiaries of

the remuneration packages and severance schemes that have been

submitted for approval. On recommendations of the Remuneration

Committee following decisions were taken:

a. To approve the proposed changes in the Remuneration packages

of the promoted Executive Directors, members of the Group

Executive Committee and other executives, noting that, as

regards the executive members of the Board of Directors, the

relevant changes are in line with the Remuneration Policy and

the variable compensation will be paid subject to appraisal of the

performance of each executive director and the achievement

of personal and collective targets. The additional financial

consequences for the Company, should the targets of the

executive board members be achieved, will not exceed €380,000;

b. To approve the revision of the severance schemes provided to

the members of the Group Executive Committee, noting that,

as regards the executive members of the Board who are also

members of the Group Executive Committee, the changes are

in line with the Remuneration Policy and the additional financial

consequences for the Company, with respect of the revision of

the severance schemes for the executive board members and

the conditional severance scheme set out below, will not exceed

€1,600,000; and

c. To approve the provision of a conditional severance scheme to

one executive director, noting that such conditional severance

scheme will not exceed 18 months’ remuneration as provided in

the 2020 Remuneration Policy.

The Board has set (a) a Policy for transactions and other

contractual relationships between the Company or Group

Subsidiaries and Members of the Board or the Management

Committee or the Group Executive Committee or other

designated persons and (b) a Dealing Code, which is addressed

to the Company’s directors, managers and officers, as well as

to Group’s directors, managers, officers and employees who are

in possession of inside information (within the meaning of the

Regulation (EU) No 596/2014 on market abuse).

Both the Policy for Transactions and the Dealing Code are included

(as Appendix 2 and Appendix 8, respectively) in the Company’s CG

Charter which is available on the Company’s website (https://www.

titan-cement.com/) at the link: https://www.titan-cement.com/

wp-content/uploads/2021/01/TCI-CG-Charter.pdf.

4. Composition and Operation

of Board Committees

4.1 Audit and Risk Committee

4.1.1 Composition, Role and Functioning

Chair: Kyriacos Riris, independent director

Members: Harry David, independent director

Dimitris Tsitsiragos, independent director

Corporate Governance

and Risk Management

Management

Report

Notwithstanding the relevant expertise of the other members

of the Committee, the Committee’s Chairman, Mr. Riris, has the

necessary expertise with regard to accountancy and auditing.

The Audit and Risk Committee performs all duties set out in

article 7:99 of the Belgian Companies and Associations Code and

is entrusted with the development of a long-term audit program

encompassing all activities of the Company, including:

a. Monitoring the financial reporting process;

b. Monitoring the effectiveness of the Company’s internal control

and risk management systems;

c. Monitoring the internal audit and its effectiveness;

d. Monitoring the statutory audit of the annual and consolidated

financial statements, including any follow-up on any questions

and recommendations made by the External Auditor;

e. Reviewing and monitoring of the independence of the External

Auditor, in particular regarding the provision of additional

services to the Company.

The Audit and Risk Committee held five meetings in 2020: on

March 19, April 9, May 13, July 29 and November 10.

The discussions and decisions of the Audit and Risk Committee

meeting of March 19, 2020 included the approval of the condensed

financial statements for the year ended December 31, 2019 and

the press release for the fourth quarter and year end results, the

presentation of the Audit plan of the external auditors (PwC), for the

year ended December 31, 2019, a separate meeting with the external

auditors without the presence of any member of the management

team, the amendment of the NAS policy and the inclusion in the

“pre-approved other services”, subject to approval by management,

of tax services, provided they do not have direct effect and they are

immaterial in relation to the financial statements and the approval

of NAS provided within the period and a meeting with the Head of

the Group’s Internal Audit, Risk and Compliance department during

which the Committee received a summary report and update of the

scope and work of the department during the last quarter of 2019.

The discussions and decisions of the Audit and Risk Committee

meeting of April 9, 2020 included the stand-alone financial

statements for the year ended December 31, 2019 of Titan

Cement International S.A., the Integrated Annual Report for

the year 2019, the Group liquidity and the loan covenants of the

Group, a presentation of the management for planned actions

and measures taken as a result of the COVID-19 pandemic, the

presentation of the external auditor’s report on the stand-

alone and group financial statements for the year 2019 (both

unqualified). Last, the Audit and Risk Committee, without the

presence of any member of the management team, approved the

variable compensation (bonus) for the year 2019 of the Head of

the Audit, Risk and Compliance department and her long-term

incentive awards (stock-options) for the year 2020.

The discussions and decisions of the Audit and Risk Committee

meeting of May 13, 2020 included the approval of the unaudited

financial statements of the first quarter ended March 31, 2020

and the press release for the same period, the approval of NAS

provided in Q1 (following management’s approval) and the

discussion with the Head of the Group’s Internal Audit, Risk and

Compliance department of the Internal Audit plan for the year

2020 and the findings of the period.

The discussions and decisions of the Audit and Risk Committee

meeting of July 29, 2020 included the approval of the interim

condensed financial statements of the half year 2020 and the

half year 2020 press release, the approval of NAS provided in Q2

(following management’s approval), a discussion with the External

Auditors (PwC) on their findings after the completion of their 2019

audit and the discussion with the Head of the Group’s Internal

Audit, Risk and Compliance department, without the presence of

any member of the management team, of the implementation of

the Internal Audit plan during Q2, the findings of this period, the

compliance and anti-fraud activities performed and other matters.

Finally, the discussions and decisions of the Audit and Risk

Committee meeting of November 10, 2020 included the approval

of the unaudited financial statements of the Q3 2020 and the

9 months press release, the approval of NAS provided in Q3

(following management’s approval), the presentation of the

Audit Plan for the year ending December 31, 2020 by the External

Auditors (PwC) and the discussion with the Head of the Group’s

Internal Audit, Risk and Compliance department, without the

presence of any member of the management team, of the

implementation of the Internal Audit plan during Q3, the findings

of this period, the compliance and anti-fraud activities performed,

the Q4 Group Internal audit plan and other matters.

External Auditor

The audit of the Company’s financial statements was entrusted,

by virtue of the Extraordinary General Meeting resolution dated 13

May 2019, to SCRL PriceWaterhouseCoopers, with registered office

located at 1932 Sint-Stevens-Woluwe, Woluwedal, 18, represented

by Mr. Marc Daelman, for a term of three years, ending on the date

of the Annual General Meeting to be held in 2022 related to the

approval of the annual accounts of the year ending on December

31, 2021.

The responsibilities and powers of the External Auditor are set

by law.

The Audit and Risk Committee monitors and assesses the

effectiveness, independence and objectivity of the external

auditor having regard to the:

•

content, quality and insights on key external auditor plans and

reports;

• engagement with the external auditor during committee

meetings;

• robustness of the external auditor in handling key accounting

principles; and

• provision of non-audit services.

The yearly 2020 audit fees for the statutory accounts of Titan

Cement International S.A. (TCI) were set at €109,000.

Patras cement plant, Greece

TITAN Cement Group

Integrated Annual Report 2020

The audit fees for statutory audit and TCI's subsidiaries and

affiliates in 2020 amount to €1,207,861 (€1,222,182 in 2019).

Non-audit fees (for TCI, subsidiaries and affiliates) paid or accrued

in 2020 amount to €334,637 (€390,530 in 2019) and include:

• Audit related fees (assurance services for TCI, subsidiaries and

affiliates) €298,596 (€244,049 in 2019); and

• Tax advisory, other advisory and compliance services €36,041

(€146,481 in 2019).

The rules governing the composition, tasks and method of

functioning of the Audit and Risk Committee are laid down in

Appendix 3 of the Company’s CG Charter (“Terms of Reference

of the Audit and Risk Committee”), which is available on the

Company’s website (https://www.titan-cement.com/) at the link:

https://www.titan-cement.com/wp-content/uploads/2021/01/TCI-

CG-Charter.pdf.

4.2 Remuneration Committee

Chair: Mona Zulficar, independent director

Members: William Antholis, independent director

Stelios Triantafyllides, independent director

The Remuneration Committee has the duties set out in article

7:100 of the Belgian Companies and Associations Code, including,

to prepare and assess proposals for the Board:

a. with regard to the Company’s remuneration policy and

the remuneration of directors, members of the Company’s

Management Committee and members of the Group Executive

Committee, as well as on the arrangements concerning early

termination;

b. with regard to the annual review of the executive

management’s performance; and

c. with regard to the realization of the Company’s strategy against

performance measures and targets.

The Remuneration Committee held three meetings in 2020 (on

March 19, April 3 and October 19, 2020).

The main topics of the meeting of the Remuneration Committee

held on March 19, 2020 referred to recommendations of the

Committee on:

a. The Remuneration Report for the year 2019;

b. The new Remuneration Policy of the Company (the 2020

Remuneration Policy), which was thereafter submitted to the

AGM;

c. The new Long-Term Incentive Plan (LTIP 2020) which was

thereafter included in the 2020 Remuneration Policy.

The main topics of the meeting of the Remuneration Committee

held on April 3, 2020 referred to recommendations of the

Committee on:

a. the variable remuneration payouts for 2019 of the executive

members of the Board, the members of the Management

Committee and the members of the Group Executive

Committee;

b. the long-term incentive awards to be granted in 2020;

c. the vesting of the stock options granted in 2017 in the

framework of the RSIP 2017; and

d. the extension of the exercise period of stock options granted

in 2014 and 2015 for one year, namely until December 2021 and

2022.

The main topics of the meeting of the Remuneration Committee

held on October 19, 2020 referred to recommendations of the

Committee on:

a. the remuneration of promoted executive directors, members of

the Group Executive Committee and other executives following

the Group Organizational changes decided by the Board on July 21,

2020;

b. the severance payment of retiring or departing members of the

Management Committee and the Group Executive Committee;

c. the review of the severance schemes of the members of the

Group Executive Committee; and

d. the special severance scheme of one executive director.

The rules governing the composition, tasks and method of

functioning of the Remuneration Committee are laid down in

Appendix 5 of the Company’s CG Charter (“Terms of Reference of the

Remuneration Committee”), which is available on the Company’s

website (https://www.titan-cement.com/) at the link: https://www.

titan-cement.com/wp-content/uploads/2021/01/TCI-CG-Charter.pdf.

4.3 Nomination Committee

Chair: Efstratios-Georgios (Takis) Arapoglou, non-executive

director

Members: Maria Vassalou, independent director

Andreas Artemis, independent director

The role of the Nomination Committee is to make

recommendations to the Board with regard to the appointment

of directors, the Managing Director of the Company and other

members of the Management Committee and the Group Executive

Committee as well as their orderly succession.

The main duties of the Nomination Committee include:

a. the nomination of candidates for any vacant directorships, for

approval by the Board;

b. the preparation of proposals for reappointments;

c. the periodical assessment of the size and composition of the

Board and making recommendations for any changes; and

d. ensuring that sufficient and regular attention is paid to the

succession of executives, talent development and promotion of

diversity in leadership positions.

The Nomination Committee meets at least once a year and

whenever a meeting is deemed necessary and advisable for its

proper functioning.

During 2020, the Nomination Committee held four meetings:

The first meeting took place on February 25, 2020 with main

agenda the presentation of Mr. Dimitris Tsitsiragos as potential

new independent Board candidate and ensuring that

Mr. Tsitsiragos fulfils the independence criteria provided in the

2020 CG Code.

The second meeting took place on March 18, 2020 with first

item on the agenda to meet in person Mr. Tsitsiragos, who was

thereafter unanimously recommended to be co-opted by the

Board in place of Mr. Takis-Panagiotis Canellopoulos, subject to

Corporate Governance

and Risk Management

Management

Report

the approval by the AGM. The other items on the agenda included

a presentation on the management succession planning and on

leadership diversity promotion.

The third meeting took place on September 28, 2020 with only

item the presentation of Mr. Yanni Paniaras as new executive

Board candidate subject to election by the AGM in 2021.

The fourth meeting was held on December 8, 2020 and the agenda

was to get prepared for the 2021 AGM and to timely set committee

priorities.

The rules governing the composition, tasks and method of

functioning of the Nomination Committee, as well as the procedure

to be followed by the latter for the appointment and reappointment

of Board members, are laid down in Appendix 4 of the Company’s

CG Charter (“Terms of Reference of the Nomination Committee”),

which is available on the Company’s website (https://www.titan-

cement.com/) at the link: https://www.titan-cement.com/wp-

content/uploads/2021/01/TCI-CG-Charter.pdf.

4.4 Group Executive Committee

Chair: Dimitri Papalexopoulos

Deputy Chair: Alexandra Papalexopoulou

Members: Michael Colakides, Managing Director and Group

CFO

Bill Zarkalis, Group Chief Operating Officer; CEO of

Titan America; Chairman of STET

Yanni Paniaras, Group Executive Director Europe

and Sustainability

Fokion Tasoulas, Group Innovation and Technology

Director

Christos Panagopoulos, Regional Director East Med

Antonis Kyrkos, Group Transformation and Strategic

Planning Director

John Kollas, Human Resources Director

Leonidas Canellopoulos, Chief Sustainability Officer

The role of the Group Executive Committee is to facilitate

the supervision of the Group operations, the cooperation and

coordination between the Company’s subsidiaries and the

monitoring of the Group management performance and ensuring

the implementation of decisions and related accountability.

Τhe Group Executive Committee held 18 meetings during 2020.

A variety of coordination topics were covered, including strategy,

quarterly results, Group budget, H&S reviews, sustainability

reviews, progress of key projects (CO₂, digitilization), etc.

The rules governing the composition, tasks and method of

functioning of the Group Executive Committee, as well as the

code of conduct, are laid down in Appendix 7 of the Company’s CG

Charter (“Terms of Reference of the Group Executive Committee”),

which is available on the Company’s website (https://www.titan-

cement.com/) at the link: https://www.titan-cement.com/wp-

content/uploads/2021/01/TCI-CG-Charter.pdf.

4.5 Management Committee

Chair: Michael Colakides, Managing Director

Members: Grigoris Dikaios, Company CFO

Konstantinos Derdemezis, Regional Business Director

Christos Panagopoulos, Regional Business Director

The main role and the main duties of the Management Committee

are to implement and monitor the company strategy, to prepare

and present to the Board the financial statements of the Company

in accordance with the applicable accounting standards and

policies of the Company, to prepare the Company’s required

disclosure of the financial statements and other material financial

and non-financial information, to manage and assess the internal

control systems of the Company and to support the Managing

Director in the day-to-day management of the Company and with

the performance of his other duties.

The Management Committee meets whenever a meeting is

required for its proper functioning.

The rules governing the composition, tasks and method of

functioning of the Management Committee, as well as the code of

conduct, are laid down in Appendix 6 of the Company’s CG Charter

(“Terms of Reference of the Management Committee”), which is

available on the Company’s website (https://www.titan-cement.

com/) at the link: https://www.titan-cement.com/wp-content/

uploads/2021/01/TCI-CG-Charter.pdf.

Member of the Management Committee until 1 October 2020

5. Diversity and Inclusion

TITAN is committed to offering equal opportunities and

encourages diversity and inclusion at every level of employment

in the Company. Diverse and inclusive workplace has been

recognized as a material issue for the Group. Diversity includes

more than gender, age, nationality, disability, ethnic origin, sexual

orientation, culture, education and professional background.

At Group level, particular attention is given to monitoring the

implementation of our Human Rights Policy, part of which

refers to the promotion of diversity and to ensuring consistent

improvement of diversity across the organization. Improving the

gender mix at all levels is always an area of focus. Likewise, we

focus on inclusion and on creating a working environment that

maximizes the potential of all employees.

Currently, the number of women on the Board is 3 out of 14 and

therefore the Company, as already mentioned above in paragraph

3.3, deviates from the rule provided in article 7:86 of the Belgian

Code on Companies and Associations according to which at least

one third of the members of the Board should be different gender

than the other members. However, as mentioned in paragraph

3.3, given that the Company’s primary listing on Euronext Brussels

was concluded in 2019, the Company is not obliged to comply with

the gender diversity rule before 1

January 2026. Nevertheless, the

Company intends to comply with this rule before the end of the

above grace period and is actively monitoring the addition of two

women, one in 2022 and one in 2025.

The Board has also promoted diversity in the composition of

the Board Committees, by appointing a woman as Chair of the

Remuneration Committee and another woman as a member of

the Nomination Committee.

TITAN monitors gender diversity in management at both Group

and local levels (see ESG Performance statements, table 2.3

Social Performance Index).

In 2019 an assessment of Group policies was conducted by Group

Human Resources Department to define priorities and future

targets accordingly. Our Group Code of Conduct, Human Rights

and CSR policies were updated to incorporate clearer references

to diversity and inclusion.

TITAN Cement Group

Integrated Annual Report 2020

Diversity on Board level has also been promoted through a balanced

mixture of academic and professional skills. More specifically, the

Board includes directors coming from the banking and insurance

sector, the corporate/business sector and the legal and audit

services sector. As far as residence is concerned, six Board members

have their permanent residence in Cyprus, three in the USA, three in

Greece, one in Egypt and one in the United Kingdom.

The Group focuses on fostering diversity and inclusion awareness

through workshops, training and development programs in the

various regions.

The results of diversity promotion in 2020 are published in the ESG

Performance review & statements, table 2.3 Social Performance

Index.

6. Internal Audit and Risk Management

in the Scope of the Financial Reporting

Process

The key elements of the system of internal controls utilized in

order to avoid errors in the preparation of the financial statements

and to provide reliable financial information are the following:

The assurance mechanism regarding the integrity of the Group’s

financial statements consists of a combination of the embedded

risk management processes, the applied financial control

activities, the relevant information technology utilized, and the

financial information prepared, communicated and monitored.

Each month the Group’s subsidiaries submit financial and non-

financial data to the Group’s consolidation department and

provide explanatory information where necessary.

In consolidating the financial results and statements, the Group

utilizes specialized consolidation software and specialized

software for reconciling intercompany transactions. These

tools come with built-in control mechanisms and have been

parametrized in accordance with the Group’s needs. Finally,

the above tools use best practices regarding the consolidation

process, which the Group has to a very large extent adopted.

The Group’s management reviews on a monthly basis the

consolidated financial statements and the Group’s Management

Information (MI) – both sets of information being prepared

in accordance with IFRS and in a manner that facilitates their

understanding.

The monthly monitoring of the financial statements and Group MI

and their analysis by the relevant departments are key elements

of the controlling mechanism regarding the quality and integrity of

financial results.

The Group’s external auditors review the mid-year financial

statements of the Group and its material subsidiaries and audit

their full-year financial statements. Moreover, they audit the full-

year financial statements of the Company. In addition, the Group’s

external auditors inform the Audit and Risk Committee about the

outcome of their reviews and audits.

The Audit and Risk Committee, during its quarterly meetings prior

to the financial reporting, is informed by the Managing Director

and Group CFO and also by the other competent officers of the

Company and the Group about the performance of the Group,

monitors the consolidated accounts and the financial reporting

process and reports accordingly to the Board. The Audit and Risk

Committee monitors the financial reporting process and the

effectiveness of the Group’s and the Company’s internal control

and risk management systems.

The approval of the financial statements (Company and

Consolidated) by the Board is made after the relevant

recommendation of the Audit and Risk Committee.

7. Internal Audit

The internal audit is carried out by the Group Internal Audit

function. As of January 2020, the function assumed a broader role,

taking over responsibility for risk and compliance, in addition to

internal audit.

Internal Audit is an independent department with its own written

regulation, reporting directly to the Audit and Risk Committee.

The Group Internal Audit workforce consists of 17 executives duly

trained and having appropriate experience to carry out their work.

Two (2) new hires were added early 2020.

Internal Audit’s primary role is to monitor the effectiveness of the

internal control environment. Internal Audit’s scope also includes:

• monitoring implementation and compliance with the Company’s

Internal Regulation, Code of Conduct, Articles of Association and

applicable laws in all jurisdictions in which the Group operates;

• providing consulting services (e.g. new procedures review, new

IT systems post-implementation reviews);

• undertaking special assignments (e.g. fraud investigations)

During the year the Audit and Risk Committee received in total

34 internal audit reports. Likewise, the Audit and Risk Committee

received all progress reports referring to the most important audit

findings in 2020.

As already mentioned in the section referring to the work and

function of the Audit and Risk Committee, in all meetings held

by the Audit and Risk Committee, the Head of the Group Internal

Audit Risk & Compliance participated. The Head of the Group

Internal Audit Risk & Compliance had a number of meetings with

the Chairman of the Audit and Risk Committee pertaining to the

better preparation of the Audit and Risk Committee meetings with

regard to the Internal Audit.

Following relevant recommendation of the Audit and Risk

Committee, the Board of Directors approved the Internal Audit

plan for the year 2021 and specified the functions and areas on

which internal audit should primarily focus.

8. Remuneration report 2020

In accordance with the applicable provisions, this Remuneration

Report describes the remuneration paid on an individual basis

to the Members of the Board of Directors and the members of

the Management Committee, who are in charge of the daily

management.

8.1 Introduction

TITAN Cement Group delivered strong results in 2020, despite the

uncertainty caused by the COVID-19 pandemic. Group consolidated

Corporate Governance

and Risk Management

Management

Report

revenue at €1,607.0 million was stable compared to the previous

year. Earnings Before Interest, Tax, Depreciation and Amortization

(EBITDA) posted a solid increase of 7.1% to €286.2 million. This was

the highest EBITDA recorded since 2010. Net Profit after Taxes and

minorities (NPAT) dropped to €1.5 million (vs. €50.9 million in 2019)

as a result of significant non-cash charges taken representing the

full write-off of the €46.6 million goodwill of Titan Cement Egypt

and the derecognition of €17.3 million of accumulated deferred

tax assets, also in Egypt. Had these one-off charges not be taken,

NPAT would have been €65.4 million. The impact of the COVID-19

pandemic on our Group was clearly less severe than what was

initially expected. Overall construction activity escaped the full

brunt of the downturn, being allowed to continue as an essential

activity in most of our countries of operation.

Performance in 2020, was supported by resilient sales volumes

across most of our markets. In the US, sales were sustained at high

levels along all product lines. In Greece, demand showed further

recovery. In Southeastern Europe, performance was robust, while

Turkey posted strong domestic and export growth, while demand

also improved in Brazil. Performance in Egypt was disappointing

due to the ongoing challenges of that market. Pricing dynamics in

most of our markets benefited from resurgent levels of demand.

The favorable energy cost environment combined with successful

management of the Group’s cost base, enhanced profitability.

Trends in domestic sales volumes were positive across most

of our markets. Following the restrictions on activity in the

second quarter of the year, construction activity rebounded once

lockdown restrictions were eased, testifying to the underlying

resilience of market fundamentals across geographies. Group

cementitious materials’ sales increased by 1% compared to 2019,

reaching €17.1 million tons.

8.2 2020 Remuneration Policy

The 2020 Remuneration Policy was approved by the Annual

General Meeting of Shareholders that was held on 14 May 2020

and is aligned to a great extent with the implementation of the

European Shareholder Rights Directive II (“SRD II”).

The 2020 Remuneration Policy ensures that TITAN is remunerating

on the basis of the Company’s short and long-term business plan,

so as to continue creating value for customers, shareholders,

employees, societies and economies.

8.3 Target Pay Mix

The pie charts represent the fix/variable pay mix for the Executive

Directors and the members of the Management Committee (on

aggregate target average) in case of ‘on-target’ performance and

reflects the underlying pay-for-performance principles and

market-competitive reference of the Remuneration Policy.

The total amount of remuneration of the Executive Directors and

the members of the Management Committee is in line with the

Remuneration Policy adopted, linked to strategy, mechanisms

and relevant performance measures and contributes to the long-

term performance of the Company.

Main principles that govern the Remuneration Policy and contribute

to the Company’s business strategy and sustainability are:

• Establish a fair and appropriate level of fixed remuneration

aiming at attracting high caliber senior professionals who can

add value to the Company.

• Maintain a balanced approach between fixed and variable

remuneration, so as to avoid over relying on variable pay and

undue risk taking.

• Establish a balanced approach between short- and long-term

incentives, to ensure there is focus on short-term objectives

that will ultimately contribute to the creation of long-term

value creation.

• Alignment of executives to shareholder interests and long-

term value creation through long-term incentives where the

reward is linked to Company shares.

• Avoidance of undue risk taking by focusing on financial and

non-financial performance metrics in variable pay design.

29%

Board Executive Directors

(aggregate)

Short-Term Incentive

Plan (STIP)

Short-Term Incentive

Plan (STIP)

Long-Term

Incentive Plan (LTIP)

Long-Term

Incentive Plan (LTIP)

Fixed Remuneration

32%

26%

42%

Management Committee

(aggregate)

26%

45%

8.4 Labor Market

In setting the remuneration levels for the Managing Director,

as well as of the other Executive Directors and the members of

the Management Committee, the Remuneration Committee

gathers market insights from various relevant perspectives. These

reflect the relevant industries for the Company (e.g. Construction

Materials), the relevant geographies (e.g. Europe, and for specific

positions the US), and also take into consideration the size and the

scope of the Company and the respective positions.

The Remuneration Committee regularly reviews the Remuneration

Policy, in order to ensure continuous alignment with its principles,

as well as market trends and best practices. On an annual basis, the

Remuneration Committee recommends the levels of the annual

TITAN Cement Group

Integrated Annual Report 2020

remuneration of the executive directors and the members of the

Management Committee as well as of other Group executives on

the basis of their performance and responsibilities.

The Committee also recommends the levels of remuneration of

non-executive directors on the basis of their time commitment and

responsibilities.

In case of substantial changes, and at least every four years, the

Remuneration Policy is submitted for approval to the General

Meeting.

The level of remuneration for the Chairman of the Board of

Directors is decided by the General Meeting, following respective

recommendation of the Board of Directors and of the Remuneration

Committee. Likewise, the level of remuneration for the Managing

Director and the members of the Management Committee, is set

by the Board of Directors, following relevant recommendation

of the Remuneration Committee and in line with the applicable

Remuneration Policy.

8.5 New Deferred Compensation Plan

The DCP design is based on the principles set by the Remuneration

Committee in April 2019. As of 2021, the Company intends to

implement a Deferred Compensation Plan (“DCP 2021”) aiming at

further aligning the Senior Executives’ long term interests with

those of shareholders. Following relevant recommendation of the

Remuneration Committee, the Board decided the following:

The DCP will substitute of 20% of LTI of the eligible executives.

Payout will be linked to actual performance against set KPIs as

follows: 50% on Total Shareholders’ Return (TSR) of the Company’s

share vs the average TSR performance of the shares of a Peer Index

and 50% on a KPI linked to sustainability (net CO₂ emissions / ton of

cementitious material).

The peer group which formulates the index is the following (peer

group is set by the Board of Directors and may be changed, if

required):

1. Lafarge-Holcim 5. CRH

2. Heidelberg 6. Buzzi

3. Cemex 7. Argos

4. Cementir 8. Vicat

The performance period is three years. Flexibility is provided in ways

to receive vested benefit (e.g. cash, pension plan contributions).

Payout at threshold performance will be 40% with a maximum of

160% in case of overachievement (stretch) with linear calculation of

payout between the levels of achievement.

Ιn addition, the 2020 LTIP (Stock Grant) and two Restricted

Stock Option plans (RSIP 2014 and RSIP 2017), are still under

implementation.

Corporate Governance

and Risk Management

Management

Report

8.6 Variable pay schemes

Short-Term Incentive Scheme and Long-Term Incentive Plan awards are treated in accordance with the rules of the relevant plans.

Element of

Remuneration

Overview

Short-Term

Incentive

Scheme (STIP)

Target payout:

• Executive Directors of the Board and the Management Committee: up to 100% of Annual Base Salary

Maximum:

• In case of overachievement, the collective part of the STI is capped at 130% of target, the individual part

at 150% (in case of extraordinary performance) and the safety part at 200%

Performance Criteria:

• Financial Performance (up to 45%): EBITDA

• Individual Performance (up to 55%): combination of objectives and behaviors

• Safety (5%): Lost Time Injury Frequency Rate

Long-Term

Incentive

Plan (LTIP)

A new Long-Term Incentive plan (LTI) applied in 2020 in line with the approved 2020 Remuneration Policy.

Awards are granted to the plan participants in the form of a conditional grant of TCI shares. The individual

awards granted are based on each participant’s position, fixed salary, individual performance and potential

for development.

The LTI award granted to each participant is approved by the Board of Directors following relevant

recommendation by the Remuneration Committee.

The award has been defined up to 125% of Annual Base Salary for the Management Committee and the

Executive Directors of the Board.

The conditional grant of the number of TCI shares is determined based on the value of the TCI share at the

time of grant. The value of each “conditionally granted share” is equal to the average TCI share closing price

on Euronext Brussels during the last 7 trading days of March of the grant year.

The vesting schedule is 50% on year 3, 50% on year 4. Upon the completion of the vesting period, the

benefit of the employee is determined based on the value of TCI share at the time of vesting.

Upon vesting the Plan provides the flexibility to the eligible Executive, upon her/his request, to receive the

vested award as contribution to a company-provided pension plan investing mainly in TCI shares (Fund).

Participants are expected to maintain in TCI shares (or Fund(s)) at a minimum 20% of the total awards

vested during the last five (5) vesting years (rolling basis). TCI shares, as well as Fund(s) balance, already

owned by participants through previous LTI plans will be taken into consideration.

Special Trust Fund Plan (Fund)

Special Trust fund is a fund which invests in TCI shares. LTI participants may elect to receive their LTI

award as contributions in the Fund, and therefore their long term interests are still linked to TCI share.

Retirement

Allowance

Type of Plan:

Defined contribution plan

Maximum contribution: up to 10% of Annual Base Salary

Plan mechanism:

First tier: up to 8% of Annual Base Salary.

Second-tier: in addition to the 1st tier 8%, a further up to 2% is offered through matching the employee’s

contribution by a ratio of 1:2.

In the event Executives leave the Company prior to 5 years from the entry to the Program, any

contributions by the Company are lost.

No specific clauses and/or arrangements in relation to change in control are applicable. No variable remuneration claw back

mechanisms were used during FY2020.

TITAN Cement Group

Integrated Annual Report 2020

Executive Directors of the Board, Management Committee Remuneration packages as of January 1st, 2019

Name

Year

Annual

Base Salary

Board Fees

Allowances &

Other Benefits

Annual Variable

Compensation

Pension

Contribution

Long-Term

Incentives

(vested in

2020)

Total Annual

Compensation

Fixed

Compensation

Variable

Compensation

Year

Total Annual

Compensation

Board Executive Directors

Colakides Michael,

Managing Director

2020 417,900 50,000 34,317 390,166 41,790 141,017 1,075,190 51% 49% 2019 1,124,092

Papalexopoulos Dimitri,

Chairman of Group Executive

Committee

2020 506,250 30,000 14,482 547,126 50,400 232,936 1,381,193 44% 56% 2019 1,432,979

Papalexopoulou Alexandra,

Deputy Chair of Group

Executive Committee

2020 372,916 30,000 24,695 347,347 37,125 168,359 980,443 47% 53% 2019 909,587

Canellopoulos Leonidas 2020 156,887 30,000 10,506 69,677 9,368 6,607 283,046 73% 27% 2019 248,366

Canellopoulos Takis-Panagiotis* 2020 43,739 6,250 7,539 0 4,136 23,401 85,065 72% 28% 2019 308,000

Zarkalis Bill** (in €) 2020 571,531 30,000 232,593 522,024 46,040 158,824 1,561,012 56% 44% 2019 1,627,556

Management Committee Members

Dikaios Grigoris 2020 185,500 0 33,999 72,834 11,130 12,629 316,092 73% 27% 2019 306,617

Derdemezis Kostas*** 2020 222,742 0 33,582 171,265 21,505 165,591 614,685 45% 55% 2019 647,087

Panagopoulos Christos 2020 260,400 0 113,696 149,691 24,940 42,840 591,567 67% 33% 2019 581,835

8.9 Executive Directors’ and members of the Management Committee remuneration in 2020

* Amounts refer to period January 1st - March 31, 2020 during which T. Canellopoulos was Board Executive Director.

** Amounts include allowances linked to B. Zarkalis' international assignment in US and part of the Deferred 3-year assignment success bonus linked to 2020. Amounts, paid in $, are

converted into euro based on fx rate €/$ of 31/12/2020 for 2020 and on 31/12/2019 for 2019.

*** Amounts refer to period January 1st - October 31, 2020 during which K. Derdemezis was member of the Management Committee.

₁ Includes benefits and allowances: allowances (such as travel, housing, international assignment related allowance), life insurance, medical plan, company car.

² Cash payment.

³ Defined contribution.

8.8 Remuneration of Executive Directors and members of

the Management Committee in 2020

The remuneration of the Executive Directors and the members

of the Management Committee was approved by the Board

of Directors following relevant recommendation of the

Remuneration Committee and is in full compliance with the

2020 Remuneration Policy and thus contributes to the long-term

performance of the Company as set above in §8.3.

Given that the Company was established in 2019, the data

referring to the annual change in remuneration, expressed in full

time equivalents, of the Company’s employees other than the

directors, the members of the Management Committee and other

executives and the persons in charge of the daily management, are

presented jointly with respect to FY2019.

The annual change in the average remuneration, expressed in full time

equivalents, of the Company's employees other than the directors,

the members of the Management Committee, the other directors

and the persons in charge for the daily management for 2020 is

3% (or 85% including new recruitments added to the Company's

headcount in 2020). The ratio between the highest remuneration of

the management members and the lowest remuneration (in full time

equivalent) of the Company’s employees is 40 times.

8.7 Non-Executive Directors’ remuneration in 2020

As at 31.12.2020 the fees of the Non-Executive Directors for the year 2020, amounted to:

Non-Executive Director

Compensation by the Company

Board of Board Pro-bono

Efstratios-Georgios (Takis) Arapoglou €200,000 gross €15,000 gross No

Andreas Artemis €50,000 gross €10,000 gross No

William Antholis €50,000 gross €8,000 gross No

Harry David €50,000 gross €15,000 gross No

Kyriacos Riris €50,000 gross €20,000 gross No

Petros Sabatacakis* €10,417 gross €3,125 gross No

Stelios Triantafyllides €50,000 gross €8,000 gross No

Maria Vassalou €50,000 gross €10,000 gross No

Dimitris Tsitsiragos ** €39,483 gross €18,750 gross No

Mona Zulficar €50,000 gross €12,000 gross No

According to the 2020 Remuneration Policy,

non-executive directors do not receive

variable compensation linked to results

or other performance criteria. As a result,

non-executive directors are not entitled to

annual bonuses, stock options or performance

share units. Neither are they entitled to any

supplemental pension scheme.

Non-executive members of the Board are not

entitled to termination payment.

* Mr. Petros Sabatacakis was member of the Board of Directors until 19.3.2020

** Mr. Dimitris Tsitsiragos was elected as member of the Board of Directors on 19.3.2020

Corporate Governance

and Risk Management

Management

Report

Name

Specification

of plan

Grant Date

Vesting Date

of 2020 Grant

Expiry Date***

Number of

Stock

grants in 2020

Number of

Fund* units

grant in 2020

Number

of Options

forfeited in

2020

Number of

Options Vested

in 2020

Exercise Price

Number

of Options

Exercised in

2020

Michael Colakides,

Managing Director**

Long-Term

Incentive

April

2020

31/3/2024 N/A -

75,805

8,974

Dimitri Papalexopoulos,

Chairman, Group Executive

Committee

Long-Term

Incentive

April

2020

50% on

31/3/2023

50% on

31/3/2024

N/A 52,430

14,955

Alexandra Papalexopoulou,

Deputy Chair, Group Executive

Committee

Long-Term

Incentive

April

2020

50% on

31/3/2023

50% on

31/3/2024

N/A 41,270

9,573

Leonidas Canellopoulos,

Board Executive Director

Long-Term

Incentive

April

2020

50% on

31/3/2023

50% on

31/3/2024

N/A 5,340

901 €10 379

Takis-Panagiotis Canellopoulos

Board Executive Director

Long-Term

Incentive

- - - - - - -

- -

Bill Zarkalis,

Board Executive Director

Long-Term

Incentive

April

2020

50% on

31/3/2023

50% on

31/3/2024

N/A 52,430

11,966 €10 26,016

Grigoris Dikaios,

CFO**

Long-Term

Incentive

April

2020

31/3/2024 N/A -

5,900 - 840 - 0

Konstantinos Derdemezis

Regional Business Director

Long-Term

Incentive

- - - -

0 28,270 - €10 4,191

Christos Panagopoulos,

Regional Business Director**

Long-Term

Incentive

April

2020

31/3/2024 N/A -

23,598 - 2,993 €10 2,956

* Fund invests in TCI shares.

** Management Committee members' 2020 LTI amount received as units of Fund which invest mainly in TCI shares.

*** 2020 Grant refers to Stock Grant and therefore expiry date is not applicable.

¹Up to March 31, 2020.

²Up to October 31, 2020.

8.10 Share-based Remuneration (for 2020)

8.11 2020 performance criteria and outcomes | Short-Term

Incentives

Following relevant recommendation by the Remuneration

Committee, the Board determines the most relevant

performance criteria for the short-term incentive plan. These

KPIs provide the framework for incentive schemes throughout

the Company. Additionally, the Board sets challenging, but

realistic target levels for each of those performance criteria.

The emphasis for 2020 was on financial metrics reflecting a focus on

profitability and securing strong liquidity, in line with the Company's

strategy to balance growth and profitability. These performance

criteria are an important measure of the success of the execution of

the Company’s strategy and, as such, the remuneration is directly

linked to long-term value creation by the Company.

The target levels are set in the first quarter of the year. During

2020 because of limited visibility caused by the pandemic, 2020

targets were set in July 2020 based on prevailing visibility at the

time. The market was not impacted to the extent forecasted

when the targets were set, and the Group supported by a strong

performance of almost all regions (East Med being a relative

exception) performed better than expected. As a result the

Board decided to pay accordingly for the overachievement linked

to collective targets. The final assessment is determined at the

end of the fiscal year, based on the audited financial results. Any

potential payout under the short-term incentive plan occurs

annually during the first semester of the next financial year.

A minimum level of performance must be achieved before any

payment under the plan will be made. Payout is capped for

stretch performance.

The final assessment of performance under the short-term

incentive plan is done by the Remuneration Committee, which

in turn makes the necessary proposal to the Board for decision

making.

In 2020, EBITDA at Group level were above target resulting in

a 127.5% in respective part of variable pay. It is noted that due

to the peculiarities linked to the COVID-19 crisis, the financial

metrics set for 2020 are linked 100% to EBITDA.

The Remuneration Committee considered the overall

performance and concluded to award the variable pay as above

for 2020.

TITAN Cement Group

Integrated Annual Report 2020

8.12 2020 performance criteria and outcomes | Long-Term

Incentives

As already mentioned, two Restricted Stock Option plans (the

RSIP2014 and the RSIP2017) are currently under implementation:

The 2014 Stock Options Plan (approved by the AGM of

TITAN Cement Company S.A. of 2014)

According to this three-year Plan, the Board of Directors was

entitled to grant up to 1,000,000 stock options at a sale price

equal to €10.00 per share. Beneficiaries of the 2014 Stock Option

Plan are executive directors, directors holding senior positions at

Group or Regional or Country level in companies of TITAN Group,

and a limited number of employees, standing out on a continuous

basis for their good performance, having a high potential for

advancement.

The vesting period of the stock options granted in 2014, 2015 and

2016 was three years. As a result, the granted options matured in

December 2016, December 2017 and December 2018 respectively,

provided that the beneficiaries were still employees of the

Group. After the completion of the three-year vesting period, the

Board of Directors, based on the following criteria, decided the

final number of options that the beneficiaries had the right to

exercise:

α. by 50%, based on the average three-year Return on Average

Capital Employed (ROACE) compared to the target of each

three-year period; and

b. by 50%, based on the overall performance of the Company's

TSR compared to the average overall performance of a

predefined international cement peer group:

1. Lafarge-Holcim 5. CRH

2. Heidelberg 6. Buzzi

3. Cemex (in US$) 7. Argos (in US$)

4. Cementir 8. Vicat

The Plan’s beneficiaries are entitled to exercise their stock

option rights, either in whole or in part, within the first five

working days of each month, paying the Company the relevant

amounts until the expiration date of their stock options, i.e. until

December of the third year after vesting of the stock options.

Based on the Board of Directors decision dated April 9, 2020 due

to COVID-19 market conditions, it has been approved for the

expiration date for the grant of 2014 to be extended for one year

to December 2021 and for the grant of 2015 to December 2022.

The 2017 Stock Options Plan (approved by the AGM of

TITAN Cement Company S.A. of 2017)

According to this three-year Plan, the Board of Directors is

entitled to grant up to 1,000,000 stock options at a sale price

equal to €10.00 per share. Beneficiaries of this Plan are the

executive directors, directors holding senior positions at Group

or Regional or Country level in companies of TITAN Group, and

a limited number of employees, standing out on a continuous

basis for their good performance, having a high potential for

advancement.

The vesting period of the stock options granted in 2017, 2018

and 2019 is three years. As a result, the granted stock options

mature in December 2019, December 2020 and December 2021

respectively, provided that the beneficiaries were still employees

of the Group. After the completion of the three-year vesting

period, the final option rights number which the beneficiaries

will be entitled to exercise, shall be determined by the Board of

Directors, within the first four months of 2020 (done), 2021 and

2022 respectively and shall depend:

a. by 50%, based on the average three-year Return on Average

Capital Employed (ROACE) compared to the target of each

three-year period; and

b. by 50%, based on the overall performance of the Company's

TSR compared to the average overall performance of a

predefined international cement producing companies peer

group:

1. Lafarge-Holcim 5. CRH

2. Heidelberg 6. Buzzi

3. Cemex (in US$) 7. Argos (in US$)

4. Cementir 8. Vicat

The Plan’s beneficiaries are entitled to exercise their stock

option rights, either in whole or in part, within the first five

working days of each month paying the Company the relevant

amounts until the expiration date of their stock options, i.e. until

December of the third year after these stock options have been

vested.

8.13 Executive Directors’ contracts

The employment contracts of the Managing Director of the

Company as well as of the other Executive Directors and the

members of the Management Committee are contracts of

indefinite duration.

In case of termination of the employment contract of the

Managing Director, the Executive Directors and the members of

the Management Committee, at the initiative of the Company,

severance payment, as provided in the 2020 Remuneration

Policy, cannot exceed 18 months’ remuneration.

For the payment of additional compensation in case of

retirement or early termination of employment, Board approval

is required following respective recommendation of the

Remuneration Committee.

Notice periods are according to statutory law provisions.

Mr. Konstantinos Derdemezis was member of the Management

Committee until October 2020. In alignment with the Company's

Remuneration Policy, severance payment of 12 months'

remuneration was offered to K. Derdemezis as a way for the

Group to express its appreciation for the loyalty, hard work and

flexibility during the last 23 years.

Mr. Takis-Panagiotis Canellopoulos was Executive member of

the Board till March 2020. Following this date, he continued his

employment with Titan Cement Company S.A. and therefore no

severance payment was paid in 2020.

Corporate Governance

and Risk Management

Management

Report

9. Information to be disclosed pursuant

to Article 34 of the Royal Decree of 14

November 2007

In accordance with Article 34 of the Belgian Royal Decree of 14

November 2007, the Company hereby discloses the following items:

9.1 Capital Structure – Transfer of Company Shares

As referred above, in Section 2.1, on 31 December 2020, the

Company’s share capital amounted to €1,159,347,807.86

represented by 82,447,868 shares, without nominal value, with

voting rights, each representing an equal share of the capital.

The shares of the Company are of the same class and are either

in registered or in dematerialized form. Holders of shares may

elect to have, at any time, their registered shares converted to

dematerialized shares, and vice versa.

The Company’s Articles of Association do not contain any

restriction on the transfer of the Company’s shares.

9.2 Restrictions on voting rights

Each Share of the Company corresponds to one vote at the

Shareholder’s Meeting.

Article 13 of the Company’s Articles of Association provides that in

the event shares are held by more than one owner, are pledged, or

if the rights attached to the shares are subject to joint ownership,

usufruct or any other kind of split-up of such rights, the Board of

Directors may suspend the exercise of such voting rights until a

sole representative of the relevant shares is appointed.

9.3 Shares conferring special control rights

None of the Company shares carries any special rights of control.

9.4 Agreements between Shareholders of the Company,

which are known to the Company and contain restrictions

on the transfer of shares or on the exercise of voting rights

It is known to the Company, following the transparency declaration

received on September 7, 2020 and changes in shares that did not

require a transparency declaration due to the fact that the 5%

threshold was not exceeded either upwards or downwards, that the

following shareholders, holding in total 29,416,847, corresponding

to 35.68% of the Company’s voting rights, are acting in concert:

Andreas Canellopoulos, Leonidas Canellopoulos, Nellos-Panagiotis

Canellopoulos, Pavlos Kanellopoulos, Takis-Panagiotis Canellopoulos,

Trust Neptune, Alexandra Papalexopoulou, Dimitri Papalexopoulos,

Eleni Papalexopoulou and E.D.Y.V.E.M. Public Company Ltd.

9.5 Control mechanism of any employee scheme where the

control rights are not exercised by the employees

There is no employee scheme with such a mechanism.

9.6 Amendment of the Company’s Articles of Association

Any amendment of the Company’s Articles of Association must

be approved by the Extraordinary Shareholders’ Meeting and at

least 50% of the share capital must be present or represented. If

such quorum is not met at the first Extraordinary Shareholders’

Meeting, a new Shareholders’ Meeting may be convened and shall

validly deliberate and resolve irrespective of the share capital

present or represented.

An amendment of the Company’s Articles of Association is adopted

if it has obtained three-quarters of the votes cast, whereby

abstentions are not taken into account either in the numerator or

in the denominator.

9.7 Rules governing the appointment and replacement of

Board Members

Pursuant to Article 17 of the Company’s Articles of Association, the

Company is managed by a Board of Directors that shall consist of

a minimum of three and a maximum of fifteen directors, who shall

be natural persons or legal entities, whether or not shareholders,

appointed by the Shareholders’ Meeting.

The directors are appointed for a maximum term of three years

and may be reappointed. Their mandate may be revoked at any

time by the Shareholders’ Meeting.

When a legal entity is appointed a director, it must specifically

appoint an individual as its permanent representative to carry

out the office of director in the name and on behalf of the legal

entity. The appointment and termination of the office of the

permanent representative is governed by the same disclosure

rules as if the permanent representative was exercising the

office on his/her own behalf.

Should any of the director’s mandates become vacant, for

whatever reason, the remaining directors may temporarily

fill such a vacancy. The next Shareholders’ Meeting must

confirm the mandate of the co-opted director; in case of

confirmation, the co-opted director finishes the mandate of his

or her predecessor, unless the Shareholders’ Meeting decides

otherwise. If there is no confirmation, the mandate of the

co-opted director expires immediately after the Shareholders’

Meeting, without prejudice to the validity of the composition of

the Board of Directors until that date.

As long as the Shareholders’ Meeting or the Board of Directors, for

whatever reason, does not fill such vacancy, the directors whose

mandate has expired remain in function if the Board of Directors

would otherwise no longer consist of the minimum number of

directors required by law or the Company’s Articles of Association.

9.8 Powers of the Board of Directors

The Board of Directors is vested with the power to perform all acts

that are necessary or useful for the realization of the Company’s

purpose, except for those which the law or the Company’s Articles

of Association reserve to another corporate body.

The powers of the Board of Directors are further detailed in

the Company’s Articles of Association and in the Company’s CG

Charter, which are both available on the Company’s website

(https://www.titan-cement.com/) at the link: https://www.titan-

cement.com/about-us/corporate-governance/.

9.9 Power of the Board of Directors to issue and buy-back

9.9.1

The Board of Directors, pursuant to article 6 of the

Company’s Articles of Associations and the relevant resolution of

the Shareholders’ Meeting of 13 May 2019, may increase the share

capital of the Company in one or several times by a (cumulated)

amount of maximum €1,106,211,679.40. The Board of Directors can

exercise this power for a period of five (5) years as from the date

of publication of the Annexes to the Belgian State Gazette of the

completion of the condition precedent of the amendment to the

Company’s Articles of Association approved by the Extraordinary

TITAN Cement Group

Integrated Annual Report 2020

Shareholders’ Meeting of 13 May 2019. This authorization may be

renewed in accordance with the relevant legal provisions.

9.9.2 Pursuant to Article 15 of the Company’s Articles of

Association, the Company may, without any prior authorization

of the Shareholders’ Meeting, in accordance with articles 7:215ff

of the Belgian Companies and Associations Code and within

the limits set out in these provisions, acquire, on or outside a

regulated market, its own shares, which correspond to maximum

20% of the issued shares, for a price which will respect the legal

requirements, but which will in any case not be more than 20%

below the lowest closing price in the last thirty trading days

preceding the transaction and not more than 20% above the

highest closing price in the last thirty trading days preceding the

transaction. This authorization is valid for five years from the date

of the publication of the completion of the condition precedent of

the amendment to the Company's Articles of Association approved

by the Extraordinary Shareholders' Meeting of 13 May 2019.

This authorization covers the acquisition on or outside a regulated

market by a direct subsidiary within the meaning and the limits

set out in article 7:221ff of the Belgian Companies and Associations

Code. If the acquisition is made by a direct subsidiary, the

dividends attached to the shares held by the subsidiary go to the

subsidiary.

The Board of Directors is authorized, subject to compliance with

the provisions of the Belgian Companies and Associations Code,

to acquire for the Company's account the Company's own shares

if such acquisition is necessary to avoid serious and imminent

harm to the Company. Such authorization is valid for three years

as from the date of publication of the completion of the condition

precedent of the amendment of the Company's Articles of

Association, approved by the Extraordinary Shareholders’ Meeting

of 13 May 2019, in the Annexes to the Belgian State Gazette.

The Board of Directors is authorized to divest itself of part of or

all the company’s shares at any time and at a price it determines,

on or outside the stock market or in the framework of its

remuneration policy to personnel or directors of the company or

to prevent any serious and imminent harm to the Company. The

authorization covers the divestment of the Company's shares by

a direct subsidiary within the meaning of the Belgian Companies

and Associations Code. The authorization is valid without any time

restriction, irrespective of whether the divestment is to prevent

any serious and imminent harm for the Company or not.

9.10 Important agreements which come into effect, are

amended or terminated in the event of change of control

of the Company, following a public tender offer

The Company has not entered into agreements, which come into

effect, are amended or terminated in the event of a change of

control of the Company, solely following a public tender offer.

It should be noted, though, that the Company has entered

into, as it is common, in agreements with a “change of control”

clause, specifying the right of the lending bank to request the

early repayment of the loan or the exit of the counterparty from

a company of the Group, in the event of a change of control in

the Company. In particular, a Multicurrency Revolving Facility

Agreement up to the amount of €200 million has been entered

into among the Group’s subsidiary TITAN Global Finance PLC,

a syndicate of lending banks, the Company and TITAN Cement

Company S.A. as Guarantors.

9.11 Agreements between the Company and the Board

Members or employees providing for compensation if the

Board Members resign or are made redundant without

valid reason or if the employment of the employees ceases

because of a takeover bid

The Company has not entered into any agreement with members

of the Board of Directors or employees providing for the payment

of compensation upon their resignation or dismissal without

valid grounds or upon termination of their tenure or employment,

due to a public tender offer.

10. Shareholder Information and Services

The Board as a whole is responsible for ensuring that a

satisfactory and effective dialogue with shareholders. The

Investor Relations team, together with the Managing Director,

the CFO and other Group executives, regularly meet with

institutional investors and participate in investor roadshows

and industry conferences. The announcements of the annual

and the interim Group results are accompanied by webcasts and

conference calls with analysts and investors.

All the regulatory and non-regulatory announcements, as well as

all other information related to the Company are available on the

Company’s website: www.titan-cement.com.

10.1 Investor Relations Department

The Investor Relations Department is responsible for monitoring

Company relations with its shareholders and investors, and for

communicating with the investor community on an equal footing,

in a transparent and timely manner concerning the Company’s

performance. The aim is to generate long-term relationship with

the investment community and retain the high level of trust that

investors have in the Group.

Investor Relations: ir@titan-cement.com

Investor Relations Director: Afroditi Sylla,

e-mail: syllaa@titancement.com

10.2 Shareholder Services Department

The Shareholder Services Department is responsible for providing

timely information to shareholders and for facilitating their

participation in General Meetings and to exercising their rights as

shareholders. The Department is also responding to correspondence

from shareholders on a wide range of issues.

Shareholder Services Manager: Nitsa Kalesi, e-mail: kalesin@titan.gr

10.3 Share Facts

10.3.1 Share Basic Data

Sector 5010 – Construction & Materials

Subsector 50101030 – Cement

Type Common share

Stock Exchange Euronext (Brussels & Paris), Athens Exchange

Number of shares 82,447,868

ISIN BE0974338700

CFI code ESVUFN

10.3.2 Tickers

Oasis Reuters Bloomberg

Euronext TITC TITC.BR TITC.BB

ATHEX TITC TITC.PA TITC.GA

Corporate Governance

and Risk Management

Management

Report

TITAN Group is active in a diverse geographical, business and

operational landscape, resulting in a multitude of potential risk

exposures, including strategic, sustainability (ESG), operational

and financial risks.

In order to effectively identify and mitigate such exposures,

the Group manages its risks in accordance with established

international practices for industrial companies, embedding

key dimensions of Enterprise Risk Management (ERM) into its

processes, systems, and governance. In particular, the following

five main components of the ERM framework supported by a set

of principles, provide the basis for the Group’s understanding and

management of risks associated with its strategy and business

objectives:

a. Governance and Culture, including oversight model, operating

structures, definition of desired cultural traits and commitment

to core values and development of appropriate talent;

b. Strategy and Objective-setting, including definition of risk

appetite, analysis of context, evaluation of options, and

formulation of strategic objectives;

c. Performance, including risk identification, assessment, and

prioritization, implementation of responses, and development of

risk portfolio view;

d. Review and Revision, including reviews of risk and performance,

assessment of changes, and continuous improvement of

approach;

e. Information, Communication, and Reporting, including

communication of risk information, use of IT, and reporting of

risk performance.

Risk Management process

TITAN's Risk Management approach includes management

practices to actively address risk, helping to safeguard the long-

term sustainability of its business. It comprises a management

system including strategy-setting, organization, governance,

policies, reporting, communications with stakeholders, and

measurement of performance across all units of the Group.

The Board has overall responsibility for determining the nature and

extent of the principal risks that the Group is willing to assume in

achieving its strategic objectives. Risks are addressed on a day-

to-day basis by the Group’s management at various levels in the

organization according to the nature of each risk. As a result, risks

are identified and quantified using multiple sources and are reported

in the course of the planning and performance management cycle of

the Group, ensuring a quick and effective response.

Complementing this risk management culture and approach that

is integral to the Group’s business processes and decision-making

(both strategic and operational), the Group undertakes on a regular

basis a systematic exercise to assess all material risks faced by

the Group that could affect its business model, performance,

solvency, or liquidity. This exercise was also performed in 2020

by a risk management committee consisting of senior managers

from the Group’s Strategic Planning, Legal and Internal Audit, Risk

and Compliance departments, which identified the Group’s main

risks and categorized them as “strategic”, “operational”, “ESG”, and

“financial” risks.

These were then assessed along the following three dimensions,

in line with industry best practices:

a. Probability: scale from 1 (Rare) to 5 (Almost certain)

b. Impact: scale from 1 (Incidental) to 5 (Extreme)

c. Preparedness: scale from 1 (Low) to 5 (High)

Risks were categorized using established risk taxonomies relevant

for the Group’s business (provided by consultants and external risk

experts). They were then assessed using a variety of techniques,

including the benchmarking of sector practices, enriched with

the advanced practices of other industries, the qualitative and

quantitative assessment of the risk elements, the evaluation

of possible outcomes against the Group’s strategic objectives,

the risk elaboration of the Group’s material issues (as defined in

the recent Materiality Assessment exercise), the evaluation of

risk ownership and the recording of mitigating actions that are

adopted or planned. The initial assessment was iterated with input

from key Group managers. The risks were then cross-referenced

with the final output of the Group’s materiality assessment

exercise and reviewed by the Group Executive Committee. Finally,

the Board validated the relevant risk assessment and monitored

TITAN’s risk management and internal control systems, reviewing

their effectiveness (covering all material controls, including

financial, operational, organizational, and compliance controls).

Risk Management governance

and controls

In TITAN Group, risk is managed at three levels, in line with

industry best practices.

Risks are managed on a day-to-day basis by the Group’s

management at various levels in the organization according to the

nature of each risk. TITAN’s risk governance framework follows

a customized approach that best addresses the particularities of

each risk area and ensures the optimum degree of risk ownership

and accountability for the appropriate mitigation actions. Frontline

management executes its risk management role in accordance

with policies and standards, monitors and mitigates risks as part

of performance management, and identifies and escalates risks as

required. This first level of management includes the integration

with key business processes (e.g. capital expenses review stage

gates, M&A review, strategic planning).

At a second level of risk governance and control, the central risk

team (i.e., the Internal Audit, Risk & Compliance unit) ensures

adherence to the ERM framework and internal policies and

monitors its systematic assessment by aggregating risk insight,

integrating input and analysis across the Group, and sharing

policies and recommendations across the organization.

At the senior level, the Board has the overall responsibility for

determining the nature and extent of the principal risks that the

Group is willing to assume in achieving its strategic objectives.

The Board, through all its Committees, discusses and assesses

on a regular basis the main areas of risk to which the Group is

exposed, identifies new risks, defines the risk appetite of the

Group and monitors the effectiveness of the risk management and

internal controls. The Board has delegated responsibility for the

monitoring of the effectiveness of the Group’s risk management

and internal control systems to the Audit and Risk Committee.

Risk Management

TITAN Cement Group

Integrated Annual Report 2020

In parallel, the Group Executive Committee provides strategic

direction, an independent view of risks among all operating units,

and coordination among them as needed.

According to this framework, strategic and financial risks are

managed mainly by the Group Executive Committee, Group

Finance, and the Capex Committee. The management of most

operational and sustainability risks is to a large extent embedded

into the daily operation and processes of the local business units.

A number of risks, including legal and compliance risks, as well as

operational and sustainability risks, including environmental risks,

risks regarding energy and fuel prices, availability and cost of raw

materials, safety at work, labor issues, brand, and reputation, are

managed both at Group level by the Group Executive Committee

and the competent Group functions (Internal Audit, Risk &

Compliance, Group Legal, Group Procurement, Group Corporate

Affairs, Group IT, Group Communication, Group HR) and also at

the local business unit level (BU Legal, Procurement, Corporate

Social Responsibility, HR units). This approach ensures that line

management owns all the operational and sustainability risks that

occur at the level of individual businesses and enables a strong

risk culture embedded in all relevant decision-making. At the same

time, all risks of higher magnitude that are relevant at Group level

are managed centrally, aggregating risk data points from multiple

sources across the organization, integrating insights, and crafting

mitigating action plans that can be shared among all appropriate

organizational levels.

The Group Executive Committee is also responsible for setting

Group policies and ensuring that they are implemented throughout

the Group. To that end, a set of Policies provide the necessary

framework and reference point for a number of risk areas. In

parallel, the ethics and compliance programs implemented

throughout TITAN’s operations ensure that the Group’s principles

and values are integrated into the day-to-day operations and the

risk management culture is reinforced across the Group.

The effectiveness of the systems and policies implemented at

Group and business unit level are systematically reviewed by the

Group Executive Committee and the business units’ management,

including for compliance with relevant standards of the Group.

Whenever weaknesses are identified, corrective measures are

taken.

Group Internal Audit, Risk, and Compliance reports on the

effectiveness of the risk management and internal control

frameworks to the Audit and Risk Committee on a regular basis.

The Board and the Audit and Risk Committee receive on a regular

basis management reports on the key risks to the business and

the steps taken to mitigate such risks and to consider whether the

significant risks faced by the Group are being properly identified,

evaluated and managed.

TITAN’s principal risks

Strategic risks

• Climate change mitigation and adaptation

The cement industry is potentially sensitive to ever more stringent

carbon regulations. For example, the Group’s operations in Greece

and Bulgaria are required to comply with an EU-wide cap and

trade emissions scheme, namely the European Trading Scheme

(ETS), under which industrial installations must report and

control their CO₂ emissions on an annual basis. This may result

in additional capital expenditure and reduced profitability due

to increases in operating costs; because of this, the Group may

face increased competition from cement producers operating

outside the EU, which do not incur ETS compliance costs. A mulled

Carbon Border Adjustment Mechanism (CBAM) to protect against

“carbon leakage” is still under design and may eventually prove

ineffective. Beyond operations in the EU, additional countries in

Titan’s footprint that do not face stringent carbon regulations

today could in the future adopt CO₂ pricing or other carbon

regulations, resulting in an uneven playing field if “carbon leakage”

is not adequately addressed (for example resulting in reduced

competitiveness of exports).

Moreover, the surging climate agenda may promote the use of

concrete substitutes for construction as more environmentally

friendly for end users.

Finally, the possible increase in the frequency of extreme natural

events (physical risks such as hurricanes, storm surges, flooding,

wildfires, etc.), potentially as a result of climate change, could

disrupt our asset base and production and/or distribution capacity.

The Group closely monitors relevant regulatory developments

and takes proactive measures to mitigate potential negative

consequences. A scenario-modelling approach has been adopted

for the examination of possible outcomes (transitional risks) and

the identification of appropriate roadmaps of mitigating actions

for the safeguarding of the Group’s business resilience. Such

measures include the reduction of the amount of clinker used in the

production of cement, the use of alternative fuels, energy efficiency

measures, the development of new products (including low-carbon

clinker), and continuous innovation across the value chain. Indeed,

the Group is engaging in research collaboration with the scientific

community on less carbon-intensive cements and concretes (e.g.

using cementitious materials and chemical additives) to develop and

promote the use of new “green” concretes and create a level playing

field versus other building materials.

With regards to the mitigation of the effects of possible physical

impacts on the Group’s assets from extreme natural events caused

by climate change, the company is implementing a set of proactive

protective measures for its assets and developing continuously

updated emergency plans. The Group also ensures adequate

insurance policies against physical damage or temporary loss of

business, as well as the ready availability of sufficient liquidity to

absorb any potential impacts.

• Industry cyclicality

The building materials industry is dependent on the level of

activity in the construction sector, which tends to be cyclical

and dependent on various factors, including, but not limited to,

the level of infrastructure spending, the demand for private and

commercial real estate, mortgage lending, local economic activity,

inflation, and interest rates. The Group’s business, operational

results, or financial condition could be adversely affected by a

continued deterioration of the global economic outlook or cyclical

weakness in the construction industry on a global scale or in a

significant market in which it operates.

• Market conditions

The Group operates both in mature markets, such as the USA and

Western Europe, and in emerging markets, such as Egypt, Turkey,

and Brazil. Some of these markets contribute significantly to

Corporate Governance

and Risk Management

Management

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the Group’s revenues and/or profitability. As a result, any future

deterioration in the global economic environment, or in any

particular market, that contributes significantly to the Group’s

revenues and profitability could have a material adverse effect

on the construction sector, and consequently, on the Group’s

business, operational results and financial condition.

• The concentration of a large proportion of the Group’s

business, operations, and assets in the USA

A large proportion of the Group’s business, operations, and assets

is concentrated in the USA, in particular in Virginia, Florida, North

and South Carolina, and New Jersey, and the Group’s operational

results are heavily dependent on the Group’s performance in

the USA. In addition, the Group’s financial performance in the

US market is heavily affected by fluctuations in the US dollar-

euro exchange rate, with a weakening of the dollar against

the euro having a significant negative effect on the Group’s

operational results on a consolidated level. Any decrease in

cement consumption, building activity, or public spending on

infrastructure in any of the US markets in which the Group

operates, or a combination of the above, or any depreciation of the

US dollar against the euro, could have a material adverse effect on

the Group’s operating performance, business and profitability.

• Political and economic uncertainty

The Group operates and may seek new opportunities in emerging

markets with differing and, at times, volatile economic, social

and political conditions. These conditions could include political

unrest, civil disturbance, currency devaluation, and other forms

of instability and may result in sudden changes to the operating

and regulatory environment. Changes in these conditions may

adversely affect the Group’s business, operational results, financial

performance and/or prospects.

The annual budgeting and strategic review process, along with

the regular monitoring of financial results and forecasts, helps

track political and economic events that may create uncertainties

regarding financial performance. Where political tensions are

heightened, mitigation measures are in place to provide maximum

protection of TITAN’s people and assets.

• Global systemic disruption including COVID-19

pandemic risk

Global-level disruptions can affect the Group’s operations in

diverse and largely unpredictable ways but have a common thread:

they would impact almost all our BUs/areas of operation (vs. more

localized impacts). Such events could have a multitude of sources,

for example:

• Climate, e.g. extreme weather events, environmental disasters;

• Societal, e.g. pandemics causing loss of demand due to economic

downturn and loss of production due to health crisis (including

COVID-19), crises of essential resources (food, water);

• Large scale conflicts, e.g. interstate conflicts, trade wars causing

disruptions in supply chains;

• Global data infrastructure, e.g. nationwide cyberattacks, global

information & communication infrastructure compromises

disrupting global and/or regional financial and trade systems.

To anticipate and mitigate the effects of such globally relevant

macro disruptions, the Group is engaging in risk assessments,

scenario evaluation, and contingency planning at strategic,

operational, and people (health & safety) levels. In addition,

disaster-control protocols to mitigate the effects of health and

safety-related crises are continuously updated, and financial

resilience measures to bolster the Group’s balance sheet and

insurance coverage are effected. On a strategic level, the Group’s

geographical diversification can provide a high degree of resilience

against the effects of more regional disruptions.

A particular focus on the potential risk assessment of COVID-19

(SARS-CoV-2) was placed in 2020, given the prevalence of

the global pandemic. The potential effects of the pandemic

assessed early in the course of the health crisis encompassed

dimensions such as the health and wellbeing of personnel,

disruptions in production capacity of our assets, the drop of

demand for the Group’s products in particular markets and supply

chain disruptions affecting the local and international flows of

materials and people. To address such potentially emerging risks

a contingency plan was developed, including COVID-specific

workplace health protocols and policies, review of production and

supply chain processes, safeguarding of critical supplies, dedicated

reporting to enhance the ability to detect potential impacts in

our markets, and a focused plan to bolster the financial health

and resilience of the Group. These measures, which successfully

addressed the relevant risks in 2020, are being continuously

evaluated and reviewed to enable the Group to adapt to the

evolving COVID pandemic.

Financial risks

The Group, due to the nature of its business and its geographical

positioning, is exposed to financial risks associated with foreign

currency, interest rates, liquidity, and leverage, as well as

counterparties. Financial risks are managed by Group Finance and

Treasury.

The Group does not engage in speculative transactions or

transactions which are not related to its commercial and

business activities.

• Foreign currency risks

Group exposure in foreign currency derives from existing or

expected cash flows and from acquisitions and/or investments

denominated in currencies other than the euro. The Group’s net

foreign currency transaction risk mainly arises from USD, EGP, RSD,

LEK, GBP, BRL, and TRY.

Natural hedges (equity invested in long-term fixed assets and

borrowings in the same currency as the activities that are being

financed), currency swaps, and forward foreign currency contracts

are used to manage currency exposures.

• Interest rate risks

The Group’s exposure to interest rate changes and increased

borrowing costs are managed through employing a mix of fixed-

and floating-rate debt and interest rate derivatives, where

appropriate. The ratio of fixed to floating rates of the Group’s

borrowings is decided on the basis of market conditions, Group

strategy, and financing requirements.

As at 31 December 2020, the Group’s ratio of fixed to floating

interest rates stood at 93%/7% (31 December 2019: 92%/8%).

TITAN Cement Group

Integrated Annual Report 2020

• Liquidity and leverage risks

In order to manage liquidity risks and to ensure the fulfilment of

its financial obligations, the Group maintains sufficient cash and

other liquid assets, as well as extensive committed credit lines

with several international banks, which complement its operating

cash flows.

The Group’s financial position allows it to have access to the

international financial markets and raise needed funds.

• Counterparty risks

Counterparty risk relating to financial institutions’ inability

to meet their obligations towards the Group deriving from

placements, investments, and derivatives, is mitigated by pre-

set limits on the degree of exposure to each individual financial

institution as well as by utilizing the collateral mechanism of credit

support agreements (ISDA CSA Agreement). As at 31 December

2020, the majority of Group liquidity was held with investment-

grade financial institutions with pre-agreed credit support

agreements.

The Group is also exposed to counterparty risks relating to

customer receivables. Customer receivables primarily derive from a

large, widespread customer base. The financial status of customers

is constantly monitored at the business unit level and, where it

is deemed necessary, additional security is requested to cover

credit exposure. As at 31 December 2020, all outstanding doubtful

receivables were adequately covered by relevant provisions.

Environmental, Social and Governance (ESG) Risks

• Health and safety

Cement production and the operation of quarries and ready-mix

facilities have inherent safety risks which could be influenced

by factors outside the Group’s control. Ensuring health and

safety and preventing accidents at work is a priority for TITAN.

Excellence in the area of health and safety is embedded in all

TITAN operations and activities. The Group has implemented

detailed policies and procedures promoting Health and Safety,

including the coverage by an adequate number of safety

engineers in all production units. Particular emphasis is placed

on training and raising safety awareness and on the strict

application of safety systems and processes.

TITAN’s Group Health and Safety Policy mandates assessment of

all incidents, proactive planning, the setting of specific targets,

safety training, and the monitoring of progress. Health monitoring

of employees is performed regularly.

In parallel with all the other preventive measures, TITAN’s

production and construction sites are regularly audited by the

Group’s safety specialists.

• Risks related to the environment

The Group’s operations are subject to extensive environmental

and safety laws and regulations in the USA, the EU, and elsewhere,

as interpreted by the relevant authorized agencies and the

courts. These may impose increasingly stringent obligations and

restrictions regarding, among other things, land use, remediation,

air emissions, waste and water, and occupational and community

health and safety. The costs of complying with these laws and

regulations are likely to increase over time. With a view to

continuously managing the environmental impact of its operations,

TITAN applies in all its plants management systems to monitor

and report their environmental impact. The Group’s Environment

Policy and environmental management provide targets for the

reduction of air emissions, the protection of biodiversity, water

and waste management, and quarry rehabilitation. In 2020, there

was one case of a significant fine related to non-compliance of

TITAN operations with environmental laws

In the USA,32,434 euros were paid by Titan Florida LLC for settlement of

violations issued to the Pennsuco cement facility in 2018 for infractions

concerning air emissions monitoring and reporting. Titan Florida LLC and in

specific Pennsuco has made changes to their internal reporting procedures

to avoid any such occurrences in the future.

• Human Resources, Diversity & Inclusion

Cement companies, including ΤΙΤΑΝ face a multitude of potential

risks related to their human resources and talent management.

Existing processes to recruit, develop and retain talented

individuals and promote their mobility may be inadequate, thus

potentially giving rise to risks of employee and management

attrition, difficulties in succession planning, and an inadequate

pipeline of future talent, potentially impeding the continued

realization of high operational performance and future growth.

Moreover, success in enforcing its Human Rights and Diversity

and Inclusion policies is increasingly crucial in determining how

the Group is perceived by key stakeholders, such as current

and prospective employees, consumers, and investors. Greater

diversity in the Group’s human capital increases the likelihood

of innovation that contributes to business growth, and higher

degrees of inclusion foster better employee engagement,

productivity, and company loyalty, resulting in higher talent

retention rates and overall employee engagement.

ΤΙΤΑΝ is actively pursuing a rich agenda of actions to develop

its talent management, including the updating and diffusion of

its relevant HR policies (such as its Human Rights and Diversity

& Inclusion policies) and people development processes.

Relevant measures pursued include employee surveys, focus

groups for feedback, training and capability-building programs,

adoption of Diversity & Inclusion global best practices, provision

of ubiquitous access to the TITAN Group reporting platform

EthicsPoint®, and the fostering of a continuous dialogue on

industrial relations with all relevant stakeholders.

• Regulatory compliance risk

The Group is subject to many local and international laws

and regulations, including those related to competition law,

corruption, and fraud, across many jurisdictions of operation and

is therefore exposed to changes to those laws and regulations

and to the outcome of investigations conducted by governmental,

international or other regulatory authorities. Potential breaches

of local and international laws and regulations in the areas of

competition law, corruption, and fraud, among others, could result

in the imposition of significant fines and/or sanctions for non-

compliance, and may inflict reputational damage. To address such

risks, all operations are continuously monitored by the Group Legal

and Group Internal Audit, Risk and Compliance departments and

appropriate training is conducted to ensure that the Group’s Code

of Conduct and relevant Group Policies are effectively adhered to.

Exposure to the risk of corruption is also systematically monitored

at local and Group levels, and relevant reports provided by

independent organizations such as Transparency International,

are examined. Following the publication of 2020 Transparency

Corporate Governance

and Risk Management

Management

Report

International Corruption Perception Index (see Table 5 in the

section “Management Report, ESG Performance Statements”),

the perception of corruption follows a negative trend for 50% and

a positive trend for 50% of the countries where TITAN currently

operates.

Operational Risks

• Production cost (including raw materials and energy)

Thermal and electrical energy and fuel costs, freight rates

or other transportation costs, and the cost of raw materials

constitute the most important elements of the Group’s cost

base. Increases or significant fluctuations in energy and fuel

costs, freight rates, or other transportation costs could adversely

affect the Group’s operational results, business, and financial

condition, especially if it is unable to pass along higher input

costs to its customers.

In order to reduce costs and also curtail its environmental

footprint, the Group is investing in low energy-requirement

equipment and in energy efficiency. Ensuring access to the

required quality and quantity of raw materials is an additional

priority, which is taken into account when planning a new

investment. With regard to existing facilities, care is taken to

secure the adequacy of the supply of raw materials during the

facilities’ entire lifetime.

The Group is investing in the use of alternative raw materials in

order to gradually limit its dependence on natural raw materials.

• Risks arising from various risks of business interruption,

including as a result of natural disasters

Beyond the risks associated with extreme natural events as a

potential consequence of climate change described above, the

Group is subject to stringent and evolving laws, regulations,

standards, and best practices with respect to the environment,

relating to, among other things, climate change, noise, air,

water, and soil emissions, as well as waste disposal. The costs of

complying with these laws and regulations are likely to increase.

With a view to the continuous improvement of the environmental

impact of its operations, TITAN applies in all its plants

management systems to monitor and report their environmental

impact.

• Cybersecurity risks

Cyberattacks may compromise the Group’s IT (Information

Technology) and OT (Operations Technology) systems, data, and

operations. There is a variety of potential threat actors (from

internal staff to full-scale shadow organizations), with a diverse

level of motivation, sophistication of attack systems, skills, and

resources. Attacks could range from incidental in a minor location

or domain, to a plant-specific event, company-wide attacks

and even attacks affecting the broader industry and its external

partners (suppliers, banks, customers).

Loss or corruption or leakage of data may be crucial for:

• sales, purchases, or financial transactions (incl. banking fraud)

• confidentiality and GDPR-related commitments

• operations (e.g., plant operational data used by control systems)

IT systems’ breakdown or corruption could require lengthy

remediation action, while OT systems breakdown or corruption

could cause operational disruption in our plants and loss of

production.

The Group is taking a variety of measures to address such

risks, including the analytical understanding of such threats

and the creation of detailed mitigation plans, the development

of cybersecurity policies and procedures (including the Group

Information Security Policy), the increase of underlying security of

critical IT and OT assets, the development of operational recovery

plans, and the implementation of monitoring and reporting

protocols on identified potential risks.

• Supply Chain Disruption

The integrity and profitability of the Group’s production and

customer-facing operations depend on its ability to safeguard

critical resources for the uninterrupted manufacturing of its

products. Scarcity of natural resources, such as water and

aggregates reserves, could have a materially adverse effect on the

Group’s costs and operational results.

Additionally, should existing suppliers cease operations or reduce

their production of key materials and production inputs, sourcing

costs for the Group could increase significantly or necessitate the

search for alternatives.

To mitigate such risks, the Group constantly evaluates its supply

chain resilience, develops strategic options for the provision of

its most critical supplies, and seeks to secure production inputs

through short and long-term contracts to ensure the necessary

quantity, quality, and availability of required products. It also

strives to secure long-term raw material reserves for its most

critical production inputs. Finally, by deploying a scenario-logic in

its planning processes, the Group is proactively developing flexible

and resilient sourcing strategies to withstand possible variability in

the supply markets.

TITAN Cement Group

Integrated Annual Report 2020

ESG

performance

review

An overview of our performance

on the environmental, social and

governance pillars, and our ESG

statements.

Management Report

ESG performance

review

TITAN’s ESG performance overview covers issues identified

and prioritized as material to our key stakeholders. Climate and

energy, occupational health and safety, people management and

development, environmental management, and sustainability of

communities remained at the top of the list of the Group material

issues. Governance, transparency, and business integrity are also

acknowledged among the material and relevant issues for TITAN

and its stakeholders. In the 2020 Management Report, the term

“non-financial” has been replaced by “ESG” as it is of broader

understanding and use by stakeholders and users of the annual

report. In addition, a section on TITAN’s response to the pandemic

has been added as it was among the Group’s top priorities during

the reporting year.

TITAN’s response to COVID-19

In 2020, safeguarding our people and Group operations against

COVID-19 was a top priority. In close cooperation with medical

specialists, guidelines were quickly prepared, and action plans

were implemented at all TITAN sites, engaging employees,

contractors, customers, and external service providers.

Following the emergence of the COVID-19 pandemic, TITAN’s

business units monitored and evaluated the situation

continuously. In all operations, risk assessment and contingency

plans were designed and enforced, local guidelines were drawn up,

hygiene measures were increased, and medical and psychological

support were provided by experts or through health care

programs. In addition, the Group transitioned swiftly to remote

working and virtual meetings by providing the necessary hardware

and being proactive in reducing or canceling travel and large

meetings and events. Additional protective measures were also

taken for people working on-site, such as reducing the number of

employees working physically at sites, rearranging shifts, providing

temperature scanning, increasing sanitization, facilitating

commuting by employees by providing additional buses,

promoting social distancing, and offering PCR testing. Changes

in the administration of the operations and transportation of

employees were customized according to each case.

In the US, under a new emergency sick and quarantine protocol,

Titan America provided sick pay to employees diagnosed with

COVID-19 and for colleagues who had to quarantine due to potential

exposure to the virus. In addition, the cost of COVID tests was

borne by the company’s medical plan insurer, which encouraged

ESG performance overview

employees to take the test and enabled effective contact tracing.

Together, these measures protected the workplace from the spread

of infections and prevented operational disruptions.

TITAN has so far managed to deal effectively with the waves of the

ongoing pandemic and, by open and intense communication with

employees, providing them with regular updates, information, and

guidelines. In addition, several business units gathered feedback

from employees on the effectiveness of the measures taken,

through pulse surveys and relevant initiatives. TITAN Turkey

was one of the first companies in the country to be awarded the

COVID-19 Safe Production Certificate by the Turkish Standards

Institute (TSI).

Furthermore, TITAN invested a significant amount of time and

resources in taking dedicated measures in order to minimize the

risk of potential supply chain disruptions, both for global and local

suppliers, while taking supporting actions aimed to help local

partners and contractors sustain their business during the crisis.

The response successfully mitigated all potential threats and

resulted in no delays in the supply of critical products and services

to individual business units.

Climate change

TITAN has long been committed to reducing its operational

carbon footprint worldwide and to contributing to the de-

carbonization of the construction value chain, thus actively

participating in the global collective effort toward a carbon-neutral

future. De-carbonization poses risks to the cement industry,

primarily through an uneven application of carbon pricing in

different regions of the world. At the same time, it also provides

opportunities for innovation and growth, as it requires a profound

reshaping of the energy and construction materials sectors.

TITAN is committed to the COP21 Paris global goal of keeping the

increase in global temperature well below 2°C, and preferably to

1.5°C, compared to pre-industrial levels, and to the UN Sustainable

Development Goals 2030. The Group also supports the European

Green Deal vision of carbon neutrality by 2050 and endorses the

Global Cement and Concrete Association (GCCA) 2050 Climate

Ambition, the cement industry’s joint effort that provides the

roadmap to achieve carbon neutrality.

Climate change mitigation indicators 2020 2019

Group level (cement operations)

Specific net Scope 1 CO₂ emissions

(kgCO₂/t cementitious product)

674 677*

Alternative fuel thermal substitution rate (%) 13.1 13.5*

Clinker-to-cement ratio (%) 82.4 82.9

*Note: figures slightly adjusted from last year’s disclosures based on updated

data

Since 2006, TITAN Group has set reduction targets to address

carbon emissions in line with the Kyoto Protocol. Building on the

CO₂ reduction already achieved, in 2020, the Group improved its

specific emissions (674kg CO₂ per ton of cementitious product),

recording a 13.4% reduction compared to 1990 levels. Despite

Management

Report

falling short of the 20% reduction target, mainly due to regulatory

and market conditions that influence product and fuel mix,

the Group remains determined to address the climate change

challenge and commits to achieve a level of 500kg CO₂ per ton

of cementitious product specific net Scope 1 CO₂ emissions by

2030. Scope 2 emissions were reduced by 5.4% (compared to 2019)

in 2020, bringing them to 58.8kg CO₂ per ton of cementitious

product. TITAN has already measured Scope 3 indirect emissions

at two of its plants in Greece and Serbia, identifying critical areas

of carbon emissions in the supply chain. In 2021, it will start to

monitor scope 3 emissions at all its cement plants.

In cooperation with local stakeholders, TITAN Group continued

to utilize technological advances, developed in-house or by its

partners, to maximize the use of available alternative fuels and

materials. Alternative fuel utilization slightly decreased, achieving a

total substitution rate of 13.1% on thermal basis compared to 13.5%

in 2019. Biomass use also remained unchanged, reaching a thermal

substitution rate of 3.8%. In 2020, the Group inaugurated a new

processing line for alternative fuels at the Pennsuco cement plant in

Florida and upgraded alternative fuels feeding installations in several

of its cement plants in Europe. The Thessaloniki cement plant in

Greece expanded its environmental permit to facilitate the use of

Solid Recovered Fuel/Refuse Derived Fuel (SRF/RDF) from municipal

solid waste (MSW), while in Bulgaria and the USA, the Group’s

plants installed equipment, which enables the utilization of natural

gas, thereby reducing their carbon footprint. Dried sewage sludge,

refinery sludge, tires, SRF/RDF, and agricultural waste were used to

substitute conventional solid fuels in several of the Group’s plants

in 2020. The Group recorded a slight decrease in its thermal basis

alternative fuels substitution rate, which reached 13.1% compared

to 13.5% in 2019. Two of the Group’s plants in Greece – Kamari and

Thessaloniki – and the Zlatna Panega plant in Bulgaria managed

to increase their use of alternative fuels and are leading examples

in the Group for the substitution of fossil fuels. In contrast, the

limited availability of suitable streams and the delays in obtaining

permits restricted the Group’s ability to make more extensive use

of alternative fuels in other regions. Similarly, and in collaboration

with its clients, the Group product portfolio was further developed

to include, as of 2020, significant volumes of low-carbon cements

and concrete, with a high content of limestone, fly ash and/or other

cementitious materials. In the USA, Type IL cement, which has a

higher limestone content, already has good market penetration,

while in TITAN Greece received all the necessary cement

certifications to facilitate this transition.

Addressing stakeholders’ increasing expectations for

environmental, social, and governance (ESG) disclosures, the Group

further advanced its climate-related disclosures. TITAN responded

for the first time to the CDP (formerly Carbon Disclosure Project)

climate change and water security questionnaires.

The Group’s plants in Greece and Bulgaria, where the EU Emissions

Trading Scheme (EU ETS) is in force, are entering Phase IV (2021-

2030) with a long position, which should last for at least five years

assuming there is no significant change in the EU ETS rules, thus

minimizing the Group’s financial exposure.

As energy management is closely connected to the sector’s

de-carbonization roadmap, TITAN is systematically monitoring

energy consumption and efficiency. Reduction of electrical

consumption was achieved over the last years with the installation

of advanced equipment, like low energy vertical roller mills, roller

presses, or motors with inverters. In the case of thermal energy,

the frequent inspections of equipment and timely maintenance

by plant teams, and the replacement or installation of new

energy-efficient equipment (e.g., grate coolers and 5-stage

preheaters, careful selection of fuels, use of mineralizers as

well as optimization of the operations) helps sustain this good

performance. In 2016, the Group made its first step in applying

energy efficiency management systems in its cement plants.

The Tokat cement plant in Turkey was the first to be certified

according to ISO 50001, followed by the Greek cement plants

and Roanoke cement plant in the US. TITAN Group continued on

the path of expanding the use of energy efficiency management

systems. In 2020, the Pennsuco cement plant in Florida successfully

completed the process and was granted its ISO 50001 certification.

Other TITAN facilities are currently working on the development

of such systems, aiming to obtain certification during 2021. The

Group’s clinker capacity covered with ISO 50001 represents 54.9 %

of its total clinker production, exceeding the target of 50.0% set for

2020.

Circular economy

The circular economy, according to which practices, such as

reuse, recycling, and recovery of materials and energy, replace the

practice of produce-consume-dispose, is crucial to reducing waste,

minimizing the need for primary raw materials and landfill while

contributing to combating climate change.

Recognizing the circular economy as fundamental for developing

a more sustainable business model, TITAN works on adopting

and integrating practices in alignment with its principles. Energy

efficiency, the conscious use of raw materials, the use of alternative

raw materials and fuels and the implementation of efficient waste

management systems are proven means of adding value throughout

the value chain as well as providing solutions at a local level.

In 2020, TITAN implemented programs to collect ready-mix

concrete waste and concrete returns for use as alternative

raw materials for clinker, cement, concrete and concrete block

production, and as aggregates for pavements and other uses.

ST Equipment & Technology (STET) in the USA, a wholly-owned

TITAN subsidiary, develops and supplies specialized processing

equipment for the beneficiation of fine particle materials, such

as fly ash, industrial minerals and organics. STET develops and

promotes the use of waterless, energy-efficient, and low-emission

technologies and has committed to the UN Global Compact to

replace water-intensive mineral processes.

Waste produced by the Group as part of its everyday activities is

collected, stored, and disposed of through authorized contractors

for reuse, recycling, or recovery, with the aim to promote higher

levels of waste management and to minimize landfill. The recycling

of concrete returns diverted from landfill increased by almost 15%. As

a result, the percentage of total waste produced that was collected,

stored, and channeled, through authorized contractors, for reuse,

recycling, or recovery increased to 82.6%, compared to 76.8% in 2019.

In 2020, the Pennsuco cement plant in the USA was recognized as

TITAN Cement Group

Integrated Annual Report 2020

the first cement plant in the world to be Total Resource Use and

Efficiency (TRUE) Platinum certified for zero waste.

The Group continued its efforts to increase the use of alternative

raw materials in clinker, cement, and concrete production

and developed new blended cement products to address the

current and future needs of its customers. The use of alternative

raw materials in the production of clinker and cement slightly

decreased in 2020 (6.4% of total consumption), mainly due to the

unavailability of such alternative sources in the countries and

markets where the Group operates as well as market demands,

and regulatory restrictions.

Environmental management

In line with the Group’s priority to continuously mitigate the

environmental impact of its operations and the increasingly

stringent restrictions imposed on land use, rehabilitation, air

emissions, waste management and water use, TITAN applies

in all its plants management systems to monitor and report

environmental impact against specific targets.

For more than 20 years, in line with its environmental policy, the

Group discloses measurable qualitative and quantitative targets

to monitor its progress. TITAN considers this a significant driver

for continuous improvement, strengthening both its operational

efficiency and its focus on sustainability. At the same time, TITAN

is engaged in a long-term process with experts and stakeholders,

seeking meaningful ways to understand society’s needs and

contribute to a net positive local impact for the communities in

which it operates. In 2020, a new online platform was launched

in Greece to make air emission data from TITAN’s cement plants

publicly available on a daily basis. Similar initiatives exist in other

regions in which the Group operates.

Over the years, TITAN has devoted considerable human resources

and invested heavily in incorporating Best Available Techniques

(BAT), reaching and sustaining an advanced environmental

performance level. The upgrade and modernization of all existing

or acquired plants with new bag filters, hybrid filters, de-NOx

equipment (SNCR), the installation of closed storage and the

feeding of alternative fuels, water recycling, and wastewater

treatment facilities, ensure that TITAN’s performance meets

existing and potential new regulatory requirements, as well as its

own targets, which are often more demanding.

TITAN Group is implementing environmental management

systems (EMS) across its operations, realizing solutions that

best fit local needs. All Group cement plants have an ISO 14001

environmental management system, except those located in the

USA, which have adopted a system that is aligned with local and

federal regulatory requirements.

Dust and other air emissions

Apart from greenhouse gas (GHG) emissions that have a global

effect, other air emissions and, primarily, dust are among the

issues identified as material by TITAN’s local stakeholders. In

recent years, the Group ran an extensive investment program to

install new or upgrade existing dusting equipment in the stacks

of kiln lines. TITAN has also invested heavily in technologies that

can reduce NOx emissions, like Selective Non-Catalytic Reduction

(SNCR) systems and low NOx burners, as well as flame reduction

and secondary firing, while applying best practices to abate SOx

emissions, where needed. In all TITAN facilities, continuous efforts

are made to ensure compliance with the limits stipulated in the

environmental permits as well as specific conditions set by the

local authorities.

Monitoring and reporting air emissions are part of the Group’s

effort to mitigate its impact on the environment. Aligning with

legal and sectoral requirements, TITAN monitors and reports

greenhouse gas emissions (CO₂), as well as dust, NOx, SOx, TOC,

HCl, HF, and NH₃ mostly through continuous emissions monitoring

systems. Minor emissions like PCDD/PCDF and heavy metals

are spot measured by accredited independent laboratories at a

frequency equal or higher than that mentioned in the permits. In

line with our commitments and permits, CO₂, dust, NOx, and SOx

emissions are covered by independent third-party verification.

The systematic monitoring of fugitive dust emissions safeguards

the health of employees and reduces the impact on nearby

areas. The Group ensures the proper maintenance and optimal

functioning of machinery and equipment and applies rigorous rules

on the transport of materials within its plant sites and beyond.

Furthermore, air emission dispersion studies, which consider

all local characteristics (atmospheric and geomorphological

conditions) and are conducted in collaboration with local

academics, ensure that the operation of plants does not have any

negative impact on adjacent areas.

The Group’s environmental performance in main air emissions is

presented in the table below:

Air emissions (g/t clinker) 2020 2019

Group level (cement operations)

Specific dust emissions 19.3 14.7

Specific NOx emissions 1,282 1,269

Specific SOx emissions 253 193

Group performance in NOx emissions remained at a level similar

to that of 2019, achieving the target set for 2020. Similarly,

the performance regarding dust emissions remained positive,

meeting the 2020 target, even though dust levels increased

compared to 2019 due to the normal efficiency cycle of the dust

collection systems. On the other hand, SOx emissions deteriorated

compared to 2019, falling slightly short of the relevant target due

to variations in the raw material sulfur content and changes in

operational conditions.

Biodiversity, quarry rehabilitation, and land stewardship

Recognizing the importance of the preservation of biodiversity

on our planet, TITAN takes particular care to mitigate the impact

of extraction of raw materials on biodiversity and ecosystems,

rehabilitation activities and biodiversity management are key areas

of focus for TITAN. The Group has established standard practices

for land stewardship, quarry rehabilitation, and biodiversity

management at sites of high biodiversity value, in line with the

respective GCCA guidelines.

In 2020, TITAN updated its biodiversity risk assessment for all

its sites. All Group cement plants and quarries were assessed for

their biodiversity status and value with the use of the Integrated

Biodiversity Assessment Tool (IBAT, https://ibat-alliance.org/). In

total, 14 plants and 70 quarries were assessed, and four sites, in

addition to the already known ten cases, were recognized as being

in proximity to (or part of) areas of high biodiversity value. Three

out of the new four sites are under the full management control of

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TITAN. The next step is the further evaluation of the local baseline

conditions at those sites in order to determine potential needs to

develop appropriate biodiversity management plans, in line with

the key principles of the GCCA Sustainability Guidelines for Quarry

Rehabilitation and Biodiversity Management.

TITAN’s approach to biodiversity and land stewardship involves

partnerships with international organizations, associations, and

global collaborations. In this respect, TITAN played a leading role

in the development of the GCCA policy document “A Commitment

to Biodiversity by the Cement and Concrete Industry,” which was

launched in early 2021. Furthermore, TITAN joined CSR Europe’s

Biodiversity and Industry Platform, which was launched in 2020 and

will continue its activities in 2021. The platform is a cross-sectoral,

business-led initiative that aims to demonstrate how companies

are driving the biodiversity agenda and to support companies in the

practical integration of biodiversity into decision-making processes.

TITAN’s ongoing efforts to mitigate the local impacts of the raw

material extraction process are reflected in the indicators presented

in the following table. The Group has added one more indicator

to reflect the progress and results of its rehabilitation activities at

all Group quarry sites. The indicator measures the percentage of

disturbed (impacted) land area that has been rehabilitated.

Local impact indicators 2020 2019

Active quarry sites with high biodiversity

value (number) 10* 10

Active quarry sites with biodiversity

management plans (number) 9* 9

Active quarry sites with biodiversity

management plans (percentage) 90%* 90%

Active quarry sites with quarry rehabilitation

plans (percentage) 88% 90%

Disturbed quarry land areas that have been

rehabilitated (percentage) 22.7% --

Active quarry sites with ISO 14001 or similar

(percentage) 79% 77%

* Note: figure reflects the known cases (10) of high biodiversity value, where

biodiversity management is applied or is planned to be implemented. The

four new sites (three of which under TITAN management control) that were

identified from the updated biodiversity risk assessment in 2020 will not be

included until further assessment of the biodiversity baseline conditions and

value on a local level is completed in 2021.

The percentage of active quarry sites with quarry rehabilitation

plans showed a minor decrease, due to the acquisition of a quarry

in North Macedonia, which does not yet have in place a plan that

meets TITAN’s standards. The process of developing rehabilitation

plans at the remaining quarries, which have mainly arisen from

the most recent acquisitions and the licensing of new areas in the

Southeastern Europe and Eastern Mediterranean regions, will be

completed in 2021.

The percentage of active quarry sites with biodiversity

management plans remained at the same level. Due to the

COVID-19 pandemic, it was impossible to complete all the field

investigations necessary for a complete biodiversity baseline

assessment at the Agrinio quarry in Greece, the only remaining

site of high biodiversity value (out of the ten sites known up

to 2020) that requires a biodiversity management plan. The

assessment and respective plan will be completed in 2021.

Water management

Effective water management in and around TITAN’s production

sites remains an important aspect of the company’s

environmental performance and sustainability goals in general.

Since 2010, the Group has developed and applied an Integrated

Water Management System (IWMS) at all its operations to

monitor and optimize water use and to report water data

consistently, according to the practices and guidelines of the

cement sector.

Water risk assessment constitutes a significant component of

TITAN’s sustainable management of water resources. In 2020,

the water risk assessment of all Group sites was completed using

the Aqueduct tool of the World Resources Institute (WRI) and

the Water Risk Filter of WWF. A total of 153 sites were assessed,

including 13 cement plants (and their attached quarries), two

cement grinding plants, 20 quarries for aggregates and industrial

minerals, and 118 ready-mix units. The results of this risk

assessment identified that 73% of the Group’s cement and cement

grinding plant sites, 65% of its quarries for aggregates and industrial

minerals, and 62% of its ready-mix concrete sites operate in

water-stressed areas. The results will be used to enhance company

practices for sustainable water management and to develop

specific water management plans for sites in water-stressed areas.

In 2020, the total water withdrawal and discharge quantities

at Group level increased by 3.8% and 4.9%, respectively, mainly

as a result of the increased production needs of Titan America.

However, the total water consumption quantity at Group level

remained unchanged.

The specific water consumption at the Group cement and cement

grinding plants and their attached quarries showed a slight

increase of 1.4% in 2020, but the company’s performance still

remained well within the 2020 target.

Impact on natural resources – Water 2020 2019

Group level (all operations)

Total water withdrawal, million m

41.3 39.8*

Total water discharge, million m

30.2 28.8

Total water consumption, million m

11.1 11.0*

Group level (cement operations)

Specific water consumption, lt/t cement 261 257*

Sites with a water recycling system (%) 92% 92%

Water recycled over water demand (%) 67.2% 66.5%*

Group level (aggregates operations)

Sites with a water recycling system (%) 86% 86%

*Note: figures slightly adjusted from last year’s disclosures based on updated data.

TITAN’s initiatives and investments in relevant facilities and

systems over the past two decades have resulted in a substantial

improvement in water management. As a result, the specific

water consumption at cement plants has significantly decreased,

with the Group accomplishing the 2020 target of 300lt per ton of

cement. with the Group accomplishing the 2020 target of 300lt

per ton of cement.

TITAN Cement Group

Integrated Annual Report 2020

Research and innovation activities

TITAN invests in research, development, and innovation, with

a primary focus on areas related to de-carbonization and digital

transformation.

In 2020, the Group continued to quickly adapt to the needs of

Industry 4.0, leading with an entrepreneurial spirit and sector-

wide innovation generated by TITAN employees. The Group Digital

Center of Competence was established to further strengthen

TITAN’s capacity to support roll-outs of digital and automation

projects. This further enhanced the digital transformation of

manufacturing operations, in which TITAN reached key milestones

related to the operation, analytical monitoring, and maintenance

of capital equipment.

In all regions where the Group is active, TITAN continued to

participate and contribute to innovation ecosystems that add value

to communities and stakeholders. The Group’s commitment to

scientific partnerships that contribute to the knowledge economy

and develop talent has laid the foundations for new strategic

collaborations in research and innovation that will commence

in 2021. In Europe, the Group remained fully involved in Horizon

2020 and national collaborative programs that foster research and

innovation. In 2020, TITAN was recognized as a Key Innovator by the

European Commission in its Innovation Radar for contributing to

the EU-funded research project RECODE. The project involves the

installation of a pilot unit at Kamari cement plant in Greece for the

capture of CO₂ and its conversion to value-added chemicals.

The Group’s first patent application to the World Intellectual

Property Organization (WIPO) was published in 2020. The

invention refers to a novel method to produce nanosized particles

of clinker (“nanoclinker”), which can be used to manufacture

added-value, high-performance construction products.

Health and safety

TITAN envisages a work environment that ensures the health

and safety of all employees, contractors, and cooperating third

parties. To this end, the Group is constantly increasing health and

safety awareness and strengthening its accident prevention and

health promotion systems in all its operations.

In Greece, Southeastern Europe, Turkey, and Egypt, 100% of the

cement plants and more than 88% of the ready-mix concrete

and aggregates plants are ISO 45001 or OHSAS 18001 certified. In

a small number of cases, the transition from OHSAS 18001 to ISO

45001 was delayed by the COVID-19 pandemic but is in line with

the extension given by the International Accreditation Forum

(IAF). In the USA, all TITAN activities conform to the requirements

of the relevant OHS organizations.

All cement plants and selected other activities are annually

audited by Group Health Safety and Environment (Group

HSE), and the ensuing recommendations are implemented by

management. In 2020, physical on-site presence was not possible

due to the constraints imposed by the pandemic. A technical

solution involving on-site cameras with online video and audio

streaming was implemented. The last two audits were conducted

in January 2021. Regional and business unit organizations also

conducted auditing activities in 2020.

Accidents and potentially significant near misses are investigated

using Root Cause Analysis or other tools, as appropriate, and the

conclusions are used to prevent recurrence.

Organized training activities were by necessity limited and the

average training hours decreased to 6.88 (14.1 in 2019) and 10.40

(12.34 in 2019) hours per employee and contractor, respectively.

However, the safety training program for the contractors of

the Greek cement plants, which had commenced in 2019, was

completed in 2020. In total, more than 950 persons were trained

by a suitably qualified external body, and approximately 97% of

them passed the examination and received certificates.

The Frequency of Lost Time Incidents (LTIFR) for own personnel

was reduced from 1.44 in 2019 to 0.57 LTIs per 1,000,000 worked

hours, which is the lowest value recorded since 2013. The LTIFR

for contractors increased slightly to 1.46 LTIs per 1,000,000

worked hours. Despite the efforts made, regrettably, there were

two contractor fatalities (one in Kosovo and one in Egypt) and one

employee fatality, in a driving accident, in the USA.

Group Health and Safety Department works together with Group

HR in the development and implementation of an integrated

approach to Health and Wellbeing across the Group, as explained

in the “People management and development” section below.

People management and development

The focus on human capital and corporate social responsibility

is one of TITAN’s four strategic priorities. The Group’s vision to

“ensure an engaged workforce, emotionally and mentally,” as

expressed in the TITAN People Management Framework, outlines

the company’s people management approach, which is supported

by numerous systems, policies, and programs. Safeguarding the

health and wellbeing of its people, equipping them with the skills,

competencies, and mindsets that they need to be successful in

a diverse and inclusive environment are among the Group’s key

priorities for its employees.

Employee engagement

Engaging with its employees is an on-going process for the Group,

incorporating feedback in structured and organized forms. Group

and country action plans were developed to address the results

of the 2019 Employee Engagement Survey. The action plans were

derived following in-depth analysis of the aggregated responses

to the survey questions, as well as a series of interviews and

deep dives in diverse employee focus groups. Most of the focus

groups were conducted after the outbreak of the pandemic,

thus ensuring that the Group action plan addressed the needs

that emerged both before and after the spread of COVID-19. As

a result, the initial four priority areas – Simplify and Accelerate,

Performance Management, Diversity and Inclusion, and

Communication – were enriched with two additional areas:

Wellbeing and Pride to be Part of TITAN. All countries performed

similar analyses and deep-dive focus groups with employees,

both face-to-face and virtual, and designed local action plans,

addressing local strengths and areas for improvement. The

outcomes of the Employee Engagement Survey also provided

feedback that was used in the materiality assessments at both

Group and business unit level.

Diversity and inclusion

In 2020, equality, diversity, and inclusion were identified among the

most relevant and important issues for key stakeholders in many of

the countries where the Group operates. Following the completion

of the 4th cycle of materiality assessment, diversity and inclusion

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was included in the material issues for 2020–2025. Accordingly, the

Group reviewed and updated the definitions given to these terms,

and held focus groups and interviews with employees and subject

matter experts to develop a comprehensive action plan to improve

diversity and inclusion across the Group. As a starting point, a team

of experts and managers focused on the review of the Group Code

of Conduct, as well as the Group Human Rights and CSR policies,

which were updated to incorporate a clearer reference to diversity

and inclusion. Finally, in the USA, unconscious bias education

was mandated for all people managers while two new Employee

Resource Groups were launched, one for TITAN USA’s Black and

African American community and one for the company’s LGBTQ+

community.

Group Wellbeing Framework and Employee Assistance

Programs

With the aim to continue building on TITAN’s Care Legacy and to

apply an integrated, holistic approach to Health and Wellbeing

across the Group, the TITAN Health and Wellbeing framework was

developed. The framework covers four dimensions of Health and

Wellbeing – physical, mental, social, and financial. With initiatives

linked to the four dimensions, each business implements various

actions to address local priorities.

To help enhance its people’s mental and emotional health and

wellbeing, TITAN extended the Employee Assistance Program

(EAP) to all countries. The EAP is a consulting support service

offered to all employees and their families, making available

expert advice on personal, family, or work-related issues. In

addition, many countries organized virtual events and talks on

emotional and mental health topics.

Employment and training

Employment at TITAN Group, as of the end of the year, remained

stable. Overall, the Group employee turnover rate decreased

slightly compared to 2019 (11.3% in 2020 vs. 12.3% in 2019), while

the share of women in employment remained stable. The share of

women in management increased to 16.5% in 2020 from 15.5% in

2019, which is mainly attributed to the respective increases in the

USA, Turkey, and Bulgaria. In 2020, 58.6%, or 3,144 employees, of

the Group were included in annual performance reviews, a figure

similar to the equivalent one in 2019.

Almost 86% of employees participated in targeted training

and development programs in 2020, an increase of above 3%

compared to the 2019 level (82.7%). However, training investment

and the total training person-hours recorded by local operations

decreased considerably, as did average training hours per

employee (14.8 in 2020 compared to 25.4 in 2019). This was a

result of the pandemic, which prevented the realization of most

classroom-based training programs. The majority of training

hours in 2020 recorded by business units was dedicated to

Health and Safety, Technical Know-How, Functional Competence,

and Compliance. Finally, online learning content was made

available to employees who do not have access to the Group HR

Management System. Online learning license activation increased

by over 20% since 2019, indicating that a growing number of

employees are taking advantage of the learning tools offered by

the company.

In 2020, TITAN’s commitment to supporting youth employment

continued, despite the impact of the pandemic, resulting in 251

internships, compared to 396 in 2019.

Finally, the percentage of unionized employees has remained

stable.

Sustainability of communities

TITAN’s operations have direct and indirect economic, social, and

environmental impacts on local communities. TITAN business

units seek to facilitate stakeholder dialogue and collaborative

actions through community engagement plans, with a focus on

the contribution to the sustainability of local communities.

The target set in 2015 to further align the company’s community

engagement plans to the material issues prioritized throughout

the Group was fully accomplished. In 2020, a structured approach

of recording initiatives and actions, and conducting a self-

assessment for each initiative was introduced in a dedicated

Group e-platform organizing our activities and collaborative

efforts that vary from country to country depending on

maturity and local priorities. The Group will remain focused on

strengthening its efforts to achieve authentic and distinctive

social engagement and on enhancing its positive impacts

through collaborative efforts and the empowerment of local

stakeholders. In 2020, the “For my Kosjeric” program, offered by

TITAN Cementara Kosjeric, in Serbia, was recognized by external

stakeholders as an example of best practice of empowering local

communities to meet their own objectives.

TITAN continued to address the need for transparent and open

communication with communities throughout the year. In

Greece, two new websites were launched to communicate the air

emission measurements on a daily basis and provide information

on co-processing (the simultaneous recycling of raw materials &

energy recovery) (https://coprocessing.titan.gr/). The interactive

sites allow visitors to submit specific questions regarding the

presented data. This transparent and reliable communication

method has contributed to sustaining and enhancing TITAN

Greece’s engagement with communities and key stakeholders.

In all Southeastern European countries and Egypt, TITAN

published annual reports focused on sustainability performance,

in line with international and sectoral standards and best

practices. In Albania, Bulgaria, Kosovo, North Macedonia, and

Serbia, where such corporate reporting is not mandatory, the

2019 annual reports published in 2020 were accompanied by

independent assurance according to TITAN reporting standards

and the Communication on Progress advanced-level criteria set

by the UN Global Compact Network.

In all countries, community outreach programs have contributed

to good relations and collaborations, which have long-term

positive impacts. One example is the case of the community

engagement plan in Kosovo with the Laboratory for the

Activation of Businesses (LAB), a private-public foundation

established by TITAN and other local stakeholders in 2014,

based on international corporate governance standards. LAB

has supported the creation and sustainable operation of 100

local businesses in agroforestry, providing new jobs and income

to local people, and fresh and high-quality local products for

the local market, free heating to local community schools,

and training to improve local entrepreneurship. In 2020, a

new partner joined LAB, which thereby expanded its scope of

operations to the services sector, with the creation of a new

training program to offer new jobs to young unemployed people

from the local community.

TITAN Cement Group

Integrated Annual Report 2020

sustainability and social responsibility. TITAN’s integrated

management approach, characterized by open, responsible,

and accountable decision-making, ensures that governance and

ethics considerations are properly addressed at a Group level.

Consistent with the Group’s strong commitment to good

governance and transparent business ethics, the Group Compliance

and Anti-Fraud function was established in January 2020 as part

of the Group’s Internal Audit, Risk and Compliance Department,

reporting to the Group Audit and Risk Committee. The Group

Compliance Officer has the responsibility to monitor compliance

issues and risks and coordinate relevant controlling activities.

The development of an integrated Compliance Program in

2020 advances TITAN’s efforts to ensure achievement of its

compliance objectives, not only with the applicable laws and

regulations, but also with the highest global standards and all

voluntary commitments that the Group has undertaken in the

areas of human rights, sustainability, and social responsibility.

Human rights

Consistent with the United Nations Guiding Principles on

Business and Human Rights, TITAN Group is committed to

respecting and supporting human rights with regard to its

employees, the communities where it operates, and its business

partners, as expressed in internally recognized standards,

including the UN Universal Declaration of Human Rights.

Since its endorsement of the United Nations Global Compact

(UNGC) principles, TITAN has worked at both Group and business

unit level to ensure a good understanding of the potential risks

related to human rights, both in its operations and in the value

chain. The TITAN Group Compliance Program covers all relevant

aspects and provides the framework for a more systematic

and integrated human rights compliance assessment to be

periodically conducted for the Group operations.

The TITAN Group Whistleblowing Policy, communicated across

the Group in 2020, aims to empower employees in every country

to promote an ethical work culture, by reporting possible

misconduct, fraud, or abuse. In 2020, the TITAN Group reporting

platform EthicsPoint® was also launched, providing a uniform,

anonymous, and strictly confidential channel to report incidents

of non-compliance, to which all Group employees have access,

as an additional means to ensure that incidents are reported,

examined, and resolved with a remedy plan, if and when necessary.

It promotes a culture of openness, transparency, and accountability,

which is essential to safeguarding good governance and integrity.

A five-member Group Supervisory Committee, which includes

the Chairman of the Audit and Risk Committee, oversees the

investigation and handling of reports while ensuring confidentiality

and non-retaliation for whistleblowers. In 2020, 11 cases in total

were reported through the EthicsPoint® platform, ten of which were

classified as allegations and one as a request for information (see

ESG performance statements 2020 for more details). All allegations

were thoroughly examined by the respective regional committees,

reviewed by the Group Supervisory Committee, and resolved with a

remediation plan, as appropriate.

Anti-bribery and corruption

The Group’s anti-bribery and corruption policy underlines

its zero-tolerance attitude and the commitment to fighting

corruption, specifies high-risk areas in which bribery and

corruption most likely occur during business activities, and

Another notable case is TITAN’s partnership with Re-Generation,

the largest paid placement, professional, and personal

development program in Greece, to launch the innovative

Re-Generation Academy for Digital Acceleration| Data Science

Lab - Powered by TITAN for young people with an interest in

data science, a sector with growing demand. This is a unique

initiative in the context of the Group’s commitment to helping

young people develop the digital skills that are necessary for the

transition to the digital era. The first Academy was completed

in early 2020, with 95% of the 24 trained data scientists that

participated in the program finding employment.

Community Engagement Plans /

Positive local impact 2020

Local spend (the ratio of spend to local suppliers over

the spend to all suppliers, as a percentage) 66.95%

Number of initiatives and actions for community

engagement in all regions 131

Total amount of “social investment” (contribution in

cash and in kind and budget for the implementation of

these 131 CSR/Community engagement activities)(1) €1.5m

Number of stakeholders engaged in the above

initiatives and actions as active participants (TITAN

employees, business partners, NGOs, local authorities,

and people from communities) 3,809

Sustainable supply chain

In 2020, TITAN continued its Group Procurement transformation

program by seeking to improve procurement efficiency and the

sustainability of global procurement categories.

The optimization of the supplier landscape, the establishment

and maintenance of long-term value-added supplier

relationships, and a holistic review of supplier performance,

including sustainability aspects, are key enablers for total cost

optimization and the propagation of sustainability practices in

the supply chain.

TITAN seeks to maintain and further improve its collaboration

with local suppliers and contractors. With the ongoing Group

digital transformation process and the unification of digital

systems, the local spend calculation of TITAN’s global activities

can now be tracked in an easier and more accurate manner.

TITAN’s effort to update its prequalification process for suppliers

through a holistic sustainability review continued in 2020. The

process, which started in 2017 in TITAN USA, was extended in

2018 to cover Group category suppliers. The scope was also

broadened to include a complete set of sustainability criteria

beyond health and safety topics, and, in 2019, the program was

expanded to cover the scope of major contractor activities in the

Greek operations. TITAN is contemplating the expansion of the

coverage of the program to its Brazilian operations in 2021.

Governance, transparency, and ethics

Integrity, incorporating transparency and ethical business

practices, is a core value embedded in TITAN’s culture and

reflected in the way the company performs its business

activities, in line with its key governing objectives of

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provides guidance on preventive and detective procedures,

including risk assessment and due diligence of third parties who

perform services for or on behalf of TITAN Group.

TITAN has responded to the need to intensify all relevant initiatives

by delegating to the Audit and Risk Committee the responsibility to

oversee, among others, the risk of corruption and fraud.

Strengthening its commitment to restrict possible exposure

to the risks of fraud and corruption, TITAN has developed a

comprehensive Anti-Fraud Program that sets out strategic

priorities and activities to deter and detect occupational fraud

and corruption throughout the Group and minimize its fraud risk

exposure. The Anti-Fraud Program aims to provide a protective

shield for the Group’s assets and resources, corporate reputation

and credibility, cultural strengths, and operational efficiency

by establishing an integrated structure of anti-fraud controls

and activities that will aid the prevention and detection of

occupational fraud as well as the Group’s response in such

an eventuality. Proactive mechanisms include Fraud Risk

Assessment projects and follow-ups on agreed action plans.

TITAN Group Compliance Program and policies

In 2020, the implementation of the Group’s Compliance Program

was launched as an integrated system of activities, mechanisms,

and controls, aiming to provide adequate assurance that

compliance risks are identified in a timely manner, properly

assessed, and effectively mitigated, thus minimizing the

possibility of a significant compliance failure.

The Compliance program facilitates the efforts to maintain

and foster a strong compliance culture, ensuring adherence

to compliance requirements and promoting consistent and

responsible ethical behavior. It is a risk-based program with

dynamic elements, incorporating monitoring and oversight,

compliance awareness, training, risk assessment, and third-

party due diligence components. In 2020, more than 6,300

training hours were dedicated to compliance training as part of

Compliance Program training and awareness activities.

TITAN’s Code of Conduct and Group Policies, applicable to

all Group operations, cover all strategic areas and material

issues, convey the principles, rules of conduct, and standards,

and provide guidelines to employees and external business

collaborators, such as vendors and customers, to ensure

compliance with the applicable internal and statutory rules.

Group Policies include, but are not limited, to:

• Anti-Bribery and Corruption Policy

• Conflict of Interest Policy

• Competition Law Compliance Policy

• Corporate Social Responsibility Policy

• Environmental Policy and Climate Change Mitigation Strategy

• Framework Policy for the Protection of Personal Data

• Human Rights Policy

• Occupational Health and Safety Policy.

In 2020, TITAN continued to review, update, and enrich Group

Policies to enhance clarity and address specific topics of

increasing importance. New versions of the Code of Conduct,

Health and Safety Policy, Competition Law Compliance Policy,

Human Rights Policy, and Corporate Social Responsibility

Policy, which are more aligned with the Group’s developments

and commitments and detailed on the matter of diversity and

inclusion, were developed. In order to maintain a clear and

efficient structure, the Group Policies Repository in the Group

Intranet (Connections) was re-organized under a new taxonomy

with the following categories: regulatory-driven, sustainability-

and social-responsibility driven and operational. The revised

Code of Conduct was distributed to all employees.

Interactive e-learning courses on the Code of Conduct and the

Anti-Bribery and Corruption Policy, Conflict of Interest Policy,

Information Security Policy, and Summary of Data Protection

Policy were created and uploaded on the UnITe People Learning

Management System (LMS). The courses seek to increase

awareness and facilitate deep understanding. In addition,

e-learning courses on the Competition Law Compliance Policy

and Sanctions Policy are also being to targeted audiences. Upon

the completion of the first round of e-learnings, expected in

the first quarter of 2021, the second wave of e-learnings will be

assigned. Moreover, specific initiatives in each business unit,

taking into consideration COVID-19 limitations, are in progress,

and so is the translation of relevant material, aiming to enhance

TITAN’s compliance culture and the awareness of employees

who, in their role, do not have access to Information Systems.

Integrating ESG criteria in the Company’s remuneration

policy

Our company is committed to achieving a reduction of net direct

CO₂ emissions from 674 to 500kg/t cementitious product by 2030.

This target is in line with limiting global warming to well below

C compared to pre-industrial levels, and will be verified by the

Science Based Targets Initiative (SBTi). To this effect, a three-year

CO₂ target that is compatible with the path to 500 kg CO₂ per ton of

cementitious product is included in the performance objectives of

the deferred compensation incentive for executive members of the

Board and the members of the Executive Committee.

Independent assessment of ESG

performance

Improving sustainability performance is an on-going effort linked

to monitoring, measuring, and assessing performance with internal

and external well-defined criteria. TITAN engages with ESG Rating

agencies (namely, Sustainalytics, MSCI, Vigeo Eiris, ISS corporate

solutions, and Refinitiv), valuing the assessment and seeking

feedback. In addition, by reporting to CDP for the first time in 2020,

TITAN took an additional step in responding to the high and growing

demand by its stakeholders for environmental disclosure.

Kamari cement plant, Greece

TITAN Cement Group

Integrated Annual Report 2020

ESG performance statements

ΤΙΤΑΝ Group discloses information related to ESG Performance in

alignment with voluntary commitments to the IIRC principles, UNGC,

and GCCA based on a long term practice of integration which is referred

to as Global Sectoral Approach in this report. Since 2018, in order to

further align its disclosures with the SDGs 2030, TITAN incorporated the

“Guidance on Core Indicators for entity reporting on the contribution

towards the attainment of the Sustainable Development Goals” of the

United Nations Conference on Trade and Development (UNCTAD, 2019

edition), and promoted the connection of selected indicators with

Targets for the SDGs based on the Guidance. See also pages 14-15

“Delivering Value for All in 2020” and Table 2.1. “Value Creation Core

Indicators Index”.

In 2020, TITAN also incorporated the Sustainability Accounting Standards

Board (SASB) Framework in the preparation of ESG performance

statements, in order to appropriately address the more financially-

material ESG disclosures. The SASB Framework was leveraged for the

purpose of connecting the SASB Materiality Map® with the 2020 Group’s

materiality assessment, and allowed the alignment between the Group

and its subsidiaries. In the same direction the Group also started

reporting in alignment with the Sustainability Accounting Standard Board

(SASB) for the specific requirements of industries mostly relevant to our

operations.

For committing on targets 2020 and reporting on progress for all other

environmental parameters except CO

, the base line year is 2003 (when

TITAN reported for the first time consolidated non-financial performance

indicators). For CO

emissions the baseline year for relevant target(s) is

1990 in line with the Kyoto Protocol.

The ESG performance review and statements focus on material issues for

TITAN operations and key stakeholders. TITAN’s Global Sectoral

Approach encompasses the disclosure of Core Indicators for Value

Creation and Governance, Social and Environmental Performance.

Indicators (KPIs) are structured under four separate tables in the “ESG

performance statements” (Tables 2.1, 2.2, 2.3, and 2.4). TITAN Group ESG

Performance Statements are structured according to TITAN's reporting

standards that are aligned to global (UNGC, SDGs2030, UNCTAD and

SASB) as well as sector specific (GCCA) reporting standards and

frameworks. The connection of the TITAN ESG KPIs with the global and

sector specific standards is presented in Table 2.5. This includes the

connection also with SASB Standards for the first year in 2020, in

coherence with the codes of the SASB Accounting Metrics (in brief:

metrics) for ensuring clarity and consistency, with reference to Tables

2.2, 2.2.2, 2.3, and 2.4. Table 4 provides a review of TITAN’s 2020 IAR for

the adherence to the Global Compact criteria for the Advanced Level

Communication on Progress (COP). The connection of TITAN's

disclosures with specific SASB metrics for reporting is facilitated also by

using Table 4 (COP), and Table 5 (Transparency International - Corruption

Perception Index 2020).

Changes in the content and structure of the 2020 Integrated Annual

Report:

• Table 2.5 “TITAN Reporting Standards for the ESG Performance

disclosures in 2020” (explained above). About the specific alignment of

our Environmental and Social performance KPIs with the GGCA

Sustainability Charter and Framework Guidelines see Table 2.5.1 “Sector

standards for non-financial reporting”.

• New information under the framework of Environmental Performance

Indicators regarding Gross direct CO

emissions (Scope 1) covered under

limiting regulations, Water withdrawal for concrete, Water recycled (all

uses), and Quarry land areas rehabilitated from total impacted.

• New information under the framework of Social Performance

Indicators regarding Training man-hours on health and safety per

contractor, Expenditures for health and safety, and Key operations with

community engagement plans related to material issues and Group

policies. Also, the Social Performance Indicators Index does not present

the ‘granularity’ of data on per-country manner compared to last year,

but only the Group total and/or average figures. The purpose was to

improve in brevity and simplicity.

The Notes below help the reading of ESG performance statements

(about connection with KPIs see Tables 2.2, 2.2.2, 2.3, 2.4, and 2.5).

Assurance: Specific KPIs included in the scope of ERM Certification and

Verification Services (ERM CVS) assurance engagement (ERM CVS’

“Independent assurance statement”).

UNGC: TITAN follows the reporting requirements for meeting the

criteria of UN Global Compact relating to a Communication on Progress

(COP) Advanced Level.

GCCA: Specific KPIs calculated according to the sector Guidelines

integrated by TITAN, following the GCCA Charter and Framework

Guidelines.

UNCTAD: TITAN has adopted under its reporting framework the

applicable KPIs according to the Guidance of the UNCTAD, as

supplementary to the above Reporting Standards.

SASB: TITAN in 2020 started reporting on ESG performance aligned with

the Sustainability Accounting Standard Board (SASB).

ESG performance

review

Management

Report

SDGs 2030 Material issues and topics

Internal External

Financial liquidity and access to funding

Access to bank credit facilities and capital markets financing provides liquidity

to meet current obligations and grow business sustainably and potential for growth.

• Access to bank credit facilities and capital markets financing is essential to run and

grow operations sustainably

•Safeguard market presence

Governance, transparency and ethics

Ensuring good governance integrity and transparency, promoting ethical business

practices, lobbying responsibly and engagement with stakeholders do the same.

•Procurement practices

•Security practices

•Human rights grievance mechanism

•Anti-corruption

•Anti-competitive behavior

• Supplier assessment for impact on environment

•Supplier human rights assessment

Sustainability of communities

TITAN is working toward building an inclusive relationship, through ongoing

engagement with stakeholders at all levels. At site level, building strong relationships

with local communities is part of this and is key to value creation for stakeholders.

• Indirect economic impacts

•Market presence

•Compliance

•Environmental grievance mechanisms

•Grievance mechanisms for impacts on society

•Economic performance

Climate change

TITAN operations and the cement industry as a whole contribute to climate change.

Reducing CO₂ emissions in line with the Kyoto Protocol and the Paris Agreement,

the European Green Deal vision of carbon neutrality by 2050 and the Global Cement and

Concrete Association (GCCA), 2050 Climate Ambition to deliver society with carbon-

neutral concrete by 2050 and working with our peers to meet specific targets is a priority

for business and society.

• Energy

•Emissions

SDG 1

SDG 3

SDG 4

SDG 9

SDG 11

SDG 17

SDG 7

SDG 13

SDG 17

Group TITAN, all

TITAN operated

sites

Shareholders,

investors,

customers,

suppliers,

governments,

local communities

and authorities,

academia, NGOs

Joint venture

partners,

contractors,

security

personnel,

customers,

suppliers, local

communities,

shareholders,

investors,

governments,

NGOs

TITAN Group, all

TITAN operated

sites

Contractors,

suppliers,

customers, local

communities and

authorities,

governments,

shareholders,

investors, NGOs

SDG 4

SDG 8

SDG 16

SDG 17

TITAN Group, all

TITAN operated

sites

ESG Performance Statements - Tables

1. Material Issues and Boundaries for reporting ESG Performance

Boundaries

Contractors,

suppliers,

investors,

customes, local

communities,

governments

TITAN Group

SDG 9

SDG 8

SDG 17

TITAN Cement Group

Integrated Annual Report 2020

SDGs 2030 Material issues and topics

Internal External

Circular economy

A number of resources is used to serve TITAN’s purpose, such as raw materials,

traditional and alternative fuels, water and energy, and waste materials. A circular

economy will enable business and consumption models focused on re-using and

recycling use of alternative fuels, Innovation and out-of-the-box thinking.

• Effluents and waste

•Raw Materials

SDG 3

Health and safety

SDG 17 TITAN is committed to provide employees, contractors and any third-party safe and

healthy workplace. Health and Safety is crucial for customers and TITAN ensures that

products are safe to use and that they are delivered safely to customers.

•Occupational health and safety

•Customers health and safety

People management and development

Being a responsible employer means providing training and development opportunities,

and equal remuneration between men and women, embracing diversity with a work

environment free from discrimination or harassment while supporting employees in

exercising their right to freedom of association and collective bargaining. It also means

ensuring that there is no child labor or compulsory labor in TITAN operations in the

supply chain.

• Employment

• Training and education

• Diversity and equal opportunities

• Market presence

• Labor practices grievance mechanisms

•Non-discrimination

•Freedom of association and collective bargaining

•Child labor and compulsory labor

• Ongoing assessment

Environmental management

TITAN ensures that it adheres to international best practices and is focused on

contributing to improve its performance and keep its license to operate.

• Biodiversity

•Compliance

•Environmental grievance mechanisms

•Water

•Transport of goods and services

SDG 6

SDG 7

SDG 13

SDG 15

SDG 17

TITAN Group, all

TITAN operated

sites

Shareholders, join

ventures partners,

contractors,

suppliers, local

communities,

governments,

academia, NGOs

Boundaries

SDG 12

SDG 13

SDG 17

Contractors,

suppliers,

customers, local

communities and

authorities,

academia,

regulators, NGOs

TITAN Group, all

TITAN

operated sites,

GAEA, STET

TITAN Group, all

TITAN

operated sites

Employees

families,

contractors,

Local

communities and

authorities,

suppliers,

customers, third

parties,

governments

SDG 4

SDG 5

SDG 8

SDG 17

TITAN Group,

all TITAN

operated sites

Shareholders,

joint ventures

partners,

contractors,

suppliers, local

communities,

governments,

academia, NGOs

ESG performance

review

Management

Report

SDGs 2030 Material issues and topics

Internal External

Social and political risks, and instability

TITAN has plans in place to maintain control and normal operations during political

instability, riots, uprisings and various conditions that lead to extreme volatility.

We work to safeguard TITAN’s local investments by protecting our people, business

partners and the communities near our operations.

•Local communities

Other issues

Sustainable products and services:

We collaborate with stakeholders to develop more sustainable products to create value

through our cement such as ProAsh®.

•Products and services

Notes

The boundaries of reporting for each material issue are defined by the principles of “materiality”, “relevance”, “conciseness” and “consistency”,

aligned with the guidance of the International Integrated Reporting Council (IIRC)

Materiality

A matter is material if it is of such relevance and importance

that it could substantively influence the assessments of providers of financial capital

with regard to the organization’s ability to create value over the short, medium and long term. In determining whether or not a matter is material,

senior management and those charged with governance should consider whether the matter substantively affects, or has the potential to

substantively affect, the organization’s strategy, its business model, or one or more of the capitals it uses or affects.

Relevance

Relevant matters are past, present or future matters that impact or may impact the organization’s strategy, its business model or one or more of the

capitals and thus ultimately affect the organization’s ability to create value over time. Identifying relevant matters for inclusion in the integrated

report includes identifying the population of potentially relevant matters, and narrowing these down to matters that are relevant for inclusion in the

integrated report. Information about relevant matters will have either, or both, predictive value or confirmatory value with respect to intended users’

decisions.

Conciseness

Disclosures about material matters should include concise information that provides sufficient context to make the disclosures understandable and

should avoid information that is redundant in nature.

Consistency

Reporting policies should be followed consistently from one period to the next unless a change is needed to improve the quality of information

reported. This includes using the same KPIs to report on the same matters if they continue to be material across reporting periods. When a significant

change has been made, the organization explains the reason for the change, describing (and quantifying if practicable and material) its impact.

1. Source: Materiality Background Paper for <IR> (IIRC, 2013). Further information about the IIRC can be found on its website www.theiirc.org

2. TITAN uses the equivalent term "significance".

Boundaries

SDG 8

SDG 16

SDG 17

All TITAN

operated sites,

TITAN Group

Employees

families,

customers,

investors,

governments,

local

communities,

NGOs

TITAN Group, all

TITAN operated

sites, GAEA, STET

Customers,

suppliers,

governments,

investors, society

TITAN Cement Group

Integrated Annual Report 2020

Notes

TITAN Group ESG performance statements cover four areas: Value creation and distribution to stakeholders (see “Understanding TITAN”, under

section “Overview” – Table “Delivering value for all”), Social performance KPIs, Environmental performance KPIs and Governance Core Indicators.

The following section 2.1 “Value Creation Core Indicators Index” is inclusive of definitions for terms used in specific for Value creation and

distribution to stakeholders, and serves as index of Notes for Table “Delivering value for all”.

General Note for the consolidation of data

Consolidation (aggregation) of data for the above Value Creation Core Indicators was made with 100.0% contribution for all BUs where TITAN has

property share more than 50.0% (in line with the method of full consolidation in the Financials). The contribution of Turkey included Adocim

Cemento Beton Sanayi ve Ticaret AS with 100%. See Table 2.2.1, in specific “Adocim all activities”.

Notes for the standards, guidance, and terms used

Most terms related to the Value Creation Core Indicators were adopted from the “Guidance on Core Indicators for entity reporting on the

contribution towards the attainment of the Sustainable Development Goals” (in short: UNCTAD Guidance, 2019), and incorporated under the TITAN

standards. The related terms are outlined here and connected with the KPIs in the Index above. The figures for the Value Creation Core Indicators

are provided in “Understanding TITAN; Delivering value for all”.

2.1 Value Creation Core Indicators Index

2. ESG Performance Indicators

Detailed figures are provided in the Report under 'Delivering value for all', see also: Table 2.2 and 2.3.

1. The economic value created and distributed to key stakeholders has been calculated using the United Nations – UNCTAD “Guidance on Core

indicators for entity reporting on the contribution towards the attainment of the Sustainable Development Goals” (2019 edition).

2. Gross Value added. Revenue minus costs of bought-in materials, goods and services (called also: Value Added, according to the UNCTAD

Guidance, 2019). TITAN’s approach is based on the verified and disclosed Financial Statements for the same reporting period, acc. to the IFRS.

3. Net value added. Revenue minus costs of bought-in materials, goods and services and minus depreciation on tangible assets (UNCTAD Guidance,

2019). TITAN’s approach is based on the verified and disclosed Financial Statements for the same reporting period, acc. to the IFRS.

4. Total spend to Suppliers, local and international, for goods and services. According to TITAN Standards and the application of the IFRS, see

Financial Statements.

5. Taxes to national and local authorities. According to TITAN Standards and the application of the IFRS, see Financial Statements.

6. Payments in cash, to shareholders and minorities. According to TITAN Standards and the application of the IFRS, see Financial Statements.

7. Total spend on donations and social engagement initiatives Total amount of charitable/voluntary donations and investments of funds (both

capital expenditures and operating ones) in the broader community where the target beneficiaries are external to the enterprise incurred in the

reporting period, in absolute amount (UNCTAD Guidance, 2019). TITAN discloses this amount as "Donations", as equivalent to "charitable/voluntary

donations and investments of funds", and in detail in Table 2.3 based on the verified and disclosed Financial Statements for the same reporting

period.

8. Green investment. Total amount of expenditures (capital and also operational) for those investments whose primary purpose is the prevention,

reduction and elimination of pollution and other forms of degradation to the environment (UNCTAD Guidance, 2019). TITAN discloses the respective

figures in detail in Table 2.2 of the ESG Performance Statements.

9. Salaries (contributions to) pensions, and social benefits, including additional benefits beyond those provided by law. additional benefits.

According to TITAN Standards and the application of the IFRS, see Financial Statements.

10. Investments in training of direct employees.Total expenditures including the direct and indirect costs of training for direct employees

(including costs such as trainers’ fees, training facilities, training equipment, related travel costs etc.) reported also per employee and per year, and

broken down by employee category (UNCTAD Guidance, 2019). TITAN discloses the respective figures in detail in Table 2.3 of the ESG Performance

Statements.

11. Investments for Research and Innovation. Total amount of expenditures on research and development (R&D) and Innovation by the reporting

entity during the reporting period (UNCTAD Guidance, 2019). It includes all expenditures for the R&D and Innovation activities, and projects, and

incl. salaries, participations, travelling and other expenses of our employees which are related directly and indirectly, and other expenditures for

promoting innovative technologies and products. TITAN uses the verified and disclosed Financial Statements for the same reporting period.

12. Capital expenditures. Capital expenditures, commonly known as CapEx, are funds used by a company to acquire, upgrade, and maintain physical

assets such as property, buildings, an industrial plant, technology or equipment.

ESG performance

review

Management

Report

2.1.1. Consolidated Report on Payments to Governments

Group Companies

Country

Payment type Amount

TITAN CEMENT S.A. Greece Quarry Rental Fees/taxes 792,235.72

Quarry Rental Fees 2,220,516.16

Municipality Taxes 532,003.77

Clay Tax

2,447,615.00

Quarry Royalties 1,272,377.00

Clay Tax 3,784,563.00

Quarry Royalties 507,724.00

Road maintenance 129,211.00

Zlatna Panega Cement AD Bulgaria Concession Fees 215,000.00

Cementi Antea Sha Albania Extraction Fees 402,109.00

Titan America LLC USA Sales / Mitigation Fees 373,163.19

SHARRCEM SH.P.K. Kosovo Extraction Royalties 206,903.00

Titan Cementarnica Usje A.D. North Macedonia

Concession Fees

199,157.00

Titan Cementara Kosjeric A.D. Serbia

Concession Fees

162,976.00

ADOCIM A.S. Turkey

Permission/Forestation Fees

260,423.00

TOTAL 13,505,976.84

Note

TITAN Cement International S.A. hereby reports, in accordance with article 3:33 of the Belgian Companies and Associations Code, that TITAN

Cement Group has paid to municipal authorities of EU Member States and third countries the total amount of €13,505,976.8 for extractive

operations 2020 as specified in the above table.

INTERBETON S.A. Greece

Alexandria Portland Cement Co Egypt

Beni Suef Cement Co Egypt

TITAN Cement Group

Integrated Annual Report 2020

SDGs &

Targets

Key Performance Indicators Units 2020 2019 2018 2017 2016 Assurance GCCA UNGC UNCTAD SASB

1. All activities - Environmental Performance

Local Impacts

Impact on natural raw materials recourses, and waste management

SDG 12.2

Natural raw materials extracted (total, wet)

million t

32.5 32.4 33.6 34.2 32.7 ●

Raw materials extracted for clinker and cement

million t

17.9 18.5 20.2 21.2 20.0 ●

Raw materials extracted for aggregates

million t

14.5 13.8 13.5 13.0 12.7 ●

SDG 12.4

Externally recycled waste materials (total, wet)

273,828 236,736 200,684 259,696 426,898 ●●

SDG 12.5

Recycled

125 53 1,832 4,395 9,682

Reused

273,193 236,610 198,831 255,218 413,778

Recovered

510 74 21 83 3,438

SDG 6.3

Water consumption (total)

million m

11.1 11.0 10.7 10.5 9.1 ●●●

SDG 6.4

Water withdrawal (total, by source)

million m

41.3 39.8 39.2 35.4 30.5

●●●●●

SDG 6.5

Ground water

million m

37.8 36.4 35.5 31.4 26.7

Municipal water

million m

0.9 0.9 1.1 1.3 1.0

Rain water

million m

0.2 0.2 0.2 0.2 0.2

Surface water

million m

0.8 0.8 0.9 1.0 1.0

Quarry water used (from quarry dewatering)

million m

0.1 0.1 0.1 0.1 0.1

Ocean or sea water

million m

1.3 1.3 1.3 1.3 1.3

Waste water

million m

0.1 0.1 0.1 0.1 0.1

Water discharge (total, by destination)

million m

30.2 28.8 28.5 24.9 21.3 ●●●●

Surface (river, lake)

million m

28.7 27.3 27.0 23.5 19.9

Sub-surface water (well)

million m

0.1 0.1 0.0 0.0 0.0

Ocean or sea

million m

1.3 1.3 1.3 1.3 1.3

Off-site treatment

million m

0.1 0.1 0.1 0.1 0.1

Impact on water recourses

2.2 Environmental Performance Index

ESG performance

review

Management

Report

SDGs &

Targets

Key Performance Indicators Units 2020 2019 2018 2017 2016 Assurance GCCA UNGC UNCTAD SASB

Impact on biodiversity and land stewardship

SDG 15.3

Active quarry sites with biodiversity issues

1,3

10.0 10 10 10 8

●● ●

SDG 15.4

SDG 15.5

Active quarry sites with biodiversity management

plans

2,3

99986

●● ●

SDG 15.9

SDG 15.a

Active quarry sites with biodiversity management

plans

90.0 90.0 90.0 80.0 75.0

●●● ●

Sites with quarry rehabilitation plans

88.0 90.0 78.0 81.0 87.0

●●● ●

Quarry land areas rehabilitated from total impacted

(cumulative)

3,4

22.7 n/a n/a n/a n/a

●●

Active quarry sites (wholly owned) with

Environmental Management System (ISO14001 or

similar)

79.0 77.0 80.0 81.0 93.0

●●

Fuels and energy

Impact on energy resources

Thermal energy consumption (total)

41,229 43,102 45,740 50,114 48,295

●●●

Electrical energy consumption (total)

6,116 6,328 6,549 6,914 6,768

●●●

2a. Cement Activities – Environmental Performance (acc. to the Sectoral Approach adopted by TITAN)

Climate change

Impact on Greenhouse Gas Emissions

SDG 9.4

Integrated cement plants and cement grinding

plants with certified Environmental Management

System (ISO 14001 or similar)

% of plants

86.7 86.7 86.7 86.7 86.7

●

Integrated cement plants with certified Energy

Management System (ISO 50001 or similar)

% Clinker

Production

54.9 40.5 40.7 6.1 6.7

●●

Gross direct CO₂ emissions (Scope 1, total)

million t

9.9 10.3 11.1 12.1 11.7

●●●●●

Gross direct CO₂ emissions (Scope 1) covered under

limiting regulations

49.9 55.1 56.9 58.6 61.5

● ●●

Net direct CO₂ emissions (Scope 1, total)

million t

9.6 10.0 10.8 11.9 11.4

●●●●

Specific gross direct CO₂ emissions (Scope 1)

kg/t

Cementitious

product

697.9 701.1 708.8 716.6 719.6

●●●

Specific net direct CO₂ emissions (Scope 1)

kg/t

Cementitious

product

674.0 676.6 686.1 700.3 701.4

●●●

Indirect CO₂ emissions (Scope 2, total)

5,11

million t

0.8 0.9 1.0 1.2 1.2

●●●●

TITAN Cement Group

Integrated Annual Report 2020

SDGs &

Targets

Key Performance Indicators Units 2020 2019 2018 2017 2016 Assurance GCCA UNGC UNCTAD SASB

Alternative fuels and materials

SDG 7.2

Alternative fuel substitution rate

%Heat Basis

13.1 13.5 12.0 8.9 8.4

●●●●●

SDG 7.3

Biomass in fuel mix

6,11

%Heat Basis

3.8 4.3 3.4 2.8 2.1

●●●●●

SDG 7.a

Clinker-to-cement ratio

%Heat Basis

82.44 82.87 83.68 83.78 84.46 ●●

SDG 12.2

Thermal energy consumption (total)

Cement and grinding plants and attached quaries

40,786 42,160 45,176 49,708 47,833

●●●●●

Energy efficiency related to clinker production

kcal/kgClinker

834.9 833.5 835.6 847.1 846.7 ●●●●

Alternative fuels consumption (total)

234,451 269,665 244,395 203,170 163,600

●●●●

Electrical energy consumption (total)

Cement and grinding plants and attached quaries

GWh

1,603.5 1,661.3 1,723.9 1,826.0 1,783.4

●●●●●

Local Impacts

Impact on natural raw materials recourses

SDG 12.2

Materials consumption (total, dry)

million t

20.6 21.1 22.5 24.4 23.3 ●

Extracted (natural) raw materials consumption (dry)

million t

19.3 19.6 21.2 23.0 22.2

Alternative raw materials consumption (dry)

million t

1.3 1.5 1.2 1.3 1.2

Alternative raw materials use (of total raw materials

consumed)

%Dry

6.4 7.1 5.5 5.4 5.1

●●

Alternative raw materials rate (based on clinker-to-

cement (equivalent) factor)

%Dry

7.2 8.1 6.4 6.3 6.0 ●●●●

Impact on water recourses

SDG 6.4

Water consumption (total)

million m

3.7 3.7 4.0 4.3 3.8 ●●●

SDG 6.5

Water recycled (total)

million m

15.5 15.1 17.7 18.5 18.5

●●●●

Specific water consumption

lt/t

Cementitious

product

260.5 255.7 256.5 259.3 241.2 ●●●●

lt/t

Cement

260.8 257.3 259.2 269.8 252.2 ●●●●

ESG performance

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Management

Report

SDGs &

Targets

Key Performance Indicators Units 2020 2019 2018 2017 2016 Assurance GCCA UNGC UNCTAD SASB

Other air emissions

SDG 3.9

Overall coverage rate

65.4 74.1 79.8 78.1 82.8

● ●● ●

SDG 9.4

Coverage rate continuous measurement

77.7 78.6 81.0 82.1 53.8

● ●● ●

Dust emissions (total)

225.4 177.5 155.9 277.9 320.8

● ●● ●

Specific dust emissions

g/tClinker

19.3 14.7 12.1 19.8 23.8

● ●● ●

Coverage rate for dust emissions

100.0 100.0 100.0 100.0 100.0

● ●● ●

NOx emissions (total)

14,962.1 15,316.6 16,880.8 18,863.1 23,063.4

● ●● ●

Specific NOx emissions

g/tClinker

1,282.4 1,268.6 1,307.0 1,345.3 1,708.6

● ●● ●

Coverage rate for NOx emissions

100.0 100.0 100.0 100.0 100.0

● ●● ●

SOx emissions (total)

2,953.0 2,334.9 2,632.4 2,738.4 2,717.9

● ●● ●

Specific SOx emissions

g/tClinker

253.1 193.4 203.8 195.3 201.4

● ●● ●

Coverage rate for SOx emissions

100.0 100.0 100.0 100.0 100.0

● ●● ●

TOC emissions (total)

435.3 682.2 546.9 710.7 610.3

●● ●

Specific TOC emissions

g/tClinker

37.3 56.5 42.3 50.7 45.2

●● ●

Coverage rate for TOC emissions

90.9 98.9 100.0 100.0 100.0

●● ●

PCDD/F emissions (total)

211.3 152.5 227.7 343.4 163.3

●● ●

Specific PCDD/F emissions

ng/tClinker

18.1 12.6 17.6 24.5 12.1

●● ●

Coverage rate for PCDD/F emissions

96.8 100.0 100.0 89.3 100.0

●● ●

Hg emissions (total)

360.3 494.5 492.8 478.0 768.0

●● ●

Specific Hg emissions

mg/tClinker

30.9 41.0 38.2 34.1 56.9

●● ●

Coverage rate for Hg emissions

100.0 97.0 100.0 96.0 90.3

●● ●

Cd and Tl emissions (total)

166.5 221.3 267.2 241.3 350.4

●● ●

Specific (Cd and Tl) emissions

mg/tClinker

14.3 18.3 20.7 17.2 26.0

●● ●

Coverage rate for (Cd and Tl) emissions

77.7 75.1 81.0 78.1 82.8

●● ●

Sb, As, Pb, Cr, Co, Cu, Mn, Ni and V emissions (total)

2,092.6 2,101.1 2,479.6 3,758.1 4,838.6

●● ●

Specific (Sb, As, Pb, Cr, Co, Cu, Mn, Ni and V)

mg/tClinker

179.4 174.0 192.0 268.0 358.5

●● ●

Coverage rate for (Sb, As, Pb, Cr, Co, Cu, Mn, Ni and V)

emissions

mg/tClinker

77.7 75.1 81.0 78.1 82.8

●● ●

TITAN Cement Group

Integrated Annual Report 2020

SDGs &

Targets

Key Performance Indicators Units 2020 2019 2018 2017 2016 Assurance GCCA UNGC UNCTAD SASB

2b. Ready Mix Concrete Activities – Environmental Performance

Climate change

Impact on energy recourses

SDG 9.4 Energy efficiency related to concrete production

kWh/

Concrete

3.5 3.7 3.8 3.2 3.7 ●●

Local Impacts

Impact on natural raw recourses

SDG 12.2 Recycled/reused concrete (internally and externally)

%Returned

concrete

90.3 86.6 86.9 87.7 86.6 ●●

Impact on water recourse

SDG 12.2

Total water withdrawal

million m

3.0 3.0 2.9 3.0 2.7 ●●

Specific water withdrawal

lt/m

Concrete

577.8 599.3 589.7 555.5 599.4 ●●

3. All Activities- Detailed disclosures concerning materials, fuels, and wastes

Impact on natural raw materials (extracted)

SDG 12.2

Raw materials consumed in total, for clinker and

cement production (dry)

t 19,251,498 19,593,979 21,225,412 23,042,010 22,153,556

●●

Substitution of natural raw materials by alternative materials (byproducts)

SDG 12.4

Alternative materials consumed in total, for clinker and

cement production (dry)

1,309,939 1,493,110 1,231,546 1,317,648 1,194,837

●●●

Impact on fuels and energy resources

SDG 7.2

SDG

12.2

Fuel mix, energy consumption for clinker and cement

production

%Heat Basis

100.0 100.0 100.0 100.0 100.0

●●

Conventional fossil fuels

%Heat Basis

86.9 86.5 88.0 91.1 91.6

●●

Coal, anthracite, and waste coal

%Heat Basis

33.0 42.8 32.6 29.3 31.3

Petroleum coke

%Heat Basis

44.8 38.5 51.2 57.3 53.2

Lignite

%Heat Basis

1.7 1.6 1.0 1.6 0.7

Other solid fossil fuel

%Heat Basis

1.8 1.4 1.4 1.0 0.9

Natural gas

%Heat Basis

5.0 1.0 0.5 0.6 0.9

Heavy fuel (ultra)

%Heat Basis

0.3 0.6 0.8 0.7 2.1

Diesel oil

%Heat Basis

0.4 0.6 0.5 0.6 2.5

Gasoline, LPG

(Liquified petroleum gas or liquid propane

gas)

%Heat Basis

0.0 0.1 0.1 0.1 0.1

ESG performance

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Management

Report

SDGs &

Targets

Key Performance Indicators Units 2020 2019 2018 2017 2016 Assurance GCCA UNGC UNCTAD SASB

SDG 7.2

Alternative fossil and mixed fuels

%Heat Basis

13.0 13.1 11.5 8.3 7.6

●●●●

SDG 13.1

Tyres

%Heat Basis

3.0 3.1 2.8 2.1 1.7

SDG 12.2

RDF

%Heat Basis

3.6 3.9 1.7 0.8 0.4

Impregnated saw dust

%Heat Basis

0.8 0.7 0.7 0.5 0.5

Mixed industrial waste

%Heat Basis

1.2 1.4 1.8 1.0 0.8

Other fossil based and mixed wastes

%Heat Basis

4.4 4.0 4.5 3.9 4.2

Biomass fuels

%Heat Basis

0.1 0.4 0.5 0.6 0.8

●●●●

Dried sewage sludge

%Heat Basis

0.02 0.0 0.0 0.1 0.1

Wood, non-impregnated saw dust

%Heat Basis

0.01 0.3 0.4 0.5 0.5

Agricultural, organic, diaper waste, charcoal

%Heat Basis

0.02 0.0 0.0 0.0 0.2

Other

%Heat Basis

0.00 0.0 0.0 0.1 0.0

Management of waste (produced on site)

SDG 12.4

Waste management (total, wet)

331,709 308,218 258,032 321,240 528,177

●●●

SDG 12.5

Non-hazardous waste

331,201 307,241 255,943 320,436 527,436

Hazardous waste

508 977 2,089 803 740

Waste management, break down by destination-

usage (wet)

%By mass

100.0 100.0 100.0 100.0 100.0

●●●

Reuse

%By mass

0.0 0.0 0.7 1.4 1.8

Recycle

%By mass

82.4 76.8 77.1 79.4 78.3

Recovery (including energy recovery)

%By mass

0.2 0.0 0.0 0.0 0.7

Incineration

%By mass

0.0 0.0 0.0 0.0 0.0

Landfill

%By mass

17.3 23.1 22.1 19.0 19.1

Other (incl. storage)

%By mass

0.1 0.1 0.1 0.1 0.1

TITAN Cement Group

Integrated Annual Report 2020

SDGs &

Targets

Key Performance Indicators Units 2020 2019 2018 2017 2016 Assurance GCCA UNGC UNCTAD SASB

4. Cement Activities - Avoided Impact (acc. to TITAN's Approach for avoided emissions, consumption of natural resources and landfilling)

Climate change

SDG 9.4

Avoided net direct CO

emissions

7,11

million t

29.3 27.8 26.3 24.9 23.6 ●●

Local Impacts

Avoided dust emissions

60,700 56,600 52,310 47,680 42,765 ● ●●

Avoided NOx emissions

261,235 241,555 221,025 199,555 176,785 ● ●●

Avoided SOx emissions

37,290 35,350 32,630 29,855 26,720 ● ●●

SDG 6.4

Avoided water consumption

9,11

million m

32.5 29.1 25.5 21.8 18.0 ●●

SDG 3.9

SDG 12.2

SDG 12.5

Avoided consumption of natural resources and

landfilling of alternative materials and fuels

9,11

million t

25.7 24.1 22.4 21.0 19.5 ●●

5. All Activities - Investments for the Environment

SDG 7.b

Environmental expenditures across all activities

million €

22.2 26.6 29.1 27.6 53.5 ●●

SDG 9.4

Environmental management

million €

13.9 16.8 16.3 15.8 19.6

Reforestation

million €

0.3 0.5 0.5 0.5 0.3

Rehabilitation

million €

0.7 0.6 0.5 0.5 0.9

Environmental training and awareness building

million €

0.3 0.2 0.2 0.2 0.2

Application of environmental friendly technologies

million €

4.2 6.4 9.6 8.7 30.4

Waste management

million €

2.7 2.1 1.9 2.0 2.0

Notes

SDG 3.9

SDG 9.4

General note on data consolidation

Consolidation (aggregation) of data for the key indicators of the Group environmental performance was made on the basis of the percentage of property share for each of the subsidiaries, where TITAN

holds a property share of more than 50.0%, also called share of equity for the purposes of non-financial data consolidation. The indicators were calculated according to the share of equity held by the

Group at the end of 2020. Performance of previous years was recalculated to reflect changes in share of equity in 2020. A detailed list of TITAN’s share of equity in all subsidiaries of the Group is

provided in Table 2.2.1.

ESG performance

review

Management

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Notes on external verification, standards, and guidance

●Assurance: Specific KPIs denoted in this Table are included in the scope of ERM Certification and Verification Services (ERM CVS) assurance engagement (ERM CVS’ “Independent assurance

statement”).

● Standards: For the reporting standards under TITAN's Global Sectoral Approach, namely GCCA, UNGC, UNCTAD, and SASB, and connection with the KPIs in this Table, please refer to Table 2.5.

● Guidance: TITAN follows the GCCA Sustainability Framework Guidelines, and the Sustainability Guidelines for the monitoring and reporting of: CO₂ emissions from cement manufacturing, co-

processing fuels and raw materials, monitoring and reporting of emissions, monitoring and reporting of water in cement manufacturing, and quarry rehabilitation and biodiversity management (for

all documents the reference is the latest edition of 2019 or 2020). The above Guidelines had superseded in 2020 the previous – and respective – Guidelines of the WBCSD/CSI, which were the

guidance for measuring, reporting and verifying environmental performance until (and including) year 2018. For the Sector standards, see details in Table 2.5.1.

Notes on specific environmental performance indicators

1. Active quarries within, containing or adjacent to areas designated for their high biodiversity value. See also Table 2.2.2

2. Sites with high biodiversity value where biodiversity management plans are actively implemented. See also Table 2.2.2

3. Coverage includes all quarries attached to cement plants and quarries for aggregates production.

4.New indicators

● Quarry land areas rehabilitated from total impacted (cumulative)

Coverage includes all quarries under TITAN management control. This KPI is calculated as the percentage of the impacted/disturbed quarry areas that has been rehabilitated (total and cumulative),

aggregated at Group level. Under TITAN approach, this KPI is complementary to the KPIs under the topic of Impact on biodiversity and land stewardship in this Table, namely: “Sites with quarry

rehabilitation plans” and “Active quarry sites with biodiversity management plans”. Also, this KPI covers the requirement for reporting according to SASB Standards on “Biodiversity Impacts”, metric

EM-CM-160a.2 “Terrestrial acreage disturbed, percentage of impacted area restored”. The total (cumulative) area of disturbed land reached 36,2 million m2 in 2020, first year of disclosing such data.

● Gross direct CO2 emissions (Scope 1) covered under limiting regulations

This KPI is calculated as the total amount of gross Scope 1 emissions that are covered under emissions-limiting regulations divided by the total amount of gross Scope 1 emissions, aggregated at

Group level. In combination with KPI “Gross direct CO2 emissions (Scope 1, total)”, this KPI covers the requirement for reporting according to SASB Standards on “Greenhouse Gas Emissions”, metric

EM-CM-110a.1 “Gross global Scope 1 emissions, percentage covered under emissions-limiting regulations”.

● Water recycled (total)

This KPI is calculated in line with GCAA Sustainability Guidelines for the monitoring and reporting of water in cement manufacturing. In combination with KPI “Water withdrawal (total, by source)”,

this KPI covers the requirement for reporting according to SASB Standards on “Water Management” metrics EM-CM-140a.1 “(1) Total fresh water withdrawn, (2) percentage recycled, (3) percentage in

regions with High or Extremely High Baseline Water Stress”. For the latter, TITAN sites operating in water stressed areas were identified (73% of cement and grinding plants, 65% of quarries, and

62% of ready mix sites), based on the results of the water risk assessment, made in 2020 with the use of the Aqueduct tool of the World Resources Institute (WRI).

5. Indirect CO₂ emissions are related to emissions released for the production of the electrical energy consumed at TITAN’s facilities. For their calculation, we use emission factors provided by the

supplier of the electrical energy or other publicly available data sources.

6. Biomass rate corresponds to the percentage of total thermal energy consumption that comes from renewable energy sources.

7. Avoided CO2 emissions is the total accumulated quantity for the period between the specific year and the base year which in the case of CO2 emissions is 1990 in accordance to the Kyoto

protocol. The base year performance for specific net direct netdirect CO2 emissions was 778.3kg/tCementitious product, adjusted for the equity of year 2020.

8. Avoided air emissions are the total accumulated quantities (for each specific emission separately) for the period between the specific year and the base year which in the case of air emissions is

2003, the year of publishing the first sustainability report of TITAN Group. The base year performance for specific dust emissions was 370.3g/tClinker, for specific NOx emissions was

2,969.2g/tClinker and for specific SOx emissions was 418.8g/tClinker, adjusted for the equity of year 2020.

9.Avoided natural resources consumption is the total accumulated quantity (for water and raw materials/fuels separately) for the period between the specific year and the base year which in the

case of natural resources is 2003, the year of publishing the first sustainability report of TITAN Group. The base year performance for specific water consumption was 503.9lt/tCement, adjusted for

the equity of year 2020. According to TITAN’s approach, all quantities of alternative raw materials and fuels would, otherwise, have been handled as waste and would have been landfilled, with

subsequent impacts to the local environment, land, water resources, and ecosystems.

10.The definition of Environmental expenditures across all activities is equivalent to the definition of Green Investment. See Notes of sub-section 2.1. Value Creation Core Indicators Index.

11.2019 figures adjusted based on updated information received after the publication of 2019 IAR.

TITAN Cement Group

Integrated Annual Report 2020

2.2.1 TITAN Group Basis for Calculating Environmental Performance Indicators, using the Share of equity

Region Country Activity 2020 2019

USA USA All 100.00% 100.00%

Greece and Western Europe Greece All 100.00% 100.00%

Albania All 100.00% 100.00%

Bulgaria All

100.00% 100.00%

North Macedonia All 100.00% 100.00%

Kosovo All 100.00% 100.00%

Serbia All 100.00% 100.00%

Egypt All 100.00% 100.00%

Adocim all activities 75.00% 75.00%

Marmara grinding plant 100.00% 100.00%

Note

1. The term "share of equity" is used as a "proxy" of the percentage of property share, and only for the above purposes

Southeastern Europe

Eastern Mediterranean

Turkey

ESG performance

review

Management

Report

2.2.2 TITAN Group Quarry Sites with High Biodiversity Value

Site Country Raw Material

use

Location Status Biodiversity

Management

Plan

Notes

Pennsuco

Quarry

USA

Cement &

Aggregates

Miami

Florida

Inside area for protection of

freshwater ecosystems

(wetlands) on local/state

level

YES

According to New Permit (April 2010), Under Lake

Belt Plan -“Restoring Littoral Shelf Areas”.

BMP developed in 2012.

Center Sand

Quarry

USA Aggregates

Clermont,

Florida

Adjacent to area for

preservation of terrestrial

ecosystems on local/state

level

YES

Relocate Gopher Tortoise Protected Species into

new-created Conservation Area - Monitoring

Program ongoing.

BMP developed in 2013.

Corkscrew

Quarry

USA Aggregates

Naples,

Florida

Adjacent to area for

protection of freshwater

ecosystems (wetlands) on

local/state level

YES

Preservation of wetlands from invasive species;

need to adjust BMP as per the GCCA Sustainability

Guidelines for quarry rehabilitation and biodiversity

management.

Zlatna

Panega

Quarry

Bulgaria Cement

Zlatna

Panega

Partly inside NATURA 2000

area for protection of

terrestrial ecosystems (SAC)

YES

Baseline assessment by an "Initial Ecological

Scoping Study" (ATKINS).

A structured BMP was developed in end 2013 acc. to

CSI Guidance; implemented in 2014.

Xilokeratia

Quarry

Greece Cement Milos Island

Inside/adjacent to NATURA

2000 area for protection of

terrestrial and maritime

ecosystems (SAC/SPA)

YES

Apsalos

(West &

East)

Quarries

Greece Cement

Apsalos,

Pella

Inside NATURA 2000 area for

protection of terrestrial

ecosystems (SPA)

Aspra

Homata I + II

Quarries

Greece Cement

Apsalos,

Pella

Inside NATURA 2000 area for

protection of terrestrial

ecosystems (SPA)

Rethimno

Quarry

Greece Aggregates

Rethimno,

Crete Island

Inside area for protection of

terrestrial ecosystems on

national level

YES

Leros Quarry Greece Aggregates Leros Island

Inside area for protection of

terrestrial ecosystems on

national level

YES

Biodiversity Study completed in 2018, followed by

BMP.

Agrinio

Quarry

Greece Aggregates

Agrinio,

Aitoloaka-

rnania

Inside area for protection of

terrestrial ecosystems on

national level

Biodiversity Study ongoing, to complete in 2021.

Biodiversity Studies for the 'baseline' assessment

completed in 2015, followed by BMPs. The Apsalos

and Aspra Homata quarries are covered by the

same biodiversity study and BMP.

YES

Notes

1. The above Table is complementary to the Table 2.2, and in specific for the KPIs:

• Number of active quarries within, containing or adjacent to areas designated for their high biodiversity value.

• Number of quarries with high biodiversity value where biodiversity management plans are actively implemented.

• Percentage of quarries with high biodiversity value where biodiversity management plans are actively implemented.

2. In 2020 an updated biodiversity risk assessment was made for all TITAN Group sites with the use of the Integrated Biodiversity Assessment Tool (IBAT).

Four new sites (three of which under TITAN full management control), in addition to the known cases listed in the above Table, that were recognized from this

high-level assessment as being in proximity to (or part of) areas of high biodiversity value are not disclosed in this list yet, until further assessment of the

biodiversity baseline conditions is completed in 2021, in line with the key principles of the GCCA Sustainability Guidelines for Quarry Rehabilitation and

Biodiversity Management (May 2020).

3. The above Table includes the needed disclosures for supporting TITAN's performance monitoring and reporting according to the sectoral commitments

(GCCA Sustainability Guidelines for Quarry Rehabilitation and Biodiversity Management, May 2020). Also this information for the environmental management

plan(s) concerning Biodiversity in specific, combined with the disclosures under the section 'ESG Performance overview' of this report, cover the requirements

for reporting according to the SASB Standards for 'Biodiversity Impacts' and in more specific the metric EM-CM-160a.1 'Description of environmental

management policies and practices for active sites'.

TITAN Cement Group

Integrated Annual Report 2020

SDGs &

Targets

ESG Performance Indicators 2020 2019 2018 2017 2016 Assurance GCCA UNGC UNCTAD SASB

Health and safety

All activities performance acc. to the TITAN Global Sectoral

Approach, Group total

SDG 3.6

Employee fatalities 1 0 0 0 0 ●●●●

SDG 3.8

Employee fatality rate 1.85 0.00 0.00 0.00 0.00 ●●●●

SDG 4.3

Contractors fatalities 2 0 2 0 0 ●●●●

SDG 8.8

Third-party fatalities 0 0 0 0 1 ●●●●

Employee Lost Time Injuries (LTIs) 6 16 17 27 22 ●●●●

Employee Lost Time Injuries Frequency Rate (LTIFR) 0.57 1.44 1.54 2.41 1.92

●●●●●

Employee lost working days 228 637 615 1,220 897 ●●●

Employee Lost Time Injuries Severity Rate 21.5 57.4 55.7 109.0 78.2 ●●●●

Contractors Lost Time Injuries (LTIs) 10 10 9 7 7 ●●●●

Contractors Lost Time Injuries Frequency Rate (LTIFR) 1.46 1.35 1.12 0.82 0.73

●●●●●

All activities performance leading indicators, Group total

Near misses 3,467 3,746 2,169 1,185 1,304

●●

Training man-hours on health and safety per employee

6.88 14.10 12.98 12.32 12.35 ●●

Training man-hours on health and safety per contractor

10.40 12.34 14.88 11.73 11.54 ●●

Expenditures for Health and Safety (Euros). Group Total

8,501,138 n/a n/a n/a n/a ●●

Cement operations performance acc. to the TITAN Global

Sectoral Approach, Group total

Employee fatalities

0000

●

●●●

Employee fatality rate

0.00

0.00 0.00

0.00

●

●●●

Contractors fatalities

0200

●

●●●

Third-party fatalities

0000

●

●●●

Employee Lost Time Injuries (LTIs)

10 8 16 11

●

●●●

Employee Lost Time Injuries Frequency Rate (LTIFR)

0.33

1.59 1.25 2.41 1.54

●

●●●●

Employee lost working days

176

440 416 1,014 313

●

●●

Employee Lost Time Injuries Severity Rate

29.2

69.9 65.0 152.8 43.8

●

●●●

Contractors Lost Time Injuries (LTIs) 8 8 6 6 2

●

●●●

ESG performance

review

Management

Report

SDGs &

Targets

ESG Performance Indicators

Greece and

Western Europe

USA SEE EM Assurance GCCA UNGC UNCTAD SASB

SDG 3.6

Employee fatalities 0 1 0 0 ●●●

SDG 3.8

Employee fatality rate 0.00 4.28 0.00 0.00 ●●●

SDG 4.3

Contractors fatalities 0 0 1 1 ●●●

SDG 8.6

Third-party fatalities 0 0 0 0 ●●●

SDG 8.8

Employee Lost Time Injuries (LTIs) 1 2 3 0 ●●●

SDG 10.3

Employee Lost Time Injuries Frequency Rate (LTIFR) 0.49 0.39 1.48 0.00

●●●●

Employee lost working days 19 0 209 0 ●●

Employee Lost Time Injuries Severity Rate 9.36 0.00 102.89 0.00 ●●●

Contractors Lost Time Injuries (LTIs) 2 0 5 3 ●●●

Contractors Lost Time Injuries Frequency Rate (LTIFR) 0.00 0.00 9.45 7.97

●●●●

Health and safety data by activity, 2020 Performance

Employee fatalities

●●●

Employee fatality rate 0.00 0.00 6.55 0.00 ●●●

Contractor fatalities 2 0 0 0 ●●●

Third-party fatalities 0 0 0 0 ●●●

Employee Lost Time Injuries (LTIs) 2 0 4 0 ●●●

Employee Lost Time Injuries Frequency Rate (LTIFR) 0.33 0.00 1.21 0.00

●●●●

Employee lost working days 176 0 52 0 ●●

Employee Lost Time Injuries Severity Rate 29.18 0.00 15.70 0.00 ●●●

Contractor Lost Time Injuries (LTIs) 8 0 2 0 ●●●

Contractor Lost Time Injuries Frequency Rate (LTIFR) 1.37 0.00 5.02 0.00

●●●●

Health and safety data by region, 2020 Performance

TITAN Cement Group

Integrated Annual Report 2020

SDGs &

Targets

ESG Performance Indicators 2020 2019 2018 2017 2016 Assurance GCCA UNGC UNCTAD SASB

SDG 5.4

Average employment, Group total

5,363 5,382 5,424 5,552 5,612 ●

SDG 5.4

Number of employees as of 31 December 2020, Group total 5,359 5,400 5,365 5,432 5,482 ●

SDG 8.5

Employee turnover (%), Group average 11.31% 12.33% 11.03% 13.94% 13.57% ●

SDG 8.6

Employees left. Group total 606 666 592 757 744 ●

SDG 8.8

Employee new hires (%), Group average 11.18% 14.24% 10.27% 13.02% 10.40% ●

SDG 10.3

Employee new hires, Group total

599

769

551

707

570

●

New hires per age group ●

Under 30 145 204 157 200 168

Between 30-50 345 417 294 367 282

Over 50 109 148 100 140 120

New hires per gender ●

Females 80 119 77 123 72

Males 519 650 474 584 498

Employment per age group

●

Under 30 362 388 n/a n/a n/a

Between 30-50 2,808 2,896 n/a n/a n/a

Over 50 2,191 2,118 n/a n/a n/a

Employment per type

●

Full time 5,231 5,297 5,342 5,461 5,526

Part Time 48 42 28 35 27

Temporary 80 61 54 56 59

Employment per category

●

Managers 649 641 481 473 464

Senior managers 121 114 121 126 121

Administration/technical 1,459 1,460 1,616 1,654 1,655

Semi skilled/unskilled 3,130 3,185 3,214 3,294 3,372

Employment per gender

●

Females 663 657 641 653 641

Males 4,696 4,743 4,783 4,899 4,971

Share of women in employment, Group average

12.37% 12.17% 11.82% 11.76% 11.42% ●

Share of women in management, Group average

16.49% 15.50% 16.53% 15.69% 16.24% ●●

Share of women in Senior Management, Group average

14.05% 14.91% 19.01% 16.67% 17.69% ●●

Employees from local community, Group average

4,5

83.16% 83.32% 80.79% 80.00% 81.20% ●

Unionized employees, Group total

33.48% 33.85% 30.94% 34.81% 40.93% ●

Employment

ESG performance

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SDGs &

Targets

ESG Performance Indicators 2020 2019 2018 2017 2016 Assurance GCCA UNGC

UNCTAD

SASB

SDG 4.3

Training investment per (trained) employee (euros), Group

average

2,4

●

SDG 4.4

Training investment (euros), Group total

●

SDG 5.1

SDG 5.5

Training investment per gender (euros), Group total

2,4

●

SDG 8.5

Females 112,819 209,268 187,153 191,633 200,687

SDG 10.2

Males 372,512 691,659 848,245 680,359 1,068,723

SDG 10.3

Trained employees, Group total

4,606 4,465 5,064 4,717 4,824 ●

SDG 16.5

Share of trained employees (in total workforce), Group

average

85.95% 82.69% 93.36% 84.96% 85.96% ●

Share of trained female employees (i

n total female

employees). Group average

93.21% 95.13% 97.50% 94.03% 95.63% ●

Trained employees per category, Group total

Managers 651 538 643 595 644

Senior managers 106 133 142 178 130

Administration/technical 1,408 1,824 2,007 1,852 1623

Semi skilled/unskilled 2,441 1,970 2,272 2,092 2427

Trained employees per age group, Group total

●

Under 30 318 461 510 444 432

Between 30-50 2,631 2,644 2,982 2,725 2,867

Over 50 1,657 1,360 1,572 1,548 1,525

Training hours, Group total 79,350 137,272 138,114 155,587 158,210 ●●

●

Average training hours per employee (over the total number

of direct employees), and breakdown per gender, Group

total

14.81 25.42 25.46 28.02 28.19 ●●

●

Average female 18.06 35.32 35.66 37.00 36.00 ●

Average male 14.35 24.05 24.10 27.00 27.00 ●

People Development

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SDGs &

Targets

ESG Performance Indicators 2020 2019 2018 2017 2016 Assurance GCCA UNGC UNCTAD SASB

Training hours per subject, Group total

●

SDG 4.3

Company on-boarding

942 6,414 n/a n/a n/a ●

SDG 4.4

Compliance 6,359 1,191 1,430 308 64 ●

●

SDG 5.1

CSR and Sustainability 525 970 955 211 55 ●

●

SDG 5.5

Digital

2,767 11,767 n/a n/a n/a ●

SDG 8.5

Environment 2,115 3,722 3,136 4,801 3,647 ●

SDG 10.2

Foreign languages 2,837 3,113 3,929 6,772 12,493 ●

SDG 10.3

Functional competence 4,994 3,512 ●

SDG 16.5

Generic competence 2,947 6,302 ●

Health and safety 36,912 76,372 69,591 68,200 69,317 ●

Managerial skills 3,615 10,297 15,223 19,883 23,248 ●

Other 3,620 1,276 2,440 4,716 8,885 ●

Security 586 407 761 754 653 ●

Technical know-how 11,132 11,931 17,497 22,217 21,331 ●

SDG 2.1

Donations (euros), Group total

2,125,725 2,532,248 2,263,920 2,083,370 2,643,703

●●

SDG 2.3

Donations in cash (euros), Group total

1,560,093 2,020,330 1,626,390 1,498,483 1,053,426

●●

SDG 4.3

Donations in kind (euros), Group total

565,633 511,918 637,530 584,887 1,590,278

●●

SDG 4.4 Internships, Group total 251 396 477 910 730 ●

SDG 9.3

New entry level jobs from internships/traineeships, Group

total

15 24 23 24 62 ●

Key operations with Community Engagement Plans related

to material issues and Group policies

2,7

14 of 14 6 of 14 3 of 14 n/a n/a ● ●●

Local Spend (%), Group average

66.95% 65.35% n/a n/a n/a ●●

Notes

23,152 27,725 18,517

General Note for the consolidation of data

Consolidation (aggregation) of data for the above Social Performance Indicators was made with 100.0% contribution for all subsidiaries, where TITAN holds percentage of property share of more than

50.0%, also called share of equity for the purposes of ESG performance statements data consolidation. A detailed list of TITAN Group subsidiaries and TITAN’s share of equity is provided in Table 2.3.1..1.

Notes for the external verification, standards, guidance, and terms used

● Assurance: Specific KPIs denoted in this Table are included in the scope of ERM Certification and Verification Services (ERM CVS) assurance engagement (ERM CVS’ “Independent assurance

statement”).

● Standards: For the reporting standards under TITAN's Global Sectoral Approach, namely the GCCA, UNGC, UNCTAD, and SASB, and connection with the KPIs in this Table, please refer to Table 2.5.

● Guidance: TITAN follows the GCCA Sustainability Framework Guidelines, and the Sustainability Guidelines for the monitoring and reporting of safety in cement and concrete manufacturing (last

edition in February 2020). This document has been agreed within the GCCA to have extended application to concrete and other related activities.

Stakeholder Engagement

General Note for the consolidation of data

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Notes on specific KPIs

1. The KPI was calculated for closing of the reporting period 2020 in accordance with the practice for all Safety data, being the use of "Average Employment" (see Note 3). This is consistent with all

years prior to 2020.

2. Relevant information is not available for the specific years denoted as 'n/a'.

For the definitions related to "Training Investment", "Donations", and "Local Spend", see the terms under the subsection 2.1. Value Creation Core Indicators Index.

In specific for the new KPI ''Expenditures for Health and Safety'': TITAN launched a Group-level approach and methodology for the first time in 2020, following the UNCTAD “Guidance on Core

indicators for entity reporting on the contribution towards the attainment of the Sustainable Development Goals” (2019), and building on bench strength and the technical capacity of internal

systems. The efforts were coordinated by the Group Health & Safety Dpt., and the project was rolled-out in all BUs across the Group with consistent rules. Data collection covered 4 categories of

expenditures: (1) Consumables (PPEs etc.), (2) Training on Occupational H&S, and awareness building, (3) Facilities (spend in infrastructure), and (4) H&S Management. The information was secured

with the use of the Group internal data collection system. Comparable figures for this KPI are not available for years before 2020.

3. The calculation of the"Average Employment" was made according to Belgian Law (sec. 165 XIVB of RD of 30 January 2001).

4. KPIs calculated on the basis of "Average Employment" data for years 2016-2018. As of 2019, the specific KPIs are calculated on the basis of the Number of employees as of 31 December. Figures for

the KPI "Share of trained female employees (in total female employees)" which were calculated above 100% (because of the Turnover for Females, or other reasons) needed to be reported as 100%.

5. Specific information not available for the operations of TITAN in USA. The percentages for the Group Average are calculated excluding the employment of TITAN in USA.

6. Specific information provided by the Adocim BU under confidentiality for the names of employees.

7. The KPI "Key operations with Community Engagement Plans related to material issues and Group policies" was incorporated for the first time in the KPIs Index in this report. In 2020 TITAN

progressed with the recording of all important information about initiatives and actions for community engagement on Group level, across all BUs and in a consistent manner. The BUs were guided

and facilitated to provide their self-assessment for each of the initiatives and actions, and following TITAN's principles and guiding criteria. This work was piloted as a project in 2020 using the

Group internal data collection system. Figures for previous years are in accordance to disclosures inside the TITAN IAR 2019, and TITAN IAR 2018.

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Integrated Annual Report 2020

102

2.4 Governance Core Indicators

SDGs 2030

and targets

Governance Core Indicators Notes Performance 2020 Reporting Standards

Board of Directors

SDG 5.5

Number and percentage of female board

members

Number of females: 3

Contribution to the total: 21%

UNGC & UNCTAD

5.5.2.

Board members by age range

Under 30

Between 30-50

Over 50

Number of independent board members

Number of board meetings and attendance

rate

6 scheduled meetings and 2 unscheduled. The

attendance rate in 7 out of 8 meetings (6 scheduled

and 1 unscheduled) was 100%. In the 2nd unscheduled

meeting, where only the non-executive directors, the

Managing Director and the Chairman of the Group

Executive Committee were invited to participate, the

attendance rate was 10 out of 11.

Number of meetings of audit committee and

attendance rate

5 audit and risk commitee meetings with participation

of all 3 members in 4 meetings and 2 members in one

meeting.

Compensation: total and compensation per

board member and executive

The detailed figures, as compensation for each Board

member, will be provided in the Corporate

Governance Statement for 2020.

Other disclosures related to Governance

Amount of fines paid or payable due to

convictions (in euros)

UNGC, UNCTAD

16.5.2 and SASB

Average number of hours of training on anti-

corruption issues, per year per employee

5 1.19

UNGC and UNCTAD

16.5.2

Notes

Note for the standards, guidance, and terms used

The KPIs referred in ESG Performance Statements as Governance core indicators are in line with the requirements of the UNCTAD Guidance on

reporting of Core Indicators (UNCTAD, 2019), and are connected with the most relevant SDGs and specific Targets for each SDG. Specific KPIs from

this list are also essential to reporting on progress with respect to TITAN Group commitments for the UNGC Ten Principles.

Notes for specific Governance core indicators

1. Number of board meetings during the reporting period and number of Board members who participate at each Board meeting during the reporting

period divided by the total number of directors sitting on the Board multiplied by the number of Board meetings during the reporting period.

2. Number of board meetings during the reporting period and number of Audit committee members who participate at each Audit committee

meeting during the reporting period divided by the total number of members sitting on the Audit committee multiplied by the number of Audit

committee meetings during the reporting period.

3. Total annual compensation (including base salary and variable compensation) for each executive and non-executive director.

4. Total monetary value of paid and payable corruption-related fines imposed by regulators and courts in the reporting period. This disclosure covers

the requirements for reporting according to the SASB Standards for 'Pricing Integrity & Transparency' and in more specific the metric (KPI) EM-CM-

520a.1. 'Total amount of monetary losses as a result of legal proceedings associated with cartel activities, price fixing, and anti-trust activities'.

5. Average number of hours of training in anti-corruption issues per employee per year (as total hours of training in anti-corruption issues in the

reporting period, divided by the total number of trained employees). TITAN categorizes as such training the subjects under the subjects of:

"Compliance" (see Table 2.3, for the KPI "Training hours per subject, Group total"). In more specific the trainings for Group Policies on Human Rights,

Code of Conduct, and other related to areas of anti-corruption and anti-bribery, also grievance mechanisms (TITAN ETHICS POINT), and without

considerinng this list as exhaustive.

SDG 16.7 UNGC

UNGC & UNCTAD

16.6

SDG16.6

SDG16.5

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Table 2.5 TITAN Reporting Standards for the ESG Performance disclosures in 2020

Areas of ESG Performance

GCCA UNGC UNCTAD SASB

Environment (Connection with KPIs in Table 2.2 )

Local Impacts

Impact on natural raw materials recourses

●●

Substitution of natural raw materials by alternative materials (byproducts)

●

●●

Impact on water recourses

●

●●EM-CM-140a.1

Avoided consumption of water

●●

EM-CM-160a.1

EM-CM-160a.2

Air emissions

●

● EM-CM-120a.1

Avoided emissions to air (dust, SOx, and NOx)

●

Management of waste

●●EM-CM-150a.1

Impact on fuels and energy resources

●

●●EM-CM-130a.1

Climate change

Impact on green house gas emissions

● ●●EM-CM-110a.1

Alternative fuels and materials

● ●●

Impact on energy recourses

● ●●

Avoided CO

emissions

●●

Investments for the Enrironment ('Green Investment')

●●

Social (Connection with KPIs in Table 2.3)

Health and safety

● ●●EM-CM-320a.1

Employment

●●

People Development

●●

Stakeholder Engagement

●●

Governance (Connection with disclosures in Table 2.4)

●●EM-CM-520a.1

References to the TITAN Group Global Compact Advanced

Communication on Progress Review (COP)

Connection with disclosures in Table 4 "2020 TITAN Group Global

Compact Advanced Communication on Progress Review (CoP)", and Table

5 "Transparency International - Corruption Perception Index 2020"

● ●●

EM-MM-210a.1

EM-MM-21

0a.2

EM-MM-210a.3

EM-MM-310a.1

EM-MM-310a.2

EM-MM-510a.2

Notes for the standards used

: TITAN follows the GCCA Sustainability Framework Guidelines, and the Sustainability Guidelines for the monitoring and reporting of: safety in

cement and concrete manufacturing, CO₂ emissions from cement manufacturing, co-processing fuels and raw materials, monitoring and reporting of

emissions, monitoring and reporting of water in cement manufacturing, and quarry rehabilitation and biodiversity management (for all documents

the reference is to last edition in 2019 or 2020). The above Guidelines had superseded in 2020 the previous – and respective – Guidelines of the

WBCSD/CSI, which were the guidance for measuring, reporting and verifying environmental performance until (and including) year 2018. For the

Sector standards see details in Table 2.5.1.

: TITAN follows the reporting requirements for meeting the criteria of the UN Global Compact relating to a Communication on Progress (COP)

Advanced Level. See details in Table 4.

TITAN has adopted under its reporting framework the applicable KPIs according to the Guidance of the United Nations – UNCTAD

“Guidance on Core indicators for entity reporting on the contribution towards the attainment of the Sustainable Development Goals” (latest

publication in 2019), as supplementary to the above Reporting Standards S1 and S2.

In 2020, TITAN also incorporated the Sustainability Accounting Standards Board (SASB) Framework in the preparation of non-financial

disclosures, in order to appropriately address the more financially-material ESG issues. The SASB Framework was leveraged for the purpose of

connecting the SASB Materiality Map® with the 2020 Group’s materiality assessment, and allowed the alignment between the Group and its

subsidiaries. In the same direction the Group also started reporting in alignment with the Sustainability Accounting Standard Board (SASB) for the

specific requirements of industries mostly relevant to our operations, namely the Construction Materials industry and the Metals & Mining industry.

Reporting Standards

EM-CM-110a.2

Impact on biodiversity and land stewardship

●

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Integrated Annual Report 2020

104

Table 2.5.1. Sector Standards for the Non-financial disclosures in 2020

Sector Association or Initiative Guidelines and other documents of reference Published

Sustainability Charter

Sustainability Framework Guidelines

Sustainability Guidelines for the monitoring and reporting of safety in cement and concrete manufacturing. This document

has been agreed within the GCCA to have extended application to concrete and other related activities [Pillar 1]

Sustainability Guidelines for the monitoring and reporting of CO

emissions from cement manufacturing [Pillar 2]

Sustainability Guidelines for the monitoring and reporting of water in cement manufacturing [Pillar 4]

Sustainability Guidelines for the monitoring and reporting of emissions from cement manufacturing [Pillar 4]

Sustainability Guidelines for co-processing fuels and raw materials in cement manufacturing [Pillar 5]

Sustainability Guidelines for quarry rehabilitation and biodiversity management [Pillar 4]

Guidelines for Environmental and Social Impact Assessment (ESIA) 2016

Recommended Good Practices for: (a) Contractor Safety, and (b) Driving Safety 2009

GCCA Latest edition in 2019 or 2020

(Previously) WBCSD/CSI

Notes

1. The GCCA has built its Sustainability Charter around five (5) Sustainability Pillars: Pillar 1: Health and Safety, Pillar 2: Climate Change and Energy, Pillar 3: Social Responsibility, Pillar 4:

Environment and Nature and Pillar 5: Circular Economy

2. TITAN was actively participant in five (5) Working Groups under the framework of activities of the GCCA in 2020: WG1. Health and safety in the cement and concrete industries, WG2.

Thought leadership and policy for cement and concrete, WG4. 2050 concrete roadmap, WG5. Innovation in cement and concrete, and WG6. Good practices and benchmarking.

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Policies related to ESG Performance Albania Bulgaria Egypt Greece Kosovo North

Macedonia

Serbia Turkey USA

Human Rights Policy

● ● ●● ● ● ●● ● ● ● ●● ● ● ● ● ● ● ● ●

Anti-bribery and Corruption Policy

● ● ● ● ● ●● ● ●● ●● ● ●● ● ● ● ● ●

People Management Framework

● ●● ● ● ●● ● ● ● ●● ● ● ● ● ●

CSR Policy

● ● ●● ● ● ● ●● ● ●● ● ●● ● ● ● ● ● ● ● ●

Code of Conduct

● ● ●● ● ● ● ●● ● ●● ● ●● ● ●● ●● ● ●

Environmental Policy and Climate Mitigation Strategy

● ● ●● ● ●● ● ●● ● ●● ● ●● ● ●● ● ●● ● ●● ● ●

Occupational Health and Safety Policy

● ● ●● ● ●● ● ●● ● ●● ● ●● ● ●● ● ●● ● ●● ● ●

Confict of Interest Policy

● ● ●● ● ● ● ● ●● ●● ● ●● ● ● ● ●

●

Policy assessment

3. Group Policies and Management Systems Related to ESG Performance

● Policy dissemination (translated and communicated in local languages)

3.1 Group Policies

● ● Policy implementation (training required with high level of coverage for employees)

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Integrated Annual Report 2020

106

Area Albania Bulgaria Egypt Greece Kosovo North Macedonia Serbia Turkey USA

H&S OHSAS 18001

All operations

(except 1

terminal)

ISO 45001

All operations

ISO 45001

All integrated

cement plants

ISO 45001

All operations

(except 2

terminals)

ISO 45001

All operations

ISO 45001

All operations

OHSAS 18001

All operations

OHSAS 18001

(1) integrated

cement plant,

(1) grinding

cement plant

and (1) RMC

unit

All operations

conform with the

regulatory

framework of MSHA

and OSHA

Environment ISO 14001

All operations

(except 1

terminal)

ISO 14001

All operations

ISO 14001

All integrated

cement plants

ISO 14001

All operations

(except 2

terminals)

ISO 14001

All operations

ISO 14001

All operations

ISO 14001

All operations

ISO 14001

(1) integrated

cement plant,

(1) grinding

cement plant

and (1) RMC

unit

All operations

conform with the

regulatory

framework of EPA

Quality ISO 9001

All operations

ISO 9001

All operations

ISO 9001

All integrated

cement plants

ISO 9001

All operations

ISO 9001

All operations

ISO 9001

All operations

ISO 9001

All operations

ISO 9001

All operations

(except 1

terminal)

Quality ASHTO

All operations

Energy ISO 50001

All RMC units

Energy audits

(1) integrated

cement plant

ISO 50001

All integrated

cement plants,

Energy audits

All RMC units

All aggregates

quarries

ISO 50001

All integrated

cement plants

(3) quarries for

cement raw

materials

(1) RMC unit

ISO 50001

All integrated

cement plants

Social GHRMS/SF and SA

8000

All operations

GHRMS/SF

All operations

GHRMS/SF

All operations

GHRMS/SF

All operations

GHRMS/SF and

SA 8000

All operations

GHRMS/SF

All operations

GHRMS/SF

All operations

GHRMS/SF

All operations

GHRMS/SF

All operations

3.2 Group Management Systems

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Scope Principle Criteria for GC Advanced Level TITAN Approach TITAN Reference

Human Rights

Management

Policies &

Procedure

Principle 1

Businesses should

support and respect

the protection of

internationally

proclaimed human

rights

Principle 2

Businesses should

make sure they are

not complicit in

human rights abuse

Criterion 3

The CoP describes robust

commitments, strategies or

policies in the area of human

rights

Criterion 4

The CoP describes effective

management systems to

integrate the human rights

principles

Criterion 5

The CoP describes effective

monitoring and evaluation

mechanisms of human rights

integratio

TITAN’s Human Rights Policy

(updated in 2020) is in line with the

UN Guiding Principles on Business

and Human Rights (2011). The policy

explicitly addresses the provisions of

the International Bill of Human Rights

(consisting, in addition to the

Universal Declaration of Human

Rights), of the International Covenant

on Economic, Social and Cultural

Rights) and the principles concerning

fundamental rights set out in the

International Labor Organization’s

Declaration on Fundamental

Principles and Rights at Work.

We set targets to improve

continuously our performance

particularly in the areas identified

and prioritized as more material for

our stakeholders.

IAR 2020

Understanding TITAN and Management report. In specific: Message from the Chairman

of the BoD, Message from the Chairman of the Group Executive Committee, Corporate

governance and risk management, ESG performance overview, and ESG performance

statements: Table 1, Table 2.2, Table 2.3, Table 3.1, and Table 3.2.

Additional Notes to the ESG performance statements:

1. TITAN received no fines for non-compliance with human rights-related laws and

regulations in 2020.

2. Unions, where established, operate freely according to each country’s laws and

regulations.

3. Sustainability clauses referring to respect of human rights are included in all tenders

for global suppliers and contracts for local suppliers.

4. Security is fundamental for a safe working environment, protection of assets and

intellectual property. Third parties providing or interested to provide security services

must ensure that their employees are trained appropriately and respect the international

standards and principles.

5. A Group-level grievance mechanism is in place to facilitate reporting of potential

violations of Group Code of Conduct and respective policies.

6. All operations certified according to ISO 14001 and ISO 9001 (see Table 3.2) apply

mechanisms to record feedback and complaints by key external stakeholders.

TITAN Website: Sustainability, and Corporate Governance/Group Policies

4. 2020 TITAN Group Global Compact Advanced Communication on Progress Review (CoP)

The contents of TITAN Group 2020 Integrated Annual Report also serve as a progress report on implementation of the ten principles of the UN Global Compact and the Sustainable Development Goals.

Since 2015, TITAN communicates performance to stakeholders also aligned with SDGs 2030 and key performance indicators in the ESG Performance statements are accordingly to codified serve

understanding of TITAN’s contribution to sustainable development.

Implementing

the Ten

Principles into

Strategies and

Operations

Criterion 1

The CoP describes

mainstreaming into

corporate functions and

business units

Criterion 2

The CoP describes value

chain implementation

TITAN’s commitment to responsible

business is embedded into governing

objective and business practice,

articulated in TITAN’s Code of

Conduct and Group Policies for

Human Rights, Occupational Health

and Safety, Environmental Policy and

Climate Mitigation Strategy, Anti-

Corruption and Bribery

IAR 2020

Understanding TITAN and Management report. In specific: Message from the Chairman

of the BoD, Message from the Chairman of the Group Executive Committee, Corporate

governance and risk management, ESG performance overview, and ESG performance

statements: Table 1, Table 2.1, Table 2.1.1, Table 2.2, Table 2.3, Table 2.5, Table 3.1 , and

Table 3.2.