Arabian Cement Company · EGX:ARCC

Arabian Cement — Q1 2018 Earnings Presentation

20 slides from Arabian Cement's earnings presentation, 2018

  1. Slide 1: Arabian Cement Company 1Q 2018 Investors Presentation

    Arabian Cement Company 1Q 2018 Investors Presentation

  2. Slide 2: Highlights

    Highlights USD Debt reduced from 31 mm USD to EGP 270 MM 29 mm USD in EBITDA 1Q18 02 03 1.21 MM tons Sales 10% increase in cost/ton EGP 487 01 04 96% 06 05 8.0 % Clinker Utilization Market Share 2

  3. Slide 3: Contents

    Contents • Introduction to ACC………………………………………………………………………………………………………….4 • Period Highlights ……………………………………...…………………………………………………………………….10 • Egyptian Cement Market ……………………………………………………………………….........……………………...12 • Sales Overview ………………………………………………………………………………………………………….…....13 • COGS Overview ………

  4. Slide 4: Introduction to ACC

    Introduction to ACC ACC in a Snapshot Investment Highlights  The company operations started in 2008 and ACC is currently a leading cement producer. Majority owned by Cementos La Union (“CLU”), a Spanish cement player with operations in several countries such as Chile and Congo.  ACC has two produc

  5. Slide 5: Corporate Evolution

    Introduction to ACC Corporate Evolution ACC has now a Arabian Cement Contract signed January: Clinker kiln June: Line II second 5.0 Mmtpa 2013 Company founded with FL Smidth capacity upgraded to cement mill starts cement Line I coal RDF by a group of for Line I (clinker) 6,600 tpd production product

  6. Slide 6: Plant Information

    Introduction to ACC Plant Information •One raw materials vertical grinding mill (520 tph) •Five stage pre-heater, kiln and cooler system (capable of producing between 6,600-7,000 tpd each) •One clinker silo (35,000 tons) •Two horizontal cement mills (190 tph) •Two cement silos (16,000 tons each) •Pa

  7. Slide 7: Executive Management Team

    Introduction to ACC Executive Management Team Sergio Alcantarilla Chief Executive Officer Mr. Alcantarilla is graduated from the Superior Industrial Engineering School in the University of Seville (Spain). He spent some time sharing his studies and Final Project, passed with Cum Laude, with works in

  8. Slide 8: Our Strategy

    Introduction to ACC Our Strategy Medium Term Strategy Long Term Strategy 3- Vertical Expansion: 4- Cost saving strategy • Andalus Ready Mix • RDF Plants 2- Continue to Pay a Healthy Dividend 1- Position ACC Stream While Among the Top Brands Optimizing Capital in the Market and Structure Command a Pr

  9. Slide 9: Distribution Network Overview

    Introduction to ACC Distribution Network Overview  In Q1 2018 Arabian Cement distributed 1Q 2018 Distribution through direct Ex-Factory sales and Delivery. 32% 68% Express Wassal Delivered Ex-Factory  Express Wassal is a full transportation service for bulk and/or bagged products provided by the D

  10. Slide 10: Period Highlights: Main Highlights

    Period Highlights Main Highlights Economy Production Energy • By the end of 2016, Egypt has floated its • ACC produced 1,011K T of clinker in Q1 2018 • The fuel mix in 1Q18 was 80% Coal, 14% currency in a move that has reduced its value compared to 898K T in the same period the Alternative Fuel and

  11. Slide 11: Period Highlights (continued): Main KPIs

    Period Highlights (continued) Main KPIs Clinker Production (MN MT) and Utilization Rates Cement Production and Utilization Rates 1.02 1.01 200% 1.14 1.14 1.07 1.00 180% 1.02 0.98 160% 0.95 140% 97% 0.96 0.94 91% 87% 0.94 120% 81% 100% 0.92 91% 0.90 80% 0.90 90% 96% 60% 0.88 85% 40% 0.86 20% 0.84 0%

  12. Slide 12: Egyptian Cement Market: Demand and Supply Synopsis

    Egyptian Cement Market Demand and Supply Synopsis Domestic Consumption (MMT) Egyptian Market Overview 15,071 • By the end of 2018, the Egyptian cement market is expected to have a real capacity of 65.3 mn tons. Consumption will predictably grow by 5% y-o-y to reach 57.2 mn tons. It’s clear that the

  13. Slide 13: Sales Overview: Quantities Breakdown

    Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Brand 1Q 17 799 1Q 18 742 692 610 606 5% 530 557 9%21% 21% 1% 12% 12% 66% 68% 0 89% 88% Al Mosalah Al Nasr Clinker Bulk Al Mosalah AL Nasr Clinker Bulk 1Q17 1Q 18 Breakdown by Type 1Q 18 1Q 17 751 692 1% 609 5% 3%

  14. Slide 14: Sales Overview: Quantities Breakdown

    Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Point of Sale 809 1Q 18 1Q 17 702 625 581 32% 39% 61% 68% 1Q17 1Q 18 Delivered Ex-Factory Delivered Ex-Factory Breakdown by Market 763 1Q 18 1Q17 597 605 11% 13% 518 89% 87% 1Q17 1Q 18 Local Exports Local Exports

  15. Slide 15: COGS Overview: COGS and ACC Cost Advantages

    COGS Overview COGS and ACC Cost Advantages COGS Breakdown ACC Cost Advantages  ACC is showing a good progress in its production cost saving projects. Our 1Q18 1Q17 second coal mill is now ready for operation in 2Q 2018. This will enable the company to compose its fuel mix from coal and RDF only get

  16. Slide 16: Debt: Outstanding Debt & Debt Structure

    Debt Outstanding Debt & Debt Structure Outstanding Debt (Thousand EGP) Interest Coverage Ratio 1,485 7 1,191 1,180 1,078 1,028 747 3 458 2 260 2 2013 2014 2015 2016 2017 2018 2019 2020 Q1 15 Q1 16 Q1 17 Q1 18 Debt Structure (EGP vs. USD) 1Q18 1Q17 32% 47% 53% 68% Loans in USD Loans in EGP 16

  17. Slide 17: 1Q18 Financials Review: Income Statement

    1Q18 Financials Review Income Statement Revenues (Thousand EGP) MN EGP Q1 15 Q1 16 Q1 17 Q1 18 890 Revenue 585 536 668 890 585 668 536 Cost of goods sold 377 327 492 589 Gross profit 208 210 175 301 GPM 36% 39% 26% 34% Q1 15 Q1 16 Q1 17 Q1 18 SG&A Expenses 24 19 28 31 GP and EBITDA (Thousand EGP) EB

  18. Slide 18: 1Q18 Financials Review: Balance Sheet

    1Q18 Financials Review Balance Sheet MN EGP Q1 15 Q1 16 Q1 17 Q1 18 Gearing Assets Non-current Assets Property plant and equipment, net 2,639 2,494 2,829 2,319 7.8 Projects under construction 97 128 60 284 Intagible assets 126 104 81 384 6.0 Investment in subsidiaries 9 21 21 37 5.4 Payments under l

  19. Slide 19: 1Q18 Financials Review: Cash Flow Statement

    1Q18 Financials Review Cash Flow Statement MN EGP Q1 14 Q1 15 Q1 16 Q1 17 Q1 18 Cash (EGP mn) Cash flows from operating activities Net profit before tax 155.0 86.0 46.0 74.3 195.7 338 Interest income 23.0 19.0 -0.7 -0.2 -0.2 Interest expense -0.1 -0.2 20.2 23.7 21.5 Depreciation expense 41.0 43.0 43

  20. Slide 20: Future Ready

    Future Ready For more Information Please Contact: Investor Relations: [email protected] www.arabiancementcompany.com

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