Arabian Cement Company · EGX:ARCC
Arabian Cement — FY2016 Earnings Presentation
21 slides from Arabian Cement's earnings presentation, 2017
Slide 1: Arabian Cement Company FY 2016 Investors Presentation
Arabian Cement Company FY 2016 Investors Presentation
Slide 2: Highlights
Highlights USD Debt reduced EGP 820 MM from 65 mm USD to EBITDA 44 mm USD in 2016 02 03 4.04 MM tons 1% Sales Reduction in cost/ton EGP 339 01 04 86% 06 05 7.1% Clinker Utilization Market Share 2
Slide 3: Contents
Contents • Introduction to ACC………………………………………………………………………………………………………….4 • Period Highlights ……………………………………...…………………………………………………………………….10 • Egyptian Cement Market ……………………………………………………………………….........……………………...12 • Sales Overview ………………………………………………………………………………………………………….…....13 • COGS Overview ………
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
Slide 5: Corporate Evolution
Introduction to ACC Corporate Evolution Arabian Cement Contract signed with January: Clinker kiln June: Line II second ACC has now a 5.0 2013 Company founded by a FL Smidth for Line I capacity upgraded to cement mill starts Mmtpa cement Line I coal RDF group of Egyptian (clinker) 6,600 tpd productio
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
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
Slide 8: Our Strategy
Introduction to ACC Our Strategy Medium Term Strategy Long Term Strategy 3- Vertical Expansion: 4- Expanding production in • Andalus Ready Mix Egypt or abroad • RDF Plants 2- Continue to Pay a Healthy Dividend 1- Position ACC Stream While Among the Top Brands Optimizing Capital in the Market and Str
Slide 9: Distribution Network Overview
Introduction to ACC Distribution Network Overview In FY2016 Arabian Cement distributed FY 2016 Distribution through direct Ex-Factory sales and Delivery. 46% 54% Delivered Ex-Works Express Wassal Express Wassal is a full transportation service for bulk and/or bagged products provided by the Ex-W
Slide 10: Period Highlights: Main Highlights
Period Highlights Main Highlights Economy Production Energy • Egypt has floated its currency in a move that has reduced its value by about 50% against • ACC produced 3.62 MT of clinker in FY • ACC was able to run its maximum coal the dollar. 2016 compared to 3.53 MT at the same capacity for both lin
Slide 11: Period Highlights (continued): Main KPIs
Period Highlights (continued) Main KPIs Clinker Production (MN MT) and Utilization Rates Cement Production and Utilization Rates 4.00 3.5 3.6 140% 5.00 4.3 98% 3.2 4.0 4.2 4.0 3.50 120% 4.00 3.00 2.6 84% 91% 86% 100% 89% 91% 2.50 77% 3.00 80% 2.00 85% 86% 60% 2.00 1.50 62% 84% 40% 1.00 1.00 0.50 20%
Slide 12: Egyptian Cement Market: Demand and Supply Synopsis
Egyptian Cement Market Demand and Supply Synopsis Domestic Consumption (MMT) Egyptian Market Overview •The market is driven by local consumption, which has been relatively increasing over 56.8 the past few years despite economic unrest. •Egypt current installed capacity is 70 mm tons cement and the
Slide 13: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Brand FY15 611 FY16 574 607 599 581 515 16% 8% 429 5% 9% 7% 8% 1% 75% 0 85% 89% 88% Al Mosalah Al Nasr Al Tahrir Bulk Al Mosalah Al Tahrir AL Nasr Bulk FY16 FY15 Breakdown by Type FY16 FY15 606 8% 576 581 5% 16% 3
Slide 14: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Point of Sale FY16 FY15 621 587 592 46% 45% 549 55% 55% Delivered Ex-Factory FY16 FY15 Delivered Ex-Factory Breakdown by Market 605 FY16 FY15 582 1% 1% 566 532 99% 99% FY16 FY15 Local Exports Local Exports 14
Slide 15: COGS Overview
COGS Overview COGS and ACC Cost Advantages COGS Breakdown ACC Cost Advantages ACC moved ahead of other industry players with embarking on alternative energy investments with aims to offer the ability to substitute up to 100% of its energy needs. FY16 FY15 RDF: - The Company started using RDF in
Slide 16: CAPEX Overview
CAPEX Overview CAPEX (MN EGP) 67 68 3,904 152 135 182 27 822 890 1,559 2006-2008 2009 2010 2011 2012 2013 2014 2015 FY16 Total - Total CAPEX for 2016 is around the same as 2015 which is mainly maintenance CAPEX. 16
Slide 17: Debt: Outstanding Debt & Debt Structure
Debt Outstanding Debt & Debt Structure Outstanding Debt (Thousand EGP) Interest Coverage Ratio 1,485 4 4 1,191 1,180 4 1,078 1,028 3 834 403 10 2013 2014 2015 2016 2017 2018 2019 2020 FY13 FY14 FY15 FY16 Debt in EGP increased due to the flotation, however in USD terms during 2016 the debt was reduce
Slide 18: FY16 Financials Review: Income Statement
FY16 Financials Review Income Statement MN EGP FY13 FY14 FY15 FY16 Revenues (Thousand EGP) Revenue 2,063 2,499 2,236 2,287 2,499 2,236 2,287 Cost of goods sold 1,190 1,559 1,466 1,368 2,063 Gross profit 874 940 770 920 GPM 42% 38% 34% 40% FY13 FY14 FY15 FY16 SG&A Expenses 67 106 93 99 EBITDA 806 833
Slide 19: FY16 Financials Review: Balance Sheet
FY16 Financials Review Balance Sheet MN EGP FY13 FY14 FY15 FY16 Assets Gearing Non-current Assets Property plant and equipment, net 2,647 2,665 2,534 2,877 Projects under construction 138 98 125 18 Intangible assets 1.8 154 132 109 87 Investment in subsidiaries 9 9 21 21 Payments under long-term inv
Slide 20: FY16 Financials Review: Cash Flow Statement
FY16 Financials Review Cash Flow Statement MN EGP FY13 FY14 FY15 FY16 Cash flows from operating activities Cash (EGP mn) Net profit before tax 439.0 522.0 339.0 370.0 Interest income -1.0 -1.0 -3.0 -7.0 364.8 Interest expense 120.0 95.0 131.0 7.0 Depreciation expense 165.0 168.0 174.0 182.0 Amortiza
Slide 21: Future Ready
Future Ready For more Information Please Contact: Investor Relations: [email protected] www.arabiancementcompany.com
Arabian Cement Company — FY2016 Earnings Presentation on 6ix