Arabian Cement Company · EGX:ARCC
Arabian Cement — FY2017 Earnings Presentation
21 slides from Arabian Cement's earnings presentation, 2018
Slide 1: Arabian Cement Company FY 2017 Investors Presentation
Arabian Cement Company FY 2017 Investors Presentation
Slide 2: Highlights
Highlights USD Debt reduced EGP 507 MM from 43 mm USD to EBITDA 31 mm USD in 2017 02 03 4,11 MM tons Sales 39% upsurge in cost/ton EGP 470 01 04 82% 06 05 6.9% 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 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
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- 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
Slide 9: Distribution Network Overview
Introduction to ACC Distribution Network Overview In FY2017 Arabian Cement distributed FY 2017 Distribution through direct Ex-Factory sales and Delivery. 42% 58% Delivered Ex-Works Express Wassal Express Wassal is a full transportation service for bulk and/or bagged products provided by the Deli
Slide 10: Period Highlights: Main Highlights
Period Highlights Main Highlights Economy Production Energy • By the end of 2016, Egypt has floated its • ACC produced 3,434K T of clinker in FY • The fuel mix in FY 2017 was 78% Coal, 11% currency in a move that has reduced its value 2017 compared to 3,620K T in FY 2016. Alternative Fuel and 11% Di
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 3.53 3.62 200% 4.16 4.26 4.14 3.43 180% 4.02 3.50 160% 3.00 2.61 140% 2.50 120% 2.00 84% 86% 100% 82% 1.50 80% 60% 89% 91% 86% 88% 1.00 62% 40% 0.50 20% - 0% FY14 FY1
Slide 12: Egyptian Cement Market: Demand and Supply Synopsis
Egyptian Cement Market Demand and Supply Synopsis Domestic Consumption (MMT) Egyptian Market Overview 56.8 •The market is driven by local consumption, which has decreased by 4% y-o-y. Volumes are expected to go up in the coming period as demand is getting higher as well as prices. 53.9 Some investme
Slide 13: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Brand FY17 FY16 645 611 633 564 566 5% 19% 16% 515 9% 429 8% 1% 15% 67% 75% 89% 0 88% Al Mosalah Al Nasr Al Tahrir Bulk Al Mosalah Al Tahrir AL Nasr Bulk FY16 FY17 Breakdown by Type FY17 FY16 636 576 566 3% 515 5%
Slide 14: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Point of Sale 656 FY17 FY16 602 587 42% 549 45% 58% 55% FY16 FY17 Delivered Ex-Factory Delivered Ex-Factory Breakdown by Market FY17 FY16 628 1% 10% 589 582 566 90% 99% FY16 FY17 Local Exports Local Exports 14
Slide 15: COGS Overview
COGS Overview COGS and ACC Cost Advantages COGS Breakdown ACC Cost Advantages ACC started its production cost saving projects that include a second coal FY17 FY16 mill. This will enable the company to compose its fuel mix from coal and RDF only getting rid of diesel as it is getting more expensive
Slide 16: CAPEX Overview
CAPEX Overview CAPEX (MN EGP) 273 4,160 67 52 152 135 182 27 822 890 1,559 2006-2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total - Total CAPEX for 2017 is higher than normal due to the implementation of our cost savings projects (Second Coal mill mainly). 16
Slide 17: Debt: Outstanding Debt & Debt Structure
Debt Outstanding Debt & Debt Structure Outstanding Debt (Thousand EGP) Interest Coverage Ratio 1,485 4 4 4 1,191 1,180 3 1,078 976 752 447 250 2013 2014 2015 2016 2017 2018 2019 2020 FY14 FY15 FY16 FY17 Debt Structure (EGP vs. USD) FY17 FY16 34% 50% 50% 66% Loans in USD Loans in EGP 17
Slide 18: FY17 Financials Review: Income Statement
FY17 Financials Review Income Statement MN EGP FY14 FY15 FY16 FY17 Revenues (Thousand EGP) Revenue 2,499 2,236 2,287 2,567 2,499 2,567 Cost of goods sold 1,559 1,466 1,368 1,933 2,236 2,287 Gross profit 940 770 920 634 GPM 38% 34% 40% 25% SG&A Expenses 106 93 99 127 FY14 FY15 FY16 FY17 EBITDA 833 67
Slide 19: FY17 Financials Review: Balance Sheet
FY17 Financials Review Balance Sheet MN EGP FY14 FY15 FY16 FY17 Gearing Assets Non-current Assets 2.3 Property plant and equipment, net 2,665 2,534 2,877 2,356 Projects under construction 98 125 18 249 Intagible assets 132 109 87 396 Investment in subsidiaries 9 21 21 38 Payments under long-term inv
Slide 20: FY17 Financials Review: Cash Flow Statement
FY17 Financials Review Cash Flow Statement MN EGP FY14 FY15 FY16 FY17 Cash (EGP mn) Cash flows from operating activities Net profit before tax 522.0 339.0 370.0 194.1 Interest income -1.0 -3.0 -7.0 -4.6 365 Interest expense 95.0 131.0 -39.6 -9.2 Depreciation expense 168.0 174.0 182.0 184.0 Amortizat
Slide 21: Future Ready
Future Ready For more Information Please Contact: Investor Relations: [email protected] www.arabiancementcompany.com
Arabian Cement Company — FY2017 Earnings Presentation on 6ix