Arabian Cement Company · EGX:ARCC
Arabian Cement — Q3 2018 Earnings Presentation
20 slides from Arabian Cement's earnings presentation, 2018
Slide 1: Arabian Cement Company 3Q 2018 Investors Presentation
Arabian Cement Company 3Q 2018 Investors Presentation
Slide 2: Highlights
Highlights USD Debt reduced from 31 mm USD to EGP 516 MM 25 mm USD in EBITDA 9M18 02 03 3.3 MM tons Sales 16% increase in cost/ton EGP 531 01 04 97% 06 05 26% Clinker Utilization Gross Profit Margin 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 9M 2018 Arabian Cement distributed 9M 2018 Distribution through direct Ex-Factory sales and Delivery. 36% 64% Delivered Ex-Factory Express Wassal ▪ Express Wassal is a full transportation service for bulk and/or bagged products provided by the D
Slide 10: Period Highlights: Main Highlights
Period Highlights Main Highlights Economy Production Energy • By the end of 2016, Egypt has floated its • ACC produced 3.039K T of clinker in 9M • ACC was able to have the minimal currency in a move that has reduced its value 2018 compared to 2.578K T in the same contribution of diesel in 9M2018 fue
Slide 11: Period Highlights (continued): Main KPIs
Period Highlights (continued) Main KPIs Clinker Production (MN MT) and Utilization Rates Cement Production and Utilization Rates 3.60 200% 3.20 3.07 3.21 3.04 2.97 3.00 2.67 2.59 2.58 150% 2.40 97% 1.80 85% 82% 82% 100% 1.20 85% 79% 82% 86% 50% 0.60 - 0% 9M15 9M16 9M17 9M18 9M15 9M16 9M17 9M18 Clink
Slide 12: Egyptian Cement Market: Demand and Supply Synopsis
Egyptian Cement Market Demand and Supply Synopsis Domestic Consumption (MMT) Egyptian Market Overview •The Egyptian market consumption for 9M2018 is almost as 42,034 that of the same period last year. According to our expectations, the market will likely to remain flat y-o-y or 1% 39,213 lower and c
Slide 13: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Brand 9M18 718 754 1% 9M17 699 618 618 560 530 19% 5% 17% 9% 12% 13% 69% 70% 0 89% 88% Al Mosalah Al Nasr Bulk Clinker Al Mosalah Al Nasr Bulk Clinker 9M18 9M17 Breakdown by Type 9M18 9M17 699 723 1% 618 560 530 5
Slide 14: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Point of Sale 9M18 9M17 774 685 639 587 36% 41% 59% 64% Delivered Ex-Factory Delivered Ex-Factory 9M18 9M17 Breakdown by Market 9M18 9M17 740 611 586 550 11.6% 9.5% 88.4% 90.5% Local Exports Local Exports 9M18 9M1
Slide 15: COGS Overview
COGS Overview COGS and ACC Cost Advantages COGS Breakdown ACC Cost Advantages 9M18 9M17 ▪ ACC is always working on controlling its cash cost/ton. After the operation 0% of our second coal mill in 2Q2018, the company was able to get rid of the diesel input, depending only on coal and RDF. We achieved
Slide 16: Debt: Outstanding Debt & Debt Structure
Debt Outstanding Debt & Debt Structure Outstanding Debt (million EGP) Interest Coverage Ratio 1,251 4 1,027 3 847 2 783 2 550 423 2015 2016 2017 2018 2019 2020 9M15 9M16 9M17 9M18 Debt Structure (EGP vs. USD) 9M18 9M17 49% 51% 51% 49% Debt in USD Debt in EGP 17
Slide 17: 9M18 Financials Review: Income Statement
9M18 Financials Review Income Statement 9M15 9M16 9M17 9M18 Revenues (Thousand EGP) 2,369 Revenue 1,711 1,613 1,847 2,369 1,711 1,847 1,613 Growth -4% -6% 15% 28% Cost of goods sold 1,105 969 1394 1756 Gross profit 605 643 453 613 9M15 9M16 9M17 9M18 GPM 35% 40% 25% 26% GP, EBITDA & Net Profit (Thou
Slide 18: 9M18 Financials Review: Balance Sheet
9M18 Financials Review Balance Sheet 9M15 9M16 9M17 9M18 Gearing Assets Non-current Assets Property plant and equipment, net 2,570 2,447 2,727 2,501 2.1 Projects under construction 116 122 201 86 Intagible assets 115 92 70 358 Investment in subsidiaries 9 21 38 38 Payments under long-term investment
Slide 19: 9M18 Financials Review: Cash Flow Statement
9M18 Financials Review Cash Flow Statement MN EGP 9M15 9M16 9M17 9M18 Cash flows from operating activities Cash (EGP mn) Net profit before tax 278 213 141 257 Interest income -2 -7 -4 -1 Interest expense 68 65 79 71 Depreciation expense 130 140 159 145 289 Amortization of intangible assets 17 17 17
Slide 20: Future Ready
Future Ready For more Information Please Contact: Investor Relations: [email protected] www.arabiancementcompany.com
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