Arabian Cement Company · EGX:ARCC
Arabian Cement — 9M 2017 Earnings Presentation
21 slides from Arabian Cement's earnings presentation, 2017
Slide 1: Arabian Cement Company 9M 2017 Investors Presentation
Arabian Cement Company 9M 2017 Investors Presentation
Slide 2: Highlights
Highlights USD Debt reduced EGP 362 MM from 44 mm USD to EBITDA 34.6 mm USD in 02 03 9M17 3.0 MM tons Sales 39% increase in cost/ton EGP 459 01 04 06 82.0% 05 7.7 % 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- 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 9M 2017 Arabian Cement distributed 9M 2017 Distribution through direct Ex-Factory sales and Delivery. 9M17 41% 59% Delivered Ex-Factory Express Wassal ▪ Express Wassal is a full transportation service for bulk and/or bagged products provided by
Slide 10: Period Highlights: Main Highlights
Period Highlights Main Highlights Economy Production Energy • By the end of 2016, Egypt has floated its • ACC produced 2,578K T of clinker in 9M • The fuel mix in 9M 2017 was 76% Coal, 12% currency in a move that has reduced its value 2017 compared to 2,591K Tat the same period Alternative Fuel and
Slide 11: Period Highlights (continued): Main KPIs
Period Highlights (continued) Main KPIs Clinker Production (MN MT) and Utilization Rates Cement Production and Utilization Rates 2.67 2.59 2.58 3.20 3.07 2.94 2.97 1.95 85% 82% 82% 82% 62% 78% 85% 79% 9M14 9M15 9M16 9M17 9M14 9M15 9M16 9M17 Clinker Production Clinker Utilization Rate Cement Producti
Slide 12: Egyptian Cement Market: Demand and Supply Synopsis
Egyptian Cement Market Demand and Supply Synopsis Domestic Consumption (MMT) Egyptian Market Overview 56.5 •The market is driven by local consumption, which has decreased by 6% over the 9M period. Volumes are expected 53.9 54.0 to go up in the coming period as demand is getting higher. Some investme
Slide 13: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Brand 9M17 9M16 618 597 618 555 560 17% 15% 499 430 5% 1% 9% 13% 70% 78% 0 89% 88% Al Mosalah Al Tahrir Al Nasr Bulk Al Mosalah Al Tahrir Al Nasr Bulk 9M17 9M16 Breakdown by Type 618 9M17 9M16 560 556 499 5% 3% 17
Slide 14: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Point of Sale 9M16 639 9M17 587 565 41% 533 45% 59% 55% 9M17 9M16 Delivered Ex-Factory Delivered Ex-Factory Breakdown by Market 9M17 9M16 611 586 547 9.5% 0.1% 90.5% 99.9% 0 9M17 9M16 Local Exports Local Exports 1
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 9M17 9M16 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) 192 4,254 413 156 68 27 135 182 822 890 1,559 2006-2008 2009 2010 2011 2012 2013 2014 2015 2016 9M17 Total - CAPEX in 9M2017 increased by 192 mm EGP which is mainly coming from the construction of the New Coal mill. 16
Slide 17: Debt: Outstanding Debt & Debt Structure
Debt Outstanding Debt & Debt Structure Outstanding Debt (Thousand EGP) Interest Coverage Ratio 1,485 4 1,191 1,180 1,078 3 970 2 2 592 195 146 2013 2014 2015 2016 2017 2018 2019 2020 9M14 9M15 9M16 9M17 Debt in EGP increased due to the flotation, however in USD terms during 9M17 the debt was reduced
Slide 18: 9M17 Financials Review: Income Statement
9M17 Financials Review Income Statement Revenues (Thousand EGP) 9M14 9M15 9M16 9M17 1,847 Revenue 1,788 1,711 1,613 1,847 1,788 1,711 Growth 17% -4% -6% 15% 1,613 Cost of goods sold 1,083 1,105 969 1394 Gross profit 706 605 643 453 9M14 9M15 9M16 9M17 GPM 39% 35% 40% 25% GP, EBITDA & Net Profit (Tho
Slide 19: 9M17 Financials Review: Balance Sheet
9M17 Financials Review Balance Sheet 9M14 9M15 9M16 9M17 Gearing Assets Non-current Assets Property plant and equipment, net 2,696 2,570 2,447 2,727 1.6 Projects under construction 67 116 122 201 1.4 Intagible assets 137 115 92 70 Investment in subsidiaries 9 9 21 38 Payments under long-term investm
Slide 20: 9M17 Financials Review: Cash Flow Statement
9M17 Financials Review Cash Flow Statement MN EGP 9M14 9M15 9M16 9M17 Cash (EGP mn) Cash flows from operating activities Net profit before tax 386 278 213 141 Interest income -0.5 -2 -7 -4 Interest expense 71 68 65 79 289 Depreciation expense 125 130 140 159 Amortization of intangible assets 17 17 1
Slide 21: Future Ready
Future Ready For more Information Please Contact: Investor Relations: [email protected] www.arabiancementcompany.com
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