Arabian Cement Company · EGX:ARCC
Arabian Cement — H1 2017 Earnings Presentation
21 slides from Arabian Cement's earnings presentation, 2017
Slide 1: Arabian Cement Company 2Q 2017 Investors Presentation
Arabian Cement Company 2Q 2017 Investors Presentation
Slide 2: Highlights
Highlights USD Debt reduced EGP 227 MM from 44 mm USD to EBITDA 40 mm USD in 02 03 1H17 2.0 MM tons Sales 43% increase in cost/ton EGP 452 01 04 06 80.5% 05 7.2 % 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 1H 2017 Arabian Cement distributed 1H 2017 Distribution through direct Ex-Factory sales and Delivery. 40% 60% Delivered Ex-Factory Express Wassal Express Wassal is a full transportation service for bulk and/or bagged products provided by the E
Slide 10: Period Highlights: Main Highlights
Period Highlights Main Highlights Economy Production Energy • By the end of 2016, Egypt has floated its • ACC produced 1,694K T of clinker in 1H 2017 • ACC was able to run its maximum coal currency in a move that has reduced its value compared to 1,692K Tat the same period the capacity for both line
Slide 11: Period Highlights (continued): Main KPIs
Period Highlights (continued) Main KPIs Clinker Production (MN MT) and Utilization Rates Cement Production and Utilization Rates 1.64 1.69 1.69 2.05 2.04 1.90 1.98 1.28 78% 81% 81% 82% 79% 87% 61% 76% 1H 14 1H 15 1H 16 1H 17 1H 14 1H 15 1H 16 1H 17 Clinker Production Clinker Utilization Rate Cement
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 56,755 decreased over the first half of 2017 by 9% y-o-y. 53,856 54,000 •Egypt’s current installed capacity is 73 mm tons cement and 52,284 the
Slide 13: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Brand 1H17 1H16 605 607 600 557 555 493 5% 428 19% 5%9%12% 4% 11% 70% 79% 0 89% 88% Al Mosalah Al Nasr Al Tahrir Bulk Al Mosalah Al Tahrir AL Nasr Bulk 1H17 1H 16 Breakdown by Type 1H17 1H 16 604 5% 3% 555 493 509
Slide 14: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Point of Sale 1H17 1H 16 621 577 497 514 40% 45% 60% 55% Delivered Ex-Factory 1H17 1H 16 Delivered Ex-Factory Breakdown by Market 1H 17 1H 16 594 601 549 9% 0% 91% 100% - 1H17 1H 16 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 1H17 1H16 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) 129 4,017 67 53 152 135 182 27 822 890 1,559 2006-2008 2009 2010 2011 2012 2013 2014 2015 FY16 1H17 Total - CAPEX in 1H2017 increased by 129 mm EGP which is mainly coming from starting constructing 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 3 1,078 1,010 2 807 533 1 305 2013 2014 2015 2016 2017 2018 2019 2020 1H 14 1H 15 1H 16 1H 17 Debt in EGP increased due to the flotation, however in USD terms during 1H the debt was red
Slide 18: 1H17 Financials Review: Income Statement
1H17 Financials Review Income Statement Revenues (Thousand EGP) MN EGP 1H 14 1H 15 1H 16 1H 17 1,189 1,146 1,135 Revenue 1,146 1,135 1,094 1189 1,094 Cost of goods sold 681 735 633 905 Gross profit 465 401 460 285 GPM 41% 35% 42% 24% 1H 14 1H 15 1H 16 1H 17 SG&A Expenses 50 47 39 58 GP, EBITDA & Net
Slide 19: 1H17 Financials Review: Balance Sheet
1H17 Financials Review Balance Sheet MN EGP Assets 1H 14 1H 15 1H 16 1H 17 Gearing Non-current Assets Property plant and equipment, 3.9 net 2,618 2,597 2,477 2,779 Projects under construction 123 123 138 122 Intagible assets 143 120 98 75 3.2 Investment in subsidiaries 9 9 21 21 2.9 2.8 Payments und
Slide 20: 1H17 Financials Review: Cash Flow Statement
1H17 Financials Review Cash Flow Statement MN EGP 1H 14 1H 15 1H 16 1H 17 Cash (EGP mn) Cash flows from operating activities Net profit before tax 249 183 186 69 249 Interest income -0.4 -1 -7 0 Interest expense 47 44 40 52 Depreciation expense 83 86 87 105 Amortization of intangible assets 11 11 11
Slide 21: Future Ready
Future Ready For more Information Please Contact: Investor Relations: [email protected] www.arabiancementcompany.com
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