Arabian Cement Company · EGX:ARCC
Arabian Cement — Q2 2018 Earnings Presentation
20 slides from Arabian Cement's earnings presentation, 2018
Slide 1: Arabian Cement Company 2Q 2018 Investors Presentation
Arabian Cement Company 2Q 2018 Investors Presentation
Slide 2: Highlights
Highlights USD Debt reduced from 31 mm USD to EGP 423 MM 28 mm USD in EBITDA 1H18 02 03 2.2 MM tons Sales 12% increase in cost/ton EGP 508 01 04 96% 06 05 31% 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 1H 2018 Arabian Cement distributed 1H 2018 Distribution through direct Ex-Factory sales and Delivery. 35% 65% 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 2.007K T of clinker in 1H 2018 • ACC was able to have the minimal currency in a move that has reduced its value compared to 1,694K T at the same period the contribution of diesel in
Slide 11: Period Highlights (continued): Main KPIs
Period Highlights (continued) Main KPIs Clinker Production (MN MT) and Utilization Rates Cement Production and Utilization Rates 2.05 2.04 2.12 2.01 1.98 1.64 1.69 1.69 81% 96% 87% 90% 78% 81% 82% 79% 1H 15 1H 16 1H 17 1H18 1H 15 1H 16 1H 17 1H18 Clinker Production Clinker Utilization Rate Cement Pr
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 1H2018 is almost as 28,378 that of the same period last year. According to our 26,928 26,909 26,854 expectations, the market will likely to remain flat y-o-y and
Slide 13: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Brand 1H18 1H17 777 733 713 605 600 5% 19% 530 555 19% 9% 10% 11% 1% 70% 70% 0 89% 88% Al Mosalah Al Nasr Clinker Bulk Al Mosalah Clinker AL Nasr Bulk 1H17 1H 18 Breakdown by Type 1H 18 738 1H17 713 1% 604 3% 555
Slide 14: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Point of Sale 789 1H 18 1H17 701 621 577 35% 40% 60% 65% Delivered Ex-Factory Delivered Ex-Factory 1H17 1H 18 Breakdown by Market 753 1H 18 1H 17 594 601 557 11% 9% 89% 91% Local Exports Local Exports 1H17 1H 18 1
Slide 15: COGS Overview
COGS Overview COGS and ACC Cost Advantages COGS Breakdown ACC Cost Advantages 1H18 1H17 ACC is always working on controlling its cash cost/ton. After the operation 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 a
Slide 16: Debt: Outstanding Debt & Debt Structure
Debt Outstanding Debt & Debt Structure Outstanding Debt (Thousand EGP) Interest Coverage Ratio 1,485 5 1,191 1,180 1,078 1,028 4 3 747 458 1 260 1H 15 1H 16 1H 17 1H18 2013 2014 2015 2016 2017 2018 2019 2020 Debt Structure (EGP vs. USD) 1H18 1H17 43% 50% 50% 57% Loans in USD Loans in EGP 17
Slide 17: 1H18 Financials Review: Income Statement
1H18 Financials Review Income Statement Revenues (Thousand EGP) MN EGP 1H 15 1H 16 1H 17 1H18 1,591 Revenue 1,135 1,094 1189 1591 1,135 1,094 1,189 Cost of goods sold 735 633 905 1,105 Gross profit 401 460 285 487 GPM 35% 42% 24% 31% 1H 15 1H 16 1H 17 1H18 SG&A Expenses 47 39 58 64 GP, EBITDA & Net
Slide 18: 1H18 Financials Review: Balance Sheet
1H18 Financials Review Balance Sheet MN EGP 1H 15 1H 16 1H 17 1H18 Assets Gearing Non-current Assets 3.9 Property plant and equipment, net 2,597 2,477 2,779 2,539 Projects under construction 123 138 122 66 Intagible assets 120 98 75 371 Investment in subsidiaries 9 21 21 38 2.9 2.8 Payments under lo
Slide 19: 1H18 Financials Review: Cash Flow Statement
1H18 Financials Review Cash Flow Statement MN EGP 1H 15 1H 16 1H 17 1H 18 Cash flows from operating activities Cash (EGP mn) Net profit before tax 183 186 69 257 Interest income -1 -7 0 -1 249 Interest expense 44 40 52 45 Depreciation expense 86 87 105 94 Amortization of intangible assets 11 11 11 2
Slide 20: Future Ready
Future Ready For more Information Please Contact: Investor Relations: [email protected] www.arabiancementcompany.com
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