Arabian Cement Company · EGX:ARCC
Arabian Cement — Q1 2017 Earnings Presentation
21 slides from Arabian Cement's earnings presentation, 2017
Slide 1: Arabian Cement Company Q1 2017 Investors Presentation
Arabian Cement Company Q1 2017 Investors Presentation
Slide 2: Highlights
Highlights USD Debt reduced EGP 147 MM from 44 mm USD to EBITDA 41 mm USD in 1Q17 02 03 1.12 MM tons Sales 38% increase in cost/ton EGP 441 01 04 85% 06 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 Q1 2017 Arabian Cement distributed 1Q 2017 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 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 898K T of clinker in Q1 2017 • ACC was able to run its maximum coal currency in a move that has reduced its value compared to 940K T at the same period the capacity for both lines.
Slide 11: Period Highlights (continued): Main KPIs
Period Highlights (continued) Main KPIs Clinker Production (MN MT) and Utilization Rates Cement Production and Utilization Rates 0.95 1.14 0.94 1.07 91% 1.02 97% 0.90 0.95 91% 90% 0.85 85% 87% 81% 81% Q1 14 Q1 15 Q1 16 Q1 17 Q1 14 Q1 15 Q1 16 Q1 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 56.8 •The market is driven by local consumption, which has decreased over the first quarter of 2017 by 13% y-o-y. 53.9 52.3 •Egypt’s current installed capacity is 73 mm tons cement and the consumpti
Slide 13: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Brand 1Q 17 1Q 16 610 617 606 533 557 21% 5% 12% 471 5% 9% 428 4% 12% 68% 79% 0 89% 88% Al Mosalah Al Nasr Al Tahrir Bulk Al Mosalah Al Tahrir AL Nasr Bulk 1Q17 1Q 16 Breakdown by Type 1Q 17 609 1Q 16 557 529 5% 3
Slide 14: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Point of Sale 1Q 17 1Q 16 625 508 537 508 36% 45% 55% 64% 1Q17 1Q 16 Delivered Ex-Factory Delivered Ex-Factory Breakdown by Market 1Q17 1Q16 597 605 526 13% 87% - 100% 1Q17 1Q 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 mill. This will enable the company to compose its fuel mix from coal and 12% 12% RDF only getting rid of diesel as it is getting more expensive.
Slide 16: CAPEX Overview
CAPEX Overview CAPEX (MN EGP) 52 49 3,936 67 152 135 182 27 822 890 1,559 2006-2008 2009 2010 2011 2012 2013 2014 2015 FY16 1Q17 Total - Total CAPEX for Q1 2017 is 49 mm EGP . 16
Slide 17: 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 1,028 834 3 2 403 2 10 2013 2014 2015 2016 2017 2018 2019 2020 Q1 14 Q1 15 Q1 16 Q1 17 Debt in EGP increased due to the flotation, however in USD terms during 1Q the debt was redu
Slide 18: 1Q17 Financials Review: Income Statement
1Q17 Financials Review Income Statement Revenues (Thousand EGP) MN EGP Q1 14 Q1 15 Q1 16 Q1 17 585 668 529 536 Revenue 529 585 536 668 Cost of goods sold 282 377 327 492 Gross profit 247 208 210 175 Q1 14 Q1 15 Q1 16 Q1 17 GPM 47% 36% 39% 26% SG&A Expenses 20 24 19 28 GP and EBITDA (Thousand EGP) 30
Slide 19: 1Q17 Financials Review: Balance Sheet
1Q17 Financials Review Balance Sheet MN EGP Q1 14 Q1 15 Q1 16 Q1 17 Assets Gearing Non-current Assets Property plant and equipment, net 2,657 2,639 2,494 2,530 8.6 Projects under construction 103 97 128 Intagible assets 149 126 104 435 Investment in subsidiaries 9 9 21 21 Payments under long-term in
Slide 20: 1Q17 Financials Review: Cash Flow Statement
1Q17 Financials Review Cash Flow Statement MN EGP Q1 14 Q1 15 Q1 16 Q1 17 Cash flows from operating activities Net profit before tax 155.0 86.0 46.0 74.3 Cash (EGP mn) Interest income 23.0 19.0 -0.7 -0.2 Interest expense -0.1 -0.2 20.2 23.7 338.5 Depreciation expense 41.0 43.0 43.6 52.2 Amortization
Slide 21: Future Ready
Future Ready For more Information Please Contact: Investor Relations: [email protected] www.arabiancementcompany.com
Arabian Cement Company — Q1 2017 Earnings Presentation on 6ix