Arabian Cement Company · EGX:ARCC
Arabian Cement — 9M 2015 Earnings Presentation
21 slides from Arabian Cement's earnings presentation, December 2015
Slide 1: Arabian Cement Company 9M15 Investors Presentation
Arabian Cement Company 9M15 Investors Presentation December 2015
Slide 2: News Flash
News Flash 21% increase in EGP 536 MM Net Profit EBITDA 9% 02 03 7% Growth in Sales to Reduction in 3.2 MM tons cost/ton, EGP 329 01 04 85% 06 Clinker Utilization 05 8.3% Market Share 2
Slide 3: Contents
Contents • Introduction to ACC………………………………………………………………………………………………………….5 • Egyptian Cement Market ……………………………………………………………………….........……………….…...12 • Period Highlights ……………………………………...…………………………………………………………………....14 • Sales Overview ……………………………………………………………………………………………………………...17 • COGS Overview ………
Slide 4: Introduction to ACC
Introduction to ACC ACC in a Snapshot Investment Highlights The company operations started in 2008 and 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 production
Slide 5: Corporate Evolution
Introduction to ACC Corporate Evolution Arabian Cement Contract signed January: Clinker kiln June: Line II second ACC has now a 2013 Company founded by with FL Smidth for capacity upgraded to cement mill starts 5.0 Mmtpa Line I coal RDF a group of Egyptian Line I (clinker) 6,600 tpd production cemen
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 (two per line) (190 tph) •Two cement silos (16,000
Slide 7: Executive Management Team
Introduction to ACC Executive Management Team Jose María Magriña Chief Executive Officer Mr. Magriña’s 20 years of professional experience stretches across several industries. He served as a management consultant at PWC, Deloitte and Accenture covering the gas, oil and construction industries for 9
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 Optimizing Capital Brands in the Market Structu
Slide 9: Distribution Network Overview
Introduction to ACC Distribution Network Overview 1 Express Wassal Express Wassal & WH Volumes (% of Cement Dispatched) Express Wassal is a full transportation service for bulk and/or bagged products provided by the company’s 60% fleet of 25 trucks as well as by 3rd party business partners. Expres
Slide 10: Demand and Supply Synopsis
Egyptian Cement Market Demand and Supply Synopsis Domestic Consumption (MMT) Egyptian Market Overview • Demand in 9M15 has seen a slight increase of 1% over 9M14 reaching 38.6 MM tons. We still believe that the Egyptian market holds strong potential 38.6 38.0 growth based on the underlying fundament
Slide 11: Period Highlights: Main Highlights
Period Highlights Main Highlights Economy Production Energy • In July 2015, The government • ACC produced 2.67 MM MT of clinker • Starting Jan. 2015, ACC was able to announced the reduction of corporate in 9M 2015 compared to 1.95 MM MT run its maximum coal capacity for income tax rate to be 22.5% c
Slide 12: Period Highlights (continued): Main KPIs
Period Highlights (continued) Main KPIs Clinker Production (MN MT) and Utilization Rates Cement Production and Utilization Rates 2.95 2.67 3.25 3.20 2.42 2.99 2.94 1.95 94% 62% 85% 77% 87% 80% 78% 85% 9M12 9M13 9M14 9M15 9M12 9M13 9M14 9M15 Clinker Production Clinker Utilization Rate Cement Producti
Slide 13: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Brand 9M14 9M15 612 601 592 542 527 7% 489 5% 8% 3% 9% 8% 89% 85% 89% 88% Al Mosalah Al Tahrir Bulk Al Mosalah Al Tahrir Bulk 9M14 9M15 Breakdown by Type 9M14 9M15 611 592 5% 3% 540 7% 489 3% 93% 95%97% 97% Bulk B
Slide 14: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Point of Sale 9M14 9M15 628 597 547 522 43% 41% 57% 59% Delivered Ex-Factory Delivered Ex-Factory 9M14 9M15 Breakdown by Market 9M14 9M15 610 0% 0% 537 532 449 100% 100% Local Exports Local Exports 9M14 9M15 14
Slide 15: COGS and ACC Cost Advantages
COGS Overview COGS and ACC Cost Advantages COGS Breakdown ACC Cost Advantages ACC moved ahead of other industry players with embarking on alternative 8% energy investments with aims to provide the ability to substitute up to 100% 13% 14% 12% of its energy needs as of 2H 2015. RDF: 29% - The Comp
Slide 16: CAPEX Overview
CAPEX Overview 54 152 135 182 27 3,822 822 890 1,559 2006-2008 2009 2010 2011 2012 2013 2014 9M15 Total - The company paid EGP54 mn during 9M15 for the completion of the coal mill and hot disc projects in addition to the addition to other few infrastructure works. - Currently, the project is on hold
Slide 17: Outstanding Debt & Debt Structure
Debt Outstanding Debt & Debt Structure Outstanding Debt (Thousand EGP) Interest Coverage Ratio 877 4 3 3 636 575 3 376 238 93 2013 2014 2015 2016 2017 2018 9M15 9M14 9M13 9M12 Loans Structure (EGP vs. USD) 9M14 9M15 12% 25% 75% 88% Debt in USD Debt in EGP 17
Slide 18: 9M15 Financials Review: Income Statement
9M15 Financials Review Income Statement MN EGP 9M15 9M14 9M13 9M12 Revenues (Thousand EGP) Revenue 1711 1788 1532 1379 1,711 1,788 2,000 60% • Revenues declined 4% in Cost of goods sold 1105 1083 885 716 1,532 1,379 9M15 compared 9M14. 1,500 40% Gross profit 605 706 648 663 1,000 17% 46% 20% -4% 11%
Slide 19: 9M15 Financials Review: Balance Sheet
9M15 Financials Review Balance Sheet MN EGP 9M15 9M14 9M13 Assets Gearing Non-current Assets Property plant and equipment, net 2570 2696 2685 2.8 Projects under construction 116 67 46 Intangible assets 115 137 160 2.3 Investment in subsidiaries 9 9 9 Payments under long-term investment 0 0 0 1.9 1.9
Slide 20: 9M15 Financials Review: Cash Flow Statement
9M15 Financials Review Cash Flow Statement MN EGP 9M15 9M14 9M13 9M12 Cash flows from operating activities Cash (EGP mn) Net profit before tax 278 386 325 372 Interest income -2 -0.5 -1 -1 Interest expense 68 71 90 99 Depreciation expense 130 125 124 121 289 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 21
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