Arabian Cement Company · EGX:ARCC
Arabian Cement — Investor Presentation (September 2014)
20 slides from Arabian Cement's investor presentation, September 2014
Slide 1: Arabian Cement Company Investors Presentation
Arabian Cement Company Investors Presentation September 2014
Slide 2: Contents
Contents • Introduction to ACC………………………………………………………………………………………………………….3 • 1H14 Period Highlights ……………………………………………………………………………………………………..9 • Egyptian Cement Market ……………………………………………………………………….........……………….…...11 • Sales Overview ……………………………………………………………………………………………………………...12 • COGS Overview ……………
Slide 3: Introduction to ACC: Snapshot and Investment Highlights
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 4: 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 5: 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 6: Executive Management Team
Introduction to ACC Executive Management Team Jose María Magriña Chief Executive Officer Mr. Magriña’s 19 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 7: Our Strategy
Introduction to ACC Our Strategy Medium Term Strategy Long Term Strategy 5. Expanding production in Egypt or abroad through 4. Vertical Expansion: M&A • Andalus Ready Mix 3. Continue to Pay a • Optimize costs: ACC’s RHI JV Healthy Dividend Stream While • RDF Plants 2. Position ACC Optimizing Capital
Slide 8: Distribution Network Overview
Introduction to ACC Distribution Network Overview 1 Express Wassal Express Wassal Volumes (% of Cement Produced) Express Wassal is a full transportation service for bulk and/or packaged products provided by the 69.4% company’s fleet of 25 trucks as well as by 3rd party business partners. Express W
Slide 9: 1H14 Period Highlights
1H14 Period Highlights Main Highlights During Q2 2014, there was an amendment to the tax law in Egypt that resulted in a temporary increase on the tax rate by 5%. This rendered the effective tax rate to become 30% as opposed to 25%. This increase is applicable on the income realized as of 2014 for 3
Slide 10: Main KPIs
1H14 Period Highlights Main KPIs Clinker Production and Utilization Rates Cement Production and Utilization Rates 2.5 120% 2.5 91% 100% 102% 93% 79% 90% 100% 2.28 76% 2.0 2.0 80% 1.96 76% 1.98 80% 1.90 70% 1.5 1.61 61% 1.5 52% 60% 1.60 60% 50% 1.28 1.29 1.0 1.0 40% 40% 30% 0.5 20% 0.5 20% 10% - 0% -
Slide 11: Egyptian Cement Market: Demand and Supply Synopsis
Egyptian Cement Market Demand and Supply Synopsis Domestic Consumption (MMT) Egyptian Market Overview •The Egyptian cement market is primarily driven by local consumption, which 52,184 has been relatively stable over the past few years despite ongoing political and economic unrest. 51,191 •Egypt’s r
Slide 12: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Brand 1H13 1H14 1% 5% 0% 3% 609 598 583 583 9% 5% 521 509 5% 9% 451 89% 88% 0 89% 88% Al Mosalah Al Tahrir Al Sadd Bulk 1H14 1H13 Al Mosalah Al Tahrir Al Sadd Bulk Al Mosalah Al Tahrir Al Saad Bulk Breakdown by Ty
Slide 13: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Point of Sale 1H13 1H14 626 594 513 518 13% 43% 57% 87% 1H14 1H13 Delivered Ex-Factory Delivered Ex-Factory Delivered Ex-Factory Breakdown by Market 1H13 1H14 0.4% 608 532 520 2% 424 98% 99.6% 1H14 1H13 Local Expo
Slide 14: COGS Overview
COGS Overview COGS and ACC Cost Advantages COGS Breakdown ACC Cost Advantages 1H14 1H13 Moving ahead of other industry players, ACC has embarked on an alternative energy investment with aims to offer ACC the ability to substitute up to 100% 12% of its energy needs by end of Q1 2015. 13% RDF: 33%
Slide 15: CAPEX Overview
CAPEX Overview CAPEX (MNEGP) - The company has paid EGP40 for CAPEX during 1H14 and Total 1H14 expected to pay around the same amount till year-end. In 2015 the company is expected to pay EGP15. 3,667 - Going forward, maintenance CAPEX is included in the O&M 1H14 fees per ton that the company pays.
Slide 16: Outstanding Debt
Outstanding Debt Debt Outstanding Debt (Thousand EGP) Interest Coverage Ratio 1,485 8 7 1,246 6 5 775 534 344 228 98 48 2013 2014 2015 2016 2017 2018 2019 2020 1H14 1H13 1H12 1H11 Loans Structure (EGP vs. USD) Jun-14 Jun-13 16% 27% 73% 84% Debt in USD Debt in EGP Debt in USD Debt in EGP 16
Slide 17: 1H14 Financials Review: Income Statement
1H14 Financials Review Income Statement MN EGP 1H14 1H13 2013 2012 2011 Revenues (Thousand EGP) Revenue 1,146 1,028 2,064 1,854 1,354 • ACC average prices Cost of goods sold -681 -591 -1,190 -1,001 -768 1500 60% increased by 17% 1000 40% compared to the previous Gross profit 465 438 874 852 586 1146
Slide 18: 1H14 Financials Review: Balance Sheet
1H14 Financials Review Balance Sheet MN EGP 1H14 2013 2012 2011 Gearing Assets Non-current Assets Property plant and equipment, net 2,618 2,647 2,324 2,928 2.5 14.0 Projects under construction 123 138 9 12 4.7 Intagible assets 143 154 649 199 2.3 12.0 Investment in subsidiaries 9 9 9 2.0 Payments un
Slide 19: 1H14 Financials Review: Cash Flow Statement
1H14 Financials Review Cash Flow Statement MN EGP 1H14 1H13 2013 2012 2011 Cash (EGP mn) Cash flows from operating activities Net profit before tax 249 194 439 443 298 Interest income -1 -1 -3 -1 Interest expense 47 60 120 132 94 192 178 Depreciation expense 83 82 165 163 107 165 Amortization of int
Slide 20: Future Ready
Future Ready For more Information Please Contact: Investor Relations: [email protected] www.arabiancementcompany.com 20
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