Arabian Cement Company · EGX:ARCC
Arabian Cement — Q1 2015 Earnings Presentation
20 slides from Arabian Cement's earnings presentation, June 2015
Slide 1: Arabian Cement Company 1Q15 Investors Presentation
Arabian Cement Company 1Q15 Investors Presentation June 2015
Slide 2: Contents
Contents • Introduction to ACC………………………………………………………………………………………………………….3 • Period Highlights ……………………………………...……………………………………………………………………..9 • Egyptian Cement Market ……………………………………………………………………….........……………….…...11 • Sales Overview ……………………………………………………………………………………………………………...12 • COGS Overview ……………
Slide 3: 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 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 4. Vertical Expansion: • Andalus Ready Mix 3. Continue to Pay a • RDF Plants Healthy Dividend Stream While 2. Position ACC Optimizing Capital Among the Top Structure Brands in the Mark
Slide 8: 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 fleet of 25 trucks as well as by 3rd party business partners. Express Wa
Slide 9: Period Highlights
Period Highlights Main Highlights In early 1Q15, the market witnessed a decline in prices, specifically in January and February. By late March, prices started picking up again to the level of 2014 average. Starting January 2015, the government announced that it will not supply any gas to the cement
Slide 10: Period Highlights (continued): Main KPIs
Period Highlights (continued) Main KPIs Clinker Production (MN MT) and Utilization Rates Cement Production and Utilization Rates 1.14 1.07 0.97 0.95 0.95 0.90 0.85 0.77 91% 93% 91% 86% 81% 72% 76% 74% 1Q12 1Q13 1Q14 1Q15 1Q12 1Q13 1Q14 1Q15 Clinker Production Clinker Utilization Rate Cement Producti
Slide 11: Egyptian Cement Market
Egyptian Cement Market Demand and Supply Synopsis Domestic Consumption (MMT) Egyptian Market Overview •The Egyptian cement market is primarily driven by local consumption, which has been relatively stable over the past few years despite ongoing political and economic unrest. 13,417.6 •Egypt’s reside
Slide 12: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Brand 1Q14 1Q15 561 549 553 564 535 520 532 5% 2% 4% 9% 9% 10% 89% 86% 89% 0 88% Al Mosalah Al Tahrir Al Sadd Bulk Al Mosalah Al Tahrir Al Sadd Bulk Al Mosalah Al Tahrir Al Saad Bulk 1Q14 1Q15 Breakdown by Type 1Q
Slide 13: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Point of Sale 1Q14 1Q15 578 558 29% 30% 552 541 71% 70% 1Q14 1Q15 Delivered Ex-Factory Delivered Ex-Factory Delivered Ex-Factory Breakdown by Market 1Q14 1Q15 560 546 490 1% 0% 0 99% 100% 1Q14 1Q15 Local Exports L
Slide 14: COGS Overview
COGS Overview COGS and ACC Cost Advantages COGS Breakdown ACC Cost Advantages Moving ahead of other industry players, ACC has embarked on an alternative 4% energy investment with aims to offer ACC the ability to substitute up to 100% 9% 6% 11% of its energy needs by end of Q2 2015. 14% 13% RDF:
Slide 15: CAPEX Overview
CAPEX Overview CAPEX (MN EGP) 16 3,772 156 27 135 182 822 1,559 890 2006-2008 2009 2010 2011 2012 2013 2014 1Q15 TOTAL - In addition to the EGP156 mn for CAPEX during 2014 mainly for the coal and hot disc projects, ACC also paid EGP16mn during 1Q15 related to the transformation to using coal and Ref
Slide 16: Outstanding Debt & Debt Structure
Debt Outstanding Debt & Debt Structure Outstanding Debt (Thousand EGP) Interest Coverage Ratio 1,485 5 1,191 958 748 3 3 3 537 326 195 132 2013 2014 2015 2016 2017 2018 2019 2020 1Q12 1Q13 1Q14 1Q15 Loans Structure (EGP vs. USD) 1Q14 1Q15 26% 23% 74% 77% Debt in USD Debt in EGP Debt in USD Debt in E
Slide 17: 1Q15 Financials Review: Income Statement
1Q15 Financials Review Income Statement MN EGP 1Q15 1Q14 1Q13 1Q12 Revenues (Thousand EGP) Revenue 585 529 449 483 1000 20% • Revenues increased 11% Cost of goods sold 377 282 240 268 483 449 585 10% 529 in 1Q15 compared 1Q14. 500 Gross profit 208 247 210 215 0% • Cost per ton increased by GPM 36% 4
Slide 18: 1Q15 Financials Review: Balance Sheet
1Q15 Financials Review Balance Sheet MN EGP 1Q15 1Q14 1Q13 Assets Gearing Non-current Assets Property plant and equipment, net 2,639 2,657 2,299 Projects under construction 97 103 5 Intangible assets 7.7 126 149 637 Investment in subsidiaries 9 9 9 Payments under long-term investment 0 0 0 6.0 5.9 T
Slide 19: 1Q15 Financials Review: Cash Flow Statement
1Q15 Financials Review Cash Flow Statement MN EGP 1Q15 1Q14 1Q13 1Q12 Cash (EGP mn) Cash flows from operating activities Net profit before tax 86 155 84 115 Interest income 19 23 31 36 189 196 Interest expense -0.2 -0.1 -0.4 -0.4 Depreciation expense 43 41 34 34 Amortization of intangible assets 6 6
Slide 20: Future Ready
Future Ready For more Information Please Contact: Investor Relations: [email protected] www.arabiancementcompany.com 20
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