Bua Cement Plc · NSENG:BUACEMENT
Bua Cement — 9M 2021 Earnings Presentation
18 slides from Bua Cement's earnings presentation, Nov 4, 2021
Slide 1: BUA Cement Plc 9M'2021 Presentation to Investors and Analysts
BUA CEMENT PLC Sustaining Value and Competitiveness 9M’2021 Presentation to Investors and Analysts 4th November 2021 1
Slide 2: Disclaimer
Disclaimer Unless otherwise indicated, the financial information provided herein has been prepared under International Financial Reporting Standards (IFRS). This presentation contains forward-looking statements and information. Forward-looking statements and information are statements that are not h
Slide 3: BUA Cement and Sokoto Cement are products of BUA Cement PLC
*BUA Cement and Sokoto Cement are products of BUA Cement PLC. 3
Slide 4: Content
Content Our Company Philosophy 05 Company Overview 06 Financial Highlights 10 Value Creating Priorities 15 Sustainability - EHS 17 4
Slide 5: Our Philosophy
Our Philosophy Our Vision Our Mission Our Value Proposition To be a highly competitive To produce and market high We are a professional supplier of premium market leader in Nigeria quality cement for national brand cement and provide reliable delivery development to our customers with application tr
Slide 6: Company Overview
Company Overview Largest Cement producer 3 Modern lines N2.2 trillion Best M&A Deal in Africa in the North-West, South-South Operational across 2 States Market capitalisation as at (2019) and South East Sept. 2021 11 N186.9 billion (9M’2021) 8 8 Sustainability led by United Nations SDGs Revenue 5 3.
Slide 7: Flawless Execution, Disciplined Approach
Flawless Execution, Disciplined Approach Incorporation of CCNN; Commissions its 0.5mmt Listed on the Nigeria Stock FGN divests its majority Scancem divests its majority commences operation in (Line-2), with the Exchange (NSE), resulting holding to Scancem holding to Damnaz Cement 1967 with an instal
Slide 8: Strategic Positioning, Increasing Market Presence
Strategic Positioning, Increasing Market Presence Sokoto Plant Sokoto State Line 1 500,000MTPA Line 2 1.5MMTPA Line 3 3MMTPA (Dec. 2021) BUA Cement Plc Obu Plant Head Office Edo State Victoria Island, Lagos, Nigeria Line 1 3MMTPA Line 2 3MMTPA 8
Slide 9: Obu Plants
OBU PLANTS OBU PLANT (LINES 1 & 2) LOCATION PRODUCTION CAPACITY COMPLETION DATE Okpella, Edo State Line 1 – 3million mtpa 2015 – Obu Cement Line 1 South-South Nigeria Line 2 – 3million mtpa 2019 – Obu Cement Line 2 9
Slide 10: Highlights from 9M'2021 – Margin Expansion and Sustained Volume Growth
Highlights from 9M’2021 – Margin Expansion and Sustained Volume Growth PERFORMANCE 1 Sustained performance and positive outlook underpinned by unceasing cement demand and supported by an excellent business model EBITDA 2 PROFITABILITY 3 EBITDA increases by 20.4% to N87.4 billion Profit after Tax (PA
Slide 11: Sustained Performance & Positive Outlook
Sustained Performance & Positive Outlook 1 Revenue per ton (N’000) 2 EBITDA (N‘bn) 3 EBITDA Margin 46.2 87.4 46.8% 41 46.4% 72.6 9M'2021 9M'2020 9M'2021 9M'2020 9M'2021 9M'2020 • Revenue per ton increased by 12.7% to N46,224/ton from N41,023/ton, as at 9M’2020; resulting from a combination of “lifti
Slide 12: EBITDA Driven by Top-line Growth
EBITDA Driven by Top-line Growth (Δ;y/y) EBITDA (9M'2021) 87.4 Dep & Amort. 0.2 SD&A (net) (2.4) Costs of Sales (13.3) Revenue 30.3 EBITDA (9M'2020) 72.6 -20 0 20 40 60 80 100 N’billions • Keeping in mind the top-line growth (+N30.3 billion: y/y), EBITDA rose by 20.4% to N87.4 billion (N72.6 billion
Slide 13: Cost Optimisation in Rising Inflationary Environment
Cost Optimisation in Rising Inflationary Environment Cost of sales Energy cost SD&A per ton (N‘000) per ton (N‘000) per ton (N‘000) 24.6 22.6 10.2 9.0 2.9 2.4 9M'2021 9M'2020 9M'2021 9M'2020 9M'2021 9M'2020 • Cost of sales per ton rose by 9% to N24,646/ton from N22,612/ton (9M’2020), led by higher i
Slide 14: Sokoto Plants
SOKOTO PLANTS SOKOTO PLANT (LINE 3) LOCATION PRODUCTION CAPACITY COMPLETION DATE Kalambaina, Sokoto New Line 3 – 3million mtpa December 2021 (North-West, Nigeria) 14
Slide 15: Investing in the Future
Investing in the Future Priority Activity Status Areas • Drive revenue and cost synergies across revenue and margin lines Synergy • Continue harmonisation of sales and marketing strategy across the two plants • Increase customer on-boarding at new locations New Markets Expansion • Commission the 3mm
Slide 16: Kalambaina Cement Complex Line 3 (with LNG facility)
KALAMBAINA CEMENT COMPLEX LINE 3 (with LNG facility) Location Production Capacity Completion Date Kalambaina, Sokoto New Line 3– 3mmtpa December 2021 (North-West Nigeria) 16
Slide 17: Leading Through Sustainability
Leading Through Sustainability CO2 Emission Dust Emission (KgCO2/TCEM) (Mg/M3) 450 2021 502 25 2021 13 Energy Efficiency (Kcal/kg) 779 2021 752 Inserted picture: New, sustainable and resilient community development at Sabon Garin Gidam Bailu, Sokoto State 17
Slide 18: Thank You
Thank You www.buacement.com 5th Floor, BUA Towers PC 32, Churchgate Street Victoria Island, Lagos, Nigeria Email: [email protected] 18