Bua Cement Plc · NSENG:BUACEMENT
Bua Cement — H1 2020 Earnings Presentation
30 slides from Bua Cement's earnings presentation, 2020
Slide 1: BUA Cement Plc H1'2020 Presentation to Investors and Analysts
BUA CEMENT PLC H1’2020 Presentation to Investors and Analysts 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
BUA CEMENT a STRONG. QUICK Ms = ve 1.
Slide 4: Our Corporate Philosophy Key Highlights from H1’2020 Creating Value Amid Low GDP Per
01 11 O Our Corporate Philosophy Cost Profile Key Highlights from H1’2020 02 12 Free Cashflow & Net Debt U Creating Value Amid Low GDP Per Capita and Market Potential 03 13 Strategic Priorities Update 04 14 T Brief Overview Faces of our Sustainability Footprint Strategic Milestones 05 15 Leading Sus
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 and easy to deal with market leader in Nigeria quality cement for national supplier of premium brand of cement that development provides reliable ‘doorstep’ deliver
Slide 6: Highlights from H1'2020
Highlights from H1’2020 Value-oriented approach alongside a focused strategy translating resilient performance Cement volume dispatched up 7.9% from 2,282kt in H1’2019 to 2,463kt, as at H1’2020 EBITDA margin remains resilient at 46.8% in H1’2020, with EBITDA margin increasing to 48.1% in Q2’20
Slide 7: Creating Value Amid Low GDP Per Capita & Market Potential
Creating Value Amid Low GDP Per Capita & Market Potential Population Population Urbanization Housing Infrastructure Industrial Nigeria Cement SSA Industry Growth Rate Rate Deficit Deficit1 Activity Growth Rate Growth 214 2.53% 4.23% 22 $300 billion 22.25% 7% (2019) 5%-6% million million (infrastruct
Slide 8: Brief Overview
Brief Overview Largest cement producer in the North-West, 1 South-South and South East 3 Modern lines operational across two States 2 3rd Most Capitalised company on the Nigerian Stock Exchange 3 (NSE) – N1.2 trillion (Jan. 2020) >60 per cent 4 capacity utilization attained N101.26 billion (H1’2020)
Slide 9: Flawless Execution, Disciplined Approach
Flawless Execution, Disciplined Approach Incorporation of CCNN; Commissions its 500,000MT Listed on the Nigeria Stock FGN divests its majority Scancem divests its majority commences operation in 1967 (Line-2), with the Exchange (NSE), resulting holding to Scancem holding to Damnaz Cement with an ins
Slide 10: Strategic Positioning, Increasing Market Presence
Strategic Positioning, Increasing Market Presence Kalambaina Plant Sokoto State Line 1 – 500,000MTPA Line 2 – 1.5 MMTPA Line 3 - 3MMTPA (Q2’2021) FCT Obu Plant Edo State Line 1 – 3MMTPA Line 2 – 3MMTPA 10
Slide 11: Obu Cement Plants
OBU CEMENT PLANTS OBU CEMENT COMPLEX (LINES 1 & 2) Location Okpella, Edo State (South-South Nigeria) Production Capacity Line 1 – 3mmtpa Line 2 – 3mmtpa Completion Date 2015 2019 Obu Cement Line 1 Obu Cement Line 2 11
Slide 12: Macro-Environment & Sectoral Drivers (H1'2020)
Macro-Environment & Sectoral Drivers (H1’2020) 80.96% 1.87% 0.08% Oil price was up 81% to GDP growth Naira depreciated by $41.15/bbl., resulting decelerated to 1.87% 0.08% to N385.84/$; a from oil production cuts (Q1’20) from 2.10% result of a demand- by OPEC and its allies (Q1’19), In general, supp
Slide 13: Financial Highlights (H1'2020)
Financial Highlights (H1’2020) … our focus on value continues to sustain performance H1’2020 H1’2019 %Δ N’million except otherwise stated Cement sales (kt)1 2,463 2,282 7.9 Revenue 101,261 89,858 12.7 EBITDA 47,364 44,775 5.8 EBITDA margin (%) 46.8 49.8 - EBIT 40,808 38,131 7.0 Net Finance cost (1,6
Slide 14: EBITDA Evolution
EBITDA Evolution (Δ;y/y) EBITDA (H1'2020) 47,365 Depreciation 1,112 SD&A (net) (975) Gross profit 2,453 EBITDA (H1'2019) 44,775 -10,000 0 10,000 20,000 30,000 40,000 50,000 N’million Comments • Gross profit was up 5.5% or N2.45 billion, which resulted from increased production volumes; though modera
Slide 15: Resilient Performance Amid an Uncertain Economic Environment
Resilient Performance Amid an Uncertain Economic Environment …business model aided by discipline of focus and strategy execution 1 EBITDA (N’mn) 2 EBITDA per ton (N‘000) 3 EBITDA Margin 49.83% 47,365 46.77% 44,775 19.62 19.23 H1'2019 H1'2020 H1'2019 H1'2020 H1'2019 H1'2020 Comments • EBITDA rose by
Slide 16: Balancing Cost Containment with Investments in Route-to-Market Strategy
Balancing Cost Containment with Investments in Route-to- Market Strategy Cost of sales per ton (N‘000) Energy cost per ton (N‘000) Dist. & sell. cost per ton (N‘000) 9.23 8.45 22.14 19.97 2.60 2.55 H1'2019 H1'2020 H1'2019 H1'2020 H1'2019 H1'2020 Comments • Cost of sales/ton rose by 10.9% from N19,96
Slide 17: Free Cash Flow & Net Debt Evolution
Free Cash Flow & Net Debt Evolution 80 N’billions 64 60 39 39 40 26 20 15 10 6 3 0 (20) (13) (40) (43) (60) Net debt Profit before tax Adjustment for non-cash items Adjustment for working capital items Net cash flow from operations Investing activities Financing activities Cash and cash balances Deb
Slide 18: Strategic Priorities in 2020 and Updates
Strategic Priorities in 2020 and Updates 01 02 03 04 New markets Sustainability Expansion Synergy Driving added Growing foothold in Commission the Further enshrine merger synergies ‘new markets’ whilst Sokoto line-3 plant already identified consolidating sustainable goals on existing ones 18
Slide 19: Faces of our Sustainability Footprint
Faces of our Sustainability Footprint 19
Slide 20: Leading Sustainable SDG Goals
Leading Sustainable SDG Goals Focus Scorecard Climate, Energy & Reduce carbon and dust particle footprint 468 32 Environment through innovation CO2kg/tcem mg/m3 Circular Economy Drive the efficient management of 150.40 m3/day resources Fresh water saved Environment Restoration of the 6.92million env
Slide 21: Other Strategic Priorities Update
Other Strategic Priorities Update Synergy 02 • Operational synergy – sharing of parts, which prevents lost hours • Scale – Our size allows us coverage 01 of added markets which previously were illusive Markets 01 • Export permit for limited quantities of exports received 02 • Maintained distribution
Slide 22: BUA Cement Plant, Sokoto
BUA CEMENT PLANT, SOKOTO BUA CEMENT COMPLEX, SOKOTO 82MW Captive Power plant High Capacity Coal mill, multi-fuel Cement plant Location Kalambaina, Sokoto (North-West Nigeria) Production Capacity Line 1– 500,000mtpa Line 2– 1.5mmtpa New Line 3– 3mmtpa Completion Date 1985 2018 Mid-2021 Line-1 Line-2
Slide 23: Board of Directors
Board of Directors 23
Slide 24: Board of Directors
Board of Directors Billionaire industrialist and philanthropist, Abdul Engr Yusuf Haliru Binji the Managing Director of BUA Samad Rabiu, is the Executive Chairman/CEO of Cement is a Chemical Engineer with degrees from BUA Group – a company he founded in 1988 and Ahmadu Bello University and the Unive
Slide 25: Board of Directors
Board of Directors Finn holds a Master Degree in Combustion Engineering from Shehu Abubakar, a Nigerian was born in August 28, NTH, Norway in 1977. His entire working career has been in the 1959. He holds a B.Sc. (Business Management) from Cement Industry and mainly within the Africa Continent. He U
Slide 26: Financials Summary
Financials Summary 26
Slide 27: Financials – Income Statement
Financials – Income Statement Figures in N’000 H1’ 2020 H1’2019 Revenue 101,261,401 89,858,984 Cost of sales (54,518,229) (45,568,572) Gross profit 46,743,171 44,290,412 Administrative expenses (4,752,521) (3,878,830) Distribution & selling expenses (6,394,716) (5,812,575) Impairment write back/(cha
Slide 28: Financials – Balance Sheet
Financials – Balance Sheet Figures in N’000 H1’2020 FY2019 Property, plant & equipment 429,166,976 393,406,271 Right-of-use-asset 51,115 76,503 Intangible assets 3,177,699 2,781,915 Deferred tax 11,999,594 12,140,877 Non-current assets 444,395,386 408,405,566 Inventories 30,755,752 27,201,580 Due fr
Slide 29: Financials – Balance Sheet (contd.)
Financials – Balance Sheet (contd.) Figures in N’000 H1’2020 FY 2019 Lease liabilities - 6,675 Long-term borrowings obligations - - Employee benefit obligations 2,872,879 2,908,526 Deferred tax liabilities 11,335,222 7,492,289 Deferred income - - Non-current liabilities 15,551,720 10,407,490 Total l
Slide 30: Thank You
Thank You www.buacement.com 5th Floor, BUA Towers PC 32, Churchgate Street Victoria Island, Lagos, Nigeria Email: investor.relations@buacement.com 30