West China Cement Ltd. · HKEX:2233
West China Cement — FY2023 Earnings Presentation
27 slides from West China Cement's earnings presentation, March 2024
Slide 1: 2023 Annual Results
2023 Annual Results March 2024
Slide 2: Important Disclaimer and Notice to Recipients
Important Disclaimer and Notice to Recipients Institutional presentation materials By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by represe
Slide 3: Company Overview
nN OO ASR 7K BBRAGI Aaa WEST CHINA CEMENT LIMITED Company Overview
Slide 4: Company Overview
Company Overview Western China focus – Shaanxi, Xinjiang and Guizhou The largest Market leader in Southern cement producer in and Eastern Central Shaanxi Province by NSP Shaanxi production capacity Cement capacity: 31.8mt Shaanxi: 21.7mt Aggregates capacity: Xinjiang: 3.5mt 15.0mt Guizhou: 1.8mt Com
Slide 5: 2023 Annual Results
nN OO ASR 7K BBRAGI Aaa WEST CHINA CEMENT LIMITED 2023 Annual Results
Slide 6: 2023 Annual Results Highlights
2023 Annual Results Highlights ◼ Operational Cement: – Period-end installed capacity of 31.8mt (31 Dec 2022: 33.3mt) Regional operational metrics (Cement) – Sales volume of 19.8mt (31 Dec 2022: 18.5mt). Including clinker sales 20.5mt (31 PRC Africa Total Dec 2022: 19.3mt) – ASP of RMB360/t (31 Dec 2
Slide 7: Financial Analysis and KPIs
Financial Analysis and KPIs RMB Million Ended Ended % Ended Ended (unless otherwise specified) 31 Dec 2023 31 Dec 2022 Change 31 Dec 2023 31 Dec 2022 Sales Volume: Cement: Cement (mt) 19.8 18.5 7.0% ASP/t (RMB) 360 358 Aggregates (mt) 4.05 4.61 (12.2%) -PRC 292 340 Commercial Concrete (mcm) 1.91 1.7
Slide 8: Production Cost Analysis
Production Cost Analysis Production Cost (Cement) Average Coal Cost (RMB per ton) RMB (million) 1,200 1,039 6,000.0 1,000 878 779 800 600 525 486 5,191.1 400 5,069.8 5,000.0 6.9% 200 6.3% 4,637.6 0 5.4% 6.2% 2019 2020 2021 2022 2023 6.6% Average Electricity Cost 4,017.0 3,955.3 6.1% 14.1% 14.2% 4,00
Slide 9: Operations & Markets
nN OO ASR 7K BBRAGI Aaa WEST CHINA CEMENT LIMITED Operations & Markets
Slide 10: WCC Position in Shaanxi
WCC Position in Shaanxi NSP production capacity: NSP production capacity: 23.1 million tons 3.6 million tons WCC: 6.1m ◼ Southern Shaanxi – Shangluo, Ankang & Hanzhong NSP production capacity: An area dominated by the Qingling Mountains 12.6 million tons Yulin NSP production capacity: Market sha
Slide 11: Central Shaanxi – Competitive Landscape
Central Shaanxi – Competitive Landscape WCC-Hancheng: 2.0mt Shengwei-Jingyang: 2.2mt Manyi: 2.2mt Jidong-Jingyang: 4.4mt Conch-Fenghuang: 2.0mt Conch-Liquan: 4.4mt WCC-Yaowangshan: 1.1mt Conch-Qianxian: 2.2mt Tongchuan WCC-Tongchuan: 5.0mt Jidong-Fufeng: 4.4mt Weinan Shaanxi Coal-Fuping: 4.0mt Conch
Slide 12: Southern Shaanxi – Competitive Landscape
Southern Shaanxi – Competitive Landscape WCC-Xixiang: 1.1mt WCC- Zhen’an: 0.7mt WCC-Yangxian: 1.1mt WCC-Danfeng 1: 1.1mt WCC-Danfeng 2: 1.5mt WCC-Mianxian: 1.1mt Shangluo Hanzhong Ankang Jinlong: 1.1mt WCC-Xunyang: 2mt SINOMA-Hanjiang: 2.2mt WCC Sinoma Other Indicated tonnage is annual cement capaci
Slide 13: Emission Controls and Cost Savings
Emission Controls and Cost Savings New environmental standards – upgrades and cost savings Progress Impact ◼ Reduce 30% electricity consumption Residual heat recovery systems ◼ Decrease CO₂ emissions by c.22,000 tons/year/mn tons 70% of total capacity Denitration ◼ Installation completed at all plan
Slide 14: Shaanxi Demand Outlook – Infrastructure Led
Shaanxi Demand Outlook – Infrastructure Led Key infrastructure projects Xi’an-Yan’an High-Speed Railway Xi’an-Shiyan High-Speed Railway Xi’an-Ankang High-Speed Railway ◼ The Xi’an-Yan’an Railway is a component of the Baohai ◼ The project starts at Xi'an East Station to Shiyan ◼ Xi’an-Ankang Railway
Slide 15: Shaanxi Demand Outlook – Infrastructure Led
Shaanxi Demand Outlook – Infrastructure Led Other infrastructure projects Planned Planned Project Name Construction Project Name Construction Period Period Railway Huaneng Power-Coal Transportation Railway (Central 2021-2024 Hanzhong-Bazhong-Nanchong Railway (Shannan 2020-2024 Region) Region) Expres
Slide 16: Shaanxi Demand Outlook – Infrastructure Led
Shaanxi Demand Outlook – Infrastructure Led Other infrastructure projects scheduled to commence construction Planned Planned Project Name Construction Project Name Construction Period Period Railway Xi'an-Hancheng Intercity Railway (Central Region) TBC Lanzhou-Hanzhong-Shiyan High-Speed Railway TBC
Slide 17: Xinjiang, Guizhou and Sichuan- Diversified Revenue Source
Xinjiang, Guizhou and Sichuan- Diversified Revenue Source ◼ Guizhou Strategic location close to Guiyang city within “Gui- An New Area” Guiyang Huaxi Plant Annual Capacity (mt): 1.8 Buoyant infrastructure led cement market Commissioned: April 2015 Well positioned for ongoing infrastructure dema
Slide 18: Africa - Diversified Revenue Source
Africa - Diversified Revenue Source National Cement Plant Annual Capacity (mt): 1.3 Commissioned: November 2022 ◼ D.R. Congo Strategic location close to the Lake Tanganyika which enabling exports to nearby countries, i.e. Rwanda, Burundi, western Tanzania Buoyant infrastructure led cement market
Slide 19: Financial Performance
nN OO ASR 7K BBRAGI Aaa WEST CHINA CEMENT LIMITED Financial Performance
Slide 20: Operational Performance
Operational Performance Sales volume of cement Revenue (RMB per ton) (RMB mn) 10,000 24 9,021 8,489 19.6 19.9 19.8 8,003 20 18.5 8,000 7,131 16 6,000 12 4,000 8 2,000 4 0 0 2020 2021 2022 2023 2020 2021 2022 2023 Gross profit and gross profit margin EBITDA and EBITDA margin (RMB mn) (RMB mn) 42.0% 3
Slide 21: Debt Profile & Key Credit Ratios
Debt Profile & Key Credit Ratios Debt profile 1 Total debt/EBITDA Net debt/EBITDA 4.0x 3.6x 3.5x 2.9x 2.9x 3.0x 2.8x 3.0x 2.4x 2.1x 1.6x 2.0x 1.2x 1.4x 1.0x 0.7x 0.7x 0.0x 0.0x Bank 2020 2021 2022 2023 2020 2021 2022 2023 Senior borrowings notes 59.5% 40.5% Total debt/total capitalization 2 Interest
Slide 22: Appendices
nN OO ASR 7K BBRAGI Aaa WEST CHINA CEMENT LIMITED Appendices
Slide 23: Summary of Consolidated Income Statement
Financial Information Summary of Consolidated Income Statement For the year ended 31 December RMB ’000 2020 2021 2022 2023 Revenue 7,131,052 8,002,791 8,489,135 9,020,901 Cost of Sales (4,788,586) (5,626,224) (6,307,305) (6,560,882) Gross Profit 2,342,466 2,376,567 2,181,830 2,460,019 Selling and ma
Slide 24: Summary of Consolidated Balance Sheet
Financial Information Summary of Consolidated Balance Sheet Assets As at 31 December Liabilities and Equity As at 31 December RMB ’000 2020 2021 2022 2023 RMB ’000 2020 2021 2022 2023 Non-current assets Non-current liabilities Property, plant and equipment (“PPE”) 11,161,110 13,884,979 18,195,355 20
Slide 25: Summary Consolidated Cash Flow Statements
Financial Information Summary Consolidated Cash Flow Statements For the year ended 31 December RMB ’000 2020 2021 2022 2023 Net cash generated from operating activities 2,702,612 1,959,650 2,134,538 2,700,141 Net cash used in investing activities (3,122,968) (3,516,628) (3,275,319) (3,353,393) Net c
Slide 26: Board of Directors
Board of Directors ◼ Over 32 years of cernent industry experience Mr. Zhang Jimin ◼ Chairman of the Shaanxi Cement Association and Vice Chairman of the China Cement Association Chairman & Executive Director ◼ Received professional training course in economic management from Peking University ◼ Over
Slide 27: Contact Us
Contact Us WEST CHINA CEMENT LIMITED 中国西部水泥有限公司 YAOBAI SPECIAL CEMENT GROUP CO., LTD. 尧柏特种水泥集团有限公司 No. 336 4th Shenzhou Road 中国 陕西省 西安市 Aerospace Industrial Base 长安区 Chang’an District 航天基地 Xi’an, Shaanxi, China 神舟四路336号 Tel: +86 29 8925 4988 电话： +86 29 8925 4988 Fax: +86 29 8925 4088 传真： +86 29 8925