Arabian Cement Company · EGX:ARCC
Arabian Cement — 9M 2014 Earnings Presentation
20 slides from Arabian Cement's earnings presentation, January 2015
Slide 1: Arabian Cement Company 9M14 Investors Presentation
Arabian Cement Company 9M14 Investors Presentation January 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 45.0% fleet of 25 trucks as well as by 3rd party business partners. Expr
Slide 9: Period Highlights
Period Highlights Main Highlights In November 2014, the BOD approved a JV with Cementos Relampago, a sister company, to establish a grinding facility in Brazil with a capacity of 230k tpa at an investment cost of EUR 23 mn, 50% of which will be financed through debt. ACC’s share is 60%, contributing
Slide 10: Period Highlights (continued)
Period Highlights (continued) Main KPIs Clinker Production (MN MT) and Utilization Rates Cement Production and Utilization Rates 3.50 94% 100% 3.50 100% 85% 87% 90% 80% 90% 3.00 77% 3.00 3.25 78% 2.95 80% 2.99 80% 2.94 2.50 62% 70% 2.50 70% 2.42 56% 2.00 2.35 60% 60% 2.00 50% 2.10 50% 1.95 1.50 40%
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 51,191 has been relatively stable over the past few years despite ongoing political and 50,679 economic unrest. 50,177 •Eg
Slide 12: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Brand 9M13 9M14 4% 3% 612 601 592 1% 0% 572 5% 544 8% 514 502 5% 463 9% 89% 89% 89% 88% Al Mosalah Al Tahrir Al Sadd Bulk Al Mosalah Al Tahrir Al Saad Bulk 9M13 9M14 Breakdown by Type 592 611 9M13 9M14 514 463 5%
Slide 13: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Point of Sale 9M14 628 9M13 597 531 502 35% 43% 57% 65% Delivered Ex-Factory 9M13 9M14 Delivered Ex-Factory Breakdown by Market 9M13 9M14 610 514 532 2% 0% 448 98% 100% 9M13 9M14 Local Exports Local Exports 13
Slide 14: COGS Overview
COGS Overview COGS and ACC Cost Advantages COGS Breakdown ACC Cost Advantages 29M14 9M13 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% of its energy needs by mid of Q2 2015. 13% RDF: 30% 31
Slide 15: CAPEX Overview
CAPEX Overview CAPEX (BN EGP) .11 .03 .14 .82 .18 3.73 .89 1.56 2006-2008 2009 2010 2011 2012 2013 9M2014 Total - The company has paid EGP 113 mn for CAPEX during 9M14 mainly for the coal and hot disc projects related to the transformation to using coal and Refuse Derived Fuel as the main sources of
Slide 16: Debt: Outstanding Debt & Debt Structure
Debt Outstanding Debt & Debt Structure Outstanding Debt (Thousand EGP) Interest Coverage Ratio 1,485 3.5 3.5 1,258 2.8 872 1.9 490 313 198 90 48 2013 2014 2015 2016 2017 2018 2019 2020 9M11 9M12 9M13 9M14 Loans Structure (EGP vs. USD) 9M14 9M13 24% 29% 76% 71% Loans in USD Loans in EGP Loans in USD
Slide 17: 9M14 Financials Review: Income Statement
9M14 Financials Review Income Statement MN EGP 9M14 9M13 2013 2012 2011 Revenues (Thousand EGP) Revenue 1,788 1,532 2,064 1,854 1,354 • ACC average prices Cost of goods sold -1,100 -901 -1,190 -1,001 -768 2000 1788 1532 50% 1379 increased by 19% 944 compared to the previous Gross profit 689 631 874
Slide 18: 9M14 Financials Review: Balance Sheet
9M14 Financials Review Balance Sheet MN EGP 9MH14 2013 2012 2011 Gearing Assets Non-current Assets Property plant and equipment, net 2,696 2,647 2,324 2,928 Projects under construction 67 138 9 12 Intangible assets 137 154 649 199 5.3 Investment in subsidiaries 9 9 9 Payments under long-term investm
Slide 19: 9M14 Financials Review: Cash Flow Statement
9M14 Financials Review Cash Flow Statement MN EGP 9M14 9M13 2013 2012 2011 Cash (EGP mn) Cash flows from operating activities Net profit before tax 386 325 439 443 298 208 Interest income -1 -1 -1 -3 -1 169 Interest expense 71 90 120 132 94 Depreciation expense 125 124 165 163 107 Amortization of in
Slide 20: Future Ready
Future Ready For more Information Please Contact: Investor Relations: IR@arabiancementcompany.com www.arabiancementcompany.com 20
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