Bua Cement Plc · NSENG:BUACEMENT
Bua Cement — FY2019 and Q1 2020 Earnings Presentation
33 slides from Bua Cement's earnings presentation, 2020
Slide 1: BUA Cement Plc FY 2019 and Q1'2020 Presentation to Investors and Analysts
BUA CEMENT PLC FY 2019 and Q1’2020 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: Agenda
01 13 O Our Corporate Philosophy Faces of Sustainability How We Create Value Amidst Low GDP Per Capita 02 14 COVID-19: Business Continuity Assessment Company Overview 03 U 15 Macro-economic Environment (Q1’2020) 04 16 T Financial Highlights Strategic Milestones Where We Operate 05 17 EBITDA Assessme
Slide 5: Our Philosophy, Vision, Mission
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: Creating Value Amid Low GDP Per Capita
Creating Value Amid Low GDP Per Capita Population Population Urbanization Housing Infrastructure Industrial Nigeria Cement SSA Industry Growth Rate Rate Deficit Deficit Activity Growth Rate Growth 214 2.53% 4.23% 22 $300 billion 22.25% 7% (2019) 5%-6% million million (infrastructure to GDP stock, (2
Slide 7: 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 N175.52 billion (FY2019)
Slide 8: 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 9: 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 9
Slide 10: Macro-Environment & Sectoral Drivers (FY2019)
Macro-Environment & Sectoral Drivers (FY2019) 23% 2.27% 0.05% Oil price was up 23% to GDP growth up 2.27% Naira appreciates by $66/bbl., resulting from (2019) from 1.91% 0.50% to N362.84/$; a trade disputes, (2018), resulting result of a stable sanctions and geo- from increased economic environment
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: Financial Highlights (FY 2019)
Financial Highlights (FY 2019) … our focus on value continues to sustain performance FY2019 FY2018 %Δ N’000 except otherwise stated Cement production (kt)1 4,501 2,901 55.2 Revenue 175,518,326 119,012,572 47.5 EBITDA margin (%) 47.0 47.0 - EBIT 71,428,017 42,841,765 66.7 EBIT margin (%) 40.7 36.0 -
Slide 13: EBITDA Evolution
EBITDA Evolution (Δ;y/y) EBITDA (2019) 81,985 Depreciation 7,521 SD&A (3,726) Gross Profit 22,490 EBITDA (2018) 55,700 (30,000) 0 30,000 60,000 90,000 N’millions Comments • Gross profit was up +37.51% or N22.49 billion from increased production volumes; though moderated by energy cost from higher ga
Slide 14: Resilient performance in a challenging economic environment
Resilient performance in a challenging economic environment …business model aided by discipline of focus and strategy execution 1 EBITDA (N’mn) 81,985 2 EBITDA per ton (‘000) 18.95 18.21 3 EBITDA Margin 46.80% 46.70% 55,699 2018 2019 2018 2019 2018 2019 Comments • EBITDA rises by 47.2% from N55.7 bi
Slide 15: Balancing Cost Efficiencies with Investments in Route-to-Market Strategy
Balancing Cost Efficiencies 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) 20.68 8.06 2.63 20.09 7.03 2.07 2018 2019 2018 2019 2018 2019 Comments • Despite the inflationary environment, driving cost efficienc
Slide 16: Free Cash Flow & Net Debt Evolution
Free Cash Flow & Net Debt Evolution 80 66 N’BN 60 40 26 20 16 16 10 0 (1) 1 (6) (20) (23) (21) (40) (60) (54) 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 D
Slide 17: Faces of our Sustainability Footprint
Faces of our Sustainability Footprint 17
Slide 18: COVID-19 – Risk Identification & Mitigants
COVID-19 – Risk Identification & Mitigants Liquidity 04 Scenario planning and stress tests have been undertaken to ensure appropriate contingencies are undertaken. This is combined with appropriate cost controls, particularly in the area of discretionary spending and the postponement of non-critical
Slide 19: Macro-Environment & Sectoral Drivers (Q1'2020)
Macro-Environment & Sectoral Drivers (Q1’2020) 65.55% 1.87% 6.26% Oil price was down GDP growth Naira depreciated by 66% to $22.74/bbl., decelerated to 1.87% 6.26% to N385.55/$; a resulting from an over (Q1’20) from 2.10% result of the supplied oil market, (Q1’19), with increased coronavirus outbrea
Slide 20: Financial Highlights – Q1'2020
Financial Highlights – Q1’2020 N’000 except otherwise stated Q1’2020 Q1’2019 %Δ Cement production (kt)1 1,328 1,107 20.0 Revenue 53,969,025 43,133,632 25.1 EBITDA margin (%) 45.6 48.9 (3.3) EBIT 24,625,484 21,095,885 16.7 EBIT margin (%) 38.9 42.1 (3.2) Net Finance cost (854,833) (765,916) 11.6 Prof
Slide 21: EBITDA Evolution
EBITDA Evolution (Δ;y/y) EBITDA (Q1'2020) 24,625 Depreciation 705 SD&A (615) Gross profit 3,439 EBITDA (Q1'2019) 21,095 -5,000 0 5,000 10,000 15,000 20,000 25,000 30,000 N’millions Comments • Gross profit increased by N3.44 billion from N21.05 billion in Q1’2019 to N24.49 billion, as at Q1’2020; ari
Slide 22: Increased Operations; Growing Market Acceptance
Increased Operations ; Growing Market Acceptance 1 EBITDA (N’mn) 2 EBITDA per ton (‘000) 3 EBITDA Margin 24,625 48.91% 19.1 45.63% 18.5 21,096 Q1'2019 Q1'2020 Q1'2019 Q1'2020 Q1'2019 Q1'2020 Comments • EBITDA balance for the review period rose by 16.7% from N21.10 billion in Q1’2019 to N24.63billion
Slide 23: Consolidation on Enhanced Capacity
Consolidation on Enhanced Capacity Cost of sales per ton (N‘000) Energy cost per ton (N‘000) Dist. & sell. cost per ton (N‘000) 2.54 2.53 22.2 20.0 8.0 7.8 Q1'2019 Q1'2020 Q1'2019 Q1'2020 Q1'2019 Q1'2020 Comments • During the period, cost of sales increased 11% to N22,188/ton, arising from energy mi
Slide 24: 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 25: Strategic Priorities in 2020
Strategic Priorities in 2020 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 25
Slide 26: Board of Directors
Board of Directors 26
Slide 27: Board of Directors
Board of Directors Billionaire industrialist and philanthropist, Abdul Chimaobi Madukwe is the Group Chief Operating Samad Rabiu, is the Executive Chairman/CEO of Officer. He holds a Master's degree in Business BUA Group – a company he founded in 1988 and Administration from ESUTH Business School an
Slide 28: Board of Directors
Board of Directors Engr Yusuf Haliru Binji the Managing Director of Senator Khairat Abdulrazaq- Gwadabe, a Nigerian, BUA Cement is a Chemical Engineer with degrees is a Barrister-at-Law and a Solicitor of the Supreme from Ahmadu Bello University and the University Court of Nigeria and the Managing p
Slide 29: Financials Summary
Financials Summary O- BUA CEMENT
Slide 30: Financials – Income Statement
Financials – Income Statement Figures in N’000 Dec 2019 Dec 2018 Revenue 175,518,326 119,012,572 Cost of sales (93,075,293) (59,060,016) Gross profit 82,443,033 59,952,556 Administrative expenses (10,516,380) (12,522,190) Distribution & selling expenses (11,844,,509) (6,080,823) Impairment write bac
Slide 31: Financials – Balance Sheet
Financials – Balance Sheet Figures in N’000 Dec-2019 Dec-2018 Property, plant & equipment 393,406,271 387,435,399 Right-of-use-asset 76,503 - Intangible assets 2,781,915 1,023,489 Deferred tax 12,140,877 10,972,246 Non-current assets 408,405,566 399,431,134 Inventories 27,201,580 20,933,199 Due from
Slide 32: Financials – Balance Sheet (contd.)
Financials – Balance Sheet (contd.) Figures in N’000 Dec-2019 Dec-2018 Lease liabilities 6,675 - Long-term borrowings obligations - 76,077 Employee benefit obligations 2,908,526 2,201,781 Deferred tax liabilities 7,492,289 1,288,054 Deferred income - 47,911 Non-current liabilities 10,407,490 3,613,8
Slide 33: Thank You
Thank You www.buacement.com 5th Floor, BUA Towers PC 32, Churchgate Street Victoria Island, Lagos, Nigeria Email: investor.relations@buacement.com 33
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