Arabian Cement Company · EGX:ARCC
Arabian Cement — H1 2015 Earnings Presentation
20 slides from Arabian Cement's earnings presentation, August 2015
Slide 1: Arabian Cement Company 1H15 Investors Presentation
Arabian Cement Company 1H15 Investors Presentation August 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 20 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 fleet of 25 trucks as well as by 3rd party business partners. Express Wa
Slide 9: Period Highlights
Period Highlights Main Highlights In early 1H15, the market witnessed a decline in prices then started to pickup in April and May, yet it declined again in June to April levels due to the low demand during the month of Ramadan. During 1H 2015, the minister of finance announced the reduction of corpo
Slide 10: Period Highlights (continued): Main KPIs
Period Highlights (continued) Main KPIs Clinker Production (MN MT) and Utilization Rates Cement Production and Utilization Rates 1.96 2.28 1.64 1.98 2.05 1.60 1.90 1.28 93% 76% 78% 91% 61% 79% 76% 82% 1H12 1H13 1H14 1H15 1H12 1H13 1H14 1H15 Clinker Production Clinker Utilization Rate Cement Producti
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 has been relatively stable over the past few years despite ongoing political and 26.3 economic unrest. 26.0 •Egypt’s resid
Slide 12: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Brand 1H14 1H15 609 598 562 583 7% 536 9% 3% 502 9% 5% 9% 88% 84% 89% 88% Al Mosalah Al Tahrir Bulk 1H15 1H14 Al Mosalah Al Tahrir Bulk Breakdown by Type 1H14 1H15 608 583 560 5% 3% 502 3% 7% 95%97% 93%97% 1H15 1H
Slide 13: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Point of Sale 626 1H14 1H15 594 565 41% 43% 542 57% 59% 1H15 1H14 Delivered Ex-Factory Delivered Ex-Factory Breakdown by Market 608 1H14 1H15 556 532 501 1% 0.4% 99% 99.6% 1H15 1H14 Local Exports Local Exports 13
Slide 14: COGS Overview
COGS Overview COGS and ACC Cost Advantages COGS Breakdown ACC Cost Advantages ACC moved ahead of other industry players with embarking on alternative 1H15 1H14 energy investments and is now able to get its energy needs from coal and RDF. RDF: 11% 7% - The Company started using RDF in November 20
Slide 15: CAPEX Overview
CAPEX Overview CAPEX (MN EGP) 152 3811 43 182 27 135 822 890 1559 2006-2008 2009 2010 2011 2012 2013 2014 1H15 Total - The company paid EGP43 mn during 1H15 for the completion of the coal mill and hot disc projects in addition to the addition of the new warehouse in Danamhour and other few infrastru
Slide 16: Debt
Debt Outstanding Debt & Debt Structure Outstanding Debt (Thousand EGP) Interest Coverage Ratio 871 8 585 5 424 4 300 3 176 53 2013 2014 2015 2016 2017 2018 1H12 1H13 1H14 1H15 Loans Structure (EGP vs. USD) 1H14 1H15 17% 27% 73% 83% Loans in USD Loans in EGP Loans in USD Loans in EGP 16
Slide 17: 1H15 Financials Review: Income Statement
1H15 Financials Review Income Statement MN EGP 1H15 1H14 1H13 1H12 Revenues (Thousand EGP) Revenue 1,135 1,146 1,028 978 1,146 1,200 1,135 6 • Revenues declined 1% in Cost of goods sold 735 681 589 501 54% 1H15 compared 1H14. 1,100 1,028 4 Gross profit 401 465 439 476 978 1,000 -1% 11% 2 • Cost per
Slide 18: 1H15 Financials Review: Balance Sheet
1H15 Financials Review Balance Sheet MN EGP 1H15 1H14 1H13 Assets Gearing Non-current Assets Property plant and equipment, net 2,597 2,618 2,268 Projects under construction 123 123 14 4.4 Intangible assets 120 143 624 Investment in subsidiaries 9 9 9 Payments under long-term investment 0 0 0 3.4 Tot
Slide 19: 1H15 Financials Review: Cash Flow Statement
1H15 Financials Review Cash Flow Statement MN EGP 1H15 1H14 1H13 1H12 Cash flows from operating activities Cash (EGP mn) Net profit before tax 183 249 194 278 Interest income -1 0 -1 -2 Interest expense 44 47 60 71 Depreciation expense 86 83 68 80 Amortization of intangible assets 11 11 25 11 Gain f
Slide 20: Future Ready
Future Ready For more Information Please Contact: Investor Relations: IR@arabiancementcompany.com www.arabiancementcompany.com 20
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