Bua Cement Plc · NSENG:BUACEMENT
Bua Cement — FY2020 Earnings Presentation
27 slides from Bua Cement's earnings presentation, 2021
Slide 1: BUA Cement Plc: Sustaining Value and Competitiveness
BUA CEMENT PLC Sustaining Value and Competitiveness Full Year 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 and Sokoto Cement are products of BUA Cement PLC
*BUA Cement and Sokoto Cement are products of BUA Cement PLC. 3
Slide 4: Contents
CONTENTS Our Corporate Philosophy 05 Operational Highlights 06 Financial Highlights 10 Strategic Priorities 16 Sustainability 21 Appendix 24 4
Slide 5: Our Philosophy, Vision, Mission and Value Proposition
Our Philosophy Our Vision Our Mission Our Value Proposition To be a highly competitive To produce and market high We are a professional supplier of premum market leader in Nigeria quality cement for national brand cement and provide reliable delivery development to our customers with application tra
Slide 6: Company Overview
Company Overview Largest Cement producer 1 in the North-West, South-South and South East 2 Modern lines 2 Operational across two States N2.6 trillion 3 Market capitalisation as at Dec. 2020 >60 per cent 4 Capacity utilisation attained N209.4 billion (FY2020) 5 Revenue 5.1 mmt (FY2020) 6 Cement volum
Slide 7: Flawless Execution, Disciplined Approach
Flawless Execution, Disciplined Approach Incorporation of CCNN; Commissions its 0.5mmt 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 instal
Slide 8: Strategic Positioning, Increasing Market Presence
Strategic Positioning, Increasing Market Presence Sokoto Plant Sokoto State Line 1 500,000MTPA Line 2 1.5MMTPA Line 3 3MMTPA (2021) BUA Cement Plc Obu Plant Head Office Edo State Victoria Island, Lagos, Nigeria Line 1 3MMTPA Line 2 3MMTPA 8
Slide 9: Obu Plants
OBU PLANTS OBU PLANT (LINES 1 & 2) LOCATION PRODUCTION CAPACITY COMPLETION DATE Okpella, Edo State Line 1 – 3million mtpa 2015 – Obu Cement Line 1 South-South Nigeria Line 2 – 3million mtpa 2019 – Obu Cement Line 2 9
Slide 10: Highlights from 2020 – We Continue to Deliver Value
Highlights from 2020 – We Continue to Deliver Value PERFORMANCE 1 Resilient performance driven by superior product quality, with a well instituted Business Continuity Plan (BCP). EBITDA 2 PROFITABILITY 3 EPS 4 EBITDA increases by 18.0% to N96.8 billion, Profit before Tax (PBT) and Profit after Tax E
Slide 11: Uncertain and Challenging Macro Economic Environment
Uncertain and Challenging Macro Economic Environment Oil Price GDP Foreign Movement Growth Exchange Oil price down GDP growth Naira depreciated by 21.5% (y/y) to contracted by 12.6% from N364.5/$, $51.8/bbl. (Dec. 1.9% in 2020, as at Dec. 2019 to 2020) amid the having expanded N410.2/$, as at Dec. g
Slide 12: Resilient Performance Built on Readiness
Resilient Performance Built on Readiness 1 Revenue per ton (N’000) 2 EBITDA (N‘bn) 3 EBITDA Margin 41.1 96.8 39 82 46.7% 46.2% 2019 2020 2019 2020 2019 2020 • Revenue per ton rose by 5.3% to N41,066/ton, as at FY2020 from N38,995/ton, as at FY2019; due to lifting bonus adjustment and increased volum
Slide 13: Rising Sales Volume Drives EBITDA
Rising Sales Volume Drives EBITDA (Δ;y/y) EBITDA (2020) 96.8 Depreciation 1.4 SD&A (net) 0.4 Cost of sales (20.9) Revenue 33.9 EBITDA (2019) 82.0 (50) (20) 10 40 70 100 N’billions • Revenue during the year was up 19.3% to N209.4 billion, as at FY2020 from N175.5 billion, as at FY2019, driven by incr
Slide 14: Balancing Cost Containment with Investment in Route-to-Market Strategy
Balancing Cost Containment with Investment in Route-to-Market Strategy Cost of sales Energy cost Dist. & sell. cost per ton (N‘000) per ton (N‘000) per ton (N‘000) 22.3 20.6 0.96 0.95 8.1 8.4 2019 2020 2019 2020 2019 2020 • Cost of sales/ton recorded an 8.1% increase to N22,345/ton, as at FY2020 fro
Slide 15: Sokoto Plants
SOKOTO PLANTS SOKOTO PLANT (LINE 3) LOCATION PRODUCTION CAPACITY COMPLETION DATE Kalambaina, Sokoto New Line 3 – 3million mtpa 2021 (North-West, Nigeria) 15
Slide 16: In Pursuit of Value Creating Priorities
In Pursuit of Value Creating Priorities Priority Activity Status Areas • Drive revenue and cost synergies across revenue and margin lines Synergy • Continue hamonisation of sales and marketing strategy across the two plants • Increase customer on-boarding in new locations New Markets • Pursue steady
Slide 17: Projects, Cost and Funding
Projects, Cost and Funding Projects Project Cost Funding Sources Guyuk, Adamawa State Estimated cost for all three Series II Bond Issue Obu, Edo State (3) plants is $1.1 billion Internally generated Kalambaina, Sokoto State sources …adopting an approach that further enhances value 17
Slide 18: Investing for Competitiveness and Development
Investing for Competitiveness and Development The intended expansion at Our entry into Adamawa State, Obu, Edo State will be a OBU Line 3 Adamawa North-East Nigeria will see the brownfield 3mmtpa plant, Line 1 construction of a greenfield commencing in 2021. Thus, plant with an annual capacity bring
Slide 19: Well Positioned to Lead Export Drive
Well Positioned to Lead Export Drive The commencement of AfCFTA provides Comments enormous upside for export activities • West Africa to witness rising Large clinker urbanization rates. This we imports from observe through: outside Africa The % of population living in urban areas, which rose from
Slide 20: BUA Cement (Sokoto)
BUA Cement (Sokoto) Line 3 under construction 20
Slide 21: Leading Through Sustainability
Leading Through Sustainability CO2 Emission Dust Emission (KgCO2/TCEM) (Mg/M3) 504 2021 502 15 2021 13 Water Usage & Energy Efficiency Conservation (Kcal/kg) (M3/DAY) 154 2021 157 754 2021 752 Inserted picture: New, sustainable and resilient community development at Sabon Garin Gidam Bailu, Sokoto S
Slide 22: Making Positive Changes
Making Positive Changes Top: BUA Specialist Care Centre, Kano, a 200-bed special care facility for COVID. Bottom left to right: COVID-19 Food Outreach across Nigeria; Donation of over 65 Ambulances and 25 Sport Utility Vehicles (SUV) to State …through impactful CSR, everywhere we go Governments acro
Slide 23: BUA Cement Plant Sokoto
BUA CEMENT PLANT SOKOTO KEY FACTS 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 2021 Line-1 Line-2 Line-3 23
Slide 24: Appendix
APPENDIX 24
Slide 25: Board of Directors
Board of Directors ABDULSAMAD RABIU YUSUF BINJI JACQUES PIEKARSKI CHIMAOBI MADUKWE Chairman Managing Director/CEO Executive Director/CFO Non-Executive Director Abdul Samad Rabiu, CON., is Yusuf Haliru Binji is the Jacques Piekarski is a Chimaobi Madukwe is a Non- the Chairman of BUA Cement Managing
Slide 26: Board of Directors
Board of Directors KABIRU RABIU FINN ARNOLDSEN KHAIRAT A. GWADABE SHEHU ABUBAKAR Non-Executive Director Non-Executive Director Independent Non-Executive Independent Non-Executive Director Director Kabiru Rabiu is a Non-Executive Finn Arnoldsen, Norwegian, is a Senator Khairat Abdulrazaq- Shehu Abuba
Slide 27: Thank You
Thank You www.buacement.com 5th Floor, BUA Towers PC 32, Churchgate Street Victoria Island, Lagos, Nigeria Email: investor.relations@buacement.com 27