El Sewedy Electric Company · EGX:SWDY
El Sewedy Electric — 9M 2016 Earnings Presentation
44 slides from El Sewedy Electric's earnings presentation, 2016
Slide 1: Elsewedy Electric - Integrated Energy Solutions
Slide 2: Disclaimer
DISCLAIMER Certain information contained in this document consists of forward‐looking statements reflecting the current view of the Company with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achie
Slide 3: Agenda
AGENDA An Integrated Energy Solutions Company Corporate Timeline Strategy Full Service Integration Geographic Presence Advanced Technology Business Line Review Recent Financial Performance Appendix I: Economic Environment 3 of 44 Elsewedy Electric Investor Presentation 9M‐2016
Slide 4: An Integrated Energy Solutions Company
AN INTEGRATED ENERGY SOLUTIONS COMPANY Elsewedy Electric is an energy player structured to face the challenges of the world’s fastest growing markets and the complexity of the critical electricity industry. From its start, deep product and sector specialization and unprecedented insight into local m
Slide 5: Full-Service Integration
FULL‐SERVICE INTEGRATION Elsewedy Electric is a fully integrated energy solutions provider: From raw materials such as metals and plastics to inputs across the spectrum of wires, cables and electrical products, to contracting and turnkey infrastructure projects and electricity generation through com
Slide 6: Full-Service Integration: six business lines
FULL‐SERVICE INTEGRATION Elsewedy Electric delivers full energy solutions through six business lines Wires Engineering Energy Measurement and Cables and Contracting Transformers and Management Electrical Products Renewables Power cables Transmission and Power transformers Meters Porcelain
Slide 7: Corporate Timeline
CORPORATE TIMELINE Elsewedy Electric believes that the key to thriving in a competitive marketplace is remaining at the fore of the increasingly complex landscape. The company seeks to transform as an adaptive organization strategically evolving and responding to an ever‐changing global and industry
Slide 8: Corporate Timeline
CORPORATE TIMELINE 2003 2004 2005 2006 2007 SUDANESE EGYPTIAN ITALSMEA ELSEWEDY CABLES SYRIA ELSEWEDY ELECTRIC ELSEWEDY ELECTRIC SYRIA ELECTRICAL INDUSTRIES Specialized explosion Cables production facility in GHANA Full service and fully Transformers manufacturer proof equipments Syria to serve the
Slide 9: Corporate Timeline
CORPORATE TIMELINE 2008 2009 2010 ELSEWEDY CABLES ALGERIA EL SEWEDY CABLES KSA RENAMED ELSEWEDY ELECTRIC Fully localized cables production facility filling domestic Fully localized cables Institutionalization and integration continues as Elsewedy demand production facility filling builds its full se
Slide 10: Strategy: Aggressive positioning across product, services and geography
STRATEGY Our strategy is driven by a unique corporate structure that allows Elsewedy Electric to act as both a global company with multi‐national operations and export markets, and as a truly local market player with deep roots in domestic economies. Aggressive positioning across product, services a
Slide 11: Full-Service Integration
FULL‐SERVICE INTEGRATION 11 of 44 Elsewedy Electric Investor Presentation 9M‐2016
Slide 12: Full-Service Integration: Energy and Infrastructure
FULL‐SERVICE INTEGRATION: ENERGY AND INFRASTRUCTURE Elsewedy Electric designs, develops and operates generating, transmitting and distributing infrastructure. Additionally, the company’s production divisions supply external generation, T&D and utilities players and projects. Moving forward, Elsewedy
Slide 13: Full-Service Integration: Industrial
FULL‐SERVICE INTEGRATION: INDUSTRIAL Elsewedy Electric supplies raw materials, designs and builds infrastructure and distributes electricity to industrial clients across a range of sectors. The company also develops and manages internal systems and measures and optimizes consumption at production fa
Slide 14: Full-Service Integration: Commercial
FULL‐SERVICE INTEGRATION: COMMERCIAL Elsewedy Electric produces, distributes, installs and manages full‐ service electricity solutions for commercial space development and renovation and ongoing service provisions. Sector Exposure: Offices Transformers and Management Electrical Products Energy Mea
Slide 15: Full-Service Integration: Residential
FULL‐SERVICE INTEGRATION: RESIDENTIAL Elsewedy Electric produces and distributes a full range of products that bring electricity, energy measurement and communications to regional households. Sector Exposure: New and renovated single family residences Transformers and Management Electrical Product
Slide 16: Full-Service Integration
FULL‐SERVICE INTEGRATION Elsewedy Electric’s integrated energy solutions provide a full range of offerings to produce, distribute, manage and safely use electrical power 16 of 44 Elsewedy Electric Investor Presentation 9M‐2016
Slide 17: Full-Service Integration: vertically integrated product line
FULL‐SERVICE INTEGRATION A full‐service, vertically integrated product line: Diversification across production, engineering and generation with focused electricity specialization Raw and intermediate materials and export hub in Egypt leverages low cost production, a favorable trade environment and a
Slide 18: Geographic Presence
GEOGRAPHIC PRESENCE 18 of 44 Elsewedy Electric Investor Presentation 9M‐2016
Slide 19: Geographic Presence
GEOGRAPHIC PRESENCE Today, Elsewedy Electric is a global integrated cables and electrical products manufacturer and a turnkey services provider with more than 10,000 employees working at 30 production facilities in 15 countries Wires and Cables (Total Capacity) Transformers Meters Wind Energy Genera
Slide 20: Geographic Presence: distribution network
GEOGRAPHIC PRESENCE Elsewedy Electric’s comprehensive worldwide distribution network reaches around the globe Main Export Market Engineering & Contracting Austria Ethiopia Kenya The Netherlands Uganda Finland Qatar United Kingdom Algeria Niger Bahrain Kuwait France Russia Uruguay Chad Nigeria Belgiu
Slide 21: Geographic Presence: Our structure is our strategy
GEOGRAPHIC PRESENCE Our structure is our strategy: A closely aligned federation of fully localized production and distribution centers with a global coordination center Economies of scale without compromising local producer advantages – Elsewedy considers production and distribution decisions holist
Slide 22: Advanced Technology
ADVANCED TECHNOLOGY 22 of 44 Elsewedy Electric Investor Presentation 9M‐2016
Slide 23: Approach to Emerging and Global Markets
ADVANCED TECHNOLOGY: ELSEWEDY ELECTRIC’S APPROACH TO GLOBAL MARKETS Elsewedy Electric’s Approach to Emerging and Global Markets An organization that combines global‐scale and world‐class technology with deep roots in local markets Our structure is our strategy A premium on rationalizing production
Slide 24: Advanced Technology
ADVANCED TECHNOLOGY Advanced technology acquisition and development places Elsewedy Electric at the forefront of world electricity trends, positioning the group to supply the most cost effective, clean technology to regional developing nations. Group‐wide sharing of the most advanced production tech
Slide 25: Business Line Review
ELSEWEDY ELECTRIC _>S>—=_—_——— Integrated Energy Solutions
Slide 26: Business Line Review: Wires and Cables
BUSINESS LINE REVIEW: WIRES AND CABLES Elsewedy Electric has significantly extended its core wires and cables capacity in recent years, more than doubling its annual capacity since 2007 to approximately 286,200 tons as of September 30th 2015, as Elsewedy Electric positions itself to supply significa
Slide 27: Business Line Review: Engineering and Contracting
BUSINESS LINE REVIEW: ENGINEERING AND CONTRACTING Elsewedy Electric’s Engineering and Construction groups deliver electricity generating assets and transmission and distribution (T&D) networks on an EPC basis. The company also expects to own and operate assets across the power generation and distrib
Slide 28: Engineering and Contracting: PSP
BUSINESS LINE REVIEW: ENGINEERING AND CONTRACTING Power Systems Projects (PSP) integrates Engineering, Procurement and Construction services with complete project management, tailoring services to meet a broad range of client projects and business activities across the region – from coal and gas‐ fi
Slide 29: Engineering and Contracting: Elsewedy Electric T&D
BUSINESS LINE REVIEW: ENGINEERING AND CONTRACTING Africa is well endowed with the potential for cost‐effective energy resources on a large scale: Regional power trade is the solution to the continent’s high‐cost and low‐efficiency environment. But making regional power trade work is a considerable c
Slide 30: Engineering & Contracting: Clients and Capabilities
BUSINESS LINE REVIEW: ENGINEERING & CONTRACTING Clients Capabilities Generation Types Financials Public Utilities EPC – Engineering, Wind SC – Supply credit Independent power producers (IPPs) Procurement & Construction Diesel (LFO) EPC Credit Governmental and public facilities EES
Slide 31: Engineering & Contracting: Revenues and Margin
BUSINESS LINE REVIEW: ENGINEERING & CONTRACTING Elsewedy Electric’s engineering and contracting solution offers regional clients a single solution to full generation and distribution needs. Engineering & Contracting Revenues (EGP mn) 6,437 5,257 Turnkey Gross Profit Margin 5,072 27% 21% 18% 18% 15%
Slide 32: Business Line Review: Transformers
BUSINESS LINE REVIEW: TRANSFORMERS Elsewedy Transformers is the first and only producer of power (step up) transformers in the region up to 220KV. The group produces a full range of low, medium and high voltage transformers ‐‐ including power (step up) and distribution (step down) transformers . — F
Slide 33: Business Line Review: Electrical Products
BUSINESS LINE REVIEW: ELECTRICAL PRODUCTS In June 2008 Elsewedy Electric acquired the Egyptian Company for Manufacturing Electric Insulator (ECMEI), the Middle East’s leading ceramics insulators manufacturer. Elsewedy Electric’s acquisition of Iskraemeco establishes a global metering and measurement
Slide 34: Business Line Review: Meters
BUSINESS LINE REVIEW: METERS In 2007 Elsewedy Electric acquired Slovenia’s Iskraemeco, one of the Energy Measurement and Management world’s most technologically advanced producers of metering equipment and services. The Iskraemeco Iskra Amesi acquisition establishes a global metering and measurement
Slide 35: Business Line Review: Wind
BUSINESS LINE REVIEW: WIND Elsewedy for Wind Energy Generation (SWEG) integrates the world class technology and production. The business line constitutes a significant step forward for wind power in Africa & the Middle East. SWEG – Elsewedy for Wind Energy Generation Wind Towers – SET Wind Farm Deve
Slide 36: Recent Financial Performance
Recent Financial Performance
Slide 37: Management Review: Consolidated Results for 9M-2016
MANAGEMENT REVIEW Consolidated Results for 9M‐2016 ended September 30th , 2016 Effective January 1st 2016, proportionate consolidation is no longer permitted under Egyptian Accounting Standards (EAS). Accordingly the net profit of Doha Cables and ElSewedy Cables Qatar will appear as “Income from Inv
Slide 38: Revenues and Gross Profit Contribution by Business Line
MANAGEMENT REVIEW Revenues and Gross Profit Contribution by Business Line 0 Revenues by Revenues by 3% 2% 3% Business Line Business Line 9M‐2016 4% 4% 2% 9M‐2015 33% 37% 58% 56% Gross profit 4% Gross profit 5% 5% by Business 9% by Business Line 9M‐2016 5% Line 9M‐2015 6% 44% 44% 38% 39% Wires & Cabl
Slide 39: Wire & Cables, Meters and Transformers Segments
MANAGEMENT REVIEW Wire & Cables Segment Meters Segment Transformers Segment Wires & Cables segment revenues increased by Revenues from the meters segment increased by Revenues from the transformers segment increased 11% to reach EGP 8,896 million in 9M 2016 versus 26% in 9M 2016 versus 9M 2015 to re
Slide 40: Turnkey Projects, Other Electrical Products and Debt
MANAGEMENT REVIEW Turnkey Projects Other Electrical Products Segment Debt Turnkey revenues decreased by 4%, reaching EGP Revenues from the Electrical products segment Net debt as of June 30th, 2016 decreased by 11% to 5,072 million in 9M 2016 versus EGP 5,257 million increased by 20% in 9M 2016 vers
Slide 41: Financial Performance: Consolidated Income Statement
FINANCIAL PERFORMANCE: CONSOLIDATED INCOME STATEMENT EGP (000)’s Q3-2016 Q3-2015 (Restated) 9M-2016 9M-2015 (Restated) Sales Wires & Cables 2,667,472 2,598,197 8,895,513 8,001,429 Electrical Products 522,628 433,565 1,459,920 1,118,095 Turnkey Projects 1,683,531 1,022,312 5,071,870 5,257,132 Total S
Slide 42: Financial Performance: Consolidated Balance Sheet
FINANCIAL PERFORMANCE: CONSOLIDATED BALANCE SHEET 31-12-15 EGP (000)’s 31-03-16 30-06-16 30-09-2016 (Restated) Fixed Assets 2,955,917 3,083,628 3,087,163 3,210,945 Investments 456,958 565,849 627,519 695,827 Other Long Term Assets and Goodwill 113,990 100,284 100,352 106,659 Other Long Term Receivab
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Slide 44: Elsewedy Electric - Integrated Energy Solutions
ELSEWEDY ELECTRIC [= Integrate: Energy Solutions