Cementos Molins, S.A. · BME:CMO
Cementos Molins — FY2017 Earnings Presentation
25 slides from Cementos Molins's earnings presentation, Feb 28, 2018
Slide 1: Presentation Results 2017
1 Presentation Results 2017 www.cemolins.es © 2018 Cementos Molins SA. All Rights Reserved.
Slide 2: Solid growth of the results in 2017
SOLID GROWTH OF THE RESULTS IN 2017... 2 Proportional criterion Variation % ▪ Income from 2017 increased by 13% M€ 2017 2016 Variation % constant ER thanks to the growth in volume and a (1) good price evolution. Income 779 691 13% 19% EBITDA 193 168 15% 22% ▪ The Net Result of 2017 accounts for EBIT
Slide 3: With improvements in the operating margins
...WITH IMPROVEMENTS IN THE OPERATING MARGINS... 3 Figures in M€ and with the proportionality criterion Increase in energy costs Price increases in (Spain and Mexico account for most countries over 40% D cost) and high -59.5 inflation in Argentina 76.6 -5.8 -12.2 24.8% 24.4 25.4 % Especially Spain a
Slide 4: Especially in Argentina, Spain and Mexico
...ESPECIALLY IN ARGENTINA, SPAIN AND MEXICO... 4 Figures in M€ and with the proportionality criterion INCOME EBITDA Variation % Variation % M€ 2017 2016 Variation % constant ER 2017 2016 Variation % constant ER Spain 234 208 13% 25 20 29% Mexico 232 204 14% 18% 110 97 13% 17% Argentina 176 142 23%
Slide 5: Highlights in 2017 by countries
HIGHLIGHTS IN 2017 BY COUNTRIES 5 ▪ Spain ✓Cement consumption improves in our reference market and our sales increased in every business area. ✓The results in the cement business were penalised by both the increases in energy costs and the decrease in the export price, aggravated by the performance
Slide 6: Highlights in 2017 by countries
HIGHLIGHTS IN 2017 BY COUNTRIES 6 ▪ Tunisia ✓ Decrease in export volumes due to the operational difficulties in the Algerian and Libyan markets. ✓ Impact of the increase in energy costs and the depreciation of the Tunisian dinar. ▪ Uruguay ✓ The weak domestic consumption has been compensated by the
Slide 7: Sustainability at the heart of our strategy
7 SUSTAINABILITY... ...AT THE HEART OF OUR STRATEGY www.cemolins.es © 2018 Cementos Molins SA. All Rights Reserved.
Slide 8: Sustainability barometer objective achieved
8 …for the second year in a row, we have achieved the overall sustainability barometer objective established in 2016… www.cemolins.es © 2018 Cementos Molins SA. All Rights Reserved.
Slide 9: Sustainability barometer
SUSTAINABILITY “BAROMETER” 9 Key indicators X,X / 10 PLANET 1 KW/h x Tonne of cement 2 Mcalories x Tonne of clinker PEOPLE 3 Accident frequency index 4 Employee satisfaction index ▪ We define a “best in class” of the market as a 10 for each of the 4 key indicators. ▪ We position ourselves to face th
Slide 10: Improvement of the sustainability barometer 2017
IMPROVEMENT OF THE SUSTAINABILITY BAROMETER 2017 10 KW/h x Tonne of Cement KW/h x Tonne of Clinker Frequency index Satisfaction index Three out of the four barometer indicators meet the improvement objectives. During 2018 the actions regarding the heat-input efficiency will be further strengthened (
Slide 11: Corporate Presentation
11 CORPORATE PRESENTATION www.cemolins.es © 2018 Cementos Molins SA. All Rights Reserved.
Slide 12: A family cement business listed in Spain
A FAMILY CEMENT BUSINESS LISTED IN SPAIN... 12 Integrated cement 12 manufacturing plants Num. Plants (*) in progress Income 2017 distributed across 8 Proportional criterion countries Others 1 2 12% 3 1 Prefabricate 9% 1* 1 15% 64% 1 Concrete 2 Free Float Treasury stock 5% 4% Cement Share Distribut
Slide 13: In a state of constant change (90 years of history)
...IN A STATE OF CONSTANT CHANGE (90 YEARS OF HISTORY) 13 ESTABLISHMENT CEMENTOS MOLINS Corporación Moctezuma Lafarge Surma Cement Itacamba Cementos (SPAIN) (Mexico) (Bangladesh) (Bolivia) 1928 1980 1988 1991 2006 2008 2016 2019 Cementos Avellaneda Cementos Artigas Sotacib Ecocementos (Argentina)
Slide 14: With a focus on the creation of long-term value
...WITH A FOCUS ON THE CREATION OF LONG-TERM VALUE 14 Is committed to organic Cementos Molins has been involved from the outset in the growth... without ruling construction of most of its plants... out M&A opportunities ... maximising the creation of value in its investments... In countries with l
Slide 15: With sustained growth in the past few years
... WITH SUSTAINED GROWTH IN THE PAST FEW YEARS 15 INCOME (M€) (*) EBITDA (M€) (*) + 6.14 % + 15.87 CAGR 13% % CAGR 15% 193 165 168 107 127 152 157 180 119 121 6 12 11 13 -12 2013 2014 2015 2016 2017 Margin Margen Ebitda 17,4% 20,1% 22,1% 24,4% 24,8% Ebitda International EBITDA National EBITDA 2017
Slide 16: With a solid cash generation
...WITH A SOLID CASH GENERATION 16 OPERATING CASH FLOW (*) 127 131 106 2015 2016 2017 ▪ Stable cash generation because of the geographical diversification strategy and a good operational management. ▪ Growth in cash flows: it increased its working capital in some countries in 2017 in order to suppor
Slide 17: And with a low level of indebtedness
...AND WITH A LOW LEVEL OF INDEBTEDNESS 17 NET DEBT / EBITDA (*) NET DEBT in M€ (*) - 68% 255 - 43% 194 190 188 146 2013 2014 2015 2016 2017 ▪ During the period from 2014 to 2016, despite the high volume of investments (€240M), the debt remained stable due to the cash flow generated. ▪ The current l
Slide 18: Expectations 2018-2020
18 EXPECTATIONS 2018-2020 www.cemolins.es © 2018 Cementos Molins SA. All Rights Reserved.
Slide 19: Our strategic priorities
OUR 4 STRATEGIC PRIORITIES 19 1. To purse profitable growth in those countries where we are already established. 2. To grow in new markets or expand the existing ones in order to guarantee long-term growth. 3. To place sustainability at the core of the business and to develop business opportunities
Slide 20: Medium-term prospects of recovery in Spain
MEDIUM-TERM PROSPECTS OF RECOVERY IN SPAIN 20 M€ MT ▪ The cement consumption has recovered from its historic low in 2013. Source: Oficemen: +11% in 2017. ▪ In the coming years there should be a change in the low levels of public works which have been observed for several years now. ▪ The building an
Slide 21: And of sustained growth in emerging countries
...AND OF SUSTAINED GROWTH IN EMERGING COUNTRIES 21 KG OF CEMENT PER CAPITA ▪ Cement consumption will continue to grow in emerging countries in order to satisfy the need for infrastructures and housing due to the demographic development... ▪ ...with margins which are higher than those obtained in mo
Slide 22: Where we invest into new capacity
... WHERE WE INVEST INTO NEW CAPACITY ... 22 Aggregated capacity (Mt cement) + 24% Proportional capacity (Mt cement) + 20% ▪ The new capacity installed at the end of 2016 in Mexico (1.4 Mt) and Bolivia (0.9 Mt) started to deliver growth in 2017. ▪ The new ongoing investments in Argentina and Colombi
Slide 23: With investments of new capacity in 2018-2020
...WITH INVESTMENTS OF NEW CAPACITY IN 2018-2020 23 ▪ Enlargement of the plant in San ▪ New plant in COLOMBIA Luis in ARGENTINA ▪ Capex: 370 MUSD (*) ▪ Capex: 200 MUSD (*) ▪ Capacity: 1.4 Mt of cement (*) ▪ DCapacity: 0.7 Mt of cement (*) ▪ Implementation: Q3 2019 ▪ Implementation: Q3 2019 CAPACITY
Slide 24: Which will allow us to keep increasing our results
...WHICH WILL ALLOW US TO KEEP INCREASING OUR RESULTS 24 • Throughout the period 2015-2017 we have invested a total of €262M, 56% of which was committed to increase the capacity in Mexico and Bolivia and to the Colombian project... • ...and throughout the period 2018-2020 there will be another inves
Slide 25: 28 February 2018
25 www.cemolins.es © 2018 Cementos Molins SA. All Rights Reserved. 28 February 2018