Suez Cement Co. · EGX:SUCE

Suez Cement — Q2 2017 Earnings Presentation

24 slides from Suez Cement's earnings presentation, Jun 30, 2017

  1. Slide 1: Corporate Briefing

    Corporate Briefing 30-6-2017

  2. Slide 2: Contents

    Contents  Group Overview  Market Overview  Financial Highlights 02/11/17 - 2 Corporate Briefing

  3. Slide 3: Contents

    Contents  Group Overview  Market Overview  Financial Highlights 02/11/17 - 3 Corporate Briefing

  4. Slide 4: Group Overview: Vision and Mission

    Group Overview  Vision and Mission  Building our vision To be a world class local business building a better and sustainable future for all our stakeholders  Building our mission To create value in the building materials sector through the Innovative and sustainable use of natural resources for t

  5. Slide 5: SCGC Group at a glance

    Group Overview  SCGC Group at a glance Grey market share YTD 9m 2017  Egypt’s cement market leader SCGC 12.8% Others 30.9%  Part of the world’s third largest global cement producer Titan 8.2%  Total production capacity of more than12M t/y cement Cemex 8.4% Intercem 5.3%  5 cement plants, 2 term

  6. Slide 6: SCGC Industrial network

    Group Overview  SCgC Industrial network Suez plant Torah plant  5 production facilities located in Helwan, Tourah, Kattameya, Kattameya plant Suez and El Minya. Helwan plant  Total production capacity of 12 million metric tons of cement. Menya plant  Approximately 13 percent market share of grey

  7. Slide 7: Key milestones

    Group Overview  Key milestones 2014 – A successful expansion path.  SCC acquired 50 % of ICC 2007  JV between SCC and UNICALCE  SCC acquired 51% of Hilal Cement - Kuwait 2006 SCC acquired Ready Mix Beton & DECOM 2005 Suez Cement (SCC) acquired 99% of Helwan Cement Company 2001 Italcementi Group

  8. Slide 8: Suez Cement group structure

    Group Overview  Suez Cement group structure HeidelbergCement Others 55.08% 44.92% Suez Cement Company Helal RMCA- Tecno Development TPCC HCC SBC Alalmeya ICC- (KSA) Cement – Suez Lime for industries (Kuwait) Gravel 66.12% 99.54% 56.32% 50% 49.66% 98.28% 52% 45% 51% Suez Suez Transport Import and an

  9. Slide 9: Group Overview - Stock Market

    Group Overview - Stock Market  3 Companies are listed in the Egyptian Stock Market Suez Cement Company (181,856,507 shares) Tourah Portland Cement Company (71,524,200 shares) Free Float Private Sector 8.65 % Entities & Free Float 12.06% Public Sector Entities 13.42% HeidelbergCement Public/Private

  10. Slide 10: Contents

    Contents  Group Overview  Market Overview  Financial Highlights 02/11/17 - 10 Corporate Briefing

  11. Slide 11: Market Overview: Egypt Macroeconomic Outlook

    Market Overview  Egypt Macroeconomic Outlook 02/11/17 - 11 Corporate Briefing

  12. Slide 12: Egypt Macroeconomic Outlook

    Market Overview  Egypt Macroeconomic Outlook 60 50 56.6 56.6 53.8 50.2 50.1 51.3 -2.1% 40 49.5 48.7 Market 30 48 38.5 Volumes* 20 34.5 13.2 12.3 M tons 10 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 E Q2 Q2 2017 2016 2017 12 10 11.1 8 11.7 9.8 10.6 10.9 SCGC MS % 8.1 7.8 6 7.5 7.1 8.2 7.6 4

  13. Slide 13: Cement Final Destination

    Market Overview Cement Final Destination  The residential segment consumes more than 40% of the total cement consumption  Residential  Although the tough situation this segment still have Good perspectives in the short and medium term projects.  Non-residential Infrastructure Residential 43% 43%

  14. Slide 14: Evolution of SCGC OPC Bags Ex-works price (EGP/t)

    Evolution of SCGC OPC Bags Ex-works price (EGP/t) 1st July 16 1st Nov16 21thNov 16 7thDec 16 +50EGP/ton 15thOct 16 -20EGP/ton -50EGP/ton 650EGP/ton +20EGP/ton -30EGP/ton 700EGP/ton 750EGP/ton 14th May 16 720EGP/ton 740EGP/ton 12th Mar 16 26th April 16 -40EGP/ton -40EGP/ton +10EGP/ton 1th June 16 9th

  15. Slide 15: Evolution of OPC Bag – Bulk Ratio in the Egyptian Market

    Market Overview  Evolution of OPC Bag – Bulk Ratio in the Egyptian Market Bagged to Bulk Ratio 9% 19% 9% 9% 14% 10% 24% 11% 9% Bags Bulk 91% 91% 91% 91% 91% 76% 89% 90% 81% 21% 18% 79% 82% 2010 2011 2012 2013 2013 2014 2015 2016 E 2017 Q2 2016 Q2 2017 Source: internal market intelligence

  16. Slide 16: Contents

    Contents  Group Overview  Market Overview  Financial Highlights 02/11/17 - 16 Corporate Briefing

  17. Slide 17: An increasingly energy intensive industry

    Financial Highlights  An increasingly energy intensive industry… Energy represents 60% of the production cost Others 40% Fuel 45% Power 15% YTD June 2017 SCGC Cost Breakdown 02/11/17 - 17 Corporate Briefing

  18. Slide 18: Grey Clinker Fuel Mix

    Financial Highlights Grey Clinker Fuel Mix 7% 6% 6% 5% 8% 1% 4% 1% 2% 23% 17% 29% AF % 47% PetCoke % 67% Coal % 45% 48% Gas % 41% HFO % 28% 3% 14% 24% 24% 19% 18% 13% 2014 2015 2016 YTD Jun 2017 BDG 2017 02/11/17 - 18 Corporate Briefing

  19. Slide 19: Fuel prices increased since Feb 2013

    Financial Highlights  Fuel prices increased by more than 50% since Feb 2013 500 Electricity EGP/MWH x 4 since 2004 329 366 457 245 268 400 161.3 300 113.4 119.1 125 134 200 100 0 Befor e 30- 1-Dec-04 1-Dec-05 1-Oct-06 1-Sep-07 1-Jul -08 1-Jul -10 1-Jan-12 1-Jul -14 1-Jul -15 Sep 04 Fuel Oil EGP/t x

  20. Slide 20: YTD June 2017 key results (Consolidated)

    Financial Highlights YTD June 2017 key results (Consolidated) Var. 2017-2016 Ytd.Jun. Ytd. Jun. Var. 2017-2016 Q2 2017 Q2 2016 Var. %Var. 2017 2016 Var. %Var. Kt Volume sold (Cement + Clinker) 1,779 1,895 (116) -6.1% 3,496 4,379 (883) -20.2% Domestic 1,589 1,841 (252) -13.7% 3,276 4,312 (1,036) -24.

  21. Slide 21: EBITDA Evolution (Consolidated)

    Financial Highlights EBITDA Evolution (Consolidated) EGPm 500 400 337 315 300 269 2013 210 2014 200 2015 373 188 2016 316 139 300 185 135 2017 160 140 100 112 165 52 83 2 0 Q1 Q2 Q3 Q4 02/11/17 - 21 Corporate Briefing

  22. Slide 22: YTD June 2017 recurring EBITDA bridge

    Financial Highlights EGPm YTD June 2017 recurring EBITDA (Consolidated): -Fuel -Power -Staff (22) -Reversal no longer required (342) - Maintenance +15 386 -Others (43) (136) 133 (50) 325 (16) 300 EBITDA Volumes Prices Variable Fixed Fixed Part Others EBITDA Recurring costs costs of Stock Recurring Y

  23. Slide 23: Key Historical Financials

    Financial Highlights Key Historical Financials : current environment heavily impacting results Revenue (EGPm) Rec. EBITDA (EGPm) 6,380 6,152 6,152 5,642 6,146 1,649 2,155 2,120 4,820 4,597 5,049 1,433 1,199 1,051 1,061 1,154 542 185 112 424 2009 2010 2011 2012 2013 2014 2015 2016 2Q16 2Q17 2009 2010

  24. Slide 24: Main Historical Acquisitions and Capex

    Financial Highlights  Main Historical Acquisitions and Capex Year Company Share Value 2005 Helwan Cement Co. 98.7% EGP 3.4bln 10/2006 RMB + RMBE 52% EGP 81M 8/2007 Hilal Cement (Kuwait) 51% EGP 262M CAPEX 614 533 408 324 407 230 252 258 284 132 2009 2010 2011 2012 2013 2014 2015 2016 2Q16 2Q17 Figu

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