Suez Cement Co. · EGX:SUCE

Suez Cement — Q3 2017 Earnings Presentation

23 slides from Suez Cement's earnings presentation, Sep 30, 2017

  1. Slide 1: Corporate Briefing

    Corporate Briefing 30-9-2017

  2. Slide 2: Contents

    Contents  Group Overview  Market Overview  Financial Highlights 2/26/2018 -2

  3. Slide 3: Contents

    Contents  Group Overview  Market Overview  Financial Highlights 2/26/2018 - 3

  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%  Part of the world’s third largest global Others 30.9% Titan 8.2% cement producer Cemex 8.4%  Total production capacity of more Intercem 5.3% El Areish 6.5% than12M t/y cement Lafarge 11

  6. Slide 6: SCGC Industrial network

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

  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 RMCA- Helal Suez TPCC HCC SBC ICC- Cement Tecno Developm Alalme Lime ent for (KSA) – Gravel industries 66.12 99.54 56.32 ya (Kuwait) 49.66 % % % 50% 45% 98.28% 52% 51% % Suez Suez Import Transport

  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) Private Sector Entities & Free Free Float Float 8.65 % 12.06% Public Sector Entities 13.42% HeidelbergCement 55.08% Public/P

  10. Slide 10: Contents

    Contents  Group Overview  Market Overview  Financial Highlights 2/26/2018- 10

  11. Slide 11: Estimated market share: Market down by -6% vs. 2016

    Market Overview Estimated market share: Market down by -6% vs. 2016 in YTD Nov YTD 2017 YTD 2016 Delta Companies 2017 vs. Dispatch % Dispatch % 2016 SCGC 6,345,256 13.0% 7,179,789 13.8% -12% Lafarge 5,863,905 12% 6,624,037 12.7% -11% Cemex 4,063,930 8% 4,504,714 8.7% -10% Arabian 3,455,215 7% 3,602,

  12. Slide 12: Residential segment consumes more than 40% of cement consumption

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

  13. Slide 13: SCGC Average Prices For OPC in Greater Cairo

    Market Overview SCGC Average Prices For OPC in Greater Cairo 2/26/2018- 13

  14. Slide 14: 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 Bags Bulk 9% 14% 19% 9% 9% 10% 24% 11% 9% 91% 91% 91% 91% 90% 91% 81% 89% 76% 19% 17% 81% 83% 2010 2011 2012 2013 2013 2014 2015 2016 E 2017 Q3 2016Q3 2017 Source: internal market intelligence 2/26/2018-

  15. Slide 15: Contents

    Contents  Group Overview  Market Overview  Financial Highlights 2/26/2018- 15

  16. Slide 16: An increasingly energy intensive industry

    Financial Highlights  An increasingly energy intensive industry… Others 40% Fuel 45% Power 15% Energy represents 60% of the production cost YTD Sep 2017 SCGC Cost Breakdown 2/26/2018- 16

  17. Slide 17: Grey Clinker Fuel Mix

    Financial Highlights Grey Clinker Fuel Mix 7% 6% 6% 7% 8% 1% 4% 1% 2% 20% 17% 29% 47% AF % 67% PetCoke % 48% 52% Coal % 41% Gas % 28% HFO % 2% 14% 24% 19% 18% 19% 13% 2014 2015 2016 YTD Sept 2017 BDG 2017 2/26/2018- 17

  18. Slide 18: Fuel prices increased since 2004

    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 Before 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

  19. Slide 19: YTD Sep 2017 key results (Consolidated)

    Financial Highlights YTD Sep 2017 key results (Consolidated) Var. 2017-2016 Ytd.Sep. Ytd. Sep. Var. 2017-2016 Q3 2017 Q3 2016 Var. %Var. 2017 2016 Var. %Var. Kt Volume sold (Cement + Clinker) 1,854 2,087 (232) -11.1% 5,351 6,466 (1,115) -17.2% Domestic 1,744 2,064 (320) -15.5% 5,020 6,376 (1,356) -2

  20. Slide 20: EBITDA Evolution (Consolidated)

    Financial Highlights EBITDA Evolution (Consolidated) 500 EGPm 400 337 315 300 269 2013 210 2014 200 373 2015 188 2016 316 139 185 300 160 135 2017 140 100 119 165 99 52 2 28 0 Q1 Q2 Q3 Q4 2/26/2018- 20

  21. Slide 21: YTD September 2017 recurring EBITDA

    YTD September 2017 recurring EBITDA (Consolidated): EGPm -Fuel Power -Reversal training fund +90 -Site restoration +42 -Assets sales +40 703 (756) - Maintenance -Staff (3) +15 -others + 46 -Others (56) 9.7% (164) 6.8% 423 (44) 218 (55) 326 EBITDA Volumes Prices Variable Fixed Fixed Part of Others EB

  22. Slide 22: Key Historical Financials

    Financial Highlights Key Historical Financials : current environment heavily impacting results Revenue (EGPm) Rec. EBITDA (EGPm) 4,757 6,380 6,152 6,152 6,146 4,373 2,155 2,120 5,049 5,642 4,820 4,597 1,199 1,051 1,061 1,154 424 542 423 326 2009 2010 2011 2012 2013 2014 2015 2016 3Q16 3Q17 2009 2010

  23. Slide 23: 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 Figures are in MEGP 614 533 408 324 407 369 230 252 258 220 2009 2010 2011 2012 2013 2014 2015

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