Arabian Cement Company · EGX:ARCC
Arabian Cement — Investor Presentation (May 2016)
21 slides from Arabian Cement's investor presentation, May 2016
Slide 1: Arabian Cement Company FY15 Investors Presentation
Arabian Cement Company FY15 Investors Presentation May 2016
Slide 2: Highlights
Highlights 35% EGP 669 MM Growth in clinker EBITDA production 3% 02 03 9% Growth in Sales to Reduction in 4.3 MM tons cost/ton, EGP 343 01 04 84% 06 Clinker Utilization 05 8% Market Share 2
Slide 3: Contents
Contents • Introduction to ACC………………………………………………………………………………………………………….4 • Period Highlights ……………………………………...……………………………………………………………………..9 • Egyptian Cement Market ……………………………………………………………………….........……………....12 • Sales Overview ……………………………………………………………………………………………………………....13 • COGS Overview ………………
Slide 4: Introduction to ACC
Introduction to ACC ACC in a Snapshot Investment Highlights The company operations started in 2008 and is currently a leading cement producer. Majority owned by Cementos La Union (“CLU”), a Spanish cement player with operations in several countries such as Chile and Congo. ACC has two production
Slide 5: Corporate Evolution
Introduction Corporate Evolution to ACC Arabian Cement Contract signed with January: Clinker kiln June: Line II second ACC has now a 5.0 2013 Company founded by a FL Smidth for Line I capacity upgraded to cement mill starts Mmtpa cement Line I coal RDF group of Egyptian (clinker) 6,600 tpd productio
Slide 6: Plant Information
Introduction to ACC Plant Information •One raw materials vertical grinding mill (520 tph) •Five stage pre-heater, kiln and cooler system (capable of producing between 6,600-7,000 tpd each) •One clinker silo (35,000 tons) •Two horizontal cement mills (two per line) (190 tph) •Two cement silos (16,000
Slide 7: Executive Management Team
Introduction to ACC Executive Management Team Jose María Magriña Chief Executive Officer Mr. Magriña’s 20 years of professional experience stretches across several industries. He served as a management consultant at PWC, Deloitte and Accenture covering the gas, oil and construction industries for 9
Slide 8: Our Strategy
Introduction to ACC Our Strategy Medium Term Strategy Long Term Strategy 3- Vertical Expansion: 4- Expanding production in • Andalus Ready Mix Egypt or abroad • RDF Plants 2- Continue to Pay a Healthy Dividend 1- Position ACC Stream While Among the Top Optimizing Capital Brands in the Market Structu
Slide 9: Distribution Network Overview
Introduction to ACC Distribution Network Overview In 2015 Arabian Cement distributed through 2015 Distribution direct Ex‐Factory sales , Warehouses and Express wassal. Express wassal 24% 32% Ex Factory 44% Warehouse Express Wassal Express Wassal is a full transportation service for bulk and/or b
Slide 10: Period Highlights: Main Highlights
Period Highlights Main Highlights Economy Production Energy • The devaluation of the EGP which • ACC produced 3.5 MM MT of clinker in • Starting Jan. 2015, ACC was able to took place in January 2015 against the 2015 compared to 2.6 MM MT at the run its maximum coal capacity for USD to 7.83 resulted
Slide 11: Period Highlights (continued): Main KPIs
Period Highlights (continued) Main KPIs Clinker Production (MN MT) and Utilization Rates Cement Production and Utilization Rates 3.72 3.53 4.34 4.26 3.24 4.01 4.16 2.61 89% 77% 62% 84% 87% 83% 80% 85% FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 Clinker Production Clinker Utilization Rate Cement Producti
Slide 12: Egyptian Cement Market: Demand and Supply Synopsis
Egyptian Cement Market Demand and Supply Synopsis Domestic Consumption (MMT) Egyptian Market Overview •The market is primarily driven by local consumption, which has been relatively 53.8 stable over the past few years despite political and economic unrest. •Residential housing demand is expected to
Slide 13: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Brand FY14 FY15 607 599 581 528 518 482 5% [VALUE] 9% [VALUE] 7% [VALUE] [VALUE] [VALUE] 89% 88% Al Mosalah Al Tahrir Bulk FY15 FY14 Al Mosalah Al Tahrir Bulk Breakdown by Type FY14 FY15 581 606 527 5% [VALUE] 3%
Slide 14: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Point of Sale FY14 FY15 621 592 538 506 [VALUE] [VALUE] [VALUE] [VALUE] FY15 FY14 Delivered Ex‐Factory Delivered Ex‐Factory Breakdown by Market FY14 FY15 605 524 532 [VALUE] 426 [VALUE] [VALUE] [VALUE] FY15 FY14 L
Slide 15: COGS Overview
COGS Overview COGS and ACC Cost Advantages COGS Breakdown ACC Cost Advantages FY14 FY15 ACC moved ahead of other industry players with embarking on alternative energy investments with aims to offer the ability to substitute up to 100% of its 11% 7% 12% energy needs. 14% RDF: 26% - The Company st
Slide 16: CAPEX Overview
CAPEX Overview CAPEX (MN EGP) 67 3,835 152 135 182 27 822 890 1,559 2006‐2008 2009 2010 2011 2012 2013 2014 2015 Total ‐ The company paid EGP67 mn during FY15 for the completion of the hot disc projects in addition to the addition to cost optimizations in operations and logistics. ‐ Total CAPEX for
Slide 17: Debt
Debt Outstanding Debt & Debt Structure Outstanding Debt (Thousand EGP) Interest Coverage Ratio 1,485 4 1,191 4 1,078 3 3 871 656 433 193 114 2013 2014 2015 2016 2017 2018 2019 2020 FY12 FY13 FY14 FY15 Loans Structure (EGP vs. USD) FY14 FY15 11% 29% 71% 89% Loans in USD Loans in EGP Loans in USD Loan
Slide 18: FY15 Financials Review: Income Statement
FY15 Financials Review Income Statement MN EGP FY15 FY14 FY13 FY12 Revenues (Thousand EGP) Revenue 2,236 2,499 2,064 1,854 3,000 37% 2,499 40% 2,236 • Revenues declined 11% - 1,854 2,063 2,000 21% 20% in 2015 compared 2014. Cost of goods sold -1,466 -1,559 -1,190 1,001 1,000 11% 0% Gross profit 770
Slide 19: FY15 Financials Review: Balance Sheet
FY15 Financials Balance Sheet Review MN EGP FY15 FY14 FY13 Assets Gearing Non‐current Assets Property plant and equipment, net 2,534 2,665 2,647 1.6 4.0 1.4 Projects under construction 125 98 138 1.4 3.5 Intangible assets 1.1 109 132 154 1.2 1.4 3.0 Investment in subsidiaries 21 9 9 0.8 0.8 1.0 1.0
Slide 20: FY15 Financials Review: Cash Flow Statement
FY15 Financials Cash Flow Statement Review MN EGP FY15 FY14 FY13 FY12 Cash flows from operating activities Cash (EGP mn) Net profit before tax 339 522 439 443 Interest income -3 -1 -1 -3 Interest expense 131 95 120 132 Depreciation expense 174 168 165 163 Cash Amortization of intangible assets 23 23
Slide 21: Future Ready
Future Ready For more Information Please Contact: Investor Relations: IR@arabiancementcompany.com www.arabiancementcompany.com
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