Arabian Cement Company · EGX:ARCC
Arabian Cement — H1 2016 Earnings Presentation
21 slides from Arabian Cement's earnings presentation, 2016
Slide 1: Arabian Cement Company 1H16 Investors Presentation
Arabian Cement Company 1H16 Investors Presentation
Slide 2: Highlights
Highlights 3% EGP 428 MM Growth in clinker EBITDA production 02 03 12% 2.0 MM tons Sales Reduction in cost/ton, EGP 318 01 04 79% 06 Clinker Utilization 05 7% 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 to ACC Corporate Evolution 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 production group of Egyptian (clinker) 6,600 tp
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 1H 2016 Arabian Cement distributed through direct Ex-Factory sales , Express 1H16 Distribution wassal and Delivery. 45% 55% Delivered Ex-Works Express Wassal Express Wassal is a full transportation service for bulk and/or bagged products provi
Slide 10: Period Highlights: Main Highlights
Period Highlights Main Highlights Economy Production Energy • ACC produced 1.7 MM MT of clinker in • ACC was able to run its maximum • The CBE allowed the official exchange 1H16 compared to 1.6 MM MT at the coal capacity for both lines. on the rate to weaken in mid-March from 7.83 same period the pr
Slide 11: Period Highlights (continued): Main KPIs
Period Highlights (continued) Main KPIs Clinker Production (MN MT) and Utilization Rates Cement Production and Utilization Rates 2.5 200% 2.5 2.1 180% 2.0 2.1 2.0 2.0 1.9 2.0 1.9 2.0 160% 2.0 1.7 1.6 1.6 140% 1.5 1.5 1.3 120% 100% 81% 78% 76% 1.0 79% 82% 76% 79% 1.0 61% 80% 60% 0.5 0.5 40% 20% - - 0
Slide 12: Egyptian Cement Market: Demand and Supply Synopsis
Egyptian Cement Market Demand and Supply Synopsis Domestic Consumption (MMT) Egyptian Market Overview 52,284 53,856 •The market is driven by local consumption, which has been relatively stable 49,279 51,191 50,177 48,214 over the past few years despite political and economic unrest. •Residential hou
Slide 13: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Brand 1H16 1H15 562 557 607 536 502 493 7% 428 5% 14% 9% 9% 7% 2% 0 77% 84% 89% 88% Al Mosalah Al Tahrir Al Nasr Bulk 1H16 1H15 Al Mosalah Al Tahrir Al Nasr Bulk Breakdown by Type 1H16 1H15 1H16 1H15 3% 7% 7% 5% 1
Slide 14: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Point of Sale 1H16 1H15 565 566 542 41% 535 45% 55% 59% 1H16 1H15 Delivered Ex-Works Delivered Ex-Works Breakdown by Market 556 549 1H16 1H15 501 0% 0% - 100% 100% 1H16 1H15 Local Exports Local Exports 14
Slide 15: COGS Overview
COGS Overview COGS and ACC Cost Advantages COGS Breakdown ACC Cost Advantages 1H16 1H15 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 energy needs. 14% 13% 11% 17% RDF: - The Company start
Slide 16: CAPEX Overview
CAPEX Overview CAPEX (MN EGP) 67 49 3,884 152 135 182 27 822 890 1,559 2006-2008 2009 2010 2011 2012 2013 2014 2015 1H16 Total - The company paid EGP49 mn during 1H16 for HOT DISC completion and maintenance CAPEX. - Total CAPEX for 2016 is around the same as 2015. the amount will be spent on cost sa
Slide 17: Debt: Outstanding Debt & Debt Structure
Debt Outstanding Debt & Debt Structure Outstanding Debt (Thousand EGP) Interest Coverage Ratio 1,485 3 3 3 1,191 1,078 2 837 580 327 191 100 2013 2014 2015 2016 2017 2018 2019 2020 1H16 1H15 1H14 1H13 Loans Structure (EGP vs. USD) 1H16 1H15 27% 31% 29% 33% 4% 4% Loans in USD Loans in EGP Licences &
Slide 18: 1H16 Financials Review: Income Statement
1H16 Financials Review Income Statement MN EGP 1H16 1H15 1H14 1H13 Revenues (Thousand EGP) Revenue 1,094 1,135 1,146 1,028 • Revenues declined Cost of goods sold 633 735 681 589 1,200 1,094 1,135 1,146 20% 4% in 1H16 1,100 11% 1,028 10% Gross profit 460 401 465 439 -4% compared 1H15. 1,000 -1% 5% 0%
Slide 19: 1H16 Financials Review: Balance Sheet
1H16 Financials Review Balance Sheet MN EGP 1H16 1H15 1H14 1H13 Assets Gearing Non-current Assets Property plant and equipment, net 2,477 2,597 2,618 2,268 3.7 Projects under construction 138 123 123 14 Intangible assets 98 120 143 624 3.2 Investment in subsidiaries 21 9 9 9 2.9 Payments under long-
Slide 20: 1H16 Financials Review: Cash Flow Statement
1H16 Financials Review Cash Flow Statement MN EGP 1H16 1H15 1H14 1H13 Cash flows from operating activities Cash (EGP mn) Net profit before tax 186 183 249 194 Interest income -7 -1 -0.4 -1 Interest expense 40 44 47 60 249 Depreciation expense 87 86 83 68 Amortization of intangible assets 11 11 11 25
Slide 21: Future Ready
Future Ready For more Information Please Contact: Investor Relations: IR@arabiancementcompany.com www.arabiancementcompany.com
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