Arabian Cement Company · EGX:ARCC
Arabian Cement — 9M 2016 Earnings Presentation
21 slides from Arabian Cement's earnings presentation, 2016
Slide 1: Arabian Cement Company 9M 2016 Investors Presentation
Arabian Cement Company 9M 2016 Investors Presentation
Slide 2: Highlights
Highlights USD Debt reduced EGP 578 MM from 65 mm USD to EBITDA 44 mm USD in 2016 02 03 2.95 MM tons 5% Sales Reduction in cost/ton EGP 329 01 04 82% 06 05 7.0% Clinker Utilization Market Share 2
Slide 3: Contents
Contents • Introduction to ACC………………………………………………………………………………………………………….4 • Period Highlights ……………………………………...…………………………………………………………………….10 • 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 ACC 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 produc
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 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 (190 tph) •Two cement silos (16,000 tons each) •Pa
Slide 7: Executive Management Team
Introduction to ACC Executive Management Team Sergio Alcantarilla Chief Executive Officer Mr. Alcantarilla is graduated from the Superior Industrial Engineering School in the University of Seville (Spain). He spent some time sharing his studies and Final Project, passed with Cum Laude, with works in
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 Brands Optimizing Capital in the Market and Str
Slide 9: Distribution Network Overview
Introduction to ACC Distribution Network Overview In 9M 2016 Arabian Cement distributed 9M 2016 Distribution through direct Ex-Factory sales and Delivery. 44% 56% Delivered Ex-Works Express Wassal Express Wassal is a full transportation service for bulk and/or bagged products provided by the Ex-
Slide 10: Period Highlights: Main Highlights
Period Highlights Main Highlights Economy Production Energy • Egypt has floated its currency in a move that has reduced its value by about 50% against • ACC produced 2.6 MM MT of clinker • ACC was able to run its maximum coal the dollar. in 9M 2016 compared to 2.7 MM MT at capacity for both lines. O
Slide 11: Period Highlights (continued): Main KPIs
Period Highlights (continued) Main KPIs Clinker Production (MN MT) and Utilization Rates Cement Production and Utilization Rates 2.67 2.59 3.20 2.42 2.99 2.94 2.97 1.95 85% 82% 80% 78% 85% 77% 62% 79% 9M13 9M14 9M15 9M16 9M13 9M14 9M15 9M16 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 driven by local consumption, which has been relatively increasing over 57.0 the past few years despite economic unrest. 53.9 •Egypt current installed capacity is 70 mm tons cement and
Slide 13: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Brand 9M16 9M15 597 555 542 527 499 489 15% 7% 5% 8% 9% 430 6% 1% 78% 85% 89% 0 88% Al Mosalah Al Tahrir Al Nasr Bulk Al Mosalah Al Tahrir Al Nasr Bulk Tahrir cement was discontinued and substituted by El Nasr in
Slide 14: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Point of Sale 9M16 9M15 565 547 522 44% 41% 505 56% 59% Delivered Ex-Factory 9M16 9M15 Delivered Ex-Factory Breakdown by Market 547 537 9M16 9M15 449 0% 0% 345 100% 100% Local Exports Local Exports 9M16 9M15 The e
Slide 15: COGS Overview
COGS Overview COGS and ACC Cost Advantages COGS Breakdown ACC Cost Advantages 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. RDF: 9M16 9M15 - The Company started using RDF in
Slide 16: CAPEX Overview
CAPEX Overview CAPEX (MN EGP) 67 52 3,888 152 135 182 27 822 890 1,559 2006-2008 2009 2010 2011 2012 2013 2014 2015 9M16 Total - Total CAPEX for 2016 is around the same as 2015 which is mainly maintenance CAPEX. 16
Slide 17: Debt
Debt Outstanding Debt & Debt Structure Outstanding Debt (Thousand EGP) Interest Coverage Ratio 1,485 3.7 3.5 1,191 1,248 1,027 2.8 2.5 847 476 106 2013 2014 2015 2016 2017 2018 2019 9M13 9M14 9M15 9M16 Debt in EGP increased due to the flotation, however in USD terms during 2016 the debt was reduced
Slide 18: 9M16 Financials Review: Income Statement
9M16 Financials Review Income Statement MN EGP 9M13 9M14 9M15 9M16 Revenues (Thousand EGP) Revenue 1532 1788 1711 1,613 Cost of goods sold 885 1083 1105 969 1,788 1,711 Gross profit 648 706 605 643 1,613 1,532 GPM 42% 39% 35% 40% SG&A Expenses 44 78 71 81 9M16 9M15 9M14 9M13 Other income 13 1 2 7 EB
Slide 19: Financials Review: Balance Sheet
1H16 Financials Review Balance Sheet MN EGP 9M13 9M14 9M15 9M16 Assets Gearing Non-current Assets Property plant and equipment, net 2,685 2,696 2,570 2,447 Projects under construction 46 67 116 122 Intangible assets 160 137 115 92 2.1 Investment in subsidiaries 2.0 9 9 9 21 Payments under long-term
Slide 20: Financials Review: Cash Flow Statement
1H16 Financials Review Cash Flow Statement MN EGP 9M16 9M15 9M14 9M13 Cash flows from operating activities Cash (EGP mn) Net profit before tax 213 278 386 325 Interest income -7 -2 -0.5 -1 Interest expense 65 68 71 90 288 Depreciation expense 140 130 125 124 Amortization of intangible assets 17 17 1
Slide 21: Future Ready
Future Ready For more Information Please Contact: Investor Relations: IR@arabiancementcompany.com www.arabiancementcompany.com
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