Arabian Cement Company · EGX:ARCC
Arabian Cement — Q1 2016 Earnings Presentation
21 slides from Arabian Cement's earnings presentation, 2016
Slide 1: Arabian Cement Company 1Q16 Investors Presentation
Arabian Cement Company 1Q16 Investors Presentation
Slide 2: Highlights
Highlights 1% EGP 191 MM Growth in clinker EBITDA production 8% 02 03 9% Decline in Sales to Reduction in 536 MM tons cost/ton, EGP 343 01 04 90% 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 1Q16 Arabian Cement distributed through 1Q16 Distribution direct Ex-Factory sales , Express wassal and Delivery. 53% 47% Delivered Ex-Factory Express Wassal Express Wassal is a full transportation service for bulk and/or bagged products provid
Slide 10: Period Highlights: Main Highlights
Period Highlights Main Highlights Economy Production Energy • The devaluation of the EGP which • ACC produced 0.93 MM MT of clinker • ACC was able to run its maximum took place in march 2016 against the in 1Q16 compared to 0.95 MM MT at coal capacity for both lines. on the USD to 8.88 resulted in a
Slide 11: Period Highlights (continued): Main KPIs
Period Highlights (continued) Main KPIs Clinker Production (MN MT) and Utilization Rates Cement Production and Utilization Rates 1.20 200% 1.20 1.07 180% 1.02 1.00 0.95 0.94 1.00 0.95 160% 0.90 0.85 0.77 140% 0.80 0.80 120% 86% 81% 0.60 91% 90% 100% 0.60 76% 72% 74% 81% 80% 0.40 0.40 60% 40% 0.20 0.
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 1Q15 617 1Q16 549 533 532 520 4% 471 5% 10% 428 9% 12% 5% 4% 79% 86% 89% 0 88% Al Mosalah Al Tahrir Al Nasr Bulk Al Mosalah Al Tahrir Al Nasr Bulk 1Q16 1Q15 Breakdown by Type 547 1Q15 1Q16 534 520 5% 3% 4% 1
Slide 14: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Point of Sale 1Q15 1Q16 558 545 541 30% 47% 53% 509 70% 1Q16 1Q15 Delivered Ex-Works Delivered Ex-Works Breakdown by Market FY14 FY15 546 526 0% 1% - - 100% 99% 1Q16 1Q15 Local Exports Local Exports 14
Slide 15: COGS Overview
COGS Overview COGS and ACC Cost Advantages COGS Breakdown ACC Cost Advantages 1Q15 1Q16 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 14% 11% 17% 14% energy needs. RDF: 29% - The Company s
Slide 16: CAPEX Overview
CAPEX Overview CAPEX (MN EGP) 67 8 3,844 152 135 182 27 822 890 1,559 2006-2008 2009 2010 2011 2012 2013 2014 2015 1Q16 Total - The company paid EGP8 mn during 1Q16 for HOT DISC completion and maintenance CAPEX. - Total CAPEX for 2016 is around the same as 2015. the amount will be spent on cost savi
Slide 17: Outstanding Debt & Debt Structure
Debt Outstanding Debt & Debt Structure Outstanding Debt (Thousand EGP) Interest Coverage Ratio 1,485 5 1,191 1,078 848 3 644 3 3 402 195 105 2013 2014 2015 2016 2017 2018 2019 2020 1Q13 1Q14 1Q15 1Q16 Loans Structure (EGP vs. USD) 1Q15 1Q16 9% 25% 75% 91% Loans in USD Loans in EGP 17
Slide 18: Income Statement
FY15 Financials Review Income Statement MN EGP 1Q16 1Q15 1Q14 1Q13 Revenues (Thousand EGP) Revenue 536 585 529 449 800 18% 20% • Revenues declined 8% in Cost of goods sold 327 377 282 240 536 585 1Q16 compared 1Q15. 600 11% 529 449 10% Gross profit 209 208 247 210 400 -8% 0% • Cost/ton declined by 9
Slide 19: Balance Sheet
FY15 Financials Review Balance Sheet MN EGP 1Q16 1Q15 1Q14 1Q13 Assets Gearing Non-current Assets Property plant and equipment, net 2,494 2,639 2,657 2,299 1.4 14.0 Projects under construction 128 97 103 5 5.2 Intangible assets 1.2 12.0 104 126 149 637 1.3 Investment in subsidiaries 21 9 9 9 3.5 3.4
Slide 20: Cash Flow Statement
FY15 Financials Review Cash Flow Statement MN EGP 1Q16 1Q15 1Q14 1Q13 Cash flows from operating activities Cash (EGP mn) Net profit before tax 46 86 155 84 Interest income Interest expense -1 20 19 -0.2 23 -0.1 31 -0.4 Cash Depreciation expense 44 43 41 34 Amortization of intangible assets 6 6 6 12
Slide 21: Future Ready
Future Ready For more Information Please Contact: Investor Relations: IR@arabiancementcompany.com www.arabiancementcompany.com
Arabian Cement Company — Q1 2016 Earnings Presentation on 6ix