Arabian Cement Company · EGX:ARCC
Arabian Cement — FY2014 Earnings Presentation
20 slides from Arabian Cement's earnings presentation, April 2015
Slide 1: Arabian Cement Company FY14 Investors Presentation
Arabian Cement Company FY14 Investors Presentation April 2015
Slide 2: Contents
Contents • Introduction to ACC………………………………………………………………………………………………………….3 • Period Highlights ……………………………………...……………………………………………………………………..9 • Egyptian Cement Market ……………………………………………………………………….........……………….…...11 • Sales Overview ……………………………………………………………………………………………………………...12 • COGS Overview ……………
Slide 3: Introduction to ACC
Introduction to ACC ACC in a Snapshot Investment Highlights The company started operations 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 4: Corporate Evolution
Introduction to ACC Corporate Evolution Arabian Cement Contract signed January: Clinker kiln June: Line II second ACC has now a 2013 Company founded by with FL Smidth for capacity upgraded to cement mill starts 5.0 Mmtpa Line I coal RDF a group of Egyptian Line I (clinker) 6,600 tpd production cemen
Slide 5: 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 6: 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 7: Our Strategy
Introduction to ACC Our Strategy Medium Term Strategy Long Term Strategy 5. Expanding production in Egypt or abroad 4. Vertical Expansion: • Andalus Ready Mix 3. Continue to Pay a • RDF Plants Healthy Dividend Stream While 2. Position ACC Optimizing Capital Among the Top Structure Brands in the Mark
Slide 8: Distribution Network Overview
Introduction to ACC Distribution Network Overview 1 Express Wassal Express Wassal & WH Volumes (% of Cement Dispatched) Express Wassal is a full transportation service for bulk and/or bagged products provided by the company’s fleet of 25 trucks as well as by 3rd party business partners. Express Wa
Slide 9: Period Highlights: Main Highlights
Period Highlights Main Highlights In November 2014, the BOD approved a JV with Cementos Relampago, a sister company, to establish a grinding facility in Brazil with a capacity of 230k tpa at an investment cost of EUR 23 mn, 50% of which will be financed through debt. ACC’s share is 60%, contributing
Slide 10: Period Highlights (continued): Main KPIs
Period Highlights (continued) Main KPIs Clinker Production (MN MT) and Utilization Rates Cement Production and Utilization Rates 3.72 4.34 4.16 3.31 3.24 4.01 2.61 3.29 90% 89% 77% 75% 87% 80% 83% 62% FY11 FY12 FY13 FY14 FY11 FY12 FY13 FY14 Clinker Production Clinker Utilization Rate Cement Producti
Slide 11: Egyptian Cement Market: Demand and Supply Synopsis
Egyptian Cement Market Demand and Supply Synopsis Domestic Consumption (MMT) Egyptian Market Overview •The Egyptian cement market is primarily driven by local consumption, which 51,191 51,284 has been relatively stable over the past few years despite ongoing political and economic unrest. 50,177 •Eg
Slide 12: Sales Overview: Quantities Breakdown
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Brand FY13 FY14 607 596 565 579 583 4% 3% 7% 515 5% 1% 494 467 5% 9% 89% 88% 89% 90% Al Mosalah Al Tahrir Al Sadd Bulk Al Mosalah Al Tahrir Al Saad Bulk FY13 FY14 Breakdown by Type FY13 FY14 583 606 4% 3% 515 5% 3
Slide 13: Sales Overview: Quantities Breakdown by Point of Sale and Market
Sales Overview Quantities Breakdown Quantities Breakdown Prices (EGP/ton) Breakdown by Point of Sale FY13 FY14 621 592 529 505 34% 43% 57% 66% FY13 FY14 Delivered Ex-Factory Delivered Ex-Factory Breakdown by Market FY13 FY14 605 515 532 3% 0% 456 97% 100% FY13 FY14 Local Exports Local Exports 13
Slide 14: COGS Overview and Cost Advantages
COGS Overview COGS and ACC Cost Advantages COGS Breakdown ACC Cost Advantages Moving ahead of other industry players, ACC has embarked on an alternative 2014 2013 energy investment with aims to offer ACC the ability to substitute up to 100% of its energy needs by end of Q2 2015. 5% RDF: 26% 13%
Slide 15: CAPEX Overview
CAPEX Overview CAPEX (BN EGP) 156 135 182 27 822 3,772 890 1,559 2006-2008 2009 2010 2011 2012 2013 2014 TOTAL - The company has paid EGP 146 mn for CAPEX during 2014 mainly for the coal and hot disc projects related to the transformation to using coal and Refuse Derived Fuel as the main sources of
Slide 16: Debt: Outstanding Debt & Debt Structure
Debt Outstanding Debt & Debt Structure Outstanding Debt (Thousand EGP) Interest Coverage Ratio 1,485 4.0 3.5 1,191 3.1 820 1.6 523 361 279 209 145 2013 2014 2015 2016 2017 2018 2019 2020 FY11 FY12 FY13 FY14 Loans Structure (EGP vs. USD) 2013 2014 33% 29% 67% 71% Loans in USD Loans in EGP Loans in US
Slide 17: FY14 Financials Review: Income Statement
FY14 Financials Review Income Statement MN EGP 2014 2013 2012 2011 Revenues (Thousand EGP) Revenue 2,499 2,064 1,854 1,354 3000 2499 40% • ACC average prices Cost of goods sold -1,559 -1,190 -1,001 -768 2063 1854 30% increased by 18% 2000 1354 compared to the previous Gross profit 940 874 852 586 20
Slide 18: FY14 Financials Review: Balance Sheet
FY14 Financials Review Balance Sheet MN EGP 2014 2013 2012 2011 Gearing Assets Non-current Assets Property plant and equipment, net 2,665 2,647 2,796 2,928 Projects under construction 98 138 9 12 3.6 Intangible assets 132 154 177 199 Investment in subsidiaries 9 9 9 Payments under long-term investme
Slide 19: FY14 Financials Review: Cash Flow Statement
FY14 Financials Review Cash Flow Statement MN EGP 2014 2013 2012 2011 Cash (EGP mn) Cash flows from operating activities Net profit before tax 522 439 443 298 Interest income -1 -1 -3 -1 161 158 156 Interest expense 95 120 132 94 101 Depreciation expense 168 165 163 107 Amortization of intangible as
Slide 20: Future Ready
Future Ready For more Information Please Contact: Investor Relations: IR@arabiancementcompany.com www.arabiancementcompany.com 20
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