Yamama Cement Company Up To 31-12-2016
Contents 1. Background 2. Production facilities 3. Process of cement manufacturing 4. Quality control system 5. Occupational health, safety Environmental management 6. Yamama advantages 7. Market share 8. Financials summary 2
Background Established in 1961. The first cement company in the central region, the third in the KSA. Joint stock company. Capital of SR 2,025 billion. 202,5 million shares. Manufacturing facilities and head office are located in Riyadh. 900 employees. 3
4 Production Facilities
Production lines KILN CLINKER CAPACITY (Tons /Day) CLINKER CAPACITY (Tons /Year) PRODUCTION START UP 1 300 96,000 1966 2 800 256,000 1972 3 1500 480,000 1978 4 1500 480,000 1978 5 1500 480,000 1982 6 3000 960,000 1985 7 10000 3,200,000 2007 TOTAL 18600 5,952,000 5
Cement Manufacturing Processes crusher mixing bed raw mill kiln cooler clinker storage cement mill 6
Types Of CEMENT 1. Type 1 - Ordinary Portland Cement (OPC) 2. Type 5 Sulphate Resistant Cement (SRC) 3. Finishing Cement 7
Production clinker (2005 2016) YAMAMA CEMENT 7,000 6,000 5,188 5,575 5,412 5,378 6,075 6,127 5,873 5,836 5,000 4,698 4,274 4,000 3,000 2,700 2,836 2,000 1,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 8
Quality Control System Yamama sticks to quality policy in all processes of cement production, Yamama obtained ISO 9001-2000 Yamama s state-of-the-art compact laboratory automation system ensure that cement produced is in line with international quality standards. 9
Occupational health and safety & Environmental management Yamama obtained such certificates in these fields 10
Yamama Advantages Fully integrated Local Power Supply Station Low energy cost All lines built by Polysius CO. (Germany) 11
12 Market Share
Market Outlook KSA consumption is at 56 Million Ton for 2016 Average growth for the past five years was (3%) Estimated Average growth for next five years is (0-2%) Yamama historical market share is around from (10% - 14% ) 13
Capacity utilization + Sales + Inventory (In Million) ( KSA) 70 60 50 40 30 20 50 43 48 Used from design capacity %86 62 62 61 63 58 57 55 555456 57 56 56 53 48 Used from design capacity %88 Used from design capacity %98 15 Used from design capacity %93 Used from design capacity %92 22 23 Used from design capacity %89 28 10 0 8 6 2011 2012 2013 2014 2015 2016 Production capacity (klinker) Actual production (klinker) Sales (cement) Inventory (klinker) 14
Production(Clinker & Cement) Sales (In thousand) YAMAMA CEMENT 7,000 6,000 5,412 6,010 5,976 6,346 6,373 6,361 6,311 6,075 6,127 5,447 5,378 5,432 5,873 5,831 5,825 5,836 5,376 5,357 5,000 4,000 3,000 2,000 1,000 0 2011 2012 2013 2014 2015 2016 Kilnker Cement Sales 15
Market Share (2015 2016) (In thousand) 2015 2016 Najran 4460 7% Riyadh 3372 6% Tabuk 1301 2% Madinah 2655 4% North 2370 4% Haeil Alsafwa Aljouf 1766 1861 1726 3% 3% 3% Yamama 5825 9% Saudia 7703 13% Eastern 3119 5% Qassem 4405 7% Najran 2900 5% Riyadh 3589 6% Tabuk 1340 2% Madinah 3136 6% North 1865 3% Alsafwa Aljouf 1857 1884 3% 3% Haeil Yamama 1392 5357 2% 10% Um Alqura 98 0% Saudia 7323 13% Eastern 2638 5% Qassem 4041 7% Southern 8490 14% Arabia 5380 9% Yanbu 7008 11% Southern 7445 13% Arabia 4453 8% Yanbu 6440 12% Total Sales 61,440 Ton Total Sales 55,758 Ton (-9%) 16
Production Clinker (2015 2016) (In thousand) 2015 2016 Najran 3722 6% Riyadh 3235 6% Tabuk 1308 2% Haeil Alsafwa Aljouf 1813 1546 1581 3% North 3% 3% 2639 5% Madinah 2794 5% Southern 7216 13% Arabia 3747 7% Yamama 5873 10% Yanbu 6510 11% Saudia 7856 14% Qassem 3715 6% Eastern 3470 6% Najran 3354 6% Madinah 3525 6% Riyadh 3226 6% Tabuk 1312 2% North 2250 4% Haeil Alsafwa Aljouf1668 1575 3% 3% Southern 7690 14% 1974 4% Um Alqura 108 0% Arabia 3368 6% Yamama 5836 10% Yanbu 5711 10% Saudia 7593 14% Qassem 3438 6% Eastern 2993 5% Total Production 57,024 Ton Total Production 55,621 Ton (-2%) 17
18 Financial Summary FOR YAMAMA CEMENT
19 Yamama New Project
Yamama New Project Yamama cement has singed a contracts for the construction of the New Project as follows (Total Estimated cost 4 Billion SR) Project Contractor SR(M) 2 production lines (20,000 TPD) Thyssenkrupp (TK) Power Plant Wartsila 480 Full supply Arabian Gas 280 2,800 (LSTK) Residential City. N/A Under process 20
Financing of Yamama New Project Yamama cement singed tow partial funding with the banks to the finance the new project as follow: - 1) With the Saudi Industrial Development Fund (SIDF) at 900 MSR. The maximum corporate finance from (SIDF) 21
Financing of Yamama New Project 2) With the (National Commercial Bank (NCB) & Samba financial Group (SFG) at 1 Billion SR. 22
Sales and Net Profit (SR Million) 1,600 1,400 1,200 1123 1163 1272 1442 1,576 1,542 1,329 1,311 1,125 1,000 800 600 611 562 657 740 818 870 671 615 400 366 200 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 SALES NET PROFIT 23
Asset and Shareholders Equity (SR Million) 4,500 4,000 3,500 3,000 4,263 4,005 4,079 3,981 3,974 3,821 3,893 3,589 3,694 3,653 3,732 3,599 3,681 3,726 3,375 3,159 3,055 2,841 2,500 2,000 1,500 1,000 500 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 Assets Equity 24
Financial Summary (SR Million) Total Assets Other Liabilities Debt Equity 2009 3,694 217 422 3,055 2010 3,653 228 267 3,159 2011 3,821 256 190 3,375 2012 4,005 358 48 3,599 2013 4,263 339 31 3,893 2014 4,079 338 10 3,731 2015 3,981 300 0 3,681 2016 3,974 248 0 3,726 Debt to Equity ratio %14 %8 %6 %1 %1 %0 %0 %0 Sales Net profit EBITDA Net profit margin 1,163 562 785 %48 1,272 657 871 %52 1,442 740 965 %51 1,576 818 1,077 %52 1,542 870 1,110 %56 1,329 671 908 %50 1,311 615 855 %47 1,125 366 692 %33 Dividends Dividends payout Return on Assets Return on Equity Earning per share 405 %72 %15 %18 4.16 540 %82 %18 %21 4.87 540 %73 %19 %22 5.48 608 %74 %20 %23 4.04 608 %70 %20 %22 4.30 608 %91 %16 %18 3.31 608 %99 %15 %17 3.04 202 %55 %9 %10 1.82 25
For a copy of this presentation can be access for the company's website www.yamamacement.com For ease of communication with investors we established e-mail to receive any questions. IRO@yamamcement.com 26