Suez Cement by fdh56iuoui

VIEWS: 83 PAGES: 48

									Corporate Briefing
www.suezcement.com.eg




Cairo, March
Suez Cement 8, 2010     Title   1
   Contents


       Group Overview



       Market Overview



       Investment Highlights



       Financial Highlights




Suez Cement
   Contents


       Group Overview



       Market Overview



       Investment Highlights



       Financial Highlights




Suez Cement
Vision and Mission
Building our vision
To be a world class local business building a better
and sustainable future for all our stakeholders




                                          Building our mission
                                          To create value in the building materials
                                          sector through the Innovative and
                                          sustainable use of natural resources for the
                                          benefit of our communities and clients.




Suez Cement                                                     Corporate Briefing       4
SCGC Group at a glance                                           Revenue Breakdown

                                                         Ready                Others
                                                          Mix                  3%
                                                          8%



 Egypt’s cement market leader

 Part of the world’s fifth largest global cement                          Cement
                                                                           89%
 producer

 Total production capacity of more than12M t/y                  2009 Revenue (MEGP)
 cement
                                                                Cement market share
 5 cement plants, 2 terminals, and 20 concrete
 batching units                                                              Others,
                                                                              2.8% South        Misr Beni
                                                                              Qena, Valley,     Suef, 4.0%
 Strong commitment to Environment protection                                   3.7% 2.0%
                                                                                                 NCC,
 and social responsibility                                      SCGC,                            6.4%
                                                                24.4%
                                                                                        Sinai, 7.3%
 Total revenues of EGP6.38bln in 2009 and                                                     Cemex,
                                                     Lafarge,
 EBITDA of EGP2.149bln                                20.0%
                                                                                               11.9%

                                                                                  Cimpor
                                                                    Titan, 8.9% (Amreyah),
                                                                                   8.6%




                                                                        2009



 Suez Cement                                       Corporate Briefing                               5
SCGC Group structure

   Cement
   Others


                                        Italcementi Group




                                                                      Suez Cement Co.
                                                                           (SCC)
                                                                          55, 08%


   Tourah Cement   Helwan Cement                                                   Suez Bags Co.                  Development
                                          Hilal Cement   RMP & RMPU    Suez Lime                     Axim Egypt   for Industries            Tecno Gravel
      (TPCC)            (HCC)                                                          (SBC)
                                               51%          52%         49.66%                         98.24%                                   45%
      66.12%z          98.69%                                                         56.31%                          98.24%

                          Suez for                                                                                    Suez for Import and
                       Transportation                         DECOM                                                      Export Co.
                         and Trade                             100%                                                        97.77%
                          95.89%




Suez Cement                                                                                        Corporate Briefing                                      6
Key milestones
A successful expansion path...




                                                                               2007
                                                                      JV between SCC and
                                                                    UNICALCE
                                                                      SCC acquired 51% of Hilal
                                                                    Cement - Kuwait
                                                    2006


                               2005            SCC acquired Ready
                                               Mix Beton & DECOM
                           Suez Cement (SCC)
                            acquired 99% of
                            Helwan Cement
          2001                 Company

     Italcementi Group
    entered the Egyptian
           market




 Suez Cement                                                  Corporate Briefing                  7
SCGC Industrial network


 5 production facilities located in
Helwan, Tourah, Kattameya, Suez
and El Minya

 Total production capacity of 12
million metric tons of clinker

 Approximately 25 percent market
share of grey cement

 Approximately 41 percent market
share of white cement

 15 Operating quarries

16 kilns in operation

 All plants are ISO 9002, ISO
14001 and OHSAS 18001 certified .




Suez Cement                            Corporate Briefing   8
Part of the fifth global cement player
... SCGC leveraging with a leading global player


BELGIUM                                                                     BULGARIA
                       3rd - 16%                             40% - 1st


CANADA                                                                        TURKEY
                        5th - 8%                             6% - 5th

U.S.A.                                                                    KAZAKHSTAN
                        8th - 4%                  15%        13% - 4th

MOROCCO
                      2nd - 26%                                                CHINA
                                                             5%    n.m.


SPAIN                                                                       THAILAND
                        6th - 6%                             13% - 4th

FRANCE                                                                         INDIA
                      2nd - 33%                         6%   3% - 5th

ITALY                                                                          EGYPT
                       1st - 27%                             26% - 1st

  Market Share in regions                                                     GREECE
   where the Group operates                                  6% - 3rd
  (Group estimates)


Source for 2008 market position: broker reports


     Suez Cement                                                                  9
   Contents

       Group Overview
              - Stock Market



       Market Overview



       Investment Highlights



       Financial Highlights




Suez Cement
        SCC Ownership Structure
                                                                                                                                                       Name                    No. of Shares           %
                                                                                                                                    Ciments Francais                               22,485,545     12.36%
                        Name                     No. of Shares       %                                                              MENAF                                          46,653,958     25.65%
   Banque Misr, SAE                                   6,249,528      3.44%
                                                                                                                                    CIMENTS DU MAROC CIMAR                         21,210,577     11.66%
   National Bank                                         82,390      0.05%
                                                                                              Ind. Cementy G.                       TERCIM S A S                                    9,100,000      5.00%
   Nasser Social Bank, SAE                            2,307,866      1.27%                          Rossi
                                                                                                                                    DIVAS BEHEER B V                                  719,872      0.40%
   National Insurance Co.                               229,936      0.13%                         3.53%
   Social insurance Funds for Public sector                                                    GDR
                                                      1,905,528      1.05%
   employees                                                                                            * Others
                                                                                              2.22%
   Social insurance Funds for Public business
                                                      1,916,709      1.05%                               4.42%
   sector employees
   Metallurgical Industries Company                     457,485      0.25%
                                                                                      Public Banks &
   Chemical Industries Company                        1,039,037      0.57%           Companies and
   National Investment Bank                           7,034,430      3.87%           Public Sector Co
                                                                                         14.76%
   National Cement Company SAE                        3,967,055      2.18%
                                                                                                                                Joint Stock Co.
   Misr insurance Co.                                 1,586,556      0.87%       GAZELLE                                            55.08%
   Other Public Corporation &Banks                       72,313      0.04%        7.61%
                                                                                        Arab investors
                                                                                           12.38%


                        Name                       No. of Shares             %
United Co. for Provendrs                                 2,816,815       1.55%
Ibrahem Abd Allh Bonean Co.                              1,428,400       0.79%
Abd Elkader Elmohedeb Co.                                2,431,788       1.34%
Gulf International Trading & Real Estate Co.
                                                          297,869        0.16%
Ltd.                                                                                                                            Name                          No. of Shares                %
Abd Elmenam Rashed Abd Elrahman                        14,392,167        7.91%                           *      Private Funds                                       939,460                    0.52%
International Trading and Contracting Co. Ltd.            929,330        0.51%                                  Private Banks and institutions                     4,383,914                   2.41%
Samer ben Saleh Hossen Elkaaki                            210,723        0.12%                                  Individuals                                        2,706,473                   1.49%


                                                                                                                                    **Less than 5% and not a BOD member

             Suez Cement                                                                                                         Corporate Briefing                                       11
3 Companies are listed in the Egyptian Stock Market.
Suez Cement Company (181,856,507 shares)             Tourah Portland Cement Company (71,524,200 shares)

                      Private Sector
                     Entities & Free
                           Float
        Public Sector     10.17%
          Entities
          14.76%

                                       Italcementi
          Total Arab
                                          Group
          Investors
                                          55.08%
           19.99%




Suez Bags Company (2,025,000 shares)                      Helwan Cement Company ( Not Listed )




  Suez Cement                                                     Corporate Briefing             12
Suez Cement Company Share Price Performance
                            Suez Cement 2009 to Date

                                             Value Traded (EGP)                                    Close

    90                                                                                                                                  90




                                                                                                                                             Millions
                                                            ≡ Market Cap (EGP million)                         8,043.5

                                                            ≡ Close Price (EGP)                                44.23
                                                                                                                                        80
    80
                                                            ≡ 52WK High (EGP)                                  50.9

                                                            ≡ 52WK Low (EGP)                                   17.5                     70
    70
                                                            ≡ 52WK Avg. Volume                                 45,832

                                                            ≡ YTD Avg. Daily Value Traded (EGP)                1,017,225                60
    60

                                                                                                                                        50

    50

                                                                                                                                        40

    40
                                                                                                                                        30


    30
                                                                                                                                        20



    20
                                                                                                                                        10



    10                                                                                                                                  0
     Jan-09   Feb-09   Mar-09   Apr-09   May-09   Jun-09    Jul-09   Aug-09   Sep-09   Oct-09    Nov-09    Dec-09     Jan-10   Feb-10

                                                                                        Source: EFG Hermes, as of March 2, 2010

 Suez Cement                                                                                    Corporate Briefing                      13
Market Capitalization

      Suez Cement ( In M EGP )

      18000
      16000
      14000
      12000
      10000
        8000
        6000
        4000
        2000
               0
                   2002   2003   2004   2005   2006   2007      2008       2009

 Suez Cement                                          Corporate Briefing          14
   Contents


       Group Overview



       Market Overview


       Investment Highlights



       Financial Highlights




Suez Cement
Egypt Macroeconomic Outlook

                                                   2008        2009        2010     2011      2012      2013    2014    09-14
                                                   actual estimate forecast -->                                        CAGR a)
Population growtth (%)                              1.8         1.8         1.6     1.6        1.6       1.6    1.6     -2.3%
Gross Domestic Product (% yoy)*                     6.0         4.0         4.5     4.5        4.5       4.5    4.5     2.4%
Gross Fixed Capital Formation (% yoy)               32.8        -3.7        10.9    13.2      17.0       13.7   9.0


Inflation (% annual av.)                            18.3        11.0        8.0     7.0        6.0       6.0    6.0    -11.4%
Exchange rate (loc.Cur/€)                           8.0         7.8         7.8     7.8        7.8       7.8    8.2     1.0%
Exchange rate (loc.Cur/$)                            5.4         5.6        5.5     5.6        5.6       5.6    5.8     0.7%
lending rate (% annual av.)                         12.3        11.6        9.6     8.8        7.0       5.5    5.0    -15.5%
OPEC basket Price, US$/bbl, ave                     94.1        59.0        83.0    85.0      90.0       90.0   90.0    8.8%

Construction (% yoy)                                11.9        7.0         4.0     6.0        7.0       7.0    7.0     0.0%
Construction (% yoy)                                                        0.0




a) 5 years compounded annual growth rate – Source: Business Monitor International


     Suez Cement                                                                           Corporate Briefing           16
The domestic grey cement market recorded 14% CAGR over the last 5
years.

                                                    CAGR 2005-09
                                                        +13.9%                     24.8%

                                                                   11.6%
                                                   14.2%
  Market                                 7.6%
  Volumes*
  M tons




                                                   CAGR 2005-09
                                                      +8%




  SCGC
  Volumes
  M tons



                                                                             CAGR: Compound Annual Growth Rate

   Suez Cement   *Source: Ministry of Investment                    Corporate Briefing                17
More than 60% of Total domestic cement consumption is concentrated
in Greater Cairo & Delta.

   Cement dispatch/ region

                     Market % SCGC
                     of Total MS%
   Greater Cairo       32.6%      42.4%
   Delta               31.3%      31.2%
   Upper Egypt         10.9%      0.8%
   Others              25.1%      32.0%

    •      Population 2009*: 77,7 million

    •      Growth rate (2007-2008)*: 1.83%
    •      Age profile (CAPMAS** – May2008):
                  0–4                 10.6%
                  5 – 14              21.1%
                  15 – 44             49.8%
                  45 – 60             12.4%
                  +60                 6.1%

**CAPMAS: Central Agency for Public Mobilization And Statistics
                               Source: Business Monitor International
        Suez Cement            Data referred to 2009                    Corporate Briefing   18
The residential segment consumes more than 57% of the
total cement consumption.

   Residential
                                                                                          Cement Final Destination
 Good perspectives in the short and medium
 term projects                                                           Infrastructure
                                                                              20%

                                                                                                                     Residential*
  Non-residential                                                                                                        57%

 Sharp drop expected in the tourism & industrial
 sectors.

                                                                            Non
                                                                         Residential
  Infrastructure                                                            23%

 The government has heavily supported this
 segment through various stimulus packages




Source: internal market intelligence

                          * In Egypt, cost of cement represents around
       Suez Cement        6-10% of residential construction cost                              Corporate Briefing      19
Evolution of OPC Bag – Bulk Ratio in the Egyptian Market

                                        Bag    Bulk
     60,000                                             The bulk segment
                                                          contraction is
                                                     triggered by a drop of
                                                       the non residential
                                                         &infrastructure
     50,000
                                                       segment (financial
                                                            crisis toll)
                                                                                     10%

     40,000

                                              14%
                                 13%
     30,000



     20,000                                                                          90%
                                              86%
                                 87%
     10,000



            0
                                 2007         2008                                  2009
Source: internal market intelligence

        Suez Cement                                                   Corporate Briefing   20
          Egypt Grey Cement Market
          Structural Demand (Mt)
80,000



70,000
                                                                                                               65,8MT


                                                                                                    58,8MT
60,000

                                                                                                          2014
50,000                                                           2004                                      752
                                                                  330                                    Kg/inhab
                                                                Kg/inhab
40,000                                                1999                                           2009
                                                       414                                            616
                                                     Kg/inhab                                       Kg/inhab
30,000



20,000
                                                                                                    a)             b)
                                                                                                2009       2014
                                                                                                Actual    Forecast
10,000
                                                                           Consumption Mt        48.0       63.2
                                                                           % variation          12.5%       5.7%
    -



        a) 2004-2009 Compound Annual Growth Rate %
        b) 2009-2014 Compound Annual Growth Rate %

         Suez Cement                                                       Corporate Briefing             21
Evolution of SCGC OPC Bags Ex-work price (EGP/t)
          Dec 07          4th Aug 08     Jan 09      10th Mar 09
        +15EGP/ton       +25EGP/ton                  +10EGP/ton
                         455EGP/ton    455EGP/ton    465EGP/ton
       347.5 EGP/ton




                                                  OPC: Ordinary Portland Cement

  Suez Cement                          Corporate Briefing               22
The RMC market recorded 26% CAGR over the last 4 years.


                                                         CAGR 2006-09
                                                            +26%



  Market
  Volumes*
  Mm3




                                                         CAGR 2006-09
                                                            +2.9%




  RMB & Decom
  Volumes
  Mm3




   Suez Cement   *Source: Internal market intelligence                  Corporate Briefing   23
   Contents


       Group Overview



       Market Overview



       Investment Highlights


       Financial Highlights




Suez Cement
Being part of a global player, SCGC has an immediate access to
worldwide best practices.
Italcementi Group is the world’s fifth largest cement producer with an annual production capacity of approximately 70 million tons of
cement.

The Parent Company, Italcementi S.p.A., is one of Italy’s 10 largest industrial companies and is included in S&P/MIB Index of the
Italian Stock Exchange.

Italcementi Group’s companies combine the expertise, know how and cultures of 22 countries in 4 Continents boasting an industrial
network of 59 cement plants, 15 grinding centers, 5 terminals, 92 aggregates quarries and 373 concrete batching units.
In 2009, the Group had sales amounting to almost 5 billion Euro.

As a member of the World Business Council for Sustainable Development (WBCSD) Italcementi Group has signed the Cement
Sustainability Initiative’s Agenda for Action, the first formal commitment that binds a number of world cement industry leaders to an
action plan that aims at satisfying present-day needs at the same time as safeguarding the requirements of future generations.

To further confirm its commitment on these issues, the Group has taken over the co-Chairmanship of the Cement Sustainability
Initiative for the period 2006-2007.


           World class                                  Strong corporate                             Global industrial and
         management team                                   governance                                distribution network


        Technical Know-how,                            Highest operating,                            World class Health,
         R&D, and industry                               control & risk                            Safety and Environment
            knowledge                                management standards                                 standards




   Suez Cement                                                                            Corporate Briefing                      25
Attractive Business Model

                                Suez for Import            Suez for
                                and Export Co.          Transportation
                                                          and Trade


                                   Importation

                                                            Distribution        Retailing

                   Cement
 Quarrying                          Bagging
                  Production



                                 Suez Bags Co.
                                Helwan Bags Co.


                      Bulk
                                                 RMC
    Concrete
   Admixtures


                                          RMB Co.
 AXIM Egypt Co.



                               A Fully Vertically Integrated Player

 Suez Cement                                               Corporate Briefing               26
Operational Efficiencies in the pipeline

 Installing state of the art kiln and mills production lines replacing the less
  efficient ones

 Increasing the Gas utilization rate

 Decreasing the clinker ratio in cement production through the use of
  alternative raw materials can result in saving energy and reducing the
  emissions, while maintaining the same quality and improving performance.

 Using alternative fuels can achieve a saving of 1 – 4% on the cost of fuel.




 Suez Cement                                            Corporate Briefing         27
SCC considers both organic and inorganic growth to increase the
production capacity.
                          Domestic Growth
              T    Organic Growth       Inorganic Growth
              o

              b
              e

              D
              o     New Licenses              Possible
              n                            Acquisitions of
                  Replacement of the       projects under
              e     inefficient lines       construction


                                          Helwan Cement
                   De-bottleneckings           Co.


              D
              o
              n
              e




Suez Cement                                                  Corporate Briefing   28
SCC implements a diversification strategy as a Corporate-Level
strategy to enhance the strategic competitiveness of the Group.

  T              Vertical Integration         Product Portfolio
  o                                            Differentiation

  b
  e                                            AXIM Egypt Co.
                  Retailing Activity
  D                                             (admixtures)
                 Helwan Bags Co.               €1M Investment
  o              €3.32M Investment
                                            Suez Lime Co. (Lime &
  n           Suez Bags Co. New Line
                                                   Premix)
                                             €18.533M Investment
  e
                       RMB                      Tecno Gravel
                EGP100M/year Turnover           (Aggregates)

                      DECOM
                EGP250M/year Turnover
  D                   RMBE
  o             EGP180M/year Turnover


  n                AXIM Egypt Co.
                    (grinding aids)
  e
              Suez for Transportation Co.
                EGP14M/year Turnover


                   Suez for Import

                    Interbulk Egypt




Suez Cement                                        Corporate Briefing   29
As a Business-Level strategy, SCGC implements a differentiation strategy in its
marketing approach that provides value to customers and is worth a premium price.

                                   13 Different types of cements

      Original Products                  Premium Products                         Special Products



 • Ordinary Portland Cement (CEM       • Premium OPC (CEM I 42,5          • Portland     Limestone Cement
   I 42,5 N & 42,5 R)                  R)                                     (CEMII / B-L 32.5 N)
 • Sulfate resistant cement (SRC       • Premium Sulfate Resistant        •   Portland Slag Cement (CEMII /
   42,5 N)                             Cement (SRC 42,5 N)                    A-S 32.5 N)
 • White cement (CEM I 52,5 N)         • Suez Plast (MC5)                 •   White Cement (CEMII / B-L 42.5
                                                                              N)
                                                                          •   Blast Furnace Cement - High
                                                                              Slag Cement (HSC) (CEM III/A-
                                                                              32.5 N)
                                                                          •   OPC Superfine- 4001
                                                                          •   Oil Well Cement Explora G
                                                                              (Class G HSR )




    Suez Cement                                                      Corporate Briefing                30
   Contents


       Group Overview



       Market Overview


       Investment Highlights
              - Sustainable Development



       Financial Highlights




Suez Cement
Vision
  SCGC is aware of the importance of its social role and promotes a socially responsible behaviour
  among all of its employees.

  The Company believes that Sustainable Development, as a combination of economic prosperity,
  environmental protection and social responsibility, is the basis of its own future.

  Six key areas have been identified because of their significant contribution to the realization of a
  sustainable future:

                                            climate
                                           protection
                                            and CO2
                                          management


                          reporting
                             and                           responsible
                                                           use of fuels
                         communic                         and materials
                            ations




                         local impacts                     employee
                          on land and                      health and
                         communities                         safety




                                           emissions
                                           reduction




 Suez Cement                                                              Corporate Briefing         32
Commitment to Environment Protection
The Environmental Policy is one of the central elements of
the Group corporate mission, whose aim is to achieve a
correct balance between the use of natural resources and
long-term economic growth, ensuring, at the same time, a
better quality of life for present and future generations.

To achieve this objective, the Group is committed to:

 Constantly monitor each site where we operate to reduce
  and prevent any possible effect on the environment
 Optimize the use of non-renewable resources in its
  production processes
 Enforce the best environmental standards to meet the
  regulations in force in individual local circumstances
 Make the staff aware, trained and informed so that                                 Plant
                                                                                                Yearly Avg Dust
                                                                                                   Emission
  environmentally friendly professional practices and
                                                                                    Helwan         150 – 200
  conduct can be expanded and strengthened.
  Environment Law #   Plants/Production Lines    Dust Emission Level                 Tourah        150 – 200
        4/1994        Operational License Date   (mg per cubic meter)
                                                                                   Kattamiyah      60 – 100
                            Before 1995                  300
    Issued in 1994
                             After 1995                  200                         Suez          80 – 100

  Amendment in 2005          After 2005                  100                         Minya         100 – 150


   Suez Cement                                                          Corporate Briefing             33
Our quality and environmental policy



                                                                                  Shifting from fuel to natural gas in Helwan and
                                                                                                  Tourah plants.
                                               Environmental
                                               awareness &                        Certified to utilize agricultural wastes, sewage
                                                                                                        sludge's
The ISO 14001                                training to all staff
approach is based on
three steps:                                                                      Recycling of 300 tons & 40 tons/day of Bypass
• compliance with all                                                             dust from Helwan & Minya plants respectively.
applicable standards;                 optimize the use of
• prevention of potential                                                       1St concealment of historical Bypass dust that has been
environmental impacts;
                                      non-renewable resources in its                      accumulated for the past 30 years.
• continuous improvement              production processes;
of performance.                                                                    Several major projects were completed and
                                                                                successfully implemented in the area of pollution
                              enforce the best environmental standards to               abatement and emission control

                            meet the regulations in force in individual local         Investing +LE463m to modify existing
                            circumstances                                              environmental management system.

                                                                                Implementation of EPAP initiative to reduce dust
                                                                                                  emissions.
                     constantly monitor each site where we operate to reduce
                     and prevent any possible effect on the environment               4 Plants are ISO 14001/2004 certified




      Suez Cement                                                                    Corporate Briefing                         34
Commitment to Social Responsibility
•   SCGC Group social commitment is translated into a range of actions and programs focused on improving the
    quality of life of its employees and local communities, and strong co-operation with its clients and suppliers.
    The Group has defined the values and principles underlying its way of operating and the relationship it enjoys
    with its stakeholders.
•   The central importance of the human being and respect for the fundamental rights of the individual are at the
    core of the Group’s Charter of Values.
•   For workers in particular, the Group is inspired by the conventions of the “International Labor Organization”
    (ILO) including those on child labor, forced labor, discrimination, freedom of association and collective
    bargaining. In its full engagement with social justice and sustainable practices, the Group fully shares the
    criteria for promotion and protection of workers’ rights encouraged by Building and Wood Workers’
    International (BWI).
•   In order to embed these values throughout its operations, SCGC Group has undertaken activities in the
    following areas:
      – safety in the workplace and industrial hygiene;
      – direct and indirect local employment according to the requirements of its activity;
      – responsible restructuring;
      – assessment of employee satisfaction;
      – training and skills development;
      – interaction with local communities;
      –     co-operation with clients and suppliers.




    Suez Cement                                                                   Corporate Briefing                  35
Social initiatives
 “Improving the living conditions of the children and their families living in Helwan, Tourah and Menya (the
project is implemented in partnership with NCCM and the local NGOs)

School Feeding Project in El Minya Governorate (the project is implemented in partnership with the WFP)

 Donation of LE 600K, for street children’ rescue Bus.

Support to Don Bosco Technical Institute

 Safety & Health awareness campaign “Salamtak Bel Donia” (implemented in partnership with the I.L.O. and the
Ministry of Manpower and Migration)

 Twinning project between the University of El Minya and the University “Politecnico” of Milan.

 Annual scholarship to the best graduated student of El Minya University (Faculty of Engineering) to attend the
Master in Civil Engineering organized by Politecnico of Milan.

 Donation of cement to construct the 57357 Children Cancer Hospital and the Health and Hope Oasis of the
Friends of Children with Cancer Association .

Donation of Euro 150K to support victims of the flash floods that struck the Sinai Peninsula and Upper Egypt




 Suez Cement                                                                  Corporate Briefing                   36
Commitment to Safety
                                                                          The “Zero Accident” approach brings together all the
                                                                          necessary programmes required to establish a
Safety has always been an issue of utmost importance within               consistent Safety management system at all Group
SCGC Group. Operating in accordance with the relevant local               plants, hinging on a substantive corporate safety
legislation,                                                              philosophy and requiring a continuous raise in
regulating working and safety conditions in each country, has             people’s awareness and concern regarding safety.
been considered as a must. It became a concrete reality in
2000 with the launch of the “Zero Accidents” project, alongside           Since the launch of the “Zero Accidents” project, there
the actions already implemented in each country with regard to            has been a significant improvement in the Group’s
the observance of the safety standards in the workplace.                  performance.
The vision embedded in the ”Zero Accident” approach implies               In 2009, more than 20,600 safety training has been
the identification of safety as a corporate value and a core              concluded.
business strategy for
the Group.




               Evolution of Frequency of Accidents1 (2005 – 2009)



                                                                      2010            Industry
                   2005      2006      2007       2008      2009
                                                                    ( Target2)      Benchmark3


  Employees       31.23       5.2       2.6       1.9       2.9     1.5               8.98

 Contractors      54.50       4.8       3.0       2.7       3.2     1.0              61.25




* Number of accidents with at least one day off per million working hours

Suez Cement                                                                        Corporate Briefing                  37
   Corporate Governance

  Committed to efficiency, transparency and appropriate management

  Standing for business ethics and creation of value

 A well defined decision making structure

  Adopting consistent system of policies and procedures which comply
with local legislations and best practices.

   In 2007, we introduced our Charter of Values, setting out the
fundamental principles of the Suez Cement’s engagements in Corporate
Governance and the goals of the Group’s Sustainable Development
strategy




     Suez Cement                                                     Corporate Briefing   38
   Contents


       Group Overview



       Market Overview



       Investment Highlights



       Financial Highlights




Suez Cement
An energy intensive industry…




  Energy represents
 44% of the production
          cost




    2009 SCC Production cost breakdown

 Suez Cement                             Corporate Briefing   40
 …with an increasing energy cost!
                                                                                         Fuel Oil EGP/t
                                                                   1200

                                                                   1000

                                                                    800

                Electricity EGP/MWH                                 600

300                                                                 400

250                                                                 200

200                                                                   0
                                                                          Before Apr     Apr-04       Sep-04      Jul-06      Jan-08
150                                                                           04
100

 50

  0
       Before   Dec-04   Dec-05   Oct-06   Sep-07   Jul-08
       Dec 04                                                                    Natural Gas $/MBTU
                                                             3.5
                                                              3
                                                             2.5
                                                              2
                                                             1.5
                                                              1
                                                             0.5
                                                              0
  International Natural GAS Price: U$5-7/MBTU                       Before Mar     Mar-04         Jul-06       Sep-07      Jun-08
                                                                        04

      Suez Cement                                                                      Corporate Briefing                   41
Strong operating and financial results coupled with growing revenues


          MEGP           Dec 2006   Dec 2007      Dec 2008          Dec 2009*

         Revenues         3543       4196            5542             6380

    EBITDA - recurring    1443       1757            1873             2149

      % on revenues       40.7%      41.9%           33.8%           33.7%

           EBIT            1136      1478            1568             1833

      % on revenues       32.1%      35.2%           28.3%           28.7%

         Net profit        703        981            1041             1301


      % on revenues       19.8%      23.4%           18.8%           20.4%




  * Unaudited Figures

   Suez Cement                                 Corporate Briefing         42
Strong equity structure with growing accumulation of cash

  MEGP                         Dec 2006          Dec 2007       Dec 2008             Dec 2009*
  Total L-T Assets               6508              6859           6853                 6723
  Inventory                      744                736            944                  863
  Account Receivables             62                152            184                  199
  Cash and Cash Equivalents      798                942           1001                 1486
  Total Current Assets           1738              2134           2432                 2899
  Total Assets                   8246              8993           9285                 9622
  S-T Debt                        2                 371            329                  22
  Cp of L-T Loan                 404                376            234                  230
  Total Current Liabilities      1687              1971           2162                 1807
  L-T Loan                       1137               779            261                   8
  Total Equity                   5212              6038           6695                 7526
  Total Liabilities & Equity     8246              8993           9285                 9622


  Net Debt( Cash) Position       745                584           ( 177 )             ( 1226 )
  Net Debt( Cash) / EBITDA      0.52 X             0.33 X          NS                   NS
  Net Debt( Cash) / Equity      0.14 X             0.10 X          NS                   NS
  FCF**                          1235               394           1182                 1379


** FCF Defined as CFO-capex               * Unaudited Figures

 Suez Cement                                                    Corporate Briefing               43
Strong financial performance and cash generation profile
Key Historical Financials

     Revenue(*) (EGPm)        CAGR 01-09: 24%    Rec. EBITDA (*) (EGPm)             CAGR 01-09: 24%




   Cash Flow (*) (EGPm)       CAGR 01-09: 31%   Net Financial Position (*) (EGPm)   CAGR 01-09: 45%




 (*) 2009 Unaudited Figures


   Suez Cement                                                 Corporate Briefing                     44
More than EGP1.5bln was paid as dividends since 2005.
 Dividend cash out (EGPm)




  Suez Cement                       Corporate Briefing   45
Main Historical Acquisitions and Capex

                Year             Company                Share              Value

                                Helwan Cement
                2005                                    98.7%             EGP3.4bln
                                     Co.

             10/2006             RMB + RMBE               52%             EGP81M

                                 Hilal Cement
                8/2007                                    51%             EGP262M
                                   (Kuwait)


                                                CAPEX

                                                        264
                                         233                        230
                           172




     Figures are in MEGP 2006         2007         2008         2009

  Suez Cement                                                    Corporate Briefing   46
As a result, SCC enjoys a strong capital structure and
cash generating ability which allow the Company the
    possibility of considering any financially and
   strategically attractive growth opportunity both
         domestically and within the region.




Suez Cement                         Corporate Briefing   47
                   An efficient
               manufacturer and         A consolidated
                distributor, with a    expertise in the
                  leadership in        manufacturing of
                cement business       cement and ready-
               in regional market      mixed concrete




                 Commitment to
              provide markets with
                                       Commitment to
              high quality cement,
                                        Sustainable
              and adding values to
                                        Development
               customers through
                    services.




Suez Cement                                      Corporate Briefing   48

								
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