aganang site visit presentation : 31 march 2015€¦ · investor aganang site visit presentation :...

1EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015

INVESTOR AGANANG SITE VISIT PRESENTATION : 31 MARCH 2015

AGANANG SITE VISIT PRESENTATION : 31 MARCH 2015


DISCLAIMER

This presentation includes certain forward-looking information. All statements other than statements of historical fact are, or may

be deemed to be, forward-looking statements, including, without limitation, those concerning: Sephaku Holdings’ strategy; the

economic outlook for the industry; production; cash costs and other operating results; growth prospects and outlook for Sephaku

Holdings’ operations, individually or in the aggregate; liquidity and capital resources and expenditure; and the outcome and

consequences of any pending litigation proceedings. These forward-looking statements are not based on historical facts, but

rather reflect Sephaku Holdings’ current expectations concerning future results and events and generally may be identified by the

use of forward-looking words or phrases such as “believe”, “aim”, “expect”, “anticipate”, “intend”, “foresee”, “forecast”, “likely”,

“should”, “planned”, “may”, “estimated”, “potential” or similar words and phrases. Similarly, statements concerning Sephaku

Holdings’ objectives, plans or goals are or may be forward-looking statements. These forward-looking statements involve known

and unknown risks, uncertainties and other factors that may affect Sephaku Holdings’ actual results, performance or

achievements expressed or implied by these forward-looking statements. Although Sephaku Holdings believes that the

expectations reflected in these forward-looking statements are reasonable, no assurance can be given that such expectations will

prove to have been correct.


AGENDA

The SepCem group

FY14 highlights

Cement industry overview

Plant technology & efficiencies

Integrated plant configuration

Quality control

Delmas & SepAsh

Delmas plant performance

SepAsh

Sephaku Holdings Overview

Group performance update

Share price performance

Conclusion


SEPHAKU CEMENT GROUP

Above: Aganang integrated plant Below: Delmas milling plant


THE SEPHAKU HOLDINGS STRUCTURE


OVERVIEW - LOCATION OF ASSETS

Aganang Integrated Plant

Delmas Grinding Plant

Kendal Ash Plant

Dwaalboom Project

Metier Concrete Plants

Note: Project locations not exact but indicative for illustrative purposes


Revenue at approximately R919 million:

Q4 revenue at cR405 million mainly due to the commencement of production at Aganang in October

2014

– SepCem gaining market share in all key inland markets in the retail sector

Bag market entry successful with the SepCem brand being distributed by the four major retailers

– Highly experienced sales team has managed to increase brand presence in all market segments including the

rural areas

Combined annualised capacity utilisation at over 60% at Delmas and Aganang

Anticipate to be at steady state capacity utilisation by end of Q2 CY2015

Internally produced clinker has significantly improved variable cost efficiencies by 50%

SEPCEM FY 2014 SALIENT POINTS

NB – FY2014 period to end of December 2014


SEPCEM INCREASES PRESENCE IN THE INLAND

MARKETS

55 000

206 000

515 000

919 000

0

200 000

400 000

600 000

800 000

1000 000

Q1 2014 Q2 2014 Q3 2014 Q4 2014

Cum

ula

tive

reve

nu

e (

R0

00

)

Cumulative quarterly sales FY 2014

Revenue increased at 25% quarterly compound rate as SepCem penetrated the market


SEPCEM EBITDA EVOLUTION FY 2014

-35 -2

15

26

-40

-30

-20

-10

0

10

20

30

Q1 Q2 Q3 Q4

EBITDA %

EBITDA evolution a reflection of increasing sales volumes

Targeting a margin 8 – 10% higher than industry average at steady state

Q4 margin comparative to industry average in spite of volume not fully ramped up


CEMENT INDUSTRY OVERVIEW


Sources: ¹SepCem research.

Annual cement demand growth in developing countries typically increases at 1,5% above GDP

SepCem’s long-term demand growth projection for SA between 4% and 4,5%¹

Demand growth may exceed capacity in 5 years times based on clinker production

Possibility of inefficient capacity retired as entrants introduce highly efficient modern technology

Major producers’ passive response to imports enabling growth of import volumes particularly in coastal

markets

Introduction of capacity of 1mtpa from a new entrant expected to place additional pressure on producers

with older capacity

One major producer emerging from considerable leadership turmoil whilst another fraught with kiln

reliability problems which have had a significant impact on their sales performance

The market has widely and positively accepted SepCem as a mainstream cement player which is borne

out by inter alia, the number of accounts and delivery points achieved by the end of 2014

SepCem has had excellent penetration in the retail sector particularly with the major retail groups

SepCem remains very well positioned to further entrench itself as a formidable cement player in South

Africa

INDUSTRY ANALYSIS


INDUSTRY CAPACITY ANALYSIS BASED ON

CLINKER PRODUCTION

Cement production capacity determined by kiln capacity (multiplied by c/k ratio) instead of milling capacity

Capacity largely determined by the product mix

A new producer targeting entry early CY2016

Assumption that growth in imports in 2015 will be at 5% if :

ITAC dumping probe outcome is further delayed and coastal producers remain passive Source: Sephaku Cement research – 2015.

2015 2016 2017 2018 2019

Producer A 2 21 2 171 823 2 171 823 2 171 823 2 171 823 2 171 823

Producer B 3 38 3 947 931 3 947 931 3 947 931 3 947 931 3 947 931

Producer C 10 39 5 141 244 5 141 244 5 141 244 5 141 244 5 141 244

Producer D 2 20 1 818 545 1 818 545 1 818 545 1 818 545 1 818 545

Sephaku 1 1 2 606 100 2 606 100 2 606 100 2 606 100 2 606 100

New Entrant - 503 381 1 006 761 1 006 761 1 006 761

Sub total 18 33 15 685 643 16 189 024 16 692 405 16 692 405 16 692 405

Imports 1 419 600 1 419 600 1 419 600 1 419 600 1 419 600

Total 17 105 243 17 608 624 18 112 005 18 112 005 18 112 005

Estimated Cement demand 14 937 865 15 522 530 16 132 482 16 768 814 17 432 667

% of capacity utlised 87.3% 88.2% 89.1% 92.6% 96.2%

Company

No of

operating

Kilns

Average age

of operating

Kilns

Annual estimated max cement production


OUR PRODUCTS ALWAYS GET TO THE MARKET

Production of 32.5 R cement at

Delmas plant

Production of 32.5 R cement at

Delmas plant


SEPCEM’S COMPETITIVE EDGE

Minimal maintenance

• Low costs due to brand new plants

High energy efficiency

• Guaranteed 97.5 kWh/tonne utilisation

• Relative cost saving of 25 - 30%

Logistical advantage

• Delmas plant proximity to Gauteng

• Return load cost advantages between the

two plants

Consistent cement quality

• Critical characteristic for penetrating the

bulk market

Inland market focus

• Coastal margins being impacted

by imports

Low environmental impact

• Low particle emissions of approximately

30mg/Nm³


CUSTOMER CENTRIC SALES FOCUS

SAP system was installed prior to market entry

Fully integrated contact centre for centralised order placement and logistical planning

Integrated despatch system at both plants, with weighbridges and out-loading systems

Full sales staff complement based at Centurion and in the regions, to sell, support and maintain

customer needs and relationships

Technical support and customer laboratory established at Delmas

To assist all customers requiring technical assistance


MODERN PLANT TECHNOLOGY & EFFICIENCIES


CEMENT PLANT TECHNOLOGY OVERVIEW

Global trends towards reduction of carbon footprint

Reduction of carbon footprint generally through:

Improved electrical energy efficiency

Improved thermal energy efficiency

Use of renewable energy sources

Use of cement extenders maximised by using more reactive clinker

SepCem well positioned in South Africa regarding above due to:

Latest technology employed

Highly automated , state of the art kiln


INTEGRATED CEMENT PLANT CONFIGURATION

Sephaku Development (Pty) Ltd

AGANANG MINING OPERATION

Sephaku Cement (Pty) Ltd

AGANANG MANUFACTURING OPERATION

2.702

Raw Meal

Blending Silo20 000 t

Quality Assurance

tph

tpd Capacity (Tons per day)

LEGEND

Mass Metering

Air Quality Control

Capacity (Tons per hour)

tpa Capacity (Tons per annum)

Limestone Quarry

Total limestone mineed = 3 Mtpa

ImpactCrusher

1200 tph1400 tph

140 ktpa 2860 ktpaBlended Limestone Stockpiles

2 x 50 000 t

Magnetite Stockpile

2 000 t

Bauxite / Alumina slag Stockpile

6 000 t

4 000 t

Bottoms ash Stockpile

46 ktpa

60 ktpa

2860 ktpa

Raw Mill 450 tph

2840 Mtpa

Pre-

Calci

ner

Main Bag Filter

Main kiln

Stack

Waste Gas FanRotary Cement Kiln

Clinker Grate Cooler

Pulverised Coal

Coal Mill Filter

Coal Mill

Raw Coal

hoppers

Coal Stockpiles2 x 15 000 t

2 x 100 t

50 tph

140 ktpa114 ktpa

6000 tpd

1865 ktpa

Clinker Storage

885 ktpa

240 ktpa

81 ktpa

limestone / pozz-sand

Gypsum

Clinker to Delmas Grinding plant

980 ktpa

Cement Mill

155 tph

Cement Mill Bag Filter

Packers / Palletisers

2 x 120 tph

Bulk Cement Storage

10 00

0 ton

Bagged Cement60-70%

Bulk Cement30-40%

Aganang Total Cement Sales

1.2 Mtpa

2 000

ton

32 ktpa

Cooler bag

filter

Cooler Stack

5

50 000 ton

4

3

2

1 1

10 00

0 ton

Coal Mill Stack

Raw materials from third-party suppliers by road transportCoal from third-party supplier by road transport

QUARRYING


LIMESTONE OPENCAST QUARRY

Limestone mine (North West)

Situated adjacent to the Aganang plant with an expected life of mine at 30 years

Limestone is mined opencast at a rate of 1.6 for 1.0 million tonnes of clinker

Extensive quality control in conducted on the drilling of reserves and real-time quality control on

run-of-mine material as it passes through the crushing circuit







2.702

Raw Meal


Quality Assurance

tph


LEGEND

Mass Metering

Air Quality Control



Limestone Quarry


ImpactCrusher

1200 tph1400 tph


2 x 50 000 t

Magnetite Stockpile

2 000 t


6 000 t

4 000 t


46 ktpa

60 ktpa

2860 ktpa

Raw Mill 450 tph

2840 Mtpa

Pre-

Calci

ner

Main Bag Filter

Main kiln

Stack



Pulverised Coal

Coal Mill Filter

Coal Mill

Raw Coal

hoppers


2 x 100 t

50 tph

140 ktpa114 ktpa

6000 tpd

1865 ktpa

Clinker Storage

885 ktpa

240 ktpa

81 ktpa


Gypsum


980 ktpa

Cement Mill

155 tph



2 x 120 tph

Bulk Cement Storage

10 00

0 ton

Bagged Cement60-70%

Bulk Cement30-40%


1.2 Mtpa

2 000

ton

32 ktpa

Cooler bag

filter

Cooler Stack

5

50 000 ton

4

3

2

1 1

10 00

0 ton

Coal Mill Stack


CRUSHING


LIMESTONE CRUSHER BUILDING

Latest generation primary impact - crusher

Latest limestone roller-screening technology - beneficiation

Supplied by Hazemag : Germany


HAZEMAG PRIMARY IMPACTOR CRUSHER FOR

LIMESTONE (AP-PM 2022)







2.702

Raw Meal


Quality Assurance

tph


LEGEND

Mass Metering

Air Quality Control



Limestone Quarry


ImpactCrusher

1200 tph1400 tph


2 x 50 000 t

Magnetite Stockpile

2 000 t


6 000 t

4 000 t


46 ktpa

60 ktpa

2860 ktpa

Raw Mill 450 tph

2840 Mtpa

Pre-

Calci

ner

Main Bag Filter

Main kiln

Stack



Pulverised Coal

Coal Mill Filter

Coal Mill

Raw Coal

hoppers


2 x 100 t

50 tph

140 ktpa114 ktpa

6000 tpd

1865 ktpa

Clinker Storage

885 ktpa

240 ktpa

81 ktpa


Gypsum


980 ktpa

Cement Mill

155 tph



2 x 120 tph

Bulk Cement Storage

10 00

0 ton

Bagged Cement60-70%

Bulk Cement30-40%


1.2 Mtpa

2 000

ton

32 ktpa

Cooler bag

filter

Cooler Stack

5

50 000 ton

4

3

2

1 1

10 00

0 ton

Coal Mill Stack


RAW MILLING


RAW MILL BUILDING

Vertical roller mills throughout the plant for raw, coal and cement milling

Supplied by Loesche – Germany


LOESCHE LM 56.4 VERTICAL ROLLER MILL







2.702

Raw Meal


Quality Assurance

tph


LEGEND

Mass Metering

Air Quality Control



Limestone Quarry


ImpactCrusher

1200 tph1400 tph


2 x 50 000 t

Magnetite Stockpile

2 000 t


6 000 t

4 000 t


46 ktpa

60 ktpa

2860 ktpa

Raw Mill 450 tph

2840 Mtpa

Pre-

Calci

ner

Main Bag Filter

Main kiln

Stack



Pulverised Coal

Coal Mill Filter

Coal Mill

Raw Coal

hoppers


2 x 100 t

50 tph

140 ktpa114 ktpa

6000 tpd

1865 ktpa

Clinker Storage

885 ktpa

240 ktpa

81 ktpa


Gypsum


980 ktpa

Cement Mill

155 tph



2 x 120 tph

Bulk Cement Storage

10 00

0 ton

Bagged Cement60-70%

Bulk Cement30-40%


1.2 Mtpa

2 000

ton

32 ktpa

Cooler bag

filter

Cooler Stack

5

50 000 ton

4

3

2

1 1

10 00

0 ton

Coal Mill Stack


PREHEATING


SINOMA 5-STAGE PREHEATER / CALCINER

Latest pyro-processing technology : air – separate

pre-calciner kiln with a 5-STAGE preheater







2.702

Raw Meal


Quality Assurance

tph


LEGEND

Mass Metering

Air Quality Control



Limestone Quarry


ImpactCrusher

1200 tph1400 tph


2 x 50 000 t

Magnetite Stockpile

2 000 t


6 000 t

4 000 t


46 ktpa

60 ktpa

2860 ktpa

Raw Mill 450 tph

2840 Mtpa

Pre-

Calci

ner

Main Bag Filter

Main kiln

Stack



Pulverised Coal

Coal Mill Filter

Coal Mill

Raw Coal

hoppers


2 x 100 t

50 tph

140 ktpa114 ktpa

6000 tpd

1865 ktpa

Clinker Storage

885 ktpa

240 ktpa

81 ktpa


Gypsum


980 ktpa

Cement Mill

155 tph



2 x 120 tph

Bulk Cement Storage

10 00

0 ton

Bagged Cement60-70%

Bulk Cement30-40%


1.2 Mtpa

2 000

ton

32 ktpa

Cooler bag

filter

Cooler Stack

5

50 000 ton

4

3

2

1 1

10 00

0 ton

Coal Mill Stack


BURNING


SINOMA KILN (5.4 X 72)

Latest generation high-impulse multi-channel burner

Supplied by Pillard - France







2.702

Raw Meal


Quality Assurance

tph


LEGEND

Mass Metering

Air Quality Control



Limestone Quarry


ImpactCrusher

1200 tph1400 tph


2 x 50 000 t

Magnetite Stockpile

2 000 t


6 000 t

4 000 t


46 ktpa

60 ktpa

2860 ktpa

Raw Mill 450 tph

2840 Mtpa

Pre-

Calci

ner

Main Bag Filter

Main kiln

Stack



Pulverised Coal

Coal Mill Filter

Coal Mill

Raw Coal

hoppers


2 x 100 t

50 tph

140 ktpa114 ktpa

6000 tpd

1865 ktpa

Clinker Storage

885 ktpa

240 ktpa

81 ktpa


Gypsum


980 ktpa

Cement Mill

155 tph



2 x 120 tph

Bulk Cement Storage

10 00

0 ton

Bagged Cement60-70%

Bulk Cement30-40%


1.2 Mtpa

2 000

ton

32 ktpa

Cooler bag

filter

Cooler Stack

5

50 000 ton

4

3

2

1 1

10 00

0 ton

Coal Mill Stack


COOLING


IKN PENDULUM COOLER

Latest generation pendulum – grate cooler

Supplied by IKN – Germany







2.702

Raw Meal


Quality Assurance

tph


LEGEND

Mass Metering

Air Quality Control



Limestone Quarry


ImpactCrusher

1200 tph1400 tph


2 x 50 000 t

Magnetite Stockpile

2 000 t


6 000 t

4 000 t


46 ktpa

60 ktpa

2860 ktpa

Raw Mill 450 tph

2840 Mtpa

Pre-

Calci

ner

Main Bag Filter

Main kiln

Stack



Pulverised Coal

Coal Mill Filter

Coal Mill

Raw Coal

hoppers


2 x 100 t

50 tph

140 ktpa114 ktpa

6000 tpd

1865 ktpa

Clinker Storage

885 ktpa

240 ktpa

81 ktpa


Gypsum


980 ktpa

Cement Mill

155 tph



2 x 120 tph

Bulk Cement Storage

10 00

0 ton

Bagged Cement60-70%

Bulk Cement30-40%


1.2 Mtpa

2 000

ton

32 ktpa

Cooler bag

filter

Cooler Stack

5

50 000 ton

4

3

2

1 1

10 00

0 ton

Coal Mill Stack


STORAGE


50 KT CLINKER SILO







2.702

Raw Meal


Quality Assurance

tph


LEGEND

Mass Metering

Air Quality Control



Limestone Quarry


ImpactCrusher

1200 tph1400 tph


2 x 50 000 t

Magnetite Stockpile

2 000 t


6 000 t

4 000 t


46 ktpa

60 ktpa

2860 ktpa

Raw Mill 450 tph

2840 Mtpa

Pre-

Calci

ner

Main Bag Filter

Main kiln

Stack



Pulverised Coal

Coal Mill Filter

Coal Mill

Raw Coal

hoppers


2 x 100 t

50 tph

140 ktpa114 ktpa

6000 tpd

1865 ktpa

Clinker Storage

885 ktpa

240 ktpa

81 ktpa


Gypsum


980 ktpa

Cement Mill

155 tph



2 x 120 tph

Bulk Cement Storage

10 00

0 ton

Bagged Cement60-70%

Bulk Cement30-40%


1.2 Mtpa

2 000

ton

32 ktpa

Cooler bag

filter

Cooler Stack

5

50 000 ton

4

3

2

1 1

10 00

0 ton

Coal Mill Stack


FINISH GRIND


CEMENT MILL BUILDING


LOESCHE LM 53.3 + 3 VERTICAL ROLLER MILL







2.702

Raw Meal


Quality Assurance

tph


LEGEND

Mass Metering

Air Quality Control



Limestone Quarry


ImpactCrusher

1200 tph1400 tph


2 x 50 000 t

Magnetite Stockpile

2 000 t


6 000 t

4 000 t


46 ktpa

60 ktpa

2860 ktpa

Raw Mill 450 tph

2840 Mtpa

Pre-

Calci

ner

Main Bag Filter

Main kiln

Stack



Pulverised Coal

Coal Mill Filter

Coal Mill

Raw Coal

hoppers


2 x 100 t

50 tph

140 ktpa114 ktpa

6000 tpd

1865 ktpa

Clinker Storage

885 ktpa

240 ktpa

81 ktpa


Gypsum


980 ktpa

Cement Mill

155 tph



2 x 120 tph

Bulk Cement Storage

10 00

0 ton

Bagged Cement60-70%

Bulk Cement30-40%


1.2 Mtpa

2 000

ton

32 ktpa

Cooler bag

filter

Cooler Stack

5

50 000 ton

4

3

2

1 1

10 00

0 ton

Coal Mill Stack


PACKAGING


2X VENTOMATIC 8-SPOUT ROTARY PACKERS


2X VENTOMATIC PALLETIZERS


2X BOCEDI STRETCH HOOD MACHINES







2.702

Raw Meal


Quality Assurance

tph


LEGEND

Mass Metering

Air Quality Control



Limestone Quarry


ImpactCrusher

1200 tph1400 tph


2 x 50 000 t

Magnetite Stockpile

2 000 t


6 000 t

4 000 t


46 ktpa

60 ktpa

2860 ktpa

Raw Mill 450 tph

2840 Mtpa

Pre-

Calci

ner

Main Bag Filter

Main kiln

Stack



Pulverised Coal

Coal Mill Filter

Coal Mill

Raw Coal

hoppers


2 x 100 t

50 tph

140 ktpa114 ktpa

6000 tpd

1865 ktpa

Clinker Storage

885 ktpa

240 ktpa

81 ktpa


Gypsum


980 ktpa

Cement Mill

155 tph



2 x 120 tph

Bulk Cement Storage

10 00

0 ton

Bagged Cement60-70%

Bulk Cement30-40%


1.2 Mtpa

2 000

ton

32 ktpa

Cooler bag

filter

Cooler Stack

5

50 000 ton

4

3

2

1 1

10 00

0 ton

Coal Mill Stack



BULK CEMENT LOADING AND DESPATCH







2.702

Raw Meal


Quality Assurance

tph


LEGEND

Mass Metering

Air Quality Control



Limestone Quarry


ImpactCrusher

1200 tph1400 tph


2 x 50 000 t

Magnetite Stockpile

2 000 t


6 000 t

4 000 t


46 ktpa

60 ktpa

2860 ktpa

Raw Mill 450 tph

2840 Mtpa

Pre-

Calci

ner

Main Bag Filter

Main kiln

Stack



Pulverised Coal

Coal Mill Filter

Coal Mill

Raw Coal

hoppers


2 x 100 t

50 tph

140 ktpa114 ktpa

6000 tpd

1865 ktpa

Clinker Storage

885 ktpa

240 ktpa

81 ktpa


Gypsum


980 ktpa

Cement Mill

155 tph



2 x 120 tph

Bulk Cement Storage

10 00

0 ton

Bagged Cement60-70%

Bulk Cement30-40%


1.2 Mtpa

2 000

ton

32 ktpa

Cooler bag

filter

Cooler Stack

5

50 000 ton

4

3

2

1 1

10 00

0 ton

Coal Mill Stack



BAG LOADING


BAG DESPATCH


STATE-OF-THE ART QUALITY CONTROL

Product consistency is of paramount importance

SepCem achieves this through:

• Single limestone source (consistent

chemistry)

• On-line chemical analyses of crusher product

(PGNA-technology)

• Consistent raw material additives

• Automated sampling, sample transport and

analyses by XRF/XRD

• Robo-lab technology

Further development during 2015/16 using:

• Use of expert control systems on cement

milling

• Use of expert control systems on kiln burningAutomatic sampler of clinker


PGNA ON-LINE ANALYSER OF LIMESTONE


AUTOMATIC SAMPLE TRANSPORT SYSTEMS


ROBO-LAB


AUTOMATIC SAMPLE RECEIVING STATION


DELMAS MILLING AND SEPHAKU ASH PLANTS


DELMAS CEMENT PLANT CONFIGURATION

DELMAS OPERATION

Cement Mill

155 tph

Cement Mill

Bag Filter


2 x 120 tph

Feed proportioning

Clinker from Aganang

980 ktpa

Gypsum

80 ktpa

Fly Ash from Kendal

480 ktpa

Clinker Storage

Bulk Cement

400 ktpa

Bagged Cement

1 100 ktpaQuality Assurance

tph


LEGEND

Mass Metering

Air Quality Control



30 000 tonCement mill stack

1 0

00

to

n

1 0

00

to

n

Fly ash mixing screw

10

00

0 t

on

10

00

0 t

on

2 0

00

to

n

Bulk Cement Storage

Delmas Total Cement Sales

1.5 Mtpa


DELMAS STELLAR PERFORMANCE IN SPITE OF

SLOW START

Delmas is in close proximity to SepAsh (34kms away) and has access to markets with higher demand

namely Limpopo, Gauteng & Mpumalanga

By end of Q3 CY2014 Delmas was operating at 80% capacity and increased to just below 100% in the

fourth quarter as Aganang came on stream

High quality and consistent cements produced which significantly outperform its peers

Customer efficiency key measures of “in-plant turnaround” (“gate to gate”) improved significantly over

the first few months of operations

Delmas now consuming in excess of 80% of ash produced from Kendal


DELMAS PLANT TURNAROUND VS CAPACITY

UTILISATION

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

Jan 2014 Feb 2014 Mar 2014 Apr 2014 May 2014 Jun 2014 Jul 2014 Aug 2014 Sep 2014 Oct 2014 Nov 2014 Dec 2014

Tim

e in

min

ute

s

Cap

acit

y U

tilisati

on

Capacity Utlisation Turanround times - bags Turnaround times - bulk

Source: Sephaku Cement research – 2014.


CEMENT STRENGTH PERFORMANCE –

CONCRETE COMPARATIVE

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

32,5 -Sephaku

32,5 -Producer A

32,5 -Producer B

42,5Sephaku

42,5 -Producer B

42,5 -Producer A

42,5R -Producer A

42,5 -Producer C

42,5R -Producer C

MP

A

1 day 3 days 7 days 28 days

Source: Sephaku Cement research – 2014.


SEPHAKU ASH – STRATEGIC VALUE CREATION

FOR CEMENT

Sephaku Ash continues to operate well and is now

in its sixth year of operation.

Producing classified ash to various sectors

Primary focus has shifted during the course of 2014

to ensure continuous ash supply to Delmas

Key bulk customers have been maintained and

continue to be supplied by SepAsh

World class turn around times achieved at the plant

– in excess of 90% of loads are fully processed in

under 20 minutes

Preliminary commitment from Eskom to further

extend the existing ash supply agreement has been

obtained with contract negotiations underway.


SEPHAKU HOLDINGS OVERVIEW


Share ticker: JSE (MAIN) SEP

Sector Construction and Materials

Listing 2009

Issued shares 201 224 508

Closing price as at 25 March 2015 880

Average value traded per week 10 494 382

Average volume traded per week 1 217 398

Market capitalisation 1 770 775 670

Group net profit or (loss) /H1 2015 (R3.7) m [H1 2014: R6.3 m]

Métier operating profit /H1 2015 R62.6 m [H1 2014: R43.7m]

Headline profit or (loss) per share /H1 2015 (2,00) cents [H1 2014 : 2,78 cents]

Normalised headline earnings per share / H1 2015 9,69 cents

GROUP PERFORMANCE


SHARE PRICE ON AN UPWARD TREND

550

600

650

700

750

800

850

900

0

2000000

4000000

6000000

8000000

10000000

12000000

Volume Share price Linear (Share price )


Highest 52-week price at R9.01 and lowest at R5.15

High volumes traded in November following a targeted

roadshow

Significant increase in institutional interest on the share

as cement production ramps up and management

demonstrates :

Technical ability to produce good consistent

quality cement

Sell the cement and gain market share in a highly

competitive market

Deliver on stated targets with regards to

production capacity utilisation

INCREASING INVESTOR INTEREST


New technologically advanced production plants with higher cost efficiencies enhance

competitiveness

Profitable concrete operations with distinctive technical skills providing solid earnings and positive

net operating cash flows

Strategic focus on the building materials sector in Africa’s second largest economy, offering

increasing earnings and growth opportunities

Geographically well located cement operations targeting the inland markets

Key operational management with approximately 250 years combined experience

in cement manufacturing and over 80 years in mixed concrete technology

INVESTMENT CASE


CONTACT

Sakhile Ndlovu

Investor relations officer

Tel: + 27 12 612 0210

Email: [email protected]

Website: www.sephakuholdings.com

aganang site visit presentation : 31 march 2015€¦ · investor aganang site visit presentation :...

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