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Stock Presentation. De Eerste Cement Fabrieken Beperkt. Cement-Value Chain. Cement –Key Growth Drivers. GDP Growth Infrastructure Spending Energy Cost Electricity and Fuel Freight Cost Interest rate Capacity Utilization of the plants
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Stock Presentation De Eerste Cement Fabrieken Beperkt
Cement –Key Growth Drivers • GDP Growth • Infrastructure Spending • Energy Cost Electricity and Fuel • Freight Cost • Interest rate • Capacity Utilization of the plants • Customer Needs: Demand is increasing for specialty cements and concretes that meet particular customer needs
Country Market Attributes • SA is endowed with physical and economic infrastructure, natural mineral and metal resources, a growing manufacturing sector . • The JSE Limited is the 17th largest exchange in the world by market capitalisation (some R3.6-trillion as of September 2006) • SA rated 'low' for political risk . • Inflation rate around 5% in 2006. • Industrial Production Growth rate 7.1%. • Electricity Production 227.2 billion. Consumption is 207 billion. • Manufacturing 20% of GDP (2006). • Construction 2.5% of GDP. • Cement Demand increased by 11% in 2006.
Country Market Attributes-Projections Source: Economist
Distinctive Competence-PPC • Largest cement company in southern Africa with 44% market share. • Operate some of the largest lime plants in the world-backward integration. • Good Capacity utilization around 85%. • Overall winner in the Deloitte/Financial Mail “Best Company to work for- 2005 survey. • Meet all legislated emission level requirements and further reduce emissions -working towards Kyoto protocol.
Product Segmentation Revenue: Cement (83%), Lime(11%), Packaging(6%)
Geographic Segmentation Revenue (By geography) : South Africa (95%) , Other countries(5%) Plant Location & Distribution Export Destination
Operating Performance Yearly Comparison Quarterly Comparison
Financial Performance-PPC Yearly Comparison Quarterly Comparison
Financial Performance-PPC Yearly Comparison Quarterly Comparison
Stock Performance-PPC 1 Month 6 Months 3 Year
Future Growth Strategy-PPC • Capacity expansion:-PPC has announced two additional projects to increase capacity at a total cost of R3bn. These will run concurrently with the Batsweledi project, which is expected to be commissioned in 2008. • Acquisitions:-PPC looks for acquisition and expansion of plants in other African countries in order to cut transport and export overhead. • South Africa government has taken a lots of infrastructure development project and along with the soccer world cup will keep going the demand for cements the future outlook of the company is quite strong.
Recommendations-PPC Increase position in PPC.