Timetric Report

Suez Cement Company SAE
__________________________________________________________________________________________
Suez Cement Company SAE Financial Snapshot
Operating Performance
Fast Facts
The company reported revenue of US$615 million
Headquarters Address K30 Maadi, Cairo, 2691 ,Egypt during the fiscal year 2016 (2016). The company's
revenue declined at a compounded rate of 5.22%
during 2012–2016, with an annual decline of 16.23%
Telephone + 20 202 5222000
over 2015. In 2016, the company recorded an
operating margin of -4.47%, as against -1.55% in
Fax + 20 2 2 5222067 2015.
Website www.suezcement.com.eg Revenue and Margins
Ticker Symbol, Stock Exchange SZCD, London Stock Exchange (LON)
Number of Employees 1,721
Fiscal Year End December
Revenue (in US$ million) 615
___________________________________________________________________________________________
Suez Cement Company SAE - Company Capsule Page 1

__________________________________________________________________________________________
TABLE OF CONTENTS
1 Suez Cement Company SAE - Business Analysis ..................................................................................... 5
1.1 Suez Cement Company SAE - Company Overview ..............................................................................................5
1.2 Suez Cement Company SAE - Major Products and Services ...............................................................................6
2 Suez Cement Company SAE - Analysis of Key Performance Indicators .................................................... 7
2.1 Suez Cement Company SAE - Five Year Snapshot: Overview of Financial and Operational Performance
Indicators .............................................................................................................................................................................7
2.2 Suez Cement Company SAE - Key Financial Performance Indicators ...............................................................10
2.2.1 Suez Cement Company SAE - Revenue and Operating Profit .......................................................................10
2.2.2 Suez Cement Company SAE - Asset and Liabilities .......................................................................................11
2.2.3 Suez Cement Company SAE - Operational Efficiency ....................................................................................12
2.2.4 Suez Cement Company SAE - Solvency.........................................................................................................13
2.3 Suez Cement Company SAE - Competitive Benchmarking ................................................................................14
3 Suez Cement Company SAE - Mergers & Acquisitions and Partnerships ................................................ 15
3.1 Suez Cement Company SAE - M&A and Partnerships Strategy .........................................................................15
4 Suez Cement Company SAE - Recent Developments ............................................................................. 16
5 Suez Cement Company SAE - Key Employees ....................................................................................... 18
6 Suez Cement Company SAE - Locations and Subsidiaries ..................................................................... 19
6.1 Suez Cement Company SAE - Head Office ........................................................................................................19
6.2 Suez Cement Company SAE - Other Locations and Subsidiaries ......................................................................19
7 Appendix ................................................................................................................................................. 21
7.1 Methodology .........................................................................................................................................................21
7.2 Ratio Definitions ...................................................................................................................................................21
7.3 Disclaimer.............................................................................................................................................................25
___________________________________________________________________________________________

__________________________________________________________________________________________
LIST OF TABLES
Table 1: Suez Cement Company SAE - Major Products and Services ............................................................. 6
Table 2: Suez Cement Company SAE - Key Ratios - Annual ........................................................................... 7
Table 3: Suez Cement Company SAE - Key Ratios - Interim ........................................................................... 9
Table 4: Suez Cement Company SAE - Key Capital Market Indicators ............................................................ 9
Table 5: Suez Cement Company SAE - Key Employees ................................................................................ 18
Table 6: Suez Cement Company SAE - Subsidiaries ..................................................................................... 19
___________________________________________________________________________________________

__________________________________________________________________________________________
LIST OF FIGURES
Figure 1: Suez Cement Company SAE - Revenue and Operating Profit......................................................... 10
Figure 2: Suez Cement Company SAE - Financial Position............................................................................ 11
Figure 3: Suez Cement Company SAE - Operational Efficiency ..................................................................... 12
Figure 4: Suez Cement Company SAE - Solvency ......................................................................................... 13
___________________________________________________________________________________________

__________________________________________________________________________________________
1 Suez Cement Company SAE - Business Analysis
1.1 Suez Cement Company SAE - Company Overview
Suez Cement Company SAE (Suez cement) involves in the production and sale of cement and related products. The
company produces white and grey cement. Suez Cement operates five production facilities in Suez, Kattameya, Tourah,
Helwan and El Minya. The company operates in the Egypt and is headquartered in Cairo, Egypt.
___________________________________________________________________________________________

__________________________________________________________________________________________
1.2 Suez Cement Company SAE - Major Products and Services
Suez Cement Company SAE involves in the production and sale of cement and related products. The company's key
products include the following:
Table 1: Suez Cement Company SAE - Major Products and Services
Products:
White Cement
Grey Cement
Source: Timetric
___________________________________________________________________________________________

__________________________________________________________________________________________
2 Suez Cement Company SAE - Analysis of Key Performance

Indicators
2.1 Suez Cement Company SAE - Five Year Snapshot: Overview of Financial and Operational
Performance Indicators
The company reported revenue of US$615 million during the fiscal year 2016 (2016). The company's revenue declined at
a compounded rate of 5.22% during 2012–2016, with an annual decline of 16.23% over 2015. During 2016, operating
margin of the company was -4.47% in comparison with operating margin of -1.55% in 2015. In 2016, the company
recorded a net profit margin of -8.58% compared to a net profit margin of -1.07% in 2015.
Table 2: Suez Cement Company SAE - Key Ratios - Annual
Key Ratios Unit/Currency 2016 2015 2014 2013 2012

Equity Ratios
EPS (Earnings per Share) EGP -2.90 -0.33 2.71 2.96 2.88
Dividend per Share EGP 1.00 2.65 2.65 2.65
Dividend Cover Absolute -0.33 1.02 1.12 1.09
Book Value per Share EGP 33.66 36.19 39.54 39.99 38.95
Cash Value per Share EGP 7.41 5.82 8.93 9.97 8.92
Profitability Ratios
Gross Margin % 9.36 7.49 17.65 19.10 18.66
Operating Margin % -4.47 -1.55 12.08 14.26 16.44
Net Profit Margin % -8.58 -1.07 8.01 10.66 11.41
Profit Markup % 10.33 8.10 21.44 23.61 22.94
PBT Margin (Profit Before Tax) % -9.51 -1.42 13.07 16.11 17.17
Return on Equity % -8.62 -0.91 6.85 7.40 7.40
Return on Capital Employed % -3.60 -1.13 8.92 8.76 9.45
Return on Assets % -4.69 -0.60 4.59 5.40 5.42
Return on Fixed Assets % -3.67 -1.23 10.26 10.53 11.36
Return on Working Capital % -200.68 -14.12 68.14 52.21 56.17
Growth Ratios
Sales Growth % 8.93 -8.28 21.83 9.84 -4.64
Operating Income Growth % -111.76 3.15 -4.71 -10.13
EBITDA Growth % -109.95 -1.16 3.09 -17.58
Net Income Growth % -112.21 -8.49 2.65 -7.78
EPS Growth % -112.02 -9.09 3.11 -7.76
Working Capital Growth % -77.88 -43.23 -20.97 2.52 -0.18
Cost Ratios
Operating Costs (% of Sales) % 104.47 101.55 87.92 85.74 83.56
Administration Costs (% of Sales) % 10.07 9.87 7.10 7.34 6.67
Liquidity Ratios
Current Ratio Absolute 1.04 1.27 1.45 1.79 1.80
Quick Ratio Absolute 0.67 0.72 0.96 1.31 1.32
Cash Ratio Absolute 0.37 0.46 0.68 1.04 0.96
Leverage Ratios
___________________________________________________________________________________________

__________________________________________________________________________________________
Table 2: Suez Cement Company SAE - Key Ratios - Annual
Key Ratios Unit/Currency 2016 2015 2014 2013 2012

Debt to Equity Ratio Absolute 0.12 0.06 0.03 0.02 0.01
Net Debt to Equity Absolute -0.10 -0.10 -0.20 -0.23 -0.22
Debt to Capital Ratio Absolute 0.10 0.05 0.03 0.01 0.01
Efficiency Ratios
Asset Turnover Absolute 0.55 0.56 0.57 0.51 0.47
Fixed Asset Turnover Absolute 1.31 1.31 1.38 1.24 1.16
Inventory Turnover Absolute 4.15 4.17 4.24 4.84 4.65
Current Asset Turnover Absolute 1.63 1.94 1.76 1.61 1.52
Capital Employed Turnover Absolute 1.00 0.86 0.86 0.69 0.65
Working Capital Turnover Absolute 44.89 9.12 5.64 3.66 3.42
Revenue per Employee EGP 3,571,035.00
Net Income per Employee EGP -306,563.00
Capex to Sales % 9.09 5.52 10.59 8.51 5.35

Source: Timetric
___________________________________________________________________________________________

__________________________________________________________________________________________
Table 3: Suez Cement Company SAE - Key Ratios - Interim
Key Ratios Unit/Currency Sep-2017 Jun-2017 Mar-2017 Dec-2016
Equity Ratios
Interim EPS (Earnings per Share) EGP -1.08 -0.35 0.15 -2.87
Book Value per Share EGP 32.13 33.22 33.53 33.66
Gross Margin % -1.46 3.56 9.93 6.52
Operating Margin % -12.55 0.45 4.58 -19.46
Net Profit Margin % -12.01 -4.12 1.72 -29.40
Profit Markup % -1.44 3.69 11.03 6.97
PBT Margin (Profit Before Tax) % -13.54 -3.32 4.02 -35.76
Cost Ratios
Operating Costs (% of Sales) % 112.55 99.55 95.42 119.46
Administration Costs (% of Sales) % 14.15 9.80 9.53 11.43
Liquidity Ratios
Current Ratio Absolute 0.98 1.02 1.02 1.04
Quick Ratio Absolute 0.55 0.56 0.64 0.67
Leverage Ratios
Debt to Equity Ratio Absolute 0.05 0.10 0.10 0.12
Net Debt to Equity Absolute 0.10 0.14 -0.14 -0.10
Debt to Capital Ratio Absolute 0.10 0.08 0.08 0.10
Source: Timetric
Table 4: Suez Cement Company SAE - Key Capital Market Indicators
Key Ratios 14-Mar-2018
Enterprise Value/Sales 0.90
Enterprise Value/Total Assets 0.49

Note: Above ratios are based on share price as of 14-Mar-2018. The above ratios are absolute numbers.
Source: Timetric
___________________________________________________________________________________________

__________________________________________________________________________________________
2.2 Suez Cement Company SAE - Key Financial Performance Indicators
2.2.1 Suez Cement Company SAE - Revenue and Operating Profit
The consolidated group revenue of the company for 2016 stood at US$615 million, which corresponds to a decline of
16.23% over the previous year. The operating margin of the company was -4.47% in 2016, a decrease of 292.00 basis
points over the previous year.
Figure 1: Suez Cement Company SAE - Revenue and Operating Profit
Source: Timetric
___________________________________________________________________________________________

__________________________________________________________________________________________
2.2.2 Suez Cement Company SAE - Asset and Liabilities
The company's assets declined by 13.70% over the previous year to US$1,126 million in 2016. The company's liabilities
grew 14.52% over the previous year to US$513 million in 2016. The company's asset to liability ratio reduced from 2.91 in
2015 to 2.19 in 2016.
Figure 2: Suez Cement Company SAE - Financial Position
Source: Timetric
___________________________________________________________________________________________

__________________________________________________________________________________________
2.2.3 Suez Cement Company SAE - Operational Efficiency
The company's working capital turnover for 2016 grew to 44.89, from the previous year's working capital turnover of 9.12.
In 2016, the company's asset turnover declined to 0.55 from the previous year's asset turnover of 0.56.
Figure 3: Suez Cement Company SAE - Operational Efficiency
Source: Timetric
___________________________________________________________________________________________

__________________________________________________________________________________________
2.2.4 Suez Cement Company SAE - Solvency
In 2016, the company's current ratio declined to 1.04 from the previous year's current ratio of 1.27. The company’s quick
ratio declined to 0.67 in 2016 from the previous year's quick ratio of 0.72. In 2016, the company’s debt ratio increased to
0.06 from the previous year's debt ratio of 0.04.
Figure 4: Suez Cement Company SAE - Solvency
Source: Timetric
___________________________________________________________________________________________

__________________________________________________________________________________________
2.3 Suez Cement Company SAE - Competitive Benchmarking
The following companies are the major competitors of Suez Cement Company SAE:
Arabian Cement Company
Lafarge Egypt
Assiut Cement Company
___________________________________________________________________________________________

__________________________________________________________________________________________
3 Suez Cement Company SAE - Mergers & Acquisitions and

Partnerships
3.1 Suez Cement Company SAE - M&A and Partnerships Strategy
Suez Cement to Merge with Helwan Cement

Deal Type Merger Deal Sub Type
Deal Status Announced Announced Date 2017-11-14
Deal in Brief
Suez Cement S.A.E, a producer of cement, has agreed to merge with Helwan Cement Co. S.A.E, a producer cement.
Both companies involved in the transaction are based in Egypt.
Participant Company Information

Company Name HELWAN CEMENT S.A.E Involvement Type Target
Company Overview
Abu Dhabi Investment Authority acquires Suez Cement

Deal Type Acquisition Deal Sub Type Minority Acquisition
Deal Status Completed Announced Date 2007-01-17
Deal in Brief
Abu Dhabi Investment Authority, an investment company, completed the acquisition of 7.6% stake in Suez Cement, a
cement manufacturing company. Abu Dhabi Investment Authority had bought a stake of 138,427,01 shares listed as
Global Depository Receipts (GDR).
Participant Company Information
Company Name Abu Dhabi Investment Authority Involvement Type Acquirer
Company Overview
Abu Dhabi Investment Authority is a sovereign wealth fund owned by Emirate of Abu Dhabi.
___________________________________________________________________________________________

__________________________________________________________________________________________
4 Suez Cement Company SAE - Recent Developments
Minya Cement Plants Celebrates AEM SWHL Award
Date : 11 Mar 2018
Within the framework of its commitment to the occupational health and safety, Minya cement plant, a subsidiary of the
Suez Cement Group of Companies (SCGC), celebrated winning the award of “Safe Work, Health Life” for the Africa
region.It is noteworthy that this prestigious award is given by HeidelbergCement Group to the plants with outstanding
operational performance in the management of occupational health and safety after a comprehensive assessment of
procedures with HeidelbergCement as compared to the best international practices in occupational health and safety.“I’m
so proud that Minya cement plant managed to win the third position on the level of Africa region”, Mr. Jose Maria Magrina,
said adding “this achievement reflects commitment by all employees and contractors to the behaviors and practices of
safe work. It shows that the culture of occupational safety is deeply rooted in Minya plant and it should be a basic
approach of life”.
Suez Cement Lunches New Stars Program
Date : 11 Mar 2018
A success factors at Suez Cement Group of Companies (SCGC) is to create a competitive work environment for the most
efficient and experienced employees.SCGC pays due attention to the Human Resources (HR) Department as a key
vehicle in both individual and corporate development.In this context, SCGC has developed the most successful New Stars
training program with the aim of developing a new generation of highly qualified employees. The program involves 20
graduates from engineering and science schools from different universities and specializations. They were selected
through a very extensive and competitive selection process, which included IQ and English language tests as well as
technical and HR interviews. The process initially screened 3500 applications.The program will enable the participants to
sharpen their Interpersonal skills and develop their technical capabilities with comprehensive exposure to safety, cement
process, maintenance, quality, environment and other topics. They are expected to form a better understanding of the
Company’s vision and business focus areas with their ability to work with cross-functional teams and to get a feel of the
corporate life as well.The 11-month program aims to provide 1617 training hour per trainee including home activities. The
program involves a combination of classroom sessions, on-job assignments, soft skills, rotation on various plants and
disciplines as well as light exposure for the non-technical functions.HR Director, Mrs. Sherry Beshara praised the
program, stressing that Egypt has a distinguished generation of human resources who are in need of support by leading
companies such as Suez Cement. “If we want to make a better world tomorrow, we should today empower young people
who will shape the future of the world and create the circumstances for entrepreneurship and creativity to thrive”, Mrs.
Beshara added.
SCGC records almost 10% jump in EBITDA for the nine months of 2016 improved revenues in Q3 driving SCGC
success
Date : 20 Oct 2016
Suez Cement Group of Companies' Board of Directors approved the consolidated financial report for the third quarter of
2016.The Board also appointed Mr. José Maria Magrina, as new SCGC CEO. Prior to this appointment, Mr. Magrina
headed Egypt’s Arabian Cement Company. He also served as CEO of Andalus Concrete ReadyMix.Growth in Egypt’s
cement market recovered in Q3 after a slow start on Q2. Overall, demand for cement jumped 8% between July and
September versus the same period in 2015. The y-o-y increase was likely due in part to the Ramadan holiday last year,
which typically results in lower construction material consumption. Cement prices continued to improve in Q3, following
the previous quarter’s upward trend, rising 14% as compared to Q3 2015. On average, cement prices have remained
largely stable over the last nine months versus 2015, climbing 1.9% versus 2015. SCGC is proud to say the Company
maintained its market share and position as an industry leader during the period. Group sales volumes increased 2%
during the nine months of 2016. SCGC’s export sales also rose 7% in comparison to the same period last
year.Furthermore, the Company’s consolidated revenues increased 13% in Q3 versus Q3 2015. SCGC’s Year to date
consolidated revenues increased 8% versus the same period last year.As a result of improved sales volumes, stable
cement prices and SCGC’s aggressive strategies to improve internal efficiencies and diversify each plant’s energy mix,
the Company succeeded in boosting its EBITDA between January and September by almost 10% versus the same period
in 2015. However, SCGC reported a year-to-date net loss of EGP 6 million in terms of profits/losses after non-controlling
interest due to significant pressure from foreign exchange rates and lower net financial income.OutlookSCGC maintains
an optimistic outlook on cement production and sales during the remainder of 2016 and onwards since Egypt’s
construction sector still embodies strong core fundamentals. However, recent measures to further restrict consumer credit
and imports are expected to have a negative impact on economic growth overall. The continued shortage in foreign
currency, which has not yet improved despite ongoing regulatory efforts, may worsen the country’s economic outlook in
the near future.Management believes Egypt will still move forward with implementation of several large national projects
under the auspices of government stimulation initiatives designed to boost demand for cement. Construction has begun
on some projects, but other initiatives have faced slower than anticipated launches due to economic uncertainty and
___________________________________________________________________________________________

__________________________________________________________________________________________
financing restrictions. SCGC is currently on track to implement its coal energy conversion project at the Helwan Plant,
which is slated to be completed by the middle of next year. SCGC’s energy diversification program is focused on
increasing the use of waste-derived fuels, petroleum coke, coal and renewable energy in order to prevent fluctuating
natural gas and mazut prices from negatively impacting the Company’s bottom line.SCGC anticipates that its innovative
energy program will continue to improve the Company’s manufacturing capacity as well as decrease operational and
production overhead. The launch of coal and petroleum coke energy generation goes hand in hand with SCGC's focus on
reducing its environmental impact through the implementation of state-of-the-art dust filter technology and streamlined
manufacturing processes.
SCGC reports 6% sales increase for first half of 2016
Date : 20 Jul 2016
The Board of Directors for Suez Cement Group of Companies (SCGC) approved the consolidated financial report for the
first half of the year (2016).Growth in Egypt’s cement market slowed in Q2 of 2016, due to lower demand during the holy
month of Ramadan and June. However, the slump in sales was ultimately offset by burgeoning demand from the
construction sector throughout Q1. Overall, the industry grew 7.6% in the first half of the year versus the same period in
2015.Cement prices continued to improve, following Q1 trends to jump 4% during April, May and June. That being said,
prices were still 3% lower between January and June 2016 compared to the first half of 2015. In 2016, SCGC maintained
its market share and reputation as an industry leader. Group sales volumes increased 6% across the country for HY2016.
SCGC’s efforts were bolstered by a significant increase in export sales (61%) versus the first six months of 2015.Despite
this, slumping sales in Ramadan and the beginning of the summer resulted in a 1.9% drop in revenues for Q2, whereas
half-year revenues rose 6.1% year-on-year compared to Q12015.SCGC’s EBITDA declined 12% in Q2 and HY2016
mainly due to depressed cement prices and the adverse ripple effects of the Egyptian pound’s devaluation. SCGC was
able to recoup some operational costs thanks to reduced energy, imported raw materials and spare part costs.The
Company continued to aggressively implement strategies to improve internal efficiencies and modify its energy mix with
two plants now fully converted to coal and waste energy – which produce 40% of the plants’ fuel needs. The resulting cost
savings did not fully mitigate the negative impact of falling cement prices, fluctuating energy costs and the devaluation of
the pound. As a result, net profits after non-controlling interest fell, and were further impacted by lower financing revenues
and poor foreign exchange rates as compared to 2015.
Suez Cement and CARE Egypt to inaugurate renovated schools to improve Learning Environment through
Community Engagement in Minya
Date : 12 May 2016
Under the auspices of the Governor of Minya, his Excellency, Major General Tarek Nasr, Helwan Cement Company
(HCC), subsidiary of Suez Cement Group of Companies, and CARE International in Egypt are to celebrate the
inauguration of three renovated schools in Minya .The General Director of the Non-Governmental Organizations
engagement Unit in the Ministry of Education, Mrs Randa Halawa, and other representatives from the Ministry will also
join in the celebration as key partners to the project.Improving Learning Environment through Community Engagement
project, which was launched in November 2014, was designed to improve the learning environment in five schools located
in Minya Governorate through enhancing and strengthening the institutional capacities of the School Boards of Trustees
(BoTs) and Education Departments within the Samalout district (Beni Khaled preparatory school, Modern Beni Khaled
primary school, Deir Gabal El Teer preparatory school, El Sirareya preparatory school and Beni Khaled El-Gedeida
primary School) enabling these entities to provide support to social responsibility and corporate engagement in their
endeavours towards improving the infrastructure, educational methods and learning tools in target schools.The project
targeted 3000 primary school students, 5 BoTs (parents & teachers), 5 student unions, 50 teachers and 25
supervisors.Bruno Carré, Suez Cement Managing Director, commented on the project: "Suez Cement Group of
Companies (SCGC) isn't only a driver of economic growth - we are an integral member of the community at large. This
means we have a duty to find ways of bettering the lives of those in need. I am proud to say that we have made education
a pillar of our comprehensive corporate social responsibility program that has only grown since we established SCGC 10
years ago. We plan to lead by example and hope others follow in our footsteps in promoting quality education".The project
had three specific objective. The first was to support the improvement of the infrastructure of 3 schools in the aim of
promoting a better learning environment, in addition to raising awareness among school management, teachers, and
students, on the significance of preserving and sustaining the school infrastructure and resources. Secondly, it aimed to
build the capacities of teachers, through providing technical and professional support and training programs, in order to
enhance educational quality within their schools and improve learning outcomes and techniques.In the meantime, the
third objective was to enhance Social Accountability and community engagement in the educational process within the
targeted local communities and reactivate the vital role of school BoTs, which are consisted of the parents and teachers,
in the educational development process.Mrs. Amira Hussein, Education Program at CARE added "the students' feedback
on the project showed their appreciation and enjoyment of the camps implemented by CARE as it was the first time for
them to join a fun school related activity. They also noted that the school has become more student-friendly after the
intervention."This comes from CARE's belief that engaging children in camps and school activities offer them a better
opportunity in life and encourages them to stay in school, and have a brighter future as tomorrow's parents and
community leaders. CARE intends to work with the renovated schools in their future projects in order to guarantee
sustainability of their projects.
Source: Timetric
___________________________________________________________________________________________

__________________________________________________________________________________________
5 Suez Cement Company SAE - Key Employees
Table 5: Suez Cement Company SAE - Key Employees
Name Job Title Board Level
Abd El Hakim Kassem Kulib Director Non Executive Board
Ahmed Abd El Saddik Salam Director Non Executive Board
Akhilesh Gupta Director Non Executive Board
Ali Ihsan Kucukoglu Director Non Executive Board
Andrea Dentone Director Non Executive Board
David Flory Director Non Executive Board
Dina Andrea George Khayat Director Non Executive Board
Hayrullah Hakan Gurdal Director Non Executive Board
Jose Maria Magrina Managing Director Executive Board
Mohamed Chaibi Director Non Executive Board
Mohamed Iftikhar Khan Director Non Executive Board
Mounir Soliman Neamattalah Director Non Executive Board
Raed Ibrahim Soliman El Mudaiham Director Non Executive Board
Source: Timetric
___________________________________________________________________________________________

__________________________________________________________________________________________
6 Suez Cement Company SAE - Locations and Subsidiaries
6.1 Suez Cement Company SAE - Head Office

K30 Maadi
Cairo
Zip: 2691
Egypt
Tel: + 20 202 5222000
Fax: + 20 2 2 5222067
6.2 Suez Cement Company SAE - Other Locations and Subsidiaries
Table 6: Suez Cement Company SAE - Subsidiaries
Suez Bags Company S.A.E

Qattamia
Km. 30, Maadi-Ain Sokhna Rd.
Egyptian Tourah Portland Cement S.A.E
Cairo
Egypt
Zip: 1002
Egypt
Tel: + 20 2 25222056
Fax: + 20 2 25222054
Suez Cement Company SAE (Helwan plant ) Suez Cement Company SAE (Suez plant)
Kafr Elw-Helwan K30 Maadi
16 Helwan Ein Sokhna Road
Egypt Egypt
Tel: + 2 02 25010771 Tel: + 2 02 25222000
Fax: + 2 02 25010428 Fax: + 2 02 25222067
Hilal Cement Company (K.S.C)

Suez Cement Company SAE (El Minya plant) Office Number 19, 19th Floor, Tower Marzouq Abu Bakr Al-Siddiq
Beni Khaled Street
Samalut Kuwait City
Egypt Zip: 13068
Tel: + 2 086 7711892 Kuwait
Fax: + 2 086 7710648 Tel: + 965 2 2257720
Fax: + 965 2 2257727
___________________________________________________________________________________________

__________________________________________________________________________________________
Table 6: Suez Cement Company SAE - Subsidiaries
Suez Cement Company SAE (Kattameya plant)

K70 Maadi
Development and Construction Material Company S.A.E
Ein Sokhna Road
Egypt
Egypt
Tel: + 2 06 25758434
Fax: + 2 06 25758434
Suez Cement Company SAE (Tourah plant)

Corniche El-Nil Helwan Road
Tourah
Egypt
Tel: + 2 02 27004316
Fax: + 2 02 27004435
Source: Timetric
___________________________________________________________________________________________

__________________________________________________________________________________________
7 Appendix
7.1 Methodology
Timetric company reports are based on a core set of research techniques which ensure the best possible level of quality
and accuracy of data. The key sources used include:
 Company Websites
 Company Annual Reports
 SEC Filings
 Press Releases
 Proprietary Databases
Notes
 Financial information of the company is taken from the most recently published annual reports or SEC filings
 The financial and operational data reported for the company is as per the industry defined standards
 Revenue converted to US$ at average annual conversion rate as of fiscal year end
7.2 Ratio Definitions
Capital Market Ratios measure investor response to owning a company's stock and
Capital Market Ratios
also the cost of issuing stock.
Price/Earnings (P/E) ratio is a measure of the price paid for a share relative to the
annual income earned per share. It is a financial ratio used for valuation: a higher P/E
ratio means that investors are paying more for each unit of income, so the stock is
more expensive compared to one with lower P/E ratio. A high P/E suggests that
Price/Earnings Ratio (P/E)
investors are expecting higher earnings growth in the future compared to companies
with a lower P/E. Price per share is as of previous business close, and EPS is from
latest annual report.
Formula: Price per Share / Earnings per Share
Enterprise Value/EBITDA (EV/EBITDA) is a valuation multiple that is often used in

parallel with, or as an alternative to, the P/E ratio. The main advantage of EV/EBITDA
Enterprise Value/Earnings over the PE ratio is that it is unaffected by a company's capital structure. It compares
before Interest, Tax, the value of a business, free of debt, to earnings before interest. Price per share is as
Depreciation & Amortization of previous business close, and shares outstanding last reported. Other items are from
(EV/EBITDA) latest annual report.
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / (Net
Income + Interest + Tax + Depreciation + Amortization)
Enterprise Value/Sales (EV/Sales) is a ratio that provides an idea of how much it costs
to buy the company's sales. EV/Sales is seen as more accurate than Price/Sales
because market capitalization does not take into account the amount of debt a
Enterprise Value/Sales company has, which needs to be paid back at some point. Price per share is as of
previous business close, and shares outstanding last reported. Other items are from
latest annual report.
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Sales
___________________________________________________________________________________________

__________________________________________________________________________________________
Enterprise Value/Operating Profit measures the company's enterprise value to the

operating profit. Price per share is as of previous business close, and shares
Enterprise Value/Operating
outstanding last reported. Other items are from latest annual report.
Profit
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) /
Operating Income
Enterprise Value/Total Assets measures the company's enterprise value to the total
assets. Price per share is as of previous business close, and shares outstanding last
Enterprise Value/Total Assets reported. Other items are from latest annual report.
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Total
Assets
Dividend Yield shows how much a company pays out in dividends each year relative to
its share price. In the absence of any capital gains, the dividend yield is the return on
Dividend Yield
investment for a stock.
Formula: Annual Dividend per Share / Price per Share
Equity Ratios These ratios are based on per share value.
Earnings per share (EPS) is the portion of a company's profit allocated to each
outstanding share of common stock. EPS serves as an indicator of a company's
Earnings per Share (EPS)
profitability.
Formula: Net Income / Weighted Average Shares
Dividend is the distribution of a portion of a company's earnings, decided by the board

Dividend per Share
of directors, to a class of its shareholders.
Dividend cover is the ratio of company's earnings (net income) over the dividend paid
Dividend Cover to shareholders.
Formula: Earnings per share / Dividend per share
Book Value per Share measure used by owners of common shares in a firm to
determine the level of safety associated with each individual share after all debts are
Book Value per Share
paid accordingly.
Formula: (Shareholders Equity - Preferred Equity) / Outstanding Shares
Cash Value per Share is a measure of a company's cash (cash & equivalents on the
balance sheet) that is determined by dividing cash & equivalents by the total shares
Cash Value per Share
outstanding.
Formula: Cash & equivalents / Outstanding Shares
Profitability Ratios are used to assess a company's ability to generate earnings, based
on revenues generated or resources used. For most of these ratios, having a higher
value relative to a competitor's ratio or the same ratio from a previous period is
indicative that the company is doing well.
Gross margin is the amount of contribution to the business enterprise, after paying for
Gross Margin direct-fixed and direct variable unit costs.
Formula: {(Revenue-Cost of revenue) / Revenue}*100
Operating Margin is a ratio used to measure a company's pricing strategy and

Operating Margin operating efficiency.
Formula: (Operating Income / Revenues) *100
___________________________________________________________________________________________

__________________________________________________________________________________________
Net Profit Margin is the ratio of net profits to revenues for a company or business
segment - that shows how much of each dollar earned by the company is translated
Net Profit Margin
into profits.
Formula: (Net Profit / Revenues) *100
Profit Markup measures the company's gross profitability, as compared to the cost of
Profit Markup revenue.
Formula: Gross Income / Cost of Revenue
Profit Before Interest & Tax Margin shows the profitability of the company before
PBIT Margin (Profit Before
interest expense & taxation.
Interest & Tax)
Formula: {(Net Profit + Interest + Tax) / Revenue} *100
Profit Before Tax Margin measures the pre-tax income over revenues.
PBT Margin (Profit Before Tax)
Formula: {Income Before Tax / Revenues} *100
Return on Equity measures the rate of return on the ownership interest (shareholders'
Return on Equity equity) of the common stock owners.
Formula: (Net Income / Shareholders Equity)*100
Return on Capital Employed is a ratio that indicates the efficiency and profitability of a
company's capital investments. ROCE should always be higher than the rate at which
Return on Capital Employed the company borrows; otherwise any increase in borrowing will reduce shareholders'
earnings.
Formula: EBIT / (Total Assets – Current Liabilities)*100
Return on Assets is an indicator of how profitable a company is relative to its total

assets, the ratio measures how efficient management is at using its assets to generate
Return on Assets
earnings.
Formula: (Net Income / Total Assets)*100
Return on Fixed Assets measures the company's profitability to its fixed assets
Return on Fixed Assets (property, plant & equipment).
Formula: (Net Income / Fixed Assets) *100
Return on Working Capital measures the company's profitability to its working capital.
Return on Working Capital
Formula: (Net Income / Working Capital) *100
Cost ratios help to understand the costs the company is incurring as a percentage of
Cost Ratios
sales.
Operating costs as percentage of total revenues measures the operating costs that a
Operating costs (% of Sales) company incurs compared to the revenues.
Formula: (Operating Expenses / Revenues) *100
Administration costs as percentage of total revenue measures the selling, general and
Administration costs (% of
administrative expenses that a company incurs compared to the revenues.
Sales)
Formula: (Administrative Expenses / Revenues) *100
Interest costs as percentage of total revenues measures the interest expense that a
Interest costs (% of Sales) company incurs compared to the revenues.
Formula: (Interest Expenses / Revenues) *100
___________________________________________________________________________________________

__________________________________________________________________________________________
Leverage ratios are used to calculate the financial leverage of a company to get an
idea of the company's methods of financing or to measure its ability to meet financial
Leverage Ratios
obligations. There are several different ratios, but the main factors looked at include
debt, equity, assets and interest expenses.
Debt to Equity Ratio is a measure of a company's financial leverage. The debt/equity

ratio also depends on the industry in which the company operates. For example,
Debt to Equity Ratio
capital-intensive industries tend to have a higher debt equity ratio.
Formula: Total Liabilities / Shareholders Equity
Debt to capital ratio gives an idea of a company's financial structure, or how it is

financing its operations, along with some insight into its financial strength. The higher
the debt-to-capital ratio, the more debt the company has compared to its equity. This
indicates to investors whether a company is more prone to using debt financing or
Debt to Capital Ratio
equity financing. A company with high debt-to-capital ratios, compared to a general or
industry average, may show weak financial strength because the cost of these debts
may weigh on the company and increase its default risk.
Formula: {Total Debt / (Total assets - Current Liabilities)}
Interest Coverage Ratio is used to determine how easily a company can pay interest
Interest Coverage Ratio on outstanding debt, calculated as earnings before interest & tax by interest expense.
Formula: EBIT / Interest Expense
Liquidity ratios are used to determine a company's ability to pay off its short-terms
debts obligations. Generally, the higher the value of the ratio, the larger the margin of
safety that the company possesses to cover short-term debts. A company's ability to
Liquidity Ratios turn short-term assets into cash to cover debts is of the utmost importance when
creditors are seeking payment. Bankruptcy analysts and mortgage originators
frequently use the liquidity ratios to determine whether a company will be able to
continue as a going concern.
Current Ratio measures a company's ability to pay its short-term obligations. The ratio
gives an idea of the company's ability to pay back its short-term liabilities (debt and
payables) with its short-term assets (cash, inventory, receivables). The higher the
Current Ratio current ratio, the more capable the company is of paying its obligations. A ratio under 1
suggests that the company would be unable to pay off its obligations if they came due
at that point.
Formula: Current Assets / Current Liabilities
Quick ratio measures a company's ability to meet its short-term obligations with its
Quick Ratio most liquid assets.
Formula: (Current Assets - Inventories) / Current Liabilities
Cash ratio is the most stringent and conservative of the three short-term liquidity ratio.
It only looks at the most liquid short-term assets of the company, which are those that
can be most easily used to pay off current obligations. It also ignores inventory and
Cash Ratio
receivables, as there are no assurances that these two accounts can be converted to
cash in a timely matter to meet current liabilities.
Formula: {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
Efficiency ratios measure a company's effectiveness in various areas of its operations,

Efficiency Ratios
essentially looking at maximizing its use of resources.
Fixed Asset Turnover ratio indicates how well the business is using its fixed assets to
generate sales. A higher ratio indicates the business has less money tied up in fixed
Fixed Asset Turnover assets for each currency unit of sales revenue. A declining ratio may indicate that the
business is over-invested in plant, equipment, or other fixed assets.
Formula: Net Sales / Fixed Assets
___________________________________________________________________________________________

__________________________________________________________________________________________
Asset turnover ratio measures the efficiency of a company's use of its assets in
generating sales revenue to the company. A higher asset turnover ratio shows that the
Asset Turnover
company has been more effective in using its assets to generate revenues.
Formula: Net Sales / Total Assets
Current Asset Turnover indicates how efficiently the business uses its current assets to
Current Asset Turnover generate sales.
Formula: Net Sales / Current Assets
Inventory Turnover ratio shows how many times a company's inventory is sold and
replaced over a period. A low turnover implies poor sales and, therefore, excess
Inventory Turnover
inventory. A high ratio implies either strong sales or ineffective buying.
Formula: Cost of Goods Sold / Inventory
Working Capital Turnover is a measurement to compare the depletion of working

capital to the generation of sales. This provides some useful information as to how
Working Capital Turnover
effectively a company is using its working capital to generate sales.
Formula: Net Sales / Working Capital
Capital employed turnover ratio measures the efficiency of a company's use of its
Capital Employed Turnover equity in generating sales revenue to the company.
Formula: Net Sales / Shareholders Equity
Capex to Sales ratio measures the company's expenditure (investments) on fixed and
Capex to sales related assets' effectiveness when compared to the sales generated.
Formula: (Capital Expenditure / Sales) *100
Net income per Employee looks at a company's net income in relation to the number of
employees they have. Ideally, a company wants a higher profit per employee possible,
Net income per Employee
as it denotes higher productivity.
Formula: Net Income / No. of Employees
Revenue per Employee measures the average revenue generated per employee of a
company. This ratio is most useful when compared against other companies in the
Revenue per Employee
same industry. Generally, a company seeks the highest revenue per employee.
Formula: Revenue / No. of Employees
Efficiency Ratio is used to calculate a bank's efficiency. An increase means the

company is losing a larger percentage of its income to expenses. If the efficiency ratio
Efficiency Ratio
is getting lower, it is good for the bank and its shareholders.
Formula: Non-interest expense / Total Interest Income

Source : Timetric
7.3 Disclaimer
All Rights Reserved
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means,
electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Timetric.
The data and analysis within this report is driven by Timetric from its own primary and secondary research of public and
proprietary sources and does not necessarily represent the views of the company profiled.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the
findings, conclusions and recommendations that Timetric delivers will be based on information gathered in good faith from
___________________________________________________________________________________________

__________________________________________________________________________________________
both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Timetric can
accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
___________________________________________________________________________________________

Timetric Report

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Timetric Report

Uploaded by

Copyright:

Available Formats

Suez Cement Company SAE

Suez Cement Company SAE Financial Snapshot

Website www.suezcement.com.eg Revenue and Margins

Ticker Symbol, Stock Exchange SZCD, London Stock Exchange (LON)

Number of Employees 1,721

Fiscal Year End December

Revenue (in US$ million) 615

Suez Cement Company SAE - Company Capsule Page 1

Suez Cement Company SAE - Company Capsule Page 2

Suez Cement Company SAE - Company Capsule Page 3

Suez Cement Company SAE - Company Capsule Page 4

1 Suez Cement Company SAE - Business Analysis

1.1 Suez Cement Company SAE - Company Overview

Suez Cement Company SAE - Company Capsule Page 5

1.2 Suez Cement Company SAE - Major Products and Services

Table 1: Suez Cement Company SAE - Major Products and Services

Suez Cement Company SAE - Company Capsule Page 6

2 Suez Cement Company SAE - Analysis of Key Performance

Table 2: Suez Cement Company SAE - Key Ratios - Annual

Key Ratios Unit/Currency 2016 2015 2014 2013 2012

Dividend per Share EGP 1.00 2.65 2.65 2.65

Dividend Cover Absolute -0.33 1.02 1.12 1.09

Gross Margin % 9.36 7.49 17.65 19.10 18.66

Operating Margin % -4.47 -1.55 12.08 14.26 16.44

Net Profit Margin % -8.58 -1.07 8.01 10.66 11.41

Profit Markup % 10.33 8.10 21.44 23.61 22.94

Return on Equity % -8.62 -0.91 6.85 7.40 7.40

Return on Capital Employed % -3.60 -1.13 8.92 8.76 9.45

Return on Assets % -4.69 -0.60 4.59 5.40 5.42

Return on Fixed Assets % -3.67 -1.23 10.26 10.53 11.36

Return on Working Capital % -200.68 -14.12 68.14 52.21 56.17

Sales Growth % 8.93 -8.28 21.83 9.84 -4.64

Operating Income Growth % -111.76 3.15 -4.71 -10.13

EBITDA Growth % -109.95 -1.16 3.09 -17.58

Net Income Growth % -112.21 -8.49 2.65 -7.78

EPS Growth % -112.02 -9.09 3.11 -7.76

Working Capital Growth % -77.88 -43.23 -20.97 2.52 -0.18

Operating Costs (% of Sales) % 104.47 101.55 87.92 85.74 83.56

Administration Costs (% of Sales) % 10.07 9.87 7.10 7.34 6.67

Current Ratio Absolute 1.04 1.27 1.45 1.79 1.80

Quick Ratio Absolute 0.67 0.72 0.96 1.31 1.32

Cash Ratio Absolute 0.37 0.46 0.68 1.04 0.96

Suez Cement Company SAE - Company Capsule Page 7

Table 2: Suez Cement Company SAE - Key Ratios - Annual

Key Ratios Unit/Currency 2016 2015 2014 2013 2012

Net Debt to Equity Absolute -0.10 -0.10 -0.20 -0.23 -0.22

Debt to Capital Ratio Absolute 0.10 0.05 0.03 0.01 0.01

Asset Turnover Absolute 0.55 0.56 0.57 0.51 0.47

Fixed Asset Turnover Absolute 1.31 1.31 1.38 1.24 1.16

Inventory Turnover Absolute 4.15 4.17 4.24 4.84 4.65

Current Asset Turnover Absolute 1.63 1.94 1.76 1.61 1.52

Capital Employed Turnover Absolute 1.00 0.86 0.86 0.69 0.65

Working Capital Turnover Absolute 44.89 9.12 5.64 3.66 3.42

Revenue per Employee EGP 3,571,035.00

Net Income per Employee EGP -306,563.00

Capex to Sales % 9.09 5.52 10.59 8.51 5.35

Suez Cement Company SAE - Company Capsule Page 8

Table 3: Suez Cement Company SAE - Key Ratios - Interim

Key Ratios Unit/Currency Sep-2017 Jun-2017 Mar-2017 Dec-2016

Book Value per Share EGP 32.13 33.22 33.53 33.66

Gross Margin % -1.46 3.56 9.93 6.52

Operating Margin % -12.55 0.45 4.58 -19.46

Net Profit Margin % -12.01 -4.12 1.72 -29.40

Profit Markup % -1.44 3.69 11.03 6.97