evolving, as a matter of course… - zamil industrial · 2011-02-01 · founded in 1974 as a...

Evolving,as a Matter of Course…

January 2011

Zamil Industrial | Outlook

Excerpts from the Experts:

“Zamil Industrial (2240.SE, SAR32.3, Overweight), with facilities to build prefabricated steel structures, could benefit here, as well supplying the air conditioning equipment to hotels that are built in later this decade.”

– HSBC Report on Qatar World Cup Bid 2022 (Dec. 2010)

Zamil Industrial is well positioned to capture a considerable

market share of local and regional ambitious infrastructure

projects and expansions through a balanced business

portfolio.

2

Zamil Industrial | Outlook

Facts and Opportunities:

• Short Term: Saudi Arabia and Qatar booming

economies with announced expenditures of USD 400

billion and USD 100 billion respectively.

• Medium Term: Iraq is a sleeping giant. We have

been active through Jordan and Dubai offices.

• Emerging Markets: Operations exist in Egypt,

Vietnam since 1999 and India since 2008.

3

Zamil Industrial | Strengths

Competitive Advantages:

• Ranked 1st as the “Most Influential Construction

Supplier in the GCC” by Construction Week.

• Considered as the only “Total Building Solutions

Provider” in the Saudi Market.

• A “One Stop Shop” for any industrial, commercial

project requirement.

• All Joint Ventures are in association with the

“Number One” Global Leaders in their industry.

4

Zamil Industrial | Strengths

360o

Relationship Network:

5

Zamil Industrial operates through five major sectors – Steel, HVAC, Glass,

Insulation Materials, and Concrete - in addition to its other businesses.

Zamil Industrial | Operations

6

6

Zamil Industrial | Total Solution

Steel

Structures

Air

Conditioning

Glass

Insulation

Concrete

7

Zamil Industrial | Total Solution

Concrete

Insulation

Steel

Structures

Glass

Air

Conditioning

8

Zamil Industrial | Five-Year Consolidated Performance Highlights

Key Financial Data 2005 2006 2007 2008 2009 2010(unaudited)

REVENUES

SAR 000s

% Increase / (Decrease)

2,369,493

20.5%

2,867,594

21%

3,681,260

28.4%

4,549,602

23.6%

4,204,412

(7.6%)

4,016,532

(4.5%)

EBITDA

SAR 000s229,916 356,899 405,648 495,571 485,990 440,275

NET PROFIT

SAR 000s

% Increase

106,362

51.6%

191,647

80.2%

206,500

7.8%

225,136

9.0%

230,150

2.2%

211,134

(8.3%)

EARNINGS PER SHARE

SAR

% Increase

1.77

51.6%

3.19

80.2%

3.44

7.8%

3.75

9.0%

3.84

2.2%

3.52

(8.3%)

SHAREHOLDERS EQUITY

SAR 000s

% Increase

587,515

18.7%

741,496

26.2%

892,282

20.3%

1,028,259

15.2%

1,195,471

16.3%

1,295,082

8.3%

EXPORT SALES

SAR 000s

% of Revenues

933,887

39.4%

1,105,628

38.6%

1,337,109

36.3%

1,520,869

33.4%

1,111,474

26.9%

1,083,249

27%

9

14.0

45.3 50.2

70.2

106.3

191.7206.5

225.1230.1211.1

0

50

100

150

200

250

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Zamil Industrial | 10-Year Consolidated Results Highlights

1.241.41

1.56

1.97

2.37

2.88

3.68

4.55

4.204.02

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.002001

2002

2003

2004

2005

2006

2007

2008

2009

2010

SA

R B

illi

on

SA

R M

illi

on

0.38 0.42 0.430.49

0.58

0.74

0.89

1.02

1.191.29

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Revenues

Shareholders’ Equity Net Profits

SA

R B

illi

on

0.23

0.76 0.841.17

1.77

3.193.44

3.75 3.843.52

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

SA

R P

er

Sh

are

Earnings Per Share

CAGR = 13.9% CAGR = 35.1%

CAGR = 14.4%CAGR = 35.1%

10

Zamil Industrial | Financial Highlights

Asset Base Track

Record in 10 Years

(Assets Employed)

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

0.50

0.48

0.53

0.56

0.62

0.73

0.95

1.10

2.21

2.22

2.16

SAR Billion

CAPEX Investment

in 5 Years

SAR Million

2005

2006

2007

2008

2009

2010

72.0

120.5

335.9

299.0

180.2

120.4

11

Zamil Industrial | Financial Highlights

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2005 2006 2007 2008 2009 2010

Sectorwise Revenues (SAR Million)

HVAC Steel Glass/Fiberglass

229.9

356.9

405.7

495.6 486440.3

0

100

200

300

400

500

600

2005 2006 2007 2008 2009 2010

Consolidated EBITDA (SAR Million)

-50

0

50

100

150

200

250

300

350

400

2005 2006 2007 2008 2009 2010

Sectorwise Operating Income (SAR Million)

HVAC Steel Glass/Fiberglass

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2005 2006 2007 2008 2009 2010

Geographical Sales (SAR Million)

Saudi Asia Europe Africa 12

Zamil Industrial | Production Capacities of ZI Sectors

Sector Installed Capactity Expansion

STEEL

(Metric Tons)

Pre Engineered Buildings Global: 324,000

Structural Steel Division: 60,000

Towers & Galvanizing: 70,000

Process Equipment Division: 20,000

Building Components: 30,000

-

HVAC

(Units/Systems)

Window ACs: 1 million

Mini-splits : 200,000

Central ACs: 30,000

-

GLASS

(Square Meters)

Laminated & Hardened Glass: 525,000

Heat Mirror Glass: 1,140,000-

INSULATIONArabian Fiberglass Insulation Co.: 15,000 tons

Armacell Zamil Middle East Co.: 220,000 sqm

AFICO: 20,000 tons

-

CONCRETESaudi Aerated Concrete Industries Co: 180,000 cubic meters

RANCO Zamil: 120,000 cubic meters-

13

General Information

Zamil Industrial | Overview

1 Founded in 1998 and

headquartered in

Dammam, Saudi Arabia

A leading manufacturing

and fabrication group that

provides products,

engineering systems and

services to the construction

industry

ScandinaviaZamil Industrial was formed in

1998 in Dammam, Saudi Arabia

as a Closed Joint Stock Company

by bringing Zamil Air

Conditioners, Zamil Steel and

Zamil Glass – who were

operating since the 1970s - under

one industrial company.

A leading manufacturing and

fabrication group that provides

building materials and products,

engineering systems and

services to the construction and

oil & gas industries.

Zamil Industrial shares are

actively traded on the Saudi

Stock Exchange (Tadawul) since

2002.

Zamil Industrial Investment Co.

15

Company Facts

Zamil Industrial

currently employs more than 10,000

people in 55 countries

The company derives 30% of its

revenues from outside

Saudi Arabia.

Sells products to

over 90 countries

Has manufacturing

facilities in Saudi

Arabia, United Arab

Emirates, Egypt, India,

Vietnam and Italy.

2010 Turnover: SAR 4.02 billion

Global Operations: SAR 1.6 billion (39% of Sales)

Shareholders’ Equity: SAR 1.3 billion

Current Paid Up Capital*: SAR 600 million

* The company paid up capital was increased from SAR 450 M to SAR 600 M in 31 March 2010.

- USD 1 = SAR 3.75 16

Steel Sector

Zamil Industrial | Steel Sector

A global leader in the manufacture of pre-engineered steel buildings and the premier

supplier in the Middle East of various steel products

Number of Employees: More than 6,000 people worldwide

Activities: Engineering, manufacturing, product research and development, sales, erection

and project management

Products: Pre-engineered steel buildings, structural steel support products, high rise

buildings, process equipment (pressure vessels and boilers), transmission and

telecommunication towers, open web joists and steel decks

Location: Zamil Steel has (9) nine factories located in Saudi Arabia, Egypt, Vietnam, India

and the UAE

Markets: Sales in over 90 countries in MENA, Asia, Africa, Eastern & Central Europe,

South-Western Pacific and Central America

Zamil Steel Industries

18


A joint venture with Steel Plus Limited, a subsidiary of Canam Group, Canada

Ownership: 65%

Activities: Engineering, manufacturing, sales and erection

Products: Open web joists, steel decks and joists, Hambro Floor System, and structural

steel components

Location: Saudi Arabia and the UAE

Markets: MENA, Asia, Africa, and Eastern & Central Europe

Canam Asia Ltd.

19


A joint venture with Petro-Chem Development Company, USA

Ownership: 50%

Activities: Engineering, manufacturing, sales and service

Products: Fired Heaters / Process Furnaces

Location: Dammam, Saudi Arabia

Markets: GCC, MENA

Petro-Chem Zamil Co. Ltd.

20

HVAC Sector

Zamil Industrial | HVAC Sector

Founded in 1974 as a pioneer in the Saudi Arabian air conditioning industry, the company

has expanded over the past three decades to become a leading international manufacturer of

air conditioning systems and is currently the Number One producer in the Middle East.

Number of Employees: More than 3,300 people worldwide

Activities: Design, manufacturing, research & development, sales, service and

maintenance (Zamil CoolCare), testing, inspection and balancing (Ikhtebar)

Products: Room air conditioners, mini-splits, fan coil units, central air conditioners,

packaged units, chillers, air handling units and air cooled heat exchangers

Location: Saudi Arabia, Italy and India

Markets: Sales in over 55 countries in MENA, Asia, Africa, Europe, USA and Australia

Zamil Air Conditioners

22


A joint venture with General Electric to produce GE brand air conditioners

Ownership: 51%

Activities: Design, manufacturing, research & development, sales and service

Products: Room air conditioners, mini-splits, ducted splits


Markets: GCC

Middle East Air Conditioners Co. Ltd.

23


A joint venture with Hudson Products Corporation , USA

Ownership: 50%

Activities: Manufacturing, assemble, sales and service

Products: Air Cooled Heat Exchangers


Markets: GCC, MENA

Zamil Hudson Co. Ltd.

24


A joint venture with Advantec Coils Private Limited of India

Ownership: 30%

Activities: Design, manufacturing, sales and service

Products: Room air conditioners and Mini split systems

Location: India

Markets: India

Zamil Advantec Coils Ltd.

25

Glass Sector

Zamil Industrial | Glass Sector

Founded in 1983 in Dammam, Saudi Arabia. It is a prominent processor of architectural

glass products

Number of Employees: 130 people

Activities: Engineering, processing, sales and installation

Products: Laminated and tempered glass, Heat Mirrors®, frameless glass, double glazed,

fire resistant glass, security glass


Markets: GCC

Zamil Glass Industries

27

Insulation Sector

Zamil Industrial | Insulation Sector

A joint venture with Owens Corning , USA

The factory underwent a major expansion in 2008 (SAR 60 million) to increase its

production capacity by 50%

Ownership: 51%

Activities: Manufacture, development, sale, supply and installation

Products:

• Mechanical: duct liner, faced duct wrap insulation, heavy density pipe insulation,

quiet liner, thermal insulating wool insulation and mechanical boards.

• Architectural: residential cavity wall insulation, blanket insulation, acoustical ceiling

panels, metal building insulation, board and roof deck board insulation


Markets: Sales in over 20 countries in GCC, MENA, Asia and Far East

Arabian Fiberglass Insulation Co. Ltd.

29

Zamil Industrial | Insulation Sector

A joint venture with Armacell of Germany

Ownership: 49%

Activities: Manufacture, development, sale, supply and installation

Products: Technical rubber insulation products including engineered foams; Armaflex® and

Armasound


Markets: GCC, MENA

Armacell Zamil Middle East Co. Ltd.

30

Concrete Sector

Zamil Industrial | Concrete Sector

A joint venture with RANCO Precast, a subsidiary of Rabiah & Nassar Group

Ownership: 50%

Activities: Design, manufacture, sale, supply and erection

Products: Precast concrete buildings, concrete based products

Location: Riyadh, Saudi Arabia

Markets: GCC

Rabiah & Nassar and Al Zamil Concrete Industries Company Ltd.

32

Zamil Industrial | Concrete Sector

A joint venture with Zamil Group Holding Company and Aerated Concrete Industries

Company KSC of Kuwait

Ownership: 27.5%

Activities: Design, manufacture, sale, supply and erection

Products: Heavy duty, light weight building units of reinforced and non-reinforced concrete

with the most advanced autoclaves

Location: Jubail, Saudi Arabia

Markets: GCC

Saudi Aerated Concrete Industries Co. Ltd

33

Other Businesses

Zamil Industrial | Other Businesses

A joint venture with New Delhi Tele-Towers Private Ltd.

Ownership: 51%

Activities: Supply of telecom towers, accompanying shelters fitted with the appropriate

sandwich panels, customized air conditioning equipment and power interface units. Supply a

range of related support products along with comprehensive installation and maintenance

services

Location: New Delhi, India

Markets: India, Asia, Far East and Africa

Zamil New Delhi Infrastructure Private Ltd.

35

36

3

10% share in IIB Paper Company Limited (limited liability company registered in Cayman

Islands). The principal activity of the company is the production of tissue paper.4

For further details, please contact:

Corporate Communications & Investor Relations

[email protected]

evolving, as a matter of course… - zamil industrial · 2011-02-01 · founded in 1974 as a...

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