青岛地区水泥市场研究报告课件.pptVIP

Rinker’s Qingdao EBIT increased significantly in the past three years, with most of the increase came from regional overhead reductions and plant cost savings regional overheads decreased by 20% per year from 2004 through 2006 Pumping EBIT increased in 2005 due to cost reduction, however, the significantly declined pumping volume in 2006 brought the pumping EBIT back to a low level However, transport costs experienced an increase, which driving higher the total operational cost Concrete cost remained relatively stable Note: * YEM 2004 is from July 2003 to March 2004, YEM 2005 is from April 2004 to March 2005, while YTD 2006 is from from April 2005 to December 2005 ** Other adjustments include regional overhead, G/L on disposal of assets and bad debts provision. Regional overhead accounts for the most majority of this category Source: Rinker Rinker Qingdao’s earnings have seen steady increases over the past three years Rinker Margin Analysis(2004-06*) RMB/m3 QINGDAO – SUPPLY ANALYSIS – INDUSTRY PROFITABILITY CAGR%(2004-06) 133.0 (20.2) (8.3) 8.2 0.8 EBIT Total Other Adjustments Plant Costs Transport Cost Concrete Cost Volume K m3 133.0 275.4 284.0 Despite well-established credit terms, substantial outstanding payments are still common in the industry Contractors generally give similar credit terms in Qingdao concrete suppliers generally begin to receive payment when the foundation is laid, or when several storeys have been built before the main structure is completed, concrete suppliers usually have received 60-70% of the full concrete price owed concrete suppliers usually receive 80-90% of the total payment when the project is finished “… Payment to concrete suppliers is divided into different phases. In general we pay them 60%, on a monthly basis, before the main structure is finished. When the project is finished, we will pay around 85% of the total. Of course, payment might be delayed as we may not have been paid ourselves …” Project Manager, Jiaozhou