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Cost and EBITDA per tonne of cement

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

Kalinga Cement (a fictional company in Indonesia) sells cement at an average of USD 70 per tonne, delivered. Per tonne, power and fuel cost USD 20, raw materials USD 10, freight to customers USD 14, staff and other plant costs USD 9, and selling and administration USD 5. What is its EBITDA per tonne and its EBITDA margin? All figures are illustrative.

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

EBITDA per tonne = price per tonne minus cash costs per tonneThis comes from the goal: profit per tonne, then times tonnes sold.
- Price per tonne (after discounts)
- Cash costs per tonne: power and fuel, raw materials, freight, plant costs, selling and administration

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: Total cash cost
What a strong candidate does: Add the five cost lines.
Cash cost (USD per tonne): 20 + 10 + 14 + 9 + 5 = 58
Step 2: EBITDA per tonne
What a strong candidate does: Price 70 minus cash cost 58.
EBITDA (USD per tonne): 70 - (20 + 10 + 14 + 9 + 5) = 12
Step 3: EBITDA margin
What a strong candidate does: 12 divided by 70.
EBITDA margin (fraction): 12 ÷ 70 = 0.1714
Step 4: Energy and freight share
What a strong candidate does: Power, fuel and freight together, as a share of price.
Energy and freight share of price (fraction): (20 + 14) ÷ 70 = 0.4857

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

Kalinga earns about USD 12 of EBITDA per tonne, a margin of about 17 percent, so any plan to raise profit should start with energy and freight. First, power, fuel and freight take about 49 percent of the price, far more than any other line. Second, this means a 10 percent rise in fuel prices costs USD 2 a tonne, a sixth of EBITDA, unless prices rise too. The risk is that cutting freight by selling only nearby lowers volume. As a next step, compare fuel cost per tonne and average lead distance with the two closest rivals.

Risks a strong answer names: Prices in a region move with the balance of local capacity and demand, not with costs; Fuel prices can swing quickly; a plant that can burn several fuels is less exposed.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.