Bawan Co. · TADAWUL:1302
Bawan — Q1 2023 Earnings Presentation
30 slides from Bawan's earnings presentation, Jun 1, 2023
Slide 1: Investor Presentation Q1 2023
INVESTOR PRESENTATION Q1 2023 | INVESTOR PRESENTATION | Q1 2023| BAWAN
Slide 2: Table of contents
Table of contents Disclaimer 03 Who We Are 04 Key Highlights 11 Macro Overview 13 Financial Perspective 18 | INVESTOR PRESENTATION | Q1 2023| BAWAN
Slide 3: Disclaimer
Disclaimer This presentation has been prepared solely for use as the earnings presentation of Bawan Company (or “The Group”). By attending or by reading this presentation, you agree to be bound by the following limitations: • The information contained in this presentation is for background purposes
Slide 4: Who We Are
Who We Are 04 | INVESTOR PRESENTATION | Q1 2023| BAWAN
Slide 5: Who We Are: sectors of operation
Who We Are We operate in 5 sectors: ELECTRIC METAL WOOD PLASTIC CONCRETE 05 | INVESTOR PRESENTATION | Q1 2023| BAWAN
Slide 6: Group Structure
Who We Are Group Structure 3 4 Saudi Bina Engineering Consultancy Co 06 | INVESTOR PRESENTATION | Q1 2023| BAWAN
Slide 7: Our Major Clients Expect High Standards
Who We Are Our Major Clients Expect High Standards 07 | INVESTOR PRESENTATION | Q1 2023| BAWAN
Slide 8: Vision and Mission
Who We Are VISION Bawan strives to become the leading group in the Kingdom of Saudi Arabia and the Middle East in the capital goods sector. MISSION To enhance Bawan’s customers loyalty by providing market-leading and innovative products and services, through its existing sectors and new sectors in t
Slide 9: Business Case
Who We Are Business Case Strong & Diversified Unique Business Mix Barriers to Entry Customer Base Investment in quality assets, systems, and people Qualified & Experienced Exposure to high growth Lengthy customer pre-qualification processes Management Team sectors Long-term customer relationships 09 |
Slide 10: Strategy
Who We Are Strategy A well defined strategy enhanced by our core value Strengthen relationship Continue to improve Invest in Expand Product Enhance Existing Pursue Selective with existing customers operations New Products Capacity Product Acquisitions 10 | INVESTOR PRESENTATION | Q1 2023| BAWAN
Slide 11: Key Highlights
Key Highlights 11 | INVESTOR PRESENTATION | Q1 2023| BAWAN
Slide 12: Key Highlights
Key Highlights Revenue Operating Net Income EBITDA Net Operating Interest bearing Total Asset Income cash flow Net debt Q1 2023 944.4 46.6 34.5 72.0 69.7 448.9 2,359.4 Q4 2022 950.6 52.2 29.9 73.5 88.7 556.0 2,283.0 Q1 2022 950.4 66.6 50.3 87.7 94.1 684.1 2,382.5 Change% Q1 23 Vs Q1 22 -1% -30% -31%
Slide 13: Macro Overview
Macro Overview 13 | INVESTOR PRESENTATION | Q1 2023| BAWAN
Slide 14: Saudi Arabia Outlook
Macro Overview Saudi Arabia Outlook 1- Saudi GDP grows 5.4% in Q4 2022, 8.7% in 2022 2- Saudi Arabia posts SAR 44.5 bln trade surplus , oil exports decline to 7.46 mln, non-oil exports fall 16% to SAR 20.9 bln in February 3- Residential real estate finance provided by banks to individuals declined by
Slide 15: Inflation and Brent Oil Price
Macro Overview Inflation Brent Oil Price The inflation rate in Saudi Arabia increased 35% in February 2023 Brent oil prices decreased 23.7% in Q1 2023 compared to same period last compared to Q1 2022 as a result of the continuous improvement in year mainly due to concerns about the slowdown in global
Slide 16: Tadawul Index and Consumer Spending
Macro Overview Tadawul Index Consumer Spending The Tadawul All Share Index (TASI) continued to trend lower as Q1 Consumer spending in Saudi Arabia increased 8% in 2023 comparing to decreased 1% QoQ The decline was due to the selling pressures the global 2022, POS transactions rose 18% year-on-year (
Slide 17: Bawan Market Performance and Key Metrics
Macro Overview Bawan Market Performance Key Metrics * annualized May 09 2023 Bawan TASI Bawan Sector Market Cap SAR 1.73B 140 Shares Outstanding 60m 120 Price/earning 11.79 100 Operating P/E 11.79 Price / book value 2.02 80 Dividend Yield 6.1% 60 Market 40 P/E 20.03 20 P/E excluding lose making & ar
Slide 18: Financial Perspective
Financial Perspective 18 | INVESTOR PRESENTATION | Q1 2023| BAWAN
Slide 19: Company Performance
Company Performance Revenue (SAR Million) EBIT (SAR Million) 950 944 68.4 960 70.0 940 60.0 50.8 51.8 920 50.0 900 40.0 880 862 30.0 860 20.0 840 820 10.0 800 0.0 Q1 2021 Q1 2022 Q1 2023 Q1 2021 Q1 2022 Q1 2023 EBITDA (SAR Million) Net income (SAR Million) 100.0 87.7 60.0 90.0 50.3 72.0 50.0 80.0 68
Slide 20: Liquidity
Liquidity Assets Liabilities 1,600 2,500 1,400 758 183 188 2,000 755 1,200 186 741 1,000 1,500 800 1,000 600 1,461 1,528 1,602 500 400 1,229 1,168 1,246 200 0 0 FY 2021 FY 2022 Q1 2023 FY 2021 FY 2022 Q1 2023 Current Assets Non-current Assets Current Liabilities Non-current Liabilities Operating Cas
Slide 21: Segment Revenue
Segment Revenue SEGMENT REVENUE SEGMENT REVENUE SEGMENT REVENUE Q1 2021 Concrete, 42.8 , 5% Q1 Concrete, 57.3 , 6% 2022 Concrete, 52.0 , 5% Q1 2023 Electric, Electric, Electric, 136.6 , 16% 179.6 , 19% 206.5 , 22% Plastic, Plastic, 81.0 , 9% 94.7 , 10% Plastic, 94.5 , 10% Metal & Wood, Metal & Wood,
Slide 22: Segment Performance
Segment Performance SEGMENT PROFIT SEGMENT PROFIT SEGMENT PROFIT (5.5), -10% Concrete, Q1 2021 Head office, Head office, Q1 2022 Head office, (3.6), -8% Q1 2023 (0.8), -1% (14.0), -17% Concrete, Electric, (1.2), -4% Metal & Wood, 2.1 , 4% Concrete, 11.2 , 24% 2.2 , 3% Plastic, Electric, 11.5 , 21% 5.1 , 6
Slide 23: Annualized Return Realization
Annualized Return Realization ROA ROE 9.0% 8.0% 25.0% 22.3% 8.0% 6.3% 17.1% 7.0% 20.0% 16.0% 6.0% 4.7% 5.0% 15.0% 4.0% 10.0% 3.0% 2.0% 5.0% 1.0% 0.0% 0.0% Q1 2021 Q1 2022 Q1 2023 Q1 2021 Q1 2022 Q1 2023 ROCE EPS 2.98 14.2% 2.45 16.0% 3.00 13.8% 14.0% 2.50 12.0% 2.00 1.75 10.0% 8.4% 8.0% 1.50 6.0% 1.
Slide 24: Liquidity & Leverage
Liquidity & Leverage Current Ratio Leverage 2.0 1.35 1.31 1.79 1.8 1.46 1.55 1.29 1.6 1.30 1.4 1.25 1.2 1.0 1.19 1.20 0.8 0.6 1.15 0.4 0.2 1.10 - FY 2021 FY 2022 Q1 2023 FY 2021 FY 2022 Q1 2023 24 | INVESTOR PRESENTATION | Q1 2023| BAWAN
Slide 25: Debts & CapEx
Debts & CapEx Capital Expenditure Short term debt Long term debt Total debt Q1 2023 23,554 Q1 2023 401,456 Q1 2023 123,280 Q1 2023 524,736 Q1 2022 28,697 FY 2022 468,200 FY 2022 126,209 FY 2022 594,409 Q1 2021 10,525 FY 2021 552,682 FY 2021 145,816 FY 2021 698,498 25 | INVESTOR PRESENTATION | Q1 202
Slide 26: Proficiency Ratios
Proficiency Ratios Turnover Ratios Days Inventory Outstanding "DIO" Days Receivable Outstanding "DRO" 1.8 Q1 2023 77 Q1 2023 63 1.6 1.75 1.79 FY 2022 78 FY 2022 60 1.4 1.36 79 65 1.2 1.38 1.50 1.34 FY 2021 FY 2021 00 10 20 30 40 50 60 70 80 00 10 20 30 40 50 60 70 1.0 0.8 Days Payable Outstanding "DP
Slide 27: Appendix - I: Statement of Income
Appendix - I Statement of Income March 31, 2023 SR'000 March 31, 2022 SR'000 March 31, 2021 SR'000 Revenue 944,415 950,425 862,120 Cost of sales (844,310) (825,693) (759,660) Gross profit 100,105 124,732 102,460 Selling and distribution expenses (26,229) (23,023) (20,976) Administrative expenses (28,
Slide 28: Appendix - II: Balance Sheet
March 31, 2023 Dec 31, 2022 Dec 31, 2021 Appendix - II SR'000 SR'000 SR'000 Property, plant and equipment 724,745 719,943 709,840 Balance Sheet Right-of-use assets Goodwill and other intangible assets 23,501 7,308 24,545 7,848 18,485 4,397 Other non-current assets 2,381 2,487 8,635 Total non-current
Slide 29: Appendix - III: Summarized Cash Flows
Appendix - III Summarized Cash Flows March 31, 2023 March 31, 2022 March 31, 2021 SR'000 SR'000 SR'000 Cash Flow from Operations * 69,738 94,073 73,242 Investing cash flows (7,413) (27,569) 3,979 Financing cash flows (110,693) (4,997) (41,667) Cash and cash equivalents 75,846 57,077 90,819 * Before wo
Slide 30: Q&A
Q&A