Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — Q2/H1 2023 Earnings Presentation
27 slides from Rak Ceramics Pjsc's earnings presentation, August 2023
Slide 1: Earnings Presentation – Q2/H1 2023 Results
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS EARNINGS PRESENTATION – Q2/H1 2023 RESULTS AUGUST 2023 RAK Ceramics PJSC © 2023 All rights reserved
Slide 2: Agenda
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS Agenda 01 | Executive Summary 02 | Business Highlights 03 | Q2/H1 2023 Financial Results Update 04 | Trading Update 05 | Closing Remarks 06 | Appendix RAK Ceramics PJSC © 2023 All rights reserved 2
Slide 3: Speakers
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS Speakers Abdallah Massaad PK Chand Group Chief Executive Officer Group Chief Financial Officer Abdallah Massaad is Group CEO of RAK Ceramics and has more than 25 years Pramod Kumar Chand is Group CFO of RAK Ceramics. Mr. Chand has wide experience experience
Slide 4: Disclaimer
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS Disclaimer This information contained in the enclosed presentation summarizes preliminary Accordingly all potential recipients are expected to conduct their own due diligence and introductory information on RAK Ceramics PJSC (the Company). This on the infor
Slide 5: Executive Summary
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS EXECUTIVE SUMMARY Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2023 All rights reserved 5
Slide 6: Q2 2023 Highlights
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS Q2 2023 Highlights Q2 2023 in Brief • Amidst the backdrop of daunting challenges including volatile market conditions across all core markets (excluding UAE) fueled by higher interest rates and currency devaluation, our steadfast resilience enabled us to li
Slide 7: Business Highlights
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS BUSINESS HIGHLIGHTS Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2023 All rights reserved 7
Slide 8: Q2 2023 Key Market Updates
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS Q2 2023 Key Market Updates RAK Ceramics RAK India RAK Bangladesh In the UAE market, we encountered rising competition and pressure on average selling prices due to increasing imports receiving waivers on anti-dumping and In India, rising interest Our perfor
Slide 9: Q2 2023 Key Challenges
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS Q2 2023 Key Challenges Core Markets Key Challenges Our Actions With the increased relaxation in custom • Implement cost optimization measures to improve duties and anti dumping policies coupled profitability and cash flow UAE with reduced freight cost, we c
Slide 10: Q2 2023 Key Strategic Updates
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS Q2 2023 Key Strategic Updates Advancements on Expansionary Front Expansion & Upgradation Projects • UAE: Tableware capacity expansion by 10mn pcs is scheduled to complete in Q3 2023; commercial production is targeted in Q4 2023. • India: Plan approved to mo
Slide 11: Q2/H1 2023 Financial Results Update
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS Q2/H1 2023 FINANCIAL RESULTS UPDATE Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2023 All rights reserved 11
Slide 12: Q2 2023 Performance Snapshot
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS Q2 2023 Performance Snapshot Total revenue decreased by -5.9% at Total gross profit margin decreased Total EBITDA decreased by -5.5% YoY AED 872.0m primarily attributable to by -110bps YoY to 37.3% due to lower to AED 155.3m. Margin increased by continued m
Slide 13: H1 2023 Performance Snapshot
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS H1 2023 Performance Snapshot Total revenue increased by +2.6% YoY Total gross profit margin remained Total EBITDA increased to AED 312.4m to AED 1.75bn mainly due to additional stable YoY at 37.6% YoY..Excl. Kludi compared to 294.0m in last year. revenue of
Slide 14: Financial Highlights
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS Financial Highlights Quarterly comparison Yearly Comparison Q2 22 Q 1 23 Q2 23 H1 2022 H1 2023 YoY QoQ YoY Amount in AED M Amount Amount Amount Amount Amount Growth Growth Growth Revenue 927.0 882.4 872.0 -5.9% -1.2% 1,710.1 1,754.4 2.6% Gross margin (%) 38
Slide 15: Revenue Highlights Q2/H1 2023
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS Revenue Highlights Q2/H1 2023 MANAGEMENT COMMENTS TOTAL REVENUE (AEDM) While we encountered several challenges in the form of volatile market conditions across most core markets (excluding the UAE), higher Quarterly comparison Yearly comparison interest rat
Slide 16: Gross Profit Margin
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS Gross Profit Margin MANAGEMENT COMMENTS TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) Total gross profit margin decreased by -110bps YoY to 37.3% for Q2 2023 and remained stable at 37.6% YoY in H1 2023 driven by higher margins in Tiles & Tableware segment
Slide 17: Profitability Bridge
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS Profitability Bridge H1 2023 vs H1 2022 Profit Bridge (AEDM) -8.7% 24.3 1.9 27.3 73.6 26.2 10.7 21.3 171.9 170.0 155.2 H1 2022 Net one- Net Profit Lower GP Higher Lower Higher Swing from Others H1 2023 Net Profit off gain excl. net due to lower SG&A -Fixed
Slide 18: Balance Sheet Highlights
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS Balance Sheet Highlights MANAGEMENT COMMENTS WORKING CAPITAL (AEDM) WORKING CAPITAL CYCLE (LTM DAYS) Overall working capital cycle increased from 1,454 1,428 1,411 1,522 1,570 155 149 146 156 163 156 days in Q1 2023 to 163 days in Q2 2023. In 91 907 863 865
Slide 19: Share Price Update
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS SHARE PRICE UPDATE Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2023 All rights reserved 19
Slide 20: RAK Ceramics Share Price Movement
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS RAK Ceramics Share Price Movement CURRENT VALUATION (AED M) AED RAK CERAMICS (RAKCEC) SHARE PRICE PERFORMANCE (AED) WAP 2.79 03/08/2023 31/12/2022 52 week high 3.01 Amount Amount 52 week low 2.51 Share price 2.69 2.83 3.5 As of 3rd August 2023 Number of sha
Slide 21: Dividend Update
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS Dividend Update MANAGEMENT COMMENTS HISTORICAL ANNUAL DIVIDEND PAID (%) In-line with its dividend policy commitment, the Board proposed to distribute interim cash Cash Stock dividend of 10 fils per share for first half of 2023 (AED 99.4million). 30.0% 25.0%
Slide 22: Closing Remarks
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS CLOSING REMARKS Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2023 All rights reserved 22
Slide 23: 2023 Priorities
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS 2023 Priorities Protect Market Share Production Capabilities Growth Maintain healthy competition across all core markets and Rationalize footprint and increase capacity across all core segments albeit increased challenges businesses via plant additions, enh
Slide 24: Q&A
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS Q&A Abdallah Massaad PK Chand Group CEO Group CFO RAK Ceramics PJSC © 2023 All rights reserved 24
Slide 25: Appendix
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS APPENDIX RAK Ceramics PJSC © 2023 All rights reserved 25
Slide 26: EBITDA Working
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS EBITDA Working Q2 22 Q 1 23 Q2 23 H1 2022 H1 2023 Amount in AED M Amount Amount Amount Amount Amount Net profit/(loss) after tax 102.2 80.1 75.1 171.9 155.2 Tax 5.4 5.0 5.0 12.3 10.0 Interest- net 15.5 24.8 27.1 27.7 51.9 Depreciation & amortization 43.1 47
Slide 27: Thank You
EARNINGS PRESENTATION – Q2/H1 2023 RESULTS Thank You CONTACT US If you have any questions or require further information, please do not hesitate to contact our investor relations department. Investor Relations RAK Ceramics PJSC P.O. Box: 4714, Ras Al Khaimah, United Arab Emirates E. ir@rakceramics.c