Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — Q3 2018 Earnings Presentation
17 slides from Rak Ceramics Pjsc's earnings presentation, November 2018
Slide 1: Q3 2018 Earnings Presentation
Q3 2018 EARNINGS PRESENTATION EARNINGS PRESENTATION Q3 2018 RESULTS NOVEMBER 2018 RAK Ceramics PJSC © 2018. All rights reserved
Slide 2: Attendees
Q3 2018 EARNINGS PRESENTATION Attendees 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 experience Pramod Kumar Chand is the Group Chief Financial Officer of RAK Ceramics. Mr. Chand has in
Slide 3: Disclaimer
Q3 2018 EARNINGS PRESENTATION Disclaimer This information contained in the enclosed presentation summarises preliminary and and past performance is not indicative of future results. The Company undertakes no introductory information on RAK Ceramics PJSC (the Company). This presentation obligation to
Slide 4: Key business highlights
Q3 2018 EARNINGS PRESENTATION Key business highlights Core business growth India turnaround Saudi Arabia integration Core business remained stable Production trials began in Morbi Integration of acquired Saudi supported by strong sales in UAE expansion in October 18. Arabian JV’s continuing with a a
Slide 5: Q3 2018 Key financial highlights
Q3 2018 EARNINGS PRESENTATION Q3 2018 Key financial highlights Core revenue decreased by Core gross profit margin SG&A and finance cost (net) -0.6% to AED639.6m YoY. increased by +50bps YoY to increased by +27.7% to AED188.2m Total revenue decreased by 33.2%. YoY. SG&A due to consolidation of -5.1%
Slide 6: 9M 2018 Key financial highlights
Q3 2018 EARNINGS PRESENTATION 9M 2018 Key financial highlights Core revenue increased by +1.0% Core gross profit margin Core EBITDA decreased by to AED1.95bn YoY. increased by +30bps to 33.3% -14.2% YoY to AED304.2m, with a Total revenue decreased by YoY. margin decrease of -280bps YoY -2.7% to AED2
Slide 7: Revenue highlights
Q3 2018 EARNINGS PRESENTATION Revenue highlights MANAGEMENT COMMENTS TOTAL REVENUE (AED M) CORE REVENUE (AED M) Total revenue in Q3 2018 2,200 2,050.62,107.4 2100 1,944.81,925.3 decreased by -5.1% YoY. 1,650 1575 Core revenue decreased by -0.6% 1,100 1050 YoY and -5.7% QoQ due to EID and 669.5 719.2
Slide 8: Tiles revenue by end market
Q3 2018 EARNINGS PRESENTATION Tiles revenue by end market QUARTERLY COMPARISON YEARLY COMPARISON Q3 18 Q2 18 Q3 17 9M 18 9M 17 Amount Amount Growth Amount Growth Amount Amount Growth United Arab Emirates 143.1 155.9 -8.2% 134.0 6.8% 456.0 414.2 10.1% Kingdom of Saudi Arabia* 56.7 71.1 -20.3% 60.8 -6
Slide 9: Sanitaryware revenue by end market
Q3 2018 EARNINGS PRESENTATION Sanitaryware revenue by end market QUARTERLY COMPARISON YEARLY COMPARISON Q3 18 Q2 18 Q3 17 9M 18 9M 17 Amount Amount Growth Amount Growth Amount Amount Growth United Arab Emirates 42.0 36.1 16.3% 38.6 8.8% 120.2 115.8 3.8% Kingdom of Saudi Arabia* 2.8 4.6 -39.1% 4.3 -3
Slide 10: Revenue contribution
Q3 2018 EARNINGS PRESENTATION Revenue contribution MANAGEMENT COMMENTS CORE AND NON-CORE REVENUE (%) Non-core revenue contribution 4.5% 5.2% 8.4% 5.7% 8.7% 8.7% reached an all time low of 4.5% 12.9% 18.6% 14.7% 16.0% 13.0% in Q3 2018 driven by our strategic focus on divesting non-core operations. In
Slide 11: Gross profit margins
Q3 2018 EARNINGS PRESENTATION Gross profit margins MANAGEMENT COMMENTS CORE GROSS MARGINS (%) TILES GROSS MARGINS (%) Total gross margin increased 37.0 34.7 32 30.3 28.0 28.4 28.4 28.6 by +190bps YoY. 33.2 32.7 33.3 33.0 31.3 33.3 34.4 31.5 33.2 32.1 21 Core margin increased by +50bps YoY to 33.2% d
Slide 12: Financial highlights
Q3 2018 EARNINGS PRESENTATION Financial highlights FINANCIAL HIGHLIGHTS (AED M) Quarterly Comparison Yearly Comparison Yearly Comparison Q3 18 Q2 18 Q3 17 9M 18 9M 17 Amount Amount Growth Amount Growth Amount Amount Growth Revenue 669.5 719.2 -6.9% 705.2 -5.1% 2,050.6 2,107.4 -2.7% Core revenue 639.
Slide 13: Core net profit and shareholder return
Q3 2018 EARNINGS PRESENTATION Core net profit and shareholder return MANAGEMENT COMMENTS CORE NET PROFIT (AED MN) Core net profit decreased by 70.2 67.9 73.1 -14.6% QoQ with a margin 50.7 48.2 27.3 42.1 41.7 39.5 44.4 41.7 47.8 40.8 decrease by -70bps due to 1.9 decrease in revenue and higher energy
Slide 14: Operating cycle
Q3 2018 EARNINGS PRESENTATION Operating cycle MANAGEMENT COMMENTS OPERATING CYCLE (LTM DAYS) Inventory days increased from 249 days to 256 days QoQ. 400 297 289 Finished goods inventory 281 286 increased by 7 days from 157 300 to 164 days QoQ due to lower revenue. 256 249 239 227 200 100 116 118 115
Slide 15: 2018 Priorities
Q3 2018 EARNINGS PRESENTATION 2018 Priorities Maintain/increase market share and profitability of UAE, India, Europe profitability Continue product portfolio Bangladesh, Porcelain improvement optimisation and Kludi-RAK Continue focus on branding roll India turnaround and hub for Optimised production
Slide 16: Contacts
Q3 2018 EARNINGS PRESENTATION Contacts INVESTOR RELATIONS If you have any questions or require further information, please do not hesitate to contact our investor relations department. Investor Relations RAK Ceramics Al Jazeera Al Hamra PO Box 4714 Ras Al Khaimah United Arab Emirates T: +971 7 246 7
Slide 17: Q3 2018 EARNINGS PRESENTATION RAK Ceramics PJSC © 2018. All rights reserved
Q3 2018 EARNINGS PRESENTATION RAK Ceramics PJSC © 2018. All rights reserved 17