Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — Q3 2017 Earnings Presentation
15 slides from Rak Ceramics Pjsc's earnings presentation, November 2017
Slide 1: Investor Presentation Q3 2017 Results
INVESTOR PRESENTATION Q3 2017 RESULTS NOVEMBER 2017
Slide 2: Attendees
INVESTOR PRESENTATION Q3 FINANCIAL RESULTS Attendees Abdallah Massaad PK Chand Raaqib Mutvalli Group Chief Executive Officer Group Chief Financial Officer Head of Performance Management Office Abdallah Massaad is Group CEO of RAK Ceramics. and has Pramod Kumar Chand is the Group Chief Financial Offi
Slide 3: Disclaimer
INVESTOR PRESENTATION Q3 FINANCIAL RESULTS 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
Slide 4: Key business update
INVESTOR PRESENTATION Q3 FINANCIAL RESULTS Key business update REGIONAL MARKETS PRODUCTION EFFICIENCIES BANGLADESH & INDIA • UAE market continued its strong growth • Continued production efficiency • Revenue growth in Bangladesh and India led by robust project and wholesale sales improvements across
Slide 5: Key financial highlights
INVESTOR PRESENTATION Q3 FINANCIAL RESULTS Key financial highlights Core revenues increased by Total revenues increased by Core gross profit margin of +14.1% compared to Q3 2016 +9.2% compared to Q3 2016. 32.7%, an increase of +300bps driven by strong growth in the Non-core revenues decreased by com
Slide 6: Revenue highlights
INVESTOR PRESENTATION Q3 FINANCIAL RESULTS Revenue highlights MANAGEMENT COMMENTS TOTAL REVENUES (AED M) CORE REVENUES (AED M) Total revenue in Q3 17 800 700 661.1 705.2 721.1 643.6 increased by 9.2% compared 645.7 56.4 61.4 600 600 564.3 to last year as a result of strong 120.7 123.1 40.6 growth in
Slide 7: Revenues by end market
INVESTOR PRESENTATION Q3 FINANCIAL RESULTS Revenues by end market TILE REVENUES BY END MARKET SANITARYWARE REVENUES BY END MARKET Quarterly Comparison Yearly Comparison Quarterly Comparison Yearly Comparison Q3 17 Q2 17 Q3 16 Q3 17 Q2 17 Q3 16 Amount Amount Growth Amount Growth Amount Amount Growth
Slide 8: Revenue contribution
INVESTOR PRESENTATION Q3 FINANCIAL RESULTS Revenue contribution MANAGEMENT COMMENTS CORE AND NON-CORE REVENUE (%) Non-core revenue 8.8% contribution at an all time low 12.9% 14.7% 16.0% 13.0% 12.6% 18.6% of 8.8% driven by our strategic focus on divesting non-core operations. 9M 2017 SEGMENT CONTRIBU
Slide 9: Gross profit margins
INVESTOR PRESENTATION Q3 FINANCIAL RESULTS Gross profit margins MANAGEMENT COMMENTS CORE GROSS MARGINS (%) TILES GROSS MARGINS (%) Continued to show positive 35 34.2 30 28.4 30.1 32.7 25.8 momentum in core gross 33.3 29.6 margin improvements; up by 30 31.5 20 +300bps compared to last 29.5 25 year at
Slide 10: Financial highlights
INVESTOR PRESENTATION Q3 FINANCIAL RESULTS Financial highlights FINANCIAL HIGHLIGHTS (AED M) Quarterly Comparison Yearly Comparison Q3 17 Q2 17 Q3 16 Amount Amount Growth Amount Growth Revenue 705.2 721.1 -2.2% 645.7 9.2% Core Revenue 643.6 661.1 -2.7% 564.3 14.1% Gross margin (%) 31.5% 33.3% -1.8%
Slide 11: Core net profit and shareholder return
INVESTOR PRESENTATION Q3 FINANCIAL RESULTS Core net profit and shareholder return MANAGEMENT COMMENTS CORE NET PROFIT (AED MN) Enhanced shareholder returns 80.0 65.8 70.2 67.9 73.1 driven by a rebound in the 52.2 39.3 50.7 48.2 42.1 41.7 39.5 27.3 core business, coupled with 1.9 exits from non-core
Slide 12: Operating cycle
INVESTOR PRESENTATION Q3 FINANCIAL RESULTS Operating cycle MANAGEMENT COMMENTS OPERATING CYCLE (DAYS) Operating cycle has slightly reduced 400 The United Arab Emirates tiles 273 283 272 262 inventory decreased by 2.2mn sqm 300 during the first 9 months of 2017. 217 223 215 214 200 100 122 122 113 11
Slide 13: Focus areas and initiatives update
INVESTOR PRESENTATION Q3 FINANCIAL RESULTS Focus areas and initiatives update UNITED ARAB EMIRATES INDIA IRAN • Continue to grow market share, focus on • Acquisition of one JV completed • Second line of production has started project channel penetration and enhance • Evaluating the expansion of rece
Slide 14: Contacts
INVESTOR PRESENTATION Q3 FINANCIAL RESULTS Contacts INVESTOR RELATIONS If you have any questions or require further information, please do not hesitate in contacting our investor relations department. Investor Relations RAK Ceramics Al Jazeera Al Hamra PO Box 4714 Ras Al Khaimah United Arab Emirates
Slide 15: Ceramics
CERAMICS