Bawan Co. · TADAWUL:1302
Bawan — Q1 2021 Earnings Presentation
27 slides from Bawan's earnings presentation, 2021
Slide 1: Earnings Presentation Q1 2021
EARNINGS PRESENTATION Q1 2021 | EARNINGS REPORT | Q1 2021 | BAWAN
Slide 2: 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 3: COVID 19 Update
COVID 19 UPDATE • As the COVID19- situation is still fluid and evolving, currently it is difficult to measure the complete extent and duration of the economic impact. Possible effects of the outbreak of COVID-19 may include, but are not limited to, disruption to the Group’s operations, its revenue a
Slide 4: Who We Are
Who We Are We operate in 5 sectors: | EARNINGS REPORT | Q1 2021 | BAWAN
Slide 5: Group Structure
Group Structure | EARNINGS REPORT | Q1 2021 | BAWAN
Slide 6: Our Factory Locations
Our Factory Locations | EARNINGS REPORT | Q1 2021 | BAWAN
Slide 7: Our Major Clients Expect High Standards
Our Major Clients Expect High Standards | EARNINGS REPORT | Q1 2021 | BAWAN
Slide 8: Key Highlights
Key Highlights • On February 11,2020, one of the plastic sector factories caught fire which resulted in damage to assets having a net book value of SR 17.69 million. • The plastic sector has insurance coverage of SR 42.36 million against a loss caused by such an incident and to compensate for losses
Slide 9: Vision Mission
VISION MISSION Bawan strives to become the leading group in the Kingdom of To enhance Bawan’s customers loyalty by providing market-leading and Saudi Arabia and the Middle East in the building materials sector. innovative products and services, through its existing sectors and new sectors in the fut
Slide 10: Business Case
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 | EARNINGS RE
Slide 11: Strategy
Strategy A well defined strategy enhanced by our core value Strengthen relationship Continue to improve Invest in New Products Expand Product Capacity Enhance Existing Product Pursue Selective Acquisitions with existing customers operations | EARNINGS REPORT | Q1 2021 | BAWAN
Slide 12: Financial Perspective
Financial Perspective HELLO | EARNINGS REPORT | Q1 2021 | BAWAN
Slide 13: Operation Evolution
Operation Evolution Revenue Gross profit 1,000 120.0 900 862 102.5 100.0 800 700 644 80.2 80.0 597 71.2 600 500 60.0 400 40.0 300 200 20.0 100 - - March 31, 2019 March 31, 2020 March 31, 2021 March 31, 2019 March 31, 2020 March 31, 2021 Net Income EBITDA 45.0 41.7 80.0 40.0 70.0 67.9 35.0 60.0 30.0
Slide 14: Margins Evolution
Margins Evolution Gross Profit Margin EBITDA Margin 12.5% 12.5% 8.0% 7.9% 7.8% 7.6% 7.6% 7.4% 7.2% 12.0% 11.9% 11.9% 7.0% 6.9% 6.8% 6.6% 6.4% 11.5% 6.2% March 31, 2019 March 31, 2020 March 31, 2021 March 31, 2019 March 31, 2020 March 31, 2021 Net Income Margin EPS 6.0% 0.80 0.69 4.8% 0.70 5.0% 0.60
Slide 15: Returns
Returns Return on Equity Return on Assets Return on Capital Employed 14.0% 4.5% 9.0% 13.0% 4.0% 8.0% 4.0% 8.0% 12.0% 3.5% 7.0% 10.0% 3.0% 6.0% 8.0% 2.5% 5.0% 6.0% 2.0% 4.0% 3.2% 4.3% 1.5% 3.0% 4.0% 1.2% 1.0% 2.0% 2.0% 0.5% 1.0% 0.0% 0.0% 0.0% FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020 Returns h
Slide 16: Liquidity
Liquidity Current Ratio Debt Service Coverage Ratio Operating Cash Flows 1.25 0.25 80.0 0.23 73.2 1.24 1.24 70.0 0.20 0.19 55.0 1.23 1.22 60.0 1.22 50.0 45.5 0.15 1.21 40.0 1.20 0.10 0.09 30.0 1.19 1.19 20.0 1.18 0.05 1.17 10.0 1.16 - - Mar-20 Dec-20 Mar-21 Mar-20 Dec-20 Mar-21 March 31, 2019 March
Slide 17: Liabilities
Liabilities March 2020 December 2020 March 2021 269.6 256.5 299.4 407.0 390.4 434.6 930.9 775.1 735.1 Accounts payable Loans Other Accounts payable Loans Other Accounts payable Loans Other Numbers are in Saudi Riyal Million | EARNINGS REPORT | Q1 2021 | BAWAN
Slide 18: Group Operating Segments
Group Operating Segments Segment Revenue Segment Profit 700.0 40.0 35.2 601.7 35.0 600.0 29.8 30.0 500.0 25.0 450.9 404.7 20.0 400.0 16.7 15.0 11.5 300.0 10.0 7.4 5.7 5.0 1.8 2.1 200.0 136.6 - March 31, 2019 March 31, 2020 March 31, 2021 100.0 75.7 66.1 73.0 71.6 81.0 (5.0) (2.9) (0.8) 50.3 47.5 42.
Slide 19: Leverage Level
Leverage Level Total Debts to Total Assets Debts to Equity 2,500.0 2,316.3 70% 1,000.0 930.9 2,228.3 2,280.1 69% 69% 900.0 775.1 755.4 2,000.0 800.0 708.8 735.1 760.1 68% 700.0 1,607.5 67% 1,422.0 1,469.1 1,500.0 600.0 66% 500.0 65% 400.0 1,000.0 64% 64% 300.0 64% 500.0 63% 200.0 100.0 62% - - 61% M
Slide 20: Efficiency Ratios & Profit Evaluation
Efficiency Ratios & Profit Evaluation Net debt / EBITDA CFO/EBITDA 20 19 1.3 18 18 1.2 1.2 16 14 1.2 12 1.1 1.1 10 9 8 1.1 1.0 6 1.0 4 1.0 2 0 0.9 March 31, March 31, March 31, March 31, March 31, March 31, 2019 2020 2021 2019 2020 2021 Efficiency Ratios (in Days) Net Income * 450 427 45.0 41.7 400
Slide 21: Dividends
Dividends | EARNINGS REPORT | Q1 2021 | BAWAN
Slide 22: Historical Dividends
Historical Dividends Total amount Net income (SAR Payout Ratio Year distributed Million) (SAR Million) 2014 176.5 100.0 63.0% 2015 88.1 65.0 82.0% 2016 119.1 69.0 64.4% 2017 71.0 48.0 75% 2020 90.2 60.0 74.0% No profits were distributed for the year 2018 and 2019, as the company had losses of SR 218
Slide 23: Appendix
Appendix | EARNINGS REPORT | Q1 2021 | BAWAN
Slide 24: Statement of Income
Statement of Income March 31, March 31, March 31, 2019 2020 2021 SR'000 SR'000 SR'000 Revenue 596,811 644,143 862,120 Cost of sales (525,629) (563,903) (759,660) Provisions against inventories - - Gross profit 71,182 80,240 102,460 Selling and distribution expenses (20,176) (19,539) (20,976) Adminis
Slide 25: Balance Sheet
Balance Sheet March 31, December 31, March 31, 2020 2020 2021 SR'000 SR'000 SR'000 Property, plant and equipment 802,165 730,759 723,972 Right-of-use assets 21,454 19,967 19,649 Goodwill and other intangible assets 15,111 12,798 12,133 Other non-current assets 3,848 3,340 3,234 Total non-current ass
Slide 26: Summarized Cash Flows
Summarized Cash Flows March 31, March 31, March 31, 2019 2020 2021 SR'000 SR'000 SR'000 Cash Flow from Operations 45,529 55,015 73,242 Investing cash flows (9,103) (7,931) 3,979 Financing cash flows (48,567) (38,558) (41,667) Cash and cash equivalents 71,746 90,894 90,819 | EARNINGS REPORT | Q1 2021
Slide 27: Q&A
Q&A OPENER | EARNINGS REPORT | Q1 2021 | BAWAN