Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — RAK Ceramics — Arqaam Capital Investor Conference 2025
40 slides from Rak Ceramics Pjsc's conference presentation, May 2025
Slide 1: Arqaam Capital Investor Conference May 2025
ARQAAM CAPITAL INVESTOR CONFERENCE MAY 2025
Slide 2: Contents
Contents 1 Company Overview 2 Segmental Overview 3 Business Update 4 Sustainability Overview 5 Financial Highlights 6 Stock Profile
Slide 3: Company Overview
COMPANY OVERVIEW
Slide 4: RAK Ceramics at a glance
INVESTOR PRESENTATION – Q1 2025 RAK Ceramics at a glance Leading lifestyle brand offering premium home, bath & kitchen solutions Shareholding Structure +30 YEARS ~ 12,000 24.0% Ceramic expertise Global workforce 36.3% 6.4% 12.0% 13.9% 7.6% ~US$ 700MN ~US$ 1BN H.H. Sheikh Saud Bin Saqr Al Qasimi RAK
Slide 5: Eras of RAK Ceramics
INVESTOR PRESENTATION – Q1 2025 Eras of RAK Ceramics 1990-2000 | FOUNDATION 1989 1991 1993 2000 Founded by H.H. Sheikh First tile plant First sanitaryware plant Tile plant set-up in Saud Bin Saqr Al Qasimi, operational with annual operational with annual Bangladesh with annual Ruler of Ras Al Khaima
Slide 6: Manufacturing Process
INVESTOR PRESENTATION – Q1 2025 Manufacturing Process 118MN 5MN 36MN 2.6MN Square metres of tiles Pieces of sanitaryware Pieces of tableware Pieces of faucets and taps GERMANY GLOBAL PRODUCTION LAYOUT AUSTRIA 24 plants worldwide IRAN HUNGARY INDIA BANGLADESH UAE 15 Tiles Plant 4 Sanitaryware Plant U
Slide 7: Our Philosophy
INVESTOR PRESENTATION – Q1 2025 Our Philosophy To become the world’s leading lifestyle solution provider for home, bath & kitchen solutions LIFESTYLE BRAND INNOVATION HIGH-END QUALITY SUSTAINABILITY We are globally recognized Innovation is at the heart of We are known for our wide We operate in harm
Slide 8: Segmental Overview
SEGMENTAL OVERVIEW
Slide 9: Product offering
INVESTOR PRESENTATION – Q1 2025 Product offering TILES SANITARYWARE We offer one of the largest Complete solutions provider collection of Ceramic and Gres offering products designed Porcelain wall and floor tiles, to suit all budgets and tastes super-sized slabs in the with accessories and industry.
Slide 10: Tiles
INVESTOR PRESENTATION – Q1 2025 Tiles RAK Ceramics offers one of the largest collections of high quality Ceramic and Gres TILES Porcelain Wall and Floor Tiles and Super-Sized Slabs in the industry. 5,000 SANITARYWARE 10x10 The current number 135x305 Our Smallest tile. of production Our largest tile.
Slide 11: Sanitaryware
INVESTOR PRESENTATION – Q1 2025 Sanitaryware RAK Ceramics is internationally recognized for the high quality of its sanitaryware. This TILES quality comes from carefully selected premium raw materials that ensure a perfect finish of the products. SANITARYWARE 15,616 100 DAYS 100% Sanitaryware pieces
Slide 12: Tableware
INVESTOR PRESENTATION – Q1 2025 Tableware Ceramic tableware Industry added a new chapter with launch of RAK Porcelain LLC in TILES United Arab Emirates. This company quickly went on to become the World’s leading supplier of professional grade Porcelain tableware in HORECA Industry SANITARYWARE 2005
Slide 13: Faucets
INVESTOR PRESENTATION – Q1 2025 Faucets Kludi GmbH & Co. KG – founded in 1926 in the Sauerland region of Germany – TILES manufacturing high-quality faucets & fittings for bathrooms and kitchens 100 Top 100 Years of 170 100 Innovators SANITARYWARE Inventions Patents In German Experience SME sector TA
Slide 14: Business Update
BUSINESS UPDATE
Slide 15: Business Highlight – Q1 2025
INVESTOR PRESENTATION – Q1 2025 Business Highlight – Q1 2025 UAE: Registered a strong 4.5% KSA: Revenue grew by 4.5% YoY revenue growth, driven by Tiles revenue recorded growth in both volumes (+5.7%) and value (+1.2%) YoY driven by strong growth continued boom in real estate at AED 449 million, l
Slide 16: Marketing updates
INVESTOR PRESENTATION – Q1 2025 Marketing updates Presence and Footprint Launch of the new rakceramics.com Strong relations with the 13 New Showrooms opened in 2024 website. Website metrics: 8% increase majority of the specialized adding to total of 45 showrooms in total users, 52% increase in organ
Slide 17: Key Challenges – Q1 2025
INVESTOR PRESENTATION – Q1 2025 Key Challenges – Q1 2025 Core Markets Key Challenges Our Actions Import of cheaper products has increased on account of free • Partnership with reputed developers in the UAE to provide UAE trade agreements signed between UAE and other countries Tiles and Sanitaryware
Slide 18: Key Strategic Updates -2025
INVESTOR PRESENTATION – Q1 2025 Key Strategic Updates -2025 • Our Tiles Division is undergoing an upgrade with cutting- • We are working to introduce new products from edge technology to manufacture differentiated, large-format Morbi plant, across all RAK Premium showrooms UAE tiles catering to high
Slide 19: 2025 Priorities
INVESTOR PRESENTATION – Q1 2025 2025 Priorities Market share growth KLUDI Transformation Retail Expansion & Business, Operations & and preservation Brand awareness Risk management Maintain healthy Transform KLUDI into a global Focus on strengthening retail Optimize operations competition across high
Slide 20: Sustainability Overview
SUSTAINABILITY OVERVIEW
Slide 21: Sustainability updates - 2024
INVESTOR PRESENTATION – Q1 2025 Sustainability updates - 2024 Introducing Energy Recycling Upgrading Design Enhancing Introducing efficient Kilns Rejected Tiles Scanning Solutions glazing system E-bikes Recycling Design Digital glazing 70 e-bikes equipment, development system that fully across UAE e
Slide 22: Sustainability Highlights - 2024
INVESTOR PRESENTATION – Q1 2025 Sustainability Highlights - 2024 1.86% Reduction in energy intensity of tiles 10.06% Savings in overall energy consumption 47,753 m³ Freshwater savings in production compared to 2023 (per in Tableware production compared to Tableware production during 2024 GJ/m2) 2023
Slide 23: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 24: Financial Snapshot – Q1 2025
INVESTOR PRESENTATION – Q1 2025 Financial Snapshot – Q1 2025 PROFIT BEFORE TAX NET PROFIT AFTER TAX REVENUE GROSS MARGIN AED 776.5M 39.7% AED64.5M AED 48.9M 0.7% YoY 33 bps YoY 12.7% YoY* 22.3% YoY* * Profitability was impacted mainly due to Kludi 0.7% YoY on Group’s ongoing transformation initiativ
Slide 25: Financial Snapshot - FY2024
INVESTOR PRESENTATION – Q1 2025 Financial Snapshot - FY2024 PROFIT BEFORE TAX LIKE FOR LIKE PROFIT REVENUE GROSS MARGIN BEFORE TAX AED 3.23 BN 39.3% AED 299.9M AED276.6M 19.9% YoY 6.5% YoY 143 bps YoY 5.4% YoY* * Adjusted for one-off income/impairments NET DEBT NET PROFIT AFTER TAX NET PROFIT After
Slide 26: Profitability Bridge
INVESTOR PRESENTATION – Q1 2025 Profitability Bridge Q1 2025 vs Q1 2024 Profit Bridge (AEDM) -12.7% 2.6 (2.0) 6.2 4.2 (5.6) (4.2) 73.9 (10.6) 64.5 (13.1) (2.5) 48.9 Profit before Lower Gross Higher GP Higher variable Higher SG&A - Lower Finance Higher Other Others Profit before UAE Corporate Rest of
Slide 27: Revenue Highlights – Q1 2025
INVESTOR PRESENTATION – Q1 2025 Revenue Highlights – Q1 2025 MANAGEMENT COMMENTS TOTAL REVENUE (AED MN) • Q1 2025 revenue at AED 776.5m, down by +150 0.7% YoY, witnessed strong USD against other currencies. Countries Exported • Tiles revenue grew by 1.2% at AED 449 Tiles TW Others million, led by ro
Slide 28: Revenue Contribution - FY2024
INVESTOR PRESENTATION – Q1 2025 Revenue Contribution - FY2024 REVENUE CONTRIBUTION BY TILES & SANITARYWARE REVENUE TOTAL REVENUE CONTRIBUTION BY SEGMENT 2024% CONTRIBUTION BY REGION 2024% REGION 2024 % 14.0% 3.0% 7.2% 9.0% 6.6%2.6% 6.7% 11.0% 14.6% 36.2% 36.2% 21.7% 57.0% 15.0% 15.7% 11.6% 5.2% 12.1
Slide 29: Gross Profit Margin Trend – Q1 2025
INVESTOR PRESENTATION – Q1 2025 Gross Profit Margin Trend – Q1 2025 TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) 37.9% 39.3% 39.3% 39.7% 37.9% 40.8% 39.4% 41.0% 33.2% 36.2% 36.1% 36.6% 35.1% 32.0% 31.4% 29.6% 2019 2020 2021 2022 2023 2024 Q1 2024 Q1 2025 2019 2020 2021 2022 2023 2024 Q1 2024 Q1 2
Slide 30: UAE Operations- Q1 2025
UAE Operations- Q1 2025 INVESTOR PRESENTATION – Q1 2025 MANAGEMENT COMMENTS TOTAL REVENUE (AED BN) GROSS PROFIT MARGIN (%) • In Q1 2025 revenue increased by 2.7% to AED 427.3m driven by growth in UAE, KSA & Middle East market • Gross margin has consistently improved over the years which is driven in
Slide 31: Bangladesh Operations – Q1 2025
Bangladesh Operations – Q1 2025 INVESTOR PRESENTATION – Q1 2025 MANAGEMENT COMMENTS REVENUE (AED MN) GROSS PROFIT MARGIN (%) • In Q1 2025 revenue decreased by 25.7% YoY to AED 44m due to political instability, gas shortages, and currency devaluation have severely impacted our operations. These facto
Slide 32: Indian Operations – Q1 2025
INVESTOR PRESENTATION – Q1 2025 Indian Operations – Q1 2025 MANAGEMENT COMMENTS REVENUE (AED MN) GROSS PROFIT MARGIN (%) • Revenue increased by 2.8% YoY in LCY in Q1 2025, supported by strong infrastructure development, reduced interest rates and growing disposable income. India’s growth momentum hi
Slide 33: Tableware performance trend – Q1 2025
INVESTOR PRESENTATION – Q1 2025 Tableware performance trend – Q1 2025 MANAGEMENT COMMENTS REVENUE (AED MN) GROSS PROFIT MARGIN (%) • Tableware revenue declined by 4.5% YoY to AED 85.9 million, impacted by weaker Euro and imposition of import tariffs & trade restrictions by US resulted decline in sal
Slide 34: Kludi Group performance trend – Q1 2025
INVESTOR PRESENTATION – Q1 2025 Kludi Group performance trend – Q1 2025 MANAGEMENT COMMENTS REVENUE (AED MN) GROSS PROFIT MARGIN (%) • Faucets revenue declined by 4.4% YoY, reaching AED 111.7 million, due to a weaker Euro, recessionary fears in Europe, and a struggling real estate sector in China. W
Slide 35: Balance Sheet Evolution – Q1 2025
INVESTOR PRESENTATION – Q1 2025 Balance Sheet Evolution – Q1 2025 MANAGEMENT COMMENTS WORKING CAPITAL CYCLE (DAYS) RETURN ON EQUITY (%) • LTM Return on Equity in Q1 2025 is at 241 226 181 181 9.5%%. 176 172 119 123 145 86 94 87 90 • Overall working capital remained stable at 84 AED 1.43 billion in Q
Slide 36: EBITDA Working
INVESTOR PRESENTATION – Q1 2025 EBITDA Working Quarterly comparison Q1 24 Q4 24 Q1 25 Amount in AED M Amount Amount Amount Net profit/(loss) after tax 62.9 64.2 48.9 Tax 11.0 17.8 15.7 Interest- net 27.1 26.1 23.0 Depreciation & amortization 50.6 54.2 51.9 (Gain) on sale of assets/CWIP write-off (0.
Slide 37: Stock Profile
STOCK PROFILE
Slide 38: RAK Ceramics Share Price Movement
INVESTOR PRESENTATION – Q1 2025 RAK Ceramics Share Price Movement RAK Ceramics (RAKCEC) Share Price Performance (AED- LTM) AED RAK CERAMICS (RAKCEC) SHARE PRICE PERFORMANCE (AED) WAP 2.47 3.3 52 week high 2.62 3.1 52 week low 2.24 2.8 2.51 As of 13th May 2025 2.6 2.3 2.1 1.8 14-05-2024 11-06-2024 11
Slide 39: Dividend Update
INVESTOR PRESENTATION – Q1 2025 Dividend Update MANAGEMENT COMMENTS Historical annual Dividend paid (%) • In-line with its dividend policy commitment, the General assembly has approved to distribute semi-annual cash dividend of 10 fils per share for second half of 2024 (AED 99.4million) and paid 5 i
Slide 40: Thank You
Thank You CONTACT US If you have any questions or require further information, please visit corporate.rakceramics.com or contact investor relations team at ir@rakceramics.com
RAK Ceramics — Arqaam Capital Investor Conference 2025 on 6ix