RAK Ceramics (Baneladesh) Limited · DSEBD:RAKCERAMIC
RAK Ceramics (Baneladesh) — RAK Ceramics — EFG-Hermes One-On-One Conference, Dubai, March 2015
27 slides from RAK Ceramics (Baneladesh)'s conference presentation, March 2015
Slide 1: EFG-Hermes One-On-One Conference
EFG-Hermes One-On-One Conference Dubai March 2015 Company Confidential
Slide 2: Important Notice
Important Notice This information contained in the enclosed presentation summarizes preliminary and introductory information on RAK Ceramics PSC (the Company). This presentation has been prepared for information purposes only and is not and does not form part of or constitute any prospectus, offerin
Slide 3: Table of Contents
Table of Contents Our Business Our Financial Performance Our Industry Our Strategy Company Confidential 3
Slide 4: Our Business
OUR BUSINESS Company Confidential 4
Slide 5: RAK Ceramics Company Snapshot
RAK Ceramics Company Snapshot Global Leadership in Ceramics Tiles - c.117 million standard square meters Sanitary ware - 4.2 million standard pieces Porcelain tableware - 24 million standard pieces Taps and faucets - 0.6 million pieces Over a billion square meters of tiles sold by 2013 (50
Slide 6: Global Production & Distribution Footprint
Global Production & Distribution Footprint Tiles Sanitary Ware [million square meters] [million pieces] UAE 81.9 UAE 2.7 Taps/ Faucets Table ware Bangladesh 8.0 Bangladesh 1.2 [million pieces] [million pieces] India 8.0 India 0.4 UAE 0.6 UAE 24 China 5.4 Sudan * 7.9 * Note: On 25th Dec 2014 RAK Cera
Slide 7: Growth in Production Capacities
Growth in Production Capacities 1993 2004 + 38.0 million 1st UAE sanitary ware plant 1st overseas sanitary ware sqm (0.3 million pieces) plant (Bangladesh -0.3 mn pcs) + 2.5 million + 1.1 million pieces pieces + 0.3 million pieces 1991 1993 2000 2004 2006 2008 2010 2012 2013 2014 Technology, product
Slide 8: Industry Leading Product Portfolio
Industry Leading Product Portfolio Core Portfolio Tiles • Industry’s largest range of Ceramic and Porcelain tiles across product typologies • Product capabilities of over 8,000 designs in different sizes and finishes to meet external, internal, wall and floor applications for residential, commercial
Slide 9: Our Financial Performance
OUR FINANCIAL PERFORMANCE Company Confidential 9
Slide 10: Strong and Stable Revenues and Profits
Strong and Stable Revenues and Profits Total Revenue: Core & Non-Core (AED mn) Total Core Revenue: Tiles and SWD (AED mn) 3,336 3,514 3,168 2,860 2,780 2,758 655 556 410 2,660 360 383 411 2,484 2,127 2,118 532 366 304 337 2,781 2,758 2,860 2,450 2,421 2,375 2,128 2,118 1,824 1,781 2011 2012 2013 YTD
Slide 11: Revenues Driven by Core Ceramic Business
Revenues Driven by Core Ceramic Business Tiles Revenue by Production Location (AED mn) Tiles Revenues by End Market (AED mn) Others YTD Sep YTD Sep 19% 2011 2012 2013 UAE 2013 2014 19% UAE 1,639.5 1,601.3 1,646.7 1,246.9 1,186.0 GCC 6% Bangladesh 152.2 133.7 136.1 103.3 109.8 India Bangladesh 17% 6%
Slide 12: Margin Improvements Driven by Core Operations
Margin Improvements Driven by Core Operations Gross Margins EBITDA Calculation (AED mn) YTD Sep YTD Sep YTD Sep 2011 2012 2013 2011 2012 2013 2014 2013 2014 Net Profit Before Tax 224.7 246.1 291.6 235.5 225.6 Consolidated 23.5% 27.0% 27.4% 27.3% Depreciation and 242.4 146.6 160.3 102.9 142.3 Amortiz
Slide 13: Historic Dividends & Leverage Track Record
Historic Dividends & Leverage Track Record 2008 2009 2010 2011 2012 2013 Share Capital (No of Shares mn) 558 614 675 743 743 743 Dividend Cash Dividend % - - - - 20% 15% Bonus % 10% 10% 0% 10% 10% - Cash Payout - AED Mn - - - - 148.6 111.5 Net profits AED Mn 191 237 314 22 224 272 Dividend payout ra
Slide 14: Our Industry
OUR INDUSTRY Company Confidential 14
Slide 15: Global Ceramic Tiles Market
Global Ceramic Tiles Market Ceramics is the largest category of flooring materials, accounting for 36% of the worldwide flooring market and contributing ~6bn sqm of demand annually. Global Flooring Demand by Material (2013) Global Flooring Demand by Region (2013) Other non- CAGR 2012-2016E resilient
Slide 16: Global Sanitary Ware Market
Global Sanitary Ware Market The global Sanitary Ware market was $22bn in size in 2013 and is expected to reach $27.3bn by 2016, growing at an expected CAGR of 7% from 2012 to 2016. Sanitary Ware Market (US $bn) Global Sanitary Ware Production (2013) Total CAGR 2012E-2016E 400 mn pieces 7% CAGR 2010-
Slide 17: Global Competitive Landscape – 2013
Global Competitive Landscape – 2013 RAK Ceramics is the 3rd largest producer of ceramic tiles globally, and the 5th largest tiles & sanitary ware business in terms of dollar sales. The company is focussed on increasing its market share in both existing and new markets globally, and aspires to achiev
Slide 18: Regional Competitive Landscape
Regional Competitive Landscape RAK Ceramics is the market leader in the GCC region and India, and ranks within the top 5 producers in India. The company is well positioned to benefit from recovering construction activity in Saudi Arabia, as well as the high prospects in India and Bangladesh followin
Slide 19: Our Strategy
OUR STRATEGY Company Confidential 19
Slide 20: RAK Ceramic 3 Year Vision
RAK Ceramic 3 Year Vision Management’s 3 year vision for RAK Ceramics is for the company to achieve global leadership in ceramics lifestyle solutions, with a focus on profitability and sustainability. This vision is built around four key pillars, namely for RAK Ceramics to become: The dominant e
Slide 21: RAK Ceramics Value Creation Plan
RAK Ceramics Value Creation Plan In addition to our disposal program for non-core assets, RAK Ceramics will execute the below initiatives to create value for shareholders: Focus Markets Frontier Markets UAE, Saudi Arabia, other GCC markets, India & Bangladesh Africa, South East Asia, the US and
Slide 22: Re-vamping Sales & Distribution Strategy Improving Profitability
2015 Focus Management is focused on improving profitability and re-vamping RAK Ceramic’s sales and distribution strategy. This involves significant expansion in the Sanitary Ware business, disposal of non-core activities and investing in our distribution platform in Saudi Arabia. Expanding RAK Cer
Slide 23: Thank You
Thank You The Company’s website provides (http://www.rakceramics.com/ )detailed information on the history, products and network of the company The Corporate Profile of the Company is available at http://www.rakceramics.com/rakceramics-corporate- profile/index.html A visual corporate presentat
Slide 24: Appendix
APPENDIX Company Confidential 24
Slide 25: Market Recognition – Awards and Citations
Market Recognition – Awards and Citations “Superbrand” – 2010, 2011, 2012, 2013 and 2014 “Asia’s Most Promising Brand”– Asia Brand and Leader’s Summit 2013 Brand Excellence in Construction & Real Estate Award and CSR Best Practice Award– CMO Asia Awards 2013 Brand Excellence in Durables Awar
Slide 26: Commitment to be Responsible and Sustainable
Commitment to be Responsible and Sustainable RAK Ceramics is an early adopter of world bank/ IFC norms for environmental issues in global operations Overseas expansions in Bangladesh, China , India and Iran were implemented with IFC assistance In recent period (2010-14) we have implemented a n
Slide 27: Important Notice
Important Notice This information contained in the enclosed presentation summarizes preliminary and introductory information on RAK Ceramics PSC (the Company). This presentation has been prepared for information purposes only and is not and does not form part of or constitute any prospectus, offerin
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