Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — FY2018 Earnings Presentation
18 slides from Rak Ceramics Pjsc's earnings presentation, February 2019
Slide 1: Earnings Presentation - 2018 Q4/FY Results
EARNINGS PRESENTATION - 2018 Q4/FY RESULTS EARNINGS PRESENTATION - 2018 Q4/FY RESULTS FEBRUARY 2018 RAK Ceramics PJSC © 2019. All rights reserved
Slide 2: Attendees
EARNINGS PRESENTATION - 2018 Q4/FY RESULTS 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 22 years experience Pramod Kumar Chand is the Group Chief Financial Officer of RAK Ceramics. Mr.
Slide 3: Disclaimer
EARNINGS PRESENTATION - 2018 Q4/FY 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 highlights
EARNINGS PRESENTATION - 2018 Q4/FY RESULTS Key business highlights Core business growth Margins at all time high India turnaround Core business remained stable Total, core and tile profit margins Commercial production began in supported by sales in UAE, India reached an all time high despite Morbi e
Slide 5: Q4 2018 Key financial highlights
EARNINGS PRESENTATION - 2018 Q4/FY RESULTS Q4 2018 Key financial highlights Core revenue increased by +0.9% Core gross profit margin SG&A and finance cost (net) to AED695.6m YoY. increased by +210bps YoY to increased by +9.8% to AED200.2m 33.3%. YoY due to increased costs in India Total revenue decr
Slide 6: FY 2018 Key financial highlights
EARNINGS PRESENTATION - 2018 Q4/FY RESULTS FY 2018 Key financial highlights Core revenue increased by +1.0% Core gross profit margin Core EBITDA decreased by -8.1% to AED2.64bn YoY. increased by +80bps to 33.3% YoY YoY to AED421.8m, with a margin at an all-time high. decrease of -160bps to 16.0%. To
Slide 7: 2018 Net Profit Bridge
EARNINGS PRESENTATION - 2018 Q4/FY RESULTS 2018 Net Profit Bridge MANAGEMENT COMMENTS NET PROFIT BRIDGE (AED M) Reported net profit was AED225.1 million, -28.7% year -55.0 on year, however net profit in +14.1 -10.9 2018 was impacted by -38.6 increased of AED55m YoY in energy costs at an average gas
Slide 8: Revenue highlights
EARNINGS PRESENTATION - 2018 Q4/FY RESULTS Revenue highlights MANAGEMENT COMMENTS TOTAL REVENUE (AED M) CORE REVENUE (AED M) Total revenue in Q4 2018 3,000 2,776 2,855 3,000 2,640 2,615 decreased by -2.9% YoY while core revenue increased by 2,000 2,000 +0.9% YoY and +8.8% QoQ. 1,000 725.6 669.5 747.
Slide 9: Tiles revenue by end market
EARNINGS PRESENTATION - 2018 Q4/FY RESULTS Tiles revenue by end market QUARTERLY COMPARISON YEARLY COMPARISON Q4 18 Q3 18 Q4 17 2018 2017 Amount Amount Growth Amount Growth Amount Amount Growth United Arab Emirates 171.4 143.1 19.8% 170.4 0.6% 627.4 584.6 7.3% Kingdom of Saudi Arabia* 58.1 56.7 2.4%
Slide 10: Sanitaryware revenue by end market
EARNINGS PRESENTATION - 2018 Q4/FY RESULTS Sanitaryware revenue by end market QUARTERLY COMPARISON YEARLY COMPARISON Q4 18 Q3 18 Q4 17 2018 2017 Amount Amount Growth Amount Growth Amount Amount Growth United Arab Emirates 45.3 42.0 7.8% 54.1 -16.3% 165.4 169.9 -2.6% Kingdom of Saudi Arabia* 3.9 2.8
Slide 11: Revenue contribution
EARNINGS PRESENTATION - 2018 Q4/FY RESULTS Revenue contribution MANAGEMENT COMMENTS CORE AND NON-CORE REVENUE (%) Non-core revenue contribution 4.1% 4.5% 4.9% 8.7% 8.4% reached an all time low of 4.1% 12.9% 18.6% 14.7% 16.0% 13.0% in Q4 2018 driven by our strategic focus on divesting non-core operat
Slide 12: Gross profit margins
EARNINGS PRESENTATION - 2018 Q4/FY RESULTS Gross profit margins MANAGEMENT COMMENTS CORE GROSS MARGINS (%) TILES GROSS MARGINS (%) All time high Total gross margin increased by All time high 35 33.3 33.2 33.3 32.5 28.9 +300bps YoY to an all time high of 31.2 30 28.0 28.5 28.0 33.0 33.3 33.2 31.6 26.
Slide 13: Financial highlights
EARNINGS PRESENTATION - 2018 Q4/FY RESULTS Financial highlights FINANCIAL HIGHLIGHTS (AED M) QUARTERLY COMPARISON YEARLY COMPARISON YEARLY COMPARISON Q4 18 Q3 18 Q4 17 2018 2017 Amount Amount Growth Amount Growth Amount Amount Growth Revenue 725.6 669.5 8.4% 747.5 -2.9% 2,776.0 2,854.9 -2.8% Core re
Slide 14: Core net profit and shareholder return
EARNINGS PRESENTATION - 2018 Q4/FY RESULTS Core net profit and shareholder return MANAGEMENT COMMENTS CORE NET PROFIT (AED MN) Core net profit increased by 73.1 70.2 67.9 +31.5% QoQ with a margin 50.7 48.2 27.3 42.1 41.7 39.5 44.4 41.7 47.8 40.8 53.7 increased by +130 bps due to 1.9 increase in reve
Slide 15: Operating cycle
EARNINGS PRESENTATION - 2018 Q4/FY RESULTS Operating cycle MANAGEMENT COMMENTS OPERATING CYCLE (LTM DAYS) Inventory days decreased from 256 days to 246 days QoQ. 400 280 297 289 Finished goods inventory 281 286 decreased by 5 days from 164 to 159 days QoQ. 300 256 249 246 239 227 200 100 108 116 118
Slide 16: 2019 Priorities
EARNINGS PRESENTATION - 2018 Q4/FY RESULTS 2019 Priorities Protect growth in UAE, India, Turnaround India and establish Improve profitability in Bangladesh, RAK Porcelain hub for exports Europe and Saudi Arabia and Kludi-RAK Develop strategy to Continue cost efficiencies Optimise production counter
Slide 17: Contacts
EARNINGS PRESENTATION - 2018 Q4/FY RESULTS 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:
Slide 18: EARNINGS PRESENTATION - 2018 Q4/FY RESULTS RAK Ceramics PJSC © 2019. All rights reserved
EARNINGS PRESENTATION - 2018 Q4/FY RESULTS RAK Ceramics PJSC © 2019. All rights reserved 18