Al Hassan Ghazi Ibrahim Shaker Co. · TADAWUL:1214
Al Hassan Ghazi Ibrahim Shaker — FY2020 Earnings Presentation
32 slides from Al Hassan Ghazi Ibrahim Shaker's earnings presentation, Dec 31, 2020
Slide 1: Investor Presentation FY 2020
Shaker Investor Presentation FY 2020 as at 31 December 2020
Slide 2: Core products
Core products Air Conditioning (A/C) Home Appliances Core products Consumer A/C Commercial A/C Applied A/C Major Domestic Dishwasher Food preparation Split A/C Ceiling concealed Chillers appliances duct A/C Home laundry Irons Window A/C Ducted split Fan coil unit appliances Small cooking Floor stand
Slide 3: Brand portfolio
Brand portfolio Air Conditioners Home Appliances Competitive positioning High-end Brand portfolio Flexibility targets most consumer segments Low-end Functionality Page 3
Slide 4: In focus: LG-Shaker manufacturing
In focus: LG-Shaker manufacturing • Current products: Window, Wall mounted Split units, Concealed units, Cassette units, Free stand units, Single Package units, Air Handling Units • Year opened: 2008 • Site size: 75,000 square meter 49% 900K units 200 ownership manufacturing employees capacity Stron
Slide 5: Attractive industry experiencing growth
Attractive industry experiencing growth Mega projects in Saudi will see investment of 3 Alignment with socioeconomic objectives of in two key areas: Superior technology for the Saudi market Saudi air conditioner market forecast to reach Creation of new sectors 1 and domestic projects Nationwide ener
Slide 6: Highlights: FY 2020
Highlights: FY 2020 Completion of net profit in revenue Y-o-Y in KSA employee costs First profitable year since substantially optimized Gross profit increase Agile response Y-o-Y Page 6
Slide 7: Key messages
Key messages ▪ Successful completion of the Breakthrough Program had a tangible impact on the Group’s long-term sustainable performance, achieving significant operational and structural efficiencies ▪ Welcomed a new home appliances brand, Bompani, to the Group’s growing portfolio of companies ▪ Agil
Slide 8: Performance highlights
Performance highlights Revenue and Income vs. Margins Q1 2016 – Q4 2020 600.00 30.0% 500.00 20.0% 10.0% 400.00 0.0% 300.00 SAR million -10.0% 200.00 % -20.0% 100.00 -30.0% - -40.0% -100.00 -50.0% -200.00 -60.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017
Slide 9: Business Profile
BUSINESS PROFILE
Slide 10: Strategy overview
Strategy overview • Become top 3 supplier in existing business segments & add new brands and products to portfolio • B2B and after sales revamp – increase presales and capture mega project opportunities • Boost e-commerce sales 2023 targets High single digit percentage • Increase brand awareness and
Slide 11: Growth avenue highlights
Growth avenue highlights AC Sales HA Sales Services & Support Home Housing SEEC Mega projects ESCO & Retrofit Aftersales Appliances 670,000 planned Multifold rise in Multiple mega Growing the size 250,000 Growing houses requiring KSA energy tariff projects under and diversity of the government repla
Slide 12: Breakthrough Program pillars
Breakthrough Program pillars Core Business Turnaround (CBT) • Profitable and responsible sales • Deliver excellence in cost management Talent Upgrade Plan (TUP) • Attract and develop talent • Organization Four restructuring pillars Strategic Moves (STR) • Strengthen relationships with principals and
Slide 13: Progress highlights
As at 31 December 2020 Core Business Turnaround ▪ FY 2020 sales in Saudi Arabia increased 8.1% compared to FY 2019 with momentum achieved across business segments ▪ Achieved net profit of SAR 10.1 million compared to a net loss of SAR 50.8 million in FY 2019 ▪ Employee costs in Saudi Arabia decrease
Slide 14: Financial Performance
FINANCIAL PERFORMANCE Page 14
Slide 15: Sales recovery
Sales recovery Revenue growth driven by transformation initiatives 600.00 Revenue growth in 2019 and 2020 driven by 500.00 impact of the Breakthrough Program 400.00 ▪ Enhanced distribution network, sales processes and training SAR million 300.00 ▪ Investment in technology to manage inventory 200.00
Slide 16: Profitability
Profitability Gross Profit (SAR million) Net profit/(loss) (SAR million) % = GP margin % = NP margin 500 200 23% 7% 450 150 400 24% 100 350 3% 50 300 1% 2% 2% 2% 0 250 FY FY FY FY FY FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 21% 2015 2016 2017 2018 2019 2020 2019 2019 2019 2019 2020 2020 2020 2020 200 17% (50) 19%
Slide 17: EBITDA & RoE
EBITDA & RoE EBITDA (SAR million) Return on Equity (%) 200 10% 20% 15% 150 10% 5% 100 5% 0% 50 0% FY FY FY FY FY FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -5% 2015 2016 2017 2018 2019 2020 2019 2019 2019 2019 2020 2020 2020 2020 0 -10% FY FY FY FY FY FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -50 2015 2016 2017 2018 2019 2020 201
Slide 18: Rationalizing the workforce
Rationalizing the workforce Rationalizing employee headcount Rationalizing employee costs (SAR 000) 1,800 50,000 1,600 45,000 1,400 40,000 1,200 35,000 1,000 30,000 25,000 800 20,000 600 15,000 400 10,000 200 5,000 0 0 Employee headcount rationalization ongoing, Employee costs in Saudi Arabia decrea
Slide 19: Trade receivables vs. inventory trend
Trade receivables vs. inventory trend Trade Receivable Trend (SAR '000) Inventories Trend (SAR '000) 800,000 700,000 Breakthrough Program introduced 600,000 to reduce costs, optimize inventory 500,000 400,000 Receivables stabilize, with 300,000 inventory levels reduced 200,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 20: Cash flow: operational and financing
Cash flow: operational and financing Cash Flow From Operations Trend (SAR ‘000) 195,387 230,399 181,179 139,035 95,501 95,637 (3,164) 31,405 2,904 33,594 34,437 40,658 27,818 (55,658) (31,702) (17,225) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019
Slide 21: Capital structure
Capital structure Capital Structure (SAR million / %) 1200 100% 90% 1000 80% 70% 800 60% 600 50% 40% 400 30% 20% 200 10% 0 0% FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Equity LTL STL Debt/Equity % Page 21
Slide 22: STLs & MTLs trend
STLs & MTLs trend Short Term Loans Trend (SAR ‘000) 801,444 797,622 695,160 713,655 704,065 666,666 646,367 531,457 462,062 445,071 412,617 302,667 242,394 237,277 237,330 278,228 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020
Slide 23: Appendix I: About the Company
APPENDIX I: ABOUT THE COMPANY Page 23
Slide 24: What is Shaker Group?
Exclusive Saudi distributor for five internationally acclaimed home appliances brands: • Maytag (1980) • Ariston (1994) • Indesit (2005) Subsidiary: ESCO • Midea (2008) • Energy saving consultancy • Bissell (2015) and retrofitting services Origins dating What is back to 1950 Shaker Group? Shaker Gro
Slide 25: Corporate milestones
Corporate milestones A history of success stories and key milestones Launched Launch of the Breakthrough KSA Part acquisition Capital increase Air Conditioners Transformation Manufacturing of Energy from SAR 350 (Sole Program (2019) Arm - Joint Management million to SAR Distribution Venture signed S
Slide 26: Shareholding structure & information
Shareholding structure & information Shareholding structure Share information Market Tadawul, Saudi Arabia 12.2% Currency SAR Listing date May 2010 10.0% Financial year-end 31 December Lafana Holding Tawazon Arabia Co Authorized capital (SAR) 630,000,000 5.7% Lama Holding Issued shares 63,000,000 Ot
Slide 27: Appendix II: Financials
APPENDIX II: FINANCIALS Page 27
Slide 28: Income statement
Income statement SAR ‘000 2016 2017 2018 2019 2020 Sales 1,654,405 1,038,563 774,025 882, 822 932,699 Cost of sales (1,265,479) (862,615) (675,307) (717,176) (737,139) Gross profit 388,926 175,948 98,718 165,646 195,560 S&D expenses (181,536) (162,530) (140,336) (104,454) (95,567) G&A expenses (156,
Slide 29: Cash flow statement
Cash flow statement SAR ‘000 2016 2017 2018 2019 2020 Cash flows from operating activities Profit/(loss) for the period 45,308 (176,745) (202,181) (50,860) 10,134 Adjustments: 83,296 (69,357) (103,841) 9,223 64,597 Changes in operating assets & liabilities (18,128) 67,967 220,484 262,739 (55,964) Em
Slide 30: Balance sheet
Balance sheet SAR ‘000 2015 2016 2017 2018 2019 2020 ASSETS Non-current assets 840,349 860,595 818,770 754,766 719,090 682,851 Current assets 1,578,631 1,525,842 1,267,065 879,935 748,181 756,813 Total assets 2,418,980 2,386,437 2,085,835 1,634,701 1,467,271 1,439,664 EQUITY Total equity attributabl
Slide 31: Disclaimer
Disclaimer This presentation has been prepared solely for use as an investor presentation for Shaker Group (the “Company”). 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 only
Slide 32: Contact
CONTACT MR. HOSSAM AKKAD VICE PRESIDENT FINANCE HOSSAM_AKKAD@SHAKER.COM.SA +966-11-2638900 Page 32
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