Riyadh Cables Group Co. · TADAWUL:4142
Riyadh Cables — FY2023 Earnings Presentation
27 slides from Riyadh Cables's earnings presentation, March 2024
Slide 1: Earnings Presentation FY-23
RIYADH CABLES GROUP Earnings Presentation FY-23 Borjan Sehovac Baha Essa Mouaaz Alyounes Chief Executive Officer Chief Financial Officer Chief Strategy Officer
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Riyadh Cables Group Company (“RCG”) to give a fair view about the company and its operational and financial performance. It reflects management’s expectations and strategy relating to future events which may be subject to unknown factors and unforese
Slide 3: In Today's Meeting
In Today’s Meeting 01 Welcome Remarks 02 Company Overview 03 FY-23 Performance Highlights 04 Financial Review Business Strategy Refresh & Market 05 Update 06 The Way Forward
Slide 4: Company Overview
Company Overview
Slide 5: Cables are the backbone of the economy, touching every segment
Cables are the backbone of the economy, touching every segment Generation Transmission Distribution End Users Legend Power Data Solar Fossil Onshore Internet ISPs Wind exchange Residencial Datacenters Offshore Wind Industrial Power Transmission Distribution Usages Generation Commercial Nuclear Infra
Slide 6: FY-23 Performance Highlights
FY-23 Performance Highlights
Slide 7: FY-23 Financial and Operational Performance Snapshot
FY-23 Financial and Operational Performance Snapshot Percentage changes refer to YoY change SARm 7,825 Kt 219 % 92 Revenue Sales Volume Current Utilization +55% + 14.2% + 15.2% Rate +26% +17% 219 4,395 128 190 +15% 111 3,406 -14% 3,216 SAR 4,395 SARm 728 SARm 518 138 +29% Gross Profit Per Ton EBITDA
Slide 8: FY-23 Key Performance Drivers
FY-23 Key Performance Drivers Percentage changes refer to YoY change Sal es Vol um e 15% incr ease in sales volum e, suppor t ed by st r ong t r ansm ission pr oj ect s, t oget her wit h r enewable and expor t . M inor slowdown in Ut ilit y s egm ent . Revenue St r ong dem and- dr iven r evenue incr
Slide 9: Financial Review
& Financial Review
Slide 10: FY-23 Financial and Operational Performance
FY-23 Financial and Operational Performance Revenue and Volume 1,831 1,890 7,825 2,000 70 8,000 6,852 • Q4-FY23 revenue ~ 1.9bnSAR, still on high side even if volume 7,000 slightly below Q3-FY23. 52 51 219 1,500 50 6,000 190 -1% 5,000 • FY23 Vs FY22 sales revenues and volumes increased due to strong
Slide 11: Backlog, profitability, and capacity utilization
Backlog, profitability, and capacity utilization +14% +40% +15% SAR 3.9 billion Strong backlog in Q4-2023 pushing 7,825 728 3,883 utilization rate to 92 % Record of confirmed 6,852 3,382 orders backlog 522 Average Capacity Utilization (%) 100% • Quote pipeline size grew + 145 % in FY-23 Vs FY-22 202
Slide 12: Gross profit and EBITDA show healthy improvement on better mix
Gross profit and EBITDA show healthy improvement on better mix and successful variable / fixed cost optimization Gross Profit (SARm) Gross Profit 238 973 • Quarterly gross profit increased as a result of efficiencies and 190 improved mix. +26% 647 +50% • Strategic orders selection methodology to max
Slide 13: Strong free cash flow generation and consistent dividend payment
Strong free cash flow generation and consistent dividend payment Free Cash Flow 66 28 26 9 95 141 -23 -31 559 -47 1,187 Excellent working capital management backs strong free cash flow -132 -156 generation, allowing RCG to accelerate investments in capacity with 651 ability to sustain attractive div
Slide 14: Hedging and pricing mechanisms neutralize commodity price fluctuations
Hedging and pricing mechanisms neutralize commodity price fluctuations, granting stability to gross profit per tone +29% +6% 4,395 Gross Profit per ton (SAR/tonne) 3,216 3,406 6,670 Main drivers: 5,938 4,089 2,849 2,391 • Operational Efficiencies due to high Utilization 4,650 3,547 3,821 • Higher de
Slide 15: Business Strategy Refresh & Market Update
Business Strategy Refresh & Market Update
Slide 16: RCG Strategy: Drive Growth and Performance
RCG Strategy: Drive Growth and Performance Deepen And Expand Products And Environment, Social And Cost Leadership Organisation Geographical Footprint Services Innovation Governance Focus Leadership in Complete cables Focus on cost People and Responsible each target solutions and efficiency processes
Slide 17: Overall Demand in Target Markets Displays Attractive Growth Lead by KSA
Overall Demand in Target Markets Displays Attractive Growth Lead by KSA Wires and power cables market size in KSA, rest of GCC1 and Iraq 2019 - 2028F (in SAR Billion) KSA Demand – SAR billion MENA region historic and forecast demand growth 37.4-40.8 +7.6 has exceeded most other markets 10% Iraq +7.5
Slide 18: Clear market leader in the region and amongst the largest global players
Clear market leader in the region and amongst the largest global players KSA Market Share RCGC Sector Leadership Almost 2X capacity as closest regional 38% 1 36% competitor 32% 30% 30% 2 Comprehensive product range 3 Technical leadership 2019 2020 2021 2022 2023 Localisation advantage (high score fr
Slide 19: The Way Forward
The Way Forward
Slide 20: 2024 Management Outlook
2024 Management Outlook Backlog 2024 TARGETS & GUIDANCE Macro trends Expected CAPEX 10% - 15% SAR ~200 million Increase of Net Profit [Insert target] [Insert target] Product portfolio DIVIDENDS Capacity Management outlook reflects expectations that may happen in the future. These expectations are su
Slide 21: Q&A
Q&A 21
Slide 22: Thank you
Thank you
Slide 23: Appendix
Appendix
Slide 24: Summarized income statement (SARm)
Summarized income statement (SARm) FY-22 FY-23 Var. Var. % Revenue* 6,852 7,825 973 14.2% Direct costs* -6,205 -6,853 -647 10.4% Gross profit 647 973 326 50.3% Operating expenses -203 -242 -39 19.4% Operating profit 444 730 286 64.4% Investment income -0 -0 -0 Finance charges -73 -103 -31 41.9% Othe
Slide 25: Condensed balance sheet (SARm)
Condensed balance sheet (SARm) YE-22 FY-23 Fixed Assets 1,224 1,281 Investments 54 48 Other Long Term Assets 13 13 Current Assets 3,333 3,489 Total Assets 4,624 4,831 Borrowings 1,468 722 Long Term Liabilities 123 135 Current Liabilities (excl. borrowings) 913 1,728 Total Liabilities 2,503 2,585 Equ
Slide 26: Condensed cash flow statement (SARm)
Condensed cash flow statement (SARm) FY-22 FY-23 Var. Var. % Operating cash flow before working capital 399 856 457 114.5% Net working capital movement -194 508 702 -362.3% Cash generated from operating activities 205 1,363 1,158 564.3% Finance charges, Zakat & income tax, EOSB -20 -21 -1 3.6% Net c
Slide 27: Riyadh Cables Group
Riyadh Cables Group 27
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