Riyadh Cables Group Co. · TADAWUL:4142
Riyadh Cables — 9M FY2023 Earnings Presentation
26 slides from Riyadh Cables's earnings presentation, October 2023
Slide 1: Earnings Presentation 9M / FY23
RIYADH CABLES GROUP Earnings Presentation 9M / FY23 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 9M / FY23 Performance Highlights 04 Financial Review Business Strategy Refresh & Market 05 Update 06 The Upgraded 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: 9M / FY23 Performance Highlights
9M / FY23 Performance Highlights
Slide 7: 9M-FY23 Financial and Operational Performance Snapshot
9M-FY23 Financial and Operational Performance Snapshot Percentage changes refer to YoY change SARm 5,936 Kt 167 % 98 Revenue Sales Volume Current Utilization +63% + 18.2% + 21.1% Rate +28% +17% 167 4,278 100 96 +21% -4% 138 3,136 3,199 SAR 4,278 SARm 538 SARm 385 102 +34% Gross Profit Per Ton EBITDA
Slide 8: 9M-FY23 Key Performance Drivers
9M-FY23 Key Performance Drivers Percentage changes refer to YoY change Sal es Vol um e 21% incr ease in sales volum e. St r ong Local t r ansm ission pr oj ect s, t oget her wit h r enewable and expor t . Revenue St r ong dem and- dr iven r evenue incr eased by 18% as RCG m aint ains it s m ar ket s
Slide 9: Financial Review
& Financial Review
Slide 10: 9M-FY23 Financial and Operational Performance
9M-FY23 Financial and Operational Performance Revenue and Volume 5,936 2,500 100 6,000 5,022 • Q3-FY23 Record high revenue above 2bnSAR, with an increase 1,918 2,080 of 11% Vs previous quarter and +7% Vs Q1. 2,000 5,000 167 1,500 57 4,000 138 • 9M-FY23 Vs 9M-FY22 sales revenues and volumes increased
Slide 11: Backlog, profitability, and capacity utilization
Backlog, profitability, and capacity utilization +18% +52% +2% SAR 3.0 billion Strong backlog in Q3-2023 pushing 2,978 3,026 5,936 538 utilization rate to 98% Confirmed orders 5,022 backlog 354 Average Capacity Utilization (%) 100% • Increased production 2020 78% 22% throughput. • Quote pipeline siz
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 279 735 237 • Quarterly gross profit increased as a result of realized efficiencies and improved mix. +18% 458 +61% • Strategic orders selection methodolo
Slide 13: Strong free cash flow generation and consistent dividend payment
Strong free cash flow generation and consistent dividend payment Free Cash Flow 107 89 15 12 889 870 -30 -25 -37 -74 55 -463 Prudent working capital management backs strong free cash flow 410 -41 generation, fueling RCG’s ability to sustain attractive dividend payouts. Depreciation Capex PBT Invento
Slide 14: Hedging and pricing mechanisms neutralize commodity price fluctuations
Hedging and pricing mechanisms neutralize commodity price fluctuations, granting stability to gross profit per tonne +34% +2% 4,278 Gross Profit per ton (SAR/tonne) 3,136 3,199 6,388 5,973 4,090 Main drivers: 2,479 3,146 • Operational Efficiencies due to high Utilization 4,441 3,495 3,242 • Higher d
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 2018 - 2027F (in SAR Billion) KSA Demand – SAR billion +8.3% Recent Market +3.4% Studies Indicating 1,109 38,780 higher growth rate 4,105 12,533 18,713 10,954 2018
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 1 36% competitor 32% 30% 30% 2 Comprehensive product range 3 Technical leadership 2019 2020 2021 2022 Localisation advantage (high score from 4 loca
Slide 19: The Way Forward
The Way Forward
Slide 20: 2023 Management Outlook
2023 Management Outlook 2023 TARGETS & GUIDANCE Backlog - GUIDANCE CONFIRMED - Macro trends Confirming High Side Expected CAPEX of previous guidance SAR ~200 million [Insert target] [Insert target] Product portfolio As per previous Previous guidance guidance (Q2) 25% - 35% increase As per previous P
Slide 21: Q&A
Q&A 22
Slide 22: Appendix
Appendix • Appendix
Slide 23: Summarized income statement (SARm)
Summarized income statement (SARm) 9-months ending 30 September 2023 9M-22 9M-23 Var. Var. % Revenue* 5,022 5,936 914 18.2% Direct costs* -4,564 -5,201 -637 14.0% Gross profit 458 735 277 60.6% Operating expenses -148 -177 -29 19.7% Operating profit 310 558 248 80.1% Investment income 1 -0 -1 0.0% F
Slide 24: Condensed balance sheet (SARm)
Condensed balance sheet (SARm) 9-months ending 30 September 2023 YE-22 9M-23 Fixed Assets 1,223.7 1,239.3 Investments 54.1 52.4 Other Long Term Assets 13.2 11.7 Current Assets 3,332.8 3,831.7 Total Assets 4,623.9 5,135.1 Borrowings 1,468.0 819.9 Long Term Liabilities 122.7 129.2 Current Liabilities
Slide 25: Condensed cash flow statement (SARm)
Condensed cash flow statement (SARm) 9-months ending 30 September 2023 9M-22 9M-23 Var. Var. % Operating cash flow before working capital 310 643 333 107.5% Net working capital movement -594 353 947 -159.4% Cash generated from operating activities -284 996 1,280 -450.3% Finance charges, Zakat & inco
Slide 26: Riyadh Cables Group
Riyadh Cables Group 27
Riyadh Cables Group — 9M FY2023 Earnings Presentation on 6ix