Slide 1: Earnings Presentation Q1 / FY23
RIYADH CABLES GROUP Earnings Presentation Q1 / 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 Q1 / FY23 Performance Highlights 04 Financial Review Business Strategy Refresh & 05 Market 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: Q1 / FY23 Performance Highlights
Q1 / FY23 Performance Highlights
Slide 7: Q1-FY23 Financial and Operational Performance Snapshot
Q1-FY23 Financial and Operational Performance Snapshot Percentage changes refer to YoY change SARm 1,937 Kt 59 % 97 Revenue Sales Volume Avg. Utilization Rate + 24.1% + 31.4% + 7.8% +21% +14% 119 59 3,711 +82% +31% 3,126 45 2,872 +19% 40 SAR 3,711 SARm 172 SARm 125 59 Gross Profit Per Ton EBITDA Net
Slide 8: Key Performance Drivers
Key Performance Drivers Percentage changes refer to YoY change S a l e s Vol um e 3 1 % in cre a se in s a le s vo lu m e b a cke d b y a h e a lt h y b a cklo g a n d gro win g d e m a n d, e sp e cia lly in P ro je ct s a n d Ut ilit ie s. Re ve nue S t ro n g d e m a n d-d rive n re ve n u e in c
Slide 9: Financial Review
& Financial Review
Slide 10: Q1-FY23 Financial and Operational Performance
Q1-FY23 Financial and Operational Performance Revenue and Volume 1,937 2,000 80 1,937 2,000 1,831 1,561 80 70 • Sales revenues and volumes increased in parallel on strong 59 1,500 60 58 domestic and GCC demand. 1,500 52 60 45 50 1,000 +31% 40 1,000 +13% 40 • RCG is the supplier of choice by Vision 2
Slide 11: Backlog, profitability, and capacity utilization
Backlog, profitability, and capacity utilization +24% +47% SAR 3.3 billion -3% Strong backlog in Q1-2023 pushing 1,937 172 3,400 3,300 utilization rate to 97% Confirmed orders backlog YTD 1,561 117 Average Capacity Utilization (%) 100% • Increased production throughput. 2020 78% 22% • Quote pipeline
Slide 12: Gross profit and EBITDA show healthy improvement on higher sales
Gross profit and EBITDA show healthy improvement on higher sales and successful variable / fixed cost optimization Gross Profit (SARm) Gross Profit 219 219 • Quarterly gross profit increased as a result of higher sales 184 volumes, realized efficiencies, and improved mix. 152 +19% +44% • RCG adopts
Slide 13: Strong free cash flow generation and consistent dividend payment
Strong free cash flow generation and consistent dividend payment Free Cash Flow 55 415 114 0 0 8 291 -33 -9 2 0 Prudent working capital management backs strong free cash flow 38 generation, fueling RCG’s ability to sustain attractive dividend 41 85 payouts. 1 -176 Provision Trade payable Capex PBT F
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 . +19% +9% 3,711 Gross Profit per ton (SAR/tonne) 2,872 3,126 5,615 6,113 Main drivers: 3,494 2,413 2,162 • Improved pricing policy on higher demand 3,453 3,700 3,946 • Higher demand
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% +3.4% 1,109 38,780 4,105 18,713 10,954 12,533 2018 2022 2027F 6,180 Rest Of GCC – Demand SAR billion +
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: Management Outlook
Management Outlook 2023 TARGETS & GUIDANCE Backlog - WE CONFIRM THE PREVIOUS GUIDANCE - Macro trends CAPEX Net Profit SAR 200+ [Insert million target] 15-25% increase [Insert target] Product portfolio DIVIDENDS: 1.5 SAR/share (*) Capacity (*) BoD recommendation for AGM approval Management outlook re
Slide 21: Q&A
Q&A 21