Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — Q4 & FY2020 Earnings Presentation
23 slides from Rak Ceramics Pjsc's earnings presentation, February 2021
Slide 1: Earnings Presentation - Q4 & FY 2020 Results
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS FEBRUARY 2021 RAK Ceramics PJSC © 2020. All rights reserved
Slide 2: Attendees
EARNINGS PRESENTATION - Q4 & FY 2020 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 23 years Pramod Kumar Chand is the Group Chief Financial Officer of RAK Ceramics. Mr. Chand exp
Slide 3: Disclaimer
EARNINGS PRESENTATION - Q4 & FY 2020 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 presentatio
Slide 4: Strong rebound in Q4 2020
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS Strong rebound in Q4 2020 MANAGEMENT COMMENTS QUARTERLY & YEARLY SEGMENT REVENUE (AEDM) 2020 performance started well in Q1 but was negatively impacted in Q2 720 2,575 due to COVID-19 pandemic 2,350 626 42 138 lockdowns across all our core 593 43 131 mark
Slide 5: Q4 2020 Key business highlights
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS Q4 2020 Key business highlights Strong Operational Quarter Strong Growth in Saudi Arabia Significant SG&A Savings Core markets have recovered as Product differentiation, focus on Recorded significant savings in business performance gained retail and whole
Slide 6: Q4 2020 Performance across global operations
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS Q4 2020 Performance across global operations UAE Production Optimisation Strong Growth in Saudi Arabia European Recovery Production running at an optimal Introduction of differentiated tile European markets reached pre capacity due to increasing sizes and
Slide 7: Q4 2020 Key financial highlights
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS Q4 2020 Key nancial highlights Total revenue increased by +5.1% Total gross profit COVID-19 pandemic impacted YoY to AED 719.7m driven by margin increased by +80bps YoY real estate sector and hotel growth in Saudi Arabia, India and to 34.4%. Tiles margin
Slide 8: Break down of provisions in Q4 2020
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS Break down of provisions in Q4 2020 MANAGEMENT COMMENTS Q4 2020 BREAKDOWN OF PROVISONS (AED M) COVID-19 pandemic has impacted Q4 20 the real estate sector. Therefore, the waterfront land and specific Amount properties' fair value have been reassessed, res
Slide 9: 2020 Key financial highlights
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS 2020 Key nancial highlights Total revenue decreased by Total gross profit Reported net loss is AED -126.2m -8.7% YoY to AED 2.35bn mainly margin decreased by -120bps after considering impairment due to lower revenue in Q2 2020 YoY to 32.0%, due to lower l
Slide 10: Quarterly revenue recovery by end market
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS Quarterly revenue recovery by end market REVENUE BY END MARKET (AED M) QUARTERLY COMPARISON YEARLY COMPARISON Q1 20 Q2 20 Q3 20 Q4 20 Q4 19 2020 2019 Amount Amount Amount Amount Amount Growth Amount Amount Growth United Arab Emirates 159.5 138.2 147.4 169
Slide 11: Net profit bridge
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS Net pro t bridge Q4 2020 VS Q4 2019 (AEDM) 49.4 7.2 -1.9 -15.6 -17.1 -3.7 47.3 65.6 -236.3 -170.7 Higher freight Higher Net pro t Q4 Impairment Net Pro t Savings from xed Hyperin ation Tableware Higher GP & Net Loss Q4 on increased provision for 20 before
Slide 12: Revenue highlights
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS Revenue highlights MANAGEMENT COMMENTS TOTAL REVENUE (AEDM) TILES REVENUE (AEDM) Q4 2020 performance improved 2,349.5 2,574.5 1,609.7 1,661.8 across all our businesses. Total revenue is increased by +5.1% YoY to AED 719.7m. 488.4 438.8 719.7 684.7 428.5 6
Slide 13: Gross profit margins
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS Gross pro t margins TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) MANAGEMENT COMMENTS In Q4 2020, total gross margin 34.4 33.6 33.2 34.8 32.0 31.2 31.2 31.4 increased by +80bps YoY to 34.4% 31.1 29.6 due to higher revenue, improved efficiencies and redu
Slide 14: Financial highlights
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS Financial highlights QUARTERLY COMPARISON YEARLY COMPARISON Q4 20 Q3 20 Q4 19 2020 2019 Amount in AED M Amount Amount Growth Amount Growth Amount Amount Growth Revenue 719.7 625.7 15.0% 684.7 5.1% 2,349.5 2,574.5 -8.7% Gross margin (%) 34.4% 31.1% 3.3% 33
Slide 15: Working capital cycle
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS Working capital cycle MANAGEMENT COMMENTS WORKING CAPITAL CYCLE (AEDM) WORKING CAPITAL CYCLE (LTM DAYS) Inventory days decreased from 266 days to 246 days QoQ due to 1,542 1,489 increased QoQ revenue. 1,371 256 375 228 242 369 Trade receivable days also 3
Slide 16: 2021 Priorities
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS 2021 Priorities Protect Market Share Improve tableware performance Build On Protect market share and Improve performance in light of Retail concept in focus markets profitability in the UAE, Bangladesh the ongoing impact in the Airlines through franchisin
Slide 17: Appendix
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS Appendix RAK Ceramics PJSC © 2020. All rights reserved 17
Slide 18: Tiles revenues by end market
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS Tiles revenues by end market QUARTERLY COMPARISON YEARLY COMPARISON Q4 20 Q3 20 Q4 19 2020 2019 Amount in AED M Amount Amount Growth Amount Growth Amount Amount Growth United Arab Emirates 133.1 117.0 13.8% 163.8 -18.7% 481.2 603.0 -20.2% Kingdom of Saudi
Slide 19: Sanitaryware revenues by end market
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS Sanitaryware revenues by end market QUARTERLY COMPARISON YEARLY COMPARISON Q4 20 Q3 20 Q4 19 2020 2019 Amount in AED M Amount Amount Growth Amount Growth Amount Amount Growth United Arab Emirates 36.2 30.4 19.0% 43.3 -16.5% 133.3 158.0 -15.6% Kingdom of S
Slide 20: EBITDA working
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS EBITDA working QUARTERLY COMPARISON YEARLY COMPARISON Q4 20 Q3 20 Q4 19 2020 2019 Amount in AED M Amount Amount Amount Amount Amount Net profit/(loss) after tax (170.7) 34.0 49.4 (126.2) 205.2 Tax 10.2 2.7 20.1 14.6 26.7 Interest- net 18.5 17.8 18.2 70.7
Slide 21: Like for Like net profit working
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS Like for Like net pro t working QUARTERLY COMPARISON YEARLY COMPARISON Q4 20 Q3 20 Q4 19 2020 2019 Amount in AED M Amount Amount Amount Amount Amount Net profit /(loss) after tax (170.7) 34.0 49.4 (126.2) 205.1 Add: Impairment on trade receivables 10.0 6.
Slide 22: Contacts
EARNINGS PRESENTATION - Q4 & FY 2020 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
Slide 23: EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS RAK Ceramics PJSC © 2020. All
EARNINGS PRESENTATION - Q4 & FY 2020 RESULTS RAK Ceramics PJSC © 2020. All rights reserved 23
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