Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — RAK Ceramics — FY2014 Earnings Presentation
14 slides from Rak Ceramics Pjsc's earnings presentation, March 2015
Slide 1: 2014 Fiscal Year End Financial Results
2014 Fiscal Year End Financial Results March 2015 Company Confidential 1
Slide 2: 2014 In Review – Key Highlights
2014 In Review – Key Highlights Samena made its investment in the company in June 2014; the board was expanded, an executive committee was Corporate & Strategic established, and subsidiaries boards committees were reshuffled Developments Corporate governance structure was strengthened throughout
Slide 3: Executive Summary – Financial Performance
Executive Summary – Financial Performance We continued executing our re-focused strategy to scale down less profitable Non-Core businesses and focus on Core operations. However the change in the distribution strategy in Saudi Arabia continued to affect our tiles sales in the short term. We started c
Slide 4: Executive Summary – Financial Performance (Contd)
Executive Summary – Financial Performance (Contd) Overall consolidated revenues in FYE 14 decreased by 6.4% to 3.29 bn including revenues of AED 165.2mn from discontinued operations (Sudan and Pharma). Reported overall revenues decreased by 6.7% to AED 3.12bn. Total core revenue decreased by 1.9% to
Slide 5: Re-vamping Sales & Distribution Strategy Improving Profitability
2015 Focus Management is focused on improving profitability and re-vamping RAK Ceramic’s sales and distribution strategy. This involves significant expansion in the Sanitary Ware business, disposal of non-core activities and investing in our distribution platform in Saudi Arabia. Expanding RAK Cer
Slide 6: Core Revenues Snapshot
Core Revenues Snapshot Tiles revenues for FYE 14 declined by 5.2% to AED 2.32bn mainly due to decrease in sales in Saudi Arabia and China, Iran & Sudan. SW revenues increased by 9.3% to AED 448.5mn. Tiles Revenue: By Production location Tiles Revenue: By End Markets Tiles Tiles (AED mn) Q4 13 Q4 14
Slide 7: Gross Profits Snapshot
Gross Profits Snapshot Overall gross profit margins in FYE 14 decreased by 0.8% to 26.0% with gross margins from core operations decreasing by 0.5% to 28.2%. Non Core operations gross margins decreased by 1.9% to 16.7% due to lower revenues. Tiles gross margins decreased by 2.0% to 24.4%. Sanitary W
Slide 8: Summary Income statement
Summary Income statement Reported Net Profit of FYE 14 increased by 3.5% to AED 281.7mn with margin increase from 7.7% to 8.6%. Adjusted Net profit is AED 338.3mn with margin increase from 8.4% to 10.3%. EBITDA margin increased from 16.2% to 17.7% Income Statement (AED mn) EBITDA Calculation (AED mn
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights Net debt position decreased by AED 164mn to AED 1,41 bn equivalent to 2.41x EBITDA due to better working capital management in Q4 2014. Total CAPEX for 2014 amounted to AED 282.3mn. Working Capital (AED mn/Days) Dec 13 Days Sep 14 Days Dec 14 Days Trade Receivables ( Net of
Slide 10: Financial Statements
FINANCIAL STATEMENTS Company Confidential 10
Slide 11: Consolidated Net Income
Consolidated Net Income AED million Q4 2013 Q4 2014 FYE 2013 FYE 2014 Revenue 688.7 640.1 3,348.8 3,124.5 Cost of sales (529.5) (509.4) (2,450.0) (2,315.5) Gross profit 159.3 130.7 898.9 809.0 Administrative and general expenses (19.3) (13.2) (250.9) (242.4) Selling and distribution expenses (109.5)
Slide 12: Consolidated Balance Sheet
Consolidated Balance Sheet AED million Assets Dec 2013 Dec 2014 Equity and liabilities Dec 2013 Dec 2014 Non‐current assets Equity Property, plant and equipment 1,117.4 1,180.6 Share capital 743.2 817.5 Capital work‐in‐progress 51.6 73.3 Reserves 1,730.3 1,990.8 Goodwill 50.4 50.4 Equity 2,473.5 2,8
Slide 13: Consolidated Cash Flow
Consolidated Cash Flow AED million Dec 2013 Dec 2014 Dec 2013 Dec 2014 Cash flows from operating activities Cash flows from investing activities Profit for the year before tax 291.6 305.1 Acquisition of property, plant and equipment (112.5) (282.3) Adjustments for: Proceeds from sale of investments
Slide 14: Disclaimer
DISCLAIMER This information contained in the enclosed presentation summarizes preliminary and introductory information on RAK Ceramics PSC (the Company). This presentation has been prepared for information purposes only and is not and does not form part of or constitute any prospectus, offering memo