Slide 1: Caesarstone Investor Presentation 2022
Bunnings LIFE IN STONE Caesarstone Investor Presentation 2022 May 2022
Slide 2: Disclaimer
DISCLAIMER Information provided in this presentation may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward looking state
Slide 3: Company Overview
COMPANY OVERVIEW Leading designer and producer of Premium multi-material engineered surfaces used in residential and commercial projects High Quality Strong Established, Global Strong Growth Premium Products Global Premium Brand Reach Platform Multi Material Customer-centered approach built on cultu
Slide 4: Our Story
OUR STORY We take a grain of sand and turn it into your favorite countertop, a vibrant space of inspiration that is the heart of your home Investor Presentation 2022 4
Slide 5: Our Mission
OUR MISSION To be the first brand of choice for countertops all around the world Investor Presentation 2022 5
Slide 6: Established ESG Vision and Framework
ESTABLISHED ESG VISION AND FRAMEWORK Our success is tightly linked to how well we take care of our customers, employees, communities, and planet. We are commited to Sustainable Environmentally Health & Social Products Responsible Production Safety Responsibility Developing Reducing our carbon footpr
Slide 7: Strategic Pillars Boost Long Term Profitable Growth
STRATEGIC PILLARS BOOST LONG TERM PROFITABLE GROWTH 1. 2. 3. Multi-material, Global Consumer premium footprint experience countertop expansion and customer player engagement GLOBAL GROWTH ACCELERATION PLAN Investor Presentation 2022 7
Slide 8: Global Growth Acceleration Plan
GLOBAL GROWTH ACCELERATION PLAN Strong infrastructure, Operational excellence and innovation all in serve of our vision and strategy, boosting long term profitable growth Company Production Supply Chain Technology Innovative GTM Global culture & talent Efficiency Excellence Transformation by channel
Slide 9: Strategic Pillars Boost Long Term Profitable Growth
STRATEGIC PILLARS BOOST LONG TERM PROFITABLE GROWTH 1. 2. 3. Multi-material, Global Consumer premium footprint experience countertop expansion and customer player engagement GLOBAL GROWTH ACCELERATION PLAN Investor Presentation 2022 9
Slide 10: Premium Multi-Material Offering
PREMIUM MULTI-MATERIAL OFFERING Transforming materials into innovative countertops with Caesarstone’s engineering know-how, craftsmanship and care Quartz Porcelain Natural Stone Investor Presentation 2022 10
Slide 11: R&D Capabilities
R&D CAPABILITIES One step ahead of the competition with our unique skills and decades of experience – Innovation, technology, design, research Unique concrete 1st in market +100 design Groundbreaking new segment to of Quartz and Porcelain Introducing the the engineered stone industry top of the line
Slide 12: Caesarstone Collections
CAESARSTONE COLLECTIONS Design trendsetter powered by proprietary in-house technology Classico Supernatural Metropolitan Outdoor A classic, multi-color collection Luxurious marble & stone Inspired by the trend of raw Inspired by outdoor culture ranges from salt-and-pepper designs inspired by nature
Slide 13: Superior Value Proposition
SUPERIOR VALUE PROPOSITION Quartz & Porcelain Scratch Resistant Stain Resistant Heat Resistant Enduring Quality Easy to Hygienic Nonporous Environmentally Friendly Clean Quartz Porcelain Durable Impact Resistant Extreme Heat Resistant Indoor & Outdoor Investor Presentation 2022 13
Slide 14: Large & Attractive Addressable Market
LARGE & ATTRACTIVE ADDRESSABLE MARKET We have more than tripled our addressable market through penetration of new product categories Material Segmentation Sales Material Segmentation Sales 2016 (By Value) 2020 (By Value) Granite Marble Laminate 30% 7% 8% Solid Surface Other Granite X3 24% 15% 28% En
Slide 15: USA - Our Primary Market
USA - OUR PRIMARY MARKET Accelerated growth of Quartz & Porcelain market share in the fastest growing countertop market USA Total Market Size Countertop Demand by Material 2020-2025 CAGR (By Volume) (% Volume, $ Value1) (By Volume) Marble Granite Total 3.5% ($2.0B) ($5.1B) 6% 71.2M 15% Laminates 1.3
Slide 16: Strategic Pillars Boost Long Term Profitable Growth
STRATEGIC PILLARS BOOST LONG TERM PROFITABLE GROWTH 1. 2. 3. Multi-material, Global Consumer premium footprint experience countertop expansion and customer player engagement GLOBAL GROWTH ACCELERATION PLAN Investor Presentation 2022 16
Slide 17: Our Global Presence
OUR GLOBAL PRESENCE Our products are available worldwide in more than 50 countries Revenue 2021 AMERICAS CANADA 61.3% UK USA APAC CHINA 23.2% ISRAE L INDIA EMEA 9.4% SINGAPORE ISRAEL 6.1% Caesarstone Direct Sales AUSTRALIA Caesarstone Distributors Caesarstone Factories OEM site Investor Presentation
Slide 18: Acquisition of Lioli Ceramica Opens a $300M Market
ACQUISITION OF LIOLI CERAMICA OPENS A $300M MARKET Accelerating global footprint expansion through a multi-material growth strategy • First step in becoming a leading, premium, Global Porcelain Countertop Market1 multi-material player ($M) • Complements the established presence in the Engineered Qua
Slide 19: Acquisition of Omicron Extends USA Footprint
ACQUISITION OF OMICRON EXTENDS USA FOOTPRINT Accelerating global footprint expansion Omicron Footprint • A vertically integrated approach to enhance go-to market capabilities in the U.S. • Omicron augments Caesarstone’s existing network with strategically located distribution centers throughout attr
Slide 20: Strategic Pillars Boost Long Term Profitable Growth
STRATEGIC PILLARS BOOST LONG TERM PROFITABLE GROWTH 1. 2. 3. Multi-material, Global Consumer premium footprint experience countertop expansion and customer player engagement GLOBAL GROWTH ACCELERATION PLAN Investor Presentation 2022 20
Slide 21: Caesarstone Digital & Technology Vision
CAESARSTONE DIGITAL & TECHNOLOGY VISION Leverage digital technologies to own the value chain and create new revenue channels, with closer engagement to our consumers & business partners Data and analysis Market Trends & insights Omni-Channel Personalized Offering touchpoints & Superior Customer Expe
Slide 22: Caesarstone Connect; Pioneering Disruptive Move
CAESARSTONE CONNECT; PIONEERING DISRUPTIVE MOVE, A UNIQUE COMPETITIVE ADVANTAGE A gamechanger solution for kitchen retailers that transforms the way people buy a countertop Platform of a one-stop-shop Quote-to-Cash for Retailers’ including real-time visualization, quotation & order management Invest
Slide 23: CS Connect Expected to Become Significant Revenue Channel
IN THE NEXT 4 YEARS CS CONNECT EXPECTED TO BECOME SIGNIFICANT REVENUE CHANNEL BUSINESS CASE HIGHLIGHTS: • Monthly quotes CANADA pipeline growth • Integration with USA kitchen design solutions 900 • Moving from product to services Retailers Onboard AUSTRALIA CS Connect Phase 1 CS Connect Phase 2 Glob
Slide 24: Financial Summary & Outlook
© én Financial Summary & Outlook @©caesarstone = ee ee
Slide 25: Positioned to Deliver Long-Term Profitable Growth
POSITIONED TO DELIVER LONG- TERM PROFITABLE GROWTH LONG TERM GOAL GUIDANCE Revenue Revenue PERFORMANCE Revenue $710M-$725M With similar adjusted EBITDA margins to $1B FY21 PERFORMANCE $644M With expected increase PERFORMANCE in adjusted EBITDA Revenue margins to mid to high Adj. Gross Margin 1 teen
Slide 26: Revenue & Profitability – Annual View
REVENUE & PROFITABILITY – ANNUAL VIEW Revenue ($M) Adjusted Gross Profit and % Margin ($M) 43.0% 45.5% 42.4% 40.2% 40.1% 39.5% 643.9 33.5% 588.1 575.9 538.5 546.0 28.8% 499.5 27.3% 27.7% 26.8% 486.4 212.5 447.4 189.7 200.2 197.2 162.1 165.7 172.7 356.6 149.1 296.6 127.4 134.9 259.7 104.3 2011 2012 2
Slide 27: Revenue & Profitability - Quarterly Trend
REVENUE & PROFITABILITY- QUARTERLY TREND Revenue ($M) Adjusted Gross Profit and % Margin ($M) 171.1 170.4 30.1% 163.5 163.3 28.1% 26.3% 25.4% 23.3% 146.0 43.9 46.0 42.9 39.9 43.3 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Adj. EBITDA and % Margin ($M) Adj. Net Income and % Margin ($
Slide 28: Q1 2022 Financial Performance
Q1 2022 FINANCIAL PERFORMANCE Revenue ($M) 18.5% CCB Adjusted Gross Margin ($M) 16.7% Reported $43.9 4.7% pp $146.0 $170.4 $43.3 Q1'21 Q1'22 Q1'21 Q1'22 % margin 30.1% 25.4% CCB*: 20.3% 33.5% 0.1% 12.9% • Higher selling prices • higher RM cost • Improved product and regional mix • Higher shipping co
Slide 29: Liquidity, Cash Flow and Capital Deployment
LIQUIDITY, CASH FLOW AND CAPITAL DEPLOYMENT CAPITAL POSITION PROVEN RECORD DISCIPLINED CAPITAL OF CASH GENERATION DEPLOYMENT Cash Position 3-year4 avg. • Global growth 1,2 acceleration $64.2M +50% plan–strong returns operating cash flow M&A flexibility Net Cash Position of Adj. EBITDA • Quarterly di
Slide 30: Adjusted Gross Margin Reconciliation
ADJUSTED GROSS MARGIN RECONCILIATION USD (0,000) 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A Gross profit $78,288 $104,294 $127,395 $162,118 $189,651 $200,225 $212,486 $197,223 $163,414 $148,639 $133,942 $171,498 Non- recurring import related (income) expenses 2,104 (1,50
Slide 31: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION USD (0,000) 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A Net income $29,006 $29,304 $40,367 $64,353 $80,256 $79,458 $76,483 $27,558 $24,568 $12,862 $7,622 $17,889 Interest Expense, net 2,370 4,775 2,773 1,314 1,048 3,085 3,318 5,583 3,639 5,5
Slide 32: Adjusted Net Income Reconciliation
ADJUSTED NET INCOME RECONCILIATION USD (0,000) 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A Net income attributable to controlling interest $28,658 $29,052 $39,632 $63,344 $78,436 $77,766 $74,596 $26,202 $24,405 $12,862 $7,218 $18,966 Legal settlements and loss contingenci
Slide 33: Thank You.
THANK YOU.