Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — Q4 & FY 2021 Earnings Presentation
25 slides from Rak Ceramics Pjsc's earnings presentation, February 2022
Slide 1: Earnings Presentation - Q4 & FY 2021 Results
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS FEBRUARY 2022 RAK Ceramics PJSC © 2022 All rights reserved
Slide 2: Attendees
EARNINGS PRESENTATION - Q4 & FY 2021 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 24 years Pramod Kumar Chand is the Group Chief Financial Officer of RAK Ceramics. Mr. Chand exp
Slide 3: Disclaimer
EARNINGS PRESENTATION - Q4 & FY 2021 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: Revenue and profitability surpass pre-pandemic levels
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS Revenue and pro tability surpass pre- pandemic levels MANAGEMENT COMMENTS TOTAL REVENUE (AEDM) REPORTED NET PROFIT (AEDM) RAK Ceramics delivered a robust financial +11.1% +38.4% performance in Q4 and for the full year of 2021. 2,860.7 2,574.5 283.9 Revenu
Slide 5: Q4 2021 Key financial highlights
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS Q4 2021 Key nancial highlights Total revenue increased by +4.5% YoY Total gross profit margin decreased Reported net profit is AED 62.9m and +9.9% QoQ to AED 752.4m driven by -0.8% YoY to 33.6%. Tiles margin compared to AED 65.6m (excl. by growth in India
Slide 6: Q4 2021 Key market highlights
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS Q4 2021 Key market highlights United Arab Emirates Saudi Arabia European recovery Strong quarterly performance Despite the imposition of a 12% Quarterly performance was impacted supported by growth in retail and customs duty, we strengthened our due to hi
Slide 7: FY 2021 Key financial highlights
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS FY 2021 Key nancial highlights Total revenue increased by +21.8% YoY Total gross profit margin Reported net profit in 2021 is AED to AED 2.86bn. FY 2021 revenue increased by +420bps YoY to an all- 283.9m compared to a net loss of AED surpassed pre-pandemi
Slide 8: Net profit bridge
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS Net pro t bridge Q4 2021 VS Q4 2020 (AEDM) 65.6 5.6 -20.6 -9.7 22.1 62.9 236.2 -170.7 Net Loss Q4 Impairment Net Pro t Q4 2020 Higher GP YoY Higher freight costs Higher Fixed Others Net Pro t Q4 2020 losses* (excl. impairments) due to higher rates SG&A 20
Slide 9: Quarterly revenue recovery by end market
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS Quarterly revenue recovery by end market REVENUE BY END MARKET (AED M) QUARTERLY COMPARISON YEARLY COMPARISON Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 2020 FY 2021 Amount Amount Amount Amount Amount YoY QoQ Amount Amount YoY Growth Growth Growth United Arab Emira
Slide 10: Revenue highlights
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS Revenue highlights MANAGEMENT COMMENTS TOTAL REVENUE (AEDM) TILES REVENUE (AEDM) Q4 2021 revenue performance is mainly driven by India, Bangladesh and Middle East markets 2,860.7 1,952.5 supporting by growth in the tableware 1,609.7 2,349.5 business. Tota
Slide 11: Gross profit margins
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS Gross pro t margins MANAGEMENT COMMENTS TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) Total gross profit margin in Q4 2021 decreased 34.4 38.2 36.2 34.8 38.1 36.6 by -80bps YoY to 33.6% and by -460 bps QoQ 33.6 33.2 32.0 31.4 due to an increase in input
Slide 12: Financial highlights
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS Financial highlights QUARTERLY COMPARISON YEARLY COMPARISON Q4 20 Q3 21 Q4 21 FY 2020 FY 2021 Amount in AED M Amount Amount Amount YoY rowth QoQ Growth Amount Amount Growth Revenue 719.7 684.8 752.4 4.5% 9.9% 2,349.5 2,860.7 21.8% Gross margin (%) 34.4% 3
Slide 13: Distribution of dividend
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS Distribution of dividend MANAGEMENT COMMENTS HISTORICAL ANNUAL DIVIDEND PAID 2021 The Board proposed to distribute semi-annual cash dividend of 10 fils per share for second 30.0% half of the year 2021 (AED 99.4million), 25.0% 20.0% 15.0% 15.0% 15.0% 10.0%
Slide 14: Board recommends revision to dividend policy
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS Board recommends revision to dividend policy MANAGEMENT COMMENTS EXISTING POLICY The proposed revision is carried out by the Board to provide its shareholders a visible “RAK Ceramics is committed to returning capital to shareholders vis a sustainable payb
Slide 15: Working capital cycle
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS Working capital cycle MANAGEMENT COMMENTS WORKING CAPITAL CYCLE (AEDM) WORKING CAPITAL CYCLE (LTM DAYS) Inventory days remained stable at 217 days QoQ. Trade receivable days decreased from 102 days 1,371 1,278 1,287 1.328 1,295 in Q3 21 to 94 days in Q4 2
Slide 16: RAK Ceramics Share price movement
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS RAK Ceramics Share price movement AED CURRENT VALUATION (AED M) RAK CERAMICS (RAKCEC) SHARE PRICE PERFORMANCE (AED) VWAP 2.85 05/02/2022 31/12/2020 52 week high 3.02 Amount Amount 52 week low 1.62 Share price 2.9 1.50 4th August 2021 As of 5th Feb 2022 3.
Slide 17: RAKC Bangladesh Share price movement
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS RAKC Bangladesh Share price movement BDT CURRENT VALUATION (USD M) RAKC BD SHARE PRICE PERFORMANCE (BDT) VWAP 53.6 07/02/2022 31/12/2020 52 week high 61.2 Amount Amount 52 week low 26.0 Share price 0.65 0.30 As of 7th Feb 2022 70.0 Number of shares 428 42
Slide 18: 2022 Priorities
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS 2022 Priorities Protect Market Share Improve tableware performance Improve European performance Protect market share in the UAE, Saudi Further improve Tableware performance Improve European operations by Arabia, Bangladesh and faucets with launch of Bone
Slide 19: Appendix
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS Appendix RAK Ceramics PJSC © 2022 All rights reserved 19
Slide 20: Tiles revenues by end market
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS Tiles revenues by end market COMPARISON YEARLY COMPARISON Q4 20 Q3 21 Q4 21 FY 2020 FY 2021 Amount in AED M Amount Amount Amount Growth YoY Growth QoQ Amount Amount Growth United Arab Emirates 133.1 98.4 120.3 (9.7%) 22.3% 481.2 456.8 -5.1% Kingdom of Sau
Slide 21: Sanitaryware revenues by end market
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS Sanitaryware revenues by end market COMPARISON YEARLY COMPARISON Q4 20 Q3 21 Q4 21 FY 2020 FY 2021 Amount in AED M Amount Amount Amount Growth YoY Growth QoQ Amount Amount Growth United Arab Emirates 36.2 33.3 37.0 2.4% 11.4% 133.3 138.7 4.0% Kingdom of S
Slide 22: EBITDA working
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS EBITDA working QUARTERLY COMPARISON YEARLY COMPARISON Q4 20 Q3 21 Q4 21 FY 2020 FY 2021 Amount in AED M Amount Amount Amount Amount Amount Net profit/(loss) after tax (170.7) 63.4 62.9 (126.2) 283.9 Tax 10.2 3.7 12.8 14.6 17.0 Interest- net 18.5 13.7 5.5
Slide 23: Like for Like net profit working
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS Like for Like net pro t working QUARTERLY COMPARISON YEARLY COMPARISON Q4 20 Q3 21 Q4 21 FY 2020 FY 2021 Amount in AED M Amount Amount Amount Amount Amount Net profit /(loss) after tax (170.7) 63.4 62.9 (126.2) 283.9 Add: Impairment on trade receivables 1
Slide 24: Contacts
EARNINGS PRESENTATION - Q4 & FY 2021 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 25: EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS RAK Ceramics PJSC © 2022 All
EARNINGS PRESENTATION - Q4 & FY 2021 RESULTS RAK Ceramics PJSC © 2022 All rights reserved 25
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