Rak Ceramics Pjsc · ADX:RAKCEC

Rak Ceramics Pjsc — Q1 2019 Earnings Presentation

14 slides from Rak Ceramics Pjsc's earnings presentation, May 2019

1. Slide 1: Earnings Presentation - Q1 2019 Results

   EARNINGS PRESENTATION - Q1 2019 RESULTS EARNINGS PRESENTATION - Q1 2019 RESULTS MAY 2019 RAK Ceramics PJSC © 2019. All rights reserved

2. Slide 2: Attendees

   EARNINGS PRESENTATION - Q1 2019 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 22 years experience Pramod Kumar Chand is the Group Chief Financial Officer of RAK Ceramics. Mr. Cha

3. Slide 3: Disclaimer

   EARNINGS PRESENTATION - Q1 2019 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 presentation obl

4. Slide 4: Key business highlights

   EARNINGS PRESENTATION - Q1 2019 RESULTS Key business highlights Business performance Margins improved India turnaround Revenue remained subdued in Total and tiles gross profit margins Commercial production began in tiles as January dispatches have increased with continued focus Morbi Greenfield proj

5. Slide 5: Q1 2019 Key financial highlights

   EARNINGS PRESENTATION - Q1 2019 RESULTS Q1 2019 Key financial highlights Total revenue decreased by Total gross profit margin Reported net profit decreased to -6.3% to AED620.3m YoY due to a increased by +100bps YoY to AED36.9m from AED65.4m with a decrease of -11.6% in tiles 32.8% due to increase i

6. Slide 6: Q1 2019 Net Profit Bridge

   EARNINGS PRESENTATION - Q1 2019 RESULTS Q1 2019 Net Profit Bridge MANAGEMENT COMMENTS NET PROFIT BRIDGE (AEDM) Reported net profit was AED36.9 million, -43.6% YoY. Net profit in Q1 2018 included gain of AED18.9mn on sale of -18.9 -20.7% contracting assets. Excluding gain on sale of contracting asset

7. Slide 7: Revenue highlights

   EARNINGS PRESENTATION - Q1 2019 RESULTS Revenue highlights MANAGEMENT COMMENTS TOTAL REVENUE (AEDM) TILES REVENUE (AEDM) Total revenue in Q1 2019 725.6 decreased by -6.3% YoY. 620.3 661.8 487.8 455.9 Tiles revenue decreased by -11.6% 403.1 YoY due to a decrease in revenue from UAE, Saudi Arabia, Mid

8. Slide 8: Tiles & Sanitaryware revenues by end market

   EARNINGS PRESENTATION - Q1 2019 RESULTS Tiles & Sanitaryware revenues by end market TILES REVENUE BY END MARKET SANITARYWARE REVENYE BY END MARKET Quarterly comparison Yearly comparison Quarterly comparison Yearly comparison Q1 19 Q4 18 Q1 18 Q1 19 Q4 18 Q1 18 Amount Amount Growth Amount Growth Amou

9. Slide 9: Gross profit margins

   EARNINGS PRESENTATION - Q1 2019 RESULTS Gross profit margins MANAGEMENT COMMENTS TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) Total gross margin increased by 32.8 33.0 28.9 +100bps YoY to 32.8% 31.8 27.8 26.8 Tiles margin increased by +90bps YoY to 27.8% driven by continued improvements in operat

10. Slide 10: Financial highlights

    EARNINGS PRESENTATION - Q1 2019 RESULTS Financial highlights FINANCIAL HIGHLIGHTS (AEDM) QUARTERLY COMPARISON YEARLY COMPARISON Q1 19 Q4 18 Q1 18 Amount Amount Growth Amount Growth Revenue 620.3 725.6 -14.5% 661.8 -6.3% Gross margin (%) 32.8% 33.0% -0.2% 31.8% 1.0% EBITDA 97.9 116.5 -16.0% 107.5 -8.

11. Slide 11: Operating cycle

    EARNINGS PRESENTATION - Q1 2019 RESULTS Operating cycle MANAGEMENT COMMENTS OPERATING CYCLE (LTM DAYS) Inventory days decreased from 246 days to 244 days QoQ. 280 297 289 Trade receivable days 271 281 decreased from 108 days to 106 QoQ. Trade payable days increased 256 249 239 from 74 days to 79 day

12. Slide 12: 2019 Priorities

    EARNINGS PRESENTATION - Q1 2019 RESULTS 2019 Priorities Protect growth in UAE, India, Turnaround India and establish Improve profitability in Bangladesh, RAK Porcelain hub for exports Europe and Saudi Arabia and Kludi-RAK Develop strategy to Continue cost efficiencies Optimise production counter inc

13. Slide 13: Contacts

    EARNINGS PRESENTATION - Q1 2019 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 T: +9

14. Slide 14: EARNINGS PRESENTATION - Q1 2019 RESULTS RAK Ceramics PJSC © 2019. All rights reserved

    EARNINGS PRESENTATION - Q1 2019 RESULTS RAK Ceramics PJSC © 2019. All rights reserved 14

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