Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — Q3 2023 Earnings Presentation
26 slides from Rak Ceramics Pjsc's earnings presentation, November 2023
Slide 1: Earnings Presentation – Q3/9M 2023 Results
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS EARNINGS PRESENTATION – Q3/9M 2023 RESULTS NOVEMBER 2023 RAK Ceramics PJSC © 2023 All rights reserved
Slide 2: Agenda
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS Agenda 01 | Executive Summary 02 | Business Highlights 03 | Q3/9M 2023 Financial Results Update 04 | Trading Update 05 | Closing Remarks 06 | Appendix RAK Ceramics PJSC © 2023 All rights reserved 2
Slide 3: Speakers
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS Speakers Abdallah Massaad PK Chand Group Chief Executive Officer Group Chief Financial Officer Abdallah Massaad is Group CEO of RAK Ceramics and has more than 25 years Pramod Kumar Chand is Group CFO of RAK Ceramics. Mr. Chand has wide experience experience
Slide 4: Disclaimer
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS Disclaimer This information contained in the enclosed presentation summarizes preliminary Accordingly all potential recipients are expected to conduct their own due diligence and introductory information on RAK Ceramics PJSC (the Company). This on the infor
Slide 5: Executive Summary
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS EXECUTIVE SUMMARY Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2023 All rights reserved 5
Slide 6: Q3 2023 Highlights
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS Q3 2023 Highlights Q3 2023 in Brief • In the face of ongoing global geopolitical conflicts, heightened market volatility, compounding effects of higher interest rates and currency devaluation, the demand and market growth are significantly hampered. These c
Slide 7: Business Highlights
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS BUSINESS HIGHLIGHTS Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2023 All rights reserved 7
Slide 8: Q3 2023 Key Market Updates
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS Q3 2023 Key Market Updates RAK Ceramics RAK India RAK Bangladesh The UAE market poses challenges due to heightened competition and pricing pressure, particularly from Indian and Chinese manufactures, impacting our market Indian market continues Our performa
Slide 9: Q3 2023 Key Strategic Updates
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS Q3 2023 Key Strategic Updates Advancements on Expansionary Front UAE expansion project • Tableware capacity expansion by 10mn pcs completed and commenced trial testing for commercial production. Increase in production will go in phases based on the market d
Slide 10: Q3 2023 Key Challenges
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS Q3 2023 Key Challenges Core Markets Key Challenges Our Actions With the increased relaxation in custom • Implement cost optimization measures and improved duties and anti dumping policies coupled our product mix to sustain profitability UAE with reduced fre
Slide 11: Q3/9M 2023 Financial Results Update
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS Q3/9M 2023 FINANCIAL RESULTS UPDATE Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2023 All rights reserved 11
Slide 12: Q3 2023 Performance Snapshot
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS Q3 2023 Performance Snapshot Total revenue decreased by -7.7% at Total gross profit margin increased by Total EBITDA increased by +15.9% YoY AED 837.0m primarily attributable to +270bps YoY to 37.6% due to higher to AED 169.0m. Margin increased by market vo
Slide 13: 9M 2023 Performance Snapshot
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS 9M 2023 Performance Snapshot Total revenue decreased by -1.0% YoY Total gross profit margin increased by Total EBITDA increased to AED 481.4m to AED 2.59bn primarily attributable to 80bps YoY at 37.6% YoY due to change compared to 439.7m in last year. marke
Slide 14: Financial Highlights
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS Financial Highlights Quarterly comparison Yearly Comparison Q3 22 Q2 23 Q3 23 9M 2022 9M 2023 YoY QoQ YoY Amount in AED M Amount Amount Amount Amount Amount Growth Growth Growth Revenue 906.4 872.0 837.0 -7.7% -4.0% 2,616.5 2,591.4 -1.0% Gross margin (%) 35
Slide 15: Revenue Highlights Q3/9M 2023
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS Revenue Highlights Q3/9M 2023 MANAGEMENT COMMENTS TOTAL REVENUE (AEDM) We are working within a complex global landscape, filled with ongoing geopolitical conflicts, heightened market volatility, rising Quarterly comparison Yearly comparison interest rates,
Slide 16: Gross Profit Margin
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS Gross Profit Margin MANAGEMENT COMMENTS TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) Total gross profit margin increased by +270bps YoY to 37.6% for Q3 2023 mainly due to higher sales in UAE market. In 9M 2023 GP margin is higher by 80bps at 37.6% YoY dr
Slide 17: Profitability Bridge
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS Profitability Bridge Q3 2023 vs Q3 2022 Profit Bridge (AEDM) +13.3% -16.1 -7.0 8.3 -1.9 27.6 -17.0 90.1 83.9 74.0 Q3 2022 Net one-off gain Net Profit excl. Lower GP due to Higher Lower freight Higher Interest Others Q3 2023 net one-off gain lower revenue SG
Slide 18: Balance Sheet Highlights
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS Balance Sheet Highlights MANAGEMENT COMMENTS WORKING CAPITAL (AEDM) WORKING CAPITAL CYCLE (LTM DAYS) Overall working capital cycle increased from 1,428 1,411 1,522 1,570 1,541 149 146 156 163 165 163 days in Q2 2023 to 165 days in Q3 2023. 87 863 865 923 94
Slide 19: Share Price Update
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS SHARE PRICE UPDATE Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2023 All rights reserved 19
Slide 20: RAK Ceramics Share Price Movement
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS RAK Ceramics Share Price Movement CURRENT VALUATION (AED M) AED RAK CERAMICS (RAKCEC) SHARE PRICE PERFORMANCE (AED) WAP 2.69 01/11/2023 31/12/2022 52 week high 2.97 Amount Amount 52 week low 2.38 Share price 2.45 2.83 3.5 As of 1st November 2023 Number of s
Slide 21: Closing Remarks
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS CLOSING REMARKS Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2023 All rights reserved 21
Slide 22: 2023 Priorities
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS 2023 Priorities Protect Market Share Production Capabilities Growth Maintain healthy competition across all core markets and Rationalize footprint and increase capacity across all core segments albeit increased challenges businesses via plant additions, enh
Slide 23: Q&A
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS Q&A Abdallah Massaad PK Chand Group CEO Group CFO RAK Ceramics PJSC © 2023 All rights reserved 23
Slide 24: Appendix
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS APPENDIX RAK Ceramics PJSC © 2023 All rights reserved 24
Slide 25: EBITDA Working
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS EBITDA Working Q3 22 Q2 23 Q3 23 9M 2022 9M 2023 Amount in AED M Amount Amount Amount Amount Amount Net profit/(loss) after tax 90.2 75.1 83.9 262.1 239.1 Tax 6.6 5.0 8.0 18.9 18.0 Interest- net 20.2 27.1 27.4 47.9 79.3 Depreciation & amortization 47.3 48.2
Slide 26: Thank You
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS Thank You CONTACT US If you have any questions or require further information, please do not hesitate to contact our investor relations department. Investor Relations RAK Ceramics PJSC P.O. Box: 4714, Ras Al Khaimah, United Arab Emirates E. ir@rakceramics.c