Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — Q2 2018 Earnings Presentation
17 slides from Rak Ceramics Pjsc's earnings presentation, August 2018
Slide 1: Q2 2018 Earnings Presentation
Q2 2018 EARNINGS PRESENTATION EARNINGS PRESENTATION Q2 2018 RESULTS AUGUST 2018 RAK Ceramics PJSC © 2018. All rights reserved
Slide 2: Attendees
Q2 2018 EARNINGS PRESENTATION 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 25 years experience Pramod Kumar Chand is the Group Chief Financial Officer of RAK Ceramics. Mr. Chand has in
Slide 3: Disclaimer
Q2 2018 EARNINGS PRESENTATION 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 obligation to
Slide 4: Key business highlights
Q2 2018 EARNINGS PRESENTATION Key business highlights Core business growth India turnaround Saudi Arabia integration Core business growth led by Expansion in Morbi JV and a new Integration of recently acquired strong sales in UAE, India markets greenfield project in Morbi JV’s in progress, focusing
Slide 5: Q2 2018 Key financial highlights
Q2 2018 EARNINGS PRESENTATION Q2 2018 Key financial highlights Core revenues increased by Core gross profit margin SG&A and finance cost (net) +2.6% to AED678.4m YoY. increased by +50bps YoY to reach increased by +17.3% to AED201.9m. Total revenues decreased by all-time high of 34.7% . SG&A increase
Slide 6: H1 2018 Key financial highlights
Q2 2018 EARNINGS PRESENTATION H1 2018 Key financial highlights Core revenues increased by Core gross profit margin Core EBITDA decreased by -8.4% +1.8% to AED1.30bn YoY. increased by +20bps to 33.4% to AED206.3m YoY, with margin Total revenues decreased by compared to H1 2017. of 15.8% a decrease of
Slide 7: Revenue highlights
Q2 2018 EARNINGS PRESENTATION Revenue highlights MANAGEMENT COMMENTS TOTAL REVENUES (AED M) CORE REVENUES (AED M) Total revenue in Q2 2018 1450 1,381 1,402.2 1400 1,305.21,281.7 decreased by -0.3% compared 1088 1050 to Q2 2017. 719.2 661.8 721.1 678.4 626.8 661.1 725 700 Core revenue increased by +2
Slide 8: Tiles revenue by end market
Q2 2018 EARNINGS PRESENTATION Tiles revenue by end market QUARTERLY COMPARISON YEARLY COMPARISON Q2 18 Q1 18 Q2 17 H1 18 H1 17 Amount Amount Growth Amount Growth Amount Amount Growth United Arab Emirates 155.9 156.9 -0.6% 148.3 5.1% 312.8 280.2 11.6% Kingdom of Saudi Arabia* 71.1 55.2 28.9% 59.5 19.
Slide 9: Sanitaryware revenue by end market
Q2 2018 EARNINGS PRESENTATION Sanitaryware revenue by end market QUARTERLY COMPARISON YEARLY COMPARISON Q2 18 Q1 18 Q2 17 H1 18 H1 17 Amount Amount Growth Amount Growth Amount Amount Growth United Arab Emirates 36.1 42.1 -14.3% 38.6 -6.6% 78.2 77.2 1.3% Kingdom of Saudi Arabia* 4.6 5.8 -19.9% 5.1 -9
Slide 10: Revenue contribution
Q2 2018 EARNINGS PRESENTATION Revenue contribution MANAGEMENT COMMENTS CORE AND NON-CORE REVENUE (%) Non-core revenue 5.7% 5.3% 5.5% 8.4% 8.3% 8.6% contribution at 5.7% in Q2 12.9% 13.0% 18.6% 14.7% 16.0% 2018 driven by our strategic focus on divesting non-core operations. During the quarter the rou
Slide 11: Gross profit margins
Q2 2018 EARNINGS PRESENTATION Gross profit margins MANAGEMENT COMMENTS CORE GROSS MARGINS (%) TILES GROSS MARGINS (%) Total gross margin increased 35 34.7 34.2 33.4 33.2 32 30.3 30.1 34.4 32.0 28.6 28.7 26.8 by +110bps compared to Q2 33.3 33.2 30 32.5 2017. 31.8 21 25 Core margin increased by +50bps
Slide 12: Financial highlights
Q2 2018 EARNINGS PRESENTATION Financial highlights FINANCIAL HIGHLIGHTS (AED M) Quarterly Comparison Yearly Comparison Yearly Comparison Q2 18 Q1 18 Q2 17 H1 18 H1 17 Amount Amount Growth Amount Growth Amount Amount Growth Revenue 719.2 661.8 8.7% 721.1 -0.3% 1,381.0 1,402.2 -1.5% Core revenue 678.4
Slide 13: Core net profit and shareholder return
Q2 2018 EARNINGS PRESENTATION Core net profit and shareholder return MANAGEMENT COMMENTS CORE NET PROFIT (AED MN) Core net profit increased by 70.2 67.9 73.1 +14.3% compared to Q1 2018 50.7 48.2 27.3 42.1 41.7 39.5 44.4 41.7 47.7 with a margin improvement of 1.9 +40bps QoQ. -135.8 Q1 15 Q2 15 Q3'15
Slide 14: Operating cycle
Q2 2018 EARNINGS PRESENTATION Operating cycle MANAGEMENT COMMENTS OPERATING CYCLE (LTM DAYS) Inventory days has increased from 239 days in Q1 2018 to 400 289 249 days in Q2 2018 due to 281 286 building raw materials and 300 spare stocks. FG inventory increased by 2 days 249 239 227 from 155 to 157 d
Slide 15: 2018 Priorities
Q2 2018 EARNINGS PRESENTATION 2018 Priorities Maintain/increase market share and profitability of UAE, India, Europe profitability Continue product portfolio Bangladesh, Porcelain improvement optimisation and Kludi-RAK Continue focus on branding roll India turnaround and hub for Optimised production
Slide 16: Contacts
Q2 2018 EARNINGS PRESENTATION 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: +971 7 246 7
Slide 17: Q2 2018 EARNINGS PRESENTATION RAK Ceramics PJSC © 2018. All rights reserved
Q2 2018 EARNINGS PRESENTATION RAK Ceramics PJSC © 2018. All rights reserved 17