Slide 1: Earnings Presentation Q1-25
RIYADH CABLES GROUP Earnings Presentation Q1-25 Borjan Sehovac Baha Essa Mouaaz Alyounes Chief Executive Officer Chief Financial Officer Chief Strategy Officer
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Riyadh Cables Group Company (“RCG”) to give a fair view about the company and its operational and financial performance. It reflects management’s expectations and strategy relating to future events which may be subject to unknown factors and unforese
Slide 3: In Today’s Meeting
In Today’s Meeting 01 Welcome Remarks 02 Company Overview 03 Q1-25 Performance Highlights 04 Financial Review Business Strategy Refresh & Market 05 Update 06 2025 Outlook
Slide 4: Company Overview
Company Overview
Slide 5: Cables are the backbone of the economy, touching every segment
Cables are the backbone of the economy, touching every segment Generation Transmission Distribution End Users Legend Power Data Solar Fossil Onshore Internet ISPs Wind exchange Residencial Datacenters Offshore Wind Industrial Power Transmission Distribution Usages Generation Commercial Nuclear Infra
Slide 6: Q1-25 Performance Highlights
Q1-25 Performance Highlights
Slide 7: Q1-25 Financial and Operational Performance Snapshot
Q1-25 Financial and Operational Performance Snapshot Percentage changes refer to YoY change SARm 2,489 Kt 65 % 95% Revenue Sales Volume Utilization Rate + 22.5% + 8.4% +6% +31% +10% 65 6,330 139 60 58 +8% 116 115 4,667 SAR 6,330 SARm 311 SARm 256 +21% +36% 3,711 Gross Profit Per Ton EBITDA Net Profi
Slide 8: Q1-25 Key Performance Drivers
Q1-25 Key Performance Drivers Percentage changes refer to YoY change S a l e s Vol um e 8 % in cre a se in sa le s vo lu m e , in cre a se in Tra n s m issio n p ro d u ct s , s t ro n g E xp o rt a n d E n e rgy Tra n s it io n p ro d u ct s Re ve nue G o o d d e m a n d-d rive n re ve n u e in cre
Slide 9: Financial Review
& Financial Review
Slide 10: Q1-25 Financial and Operational Performance
Q1-25 Financial and Operational Performance Volumes & Revenues -0,3% +23% 3.000 3,000 2.497 2.489 2,489 2.500 2,500 • Q1-25 High revenues above 2.4bnSAR, strong volume increase 2,032 compared to both Q1/Q4-24. 65 65 2.000 59 2,000 60 • Q1-25 Revenues characterized by strong Domestic and Export 1.500
Slide 11: Backlog, Revenue, and Capacity utilization
Backlog, Revenue, and Capacity utilization +23% +7% SAR 5.2 billion Strong backlog in Q1-25, 2,489 5,167 utilization rate to 95% Confirmed orders 4,840 2,032 backlog Average Capacity Utilization (%) 100% • Solid Backlog on the 5.2 bn SAR 2021 67% 33% (139kT). • Strong Tendering pipeline. 2022 90% 10
Slide 12: Gross profit and EBITDA show healthy improvement on better mix and cost optimization
Gross profit and EBITDA show healthy improvement on better mix and successful variable / fixed cost optimization Gross Profit (SARm) Gross Profit 427 427 • Quarterly gross profit increased by 51% compared to Q1-24, and 332 +29% compared Q4-24, as a result of increased volumes, product 283 mix and ef
Slide 13: Positive free cash flow generation and consistent dividend payment
Positive free cash flow generation and consistent dividend payment Free Cash Flow 18 4 2 157 20 0 -4 -16 • Despite the increase in Receivables the group was able -30 -48 to generate a strong Free Cash Flow of SAR55m mainly through 275 -81 strong profit and provision. • Overall good Working Capital m
Slide 14: Hedging and pricing mechanisms neutralize commodity price fluctuations
Hedging and pricing mechanisms neutralize commodity price fluctuations, granting stability to gross profit per ton +14% +26% 5,550 6,330 Gross Profit per ton (SAR/ton) 4,395 5,494 Main drivers: 4,588 4,089 • Operational Efficiencies due to high Utilization 6,150 7,089 4,650 • Solid demand on Transmi
Slide 15: Market Update & Business Strategy Refresh
Market Update & Business Strategy Refresh
Slide 16: Overall Demand in Target Markets Displays Attractive Growth Lead by KSA
Overall Demand in Target Markets Displays Attractive Growth Lead by KSA Wires and power cables market size in KSA, rest of GCC1 and Iraq 2019 - 2028F (in SAR Billion) KSA Demand – SAR billion MENA region historic and forecast demand growth 37.4-40.8 +4.8% has exceeded most other markets +5.6% 10% Ir
Slide 17: Growth Driven Strategy
Growth Driven Strategy Strategic Growth Pillars KSA Market Share 1 Sustain Dominance in Capacity & Capability 38% 38% 38% 36% 32% 30% 30% 2 Expand Presence in Export markets 3 Deliver Comprehensive Solutions over Products 2019 2020 2021 2022 2023 2024 Q1-25 4 Leverage Advanced Technology to Increase
Slide 18: 2025 Outlook
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Slide 19: 2025 Management Outlook
2025 Management Outlook CONFIRMED UPPER RANGE OF OUR Backlog GUIDANCE Macro trends Expected CAPEX Net Profit SAR ~300 million 8% - 12% increase [Insert target] [Insert target] Product portfolio DIVIDENDS Capacity Management outlook reflects expectations that may happen in the future. These expectati
Slide 20: Q&A
Q&A 23
Slide 21: Thank you
Thank you
Slide 22: Appendix
Appendix
Slide 23: Summarized income statement (SARm)
Summarized income statement (SARm) Q1-24 Q1-25 Var. Var. % Revenue* 2.032 2.489 457,5 22,5% Direct costs* -1.748 -2.062 -313,9 18,0% Gross profit 283 427 143,6 50,7% Operating expenses -79 -134 -54,8 69,2% Operating profit 204 293 88,8 43,5% Finance charges -20 -18 2,7 -13,2% Other income / expenses
Slide 24: Condensed balance sheet (SARm)
Condensed balance sheet (SARm) FY-24 Q1-25 Fixed Assets 1,403 1,434 Investments 58 52 Other Long Term Assets 17 81 Current Assets 4,334 4,689 Total Assets 5,812 6,256 Borrowings 433 487 Long Term Liabilities 139 146 Current Liabilities (excl. borrowings) 2,616 2,724 Total Liabilities 3,188 3,357 Equ
Slide 25: Condensed cash flow statement (SARm)
Condensed cash flow statement (SARm) Q1-24 Q1-25 Var. Var. % Operating cash flow before working capital 348 419 71 20.5% Net working capital movement -281 -321 -40 14.3% Cash generated from operating activities 67 98 31 46.4% Finance charges, Zakat & income tax, EOSB 2 4 2 101.1% Net cash flow from
Slide 26: Riyadh Cables Group
Riyadh Cables Group 29