Bawan Co. · TADAWUL:1302
Bawan — H1 2024 Earnings Presentation
30 slides from Bawan's earnings presentation, July 2024
Slide 1: Investor Presentation YTD June 2024
INVESTOR PRESENTATION YTD June 2024 Bawan © 2024 All Rights Reserved
Slide 2: Contents
Contents 03 Disclaimer 04 Who We Are 11 Key Highlights 13 Macro Overview 18 Financial Perspective
Slide 3: Disclaimer
Disclaimer This presentation has been prepared solely for use as the earnings presentation of Bawan Company (or “The Group”). By attending or by reading this presentation, you agree to be bound by the following limitations: The information contained in this presentation is for background purposes on
Slide 4: Who We Are
Who We Are
Slide 5: Who We Are: We operate in sectors
Who We Are We operate in 4 sectors * The company signed an SPA to sell its entire share in the concrete industries sector (Bina Holding), and therefore the YTD June 30, 2023 results of the sector were included in the discontinued operations. 5 INVESTOR PRESENTATION, YTD June 2024
Slide 6: Group Structure
Group Structure* * The company signed an SPA to sell its entire share in the concrete industries sector (Bina Holding), and therefore the YTD June 30, 2023 results of the sector were included in the discontinued operations. 6 INVESTOR PRESENTATION, YTD June 2024
Slide 7: Our Clients
Our Clients Our Major Clients Expect High Standards 7 INVESTOR PRESENTATION, YTD June 2024
Slide 8: Vision & Mission
Vision & Mission Vision Mission To enhance Bawan’s customers loyalty by providing Bawan strives to become the leading group in the market-leading and innovative products and Kingdom of Saudi Arabia and the Middle East in the services, through its existing sectors and new capital goods sector. sector
Slide 9: Business Case
Business Case 9 INVESTOR PRESENTATION, YTD June 2024
Slide 10: Strategy
Strategy A well defined strategy enhanced by our core value 10 INVESTOR PRESENTATION, YTD June 2024
Slide 11: Key Highlights
Key Highlights
Slide 12: Key Highlights
Key Highlights Net Operating Interest bearing Operating Revenue Total Asset Net Income EBITDA cash flow Net debt Income YTD June 2024 109.1 357.1 1,516.4 2,023.2 70.2 52.3 107.1 YTD June 2023 124.5 387.8 1,660.5 2,164.0 84.0 59.6 130.9 Change% -12% -8% -9% -7% -16% -12% -17% * The company signed an
Slide 13: Macro Overview
Macro. Overview
Slide 14: Saudi Arabia Outlook
Saudi Arabia Outlook 01 Saudi bank loans granted to non-financial 04 Saudi inflation falls to 1.5% in June 2024. government institutions and the private sector rose 11% to SAR 12.99 trillion YTD May 2024, compared to nearly SAR 11.73 trillion YTD May 2023. 02 Residential real estate finance for indi
Slide 15: Macro Overview: Inflation and Brent Oil Price
Macro Overview Inflation Brent Oil Price The inflation rate in Saudi Arabia decreased by 44% in June Brent oil prices increased 12.7% in June 2024 compared to 2024 compared to June 2023. same period last year. Inflation KSA Brent Oil Price 3.0% $100.00 $92.20 $87.00 $85.00 $90.00 2.5% $75.41 $77.08
Slide 16: Macro Overview: Tadawul Index and Consumer Spending
Macro Overview Tadawul Index Consumer Spending The Tadawul All Share Index (TASI) trend lower as Q2 2024 Consumer spending in Saudi Arabia increased 9% in YTD decreased 6% QoQ. May 2024 comparing to YTD May 2023. Tadawul Index Consumer Spending ( SAR BN ) Q2 2024 11,679.50 Q1 2024 12,402 Jan-24 YTD
Slide 17: Macro Overview: Key Metrics and Market Performance
Macro Overview Key Metrics * annualized July 25 2024 Bawan Market Performance Bawan TASI Bawan Sector Market Cap SAR 2.95B 250 Shares Outstanding 60m Price/earning 22.88 200 Price / book value 3.24 Dividend Yield 3.1% 150 100 Market P/E 18.00 50 P/E excluding lose making & 21.58 aramco - Q1 2023 Q2
Slide 18: Financial Perspective
Financial Perspective
Slide 19: Company Performance
Company Performance Revenue ( SAR Million ) EBITDA ( SAR Million ) 1,750 1,691 200.0 1,700 1,661 157.7 1,650 150.0 130.9 107.1 1,600 100.0 1,550 1,516 1,500 50.0 1,450 1,400 - YTDQ2 2022 June 2022 Q2 YTD 2023 June 2023 YTDQ2 2024 June 2024 YTDQ2 2022 June 2022 Q2June YTD 20232023 YTDQ2 2024 June 202
Slide 20: Liquidity
Liquidity Assets Liabilities Operating Cash Flow 2,500 1,600 180 1,400 160 2,000 186 140 755 1,200 726 201 703 120 1,000 1,500 224 100 800 170 80 1,000 600 1,168 60 124 1,528 1,003 109 1,438 857 1,320 400 40 500 200 20 - - - FY 2022 FY 2023 Q2June YTD 2024 2024 FY 2022 FY 2023 YTDQ2 2024 June 2024 Y
Slide 21: Segment Revenue
Segment Revenue Metal & Wood Revenue Plastic Revenue Electric Revenue 1,200.0 192.0 380.0 1,182.9 372.3 190.0 189.3 370.0 1,150.0 188.0 360.0 1,111.1 186.0 1,100.0 350.0 184.0 182.6 340.0 337.6 182.0 1,050.0 180.0 330.0 996.2 178.0 177.1 319.2 1,000.0 320.0 176.0 310.0 174.0 950.0 300.0 172.0 900.0
Slide 22: Segment Profit
Segment Profit Metal & Wood Profit Plastic Profit Electric Profit 100.0 14.0 45.0 92.9 41.3 12.5 90.0 40.0 12.0 80.0 10.7 10.2 35.0 10.0 30.8 70.0 30.0 60.0 8.0 25.0 50.0 20.0 6.0 40.0 15.0 30.0 4.0 9.6 18.9 10.0 20.0 16.8 2.0 10.0 5.0 - - - YTD June Q2 2022 YTD June Q2 2023 YTD June Q2 2024 YTD Jun
Slide 23: Bawan Returns Annualized
Bawan Returns Annualized ROA ROE 10.0% 30.0% 25.2% 8.1% 8.0% 25.0% 5.7% 6.1% 20.0% 6.0% 14.3% 14.1% 15.0% 4.0% 10.0% 2.0% 5.0% 0.0% 0.0% Q2June YTD 2022 2022 Q2June YTD 2023 2023 YTDQ2 2024 June 2024 YTDQ2 2022 June 2022 YTDQ2 2023 June 2023 YTD Q2 2024 June 2024 ROCE EPS 20.0% 3.50 3.01 14.5% 3.00
Slide 24: Liquidity & Leverage
Liquidity & Leverage Current Ratio Leverage 1.60 1.60 1.46 1.54 1.55 1.40 1.25 1.50 1.20 1.15 1.45 1.43 1.00 1.40 0.80 1.35 1.31 0.60 1.30 0.40 1.25 1.20 0.20 1.15 - FY 2022 FY 2023 YTDQ2 2024 June 2024 FY 2022 FY 2023 YTDQ2 2024 June 2024 24 INVESTOR PRESENTATION, YTD June 2024
Slide 25: Debt Structure
Debt Structure Capital Expenditure Short term debt YTD June 2022 39,845 FY 2022 468,200 19% -38% YTD June 2023 47,365 FY 2023 289,016 YTD June 2024 23,302 -51% YTD June 2024 272,628 -6% Long term debt Total debt FY 2022 126,209 FY 2022 594,409 3% -29% FY 2023 130,401 FY 2023 419,417 YTD June 2024 15
Slide 26: Proficiency Ratios
Proficiency Ratios 100% DIO DRO 90% YTD June Q2 2024 98 YTD June Q2 2024 58 1.84 3.10 2.77 80% FY 2023 94 FY 2023 59 70% FY 2022 87 FY 2022 63 60% 80 85 90 95 100 54 56 58 60 62 64 1.91 2.93 50% 3.06 40% DPO Cash Conversion Cycle 30% Q2 2024 YTD June 65 Q2 2024 YTD June 91 20% 2.06 3.10 2.85 FY 2023
Slide 27: Statement of Income
Statement of Income June 30, 2022 June 30, 2023 June 30, 2024 SR'000 SR'000 SR'000 Revenue 1,691,359 1,660,527 1,516,438 Cost of sales (1,466,832) (1,480,986) (1,348,541) Gross profit 224,527 179,541 167,897 Selling and distribution expenses (45,090) (49,646) (49,601) Administrative expenses (48,644
Slide 28: Balance Sheet
Balance Sheet Dec 31, 2022 Dec 31, 2023 June 30, 2024 SR'000 SR'000 SR'000 Property, plant and equipment 719,943 672,461 666,887 Right-of-use assets 24,545 28,376 26,513 Goodwill and other intangible assets 7,848 4,486 4,537 Other non-current assets 2,487 21,152 5,470 Total non-current assets 754,82
Slide 29: Summarized Cash Flows
Summarized Cash Flows June 30, 2022 June 30, 2023 June 30, 2024 SR'000 SR'000 SR'000 Cash Flow from Operations * 169,668 124,454 109,130 Investing cash flows (39,443) (28,965) (20,227) Financing cash flows (79,324) (159,812) (48,864) Cash and cash equivalents 52,280 58,190 69,963 * before working ca
Slide 30: Thank You!
Thank You! Bawan © 2024 All Rights Reserved