Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — FY2023 Earnings Presentation
26 slides from Rak Ceramics Pjsc's earnings presentation, February 2024
Slide 1: Earnings Presentation – FY23 & Q4 Results
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS EARNINGS PRESENTATION – FY23 & Q4 RESULTS FEBRUARY 2024 RAK Ceramics PJSC © 2024 All rights reserved
Slide 2: Agenda
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS Agenda 01 | Business Highlights 02 | Q4/12M 2023 Financial Performance Update 03 | Trading Update 04 | Closing Remarks 05 | Q&A 06 | Appendix RAK Ceramics PJSC © 2024 All rights reserved 2
Slide 3: Speakers
EARNINGS PRESENTATION – Q4/12M 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 experienc
Slide 4: Disclaimer
EARNINGS PRESENTATION – Q4/12M 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 info
Slide 5: Business Highlights
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS Business Highlights Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2024 All rights reserved 5
Slide 6: Global Business Presence – Revenue Mix
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS Global Business Presence – Revenue Mix Where we sell What we sell Europe Rest of World 22% 9% Middle East 6% Tiles Sanitaryware 58% 15% KSA BANGLADESH 10% Tableware Faucets Others 11% India 11% 11% 13% 3% UAE 31% Capacity 118MN 5MN 36MN 2.6MN Square metres
Slide 7: FYE 2023 Business Performance Highlight
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS FYE 2023 Business Performance Highlight Market & Business Highlights Segment Highlights UAE: Achieved 22.3% YoY revenue growth. Tiles revenue declined by 8.3% YoY to AED 1988.0 KSA: Witnessed 40% YoY revenue dip, however gross margins improved by 1.2
Slide 8: Q4 2023 Key Challenges & Opportunities
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS Q4 2023 Key Challenges & Opportunities Core Markets Key Challenges Our Actions UAE Imports of cheaper products has increased on • Strategic approach centers on adaptability, account of free trade agreements signed between implementing and leveraging on bra
Slide 9: Q4 2023 Key Strategic Updates
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS Q4 2023 Key Strategic Updates Advancements on Expansionary Front. Expansion projects • India: We are upgrading our Tiles production facility to allow us to add new models and design and also improve production efficiencies. • Bangladesh: We have upgraded o
Slide 10: FY23 and Q4 Financial Performance
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS FY23 and Q4 Financial Performance Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2024 All rights reserved 10
Slide 11: Q4 2023 Financial Performance Snapshot
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS Q4 2023 Financial Performance Snapshot Revenue Gross profit margin EBITDA AED 866.4M 35.6% AED 166.0M 3.8% YoY 70 bps YoY 20.7% YoY Net Profit Net Profit after Minority Net Debt AED 81.8M AED 70.9M AED 1.42BN 25.3% YoY* 4.8% YoY 77.5 M * Net profit before
Slide 12: FYE 2023 Financial Performance Snapshot
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS FYE 2023 Financial Performance Snapshot Revenue Gross profit margin EBITDA AED 3.45BN 37.9% AED 647.4M 1.7% YoY 30 bps YoY 12.2% YoY Net Profit Net Profit after Minority Net Debt AED 320.9M AED 290.9M AED 1.42BN 3.7% YoY* 3.9% YoY 120.3 M * Net profit befo
Slide 13: Financial Highlights
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS Financial Highlights Quarterly comparison Yearly Comparison Q4 22 Q3 23 Q4 23 2022 2023 QoQ Amount in AED M Amount Amount Amount YoY Growth Amount Amount YoY Growth Growth Revenue 900.7 837.0 866.4 -3.8% 3.5% 3,517.2 3,457.8 -1.7% Gross margin (%) 34.9% 38
Slide 14: Revenue Highlights
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS Revenue Highlights MANAGEMENT COMMENTS Quarterly Comparison Yearly Comparison Q4 22 Q3 23 Q4 23 2022 2023 • Q4 2023 revenue at AED 866.4m, YoY QoQ Amount Amount Amount Amount Amount Growth down by 3.7% YoY, reflecting global Growth Growth geopolitical tens
Slide 15: Gross Profit Margin
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS Gross Profit Margin MANAGEMENT COMMENTS TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) • Q4 Gross profit margin increased by +70bps YoY to 35.6% due to higher sales in UAE market with better margin and change in product mix. 2023 gross profit margin 38.8%
Slide 16: Profitability Bridge
EARNINGS PRESENTATION – Q3/9M 2023 RESULTS Profitability Bridge 2023 vs 2022 Profit Bridge (AEDM) 3.7% Lower GP due Higher Higher Swing from Others Net Profit One-off Net Profit Lower freight for Net Profit to lower SG&A – Finance KLUDI (Other 2022 gain (net) before one- decreased volumes 2023 reven
Slide 17: Balance Sheet Highlights
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS Balance Sheet Highlights WORKING CAPITAL (AEDM) WORKING CAPITAL CYCLE (LTM DAYS) MANAGEMENT COMMENTS 1,411 1,522 1,569 1,541 1,482 146 156 163 165 172 • Overall working capital cycle increased from 87 90 865 923 941 884 850 84 88 90 146 days in Q4 2022 to
Slide 18: Share Price and Dividend Performance
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS Share Price and Dividend Performance Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2024 All rights reserved 18
Slide 19: RAK Ceramics Share Price Movement
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS RAK Ceramics Share Price Movement AED CURRENT VALUATION (AED M) WAP 2.65 RAK CERAMICS (RAKCEC) SHARE PRICE PERFORMANCE (AED) 52 week high 2.93 5th February 31st December 52 week low 2.38 2024 2022 Amount Amount As of 31st December 2023 Share price 2.70 2.8
Slide 20: Dividend Update
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS Dividend Update MANAGEMENT COMMENTS HISTORICAL ANNUAL DIVIDEND PAID (%) In-line with its dividend policy commitment, the Board proposed to distribute semi-annual cash dividend of 10 fils per share for second half of 2023 (AED 99.4million). This follows a p
Slide 21: Closing Remarks
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS Closing Remarks Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2024 All rights reserved 21
Slide 22: 2024 Priorities
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS 2024 Priorities Protect Market Production Operational Digital Acceleration Share Capabilities Growth Diversification Improve operating model Maintain healthy Rationalize footprint and Explore and diversify into practicing agility and competition across all
Slide 23: Q&A
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS Q&A RAK Ceramics PJSC © 2024 All rights reserved 23
Slide 24: Appendix
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS APPENDIX RAK Ceramics PJSC © 2024 All rights reserved 24
Slide 25: EBITDA Working
EARNINGS PRESENTATION – Q4/12M 2023 RESULTS EBITDA Working Quarterly comparison Yearly comparison Q4 22 Q3 23 Q4 23 2022 2023 Amount in AED M Amount Amount Amount Amount Amount Net profit/(loss) after tax 78.0 83.9 81.8 340.1 320.9 Tax 3.1 8.0 6.6 22.1 24.6 Interest- net 23.0 27.4 27.5 70.9 106.8 De
Slide 26: Thank You
EARNINGS PRESENTATION – Q4/12M 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.