Rak Ceramics Pjsc · ADX:RAKCEC

Rak Ceramics Pjsc — Q1 2020 Earnings Presentation

15 slides from Rak Ceramics Pjsc's earnings presentation, June 2020

1. Slide 1: Earnings Presentation - Q1 2020 Results

   EARNINGS PRESENTATION - Q1 2020 RESULTS EARNINGS PRESENTATION - Q1 2020 RESULTS JUNE 2020 RAK Ceramics PJSC © 2020. All rights reserved

2. Slide 2: Attendees

   EARNINGS PRESENTATION - Q1 2020 RESULTS 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 22 years experience Pramod Kumar Chand is the Group Chief Financial Officer of RAK Ceramics. Mr. Cha

3. Slide 3: Disclaimer

   EARNINGS PRESENTATION - Q1 2020 RESULTS 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 obl

4. Slide 4: Key highlights Q1 2020

   EARNINGS PRESENTATION - Q1 2020 RESULTS Key highlights Q1 2020 Growth in Saudi Arabia Margin improvement India export growth Increase in revenue supported by Gross profit margins continue to India as a hub to serve export growth in wholesale and projects increase due to the success of the markets ha

5. Slide 5: Measures to manage impact of Covid-19

   EARNINGS PRESENTATION - Q1 2020 RESULTS Measures to manage impact of Covid-19 Covid-19 initiatives Social distancing Production reduction RAK Ceramics was proactive in RAK Ceramics was one of the first In addition to non-factory implementing initiatives designed UAE companies to adopt social employe

6. Slide 6: Q1 2020 Key financial highlights

   EARNINGS PRESENTATION - Q1 2020 RESULTS Q1 2020 Key financial highlights Total revenue decreased by Total gross profit margin Reported net profit decreased by -2.7% YoY to AED 592.8m. On increased by +110bps YoY to -18.1% YoY to AED 30.2m with a constant currency basis, as of Q1 32.7%, driven by an

7. Slide 7: Q1 2020 Net profit bridge

   EARNINGS PRESENTATION - Q1 2020 RESULTS Q1 2020 Net profit bridge MANAGEMENT COMMENTS NET PROFIT BRIDGE Q1 2020 VS Q1 2019 (AED M) Reported net profit in Q1 2020 decreased by -18.1% YoY to AED 30.2m, due to a revenue decrease of AED 16.5m and investing in -6.7 upgraded branding and showrooms, as wel

8. Slide 8: Q1 2020 Tiles and SW revenue by end market

   EARNINGS PRESENTATION - Q1 2020 RESULTS Q1 2020 Tiles and SW revenue by end market TILES SANITARYWARE Q1 20 Q4 19 Q1 19 Q1 20 Q4 19 Q1 19 Amount in AED Million (M) Amount Amount Growth Amount Growth Amount Amount Growth Amount Growth United Arab Emirates 123.0 163.7 -24.9% 141.9 -13.3% 36.5 43.3 -15

9. Slide 9: Revenue highlights

   EARNINGS PRESENTATION - Q1 2020 RESULTS Revenue highlights MANAGEMENT COMMENTS TOTAL REVENUE (AED M) TILES REVENUE (AED M) Total revenue decreased by -2.7% YoY (-1.9% on constant currency basis). Tiles revenue is stable YoY supported 685.3 592.8 609.3 by strong growth in Saudi Arabia and 394.0 428.5

10. Slide 10: Gross profit margins

    EARNINGS PRESENTATION - Q1 2020 RESULTS Gross profit margins TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) MANAGEMENT COMMENTS Total gross margin increased by 32.7 33.6 31.6 +110bps YoY to 32.7%. 29.9 31.2 Tiles margin increased by +330bps 26.6 YoY to 29.9% driven by continued cost reductions and

11. Slide 11: Financial highlights

    EARNINGS PRESENTATION - Q1 2020 RESULTS Financial highlights QUARTERLY COMPARISON YEARLY COMPARISON Q1 20 Q4 19 Q1 19 Amount in AED Million (M) Amount Amount Growth Amount Growth Revenue 592.8 685.3 -13.5% 609.3 -2.7% Gross margin (%) 32.7% 33.6% -0.9% 31.6% 1.1% EBITDA 95.2 134.4 -29.2% 98.8 -3.6%

12. Slide 12: Operating cycle

    EARNINGS PRESENTATION - Q1 2020 RESULTS Operating cycle MANAGEMENT COMMENTS OPERATING CYCLE (AEDM) OPERATING CYCLE (LTM DAYS) Inventory days increased from 258 days to 261 days QoQ due to decreased revenue. 1,722 1,739 1,621 Trade receivable days remain stable 310 310 at 119 days QoQ. 273 Trade paya

13. Slide 13: 2020 Priorities

    EARNINGS PRESENTATION - Q1 2020 RESULTS 2020 Priorities Protect Market Share Saudi Arabia Operational Turnaround Protect the UAE, Bangladesh Growth in Saudi Arabia by Turnaround Indian operations. market share and tableware and emulating the UAE model faucets businesses. Export Markets Branding and

14. Slide 14: Contacts

    EARNINGS PRESENTATION - Q1 2020 RESULTS 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: +9

15. Slide 15: EARNINGS PRESENTATION - Q1 2020 RESULTS RAK Ceramics PJSC © 2020. All rights reserved

    EARNINGS PRESENTATION - Q1 2020 RESULTS RAK Ceramics PJSC © 2020. All rights reserved 15

RAK Ceramics PJSC — Q1 2020 Earnings Presentation on 6ix