Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — Q3 2020 Earnings Presentation
20 slides from Rak Ceramics Pjsc's earnings presentation, November 2020
Slide 1: Earnings Presentation - Q3 & 9M 2020 Results
EARNINGS PRESENTATION - Q3 & 9M 2020 RESULTS EARNINGS PRESENTATION - Q3 & 9M 2020 RESULTS NOVEMBER 2020 RAK Ceramics PJSC © 2020. All rights reserved
Slide 2: Attendees
EARNINGS PRESENTATION - Q3 & 9M 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 Pramod Kumar Chand is the Group Chief Financial Officer of RAK Ceramics. Mr. Chand exp
Slide 3: Disclaimer
EARNINGS PRESENTATION - Q3 & 9M 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 presentatio
Slide 4: Revenue rebound in Q3 except tableware
EARNINGS PRESENTATION - Q3 & 9M 2020 RESULTS Revenue rebound in Q3 20 except tableware MANAGEMENT COMMENTS MONTHLY SEGMENT REVENUE AND AVERAGE TOTAL MONTHLY REVENUE (AEDM) Average total monthly revenue (exc. 198 tableware) rebound to AED 198m in 181 Q3 compared to AED 181m in Q1. 218 207 Q2 average
Slide 5: Key business highlights
EARNINGS PRESENTATION - Q3 & 9M 2020 RESULTS Key business highlights Performance Rebound Strong Growth in Saudi Arabia Significant SG&A Savings Markets show signs of recovery as The restructuring and Integration Recorded significant savings in business performance gained of operations, focus on reta
Slide 6: Performance rebound across global operations
EARNINGS PRESENTATION - Q3 & 9M 2020 RESULTS Performance rebound across global operations UAE Production Optimisation Rebound in Saudi Arabia European Recovery Production running at an optimal Revenue increased by 95.8% YoY European markets have been slow capacity due to increasing driven by tiles b
Slide 7: Q3 2020 Key financial highlights
EARNINGS PRESENTATION - Q3 & 9M 2020 RESULTS Q3 2020 Key financial highlights Total revenue increased by Total gross profit margin Savings in SG&A fixed is AED +0.2% YoY to AED 625.7m mainly decreased by -220bps YoY to 19.7m YoY due to various cost driven by growth in Saudi Arabia 31.1%, due to lowe
Slide 8: Monthly revenue recovery by end market
EARNINGS PRESENTATION - Q3 & 9M 2020 RESULTS Monthly revenue recovery by end market MONTHLY IMPROVEMENTS QUARTERLY COMPARISON YEARLY COMPARISON Q1 20 Q2 20 July 20 Aug 20 Sep 20 Q3 20 Q3 19 9M 20 9M 19 United Arab Emirates 159.5 138.4 50.9 45.5 50.9 147.4 181.7 -18.9% 445.2 553.8 -19.6% Kingdom of S
Slide 9: 9M 2020 Key financial highlights
EARNINGS PRESENTATION - Q3 & 9M 2020 RESULTS 9M 2020 Key financial highlights Total revenue decreased by Total gross profit margin Reported net profit decreased to -13.8% YoY to AED 1.63bn mainly decreased by -210bps YoY to AED 44.5m from AED 155.8m due due to lower revenue in Q2 2020 31.0%, due to
Slide 10: Net profit bridge
EARNINGS PRESENTATION - Q3 & 9M 2020 RESULTS Net profit bridge MANAGEMENT COMMENTS Q3 2020 VS 2019 (AEDM) Revenue increase is +4.8% YoY, -7.1 -8.7 excluding tableware business, as 19.7 -8.1 markets rebound to reach pre- -7.4 COVID levels. Reported revenue remained stable YoY at AED 625.7m 45.6 34.0
Slide 11: Revenue highlights
EARNINGS PRESENTATION - Q3 & 9M 2020 RESULTS Revenue highlights MANAGEMENT COMMENTS TOTAL REVENUE (AEDM) TILES REVENUE (AEDM) Q3 2020 performance gained 1,233.2 1,890.0 1,121.3 momentum across all our businesses 1,629.8 excluding tableware. Total revenue remained stable YoY. 438.8 409.8 625.7 624.7
Slide 12: Gross profit margins
EARNINGS PRESENTATION - Q3 & 9M 2020 RESULTS Gross profit margins TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) MANAGEMENT COMMENTS Total gross margin decreased by 33.3 33.1 -220bps YoY to 31.1% due to lower 31.1 31.0 31.2 29.8 29.9 revenue and lower productivity in 28.5 27.9 28.9 sanitaryware and
Slide 13: Financial highlights
EARNINGS PRESENTATION - Q3 & 9M 2020 RESULTS Financial highlights QUARTERLY COMPARISON YEARLY COMPARISON YEARLY COMPARISON Q3 20 Q2 20 Q3 19 9M 2020 9M 2019 Amount in AED M Amount Amount Growth Amount Growth Amount Amount Growth Revenue 625.7 411.3 52.1% 624.7 0.2% 1,629.8 1,890.0 -13.8% Gross margi
Slide 14: Operating cycle
EARNINGS PRESENTATION - Q3 & 9M 2020 RESULTS Operating cycle MANAGEMENT COMMENTS OPERATING CYCLE (AEDM) OPERATING CYCLE (LTM DAYS) Inventory days decreased from 287 days to 266 days QoQ due to increased QoQ revenue. Trade receivable days increased to 1,694 1,683 1,722 331 333 310 130 days due to inc
Slide 15: 2020 Priorities
EARNINGS PRESENTATION - Q3 & 9M 2020 RESULTS 2020 Priorities Protect Market Share Saudi Arabia Operational Turnaround Protect the UAE, Bangladesh Growth in Saudi Arabia by Turnaround Europe and Indian market share and tableware and emulating the UAE model operations faucets businesses. Export Market
Slide 16: Appendix
EARNINGS PRESENTATION - Q3 & 9M 2020 RESULTS Appendix RAK Ceramics PJSC © 2020. All rights reserved
Slide 17: Tiles revenues by end market
EARNINGS PRESENTATION - Q3 & 9M 2020 RESULTS Tiles revenues by end market QUARTERLY COMPARISON YEARLY COMPARISON Q3 20 Q2 20 Q3 19 9M 20 9M 19 Amount Amount Growth Amount Growth Amount Amount Growth United Arab Emirates 117.0 108.1 8.2% 146.0 -19.9% 348.1 439.2 -20.7% Kingdom of Saudi Arabia 131.4 6
Slide 18: Sanitaryware revenues by end market
EARNINGS PRESENTATION - Q3 & 9M 2020 RESULTS Sanitaryware revenues by end market QUARTERLY COMPARISON YEARLY COMPARISON Q3 20 Q2 20 Q3 19 9M 20 9M 19 Amount Amount Growth Amount Growth Amount Amount Growth United Arab Emirates 30.4 30.3 0.4% 36.5 -16.8% 97.1 114.7 -15.3% Kingdom of Saudi Arabia 6.3
Slide 19: Contacts
EARNINGS PRESENTATION - Q3 & 9M 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
Slide 20: EARNINGS PRESENTATION - Q3 & 9M 2020 RESULTS RAK Ceramics PJSC © 2020. All
EARNINGS PRESENTATION - Q3 & 9M 2020 RESULTS RAK Ceramics PJSC © 2020. All rights reserved 20