Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — RAK Ceramics — EFG Hermes Investor Conference April 2025
39 slides from Rak Ceramics Pjsc's conference presentation, April 2025
Slide 1: EFG Hermes Investor Conference April 2025
EFG HERMES INVESTOR CONFERENCE APRIL 2025
Slide 2: Contents
Contents 1 Company Overview 2 Segmental Overview 3 Business Update 4 Sustainability Overview 5 Financial Highlights 6 Stock Profile
Slide 3: Company Overview
COMPANY OVERVIEW
Slide 4: RAK Ceramics at a glance
INVESTOR PRESENTATION – FY2024 RAK Ceramics at a glance Leading lifestyle brand offering premium home, bath & kitchen solutions Shareholding Structure +30 YEARS ~ 12,000 24.0% Ceramic expertise Global workforce 36.2% 6.4% 12.0% 13.9% 7.6% ~US$ 700MN ~US$ 1BN H.H. Sheikh Saud Bin Saqr Al Qasimi RAK G
Slide 5: Eras of RAK Ceramics
INVESTOR PRESENTATION – FY2024 Eras of RAK Ceramics 1990-2000 | FOUNDATION 1989 1991 1993 2000 Founded by H.H. Sheikh First tile plant First sanitaryware plant Tile plant set-up in Saud Bin Saqr Al Qasimi, operational with annual operational with annual Bangladesh with annual Ruler of Ras Al Khaimah
Slide 6: Manufacturing Process
INVESTOR PRESENTATION – FY2024 Manufacturing Process 118MN 5MN 36MN 2.6MN Square metres of tiles Pieces of sanitaryware Pieces of tableware Pieces of faucets and taps GERMANY GLOBAL PRODUCTION LAYOUT AUSTRIA 24 plants worldwide IRAN HUNGARY INDIA BANGLADESH UAE 15 Tiles Plant 4 Sanitaryware Plant UA
Slide 7: Our Philosophy
INVESTOR PRESENTATION – FY2024 Our Philosophy To become the world’s leading lifestyle solution provider for home, bath & kitchen solutions LIFESTYLE BRAND INNOVATION HIGH-END QUALITY SUSTAINABILITY We are globally recognized Innovation is at the heart of We are known for our wide We operate in harmo
Slide 8: Segmental Overview
SEGMENTAL OVERVIEW
Slide 9: Product offering
INVESTOR PRESENTATION – FY2024 Product offering TILES SANITARYWARE We offer one of the largest Complete solutions provider collection of Ceramic and Gres offering products designed Porcelain wall and floor tiles, to suit all budgets and tastes super-sized slabs in the with accessories and industry.
Slide 10: Tiles
INVESTOR PRESENTATION – FY2024 Tiles RAK Ceramics offers one of the largest collections of high quality Ceramic and Gres TILES Porcelain Wall and Floor Tiles and Super-Sized Slabs in the industry. 5,000 SANITARYWARE 10x10 The current number 135x305 Our Smallest tile. of production Our largest tile.
Slide 11: Sanitaryware
INVESTOR PRESENTATION – FY2024 Sanitaryware RAK Ceramics is internationally recognized for the high quality of its sanitaryware. This TILES quality comes from carefully selected premium raw materials that ensure a perfect finish of the products. SANITARYWARE 15,616 100 DAYS 100% Sanitaryware pieces
Slide 12: Tableware
INVESTOR PRESENTATION – FY2024 Tableware Ceramic tableware Industry added a new chapter with launch of RAK Porcelain LLC in TILES United Arab Emirates. This company quickly went on to become the World’s leading supplier of professional grade Porcelain tableware in HORECA Industry SANITARYWARE 2005 1
Slide 13: Faucets
INVESTOR PRESENTATION – FY2024 Faucets Kludi GmbH & Co. KG – founded in 1926 in the Sauerland region of Germany – TILES manufacturing high-quality faucets & fittings for bathrooms and kitchens 100 Top 100 Years of 170 100 Innovators SANITARYWARE Inventions Patents In German Experience SME sector TAB
Slide 14: Business Update
BUSINESS UPDATE
Slide 15: Business Highlight - 2024
INVESTOR PRESENTATION – FY2024 Business Highlight - 2024 UAE: Achieved 7.1% YoY KSA: Witnessed 19.5% YoY revenue growth driven by the revenue dip, however market booming real estate sector and has started recovery as favorable market dynamics. . customs duty relief on UAE Tiles revenue declined by
Slide 16: Marketing updates - 2024
INVESTOR PRESENTATION – FY2024 Marketing updates - 2024 Presence and Footprint Launch of the new rakceramics.com Strong relations with the 13 New Showrooms opened in 2024 website. Website metrics: 8% increase majority of the specialized adding to total of 45 showrooms in total users, 52% increase in
Slide 17: Key Challenges - 2024
INVESTOR PRESENTATION – FY2024 Key Challenges - 2024 Core Markets Key Challenges Our Actions Import of cheaper products has increased on account of free • Partnership with reputed developers in the UAE to provide UAE trade agreements signed between UAE and other countries Tiles and Sanitaryware prod
Slide 18: Expansion Plans – 2024/25
INVESTOR PRESENTATION – FY2024 Expansion Plans – 2024/25 • Our Tiles Division is undergoing an upgrade with cutting- edge technology to manufacture differentiated, large-format We have upgraded the plant by converting from UAE tiles catering to high-end markets. India Ceramics to produce GP tiles in
Slide 19: 2025 Priorities
INVESTOR PRESENTATION – FY2024 2025 Priorities Market share growth KLUDI Transformation Retail Expansion & Business, Operations & and preservation Brand awareness Risk management Maintain healthy Transform KLUDI into a global Focus on strengthening retail Optimize operations competition across high-
Slide 20: Sustainability Overview
SUSTAINABILITY OVERVIEW
Slide 21: Sustainability updates - 2024
INVESTOR PRESENTATION – FY2024 Sustainability updates - 2024 Introducing Energy Recycling Upgrading Design Enhancing Introducing efficient Kilns Rejected Tiles Scanning Solutions glazing system E-bikes Recycling Design Digital glazing 70 e-bikes equipment, development system that fully across UAE en
Slide 22: Sustainability Highlights - 2024
INVESTOR PRESENTATION – FY2024 Sustainability Highlights - 2024 1.86% Reduction in energy intensity of tiles 10.06% Savings in overall energy consumption 47,753 m³ Freshwater savings in production compared to 2023 (per in Tableware production compared to Tableware production during 2024 GJ/m2) 2023
Slide 23: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 24: Financial Snapshot - 2024
INVESTOR PRESENTATION – FY2024 Financial Snapshot - 2024 PROFIT BEFORE TAX LIKE FOR LIKE PROFIT REVENUE GROSS MARGIN BEFORE TAX AED 3.23 BN 39.3% AED 299.9M AED276.6M 19.9% YoY 6.5% YoY 143 bps YoY 5.4% YoY* * Adjusted for one-off income/impairments NET DEBT NET PROFIT AFTER TAX NET PROFIT After Min
Slide 25: Profitability Bridge
INVESTOR PRESENTATION – FY2024 Profitability Bridge 2024 vs 2023 Profit Bridge (AEDM) -19.9% 49.5 7.6 1.9 (88.6) (4.7) 345.5 (34.4) (0.2) 276.6 (33.9) (8.7) 234.1 Profit before tax Lower Gross Higher Gross Lower variable Higher SG&A - Higher Finance Lower Other Others Profit before UAE Corporate Res
Slide 26: Revenue Highlights - 2024
INVESTOR PRESENTATION – FY2024 Revenue Highlights - 2024 MANAGEMENT COMMENTS TOTAL REVENUE (AED MN) • 2024 revenue at AED 3,232m, down by +150 6.5% YoY, witnessed by ongoing Tiles SW TW Faucets Others geopolitical tensions, inflationary Countries Exported pressures, and persistent supply chain YEARL
Slide 27: Revenue Contribution - 2024
INVESTOR PRESENTATION – FY2024 Revenue Contribution - 2024 REVENUE CONTRIBUTION BY TILES & SANITARYWARE REVENUE TOTAL REVENUE CONTRIBUTION BY SEGMENT 2024% CONTRIBUTION BY REGION 2024% REGION 2024 % 14.0% 3.0% 7.2% 9.0% 6.6%2.6% 6.7% 11.0% 14.6% 36.2% 36.2% 21.7% 57.0% 15.0% 15.7% 11.6% 5.2% 12.1% 5
Slide 28: Gross Profit Margin Trend - 2024
INVESTOR PRESENTATION – FY2024 Gross Profit Margin Trend - 2024 TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) 36.2% 36.1% 37.9% 39.3% 37.9% 40.8% 33.2% 32.0% 36.6% 35.1% 29.6% 31.4% 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 SANITARYWARE GROSS MARGINS (%) TABLEWARE GROSS MARGINS (
Slide 29: UAE Operations - 2024
UAE Operations- 2024 INVESTOR PRESENTATION – FY2024 MANAGEMENT COMMENTS TOTAL REVENUE (AED BN) GROSS PROFIT MARGIN (%) • In FY 2024 revenue decreased by 6.2% +1070bps -6.2% to AED 1.78bn m due to continued global geopolitical tensions, inflationary trends, and complex supply chain disruptions, which
Slide 30: Bangladesh Operations - 2024
Bangladesh Operations - 2024 INVESTOR PRESENTATION – FY2024 MANAGEMENT COMMENTS REVENUE (AED MN) GROSS PROFIT MARGIN (%) • In FY 2024 revenue decreased by 20.3% -20.3% to AED 212m due to political instability, gas shortages, and currency devaluation have severely impacted our operations. These facto
Slide 31: Indian Operations - 2024
INVESTOR PRESENTATION – FY2024 Indian Operations - 2024 MANAGEMENT COMMENTS REVENUE (AED MN) GROSS PROFIT MARGIN (%) • In 2024, revenue declined by 0.8% year- on-year to AED 379 million, while in local -0.8% currency it increased by +0.6% as the Indian market continues to witness growth, driven by r
Slide 32: Tableware performance trend - 2024
INVESTOR PRESENTATION – FY2024 Tableware performance trend - 2024 MANAGEMENT COMMENTS REVENUE (AED MN) GROSS PROFIT MARGIN (%) • Tableware division experienced a decline -5.8% in both revenue and volume, primarily due to a slowdown in the hospitality sector and supply chain disruptions caused by reg
Slide 33: Kludi Group performance trend - 2024
INVESTOR PRESENTATION – FY2024 Kludi Group performance trend - 2024 MANAGEMENT COMMENTS REVENUE (AED MN) GROSS PROFIT MARGIN (%) • Faucets revenue decreased by 2.5% at AED -2.5% 444.6 million, impacted by geopolitical tensions, challenges in transformation of Kludi Europe owing to inflation, recessi
Slide 34: Balance Sheet Evolution - 2024
INVESTOR PRESENTATION – FY2024 Balance Sheet Evolution - 2024 MANAGEMENT COMMENTS WORKING CAPITAL CYCLE (DAYS) RETURN ON EQUITY (%) • Return on Equity in 2024 is at 9.9%%. 241 226 176 181 119 172 • Inventory days increased by 31 days in 123 145 87 94 90 2024 compared to 2023 84 • Trade receivable da
Slide 35: EBITDA Working
INVESTOR PRESENTATION – FY2024 EBITDA Working YEARLY COMPARISON 2023 2024 Amount in AED M Amount Amount Net profit /(loss) after tax 320.9 234.1 Tax 24.6 42.6 Interest- net 106.8 110.8 Depreciation & amortizations 195.0 207.8 Loss /(gain)on sale of assets and CWIP write-off 0.1 -3.0 EBITDA 647.4 592
Slide 36: Stock Profile
STOCK PROFILE
Slide 37: RAK Ceramics Share Price Movement
INVESTOR PRESENTATION – FY2024 RAK Ceramics Share Price Movement RAK Ceramics (RAKCEC) Share Price Performance (AED) AED RAK CERAMICS (RAKCEC) SHARE PRICE PERFORMANCE (AED) WAP 2.50 3.3 3.1 52 week high 2.79 2.8 2.6 2.50 52 week low 2.29 2.3 2.1 As of 24th March 2025 1.8 CURRENT VALUATION (AED M) LT
Slide 38: Dividend Update
INVESTOR PRESENTATION – FY2024 Dividend Update MANAGEMENT COMMENTS Historical annual Dividend paid (%) • In-line with its dividend policy commitment, the General assembly has approved to distribute semi-annual cash dividend of 10 fils per share for second half of 2024 (AED 99.4million). 5 • This fol
Slide 39: Thank You
Thank You CONTACT US If you have any questions or require further information, please visit corporate.rakceramics.com or contact investor relations team at ir@rakceramics.com
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