Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — RAK Ceramics PSC — Q4 2015 Earnings Presentation
31 slides from Rak Ceramics Pjsc's earnings presentation, 2016
Slide 1: Close to you worldwide
Close to you worldwide
Slide 2: RAK Ceramics PSC Q4 2015 Results Presentation
RAK CERAMICS PSC Q4 2015 RESULTS PRESENTATION
Slide 3: Disclaimer
Disclaimer This information contained in the enclosed presentation summarizes preliminary and introductory information on RAK Ceramics PSC (the Company). This presentation has been prepared for information purposes only and is not and does not form part of or constitute any prospectus, offering memo
Slide 4: 2015 Highlights
2015 HIGHLIGHTS Mr. Abdallah Massaad, Chief Executive Officer RAK Ceramics. Copyright 2015.
Slide 5: 2015 Operational Highlights
2015 OPERATIONAL HIGHLIGHTS Group Revenue Consolidated GM UAE Raw Material Savings AED3.08bn, -1.5% YoY 28.2%, +230 bps YoY AED 44mn Net Profit Core Business CAPEX Non Core Disposals AED310mn, +10.2% YoY AED257mn, +85% YoY AED 110mn Int’l Core Restructuring Senior Leadership Dividends per Share 25 f
Slide 6: Value Creation Plan Progress
VALUE CREATION PLAN PROGRESS MEDIUM TERM QUICK WINS HIGH BREAK THROUGH INITIATIVES GREATEST POTENTIAL India Strengthen China UAE Materials / Strategy B2B sales Non-core restructuri expansion Energy ng Assets FINANCIAL IMPACT Distributor Bangladesh Tableware JVs & strategy Strategy Iran receivables L
Slide 7: Despite Challenging Macroeconomic and Political Factors
DESPITE CHALLENGING MACROECONOMIC AND POLITICAL FACTORS Oil prices fell sharply Euro depreciated by 10% While our Cost for Natural Gas in UAE Went Up 24% YoY 01/15 04/15 07/15 10/15 01/16 12/14 12/15 RAKCEC 2015 Stock Our stock Performance performance against vs. Regional locally focused Peers peers
Slide 8: Segment Highlights
SEGMENT HIGHLIGHTS
Slide 9: Tile - Revenues
TILE - REVENUES Q4 Tile sales were down 10.2% Tile Revenues by End Market YoY. If we exclude China and Iran where we consciously AED Mns Q4/14 Q4/15 YoY 2014 2015 YoY curtailed production during the UAE 112.0 118.1 5.4% 451.1 482.6 7.0% year and the current issue we India 116.5 82.5 -29.2% 426.4 364
Slide 10: Tile - Margins
TILE - MARGINS Q4/15 Tile margins fell 470ps QoQ but were up 230bps YoY. Tile Gross Margins Results demonstrate raw material procurement, 31.3% transportation and packaging savings and favorable LPG costs in India. Consolidated 27.0% results still reflect ongoing losses (though lower YoY) from the C
Slide 11: Sanitaryware - Revenues
SANITARYWARE - REVENUES Sanitaryware sales fell 3.0% Sanitaryware Revenues by End Market YoY in Q4/15. A very strong performance in the UAE(+15.1% AED Mns Q4/14 Q4/15 YoY 2014 2015 YoY YoY) and Bangladesh (+13.8%) UAE 29.2 33.6 15.1% 123.5 136.9 10.9% was offset by 37% decline in Bangladesh 22.3 25.
Slide 12: Sanitaryware - Margins
SANITARYWARE - MARGINS Q4/15 Sanitaryware margins fell QoQ and YoY but was above H1/15 levels. Sanitaryware Gross Margins In terms of production location, 45.8% Bangladesh margins fell 350bps to 41.4% UAE margins fell 45.0% 240bps 45.2% and India margins fell 160bps YoY to 17.8%. On a QoQ, basis, In
Slide 13: Tableware
TABLEWARE Revenues Tableware Revenues Q4/15 revenues came in at AED38mn. Excluding the 39.0 impact of the acquisition of 36.8 further 20% stake in RAK 34.5 38.3 Europe (we now own 91%), 36.0 36.0 32.3 35.1 35.1 revenues were stable QoQ 30.0 and YoY. Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 A number of product
Slide 14: Non Core
NON CORE Non Core revenues in Q4/15 rose 23.1% QoQ and 10.1% YoY. Higher revenues for the Non Core revenues quarter and year largely reflect higher contribution from 520. Electrogroup, our MEP business. 495. 470. 2015 non core revenues reflect a 445. 420. lower contribution from RAK 395. logistics o
Slide 15: Non Core Margins
NON CORE MARGINS Non Core Margins witnessed a Non Core EBITDA by Segment substantial turnaround in their Non Core EBITDA Q4/14 Q4/15 YoY 2014 2015 YoY profitability in 2015 with non core EBITDA margin increasing AHCC 18.5 10.7 -42.2% 12.3 92.5 652.0% from 13.5% to 35.6%. Turnaround was driven by a E
Slide 16: 2015 Financial Review
2015 FINANCIAL REVIEW Mr. PK Chand, Chief Financial Officer RAK Ceramics. Copyright 2015.
Slide 17: 2015 Financial Highlights
2015 FINANCIAL HIGHLIGHTS 2014 2015 Variance AED Mn Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q4 /15 vs. 2015 vs. Q4/14 2014 Revenue (Net) Tiles 539.8 574.3 542.0 524.3 2,180.4 480.3 514.3 531.5 470.8 1,996.9 -10.2% -8.4% SW 110.1 115.0 111.8 111.6 448.5 110.9 116.2 108.6 108.2 444.0 -3.0% -1.0% Porcelain
Slide 18: EBITDA
EBITDA EBITDA increased by x% YoY from AEDXmn EBITDA Calculation to AEDXmn. EBITDA and EBITDA MarginTrend – Last 8 Quarters Q4/14 Q4/15 2014 2015 Net Profit 74.4 81.9 281.7 310.3 Tax 5.1 6.4 23.4 22.4 D&A 41.3 46.8 164.1 177.9 225. 27.5% Finance Expense 9.8 17.6 39.4 45.4 180. 22.0% 135. 16.5% Loss
Slide 19: Net Profit
NET PROFIT Net Profit (Reported and Adjusted) Q4/14 Q4/15 YoY 2014 2015 YoY Reported Net Profit 74.4 81.9 10.1% 281.7 310.3 10.2% Hyperinflation 4.9 6.0 22.4% 56.6 38.6 -31.8% Adjusted Net Profit 79.3 87.9 10.8% 338.3 349.0 3.2% RAK Ceramics. Copyright 2015. Shown in (AED) Millions 19
Slide 20: Net Debt & Capex Highlights
NET DEBT & CAPEX HIGHLIGHTS Net Debt During the year a short term Net Debt Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 loan of USD 100 mn has been Long Term Loan 770.4 809.3 1,244.5 1,350.3 1,309.7 converted to long term loans. STL & TR 976.9 1,045.3 803.8 629.7 654.7 Maturity profile of long term Overdraft
Slide 21: Working Capital and Dividend Highlights
WORKING CAPITAL AND DIVIDEND HIGHLIGHTS Inventory Days 200 188 175 190 185 187 187 163 180 150 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Receivable Days were flat QoQ and two days Trade Payables Days better YoY. Consolidation of JVs in Germany and the UK in Q4/15 had a (AED16mn) impact. 80 Inventory rose to 187
Slide 22: Closing Comments
CLOSING COMMENTS Mr. Abdallah Massaad, Chief Executive Officer RAK Ceramics. Copyright 2015.
Slide 23: Strategic Update
STRATEGIC UPDATE Branding Project Iran Restart India Turnaround Restructuring of Evaluate Options for further China Plant Distribution JVs SW Expansion Continued Non-Core Inventory Management Opportunistic Acquisitions Disposals RAK Ceramics. Copyright 2015. Shown in (AED) Millions 23
Slide 24: Appendix
APPENDIX RAK Ceramics. Copyright 2015.
Slide 25: Capacity Expansion Guidance
CAPACITY EXPANSION GUIDANCE Tile Production Capacity Tile Capacity 2014A 2015A 2016E 16E/15A Expected Completion SQM millions UAE 81.9 81.9 81.9 India 8.0 8.0 8.0 Bangladesh 8.0 8.0 11.4 43.0% Q1/16 Sudan * 7.9 0 0 China ** 5.4 5.4 5.4 Iran*** 6.0 6.0 6.0 H2/16 Sum 117.2 109.3 112.7 3.1% Shown in Mi
Slide 26: Non Core Asset Disposals
NON CORE ASSET DISPOSALS 2015 disposals were AED 110mn and included 9 disposals Total Assets by Segment: Core & Non Core with most important being Laticrete, Al Hamra, Aluminium and RAK Gypsum, 15 townhouses in RAK and RAK Logistics. 14% The disposal program for Non Core assets is ongoing and has ro
Slide 27: Focus Market Sales Trends
FOCUS MARKET SALES TRENDS United Arab Emirates India 200. 140. 10 160. 105. 10 10.3 34.2 30.1 29.2 32.6 36.3 34.4 33.6 5.8 8.3 7.1 120. 6.2 70. 80. 120.3 121.8 122.4 118.1 101.1 104.9 116.5 93.6 93.8 94.1 111.1 119.9 112 35. 82.5 40. 0. 0. Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q2/14 Q3/14 Q4/14
Slide 28: Consolidated Net Income
CONSOLIDATED NET INCOME Dec 2014 Dec 2015 Revenue 3,124.5 3,078.9 Cost of sales (2,315.5) (2,210.8) Gross profit 809.0 868.0 Administrative and general expenses (242.4) (220.8) Selling and distribution expenses (326.7) (332.1) Other income 69.0 60.3 Results from operating activities 309.0 375.4 Fina
Slide 29: Cash Flow Statement
CASH FLOW STATEMENT Dec-14 Dec-15 Dec-14 Dec-15 Operating activities Cash flows from investing activities Profit for the year before tax 305.1 332.7 Addition to property, plant and equipment and capital work in (282.3) (267.4) progress Proceeds from disposals of property, plant and equipment 3.9 10.
Slide 30: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Assets Dec 2014 Dec 2015 Equity and liabilities Dec 2014 Dec 2015 Non-current assets Equity Property, plant and equipment 1,180.6 1,065.5 Share capital 817.5 817.5 Capital work-in-progress 73.3 182.3 Reserves 1,990.8 1,950.6 Goodwill 50.4 50.4 Equity attributable to owners
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