Al Hassan Ghazi Ibrahim Shaker Co. · TADAWUL:1214
Al Hassan Ghazi Ibrahim Shaker — Q1 2021 Earnings Presentation
30 slides from Al Hassan Ghazi Ibrahim Shaker's earnings presentation, Mar 31, 2021
Slide 1: Investor Presentation Q1 2021
Shaker Investor Presentation Q1 2021 as at 31 March 2021
Slide 2: Core products
Core products Air Conditioning (A/C) Home Appliances Core products Consumer A/C Commercial A/C Applied A/C Major Domestic Dishwasher Food preparation Split A/C Ceiling concealed Chillers appliances duct A/C Home laundry Irons Window A/C Ducted split Fan coil unit appliances Small cooking Floor stand
Slide 3: Brand portfolio
Brand portfolio Air Conditioners Home Appliances Competitive positioning High-end Brand portfolio Flexibility targets most consumer segments Low-end Functionality Page 3
Slide 4: In focus: LG-Shaker manufacturing
In focus: LG-Shaker manufacturing • Current products: Window, Wall mounted Split units, Concealed units, Cassette units, Free stand units, Single Package units, Air Handling Units • Year opened: 2008 • Site size: 75,000 square meters Integration of robotics 900K units Alignment with Vision and AI to
Slide 5: Attractive industry experiencing growth
Attractive industry experiencing growth Mega projects in Saudi will see investment of 3 Alignment with socioeconomic objectives of in two key areas: Superior technology for the Saudi market Saudi air conditioner market forecast to reach Creation of new sectors 1 and domestic projects Nationwide ener
Slide 6: Highlights: Q1 2021
Highlights: Q1 2021 net profit in revenue Y-o-Y in KSA employee costs Gross profit increase Y-o-Y Ongoing enhancement of Earnings per share reached introduced at the LG- Shaker factory in Riyadh Infrastructure upgraded Page 6
Slide 7: Key messages
Key messages ▪ Rolled out new strategy for growth to ensure the Group’s market leadership in AC units, consumer electronics and appliances, to be carried out until 2023 ▪ Successfully entered the TV segment through addition of Panasonic brand to our portfolio ▪ Sustained pursuit of opportunities eme
Slide 8: Performance highlights
Performance highlights Revenue and Income vs. Margins Q1 2016 – Q1 2021 600.00 30.0% 500.00 20.0% 10.0% 400.00 0.0% 300.00 SAR million -10.0% 200.00 % -20.0% 100.00 -30.0% - -40.0% -100.00 -50.0% -200.00 -60.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2016 2017 2
Slide 9: Strategy overview
Strategy overview • Become top 3 supplier in existing business segments & add new brands and products to portfolio • B2B and after sales revamp – increase presales and capture mega project opportunities • Boost e-commerce sales 2023 targets High single digit percentage • Increase brand awareness and
Slide 10: Business Profile
BUSINESS PROFILE
Slide 11: Growth avenue highlights
Growth avenue highlights AC Sales HA Sales Services & Support Home Housing SEEC Mega projects ESCO & Retrofit Aftersales Appliances 670,000 planned Multifold rise in Multiple mega Growing the size 250,000 Growing houses requiring KSA energy tariff projects under and diversity of the government repla
Slide 12: Financial Performance
FINANCIAL PERFORMANCE Page 12
Slide 13: Sales recovery
Sales recovery Revenue growth driven by improved sales infrastructure 30.5% Segmental revenues (SAR m) Revenue growth in Q1 2021 driven by improved 288.30 sales strategy 267.77 247.50 220.98 1.5 ▪ Enhancements to group-wide IT framework and 196.49 upgraded security infrastructure SAR million ▪ Emplo
Slide 14: Profitability
Profitability Gross Profit (SAR million) Net profit/(loss) (SAR million) % = GP margin % = NP margin 500 200 23% 7% 450 150 400 24% 100 350 3% 50 300 1% 2% 2% 2% 1.6% 0 250 FY FY FY FY FY FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 21% 2015 2016 2017 2018 2019 2020 2019 2019 2019 2019 2020 2020 2020 2020 2021 200
Slide 15: EBITDA & RoE
EBITDA & RoE EBITDA (SAR million) Return on Equity (%) 200 10% 20% 15% 150 10% 5% 100 5% 0% 50 0% FY FY FY FY FY FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -5% 2015 2016 2017 2018 2019 2020 2019 2019 2019 2019 2020 2020 2020 2020 2021 0 -10% FY FY FY FY FY FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -50 2015 2016 2017 2018 20
Slide 16: Rationalizing the workforce
Rationalizing the workforce Rationalizing employee headcount Rationalizing employee costs (SAR 000) 1,800 50,000 1,600 45,000 1,400 40,000 1,200 35,000 1,000 30,000 25,000 800 20,000 600 15,000 400 10,000 200 5,000 0 Q3 2017 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q4 2017 Q1 2018 Q2 2018 Q3
Slide 17: Trade receivables vs. inventory trend
Trade receivables vs. inventory trend Trade Receivable Trend (SAR '000) Inventories Trend (SAR '000) 800,000 700,000 Breakthrough Program introduced 600,000 to reduce costs, optimize inventory 500,000 400,000 Inventory levels increased in 300,000 response to supply shortages 200,000 Q1 Q2 Q3 Q4 Q1 Q
Slide 18: Cash flow: operational and financing
Cash flow: operational and financing Cash Flow From Operations Trend (SAR ‘000) 181,179 195,387 230,399 95,501 95,637 139,035 (3,164) 31,405 2,904 33,594 34,437 40,658 27,818 (17,225) (7,836) (55,658) (31,702) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2017 2017 2017 2018 2018 2018 2018
Slide 19: Capital structure
Capital structure Capital Structure (SAR million / %) 1200 100% 90% 1000 80% 70% 800 60% 600 50% 40% 400 30% 20% 200 10% 0 0% FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Equity LTL STL Debt/Equity % Page 19
Slide 20: STLs & MTLs trend
STLs & MTLs trend Short Term Loans Trend (SAR ‘000) 801,444 797,622 695,160 713,655 704,065 666,666 646,367 531,457 462,062 445,071 412,617 302,667 242,394 237,277 237,330 278,228 299,128 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2
Slide 21: Appendix I: About the Company
APPENDIX I: ABOUT THE COMPANY Page 21
Slide 22: What is Shaker Group?
Exclusive Saudi distributor for five internationally acclaimed home appliances brands: • Maytag (1980) • Ariston (1994) • Indesit (2005) Subsidiary: ESCO • Midea (2008) • Energy saving consultancy • Bissell (2015) and retrofitting services Origins dating What is back to 1950 Shaker Group? Shaker Gro
Slide 23: Corporate milestones
Corporate milestones A history of success stories and key milestones Launched Launch of the Breakthrough KSA Part acquisition Capital increase Air Conditioners Transformation Manufacturing of Energy from SAR 350 (Sole Program (2019) Arm - Joint Management million to SAR Distribution Venture signed S
Slide 24: Shareholding structure & information
Shareholding structure & information Shareholding structure Share information Market Tadawul, Saudi Arabia 12.2% Currency SAR Listing date May 2010 10.0% Financial year-end 31 December Lafana Holding Tawazon Arabia Co Authorized capital (SAR) 630,000,000 5.7% Lama Holding Issued shares 63,000,000 Ot
Slide 25: Appendix II: Financials
APPENDIX II: FINANCIALS Page 25
Slide 26: Income statement
Income statement SAR ‘000 2016 2017 2018 2019 2020 Q1 2021 Sales 1,654,405 1,038,563 774,025 882, 822 932,699 288,301 Cost of sales (1,265,479) (862,615) (675,307) (717,176) (737,139) (230,670) Gross profit 388,926 175,948 98,718 165,646 195,560 57,631 S&D expenses (181,536) (162,530) (140,336) (104
Slide 27: Cash flow statement
Cash flow statement SAR ‘000 2016 2017 2018 2019 2020 Q1 2021 Cash flows from operating activities Profit/(loss) for the period 45,308 (176,745) (202,181) (50,860) 10,134 4,538 Adjustments: 83,296 (69,357) (103,841) 9,223 64,597 21,251 Changes in operating assets & liabilities (18,128) 67,967 220,48
Slide 28: Balance sheet
Balance sheet SAR ‘000 2015 2016 2017 2018 2019 2020 Q1 2021 ASSETS Non-current assets 840,349 860,595 818,770 754,766 719,090 682,851 690,129 Current assets 1,578,631 1,525,842 1,267,065 879,935 748,181 756,813 865,002 Total assets 2,418,980 2,386,437 2,085,835 1,634,701 1,467,271 1,439,664 1,555,1
Slide 29: Disclaimer
Disclaimer This presentation has been prepared solely for use as an investor presentation for Shaker Group (the “Company”). By attending or by reading this presentation, you agree to be bound by the following limitations. The information contained in this presentation is for background purposes only
Slide 30: Contact
CONTACT MR. HOSSAM AKKAD VICE PRESIDENT FINANCE HOSSAM_AKKAD@SHAKER.COM.SA +966-11-2638900 Page 30
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