Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — Q2 2022 Earnings Presentation
33 slides from Rak Ceramics Pjsc's earnings presentation, August 2022
Slide 1: Earnings Presentation – Q2 2022 Results
EARNINGS PRESENTATION – Q2 2022 RESULTS EARNINGS PRESENTATION – Q2 2022 RESULTS AUGUST 2022 RAK Ceramics PJSC © 2022 All rights reserved
Slide 2: Agenda
EARNINGS PRESENTATION – Q2 2022 RESULTS Agenda 01 | Executive Summary 02 | Business Strategy Update 03 | Q2 2022 Financial Results Update 04 | Trading Update 05 | Closing Remarks 06 | Appendix RAK Ceramics PJSC © 2022 All rights reserved 2
Slide 3: Speakers
EARNINGS PRESENTATION – Q2 2022 RESULTS Speakers Abdallah Massaad PK Chand Group Chief Executive Officer Group Chief Financial Officer Abdallah Massaad is Group CEO of RAK Ceramics and has more than 24 years Pramod Kumar Chand is Group CFO of RAK Ceramics. Mr. Chand has wide experience experience in
Slide 4: Disclaimer
EARNINGS PRESENTATION – Q2 2022 RESULTS Disclaimer This information contained in the enclosed presentation summarizes preliminary Accordingly all potential recipients are expected to conduct their own due diligence and introductory information on RAK Ceramics PJSC (the Company). This on the informat
Slide 5: Executive Summary
EARNINGS PRESENTATION – Q2 2022 RESULTS EXECUTIVE SUMMARY Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2022 All rights reserved 5
Slide 6: Q2 2022 Highlights
EARNINGS PRESENTATION – Q2 2022 RESULTS Q2 2022 Highlights Remarkably strong performance with positive impact on operational and financial KPIs Unprecedented environment • Rise in inflation as a result of increasing cost of living and challenging supply conditions further increasing global • High en
Slide 7: Q2 2022 Performance Snapshot
EARNINGS PRESENTATION – Q2 2022 RESULTS Q2 2022 Performance Snapshot Total revenue increased by +32.3% Total gross profit margin increased by Total EBITDA increased to AED 164.3m YoY to AED 927.0m driven by growth in +0.3% YoY at 38.4% even after charging compared to AED 129.9m in last year. tiles (
Slide 8: H1 2022 Performance Snapshot
EARNINGS PRESENTATION – Q2 2022 RESULTS H1 2022 Performance Snapshot Total revenue increased by +20.1% Total gross profit margin increased by Total EBITDA increased to AED 294.0m YoY to AED 1.71bn due to increase in +1.2% YoY at 37.8% even after charging compared to AED 256.0m in last year. tiles (+
Slide 9: Business Strategy Update
EARNINGS PRESENTATION – Q2 2022 RESULTS BUSINESS STRATEGY UPDATE Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2022 All rights reserved 9
Slide 10: Q2 2022 Key Market Updates
EARNINGS PRESENTATION – Q2 2022 RESULTS Q2 2022 Key Market Updates United Arab Emirates Saudi Arabia European market Robust performance driven by wholesale and Significant rebound in top-line recorded as Rigid growth in top-line following a retail business supported by growing supply chain disruptio
Slide 11: Q2 2022 Key Strategic Updates
EARNINGS PRESENTATION – Q2 2022 RESULTS Q2 2022 Key Strategic Updates KLUDI Group 100% Acquisition RAK Porcelain Minority Buy-out RAK Ceramics Bangladesh Expansion On the 31st of May 2022, RAK Ceramics RAK Ceramics is currently in the process of completed the transaction of acquiring 100% increasing
Slide 12: Q2 2022 Key Challenges
EARNINGS PRESENTATION – Q2 2022 RESULTS Q2 2022 Key Challenges Critical Parameters Key Challenges Our Action • Translate increase in costs onto selling prices while Inflation surge across the globe fueled by remaining in line with the market increase in cost of living and challenging Rising Inflatio
Slide 13: Q2 2022 Financial Results Update
EARNINGS PRESENTATION – Q2 2022 RESULTS Q2 2022 FINANCIAL RESULTS UPDATE Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2022 All rights reserved 13
Slide 14: Financial Highlights
EARNINGS PRESENTATION – Q2 2022 RESULTS Financial Highlights QUARTERLY COMPARISON YEARLY COMPARISON Q2 21 Q1 22 Q2 22 H1 21 H1 22 Amount in AED M Amount Amount Amount YoY Growth QoQ Growth Amount Amount YoY Growth Revenue 700.8 783.1 927.0 32.3% 18.4% 1,423.5 1,710.1 20.1% Gross margin (%) 38.1% 37.
Slide 15: Revenue Highlights Q2 2022
EARNINGS PRESENTATION – Q2 2022 RESULTS Revenue Highlights Q2 2022 MANAGEMENT COMMENTS QUARTERLY COMPARISON TOTAL REVENUE (AEDM) Total revenue increased by +32.3% YoY to Q2 21 Q1 22 Q2 22 reach AED 927.0m driven by all core markets. Tiles TW Others QoQ QoQ revenue is also higher by +18.4% driven SW
Slide 16: Revenue Highlights H1 2022
EARNINGS PRESENTATION – Q2 2022 RESULTS Revenue Highlights H1 2022 MANAGEMENT COMMENTS TOTAL REVENUE (AEDM) YEARLY COMPARISON Total revenue in H1 2022 increased by +20.1% H1 21 H1 22 Tiles TW Others YoY at AED 1.7bn driven by tiles (+11.9%), SW (+10.3%) and TW (+70.3%) YoY. SW Faucets Amount Amount
Slide 17: Gross Profit Margins
EARNINGS PRESENTATION – Q2 2022 RESULTS Gross Profit Margins MANAGEMENT COMMENTS TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) Total gross profit margin increased in Q2 2022 by +30bps YoY to 38.4% and by +150bps QoQ 40.1 38.1 38.4 39.7 despite higher production costs and the 37.0 36.5 37.8 37.6 37
Slide 18: Profitability Bridge
EARNINGS PRESENTATION – Q2 2022 RESULTS Profitability Bridge Q2 2022 vs Q2 2021 Profit Bridge (AEDM) 26.8 18.4 89.4 12.5 3.3 1.9 22.9 94.9 102.2 71.9 Net Less: Net One- NP (Excl. one- Higher Gross Higher freight Higher SG&A - Kludi Group Others (net) Net one-off’s** Net Profit Q2 22 profit/(loss) of
Slide 19: Balance Sheet Highlights
EARNINGS PRESENTATION – Q2 2022 RESULTS Balance Sheet Highlights MANAGEMENT COMMENTS WORKING CAPITAL (AEDM) WORKING CAPITAL CYCLE (LTM DAYS) Overall working capital cycle decreased from 1,453 166 days in Q1 2022 to 155 days in Q2 2022. In 1,295 1,262 408 1,272 175 166 160 155* 425 434 325 54 54 38 a
Slide 20: Share Price Update
EARNINGS PRESENTATION – Q2 2022 RESULTS SHARE PRICE UPDATE Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2022 All rights reserved 20
Slide 21: RAK Ceramics Share Price Movement
EARNINGS PRESENTATION – Q2 2022 RESULTS RAK Ceramics Share Price Movement AED CURRENT VALUATION (AED M) RAK CERAMICS (RAKCEC) SHARE PRICE PERFORMANCE (AED) WAP 2.87 09/05/2022 31/12/2021 52 week high 3.27 Amount Amount 52 week low 2.31 Share price 2.87 2.85 As of 1st August 2022 Number of shares (in
Slide 22: Dividend Update
EARNINGS PRESENTATION – Q2 2022 RESULTS Dividend Update MANAGEMENT COMMENTS HISTORICAL ANNUAL DIVIDEND PAID 2022 (%) RAK Ceramics is committed to returning capital to shareholders via a sustainable dividend policy, aiming at a minimum payout of 20 fils on a semi-annual basis for FY 2022 subject to c
Slide 23: Closing Remarks
EARNINGS PRESENTATION – Q2 2022 RESULTS CLOSING REMARKS Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2022 All rights reserved 23
Slide 24: Q2 2022 Recap
EARNINGS PRESENTATION – Q2 2022 RESULTS Q2 2022 Recap Sustainable growth supported by solid operational fundamentals QUARTERLY REVENUE (AEDM) 927 2016 2017 2018 2019 2020 2021 2022 QUARTERLY GROSS PROFIT MARGIN 38.4% 2016 2017 2018 2019 2020 2021 2022 RAK Ceramics PJSC © 2022 All rights reserved 24
Slide 25: 2022 Priorities
EARNINGS PRESENTATION – Q2 2022 RESULTS 2022 Priorities Protect market share Production expansion Explore untapped market potential Protect market share across all core Build, acquire and enhance production Increase market share in nascent markets markets and segments albeit increased plants to incr
Slide 26: Short-term Initiatives Prioritized
EARNINGS PRESENTATION – Q2 2022 RESULTS Short-term Initiatives Prioritized Consolidating core Increasing digital businesses adoption Assuring seamless integration of Tapping further into the e-commerce KLUDI Group and finalizing world by incorporating further consolation of RAK Porcelain, business l
Slide 27: Q&A
EARNINGS PRESENTATION – Q2 2022 RESULTS Q&A Abdallah Massaad PK Chand Group CEO Group CFO RAK Ceramics PJSC © 2022 All rights reserved 27
Slide 28: Appendix
EARNINGS PRESENTATION – Q2 2022 RESULTS APPENDIX RAK Ceramics PJSC © 2022 All rights reserved 28
Slide 29: Tiles Revenues by End Market
EARNINGS PRESENTATION – Q2 2022 RESULTS Tiles Revenues by End Market QUARTERLY COMPARISON YEARLY COMPARISON Q2 21 Q1 22 Q2 22 H1 21 H1 22 Amount in AED M Amount Amount Amount Growth YoY Growth QoQ Amount Amount Growth YoY United Arab Emirates 110.7 119.9 137.0 23.8% 14.3% 238.1 256.9 7.9% Kingdom of
Slide 30: Sanitaryware Revenues by End Market
EARNINGS PRESENTATION – Q2 2022 RESULTS Sanitaryware Revenues by End Market QUARTERLY COMPARISON YEARLY COMPARISON Q2 21 Q1 22 Q2 22 H1 21 H1 22 Amount in AED M Amount Amount Amount Growth YoY Growth QoQ Amount Amount Growth YoY United Arab Emirates 30.7 44.1 39.0 27.0% (11.5%) 66.2 83.1 25.6% Kingd
Slide 31: EBITDA Workings
EARNINGS PRESENTATION – Q2 2022 RESULTS EBITDA Workings QUARTERLY COMPARISON YEARLY COMPARISON Q2 21 Q1 22 Q2 22 H1 21 H1 22 Amount in AED M Amount Amount Amount Amount Amount Net profit/(loss) after tax 94.9 69.7 102.2 157.6 171.9 Tax 2.2 6.9 5.4 7.8 12.3 Interest- net 14.0 12.2 15.5 29.2 27.7 Depr
Slide 32: Like-for-Like Profit Workings
EARNINGS PRESENTATION – Q2 2022 RESULTS Like-for-Like Profit Workings QUARTERLY COMPARISON YEARLY COMPARISON Q2 21 Q1 22 Q2 22 H1 21 H1 22 Amount in AED M Amount Amount Amount Net profit /(loss) after tax 94.9 69.7 102.2 157.6 171.9 Add: Extra-ordinary impairment on trade receivables 27.2 - 27.6 27.
Slide 33: Thank You
EARNINGS PRESENTATION – Q2 2022 RESULTS Thank You CONTACT US If you have any questions or require further information, please do not hesitate to contact our investor relations department. Investor Relations Nadine Nasr Investor Relations Manager RAK Ceramics PJSC P.O. Box: 4714, Ras Al Khaimah, Unit