Slide 1: Caesarstone Investor Presentation
Bunnings Caesarstone Investor Presentation November 2023
Slide 2: Disclaimer
DISCLAIMER Information provided in this presentation may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking state
Slide 3: Company Overview
COMPANY OVERVIEW Leading designer and producer of Premium multi-material engineered surfaces used in residential and commercial projects High Quality Strong Established, Global Strong Growth Premium Products Global Premium Brand Reach Platform Multi Material Customer-centered approach built on cultu
Slide 4: Our Mission
OUR MISSION To be the first brand of choice for countertops all around the world Investor Presentation 2023 4
Slide 5: Established ESG Vision and Framework
ESTABLISHED ESG VISION AND FRAMEWORK Our success is tightly linked to how well we take care of our customers, employees, communities, and planet. We are commited to Sustainable Environmentally Health & Social Products Responsible Production Safety Responsibility Developing Reducing our carbon footpr
Slide 6: Strategic Pillars Boost Long Term Profitable Growth
STRATEGIC PILLARS BOOST LONG TERM PROFITABLE GROWTH 1. 2. 3. Premium material, Global Operational surface player footprint Excellence expansion Investor Presentation 2023 6
Slide 7: Premium Material Offering
PREMIUM MATERIAL OFFERING Transforming materials into innovative countertops with Caesarstone’s engineering know-how, craftsmanship and care Quartz Porcelain Investor Presentation 2023 7
Slide 8: R&D Capabilities
R&D CAPABILITIES One step ahead of the competition with our unique skills and decades of experience – Innovation, technology, design, research Unique concrete 1st in market +100 design Groundbreaking new segment to of Quartz and Porcelain Introducing the the engineered stone industry top of the line
Slide 9: Caesarstone Premium Material Collections
CAESARSTONE PREMIUM MATERIAL COLLECTIONS Design trendsetter powered by proprietary in-house technology Classico Supernatural Metropolitan Outdoor Porcelain A classic, multi-color Luxurious marble & stone Inspired by the trend of raw Inspired by outdoor Breakthrough designs with collection ranges fro
Slide 10: Superior Value Proposition
SUPERIOR VALUE PROPOSITION Quartz & Porcelain Scratch Resistant Stain Resistant Heat Resistant Enduring Quality Easy to Hygienic Nonporous Environmentally Friendly Clean Quartz Porcelain Durable Impact Resistant Extreme Heat Resistant Indoor & Outdoor Investor Presentation 2023 10
Slide 11: Large & Attractive Addressable Market
LARGE & ATTRACTIVE ADDRESSABLE MARKET We increased our addressable market through penetration of new product categories Material Segmentation Sales 2022 (By Value) Marble Laminate 7% 8% Granite Solid Surface 28% 24% $160B1 Global Counter-top Market Porcelain 2% Other 13% Engneered Quartz 18% 1 Sourc
Slide 12: U.S. - Our Primary Market and Opportunity
U.S. - OUR PRIMARY MARKET AND OPPORTUNITY Accelerated growth of Quartz & Porcelain market share in the fastest growing countertop market USA Total Market Size Countertop Demand by Material 2022-2026 CAGR (By Value) (% Volume, $ Value1) (By Volume) Marble Granite Total 4.0% ($2.7B) ($7.1B) 6% 80.9M 1
Slide 13: Strategic Pillars Boost Long Term Profitable Growth
STRATEGIC PILLARS BOOST LONG TERM PROFITABLE GROWTH 1. 2. 3. Premium material, Global Operational surface player footprint Excellence expansion Investor Presentation 2023 13
Slide 14: Our Global Presence
OUR GLOBAL PRESENCE Our products are available worldwide in more than 50 countries Revenue 2022 AMERICAS CANADA 63.7% UK USA APAC ISRAE CHINA 21.8% L INDIA EMEA 9.2% SINGAPORE ISRAEL 5.3% Caesarstone Direct Sales AUSTRALIA Caesarstone Distributors Caesarstone Factories Strategic manufacturing partne
Slide 15: Strategic Pillars Boost Long Term Profitable Growth
STRATEGIC PILLARS BOOST LONG TERM PROFITABLE GROWTH 1. 2. 3. Premium material, Global Operational surface player footprint Excellence expansion Investor Presentation 2023 15
Slide 16: Actions Taken and Focus Areas for 2023
Actions Taken and Focus Areas for 2023 Global restructuring plan aiming to improve cash position, and to support company’s long term goal to improve growth and profitability. Closed Sdot-Yam Plant and shifting capacity to Diversify production capabilities by creating our other production sources net
Slide 17: Financial Summary & Outlook
© én Financial Summary & Outlook @©caesarstone = ee ee
Slide 18: Q3'23 Financial Performance
Q3’23 FINANCIAL PERFORMANCE Revenue ($M) 20.3% CCB Adjusted Gross Margin ($M) 21.2% Reported 3.4% pp $180.7 $41.8 $142.4 $28.1 Q3'22 Q3'23 Q3'22 Q3'23 % margin 23.1% 19.8% • Lower landed cost • Negative impact from volume CCB*: (24.2%) (17.5%) (8.4%) (32.3%) • Improved Production • Higher logistics
Slide 19: Liquidity, Cash Flow and Capital Deployment
LIQUIDITY, CASH FLOW AND CAPITAL DEPLOYMENT CAPITAL POSITION PROVEN RECORD DISCIPLINED CAPITAL OF CASH GENERATION DEPLOYMENT Cash Position 4-year4 avg. • M&A flexibility 1,2 $79.1M +50% • Quarterly dividend operating cash flow policy aligned with Net Cash Position of Adj. EBITDA profits 3 $72.2M Pru
Slide 20: Revenue & Profitability – Annual View
REVENUE & PROFITABILITY – ANNUAL VIEW Revenue ($M) Adjusted Gross Profit and % Margin ($M) 690.8 643.9 28.8% 28.8% 575.9 27.7% 26.8% 546.0 23.8% 486.4 165.7 172.7 164.1 149.1 134.9 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Adj. EBITDA and % Margin ($M) Adj. Net Income and % Margin ($M) 6.3%
Slide 21: Adjusted Gross Margin Reconciliation
ADJUSTED GROSS MARGIN RECONCILIATION USD (0,000) 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A 2022A Gross profit $127,395 $162,118 $189,651 $200,225 $212,486 $197,223 $163,414 $148,639 $133,942 $171,498 $163,245 Non- recurring import related (income) expenses 2,104 (1,501) - - - - - -
Slide 22: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION USD (0,000) 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A 2022A Net income (loss) $40,367 $64,353 $80,256 $79,458 $76,483 $27,558 $24,568 $12,862 $7,622 $17,889 ($56,366) Finance Expense (income), net 2,773 1,314 1,048 3,085 3,318 5,583 3,639 5,578 10,199
Slide 23: Adjusted Net Income Reconciliation
ADJUSTED NET INCOME RECONCILIATION USD (0,000) 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A 2022A Net income (loss) attributable to controlling interest $39,632 $63,344 $78,436 $77,766 $74,596 $26,202 $24,405 $12,862 $7,218 $18,966 ($57,054) Legal settlements and loss contingencies (1
Slide 24: Thank You.
THANK YOU.