Riyadh Cables Group Co. · TADAWUL:4142
Riyadh Cables — 9M 2024 Earnings Presentation
27 slides from Riyadh Cables's earnings presentation, Nov 1, 2024
Slide 1: Earnings Presentation 9M-24
RIYADH CABLES GROUP Earnings Presentation 9M-24 Borjan Sehovac Baha Essa Mouaaz Alyounes Chief Executive Officer Chief Financial Officer Chief Strategy Officer
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Riyadh Cables Group Company (“RCG”) to give a fair view about the company and its operational and financial performance. It reflects management’s expectations and strategy relating to future events which may be subject to unknown factors and unforese
Slide 3: In Today's Meeting
In Today’s Meeting 01 Welcome Remarks 02 Company Overview 03 9M-24 Performance Highlights 04 Financial Review Business Strategy Refresh & Market 05 Update 06 Upgraded Way Forward
Slide 4: Company Overview
Company Overview
Slide 5: Cables are the backbone of the economy, touching every segment
Cables are the backbone of the economy, touching every segment Generation Transmission Distribution End Users Legend Power Data Solar Fossil Onshore Internet ISPs Wind exchange Residencial Datacenters Offshore Wind Industrial Power Transmission Distribution Usages Generation Commercial Nuclear Infra
Slide 6: 9M-24 Performance Highlights
9M-24 Performance Highlights
Slide 7: 9M-24 Financial and Operational Performance Snapshot
9M-24 Financial and Operational Performance Snapshot Percentage changes refer to YoY change SARm 6,511 Kt 170 % 92 Revenue Sales Volume Utilization Rate +11% + 9.7% + 1.8% +30% +5% 167 170 5,387 110 +2% 100 96 138 4,278 +15% +26% SAR 5,387 SARm 733 SARm 563 3,199 Gross Profit Per Ton EBITDA Net Prof
Slide 8: 9M-24 Key Performance Drivers
9M-24 Key Performance Drivers Percentage changes refer to YoY change S a l e s Vol um e 2 % in cre a se in sa le s vo lu m e , so lid s a le s in t ra n sm issio n p ro je c t s , t o ge t h e r wit h re n e wa b le a n d e xp o rt . Re ve nue G o o d d e m a n d-d rive n re ve n u e in cre a se d b
Slide 9: Financial Review
& Financial Review
Slide 10: 9M-24 Financial and Operational Performance
9M-24 Financial and Operational Performance +10% Volumes & Revenues +19% 6,511 3,000 5,936 2,433 • Q3-24 Record high revenue above 2.4bnSAR, strong volume 2,500 2,046 170 increase compared to Q2-24. 167 2,000 58 52 +2% • 9M-24 Record high revenues characterized by strong Local and 1,500 Export deman
Slide 11: Backlog, profitability, and capacity utilization
Backlog, profitability, and capacity utilization +10% +39% +63% SAR 4.9 billion Strong backlog in 9M-24, 6,511 733 4,932 utilization rate to 92 % Confirmed orders 5,936 backlog 528 3,026 Average Capacity Utilization (%) 100% • Solid Backlog on the 5bnSAR level. 2020 78% 22% • Strong Tendering pipeli
Slide 12: Gross profit and EBITDA show healthy improvement on better mix and cost optimization
Gross profit and EBITDA show healthy improvement on better mix and successful variable / fixed cost optimization Gross Profit (SARm) Gross Profit 955 402 • 9M gross profit increased +30% compared to 2023 as a result of 735 improved mix and efficiencies. 270 +30% +49% • On Quarterly basis strong incr
Slide 13: Positive free cash flow generation and consistent dividend payment
Positive free cash flow generation and consistent dividend payment Free Cash Flow 187 52 5 2 -1 255 -24 -45 -100 Inventory and Receivables on a higher side pushing the Free Cash 600 Flow to positive SAR288m. -481 Overall good Working Capital management. 617 288 -779 Provision Trade payable Capex PBT
Slide 14: Hedging and pricing mechanisms neutralize commodity price fluctuations
Hedging and pricing mechanisms neutralize commodity price fluctuations, granting stability to gross profit per tone +26% +34% 5,387 4,278 Gross Profit per ton (SAR/ton) 3,199 4,565 Main drivers: 4,090 • Operational Efficiencies due to high Utilization 3,146 5,961 • High demand on Transmission produc
Slide 15: Business Strategy Refresh & Market Update
Business Strategy Refresh & Market Update
Slide 16: RCG Strategy: Drive Growth and Performance
RCG Strategy: Drive Growth and Performance Deepen And Expand Products And Environment, Social And Cost Leadership Organisation Geographical Footprint Services Innovation Governance Focus Leadership in Complete cables Focus on cost People and Responsible each target solutions and efficiency processes
Slide 17: Overall Demand in Target Markets Displays Attractive Growth Lead by KSA
Overall Demand in Target Markets Displays Attractive Growth Lead by KSA Wires and power cables market size in KSA, rest of GCC1 and Iraq 2019 - 2028F (in SAR Billion) KSA Demand – SAR billion MENA region historic and forecast demand growth 37.4-40.8 +7.6 has exceeded most other markets 10% Iraq +7.5
Slide 18: Clear market leader in the region and amongst the largest global players
Clear market leader in the region and amongst the largest global players KSA Market Share RCGC Sector Leadership Almost 2X capacity as closest regional 38% 38% 1 36% competitor 32% 30% 30% 2 Comprehensive product range 3 Technical leadership 2019 2020 2021 2022 2023 2024 Localisation advantage (high
Slide 19: Upgraded Way Forward
& Way Forward Upgraded
Slide 20: Upgraded 2024 Management Outlook
Upgraded 2024 Management Outlook 2024 TARGETS & GUIDANCE Backlog - WE UPGRADED THE PREVIOUS GUIDANCE - New Guidance Macro trends Expected CAPEX Net Profit SAR ~200 million 40% - 50% increase [Insert target] [Insert target] Product portfolio Previous guidance As per previous guidance 20% - 30% increa
Slide 21: Q&A
Q&A 21
Slide 22: Thank you
Thank you
Slide 23: Appendix
Appendix
Slide 24: Summarized income statement (SARm)
Summarized income statement (SARm) 9M-23 9M-24 Var. Var. % Revenue* 5,936 6,511 575 9.7% Direct costs* -5,201 -5,556 -355 6.8% Gross profit 735 955 220 3.0% Operating expenses -180 -199 -18 10.2% Operating profit 483 689 206 4.3% Finance charges -73 -73 0 0.0% Group net income 385 564 180 4.7% Minor
Slide 25: Condensed balance sheet (SARm)
Condensed balance sheet (SARm) YE-23 9M-24 Fixed Assets 1,281 1,325 Investments 48 51 Other Long Term Assets 13 16 Current Assets 3,489 4,819 Total Assets 4,831 6,212 Borrowings 722 841 Long Term Liabilities 135 136 Current Liabilities (excl. borrowings) 1,728 2,591 Total Liabilities 2,585 3,568 Equ
Slide 26: Condensed cash flow statement (SARm)
Condensed cash flow statement (SARm) 9M-23 9M-24 Var. Var. % Operating cash flow before working capital 736 1,138 403 54.7% Net working capital movement 353 -626 -979 -277.6% Cash generated from operating activities 1,088 512 -576 -52.9% Finance charges, Zakat & income tax, EOSB -110 -124 -13 12.2%
Slide 27: Riyadh Cables Group
Riyadh Cables Group 27