Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — FY2022 Earnings Presentation
33 slides from Rak Ceramics Pjsc's earnings presentation, February 2023
Slide 1: Earnings Presentation – Q4 & FY 2022 Results
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS FEBRUARY 2023 RAK Ceramics PJSC © 2023 All rights reserved
Slide 2: Agenda
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS Agenda 01 | Executive Summary 02 | Business Highlights 03 | Q4 & FY 2022 Financial Results Update 04 | Trading Update 05 | Closing Remarks 06 | Appendix RAK Ceramics PJSC © 2023 All rights reserved 2
Slide 3: Speakers
EARNINGS PRESENTATION – Q4 & FY 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 experien
Slide 4: Disclaimer
EARNINGS PRESENTATION – Q4 & FY 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 inf
Slide 5: Executive Summary
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS EXECUTIVE SUMMARY Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2023 All rights reserved 5
Slide 6: Q4 & FY 2022 Highlights
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS Q4 & FY 2022 Highlights 2022 in Brief • Record-high full year performance for 2022 despite challenging economic environment, successfully achieved on the back of growth across all core businesses and translating into an all-time high net profit. Volatilit
Slide 7: Business Highlights
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS BUSINESS HIGHLIGHTS Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2023 All rights reserved 7
Slide 8: Q4 2022 Key Market Updates
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS Q4 2022 Key Market Updates United Arab Emirates Saudi Arabia India Bangladesh Europe Strong performance Impact in top-line QoQ Rebound in top-line Macroeconomic Slowdown in bolstered by solid growth has been felt QoQ due to additions conditions weighed ec
Slide 9: Q4 2022 Key Strategic Updates
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS Q4 2022 Key Strategic Updates Advancements on Expansionary Fronts RAK Porcelain Minority Buy- out UAE expansion projects As of the 31st of December 2022, RAK Ceramics ownership in RAK Porcelain • Tiles renovation project finalized; plant is estimated to c
Slide 10: Q4 & FY 2022 Key Challenges
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS Q4 & FY 2022 Key Challenges Critical Parameters Key Challenges Our Action • Translate increase in incurred costs onto selling prices High inflation, seen today no longer while remaining in line with the market High Inflation accelerating, sparked interest
Slide 11: Q4 & FY 2022 Financial Results Update
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS Q4 & FY 2022 FINANCIAL RESULTS UPDATE Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2023 All rights reserved 11
Slide 12: Q4 2022 Performance Snapshot
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS Q4 2022 Performance Snapshot Total revenue increased by +19.7% Total gross profit margin increased by Total EBITDA increased to AED 137.5m YoY to AED 900.7m driven by increase +0.5% YoY to reach 34.2% driven by compared to 122.1m in last year. Margin in T
Slide 13: 2022 Performance Snapshot
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS 2022 Performance Snapshot Total revenue increased by +22.9% Total gross profit margin remained Total EBITDA increased to AED 577.2m YoY to AED 3.52bn in 2022 versus AED stable YoY at 36.1% despite full year in 2022 compared to 501.3m in last 2.86bn in 202
Slide 14: Financial Highlights
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS Financial Highlights QUARTERLY COMPARISON YEARLY COMPARISON Q4 21 Q3 22 Q4 22 2021 2022 Amount in AED M Amount Amount Amount YoY Growth QoQ Growth Amount Amount YoY Growth Revenue 752.4 906.4 900.7 19.7% -0.6% 2,860.7 3,517.2 22.9% Gross margin (%) 33.6%
Slide 15: Revenue Highlights Q4 2022
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS Revenue Highlights Q4 2022 MANAGEMENT COMMENTS QUARTERLY COMPARISON TOTAL REVENUE (AEDM) Total revenue increased by +19.7% YoY to Q4 21 Q3 22 Q4 22 reach AED 900.7m driven by mainly UAE & KSA Tiles TW Others QoQ markets, in addition to faucets consolidati
Slide 16: Revenue Highlights FY 2022
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS Revenue Highlights FY 2022 MANAGEMENT COMMENTS TOTAL REVENUE (AEDM) YEARLY COMPARISON Total revenue in 2022 increased by +22.9% YoY 2021 2022 Tiles TW Others to AED 3.52bn – highest level since 2009 (AED 3.77bn including revenue of AED 1.35bn from SW Fauc
Slide 17: Gross Profit Margins
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS Gross Profit Margins MANAGEMENT COMMENTS TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) Total gross profit margin remained stable at 36.1%, YoY for 2022; growth was hindered by further costs associated with Saudi Custom 37.3 38.9 38.0 35.0 36.2 36.1 36.6
Slide 18: Profitability Bridge
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS Profitability Bridge 2022 vs 2021 Profit Bridge (AEDM) +18.5% 61.9 177.2 47.0 30.8 39.9 19.9 22.9 340.1 309.3 283.9 261.0 Net Profit 2021 Less: Net Base net profit Higher Higher Higher freight Swing from Others Base net profit Net One-off’s Net Profit 202
Slide 19: Balance Sheet Highlights
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS Balance Sheet Highlights MANAGEMENT COMMENTS WORKING CAPITAL (AEDM) WORKING CAPITAL CYCLE (LTM DAYS) Overall working capital cycle decreased from 1,295 1,454 1,428 1,411 1,262 175 167 155 146 149 days in Q3 2022 to 146 days in Q4 2022. In 149 907 863 865
Slide 20: Share Price Update
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS SHARE PRICE UPDATE Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2023 All rights reserved 20
Slide 21: RAK Ceramics Share Price Movement
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS RAK Ceramics Share Price Movement AED CURRENT VALUATION (AED M) RAK CERAMICS (RAKCEC) SHARE PRICE PERFORMANCE (AED) WAP 2.88 07/02/2023 31/12/2021 52 week high 3.27 Amount Amount 52 week low 2.68 Share price 2.85 2.85 3.5 As of 7th February 2023 Number of
Slide 22: Dividend Update
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS Dividend Update MANAGEMENT COMMENTS HISTORICAL ANNUAL DIVIDEND PAID (%) In-line with its dividend policy commitment, the Board proposed to distribute semi-annual cash dividend of 10 fils per share for second half of 2022 (AED 99.4million). This follows a
Slide 23: Closing Remarks
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS CLOSING REMARKS Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2023 All rights reserved 23
Slide 24: 2022 Recap
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS 2022 Recap Core HISTORICAL REVENUE (AEDM) Non Core 3,770 3,515 3,517 3,337 3,337 139 3,168 3,125 3,079 1,353 557 655 2,855 2,861 626 411 462 2,793 2,729 492 240 2,575 111 364 136 2,349 139 131 3,378 2,710 2,780 2,757 2,860 2,662 2,587 2,615 2,593 2,750 2,
Slide 25: 2023 Priorities
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS 2023 Priorities Protect Market Share Production Capabilities Growth Maintain healthy competition across all core markets and Rationalize footprint and increase capacity across all core segments albeit increased challenges businesses via plant additions, e
Slide 26: Q&A
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS Q&A Abdallah Massaad PK Chand Group CEO Group CFO RAK Ceramics PJSC © 2023 All rights reserved 26
Slide 27: Appendix
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS APPENDIX RAK Ceramics PJSC © 2023 All rights reserved 27
Slide 28: Tiles Revenues by End Market
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS Tiles Revenues by End Market QUARTERLY COMPARISON YEARLY COMPARISON Q4 21 Q3 22 Q4 22 2021 2022 Amount in AED M Amount Amount Amount Growth YoY Growth QoQ Amount Amount Growth YoY United Arab Emirates 114.0 126.1 154.0 35.1% 22.2% 434.2 520.4 19.8% Kingdo
Slide 29: Sanitaryware Revenues by End Market
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS Sanitaryware Revenues by End Market QUARTERLY COMPARISON YEARLY COMPARISON Q4 21 Q3 22 Q4 22 2021 2022 Amount in AED M Amount Amount Amount Growth YoY Growth QoQ Amount Amount Growth YoY United Arab Emirates 32.6 33.6 37.7 15.8% 12.4% 123.9 147.7 19.2% Ki
Slide 30: EBITDA Workings
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS EBITDA Workings QUARTERLY COMPARISON YEARLY COMPARISON Q4 21 Q3 22 Q4 22 2021 2022 Amount in AED M Amount Amount Amount Amount Amount Net profit/(loss) after tax 62.9 90.1 78.0 283.9 340.1 Tax 5.5 30.3 (10.6) 17.0 32.2* Interest- net 12.8 20.2 23.0 55.8 7
Slide 31: Like-for-Like Profit Workings
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS Like-for-Like Profit Workings QUARTERLY COMPARISON YEARLY COMPARISON Q4 21 Q3 22 Q4 22 2021 2022 Amount in AED M Amount Amount Amount Net profit /(loss) after tax 62.9 90.1 78.0 283.9 340.1 Add: Extra-ordinary impairment provision on other receivables/ st
Slide 32: Net One-off's Breakdown
EARNINGS PRESENTATION – Q4 & FY 2022 RESULTS Net-one off’s breakdown YEARLY COMPARISON 2021 2022 Amount in AED M Gain on KLUDI Group acquisition accounting - (32.4) Gain on Sale of land in Australia - (42.2) Gain on sale of assets in China - (50.1) Impairment on Investment properties & PPE - 3.8 Ext
Slide 33: Thank You
EARNINGS PRESENTATION – Q4 & FY 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 RAK Ceramics PJSC P.O. Box: 4714, Ras Al Khaimah, United Arab Emirates E. ir@rakceramics