Rak Ceramics Pjsc · ADX:RAKCEC

Rak Ceramics Pjsc — Q1 2022 Earnings Presentation

29 slides from Rak Ceramics Pjsc's earnings presentation, May 2022

Slide 2: Agenda
EARNINGS PRESENTATION – Q1 2022 RESULTS Agenda 01 | Executive Summary 02 | Business Strategy Update 03 | Q1 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 – Q1 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 – Q1 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 6: Q1 2022 Highlights
EARNINGS PRESENTATION – Q1 2022 RESULTS Q1 2022 Highlights Strong Q1 2022 results • Inflation surge following increased demand and continued supply chain challenges despite continued • Russia-Ukraine war weighing in on input costs (Russia being a key supplier of oil and Ukraine being a key challenge
Slide 7: Q1 2022 in Numbers
EARNINGS PRESENTATION – Q1 2022 RESULTS Q1 2022 in Numbers Total revenue increased by +8.3% YoY Total gross profit margin increased by Total EBITDA increased to AED 129.7m and +4.1% QoQ to AED 783.1m driven +2.0% YoY at 37.0% even after charging compared to AED 126.1m in last year. by SW (+13.1%) an
Slide 9: Q1 2022 Key Strategic Updates
EARNINGS PRESENTATION – Q1 2022 RESULTS Q1 2022 Key Strategic Updates United Arab Emirates Saudi Arabia European market Strong quarterly performance due to Despite the imposition of a 12% customs Albeit recorded growth in revenues, higher increased brand exposure and duty, QoQ growth was recorded as
Slide 10: KLUDI Group Acquisition
EARNINGS PRESENTATION – Q1 2022 RESULTS KLUDI Group Acquisition MANAGEMENT COMMENTS RAK Ceramics announced the signing of a Share Purchase Agreement for the 100% acquisition of KLUDI Group (including 49% of KLUDI RAK JV) on 14th of March 2022 KLUDI is an established European faucet brand with manufa
Slide 11: Q1 2022 Key Challenges
EARNINGS PRESENTATION – Q1 2022 RESULTS Q1 2022 Key Challenges Performance To-date Critical Parameters Key Challenges Our Action • Increase pricing selectively to partly translate Inflation surge across the globe additional cost onto consumers while TOTAL REVENUE (AEDM) coupled with increased demand
Slide 13: Financial Highlights
EARNINGS PRESENTATION – Q1 2022 RESULTS Financial Highlights QUARTERLY COMPARISON Q1 21 Q4 21 Q1 22 Amount in AED M Amount Amount Amount YoY Growth QoQ Growth Revenue 722.8 752.4 783.1 8.3% 4.1% Gross margin (%) 35.0% 33.6% 37.0% 2.0% 3.4% EBITDA 126.1 122.1 129.7 2.9% 6.2% Reported net profit/(loss
Slide 14: Revenue Highlights
EARNINGS PRESENTATION – Q1 2022 RESULTS Revenue Highlights MANAGEMENT COMMENTS TOTAL REVENUE (AEDM) QUARTERLY COMPARISON Q1 2022 revenue performance is mainly driven by sanitaryware and tableware segments. Q1 21 Q4 21 Q1 22 Total revenue increased by +8.3% YoY and by 8.3% YoY QoQ +4.1% QoQ to AED 78
Slide 15: Gross Profit Margins
EARNINGS PRESENTATION – Q1 2022 RESULTS Gross Profit Margins MANAGEMENT COMMENTS TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) Total gross profit margin in Q1 2022 increased by +200bps YoY to 37.0% and by +340bps QoQ despite higher input and logistics cost 37.0 35.7 35.0 35.3 and the imposition of
Slide 16: Working Capital
EARNINGS PRESENTATION – Q1 2022 RESULTS Working Capital MANAGEMENT COMMENTS WORKING CAPITAL CYCLE (AEDM) WORKING CAPITAL CYCLE (LTM DAYS) Overall working capital days decreased to an all-time low reaching 167 days. In absolute terms overall working capital decreased by AED 33m amounting to AED 1.26b
Slide 18: RAK Ceramics Share Price Movement
EARNINGS PRESENTATION – Q1 2022 RESULTS RAK Ceramics Share Price Movement AED CURRENT VALUATION (AED M) RAK CERAMICS (RAKCEC) SHARE PRICE PERFORMANCE (AED) WAP 2.74 09/05/2022 31/12/2021 52 week high 3.27 Amount Amount 52 week low 1.92 Share price 2.78 2.85 As of 9th May 2022 3.5 Number of shares (i
Slide 19: RAKC Bangladesh Share Price Movement
EARNINGS PRESENTATION – Q1 2022 RESULTS RAKC Bangladesh Share Price Movement BDT CURRENT VALUATION (USD M) RAKC BD SHARE PRICE PERFORMANCE (BDT) WAP 44.25 09/05/2022 31/12/2021 52 week high 61.20 Amount Amount 52 week low 30.90 Share price 0.55 0.52 As of 9th May 2022 70.0 Number of shares (in Mn) 4
Slide 20: Dividend Update
EARNINGS PRESENTATION – Q1 2022 RESULTS Dividend Update MANAGEMENT COMMENTS HISTORICAL ANNUAL DIVIDEND PAID 2022 RAK Ceramics paid its 2nd half dividends for FY 2021 of AED99.4m (10 fils per share) in March 2022. The revised policy, approved by the Shareholders in the Annual General Meeting held on
Slide 22: 2022 Priorities
EARNINGS PRESENTATION – Q1 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 23: Short-term Initiatives Prioritized
EARNINGS PRESENTATION – Q1 2022 RESULTS Short-term Initiatives Prioritized KLUDI Acquisition Embracing Digitization Working closely to put together a Developing e-commerce platform post-acquisition plan to kick-in and embracing technological following closing date. Target is to excellence moving mor
Slide 26: Tiles Revenues by End Market
EARNINGS PRESENTATION – Q1 2022 RESULTS Tiles Revenues by End Market COMPARISON Q1 21 Q4 21 Q1 22 Amount in AED M Amount Amount Amount Growth YoY Growth QoQ United Arab Emirates 127.4 120.3 119.9 (5.9%) (0.3%) Kingdom of Saudi Arabia 158.3 100.2 119.8 (24.4%) 19.6% Middle East (Ex. UAE and KSA) 19.7
Slide 27: Sanitaryware Revenues by End Market
EARNINGS PRESENTATION – Q1 2022 RESULTS Sanitaryware Revenues by End Market COMPARISON Q1 21 Q4 21 Q1 22 Amount in AED M Amount Amount Amount Growth YoY Growth QoQ United Arab Emirates 35.5 33.9 44.1 24.4% 29.9% Kingdom of Saudi Arabia 3.9 2.5 3.2 (18.0%) 29.7% Middle East (Ex. UAE and KSA) 3.6 4.0
Slide 28: EBITDA and Like-for-Like Profit Workings
EARNINGS PRESENTATION – Q1 2022 RESULTS EBITDA and Like-for-Like Profit Workings QUARTERLY COMPARISON EBITDA WORKING Q1 21 Q4 21 Q1 22 Amount in AED M Amount Amount Amount Net profit/(loss) after tax 62.7 62.9 69.7 Tax 5.6 12.8 6.9 Interest- net 15.3 5.5 12.2 Depreciation & amortizations 42.1 41.0 4
Slide 29: Thank You
EARNINGS PRESENTATION – Q1 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

RAK Ceramics PJSC — Q1 2022 Earnings Presentation on 6ix

Rak Ceramics Pjsc — Q1 2022 Earnings Presentation

Slide 1: Earnings Presentation – Q1 2022 Results

Slide 2: Agenda

Slide 3: Speakers

Slide 4: Disclaimer

Slide 5: Executive Summary

Slide 6: Q1 2022 Highlights

Slide 7: Q1 2022 in Numbers

Slide 8: Business Strategy Update

Slide 9: Q1 2022 Key Strategic Updates

Slide 10: KLUDI Group Acquisition

Slide 11: Q1 2022 Key Challenges

Slide 12: Q1 2022 Financial Results Update

Slide 13: Financial Highlights

Slide 14: Revenue Highlights

Slide 15: Gross Profit Margins

Slide 16: Working Capital

Slide 17: Share Price Update

Slide 18: RAK Ceramics Share Price Movement

Slide 19: RAKC Bangladesh Share Price Movement

Slide 20: Dividend Update

Slide 21: Closing Remarks

Slide 22: 2022 Priorities

Slide 23: Short-term Initiatives Prioritized

Slide 24: Q&A

Slide 25: Appendix

Slide 26: Tiles Revenues by End Market

Slide 27: Sanitaryware Revenues by End Market

Slide 28: EBITDA and Like-for-Like Profit Workings

Slide 29: Thank You