Bawan Co. · TADAWUL:1302
Bawan — Q3 2021 Earnings Presentation
27 slides from Bawan's earnings presentation, 2021
Slide 1: Earnings Presentation Q3 2021
EARNINGS PRESENTATION Q3 2021 | EARNINGS REPORT | Q3 2021 | BAWAN
Slide 2: Disclaimer
Disclaimer This presentation has been prepared solely for use as the earnings presentation of Bawan Company (or “The Group”). By attending or by reading this presentation, you agree to be bound by the following limitations: • The information contained in this presentation is for background purposes
Slide 3: COVID 19 Update
COVID 19 UPDATE • As the COVID19- situation is still fluid and evolving, currently it is difficult to measure the complete extent and duration of the economic impact. Possible effects of the outbreak of COVID-19 may include, but are not limited to, disruption to the Group’s operations, its revenue a
Slide 4: Who We Are
Who We Are We operate in 5 sectors: | EARNINGS REPORT | Q3 2021 | BAWAN
Slide 5: Group Structure
Group Structure 3 | EARNINGS REPORT | Q3 2021 | BAWAN
Slide 6: Our Factory Locations
Our Factory Locations | EARNINGS REPORT | Q3 2021 | BAWAN
Slide 7: Our Major Clients Expect High Standards
Our Major Clients Expect High Standards | EARNINGS REPORT | Q3 2021 | BAWAN
Slide 8: Key Highlights
Key Highlights • On February 11,2020, one of the plastic sector factories caught fire which resulted in damage to assets having a net book value of SR 17.69 million. • The plastic sector has insurance coverage of SR 42.36 million against a loss caused by such an incident and to compensate for losses
Slide 9: Vision Mission
VISION MISSION Bawan strives to become the leading group in the Kingdom of To enhance Bawan’s customers loyalty by providing market-leading and Saudi Arabia and the Middle East in the building materials sector. innovative products and services, through its existing sectors and new sectors in the fut
Slide 10: Business Case
Business Case Strong & Diversified Unique Business Mix Barriers to Entry Customer Base Investment in quality assets, systems, and people Qualified & Experienced Exposure to high growth Lengthy customer pre-qualification processes Management Team sectors Long-term customer relationships | EARNINGS RE
Slide 11: Strategy
Strategy A well defined strategy enhanced by our core value Strengthen relationship Continue to improve Invest in New Products Expand Product Capacity Enhance Existing Product Pursue Selective Acquisitions with existing customers operations | EARNINGS REPORT | Q3 2021 | BAWAN
Slide 12: Financial Perspective
Financial Perspective HELLO | EARNINGS REPORT | Q3 2021 | BAWAN
Slide 13: Operations Evolution
Operations Evolution Revenue Gross profit 2,500 2,378 350.0 313.8 300.0 2,000 1,642 1,714 250.0 228.4 1,500 187.2 200.0 150.0 1,000 100.0 500 50.0 - - Sept 30, 2019 Sept 30, 2020 Sept 30, 2021 Sept 30, 2019 Sept 30, 2020 Sept 30, 2021 Net income EBITDA 140.0 250.0 125.7 209.9 120.0 200.0 100.0 150.0
Slide 14: Margins Evolution
Margins Evolution Gross Profit Margin EBITDA Margin 13.5% 13.3% 10.0% 13.2% 9.0% 8.8% 13.0% 8.2% 8.0% 12.5% 7.0% 6.7% 6.0% 12.0% 5.0% 11.5% 11.4% 4.0% 11.0% 3.0% 2.0% 10.5% 1.0% 10.0% 0.0% Sept 30, 2019 Sept 30, 2020 Sept 30, 2021 Sept 30, 2019 Sept 30, 2020 Sept 30, 2021 Net Income Margin EPS 6.0%
Slide 15: Liquidity
Liquidity Current ratio Debt Service Coverage Ratio Operating cash flows * 1.40 0.35 250.0 1.37 224.6 0.31 1.35 0.30 200.0 161.9 1.30 0.25 1.25 0.20 0.19 150.0 119.3 1.20 1.19 0.15 100.0 1.17 1.15 0.10 0.07 50.0 1.10 0.05 1.05 - - FY 2018 FY 2019 FY 2020 FY 2018 FY 2019 FY 2020 Sept 30, 2019 Sept 30
Slide 16: Assets
Assets Total Assets 2,202.0 2,259.4 2,228.3 Sept 2020 December 2020 Sept 2021 Numbers are in Saudi Riyal Million | EARNINGS REPORT | Q3 2021 | BAWAN
Slide 17: Liabilities
Liabilities September 2020 December 2020 September 2021 238.3 256.5 253.1 338.5 390.4 448.5 775.1 706.8 932.6 Accounts payable Loans Others Accounts payable Loans Other Accounts payable Loans Others Numbers are in Saudi Riyal Million | EARNINGS REPORT | Q3 2021 | BAWAN
Slide 18: Group Operating Segments
Group Operating Segments Segment revenue Segment Profit 1,800.0 140.0 1,654.4 119.5 1,600.0 120.0 1,400.0 100.0 82.7 1,200.0 1,144.8 80.0 1,060.3 1,000.0 60.0 800.0 40.0 33.0 28.6 600.0 22.4 20.0 12.7 359.0 1.9 5.0 400.0 233.8 245.7 249.0 - 201.8 193.2 Sept 30, 2019 Sept 30, 2020 Sept 30, 2021 200.0
Slide 19: Leverage Level
Leverage Level Total Debts to Total Equity Debts to Total Assets 1,600.0 2.05 2,500.0 45% 1,509.5 2.0 1,472.9 2,259.4 1,408.3 2,228.3 2,202.0 1,400.0 2.00 40% 41% 2,000.0 35% 1,200.0 1.9 1.95 35% 32% 30% 1,000.0 1.90 1,500.0 25% 793.7 800.0 749.9 755.4 1.85 20% 1,000.0 932.6 600.0 1.80 775.1 15% 1.8
Slide 20: Efficiency Ratios & Profit Evaluation
Efficiency Ratios & Profit Evaluation Net debt / EBITDA CFO/EBITDA ** 9 1.2 8 1.2 8 1.2 7 6 1.1 6 1.1 5 1.1 4 1.1 3 1.1 3 1.1 2 1.1 1 1.0 0 1.0 September 30, September 30, September 30, September 30, September 30, September 30, 2019 2020 2021 2019 2020 2021 Efficiency Ratio (In Days) Net profit * 16
Slide 21: Dividends
Dividends | EARNINGS REPORT | Q3 2021 | BAWAN
Slide 22: Historical Dividends
Historical Dividends Ratio to Distributable Net income/Losses Total amount distributed Year Profit (*) (SAR Million) (SAR Million) 2015 88.1 65.0 82% 2016 119.1 69.0 64.4% 2017 71.0 48.0 75% 2020 90.2 60.0 74% 2021- First Half 84.8 45.0 59% No profits were distributed for the year 2018 and 2019, as
Slide 23: Appendix
Appendix | EARNINGS REPORT | Q3 2021 | BAWAN
Slide 24: Statement of Income
Statement of Income Sept 30, 2019* Sept 30, 2020 Sept 30, 2021 SR'000 SR'000 SR'000 Revenue 1,641,569 1,713,828 2,378,370 Cost of sales (1,454,377) (1,485,449) (2,064,595) Gross profit 187,192 228,379 313,775 Selling and distribution expenses (59,603) (53,960) (64,292) Administrative expenses (77,74
Slide 25: Balance Sheet
Balance Sheet September 30, December 31, December 31, September 30, 2020 2019 * 2020 2021 SR'000 SR'000 SR'000 SR'000 Property, plant and equipment 796,889 827,763 730,759 714,691 Right-of-use assets 20,100 21,857 19,967 20,084 Goodwill and other intangible assets 13,601 15,880 12,798 10,874 Other n
Slide 26: Summarized Cash Flows
Summarized Cash Flows Sept 30, 2019 Sept 30, 2020* Sept 30, 2021 SR'000 SR'000 SR'000 Cash Flow from Operations before working capital changes * 119,251 161,916 224,559 Investing cash flows (248,591) (33,132) 11,290 Financing cash flows (103) (36,898) (149,026) Cash and cash equivalents 35,011 59,28
Slide 27: Q&A
Q&A OPENER | EARNINGS REPORT | Q3 2021 | BAWAN