Slide 1: Close to you worldwide
Close to you worldwide
Slide 2: RAK Ceramics PSC Q3 2015 Results Presentation
RAK CERAMICS PSC Q3 2015 RESULTS PRESENTATION
Slide 3: Disclaimer
Disclaimer This information contained in the enclosed presentation summarizes preliminary and introductory information on RAK Ceramics PSC (the Company). This presentation has been prepared for information purposes only and is not and does not form part of or constitute any prospectus, offering memo
Slide 4: Operating Highlights
OPERATING HIGHLIGHTS Mr. Abdallah Massaad, Chief Executive Officer RAK Ceramics. Copyright 2015.
Slide 5: Q3/15 Financial Highlights
Q3/15 FINANCIAL HIGHLIGHTS Net Profit EBITDA 180 180 +11.3% 120 120 +43.1% 171.8 154.3 60 60 82.1 57.4 0 0 Q3/14 Q3/15 Q3/14 Q3/15 Sales per Segment Gross Margin per Segment 1000 50% 784.9 782.8 36 750 131.1 38% 106.3 111.8 108.6 500 25% 47.4% 44.8% 542.0 29.0% 26.7% 30.7% 250 531.5 13% 23.6% 26.9%
Slide 6: Tiles - Revenues
TILES - REVENUES Overall sales Tile Revenue by End Market Overall tile sales decreased 1.9% YoY. If we exclude Q3/14 Q3/15 YoY China and Iran where we curtailed our production UAE 118.1 122.3 3.5% in last 12 months, sales were flat YoY. India 104.9 94.1 -10.3% KSA 86.8 114.7 32.1% Core market sales
Slide 7: Tiles - Margins
TILES - MARGINS Overall margins Tile Gross Margins Tile margins continue to make progress and 27.0% increased 90 bps QoQ and 330 bps YoY. Tiles margins enhancement is a result of procurement cost savings and increased sales 22.8% in the higher margin geographies of UAE and KSA. Margins up across all
Slide 8: Sanitaryware - Revenues
SANITARYWARE - REVENUES Overall sales Sanitaryware Revenue by End Market Sanitaryware sales decreased by 2.6% YoY overall. Q3/14 Q3/15 YoY UAE 29.0 34.3 18.5% Core market sales Bangladesh 22.1 20.4 -7.6% A very strong performance in the UAE(+18.5% YoY) UK 18.9 18.0 -5.0% was offset by 31% decline in
Slide 9: Sanitaryware - Margins
SANITARYWARE - MARGINS Overall margins improve Sanitaryware Gross Margins Sanitaryware margins continue to improve QoQ 48.0% but remain lower than last year. Bangladesh performed strongly Bangladesh sanitaryware margins increased to 46.5% 48.4%. UAE margins increased by 250 bps QoQ to 45.3%. India m
Slide 10: Tableware
TABLEWARE Stable Tableware revenues Tableware Revenues Q3/15 revenues were stable at AED36mn. As a 36.0 reminder, we only started consolidating Tableware in Q4/14 so YoY results not available. 34.5 33.0 36.0 36.0 36.0 A favourable product mix towards higher priced 35.1 items allowed us to offset unf
Slide 11: Savings
SAVINGS Savings despite headwinds from energy Raw Materials & Packaging Savings Energy costs continue increase as a result of 40 increased proportion of supply from Dolphin Gas. However, we have been more than able to find 30 opportunities for cost savings to offset higher energy costs from raw mate
Slide 12: Non Core
NON CORE Non Core revenues continue to decline as a Non Core revenues standalone basis and as a percentage of our overall sales (13.6% vs. 16.7% in Q3/14) in line with 140 our strategy. 130 120 110 In Q3/15, non core revenues were AED106.3 137.6 100 131.1 down 18.9% in Q3/15 from AED131.1mn in Q3/14
Slide 13: Financial Performance
FINANCIAL PERFORMANCE Mr. PK Chand, Chief Financial Officer RAK Ceramics. Copyright 2015.
Slide 14: EBITDA
EBITDA EBITDA margin surged to 21.9% EBITDA Calculation EBITDA increased by 11.3% YoY from 154.3mn Q3/14 Q3/15 to171.8mn. Net Profit 57.4 82.1 Tax 3.4 3.1 Excluding Iran and China impact, Q3/15 EBITDA Depreciation and Amortization 33.1 43.9 was even stronger by 16.1% and increased from Finance Expen
Slide 15: Net Profit
NET PROFIT Net Profit (Reported, Adjusted and Normalised) Q3/14 Q3/15 9-mth ‘14 9-mth ‘15 Reported Net Profit 57.4 82.1 207.3 228.4 Hyperinflation (Iran & Sudan) 24.4 8.6 51.7 32.6 Adjusted Net Profit 81.8 90.7 259.0 261.0 Net Impact of divestments and one-offs 0.0 -6.4 0.0 7.3 Normalised Net Profit
Slide 16: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS CAPEX Net Debt/EBITDA 300 2.6 225 2.5 150 282.3 2.4 2.6 2.6 205.5 2.5 75 132.4 2.3 2.4 108.8 112.5 0 2.2 2011 2012 2013 2014 2015 YTD Q2/14 Q3/14 Q4/14 Q3/15 Investing in Growth Continued debt reduction Our CAPEX spending continued in the quarter Earlier in the year, we conv
Slide 17: Working Capital Highlights
WORKING CAPITAL HIGHLIGHTS Trade Receivables Days Inventory Days 120 189 115 187 110 184 189 118 117 187 186 105 110 110 182 184 108 180 100 179 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Trade Payables Days Receivables collections has improved marginally in 90 terms of days from Q2
Slide 18: Closing Comments
CLOSING COMMENTS Mr. Abdallah Massaad, Chief Executive Officer RAK Ceramics. Copyright 2015.
Slide 19: Strategic Update
STRATEGIC UPDATE Q4/15 Outlook Capacity Expansion Update Order Book Update India Plan Asset Sale Update Value Creation Plan Initiatives RAK Ceramics. Copyright 2015. Shown in (AED) Millions 19
Slide 20: Appendix
APPENDIX RAK Ceramics. Copyright 2015.
Slide 21: Capacity Expansion Guidance
CAPACITY EXPANSION GUIDANCE Tiles Production Capacity Tiles Production Capacity Year End 2014a Year End 2015a Year End 2016a Expected completion UAE 81.9 81.9 81.9 India 8.0 8.0 8.0 Bangladesh 8.0 8.0 11.6 Q1/16 Sudan+China 13.3 0.0 0.0 Iran 6.0 6.0 6.0 Sum 117.2 103.9 107.5 Shown in Millions of Sqm
Slide 22: 2015 Non Core Asset Disposals
2015 NON CORE ASSET DISPOSALS Disposals Company/Assets disposed Total consideration RAK Pharmaceuticals Pvt Ltd, Bangladesh RAK Moshfly Pvt Ltd, Bangladesh 15 Townhouses at Al Hamra Village, RAK Laticrete RAK LLC, RAK RAK Piling LLC, RAK RAK Watertech LLC, RAK (39% stake sold) Al Hamra Aluminium & G
Slide 23: Focus Market Sales Trends
FOCUS MARKET SALES TRENDS United Arab Emirates India 160 140 36.4 34.3 10 29 32.6 10.4 34.1 29.2 10 120 105 5.8 8.2 7.1 80 70 121.8 122.3 116.5 111.2 118.1 112.1 120.3 101.1 104.9 93.6 93.8 94.1 40 35 0 0 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Saudi Arabia Bangladesh
Slide 24: Consolidated Net Income
CONSOLIDATED NET INCOME Q3'14 Q3 ’15 (Actual) YTD Sep 14 YTD Sep 15 (Actual) Revenue (excluding discontinued operations) 784.9 782.8 2,335.2 2,330.9 Cost of sales (575.3) (542.5) (1,713.7) (1,652.8) Gross profit 209.6 240.3 621.6 678.1 Administrative and general expenses (60.0) (73.3) (218.1) (231.0
Slide 25: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Assets Dec 2014 Sep 2015 Equity and liabilities Dec 2014 Sep 2015 Non-current assets Equity Property, plant and equipment 1,180.6 1,074.3 Share capital 817.5 817.5 Capital work-in-progress 73.3 179.4 Reserves 1,990.8 1,914.5 Goodwill 50.4 50.4 Equity 2,808.3 2,732.1 Intang
Slide 26: Cash Flow Statement
CASH FLOW STATEMENT Sep-15 Sep-14 Sep-15 Sep-14 Operating activities Investing activities Profit for the period before tax 244.4 225.6 Acquisition of property, plant and equipment (205.5) (239.0) Adjustments for: Acquisition of investment property - 0.0 Share in profit of equity accounted investees
Slide 27: RAK Ceramics
RAK CERAMICS