Bawan Co. · TADAWUL:1302
Bawan — Q2 2021 Earnings Presentation
27 slides from Bawan's earnings presentation, August 2021
Slide 1: Earnings Presentation Q2 2021
EARNINGS PRESENTATION Q2 2021 | EARNINGS REPORT | Q2 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 | Q2 2021 | BAWAN
Slide 5: Group Structure
Group Structure 3 | EARNINGS REPORT | Q2 2021 | BAWAN
Slide 6: Our Factory Locations
Our Factory Locations | EARNINGS REPORT | Q2 2021 | BAWAN
Slide 7: Our Major Clients Expect High Standards
Our Major Clients Expect High Standards | EARNINGS REPORT | Q2 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 | Q2 2021 | BAWAN
Slide 12: Financial Perspective
Financial Perspective HELLO | EARNINGS REPORT | Q2 2021 | BAWAN
Slide 13: Operation Evolution
Operation Evolution Revenue Gross profit 1,800 250.0 1,651 1,600 217.9 1,400 200.0 1,200 1,116 1,165 150.0 141.4 1,000 130.1 800 100.0 600 400 50.0 200 - - June 30, 2019 June 30, 2020 June 30, 2021 June 30, 2019 June 30, 2020 June 30, 2021 Net Income EBITDA 90.0 84.8 160.0 141.8 80.0 140.0 70.0 120.
Slide 14: Margins Evolution
Margins Evolution Gross Profit Margin EBITDA Margin 13.5% 10.0% 13.2% 9.0% 8.6% 13.0% 8.0% 7.0% 7.1% 12.5% 7.0% 12.1% 6.0% 12.0% 5.0% 11.7% 4.0% 11.5% 3.0% 11.0% 2.0% 1.0% 10.5% 0.0% June 30, 2019 June 30, 2020 June 30, 2021 June 30, 2019 June 30, 2020 June 30, 2021 Net Income Margin EPS 6.0% 1.60 5
Slide 15: Liquidity
Liquidity Current Ratio Debt Service Coverage Ratio Operating Cash Flows* 1.21 0.35 180.0 1.20 0.30 160.0 153.0 0.30 1.20 140.0 0.25 1.20 120.0 0.20 0.19 96.7 1.19 100.0 1.19 84.1 1.19 0.15 80.0 1.19 60.0 0.10 40.0 1.18 0.05 0.05 20.0 1.18 - - Jun-20 Dec-20 Jun-21 Jun-20 Dec-20 Jun-21 June 30, 2019
Slide 16: Assets
Assets Total Assets 2,278.7 2,264.6 2,228.3 June 2020 December 2020 June 2021 Numbers are in Saudi Riyal Million | EARNINGS REPORT | Q2 2021 | BAWAN
Slide 17: Liabilities
Liabilities June 2020 December 2020 June 2021 180.7 256.5 303.1 392.9 390.4 477.0 969.5 775.1 696.6 Accounts payable Loans Others Accounts payable Loans Other Accounts payable Loans Others Numbers are in Saudi Riyal Million | EARNINGS REPORT | Q2 2021 | BAWAN
Slide 18: Group Operating Segments
Group Operating Segments Segment Revenue Segment Profit 1,400.0 100.0 83.0 1,200.0 1,154.7 80.0 1,000.0 60.0 50.8 801.4 800.0 727.9 40.0 24.6 600.0 21.2 20.0 16.6 8.1 400.0 0.8 0.7 - 134.2 255.5 June 30, 2019 June 30, 2020 June 30, 2021 151.4 200.0 158.6 167.4 (7.1) (2.5) (8.2) 130.1 (14.2) (12.8) 9
Slide 19: Leverage Level
Leverage Level Total Debts to Equity Debts to Total Assets 1,800.0 2.2 2,500.0 45% 2,264.6 2,228.3 2,278.7 2.2 1,600.0 1,543.0 40% 1,472.9 1,476.8 43% 2.1 2.1 1,400.0 2,000.0 35% 35% 2.1 1,200.0 31% 30% 2.0 1,500.0 1,000.0 1.9 2.0 25% 801.9 800.0 721.6 755.4 1.9 20% 1,000.0 969.5 1.9 600.0 1.8 775.1
Slide 20: Efficiency Ratios & Profit Evaluation
Efficiency Ratios & Profit Evaluation Net Debt / EBITDA CFO/EBITDA** 12 1.1 1.1 10 1.1 10 1.1 1.1 8 7 1.1 1.1 6 1.1 5 1.1 1.1 4 1.1 1.0 2 1.0 0 1.0 June 30, June 30, June 30, June 30, June 30, June 30, 2019 2020 2021 2019 2020 2021 Efficiency Ratios (in Days) Net Income * 250 228 90.0 84.8 204 80.0
Slide 21: Dividends
Dividends | EARNINGS REPORT | Q2 2021 | BAWAN
Slide 22: Historical Dividends
Historical Dividends Ratio to Distributable Net income/Losses Total amount distributed Year Profit (*) (SAR Million) (SAR Million) 2014 176.5 100.0 63% 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 ye
Slide 23: Appendix
Appendix | EARNINGS REPORT | Q2 2021 | BAWAN
Slide 24: Statement of Income
Statement of Income June 30, 2019 June 30, 2020 June 30, 2021 SR'000 SR'000 SR'000 Revenue 1,115,977 1,165,046 1,650,935 Cost of sales (985,854) (1,023,598) (1,433,048) Gross profit 130,123 141,448 217,887 Selling and distribution expenses (40,737) (35,891) (42,322) Administrative expenses (52,499)
Slide 25: Balance Sheet
Balance Sheet June 30, December 31, December 31, June 30, 2020 2019 2020 2021 SR'000 SR'000 SR'000 SR'000 Property, plant and equipment 807,252 827,763 730,759 716,513 Right-of-use assets 20,658 21,857 19,967 18,954 Goodwill and other intangible assets 14,356 15,880 12,798 11,610 Other non-current a
Slide 26: Summarized Cash Flows
Summarized Cash Flows June 30, June 30, June 30, 2019 2020 2021 SR'000 SR'000 SR'000 Cash Flow from Operations* 84,060 96,748 152,952 Investing cash flows (224,615) (26,192) 7,512 Financing cash flows 36,103 436 (117,076) Cash and cash equivalents 50,290 75,558 38,868 * Before working capital change
Slide 27: Q&A
Q&A OPENER | EARNINGS REPORT | Q2 2021 | BAWAN