Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — FY2017 Earnings Presentation
21 slides from Rak Ceramics Pjsc's earnings presentation, February 2018
Slide 1: Earnings Presentation - 2017 Q4/FY Results
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS EARNINGS PRESENTATION - 2017 Q4/FY RESULTS FEBRUARY 2018 RAK Ceramics PJSC © 2018. All rights reserved
Slide 2: Attendees
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS Attendees Abdallah Massaad PK Chand Group Chief Executive Officer Group Chief Financial Officer Abdallah Massaad is Group CEO of RAK Ceramics and has Pramod Kumar Chand is the Group Chief Financial Officer more than 20 years experience in ceramics of RAK Ce
Slide 3: Disclaimer
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS Disclaimer This information contained in the enclosed presentation summarises preliminary and and past performance is not indicative of future results. The Company undertakes no introductory information on RAK Ceramics PJSC (the Company). This presentation
Slide 4: Management Update
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS Management Update ABDALLAH MASSAAD GROUP CHIEF EXECUTIVE OFFICER Update Results Outlook Contact RAK Ceramics PJSC © 2018. All rights reserved 4
Slide 5: 2017 Key Business Highlights
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS 2017 Key Business Highlights Core business growth India turnaround Saudi Arabia Integration Core business growth led by Execution of acquisitions in Acquisition of JV's completed. robust sales in UAE and Morbi, Gujarat completed and Focus on post acquisitio
Slide 6: 2017 Financial highlights
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS 2017 Financial highlights Core revenue of AED2,615m, Total revenue of AED2,855m, Core gross profit margin of +7.6% compared to 2016 as a +2.2% compared to 2016. 32.5%, +200bps compared to result of strong growth in the Non core revenue of 2016 United Arab E
Slide 7: Financial Results
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS Financial Results PK CHAND GROUP CHIEF FINANCIAL OFFICER Update Results Outlook Contact RAK Ceramics PJSC © 2018. All rights reserved 7
Slide 8: Q4 Financial highlights
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS Q4 Financial highlights Core revenue of AED689.7m, Total revenue of AED747.5m, Core gross profit margin of +23.2% compared to Q4 2016 as +14.1% compared to Q4 2016 31.2%, -160bps lower compared a result of strong growth in the Non core revenue of to Q4 2016
Slide 9: Revenue highlights
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS Revenue highlights MANAGEMENT COMMENTS TOTAL REVENUE (AED M) TOTAL CORE REVENUE (AED M) +2.2% +7.6% Total revenue increased by 2,793.1 2,854.9 2,615.0 14.1% in Q4 2017 compared to 2,429.4 Q4 2016 and by 2.2% in 2017 as a result of strong growth in +14.1% +2
Slide 10: Tiles Revenue - End markets
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS Tiles Revenue - End markets TILES REVENUE (AED M) Quarterly Comparison Yearly Comparison Q4 16 Q4 17 2016 2017 Amount Amount Growth Amount Amount Growth United Arab Emirates 114.9 170.4 48.3% 488.8 584.6 19.6% Kingdom of Saudi Arabia 24.6 42.1 71.1% 215.7 2
Slide 11: Sanitaryware Revenue - End markets
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS Sanitaryware Revenue - End markets SANITARYWARE REVENUE (AED M) Quarterly Comparison Yearly Comparison Q4 16 Q4 17 2016 2017 Amount Amount Growth Amount Amount Growth United Arab Emirates 39.7 54.1 36.3% 139.6 169.9 21.6% Kingdom of Saudi Arabia 3.0 2.7 -10
Slide 12: 2017 Non-Core Highlights
INVESTOR PRESENTATION 2017 Non-Core Highlights 2017 PERFORMANCE GROUP REVENUE SPLIT (AED M) Non-core revenue contribution to total revenues has steadily declined to an all time low of AED 240M AED 52M 7.7% 13.0% 8.4% 14.5% 8.4%. Revenue Net profit In 2017, Electro RAK and RAK Warehouse Leasing were
Slide 13: Gross profit margins
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS Gross profit margins MANAGEMENT COMMENTS CORE GROSS MARGINS (%) TILES GROSS MARGINS (%) Core gross margins decreased -1.6% +2.0% -3.2% +3.2% by -1.6% in Q4 2017 compared 32.8 29.4 28.0 32.5 26.3 31.2 24.8 to Q4 2016, but increased 33.0 30.5 +200bps in 2017
Slide 14: Financial highlights
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS Financial highlights FINANCIAL HIGHLIGHTS (AED M) Quarterly Comparison Yearly Comparison Q4 16 Q4 17 2016 2017 Amount Amount Growth Amount Amount Growth Revenue 655.1 747.5 14.1% 2,793.1 2,854.9 2.2% Core Revenue 559.9 689.7 23.2% 2,429.4 2,615.0 7.6% Gross
Slide 15: Balance Sheet Evolution
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS Balance Sheet Evolution MANAGEMENT COMMENTS RETURN ON EQUITY (%) OPERATING CYCLE (DAYS) 11.4 281 Return on equity reached an 11.1 10.4 218 225 262 192 all-time high of 11.4% in 2017. 9.0 227 * 180 188 214 166 Operating Cycle increased compared 7.1 to 2016 d
Slide 16: Market Valuation
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS Market Valuation AED SHARE PRICE PERFORMANCE (AED) VWAP 2.45 CURRENT VALUATION (AED M) 52 week high 2.99 14 Jun 2014 26 April 2015 07/02/18 31/12/16 Samena Capital AED 0.35/share dividend 52 week low 2.08 investment announcement Amount Amount As of 07th Feb
Slide 17: 2018 Outlook
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS 2018 Outlook ABDALLAH MASSAAD GROUP CHIEF EXECUTIVE OFFICER Update Results Outlook Contact RAK Ceramics PJSC © 2018. All rights reserved 17
Slide 18: 2018 Priorities
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS 2018 Priorities Establish India as export hub Upgrade production facilities Maintain UAE/Bangladesh market share Explore alternative energy sources Integrate Saudi Arabia Overhead control Continued product portfolio optimisation Continued production efficie
Slide 19: Contact
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS Contact Update Results Outlook Contact RAK Ceramics PJSC © 2018. All rights reserved 19
Slide 20: Contact
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS Contact INVESTOR RELATIONS If you have any questions or require further information, please do not hesitate in contacting our investor relations department. Investor Relations RAK Ceramics Al Jazeera Al Hamra PO Box 4714 Ras Al Khaimah United Arab Emirates
Slide 21: EARNINGS PRESENTATION - 2017 Q4/FY RESULTS RAK Ceramics PJSC © 2018. All rights reserved
EARNINGS PRESENTATION - 2017 Q4/FY RESULTS RAK Ceramics PJSC © 2018. All rights reserved 21