21 slides from Al Hassan Ghazi Ibrahim Shaker's earnings presentation, September 2023
Slide 1: Shaker Investor Presentation
Shaker Investor Presentation September 2023
Slide 2: Disclaimer
Disclaimer This presentation has been prepared solely for use as an investor presentation for Shaker (the “Company”). 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 only and d
Slide 3: Presenters
Presenters Mohammed Abunayyan Firas AlSayegh Mazen ElGhafeer Chief Executive Officer Director – Strategy & Vice President – Finance Transformation Page 3
Slide 4: Business Overview
Business Overview
Slide 5: Shaker's Story
Shaker’s Story LAUNCHED Turnaround & Capital increase from Transformation Air Conditioners (Sole SAR 350 million to SAR Strategy Execution Distribution Rights) 630 million LAUNCHED KSA Manufacturing Arm Expansion of LG Air Acquired 10% of LAUNCHED - Joint Venture signed Public Listing - IPO Annual s
Slide 6: Middle East's Leading A/C & Home Appliance Solutions
Middle East’s Leading A/C & Home Appliance Solutions Company Saudi’s leading authorized importer & distributor of key international brands Air Conditioning (A/C) Home Appliances Core products Consumer A/C Commercial A/C Applied A/C Major Domestic Dishwasher Food preparation Split A/C Chillers Ceilin
Slide 7: World-Class Brand Portfolio & Competitive Positioning
World-Class Brand Portfolio & Competitive Positioning Air Conditioners Home Appliances Competitive positioning High-end Flexibility Low-end Functionality Page 7
Slide 8: Manufacturing partner of choice for LG A/C in Middle East
Manufacturing partner of choice for LG A/C in Middle East • Current products: Window, Wall Integration of robotics mounted Split units, Concealed units, Alignment with Vision 2030 and AI to improve Cassette units, Free stand units, Single National Industrial Program manufacturing Package units, Air
Slide 9: Strategic Priorities for Future Growth
Strategic Priorities for Future Growth Grow market share Operational Organization and product mix efficiency & Talent • Become the leading supplier in • Grow market share • Digitize to enhance reporting existing business segments & mechanism add new brands and products • Organic growth - increase to
Slide 10: Portfolio Optimization and Disciplined Capital Deployment
Portfolio Optimization and Disciplined Capital Deployment Portfolio Optimization Partnerships / Framework Optimal core business portfolio mix remains to be the integral Our strategic partnerships such as with LG and Bompani, business strategy for maximizing returns and minimizing alongside acquiring
Slide 11: Shaker - A Unique Investment Opportunity
Shaker - A Unique Investment Opportunity Products, Brands & Services Management Distribution Market-leading products, A senior executive Extensive distribution network internationally-renowned management team offering a covering Saudi Arabia and +20 brands, high-quality after high level of sector ex
Slide 12: H1-FY23 Highlights
H1-FY23 Highlights Successful integration of LG’s full Finalized 10% acquisition in BNPL range of HA/HE in Shaker’s portfolio company “Cashew KSA” Expanded B2B HVAC portfolio with Progressed in regulatory and licensing new Package Unit product procedures Successfully completed sale of New Progressin
Slide 13: Q2 & H1 2023 Financial Performance
Q2 & H1 2023 FINANCIAL PERFORMANCE
Slide 14: Key Highlights: Q2 2023
Key Highlights: Q2 2023 Revenue by Segment SAR (Millions) Gross Profit +23.42% Gross Profit Margin +3.72pp +4.42% Q2 2023 Q2 2023 24.15% 74.23 Q2 2022 60.14 Q2 2022 20.43% Q2 2022 Q2 2023 EBITDA +31.36% EBITDA Margin +2.42pp 87.83 94.06 Q2 2023 36.30 Q2 2023 11.81% 28.57% 31.95% Q2 2022 27.63 Q2 202
Slide 15: Key Highlights: H1 2023
Key Highlights: H1 2023 Revenue by Segment SAR (Millions) Gross Profit +21.76% Gross Profit Margin +2.27pp +10.54% H1 2023 H1 2023 24.67% 161.34 H1 2022 132.51 H1 2022 22.40% H1 2022 H1 2023 EBITDA +61.85% EBITDA Margin +3.87pp H1 2023 79.75 H1 2023 12.20% 258.48 247.21 H1 2022 49.28 H1 2022 8.33% 3
Slide 16: Healthy Balance Sheet
Healthy Balance Sheet Key Return Ratios (YoY) ROA* +0.91pp ROE* +2.33pp 6.41% 2.28% H1 2023 H1 2023 6.41% 1.80% 2.47% 4.07% H1 2022 4.07% H1 2022 1.56% 2.47% 0.88% 1.56% 0.69% Return on Return on Return on Return on Current Ratio -2.93% Total Borrowings/Equity +5.82% Assets Equity Assets Equity Q2 2
Slide 17: Leverage Levels: Q2 2023
Leverage Levels: Q2 2023 Long-term Borrowings 83.6 71.0 54.3 Total Liabilities/Total Assets Total Liabilities/Equity +2.14% 0.0 0.0 H1 2023 H1 2023 1.59x 0.61x H1 2021 FY 2021 H1 2022 FY 2022 H1 2023 H1 2022 0.61x H1 2022 1.56x Short-term Borrowings -11% -9% Interest Coverage Ratio -37.10% Net Debt/
Slide 18: Cash Flow Bridge
Cash Flow Bridge Includes Zakat, Includes proceeds from sale Highlights Finance Costs, & of NV subsidiary, and EOSB payments investment in Cashew KSA • Net Cash Position was 75.8mn compared to 2022 year end of 72.7mn mainly driven by higher Operating Cash offset by financing activities. o Cash flow
Slide 19: Strategic Priorities for 2023
Strategic Priorities for 2023 • Expand HVAC solutions (B2B & B2C) Expanding Optimize • Streamlining inventory for efficiency Market • 2 new retail stores planned in 2023 Inventory • Maximizing value from stock management Footprint • Aim to manufacture full portfolio of ACs in Levels LG Shaker factor
Slide 20: Q&A Session
Q&A Session “he
Slide 21: Contact
CONTACT MR. MAZEN ELGHAFEER VICE PRESIDENT FINANCE M.GHAFEER@SHAKER.COM.SA +966-11-2638900