37 slides from Al Hassan Ghazi Ibrahim Shaker's earnings presentation, Mar 21, 2022
Slide 1: Shaker Group Investor Presentation FY 2021
Shaker Group Investor Presentation FY 2021 As at 31 December 2021 21 March 2022
Slide 2: Content
Content • Key Performance Highlights • Operational Review • Financial Review • Q&A Session • Appendix Page 2
Slide 3: FY 2021 Key Performance Highlights
FY 2021 Key Performance Highlights
Slide 4: Financial Overview
Financial Overview • Successful growth strategy execution delivers sustained revenue increase • Profitability maintained for second consecutive year • Brand and product portfolio expansion combined with enhanced distribution channels drive sales growth Total Revenue Gross Profit Net Profit SAR 1.1 b
Slide 5: Strategic Highlights
Strategic Highlights Growth strategy Vision 2030 support & Optimized brand and Sustained & grew core successfully executed growth drivers product portfolio mix segments market share Robotics and AI introduced IT Framework and Security Supply Chain Ongoing Significant B2B and at the Infrastructure up
Slide 6: FY 2021 Operational Review
FY 2021 Operational Review
Slide 7: Growth strategy successfully executed
Growth strategy successfully executed • Goal to become one of the top 3 suppliers in existing business segments & expand brand & product portfolio 2023 targets • B2B and after sales revamp – increase presales and capture mega project opportunities Grow market share • Boost e-commerce sales • High si
Slide 8: Positioned to benefit from mega projects in Saudi
Positioned to benefit from mega projects in Saudi Saudi air conditioner Mega projects in Saudi will see Alignment with socioeconomic market forecast to reach investment of objectives of Vision 2030 in key $1.3bn by 2024 1 $3bn over next decade 3 areas: • Superior technology for the Saudi market • Cr
Slide 9: Identified new growth drivers across segments & services
Identified new growth drivers across segments & services AC Sales HA Sales Services & Support Home Housing SEEC Mega projects ESCO & Retrofit Aftersales Appliances 670,000 planned Multifold rise in Multiple mega Growing the size 250,000 Growing houses requiring KSA energy tariff projects under and d
Slide 10: Invested successfully in LG-Shaker manufacturing facility
Invested successfully in LG-Shaker manufacturing facility • Current products: Window, Wall mounted split units, Concealed units, Cassette units, Free standing units, Single Package units, Air Handling Units Integration of robotics 900K units Alignment with Vision 2030 • Year opened: 2008 and AI to i
Slide 11: Optimised product portfolio to target more diverse segments
Optimised product portfolio to target more diverse segments 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 Ceiling appliances concealed duct Irons Window A/C Fan coil unit Home laundry A/C app
Slide 12: Expanded brand portfolio to cater to broad customer base
Expanded brand portfolio to cater to broad customer base Air Conditioners Home Appliances Competitive positioning High-end Flexibility Low-end Functionality Page 12
Slide 13: Differentiated e-commerce & after-sales retail solutions
Differentiated e-commerce & after-sales retail solutions Shaker offers Tailored delivery and Collaboration with customers a one-stop customer service payment platform • E-commerce shop shop for all appliances provided for bulky partners to drive launched in 2019 to shopping for the home products tha
Slide 14: ESG framework set up in progress
ESG framework set up in progress • ESCO granted energy efficiency project management qualification by Saudi Energy Efficiency Center (SEEC) & delivering energy efficient Three key focus areas : systems • Riyadh HQ upgraded with energy efficient AC systems and with a central printing system to reduce
Slide 15: FY 2021 Financial Review
FY 2021 FINANCIAL REVIEW
Slide 16: FY21 Key Financial Highlights
FY21 Key Financial Highlights 350.00 30.0% 1,200.00 25.0% 1,086.45 21.0% 21.7% 300.00 288.30 289.48 25.0% 1,000.00 23.9% 932.70 20.0% 247.47 21.3% 21.1% 21.2% 260.85 250.00 20.0% 247.82 22.0% 20.0% 800.00 196.50 SAR million SAR million 15.0% 200.00 15.0% 600.00 150.00 10.0% 3.7% 4.7% 10.0% 400.00 2.
Slide 17: Sustained sales & revenue growth
Sustained sales & revenue growth Enhanced strategy drives revenue growth and positive sales outcomes: +16.5 • Successful product and brand diversification strategy 1,086.45 2021 Segmental revenues (%) 932.70 Other • Optimization of supply chain efficiencies 0.4% • Seasonal promotions and strengthene
Slide 18: Profitability maintained for second consecutive year
Profitability maintained for second consecutive year Gross Profit up 20% y-o-y Net Profit up a significant 248% y-o-y +20.4% +248.4% 22% +43.3% 0.9% 2.6% 1.5% 0.9% 1.6% 3.7% 4.7% 0.1% 235.5 28.0 21% -79.1% 195.6 21.3% 21.1% 20.0% 21.2% 22.0% 23.9% 12.3 10.8 61.3 59.3 8.0 52.7 57.6 57.3 41.4 4.5 3.8
Slide 19: EBITDA & RoE
EBITDA & RoE 90 EBITDA EBITDA % 10% Return on Equity (%) 79 9% 80 9% 8% 8% 4.4% 70 6% 7% 7% 7% 60 57 6% 6% 6% 50 5% 5% 5% 40 6% 4% 30 2.0% 2.0% 24 24 3% 18 1.0% 20 15 16 14 14 2% 1.0% 10 10 0.6% 1% 0.3% 0 0% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 20: Right-sizing the workforce
1,000 1,200 1,400 1,600 1,800 200 400 600 800 0 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 productivity of workforce improving Q1 2021 Q2 2021 Employee headcount rationalization ongoi
Slide 21: Trade receivables vs. inventory trend
Trade receivables vs. inventory trend Trade Receivables Trend (SAR '000) Inventories Trend (SAR '000) 800,000 700,000 Slight increase in trade 600,000 receivables due to increase in revenue 500,000 400,000 Inventory levels increased compared to previous year due to safety stock and to 300,000 cover
Slide 22: Cash flow: operating and financing
Cash flow: operating and financing Cash Flow from Operations 181,179 195,387 230,399 95,501 95,637 139,035 31,405 2,904 33,594 34,437 40,658 27,818 (17,225) (7,836) (55,658) (31,702) (3,164) (84,384)(115,840)(127,322) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2017 2017 2017 20
Slide 23: Capital structure
Capital structure 700 90% 652 646 649 653 657 637 640 637 637 625 77% 76% 77% 80% 600 76% 60% 70% 500 62% 63% 57% 61% 60% 412 59% 404 412 388 400 50% 299 300 278 278 40% 242 237 237 30% 200 169 160 122 20% 110 110 101 100 75 84 83 75 10% 0 0% FY 2020 FY 2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q
Slide 24: STLs & MTLs trend
STLs & MTLs trend Short Term Loans Trend 801,444 797,622 695,160 713,655 704,065 666,666 646,367 531,457 462,062 445,071 412,617 404,099 412,494 302,667 242,394 237,277 237,330 278,228 299,128 388,138 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2017 2017 2017 2018 2018 2018 2018
Slide 25: Appendix I: About the Company
APPENDIX I: About the Company
Slide 26: Shaker Group overview
Shaker Group overview Exclusive Saudi distributor for internationally acclaimed home appliances brands: The Middle East’s • Maytag (1980) leading A/C • Ariston (1994) solutions • Indesit (2005) company • Midea (2008) • Bissell (2015) Subsidiary: ESCO • Bompani (2020) • Energy saving Saudi’s leading
Slide 27: Shaker Group Key Differentiators
Shaker Group Key Differentiators Products, brands Distribution Management Manufacturing Growing market & services capability Market-leading Kingdom-wide A robust Joint Venture The market for AC products, distribution management with LG Air solutions and Home internationally- network for all framewor
Slide 28: Corporate milestones
Corporate milestones A history of success stories and key milestones Launched Capital increase from SAR 350 million to Launched Air Conditioners (Sole SAR 630 million Distribution Rights KSA Manufacturing Expansion of LG Air Launched Arm - Joint Venture Publicly Listed - Annual sales Conditioning Te
Slide 29: Shareholding structure & information
Shareholding structure & information Shareholding structure Share information Market Tadawul, Saudi Arabia Currency SAR 12.2% Listing date May 2010 9.9% Financial year-end 31 December Lafana Holding Tawazon Arabia Co Authorized capital (SAR) 630,000,000 Lama Holding 5.7% Issued shares 63,000,000 Oth
Slide 30: Case study: A/C for Royal & VIP Lounges, Formula 1 Grand Prix
Case study: A/C for Royal & VIP Lounges, Formula 1 Grand Prix Jeddah Corniche Circuit, Saudi Arabia GOAL SOLUTION RESULTS To supply the air- The best minds in Shaker’s Recognizing that Shaker conditioning across the air-conditioning team had gone the extra mile the Royal and VIP lounges meticulously
Slide 31: Case study: Smart factory transformation
Case study: Smart factory transformation LG Shaker Factory, Tatweer Industrial City, Riyadh GOAL SOLUTION RESULTS To transform the In partnership with LG, we High quality enhancements productivity and output introduced cutting edge technology across our range of air- capacity of our flagship in the
Slide 32: Appendix II: Financials
APPENDIX II: Financials
Slide 33: Income statement
Income statement SAR ‘000 2019 2020* 2021 Sales 882, 822 932,699 1,086,445 Cost of sales (717,176) (737,139) (850,923) Gross profit 165,646 195,560 235,522 S&D expenses (104,454) (95,567) (101,074) G&A expenses (87,393) (84,629) (83,918) Impairment charge and other income (12,246) (3,273) (13,283) O
Slide 34: Cash flow statement
Cash flow statement SAR ‘000 2019 2020* 2021 Cash flows from operating activities Profit/(loss) before Zakat and Taxes (50,680) 14,763 41,376 Adjustments: 59,903 49,834 36,019 Changes in operating assets & liabilities 262,739 (55,964) (156,134) Employees’ end of service benefits paid (7,428) (4,028)
Slide 35: Balance sheet
Balance sheet SAR ‘000 2019 2020* 2021 ASSETS Non-current assets 705,769 667,419 673,514 Current assets 719,541 728,173 815,558 Total assets 1,425,310 1,395,592 1,489,072 EQUITY Total equity attributable to shareholders 589,497 595,381 622,935 Total equity 601,984 608,454 636,585 LIABILITIES & EQUIT
Slide 36: Disclaimer
Disclaimer This presentation has been prepared solely for use as an investor presentation for Shaker Group (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
Slide 37: Contact
CONTACT MR. HOSSAM AKKAD VICE PRESIDENT FINANCE HOSSAM_AKKAD@SHAKER.COM.SA +966-11-2638900