Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — Q2 2017 Earnings Presentation
16 slides from Rak Ceramics Pjsc's earnings presentation, August 2017
Slide 1: Investor Presentation Q2 2017 Results
INVESTOR PRESENTATION Q2 2017 RESULTS AUGUST 2017
Slide 2: Attendees
INVESTOR PRESENTATION Q2 FINANCIAL RESULTS Attendees Abdallah Massaad PK Chand Raaqib Mutvalli Group Chief Executive Officer Group Chief Financial Officer Head of Performance Management Office Abdallah Massaad is Group CEO of RAK Ceramics. He has Pramod Kumar Chand is the Group Chief Financial Offic
Slide 3: Disclaimer
DISCLAIMER 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 obligation to publicly update or
Slide 4: Key business update
INVESTOR PRESENTATION Q2 FINANCIAL RESULTS Key business update REGIONAL MARKETS PRODUCTION EFFICIENCIES BANGLADESH & INDIA • UAE market continued its strong growth • Improved efficiency in production across • Strong revenue growth in Bangladesh led by robust project sales UAE & Bangladesh tile plant
Slide 5: Strategic initiatives update
INVESTOR PRESENTATION Q2 FINANCIAL RESULTS Strategic initiatives update INDIA BANGLADESH SAUDI ARABIA • RAK India plans to acquire 51% equity • Bangladesh continues to perform well • RAK Ceramics had two joint venture stakes in 3 manufacturing facilities (1 delivering strong revenue growth entities
Slide 6: Key financial highlights
INVESTOR PRESENTATION Q2 FINANCIAL RESULTS Key financial highlights Core revenues remained stable Non-core revenues decreased by Core gross profit margin compared to Q2 2016 and 37.6% compared to Q2 2016 and increased by +450bps to 34.2% increase by 6.5% compared to Q1 by 1.0% compared to Q1 2017 co
Slide 7: Revenue highlights
INVESTOR PRESENTATION Q2 FINANCIAL RESULTS Revenue highlights MANAGEMENT COMMENTS TOTAL REVENUES (AED M) CORE REVENUES (AED M) Total revenue in Q2 17 800 756.6 700 661.1 660.6 721.1 681.1 decreased by 4.7% compared 61.4 620.6 51.2 600 600 52.0 to last year as a result of 123.1 122.2 122.4 anticipate
Slide 8: Revenues by end market
INVESTOR PRESENTATION Q2 FINANCIAL RESULTS Revenues by end market TILE REVENUES BY END MARKET SANITARYWARE REVENUES BY END MARKET Quarterly Comparison Yearly Comparison Quarterly Comparison Yearly Comparison Q2 17 Q1 17 Q2 16 Q2 17 Q1 17 Q2 16 Amount Amount Growth Amount Growth Amount Amount Growth
Slide 9: Revenue contribution
INVESTOR PRESENTATION Q2 FINANCIAL RESULTS Revenue contribution MANAGEMENT COMMENTS CORE AND NON-CORE REVENUE (%) Strategic focus to divest non- 8.9% 8.3% core operations continued 12.9% 14.7% 16.0% 13.0% 18.6% resulting in decrease in revenue contribution to 8.3%, an all time low SEGMENT CONTRIBUTI
Slide 10: Gross profit margins
INVESTOR PRESENTATION Q2 FINANCIAL RESULTS Gross profit margins MANAGEMENT COMMENTS CORE GROSS MARGINS (%) TILES GROSS MARGINS (%) Continued to show positive 40 40 momentum in gross margin 35 34.2 30.1 30 27.1 improvements; up by 32.1 29.7 24.7 30 +450bps compared to last 33.3 31.7 20 29.5 year at 3
Slide 11: Financial highlights
INVESTOR PRESENTATION Q2 FINANCIAL RESULTS Financial highlights FINANCIAL HIGHLIGHTS (AED M) Quarterly Comparison Yearly Comparison Q2 17 Q1 17 Q2 16 Amount Amount Growth Amount Growth Revenue 721.1 681.1 5.9% 756.6 -4.7% Core Revenue 661.1 620.6 6.5% 660.6 0.1% Gross margin (%) 33.3% 31.7% 1.6% 29.
Slide 12: Operating cycle
INVESTOR PRESENTATION Q2 FINANCIAL RESULTS Operating cycle MANAGEMENT COMMENTS OPERATING CYCLE (DAYS) Operating cycle has slightly increased due to slower 400 collections in the month of 283 272 262 Ramadan. Inventory days have increased 300 mainly due to accounting of excise duty on Indian FG as 22
Slide 13: Shareholder return
INVESTOR PRESENTATION Q2 FINANCIAL RESULTS Shareholder return MANAGEMENT COMMENTS RETURN ON EQUITY (%) All time high Strategy to exit non-core 20% assets has helped lighten the 17.2 balance sheet, increase 12.7 11.5 11.3 11.2 margins and enhance returns 10% 10.0 9.3 9.5 9.8 7.9 7.9 for shareholders.
Slide 14: Focus areas and initiatives update
INVESTOR PRESENTATION Q2 FINANCIAL RESULTS Focus areas and initiatives update UNITED ARAB EMIRATES INDIA IRAN • Continue to grow market share, focus on • Finalise outsourced manufacturing • Ramp up production to near 65% project channel penetration and enhance acquisitions capacity by starting 2nd k
Slide 15: Contacts
INVESTOR PRESENTATION Q2 FINANCIAL RESULTS Contacts 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 16: Ceramics
CERAMICS