Slide 1: Investor Presentation
INVESTOR PRESENTATION August 2024
Slide 2: Disclaimer
DISCLAIMER Information provided in this presentation may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" within the meaning of the “safe harbor” provisions of the United States Private Securities Liti
Slide 3: Company Overview
COMPANY OVERVIEW Leading designer and producer of Premium engineered surfaces used in residential and commercial projects High Quality Strong Established, Global Foundation for Premium Products Global Premium Brand Reach Growth Customer-centered approach Quartz countertop inventor and pioneer of qua
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS Significant ongoing restructuring actions to reignite profitable growth Shifting from production focus to a brand-centric business model Evolving from countertop player to surfaces player Global presence in large and attractive addressable market Strong balance sheet and cash f
Slide 5: Our Mission
OUR MISSION To be the leading choice for surfaces all around the world Investor Presentation 2024 5
Slide 6: From Countertops to a Surfaces Company
FROM COUNTERTOPS TO A SURFACES COMPANY Multi material and multi application NOW FUTURE Kitchen Entire & Bath Home Countertop Surfaces Investor Presentation 2024 6
Slide 7: Evolution From Production-Oriented to Brand-Centric Business Model
Evolution From Production-Oriented to Brand-Centric Business Model Manufacturing Shifting part of production from in-house to external partner based manufacturing to improve cost efficiency Network and maximize agility. Sales and marketing-focused, Sales & brand-driven, robust global sales Marketing
Slide 8: Strategic Pillars for Long Term Profitable Growth
STRATEGIC PILLARS FOR LONG TERM PROFITABLE GROWTH 1 Premium 2 Operational 3 Global Surface Enhancement Footprint Player Investor Presentation 2024 8
Slide 9: Premium Surfaces Offering
PREMIUM SURFACES OFFERING Transforming materials into innovative surfaces with Caesarstone’s engineering know-how, craftsmanship, and care Minerals Quartz Porcelain low silica sustainable Highly durable and Innovative, heat, surfaces impact resistant ,stain, scratch and UV resistant Investor Present
Slide 10: R&D Capabilities
R&D CAPABILITIES One step ahead of the competition with our unique skills and decades of experience – Innovation, technology, design, research +100 of Quartz and Porcelain top of the line portfolio 1st in market Unique 1st in market 1st in Porcelain Mineral Veining concrete Revolutionary market coll
Slide 11: Premium Material Collections
PREMIUM MATERIAL COLLECTIONS Design trendsetter powered by proprietary in-house technology 4141 Misty Carrera 5151 Empira White 4033 Rugged Concrete 405 Midday 506 Mirabel Classico Supernatural Metropolitan Outdoor Porcelain A classic, multi-color Luxurious marble & stone Inspired by the trend of ra
Slide 12: Superior Value Proposition
SUPERIOR VALUE PROPOSITION Quartz / Mineral & Porcelain Scratch Resistant Stain Resistant Heat Resistant Enduring Quality Easy to Hygienic Nonporous Environmentally Friendly Clean Quartz/ Mineral Porcelain Durable Impact Resistant Extreme Heat Resistant Indoor & Outdoor Investor Presentation 2024 12
Slide 13: Strong Brand Recognition
STRONG BRAND RECOGNITION In North America and other selected markets Key Brand Collaborations Sought-after brand in prominent TV makeover shows Leading Design Awards Investor Presentation 2024 13
Slide 14: We Care About the Planet. Just Like You.
Aligned with the essence of our time, we hold a steadfast commitment to our planet’s well-being. From the selection of materials to manufacturing and end use, we take responsibility for promoting practices that lead to change in our market towards a greener future. It’s a core commitment that extend
Slide 15: Strategic Pillars for Long Term Profitable Growth
STRATEGIC PILLARS FOR LONG TERM PROFITABLE GROWTH 1 Premium 2 Operational 3 Global Surface Enhancement Footprint Player Investor Presentation 2024 15
Slide 16: Strategic restructuring plan to improve growth and profitability
Strategic restructuring plan to improve growth and profitability Closed Annualized savings of Shift production capacity Signed agreements with Key Sdot-Yam Plant $15m commencing to strategic partners production partners 2023. Re-engineering collection Products developed and full for the Australian m
Slide 17: Strategic Pillars for Long Term Profitable Growth
STRATEGIC PILLARS FOR LONG TERM PROFITABLE GROWTH 1 Premium 2 Operational 3 Global Surface Enhancement Footprint Player Investor Presentation 2024 17
Slide 18: Our Global Presence
OUR GLOBAL PRESENCE Our products are available worldwide in more than 60 countries in a combination of direct and indirect. Revenue 2023 US 48.6% CANADA CANADA UK 13.4% USA ISRAE CHINA AUSTRALIA L INDIA 18.8% EMEA SINGAPORE 10.6% S.E. ASIA Caesarstone Direct Sales 4.6% AUSTRALIA Caesarstone Distribu
Slide 19: Large & Attractive Addressable Market
LARGE & ATTRACTIVE ADDRESSABLE MARKET We increased our addressable market through penetration of new product categories Material Segmentation Sales 2022 (% Volume, By Value1,2) Marble Laminate 7% 8% Granite Solid Surface 28% 24% $160B1,2 Global Counter-top Market Porcelain 2% Other ExistingProduct E
Slide 20: U.S. - Our Primary Market and Opportunity
U.S. - OUR PRIMARY MARKET AND OPPORTUNITY Accelerated growth of Quartz & Porcelain market share in the fastest growing countertop market USA Total Market Size Countertop Demand by Material 2022-2026 CAGR (By Value) (% Volume, $ Value1,2) (By Volume) Marble Granite Total 4.0% ($2.7B) ($7.1B) 6% 80.9M
Slide 21: Canada – Strong Market Position
CANADA – STRONG MARKET POSITION Accelerated growth of Quartz & Porcelain market share Canada Total Countertop Demand by Material 2022-2026 CAGR Market Size (% Volume, $ Value1) (By Volume) (By Volume) Granite Porcelain Total 1.2% ($0.3B) 12% 5% 6.2M Marble 1% -1.3% Laminates Solid Surfaces 2.1% SQM
Slide 22: Australia – Leading Market Position
AUSTRALIA – LEADING MARKET POSITION Expecting to maintain our leading position as we introduce our high-quality alternative products in the first half of 2024 Australia Total Countertop Demand by Material Australia Market Update Market Size (% Volume, $ Value1) (By Volume) Engineered Quartz getting
Slide 23: Financial Summary & Outlook
FINANCIAL SUMMARY & OUTLOOK
Slide 24: Q2'24 Financial Performance
Q2’24 FINANCIAL PERFORMANCE 16.3% CCB Revenue ($M) 16.9% Reported Adjusted Gross Margin ($M) 106% pp $143.7 $119.4 $28.4 $13.8 Q2'23 Q2'24 Q2'23 Q2'24 % margin 9.6% 23.8% • Improved production source mix • Lower Volume CCB*: (13.8%) (15.9%) (20.8)% (38.9%) • Lower row materials cost • Lower ASP (pro
Slide 25: Liquidity, Cash Flow and Capital Deployment
LIQUIDITY, CASH FLOW AND CAPITAL DEPLOYMENT CAPITAL POSITION PROVEN RECORD DISCIPLINED CAPITAL OF CASH GENERATION DEPLOYMENT Cash Position 3-year4 avg. • Organic growth – Investment in S&M, $103.6M 1,2 +50% R&D operating cash flow Net Cash Position of Adj. EBITDA • M&A flexibility $97.7M 3 Prudent m
Slide 26: Revenue & Profitability – Annual View
REVENUE & PROFITABILITY – ANNUAL VIEW Revenue ($M) Adjusted Gross Profit and % Margin ($M) 690.8 643.9 28.8% 27.3% 575.9 565.2 27.7% 26.8% 546.0 23.8% 486.4 165.7 172.7 164.1 17.0% 149.1 134.9 95.9 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 Adj. EBITDA and % Margin ($M) Adj. Net Inc
Slide 27: Adjusted Gross Profit Reconciliation
ADJUSTED GROSS PROFIT RECONCILIATION USD (0,000) 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A 2022A 2023A Gross profit $189,651 $200,225 $212,486 $197,223 $163,414 $148,639 $133,942 $171,498 $163,245 $91,939 Non- recurring import related (income) expenses 2,104 (1,501) - - - - - - - - Share based
Slide 28: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION USD (0,000) 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A 2022A 2023A Net income (loss) $80,256 $79,458 $76,483 $27,558 $24,568 $12,862 $7,622 $17,889 ($56,366) ($108,240) Finance Expense (income), net 1,048 3,085 3,318 5,583 3,639 5,578 10,199 7,590 (3,079) (1,069)
Slide 29: Adjusted Net Income (Loss) Reconciliation
ADJUSTED NET INCOME (LOSS) RECONCILIATION USD (0,000) 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A 2022A 2023A Net income (loss) attributable to controlling interest $78,436 $77,766 $74,596 $26,202 $24,405 $12,862 $7,218 $18,966 ($57,054) ($107,656) Legal settlements and loss contingencies (1) -
Slide 30: Thank You
THANK YOU