Bawan Co. · TADAWUL:1302
Bawan — FY2022 Earnings Presentation
36 slides from Bawan's earnings presentation, 2023
Slide 1: Earnings Presentation FY 2022
EARNINGS PRESENTATION FY 2022 | EARNINGS PRESENTATION | FY 2022| BAWAN
Slide 2: Table of contents
Table of contents Disclaimer 03 Who We Are 04 Key Highlights 11 Macro Overview 13 Financial Perspective 19 Environmental Social Governance 34 | EARNINGS PRESENTATION | FY 2022| BAWAN
Slide 3: Disclaimer
Disclaimer This presentation has been prepared solely for use as the earnings presentation of Bawan Company (or “The Group”). 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
Slide 4: Who We Are
Who We Are 04 | EARNINGS PRESENTATION | FY 2022| BAWAN
Slide 5: Who We Are: sectors of operation
Who We Are We operate in 5 sectors: ELECTRIC METAL WOOD PLASTIC CONCRETE 05 | EARNINGS PRESENTATION | FY 2022| BAWAN
Slide 6: Who We Are: Group Structure
Who We Are Group Structure 3 4 Saudi Bina Engineering Consultancy Co 06 | EARNINGS PRESENTATION | FY 2022| BAWAN
Slide 7: Our Major Clients Expect High Standards
Who We Are Our Major Clients Expect High Standards 07 | EARNINGS PRESENTATION | FY 2022| BAWAN
Slide 8: Vision and Mission
Who We Are VISION Bawan strives to become the leading group in the Kingdom of Saudi Arabia and the Middle East in the capital goods sector. MISSION To enhance Bawan’s customers loyalty by providing market-leading and innovative products and services, through its existing sectors and new sectors in t
Slide 9: Business Case
Who We Are Business Case Strong & Diversified Unique Business Mix Barriers to Entry Customer Base Investment in quality assets, systems, and people Qualified & Experienced Exposure to high growth Lengthy customer pre-qualification processes Management Team sectors Long-term customer relationships 09 |
Slide 10: Strategy
Who We Are Strategy A well defined strategy enhanced by our core value Strengthen relationship Continue to improve Invest in Expand Product Enhance Existing Pursue Selective with existing customers operations New Products Capacity Product Acquisitions 10 | EARNINGS PRESENTATION | FY 2022| BAWAN
Slide 11: Key Highlights
Key Highlights 11 | EARNINGS PRESENTATION | FY 2022| BAWAN
Slide 12: Key Highlights
Key Highlights Revenue Operating Net Income Normalized EBITDA Net Operating Net Debt Total Asset Income N.I* cash flow FY 2022 3,631.9 225.7 162.9 159.4 308.0 337.9 556.0 2,283.0 FY 2021 3,227.4 193.9 170.3 150.8 283.4 313.5 658.2 2,202.8 Change% 13% 16% -4% 6% 9% 8% -16% 4% *Normalized Net income ex
Slide 13: Macro Overview
Macro Overview 13 | EARNINGS PRESENTATION | FY 2022| BAWAN
Slide 14: Saudi Arabia Outlook (IMF)
Macro Overview Saudi Arabia Outlook (IMF) Favorable outlook supported by higher oil prices and increasing 1- Saudi GDP grows 5.4% in Q4 2022, 8.7% in 2022 2- Saudi Arabia's revenues for the 2023 state budget are estimated at SAR 1.130 trillion, with a forecast expenditure of SAR 1.114 trillion with
Slide 15: Macro Overview: Inflation and Brent Oil Price
Macro Overview Inflation Brent Oil Price The inflation rate in Saudi Arabia for Q4 2022 was 3.3% much higher than As December prices increased slightly 1% QoQ due to concerns about the the 1.2% reported in the same period last year as a result of the slowdown in global oil demand as oversupply fears p
Slide 16: Tadawul Index and Consumer Spending
Macro Overview Tadawul Index Consumer Spending The Tadawul All Share Index (TASI) continued to trend lower as Q4 Consumer spending in Saudi Arabia increased 9% in 2022 comparing to decreased 8% QoQ The decline was due to the selling pressures the global 2021, POS transactions rose 18% year-on-year (
Slide 17: Bawan Market Performance and Key Metrics
Macro Overview Bawan Market Performance Key Metrics Feb 28 2023 Bawan TASI Bawan Sector Market Cap SAR 1.76B 140 Shares Outstanding 60m 120 Price/earning 10.80 100 Operating P/E 7.80 Price / book value 2.04 80 Dividend Yield 5.5% 60 Market 40 P/E 16.36 20 P/E excluding loss making & Aramco 15.23 Pri
Slide 18: Saudi Arabia Outlook (IMF) Economic Indicators
Macro Overview Saudi Arabia Outlook (IMF) Economic Indicators 2021 2022F 2023F 2024F 2025F GDP , constant prices % 3.2 7.6 3.6 2.7 2.7 GDP , current prices SAR BN 3,125.8 3,900.6 3,832.1 3,852.0 3,920.9 GDP per capita, current prices SAR BN 88,152.3 107,847.3 103,876.4 102,368.3 102,155.0 Investment
Slide 19: Financial Perspective
Financial Perspective 19 | EARNINGS PRESENTATION | FY 2022| BAWAN
Slide 20: Company Performance: Net Income
Company Performance Net income (SAR Million) Normalized income (SAR Million) 170.3 162.9 180.0 180.0 159.4 150.8 160.0 160.0 140.0 140.0 120.0 120.0 90.2 88.3 100.0 100.0 80.0 80.0 60.0 60.0 40.0 40.0 20.0 20.0 0.0 0.0 FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022 20 | EARNINGS PRESENTATION | FY 2
Slide 21: Company Performance: Revenue, EBIT, EBITDA
Company Performance Revenue (SAR Million) EBIT (SAR Million) 3,632 230.6 4000 250.0 210.1 3,227 3500 200.0 3000 2,423 138.9 150.0 2500 2000 100.0 1500 50.0 1000 500 0.0 FY 2020 FY 2021 FY 2022 0 FY 2020 FY 2021 FY 2022 EBITDA (SAR Million) 350.0 308.0 283.4 300.0 217.3 250.0 200.0 150.0 100.0 50.0 0
Slide 22: Liquidity
Liquidity Assets Liabilities 1,600 2,500 1,400 198 183 2,000 741 755 1,200 186 749 1,000 1,500 800 1,000 600 1,453 1,461 1,528 500 400 1,211 1,229 1,167 200 0 0 FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022 Current Assets Non-current Assets Current Liabilities Non-current Liabilities Operating Cas
Slide 23: Segment Revenue
Segment Revenue SEGMENT REVENUE SEGMENT REVENUE SEGMENT REVENUE FY 2020 Concrete, 178.6 , 7% FY Concrete, 175.0 , 6% 2021 Concrete, 267.6 , 7% FY 2022 Electric, Electric, Electric, 341.9 , 14% 448.9 , 14% 608.6 , 17% Plastic, Plastic, 262.9 , 11% 365.0 , 11% Plastic, 366.1 , 10% Metal & Wood, Metal
Slide 24: Segment Performance
Segment Performance SEGMENT PROFIT SEGMENT PROFIT SEGMENT PROFIT Head office, (15.5), -8% FY 2020 Head office, FY 2021 Head office, (21.0), -10% FY 2022 Concrete, (22.8), -9% Concrete, 0.4 , 0% 16.2 , 7% Electric, Concrete, (40.5), -21% (18.1), -7% Electric, Electric, 27.4 , 13% Plastic, 7.1 , 3% 15.7 , 8
Slide 25: Average Capacity Utilization
Average Capacity Utilization Metal & Wood Electric Concrete Plastic 78% 91% 95% 68% * The group operates in agile model, accordingly capacity can be increased by adding more labor, working hours and number of shift. 25 | EARNINGS PRESENTATION | FY 2022| BAWAN
Slide 26: Normalized Return Realization
Normalized Return Realization ROA ROE 8.0% 7.1% 6.8% 25.0% 20.7% 20.2% 7.0% 6.0% 20.0% 5.0% 13.4% 3.9% 15.0% 4.0% 3.0% 10.0% 2.0% 5.0% 1.0% 0.0% 0.0% FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022 ROCE EPS 14.8% 2.7 16.0% 3.00 13.0% 2.5 14.0% 2.50 12.0% 8.6% 2.00 10.0% 1.5 8.0% 1.50 6.0% 1.00 4.0%
Slide 27: Liquidity & Leverage
Liquidity & Leverage Current Ratio Leverage 2.0 1.8 1.8 1.35 1.3 1.8 1.5 1.6 1.30 1.4 1.25 1.2 1.2 1.2 1.0 1.20 0.8 0.6 1.15 0.4 0.2 1.10 - FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022 27 | EARNINGS PRESENTATION | FY 2022| BAWAN
Slide 28: Debts & CapEx
Debts & CapEx Capital Expenditure Short term debt Long term debt Expected 2023 68,300 FY 2022 468,505 FY 2022 125,904 * FY 2022 82,151 FY 2021 552,963 FY 2021 145,535 FY 2021 47,353 FY 2020 522,667 FY 2020 184,092 FY 2020 51,798 *FY 2022 includes mainly - Plastic reinstallment of XPS factory - Plast
Slide 29: Proficiency Ratios
Proficiency Ratios Cash Conversion Cycle Turnover Ratios Days Inventory Outstanding "DIO" 7.0 FY 2022 82 6.73 6.74 FY 2021 87 6.0 FY 2020 105 5.0 5.74 5.31 0 10 20 30 40 50 60 70 80 90 100 110 4.66 4.0 3.60 Days Receivable Outstanding "DRO" 3.0 FY 2022 64 101 2.0 3.49 4.20 4.47 FY 2021 69 1.0 FY 2020
Slide 30: Appendix - I Statement of Income
Appendix - I Statement of Income Dec 31, 2020 SR'000 Dec 31, 2021 SR'000 Dec 31, 2022 SR'000 Revenue 2,423,285 3,227,410 3,631,880 Cost of sales (2,081,420) (2,801,938) (3,184,562) Gross profit 341,865 425,472 447,318 Selling and distribution expenses (75,525) (86,429) (93,200) Administrative expense
Slide 31: Appendix - II Balance Sheet
Dec 31, 2020 Dec 31, 202 Dec 31, 2022 Appendix - II SR'000 SR'000 SR'000 Property, plant and equipment 714,691 709,840 719,943 Balance Sheet Right-of-use assets Goodwill and other intangible assets 20,084 10,874 18,485 4,397 24,545 7,848 Other non-current assets 3,020 8,635 2,487 Total non-current a
Slide 32: Appendix - III Summarized Cash Flows
Appendix - III Summarized Cash Flows Dec 31, 2020 Dec 31, 2021 Dec 31, 2022 SR'000 SR'000 SR'000 Cash Flow from Operations * 255,872 313,524 337,907 Investing cash flows (22,394) 6,696 (92,176) Financing cash flows (180,383) (160,454) (209,377) Cash and cash equivalents 51,098 40,305 38,401 32 | EARNI
Slide 33: Appendix - I Normalized Statement of Income
Appendix - I Normalized Statement of Income Dec 31, 2020 SR'000 Dec 31, 2021 SR'000 Dec 31, 2022 SR'000 Revenue 2,423,285 3,227,410 3,631,880 Cost of sales (2,081,420) (2,801,938) (3,184,562) Gross profit 341,865 425,472 447,318 Selling and distribution expenses (75,525) (86,429) (93,200) Administrat
Slide 34: Environmental Social Governance
Environmental Social Governance 34 | EARNINGS PRESENTATION | FY 2022| BAWAN
Slide 35: Environmental Social Governance
Environmental Social Governance Q2 - 2022 Q3 - 2022 Q4 - 2022 Contracted with leading Developed ESG Strategy Publishing the first ESG consultancy firm & Roadmap Annual ESG Report Bawan has been always committed to sustainability and corporate social responsibility best practices. After the publication
Slide 36: Q&A
Q&A