Al Hassan Ghazi Ibrahim Shaker Co. · TADAWUL:1214
Al Hassan Ghazi Ibrahim Shaker — H1 2021 Earnings Presentation
29 slides from Al Hassan Ghazi Ibrahim Shaker's earnings presentation, Jun 30, 2021
Slide 1: Earnings Presentation – H1 2021
Shaker Earnings Presentation – H1 2021 as at 30 June 2021
Slide 2: Core products
Core products 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 Ceiling Chillers appliances Window A/C concealed duct Fan coil unit Home laundry Irons A/C appliances Small cooking Floor standing VRF Ducte
Slide 3: Brand portfolio
Brand portfolio Air Conditioners Home Appliances Competitive positioning High-end Brand portfolio Flexibility targets most consumer segments Low-end Functionality Page 3
Slide 4: In focus: LG-Shaker manufacturing
In focus: LG-Shaker manufacturing • Current products: Window, Wall mounted Split units, Concealed units, Cassette units, Free stand units, Single Package units, Air Handling Units • Year opened: 2008 • Site size: 75,000 square meters Integration of robotics 900K units Alignment with Vision and AI to
Slide 5: Attractive industry experiencing growth
Attractive industry experiencing growth Mega projects in Saudi will see investment of 3 Alignment with socioeconomic objectives of in two key areas: Superior technology for the Saudi market Saudi air conditioner market forecast to reach Creation of new sectors 1 and domestic projects Nationwide ener
Slide 6: Highlights: H1 2021
Highlights: H1 2021 net profit in revenue Y-o-Y in KSA employee costs Gross profit increase Y-o-Y Ongoing enhancement of Earnings per share reached introduced at the LG- Shaker factory in Riyadh Infrastructure upgraded Page 6
Slide 7: Key messages: H1 2021
Key messages: H1 2021 ▪ Four sequential quarters of sustained improvement in profitability ▪ Sustained pursuit of opportunities emerging from government mandated mega projects across the Kingdom ▪ Successfully entered the TV segment through addition of Panasonic brand to our portfolio ▪ Investing su
Slide 8: Performance highlights
Performance highlights Strong top-line performance and sustained profitability improvements 350.0 25.0% 21.3% 21.1% 288.3 289.5 300.0 20.0% 21.2% 267.8 19.5% 20.0% 247.5 250.0 SAR million 196.5 15.0% 200.0 % 150.0 10.0% 3.7% 100.0 2.8% 1.8% 1.6% 0.9% 57.6 61.3 52.1 52.7 5.0% 50.0 41.4 7.6 4.4 1.7 4.
Slide 9: Business Profile
BUSINESS PROFILE
Slide 10: Strategy overview
Strategy overview • Become top 3 supplier in existing business segments & add new brands and products to portfolio • B2B and after sales revamp – increase presales and capture mega project opportunities • Boost e-commerce sales 2023 targets High single digit percentage • Increase brand awareness and
Slide 11: Growth avenue highlights
Growth avenue highlights 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 diversity of the government repla
Slide 12: Financial Performance
FINANCIAL PERFORMANCE Page 12
Slide 13: Sales growth
Sales growth Revenue growth driven by improved sales infrastructure +18.2% 1H Segmental revenues (SAR m) Revenue growth in H1 2021 driven by 577.8 2.7 improved sales strategy 488.8 ▪ Enhancements to group-wide IT framework +8.1% and upgraded security infrastructure SAR million 289.5 265.9 ▪ Supply c
Slide 14: Profitability
Profitability Gross Profit (SAR million) Net profit/(loss) (SAR million) % = GP margin % = NP margin 23% 1% 3.7% 195.0 10.8 10.1 2.8% 7.6 1.8% 0.9% 1.6% 22.3% 19.5% 21.3% 21.1% 20.0% 21.2% 4.4 4.5 57.6 61.3 49.3 52.1 52.7 41.4 1.7 FY 2020 Q1 2020 Q2 2020* Q3 2020 Q4 2020 Q1 2021 Q2 2021 FY 2020 Q1 2
Slide 15: EBITDA & RoE
EBITDA & RoE EBITDA (SAR million) Return on Equity (%) 60 56 9% 8% 8% 2.0% 50 7% 6% 7% 40 6% 6% 6% 6% 5% 1.0% 1.0% 30 5% 24 4% 0.6% 20 17 3% 0.3% 15 16 14 10 2% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 10 1% -0.5% 0 0% FY 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 EBITDA EBITDA % Pa
Slide 16: Trade receivables vs. inventory trend
Trade receivables vs. inventory trend Trade Receivable Trend (SAR '000) Inventories Trend (SAR '000) 800,000 700,000 Breakthrough Program introduced 600,000 to reduce costs, optimize inventory 500,000 400,000 Inventory levels increased in H1 300,000 response to supply shortages 200,000 Q1 Q2 Q3 Q4 Q
Slide 17: Cash flow: operational and financing
Cash flow: operational and financing Cash Flow From Operations Trend (SAR ‘000) 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) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2017 2017 2017 2018 20
Slide 18: Capital structure
Capital structure Capital Structure (SAR million / %) 700 657 80% 652 640 646 649 653 625 76% 600 70% 62% 63% 60% 59% 60% 57% 61% 500 50% 388 400 40% 299 300 278 278 242 237 237 30% 200 160 169 20% 110 122 110 101 100 84 10% 0 0% FY 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Equity LTL STL
Slide 19: STLs & MTLs trend
STLs & MTLs trend Short Term Loans Trend (SAR ‘000) 801,444 797,622 695,160 713,655 704,065 666,666 646,367 531,457 462,062 445,071 412,617 302,667 242,394 237,277 237,330 278,228 299,128 388,138 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019
Slide 20: Appendix I: About the Company
APPENDIX I: ABOUT THE COMPANY Page 20
Slide 21: What is Shaker Group?
Exclusive Saudi distributor for five internationally acclaimed home appliances brands: • Maytag (1980) • Ariston (1994) • Indesit (2005) Subsidiary: ESCO • Midea (2008) • Energy saving consultancy • Bissell (2015) and retrofitting services Origins dating What is back to 1950 Shaker Group? Shaker Gro
Slide 22: Corporate milestones
Corporate milestones A history of success stories and key milestones Launched Launch of the Breakthrough KSA Part acquisition Capital increase Air Conditioners Transformation Manufacturing of Energy from SAR 350 (Sole Program (2019) Arm - Joint Management million to SAR Distribution Venture signed S
Slide 23: Shareholding structure & information
Shareholding structure & information Shareholding structure Share information Market Tadawul, Saudi Arabia 12.2% Currency SAR Listing date May 2010 9.9% Financial year-end 31 December Lafana Holding Tawazon Arabia Co Authorized capital (SAR) 630,000,000 5.7% Lama Holding Issued shares 63,000,000 Oth
Slide 24: Appendix II: Financials
APPENDIX II: FINANCIALS Page 24
Slide 25: Income statement
Income statement SAR ‘000 2019 2020 Q1 2021 Q2 2020 Q2 2021 Q2 2020 (restated) Sales 882, 822 932,699 288,301 288,301 267,773 289,481 Cost of sales (717,176) (737,139) (230,670) (230,670) (215,655) (228,149) Gross profit 165,646 195,560 57,631 57,631 52,118 61,332 S&D expenses (104,454) (95,567) (30
Slide 26: Cash flow statement
Cash flow statement SAR ‘000 2019 2020 Q1 2021 Q2 2021 Cash flows from operating activities Profit/(loss) for the period (50,860) 10,134 4,538 22,054 Adjustments: 9,223 64,597 16,713 23,585 Changes in operating assets & liabilities 262,739 (55,964) (21,378) (97,946) Employees’ end of service benefit
Slide 27: Balance sheet
Balance sheet SAR ‘000 2019 2020 Q1 2021 Q2 2021 ASSETS Non-current assets 719,090 682,851 690,129 672,977 Current assets 748,181 756,813 865,002 884,286 Total assets 1,467,271 1,439,664 1,555,131 1,557,263 EQUITY Total equity attributable to shareholders 624,012 632,007 622,296 611,388 Total equity
Slide 28: 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 29: Contact
CONTACT MR. HOSSAM AKKAD VICE PRESIDENT FINANCE HOSSAM_AKKAD@SHAKER.COM.SA +966-11-2638900 Page 29
Al Hassan Ghazi Ibrahim Shaker — H1 2021 Earnings Presentation on 6ix