Rak Ceramics Pjsc · ADX:RAKCEC

Rak Ceramics Pjsc — Q3 2022 Earnings Presentation

30 slides from Rak Ceramics Pjsc's earnings presentation, November 2022

  1. Slide 1: Earnings Presentation – Q3 & 9M 2022 Results

    EARNINGS PRESENTATION – Q3 2022 RESULTS EARNINGS PRESENTATION – Q3 & 9M 2022 RESULTS NOVEMBER 2022 RAK Ceramics PJSC © 2022 All rights reserved

  2. Slide 2: Agenda

    EARNINGS PRESENTATION – Q3 2022 RESULTS Agenda 01 | Executive Summary 02 | Business Highlights 03 | Q3 & 9M 2022 Financial Results Update 04 | Trading Update 05 | Closing Remarks 06 | Appendix RAK Ceramics PJSC © 2022 All rights reserved 2

  3. Slide 3: Speakers

    EARNINGS PRESENTATION – Q3 2022 RESULTS Speakers Abdallah Massaad PK Chand Group Chief Executive Officer Group Chief Financial Officer Abdallah Massaad is Group CEO of RAK Ceramics and has more than 24 years Pramod Kumar Chand is Group CFO of RAK Ceramics. Mr. Chand has wide experience experience in

  4. Slide 4: Disclaimer

    EARNINGS PRESENTATION – Q3 2022 RESULTS Disclaimer This information contained in the enclosed presentation summarizes preliminary Accordingly all potential recipients are expected to conduct their own due diligence and introductory information on RAK Ceramics PJSC (the Company). This on the informat

  5. Slide 5: Executive Summary

    EARNINGS PRESENTATION – Q3 2022 RESULTS EXECUTIVE SUMMARY Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2022 All rights reserved 5

  6. Slide 6: Q3/9M 2022 Highlights

    EARNINGS PRESENTATION – Q3 2022 RESULTS Q3/9M 2022 Highlights Solid performance building on strong operational capabilities midst macroeconomic headwinds Persistent challenges • Energy crisis triggered by Russia-Ukraine war and coupled with vulnerable supply weighing in on several • Continued inflat

  7. Slide 7: Business Highlights

    EARNINGS PRESENTATION – Q3 2022 RESULTS BUSINESS HIGHLIGHTS Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2022 All rights reserved 7

  8. Slide 8: Q3 2022 Key Market Updates

    EARNINGS PRESENTATION – Q3 2022 RESULTS Q3 2022 Key Market Updates United Arab Emirates Saudi Arabia India Bangladesh Europe Robust performance Slowdown in top-line Macroeconomic Almost stagnant top- Decline in revenues bolstered by growing QoQ growth due to conditions weighed in line, hindered by d

  9. Slide 9: Q3 2022 Key Strategic Updates

    EARNINGS PRESENTATION – Q3 2022 RESULTS Q3 2022 Key Strategic Updates Land Allocation in RAK Porcelain Advancements on Sale of Asset in Saudi Arabia Minority Buy-out Expansionary Fronts Australia RAK Ceramics signed a As of the 30th of September UAE expansion project RAK Ceramics executed Conditiona

  10. Slide 10: 2022 Macro Challenges

    EARNINGS PRESENTATION – Q3 2022 RESULTS 2022 Macro Challenges Critical Parameters Key Challenges Our Action Inflation surge across the globe fueled by • Maintain price increases applied earlier this year while increase in cost of living and challenging remaining in line with the market Inflationary

  11. Slide 11: Q3 & 9M 2022 Financial Results Update

    EARNINGS PRESENTATION – Q3 2022 RESULTS Q3 & 9M 2022 FINANCIAL RESULTS UPDATE Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2022 All rights reserved 11

  12. Slide 12: Q3 2022 Performance Snapshot

    EARNINGS PRESENTATION – Q3 2022 RESULTS Q3 2022 Performance Snapshot Total revenue increased by +32.4% Total gross profit margin decreased Total EBITDA increased to AED 145.8m YoY to AED 906.4m driven by increase by -3.2% YoY to reach 35.0% due to compared to 123.2m in last year. Margin in tiles (+1

  13. Slide 13: 9M 2022 Performance Snapshot

    EARNINGS PRESENTATION – Q3 2022 RESULTS 9M 2022 Performance Snapshot Total revenue increased by +24.1% Total gross profit margin remained Total EBITDA increased to AED 439.7m YoY to AED 2.62bn as of 9M 2022 almost stable YoY at 36.8% despite as of 9M 2022 compared to 379.2m in versus AED 2.11bn in 9

  14. Slide 14: Financial Highlights

    EARNINGS PRESENTATION – Q3 2022 RESULTS Financial Highlights QUARTERLY COMPARISON YEARLY COMPARISON Q3 21 Q2 22 Q3 22 9M 21 9M 22 Amount in AED M Amount Amount Amount YoY Growth QoQ Growth Amount Amount YoY Growth Revenue 684.8 927.0 906.4 32.4% -2.2% 2,108.3 2,616.5 24.1% Gross margin (%) 38.2% 38.

  15. Slide 15: Revenue Highlights Q3 2022

    EARNINGS PRESENTATION – Q3 2022 RESULTS Revenue Highlights Q3 2022 MANAGEMENT COMMENTS QUARTERLY COMPARISON TOTAL REVENUE (AEDM) Total revenue increased by +32.4% YoY to Q3 21 Q2 22 Q3 22 reach AED 906.4m driven by all core markets. Tiles TW Others QoQ SW Faucets Amount Amount Amount YoY Growth Tile

  16. Slide 16: Revenue Highlights 9M 2022

    EARNINGS PRESENTATION – Q3 2022 RESULTS Revenue Highlights 9M 2022 MANAGEMENT COMMENTS TOTAL REVENUE (AEDM) YEARLY COMPARISON Total revenue in 9M 2022 increased by +24.1% 9M 21 9M 22 Tiles TW Others YoY to AED 2.62bn driven by Tiles (+12.0%), SW (+6.1%) and TW (+55.2%) YoY. SW Faucets Amount Amount

  17. Slide 17: Gross Profit Margins

    EARNINGS PRESENTATION – Q3 2022 RESULTS Gross Profit Margins MANAGEMENT COMMENTS TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) Total gross profit margin stood at 36.8%, recording a decrease of 3.2% versus last year 40.1 and -0.3% for 9M ending September compared 38.2 38.4 37.1 36.8 38.2 37.3 37.8

  18. Slide 18: Profitability Bridge

    EARNINGS PRESENTATION – Q3 2022 RESULTS Profitability Bridge Q3 2022 vs Q3 2021 Profit Bridge (AEDM) 3.3 8.7 55.4 38.1 18.5 2.8 0.0 90.1 63.4 63.4 Net profit/(loss) Less: Net One- NP (Excl. one-off Higher Gross Higher freight for Higher SG&A - Kludi Group Others (net) Net gain on Net Profit Q3 22 Q3

  19. Slide 19: Balance Sheet Highlights

    EARNINGS PRESENTATION – Q3 2022 RESULTS Balance Sheet Highlights MANAGEMENT COMMENTS WORKING CAPITAL (AEDM) WORKING CAPITAL CYCLE (LTM DAYS) Overall working capital cycle decreased from 1,454 1,428 155 days in Q2 2022 to 149 days in Q3 2022 1,295 1,262 1,303 175 167 157 155 149 (excluding sale proce

  20. Slide 20: Share Price Update

    EARNINGS PRESENTATION – Q3 2022 RESULTS SHARE PRICE UPDATE Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2022 All rights reserved 20

  21. Slide 21: RAK Ceramics Share Price Movement

    EARNINGS PRESENTATION – Q3 2022 RESULTS RAK Ceramics Share Price Movement AED CURRENT VALUATION (AED M) RAK CERAMICS (RAKCEC) SHARE PRICE PERFORMANCE (AED) WAP 2.90 07/11/2022 31/12/2021 52 week high 3.27 Amount Amount 52 week low 2.69 Share price 2.90 2.85 As of 7th November 2022 7th February 2022

  22. Slide 22: Closing Remarks

    EARNINGS PRESENTATION – Q3 2022 RESULTS CLOSING REMARKS Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2022 All rights reserved 22

  23. Slide 23: 2022 Priorities

    EARNINGS PRESENTATION – Q3 2022 RESULTS 2022 Priorities Protect market share Production expansion Explore untapped market potential Protect market share across all core Build, acquire and enhance production Increase market share in nascent markets markets and segments albeit increased plants to incr

  24. Slide 24: Q&A

    EARNINGS PRESENTATION – Q3 2022 RESULTS Q&A Abdallah Massaad PK Chand Group CEO Group CFO RAK Ceramics PJSC © 2022 All rights reserved 24

  25. Slide 25: Appendix

    EARNINGS PRESENTATION – Q3 2022 RESULTS APPENDIX RAK Ceramics PJSC © 2022 All rights reserved 25

  26. Slide 26: Tiles Revenues by End Market

    EARNINGS PRESENTATION – Q3 2022 RESULTS Tiles Revenues by End Market QUARTERLY COMPARISON YEARLY COMPARISON Q3 21 Q2 22 Q3 22 9M 21 9M 22 Amount in AED M Amount Amount Amount Growth YoY Growth QoQ Amount Amount Growth YoY United Arab Emirates 95.4 128.6 126.1 32.2% -1.9% 320.2 366.4 14.4% Kingdom of

  27. Slide 27: Sanitaryware Revenues by End Market

    EARNINGS PRESENTATION – Q3 2022 RESULTS Sanitaryware Revenues by End Market QUARTERLY COMPARISON YEARLY COMPARISON Q3 21 Q2 22 Q3 22 9M 21 9M 22 Amount in AED M Amount Amount Amount Growth YoY Growth QoQ Amount Amount Growth YoY United Arab Emirates 29.2 35.9 33.6 15.1% -6.4% 91.3 110.0 20.4% Kingdo

  28. Slide 28: EBITDA Workings

    EARNINGS PRESENTATION – Q3 2022 RESULTS EBITDA Workings QUARTERLY COMPARISON YEARLY COMPARISON Q3 21 Q2 22 Q3 22 9M 21 9M 22 Amount in AED M Amount Amount Amount Amount Amount Net profit/(loss) after tax 63.4 102.2 90.1 221.0 262.1 Tax 3.7 5.4 6.6* 11.5 18.9* Interest- net 13.7 15.5 20.2 43.0 47.9 D

  29. Slide 29: Like-for-Like Profit Workings

    EARNINGS PRESENTATION – Q3 2022 RESULTS Like-for-Like Profit Workings QUARTERLY COMPARISON YEARLY COMPARISON Q3 21 Q2 22 Q3 22 9M 21 9M 22 Amount in AED M Amount Amount Amount Net profit /(loss) after tax 63.4 102.2 90.1 221.0 262.1 Add: Extra-ordinary impairment on trade receivables - 27.6 - 27.2 2

  30. Slide 30: Thank You

    EARNINGS PRESENTATION – Q3 2022 RESULTS Thank You CONTACT US If you have any questions or require further information, please do not hesitate to contact our investor relations department. Investor Relations Nadine Nasr Investor Relations Manager RAK Ceramics PJSC P.O. Box: 4714, Ras Al Khaimah, Unit

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