Bawan Co. · TADAWUL:1302
Bawan — Q2 2023 Earnings Presentation
30 slides from Bawan's earnings presentation, 2023
Slide 1: Investor Presentation Q2 2023
INVESTOR PRESENTATION Q2 2023 | INVESTOR PRESENTATION | Q2 2023| BAWAN
Slide 2: Table of contents
Table of contents Disclaimer 03 Who We Are 04 Key Highlights 11 Macro Overview 13 Financial Perspective 18 | INVESTOR PRESENTATION | Q2 2023| 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 | INVESTOR PRESENTATION | Q2 2023| BAWAN
Slide 5: Who We Are: sectors of operation
Who We Are We operate in 5 sectors: ELECTRIC METAL WOOD PLASTIC CONCRETE 05 | INVESTOR PRESENTATION | Q2 2023| BAWAN
Slide 6: Group Structure
Who We Are Group Structure * 3 4 Saudi Bina Engineering Consultancy Co * The company signed a binding MoU to sell its entire share in the concrete industries sector (Bina Holding), and therefore the results of the sector were included in the discontinued operations 06 | INVESTOR PRESENTATION | Q2 20
Slide 7: Our Major Clients Expect High Standards
Who We Are Our Major Clients Expect High Standards 07 | INVESTOR PRESENTATION | Q2 2023| 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 | INVESTOR PRESENTATION | Q2 2023| BAWAN
Slide 11: Key Highlights
Key Highlights 11 | INVESTOR PRESENTATION | Q2 2023| BAWAN
Slide 12: Key Highlights
Key Highlights Revenue Operating Net Income EBITDA Net Operating Interest bearing Total Asset Income cash flow Net debt Q2 2023 1,660.5 84.0 59.6 129.0 125.2 372.2 2,299.4 Q2 2022 1,691.4 121.9 94.9 154.0 169.7 613.9 2,304.6 Change% -2% -31% -37% -16% -26% -39% 0% All Amounts in SAR Millions Appendix
Slide 13: Macro Overview
Macro Overview 13 | INVESTOR PRESENTATION | Q2 2023| BAWAN
Slide 14: Saudi Arabia Outlook
Macro Overview Saudi Arabia Outlook 1- Saudi GDP grows 3.8% in Q1 2023, 5.4% in Q4 2022 2- Saudi Arabia posted a trade surplus of SAR 29.5 billion ,Oil exports dropped by 38% to SAR 72 billion, while non-oil exports fell by 9% to SAR 25.1 billion in May 3- Residential real estate finance provided by
Slide 15: Inflation and Brent Oil Price
Macro Overview Inflation Brent Oil Price The inflation rate in Saudi Arabia increased 22% in June 2023 compared to Brent oil prices decreased 31% in Q2 2023 compared to same period last Q2 2022 as a result of the continuous improvement in domestic private year mainly due to concerns about the slowdown
Slide 16: Tadawul Index and Consumer Spending
Macro Overview Tadawul Index Consumer Spending The Tadawul All Share Index (TASI) trend higher as Q2 increased 8% QoQ Consumer spending in Saudi Arabia increased 8% in May 2023 as a result of the approaching end of the monetary tightening cycle and comparing to 2022. the easing of interest rate hike
Slide 17: Bawan Market Performance
Macro Overview Bawan Market Performance Key Metrics * annualized July 30 2023 Bawan TASI Bawan Sector Market Cap SAR 2.16B Shares Outstanding 60m 120 Price/earning 16.94 100 Price / book value 2.46 Dividend Yield 4.2% 80 60 Market P/E 15.34 40 P/E excluding lose making & aramco 19.39 20 Price/book v
Slide 18: Financial Perspective
Financial Perspective 18 | INVESTOR PRESENTATION | Q2 2023| BAWAN
Slide 19: Company Performance
Company Performance Revenue (SAR Million) EBIT (SAR Million) 1,691 112.6 1,700 120.0 105.0 1,680 1,661 100.0 1,660 80.0 76.2 1,640 1,620 60.0 1,578 1,600 40.0 1,560 20.0 1,540 1,520 0.0 Q2 2021 Q2 2022 Q2 2023 Q2 2021 Q2 2022 Q2 2023 EBITDA (SAR Million) Net income (SAR Million) 94.9 160.0 154.0 100
Slide 20: Liquidity
Liquidity Assets Liabilities 1,600 2,500 1,400 674 183 2,000 755 1,200 186 741 165 1,000 1,500 800 1,000 600 1,461 1,528 1,625 500 400 1,229 1,168 1,010 200 0 0 FY 2021 FY 2022 Q2 2023 FY 2021 FY 2022 Q2 2023 Current Assets Non-current Assets Current Liabilities Non-current Liabilities Operating Cas
Slide 21: Segment Revenue
Segment Revenue SEGMENT REVENUE SEGMENT REVENUE SEGMENT REVENUE Q2 2021 Electric, Q2 2022 Q2 2023 Electric, 255.5 , 16% Electric, 372.3 , 22% 319.2 , 19% Plastic, 167.4 , 11% Plastic, 189.3 , 11% Plastic, 177.1 , 11% Metal & Wood, Metal & Wood, Metal & Wood, 1,182.9 , 70% 1,111.1 , 67% 1,154.7 , 73%
Slide 22: Segment Performance
Segment Performance SEGMENT PROFIT SEGMENT PROFIT SEGMENT PROFIT (12.3), -10% Concrete, Q2 2021 Head office, Head office, Q2 2022 (1.3), -2% Concrete, Q2 2023 Head office, (8.2), -7% (14.7), -11% (5.4), -7% Electric, Metal & Wood, 0.7 , 0% Concrete, 18.9 , 25% (2.1), -2% Plastic, Electric, 21.2 , 17% 9.6
Slide 23: Annualized Return Realization
Annualized Return Realization ROA ROE 9.0% 8.0% 25.0% 22.5% 22.5% 8.0% 6.6% 7.0% 20.0% 5.6% 6.0% 14.6% 5.0% 15.0% 4.0% 10.0% 3.0% 2.0% 5.0% 1.0% 0.0% 0.0% Q2 2021 Q2 2022 Q2 2023 Q2 2021 Q2 2022 Q2 2023 ROCE EPS 15.0% 14.5% 3.50 3.01 14.5% 3.00 14.0% 2.47 2.50 2.13 13.5% 13.0% 2.00 12.2% 12.3% 12.5%
Slide 24: Liquidity & Leverage
Liquidity & Leverage Current Ratio Leverage 2.0 1.80 1.61 1.70 1.8 1.60 1.34 1.6 1.40 1.40 1.23 1.23 1.4 1.20 1.2 1.00 1.0 0.80 0.8 0.60 0.6 0.40 0.4 0.20 0.2 - - FY 2021 FY 2022 Q2 2023 FY 2021 FY 2022 Q2 2023 24 | INVESTOR PRESENTATION | Q2 2023| BAWAN
Slide 25: Debts & CapEx
Debts & CapEx Capital Expenditure Short term debt Long term debt Total debt Q2 2023 47,365 Q2 2023 314,749 Q2 2023 115,647 Q2 2023 430,396 Q2 2022 39,845 FY 2022 468,200 FY 2022 126,209 FY 2022 594,409 Q2 2021 20,906 FY 2021 552,963 FY 2021 145,535 FY 2021 698,498 25 | INVESTOR PRESENTATION | Q2 202
Slide 26: Proficiency Ratios
Proficiency Ratios Turnover Ratios Days Inventory Outstanding "DIO" Days Receivable Outstanding "DRO" 3.6 Q2 2023 86 Q2 2023 61 3.2 3.21 3.10 FY 2022 87 FY 2022 63 2.8 2.62 FY 2021 88 FY 2021 71 2.4 2.53 2.85 2.96 00 10 20 30 40 50 60 70 80 90 00 10 20 30 40 50 60 70 80 2.0 1.6 Days Payable Outstandi
Slide 27: Appendix - I: Statement of Income
Appendix - I Statement of Income June 30, 2023 SR'000 June 30, 2022 SR'000 June 30, 2021 SR'000 Revenue 1,660,527 1,691,359 1,577,546 Cost of sales (1,480,986) (1,466,832) (1,361,675) Gross profit 179,541 224,527 215,871 Selling and distribution expenses (49,646) (45,090) (41,151) Administrative expe
Slide 28: Appendix - II: Balance Sheet
June 30, 2023 Dec 31, 2022 Dec 31, 2021 Appendix - II SR'000 SR'000 SR'000 Property, plant and equipment 648,162 719,943 709,840 Balance Sheet Right-of-use assets Goodwill and other intangible assets 17,912 5,836 24,545 7,848 18,485 10,119 Other non-current assets 2,274 2,487 2,913 Total non-current
Slide 29: Appendix - III: Summarized Cash Flows
Appendix - III Summarized Cash Flows June 30, 2023 June 30, 2022 June 30, 2021 SR'000 SR'000 SR'000 Cash Flow from Operations * 125,234 169,668 152,952 Investing cash flows (29,745) (39,443) 7,512 Financing cash flows (159,812) (79,324) (117,076) Cash and cash equivalents 58,190 52,280 38,868 * Before
Slide 30: Q&A
Q&A