28 slides from Al Hassan Ghazi Ibrahim Shaker's earnings presentation, Jun 7, 2022
Slide 1: Investor Presentation Q1 2022
Shaker Investor Presentation Q1 2022 As at 31 March 2022 7 June 2022
Slide 2: Agenda
Agenda • Key Highlights • Financial Review • Q&A Session • Appendix Page 2
Slide 3: Q1 2022 Key Highlights
Q1 2022 Key Highlights
Slide 4: Operational Highlights
Operational Highlights Growth strategy Vision 2030 support & Significant new business Significant B2B and successfully executed growth drivers wins from strategic projects ESCO sales growth aligned with Vision 2030 Optimized brand and IT Framework and Security Supply Chain Ongoing Sustained & grew c
Slide 5: Key milestones paving way for future growth (outside Q1 2022)
Key milestones paving way for future growth (outside Q1 2022) ▪ Election of a new Board of Directors establishes high caliber of dynamic leadership and experience ▪ Signing of an MOU with Fox Spa di Renzo Bompani e C. (“Bompani”) to form a joint venture company to launch a manufacturing facility to
Slide 6: Q1 2022 Financial Review
Q1 2022 FINANCIAL REVIEW Figures restated as at 31th March 2022
Slide 7: Performance highlights
Performance highlights ▪ Significant growth achieved in Q1 2022 leading with the top-line and following through to cost efficiencies. ▪ Profitability maintained for seventh consecutive quarter ▪ Significant new business wins from strategic projects aligned with Vision 2030 Total Revenue Gross Profit
Slide 8: Income statement overview
Income statement overview 350.00 30.0% 319.94 300.00 288.30 289.48 23.9% 24.3% 25.0% 21.3% 21.2% 260.85 247.45 21.1% 250.00 20.0% 247.81 20.0% 22.0% 196.49 200.00 SAR million 15.0% 150.00 1.5% 3.4% 10.0% 3.7% 100.00 4.7% 0.7% 77.6 57.6 61.3 57.3 59.3 52.7 4.5% 5.0% 50.00 41.4 -2.0% 3.8 14.5 1.4 9.8
Slide 9: Increased sales & revenue growth
Increased sales & revenue growth ↑ 29% Quarterly Revenues (SAR m) 319.94 Segmental Revenues (SAR m) 288.30 289.48 200 173 260.85 180 247.45 247.81 146.3 146.7 160 140.3 196.49 140 120 100 80 60 40 20 1.3 0.6 0 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 HVAC Solutions Home Appliances Oth
Slide 10: Profitability maintained for 7 consecutive quarters
Profitability maintained for 7 consecutive quarters Gross profit margin Net profit margin ↑ 248.5% ↑ 20.4% 2.6% 28.0 22% ↑ 34.7% QoQ ↑ 47.9% QoQ 235.5 21% 195.6 4.5% 4.7% 14.5 3.4% 3.7% 12.3 0.9% 9.8 10.8 24.3% 8.0 21.2% 23.9% 22.0% 1.5% 20.0% 21.3% 77.6 3.8 0.7% 21.1% 61.3 52.7 57.6 57.3 59.3 1.4 -
Slide 11: EBITDA & RoE
EBITDA & RoE 90 EBITDA EBITDA % 10% Return on Equity (%) 79 9% 80 8% 9% 8% 7% 7% 7% 8% 70 6% 7% 4.5% 60 57 6% 50 6% 5% 40 3% 4% 2.2% 30 2.0% 24 24 26 3% 21 1.4% 20 0.6% 14 15 2% 0.2% 1.6% 1.8% 9 10 1% 0 0% FY 2020 FY 2021 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 FY2020 FY2021 Q3 2020
Slide 12: Right-sizing the workforce
1,000 1,200 1,400 1,600 1,800 0 200 400 600 800 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 productivity of workforce improving Q2 2021 Q3 2021 Employee headcount rationalizati
Slide 13: Trade receivables vs. inventory trend
Trade receivables vs. inventory trend Trade Receivables Trend (SAR '000) Inventories Trend (SAR '000) 800,000 700,000 600,000 Slight increase in trade 500,000 receivables due to increase in revenue 400,000 Inventory levels decreased 300,000 compared to previous year due to implementation of efficien
Slide 14: Cash flow: operating and financing
Cash flow: operating and financing Cash Flow from Operations 230,399 181,179 195,387 139,035 95,501 95,637 31,405 33,594 34,437 40,658 27,818 30,389 2,904 (3,164) (16,442) (7,836) (31,702) (84,384)(115,840) (127,322) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2017 2017 2018 201
Slide 15: Capital structure
Capital structure Equity LTL STL Debt/Equity % 700 80% 650 637 625 637 637 608 608 608 619 77% 77% 600 76% 75% 76% 500 72% 412 404 412 400 385 70% 400 67% 64% 65% 64% 299 300 278 278 65% 237 200 169 110 110 60% 101 100 75 87 83 75 66 0 55% FY 2020 FY 2021 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2
Slide 16: STLs & MTLs trend
STLs & MTLs trend Short Term Loans Trend 797,622 695,160 713,655 704,065 666,666 646,367 531,457 462,062 445,071 412,617 385,194 404,099 412,494 399,703 302,667 278,228 299,128 242,394 237,277 237,330 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2017 2017 2018 2018 2018 2018 2019
Slide 17: Q&As
Q&As
Slide 18: Appendix I: Financials
APPENDIX I: Financials
Slide 19: Income statement
Income statement SAR ‘000 Q1 2022 Q1 2021 QoQ Change (%) Sales 319,937 288,301 10.97% Cost of sales (242,303) (230,670) 5.04% Gross profit 77,634 57,631 34.71% G&A expenses (22,029) (21,731) 1.37% S&D expenses (29,494) (24,629) 19.75% Impairment loss on trade & other receivables (11,115) (3,053) 264
Slide 20: Cash flow statement
Cash flow statement SAR ‘000 Q1 2022 Q1 2021 Cash flows from operating activities Profit/(loss) for the period 17,099 13,659 Adjustments: 14,957 16,713 Changes in operating assets & liabilities 4,971 (21,378) Employees’ end of service benefits paid (1,937) (936) Financial charges paid (4,623) (3,534
Slide 21: Balance sheet
Balance sheet SAR ‘000 Q1 2021 Q1 2022 ASSETS Non-current assets 672,795 675,441 Current assets 843,510 895,480 Total assets 1,516,305 1,570,921 EQUITY Total equity attributable to shareholders 605,809 636,931 Total equity 618,958 650,294 LIABILITIES & EQUITY Non-current liabilities 125,081 89,043 C
Slide 22: Shareholding Structure
Shareholding Structure Shareholding structure Share information Market Tadawul, Saudi Arabia Currency SAR 12.2% Listing date May 2010 9.9% Financial year-end 31 December Lafana Holding Tawazon Arabia Co Authorized capital (SAR) 630,000,000 Lama Holding 5.7% Issued shares 63,000,000 Other /Public 72.
Slide 23: Appendix II: About Shaker
APPENDIX II: About Shaker... 3 =
Slide 24: Shaker overview
Shaker overview Exclusive Saudi distributor for internationally acclaimed home appliances brands: The Middle East’s • Maytag (1980) leading A/C • Ariston (1994) solutions • Indesit (2005) company • Midea (2008) • Bissell (2015) Subsidiary: ESCO • Bompani (2020) • Energy saving Saudi’s leading Origin
Slide 25: Key Differentiators
Key Differentiators Products, brands Distribution Management Manufacturing Growing market & services capability Market-leading Kingdom-wide A robust Joint Venture The market for AC products, distribution management with LG Air solutions and Home internationally- network for all framework Conditionin
Slide 26: Corporate milestones
A history Corporate of success stories and key milestones milestones Launched Capital increase from SAR 350 million to Launched Air Conditioners (Sole SAR 630 million Distribution Rights KSA Manufacturing Expansion of LG Air Launched Arm - Joint Venture Publicly Listed - Annual sales Conditioning Te
Slide 27: Disclaimer
Disclaimer This presentation has been prepared solely for use as an investor presentation for Shaker (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 and d
Slide 28: Contact
CONTACT MR. HOSSAM AKKAD VICE PRESIDENT FINANCE HOSSAM_AKKAD@SHAKER.COM.SA +966-11-2638900