Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — Q3 2014 Earnings Presentation
14 slides from Rak Ceramics Pjsc's earnings presentation, November 2014
Slide 1: Q3 2014 Financial Results
Q3 2014 Financial Results November 2014 Company Confidential 1
Slide 2: Executive Summary – Financial Performance
Executive Summary – Financial Performance In Q3 2014, we continued executing our re-focused strategy to scale down less profitable Non-Core businesses and focus on Core operations. However the change in the distribution strategy in Saudi Arabia is affecting our sales in the short term until our dire
Slide 3: Executive Summary – Financial Performance (cont’d)
Executive Summary – Financial Performance (cont’d) Consolidated Q3 2014 revenues decreased by 10.7% YoY to AED 823.2mn while consolidated EBITDA increased by 32.0% to AED 154.3mn. Reported net profit declined by 18.3% to AED 57.4mn however adjusted net profit (excluding hyperinflation losses) increa
Slide 4: Executive Summary – Q4 and 2015 Focus
Executive Summary – Q4 and 2015 Focus In the near future, we will focus on turning around the sales in Saudi Arabia, continue to scale down non-core operations and execute the expansions in sanitaryware. We are also considering strategic options for the operations in Sudan and China with decisions t
Slide 5: Core Revenues Snapshot
Core Revenues Snapshot Q3 14 tiles revenue decreased by 3.7% to 574.0mn mainly due to decrease in sales in Saudi Arabia; the roll-out of our direct sales infrastructure in the Kingdom is expected to be concluded by year end. SW revenues increased by 7.8% to AED 111.9mn in Q3 Tiles Revenue: By Produc
Slide 6: Gross Profits Snapshot
Gross Profits Snapshot Consolidated gross profit margin decreased by 0.8% to 26.9% QoQ with core margins decreasing by 4.5% to 27.5% due to sales of old stock in the UAE and increase in sales of lower priced models in Bangladesh. Non-core margins increased by 9.0% to 23.0% due to the profitable roug
Slide 7: Summary Income statement
Summary Income statement Reported net profit for Q3 declined by 18.3% to AED 57.4mn mainly on account of hyper inflation accounting losses, adjusted net profits increased by 9.4% to AED 76.9mn. Consolidated EBITDA increased by 32.0% to AED 154.3mn with margin enhancements from 12.7% to 18.8% QoQ Inc
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights Net debt position increased by AED 251mn to AED 1,575mn equivalent to 2.52x EBITDA as a result of longer working capital cycles. In Q4 2014, focus will be to decrease the working capital cycle by enhancing inventory turnover and cash collections Working Capital (AED mn or Da
Slide 9: Other Topics – Bangladesh & RAK Porcelain
Other Topics – Bangladesh & RAK Porcelain Our subsidiary in Bangladesh (72.4% ownership) is listed on Dhaka stock exchange with a market cap as of 30th September of AED 1.06bn (increased 37% YTD). RAK Bangladesh contributes c. 8.4% to our consolidated profits but constituting c. 25.6% of our market
Slide 10: Financial Statements
FINANCIAL STATEMENTS Company Confidential 10
Slide 11: Consolidated Net Income
Consolidated Net Income AED million Q32013 Q3 2014 YTD Sep 2013 YTD Sep 2014 Revenue 922.3 823.2 2,660.1 2,484.4 Cost of sales (667.1) (601.5) (1,920.5) (1,806.1) Gross profit 255.2 221.6 739.6 678.3 Administrative and general expenses (89.7) (63.6) (231.6) (229.2) Selling and distribution expenses
Slide 12: Consolidated Balance Sheet
Consolidated Balance Sheet AED million Assets Dec 2013 Sep 2014 Equity and liabilities Dec 2013 Sep 2014 Non-current assets Equity Property, plant and equipment 1,117.4 1,289.6 Share capital 743.2 817.5 Reserves 1,730.3 1,935.1 Capital work-in-progress 51.6 91.8 Equity attributable to owners of the
Slide 13: Consolidated Cash Flow
Consolidated Cash Flow AED million Cash Flow Statement Sep 14 Sep 13 Sep 14 Sep 13 Operating activities Investing activities Profit for the period before tax 225.6 235.6 Acquisition of property, plant and equipment and CWIP (239.0) (64.4) Adjustments for: Change in bank deposits 11.5 53.5 Share of p
Slide 14: Disclaimer
DISCLAIMER This information contained in the enclosed presentation summarizes preliminary and introductory information on RAK Ceramics PSC (the Company). This presentation has been prepared for information purposes only and is not and does not form part of or constitute any prospectus, offering memo