EFG Hermes One on One Conference PresentationMarch 6-8th 2017

Disclaimer

This information contained in the enclosed presentation summarizes preliminary and introductory information on RAK CeramicsPSC (the Company). This presentation has been prepared for information purposes only and is not and does not form part of orconstitute any prospectus, offering memorandum or offering circular or offer for sale or solicitation of any offer to subscribe foror purchase or sell any securities nor shall it or any part of it form the basis of or be relied on in connection with any creditevaluation or third party evaluation of any securities or any offerings or contract or commitment whatsoever.

The information contained herein has been prepared by the Company. Some of the information relied on by the Company isobtained from sources believed to be reliable but does not guarantee its accuracy or completeness. All potential recipients of theenclosed presentation are expected to be aware that the information contained herein is preliminary as of the date hereof,supersedes any previous such information delivered and will be superseded by any such information subsequently delivered. Theinformation contained herein is subject to change without notice. The Company is under no obligation to update or keep currentthe information contained herein. No person shall have any right of action (except in case of fraud) against the Company or anyother person in relation to the accuracy or completeness of the information contained herein.

Some of the information in this presentation may contain projections or other forward-looking statements regarding futureevents or the future financial performance of The Company. These forward-looking statements include all matters that are nothistorical facts. The inclusion of such forward-looking information shall not be regarded as a representation by the Company orany other person that the objectives or plans of the Company will be achieved. Future events are subject to various risks whichcannot be accurately predicted, forecasted or assessed. No assurance can be given that future events will occur or that thecompany’s assumptions are correct. Actual results may differ materially from those projected and past performance is notindicative of future results. The Company undertakes no obligation to publicly update or publicly revise any forward-lookingstatement, whether as a result of new information, future events or otherwise. Accordingly all potential recipients are expectedto conduct their own due diligence on the information provided.

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2

2016 Financial Review

3

2016 Financial Highlights

Group Revenue• 2016 AED2.8bn, -9.3% YoY• Core Revenue -6.1% YoY• Non Core Revenue -26.1%

YoY

Gross Margins• Csldtd. 30.5%, +230bps

YoY• Core 30.5% +120bps YoY• Non core 30.3% +770bps

YoY

EBITDA• AED485.7mn, -18.2% YoY• EBITDA margin 17.4% -

190bps YoY

Like for Like Net profit

• AED216mn vs.343mn, -37.1% YoY

Total Provisions

• AED185mn vs 53 mn taken during the year for inventory, receivables and others

Reported Net Profit

• AED31mn, -90.1% YoY

CAPEX

• Continued investment of AED 215 vs AED 267 mnYoY

Working capital

• Reduced AED 173 mn at 1.68 bn (234 days) vs 1.86 bn (228 days) in Dec’15

Gearing

• Net debt +3.0% YoY at 1.66 bn.

• Net Debt to EBITDA ratio at 3.42x vs 2.71x end 2015

4

5

2016 Revenue Breakdown

Focus Markets – Quarterly Sales Trends

111 118 112 120 122 122 118129 131

114 115

34 29 29 33 36 34 34 33 35 32 40

Q2-

2014

Q3-

2014

Q4-

2014

Q1-

2015

Q2-

2015

Q3-2

015

Q4-

2015

Q1-

2016

Q2-

2016

Q3-2

016

Q4-

2016AED

MIL

LIO

NS

UAE

Tiles SW

3732 36 35 36

3241

36 36 36

50

23 22 22 22 2520

25 25 27 2328

Q2-

2014

Q3-

2014

Q4-

2014

Q1-

2015

Q2-

2015

Q3-2

015

Q4-

2015

Q1-

2016

Q2-

2016

Q3-2

016

Q4-

2016

AED

MIL

LIO

NS

Bangladesh

Tiles SW

101 105116

94 94 9483 76 68 68 58

10 10 10 6 8 7 6 5 6 5 5

Q2-

2014

Q3-

2014

Q4-

2014

Q1-

2015

Q2-

2015

Q3-2

015

Q4-

2015

Q1-

2016

Q2-

2016

Q3-2

016

Q4-

2016AED

MIL

LIO

NS

India

Tiles SW

88 8770

85 89115

82 77 7440 256 8 8 8 10 8 4 7 7 3 3

Q2-

2014

Q3-

2014

Q4-

2014

Q1-

2015

Q2-

2015

Q3-2

015

Q4-

2015

Q1-

2016

Q2-

2016

Q3-2

016

Q4-

2016AED

MIL

LIO

NS

Saudi Arabia

Tiles SW

6

7

Provisions Breakdown

UAE

Inventories, 49.8,

40%

UAE

Receivables, 6.2,

5%

Saudi

JVs, 17.3, 14%

Germany,

6.1, 5%

Lebanon,

2.5, 2%

Iran,

24.4, 20%

Iraq,

2.6, 2%

Non Core,

11.8, 9%

Other,

3.2, 3%

Extraordinary Breakdown

by Geography

Items Amount –AED Mns

In COGS

Provision for slow moving or obsolete inventory

70.7

Write Off of Inventories 18.0

In G&A

Provision for impairment loss on trade receivables / amounts due from related parties

61.7

Impairment charge on goodwill 12.9

In Share in Results of Equity Accounted Investees

Provision for impairment in shares in results

21.7

Total 185.0

Of Which is Extraordinary 132.0

2016 Operating Review

8

2016 Operational Highlights

Capacity Expansions in Growth Segments• 20% increase in SW Capacity in UAE

• 42% increase in Tile Capacity in Bangladesh

Raw Material Savings• AED30mn saved in raw materials, packing and shipping.

B’desh & Tableware• B’desh tile GM +240bps through lower COP & product mix

• Tableware growth on new product introductions. US market tapped for growth

Projects and Retail Channels• UAE Project sales team strengthened resulting in sales +6% YoY. Showroom renovations to pay off 2017.

Product Design• Fewer tile collections launched (53 vs 160 in ‘15) to enhance brand image & product positioning. SW collection in process to launch at ISH fair.

Capacity & headcount right sizing• Some production lines halted over H2/16.

• UAE headcount lower to match capacity reduction

Rebranding• Launch across UAE, Europe, India and Australia. Common look and feel to enhance brand perception

Integration of European Distribution • Sales teams reorganized• New Frankfurt showroom and office

• Italy as main distribution hub

UAE Tile Production Mix Revamp

• One Ceramic plant converted to GP in Q3. Ceramic/GP production mix now 63/37 from 74/26 at end Q3/16.

9

2016 Operational Lowlights

10

Sanitaryware Margins

GM fell from 43.5% to 41.3% due to declining ASP & change in product mix

Italian logistics shift

Poor execution of shift to Italy as main distribution hub led to lost sales and reputational hit in Q3/16

Delay in sale of Non Core assets

Warehouse Leasing, Electro RAK & Acacia Hotel. Electro RAK sale concluded in Jan ’17 for AED45mn

Iran

Delays in Govt clearances, poor project planning, delays in installing machinery and building up management team

Inventory Mgmt

26mn SQM of tile inventory at year end in UAE, 32.2 mntotal vs 28.4mn sqm

Relative Gas Costs

UAE gas costs higher by 7.7 mn YoY as mix of Dolphin supply increased to 53% vs.47%. Spread we pay vs. gas in Europe is near record

Continued poor performance of India

Loss after tax in 2016 AED 3.4 mn vs. profit after tax 2.3 mn YoY

IT

Delay in SAP enhancements

Implementation issues in Bangladesh & Italy

Reduced sales volume

Tiles volume was low at 77 mn vs 86 mn sqm

KSA revenue -41.0% YoY.

2017 Outlook

11

2017 Group Initiatives and Outlook

12

UAE local market• Grow market share, pursue project channel penetration and grow retail channel. Flagship showroom in Dubai in planning stage.

India• Morbi JV expected 2017 • Strategic tie up under discussions

• Planning projects team as additional sales channel

Iran• Ramp up production near 65% capacity and develop regional sales.

• New integrated ERP

Product Differentiation• Further enhance tile product range, launch new strategic

• SW collection and build on Tableware success with new products and cutlery

Branding• Rolling out branding to Bangladesh and KSA.

• Continue investing in Brand image in UAE & India

Supply Chain Mgmt

• Restructure current setup with clear responsibilities to improve operational efficiency & improve working capital

Cost efficiencies• Energy (Co Generation)• Productivity initiatives• Overhead cost control

Dealers• Strengthen the vertical• Increase sales/marketing support

• Attract new customers• Re-evaluate KSA setup

Acquisitions

• GCC & Europe on opportunistic basis

Appendix

2011-2016 Financial Highlights

13

Revenue Growth and Composition

3,3383,168

3,5153,125 3,079

2,793

2011 2012 2013 2014 2015 2016

AED

Millions

Total Revenues

2,723 2,766 2,792 2,5072,092 1,929

381 395 427451

449 492

0 00

35 146

233 7296

296422

197

2011 2012 2013 2014 2015 2016

AED

Millions

Revenue by Segment

Tiles Sanitaryware Porcelain Others

SW 5-Yr CAGR +5.2%

Tiles ,

67%Sanitary

Ware ,

14%

Tableware

, 5%

Other

Revenues

and

eliminatio

ns, 14%

2016 Revenue by Segment

UAE,

28.0%

Europe,

17.8%India,

13.0%

Banglades

h, 11.6%

Saudi

Arabia,

10.5%

All Others,

19.1%

2016 Tile & SW Revenues by Country

5 Yr CAGR -3.5%

14

Tiles 5-Yr CAGR -6.7%

Performance by Segment

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

UAE Bangladesh India

AED

MIL

LIO

NS

Tile Revenues by Location

2011 2012 2013 2014 2015 2016

5 Yr CAGR +1.3%

5 Yr CAGR -1.7%

0

50

100

150

200

250

300

350

400

RAK Ceramics

UAE

Bangladesh IndiaAED

MIL

LIO

NS

SW Revenues by Location

2011 2012 2013 2014 2015 2016

5 Yr CAGR +4.7%

5 Yr CAGR +10.4%

5 Yr CAGR -3.3%

15

5 Yr CAGR -4.5%

Figures above based on gross revenues before eliminations Figures above based on gross revenues before eliminations

Gross Margins by Location

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Tile - UAE Tile - Bangladesh Tile - India

Tile Gross Margins by Location

2011 2012 2013 2014 2015 2016

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

SW - UAE SW - Bangladesh SW - India

SW Gross Margins by Location

2011 2012 2013 2014 2015 2016

16

Figures above based on gross revenues before eliminations Figures above based on gross revenues before eliminations

Gross Margins by Product

53.8% 54.8% 54.7% 57.0% 53.8% 54.2%

22.0% 21.8% 20.4%22.1%

22.5% 21.5%

7.8% 7.8% 10.2%8.2%

9.4% 9.8%

5.9% 6.0% 5.7% 4.9% 6.4% 6.4%7.3% 4.1% 4.5%

6.5% 6.0% 5.7%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

2011 2012 2013 2014 2015 2016

Tile COGS Breakdown

Materials Energy/Fuel/Utilities

Labour Repairs & maintenance

Depreciation

46.5% 47.6% 49.5%57.3%

51.6% 55.2%

19.8% 19.8%23.6%

23.0%25.1% 21.5%

12.6% 12.1%

11.5%

14.1%13.5% 11.9%4.1%

11.0%6.2%

3.7%7.4%

4.7%

5.6%

3.6% 3.9%

3.5% 4.3%5.7%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

2011 2012 2013 2014 2015 2016

Sanitaryware COGS Breakdown

Materials Labor

Energy, fuel & utility Repairs & maintenance

Depreciation

17

Figures above based on gross COGS before eliminations Figures above based on gross COGS before eliminations

Historical Returns

3.8%4.1%

5.0% 4.8%5.2%

0.5%

2011 2012 2013 2014 2015 2016

ROA

10.0% 10.0%11.1%

9.9% 10.4%

1.1%

2011 2012 2013 2014 2015 2016

ROE

4.4% 4.0%

7.6% 8.0%7.3%

2.4%

2011 2012 2013 2014 2015 2016

ROIC

18

EBITDA and Net Margins

714.8

476.4

567.4584.4 594.2

485.8

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

0

100

200

300

400

500

600

700

800

2011 2012 2013 2014 2015 2016

AED

MIL

LIO

NS

EBITDA and EBITDA Margin

EBITDA EBITDA margin

222.4 224.0

272.3281.7

310.4

30.8

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0

50

100

150

200

250

300

350

2011 2012 2013 2014 2015 2016

AED

MIL

LIO

NS

Net Income and Net Margin

Net Income Net Margin

19

Gearing and Working Capital

118

108

93

104107

110

60 59 6065

74

9293

69 68

49

70 69

0

20

40

60

80

100

120

140

2011 2012 2013 2014 2015 2016

Days O

uts

tandin

g

Working Capital Days

Trade Receivables Days Finished Goods Days

Trade Payables Days

1,827

1,474

1,325

1,411

1,6101,660

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2011 2012 2013 2014 2015 2016

MU

LTIP

LE

AED

MIL

LIO

NS

Gearing

Net Debt (LHS) Net Debt to EBITDA (RHS)

20