Mannai Corporation Q.p.s.c. · QSE:MCCS
Mannai Corporation Q.p.s.c — Mannai Corporation Q.S.C. — H1 2015 Earnings Presentation
27 slides from Mannai Corporation Q.p.s.c's earnings presentation, 2015
Slide 1: 1H'15 Financial Summary
Mannai Corporation QSC 1H‘15 Financial Summary
Slide 2: Disclaimer
Disclaimer Mannai Corporation Q.S.C. cautions investors that certain statements contained in this document state Mannai Corporation’s management's intentions, hopes, beliefs, expectations, or predictions of the future and, as such, are forward-looking statements. Mannai Corporation management wishes
Slide 3: 1H'15 Highlights
1H’15 Highlights Mannai Corporation Revenue Crosses QR3.1B in 1H’15 • Mannai Group Revenue increased by 11% to QR 3.1 Billion in the first half of this year compared to the same period in 2014. • Gross Profit increased by 30% boosted by a strong contribution from infrastructure projects in Qatar. •
Slide 4: Strong Underlying Performance Offset by 1H'14 Exceptional
Strong Underlying Performance Offset by 1H’14 Exceptional QAR m Net Profit • Normalised Profits up 22% after adjustment for (12)% 315 significant items 276 • ICT delivered net profit of 83m, up 49% • Auto Division benefitting from new Escalade & Yukon models, driving net profit up 28% • All Other Qa
Slide 5: Financial Highlights
Financial Highlights QAR m 1H 2014 1H 2015 Net Profit 315m 276m (12)% Revenues 2,805m 3,104m 11% Gross Profit % 19.3% 22.6% 3.3 pts Net Profit % 11.2% 8.9% (2.3) pts Capital Employed 4,448m 5,076m 14% Earnings Per Share 6.91 6.06 (12)% Return on Equity 32% 26% (6) pts 5
Slide 6: Continued Track Record of Solid Double Digit Growth
Continued Track Record of Solid Double Digit Growth QAR m Net Profit Trend 5 Yr Growth Rate 17% 315 276 194 169 126 141 2010 2011 2012 2013 2014 2015 6
Slide 7: Double Digit Revenue Growth Driven by booming Qatar, up 31%
Double Digit Revenue Growth Driven by booming Qatar, up 31% QAR m Revenue 3,104 11% • Auto Sales up 58% driven by high demand 2,805 for new Yukon & Escalade models • ICT continues to post strong sustainable revenue growth, up 18% • Infrastructure projects driving exceptional growth across multiple b
Slide 8: Dynamic Qatar Sales Driving Shift in Mix from Damas
Dynamic Qatar Sales Driving Shift in Mix from Damas Revenue Mix 1H ‘14 1H ‘15 Auto 11% Auto All Other 15% All Other 19% 23% ICT 26% ICT 27% Damas Damas 45% 35% 8
Slide 9: Outstanding Growth in Gross Profit of 30% with higher margins
Outstanding Growth in Gross Profit of 30% with higher margins QAR m Gross Profit Gross Margin % 30% 22.6% +3.3pts 701 19.3% 541 1H '14 1H '15 1H '14 1H '15 • Auto up 24% on strong unit sales; margins down 2015% V pts from mix shift to lower margin unit sales Auto 17.7% (4.8) pts • ICT up 34% with ma
Slide 10: Other Income Decreases Due to Significant Items in 2014
Other Income Decreases Due to Significant Items in 2014 QAR m Other Income 309 • Reduction in other income due to significant recovery related to Damas in 1H’14 of 273m • Settlement of remaining receivables continues at reduced level with 26m in 1H’15 (84)% 50 1H 2014 1H 2015 10
Slide 11: Net Profit Mix Shift to Qatar Infrastructure Driven Business Units
Net Profit Mix Shift to Qatar Infrastructure Driven Business Units Net Profit Mix 1H ‘14 1H ‘15 Auto Auto All Other 9% 11% Axiom 1% 18% All Other 28% ICT 24% ICT 31% Axiom 2% Damas Damas 47% 28% *Profit before significant items and corporate expenses 11
Slide 12: Strong Qatar Results Boosting Share of Profit
Strong Qatar Results Boosting Share of Profit Net Profit 29% Int’l 46% • Strong Qatar performance driving change in mix 71% Qatar 54% 1H '14 1H '15 Profit before significant items and corporate expenses 12
Slide 13: Damas Jewellery
Damas Jewellery QAR m Revenue Net Profit • Revenues down as a result of pressure on UAE luxury retail due to (14)% (61)% lower Russian & Chinese tourists, 1,251 exchange rate pressure & lower 290 1,076 gold price • Gross Profit up due to non-repeat of 110m inventory provision in 1H’14; Core GP down
Slide 14: Information & Communication Technology Group
Information & Communication Technology Group QAR m Revenue Net Profit 18% 49% • Continue to experience double- digit growth in revenues seen 848 83 during last 3 years; Strong 722 backlog of 1.44B 55 • Margin improvement as a result of improved leverage of direct cost base and improved closure of pr
Slide 15: Auto Division
Auto Division QAR m Revenue 58% Net Profit 28% • 24% increase in new vehicle 470 28.3 sales from continued strong 22.1 demand for new Yukon and 297 Escalade models driving increase in revenues • Reduced gross and net margins as a result of mix-shift to lower margin unit sales 1H'14 1H '15 • Growth i
Slide 16: Axiom Telecom
Axiom Telecom QAR m Share of Associate Net Profit Contribution Net Profit* • Improved contribution from Unfav. Axiom following restructuring 29% steps undertaken by 11.7 (0.9) management; 28% growth in 9.1 Gross Profits compared to 1H’14 • Non-repeat of 29m impairment to acquisition-related intangib
Slide 17: Heavy Equipment Division
Heavy Equipment Division QAR m Revenue Net Profit 35% 8% • Revenue growth of 35% as a 254 16.7 result of major infrastructure 15.5 project requirements 188 • Margin pressure continues in competitive bidding process resulting in further deterioration to gross and net margins • Increased capital emplo
Slide 18: Energy and Industrial Markets
Energy and Industrial Markets QAR m Revenue Net Profit 82% 73% • Strong growth from Direct Sales 27.1 representation business; driven 158 by contracts to supply mega- reservoir project which ramped 15.6 up in 2015 87 • HVAC delivered significant revenue growth of 57% • Increased levels of working ca
Slide 19: Industrial Supplies and Building Materials
Industrial Supplies and Building Materials QAR m Revenue 14% Net Profit 20% 122 14.0 • Revenues up driven by 107 11.7 continued success of Gas Turbine service operation 1H'14 1H '15 1H '14 1H '15 GP 17.4m 21.0m NP% 11.0% 11.4% GP% 16.3% 17.2% Cap. Emp. 44m 43m 19
Slide 20: Travel Division
Travel Division QAR m Revenue Net Profit 5% (13)% • Revenues growth impeded by 18 19 slower corporate travel business 6.7 and continued pressure on ticket 5.9 sale commissions and increased competition amongst airlines reducing average ticket prices • Slower collections of receivables increasing cos
Slide 21: Engineering
Engineering QAR m Revenue (5)% Net Profit • Revenues impacted by slowing 75% 55 expenditures in Oil and Gas 52 industry • Market continues to be challenged by overcapacity and competition (4.0) • Steps taken by management to improve efficiency resulting in (6.7) reduced 1H’15 losses 1H'14 1H '15 1H
Slide 22: Geotechnical Services
Geotechnical Services QAR m Revenue Net Profit • Outstanding growth in revenues 33% 285% as a result of strong order book 10.7 49 of infrastructure-related projects won during the last 2 years 37 • Improved margins as a result of increased revenue and leverage 2.8 of fixed cost base • In process of
Slide 23: Logistics
Logistics QAR m Revenue Net Profit • 1H’14 impacted by fire at 52% 173% warehouse at Salwa industrial 22 3.6 area 15 • Primarily focused on internal logistics of Mannai Corporation while warehouse is rebuilt 1.3 • Improved revenue and profitability as a result of increasing rates reflecting 1H'14 1H
Slide 24: Others
Others QAR m Revenue Net Profit • Improvement in contribution 14% Fav. 32 driven by non-repeat of 1H '14 1H '15 significant items charged in 28 1H’14 (20) 1H'14 1H '15 (73) GP 8.2m 13.9m 24
Slide 25: Managing Debt Levels Despite Increased Working Capital Requirements
Managing Debt Levels Despite Increased Working Capital Requirements Driven by Qatar Infrastructure Projects QAR m Net Debt Net Debt to Total Capital* 3,092 52% 2,915 50% 51% 48% 2,490 Q2 '14 Q1 '15 Q2 '15 Q2'14 Q4'14 Q1'15 Q2'15 *Total Capital adjusted for Acquisition Reserves 25
Slide 26: Normalisation of key lines for significant items
Normalisation of key lines for significant items 1Q'15 1Q14 VLY% 2Q'15 2Q'14 VLY% 1H YTD'15 1H YTD'14 VLY% • Large reduction in significant Gross Profit 383.3 335.9 14% 318.1 205.4 55% 701.4 541.3 30% items leads to improved Inventory Provisions 110.0 110.0 Norm. Gross Profit 383.3 335.9 14% 318.1 3
Slide 27: Mannai Corporation QSC
Mannai Corporation QSC Tel: +974-4455 8888 Fax: +974 4455 8880 www.mannai.com CONTACTS Investor Relations Ewan Cameron Chief Financial Officer email: investor.relations@mannai.com.qa Tel (Direct) : +974-44558844 27
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