Mezzan Holding Company Kscc · KSE:MEZZAN

Mezzan Holding Company Kscc — Mezzan Holding Company — H1 2017 Earnings Presentation

17 slides from Mezzan Holding Company Kscc's earnings presentation, Aug 9, 2017

  1. Slide 1: H1 2017 Earnings Presentation

    H1 2017 Earnings Presentation Aug 9, 2017 August 9, 2017 1

  2. Slide 2: Agenda

    AGENDA H1 2017 Highlights AGENDA Historical AGENDA Performance AGENDA Financial AGENDA Review Q&A 2

  3. Slide 3: Headwinds

    ➜ Impact of Qatar blockade: Supply chain complexities, disruption of inflow of raw HEADWINDSmaterial and exports from regional platform, ➜➜ adversely affecting profitability. ➜ HEADWINDS Services sector experiencing challenges Afghanistan as US stopped order amid a revamp its security and procedures

  4. Slide 4: Tailwinds

    ➜ Our food business, which brings in over 70% of total revenue, continues to prove its resilience in TAILWINDS the face of current market conditions with a ➜ growth of +1.2% in Q2. TAILWINDS ➜ Both the turn-around of our Saudi business and its integration into the Mezzan ecosystem is ➜ ➜ progressing

  5. Slide 5: Highlights

    HIGHLIGHTS H1’17 Q2’17 Revenue 107.8 m 50.3 m HIGHLIGHTS -0.6% -4.8% EBITDA 11.3 m 4.0 m HIGHLIGHTS -18.5% -40.6% Underlying Net Profit 7.4 m 2.0 m HIGHLIGHTS Net Profit to Shareholders -28.9% 7.3 m -59.9% 2.0 m HIGHLIGHTS -26.7% -58.1% 5

  6. Slide 6: Historical Performance

    Historical Performance Revenue Gross Profit EBITDA Underlying Net Profit 27.9 27.9 15.8 10.3 108.5 107.8 26.9 10.0 104.5 13.9 24.0 +0.5* 92.6 11.7 11.3 7.5 7.3 5.2% 5.1% -1.2% -0.9% H1'14 H1'15 H1'16 H1'17 H1'14 H1'15 H1'16 H1'17 H1'14 H1'15 H1'16 H1'17 H1'14 H1'15 H1'16 H1'17 *Previously anticipated

  7. Slide 7: Financial Review

    Financial Review 7

  8. Slide 8: Revenue contribution by business line

    H1’17 Revenue contribution by business line GROUP FOOD 72.7% 72.7% of total Group Revenue NON-FOOD 27.3% 27.3% of total Group Revenue 8

  9. Slide 9: Revenue growth by business line

    H1’17 Revenue growth by business line FOOD +1.2% ➜ vs. H1’16 NON-FOOD - 4.7% ➜ vs. H1’16 9

  10. Slide 10: Food: Revenue growth by business division

    H1’17 Revenue growth by business division Manufacturing +01.4% ➜ FOOD Distribution Contributed 52.8% to H1 Revenues vs. H1’16 FOOD Catering +13.2% ➜ Contributed 13.3% to H1 Revenues FOOD vs. H1’16 Services - 17.7% ➜ FOOD Contributed 6.6% to H1 Revenues vs. H1’16 10

  11. Slide 11: Non-Food: Revenue growth by business division

    H1’17 Revenue growth by business division NON-FOOD FMCG & -04.5% ➜ Pharma Contributed 24.7% to NON-FOOD H1 Revenues vs. H1’16 Industrials -06.9% ➜ NON-FOOD Contributed 2.6% to H1 Revenues vs. H1’16 NON-FOOD 11

  12. Slide 12: H1'17 Revenue by contribution & growth by country

    Revenue contribution to total Group revenues H1’17 Revenue by in H1’17 compared to H1’16 contribution & Revenue growth in H1’17 compared to H1’16 growth by country Kuwait UAE Qatar Jordan KSA Afghan. Iraq ➜ 68.2% ➜ 14.6% 9.2% 2.7% 2.5% 1.9% 0.9% ➜ ➜ ➜ ➜ ➜ -1.2% -5.0% +2.3% -39.6% +921.8% -3.7% +80.6

  13. Slide 13: P&L (KD m)

    H1’17 P&L (KD m) H1’17 Q2’17 Commentary Revenue 107.8 -0.6% 50.3 -4.8% H1 Revenue: Growth in food and catering offset by decline in other divisions Gross Margin 27.9 -0.1% 12.7 -6.5% GM% 25.9% 25.2% H1 Margins were well protected SG&A / Other (20.2) -17.9% (10.6) -26.7% SG&A: Increased by 17.9% in H

  14. Slide 14: Cash Flow (KD m)

    H1’17 Cash Flow (KD m) H1’17 H1’16 Diff. Operating Cash Flow before WC changes 12.3 14.1 (1.8) Working Capital (8.3) (6.6) (1.7) Operating Cash Flow 4.1 7.6 (3.5) CAPEX / Other investing activities (5.8) (3.3) (2.4) Cash Flow before financing (1.7) 4.2 (5.9) Dividends / Financing / other (9.7) (9.0)

  15. Slide 15: H1'17 Balance Sheet (KD m)

    H1’17 Balance Sheet (KD m) Total Assets Equity Net Debt Net Debt to Equity (%) 218.6 104.7 43.2 29.2% 99.2 1.3 196.1 90.5 14 m 178.1 36.2 84.1 33.9 27.3% 162.3 26.7% 27.9% 30.2 26.4% 29.2 +10.4% +7.6% +12.7% Q2'17 PF Q2'17 PF Q2'14 Q2'15 Q2'16 Q2'17 Q2'14 Q2'15 Q2'16 Q2'17 Q2'14 Q2'15 Q2'16 Q2'17 Q2

  16. Slide 16: Q&A

    Q&A [ ] To ask a question look for ‘ask a question’ tab on your screen, then type your question 16

  17. Slide 17: Key Contacts

    Key Contacts Mohammed Khajah Head of Corporate Development and Investor Relations Mezzan Holding T: +965 2228 6336 M : +965 9977 0147 E : mohammed.Khajah@mezzan.com 17

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