Mercator Medical Sa · GPW:MRC
Mercator Medical Sa — Investor Presentation (December 2020)
23 slides from Mercator Medical Sa's investor presentation, December 2020
Slide 1: Mercator
MERCATOR
Slide 2: Global Disposable Gloves Market
GLOBAL DISPOSABLE GLOVES MARKET The global disposable gloves market size was estimated at USD 6.71 billion in 2019 and was Growth factors: expected to expand at CAGR of 11.2% from 2020 to 2027 without COVID-19 impact. consistent market growth supported by the lack of direct Nowadays market prices
Slide 3: Estimated Global Demand
ESTIMATED GLOBAL DEMAND estimated global demand 2020 700 estimated global sales volume with direct impact of COVID-19 epidemic Estimated 600 global sales volume: 500 360,000,000,000 bln pcs 400 (360 bln gloves) 300 Expected annual 200 growth: 100 20% yoy 0 2002 2003 2004 2005 2006 2007 2008 2009 201
Slide 4: Largely Inelastic Global Supply of Gloves
LARGELY INELASTIC GLOBAL SUPPLY OF GLOVES Rubber glove capacity forecasts for 2020 of the top 5 producers 90 82 80 70 70 61 60 52 Bln pcs 50 40 38 36 32 33 32 30 27 27 28 27 25 24 24 23 23 23 20 15 10 0 2017 2018 2019 2020e Top Glove Hartalega STGT Kossan Supermax source: Company data, KS Research
Slide 5: Message from the Manufacturer #1: The best is yet to come
MESSAGE FROM THE MANUFACTURER #1: „The best is yet to come – new peaks ahead” Top Glove Corporation said: 1) Surge in global demand will continue for at least next 2 years: • Estimated strong global demand - starting 282 bn pcs in 2019, +55 bn pcs, +20% in 2020, +85 bn pcs, +25% in 2021, +63 bn pcs,
Slide 6: United States Health Expenditure as Global Benchmark
UNITED STATES HEALTH EXPENDITURE AS GLOBAL BENCHMARK National per capita health expenditure in the United States from 2010 to 2020 2 North America is anticipated to register 2020 12118 a CAGR of 11.4% over the forecast period 2019 11597 (2020-2027). Factors including rising healthcare expenditure co
Slide 7: Western Europe Healthcare Spending 2019
WESTERN EUROPE HEALTHCARE SPENDING 2019 WE Healthcare spending Per Capita (USD) 2 Europe was the largest regional segment, Norway 6783 accounting for over 28.8% of the total market revenue in 2019 and is expected to Luxembourg 5230 witness moderate growth over the forecast Germany 4589 period (2020-
Slide 8: CEE Healthcare Spending 2019
CEE HEALTHCARE SPENDING 2019 CEE Healthcare spending Per Capita (USD) Slovenia 1530 Czech Republic 1207 Estonia 1195 Slovakia 1089 Lithuania 885 Hungary 727 Poland 625 Latvia 532 Romania 436 Bulgaria 344 0 200 400 600 800 1000 1200 1400 1600 1800 Expenditure per capita in U.S. dollars source: countr
Slide 9: Regional Insights – Others
REGIONAL INSIGHTS – OTHERS Asia Pacific is expected to increase owing to expanding healthcare infrastructure including hospitals and clinics coupled with an increasing number of people opting for home care facilities and rising medical tourism in the region. In addition, the rapid spread of coronavi
Slide 10: Company Overview
————————— MERCATOR COMPANY OVERVIEW
Slide 11: Mercator Group
MERCATOR GROUP MERCATOR r The gloves are sold in over 60 countries, | 1 of 2 with a 2% share on the global market | 25 year old company trom OOO year old Cracow production conglomerates in the world producing in Asisjand/distabuting possible gloves — in production and distribution in 2020. medical g
Slide 12: Field of Activity
FIELD OF ACTIVITY MERCATOR a: The companies of Mercator Medical Group are present in the following countries Poland Thailand Hungary Czech Romania Italy Russia Ukraine Germany Sales: Ei covered by the distribution of the Group branches : | covered by the factory in Thailand
Slide 13: Mercator Thailand
MERCATOR THAILAND MERCATOR 3 annual production bin capacity 1063 iss2" 2006 §"° main product examination and industrial nitrile gloves located in the prime rubber production area of the Ratthapum district, Songkhla province in southern Thailand
Slide 14: Medical Gloves Producer
_ TE | MEDICAL GLOVES PRODUCER MERCATOR 95> OF PRODUCTION CAPACITY CONVENIENT LOCATION % IS SOLD UNDER OEM OF THE FACTORY NEAR 2 PORTS: CUSTOMISATION OF CONTAINER bi @ SONGKHLA THAILAND, FREIGHT SUPPLIES oe es @ PENANG MALAYSIA in the scope of the mix of products, appearance, packaging size and qual
Slide 15: Nitrile Glove Factory in Thailand: Ecology
NITRILE GLOVE FACTORY IN THAILAND: ECOLOGY
Slide 16: Supporting COVID-19 Prevention
SUPPORTING COVID-19 PREVENTION Donations of 50 thousand masks and 1,6 million gloves for medical entities and governmental institutions
Slide 17: Financial and Operating Results
————————— MERCATOR FINANCIAL AND OPERATING RESULTS
Slide 18: Dynamic Growth of Sales
DYNAMIC GROWTH OF SALES Sales revenues (mln PLN) +317% Q3 2019 +124% 0% 604 10% 578,0 27% 540 34% 25% 420 4% Q3 2020 4% 301 264 258 17% 17% 227 14% 169 16% 148 145 32% Poland CEE w/o PL W.Europe N.America Australia Others 2013 2014 2015 2016 2017 2018 2019 H1 19 H1 20 Q3 19 Q3 20 FOUR QUARTERS TWO Q
Slide 19: EBITDA – record values from 2020
EBITDA – record values from 2020 EBITDA (mln PLN) & EBITDA margin (%) Decomposition of EBITDA 400 390,9 70% 400 80% 64,7% 75,0% 350 350 70% 60% 60,8% 144,5 300 60% 300 269,9 50% 52,2% 46,7% 54,1% 250 50% 250 40% 200 40% 200 96,7 30% 150 30% 150 246,4 100 20% 20% 100 137,9 50 10% 9,7% 9,5% 9,7% 10,1%
Slide 20: Net Result – record values from 2020
NET RESULT – record values from 2020 Net profit (mln PLN) 355,8 231,1 10,0 10,3 14,8 6,9 5,4 7,0 1,3 -1,7 -2,0 2013 2014 2015 2016 2017 2018 2019 H1 19 H1 20 Q3 19 Q3 20 FOUR QUARTERS TWO QUARTERS ONE QUARTER 20
Slide 21: Healthy Balance Sheet with Positive Net Cash
HEALTHY BALANCE SHEET WITH POSITIVE NET CASH Net cash [mln PLN] 380,4 36,2 30.09.2019 31.12.2019 31.03.2020 30.06.2020 30.09.2020 -133,9 -133,5 -129,8 21
Slide 22: What next?
What next? • Q1/Q2 2021 – publication of the 2021+ strategy (principles: dividend and smart investments); high profits, good prospects and a healthy balance sheet with no investment debt (repaid loans in Q3 2020) are a favorable basis for developing a strategy of increasing value for shareholders in
Slide 23: Contact for Investors
CONTACT FOR INVESTORS: Bogna Sikorska b.sikorska@pandl.pl +48 501 239 339 Adrian Boczkowski a.boczkowski@pandl.pl +48 506 324 456
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