Nahdi Medical Company · TADAWUL:4164
Nahdi Medical — Investor Presentation (March 2023)
22 slides from Nahdi Medical's investor presentation, March 2023
Slide 1: Nahdi Medical Company Investor Presentation FY 2022
March 2023 Nahdi Medical Company INVESTOR PRESENTATION FY 2022 &
Slide 2: We exist to add beats to our Guests lives everyday
~ We exist to add beats to our Guests lives everyday Vision Mission To be the most loved & trusted To exceed all Guests’ expectations = Integrity = Care health and wellbeing partner of by providing superior personalised = Leading with = Excellence all our Guests lifecare experiences everyday, Purpos
Slide 3: Business Overview
~ BUSINESS OVERVIEW Highly qualified staff led by strong board and management obddo Supported by prominent shareholders ® Market leading pharmacy with strong brand and growing private axa__ label that adds beats to communities ris State-of-the-art distribution capabilities = Seamless omnichannel exp
Slide 4: Corporate Strategy
~ CORPORATE STRATEGY 23 Boost strategic product categories Strengthen Expand the Extend footprint in KSA our core omnichannel — Enhance strong brand image and loyalty retail offering retail Accelerate expansion in the UAE Grow private label contribution footprint Drive omnichannel offering Enhance t
Slide 5: Led by strong management and a dedicated board, supported by prominent shareholders
~ LED BY STRONG MANAGEMENT AND A DEDICATED BOARD, SUPPORTED BY PROMINENT SHAREHOLDERS Experienced members of the board... @ Deep understanding of the sector with over 200 years of cumulative : management experience Saleh Bin Mahfouz Abdullah Al Nahdi Abdelelah Bin Mahfouz Yasser Joharji Abdellatif A
Slide 6: Our success is rooted in our passion for people
~ OUR SUCCESS IS ROOTED IN OUR PASSION FOR PEOPLE Nahdi has a healthy nationalization rate, coupled with a growing Saudi female workforce 5,382" Overall vs headcount (Dec. 2022) ale se) fe) 85% |} 15% OS Female Source: Company disclosure ¥ Total number of Nahai and Nahi Subsidiary staff is 10,638 Na
Slide 7: Nahdi wins with Guests by providing top in class product, services and solutions
~ NAHDI WINS WITH GUESTS BY PROVIDING TOP IN CLASS PRODUCT, SERVICES AND SOLUTIONS = Consultation = Medical adherence = Full diet solution = Refill = Beauty applications = Click & Collect = NahdiCare express (Non-Urgent care) = Scan & GO service = E pharmacist = Virtual Consultations = Wazen Hayatak
Slide 8: Nahdi's flagship business is the leading pharmacy retail chain in KSA
~ NAHDI’S FLAGSHIP BUSINESS IS THE LEADING PHARMACY RETAIL CHAIN IN KSA 7a With 31% market share hi 143 cit s.q.m and c.10% of stores! A Euillages in ascites Distribution centers Total store area Source: Company sisclasure & research as of December 2022 * Including KSA and UAE
Slide 9: Building Strategic Private Label Mega Brands Across Divisions
~ Building Strategic Private Label Mega Brands - Across Divisions Winning Playbook - Exceeding Guests at the core of Design SAR 1 Billion gr Operon aly Prout Concept Test - Gippeckasina Test “@hFundamentals 3 isle coat R&D + Supplier Drive Purchase Intent Winning vs. Competition Offline & Online Gue
Slide 10: Adding beats to our community via CSR efforts
~ ADDING BEATS TO OUR COMMUNITY VIA CSR EFFORTS = A ”) . es oa, Sy C tw 4 ; Bae } e j » bBo, Guests i eS as = y Guests ye ¥ Guests impacted o* impacted A) impacted Health Responsibility Mom & Baby Responsibility 2030 Target 2030 Target 16mn Guests 2030 Target 10mn Guests Strategic Se Strategic Strat
Slide 11: State-of-the-art distribution and supply chain capabilities
~ STATE-OF-THE-ART DISTRIBUTION AND SUPPLY CHAIN CAPABILITIES TO COMPREHENSIVELY SERVE ALL HEALTHCARE NEEDS ACROSS THE GCC UNMATCHED SUPPLY CHAIN CAPABILITIES = Advanced supply chain capabilities with coverage across the KSA, UAE and other GCC countries = Best-in-class supply chain technologies to b
Slide 12: Nahdi created a unique omnihealth gateway
NAHDI CREATED A UNIQUE OMNIHEALTH GATEWAY, BRINGING THE FULL HEALTH AND WELLNESS ECOSYSTEM TO THE FINGERTIPS AND DOORSTEPS OF ITS GUESTS QD \Y Fully fledged healthcare services Pharmaceutical retail business Y S
Slide 13: Integrated healthcare services through our proprietary omnihealth platform
~ INTEGRATED HEALTHCARE SERVICES FOR ALL KEY PRIMARY HEALTHCARE NEEDS THROUGH OUR PROPRIETARY OMNIHEALTH PLATFORM Strengths of Nahdi + Market opportunity Accessibility to jarket, Guest network lemand Provision Vista services | SYateay- Quality and Value Guest loyalty ~~ ESRNGI v Increasing consumer
Slide 14: Financial Highlights as FY 2022
~ FINANCIAL HIGHLIGHTS AS FY 2022 SAR SAR SAR Revenue Net profit EPS Generating strong free cash flow Committed to returning cash to shareholders SAR 1.39bn 87% SAR 690mn 18% Free Cash flow FCF conversion rate Total amount alszatauren| Dividend Payout Ratio
Slide 15: Consistent track record of value creation
~ CONSISTANT TRACK RECORD OF VALUE CREATION SAR mn 1,161 No. of pharmacies 7,350 2018* Source: Company disclosure > Note: 2018 Pre-IFRS 1,164 7,825 2019 Revenue Growth 1,148 1,152 1,086 CAGR 3.1% (2018 to 2021) 6.8% 8,642 8,066 2020 2021 2022 Solid sales growth of 6.8% in 2022 ahead of historic CAGR
Slide 16: Superior gross profit margin
~ SUPERIOR GROSS PROFIT MARGIN SAR mn 2022 Gross Profit increased by 6.5% as a result of sales growth, gross margin reached 40.9%, maintaining same level of last year. - _ 2018" 2019 [Gross Profit IB Gross margin Source: Company disclosure Note: 2018 Pre IFRS
Slide 17: Strong EBITDA outcomes
@& STRONG EBITDA OUTCOMES SAR mn Maintaining best-in-class EBITDA margin = Solid business model delivering healthy margins. = Keeping its positive trajectory while maintaining the margin at 1,462 18.6% same as 2021 level. 1,310 789 = Stable gross margin with strong control on OPEX & CAPEX management
Slide 18: Attractive net profit profile
~ ATTRACTIVE NET PROFIT PROFILE SAR mn Maintaining a double-digit bottom line CAGR 10% 9.3% (2018 to 2021) \ | «The profit margin improved by 888 0.2% reaching 10.3% of revenue in the current year compared to 849 813 611 692 10.1% in the last year, mainly driven by the efficiency in the || managing
Slide 19: Well-invested business to support next phase of growth
~ WELL-INVESTED BUSINESS TO SUPPORT NEXT PHASE OF GROWTH WITH LIMITED WORKING CAPITAL REQUIREMENTS Capex SAR mn 320 06 3 " LJ L | = 2018* 2019 2020 2021 2022 % Capex / Revenue Net Working Capital SAR mn 663 | 494 483 513 461 2018* 2019 2020 2021 2022 % Net working capital / Revenue Source: Company d
Slide 20: Resulting in superior return on assets and equity
~ RESULTING IN SUPERIOR RETURN ON ASSETS AND EQUITY Return on Assets * 22.7% 18.3% 183% 180% 2018" 2019 2020 2021 2022 Source: Company disclosure ‘1. Calculated as net orofit of the year divided by total assets 2.Calculated as net orofit of the year divided by total equity 3,Peers include: Aldawaa,
Slide 21: Consistent dividend rewards to shareholders
~ CONSISTANT DIVIDEND REWARDS TO SHAREHOLDERS Dividends Payout % SAR/Share Sustainable and consistent Dividends payouts, in line with the company’s dividends 6.83 6.53 625 615 5.32 5.08 5.31 he } 47 distribution policy, as result of : 3.85 : : strong financial performance. 2018* 2019 2020 2021 2022
Slide 22: Thank You
paaw Nn a h Ul di THANK YOU Contacts Investor Relations Department Emait IR@nahdisa Website: httos//investorsnahdisa/ P.0.Box 17129 Jeddah 21484, Saudi Arabia
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