Mm Group For Industry & International Trade · EGX:MTIE
Mm Group For Industry & International Trade — FY2018 Earnings Presentation
33 slides from Mm Group For Industry & International Trade's earnings presentation, 2019
Slide 1: Corporate Presentation Full Year 2018
Corporate Presentation Full Year 2018
Slide 2: Disclaimer
Disclaimer MM Group for Industry and International Trade S.A.E (MTI) give notice that: The particulars of this presentation do not constitute any part of an offer or a contract. The information contained in this presentation may contain certain projections and forward‐looking statements that reflect
Slide 3: Introduction to the Company
Introduction to the Company A local Distribution Giant The Company in numbers MTI was established in 1992 and is one of Egypt’s largest distribution companies by geographic coverage with access to over 40,000 25+ years Experience in distribution points of sale. 90% Geographic Footprint Diversifi
Slide 4: Line of Business
Line of Business Product Segment Brand Portfolio Consumer Electronics The consumer electronics business currently includes distribution of mobile phones, televisions, and air conditioners. Telecom The telecom business includes the operation of Vodafone branded retail franchises and distribution of m
Slide 5: History of Growth
History of Growth MTI becomes a non-exclusive Samsung approached MTI to MTI started distribution of distributor to SIEMENS, becomes become a distributor in the Huawei mobile phones Starts trading Siemens cell phones one of the major NOKIA dealers mobile phone business Consumer 2017 2018 1996 2002 20
Slide 6: Distribution Network
Distribution Network Consumer Electronics 11,968 Points of Sale 5 Samsung express Stores 3 Brand Stores 8 Service Centers 2 Branded Bosch Stores Telecom 27,706 Points of Sale 55 Stores (owned & operated) Automotive Automotive Automotive 16 Points of Sale 4 Of which owned & operated Tractor and Pipes
Slide 7: 4th Quarter Financial Results Review: Consolidated
4th Quarter Financial Results Review Consolidated Financial Overview Full Year 2018 Financial Results Summary Revenue | EGP mn Gross Profit & Margin | EGP mn, % EBITDA & Margin | EGP mn, % Adjusted Net Profit & Margin | EGP mn, % 1 800 0 600 500 20% 7.0% 6.8% 0% 450 700 0 7,626 4.9% 4.6% YoY 24.5% 5
Slide 8: 4th Quarter Financial Results Review: Standalone
4th Quarter Financial Results Review Standalone Financial Overview Full Year 2018 Financial Results Summary Revenue | EGP mn Gross Profit & Margin | EGP mn, % EBITDA & Margin | EGP mn, % Adjusted Net Profit & Margin | EGP mn, % 1 800 0 600 500 20% 7.0% 7.2% 0% 450 700 0 4.9% 4.9% YoY 11.4% 500 0% Yo
Slide 9: Revenue Breakdown by Line of Business
4th Quarter & FY18 Financial Results Review Consolidated Financial Overview - Revenue Breakdown by Line of Business Full Year 2018 Revenue Breakdown by LoB | % 4th Quarter 2018 Revenue Breakdown by LoB | % Consumer Electronics Telecom Consumer Electronics Telecom 18.9% FY17 4Q17 16.2% 73.8% EGP 6,12
Slide 10: Gross Profit by Line of Business
4th Quarter & FY18 Financial Results Review Consolidated Financial Overview - Gross Profit by Line of Business Full Year 2018 Gross Profit Breakdown by LoB | % 4th Quarter 2018 Gross Profit Breakdown by LoB | % Telecom Telecom 12.6% Consumer Electronics Consumer Electronics 12.5% 16.6% 12.6% FY17 4Q
Slide 11: Consumer Electronics
CONSUMER 42.9% 70.3% Of FY18 ELECTRONICS Revenue Distribution of & smartphones in the Egyptian market, through Egypt’s largest distribution network, spanning +40,000 points of sale. MTI also offers after-sales services for smartphones. Distribution of Consumer Appliances through our network of +12,0
Slide 12: Mobiles Overview – Smart Phone Market
4th Quarter Financial Results Review Mobiles Overview – Smart Phone Market Mobile Volume Sales & Average Selling Price | # of Units in Mns, USD YOY 23% 20.0 200 .0 175 185 173 163 170 18.0 136 136 141 149 141 150 .0 16.0 100 .0 YOY 16% 14.0 50.0 12.0 - 12.5 10.0 (5 0.0) 10.8 8.0 (1 00.0) 6.0 (1 50.0
Slide 13: Consumer Electronics Consolidated Results
4th Quarter Consolidated Results Financial Review Consumer Electronics Consumer Electronics Overview – 4Q18 Revenue | EGP mn Gross Profit & Margin | EGP mn, % YoY 26.5% 1,8 00 QoQ 9.4% 120 4.7% 5.0% 4.5% 0.0 % 96 1,6 00 100 1,4 00 1,602 -50.0% 1,2 00 1,465 80 1,266 -100.0% 73 1,0 00 60 -150.0% 800 5
Slide 14: Consumer Electronics Standalone Results
4th Quarter Standalone Results Financial Review Consumer Electronics Consumer Electronics Overview – 4Q18 Revenue | EGP mn Gross Profit & Margin | EGP mn, % 120 1,6 00 4.7% 5.0% 8.2% 0.0 % 1,4 00 100 1,465 -50.0% 1,2 00 1,266 80 65 -100.0% 1,0 00 800 60 73 -150.0% 600 797 59 40 -200.0% 400 20 -250.0
Slide 15: Telecom
80.1% TELECOM 18.9% Of FY18 Revenue Partnership with allowing MTI to act as a distributor for almost half of the prepaid scratch cards in Egypt, as well as operating franchised Express shops +27,000 50% 60 Vodafone Scratch Cards Points of Sale Operated Vodafone Stores Market share
Slide 16: Telecommunication Overview
4th Quarter Results Financial Review Telecommunication Telecommunication Overview – 4Q18 Revenue | EGP mn Gross Profit & Margin | EGP mn, % YoY 21.8% 450 QoQ -10.7% 60 6.0 % 5.8% 400 50 5.5 % 350 386 5.2% 300 345 40 5.0 % 4.8% 283 250 30 4.5 % 200 20 4.0 % 150 100 10 16 18 18 3.5 % 50 0 0 3.0 % 4Q17
Slide 17: Automotive
85.2% AUTOMOTIVE 10.2% Of FY18 Revenue Largest importer and distributor of luxury cars & motorcycles in Egypt, exclusive agent for , , , & 16 #1 4 Importer and Distributor of Points of Sale Owned & Operated POS Luxury cars in Egypt
Slide 18: Automotive Overview
4th Quarter Results Financial Review Automotive Automotive Overview – 4Q18 Revenue | EGP mn Gross Profit & Margin | EGP mn, % 60 17. 5% 250 50 17. 0% 200 201 40 16. 5% 16.4% 150 32 160 30 16. 0% 100 15.7% 15.7% 105 20 15. 5% 50 10 17 25 15. 0% 0 0 14. 5% 4Q17 3Q18 4Q18 4Q17 3Q18 4Q18 Automotive Over
Slide 19: Tractors & Pipes
TRACTORS 98.0% 0.6% Of FY18 & PIPES Revenue Assembly and distribution of agricultural tractors, namely & ; MTI is also one of the largest suppliers of seamless steel pipes in Egypt 1 10 1 Tractors Assembly Line Points of Sale Owned & Operated POS
Slide 20: Tractors & Pipes Overview
4th Quarter Lines of Business Review Tractors & Pipes Overview Tractors & Pipes Overview | 4Q18 Revenue | EGP mn Gross Profit & Margin | EGP mn, % 7 50. 0% 38.9% 20 18 33.6% 32.2% 6 19 100 % 0.0 % 18 16 5 6 6 14 -400% -50.0% 12 4 10 3 -900% -100.0% 8 6 2 4 -1400% 2 -150.0% 5 1 2 0 -1900% 0 -200.0% 4
Slide 21: Investments in Associates
INVESTMENTS IN ASSOCIATES Investments supporting and complementing MTI’s core distribution business, through which invests in Non-banking Financial Institutions such as , & and distribution which distributes Samsung mobile phones . +240 5 69% Paid in Capital in EGP mn # of Companies Ownership in Kan
Slide 22: Non Banking Financial Services
Non Banking Financial Services MTI B Investments 10.6% 56% 45% Ebtikar for Financial Investment Mortgage Finance & Consumer Electronic Payment Microfinance Leasing finance 35.7% 60% 37% 50% • Masary is a leading • Bee is a pioneering • Ebtikar,TCV and Acquire collectively through • Vitas Egypt recei
Slide 23: MTI Share Performance
MTI Share Performance MTI vs EGX30 Rebased 19 15 MTI Volume MTI EGX30 Rebased 18 14 17 13 16 12 15 11 14 10 13 9 EGP per Share 12 8 Mns 11 7 10 6 9 5 8 4 7 3 6 2 5 1 4 0 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Sources: Mubasher Pro, 23
Slide 24: Investment Highlights
Investment Highlights Strong distribution platform • Strong distribution and retail network with nationwide geographical coverage and access to over ~40,000 points of sale, constituting a high entry Tracking & ~40k barrier to the market monitoring points of systems sale Diverse portfolio of products
Slide 25: Management Biographies
Management Biographies Mr. Khaled Mahmoud (Executive Chairman and CEO) Mr. Khaled Mahmoud has over 30 years of experience in the distribution and retail businesses across various business segments. He is also an experienced investor where he invests opportunistically in private equity and investment
Slide 26: Management Biographies Cont’d
Management Biographies Cont’d Mr. Salah Mahmoud (Sales Manager – Mobile Network Operators) Mr. Salah has over 5 years of experience at MTI where he has held various positions within the sales and marketing departments including; Mobile Network Operators Sales Manager, Organized Retail Key Accounts M
Slide 27: Board of Directors Biographies
Board of Directors Biographies Mr. Khaled Mahmoud (Executive Chairman) Mr. Khaled Mahmoud has over 30 years of experience in the distribution and retail businesses across various business segments. He is also an experienced investor where he invests opportunistically in private equity and investment
Slide 28: Board of Directors Biographies Cont’d
Board of Directors Biographies Cont’d Dr. Ali Hassan Dayekh (Non-Executive Director) Dr. Ali Dayekh has over 30 years of experience in the construction and construction materials sector. He is the President and CEO at Saudi Group for Construction. He is a Member of the Advisory Board of Gulf Capital
Slide 29: Board of Directors Biographies Cont’d
Board of Directors Biographies Cont’d Ms. Yasmin Aly (Independent Director) Ms. Yasmin has more than 18 years of experience in the financial services industry, having held positions in regional investment banks including EFG-Hermes and Beltone Financial. During her tenure at Beltone, where she was D
Slide 30: Income Statement Standalone
Appendix Financial Statements - Income Statement Standalone Income Statement (EGP) FY 2017 FY 2018 %age Change Q4 2017 Q4 2018 %age Change Net Sales 6,123,957,199 6,820,352,322 11.4% 1,672,023,893 1,320,423,926 -21.0% COGS (5,695,317,244) (6,329,796,618) 11.1% (1,573,114,939) (1,206,637,325) -23.3%
Slide 31: Income Statement Consolidated
Appendix Financial Statements - Income Statement Consolidated Income Statement (EGP) FY 2017 FY 2018 %age Change Q4 2017 Q4 2018 %age Change Net Sales 6,123,957,199 7,625,721,789 24.5% 1,672,023,893 2,125,793,393 27.1% COGS (5,695,317,244) (7,104,631,518) 24.7% (1,573,114,939) (1,981,472,225) 26.0%
Slide 32: Balance Sheet Consolidated
Appendix Financial Statements – Balance Sheet Consolidated EGP mn FY2017 FY2018 Balance Sheet Inventory EGP 519,100,456 798,722,808 Receivables & Notes Receivable EGP 375,388,542 402,024,044 Due from Related Parties EGP 44,058,926 9,392,660 Advances to Suppliers EGP 223,796,246 397,056,796 Debtors &
Slide 33: Thank you
Thank you Investor Relations Contact Information : Ashraf El Ghannam, Investor Relations and Business Development Manager Sally Kheir, Investor Relations Officer Mob. : +2 0100 555 3070 Tel. : +2 (02) 24024332 email: ir@mti-mmgroup.com Web site : www.mti-mmgroup.com
MM Group for Industry and International Trade — FY2018 Earnings Presentation on 6ix