Nahdi Medical Company · TADAWUL:4164
Nahdi Medical — Q3 2023 Earnings Presentation
19 slides from Nahdi Medical's earnings presentation, 2023
Slide 1: Nahdi Medical Company Investors Presentation Q3 2023
Nahdi Medical Company INVESTORS PRESENTATION Q3 2023
Slide 2: Financial Highlights as of 9M 2023
Financial Highlights as of 9M 2023 SOLID 9M STRONG CASH FLOW FINANCIAL RESULTS GENERATION Revenue sar 6.560 Free Cash Flow sar 894mn Operating Income sar 776mn Margin 11.9% FCF Conversion Rate 72% Net Profit sar 722mn Capex 3.9% of Revenue Margin 11.1% EPS sar5.6 ZERO DEBT Nahdi M Company | Q3 2023E
Slide 3: We exist to add beats to our Guests' lives everyday
We exist to add beats to our Guests’ lives everyday Vision ~ To be the most loved & trusted health and wellbeing partner for all our Guests ission To exceed all our Guests’ expectations by providing superior personalised lifecare experiences every day, everywhere = Integrity = Care ® Leading with =
Slide 4: Our Passion for People always delivers value to our Guests
Our Passion for People always delivers value to our Guests HRSE Award Employer of the Year 2023 Invested in the success of our people Always cultivating Saudi talents GREAT Strong Partnerships iawXeiy Awarded GPTW the 6% consecutive time and highly a> te Melia ranked throughout Saudi, GCC & Asia sin
Slide 5: Guest Satisfaction continues to drive our long-term Strategy
Guest Satisfaction continues to drive our long-term Strategy Significant brand following Stronger brand equity YoY Net Promoter Score (NPS) Nielsen Store Equity Index: of retailers in KSA (YTD) 1 696379 ’ . mDec'21 Dec'22 mw Jun'23 of sales’ transactions 7 . “ are from the Nahdi Strong 62 “Nuhdeek”
Slide 6: Nahdi will continue to hone its strong omnichannel offering
Nahdi will continue to hone its strong omnichannel offering to boost market share while investing in strategic growth areas ‘\__ Expand our Omnichannel Footprint & Strengthen Core Retail offering 4 > Private Label & Brick & Mortar « Direct Imports Online Store Mix Optimization " Robust Revenue Growi
Slide 7: Nahdi's key differentiator is its diversified ecosystem
‘Nahdi’s key differentiator is its diversified ecosystem consisting of an integrated omnichannel and primary healthcare platform \_ Nahdi Ecosystem a a > | Guest care [ A@ Delivery \ & Store “ Virtual Pharmacy Consultation —~ & App | oye > 7 ig S “4 A | Polyclinic | — Health Care Provider Pharmacy N
Slide 8: Nahdi strategically invests for the long term by scaling primary healthcare
Nahdi strategically invests for the long term by scaling its primary healthcare proposition, creating more value for Guests ‘\__ Evolve into a leading omnihealth platform Healthcare Performance = Revenue doubled vs last year = Profitabilty enhanced to reach 15%+ in the medium term = Clinic Guests’ v
Slide 9: Current Challenges
Current Challenges @& Market Dynamics Increasing pressure on disposable income leads to higher price sensitivity and emergence of more aggressive price competition from online players & new emerging channels in Saudi y Business Performance Solid 6% growth in core categories (i.e., Medicine) which wa
Slide 10: Mitigation Actions
Mitigation Actions Front Shop Turnaround v Invest in pricing to sustain competitiveness vs online and new channels 7 — v Expedite full potential of Nahdi Online and Global Q3 market share v Continue nurture strategic partnerships with our vendors / partners | increased by ~— SObps vs. 02 Continue Ph
Slide 11: Consistent track record of value creation
Consistent track record of value creation Revenue remained flat at SAR 6.5bn 1,164 1,148 1,152 1,086 1,089 1,105 (+0.3%) YoY 9M 2023 Medicine drove the growth by 6% (supported by provider, private insurance and prescription flow from healthcare). SAR mn This growth came despite a -2% driven by high
Slide 12: Superior gross profit margin
Superior gross profit margin SAR mn 8 3,250 2,464 2019 2020 Source: Company disclosure Nahdi Medical Company | Q3 2023EARNINGS CALL 410% 3,305 2021 40.9% 3,521 2022 415% 40.9% —_ -12% — 2,689 2,657 9M 2022 9M 2023 Gross profit almost flat. Driven by flat revenue and investment in sales promotion and
Slide 13: Attractive net profit profile
Attractive net profit profile Fa 8.8% 9.8% SAR mn z 849 692 2019 2020 Source: Company disclosure Nahdi Medical Company | Q3 2023EARNINGS CALL 10.1% 813 2021 10.3% 888 2022 117% 111% — 5.0% — 760 9M 2022 722 9M 2023 Net Profit down 5% YTD YoY 9M 2023 Resulting from the lower gross profit and a slight
Slide 14: Strong EBITDA outcomes
Strong EBITDA outcomes 16.7% 16.9% 18.7% 18.6% 20.1% 19.0% Highly profitable business EBITDA/ Revenue consistently delivering best in SAR mn class retail EBITDA margin | | | | ;— 5.0% — 2 I 3 1.508 1,602 | Sy izio }6=—- 1462 , 1303 1,236 | | | | 2019 2020 2021 2022 | 9M 2022 9M 2023 Source: Company
Slide 15: Zero debt with strong cash flow from operations and working capital
Zero debt with strong cash flow from operations and working capital; better positioning Nahdi to support business growth in high interest rate environment Capex 25% 3.7% SAR mn. 234 320 2019 2020 Net Working Capital 6.3% 5.6% SAR mn 494 483 2019 2020 Source: Company disclosure Nahdi Medical Company
Slide 16: Superior returns on assets & equity
Superior returns on assets & equity Return on Assets * Return on Equity” Best-in-class ROA / ROE Highly profitable business with 50.6% | industry leading ROE and ROA in | 9M 2023 40.8% 18.3% 18.3% 18.0% | _ 38.8% ined 36.2% > 16.5% | 15.3% 3 | 31.7% > ‘py 14% 2 | SS a = =e + a — ab 4 2 2 : 2 2 x & |
Slide 17: Consistent dividend distribution to shareholders
Consistent dividend distribution to shareholders Dividend Payout % SAR/Share | 71% 78% 98% 13% | Sustainable and consistent Dividend payouts | 6.83 | In line with the company’s 653 6.25 6.15 | gg dividend distribution policy 5.32 5.08 531 | 56 supported by strong financial 412 performance and high l
Slide 18: Winning with our Guests
Winning with our Guests Engage Drive Invest Guests & Partners Efficiencies & Capabilities in Innovation Nahdi Medical Company] Q3 2023EARNINGS CALL 18
Slide 19: THANK YOU
THANK YOU Contacts: Investor Relations Department Email IR@nahdisa Website: httos//investors.nahdisa/ P.O. Box 17129 Jeddah 21484, Saudi Arabia
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