Mm Group For Industry & International Trade · EGX:MTIE
Mm Group For Industry & International Trade — MM Group For Industry & Int. Trade S.A.E — H1 2020 Earnings Presentation
28 slides from Mm Group For Industry & International Trade's earnings presentation, 2020
Slide 1: MM Group For Industry & Int. Trade S.A.E Investor Presentation First Half 2020
MM Group For Industry & Int. Trade S.A.E Investor Presentation First Half 2020 o =z > n = <= a
Slide 2: Disclaimer
Disclaimer This Presentation is intended for information purposes only and does not constitute or form part of an offer for sale or subscription or an invitation or solicitation of an offer to subscribe for or purchase securities of any kind and neither this document nor anything contained herein sh
Slide 3: MTI at a Glance
MTI at a Glance A Leading local Distribution Giant Consolidated Financial Highlights Experience in distribution EGP mn FY17 FY18 FY19 Y-o-Y 25+ years Revenue 6,124 7,626 9,830 28.9% 90% Geographic Footprint Gross Profit 430 523 930 77.8% 95% Population reach EBITDA 299 353 644 82.1% 40k+ Accessible
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, air conditioners and home appliances. Telecom The telecom business includes the operation of Vodafone branded retail franchises and d
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 Retail Stores 4 Branded Stores 8 Service Centers 2 Branded Bosch Stores Telecom 27,706 Points of Sale 90 Stores (owned & operated) Automotive Automotive Automotive 16 Points of Sale 4 Of which owned & operated Tractor and Pipe
Slide 7: 1H2020 Financial Results Review
1H2020 Financial Results Review Solid Financial growth Consolidated Financial Results Summary Revenue | EGP mn Gross Profit & Margin | EGP mn, % EBITDA & Margin | EGP mn, % Net Profit & Margin | EGP mn, % 600 0 100 0 20% 800 20% 8.7% 11.3% 7.1% 500 0 900 0% 700 6.5% 0% 5,345 800 600 5% 700 600 4.7%
Slide 8: 2nd Quarter 2020 Financial Results Review
2nd Quarter 2020 Financial Results Review Solid Financial growth Consolidated Financial Results Summary Revenue | EGP mn Gross Profit & Margin | EGP mn, % EBITDA & Margin | EGP mn, % Net Profit & Margin | EGP mn, % 350 20% 250 20% 320 0 7.9% 11.3% 11.2% 7.3% 300 6.2% 6.8% 0% 200 270 0 180 4.8% 4.7%
Slide 9: Revenue Breakdown by Line of Business
1H2020 Financial Results Review Revenue Breakdown by Line of Business Consolidated Revenue Breakdown by LoB | % Standalone Revenue Breakdown by LoB | % Auto Auto 19.5% 23.7% Tractors & Pipers Telecom Telecom 12.9% 10.5% Tractors & Pipers 14.9% 17.3% 14.1% 18.1% 1H20 1H20 EGP 4,343 mn EGP 3,577 mn 1H
Slide 10: Gross Profit by Line of Business
1H2020 Financial Results Review Gross Profit by Line of Business Consolidated Gross Profit Breakdown by LoB | % Standalone Gross Profit Breakdown by LoB | % Auto Auto 42.7% 47.8% Telecom 9.8% 11.9% Telecom Tractors & Pipers 21.3% 26.0% 11.3% 1H20 1H20 EGP 485 mn 12.7% EGP 433 mn 1H19 1H19 Tractors &
Slide 11: Consumer Electronics
21.7% CONSUMER 65.3% Of 1H20 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 – Global Smart Phone Market
1H2020 Financial Results Review Mobiles Overview – Global Smart Phone Market Global Smart phone Users Per Region | # of Users in Mns FY 2019 Global Smart phone Penetration Rate| % 4,00 0.0 3,181 70% 66% 3,50 0.0 2,995 60% 2,741 60% 54% 50% 3,00 0.0 2,491 576 537 50% 46% 45% 44% 2,50 0.0 498 Latin an
Slide 13: Mobiles Overview – Egypt Smart Phone Market
1H2020 Financial Results Review Mobiles Overview – Egypt Smart Phone Market Mobile Volume Sales & Average Selling Price | # of Units in Mns, USD 200 200 5.0 185 185 195 180 194 200 .0 163 170 175 149 4.5 136 136 141 4.0 100 .0 3.8 3.5 3.6 3.6 3.0 3.2 3.3 3.3 3.2 3.2 - 2.5 3.0 3.0 3.0 3.0 2.0 2.6 (1
Slide 14: Consumer Electronics
1H2020 Financial Results Review Consumer Electronics Consolidated Overview Consumer Electronics line of business which represents Revenue | EGP mn 65.3% of the consolidated revenues in 1H20, decreased Gross Profit & Margin | EGP mn, % by 30.4% Y-o-Y to reach EGP 2.8 billion compared to EGP 4.1 bil
Slide 15: Telecom
85.0% TELECOM 14.9% Of 1H20 Revenue Partnership with allowing MTI to act as a distributor for the prepaid scratch cards and electronic top up, as well as operating franchised Express shops +27,000 50% 90 Vodafone Distribution Points of Sale Operated Vodafone Stores Market share 198 Operated Franchis
Slide 16: Telecommunication Overview
1H2020 Financial Results Review Telecommunication Telecommunication Overview Revenue | EGP mn Gross Profit & Margin | EGP mn, % 799 796 793 790 787 784 781 778 775 772 769 766 763 760 757 754 751 748 745 742 110 15. 0% 739 736 733 730 727 724 721 718 715 712 709 706 703 700 697 694 691 688 685 682 6
Slide 17: Automotive
80.0% AUTOMOTIVE 19.5% Of 1H20 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
1H2020 Financial Results Review Automotive Automotive Overview Revenue | EGP mn Gross Profit & Margin | EGP mn, % 300 30. 0% 900 25.2% 800 847 24.4% 250 25. 0% 700 23.5% 200 20. 0% 600 500 16.1% 17.5% 207 400 562 150 15. 0% 455 300 393 100 114 10. 0% 200 92 98 141 50 5.0 % 100 23 0 0 0.0 % 2Q19 1Q20
Slide 19: Tractors & Pipes
TRACTORS 98.0% 0.3% Of 1H20 & PIPES Revenue Assembly and distribution of agricultural tractors, namely & ; MTI is also one of the suppliers of seamless steel pipes in Egypt 1 10 1 Tractors Assembly Line Points of Sale Owned & Operated POS
Slide 20: Tractors & Pipes Overview
1H2020 Financial Results Review Tractors & Pipes Tractors & Pipes Overview Revenue | EGP mn Gross Profit & Margin | EGP mn, % 25 17 35. 0% 15 22 20 30. 0% 13 15 11 25.7% 25. 0% 21.1% 15 9 20. 0% 15.6% 15.6% 15.6% 10 7 15. 0% 9 9 5 6 10. 0% 5 3 5 1 2 2 1 2 5.0 % 0 -1 0.0 % 2Q19 1Q20 2Q20 1H19 1H20 2Q
Slide 21: Kanawat is the fastest growing distributor in Egypt
Kanawat is considered the fastest growing distributor in Egypt with a comprehensive market coverage and is one of the five authorized dealers for Samsung mobile and the second distributor of Nokia mobile phones in the Egyptian market and the exclusive distributor for the Chinese premium mobile acces
Slide 22: Kanawat Financial Summary
1H2020 Financial Results Review Kanawat Financial Summary Revenue | EGP mns Gross Profit & Margin | EGP mns, % 1,60 0.0 1,369 140 .0 5.7% 7.1% 6.5% 6.1% 6.8% 1,40 0.0 0.0 % 120 .0 1,20 0.0 -20.0% 83 100 .0 1,00 0.0 766 80.0 -40.0% 800 .0 628 60.0 52 403 600 .0 363 35 -60.0% 400 .0 40.0 29 23 -80.0%
Slide 23: Investments in non-banking financial institutions
Investments supporting and complementing MTI’s core distribution business, through which invests in Non-banking Financial Institutions such as , & and . +340 49.9% 10.7% Paid in Capital in EGP mn Ownership in Ebtikar Direct Ownership in Masary +123k +2.5Bn +46M Transactions Value per Day in Active P
Slide 24: Non Banking Financial Services
Non Banking Financial Services MTI B Investments & BPE Partners 10.7% 49.9% 50.1% Ebtikar for Financial Investment Mortgage Finance , Leasing Consumer Electronic Payment Microfinance & Auto finance finance 70.7% 60% 46% 100% • Masary is a leading • Bee is a pioneering • Ebtikar,TCV and Acquire colle
Slide 25: Electronic Payments Overview
1H2020 Financial Results Review Electronic Payments Electronics Payments Overview Transactions Value | EGP Bn Avg. Daily Transactions Value | EGP mn Number of POS Terminals | 000’ YoY 10% 10 8.4 60 YoY 10% 9 7.6 47 140 123 123 8 50 43 120 7 40 100 6 5 30 80 60 57 4.4 5.0 28 4 20 25 60 3 40 2 10 1 3.
Slide 26: Tamweel Overview
1H2020 Financial Results Review Tamweel Tamweel Overview Total Portfolio Size | EGP mn New Loan Originations| EGP mn Debt to Equity | EGP mn, x YoY 39% 100 0 5.4 YoY 28% 300 0 300 0 900 5.00 250 0 800 250 0 4.8 2,502 700 390 200 0 749 200 0 600 353 2,115 1,797 585 500 150 0 150 0 400 1,681 100 0 300
Slide 27: Vitas Overview
1H2020 Financial Results Review Vitas Vitas Overview +66M +2300 +28k +39M Disbursed Loans in EGP Number of Active Loans Average Ticket Size in EGP Net Outstanding Portfolio in EGP Sources: Company Data 27
Slide 28: Thank you
Thank you Investor Relations Contact Information : Ashraf El Ghannam, Head of Investor Relations and Business Development 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 & Int. Trade S.A.E — H1 2020 Earnings Presentation on 6ix