Mercator Medical Sa · GPW:MRC
Mercator Medical Sa — Investor Presentation (January 2021)
22 slides from Mercator Medical Sa's investor presentation, Jan 28, 2021
Slide 1: 28.01.2021
28.01.2021
Slide 2: Global disposable gloves market before COVID
GLOBAL DISPOSABLE GLOVES MARKET BEFORE COVID The global disposable gloves market size was estimated at USD 6.71 billion in 2019 and was Growth factors: expected to expand at double-digit CAGR (12% without COVID-19 impact). Nowadays market consistent market growth supported by the lack of direct pr
Slide 3: Estimated global demand with demand-supply gap
ESTIMATED GLOBAL DEMAND WITH DEMAND-SUPPLY GAP 2020 estimated global demand SARS-CoV-2 estimated global sales volume with direct impact of COVID-19 epidemic 700 Est. sales volume 360 bln 600 Accelerating avg. growth: 2010-2016 +5.8%, 500 Large volume gap: 2016-2019 +12.4%, 200+ bn pcs, 2020-22E +20%
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 global manufacturer #1: Top Glove
MESSAGE FROM THE GLOBAL MANUFACTURER #1: „The best is yet to come – new peaks ahead” – Top Glove 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, +15% in
Slide 6: Key concerns and answers – market outlook
KEY CONCERNS AND ANSWERS – MARKET OUTLOOK
Slide 7: Mercator – Company overview
————————— MERCATOR COMPANY OVERVIEW
Slide 8: 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 9: Field of activity - production and distribution
FIELD OF ACTIVITY - PRODUCTION AND DISTRIBUTION 48% 52% Production segment Distribution segment Data for sales revenue 1-3Q 2020
Slide 10: 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 11: 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 12: Nitrile glove factory in Thailand: ecology
NITRILE GLOVE FACTORY IN THAILAND: ECOLOGY
Slide 13: 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 14: Financial and operating results
————————— MERCATOR FINANCIAL AND OPERATING RESULTS
Slide 15: Record results every quarter
RECORD RESULTS EVERY QUARTER Q1 2020 Q2 2020 Q3 2020 Q4 2020* mln PLN change yoy mln PLN change yoy mln PLN change yoy mln PLN change yoy Sales revenue 202,8 +67% 375,2 +175% 604,0 +317% 654,1 +374% EBITDA 35,3 +33,5m 234,6 +227,6m 390,9 +382,4m 413,6 +406,0m EBITDA margin 17,4% +15,9 pp 62,5% +57,5
Slide 16: Dynamic growth of sales
DYNAMIC GROWTH OF SALES Sales revenues (m PLN) Q3 2019 0% 1.182 10% 27% 34% +194% +317% 25% 4% 654 Q3 2020 4% 540 17% 420 402 17% 301 14% 264 16% 227 148 169 138 32% Poland CEE w/o PL W.Europe N.America Australia Others 2013 2014 2015 2016 2017 2018 2019 1-3Q 19 1-3Q 20 Q4 19 Q4 20* FOUR QUARTERS TH
Slide 17: EBITDA – record values from 2020, strong both business legs
EBITDA – record values from 2020, strong both business legs EBITDA (m PLN) and EBITDA margin (%) Decomposition of EBITDA 700 70% 400 80% 660,7 75,0% 63,2% 350 70% 600 60% 55,9% 60,8% 144,5 300 60% 500 50% 52,2% 54,1% 250 50% 413,6 400 40% 200 40% 96,7 300 30% 150 30% 246,4 100 20% 200 20% 137,9 50 1
Slide 18: Net result & cash – record values from 2020
NET RESULT & CASH – record values from 2020 Net profit (m PLN) Net cash (m PLN) 586,9 31.12.2020* 535,4 30.09.2020 380,4 369,7 High level of EBITDA conversion to cash, 30.06.2020 36,2 in Q4 large prepayments to suppliers 31.03.2020 -129,8 10,0 10,3 14,8 6,9 5,4 7,0 31.12.2019 -133,5 -2,0 -1,0 -1,0 3
Slide 19: Very low comparative indices
VERY LOW COMPARATIVE INDICES MRC peers share prices change (1Y) MRC share price MRC P/BV ratio MRC P/E ratio Further drops in stock market indicators expected after the publication of the final Q4 2020 results (March 1, 2021) Peers: Mercator Medical: P/E P/BV P/S Hartalega 22,1 10,0 8,0 P/E P/BV P/S
Slide 20: What next?
What next? • Implementation of the development strategy 2021+ (principles: dividends/buybacks and smart investments with business diversification and potential M&As); high profits, good prospects and a healthy balance sheet with no investment debt (repaid loans in Q3 2020) are a favorable basis to i
Slide 21: 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
Slide 22: Disclaimer
DISCLAIMER This presentation (“Presentation”) was prepared by Mercator Medical S.A. (the “Company”) for information purposes only. The presentation does not constitute an offer to sell or solicitation of an offer to buy or sell any financial instrument, cannot be relied upon in connection with any c
Mercator Medical — Investor Presentation (January 2021) on 6ix