Mannai Corporation Q.p.s.c. · QSE:MCCS

Mannai Corporation Q.p.s.c — FY2020 Earnings Presentation

20 slides from Mannai Corporation Q.p.s.c's earnings presentation, March 2021

  1. Slide 1: Mannai Corporation QPSC FY'20 Financial Summary

    Mannai Corporation QPSC FY'20 Financial Summary

  2. Slide 2: Disclaimer

    Disclaimer Mannai Corporation Q.P.S.C. cautions investors that certain statements contained in this document state Mannai Corporation’s management's intentions, hopes, beliefs, expectations, or predictions of the future and, as such, are forward-looking statements. Mannai Corporation management wish

  3. Slide 3: Financial Highlights

    Financial Highlights QAR m FY’20 FY’19* Revenues 12,388 11,586 7% Gross Profit 2,648 2,506 6% EBITDA 984 797 23% General & Admin Expenses 1,251 1,130 11% Selling & Distribution Expenses 414 471 (12)% Finance Cost 390 405 (4)% Net Profit 14 (81) fav. Capital Employed 9,179 7,913 16% Earnings Per Shar

  4. Slide 4: Revenue Growth of 7% as 2H Offsets 1H COVID-19 Decline

    Revenue Growth of 7% as 2H Offsets 1H COVID-19 Decline QAR m Revenues • 2H’20 Revenue growth of 1,160m or 20%, +7% offsets 1H’20 decline, leading to an increase 12,388 11,586 of 802m or 7% in FY’20. +26% • Information Technology Revenues improve 3,857 by 1,359m or 15% due to the acquisition of IECIS

  5. Slide 5: 4th Quarter Group Profit of 214m Transforms FY’20 to Profit of 14m

    4th Quarter Group Profit of 214m Transforms FY’20 to Profit of 14m QAR m Net Profit • FY’20 Profit of 14m, increase of 95m 214 14 over FY’19. • 4Q’20 profit of 214m, improvement of 375m compared to 4Q’19; up 92m or 75%, after adjusting for Telecom Retail impairment adjustments. (81) (161) 4Q'19 4Q'2

  6. Slide 6: IECISA Acquisition Impact Increases IT Revenue Share to 85%

    IECISA Acquisition Impact Increases IT Revenue Share to 85% Revenue Mix FY‘19 FY‘20 Other Other Auto Auto 4% 4% Damas 5% Damas 6% 6% 11% IT IT 79% 85% 6

  7. Slide 7: IECISA Acquisition Increases Europe to Two Thirds of Sales

    IECISA Acquisition Increases Europe to Two Thirds of Sales Revenue Mix FY‘19 FY‘20 Other 0% Other 0% Qatar 33% Qatar 27% Europe 56% Europe 67% Other GCC 6% Other GCC 11% 7

  8. Slide 8: Gross Profit Margin Compression Due to Sales Reduction

    Gross Profit Margin Compression Due to Sales Reduction QAR m Gross Profit Gross Margin % 6% 2,506 2,648 21.6% 21.4% (0.2) pts FY'19 FY'20 FY'19 FY'20 • Gross Profit growth of 6% driven by Information Technology growth of 238m, up 12%, offsetting COVID-19 FY‘20 V pts impact in remaining businesses. I

  9. Slide 9: Information Technology

    Information Technology QAR m Revenue Net Profit 15% • Revenues growth due to the 282 (40)% acquisition of IECISA in Spain adds 10,538 9,179 1,759m, offsetting COVID-19 impact 170 • Excluding acquisition, revenues down 4% • Revenues impacted by lockdown, reducing access to client sites, and ability t

  10. Slide 10: Auto Group

    Auto Group QAR m Revenue Net Profit (14%) 704 54 • Strong start to the year reversed (44%) by lockdown which closed retail 604 and service facilities for 3 months. 28 • 2H’20 revenues down 8% as units sold improve relative to 1H’20. • Supply chain challenges delayed launch of new Escalade and 2021 m

  11. Slide 11: Energy and Industrial Markets

    Energy and Industrial Markets QAR m Revenue Net Profit 7% 2% 209 16.8 17.1 • Positive revenue and profit 196 growth as construction and Qatar project-related activity continues during lockdown • Orders up 36% to 203m due to major infrastructure project success FY '19 FY '20 FY '19 FY '20 GP 38.9m 38

  12. Slide 12: Jewellery Trading

    Jewellery Trading QAR m Revenue Net Profit 1,223 (35)% • Jewellery Revenues down by 28% 426m or -35% due to 1H’20 retail 798 store closures due to COVID-19. • Improving revenue and profit trend in 4Q’20 puts business on positive trajectory for 2021 (96) (133) FY '19 FY '20 FY '19 FY '20 GP 234.3m 19

  13. Slide 13: Telecom Retail

    Telecom Retail QAR m Share of Profit* • Lockdown of retail outlets across (18) UAE and KSA resulted in losses in 1H’20 • 2H’20 losses limited to -2m as environment improved • Axiom impairments of 284m recorded as a prior year (270) restatement of FY’19 FY '19 FY '20 * FY’19 Restated for 284m adjustm

  14. Slide 14: Travel Division

    Travel Division QAR m Revenue Net Profit 34 9.5 (65)% (211)% • Earnings severely impacted by travel restrictions since March 12 • Significant headcount reductions carried out to reduce losses (10.5) • Limited improvement in 2H’20 FY '19 FY '20 FY '19 FY '20 GP 28.8 9.6m NP% 28.0% (87.6)% GP% 85.3% 7

  15. Slide 15: Logistics

    Logistics QAR m Revenue Net Profit 23.4 (3%) 8.1 7% 22.6 7.6 • Slight dip in 1H’20 revenues due to industrial area lockdown, leading to loss of handling revenues and fees • Profit rebound in 2H’20 leading to full year growth in profit of 7% FY '19 FY '20 FY '19 FY '20 GP 13.0m 12.7m NP% 32.6% 36.1%

  16. Slide 16: Engineering

    Engineering QAR m Revenue Net Profit 5% • Productivity impacted due to 71 74 lockdown • Outlook promising following 0.1 19% growth in orders and 87% growth in backlog during FY’20 (4.3) FY '19 FY '20 FY '19 FY '20 GP 10.2 11.5m NP% (0.1)% (5.8)% GP% 14.4% 15.5% Cap. Emp. 5m 1m 16

  17. Slide 17: Geotechnical Services

    Geotechnical Services QAR m Revenue Net Profit 1% (33)% • Lockdown of Salwa Industrial Area 42.1 42.7 impacted all laboratories, employees and geotechnical drilling equipment • Outlook for 2021 positive after (2.5) driven by strong project backlog of (3.3) 119 Million FY'19 FY'20 FY'19 FY'20 GP 11.2

  18. Slide 18: Increase in Debt Driven by IECISA Acquisition

    Increase in Debt Driven by IECISA Acquisition QAR m Net Debt Finance Costs (4)% +905 405 7,785 390 6,846 5,941 FY'19 3Q'20 FY'20 FY '19 FY '20 • Strong Q4 cash generation reduces net debt by 800m • Interest rates trending lower reducing finance costs, • Increase due to Inetum acquisition of IECISA f

  19. Slide 19: Consolidated Statement of Profit or Loss For the Year Ended 31 December 2020

    MANNAI CORPORATION Q.P.S.C CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the Year Ended 31 December 2020 31 Dec 31 Dec 2020 2019 Variance V% QR '000 QR '000 vs. Last Year Fav /(Unfav) Revenue 12,388,482 11,585,656 802,826 7% Direct costs (9,740,366) (9,079,504) (660,862) (7)% Gross profit 2,648,116 2

  20. Slide 20: Mannai Corporation QSC Contacts

    Mannai Corporation QSC Tel: +974-4455 8888 Fax: +974 4455 8880 www.mannai.com CONTACTS Investor Relations Ewan Cameron Chief Financial Officer Abayazeed Ahmed Investor Relations Officer email: investor.relations@mannai.com.qa Tel (Direct) : +974-44558844 20

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