Mezzan Holding Company Kscc · KSE:MEZZAN

Mezzan Holding Company Kscc — Mezzan Holding Company — Q3 2017 Earnings Presentation

17 slides from Mezzan Holding Company Kscc's earnings presentation, Nov 8, 2017

  1. Slide 1: Q3 2017 Earnings Presentation

    Q3 2017 Earnings Presentation Nov 8, 2017 August 9, 2017 1

  2. Slide 2: Agenda

    AGENDA Q3 2017 Highlights AGENDA Historical AGENDA Performance AGENDA Financial AGENDA Review Q&A 2

  3. Slide 3: Headwinds

    ➜ Opportunistic re-directing snack exports of snacks delays HEADWINDS ➜➜ breakeven in KSA by one quarter until 2018 Ramp-up of the Afghanistan business within the quarter ➜ put pressure on the first part of the quarter - fully resumed HEADWINDS by mid-August Delays in the Kuwait Warehouse and UAE ch

  4. Slide 4: Tailwinds

    ➜ +9.2% growth in Food Manufacturing and Distribution business, proving the resilience of Mezzan’s core consumer driven TAILWINDS business ➜+400% pickup in Qatar sales of KITCO products within the quarter; supply chain resolved towards end of the quarter TAILWINDS ➜ ➜ Double digit growth in Catering

  5. Slide 5: Highlights

    HIGHLIGHTS Revenue Q3’17 YTD’17 49.8 m 157.6 m +4.3% +0.9% HIGHLIGHTS Gross Profit 12.7 m 40.6 m +4.6% +1.3% HIGHLIGHTS EBITDA 4.8 m 16.1 m -3.6% -14.6% Underlying Net Profit* 2.7 m 10.1 m HIGHLIGHTS Net Profit to Shareholders -13.8% -25.3% 2.8 m 10.1 m HIGHLIGHTS *Excluding the previously anticipated

  6. Slide 6: Historical Performance

    Historical Performance Revenue Gross Profit EBITDA Net Profit *Previously anticipated losses from KSA attributable to shareholders. 21.2 16.2 156.2 157.6 40.0 40.6 150.8 39.3 18.8 136.5 35.3 17.3 13.1 16.1 11.7 +0.9* 10.1 4.9% 4.8% -2.4% -4.8% YTD'14 YTD'15 YTD'16 YTD'17 YTD'14 YTD'15 YTD'16 YTD'17 YT

  7. Slide 7: Financial Review

    Financial Review 7

  8. Slide 8: Revenue contribution by business line

    Q3’17 Revenue contribution by business line GROUP FOOD 76.3% of total Group Revenue NON-FOOD 23.7% of total Group Revenue 8

  9. Slide 9: Revenue growth by business line

    Q3’17 Revenue growth by business line FOOD +4.0% vs. Q3’16 NON-FOOD +4.1% vs. Q3’16 9

  10. Slide 10: Food revenue growth by business division

    Q3’17 Revenue growth by business division Manufacturing FOOD &Distribution Contributed 55.6% to Q3'17 Revenues +9.2% vs. Q3’16 FOOD Catering Contributed 14.6% to +10.4% Q3’17 Revenues FOOD vs. Q3’16 FOOD Services Contributed 6.1% to Q3’17 Revenues -33.7% vs. Q3’16 10

  11. Slide 11: Non-food revenue growth by business division

    Q3’17 Revenue growth by business division NON-FOOD FMCG & NON-FOOD Pharma Contributed 20.6% to Q3’17 Revenues +3.8% vs. Q3’16 NON-FOOD Industrials Contributed 2.6% to Q3’17 Revenues +6.7% vs. Q3’16 NON-FOOD 11

  12. Slide 12: Q3'17 Revenue by contribution and growth by country

    Revenue contribution to total Group revenues Q3’17 Revenue by in Q3'17 compared to Q3'16 contribution & Revenue growth in Q3'17 compared to Q3'16 growth by country Kuwait UAE Qatar Jordan KSA Afghanistan Iraq 17.7% 64.7% 10.1% 2.5% 2.0% 1.9% 1.1% +8.0% -0.3% +2.8% -47.3% +299.6% -18.6% +49.3% Steady

  13. Slide 13: P&L (KD m)

    Q3’17 P&L (KD m) Q3’17 YTD’17 Commentary Growth in food offset by decline in services. FMCG Revenue 49.8 +4.3% 157.6 +0.9% aided by improvements in retail market but MOH policies have put a dampened performance. Gross Margin 12.7 +4.6% 40.6 +1.3% Gross margins remained steady at 25.5% for the quarte

  14. Slide 14: Cash Flow (KD m)

    Q3’17 Cash Flow (KD m) Q3’17 Q3’16 Diff. Operating Cash Flow before WC changes 17.7 19.2 (1.5) Working Capital (4.1) (11.8) 7.7 Operating Cash Flow 13.6 7.3 6.2 CAPEX / Other investing activities (9.8) (4.9) (4.9) Cash Flow before financing (3.8) 2.4 1.4 Dividends / Financing / other (10.7) (9.3) (1

  15. Slide 15: Q3'17 Balance Sheet (KD m)

    Q3’17 Balance Sheet (KD m) Total Assets Equity Net Debt Net Debt to Equity (%) Shareholder Equity 45.4% 107.3 38.3 38.7 220.5 102.4 37.9 206.3 94.2 32.1 181.6 83.5 174.8 37.4% 36.1% 34.1% +8.0% +8.7% +0.7% Q3'14 Q3'15 Q3'16 Q3'17 Q3'14 Q3'15 Q3'16 Q3'17 Q3'14 Q3'15 Q3'16 Q3'17 Q3'14 Q3'15 Q3'16 Q3'1

  16. Slide 16: Q&A

    Q&A [ ] To ask a question look for ‘ask a question’ tab on your screen, then type your question 16

  17. Slide 17: Key Contacts

    Key Contacts Mohammed Khajah Head of Corporate Development and Investor Relations Mezzan Holding T: +965 2228 6336 M : +965 9977 0147 E : mohammed.Khajah@mezzan.com 17

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