Mezzan Holding Company Kscc · KSE:MEZZAN

Mezzan Holding Company Kscc — Mezzan Holding Company — 1Q20 and 2Q20 Earnings Presentation

20 slides from Mezzan Holding Company Kscc's earnings presentation, Aug 12, 2020

  1. Slide 1: 1Q20 + 2Q20 Earnings Presentation

    1Q20 + 2Q20 Earnings Presentation August 12, 2020 1

  2. Slide 2: Disclaimer

    Disclaimer This confidential document is provided for informational purposes only. THE INFORMATION SET OUT IN THIS PRESENTATION AND PROVIDED IN THE DISCUSSION SUBSEQUENT THERETO DOES NOT CONSTITUTE AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES IN ANY JURISDICTION. IT IS SOLELY FOR US

  3. Slide 3: Agenda

    Agenda Tailwinds & Headwinds H1 2020 Highlights Historical Performance Financial Review Q&A 3

  4. Slide 4: COVID-19 Opportunities and Challenges

    COVID-19 Opportunities and Challenges Opportunities: Challenges: Positively Impacted Adversely Impacted Portfolio ✓ Kuwait: ꭓ Vanity products ✓ Baked Goods ꭓ Energy drinks ✓ Frozen Goods ꭓ Water ✓ Rice ꭓ Industrial Segment ✓ Tuna ✓ Cleaning& Detergents ✓ Medicine Channel ✓ Cooperative Supermarkets ꭓ

  5. Slide 5: Mezzan Today: Tailwinds

    Mezzan Today: Tailwinds ➜ ➜ ➜ Strong top line performance in all key segments: Food M&D, Catering, FMCG, and Healthcare ➜ ➜ Opportunistic business given COVID Enhancing operating margins ➜ ➜ Enhanced profitability margins driven by economies of scale, operating ➜➜ ➜ leverage Strong performance in Ku

  6. Slide 6: Mezzan Today: Headwinds

    Mezzan Today: Headwinds ➜ ➜ ➜ Performance was despite challenges in select sales channels impacted by full lockdowns, curfews, and closures (schools, food service etc.) ➜ ➜ Supply chain disruptions issues for some portfolio items Timed interruptions of business in select areas, such as Qatar ➜ ➜ One

  7. Slide 7: Mezzan Today: Highlights

    Mezzan Today: Highlights KD Millions EBITDA (2016-2020) 1Q20 1Q19 % Diff 2Q20 2Q19 % Diff 1H20 1H19 % Diff KD Millions Q1 Q2 Revenue 74.4 62.6 +18.8% 59.9 52.4 +14.2% 134.3 115.0 +16.7% 15.8 13.8 12.8 7.2 Gross Profit 16.6 14.5 15.3 11.8 31.9 26.3 6.7 11.3 11.2 +14.6% +29.5% +21.3% 4.9 4.0 4.0 EBITDA

  8. Slide 8: Mezzan Today: Historical Performance

    Mezzan Today: Historical Performance KD Millions 1H Revenue 1H Gross Profit 1H Net Profit 1Q 2Q 1Q 2Q 1Q 2Q 134.3 31.9 10.0 59.9 27.9 27.9 15.3 4.8 115.0 26.3 108.5 107.8 109.4 13.6 12.7 24.7 8.1 52.4 11.8 7.3 7.3 52.8 50.3 50.6 11.3 6.8 3.5 2.0 2.2 1.8 74.4 16.6 5.2 5.3 5.0 5.1 55.7 57.5 58.8 62.6

  9. Slide 9: Financial Review

    Financial Review 9

  10. Slide 10: 1H2020: Contribution by Business Line

    1H2020: Contribution by Business Line FOOD REVENUE +9.5% NON-FOOD REVENUE +34.8% Vs.1H19 Vs.1H19 66.9% Share of of total Group 33.1% Share of of total Group Revenue Revenue Growth Share Growth Share 1Q20 +8.6% 62.2% 1Q20 +40.3% 37.8% 2Q20 +10.4% 72.9% 2Q20 +26.3% 27.1% 10

  11. Slide 11: 1H2020 Revenue: Growth by Business Division

    1H2020 Revenue: Growth by Business Division Vs.1H19 Manufacturing FOOD &Distribution 46.0% of Group revenue +10.0% +9.5% Catering 14.3% of Group revenue +7.5% +16.7% Services 6.7% of Group revenue +10.0% NON-FOOD FMCG & +34.8% Healthcare 31.5% of Group revenue +39.6% Industrials 1.5% of Group revenu

  12. Slide 12: 2Q2020 Revenue: Growth by Business Division

    2Q2020 Revenue: Growth by Business Division Vs.2Q19 Manufacturing FOOD &Distribution 47.9% of Group revenue +9.2% +10.4% Catering 17.5% of Group revenue +16.5% +14.2% Services 7.5% of Group revenue +4.6% NON-FOOD FMCG & +26.3% Healthcare 25.7% of Group revenue +31.4% Industrials 1.4% of Group revenu

  13. Slide 13: 1Q2020 Revenue: Growth by Business Division

    1Q2020 Revenue: Growth by Business Division Vs.1Q19 Manufacturing FOOD &Distribution 44.5% of Group revenue +10.7% +8.6% Catering 11.7% of Group revenue -1.7% +18.8% Services 6.0% of Group revenue +15.8% NON-FOOD FMCG & +40.3% Healthcare 36.2% of Group revenue +44.8% Industrials 1.6% of Group revenu

  14. Slide 14: Revenue: Contribution and Growth by Country

    Revenue: Contribution and Growth by Country Vs.1H19 1H20 Kuwait UAE Qatar KSA Jordan Afghanistan Iraq 75.5% 9.1% 8.0% 1.9% 2.2% 2.3% 1.1% +23.6% -2.4% -5.7% +0.5% +6.5% +0.1% +71.2% 2Q20 2Q20 2Q20 2Q20 2Q20 2Q20 2Q20 Vs.2Q19 74.4% 8.7% 8.8% 2.1% 2.3% 2.7% 1.1% +21.6% -6.2% -7.8% +19.1% +17.4% -3.5%

  15. Slide 15: P&L

    P&L KD Millions 1Q20 1Q19 % Diff 2Q20 2Q19 % Diff 1H20 1H19 % Diff Revenue 74.4 62.6 +18.8% 59.9 52.4 +14.2% 134.3 115.0 +16.7% Gross Margin 16.6 14.5 +14.6% 15.3 11.8 +29.5% 31.9 26.3 +21.3% GM% 22.3% 23.1% 25.5% 22.5% 23.7% 22.9% SG&A -10.2 -8.4 +21.2% -10.3 -8.7 +19.1% -20.6 -17.1 +20.1% Others -

  16. Slide 16: Cashflow

    Cashflow KD Millions 1Q20 1Q19 Diff 2Q20 2Q19 Diff 1H20 1H19 Diff Operating Cash Flow before WC changes 9.2 7.9 1.29 8.9 5.1 3.77 18.1 13.0 5.06 Working Capital -3.8 -6.0 2.16 7.9 -5.0 12.97 4.1 -11.0 15.13 Operating Cash Flow 5.4 2.0 3.45 16.8 0.1 16.74 22.2 2.0 20.19 CAPEX / Other investing activi

  17. Slide 17: Balance Sheet

    Balance Sheet as of March 31 KD Millions As of Total Assets Equity Net Debt to Capitalization KD Millions KD Millions % March 31 Growth from previous period driven by acquisition and growth 276.9 38.0% 116.8 120.8 114.8 118.9 105.3 28.6% 216.8 221.2 224.1 22.0% 23.2% 22.2% 195.5 2016 2017 2018 2019

  18. Slide 18: Net Debt as of June

    Net Debt as of June 30 KD Millions Net debt dropped from KWD74.4m in Dec 2019, to KWD73.0m in March 75.4 74.4 73.0 2020 to KWD 57.6m in June 2020 53.1 57.6 45.9 45.8 45.5 45.9 Growth from pervious driven by acquisition and growth Jun'18 Sep'18 Dec'18 Mar'19 Jun'19 Sep'19 Dec'19 Mar'20 June'20 Net De

  19. Slide 19: Q&A

    Q&A 19

  20. Slide 20: 20

    20

Mezzan Holding Company — 1Q20 and 2Q20 Earnings Presentation on 6ix