Mezzan Holding Company Kscc · KSE:MEZZAN

Mezzan Holding Company Kscc — FY2017 Earnings Presentation

25 slides from Mezzan Holding Company Kscc's earnings presentation, Mar 18, 2018

  1. Slide 1: FY2017 Earnings Presentation

    FY2017 Earnings Presentation March 18, 2018 August 9, 2017 1

  2. Slide 2: Agenda

    AGENDA FY2017 Highlights Historical Performance AGENDA Update: KSA Business Outlook AGENDA Financial Review AGENDA Q&A AGENDA 2

  3. Slide 3: Headwinds

    ➜ HEADWINDS Challenging and rapidly changing macro ➜➜ environment with temporary disrupted supply chain (Qatar) ➜ HEADWINDS Temporary halt in Services segment in Afghanistan HEADWINDS ➜ ➜ ➜ Excise duty in the UAE ➜ Changing competitive landscape of water in ➜ HEADWINDS ➜ Kuwait and Qatar ➜ Delay in

  4. Slide 4: Tailwinds

    ➜ TAILWINDS 2017 – A heavy investment year despite one-offs and challenged environment ➜ Busy capex year, with new water line completing ahead of time and warehouse project in UAE on TAILWINDS ➜ time and limited delay in Kuwait warehouse as well as WMS implementation and HHT rollout ➜ ➜ Adding new ca

  5. Slide 5: 2017 was a Capex year

    2017 was a Capex year Growth / New Plants Warehouses PET Bottles Plant I.T. Project Due Project Due Project Due Project Water KWI Done Um Al Ramoul UAE Done PET Kuwait Q2/18 Continue KITCO Warehouse KSA Done JAWS 2 KWI Q2/18 PET Qatar Q2/18 Management Breadsticks Line Systems & Hand KITCO Chips UAE

  6. Slide 6: Highlights

    HIGHLIGHTS Revenue Q42017 FY2017 46.9 m 204.5 m -8.3% -1.4% HIGHLIGHTS Gross Profit 12.9 m 53.4 m -6.3% -0.6% HIGHLIGHTS EBITDA 4.9 m 20.9 m -18.5% -15.5% Underlying Net Profit 2.8 m 12.9 m HIGHLIGHTS Attributable to shareholders Net Profit to Shareholders -30.2% -24.7% 2.8 m 12.9 m HIGHLIGHTS -30.2

  7. Slide 7: FY2017 Dividend Recommendation

    FY2017 Dividend Recommendation The Board of Directors has CASH DIVIDEND PAYOUT RATIO OF 53% recommended the distribution (high end of declared dividend policy) of 22 fils per share for the Total Cash Dividend Payout of year KD 6.8 m 7

  8. Slide 8: Historical Performance

    Historical Performance Revenue Gross Profit EBITDA Net Profit 19.4 53.8 26.3 207.4 204.5 53.4 24.8 196.1 50.5 17.2 182.5 45.9 21.9 20.9 14.8 12.9 3.9% 5.2% -1.5% -4.5% 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 Growth in Food & Catering Margins were maintained, Thi

  9. Slide 9: Update on Mezzan Holding's KSA business

    Update on Mezzan Holding’s KSA business (Following the 70% acquisition of Alsafi Foods in Q3, 2016) 9

  10. Slide 10: KSA: Turn-Around-Plan

    KSA: Turn-Around-Plan Streamline Leverage Group Introduce new Profitable, efficient, Operations strengths, build manufacturing growing asset scale, drive growth lines base serving Saudi IMMEDIATELY 6-12MONTHS 12-18 MONTHS 18-24 MONTHS Streamline operations by Build scale and appoint Exploit Saudi as

  11. Slide 11: KSA: Today Vs. Tomorrow

    KSA: Today Vs. Tomorrow Today Sales Outlook up 250% 2017 vs 2016, and contributed to over 2% of Mezzan Saudi to generate Holding total sales. between 5-10% of Mezzan Holding New Breadsticks line with 6 SKUs. (Distributing to UAE and Revenues by 2019 Kuwait underway) Rebranded portfolio under KITCO m

  12. Slide 12: Outlook

    Outlook 12

  13. Slide 13: 2018 Outlook: Trends and focus areas

    2018 Outlook: Trends and focus areas FOOD NON-FOOD Snacks Pharmaceuticals • Lay ground for chips line in KSA (following smaller • Mezzan completed its strategic review of the lines in Qatar and UAE) pharmaceuticals business • Energize the business with a brand relaunch • Mezzan to become a consolida

  14. Slide 14: Financial Review

    Financial Review 14

  15. Slide 15: FY17 Revenue contribution by business line

    FY17 Revenue contribution by business line GROUP FOOD 75.4% of total Group Revenue NON-FOOD 24.6% of total Group Revenue 15

  16. Slide 16: FY17 Revenue growth by business line

    FY17 Revenue growth by business line FOOD -0.7% vs. FY16 NON-FOOD -3.3% vs. FY16 16

  17. Slide 17: FY17 Revenue growth by business division (Food)

    FY17 Revenue growth by business division Manufacturing FOOD &Distribution Contributed 53.9% to FY17 Revenues +1.0% vs. FY16 FOOD Catering Contributed 14.4% to +10.2% FY17 Revenues FOOD vs. FY16 FOOD Services Contributed 7.0% to FY17 Revenues -25.7% vs. FY16 17

  18. Slide 18: FY17 Revenue growth by business division (Non-Food)

    FY’17 Revenue growth by business division NON-FOOD FMCG & NON-FOOD Pharma Contributed 21.8% to FY17 Revenues -3.7% vs. FY16 NON-FOOD Industrials Contributed 2.8% to FY17 Revenues -0.4% vs. FY16 NON-FOOD 18

  19. Slide 19: FY17 Revenue by contribution & growth by country

    Revenue contribution to total Group revenues FY17 Revenue by in FY'17 compared to FY’16 contribution & Revenue growth in FY'17 compared to FY’16 growth by country Kuwait UAE Qatar Jordan KSA Iraq Afghanistan 14.8% 67.0% 1.0% 9.9% 2.8% 2.4% 2.1% +1.8% -12.7% +3.2% -44.8% +243.5% +34.3% -16.1% Increas

  20. Slide 20: P&L (KD m)

    FY17 P&L (KD m) Q4’17 FY2017 Revenue 46.9 -8.3% 204.5 -1.4% Gross Margin 12.9 -6.3% 53.4 -0.6% GM% 27.4% 26.1% SG&A/Other (10.4) +2.2% -39.1 +9.9% Other 0.5 -29.0% -0.8 -464.3% Underlying Profit before tax 2.9 -31.0% 13.5 -26.3% Tax (0.1) -37.0% -0.6 -21.5% Underlying Net Profit 2.8 -30.7% 12.9 -26.

  21. Slide 21: Cash Flow (KD m)

    FY17 Cash Flow (KD m) Q417 FY17 Diff. Operating Cash Flow before WC changes 5.4 23.0 -3.1 Working Capital 5.7 1.6 10.2 Operating Cash Flow 11.1 24.7 7.1 CAPEX / Other investing activities -6.6 -16.4 -8.8 Cash Flow before financing 4.5 8.3 -1.7 Dividends / Financing / other -0.2 -10.9 -0.5 Increase i

  22. Slide 22: FY17 Balance Sheet (KD m)

    FY17 Balance Sheet (KD m) Total Assets Equity Net Debt Net Debt to Equity (%) Shareholder Equity 25.9% 34.5 211.7 210.9 110.1 106.4 31.5 31.8 30.3 180.3 97.5 24.4% 166.5 86.5 23.8% 23.0% +8.2% +8.4% +4.4% 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 22

  23. Slide 23: 2018 Guidance

    2018 Guidance 2017 2018 Guidance Revenue 204.5 m HSD Growth Net Profit 12.9 m LDD Growth c.8% c.5% Capex of Revenue of Revenue 23

  24. Slide 24: Q&A

    Q&A [ ] To ask a question look for ‘ask a question’ tab on your screen, then type your question 24

  25. Slide 25: 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 25

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