Aamal Company Q.s.c. · QSE:AHCS

Aamal Company Q.s.c — Aamal Company Q.P.S.C. — FY2019 Earnings Presentation

20 slides from Aamal Company Q.s.c's earnings presentation, Feb 19, 2020

  1. Slide 1: Resilient performance in a challenging year

    Resilient performance in a challenging year Presentation of financial results for the year ended 31 December 2019 19 FEBRUARY 2020

  2. Slide 2: Contents

     FY 2019 Highlights  Financial Summary  Segmental Review Contents  Corporate Governance Update  Summary and Outlook  Appendix  Group Results – Revenue and Net Profit by Segment  Aamal’s Investment Case "Strength Through Diversity" 1

  3. Slide 3: 2019 Highlights

    2019 HIGHLIGHTS  A year of strategic development and evolution – Resilient response to weaker contracts environment, strong competition and customer ‘price sensitivity’  Financial Performance • Revenue up 0.6% to QAR 1,294m • Net profit1 down 28.0% to QAR 322m • Reported EPS2 down 27.6% at QAR 0.0

  4. Slide 4: Contents

     FY 2019 Highlights  Financial Summary  Segmental Review Contents  Corporate Governance Update  Summary and Outlook  Appendix  Group Results – Revenue and Net Profit by Segment  Aamal’s Investment Case "Strength Through Diversity" 3

  5. Slide 5: Financial Summary

    FINANCIAL SUMMARY Profitability impacted by: QARm 2019 2018 % change  Slowdown in major infrastructure projects affecting Revenue 1,294.1 1,286.6 0.6% Industrial Manufacturing Net profit before share of net profit of associates and joint ventures accounted for using the equity method 259.9 347.6 (2

  6. Slide 6: Contents

     FY 2019 Highlights  Financial Summary  Segmental Review Contents  Corporate Governance Update  Summary and Outlook  Appendix  Group Results – Revenue and Net Profit by Segment  Aamal’s Investment Case "Strength Through Diversity" 5

  7. Slide 7: Industrial Manufacturing

    INDUSTRIAL MANUFACTURING QARm 2019 2018 % change Revenue 169.1 230.5 (26.6%) Net profit - fully consolidated activities (1.5) 6.9 (121.5%) Net underlying profit margin % (0.9%) 3.0% (3.9 ppts) Share of net profit of associates and joint ventures accounted for using the equity method 54.1 94.6 (42.8%

  8. Slide 8: Trading and Distribution

    TRADING AND DISTRIBUTION QARm 2019 2018 % change Revenue 799.6 696.4 14.8% Net profit 98.9 125.3 (21.1%) Net profit margin % 12.4% 18.0% (5.6 ppts) Note: there may be slight differences due to rounding.  Positive sales performance driven by Ebn Sina Medical (up 25% YoY)  Profitability impacted by

  9. Slide 9: Property

    PROPERTY QARm 2019 2018 % change Revenue 290.1 295.4 (1.8%) Net profit - fully consolidated activities 218.4 235.7 (7.4%) Net underlying profit margin % 75.3% 79.8% (4.5 ppts) Share of net profit of associates and joint ventures accounted for using the equity method 5.6 5.4 3.1% Total net profit 223

  10. Slide 10: Managed Services

    MANAGED SERVICES QARm 2019 2018 % change Revenue 63.2 96.7 (34.7%) Net profit - fully consolidated activities 3.1 8.2 (61.5%) Net underlying profit margin % 5.0% 8.4% (3.5 ppts) Share of net profit of associates and joint ventures accounted for using the equity method 2.6 - 100% Total net profit 5.7

  11. Slide 11: Contents

     FY 2019 Highlights  Financial Summary  Segmental Review Contents  Corporate Governance Update  Summary and Outlook  Appendix  Group Results – Revenue and Net Profit by Segment  Aamal’s Investment Case "Strength Through Diversity" 10

  12. Slide 12: Corporate Governance Update

    Corporate Governance Update 2019 marked a year of significant development in terms of further strengthening corporate governance …  Implemented design and operating effectiveness of controls in compliance with QFMA code (5) 2016  Achieved a clean Internal Controls over Financial Reporting (ICoFR)

  13. Slide 13: Contents

     FY 2019 Highlights  Financial Summary  Segmental Review Contents  Corporate Governance Update  Summary and Outlook  Appendix  Group Results – Revenue and Net Profit by Segment  Aamal’s Investment Case "Strength Through Diversity" 12

  14. Slide 14: Market Update

    MARKET UPDATE Macroeconomic backdrop provides many opportunities across Aamal’s segments… Industrial manufacturing: Supportive Qatari government  Infrastructure spending on Qatar National Vision 2030 projects  More than 150 projects (focused on roads, hospitals and schools) expected in 2022 (worth

  15. Slide 15: Summary and Outlook

    SUMMARY AND OUTLOOK  Financial performance in 2019 reflects challenging market dynamics  Positive developments emerging across all business segments  Improving conditions in Industrial Manufacturing e.g. award of Lusail Boulevard and Doha Port projects  Corporate contracts signed in Q4 drive Aam

  16. Slide 16: Any Further Questions?

    ANY FURTHER QUESTIONS? AAMAL COMPANY IMRAN CHUGHTAI Chief Financial Officer E: imran.chughtai@aamal.com.qa ZAID SHELLEH Risk and Compliance Manager E: zaid.shelleh@aamal.com,qa T: +974 4422 3888 www.aamal.com.qa FINANCIAL PR/IR ADVISORS LUCY EYLES Investor Relations E: Lucy.Eyles@citigatedewerogerso

  17. Slide 17: Contents

     FY 2019 Highlights  Financial Summary  Segmental Review Contents  Corporate Governance Update  Summary and Outlook  Appendix  Group Results – Revenue and Net Profit by Segment  Aamal’s Investment Case "Strength Through Diversity" 16

  18. Slide 18: Group Results (by Segment)

    GROUP RESULTS (BY SEGMENT) REVENUE QARm 2019 2018 Change % Industrial Manufacturing 169.1 230.5 (26.6)% Trading and Distribution 799.6 696.4 14.8% Property 290.1 295.4 (1.8)% Managed Services 63.2 96.7 (34.7)% less: inter-divisional revenue (27.9) (32.4) (14.0)% Total 1,294.1 1,286.6 0.6% NET PROFIT

  19. Slide 19: Delivering on our Investment Case

    DELIVERING ON OUR INVESTMENT CASE Strength through diversity Operating in an attractive, growing market  Diversified for balanced exposure across the  Qatar is one of the world’s fastest growing and Qatari economy most successful economies  26 active business units  Strong market positions in ke

  20. Slide 20: Shukran

    Shukran "Strength Through Diversity" 19

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