Mm Group For Industry & International Trade · EGX:MTIE
Mm Group For Industry & International Trade — Q4 2019 Earnings Presentation
40 slides from Mm Group For Industry & International Trade's earnings presentation, 2020
Slide 1: Investor Presentation Fourth Quarter 2019
Investor Presentation Fourth Quarter 2019
Slide 2: Disclaimer
Disclaimer This Presentation is intended for information purposes only and does not constitute or form part of an offer for sale or subscription or an invitation or solicitation of an offer to subscribe for or purchase securities of any kind and neither this document nor anything contained herein sh
Slide 3: MTI at a Glance
MTI at a Glance A Leading local Distribution Giant Consolidated Financial Highlights Experience in distribution EGP mn FY17 FY18 FY19 Y-o-Y 25+ years Revenue 6,124 7,626 9,830 28.9% 90% Geographic Footprint Gross Profit 428 523 930 77.8% 95% Population reach EBITDA 299 353 644 82.1% 40k+ Accessible
Slide 4: Line of Business
Line of Business Product Segment Brand Portfolio Consumer Electronics The consumer electronics business currently includes distribution of mobile phones, televisions, air conditioners and home appliances. Telecom The telecom business includes the operation of Vodafone branded retail franchises and d
Slide 5: History of Growth
History of Growth MTI becomes a non-exclusive Samsung approached MTI to MTI started distribution of distributor to SIEMENS, becomes become a distributor in the Huawei mobile phones Starts trading Siemens cell phones one of the major NOKIA dealers mobile phone business Consumer 2017 2018 1996 2002 20
Slide 6: Distribution Network
Distribution Network Consumer Electronics 11,968 Points of Sale 5 Samsung Retail Stores 4 Branded Stores 8 Service Centers 2 Branded Bosch Stores Telecom 27,706 Points of Sale 86 Stores (owned & operated) Automotive Automotive Automotive 16 Points of Sale 4 Of which owned & operated Tractor and Pipe
Slide 7: FY2019 Financial Results Review
FY2019 Financial Results Review Solid Financial growth Consolidated Financial Results Summary Revenue | EGP mn Gross Profit & Margin | EGP mn, % EBITDA & Margin | EGP mn, % Net Profit & Margin | EGP mn, % YoY 28.9% 100 0 9.5% 800 20% 110 00 6.9% 6.6% 0% 900 700 4.6% 930 0% 9,830 800 900 0 600 5% 600
Slide 8: 4th Quarter 2019 Financial Results Review
4th Quarter 2019 Financial Results Review Solid Financial growth Consolidated Financial Results Summary Revenue | EGP mn Gross Profit & Margin | EGP mn, % EBITDA & Margin | EGP mn, % Net Profit & Margin | EGP mn, % 300 20% 250 20% 320 0 9.1% 11.9% 7.7% 6.8% 4.2% 5.8% 0% 250 200 270 0 250 180 4.3% 4.
Slide 9: Revenue Breakdown by Line of Business
FY2019 Financial Results Review Revenue Breakdown by Line of Business Consolidated Revenue Breakdown by LoB | % Standalone Revenue Breakdown by LoB | % Auto Telecom Telecom Auto 14.3% Tractors & Pipers 18.2% 14.2% 18.2% Tractors & Pipers 18.9% 10.2% 21.1% 11.4% FY18 FY18 EGP 7,625 mn EGP 6,820 mn FY
Slide 10: Gross Profit by Line of Business
FY2019 Financial Results Review Gross Profit by Line of Business Consolidated Gross Profit Breakdown by LoB | % Standalone Gross Profit Breakdown by LoB | % Auto Auto 28.8% 33.7% Telecom Telecom 22.3% 23.7% Tractors & Pipers 10.7% 12.7% 13.3% Tractors & Pipers FY18 12.5% FY18 EGP 523 mn EGP 492 mn F
Slide 11: Consumer Electronics
21.7% CONSUMER 71.1% Of FY19 ELECTRONICS Revenue Distribution of & smartphones in the Egyptian market, through Egypt’s largest distribution network, spanning +40,000 points of sale. MTI also offers after-sales services for smartphones. Distribution of Consumer Appliances through our network of +12,0
Slide 12: Mobiles Overview – Global Smart Phone Market
FY2019 Financial Results Review Mobiles Overview – Global Smart Phone Market Global Smart phone Users Per Region | # of Users in Mns FY 2019 Global Smart phone Penetration Rate| % 4,00 0.0 3,181 70% 66% 3,50 0.0 2,995 60% 2,741 60% 54% 50% 3,00 0.0 2,491 576 537 50% 46% 45% 44% 2,50 0.0 498 Latin an
Slide 13: Mobiles Overview – Egypt Smart Phone Market
FY2019 Financial Results Review Mobiles Overview – Egypt Smart Phone Market Mobile Volume Sales & Average Selling Price | # of Units in Mns, USD 200 200 5.0 185 185 195 200 .0 163 170 175 149 4.5 136 136 141 4.0 100 .0 3.8 3.5 3.6 3.3 3.3 3.0 - 3.0 3.0 3.0 3.2 3.2 2.5 3.0 2.0 2.6 (1 00.0) 1.5 2.2 1.
Slide 14: Consumer Electronics
FY2019 Financial Results Review Consumer Electronics Consolidated Overview Consumer Electronics line of business which Revenue | EGP mn represented 71% of the consolidated revenues in Gross Profit & Margin | EGP mn, % FY2019, increased by 30.4% Y-o-Y to reach EGP 6.9 billion and the standalone rev
Slide 15: Telecom
85.0% TELECOM 14.2% Of FY19 Revenue Partnership with allowing MTI to act as a distributor for the prepaid scratch cards and electronic top up, as well as operating franchised Express shops +27,000 50% 86 Vodafone Distribution Points of Sale Operated Vodafone Stores Market share 192 Operated Franchis
Slide 16: Telecommunication Overview
FY2019 Financial Results Review Telecommunication Telecommunication Overview Revenue | EGP mn Gross Profit & Margin | EGP mn, % 1,4 1,4 98 95 92 1,4 89 1,4 86 1,4 1,4 83 80 77 74 1,4 71 1,4 68 65 62 59 56 1,4 53 1,4 50 1,4 47 44 41 38 35 1,4 1,4 32 29 26 1,4 23 20 17 1,4 11 1,4 14 08 1,4 1,3 05 02 9
Slide 17: Automotive
80.0% AUTOMOTIVE 14.3% Of FY19 Revenue Largest importer and distributor of luxury cars & motorcycles in Egypt, exclusive agent for , , , & 16 #1 4 Importer and Distributor of Points of Sale Owned & Operated POS Luxury cars in Egypt
Slide 18: Automotive Overview
FY2019 Financial Results Review Automotive Automotive Overview Revenue | EGP mn Gross Profit & Margin | EGP mn, % 300 19.8% 20.0% 20. 0% 19.0% 1,6 00 18. 0% 1,4 00 250 15.6% 265 16. 0% 1,2 00 1,402 15.0% 14. 0% 200 1,0 00 12. 0% 150 10. 0% 800 777 8.0 % 600 100 116 6.0 % 400 470 94 4.0 % 160 369 50
Slide 19: Tractors & Pipes
TRACTORS 98.0% 0.4% Of FY19 & PIPES Revenue Assembly and distribution of agricultural tractors, namely & ; MTI is also one of the suppliers of seamless steel pipes in Egypt 1 10 1 Tractors Assembly Line Points of Sale Owned & Operated POS
Slide 20: Tractors & Pipes Overview
FY2019 Financial Results Review Tractors & Pipes Tractors & Pipes Overview Revenue | EGP mn Gross Profit & Margin | EGP mn, % 50 17 35. 0% 45 32.0% 33.1% 40 46 15 30. 0% 35 13 15 30 37 11 25. 0% 25 9 21.5% 20. 0% 20 7 16.0% 15.0% 15. 0% 15 19 5 8 10 3 6 10. 0% 5 7 7 1 1 1 5.0 % 0 -1 0.0 % 4Q18 3Q19
Slide 21: Kanawat is the fastest growing distributor in Egypt
Kanawat is considered the fastest growing distributor in Egypt with a comprehensive market coverage and is one of the five authorized dealers for Samsung mobile and the second distributor of Nokia mobile phones in the Egyptian market and the exclusive distributor for the Chinese premium mobile acces
Slide 22: Kanawat Financial Summary
FY2019 Financial Results Review Kanawat Financial Summary Revenue | EGP mns Gross Profit & Margin | EGP mns, % 3,00 0.0 180 .0 3.8% 5.1% 8.3% 4.3% 6.3% 0.0 % 160 .0 2,50 0.0 2,685 140 .0 -20.0% 2,00 0.0 2,169 120 .0 135 1,50 0.0 100 .0 115 -40.0% 80.0 -60.0% 1,00 0.0 60.0 40.0 500 .0 805 -80.0% 439
Slide 23: Non-banking financial institution investments
Investments supporting and complementing MTI’s core distribution business, through which invests in Non-banking Financial Institutions such as , & and . +340 49.9% 10.7% Paid in Capital in EGP mn Ownership in Ebtikar Direct Ownership in Masary +120k +2Bn +44M Transactions Value per Day in Points of
Slide 24: Non Banking Financial Services
Non Banking Financial Services MTI B Investments & BPE Partners 10.7% 49.9% 50.1% Ebtikar for Financial Investment Mortgage Finance , Leasing Consumer Electronic Payment Microfinance & Auto finance finance 69.8% 60% 45.4% 100% • Masary is a leading • Bee is a pioneering • Ebtikar,TCV and Acquire col
Slide 25: Electronics Payments Overview
FY2019 Financial Results Review Non Banking Financial Services Electronics Payments Overview Transactions Value | EGP Bn Avg. Daily Transactions Value | EGP mn Number of POS Terminals | 000’ 20 YoY 23% 60 YoY 19% 18 16 140 116 119 16 50 44 13 120 14 40 37 100 12 10 30 80 56 8 9 25 62 8 60 6 20 23 40
Slide 26: Tamweel Overview
FY2019 Financial Results Review Non Banking Financial Services Tamweel Overview Total Portfolio Size | EGP mn New Originations| EGP mn Interest Income & Margin | EGP mn, % 500 200 % YoY 31% YoY 126% 450 200 0 140 0 30.5% 29.2% 2,083 0% 400 120 0 350 -200% 150 0 1,591 100 0 1,114 300 356 100 0 800 25
Slide 27: Vitas Overview
FY2019 Financial Results Review Non Banking Financial Services Vitas Overview +39M +1500 +25k +38M Disbursed Loans in EGP Number of Active Loans Average Ticket Size in EGP Outstanding Portfolio in EGP Sources: Company Data 27
Slide 28: MTI Share Performance
MTI Share Performance MTI vs EGX30 Rebased 13 12 11 10 EGP per Share 9 8 7 6 5 MTI EGX30 Rebased Sources: Mubasher Pro, 28
Slide 29: Investment Highlights
Investment Highlights Strong distribution platform • Strong distribution and retail network with nationwide geographical coverage and access to over ~40,000 points of sale, constituting a high entry Tracking & ~40k barrier to the market monitoring points of systems sale Diverse portfolio of products
Slide 30: Management Biographies
Management Biographies Mr. Khaled Mahmoud (Executive Chairman and CEO) Mr. Khaled Mahmoud has over 30 years of experience in the distribution and retail businesses across various business segments. He is also an experienced investor where he invests opportunistically in private equity and investment
Slide 31: Management Biographies Cont'd
Management Biographies Cont’d Mr. Salah Mahmoud (Executive Director– Consumer Electronics) Mr. Salah has over 8 years of experience at MTI where he has held various positions within the sales and marketing departments including; Mobile Network Operators Sales Manager, Organized Retail Key Accounts M
Slide 32: Board of Directors Biographies
Board of Directors Biographies Mr. Khaled Mahmoud (Executive Chairman) Mr. Khaled Mahmoud has over 30 years of experience in the distribution and retail businesses across various business segments. He is also an experienced investor where he invests opportunistically in private equity and investment
Slide 33: Board of Directors Biographies Cont'd
Board of Directors Biographies Cont’d Dr. Ali Hassan Dayekh (Non-Executive Director) Dr. Ali Dayekh has over 30 years of experience in the construction and construction materials sector. He is the President and CEO at Saudi Group for Construction. He is a Member of the Advisory Board of Gulf Capital
Slide 34: Board of Directors Biographies Cont'd
Board of Directors Biographies Cont’d Ms. Yasmin Aly (Independent Director) Ms. Yasmin has more than 18 years of experience in the financial services industry, having held positions in regional investment banks including EFG-Hermes and Beltone Financial. During her tenure at Beltone, where she was D
Slide 35: Financials
FINANCIALS
Slide 36: MTI Standalone Income Statement
MTI Standalone Income Statement Income Statement MTI Standalone | EGP FY18 FY19 YoY 4Q18 4Q19 YoY Sales 6,820,352,322 7,684,466,318 12.7% 1,320,423,926 1,752,153,901 32.7% Cost of Sales (6,328,232,986) (6,892,187,206) 8.9% (1,206,354,413) (1,532,689,670) 27.1% Gross Profit 492,119,336 792,279,112 61
Slide 37: MTI Consolidated Income Statement
MTI Consolidated Income Statement Income Statement MTI Consolidated | EGP FY18 FY19 YoY 4Q18 4Q19 YoY Sales 7,625,721,789 9,830,061,523 28.9% 2,125,793,393 2,096,108,664 -1.4% Cost of Sales (7,102,600,300) (8,899,739,649) 25.3% (1,980,721,727) (1,845,793,238) -6.8% Gross Profit 523,121,489 930,321,8
Slide 38: MTI Standalone Balance Statement
MTI Standalone Balance Statement Balance Sheet MTI Standalone | EGP FY2018 FY2019 Inventory 519,959,879 757,032,255 Receivables & Notes Receivable 326,764,400 430,742,988 Due from Related Parties 9,651,016 6,633,822 Advances to Suppliers 250,097,384 177,719,095 Debtors & Other Debit Balances 81,113,
Slide 39: MTI Consolidated Balance Sheet
MTI Consolidated Balance Sheet Balance Sheet MTI Consolidated | EGP FY2018 FY2019 Inventory 798,722,808 1,101,305,669 Receivables & Notes Receivable 402,024,044 507,408,742 Due from Related Parties 9,392,660 4,279,957 Advances to Suppliers 397,056,796 314,570,811 Debtors & Other Debit Balances 101,6
Slide 40: Thank you
Thank you Investor Relations Contact Information : Ashraf El Ghannam, Head of Investor Relations and Business Development Sally Kheir, Investor Relations Officer Mob. : +2 0100 555 3070 Tel. : +2 (02) 24024332 email: ir@mti-mmgroup.com Web site : www.mti-mmgroup.com
MM Group for Industry and International Trade (MTI) — Q4 2019 Earnings Presentation on 6ix