Middle East Paper Co. · TADAWUL:1202
Middle East Paper — Investor Presentation
24 slides from Middle East Paper's investor presentation
Slide 1: Investor Presentation: Expansion Projects
MEP}CO ‘ial Est Peper Company Selpitecia ne gates Investor Presentation Expansion Projects
Slide 2: Disclaimer
DISCLAIMER MEP9CO This presentation is prepared by MEPCO and contains basic information about Company activity as of the latest published results. The information is presented in summary rather than detailed form. This information, including any forward-looking statements, should not be taken as bas
Slide 3: Outline
OUTLINE --+ (05. | MEPCO asa Group ve Strategy & Growth Pillars = S o Market Drivers A Expansion Project 1 Financials Sas | Waste Management J) Strategy Aspiration
Slide 4: 01 MEPCO as a Group
Slide 5: MEPCO as a group
MEPCO as a group MEPCO Middle East Paper company was established in 2000 for the purpose to manufacture containerboard and industrial paper from recycled fiber pulp The largest paper mill in the Middle East and Africa More than 20 years of International partnership Global presence across SO+ countri
Slide 6: Latest Project: JUTHOR in 2023
MEP)CO Latest Project : JUTHOR in 2023 77 JUTHOR Factory: Installed _@- Technolo Location: Commercial 25% 4¢9 Products: u Capacity : Ee Applied: a & Launch : Voll Np Horizontal 5O,0005-)n) State ofthe art Industrial valley Launched in Estimated gross - Facial tissues expansion in tissue machinery in
Slide 7: MEPCO's Strategy: Growth Pillars as a Group
MEPCO's Strategy Growth Pillars as a Group
Slide 8: MEPCO's Strategy Pillars
ya MEPCO's Strategy Pillars OVERALL To be the leading integrated paper & STRATEGIC packaging player in the Middle East, which OBJECTIVE provides profitable growth for shareholders MEPCO aims to achieve growth by expanding GROWTH into other paper segments such as Tissues, TRAJECTORY , growing our pri
Slide 9: MEPCO growing in the paper value chain
MEPCO growing in the paper value chain GS Containerboard re) Recovered Paper ——. 7 The paper manufacturing process involves several stages, including the prepare of raw materials which is either virgin pulp or recycled paper Backward JIA Pulp Integrationo The Tissue paper manufacturing process invol
Slide 10: Waste Management Strategy Aspiration
Waste Management Strategy Aspiration Ambition: Independent Waste Management developer and service provider MEP9CO a are | Leveraging Nationwide Presence Capitalizing on our established presence across the Kingdom, we aim to secure contracts with various municipalities. The goal is to ensure a consis
Slide 11: Paper & Package and Hygiene Tissues Strategy
MEP9CO Paper & package and Hygiene Tissues Strategy Increase Production Capacity of Container board PMS Building new paper machine with production capacity of 400 K ton Investment cost SAR 1L7 Bn , adopting the latest technology to produced recycled containerboard, producing low GSM products | Incre
Slide 12: Market Drivers
Market Drivers
Slide 13: Waste Market Dynamics
. MEP CO Waste Market Dynamics Current Status Saudi Arabia waste Strategy Diversion Target from landfills 2030 : 34% Current recovery rate of wastepaper in Saudi Arabia is above 50 % 2035:55% N 2040 : 90 % Saudi Arabia é @ Investment Opportunities : generates more than SAR 480 Bn 50 millions tons of
Slide 14: Market Dynamics for Containerboard
Market Dynamics for Containerboard 30% in KSA MEPCO's Market Share in recycled container board. Container board consumption in MENA is around 3.4 million tons and it is forecasted to increases in 2024 by 3.7% , while it is forecasted to increase in 2025 by 3.8% followed constant increase per annum G
Slide 15: Tissue Market Dynamics
Tissue Market Dynamics V7 WeTHOR Globally the Tissue demand is reviving , Tissues attractiveness for a local producer World Tissue Demand Growth , M ton Saudi Arabia Tissue Demand Growth , K ton * Company Data , RSI paper & pulp , Statista Global Tissue consumption c.44 M ton Saudi Arabiais c. 250 m
Slide 16: Expansion Projects
Expansion Projects Financials
Slide 17: Return on Invested Capital
j MEP}CO “ J EPCO Return on Invested Capital Return on Invested Capital CAGR of 14.39% Over 5 years ROIC 2018 =2019 #2020 m2021 m2022 v7
Slide 18: Use of Proceeds and Future Projects
Use of Proceeds and Future Projects Net use of the Offering Proceeds: The net offering proceeds amounting to 619,909,511 Saudi Riyals will be used as follows: Amount Used from Amount Used from Other Sources Offering Proceeds (Million SAR) (Million SAR) Total Cost of Activity (Million SAR) Activity P
Slide 19: Paper Manufacturing (PM5)
M 28% 72% Paper Manufacturing (PM5) Forward Integration Acquisition and Tissue Manufacturing (TM6) • • • o • o • •
Slide 20: Tissue Manufacturing TM6
Tissue Manufacturing TMG Allocated Amount sarm Product Mix 25% 15% 15% 70% Tissue Manufacturing (TM6) Forward Integration Acquisition Fascial Tissues and Paper Manufacturing (PM5) Toilet Tissues Napkins / Kitchen Towels The investment of SAR 154.0 M will Investment cost SAR 373.4M be allocated acros
Slide 21: Forward Integration Acquisition
M&A Allocated Amount SAR anufacturing ufc * MEPCO has exposure to both paper and fiber price volatility which can result in periods of underperformance followed by overperformance and hence MEPCO's Company's strategy to forward integrate to mitigate such cyclicality It is expected that forward integ
Slide 22: Waste Management Strategy
Waste Managemen Strategy
Slide 23: Waste Strategy Aspiration
Waste Strategy Aspiration Ambition: Independent WM developer and service provider A Recyclables materials sourcing B Focused treatment facility C Diversified along value and trading developer chain & geographies MRF*s RDF* CDW* WtE* Invest in GCC Current core Expanded recycling expansion core: activ
Slide 24: Middle East Paper Company Contact
Middle East Paper Company Contact
Middle East Paper Company (MEPCO) — Investor Presentation on 6ix