Mezzan Holding Company Kscc · KSE:MEZZAN

Mezzan Holding Company Kscc — Mezzan Holding Company — Q1 2017 Earnings Presentation

15 slides from Mezzan Holding Company Kscc's earnings presentation, May 2017

  1. Slide 1: Delivering on defensive

    Delivering on defensive May, 2017 1

  2. Slide 2: Today's Agenda

    Today’s Agenda ๏ Q12017 Highlights ๏ Historical Performance ๏ Financial Review ๏ Q&A 2

  3. Slide 3: Q1'17 Highlights (KD)

    Q1’17 Highlights (KD) Q12017 Revenue 57.5 m +3.4% EBITDA 7.3 m +2.2% Reported Net Profit 5.3 m +2.4% (Attributable to equity holders of parent company) Underlying Net Profit* 5.3 m +2.4% *Excluding the previously anticipated KSA loses attributable to shareholders of KD 242K, underlying net profit attri

  4. Slide 4: Q1'17 Highlights: Peer Comparison

    Q1’17 Highlights Q1 2017 PEER COMPARISON Revenue Gross Profit Net Income 9.6% 8.7% PEERS 6.04% PEERS 3.4% MEZZAN 2.4% MEZZAN MEZZAN PEERS -3.1% *The benchmark is based on averaging the 4 public food and retail companies in the region that have announced earnings results. 4

  5. Slide 5: Mezzan Foods KSA - update

    Mezzan Foods KSA - update Expansion planned in 2017 with Tu T r u n r - n A - r o A u r onudn P d la n Plan new factory r o u n d P l a n Turn-A Streamline Opeerations Streamlin Operations LeveraLge scalesc Lever ever strengstth res, , dralive age agou Gr ngbu eG e, dgr G rive roow u proup ildbuild

  6. Slide 6: Historical Performance

    Historical Performance Revenue Gross Profit Underlying Net Profit +0.2* 57.5 15.2 5.5 55.7 5.2 5.3 14.3 52.9 13.4 47.8 11.9 6.4% 8.5% 3.7 12.7% 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 Revenue continues to improve, driven by Increased by +6.0% vs Q1’16 with overall *Improved by +0.2

  7. Slide 7: Financial Review

    Financial Review 7

  8. Slide 8: Revenue Segmentation and Discussion: Food Business Line

    Q1’17 Revenue Segmentation and Discussion Red: Revenue contribution to total Group revenue in Q1 2017. White: Revenue growth in Q1 2017. Catering Food Business Line ➜ +19.7% ➜ 12.9% +7.7% Manufacturing Distribution KD40.1 m ➜ (69.6% of total +9.1% Services ➜ 6.3% revenue) 50.4% -17.8% Strong perform

  9. Slide 9: Revenue Segmentation and Discussion: Non Food Business Line

    Q1’17 Revenue Segmentation and Discussion Red: Revenue contribution to total Group revenue in Q1 2017. White: Revenue growth in Q1 2017. Non Food Business Line Industrials ➜ -5.2% ➜ +1.0% 2.7% KD17.5 m (30.3% of total FMCG and Pharma revenue) ➜ -5.8% 27.6% Decline in FMCG was driven by the continued

  10. Slide 10: Revenue by country

    Q1’17 Revenue by country Red: Revenue contribution to total Group revenue in Q1 2017. White: Revenue growth in Q1 2017. Kuwait UAE Qatar Jordan KSA Afghanistan Iraq 64.7% 13.6% 8.7% 2.8% 2.8% 1.7% 0.8% ➜ ➜ ➜ ➜ ➜ ➜ ➜ 2.4% 0.6% 4.9% -39.2% 1125.5% -2.3% 104.7% Commentary Kuwait: All businesses have pe

  11. Slide 11: Q1'17 P&L Commentary

    Q1’17 P&L Q1’17 Commentary Revenue 57.5 +3.4% Driven by strong growth in Food and Catering Gross Margin 15.2 +6.0% Slight improvements vs LY GM% 26.4% Increased by 8.9% driven by taxes in Qatar, Staff & SG&A / Other (9.1) +8.9% Marketing costs Underlying Profit before tax 5.6 +0.7% Tax (0.3) +13.4%

  12. Slide 12: Q1'17 Cash Flow (KD m)

    Q1’17 Cash Flow (KD m) Q1’17 Q1’16 Diff. Operating Cash Flow before WC changes 7.5 7.6 (0.1) Working Capital (7.4) (3.1) (4.3) Operating Cash Flow 0.1 4.5 (4.4) CAPEX / Other investing activities (3.0) (2.4) (0.6) Cash Flow before financing (2.9) 2.1 (5.0) Dividends / Financing / other (0.6) (0.3) (

  13. Slide 13: Q1'17 Balance Sheet (KD m)

    Q1’17 Balance Sheet (KD m) Total Assets (KD m) Equity (KD m)* Net Debt (KD m) Net Debt to Equity (%)* 216.8 35.2 30.6% 111.4 32.9 195.5 26.5% 102.6 30.1 29.7 175.0 24.0% 156.8 22.4% 83.4 74.5 +11.4% +14.4% 2.3% 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 *To Paren

  14. Slide 14: Q1'17 Highlights: Tailwinds and Headwinds

    Q1’17 Highlights ➜ ➜ Tailwinds ➜ ➜ Headwinds ➜➜ ➜ ➜ • Strong growth in core sector: +9.1% F&B Manufacturing and • Challenging and rapidly changing macro Distribution (in all key markets) environment and consumer behavior • Regional manufacturing and Distributions started paying off impacting return

  15. Slide 15: Key Contacts

    Key Contacts Mohamed Shawky Group Head of Investor Relations Mezzan Holding T: +965 2484 6433 M : +965 9800 6058 E : mohamed.shawky@mezzan.com ir@mezzan.com 15

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