Mezzan Holding Company Kscc · KSE:MEZZAN

Mezzan Holding Company Kscc — Mezzan Holding Company — FY2016 Earnings Presentation

20 slides from Mezzan Holding Company Kscc's earnings presentation, Feb 12, 2017

  1. Slide 1: Call starting shortly

    Call starting shortly Mezzan Holding is a manufacturer and distributor of food, beverage, FMCG, and pharmaceutical products Catering 130,000 7 Countries 358+ Brands 25,000+ sqm in SKUs 100,000+ Manufacturing Meals/day Facilities 1

  2. Slide 2: Delivering on defensive: FY2016 Earnings Presentation

    Delivering on defensive FY2016 Earnings Presentation February 12, 2017 2

  3. Slide 3: Today's Agenda

    Today’s Agenda ๏ FY2016 Highlights ๏ FY2016 Financial Review ๏ 2017 Outlook Discussion ๏ Q&A 3

  4. Slide 4: FY2016 Highlights (KD)

    FY2016 Highlights (KD) Q4 2016 Revenue 51.2 m +12.9% 207.4 m +5.8% Reported Net Profit 4.0 m +23.1% 17.2 m -11.6% (Attributable to equity holders of parent company) Underlying Net Profit* 4.0 m +23.1% 17.2 m 0.0% *Excluding one-off gain from insurance claim in 2015 (of KWD2.2MM). **When excluding the

  5. Slide 5: FY2016 Highlights: Peer Comparison

    FY2016 Highlights Q4’16 PEER COMPARISON FY2016 PEER COMPARISON Revenue Net Profit Revenue Net Profit + 23.1% + 12.9% +5.8% MEZZAN MEZZAN MEZZAN +1.6% -4.7% MEZZAN PEERS PEERS -11.6% -62.6% -30.8% Q4 benchmark is based on averaging the results of large 6 FY2016 benchmark is based on averaging the resul

  6. Slide 6: FY2016 Highlights

    FY2016 Highlights Investments Business Performance Entered the Saudi market Strong performance in Record revenues of through a strategic core consumer staples KD 207.4 million and acquisition of 70% of Al Safi driven by Mezzan brands record underlying Foods Company (now in Kuwait and regionally, profi

  7. Slide 7: 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 Streamlin Turn-A Streamline Opeerations Operations LeveraLge scalesc ever strengstth res, , dralive agou Gr ngbu eG proup ildbuild ths, e, dgr rive ow u gth p row

  8. Slide 8: Historical Performance

    Historical Performance Revenue Gross Profit Underlying Net Profit 207.4 53.8 -1.25* 196.1 50.5 182.5 17.2 17.2 45.9 14.8 142.4 31.2 10.4 13.3% 19.9% 18.2% 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 *Impact of our strategic acquisition of Alsafi Foods (Now Mezzan Foods in KSA) executed

  9. Slide 9: FY2016 Highlights: Tailwinds and Headwinds

    FY2016 Highlights ➜ ➜ Tailwinds ➜ ➜ Headwinds ➜➜ ➜ ➜ • Strong Q4 with 12.9% increase in revenue, and • Challenging and rapidly changing 23.1% in net profit supported by growth in core macro-environment business, led by in-house brands and new factories • Change in consumer behavior, coming on line a

  10. Slide 10: FY2016 Dividend Recommendation

    FY2016 Dividend Recommendation The Board has recommended CASH DIVIDEND PAYOUT the distribution of 28 fils per RATIO: 50.7% KD8.7 m payout share for the year 10 X

  11. Slide 11: Financial Review

    Financial Review 11

  12. Slide 12: Revenue Segmentation and Discussion: Food Business Line

    FY2016 Revenue Segmentation and Discussion Red: Revenue contribution to total Group revenue in YTD 2016. White: Revenue growth in YTD 2016. Catering Food Business Line ➜ -1.3% ➜ 12.9% +7.9% Manufacturing Distribution ➜ KD155.3 m (74.9% of total +8.4% Services ➜ 9.4% revenue) 52.6% +20.9% Strong perf

  13. Slide 13: Revenue Segmentation and Discussion: Non Food Business Line

    FY2016 Revenue Segmentation and Discussion Red: Revenue contribution to total Group revenue in FY2016. White: Revenue growth in FY2016. Non Food Business Line FMCG and Pharma ➜ -0.3% ➜ +1.3% 22.3% KD52.0 m (25.1% of total revenue) Industrials ➜ -11.8% 2.7% FMCG business holding well despite softenin

  14. Slide 14: FY2016 Revenue by country

    FY2016 Revenue by country Red: Revenue contribution to total Group revenue in 2016. White: Revenue growth in 2016. Kuwait UAE Qatar Jordan Afghanistan Iraq KSA 64.9% 16.8% 9.5% 5.0% 2.5% 0.7% 0.7% ➜ ➜ ➜ ➜ ➜ ➜ ➜ 4.3% - 0.9% 9.8% 42.2% 10.0% -27.2% 1527.5% Commentary Kuwait: Strong growth in Food - bu

  15. Slide 15: FY2016 P&L

    FY2016 P&L Q4’16 FY2016 Commentary Revenue 51.2 +12.9% 207.4 +5.8% Driven by strong growth in Food busines (incl. Danone), Services and FMCG Impact of new catering business (to ramp up to Gross Margin 13.7 +21.9% 53.8 +6.4% profitability) GM% 26.8% 25.9% +0.2 Increased by 8.4%. primarily by marketin

  16. Slide 16: FY2016 Cash Flow (KD m)

    FY2016 Cash Flow (KD m) 2016 2015 Diff. Operating Cash Flow before WC changes 26.1 24.2 1.9 Progress on base; Working Capital (8.6) (12) 3.4 investment in new business Operating Cash Flow 17.6 12.1 5.5 CAPEX at 3.8 % of CAPEX / Other investing activities (7.6) (2.1) (5.5) Revenues Cash Flow before f

  17. Slide 17: FY2016 Balance Sheet (KD m)

    FY2016 Balance Sheet (KD m) Total Assets (KD m) Equity (KD m)* Net Debt (KD m) Net Debt to Equity (%)* 211.7 106.4 39.2 55.3% 97.5 180.3 31.8 166.5 86.5 30.3 31.5 154.7 70.7 35.0% 32.3% 29.9% +11.0% +14.6% -6.7% 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 *To Pare

  18. Slide 18: 2017 Commentary and Outlook

    2017 Commentary and Outlook 18

  19. Slide 19: Q&A

    Q&A 19

  20. Slide 20: 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 20

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