Mezzan Holding Company Kscc · KSE:MEZZAN

Mezzan Holding Company Kscc — Mezzan Holding Company — Q3 2018 Earnings Presentation

15 slides from Mezzan Holding Company Kscc's earnings presentation, Nov 8, 2018

  1. Slide 1: Q3 2018 Earnings Presentation

    Q3 2018 Earnings Presentation November 8, 2018 1

  2. Slide 2: Disclaimer

    Disclaimer This confidential document is provided for informational purposes only. THE INFORMATION SET OUT IN THIS PRESENTATION AND PROVIDED IN THE DISCUSSION SUBSEQUENT THERETO DOES NOT CONSTITUTE AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES IN ANY JURISDICTION. IT IS SOLELY FOR US

  3. Slide 3: Agenda

    Agenda Headwinds & Tailwinds Q3 2018 Highlights Historical Performance Financial Review By Families For Families X

  4. Slide 4: Mezzan Today: Q3'18 Headwinds

    ➜ ➜ Mezzan Today: Q3’18 Headwinds ➜➜ Unsubsided impact of excise duties on energy drinks & persistence of grey market. Savings on restructuring effective Q4 ➜ Delay in delivering products of recent snack capacities ➜ on the shelves in KSA, UAE and Qatar toward end of the quarter ➜ ➜ Further delay in

  5. Slide 5: Mezzan Today: Q3'18 Tailwinds

    ➜ ➜ Mezzan Today: Q3’18 Tailwinds ➜ Continued strong top-line growth from Kuwait and Catering ➜ Listings completed in key accounts in KSA towards end of Q3 ➜ and expanded distribution capacities into Jeddah & Dammam Water sales continue to grow in Kuwait as we continue to ➜ ➜ ramp-up utilization of

  6. Slide 6: Mezzan Today: Q3'18 Highlights

    Mezzan Today: Q3’18 Highlights KD Millions Q3’18 Q3’17 % Q3’17 % YTD’18 YTD’17 % YTD’17 % (Reported) (Reported) Change (Pro-forma)* Change (Reported) (Reported) Change (Pro-forma)* Change Revenue 52.0 49.8 +4.5% 48.9 +6.3% 161.5 157.6 +2.5% 154.0 +4.9% Gross Profit 10.4 12.7 -17.9% 11.8 -12.1% 35.1 4

  7. Slide 7: Mezzan Today: Historical Performance

    Mezzan Today: Historical Performance. As of Sep 30, 2018 for each year KD Millions Revenue Gross Profit EBITDA Net Profit 21.2 16.2 39.3 40.0 40.6 156.2 157.6 161.5 IFRS 15+9 18.8 150.8 IFRS 15+9 IFRS 15+9 3.6 35.1 13.1 4.2 3.6 IFRS 15+9 16.1 4.2 14.6 IFRS 15+9 10.1 0.2 IFRS 15+9 IFRS 15+9 0.2 0.2 8

  8. Slide 8: YTD'18 Revenue: Contribution by Business Line

    YTD’18 Revenue: Contribution by Business Line Vs. YTD’17 (Pro-Forma) FOOD REVENUE +4.5% NON-FOOD REVENUE +6.4% 73.1% Share of of total Group 26.9% Share of of total Group Revenue Revenue Growth results vs. YTD-2017 have been calculated based on pro-forma YTD-2017 assuming IFRS 15+9 changes were done

  9. Slide 9: YTD'18 Revenue Growth by Business Division

    YTD’18 Revenue Growth by Business Division Vs. YTD’17 (Pro-Forma) FOOD Manufacturing &Distribution Contributed 48.1% -4.3% vs. YTD’17 (Pro-forma) to YTD’18 Revenues Catering Contributed 18.0% to YTD’18 Revenues +34.6% vs. YTD’17 (Pro-forma) Services Contributed 7.0% to YTD’18 Revenues +11% vs. YTD’1

  10. Slide 10: YTD'18 Revenue Growth by Business Division

    YTD’18 Revenue Growth by Business Division Vs. YTD’17 (Pro-Forma) NON-FOOD FMCG & Pharma Contributed 24.4% +7.5% vs. YTD’17 (Pro-forma) to YTD’18 Revenues Industrials Contributed 2.5% to YTD’18 Revenues -3.2% vs. YTD’17 (Pro-forma) Growth results vs. YTD-2017 have been calculated based on pro-forma

  11. Slide 11: Q3'18 Revenue by Contribution and Growth by Country

    Q3’18 Revenue by Contribution and Growth by Country Vs. YTD’17 (Pro-Forma) Kuwait UAE Qatar KSA Jordan Afghanistan Iraq 71.4% 11.0% 9.9% 1.9% 2.3% 2.5% 1.0% +11.4% -23.6% +6.8% -16.6% -9.8% +34.8% +8.5% Continued strong Persistence of impact Sales have grown Delay in delivering The loss in sales has

  12. Slide 12: YTD'18 P&L

    YTD’18 P&L KD Millions Q3’18 Q3’17 % YTD’18 YTD’17 % (Reported) (Reported) Change (Reported) (Reported) Change Revenue 52.0 49.8 +4.5% 161.5 157.6 +2.5% Gross Pofit 10.4 12.7 -17.9% 35.1 40.6 -13.5% GM% 20.0% 25.5% 21.7% 25.7% SG&A (8.5) (9.2) -7.7% (24.7) (28.1) +11.8% Others (0.8) (0.7) +15.0% (2.

  13. Slide 13: YTD'18 Cash Flow

    YTD’18 Cash Flow KD Millions Q3’18 Q3’17 Diff. YTD’18 YTD’17 Diff. (Reported) (Reported) (Reported) (Reported) Operating Cash Flow 3.7 5.3 -1.6 15.6 17.7 -2.1 before WC Changes Working Capital 0.3 4.2 -3.9 -6.0 -4.1 1.9 Operating Cash Flow 4.0 9.5 -5.5 9.6 13.6 -4.0 CAPEX/Other Investing -1.6 -4.0 2.4

  14. Slide 14: Balance Sheet as of Sep 30th

    Balance Sheet as of Sep 30th Total Assets Equity Net Debt Net Debt to Equity (%) KD Millions KD Millions KD Millions KD Millions 45.8 42.2% 220.5 223.8 107.3 108.6 37.4% 36.1% 102.4 38.7 206.3 94.2 38.3 34.1% 181.6 32.1 +7.2% +4.9% +12.5% 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 2

  15. Slide 15: Key Contacts

    Key Contacts Mohammad Khajah Head of Corporate Development and Investor Relations Mezzan Holding T: +965 2228 6336 M : +965 9977 0147 E : mohammed.Khajah@mezzan.com X

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