Mm Group For Industry & International Trade · EGX:MTIE
Mm Group For Industry & International Trade — Q1 2019 Earnings Presentation
37 slides from Mm Group For Industry & International Trade's earnings presentation, 2019
Slide 1: Investor Presentation First Quarter 2019
Investor Presentation First 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 1Q2019 Consolidated Financial Highlights Experience in distribution EGP 2.9 billion Revenue +77.2% 25+ years EGP 267 million Gross Profit +103.1% 90% Geographic Footprint Gross Profit Margin 9.24% EGP 192 million EBITDA +91.6% 95% Population reach E
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 84 Stores (owned & operated) Automotive Automotive Automotive 16 Points of Sale 4 Of which owned & operated Tractor and Pipe
Slide 7: 1st Quarter 2019 Financial Results Review
1st 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, % YoY 77.2% 9.2% 8.1% 300 250 20% 6.8% 320 0 QoQ 36.3% 6.2% 4.2% 6.6% 250 0% 267 200 18
Slide 8: Full Year 2018 Financial Results Review
Full Year 2018 Financial Results Review Financial Overview Full Year 2018 Consolidated Financial Results Summary Revenue | EGP mn Gross Profit & Margin | EGP mn, % EBITDA & Margin | EGP mn, % Adjusted Net Profit & Margin | EGP mn, % 1 800 0 YoY 24.5% 600 7.0% 6.8% 500 20% 0% 450 700 0 7,626 500 4.9%
Slide 9: Revenue Breakdown by Line of Business
1st Quarter 2019 Financial Results Review Revenue Breakdown by Line of Business Consolidated Revenue Breakdown by LoB | % Standalone Revenue Breakdown by LoB | % Automotive Automotive 14.5% 19.5% Telecom 11.4% Tractors & Pipers Tractors & Pipers Telecom 11.9% 11.9% 20.5% 15.3% 20.5% 1Q19 1Q19 EGP 2,
Slide 10: Gross Profit by Line of Business
1st Quarter 2019 Financial Results Review Gross Profit by Line of Business Consolidated Gross Profit Breakdown by LoB | % Standalone Gross Profit Breakdown by LoB | % Automotive Automotive 34.2% 28.1% 6.7% 10.7% 10.7% Telecom Telecom 17.6% 17.6% 8.2% 1Q19 1Q19 Tractors & Pipers Tractors & Pipers EGP
Slide 11: FY18 Consolidated Financial Overview
FY18 Financial Results Review Consolidated Financial Overview Full Year 2018 Revenue Breakdown by LoB | % Full Year 2018 Gross Profit Breakdown by LoB | % Telecom 12.6% Consumer Electronics Telecom Consumer Electronics 18.9% FY17 12.6% FY17 73.8% EGP 6,123 mn 20.6% EGP 428 mn 22.3% 70.3% 71.9% FY18
Slide 12: Consumer Electronics
21.7% CONSUMER 73.6% Of 1Q19 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 13: Mobiles Overview – Smart Phone Market
1st Quarter 2019 Financial Results Review Mobiles Overview – Smart Phone Market Mobile Volume Sales & Average Selling Price | # of Units in Mns, USD 5.0 200 .0 175 185 185 4.5 163 170 136 136 141 149 4.0 100 .0 3.5 3.0 3.2 3.3 3.3 - 2.5 3.0 3.0 3.0 3.0 2.0 2.6 (1 00.0) 2.2 1.5 1.0 (2 00.0) 0.5 - (3
Slide 14: Consumer Electronics Q1 2019 Overview
1st Quarter 2019 Financial Results Review Consumer Electronics Consolidated Overview Revenue | EGP mn Gross Profit & Margin | EGP mn, % Consumer Electronics line of business which YoY 95.4% represented 73.7% of the consolidated revenues in QoQ 33.3% 1Q19, increased 95.4% Y-o-Y and 33.2% Q-o-Q to rea
Slide 15: Consumer Electronics Full Year 2018
Full Year 2018 Results Financial Review Consumer Electronics Consolidated Overview Revenue | EGP mn Gross Profit & Margin | EGP mn, % 5,7 00 YoY 18.6% 260 5,2 00 5,362 6.8% 6.0% 0.0 % 4,7 00 210 -50.0% 4,521 4,2 00 160 3,7 00 -100.0% 3,2 00 110 -150.0% 2,7 00 60 2,2 00 -200.0% 1,7 00 10 -250.0% 1,2
Slide 16: Telecom
85.0% TELECOM 11.4% Of 1Q19 Revenue Partnership with allowing MTI to act as a distributor for almost half of the prepaid scratch cards in Egypt, as well as operating franchised Express shops +27,000 50% 84 Vodafone Scratch Cards Points of Sale Operated Vodafone Stores Market share 188 Operated Franc
Slide 17: Telecommunication Q1 2019 Overview
1st Quarter 2019 Financial Results Review Telecommunication Telecommunication Overview Revenue | EGP mn Gross Profit & Margin | EGP mn, % YoY -3.1% 350 QoQ -5.1% 60 6.0 % 340 345 50 5.6% 5.5 % 330 5.2% 334 40 5.0 % 320 329 30 4.5 % 310 20 4.2% 4.0 % 300 10 18 18 3.5 % 290 13 280 0 3.0 % 1Q18 4Q18 1Q
Slide 18: Telecommunication Full Year 2018
Full Year 2018 Results Financial Review Telecommunication Telecommunication Overview Revenue | EGP mn Gross Profit & Margin | EGP mn, % 150 0 YoY 14.4% 80 5.0 % 4.6% 4.5 % 4.3% 70 145 0 4.0 % 66 60 140 0 1,440 3.5 % 50 54 3.0 % 135 0 40 2.5 % 130 0 2.0 % 30 1.5 % 125 0 20 1,259 1.0 % 120 0 10 0.5 %
Slide 19: Automotive
80.0% AUTOMOTIVE 14.5% Of 1Q19 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 20: Automotive Q1 2019 Overview
1st Quarter 2019 Financial Results Review Automotive Automotive Overview Revenue | EGP mn Gross Profit & Margin | EGP mn, % YoY 115.3% 450 QoQ 162.6% 100 20. 0% 400 90 17.9% 18. 0% 421 15.7% 80 16. 0% 350 70 14. 0% 300 11.6% 60 12. 0% 250 50 75 10. 0% 200 40 8.0 % 150 195 30 25 6.0 % 100 160 20 4.0
Slide 21: Automotive Full Year 2018
Full Year 2018 Financial Results Review Automotive Automotive Overview Revenue | EGP mn Gross Profit & Margin | EGP mn, % 120 900 YoY 160.7% 20. 0% 800 17.1% 100 14.9% 15. 0% 700 777 10. 0% 600 80 116 5.0 % 500 60 0.0 % 400 -5.0% 300 40 50 200 298 -10.0% 20 -15.0% 100 0 0 -20.0% 2017 2018 2017 2018
Slide 22: Tractors & Pipes
TRACTORS 98.0% 0.4% Of 1Q19 & PIPES Revenue Assembly and distribution of agricultural tractors, namely & ; MTI is also one of the largest suppliers of seamless steel pipes in Egypt 1 10 1 Tractors Assembly Line Points of Sale Owned & Operated POS
Slide 23: Tractors & Pipes Overview
1st Quarter 2019 Financial Results Review Tractors & Pipes Overview Tractors & Pipes Overview | 1Q19 Revenue | EGP mn Gross Profit & Margin | EGP mn, % 7 50. 0% 20 18 29.5% 32.3% 28.8% 6 16 19 100 % 0.0 % 5 6 14 -400% -50.0% 12 4 10 12 13 8 -900% 3 4 4 -100.0% 6 2 -1400% -150.0% 4 1 2 0 -1900% 0 -20
Slide 24: Investment in Kanawat
INVESTMENT IN Kanawat 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 Chines
Slide 25: Investment in Ebtikar
INVESTMENT IN Ebtikar Investments supporting and complementing MTI’s core distribution business, through which invests in Non-banking Financial Institutions such as , & and . +240 52.9% 10.6% Paid in Capital in EGP mn Ownership in Ebtikar Direct Ownership in Masary +120k +3M +40M Transactions Value
Slide 26: Non Banking Financial Services
Non Banking Financial Services MTI B Investments & BPE Partners 10.6% 52.9% 47.1% Ebtikar for Financial Investment Mortgage Finance & Consumer Electronic Payment Microfinance Leasing finance 35.7% 60% 45.4% 50% • Masary is a leading • Bee is a pioneering • Ebtikar,TCV and Acquire collectively throug
Slide 27: MTI Share Performance
MTI Share Performance MTI vs EGX30 Rebased 19 15 MTI Volume MTI EGX30 Rebased 18 14 17 13 16 12 15 11 14 10 13 9 EGP per Share 12 8 Mns 11 7 10 6 9 5 8 4 7 3 6 2 5 1 4 0 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Sources: Mu
Slide 28: 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 29: 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 30: Management Biographies Cont'd
Management Biographies Cont’d Mr. Salah Mahmoud (Sales Manager – Mobile Network Operators) Mr. Salah has over 5 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 31: 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 32: 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 33: 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 34: Income Statement Standalone
Appendix Financial Statements - Income Statement Standalone EGP mn 1Q 2019 4Q 2018 1Q 2018 Q-o-Q Y-o-Y Revenues 2,156 1,320 1,635 63.3% 31.9% Gross Profit 219 113 132 93.2% 66.8% Gross Profit 10.20% 8.62% 8.06% Margin EBITDA 153 69 100 123.5% 52.7% EBITDA 7.11% 5.20% 6.15% Margin Net Income 110 36 7
Slide 35: Income Statement Consolidated
Appendix Financial Statements - Income Statement Consolidated EGP mn 1Q 2019 4Q 2018 1Q 2018 Q-o-Q Y-o-Y Revenues 2,896 2,125 1,635 36.3% 77.2% Gross Profit 267 144 132 85.5% 103.1% Gross Profit 9.24% 6.79% 8.06% Margin EBITDA 192 88 100 118.3% 91.6% EBITDA 6.64% 4.15% 6.15% Margin Net Income 135 38
Slide 36: Balance Sheet Consolidated
Appendix Financial Statements – Balance Sheet Consolidated EGP 000’ 1Q 2019 FY 2018 Assets Cash and Cash equivalents 164,992 98,040 Current Assets 2,247,175 1,798,666 Fixed Assets 345,946 318,816 Total Assets 2,758,113 2,215,522 Liabilities & Equity Bank overdrafts 118,394 178,210 Current Liabilitie
Slide 37: Thank you
Thank you Investor Relations Contact Information : Ashraf El Ghannam, Investor Relations and Business Development Manager 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 & International Trade (MTI) — Q1 2019 Earnings Presentation on 6ix