Mannai Corporation Q.p.s.c. · QSE:MCCS
Mannai Corporation Q.p.s.c — Mannai Corporation Q.S.C. — FY2015 Earnings Presentation
27 slides from Mannai Corporation Q.p.s.c's earnings presentation, 2016
Slide 1: FY'15 Financial Summary
Mannai Corporation QSC FY‘15 Financial Summary
Slide 2: Disclaimer
Disclaimer Mannai Corporation Q.S.C. cautions investors that certain statements contained in this document state Mannai Corporation’s management's intentions, hopes, beliefs, expectations, or predictions of the future and, as such, are forward-looking statements. Mannai Corporation management wishes
Slide 3: Qatar Core Growth Offsets 2014 Significant Items to Maintain Growth in Net Profit
Qatar Core Growth Offsets 2014 Significant Items to Maintain Growth in Net Profit QAR m Net Profit + 1% 533 • Outstanding result to beat 2014 given the 526 significant one-off recoveries in Damas. • Profits up 21% after normalising for Damas significant items in 2014 • ICT Group delivered solid grow
Slide 4: Financial Highlights
Financial Highlights QAR m FY 2014 FY 2015 Net Profit 526m 533m 1% Revenues 5,940m 5,935m -% Gross Profit % 20.3% 22.6% 2.3pts Net Profit % 8.9% 9.0% 0.1 pts Capital Employed 5,015m 5,043m 1% Earnings Per Share 11.54 11.68 1% Return on Equity 26% 24% (2)pts 4
Slide 5: Continued Track Record of Solid Double Digit Growth
Continued Track Record of Solid Double Digit Growth QAR m Net Profit Trend 5 Yr Growth Rate 18% 526 533 446 400 279 231 2010 2011 2012 2013 2014 2015 5
Slide 6: Qatar Revenues Up 10% Offsetting Softness in Damas
Qatar Revenues Up 10% Offsetting Softness in Damas QAR m Revenue -% 5,940 5,935 • Group revenue impacted by drop in gold price and softness in UAE luxury sector, lowering Damas Revenue by 11% • Excluding Damas and 2014 insurance claim, revenues increased by 10% • Qatar Growth driven by Heavy Equipme
Slide 7: Growth in Qatar Reduces Damas Share
Growth in Qatar Reduces Damas Share Revenue Mix FY ‘14 FY ‘15 Auto 12% Auto 14% All Other All Other 21% 23% ICT 27% ICT 28% Damas Damas 40% 35% 7
Slide 8: Qatar Profits Surge Offsets Soft Damas Results
Qatar Profits Surge Offsets Soft Damas Results Net Profit* 19% 34% Int’l • Outstanding Qatar growth has offset the softness in Damas 81% 66% Qatar FY '14 FY '15 *Net Profit before significant items and headquarter expenses
Slide 9: Solid Margin Performance Across the Group
Solid Margin Performance Across the Group QAR m Gross Profit Gross Margin % 11% 22.5% 1,206 1,342 20.3% 2.2pts FY '14 FY '15 FY '14 FY '15 • Auto Group dilution driven by mix shift to new units 2015% V pts • ICT upside from improved productivity upside in margin Auto 19.1% (1.3) pts on closure of pr
Slide 10: Strong 2015 Performance Increase ICT Share to 39%
Strong 2015 Performance Increase ICT Share to 39% Net Profit Mix* FY ‘14 FY ‘15 Auto, Auto 13% 12% All Other, All Other 25% 30% Axiom, ICT, 26% (6)% ICT 39% Axiom, Damas, (2)% Damas 40% 22% *Profit before significant items and headquarter expenses 10
Slide 11: Other Income Reduced Due to One-off Recoveries in Damas
Other Income Reduced Due to One-off Recoveries in Damas QAR m Other Income 362 • Other Income driven by significant items in Damas; recoveries of previously provisioned receivables in Damas of 59m down from 302m in the prior year. (57)% • Majority of legacy Damas receivables 151 resolved; minimal ta
Slide 12: Damas Jewellery
Damas Jewellery QAR m Revenue Net Profit* • Reduction in net profit driven by (11)% reduction in one-off significant items 2,353 from 2014 of 138m and 38% 2,097 393 reduction of core earnings (50)% • FY’15 gold revenues down 13% to 1,140m driven by 8% reduction in 196 gold price; non-gold revenues d
Slide 13: Information & Communication Technology Group
Information & Communication Technology Group QAR m Revenue Net Profit • Delivered double digit earnings 5% 68% growth across all 4 pillars 1,652 170 1,580 • 1.3B of Orders in FY’15; 1.2B backlog carried into 2016 101 • Hike in profitability during 2016 due to strong project closure and improved prod
Slide 14: Auto Division
Auto Division QAR m Revenue Net Profit 15% 0% • Auto revenues up 15% as a 844 51.0 51.0 result of new models on Yukon 732 & Escalade, launched late 2014 • Margins lower due to sales mix shift to new vehicles • Overall units sold down 5% reflecting 2H softness in new car market following strong 2014
Slide 15: Axiom Telecom
Axiom Telecom QAR m • Axiom profits recovering from Share of Associate Net Profit Contribution challenging 2014 to break-even Net Profit* 3.6 • Market normalising through consolidation and reduction of number of distributers on key (15.2) • Non-repeat of 2014 impairment of 29m to acquisition-related
Slide 16: Energy & Industrial Markets
Energy & Industrial Markets QAR m Revenue Net Profit • Overall Revenue growth driven 46% 24% by deliveries on mega-reservoir 270 46.7 pipeline projects driving up revenues by 46% and profits up 185 37.8 24% • HVAC division delivered 25% revenue growth driven by Toshiba and SKM • FY’15 orders of 212m
Slide 17: Heavy Equipment Division
Heavy Equipment Division QAR m Revenue Net Profit 12% 22% • Heavy Equipment revenue 37.1 33.1 growth of 22% driven by Qatar 507 infrastructure projects 415 • Gross margins stablising during the year • Improvement in management of working capital due to reduced receivables; increased FY '14 FY '15 pa
Slide 18: Industrial Supplies and Building Materials
Industrial Supplies and Building Materials QAR m Revenue (4)% Net Profit 13% 27.8 241 24.5 • Revenues impacted by 231 reduction to Turbine repair services in Oil & Gas industry • Margin improvement as a result of revenue shift to higher margin Industrial Tools & Welding segment FY '14 FY '15 FY '14
Slide 19: Geotechnical Services
Geotechnical Services QAR m Revenue Net Profit 25% 372% 18.2 • Outstanding Revenue growth 97 driven by infrastructure projects 77 in Qatar; driving revenue growth of 25% • Improved margins and returns 3.9 as a result of improved leverage of fixed operating costs • Announced liquidation of loss- FY '
Slide 20: Travel Division
Travel Division QAR m Revenue Net Profit 2% (6)% • Growth in passenger numbers offset by lower ticket prices, 42 43 resulting in flat revenues 15.7 14.7 • Continued pressure on ticket service fees driving margin and net profit deterioration • Growth in direct costs from additional visa processing se
Slide 21: Engineering
Engineering QAR m Revenue Net Profit (25)% • Revenues impacted by reduced 120 spending in Oil & Gas sector and overcapacity in market 91 FY '14 FY '15 • Margins further impacted by cut- throat competition and reduced (0.1) leverage of fixed costs • Restructuring actions taken to (4) reduce capacity,
Slide 22: Logistics
Logistics QAR m Revenue Net Profit 32% 61% • Revenues increase as a result 6.4 of increasing pricing to reflect 49 market rates 37 4.0 • Focus primarily on internal Mannai business • Replacement warehouse to complete in 2017 FY ' 14 FY ' 15 FY '14 FY '15 GP 9.4m 12m NP% 10.6 % 13.0% GP% 25.3% 24.3%
Slide 23: Others
Others QAR m Revenue Net Profit • Reduced revenue due (66)% accounting for insurance claim FY '14 FY '15 in 2014 (105m of revenue at 157 zero margin) (20) • 18m treasury gain in 2015 as a result of FX hedging activity 54 • Improvement in contribution driven by non-repeat of significant items charged
Slide 24: Outstanding 528m of Operating Cash Flow Reduces Leverage and frees capacity to fund GFI Acquisition
Outstanding 528m of Operating Cash Flow Reduces Leverage and frees capacity to fund GFI Acquisition QAR m Net Debt Net Debt to Total Capital* 2,853 2,952 50% 50% 2,635 46% Q4 '14 Q3 '15 Q4 '15 Q4'14 Q3'15 Q4'15 *Total Capital adjusted for Acquisition Reserves 24
Slide 25: GFI Informatique Acquisition Announced November 2015
GFI Informatique Acquisition Announced November 2015 • Company reported revenue of €894m and net profit of €22m for 2015 Acquiring 51% for €286m; option to increase to 80% by 2018 • Presence in Europe; 85% of revenues from France • Continue GFI’s growth and international expansion strategy to make i
Slide 26: Normalisation of key lines for significant items
Normalisation of key lines for significant items • Decrease in recoveries from Damas drives reduction in other income • One-off treasury gain as a result of FX hedging • Gain on sale of properties in Damas • Underlying core profits up 21% during year as strong Qatar performance offsets reduction in
Slide 27: Mannai Corporation QSC
Mannai Corporation QSC Tel: +974-4455 8888 Fax: +974 4455 8880 www.mannai.com CONTACTS Investor Relations Ewan Cameron Chief Financial Officer email: investor.relations@mannai.com.qa Tel (Direct) : +974-44558844 27
Mannai Corporation Q.S.C. — FY2015 Earnings Presentation on 6ix