Mezzan Holding Company Kscc · KSE:MEZZAN

Mezzan Holding Company Kscc — Mezzan Holding Company — Q1 2018 Earnings Presentation

19 slides from Mezzan Holding Company Kscc's earnings presentation, May 10, 2018

  1. Slide 1: Q1 2018 Earnings Presentation

    Q1 2018 Earnings Presentation May 10, 2018 August 9, 2017

  2. Slide 2: Disclaimer

    DISCLAIMER 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. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS PROVIDED AS INFORMATION ONLY. THIS PRESENTATION DOES N

  3. Slide 3: Agenda

    AGENDA Tailwinds & Headwinds Q1 2018 Highlights AGENDA Historical Performance Financial Review AGENDA AGENDA Q&A AGENDA 3

  4. Slide 4: Tailwinds

    ➜ TAILWINDS Breakeven in KSA in the month of March 2018, ➜ launch of breadsticks produced in KSA and in Kuwait (with positive feedback), and more recently in UAE TAILWINDS ➜ ➜ Double digit growth in home market Strong performance in Catering sector, turnaround ➜ TAILWINDS ➜ in profitability since Q1

  5. Slide 5: Headwinds

    ➜ Managing through impact of excise duty, VAT HEADWINDS ➜➜ and general market conditions in the UAE through reducing operating expenses; ➜ continuous discussions with relevant authorities HEADWINDS to enforce action aiming at stopping parallel import HEADWINDS ➜ ➜ New operating climate changing the

  6. Slide 6: Q1'18 Highlights

    Q1’18 Highlights Q1’18 Q1’17* % Q1’17 % *Pro-forma after Change (Reported) Change including IFRS 15 +9 changes Revenue 58.8 m 55.8 m +5.4% 57.5 m +2.2% Gross Profit 13.4 m 13.4 m -0.5% 15.2 m -11.9% EBITDA 7.2 m 7.1 m +1.5% 7.3 m -1.8% Net Profit Attributable to Equity Holders of Parent 5.0 m 5.1 m -2

  7. Slide 7: Historical Performance

    Historical Performance Revenue Gross Profit EBITDA Net Profit 0.2* 0.2* 1.8* 5.5 7.2 0.2* 1.7* 1.7* 1.8* 7.1 7.1 5.3 0.2* 58.8 14.3 6.9 5.1 5.0 55.7 55.8 13.4 13.4 13.4 52.9 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 Revenue improved by 5.4% Gross profit improvement

  8. Slide 8: Financial Review

    Financial Review

  9. Slide 9: Revenue contribution by business line

    Q1’18 Revenue contribution by business line GROUP FOOD 67.8% of total Group Revenue NON-FOOD 32.2% of total Group Revenue 9

  10. Slide 10: Revenue growth by business line

    Q1’18 Revenue Growth numbers vs. Q1-2017 have been calculated based on pro-forma Q1-2017 assuming IFRS 15/9 changes were growth by business line done then, to enable a like for like comparison. FOOD +3.7% vs. Q1’17 (Pro-forma) NON-FOOD +9.1% vs. Q1’17 (Pro-forma) Growth in Food segment in Q1 reporte

  11. Slide 11: Food: revenue growth by business division

    Q1’18 Revenue Growth numbers vs. Q1-2017 have been calculated based on pro-forma Q1-2017 assuming IFRS 15/9 changes were growth by done then, to enable a like for like comparison. business division Manufacturing FOOD &Distribution Contributed 45.8% to Q1’18 Revenues -1.8% vs. Q1’17 (Pro-forma) FOOD

  12. Slide 12: Non-food: revenue growth by business division

    Q1’18 Revenue Growth numbers vs. Q1-2017 have been calculated based on pro-forma Q1-2017 assuming IFRS 15/9 changes were growth by done then, to enable a like for like comparison. business division NON-FOOD FMCG & NON-FOOD Pharma Contributed 29.7% to Q1’18 Revenues +10.8% vs. Q1’17 (Pro-forma) NON-F

  13. Slide 13: Q1'18 Revenue by contribution & growth by country

    Revenue contribution to total Group revenues Q1’18 Revenue by in Q1'18 compared to Q1’17 contribution & Revenue growth in Q1'18 compared to Q1'17 growth by country Kuwait UAE Qatar KSA Jordan Afghanistan Iraq 9.4% 75.0% 0.9% 8.8% 2.1% 2.0% 1.8% +12.7% -21.3% +3.7% -22.1% -24.9% 5.6% +15.9% Strong pe

  14. Slide 14: P&L (KD m)

    Q1’18 P&L (KD m) Q1’18 (Reported) Q1’17* *Pro-forma after including IFRS 15 +9 % Q1’17 Change (Reported) % Change changes Revenue 58.8 55.8 +5.4% 57.5 +2.2% Gross Profit 13.4 13.4 -0.5% 15.2 -11.9% GPM% 22.7% 24.1% 26.4% SG&A Expenses -7.6 -7.6 +0.8% -9.1 +17.2% Financing Costs and Others -0.5 -0.4

  15. Slide 15: Cash Flow (KD m)

    Q1’18 Cash Flow (KD m) Q1’18 Q1’17* Diff. Q1’17 Diff. (Reported) *Pro-forma after (Reported) including IFRS 15 +9 changes Operating Cash Flow before WC 7.5 7.3 0.2 7.5 0.0 changes Working Capital -3.6 -7.5 3.9 -7.5 3.8 Operating Cash Flow 3.9 -0.2 4.1 0.0 3.8 CAPEX / Other investing activities -3.5

  16. Slide 16: Q1'18 Balance Sheet (KD m)

    Q1’18 Balance Sheet (KD m) Total Assets Equity Net Debt Net Debt to Equity (%) Shareholder Equity 115.7 35.2 26.5% 216.8 221.2 111.4 34.5 102.6 195.5 30.1 29.7 175.0 83.4 24.0% 22.9% +8.1% +11.5% +4.7% 22.4% 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 16

  17. Slide 17: 2018 Guidance

    2018 Guidance No Change 2017 2018 Guidance HSD to LDD Revenue 204.5 m Growth Net Profit 12.9 m DD Growth c.8% c.5% Capex of Revenue of Revenue 17

  18. Slide 18: Q&A

    Q&A [ ] To ask a question look for ‘ask a question’ tab on your screen, then type your question 18

  19. Slide 19: Key Contacts

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

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