Mm Group For Industry & International Trade · EGX:MTIE
Mm Group For Industry & International Trade — MM Group for Industry and International Trade S.A.E (MTI) — Q3 2018 Earnings Presentation
34 slides from Mm Group For Industry & International Trade's earnings presentation, 2018
Slide 1: Corporate Presentation Third Quarter 2018
Corporate Presentation Third Quarter 2018
Slide 2: Disclaimer
Disclaimer MM Group for Industry and International Trade S.A.E (MTI) give notice that: The particulars of this presentation do not constitute any part of an offer or a contract. The information contained in this presentation may contain certain projections and forward‐looking statements that reflect
Slide 3: Introduction to the Company
Introduction to the Company A local Distribution Giant The Company in numbers MTI was established in 1992 and is one of Egypt’s largest distribution companies by geographic coverage with access to over 40,000 25+ years Experience in distribution points of sale. 90% Geographic Footprint Diversifi
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, and air conditioners. Telecom The telecom business includes the operation of Vodafone branded retail franchises and distribution of m
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 express Stores 3 Brand Stores 8 Service Centers 2 Branded Bosch Stores Telecom 27,706 Points of Sale 55 Stores (owned & operated) Automotive Automotive Automotive 16 Points of Sale 4 Of which owned & operated Tractor and Pipes
Slide 7: 3rd Quarter Financial Results Review
3rd Quarter Financial Results Review Standalone Financial Overview 9 Months 2018 Financial Results Summary Revenue | EGP mn Gross Profit & Margin | EGP mn, % EBITDA & Margin | EGP mn, % Net Profit & Margin | EGP mn, % 700 0 20% 400 20% 7.4% 6.9% 500 600 0 YoY 24% 0% 350 5.6% 4.8% 0% 450 50% 5,500 40
Slide 8: 3rd Quarter Financial Results Review
3rd Quarter Financial Results Review Financial Overview Cont’d 3rd Quarter 2018 Financial Results Summary SG&A & % of Sales | EGP mn, % Inventory & DoH | EGP mns, Days Decrease in SG&A to Sales QoQ to 2.0% in 3Q18 from 2.2% in 2Q18 Managed to decrease large inventory levels, mainly from Samsung Mobi
Slide 9: Financial Overview – Revenue Breakdown
3rd Quarter Financial Results Review Financial Overview – Revenue Breakdown 9 Months 2018 Revenue Breakdown by LoB | % 3rd Quarter 2018 Revenue Breakdown by LoB | % Telecom Telecom Consumer Electronics Consumer Electronics 19.9% 18.8% 9M17 3Q17 EGP 4,452 mn 21.9% EGP 1,734 mn 18.9% 75.4% 73.1% 9M18
Slide 10: Financial Overview – Gross Profit Breakdown
3rd Quarter Financial Results Review Financial Overview – Gross Profit Breakdown 9 Months 2018 Gross Profit Breakdown by LoB | % 3rd Quarter 2018 Gross Profit Breakdown by LoB | % Telecom Telecom 12.8% 14.9% Consumer Electronics Consumer Electronics 9M17 3Q17 11.4% EGP 331 mn EGP 134 mn 9.5% 24.1% 7
Slide 11: Consumer Electronics
CONSUMER 42.9% 68.4% Of 9M18 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 12: Mobiles Overview – Smart Phone Market
3rd Quarter Lines of Business Review Mobiles Overview – Smart Phone Market Smart Phone Volumes Sold | 000’ Units Smart Phone Value Sold & Price | EGP mn, EGP Increase of 9% QoQ recording the highest quarterly volume sales in over 3 years Large increase in local value sold, driven by both volume and
Slide 13: Consumer Electronics Overview
3rd Quarter Results Financial Review Consumer Electronics Consumer Electronics Overview – 3Q18 Revenue | EGP mn Gross Profit & Margin | EGP mn, % 120 1,6 00 7.9% 5.3% 5.0% 0.0 % 1,4 00 100 1,465 104 -50.0% 1,2 00 1,307 1,0 00 1,203 80 73 -100.0% 60 800 64 -150.0% 600 40 -200.0% 400 20 -250.0% 200 0
Slide 14: Telecom
80.1% TELECOM 19.9% Of 9M18 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% 55 Vodafone Scratch Cards Points of Sale Operated Vodafone Stores Market share
Slide 15: Telecommunication Overview
3rd Quarter Results Financial Review Telecommunication Telecommunication Overview – 3Q18 Revenue | EGP mn Gross Profit & Margin | EGP mn, % 60 5.0 % 400 390 4.8% 4.8 % 50 380 4.6 % 370 386 4.4 % 375 40 4.2% 360 4.2 % 350 30 4.0 % 340 3.9% 3.8 % 330 20 3.6 % 320 327 19 16 3.4 % 310 10 300 13 3.2 % 29
Slide 16: Automotive
85.2% AUTOMOTIVE 11.2% Of 9M18 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 17: Automotive Overview
3rd Quarter Results Financial Review Automotive Automotive Overview – 3Q18 Revenue | EGP mn Gross Profit & Margin | EGP mn, % 60 17. 0% 250 50 16.5% 16. 5% 200 220 201 16. 0% 40 150 15.7% 15. 5% 30 36 100 32 15. 0% 14.6% 20 14. 5% 89 50 10 13 14. 0% 0 0 13. 5% 3Q17 2Q18 3Q18 3Q17 2Q18 3Q18 Automotiv
Slide 18: Tractors & Pipes
TRACTORS 98.0% 0.5% Of 9M18 & 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 19: Tractors & Pipes Overview
3rd Quarter Lines of Business Review Tractors & Pipes Overview Tractors & Pipes Overview | 3Q18 Revenue | EGP mn Gross Profit & Margin | EGP mn, % 7 50. 0% 39.0% 12 32.1% 37.2% 6 10 100 % 0.0 % 10 10 5 8 -400% -50.0% 4 6 3 4 -900% 3 -100.0% 4 5 2 2 -1400% 1 2 -150.0% 0 -1900% 0 -200.0% 3Q17 2Q18 3Q1
Slide 20: Investments in Associates
INVESTMENTS IN ASSOCIATES Investments supporting and complementing MTI’s core distribution business, through which invests in Non-banking Financial Institutions such as , & and distribution which distributes Samsung mobile phones . +240 5 62.7% Paid in Capital in EGP mn # of Companies Ownership in K
Slide 21: Consolidated Financial Overview
3rd Quarter Financial Results Review Consolidated Financial Overview 9 Months 2018 Gain from Investments in Associates 9 Months 2018 Net Profit 9 Months 2018 Net Profit - Adjusted EGP mn Net Profit & Margin | EGP mn, % Adjusted Net Profit & Margin | EGP mn, % 70 450 50% 450 50% 60 400 6.6% 4.2% 0% 4
Slide 22: Non Banking Financial Services
Non Banking Financial Services MTI B Investments 10.6% 56% 45% Ebtikar for Financial Investment Mortgage Finance & Consumer Electronic Payment Microfinance Leasing finance 35.7% 60% 37% 50% • Masary is a leading • Bee is a pioneering • Ebtikar,TCV and Acquire collectively through • Vitas Egypt recei
Slide 23: MTI Share Performance
MTI Share Performance MTI vs EGX30 Rebased YTD 16 MTI Volume MTI EGX30 Rebased 15 15 14 13 14 12 13 11 12 10 11 9 EGP per Share 8 Mns 10 7 9 6 8 5 7 4 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 MTI Since IPO: 78.2% Average Upside Target Price Target Price 61%
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: Financial Statements - Income Statement Consolidated
Appendix Financial Statements - Income Statement Consolidated EGP mn 3Q17 2Q18 3Q18 YoY QoQ Income Statement Sales EGP 1,734,043,914 1,807,788,962 2,057,460,271 18.7% 13.8% Cost of Sales EGP (1,600,170,711) (1,687,394,842) (1,932,009,674) 20.7% 14.5% Gross Profit EGP 133,873,203 120,394,120 125,450,
Slide 31: Financial Statements - Income Statement Consolidated Cont'd
Appendix Financial Statements - Income Statement Consolidated Cont’d EGP mn 9M17 9M18 YoY Income Statement Sales EGP 4,451,933,306 5,499,928,396 23.5% Cost of Sales EGP (4,120,779,942) (5,121,911,743) 24.3% Gross Profit EGP 331,153,364 378,016,653 14.2% Margin % % 7.4% 6.9% -0.6% Sales & Distributio
Slide 32: Financial Statements – Balance Sheet Consolidated
Appendix Financial Statements – Balance Sheet Consolidated EGP mn FY2017 3Q18 YoY % Balance Sheet Inventory EGP 519,100,456 685,526,778 32.1% Receivables & Notes Receivable EGP 375,388,542 487,271,767 29.8% Due from Related Parties EGP 44,058,926 8,338,304 -81.1% Advances to Suppliers EGP 223,796,24
Slide 33: Financial Statements - Income Statement Standalone
Appendix Financial Statements - Income Statement Standalone EGP mn 3Q17 3Q18 YoY Income Statement Sales EGP 1,734,043,914 2,057,460,271 18.7% Cost of Sales EGP (1,600,889,046) (1,932,009,674) 20.7% Gross Profit EGP 133,154,868 125,450,597 -5.8% Margin % % 7.7% 6.1% -1.6% Sales & Distribution Expense
Slide 34: 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 and International Trade S.A.E (MTI) — Q3 2018 Earnings Presentation on 6ix