Slide 1: Q3 & 9M 2024 Earnings Presentation
Q3 & 9M 2024 EARNINGS PRESENTATION ADNH Catering November 2024
Slide 2: Disclaimer
Disclaimer No statement in this document is intended to be nor may be construed as a profit forecast. Any statements made in this document which could be classed as “forward-looking” are based upon various assumptions, including, management’s examination of historical operating trends, data containe
Slide 3: Note on Pro Forma Financials
Note on Pro Forma Financials ADNH Catering plc (“ADNHC” or the “Company”) was incorporated in the Abu Dhabi Global Market on 22 June 2024. On 30 June 2024, ownership of the catering and support services businesses in the UAE and the Kingdom of Saudi Arabia were contributed by ADNHC’s parent company,
Slide 4: Speakers
Speakers Clive Cowley Andrew Marshall Anthony Childers Chief Executive Officer Chief Financial Officer Deputy Chief Financial Officer 4
Slide 5: Contents
Contents 1 Highlights 2 Business Overview 3 Growth Strategy 4 Financial Performance 5 Concluding Remarks 6 Q&A 7 Appendix 5
Slide 6: 9M 2024 Highlights
9M 2024 Highlights First combined pro forma financials since listing Successful IPO on ADX • Solid base revenue growth of 12.1% • 15x oversubscribed • Healthy EBITDA margin of 13.7% • AED 13bn in orders • Free cash flow of 74% • Significant international and local demand Healthy growth in contracts
Slide 7: Business Overview
Business Overview
Slide 8: Proven Business Model
Proven Business Model ADNH Catering’s distinct business segments and operational strengths enable attractive cross-selling opportunities Food Services Support Services [x] [x] Description Catering through on-site kitchens or centralized hubs General cleaning and manpower services Key Sectors Defence
Slide 9: Our Business in the UAE
Our Business in the UAE Business Overview Geographic Presence • Since 1979, our UAE business serves c.93% of our total clients through: Revenue Split Key Presence 9M 2024 Food Services Support Services 8% • Within Food Services, we are focused on serving clients in the following sectors: Abu Dhabi D
Slide 10: Our Opportunity in Saudi Arabia
Our Opportunity in Saudi Arabia Large Food Catering Addressable Market in KSA… …with High Growth Potential KSA Food Catering Market Projected Food Catering Addressable Market Growth A Total KSA Food Services SAR 9.3bn ~5% SAR 12.0bn ~SAR 100-110bn Market(1) 2023 ’23E – ’28E CAGR 2028E B Total KSA Fo
Slide 11: Spotlight on Saudi Expansion: Healthcare and Riyadh
Spotlight on Saudi Expansion: Healthcare and Riyadh Opportunity to leverage expertise in Healthcare and focus on Riyadh as a priority market Private Healthcare Focus and Specialism Riyadh Opportunity Since 2018, growth strategy in KSA has been focused on diversifying towards Company No presence in a
Slide 12: Growth Strategy
Growth Strategy
Slide 13: Positioned to Benefit From Multiple Growth Avenues
Positioned to Benefit From Multiple Growth Avenues 5 KSA Opportunity 4 3 Inorganic Growth + • ‒Private healthcare focus Focus on expanding in the KSA 1 2 Horizontal Integration + • Acquisition focus: Healthcare sector by leveraging UAE Healthcare Sales and Retention Segment Specific Strategy experti
Slide 14: Financial Performance
Financial Performance
Slide 15: Company Reorganisation Explained
Company Reorganisation Explained Pre-IPO Post-IPO ADNH ADNH Catering plc 100% 100% 100% 100% 30% ADNH Catering Abu Dhabi ADNH Catering ADNH Catering ADNH Catering Compass Arabia 100% Abu Dhabi Dubai Sharjah 100% 100% 30% Reorganisation using Business Combination method under Common Control. ADNH Cat
Slide 16: Well-Diversified Revenues
Well-Diversified Revenues Revenue By Segment Revenue By Key Sector for Food Services Commentary (AEDm) (AEDm) Food as % of Revenue • YoY base revenue growth for the 9-month period to B&I Defence 62% 59% 59% 62% September 24 of 12.1%; growth across all sectors Healthcare Correctional Support as % of
Slide 17: Maintaining Strong Margins
Maintaining Strong Margins Contract Profit Underlying EBITDA Commentary (AEDm) (AEDm) • 17.8% contract profit margin heading towards Contract Profit Margin EBITDA Margin 18% guidance (from 17.6% at June ’24) on elevated mobilisation costs in Food Services 18.1% 18.2% 18.4% 17.8% (1) (1) 14.5% 14.0%
Slide 18: Sustained Profitability, Investing in High-Margin Contracts
Sustained Profitability, Investing in High-Margin Contracts Cash Conversion(1) Underlying EBIT & Net Profit Commentary Total Investment as % Rev.(2) EBIT Margin (AEDm) (3) (3) 2.9% 3.2% 3.4% 3.5% 12.1% 10.8% 11.0% 9.9% • High cash conversion, supported by attractive long-term contracts • Capex light
Slide 19: Robust Cash Conversion
Robust Cash Conversion Free Cash Flow (FCF) Commentary (AEDm) 2022 2023 9M Sep’23 9M Sep’24 Underlying EBITDA 289 239 185 167 • Reduction in cash conversion due to increased investment to secure key contract extension. Strategic intent to invest more to secure attractive (-) Net Capex(1) (12) (7) (6
Slide 20: Attractive Dividend Profile
Attractive Dividend Profile Progressive Intention to For 2026, intention From 2027 dividend policy distribute a For 2025, intention to increase the onwards, intention with semi- special cash to distribute (semi- annual dividend by to maintain a annual cash dividend of AED annually) a total at least
Slide 21: Financial Guidance
Financial Guidance Guidance(1) on Organic Growth Basis Near-Term Target(2) Mid-Term Target(2) Commentary 8-10% of total revenue per annum Expect to be driven by increasing size of the addressable market and increasing market share New Contract Wins (annualised value of new business) of ADNH Catering
Slide 22: Concluding Remarks
Concluding Remarks
Slide 23: Concluding Remarks
Concluding Remarks Powerful macro Clear market Robust underlying Diverse portfolio with Attractive tailwinds leadership performance long-term contracts dividend profile The food services market Leading food and support Delivering robust Diversified client base Attractive and in the UAE and Saudi ser
Slide 24: Q&A
Q&A
Slide 25: Appendix
Appendix
Slide 26: Investment Highlights
Investment Highlights 1 Large and growing target market supported by strong macro market tailwinds 2 Market leader with significant regional presence and a diversified and sectorised business 3 Diverse portfolio of strategic clients with competitive edge in securing long-term and high-quality contra
Slide 27: Pro Forma Combined Income Statement, 12 months to 30 September
Unaudited unreviewed Proforma Combined Income Statement for the 12-month period ending 30 September AED (FYE 30-Sep) 2022 (Audited) 2023 (Audited) 2024 Food services 1,284,734,059 1,072,997,335 998,838,434 Support services 705,020,389 744,495,824 615,498,669 Revenue 1,989,754,448 1,817,493,159 1,614
Slide 28: Pro Forma Combined Cash Flow Statement, 12 months to 30 September
Unaudited unreviewed Proforma Combined Cash Flow Statement for the 12-month period ending 30 September AED (FYE 30-Sep) 2022 (Audited) 2023 (Audited) 2024 Cash flow from operations EBITDA 295,129,567 252,607,043 221,228,929 Charge of specific provision / reversal (11,722,948) 25,210,000 - Provisions
Slide 29: Pro Forma Combined Balance Sheet, 12 months to 30 September
Unaudited unreviewed Proforma Combined Balance Sheet for the 12-month period ending 30 September AED (FYE 30-Sep) 2022 (Audited) 2023 (Audited) 2024 Assets PP&E 19,544,925 20,154,559 17,988,045 Intangible assets 68,784 285,534 189,018 Right-of-use assets 85,826,442 105,108,100 67,992,592 Investment
Slide 30: Pro Forma Combined Income Statement, 12 months to 31 December and 9M
Unaudited unreviewed Proforma Combined Income Statement for the 12-month period ending 31 December and 9-month period ending 30 September AED (FYE 31-Dec) 2022 2023 9M ended 30 Sept 2023 9M ended 30 Sept 2024 Food services 1,243,223,746 1,013,283,034 768,309,865 753,865,265 Support services 751,141,
Slide 31: Pro Forma Combined Cash Flow Statement, 12 months to 31 December and 9M
Unaudited unreviewed Proforma Combined Cash Flow Statement for the 12-month period ending 31 December and 9-month period ending 30 September AED (FYE 31-Dec) 2022 2023 9M ended 30 Sept 2023 9M ended 30 Sept 2024 Cash flow from operations EBITDA 289,350,129 239,474,985 185,088,559 166,842,503 Charge
Slide 32: Pro Forma Combined Balance Sheet, 12 months to 31 December and 9M
Unaudited unreviewed Proforma Combined Balance Sheet for the 12-month period ending 31 December and 9-month period ending 30 September AED (FYE 31-Dec) 2022 2023 9M ended 30 Sept 2023 9M ended 30 Sept 2024 Assets PP&E 23,009,976 18,722,848 20,154,559 17,988,045 Intangible assets 376 261,405 285,534
Slide 33: Statutory condensed consolidated statement of profit or loss
Statutory condensed consolidated statement of profit or loss AED Three-month period ended 30 September Twelve-month period ended 30 September 2024 2023 2024 2023 (Unaudited) (Unaudited and unreviewed) (Unaudited) (Unaudited and unreviewed) Food services 255,878,085 169,737,034 890,623,535 874,867,98
Slide 34: Statutory condensed consolidated statement of cash flow
Statutory condensed consolidated statement of cash flow AED (FYE 30-Sep) 2023 2024 Cash flow from operations Profit for the period before tax 211,435,726 152,887,369 Adjustments for: Depreciation on PPE 8,165,846 12,844,755 Depreciation on ROU 31,468,505 35,777,978 Amortisation 72,800 5,099,017 Gain
Slide 35: Statutory condensed consolidated statement of financial position
Statutory condensed consolidated statement of financial position AED (FYE 30-Sep) 2023 2024 Assets Property and equipment 14,958,362 17,988,045 Right-of-use assets 86,656,545 67,823,148 Intangible assets 285,534 283,258,108 Investments in joint ventures - 10,369,138 Total non-current assets 101,900,
Slide 36: Thank you
Usman Saeed Thank you Investor Relations Officer usman.saeed@ADNHC.AE investors.adnhc.me