Slide 1: Investor Presentation FY 2018 Audited Results
Investor Presentation FY 2018 Audited Results Egypt’s Fastest Growing Pharmaceutical Distributor § 2nd largest pharmaceutical distributor with a market share of 20% § c.42k clients served annually through a network of 59 operational sites and a fleet of 656 vehicles § 5-year revenue CAGR of 32% comp
Slide 2: Disclaimer
Disclaimer THIS DOCUMENT CONTAINS STATEMENTS THAT ARE, OR MAY BE DEEMED TO BE, “FORWARD-LOOKING STATEMENTS” WHICH ARE NOT HISTORICAL FACTS BUT RATHER ARE STATEMENTS OF FUTURE EXPECTATIONS AND PROJECTIONS BASED ON MANAGEMENT’S VIEWS AND ASSUMPTIONS REGARDING TRENDS IN THE EGYPTIAN, MIDDLE EASTERN, EU
Slide 3: Agenda
Agenda I Introduction to the Company II Key Investment Highlights III Appendix IV Contact Information 3
Slide 4: The Company in numbers
II Introduction to the Company The Company in numbers 17+ years Experience in pharmaceutical distribution #1 Growing pharmaceutical distributor in Egypt 2nd Largest pharmaceutical distributor with 20% market share in 2018 c.42k Retail pharmacies, hospitals & wholesalers served in FY18 Over 350 Multi
Slide 5: Ibnsina Pharma, Egypt’s fastest growing pharmaceutical distributor
II Introduction to the Company Ibnsina Pharma, Egypt’s fastest growing pharmaceutical distributor… Company Overview Market Share¹ Established in 2001, Ibnsina Pharma “ISP” is the fastest growing, and 2nd largest, pharmaceutical distributor in Egypt with a market share of c.20.2% Nationwide distribut
Slide 6: Strategies Timeline
Strategies Timeline … 2015 Expansion Strategy: 2009-2012 Launch: 2001-2005 Investment to add 15 distribution Established in 2001 under the name centers & 5 offices, and enhance “Ibnsina Laborex” in partnership with efficiency through standardizing Pinault Printemps Redoute (“PPR”) operational proces
Slide 7: Optimally expanding our distribution network to unlock value
II Introduction to the Company …optimally expanding our distribution network to unlock value…. Distribution Network No. of Sites (Rev/Site – EGP mn) Revenue by Business Line 6 Platforms and main warehouse 45 Distribution Centers (DC) 174 226 3.1% 0.3% 2.4% 1 Tender DC 2 Reverse Logistics Warehouses
Slide 8: Leveraging our network to serve our c.42k customers nationwide
II Introduction to the Company …and leveraging our network to serve our c.42k customers nationwide Clients by Geography (FY 2018) 14.6% 14.7% 10.8% 13.5% 30.8% 31.5% 12.6% 42.5% 16.6% 43.6% 25.2% 25.8% 34.1% 26.3% 28.7% 28.7% 42,159 39,509 762 1,888 Retail Pharmacies Wholesale Clients Hospital Clien
Slide 9: Key Investment Highlights
Key Investment Highlights 9
Slide 10: Key Investment Highlights
III Key Investment Highlights Key Investment Highlights 1 Solid Demographic A rapidly growing population coupled with a growing middle class and increasing healthcare awareness, positions Egypt Profile as one of the most attractive consumer markets in the region 2 Attractive Industry A highly defens
Slide 11: Solid Demographic Profile
III Key Investment Highlights 1 Solid Demographic Profile Egypt’s demographic profile makes it the region’s largest consumer market Population I mn Age Pyramid Urban Population Disposable Income | EGP bn Population (mn) Growth Rate Egypt has seen a growth in health awareness on the back of a growing
Slide 12: Attractive Industry Dynamics (I/II)
III Key Investment Highlights 2 Attractive Industry Dynamics (I/II) A highly defensive sector with significant room for continued growth Total Market Size | EGP bn Market Segmentation Egypt’s healthcare market is the fastest growing in the region driven by significant growth in the pharmaceuticals m
Slide 13: Attractive Industry Dynamics (II/II)
III Key Investment Highlights 2 Attractive Industry Dynamics (II/II) A highly defensive sector with significant room for continued growth Pharma Total Market Share Market Segmentation I Market Share FY2018 Public Sector 5% Novartis 8% Pharco 6% ISP 20% Ezaby 2% GSK 5% Seif 1% Roushdy 2% Sanofi 5% UC
Slide 14: Strong Market Share
III Key Investment Highlights 3 Strong Market Share Exceptional profitable growth on the back of a solid value-based differentiation strategy ISP is the fastest growing distributor in the Egyptian market 25% 24% ( +1%) ISP Market Share Progression 20.0% 2013 12% 2018E 18.0% 20% 16.4% 39 Bn (+ 8%) 92
Slide 15: Efficient Business Model (I/II)
III Key Investment Highlights 4 Efficient Business Model (I/II) Operational efficiency driven by best-in-class supply chain processes Distribution Value Chain Overview Sourcing Processing Distribution Commercial team sources orders from 350+ suppliers Over 200 platform operations employees handle an
Slide 16: Efficient Business Model (II/II)
4 Efficient Business Model (II/II) Innovative Technology Solutions Map Innovative B2B Loyalty Program enhance business relationship with all the customers and applies to all digital solutions SM ERPSM CRM Business Financial & Operational Marketing ,Sales ,& Excellence Service Excellence Intelligence
Slide 17: Resilient Supply Chain
III Key Investment Highlights 5 Resilient Supply Chain Highly diversified supplier/client base significantly mitigating supply chain risks Diversified Geographical Presence Minimal Supplier Concentration Expansive SKUs Coverage Sanofi Alexandria Distributed Aventis 7% Amoun 5% 14.6% Cairo & Canal by
Slide 18: Robust Financial Performance
6 Robust Financial Performance Robust financial performance with double digit top line and bottom line growth FY18 FY18 FY18 FY18 FY18 FY18 Net Revenues Gross Profit EBITDA Operating Profit Net Profit Normalized Net Profit EGP 1 3.3 BN EGP 1.1 BN EGP 573.9 MN EGP 412.7 MN EGP 262.5 MN EGP 322.2 MN ▲
Slide 19: Robust Financial Performance
III Key Investment Highlights 6 Robust Financial Performance Robust financial performance with double digit top line and bottom line growth Gross Revenue1 | EGP mn Gross Profit | EGP mn, % EBITDA & Margin | EGP mn, % CAGR 32% CAGR 38% CAGR 45% 13,678 1 0 . % 4.2% 4.3% 9 .0 % 8.6% 8.4% 573 7.9% 8 .0
Slide 20: Robust Financial Performance
III Key Investment Highlights 6 Robust Financial Performance Effective working capital management has been a key success factor to ISP’s performance DOH 2015 2016 2017 2018 Inventory 32 29 34 34 days days days days 85 83 83 83 days Receivables days days days 112 114 128 125 days Payables days days d
Slide 21: New Revenue Streams
III Key Investment Highlights 7 New Revenue Streams Expansion into high-margin diversified revenue streams to further enhance profitability Warehousing Transportation Warehousing services for suppliers which allows them to save significant CAPEX. ISP Capitalizing on a growing need for specialized tr
Slide 22: Experienced Management Team
III Key Investment Highlights 8 Experienced Management Team Highly experienced management team with strong track record 28 years of pharmaceutical industry experience with focus on commercial operations, IT, quality assurance and administration. Mahmoud Abdel Gawad Prior to Ibnsina, Mahmoud held sev
Slide 23: Experienced Management Team
III Key Investment Highlights 8 Experienced Management Team Seasoned board of directors with diverse experience across various industries Over 40 years of experience across various industries including healthcare, FMCG, and financial services with focus on all investment activities pursued by the Co
Slide 24: Experienced Management Team
III Key Investment Highlights 8 Experienced Management Team Seasoned board of directors with diverse experience across various industries 42 years of experience in finance and banking. Hany Badr His experience included serving as Head of Treasury at Faisal Islamic Bank, until 2016, and Assistant Gen
Slide 25: Organizational Structure
III Key Investment Highlights 8 Experienced Management Team Organizational Structure Board Committees Executive Chairman Management Committees Mohsen Mahgoub Audit Committee Executive Committee Business Development Committee Board of Directors Business Review Committee Remuneration Committee Investm
Slide 26: Appendix
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Slide 27: A significantly complex industry with high barriers to entry
IV Appendix A significantly complex industry with high barriers to entry Barriers to Entry Operational Complexity Inventory A Variety of High Variability of Labor Intensive Geographically Management SKUs Demand Business Dispersed Client Base Highly complex inventory 9k unique drug therapies Short-no
Slide 28: Income Statement
IV Appendix Income Statement In EGP 2015 2016 2017 2018 YoY Change 1 9,818,405 13,677,881 39% Gross Revenue 5,439,119 7,372,467 9,586,344 13,323,674 Net Revenue 5,327,728 7,205,983 (8,759,914) (12,199,359) Cost Of Revenue (4,931,515) (6,636,864) 826,430 1,124,315 36% Gross Profit 396,213 569,118 8.6
Slide 29: Balance Sheet
IV Appendix Balance Sheet In EGP 2015 2016 2017 2018 Property & Equipment, net 152,479 171,327 210,264 431,409 Other Assets 5,307 6,667 8,804 7,641 Project Under Construction 13,787 47,639 161,267 336,288 Deferred Income Taxes 6,911 11,704 11,104 10,453 Total Long Term Assets 178,485 237,336 391,438
Slide 30: Contact Information
Contents ¡1 Executive Summary ¡2 Company Overview ¡3 Key Investment Highlights ¡4 Financial Performance Review ¡5 Contact Information Contact Information 30
Slide 31: Contact Information
V Contact Information Contact Information Mohamed Mahmoud Shawky Investor Relations Manager Tel.: +2010 00852771 Email: shawky@Ibnsina-pharma.com 31