Mezzan Holding Company Kscc · KSE:MEZZAN

Mezzan Holding Company Kscc — Mezzan Holding Company — Q2 2018 Earnings Presentation

15 slides from Mezzan Holding Company Kscc's earnings presentation, Aug 9, 2018

  1. Slide 1: Q2 2018 Earnings Presentation

    Q2 2018 Earnings Presentation August 9, 2018 1

  2. Slide 2: Disclaimer

    Disclaimer This confidential document is provided for informational purposes only. 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 IN ANY JURISDICTION. IT IS SOLELY FOR US

  3. Slide 3: Agenda

    Agenda Tailwinds & Headwinds H1 2018 Highlights Historical Performance Financial Review By Families For Families 3

  4. Slide 4: Mezzan Today: H1'18 Tailwinds

    ➜ ➜ Mezzan Today: H1’18 Tailwinds ➜ Capacities added: ➜ New chips and snacks capacities are online towards end of Q2 in UAE ➜ New chips and snacks capacities online in beginning of Q3 in Qatar (due to regulatory reasons) ➜ ➜ PET projects in Kuwait and Qatar online within Q2 ➜➜ ➜ Continued double dig

  5. Slide 5: Mezzan Today: H1'18 Headwinds

    ➜ ➜ Mezzan Today: H1’18 Headwinds ➜➜ Slow macro-economic scene in UAE adds pressure to operations, non- stoppage of grey market of energy drinks, forcing new measures of cost ➜ cutting initiatives effective Q4 2018. Saudi sales drop due to lack of supply of potato chips, options being assessed. ➜ Qa

  6. Slide 6: Mezzan Today: Q2'18 Highlights

    Mezzan Today: Q2’18 Highlights KD Millions H1’18 H1’17 % H1’17 % Q2’18 Q2’17 % Q2’17 % (Reported) (Reported) Change (Pro-forma)* Change (Reported) (Reported) Change (Pro-forma)* Change Revenue 109.4 107.8 +1.5% 105.0 +4.2% 50.6 50.2 +1.0% 49.2 +3.0% Gross Profit 24.7 27.8 -11.5% 25.1 -1.7% 11.3 12.7

  7. Slide 7: Mezzan Today: Historical Performance

    Mezzan Today: Historical Performance KD Millions Revenue Gross Profit EBITDA Net Profit 2.8 3.0 12.8 2.8 3.0 15.8 108.5 107.8 109.4 26.9 27.9 104.5 13.9 0.2 25.1 0.2 10.3 24.7 0.2 0.2 11.1 11.2 7.2 6.8 +1.6% -2.8% -10.9% -19.0% 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 20

  8. Slide 8: H1'18 Revenue: Contribution by Business Line

    H1’18 Revenue: Contribution by Business Line Vs. H1’17 (Pro-Forma) FOOD REVENUE +3.4% NON-FOOD REVENUE +6.3% 71.5% Share of of total Group 28.5% Share of of total Group Revenue Revenue Growth results vs. H1-2017 have been calculated based on pro-forma H1-2017 assuming IFRS 15+9 changes were done the

  9. Slide 9: H1'18 Revenue Growth by Business Division: Food

    H1’18 Revenue Growth by Business Division Vs. H1’17 (Pro-Forma) FOOD Manufacturing &Distribution Contributed 48.5% -2.1% vs. H1’18 (Pro-forma) to H1’18 Revenues Catering Contributed 16.5% to H1’18 Revenues +26.2% vs. H1’18 (Pro-forma) Services Contributed 6.4% to H1’18 Revenues -1.1% vs. H1’18 (Pro-

  10. Slide 10: H1'18 Revenue Growth by Business Division: Non-Food

    H1’18 Revenue Growth by Business Division Vs. H1’17 (Pro-Forma) NON-FOOD FMCG & Pharma Contributed 26.1% +7.7% vs. H1’18 (Pro-forma) to H1’18 Revenues Industrials Contributed 2.4% to H1’18 Revenues -6.5% vs. H1’18 (Pro-forma) Growth results vs. H1-2017 have been calculated based on pro-forma H1-2017

  11. Slide 11: Q2'18 Revenue by Contribution and Growth by Country

    Q2’18 Revenue by Contribution and Growth by Country Kuwait UAE Qatar KSA Jordan Afghanistan Iraq 72.6% 10.5% 9.6% 2.0% 2.2% 2.1% 1.0% +10.5% -22.0% +6.1% -16.8% -17.3% +13.2% +14.4% Strong performance in Excise duty Sales have grown Sales declined as Stable performance. Stable performance. Stable pe

  12. Slide 12: H1'18 P&L

    H1’18 P&L KD Millions H1’18 H1’17 % H1’17 % (Reported) (Reported) Change Pro-forma Change With IFRS 15 +9 changes Revenue 109.4 107.8 +1.5% 105.0 +4.2% Gross Pofit 24.7 27.9 -11.5% 25.1 -1.7% GM% 22.5% 25.9% 23.9% SG&A (16.3) (18.9) +13.8% (16.3) +0.2% Others (1.3) (1.3) +1.8% (1.3) +1.8% Underlying

  13. Slide 13: H1'18 Cash Flow

    H1’18 Cash Flow KD Millions Q2’18 Q2’17 Diff. H1’18 H1’17 Diff. (Reported) (Reported) (Reported) (Reported) Operating Cash Flow 5.3 4.8 0.4 11.9 12.3 -0.5 before WC Changes Working Capital -2.9 -0.8 -2.1 -6.3 -8.3 2.0 Operating Cash Flow 2.3 4.0 -1.7 5.6 4.1 1.5 CAPEX/Other Investing -3.0 -2.8 -0.2 -6

  14. Slide 14: June 30 Balance Sheet

    June 30 Balance Sheet KD Millions Total Assets Equity Net Debt Net Debt to Equity (%) 45.9 29.2 29.7 43.2 27.2 218.6 220.2 104.7 108.9 26.7 99.2 196.1 90.5 36.2 178.1 33.9 +7.3% +6.3% +10.7% 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 14

  15. Slide 15: Key Contacts

    Key Contacts Mohammad Khajah Head of Corporate Development and Investor Relations Mezzan Holding T: +965 2228 6336 M : +965 9977 0147 E : mohammed.Khajah@mezzan.com 15

Mezzan Holding Company — Q2 2018 Earnings Presentation on 6ix