Mannai Corporation Q.p.s.c. · QSE:MCCS
Mannai Corporation Q.p.s.c — FY2016 Earnings Presentation
25 slides from Mannai Corporation Q.p.s.c's earnings presentation, Jun 1, 2017
Slide 1: Mannai Corporation QPSC FY'16 Financial Summary
Mannai Corporation QPSC FY‘16 Financial Summary
Slide 2: Disclaimer
Disclaimer Mannai Corporation Q.P.S.C. cautions investors that certain statements contained in this document state Mannai Corporation’s management's intentions, hopes, beliefs, expectations, or predictions of the future and, as such, are forward-looking statements. Mannai Corporation management wish
Slide 3: Profit Growth of 0.4% Under Challenging Conditions
Profit Growth of 0.4% Under Challenging Conditions QAR m Net Profit • GFI Informatique Acquisition In France And Reduced In Operating Expenses Offsets Fall In + 0.4% 535 Profits From Damas And Qatar 533 • GFI Contributes EBITDA Of 64m And Net Profit Of 37m • Operating Expense Reduction Of 10% Contri
Slide 4: Financial Highlights
Financial Highlights QAR m FY 2015 FY 2016 Net Profit 533m 535m 0.4% Revenues 5,935m 4,886 m (18)% Gross Profit % 22.6% 24.2% 1.6pts Net Profit % 9.0% 11.0% 2pts Capital Employed 5,043m 6,403 27% Earnings Per Share 11.68 11.73 0.4% Return on Equity 24% 22% (2)pts 4
Slide 5: Track Record Of Double Digit Growth Over Five Years
Track Record Of Double Digit Growth Over Five Years Net Profit Trend QAR m 5 Yr Growth Rate 14% 526 533 535 446 400 279 2011 2012 2013 2014 2015 2016 5
Slide 6: Revenue Pressures Impacting All Business Units
Revenue Pressures Impacting All Business Units QAR m Revenue 5,935 (18)% • Damas Largest Contributor Down 18% or 395m In Sales Driven By Softness In UAE 4,886 Luxury Segment • Qatar Sales Impacted by Slowdown in Qatar Projects Momentum; Heavy Equipment And Energy And Industrial Markets Falling 33% •
Slide 7: Revenue Pressure Across Group Results In Minor Shift To ICT
Revenue Pressure Across Group Results In Minor Shift To ICT Revenue Mix FY ‘15 FY ‘16 All Other All Other 14% 13% Auto 22% Auto 23% Damas Damas 35% ICT 31% ICT 28% 35% 7
Slide 8: Growth In International Profits Driven By GFI Informatique
Growth In International Profits Driven By GFI Informatique Net Profit 41% 44% Int’l • Shift To International As GFI Informatique Contribution Offsets Damas Shortfall 59% 56% Qatar FY '15 FY '16 8
Slide 9: Solid Margin Performance Across the Group
Solid Margin Performance Across the Group QAR m Gross Profit Gross Profit Margin % (12)% 24.2% +1.6pts 1,342 22.6% 1,185 FY '15 FY '16 FY '15 FY '16 • Auto Group Growth Driven By Mix Shift To After 2016% V pts Sales Auto Group 20.6% 3.2 pts • ICT Upside From Improved Productivity And Strong Project
Slide 10: GFI Acquisition Moves ICT To Over 40% Of Group Profits
GFI Acquisition Moves ICT To Over 40% Of Group Profits Net Profit Mix FY ‘15 FY ‘16 All Other Axiom 8% (5)% All Other Axiom, 17% Auto 17% Auto 18% (2)% Damas ICT 32% 29% ICT 40% Damas 37% GFI 7% 10
Slide 11: Other Income Growth Due to Continued Recoveries in Damas
Other Income Growth Due to Continued Recoveries in Damas QAR m Other Income 223 +48% • Other Income driven by significant items in Damas; recoveries of previously 151 provisioned receivables in Damas of 80m, up from 59m in prior year. • Investment properties contributed 35m in FY’16, down from 40m F
Slide 12: Damas Jewellery
Damas Jewellery QAR m Revenue Net Profit* • Reduction in net profit driven by (19)% 395m reduction in sales resulting in 2,097 109m fall in gross profit 196 (26)% • Restructuring actions lead to 70m 1,702 146 of operating expense reduction over 2 years • Gold mix falls 2pts to 52% resulting in 0.3 p
Slide 13: Information & Communication Technology Group
Information & Communication Technology Group QAR m • GFI acquisition contributed 37m Revenue Net Profit share of profit from associate 24% • Qatar organic net profit growth of (9)% 1,652 211 2% reflects slowdown in local 1,499 market 170 • 1.3B of Orders in FY’16 up 4% from prior year; 1.0B backlog
Slide 14: Gfi Informatique (France)
Gfi Informatique (France) (Euro €m) • Acquired 51.24% stake during Revenue Net Profit Q2’16 46% • Revenue growth of 14% driven 14% 32 by organic growth of 8%, 1,015 894 strongest since 2009, leading to 22 46% growth in net profit • Acquisitions of Impaq in Eastern Europe, Efron in Spain and South Am
Slide 15: Auto Group
Auto Group QAR m Revenue Net Profit • Revenue pressure across group (8)% following Heavy Equipment 1,351 (21)% 88.1 boom during 2014-2015; 81.1 1,071 Revenues fall of 33% • Auto Units sold down 23% driven by Yukon/Escalade launch boosting 1H’15 and softness in local market experienced since 2H’15 •
Slide 16: Axiom Telecom
Axiom Telecom QAR m Share of Associate Net Profit Contribution • Major restructuring actions Net Profit* taken in 2016 to reduce losses from underperforming UAE Retail (2.9) • Market normalising through consolidation and reduction of number of distributers in market (15.2) • 2017 break-even on norma
Slide 17: Energy & Industrial Markets
Energy & Industrial Markets QAR m Revenue Net Profit • Revenue fall driven by run-off of infrastructure projects, in 501 74.4 particular mega-reservoir (33)% (43)% deliveries executed in 2015 337 • Sharp decline in Gas Turbine 42.2 Services revenues from O&G • HVAC division delivered 4% revenue grow
Slide 18: Geotechnical Services
Geotechnical Services QAR m Revenue Net Profit (37)% (15)% 18.2 • Revenue down 15% due to fall 97 in Geotechnical and Drilling 82 projects as infrastructure 11.5 projects slow in Qatar • Laboratory Services maintaining revenue and profit growth; expanded premises to fit increased demand FY '15 FY '1
Slide 19: Travel Division
Travel Division QAR m Revenue Net Profit • Drop in revenue driven by lower ticket sales coupled with (18)% (54)% reduction in average ticket price 43 36 • Lower revenues reduce capacity 14.7 to reach airline incentive targets • Continued pressure on ticket 6.7 service fees driving deterioration • Re
Slide 20: Engineering
Engineering QAR m Revenue Net Profit 91 (28)% • Continued revenues pressure stemming from challenging Oil & 65 Gas sector and overcapacity in market FY '15 FY '16 0.3 • Continue to restructuring business; in process of consolidating Salwa workshop (0.1) into Ras Laffan site to reduce overcapacity an
Slide 21: Logistics
Logistics QAR m Revenue Net Profit 12% 7.2 • Fall in revenues due to 49 6.4 reduction of low returning (29)% freight-forwarding business 35 • Focus of business on more profitable warehousing segment; New Warehouse to open in 1H’17 FY ' 15 FY ' 16 FY '15 FY '16 GP 12.0m 12.7m NP% 13.0% 20.6% GP% 24.3
Slide 22: Others
Others QAR m Revenue Net Profit 10% FY '15 FY '16 60 52 • Contains Consumer Product 54 Division, CBMFM JV and corporate activity • Significant foreign exchange- related gains due to the settlement of GFI Acquisition; 18m in 2015 and 71m in 2016 FY '15 FY '16 (20) GP 23.2m 36.8m GP% 42.9% 61.9% 22
Slide 23: GFI Acquisition Offset by Operating Cash Flows, Maintains Leverage in 50/50 Range
GFI Acquisition of 1.3B Offset by Operating Cash Flows of 519m Maintains Leverage in 50/50 Range QAR m Net Debt Net Debt to Total Capital* 3,696 53% 50% 46% 2,853 2,635 FY'14 FY'15 FY'16 FY'14 FY'15 FY'16 *Total Capital adjusted for Acquisition Reserves 23
Slide 24: Normalisation of key lines for significant items
Normalisation of key lines for significant items • Continued recoveries of previously provisions receivables in Damas • One-off foreign exchange gains related to acquisition in France • Gain on Damas property in KSA • Normalised profits up 7% in 2H’16, following fall in first half due to strong 2015
Slide 25: Mannai Corporation QPSC
Mannai Corporation QPSC Tel: +974-4455 8888 Fax: +974 4455 8880 www.mannai.com CONTACTS Investor Relations Ewan Cameron Chief Financial Officer email: investor.relations@mannai.com.qa Tel (Direct) : +974-44558844 25
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