Mannai Corporation Q.p.s.c. · QSE:MCCS

Mannai Corporation Q.p.s.c — Q1 2016 Earnings Presentation

14 slides from Mannai Corporation Q.p.s.c's earnings presentation, 2016

  1. Slide 1: Mannai Corporation QSC 1Q'16 Financial Summary

    Mannai Corporation QSC 1Q‘16 Financial Summary

  2. Slide 2: Disclaimer

    Disclaimer Mannai Corporation Q.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 wishes

  3. Slide 3: Net Profit Decline Driven by Damas Revenue Headwinds

    Net Profit Decline Driven by Damas Revenue Headwinds QAR m Net Profit • First quarter profits normalising to pre-2015 165 levels following strong 1H’15 (24)% 125 • Damas revenue down 29%; driving 60% reduction in net profit • ICT continues double digit growth up 12% • Auto Group flat despite challen

  4. Slide 4: Financial Highlights

    Financial Highlights QAR m 1Q’15 1Q’16 Net Profit 165m 125m (24)% Revenues 1,615m 1,268m (21)% Gross Profit % 23.8% 24.5% 0.7 pts Net Profit % 10.2% 9.8% (0.4)pts Capital Employed 5,143m 4,961m (4)% Earnings Per Share 3.62 2.74 (24)% Return on Equity 31.8% 21.2% (10.6)pts 4

  5. Slide 5: Continued track record of solid double digit growth

    Continued track record of solid double digit growth QAR m Net Profit Trend Growth Rate 165 21% 150 125 87 68 75 65 51 36 22 2007 2008 2009 2010 2011 2012 2013 2014 20152 2016 5

  6. Slide 6: Revenue fall of 21% driven by Luxury Retail Softness in Dubai

    Revenue fall of 21% driven by Luxury Retail Softness in Dubai QAR m Revenue 1,615 • Damas revenues slowed 29% due to softness in luxury retail. Gold revenues (21)% down 30% mainly due to rising gold prices 1,268 resulting in lower demand • Trend in line with market data on credit card spend in UAE;

  7. Slide 7: Shift of Revenue to Better Performing ICT

    Shift of Revenue to Better Performing ICT Revenue Mix 1Q‘15 1Q‘16 Auto Auto Group All Other Group All Other 21% 14% 20% 15% ICT 28% ICT 32% Damas Damas 37% 34% *Auto Group includes Heavy Equipment Division 7

  8. Slide 8: Softness in Damas reduces international share

    Softness in Damas reduces international share Net Profit* 29% 47% • 18pts shift to Qatar-based profits, 71% of total Int’l 71% 53% Qatar 1Q '15 1Q '16 *Profit before headquarter expenses and director’s fees

  9. Slide 9: Growth in Gross Margins Softens Impact of Drop in Revenue

    Growth in Gross Margins Softens Impact of Drop in Revenue QAR m Gross Profit Gross Margin % (19)% 24.5% +0.7 pts 23.8% 385 311 1Q'15 1Q'16 1Q'15 1Q'16 1Q’16% V pts • Reduction in Gross Profit driven by lower revenue, Auto Group 21.0% 3.0 pts offset by improved margins ICT 18.6% 3.3 pts • Auto Group

  10. Slide 10: Other Income Increase Due to Damas Recoveries

    Other Income Increase Due to Damas Recoveries QAR m Other Income 26 20 • Other Income driven by recoveries of previously provisioned receivables in Damas of 23m up from 14m in 1Q’15 1Q '14 1Q '15 10

  11. Slide 11: Net Profit Share Movement to Qatar-Based Businesses

    Net Profit Share Movement to Qatar-Based Businesses Net Profit Mix 1Q’15 1Q‘16 Auto Auto 7% 9% All Other 20% All Other Axiom 0% 27% ICT 25% Axiom 1% ICT 37% Damas Damas 48% 26% *Profit before headquarter expenses and directors fees 11

  12. Slide 12: Stable Debt Levels Maintained During First Quarter

    Stable Debt Levels Maintained During First Quarter QAR m Net Debt Net Debt to Total Capital* 3,092 52% 50% 52% 2,635 2,655 Q1' 15 Q4 '15 Q1 '16 Q1 '14 Q4 '14 Q1 '15 *Total Capital adjusted for Acquisition Reserves 12

  13. Slide 13: Normalisation of key lines for significant items

    Normalisation of key lines for significant items • Recoveries of previously provisioned receivables from Damas were the only significant items in 1Q’16. This is up from Q1’15. • Q1’15 impacted by late adjustments to Axiom’s 2014 net profit share which was booked after the Mannai close • Adjusting fo

  14. Slide 14: Mannai Corporation QSC

    Mannai Corporation QSC 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 14

Mannai Corporation Q.P.S.C. — Q1 2016 Earnings Presentation on 6ix