Mezzan Holding Company Kscc · KSE:MEZZAN

Mezzan Holding Company Kscc — Mezzan Holding Company — H1 2019 Earnings Presentation

16 slides from Mezzan Holding Company Kscc's earnings presentation, Aug 7, 2019

  1. Slide 1: H1'2019 Earnings Presentation

    H1’2019 Earnings Presentation August 7, 2019 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 By Families Headwinds & Tailwinds For Families H1 2019 Highlights Results Financial Review Q&A 3

  4. Slide 4: Mezzan Today: H1'19 Tailwinds

    ➜ ➜ Mezzan Today: H1’19 Tailwinds ➜ Strong performance in Food Manufacturing and Distribution, Food ➜ Services, as well as non-Food FMCG segment. ➜ Significant improvement in UAE operations following cost cutting initiatives in 2018 and early signs of recovery in the energy drinks market. ➜ ➜ Cateri

  5. Slide 5: Mezzan Today: H1'19 Headwinds

    ➜ ➜ Mezzan Today: H1’19 Headwinds ➜➜ Increased spend in KSA on listing fees and expanding distribution have slowed down profitability despite growth in sales. ➜ Pricing pressure given fierce competition in water segment in Qatar. ➜ ➜ We continued to focus on improving bottom line in our catering bus

  6. Slide 6: Mezzan Today: H1'19 Highlights

    Mezzan Today: H1’19 Highlights KD Millions Q1 EBITDA (2016-2019) Q2’19 Q2’18 Change H1’19 H1’18 Change KD Millions Revenue 52.4 50.6 +3.5% 115.0 109.4 +5.1% 13.9 12.8 Gross Profit 11.8 11.3 +4.3% 26.3 24.7 +6.5% 11.3 11.2 EBITDA 4.9 4.0 +22.8% 12.8 11.2 +14.5% Net Profit Attributable to Equity 2.2 1.8

  7. Slide 7: Mezzan Today: H1 Historical Performance

    Mezzan Today: H1 Historical Performance As of June 30th for each year KD Millions Revenue Gross Profit Net Profit 115.0 27.9 27.9 10.3 26.3 24.7 109.4 108.5 7.4 107.8 7.2 6.8 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 A strong period for both the Food Sales growth drove improvement

  8. Slide 8: Financial Review

    Financial Review 8

  9. Slide 9: H1'19 Revenue: Contribution by Business Line

    H1’19 Revenue: Contribution by Business Line FOOD REVENUE +5.0% NON-FOOD REVENUE +5.7% Vs. H1’18 Vs. H1’18 71.4% Share of of total Group 28.6% Share of of total Group Revenue Revenue 9

  10. Slide 10: H1'19 Revenue: Growth by Business Division

    H1’19 Revenue: Growth by Business Division Vs. H1’18 Manufacturing FOOD &Distribution 48.8% of Group revenue +5.7% +5.0% Catering 15.5% of Group revenue -1.4% Services 7.1% of Group revenue +16.0% NON-FOOD FMCG & +5.7% Pharma 26.4% of Group revenue +6.3% Industrials 2.3% of Group revenue -1.0% 10

  11. Slide 11: H1'19 Revenue: Contribution and Growth by Country

    H1’19 Revenue: Contribution and Growth by Country Vs. H1’18 Kuwait UAE Qatar KSA Jordan Afghanistan Iraq 71.3% 10.9% 9.9% 2.2% 2.4% 2.7% 0.7% +3.3% +9.2% +7.5% +14.2% +13.5% +32.4% -21.9% Kuwait continues to Significant Driven by strong Expansion of sales Stable performance Strong performance Slight

  12. Slide 12: H1'2019 P&L

    H1’2019 P&L KD Millions Q2’19 Q2’18 Change H1’19 H1’18 Change Revenue 52.4 50.6 +3.5% 115.0 109.4 +5.1% Gross Margin 11.8 11.3 +4.3 26.3 24.7 +6.5% GM% 22.5% 22.3% 22.8% 22.5% SG&A -8.7 -8.7 +0.1% -17.1 -16.3 -5.1% Others -0.8 -0.7 +14.6% -1.7 -1.3 -31.1% Underlying profit before tax 2.3 1.9 +21.3% 7

  13. Slide 13: H1'2019 Cash flow

    H1’2019 Cash flow KD Millions Q2’19 Q2’18 Diff H1’19 H1’18 Diff Operating Cash Flow 5.2 4.3 0.9 13.1 11.8 1.3 before WC changes Working Capital -5.1 -2.7 -2.4 -11.1 -6.3 -4.8 Operating Cash Flow 0.0 1.6 -1.6 2.0 5.5 -3.5 CAPEX / Other investing -1.2 -3.0 1.8 -2.4 -6.5 4.1 activities Cash Flow before fi

  14. Slide 14: Balance Sheet as of June 30th

    Balance Sheet as of June 30th KD Millions Total Assets Equity Net Debt Net Debt to Equity KD Millions KD Millions KD Millions KD Millions 222.7 108.9 108.5 53.1 49.0% 218.6 220.2 104.7 99.2 45.9 41.3% 42.2% 43.2 36.5% 196.1 36.2 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2

  15. Slide 15: Q&A

    Q&A 15

  16. Slide 16: 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 16

Mezzan Holding Company — H1 2019 Earnings Presentation on 6ix