Mannai Corporation Q.p.s.c. · QSE:MCCS
Mannai Corporation Q.p.s.c — Mannai Corporation Q.S.C. — FY2014 Earnings Presentation
26 slides from Mannai Corporation Q.p.s.c's earnings presentation, July 2017
Slide 1: Mannai Corporation QSC FY'14 Financial Summary
Mannai Corporation QSC FY‘14 Financial Summary
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
Slide 3: Strong Growth In FY'14 Net Profits; Up 18% To 526m
Strong Growth In FY’14 Net Profits; Up 18% To 526m QAR m Net Profit + 18% • Full year results up 18% driven by Damas 526 • ICT Group continues to deliver solid growth, up 446 33% across the year • Qatar business units buoyed by infrastructure investments, with double digit growth in Heavy Equipment,
Slide 4: Financial Highlights
Financial Highlights QAR m FY 2013 FY 2014 Net Profit 446m 526m 18% Revenues 5,614m 5,940m 6% Gross Profit % 20.4% 20.3% (0.1)pts Net Profit % 7.9% 8.9% 1.0 pts Average Capital Employed 4,452m 4,588m 3% Earnings Per Share 9.78 11.54 18% Return on Equity 20% 24% 4 pts 4
Slide 5: Continued Track Record of Solid Double Digit Growth
Continued Track Record of Solid Double Digit Growth QAR m Net Profit Trend 5 Yr Growth Rate 23% 526 446 400 279 231 184 2009 2010 2011 2012 2013 2014 5
Slide 6: Damas Driving Increase In International Profits
Damas Driving Increase In International Profits Net Profit* 31% 34% Int’l • 31% of core profit derived overseas • Core growth in Damas has offset reduction in Axiom’s contribution 69% 66% Qatar FY '13 FY '14 *Net Profit before significant items
Slide 7: Qatar Revenues Up 27% Offsetting Impacted of Gold
Qatar Revenues Up 27% Offsetting Impacted of Gold QAR m Revenue 6% 5,614 5,940 • Group revenue impacted by drop in gold price and demand, down by 27%, lowering Damas Revenue by 445m (16%) • Excluding gold; revenues increased by 21% • Qatar revenues Up 27%; driven by business exposed to infrastructur
Slide 8: Damas Revenue Contribution Falls to 40% as a Result of Gold
Damas Revenue Contribution Falls to 40% as a Result of Gold Revenue Mix FY ‘13 FY ‘14 Auto All Other 13% Auto 14% All Other 16% 20% ICT 22% ICT 27% Damas Damas 50% 40% 8
Slide 9: Damas Mix Shift Supporting Stable Gross Margin Across Group
Damas Mix Shift Supporting Stable Gross Margin Across Group QAR m Gross Profit Gross Margin % 1,145 1,206 5% 20.4% 20.3% (0.1)pts FY '13 FY '14 FY '13 FY '14 • Auto Group dilution driven by mix shift to new vehicles 2014% V pts • ICT holding margins in high growth, competitive market Auto 19.6% (0.4
Slide 10: Other Income Increase Due to Further Damas Recoveries
Other Income Increase Due to Further Damas Recoveries QAR m Other Income 362 • Other Income driven by significant items in 294 Damas; recoveries of previously provisioned receivables in Damas of 301m, up from 204m in FY’13 • Majority of legacy Damas receivables collected; reduced level expected in f
Slide 11: Strong Damas Result Drives Major Share of Net Profit
Strong Damas Result Drives Major Share of Net Profit Net Profit Mix FY ‘13 FY ‘14 Auto, 15% All Other Auto 19% All Other, 25% 25% Axiom (6)% ICT, 26% Axiom ICT 24% 8% Damas, Damas 40% 24% *Profit before significant items, headquarter expenses and directors fees 11
Slide 12: Damas Jewellery
Damas Jewellery QAR m Revenue Net Profit* • Strong profit contribution from (16)% 81% acquisition of minority interests and 2,798 one-off recoveries; coupled with 2,353 393 30% growth in core earnings • FY’13 Gold Revenues down 484m or 27% to 1,311m; Non-Gold 217 Revenues up 4% in line with strategy
Slide 13: Information & Communication Technology Group
Information & Communication Technology Group QAR m Revenue Net Profit • Continued double-digit growth 30% 33% across all 4 Pillars; 1.9B of 1,580 101 Orders in FY’14 & 1.5B Backlog 1,214 76 • Orders stretch full spectrum of government and private sector in Qatar, including landmark projects in sport
Slide 14: Auto Division
Auto Division QAR m Revenue Net Profit 15% (2)% • Auto revenues up 15% as a 825 60.7 59.2 result of 2H’14 launch of new 718 Yukon & Escalade models • Launched new dealerships in Turkey; opened 2 Opel and 1 Toyota dealership in Istanbul • Stable margins despite strong sales mix shift to new vehicles
Slide 15: Axiom Telecom
Axiom Telecom QAR m Share of Associate Net Profit Contribution • Axiom profits impacted by Net Profit* significant revenue drop from 37.1 25.4 Blackberry • Aggressive pricing by Samsung (53.5) to maintain market shares resulted in further gross profit weakness • One-off impairment of 29m to acquisit
Slide 16: Energy & Industrial Markets
Energy & Industrial Markets QAR m Revenue Net Profit • Strong partnership with 18% 95% 185 Saint-Gobain PAM; recent 37.8 awards for mega-reservoir 157 pipeline projects drive gross profits up 62% to 52m 19.4 • Double digit growth in HVAC division driven by Toshiba and SKM • FY’14 orders of 323m acro
Slide 17: Heavy Equipment Division
Heavy Equipment Division QAR m Revenue 51% Net Profit 17% 323 • Heavy Equipment revenue 26.4 growth of 51% driven by Qatar 22.6 infrastructure projects 215 • JCB unit sales increased 31% and Grove cranes sales increased 46%; improving market share levels across year • Gross margin down as a result F
Slide 18: Industrial Supplies and Building Materials
Industrial Supplies and Building Materials QAR m Revenue 19% Net Profit 11% 241 24.5 • Revenues up 19% driven by 22.0 Turbine repair services 203 • Gross Margin % fall as a result of sales mix within turbine repairs • Strong double digit growth in high margin Industrial Tools & FY '13 FY '14 FY '13
Slide 19: Travel Division
Travel Division QAR m Revenue Net Profit 4% • Revenues and profits impacted 2% by changes to UK visa 41 42 requirements for Qataris, 15.4 15.7 coupled with additional costs for new processing centre serving UK, Australia & Canada • Growth in underlying travel volumes, offsetting margin pressure from
Slide 20: Geotechnical Services
Geotechnical Services QAR m Revenue Net Profit • FY’14 Orders of 113m driven by 32% infrastructure projects in Qatar; driving revenue growth of 32% 77 7.6 (49)% 58 • Profits fell 49% as a result of execution challenges on one 3.9 specific Qatar project and wind-down of Oman division • Launched Joint
Slide 21: Engineering
Engineering QAR m • Revenues up 14% as new Revenue Net Profit business flows to new Ras 14% Laffan facility 38% 120 FY '13 FY '14 • Management team starting to 105 get traction on turnaround. New sales structure in place and improving pipeline • Market still challenging with (3.6) overcapacity • Fos
Slide 22: Logistics
Logistics QAR m Revenue Net Profit 30% • Revenues increase as a result 37 4.5 (12)% of increasing pricing to reflect 4.0 market rates 29 • Overall profitability impacted by loss of Qatar Logistics warehouse at Salwa industrial area • Focus primarily on internal Mannai business until new FY ' 13 FY '
Slide 23: Others
Others QAR m Revenue Net Profit • Reduced revenue due to impact 107% of warehouse fire on Home FY '13 FY '14 Appliance and Electronics 157 Division (19) • Insurance claim accounting for 76 lost inventory grosses up revenue & direct costs with no gross profit impact; reducing gross margin % FY '13 FY
Slide 24: Normalisation of key lines for significant items
Normalisation of key lines for significant items 3Q YTD'14 3Q YTD'13 VLY% Q4'14 Q4'13 VLY% FY'14 FY'13 VLY% Gross Profit 815.0 798.4 2% 390.7 346.6 13% 1,205.7 1,145.0 5% • Exceptional recoveries Gold Loss 40.1 40.1 from Damas drives high Inventory Provisions 110.0 (49.7) 60.3 Norm. Gross Profit 925
Slide 25: Increased Debt Levels to Fund Acquisition of Damas Minorities & Project-Driven Growth in Qatar
Increased Debt Levels to Fund Acquisition of Damas Minorities & Project-Driven Growth in Qatar QAR m Net Debt Net Debt to Total Capital* 2,803 2,853 51% 50% 1,973 41% Q4 '13 Q3 '14 Q4 '14 Q4'13 Q3'14 Q4'14 *Total Capital adjusted for Acquisition Reserves 25
Slide 26: Mannai Corporation QSC
Mannai Corporation QSC Tel: +974-4455 8888 Fax: +974 4455 8880 www.mannai.com CONTACTS Investor Relations email: investor.relations@mannai.com.qa Ewan Cameron Chief Financial Officer Tel (Direct) : +974-44558844 26
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