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

Mannai Corporation Q.p.s.c — H1 2020 Earnings Presentation

20 slides from Mannai Corporation Q.p.s.c's earnings presentation, August 2020

  1. Slide 1: Mannai Corporation QPSC 1H'20 Financial Summary

    Mannai Corporation QPSC 1H'20 Financial Summary

  2. 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

  3. Slide 3: Impact of COVID-19 Drives First Half Loss

    Impact of COVID-19 Drives First Half Loss QAR m Net Profit • COVID-19 closures impacting revenues and earnings across all major business units 87 • Damas loss of (80)m due to lockdown of retail outlets during March to June • Information Technology loss of (56)m, down from 77m in 1H’19, as lockdown i

  4. Slide 4: Financial Highlights

    Financial Highlights QAR m 1H’20 1H’19 Revenues 5,343 5,700 (6)% EBITDA 257 536 (52)% General & Admin Expenses 622 567 10% Selling & Distribution Expenses 204 234 (13)% Finance Cost 197 205 (4)% Net Profit (203) 87 Unfav. Capital Employed 9,033 8,940 1% Earnings Per Share (0.44) 0.19 Unfav. 4

  5. Slide 5: Revenues Down 6% Due to Impact of COVID-19

    Revenues Down 6% Due to Impact of COVID-19 QAR m Revenue 5,700 (6)% • Information Technology flat at 4.5B as 5,343 acquisition of IECISA Spain adds 386m of revenue, offsetting impact of COVID-19 • Damas revenues down 253m or 42% due to GCC-wide closure of retail outlets during lockdown • Auto Group

  6. Slide 6: IECISA Acquisition and COVID-19 impact increases IT to 85%

    IECISA Acquisition and COVID-19 impact increases IT to 85% Revenue Mix 1H ‘19 1H ‘20 Other Other 4% 4% Auto Auto Damas 5% Damas 6% 10% 6% IT IT 80% 85% 6

  7. Slide 7: Spanish Acquisition Increases Europe to Two Thirds of Sales

    Spanish Acquisition Increases Europe to Two Thirds of Sales Revenue Mix 1H ‘19 1H ‘20 Other 0% Other 0% Qatar 30% Qatar 27% Europe 59% Other GCC Europe Other GCC 10% 66% 6% 7

  8. Slide 8: Gross Profit Margin Compression Due to Sales Reduction

    Gross Profit Margin Compression Due to Sales Reduction QAR m Gross Profit Gross Margin % 1,234 (12)% 1,084 21.7% (1.4) pts 20.3% 1H '19 1H '20 1H '19 1H '20 1H ‘20 V pts • Fall in Gross Profits due to 6% loss of sales due to Information Technology 19.6% (1.0) pts COVID-19 related closures reducing t

  9. Slide 9: Increase in Debt Driven by Acquisition

    Increase in Debt Driven by Acquisition QAR m Total Debt Finance Costs (4)% 7,246 7,469 6,965 205 6,316 197 1H '19 FY '19 1Q '20 1H '20 1H '19 1H '20 • Increase due to Gfi acquisition of IECISA for 992m • Interest rates trending lower reducing finance costs

  10. Slide 10: Information Technology

    Information Technology QAR m Revenue Profit Before Tax -% • Revenues flat as acquisition of 4,526 4,534 126 IECISA in Spain adds 386m, offsetting COVID-19 impact • Excluding acquisition, revenues down 9% (100)% • Ability to advance existing backlog of projects impacted by lockdown, (1) reducing acce

  11. Slide 11: Damas Jewellery

    Damas Jewellery QAR m Revenue Profit Before Tax 598 (42)% • Revenues down 253m or 42% due to GCC-wide closure of retail 345 outlets during lockdown • Post COVID-19 recovery plan (14) underway to bring Damas back to profitability (80) 1H '19 1H '20 1H '19 1H '20 GP 146.7m 76.3m NP% (2.4)% (23.2)% GP%

  12. Slide 12: Auto Division

    Auto Division QAR m Revenue Profit Before Tax (21)% 343 (63)% 24 • Strong start to the year reversed 272 by lockdown which closed retail and service facilities for 3 months 9 • Profitable result following 21% reduction on sales 1H '19 1H '20 1H '19 1H '20 GP 78.6m 60.0m NP% 7.0% 3.3% GP% 22.9% 22.0%

  13. Slide 13: Axiom Telecom

    Axiom Telecom QAR m Share of Profit 7 • Lockdown of retail outlets across unfav% UAE and KSA leads to losses compared to 1H’19 • Impairment of investment in Axiom of 284m recorded as a prior year restatement of 2H’19 (16) 1H '19 1H '20 13

  14. Slide 14: Energy and Industrial Markets

    Energy and Industrial Markets QAR m Revenue Profit Before Tax 84 6% 4.9 35% 79 • Positive revenue and profit 3.6 growth as construction and Qatar project-related activity continues during lockdown 1H '19 1H '20 1H '19 1H '20 GP 14.6m 15.3m NP% 4.6% 5.9% GP% 18.6% 18.3% Cap. Emp. 35m 42m 14

  15. Slide 15: Travel Division

    Travel Division QAR m Revenue Profit Before Tax (254)% 3.3 15 • Earnings severely impacted by travel restrictions since March 6 • Significant headcount reductions (57)% carried out to reduce losses (5.1) 1H '19 1H '20 1H '19 1H '20 GP 13.3 5.0m NP% 22.0% (79.1)% GP% 88.1% 78.0% Cap. Emp. 31m 26m 15

  16. Slide 16: Logistics

    Logistics QAR m Revenue Profit Before Tax 19 4% 4.1 (15)% 18 3.8 • Warehouse impacted by Salwa Industrial Area lockdown, leading to loss of handling revenues and fees 1H '19 1H '20 1H '19 1H '20 GP 6.8m 6.0m NP% 22.8% 18.5% GP% 37.6% 31.8% Cap. Emp. 11m 14m 16

  17. Slide 17: Engineering

    Engineering QAR m Revenue Profit Before Tax 36 • Ras Laffan location less 35 (2)% impacted during lockdown 22% allowing stable revenues and improvement in profitability compared to 1H ‘19 (4.1) (5.2) 1H '19 1H '20 1H '19 1H '20 GP 4.9 5.8m NP% (14.7)% (11.7)% GP% 13.6% 16.6% Cap. Emp. 5m 1m 17

  18. Slide 18: Geotechnical Services

    Geotechnical Services QAR m Revenue Profit Before Tax 19 17 (8)% • Lockdown of Salwa Industrial Area impacted all laboratories, employees and geotechnical drilling equipment • Outlook for 2H’20 positive after (2.8) driven by strong geotechnical project backlog (4.6) Unfav. 1H '19 1H '20 1H '19 1H '2

  19. Slide 19: Interim Condensed Consolidated Statement of Profit or Loss

    MANNAI CORPORATION Q.P.S.C INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the Period ended 30 June 2020 30 June 30 June QAR ‘000s 2020 2019 Variance V% QR '000 QR '000 vs. Last Year Fav /(Unfav) (Reviewed) (Reviewed) Revenue 5,342,844 5,700,255 (357,411) (6)% Direct costs (4,258,745)

  20. Slide 20: 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 Abayazeed Ahmed Investor Relations Officer email: investor.relations@mannai.com.qa Tel (Direct) : +974-44558844 20

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