Mm Group For Industry & International Trade · EGX:MTIE
Mm Group For Industry & International Trade — Q2 2018 Earnings Presentation
30 slides from Mm Group For Industry & International Trade's earnings presentation, 2018
Slide 1: Corporate Presentation Second Quarter 2018
Corporate Presentation Second Quarter 2018
Slide 2: Disclaimer
Disclaimer MM Group for Industry and International Trade S.A.E (MTI) give notice that: The particulars of this presentation do not constitute any part of an offer or a contract. The information contained in this presentation may contain certain projections and forward‐looking statements that reflect
Slide 3: Introduction to the Company
Introduction to the Company A local Distribution Giant The Company in numbers MTI was established in 1992 and is one of Egypt’s largest distribution companies by geographic coverage with access to over 40,000 20+ years Experience in distribution points of sale. 90% Geographic Footprint Diversifi
Slide 4: Line of Business
Line of Business Product Segment Brand Portfolio Consumer Electronics The consumer electronics business currently includes distribution of mobile phones, televisions, and air conditioners. Telecom The telecom business includes the operation of Vodafone branded retail franchises and distribution of m
Slide 5: History of Growth
History of Growth MTI becomes a non-exclusive Samsung approached MTI to MTI started distribution of distributor to SIEMENS, becomes become a distributor in the Huawei mobile phones Starts trading Siemens cell phones one of the major NOKIA dealers mobile phone business Consumer 2017 2018 1996 2002 20
Slide 6: Distribution Network
Distribution Network Consumer Electronics 11,968 Points of Sale 5 Samsung express Stores 3 Brand Stores 8 Service Centers 2 Branded Bosch Stores Telecom 27,706 Points of Sale 55 Stores (owned & operated) Automotive Automotive Automotive 16 Points of Sale 4 Of which owned & operated Tractor and Pipes
Slide 7: 2nd Quarter Results Financial Review
2nd Quarter Results Financial Review Financial Overview 2nd Quarter 2018 Financial Results Summary Revenue | EGP mn Gross Profit & Margin | EGP mn, % EBITDA & Margin | EGP mn, % Net Profit & Margin | EGP mn, % 250 0 20% 160 20% 200 8.1% 6.6% 6.2% 4.5% 4.1% 0% 140 1.9% 0% 200 0 120 120 20% 150 1,808
Slide 8: Financial Overview – Revenue Breakdown
2nd Quarter Results Financial Review Financial Overview – Revenue Breakdown 2nd Quarter 2018 Revenue Breakdown by LoB | % 1st Half 2018 Revenue Breakdown by LoB | % Telecom Telecom Consumer Consumer Electronics 20.7% Electronics 20.6% 2Q17 1H17 26.0% EGP 1,257 mn EGP 2,718 mn 23.9% 71.7% 68.9% 2Q18
Slide 9: Financial Overview – Gross Profit Breakdown
2nd Quarter Results Financial Review Financial Overview – Gross Profit Breakdown 2nd Quarter Gross Profit Breakdown by LoB | % 1st Half Gross Profit Breakdown by LoB | % Telecom Telecom 13.3% 11.9% Consumer 25.1% Consumer Electronics Electronics 2Q17 30.0% 1H17 12.7% EGP 52 mn Auto EGP 196 mn 23.4%
Slide 10: Consumer Electronics
CONSUMER ELECTRONICS Distribution of & smartphones in the Egyptian market, through Egypt’s largest distribution network, spanning +40,000 points of sale Distribution of Consumer Appliances through our network of +12,000 retail outlets, products include & ACs, TVs & the entire lineup 34.4% 2Q18 Reven
Slide 11: Mobiles Overview – Smart Phone Market
2nd Quarter Results Financial Review Mobiles Overview – Smart Phone Market Smart Phone Volumes Sold | 000’ Units Smart Phone Value Sold & Price | EGP mn, EGP 3,30 0 3,50 0 3,040 3,016 3,038 3,10 0 2,952 12,0 00 2,874 3,020 2,459 2,507 2,629 2,416 2,50 0 2,90 0 2,796 1,959 2,70 0 2,573 10,0 00 1,431
Slide 12: Consumer Electronics Overview
2nd Quarter Results Financial Review Consumer Electronics Consumer Electronics Overview – 2Q18 Revenue | EGP mn Gross Profit & Margin | EGP mn, % 120 140 0 3.1% 8.4% 5.3% 0.0 % 120 0 100 1,203 -50.0% 100 0 1,092 80 91 -100.0% 800 64 867 60 -150.0% 600 40 -200.0% 400 20 27 -250.0% 200 0 0 -300.0% 2Q1
Slide 13: Telecommunication
TELECOMMUNICATION Partnership with allowing MTI to act as a distributor for almost half of the prepaid scratch cards in Egypt, as well as operating franchised Express shops 79.3% 2Q18 Revenue 20.7%
Slide 14: Telecommunication Overview
2nd Quarter Results Financial Review Telecommunication Telecommunication Overview – 2Q18 Revenue | EGP mn Gross Profit & Margin | EGP mn, % 60 4.2 % 380 4.2% 370 4.2% 4.2 % 375 50 4.1 % 360 350 40 4.1% 4.1 % 4.1 % 30 340 4.1 % 330 335 20 4.1 % 320 327 4.0 % 10 14 16 310 13 4.0 % 300 0 4.0 % 2Q17 1Q1
Slide 15: Automotive
AUTOMOTIVE Largest importer and distributor of luxury cars & motorcycles in Egypt, exclusive agent for , , , & 87.8% 2Q18 Revenue 12.2%
Slide 16: Automotive Overview
2nd Quarter Results Financial Review Automotive Automotive Overview – 2Q18 Revenue | EGP mn Gross Profit & Margin | EGP mn, % 60 18. 0% 250 16.3% 16.5% 16. 0% 50 200 220 14. 0% 196 40 11.6% 12. 0% 150 10. 0% 30 36 8.0 % 100 20 6.0 % 23 4.0 % 50 10 54 9 2.0 % 0 0 0.0 % 2Q17 1Q18 2Q18 2Q17 1Q18 2Q18 A
Slide 17: Tractors & Pipes
TRACTORS & PIPES Assembly and distribution of agricultural tractors, namely & ; MTI is also one of the largest suppliers of seamless steel pipes in Egypt 95.0% 2Q18 Revenue 0.6%
Slide 18: Tractors & Pipes Overview
2nd Quarter Results Financial Review Tractors & Pipes Tractors & Pipes Overview – 2Q18 Revenue | EGP mn Gross Profit & Margin | EGP mn, % 6 39. 0% 14 37.0% 34. 0% 12 5 10 12 29.3% 29.5% 29. 0% 4 10 10 24. 0% 4 8 3 4 3 19. 0% 6 2 14. 0% 4 1 2 9.0 % 0 0 4.0 % 2Q17 1Q18 2Q18 2Q17 1Q18 2Q18 Tractors & P
Slide 19: Non Banking Financial Services
Non Banking Financial Services MTI B Investments 10.6% 55% 45% Ebtikar for Financial Investment Mortgage Finance & Consumer Electronic Payment Microfinance Leasing finance 33.7% 60% 37% 50% • Masary is a leading • Bee is a pioneering • Ebtikar,TCV and Acquire collectively through • Vitas Egypt acqui
Slide 20: Investment Highlights
Investment Highlights Strong distribution platform • Strong distribution and retail network with nationwide geographical coverage and access to over ~40,000 points of sale, constituting a high entry Tracking & ~40k barrier to the market monitoring points of systems sale Diverse portfolio of products
Slide 21: MTI Share Performance
MTI Share Performance MTI vs EGX30 Rebased 19 180 MTI Turnover MTI EGX30 Rebased 18 170 160 17 150 16 140 15 130 14 120 13 110 100 EGP per Share 12 EGP mn 90 11 80 10 70 9 60 8 50 40 7 30 6 20 5 10 4 - Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18
Slide 22: Management Biographies
Management Biographies Mr. Khaled Mahmoud (Executive Chairman and CEO) Mr. Khaled Mahmoud has over 30 years of experience in the distribution and retail businesses across various business segments. He is also an experienced investor where he invests opportunistically in private equity and investment
Slide 23: Management Biographies Cont’d
Management Biographies Cont’d Mr. Salah Mahmoud (Sales Manager – Mobile Network Operators) Mr. Salah has over 5 years of experience at MTI where he has held various positions within the sales and marketing departments including; Mobile Network Operators Sales Manager, Organized Retail Key Accounts M
Slide 24: Board of Directors Biographies
Board of Directors Biographies Mr. Khaled Mahmoud (Executive Chairman) Mr. Khaled Mahmoud has over 30 years of experience in the distribution and retail businesses across various business segments. He is also an experienced investor where he invests opportunistically in private equity and investment
Slide 25: Board of Directors Biographies Cont’d
Board of Directors Biographies Cont’d Dr. Ali Hassan Dayekh (Non-Executive Director) Dr. Ali Dayekh has over 30 years of experience in the construction and construction materials sector. He is the President and CEO at Saudi Group for Construction. He is a Member of the Advisory Board of Gulf Capital
Slide 26: Board of Directors Biographies Cont’d
Board of Directors Biographies Cont’d Ms. Yasmin Aly (Independent Director) Ms. Yasmin has more than 18 years of experience in the financial services industry, having held positions in regional investment banks including EFG-Hermes and Beltone Financial. During her tenure at Beltone, where she was D
Slide 27: Financial Statements – Income Statement Q2
Financial Statements Income Statement EGP Q2 2017 Q2 2018 Sales 1,257,341,212 1,807,788,962 Cost of Goods Sold (1,205,655,735) (1,687,772,817) Gross Profit 51,685,477 120,016,145 Margin % 4.11% 6.64% Selling & Marketing Expenses (27,404,480) (40,666,921) General & Administrative Expenses (1,803,632)
Slide 28: Financial Statements – Income Statement H1
Financial Statements Income Statement Cont’d EGP H1 2017 H1 2018 Sales 2,717,889,392 3,442,468,125 Cost of Goods Sold (2,521,313,259) (3,190,657,896) Gross Profit 196,576,133 251,810,229 Margin % 7.23% 7.31% Selling & Marketing Expenses (57,205,126) (72,238,052) General & Administrative Expenses (3,
Slide 29: Financial Statements – Balance Sheet
Financial Statements Balance Sheet EGP 4Q17 2Q18 Inventory 519,100,456 1,140,695,839 Receivables & Notes Receivable 375,388,542 495,167,612 Due from Related Parties 44,058,926 9,795,548 Advances to Suppliers 223,796,246 166,046,613 Debtors & Other Debit Balances 61,532,570 69,504,374 Non-current Ass
Slide 30: Thank you
Thank you Investor Relations Contact Information : Ashraf El Ghannam, Investor Relations and Business Development Manager Sally Kheir, Investor Relations Officer Mob. : +2 0100 555 3070 Tel. : +2 (02) 24024332 email: ir@mti-mmgroup.com Web site : www.mti-mmgroup.com
MM Group for Industry and International Trade — Q2 2018 Earnings Presentation on 6ix