Mm Group For Industry & International Trade · EGX:MTIE
Mm Group For Industry & International Trade — Q2 2019 Earnings Presentation
40 slides from Mm Group For Industry & International Trade's earnings presentation, 2019
Slide 1: Investor Presentation Second Quarter 2019
Investor Presentation Second Quarter 2019
Slide 2: Disclaimer
Disclaimer This Presentation is intended for information purposes only and does not constitute or form part of an offer for sale or subscription or an invitation or solicitation of an offer to subscribe for or purchase securities of any kind and neither this document nor anything contained herein sh
Slide 3: MTI at a Glance
MTI at a Glance A Leading local Distribution Giant Consolidated Financial Highlights Experience in distribution EGP mn 1H17 1H18 1H19 Y-o-Y 25+ years Revenue 2,718 3,442 5,345 55.3% 90% Geographic Footprint Gross Profit 197 252 460 82.9% 95% Population reach EBITDA 139 181 345 90.9% 40k+ Accessible
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, air conditioners and home appliances. Telecom The telecom business includes the operation of Vodafone branded retail franchises and d
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 Retail Stores 4 Branded Stores 8 Service Centers 2 Branded Bosch Stores Telecom 27,706 Points of Sale 84 Stores (owned & operated) Automotive Automotive Automotive 16 Points of Sale 4 Of which owned & operated Tractor and Pipe
Slide 7: 1st Half 2019 Financial Results Review
1st Half 2019 Financial Results Review Solid Financial growth Consolidated Financial Results Summary Revenue | EGP mn Gross Profit & Margin | EGP mn, % EBITDA & Margin | EGP mn, % Net Profit & Margin | EGP mn, % 600 0 YoY 55.3% 600 7.3% 8.6% 500 20% 0% 6.5% 450 5.3% 5,345 500 0 500 0% 400 450 50% -2
Slide 8: 2nd Quarter 2019 Financial Results Review
2nd Quarter 2019 Financial Results Review Solid Financial growth Consolidated Financial Results Summary Revenue | EGP mn Gross Profit & Margin | EGP mn, % EBITDA & Margin | EGP mn, % Net Profit & Margin | EGP mn, % YoY 35.4% 9.2% 7.9% 300 250 20% 6.6% 320 0 4.5% 6.6% 6.2% 268 250 0% 200 180 2,897 27
Slide 9: Full Year 2018 Financial Results Review
Full Year 2018 Financial Results Review Financial Overview Full Year 2018 Consolidated Financial Results Summary Revenue | EGP mn Gross Profit & Margin | EGP mn, % EBITDA & Margin | EGP mn, % Adjusted Net Profit & Margin | EGP mn, % 1 800 0 YoY 24.5% 600 7.0% 6.8% 500 20% 0% 450 700 0 7,626 500 4.9%
Slide 10: Revenue Breakdown by Line of Business
1st Half 2019 Financial Results Review Revenue Breakdown by Line of Business Consolidated Revenue Breakdown by LoB | % Standalone Revenue Breakdown by LoB | % Telecom Automotive Automotive Telecom 12.9% 10.5% Tractors & Pipers 14.1% Tractors & Pipers 12.1% 17.3% 12.1% 20.6% 20.6% 1H19 1H19 EGP 5,345
Slide 11: Gross Profit by Line of Business
1st Half 2019 Financial Results Review Gross Profit by Line of Business Consolidated Gross Profit Breakdown by LoB | % Standalone Gross Profit Breakdown by LoB | % Telecom Telecom Automotive Automotive 9.8% 26.0% 21.3% 11.9% 11.9% 23.4% 11.9% 23.4% 1H19 1H19 Tractors & Pipers Tractors & Pipers EGP 4
Slide 12: FY18 Consolidated Financial Overview
FY18 Financial Results Review Consolidated Financial Overview Full Year 2018 Revenue Breakdown by LoB | % Full Year 2018 Gross Profit Breakdown by LoB | % Telecom Auto Telecom Auto 18.9% 10.2% 22.3% Tractors & Pipers 20.6% 12.6% 12.6% 4.9% 11.9% Tractors & Pipers FY17 3.0% FY17 3.6% EGP 6,123 mn EGP
Slide 13: Consumer Electronics
21.7% CONSUMER 76.2% Of 1H19 ELECTRONICS Revenue Distribution of & smartphones in the Egyptian market, through Egypt’s largest distribution network, spanning +40,000 points of sale. MTI also offers after-sales services for smartphones. Distribution of Consumer Appliances through our network of +12,0
Slide 14: Mobiles Overview – Global Smart Phone Market
1st Half 2019 Financial Results Review Mobiles Overview – Global Smart Phone Market Global Smart phone Users Per Region | # of Users in Mns FY 2018 Global Smart phone Penetration Rate| % 4,00 0.0 3,257 64% 70% 3,50 0.0 2,995 60% 58% 2,741 60% 55% 3,00 0.0 2,491 576 537 46% 44% 50% 2,50 0.0 498 533 4
Slide 15: Mobiles Overview – Egypt Smart Phone Market
1st Half 2019 Financial Results Review Mobiles Overview – Egypt Smart Phone Market Mobile Volume Sales & Average Selling Price | # of Units in Mns, USD 5.0 185 185 195 200 .0 4.5 163 170 175 136 136 141 149 4.0 100 .0 3.5 3.0 3.2 3.3 3.3 3.2 - 2.5 3.0 3.0 3.0 3.0 2.0 2.6 (1 00.0) 2.2 1.5 1.0 (2 00.0
Slide 16: Consumer Electronics
1st Half 2019 Financial Results Review Consumer Electronics Consolidated Overview Consumer Electronics line of business which Revenue | EGP mn Gross Profit & Margin | EGP mn, % represented 76.2% of the consolidated revenues in 1H19, increased by 77.4% Y-o-Y to reach EGP 4.1 billion and the standalon
Slide 17: Consumer Electronics Full Year 2018
Full Year 2018 Results Financial Review Consumer Electronics Consolidated Overview Revenue | EGP mn Gross Profit & Margin | EGP mn, % 5,7 00 YoY 18.6% 260 5,2 00 5,362 6.8% 6.0% 0.0 % 4,7 00 210 -50.0% 4,521 4,2 00 160 3,7 00 -100.0% 3,2 00 110 -150.0% 2,7 00 60 2,2 00 -200.0% 1,7 00 10 -250.0% 1,2
Slide 18: Telecom
85.0% TELECOM 12.9% Of 1H19 Revenue Partnership with allowing MTI to act as a distributor for the prepaid scratch cards and electronic top up, as well as operating franchised Express shops +27,000 50% 84 Vodafone Scratch Cards Points of Sale Operated Vodafone Stores Market share 189 Operated Franchi
Slide 19: Telecommunication Overview
1st Half 2019 Financial Results Review Telecommunication Telecommunication Overview Revenue | EGP mn Gross Profit & Margin | EGP mn, % 748 745 742 739 736 733 730 727 724 721 718 715 712 709 706 703 700 697 694 691 688 685 682 60 10. 0% 679 676 673 709 670 667 664 661 658 655 652 690 649 646 643 7.3
Slide 20: Telecommunication Full Year 2018
Full Year 2018 Results Financial Review Telecommunication Telecommunication Overview Revenue | EGP mn Gross Profit & Margin | EGP mn, % 150 0 YoY 14.4% 80 5.0 % 4.6% 4.5 % 4.3% 70 145 0 4.0 % 66 60 140 0 1,440 3.5 % 50 54 3.0 % 135 0 40 2.5 % 130 0 2.0 % 30 1.5 % 125 0 20 1,259 1.0 % 120 0 10 0.5 %
Slide 21: Automotive
80.0% AUTOMOTIVE 10.5% Of 1H19 Revenue Largest importer and distributor of luxury cars & motorcycles in Egypt, exclusive agent for , , , & 16 #1 4 Importer and Distributor of Points of Sale Owned & Operated POS Luxury cars in Egypt
Slide 22: Automotive Overview
1st Half 2019 Financial Results Review Automotive Automotive Overview Revenue | EGP mn Gross Profit & Margin | EGP mn, % 600 120 20. 0% 500 562 17.9% 17.5% 18. 0% 100 16.6% 16.1% 16. 0% 400 421 416 14.2% 98 14. 0% 80 12. 0% 300 60 75 10. 0% 200 59 8.0 % 220 40 6.0 % 100 141 20 36 4.0 % 23 2.0 % 0 0
Slide 23: Automotive Full Year 2018
Full Year 2018 Financial Results Review Automotive Automotive Overview Revenue | EGP mn Gross Profit & Margin | EGP mn, % 140 900 YoY 160.7% 20. 0% 800 120 17.1% 14.9% 15. 0% 700 777 100 10. 0% 600 5.0 % 500 80 116 0.0 % 400 60 -5.0% 300 50 40 200 298 -10.0% 20 -15.0% 100 0 0 -20.0% 2017 2018 2017 2
Slide 24: Tractors & Pipes
TRACTORS 98.0% 0.4% Of 1H19 & PIPES Revenue Assembly and distribution of agricultural tractors, namely & ; MTI is also one of the suppliers of seamless steel pipes in Egypt 1 10 1 Tractors Assembly Line Points of Sale Owned & Operated POS
Slide 25: Tractors & Pipes Overview
Financial Results Review Tractors & Pipes Tractors & Pipes Overview | 1H19 Revenue | EGP mn Gross Profit & Margin | EGP mn, % 25 10 40. 0% 20 22 22 9 37.2% 35. 0% 8 32.9% 30. 0% 15 7 28.8% 6 7 25.7% 25. 0% 13 5 21.1% 6 20. 0% 10 4 10 15. 0% 9 3 4 4 10. 0% 5 2 2 5.0 % 1 0 0 0.0 % 2Q18 1Q19 2Q19 1H18
Slide 26: Investment in Kanawat
INVESTMENT IN Kanawat Kanawat is considered the fastest growing distributor in Egypt with a comprehensive market coverage and is one of the five authorized dealers for Samsung mobile and the second distributor of Nokia mobile phones in the Egyptian market and the exclusive distributor for the Chines
Slide 27: Investment in Ebtikar
INVESTMENT IN Ebtikar Investments supporting and complementing MTI’s core distribution business, through which invests in Non-banking Financial Institutions such as , & and . +320 52.9% 10.6% Paid in Capital in EGP mn Ownership in Ebtikar Direct Ownership in Masary +123k +3M +42M Transactions Value
Slide 28: Non Banking Financial Services
Non Banking Financial Services MTI B Investments & BPE Partners 10.6% 50.4% 49.6% Ebtikar for Financial Investment Mortgage Finance & Consumer Electronic Payment Microfinance Leasing finance 65.5% 60% 45.4% 50% • Masary is a leading • Bee is a pioneering • Ebtikar,TCV and Acquire collectively throug
Slide 29: Non Banking Financial Services Overview
1st Half 2019 Financial Results Review Non Banking Financial Services Electronics Payments Overview | 1H19 Transactions Value | EGP mn Avg. Daily Transactions Value | EGP mn Revenue & Commission | EGP mn, % Gross Profit & Margin | EGP mn, % 800 0 YoY 24.4% 45 300 150 60% 3.1% 2.8% 0% 700 0 7,629 40
Slide 30: MTI Share Performance
MTI Share Performance MTI vs EGX30 Rebased 13 12 11 10 9 EGP per Share 8 7 6 5 4 3 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 MTI EGX30 Rebased Sources: Mubasher Pro, 30
Slide 31: 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 32: 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 33: Management Biographies Cont'd
Management Biographies Cont’d Mr. Salah Mahmoud (Executive Director– Consumer Electronics) Mr. Salah has over 8 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 34: 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 35: 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 36: 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 37: Income Statement Standalone
Appendix Financial Statements - Income Statement Standalone EGP mn 1H 2019 1H 2018 Y-o-Y Revenues 3,981 3,442 15.6% Gross Profit 377 252 49.8% Gross Profit Margin 9.48% 7.31% EBITDA 279 181 54.5% EBITDA Margin 7.02% 5.25% Net Income 209 141 48.3% Net Income Margin 5.24% 4.08% 37
Slide 38: Income Statement Consolidated
Appendix Financial Statements - Income Statement Consolidated EGP mn 1H 2019 1H 2018 Y-o-Y Revenues 5,345 3,442 55.3% Gross Profit 460 252 82.9% Gross Profit Margin 8.61% 7.31% EBITDA 345 181 90.9% EBITDA Margin 6.46% 5.25% Net Income 254 159 59.2% Net Income Margin 4.74% 4.63% 38
Slide 39: Balance Sheet Consolidated
Appendix Financial Statements – Balance Sheet Consolidated EGP 000’ 1H 2019 FY 2018 Assets Cash and Cash equivalents 197,069 98,040 Current Assets 2,140,962 1,798,666 Fixed Assets 355,418 318,816 Total Assets 2,693,449 2,215,522 Liabilities & Equity Bank overdrafts 133,583 178,210 Current Liabilitie
Slide 40: 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
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