Mezzan Holding Company Kscc · KSE:MEZZAN

Mezzan Holding Company Kscc — Mezzan Holding Company — Q3 2019 Earnings Presentation

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

  1. Slide 1: Q3 2019 Earnings Presentation

    Q3 2019 Earnings Presentation November 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 Tailwinds & Headwinds For Families 9m 2019 Highlights Historical Performance Financial Review Q&A 3

  4. Slide 4: Mezzan Today: Tailwinds

    Mezzan Today: Tailwinds ➜ ➜ ➜ Strong performance in Food Manufacturing and Distribution, Food ➜ Services, as well as non-Food FMCG segment. ➜ Pickup in energy drink sales and ramp up of new manufacturing line is generating healthy pickup in UAE profitability ➜ ➜ Rebound of Catering profitability und

  5. Slide 5: Mezzan Today: Headwinds

    ➜ ➜ Mezzan Today: Headwinds ➜➜ Continue investing behind in house distribution and listing fees for KSA operation ➜ Pressure continues in the Qatari bottled water market given capacity surplus, albeit countered by chips production ➜ Increased finance costs given recent healthcare acquisition ➜ ➜ ➜ ➜

  6. Slide 6: Mezzan Today: Highlights

    Mezzan Today: Highlights KD Millions 9m EBITDA (2016-2019) Q3’19 Q3’18 Change 9m’19 9m’18 Change KD Millions Revenue 54.8 52.0 +5.3% 169.8 161.5 +5.2% 18.8 17.7 Gross Profit 12.4 10.4 +19.4% 38.7 35.1 +10.4% 16.1 14.6 EBITDA 4.9 3.4 +42.8% 17.7 14.6 +21.1% Net Profit Attributable to Equity 1.8 1.2 +49

  7. Slide 7: Mezzan Today: Historical Performance

    Mezzan Today: Historical Performance As of September 30th for each year KD Millions Revenue Gross Profit Net Profit* 169.8 40.0 40.6 13.1 38.7 161.5 156.2 157.6 35.1 10.1 9.1 8.0 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 Revenue grew by c.5.3% on the Profit margins increased by Oper

  8. Slide 8: Financial Review

    Financial Review 8

  9. Slide 9: Revenue: Contribution by Business Line

    Revenue: Contribution by Business Line FOOD REVENUE +3.8% NON-FOOD REVENUE +8.9% Vs. 9m’18 Vs. 9m’18 72.1% Share of of total Group 27.9% Share of of total Group Revenue Revenue The reported numbers include the impact of IFRS 16 of KWD766k that became effective from Jan 1, 2019. There was no change i

  10. Slide 10: Revenue: Growth by Business Division

    Revenue: Growth by Business Division Vs. 9m’18 Manufacturing FOOD &Distribution 48.9% of Group revenue +7.0% +3.8% Catering 15.8% of Group revenue -7.8% +5.3% Services 7.4% of Group revenue +11.6% NON-FOOD FMCG & +8.9% Healthcare 25.7% of Group revenue +10.7% Industrials 2.2% of Group revenue -8.1%

  11. Slide 11: Revenue: Contribution and Growth by Country

    Revenue: Contribution and Growth by Country Vs. 9m’18 Kuwait UAE Qatar KSA Jordan Afghanistan Iraq 70.2% 11.5% 10.1% 2.1% 2.4% 3.0% 0.7% +3.4% +9.9% +7.2% +16.3% +10.6% +24.0% -25.9% Strong growth in Recovery of sales of Strong performance Listing and increased Increased by service Increased by serv

  12. Slide 12: P&L

    P&L KD Millions Q3’19 Q3’18 Change YTD’19 YTD’18 Change Revenue 54.8 52.0 +5.3% 169.8 161.5 +5.2% Gross Margin 12.4 10.4 +19.4% 38.7 35.1 +10.4% GM% 22.7% 20% 22.8% 21.7% SG&A -9.5 -8.5 +12.3% -26.6 -24.7 +7.6% Others -1.0 -0.8 +27.4% -2.6 -2.0 +29.7% Underlying profit before tax 2.0 1.2 +65.4% 9.5 8

  13. Slide 13: Cash flow

    Cash flow KD Millions Q3’19 Q3’18 Diff YTD’19 YTD’18 Diff Operating Cash Flow 5.6 3.7 1.9 18.7 15.5 3.2 before WC changes Working Capital -2.4 0.3 -2.7 -13.5 -6.0 -7.5 Operating Cash Flow 3.2 4.0 -0.8 5.2 9.5 -4.3 CAPEX / Other investing -23.7 -1.6 -22.1 -26.1 -8.0 -18.1 activities Cash Flow before fin

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

    Balance Sheet as of September 30th KD Millions Total Assets Equity Net Debt Net Debt to Capitalization KD Millions KD Millions KD Millions % 266.8 110.4 75.4 40.6% 107.3 108.6 102.4 29.7% 220.5 223.8 27.2% 26.5% 206.3 45.8 38.3 38.7 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 2016 20

  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

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