AAMAL COMPANY QSC FULL YEAR 2009 RESULTS 1
Contents • Key 2009 developments and Outlook • Financial Summary • Operations review • Summary • Additional information (breakdown by, and of, divisions) 2
Group results Key 2009 developments and Outlook Impressive results despite a challenging year • growth in both revenue and underlying profitability • driven by market leadership positions in key sectors and continued efficiency gains • strong cash generation; low gearing of 9.2% Strong performance reflects benefits of diversified strategy • offers a high quality and balanced exposure to the rapidly growing Qatar economy • designed to deliver maximum growth at minimum risk Continued confidence in the Aamal growth story • Launch of new revenue streams across the transport, construction and business services sectors in early 2010 • Announcement of new divisional structure to better reflect operations 3
Group results Financial Summary QARm 2009 2008 % change Revenue 705.2 651.0 8.3% Gross Profit 286.1 247.7 15.5% Gross profit margin % 40.6% 38.0% 260 basis points Net profit before fair value 181.1 153.1 18.3% gains on investment properties Net profit margin % 25.7% 23.5% 220 basis points Fair value gains on 68.5 472.1 (85.5)% investment properties Net profit 249.6 625.2 (60.1)% Gearing* 9.2% 6.0% * Total net debt to total net debt plus equity 4
Group results Net profit (before property revaluations) Net profit (ex-property revaluations) & margin (rhs) • Operating profit increasing 200 30.0% year on year 181.1 • 180 2009 saw margin growing to a 153.1 very healthy 25.7% 160 • 25.7% QARm Net profit ex-property 126.9 25.0% 140 revaluations now make up 23.7% 23.5% 73% of total net profit (vs. 24% 120 in 2008) 100 80 20.0% 2007 2008 2009 5
Operations review Divisional Breakdown Property Management and Development • In the year, City Center achieved an occupancy rate of 100% • Significant new retail tenants at City Center included Vodafone Qatar, Jack & Jones and Hippopotamus • Aamal Real Estate successfully completed the refurbishment and retail organisation of Souq Al Nijma and commenced the construction of several residential compounds around Doha 6
Operations review Divisional Breakdown Trading & Distribution • Against a challenging macro backdrop, Aamal Trading increased its net margin to 14.9% • Aamal Medical increased both its revenue, by 32% and its net margin, from 8.7% to 11.7%, such that its net profit increased by almost 77% • Aamal Medical grew market share in new areas such as Radiotherapy and Endoscopy, whilst maintaining its market share in all Pharmacy and Operating Theatre specialities • New initiatives for Aamal Medical included the introduction of Pharmacy Automation as a new standard for modern hospitals and Integrated Operating Theatres as a new concept • Ebn Sina Medical grew its revenue by almost 15%, net margins by almost 40% and net profit by almost 60% • Major new contracts won by Ebn Sina Medical include Biotronik Peripheral, Medical Rehabilitation Consultancy House, Umbra Medical Corporation, Helen of Try and Liptis Hochdorf 7
Operations review Divisional Breakdown Industrial Manufacturing • Despite an 11% fall in revenues, net profit was up almost 8% due to significant improvements in margins • During the year, Aamal Readymix finalised the construction of new maintenance facilities as well as introducing new techniques for the efficient delivery and pumping ratio of concrete • New contracts won include supplying projects at the Heart of Doha project and four towers on the Pearl Qatar • New operations were started in early 2010 with Aamal Cement Industries, Cometrans and Doha Cables 8
Operations review Divisional Breakdown Managed Services • At Aamal Services, which is essentially a cleaning and pest control business, expanded its waste management services over the year • New contracts won at Aamal Services during the year included the Supreme Council of Health, Abdullah Abdulghani & Brothers, Hemaya Security, Al Tameez and Qatari Diar • A joint venture “ ECCO Gulf ” was launched in February 2010 with Ecco Outsourcing of Egypt to provide outsourcing services (Contact Centre Services, Business Process Outsourcing Services and Training and Development Services) • Major new clients at Aamal Travel & Tourism included the Qatar Exchange and Al Hassan Group 9
Summary • Aamal Company is now firmly established as one of the region ’ s most successful conglomerates delivering the highest quality products across a range of high growth sectors, where we enjoy strong market leading positions • We operate an effective risk framework where there is a clear focus on returns on capital and capital discipline • 2010 has seen the pace of development activity increase and all our businesses are well equipped to deliver future growth and we look forward with confidence • As a result, Aamal Company offers investors a quality, balanced exposure across the entire Qatari economy to deliver maximum growth at minimum risk 10
Any further questions? Please contact: Mr. Mohamed Ramahi – Chief Financial Officer mohd.ramahi@aamal.com.qa Mr. Trevor Bailey – Head of Business Development trevor.bailey@aamal.com.qa Mrs. Arwa Goussous – Corporate Communications Manager arwa.goussous@aamal.com.qa Aamal Company Q.S.C. P.O.Box 22477 Doha-Qatar T: +974 486 4397 www.aamal.com.qa Financial PR/IR advisers Sebastian Hoyle sebastian.hoyle@citigatedr.com nick.cox-johnson@citigatedr.comk Nick Cox-Johnson Citigate Dewe Rogerson Level 15, Commercialbank Plaza P.O. Box 27111 Doha-Qatar T: +974 452 8335 www.citigatedewerogerson.com 11
ADDITIONAL DIVISIONAL INFORMATION 12
Group results Revenue by division QARm 2009 2008 Change % Property Management 181.0 160.3 12.9% and Development Managed Services 25.6 23.8 7.6% Trading and Distribution 381.3 325.7 17.1% Industrial Manufacturing 132.2 148.3 (10.9)% less: intra divisional revenue (14.9) (7.1) Total 705.2 651.0 8.3% 13
Group results Net Profit (before property revaluations) by division QARm 2009 2008 Change % Margin Margin 2009 % 2008 % Property Management 127.2 108.1 17.7% 70.0% 67.4% and Development Managed Services 5.8 6.3 (7.9)% 22.6% 26.6% Trading and Distribution ` 46.0 33.5 37.3% 12.1% 10.3% Industrial Manufacturing 22.4 20.8 7.7% 16.9% 14.0% less: intra divisional net profit (20.3) (15.3) Total 181.1 153.1 18.3% 25.7% 23.5% 14
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