FULL YEAR 2017 RESULTS 1 Contents Key Full Year 2017 - PowerPoint PPT Presentation

AAMAL COMPANY Q.P.S.C. FULL YEAR 2017 RESULTS 1

Contents • Key Full Year 2017 developments • Financial Summary • Segmental Review • Summary and Outlook • Additional information (breakdown by Segments) 2

Key FY 2017 developments • Growth momentum maintained - Earnings per share up 9.6% • Dividend of QAR 0.60 a share proposed - Equivalent to 6% of paid-up share capital - Subject to approval at the AGM, 22 April 2018 • Qatar’s response to the embargo - Despite the challenges created, Qatar is proving its robustness - Testimony to the resilience of the Qatari economy and its people, combined with strong and stable national leadership • Aamal’s response to the embargo - Practical and resourceful - Strength through diversity • Investing for future growth - First mover advantage, able to move quickly and decisively - Significant financial firepower - Allied to organic growth and partnership opportunities 3

Financial Summary QARm FY 2017 FY 2016 % change Revenue 1,604.2 2,829.1 (43.3)% • YoY comparisons Net profit before share of net profit of 421.0 499.2 (15.7)% distorted due to change associates and joint ventures accounted for using the equity method in consolidation April 1 and FV gains on investment properties 2017 (effects will reverse Net underlying profit margin % 26.3% 17.6% +8.7 ppts Q1 2019) • Eps most relevant Share of net profit of associates and 102.0 60.2 +69.4% joint ventures accounted for using the performance indicator, up equity method 9.6% Fair value gains on investment 0.0 0.9 (100.0)% properties • Excellent result against challenging backdrop Total Company net profit 523.1 560.2 (6.6)% Less: non controlling interests (22.1) (98.0) (77.4)% Attributable to Aamal shareholders 500.9 462.3 +8.3% Earnings per share (QR) 0.80 0.73 +9.6% 4

Sales breakdown • Up to 2017, Industrial Manufacturing steadily increased its share of overall revenue, Total Revenue (by Segment) driving Aamal’s growth 2,882.0 3,100 2,829.2 • 3.4% Change in accounting treatment 2,700 2.4% 11.3% 11.2% adversely distorts 2017 year-on- 2,139.1 2,122.6 2,300 year comparison 27.0% 23.0% 3.0% 4.1% 13.5% 12.3% 1,900 1,606.2 6.1%  Senyar Industries and 27.6% 1,500 QAR million 34.1% 20.0% Advanced Pipes and Casts 1,100 Industries now equity 64.0% 39.4% 60.8% 700 accounted for, so their 59.4% 53.0% -1.5% revenue contributions are 300 -1.7% -1.7% 36.2% -3.6% -3.4% excluded -100 2013 2014 2015 2016 2017 • Industrial Manufacturing Industrial Manufacturing Trading and Distribution continues to be the principal Property Managed Services driver to Aamal’s growth, less: inter-divisional revenue profitability and shareholder return 5

Net profit breakdown Net profit, ex-FV gains (by Segment) 559.4 • Up to 2017, Industrial 600 523.0 521.4 Manufacturing steadily 1.1% 1.8% increased its share of 1.3% 500 overall net profit (as with 46.2% 348.5 revenue), again driving 51.3% 52.8% 2.4% 400 Aamal’s growth 1.9% 267.2 QAR million 300 • Industrial Manufacturing’s 64.1% 21.4% share fell back to 32.1% in 22.2% 75.1% 2017 200 28.2%  reflection of supply sourcing 33.0% 37.6% 100 32.1% issues due to the continuing 32.4% 24.8% 14.8% 8.5% blockade; now largely 0 resolved 2013 2014 2015 2016 2017 -7.0% -6.9% -6.9% -14.3% -100 -17.9% Industrial Manufacturing Trading and Distribution Property (ex-FV gains) Managed Services less: Head Office costs 6

Rising profitability Net profit (ex-FV gains) and margin %, for fully consolidated operations • Net profit margins have 600 28.0% 559.4 523.1 been on a steadily rising 521.3 26.3% 60.2 500 42.4 trend over the years 24.0% 102.0 400 348.5 QAR million 18.1 % margin • 20.0% However, 2017 gain 17.6% 16.6% 300 267.2 distorted by change in the 499.2 18.5 16.0% 15.4% 478.9 consolidation method of 421.0 200 11.7% 330.4 two industrial 12.0% 100 manufacturing entities 248.7 0 8.0% (lower than company 2013 2014 2015 2016 2017 average margins) Axis Title Fully consolidated profits Equity accounted for profits Margins % (RHS) nb. consolidated net profit margins exclude equity accounted for profits, along with any fair value gains on investment properties 7

Segmental review – Industrial Manufacturing QARm FY 2017 FY 2016 % change Revenue 582.2 1,811.7 (67.9)% Net profit - fully consolidated 71.2 156.5 (54.5)% activities Net underlying profit margin % 12.2% 8.6% +3.6 ppts Share of net profit of 96.6 53.9 +79.2% associates and joint ventures accounted for using the equity method Total net profit 167.8 210.4 (20.2)% • Year-on-year comparisons distorted by change in accounting presentation (hard to make valid y-o-y comparisons) • Most relevant figure is total net profit, fell 20.2% y-o-y: due to delays with sourcing raw materials and fulfilling customer orders on account of the continuing blockade  issues now largely rectified with alternative sourcing and expansion of warehouse storage facilities • Launch of three major new industrial projects in January 2018, due to come onstream by end 2018 and 2019  will be first of their kind in Qatar, Aamal to become the only integrated cable manufacturer 8

Segmental review – Trading & Distribution QARm FY 2017 FY 2016 % change Revenue 633.3 649.9 (2.5)% Net profit 116.2 119.8 (3.0)% Net profit margin % 18.3% 18.4% (0.1) ppts • Marginal decline in revenues leading to small decline in net profit (margins flat) • Ebn Sina Medical  increase in sales due to new agreements signed with leading international pharma  established alternative sources of supply, expanded domestic warehouse capacity and automated many internal processes • Aamal Medical  drop in sales more than offset by margin expansion  rotation into higher margin businesses at expense of lower margin • Aamal Trading and Distribution  expansion of operations: opened two “First Stop” automotive centers - introduced “Dial a Tire Service” - launched Qatar’s first Bridgestone Fleet Point Center - 9

Segmental review – Property QARm FY 2017 FY 2016 % change Revenue 320.9 317.9 +1.0% Net profit - fully consolidated 262.6 252.1 +4.2% activities Net underlying profit margin % 81.8% 79.3% +2.5 ppts Share of net profit of 5.5 6.3 (13.3)% associates and joint ventures accounted for using the equity method Total net profit 268.1 258.4 +3.8% • City Center Doha  remains Doha’s premier shopping mall  strengths all too evident against a weaker consumer backdrop, prime location in West Bay  Phase 2 expansion works on track and within budget (completion expected later this year) • Aamal Real Estate  rise in both sales and margins  expansion plans - 63 residential apartment building due for completion Q3 2018, on track and within budget - purchase of three residential compounds early 2018, all in prime Doha locations 10

Segmental review – Managed Services QARm FY 2017 FY 2016 % change Revenue 95.3 97.4 (2.2)% Net profit 7.0 9.8 (28.1)% Net profit margin % 7.3% 10.1% (2.8) ppts • Marginal decline in revenue matched with significant margin contraction led to 28.1% fall in net profits • Aamal Travel  strategic decision to focus on cash sales to minimise risk of defaults  signs of recovery vis à vis economic blockade (“staycations” and international pushing of Qatar’s tourism credentials) • ECCO Gulf  revenue growth helped to offset contraction at Aamal Travel  expansion of existing activities (banking and government sectors), entered new sectors (retail and technology)  scale becoming increasingly important (cost to serve, breadth of service offering) • Aamal Services  strategy to improve sales mix through newer and higher margin contracts (flat revenues, 2x net profits) 11

Capex and Financing Net financial gearing Net capex vs. operating cash flow 7% 1000 6.4% 6% 768.7 Net debt / total capital 800 5% QAR million 4.4% 4% 600 3.6% 3% 388.1 355.5 400 2.3% 2% 228.8 220.0 156.1 128.0 1% 114.6 200 106.5 91.8 0% 0 2013 2014 2015 2016 2017 -1% 2013 2014 2015 2016 2017 -1.4% -2% Net Capex Operating cash flow • Net capital expenditure easily and consistently covered by operating cash flow, resulting in positive free cash flow either retained for subsequent reinvestment into the business and/or distributed by way of dividends • Net financial gearing on downward trend, net cash position end-2017 12

Summary and Outlook • Very strong performance from Aamal despite obvious headwinds • Qatar has responded well to the challenges presented • Aamal is at the heart of this national resilience • Exposure across the economic spectrum, market leading positions • Quick to adapt and identify opportunities ahead of others • Significant financial firepower • Well positioned for future growth 13

Any further questions? Please contact: Aamal Company Mohammad Ramahi (Chief Financial Officer) mohd.ramahi@aamal.com.qa Arwa Goussous (Corporate Communications Manager) arwa.goussous@aamal.com.qa Arwa Hamdieh (Investor Relations and Compliance Manager) arwa.hamdieh@aamal.com.qa T: +974 4422 3888 www.aamal.com.qa Financial PR/IR advisers Nick Cox-Johnson nick.cox-johnson@citigatedewerogerson.com T: +44 20 7638 9571 www.citigatedewerogerson.com 14

APPENDIX BREAKDOWN BY SEGMENT 15