Investor Presentation 9M 2019 1 www.mepco.biz 07-Nov-19 - - PowerPoint PPT Presentation

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Investor Presentation 9M 2019 1 www.mepco.biz 07-Nov-19 - - PowerPoint PPT Presentation

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Investor Presentation 9M 2019 1 www.mepco.biz 07-Nov-19 Shareholding structure and share information Shareholding ng st struct uctur ure Shar hare in informatio ation Share re Infor ormati mation on Market Tadawul, Saudi Arabia

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Investor Presentation

9M 2019

07-Nov-19 www.mepco.biz 1

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SLIDE 2

Shareholding structure and share information Shareholding ng st struct uctur ure Shar hare in informatio ation

07-Nov-19 www.mepco.biz

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23 23.2% 2% 12. 2.1% 7. 7.1% 57 57.5% 5%

Abdulkadir Al Muhaidib & Sons Co. Lafana Holding Abdullah AlMuammar Free Float

Share re Infor

  • rmati

mation

  • n

Market Tadawul, Saudi Arabia Currency SAR ISIN code SA13Q050IP16 Listing date 3 May 2015 Financial year end 31 December Authorized capital (SAR) 500,000,000 Issued shares 50,000,000 Paid capital (SAR) 500,000,000 Par value (SAR) 10.00

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SLIDE 3

The Board of Directors

07-Nov-19 www.mepco.biz

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Management

07-Nov-19 www.mepco.biz

4 Sam ami A i Al Safr afran an – CEO

  • Over 25 years of professional experience
  • 19 years in the paper industry
  • Chemical Engineering graduate of King Fahd

University of Petroleum & Minerals (KFUPM) Moham hamed S Sal aleh D h Dar arweesh h – CFO

  • Over 25 years of experience in financial

management

  • Doctorate in Finance, USA
  • Certified Public Accountant (CPA), California,

USA Wad adia M ia Mal alibar ibari i – COO

  • Over 25 years of experience
  • 10 years of experience with MEPCO and

WASCO

  • Qualified Chemical Engineer with an MBA

Najib ajib Fak akih I ih Ibr brahim ahim – President, WASCO

  • Over 37 years of industry experience
  • 15 years of experience in waste management
  • 20 years of experience with Savola Group
  • Chemical Engineering graduate of KFUPM

Abd bdul Raz azik ik A Askal alan ani i – Plant Manager

  • Over 28 years of relevant experience
  • 14 years of experience with MEPCO
  • Graduated with a BSc in Geo-Chemistry

Ahm hmad ad El F Faz azar ary– Chief Commercial Officer

  • Over 12 years of international marketing

experience

  • 5 years of experience at MEPCO
  • Post-Graduate diploma in International

Trading

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Local inputs, global output

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80% 50 50%

A domestic

  • peration using local

components extensively Around half of production is exported generating

  • c. $ 100 million

annually

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SLIDE 6

Alignment with Saudi Vision 2030

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MEPCO is in complete uniformity with the Saudi 2030 vision by virtue of its operational model. This uniformity is achieved through: Supporting Local Industry By using 80% local content worth > SAR 450 million in 2018, encouraging local industry Spreading the Saudi Export Footprint MEPCO allocates around half of its production to export markets. 2018 annual export sales

  • f SAR 360 million (c. $100 million)

Growing The Non- petrochemical Sector MEPCO is a non-petrochemical company that produces an international commodity (Containerboard) Eco-friendly MEPCO’s core operational model is based on recycling, supporting the environmental dimension of the Saudi 2030 vision Saudization Reaching close to 50% (platinum level) against the requirement of 20%. MEPCO invested SAR 20 million to establish HIPIT-Higher Institute of Paper & Industrial Technologies that educates Saudi youth the Paper technology. Many of graduates work in MEPCO after graduation

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SLIDE 7
  • MEPCO is the largest containerboard

manufacturer for the secondary packaging industry in MENA region* with backward- integrated operations encompassing raw material sourcing and production.

  • With a total installed capacity of 475,000

tons, it accounts for 53% of the Saudi containerboard market. In addition to containerboard, MEPCO also produces coreboard, plasterboard, absorbent Kraft, white top liner, Dual, Kraft liner and Semi Chemical Fluting.

  • Waste Collection and Recycling Company

(WASCO), is an integrated 100% subsidiary of MEPCO that supplies 85% of its raw material needs of recycled paper.

* MENA definition excludes Turkey and Israel. 07-Nov-19 www.mepco.biz

7 Production MEPCO Raw w Mate aterial ial Sour Sourcing WAS ASCO CO Conversion

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SLIDE 8

Ecology concept

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MEPCO uses recovered paper and industriall waste water as inputs This saves the environment from waste hazards and achieves a balances ecological system MEPCO produces its own power with a capacity of 48 MW

C B A

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Evolution of Installed Capacity

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Key Partners

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An integrated subsidiary of MEPCO, established in 2004 and specialized in management of recyclable waste paper and other materials An educational institution established in 2013 by MEPCO for Saudi students taking the Academic Diploma in Paper & Industrial Technologies

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Benefits of paper recycling

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Energy conservation

  • Uses 28-70%

less energy

  • Uses less water
  • Puts industrial

waste water to good use

Forest conservation

  • Preserves

natural ecosystems

Pollution reduction

  • Reduces the

need for landfills and incinerators

  • Prevents water

pollution Recycling paper has a quantifiable impact

  • n the global

environment and on industry, replacing polluting manufacturing processes with renewable, greener and more efficient technology, while allowing forests to thrive and grow

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SLIDE 12

07-Nov-19 www.mepco.biz 12

Financial Review

As of September 30, 2019

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SLIDE 13

Financial performance: KPIs (SAR)

07-Nov-19 www.mepco.biz

13 33,113 ,113 39 39,274 74 190, 90,303 03 111,7 111,712 12 27 27,29 299 31,2 1,269 69 17 173,62 ,622 94, 94,775

  • 4,

4,02 029 858 858 87 87,158 58 2,613 ,613 100,000 200,000 300,000 400,000 500,000 600,000 700,000

  • 50,000

50,000 100,000 150,000 200,000 250,000 Q2 1 2 19 Q3 1 3 19 9M 9M 1 18 9M 9M 1 19

SAR (000) SAR (000)

GP EBITDA NP Revenues

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Financial performance: KPIs (margins)

07-Nov-19 www.mepco.biz

14 18.8% 8.8% 21 21.7% 28.9 8.9% 20. 0.7% 15.5% 5.5% 17. 7.3% 3% 26 26.3% 17 17.6% 6%

  • 2.

2.3% 0.5% .5% 13.2% 2% 0.5% .5% 50000 100000 150000 200000 250000 300000 350000 400000 450000 500000

  • 5.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Q2 1 2 19 Q3 1 3 19 9M 9M 1 18 9M 9M 1 19

GPM EBITDAM NM Revenues

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Financial performance: capital structure

07-Nov-19 www.mepco.biz

15 431 469 533 603 658 713 722 729 810 579 621 474 619 502 482 521 141 284 228 328 209 198 217 122 2 3 2 3 3 43 5

  • 2.21

1.85 1.6 1.34 1.26 1.04 0.98 0.88 0.5 1 1.5 2 2.5

  • 100

200 300 400 500 600 700 800 900 2011 2012 2013 2014 2015 2016 2017 9M'19 Equity Medium term Borrowings Short term Borrowings Note Payables Debt Equity Ratio

Capi apital S tal Str tructu ture (SAR mil illion ion)

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Addr ddress Al Khumrah Industrial Area, P.O. Box 32913, Jeddah 21438 Kingdom of Saudi Arabia Pho hone Tel.: +966 (012) 6380111 Fax :+966 (012) 6389111