Mannai Corporation QSC 3Q16 Financial Summary 3Q16 Profits - - PowerPoint PPT Presentation

Mannai Corporation QSC 3Q‘16 Financial Summary

379 343 3QYTD '15 3QYTD '16 (9)% Net Profit

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• YTD Profits Down 9% to 343m
• Damas Net Profit down 40% or 60m due to

continued revenue softness

• GFI Contribution YTD of 14m after funding

costs in line with expectations offsetting the fall in profits.

• ICT Profit growth of 3% helps offset pressure

from Qatar businesses impacted by slowdown in infrastructure projects

3Q’16 Profits Improvement Offset 1H’16 Softness

Financial Highlights

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3QYTD’15 3QYTD’16 Net Profit 379m 343m (9)% Revenues 4,411m 3,535m (20)% Gross Profit % 22.3% 24.1% 1.8pts Net Profit % 8.6% 9.7% 1.1pts Capital Employed 5,213m 6,582m 26% Earnings Per Share 8.30 7.52 (9)% Return on Equity 23% 19% (4)pts

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75 115 146 176 204 258 290 378 379 343 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

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Damas Exceptional in 2014 and Mini-boom in 1H’15 Masks Underlying Growth Trend of 18%

Net Profit Trend

Growth Rate 18%

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4,411 3,535 3QYTD '15 3QYTD '16

• Damas continues to be largest drop, down

358m or 23% driven by decline in Gold Sales of 33%

• Slowdown in new Construction Projects

impacting Heavy Equipment down 31%, Energy & Industrial Markets down 19% and Geotechnical down 25%

• Oil and Gas downturn impacting Manweir

and Turbines Service business

• ICT continues relatively better with 11% fall

in Revenues Revenue

(20)%

Continued Revenue Pressure Due to GCC Economic Conditions

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3QYTD ‘16 3QYTD ‘15

ICT Performance Drives Revenue Share Close to Damas

Revenue Mix

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Auto 15% ICT 31% Damas 33% All Other 20% Auto 14% ICT 28% Damas 35% All Other 23%

• Damas Drop of 60m partially
• ffset by Gfi contribution of

15m

• Relative Qatar performance

drives share up by 3pts

64% 67% 36% 33% 3QYTD '15 3QYTD '156

Net Profit

Int’l Qatar

Gfi Informatique Contribution Partially Offset Damas Weakness

985 852 3QYTD'15 3QYTD'16

• Auto Group margins up due mix shift from New

Vehicles, driven by Yukon/Escalade in 1H’15, to Parts and Services

• ICT margins driven up by improved margins on long

term projects as a result of direct labour productivity

• Mix-shift to Non-Gold sales due to increasing Gold

Prices driving 1.3pts improvement in Damas

Gross Profit Gross Profit Margin %

(14)%

3Q’16% V pts Auto Group 20.5% 1.4 pts ICT 17.4% 1.9 pts Damas 30.5% 1.3 pts Other Qatar 26.4% 4.1 pts

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Improved Gross Profit Margin Partially Offset Revenue Pressures

22.3% 24.1% 3QYTD'15 3QYTD'16

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+1.8pts

ICT Growth combined with GFI drives share to 40%

Net Profit Mix

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3QYTD ‘16 3QYTD ’15

Auto 9% ICT 40% Damas 28% Axiom 1% All Other 22% Auto 10% ICT 29% Damas 38% Axiom 1% All Other 22%

Other Income Increases Driven by Property Gain

• Other Income increase driven by gain on

sale of property in Damas for 34m

• Continued settlement of remaining

Damas receivables continues with 57m YTD, up from 30m in 2015

91 110 3Q YTD'15 3Q YTD'16

Other Income

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21%

2,952 4,040 4,059 Q3 '15 Q2 '16 Q3 '16

Net Debt Net Debt to Total Capital*

50% 46% 56% 56% Q3'15 Q4'15 Q2'16 Q3'16

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Maintaining Steady Leverage ~ 50% Post Gfi Acquisition

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*Total Capital adjusted for Acquisition Reserves

Mannai Corporation QSC

Tel: +974-4455 8888 Fax: +974 4455 8880 www.mannai.com CONTACTS Investor Relations

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Ewan Cameron Chief Financial Officer email: investor.relations@mannai.com.qa Tel (Direct) : +974-44558844