Presentation for Investors and Analysts

Mannai Corporation QSC
Q3‘14 Financial Summary
Continued Growth in Net Profits up 30% to 378m
QAR m
Net Profit
378
290
+ 30%
•  YTD Results continue to show exceptional growth
driven by strong core growth in Damas combined
with exceptional recoveries in 1H’14
•  Continued outperformance in Qatar with core net
profit growth of 29% driven by business units
exposed to infrastructure projects; ICT Up 25%,
Heavy Equipment up 51%, E&IM up 61%
•  Q3’14 down 30% due to timing of one-off
recoveries in Q3’13; up 40% after normalisation
3QYTD'13
3QYTD'14
2
Financial Highlights
QAR m
YTD 2013
YTD 2014
Net Profit
290m
378m
30%
Revenues
4,104m
4,148m
1%
Gross Profit %
19.5%
19.6%
0.1pts
Net Profit %
7.1%
9.1%
2.0pts
4,457m
4,821m
8%
Earnings Per Share
6.36
8.28
30%
Return on Equity
17%
25%
8 pts
Capital Employed
3
Average 3QYTD Net Profit Growth Rate of 26%
Net Profit Trend
QAR m
378
Average
Growth Rate
26%
290
258
204
146
176
115
75
2007
2008
2009
2010
2011
2012
2013
2014
4
Top-Line Growth Flat as Strong Growth in Qatar Offsets Gold
QAR m
Revenue
4,104
4,148
1%
•  Revenue impacted by Gold prices and
underlying demand, lowering Damas
Revenue by 435m. Higher margins
resulted in only (27)m loss to gross profit
•  Excluding Damas, Revenues up 19%;
driven by ICT up 24%, Heavy Equipment
up 59%, Geotechnical up 28% to 142m
YTD'13
YTD'14
5
Damas Revenue Contribution falls to 42% as a result of faster
3Q Growth in Qatar Businesses
Revenue Mix
YTD‘13
Auto
All Other Group
16%
12%
YTD‘14
All Other
18%
ICT Group
21%
Damas
51%
Auto
Group
14%
ICT Group
26%
Damas
42%
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Gross Margin holding in high growth environment
QAR m
Gross Profit
798
815
YTD'13
YTD'14
Gross Margin %
2%
• 
Gross Profit up 10% after normalising for
significant items
• 
Damas margins improving due to mix shift to
Non-Gold sales
+0.1pts
19.5%
19.6%
YTD'13
YTD'14
2014%
V pts
Auto Group
19.6%
(0.1) pts
ICT Group
12.8%
0.1 pts
Damas
22.3%
1.3 pts
All Other
23.3%
(0.1) pts
7
Other Income driven by recoveries
QAR m
Other Income
317
•  Other Income driven by recoveries of
previously provisioned receivables in
Damas
174
•  Gain on sale of land and properties
contributed 20m in 1H’14
YTD'13
YTD'14
8
Increased Debt driven by growth in working capital tied up in Qatar
infrastructure projects
QAR m
Net Debt
2,599
2,276
2,130
Q3 '13
Q4 '14
Q2 '14
Net Debt to Total Capital
2,932
Q3 '14
42%
43%
Q3'13
Q4'13
55%
57%
Q2'14
Q3'14
9
Normalisation of key lines for significant items
• 
Q3 profits impacted by seasonality;
Ramadan and summer vacation
impacts retail sales and project
execution due to reduced working
hours delayed sign-off
• 
Q3’14 had no significant items,
whereas Q3’13 had significant
recoveries in Damas which
supported the net income
• 
Core Net Income up 40% for Q3 and
20% YTD after adjusting for
significant items
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Mannai Corporation QSC
Tel: +974-4455 8888 Fax: +974 4455 8880
www.mannai.com
CONTACTS
Investor Relations
Ewan Cameron
Chief Financial Officer
email: [email protected]
Tel (Direct) : +974-44558844
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