AAMAL COMPANY QSC FULL YEAR 2012 RESULTS 1 Contents Key Full - PowerPoint PPT Presentation

AAMAL COMPANY QSC FULL YEAR 2012 RESULTS 1

Contents • Key Full Year 2012 developments • Financial Summary • Divisional Review • Summary and Outlook • Additional information (breakdown by divisions) 2

Key FY 2012 developments Strong growth profile maintained • Group Revenue up 19.6% to QAR 2,283.9m; driven by 32% growth in Industrial Manufacturing • Reported earnings per share up 21.1% Positioned well for future organic growth • Industrial Manufacturing now firmly established the principal growth engine (63.9%* of total revenues vs. 58.9% FY 2011) • Rapid industrialisation of Qatar, underpinned by National Vision of 2030 • Outlook for Qatar is both stable and positive, underpinned by robust fundamentals Supported by selective acquisitions and initiatives • Innovative Lighting, Gulf Rocks Company, Gettco Home Appliances, Energizer Automotive Batteries Diversification is key • Exposure to non-manufacturing sectors through the Trading & Distribution, Property and Managed Services divisions • Benefits across the economic spectrum Continues to be dynamic and progressive • Perennially striving to identify opportunities that will create value for stakeholders • Continues to be seen as the partner of choice for leading world class multinationals • First mover advantage is part of Aamal’s ethos * Before deduction of inter-divisional revenues 3

Financial Summary QARm FY 2012 FY 2011 % change Revenue 2,283.9 1,910.1 19.6% Gross Profit 446.3 440.8 1.3% Gross profit margin % 19.5% 23.1% (360) basis points Net profit before fair value 235.7 246.0 (4.2)% gains on investment properties Net profit margin % 10.3% 12.9% (260) basis points Fair value gains on 388.8 287.6 35.2% investment properties Net profit 624.5 533.7 17.0% Adjusted* EPS (QAR) 0.38 0.38 0.8% Reported** EPS (QAR) 1.09 0.90 21.1% * Adjusted EPS shows the underlying profitability (i.e. excluding fair value gains on investment properties) ** During the period, the Group issued and capitalised bonus shares so FY 2011 EPS has been restated accordingly 4

Operations review Industrial Manufacturing Division • Revenues up 32.2% to QAR 1,505.7m; net profit down 8.7% to QAR 56.7m • Division now makes up 64*% (2011: 59%) of Group revenue; principal engine of growth • Growth from existing operations, new initiatives and acquisitions • Rise in revenues driven by 21% rise in Senyar Industries JV (Doha Cables and El Sewedy Cables Qatar), despite change in basis of consolidation for El Sewedy Cables from 100% to 55% • Rises also at Aamal Readymix (37%) and Aamal Cement (91%) • 1 st time contribution from Ci-San Trading and Innovative Lighting JV • Net margins at 3.8% (2011: 5.5%); pricing pressures expected to ease going forward • Advanced Pipes & Cast Company due to start operations Q4 2013 * Before deduction of inter-divisional revenues 5

Operations review Trading and Distribution Division • Revenues up 1.9% to QAR 533.6m; net profit down 14.0% to QAR 54.4m • Masks contrasting trends within underlying sales mix: 11% rise at Ebn Sina Medical offset by 10.6% fall at Aamal Trading • Net margins at 10.2% (FY11: 12.1%): due to nature of revenue at Aamal Trading • Launch of new consumer products line (“ Gettco Home Appliances”) and securing of sole Qatari distribution rights to supply Energizer Automotive Batteries 6

Operations review Property Division • Revenues up 9.6% to QAR 234.3m; net profit (before fair value gains on investment properties) up 12.9% to QAR 181.8m • Driven by increase in rental space, higher rents and full 12 months from Markhiya residential complex • Net margins at 77.6% (2011: 75.3%): higher rents for higher end clients • Fair value gains for the year were QAR 388.8m (2011: 287.6m) • Occupancy at both City Center Doha and Aamal Real Estate remaining high at 95% (5% held back as a strategic reserve) • Phase 1 of expansion at CCD in final stages, adding 7,000 sq m of new retail space (equiv. to 60 new retail units) and 400 new parking spaces (25% increase) 7

Operations review Managed Services Division • Revenue up 47.3% to QAR 84.6m; net profit down 3.3% to QAR 7.4m • Driven by Johnson Controls Qatar JV, 227% increase: strong start since June 2011 launch • ECCO Gulf Delivery Center in West Bay, Doha went live during FY 12: successful inroads made • Net profit margins at 8.8% (2011: 13.4%): higher expenses relating to new Delivery Center together with a concerted effort to grow and diversify client base at the expense of margin 8

Summary and Outlook • Very strong performance, driven by the Industrial Manufacturing Division • Aamal now predominantly an industrial company, well-positioned to capture the significant opportunities being made available by the rapidly developing Qatari economy, particularly in infrastructure • Aamal also has significant exposure to non-manufacturing sectors too through market leading positions including retail, property, managed services, medical equipment and pharmaceuticals • Part of Aamal’s success is its ability to identify and then seize market opportunities ahead of others: it is this first mover advantage that has made Aamal the “partner of choice” for so many leading multinationals wanting to enter Qatar • Aamal places strong emphasis on i) rigorous investment criteria for entry into new business sectors, incl. thorough due diligence on new strategic partners and ii) operational efficiencies, such that there is a clear focus on returns on capital and capital discipline • Though its scale and business mix, Aamal is uniquely able to offer investors a quality and balanced exposure to the rapidly developing Qatari economy 9

Any further questions? Please contact: Mr. Mohammad Ramahi – Chief Financial Officer mohd.ramahi@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 4422 3888 www.aamal.com.qa Financial PR/IR advisers Nick Cox-Johnson nick.cox-johnson@citigatedr.com Citigate Dewe Rogerson Level 15, Commercialbank Plaza P.O. Box 27111 Doha-Qatar T: +974 452 8335 www.citigatedewerogerson.com 10

BREAKDOWN BY, AND OF, DIVISIONS 11

Group results Revenue by division QARm FY 2012 FY 2011 Change % Industrial Manufacturing 1,505.7 1,138.8 32.2% Trading and Distribution 533.6 523.6 1.9% Property 234.3 213.3 9.6% Managed Services 84.6 57.5 47.3% less: inter divisional revenue (74.2) (23.4) (217.1)% Total 2,283.9 1,910.1 19.6% nb. please be aware there may be rounding differences 12

Group results Net Profit by division QARm FY 2012 FY 2011 Change % Margin Margin FY 2012 FY 2011 % % Industrial Manufacturing 56.7 62.1 (8.7) % 3.8% 5.5% Trading and Distribution` 54.4 63.3 (14.0) % 10.2% 12.1% Property 181.8 161.1 12.9 % 77.6% 75.3% Managed Services 7.4 7.7 (3.9)% 8.8% 13.4% less: Head Office costs (64.6) (48.1) (34.3)% Fair value gains on 388.8 287.6 35.2% investment properties Total 624.5 533.7 17.0 % 10.3% 12.9% nb. please be aware there may be rounding differences 13