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 Currency SAR ISIN code SA13Q050IP16 Abdulkadir Al 23 23.2% 2% Muhaidib & Sons Co. Listing date 3 May 2015 Lafana Holding Financial year end 31 December Abdullah AlMuammar 57.5% 57 5% 12. 2.1% Authorized capital (SAR) 500,000,000 Free Float Issued shares 50,000,000 7. 7.1% Paid capital (SAR) 500,000,000 Par value (SAR) 10.00 www.mepco.biz 2 07-Nov-19
The Board of Directors www.mepco.biz 3 07-Nov-19
Management Najib ajib Fak akih I ih Ibr brahim ahim – President, WASCO Sam ami A i Al Safr afran an – CEO Over 37 years of industry experience Over 25 years of professional experience • • 15 years of experience in waste management 19 years in the paper industry • • 20 years of experience with Savola Group Chemical Engineering graduate of King Fahd • • Chemical Engineering graduate of KFUPM University of Petroleum & Minerals (KFUPM) • Abd bdul Raz azik ik A Askal alan ani i – Plant Manager Moham hamed S Sal aleh D h Dar arweesh h – CFO Over 28 years of relevant experience Over 25 years of experience in financial • • 14 years of experience with MEPCO management • Graduated with a BSc in Geo-Chemistry Doctorate in Finance, USA • • Certified Public Accountant (CPA), California, • USA Ahm hmad ad El F Faz azar ary– Chief Commercial Officer Wad adia M ia Mal alibar ibari i – COO Over 12 years of international marketing Over 25 years of experience • • experience 10 years of experience with MEPCO and • 5 years of experience at MEPCO WASCO • Post-Graduate diploma in International Qualified Chemical Engineer with an MBA • • Trading www.mepco.biz 4 07-Nov-19
Local inputs, global output A domestic 80% operation using local components extensively Around half of 50 50% production is exported generating c. $ 100 million annually www.mepco.biz 5 07-Nov-19
Alignment with Saudi Vision 2030 MEPCO is in complete uniformity with the Saudi 2030 vision by virtue of its operational model. This uniformity is achieved through: Supporting By using 80% local content worth > SAR 450 million in 2018, encouraging local industry Local Industry Spreading the MEPCO allocates around half of its production to export markets. 2018 annual export sales Saudi Export of SAR 360 million (c. $100 million) Footprint Growing The Non- MEPCO is a non-petrochemical company that produces an international commodity petrochemical (Containerboard) Sector MEPCO’s core operational model is based on recycling, supporting the environmental Eco-friendly dimension of the Saudi 2030 vision 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 Saudization educates Saudi youth the Paper technology. Many of graduates work in MEPCO after graduation www.mepco.biz 6 07-Nov-19
• MEPCO is the largest containerboard manufacturer for the secondary packaging industry in MENA region* with backward- integrated operations encompassing raw Conversion material sourcing and production. • With a total installed capacity of 475,000 tons, it accounts for 53% of the Saudi Raw w containerboard market. In addition to Mate aterial ial containerboard, MEPCO also produces Sour Sourcing coreboard, plasterboard, absorbent Kraft, WAS ASCO CO white top liner, Dual, Kraft liner and Semi Chemical Fluting. Production MEPCO • 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. www.mepco.biz 7 07-Nov-19
Ecology concept MEPCO uses recovered paper and industriall waste water as inputs This saves the environment from waste hazards and achieves a balances ecological system A MEPCO produces its own power with a capacity of B 48 MW C www.mepco.biz 8 07-Nov-19
Evolution of Installed Capacity www.mepco.biz 9 07-Nov-19
Key Partners 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 www.mepco.biz 10 07-Nov-19
Benefits of paper recycling Recycling paper has a Energy Forest Pollution quantifiable impact on the global conservation conservation reduction environment and on industry, replacing • Uses 28-70% • Preserves • Reduces the polluting less energy natural need for manufacturing ecosystems landfills and • Uses less water incinerators processes with • Puts industrial renewable, greener • Prevents water waste water to pollution and more efficient good use technology, while allowing forests to thrive and grow www.mepco.biz 11 07-Nov-19
Financial Review As of September 30, 2019 12 www.mepco.biz 07-Nov-19
Financial performance: KPIs (SAR) 250,000 700,000 600,000 190, 90,303 03 200,000 500,000 150,000 173,62 17 ,622 SAR (000) SAR (000) 111,7 111,712 12 94, 94,775 400,000 100,000 300,000 39,274 39 74 87 87,158 58 27 27,29 299 50,000 31,2 1,269 69 33,113 ,113 200,000 2,613 ,613 858 858 0 100,000 -4, 4,02 029 Q2 1 2 19 Q3 1 3 19 9M 1 9M 18 9M 9M 1 19 -50,000 0 GP EBITDA NP Revenues www.mepco.biz 13 07-Nov-19
Financial performance: KPIs (margins) 35.0% 500000 450000 28.9 8.9% 30.0% 400000 25.0% 20. 0.7% 26 26.3% 21 21.7% 350000 18.8% 8.8% 20.0% 300000 17 17.6% 6% 17. 7.3% 3% 15.0% 250000 15.5% 5.5% 13.2% 2% 200000 10.0% 150000 5.0% 100000 0.5% .5% 0.0% 0.5% .5% 50000 -2. 2.3% Q2 1 2 19 Q3 1 3 19 9M 9M 1 18 9M 9M 1 19 -5.0% 0 GPM EBITDAM NM Revenues www.mepco.biz 14 07-Nov-19
Financial performance: capital structure 900 2.5 Capi apital S tal Str tructu ture (SAR 810 mil illion ion) 800 729 722 713 2.21 2 700 658 621 619 603 579 1.85 600 533 521 502 1.5 1.6 482 474 469 500 431 1.34 1.26 400 1 1.04 0.98 300 328 0.88 284 200 228 0.5 217 209 198 100 141 122 43 5 2 3 2 3 3 - - 0 2011 2012 2013 2014 2015 2016 2017 9M'19 Equity Medium term Borrowings Short term Borrowings Note Payables Debt Equity Ratio www.mepco.biz 15 07-Nov-19
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
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