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

Mannai Corporation QSC 3Q‘16 Financial Summary

3Q’16 Profits Improvement Offset 1H’16 Softness QAR m Net Profit • YTD Profits Down 9% to 343m 379 343 (9)% • 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 3QYTD '15 3QYTD '16 2

Financial Highlights QAR m 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 3

Damas Exceptional in 2014 and Mini-boom in 1H’15 Masks Underlying Growth Trend of 18% Net Profit Trend QAR m 378 379 Growth Rate 18% 343 290 258 204 176 146 115 75 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 4

Continued Revenue Pressure Due to GCC Economic Conditions QAR m Revenue 4,411 • Damas continues to be largest drop, down 358m or 23% driven by decline in Gold (20)% Sales of 33% 3,535 • 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 3QYTD '15 3QYTD '16 5

ICT Performance Drives Revenue Share Close to Damas Revenue Mix 3QYTD ‘15 3QYTD ‘16 Auto 14% Auto 15% All Other All Other 20% 23% ICT 28% ICT 31% Damas Damas 33% 35% 6

Gfi Informatique Contribution Partially Offset Damas Weakness Net Profit • Damas Drop of 60m partially offset by Gfi contribution of 33% 36% 15m Int’l • Relative Qatar performance drives share up by 3pts 67% 64% Qatar 3QYTD '15 3QYTD '156

Improved Gross Profit Margin Partially Offset Revenue Pressures QAR m Gross Profit Gross Profit Margin % +1.8pts 24.1% (14)% 22.3% 985 852 3QYTD'15 3QYTD'16 3QYTD'15 3QYTD'16 • Auto Group margins up due mix shift from New 3Q’16% V pts Vehicles, driven by Yukon/Escalade in 1H’15, to Parts and Services Auto Group 20.5% 1.4 pts • ICT margins driven up by improved margins on long ICT 17.4% 1.9 pts term projects as a result of direct labour productivity Damas 30.5% 1.3 pts • Mix-shift to Non-Gold sales due to increasing Gold Prices driving 1.3pts improvement in Damas Other Qatar 26.4% 4.1 pts 8

ICT Growth combined with GFI drives share to 40% Net Profit Mix 3QYTD ’15 3QYTD ‘16 Auto Auto 10% 9% All Other All Other 22% 22% Axiom 1% Axiom 1% ICT 29% ICT 40% Damas Damas 28% 38% 9

Other Income Increases Driven by Property Gain QAR m Other Income 110 21% • Other Income increase driven by gain on 91 sale of property in Damas for 34m • Continued settlement of remaining Damas receivables continues with 57m YTD, up from 30m in 2015 3Q YTD'15 3Q YTD'16 10

Maintaining Steady Leverage ~ 50% Post Gfi Acquisition QAR m Net Debt Net Debt to Total Capital* 56% 56% 4,040 4,059 50% 46% 2,952 Q3 '15 Q2 '16 Q3 '16 Q3'15 Q4'15 Q2'16 Q3'16 *Total Capital adjusted for Acquisition Reserves 11

Mannai Corporation QSC Tel: +974-4455 8888 Fax: +974 4455 8880 www.mannai.com CONTACTS Investor Relations Ewan Cameron Chief Financial Officer email: investor.relations@mannai.com.qa Tel (Direct) : +974-44558844 12