MUTANDIS FY 2019 RESULTS February 17 th , 2020 DISCLAIMER Certain - PowerPoint PPT Presentation

MUTANDIS FY 2019 RESULTS February 17 th , 2020

DISCLAIMER Certain information included in this document has been prepared by the company, and has not been verified or audited by independant sources. This presentation contains also forecasts based on opinions and present assumptions related to future events. These forecasts reflect projections and financial estimates based on assumptions, considerations related to projects, objectives, and also based on expectations related to events, transactions, future products and services, and also based on assumptions in terms of future performances and synergies. All statements contained in this presentation are not guarantees of future performance. They are based on the Group’s current expectations and projections about future events and are subject to inherent risks and uncertainties related to Mutandis, its subsidiaries and investments, the development of Mutandis businesses and subsidiaries, the industry trends, the economic environment or the growth of Mutandis key markets and to the competition and the applicable regulation. Thus, the achievement of these events may differ from our present expectations, and therefore can significantly affect the expected results. The Group expressly disclaims and does not assume any liability in connection with any inaccuracies in any of the forward-looking statements in this document or in connection with any use by any third party of such forward-looking statements. Certain totals in the tables included in this document may not add due to rounding. February 2020| 2

MUTANDIS’ FOUNDER & CEO MR. ADIL DOUIRI February 2020| 3

AGENDA 1 | Key Messages 2 | 2019 Consolidated financial results 3 | 2020 Outlook 4 | 2020 Calendar February 2020| 4

KEY MESSAGES Higher sales and a good cost control � Strong growth in detergents, thanks to our own brands; � Still increasing the higher margin products and markets with a stable total volume. Unfortunately adverse exchange rates conditions (weak euro); � Significantly better margins in the bottles and caps business, partially offset by sligtly lower volumes due to fading 2018 boycott effects; � Very strong growth for fruit juices in the domestic market, supported by higher marketing spend. February 2020| 5

KEY FACTS Market share gains and new countries Maxis’ Maison Magix becomes LEADER in the « hand washing and semi- launches its new automatic machine » category perfume: Vanilla Flowers JOSIANE enters the Saudi market Marrakech juices continues to expand in Africa February 2020| 6

KEY FACTS Market share gains and new countries • Testing Marine in supermarkets in Morocco • First skinless boneless samples to the USA February 2020| 7

2 2020 CONSOLIDATED FINANCIAL RESULTS February 2020| 8

FINANCIAL KEY MESSAGES (1/2) 2019 : Solid growth on all metrics RECORD REVENUES • Steady growth, in line with guidance ; REVENUES: MAD 1 462 MILLION Mostly thanks to detergents and fruit juices. +6.9% /2018 • RECORD EBITDA • Slightly better than guidance ; EBITDA : MAD 228 MILLION Marginally higher margins combined with higher revenues ; +11.7%/2018* • • Stable fixed costs. RECURRING NI** : MAD 93 MILLION STRONG GROWTH IN RECURRING NET INCOME +21.1%/2018* • Higher amortization offset by lower cost of debt. SIMILAR INCREASE IN NET INCOME NI : MAD 82 MILLION +16.7%/2018* • Non recurring items are -11 MMAD. * PRO FORMA IFRS 16 ** RECURRING NET INCOME : NET INCOME EXCLUDING NON RECURRING ITEMS February 2020| 9

FINANCIAL KEY MESSAGES (2/2) 2019: Higher cash flows and still underleveraged balance sheet STABLE NET BANK DEBT • Lower need for working capital ; BANK NET DEBT / TOTAL CAPITAL : • Offset by higher capital expenditures. 20% vs 19% in 2018* CASH FLOW FROM OPERATIONS • Higher net income and depreciation ; CASH FLOW FROM OPERATIONS : • Partially offset by higher tax disbursements. 151 MMAD +20%/2018* PROPOSED DIVIDEND • First year at mad 8.5/ share after 4 years at mad 7.5 PROPOSED DIVIDEND : 8,5 MAD / share +13%/2018 * PRO FORMA IFRS 16 February 2020| 10

FINANCIAL SNAPSHOT FINANCIAL INDICATORS EBITDA CAPEX 2019 in line with our guidance Revenues EBITDA In MAD Millions +6.9% In MAD Millions 11.7% +6% à 8% 1,462 228 ~+10% 1,368 204 2018 Guidance 2019 2018 Guidance 2019 2019 2019 Cash flow from operations Recurring net income In MAD Millions In MAD Millions 20.8% 21.0% 151 93 +15% à 25% 125 77 Guidance 2018 2019 2018 2019 2019 February 2020| 11

FINANCIAL INDICATORS Revenues breakdown Revenues growth 2019 revenues by category In MAD Millions +6.9% 1,462 4.5% 1,368 0.2% 16.1% 79 646 567 44.2% 9 512 504 35.0% 235 239 -4 11 Detergents Food bottles other 3 3 66 55 Seafood Fruit juice 2018 2019 February 2020| 12

FINANCIAL INDICATORS EBITDA Breakdown EBITDA growth In MAD Millions +11,7% 228 204 16 112 Detergents 97 65 Seafood 69 -4 9 53 Food bottles 44 4 7 Fruit juice 3 -10 -10 Other 2018 2019 February 2020| 13

RESULTS BY CATEGORY Detergents In MAD Millions 2018 2019 % MMAD Revenues 567.1 645.8 +13.9% EBITDA 96.4 112.4 +16.0% Key facts � Strong growth thanks to enlarged distribution (route to market), to the shift to the 1 kg format (from the 10 kg big bag) and to steady liquid sales ; � Offset by higher marketing spend to introduce the 1 kg format and by investments in our distribution to launch Marrakech juices and increase our geographic reach. February 2020| 14

RESULTS BY CATEGORY Seafood products In MAD Millions 2018 2019 % MMAD Revenues 503.7 512.3 +1.7% EBITDA 69.0 64.9 -6.0% Key facts � Continuing the shift to higher margins products/countries ; � First skinless boneless shipments to Saudi Arabia and to the USA ; � Adverse exchange rates due to weaker Euro ; � Improved manufacturing efficiency and energy costs ; � Organization restructuring leading to lower overhead costs. February 2020| 15

RESULTS BY CATEGORY Food bottles In MAD Millions 2018 2019 % MMAD Revenues 239.1 235.0 -1.7% EBITDA 44.4 53.4 +20.1% Key facts � Lower bottled water volumes dur to fading 2018 boycott effects (boycott affected non-partner brands) ; � Significantly higher margins due to better contract negociations / sales mix = strong EBITDA growth . February 2020| 16

RESULTS BY CATEGORY Fruit juices In MAD Millions 2018 2019 % MMAD Revenues 55.0 65.7 +19.4% EBITDA 3.0 6.9 N/A Key facts � Own brands up +33% in the domestic market ; � Slight contraction in margins (mostly factory issues) ; � Doubling EBITDA albeit from a low base. February 2020| 17

FINANCIAL INDICATORS Cash flow and net debt Cash flow Net debt In MAD Millions In MAD Millions 19.6% 19.1% 2.0% 2.0% 129 -73 -61 -241 -237 -241 -237 ND 2018 CFO* CAPEX Dividend ND 2019 Dec 2018 Dec 2019 Gearing ND : Net debt CFO.* : Cash flow from operations ajusted by the cash impact of IFRS 16 February 2020| 18

FINANCIAL INDICATORS CAPEX CAPEX Marketing In MAD Millions In MAD Millions 23.0% 29.7% 31 24 23 73 Opex 18 59 9 Amortization 7 Dec 2018 Dec 2019 Dec 2018 Dec 2019 February 2020| 19

3 2020 OUTLOOK February 2020| 20

2020 OUTLOOK � Revenues: +6% to +7%, all categories contributing : � New category in detergents; � National launch of Marine in Morocco (after 2019 test) ; � Further growth in fruit juices. � EBITDA: ~+8% : favourable operating leverage on fixed costs ; � Expected Capex : ~ 80 mad million including the first investments for our future categories. February 2020| 21

2020 OUTLOOK Outlook 2019 2020 MAD MILLION Revenues 1,462 MMAD +6% to +7% EBITDA 228 MMAD ~ +8% Recurring Net Income 93 MMAD +10% to +13% February 2020| 22

2020/2021 OUTLOOK Products launches/Territories • Skinless Boneless 1st time in the USA • Machine powder launch • Marine national launch • Sardine fish paste launch February 2020| 23

4 2020 CALENDAR February 2020| 24

2020 CALENDAR Nov. Key dates 14 • FY 2019 results Feb. 17 • Analysts conference Feb. 02 • General Meeting Apr. 04 • Q1 2020 financial KPI May. 28 • Q2 2020 financial KPI Aug. • H1 2020 financial results and analysts conference 07 sept. • Q3 2020 financial KPI 05 Nov. February 2020| 25