Resilient performance in a challenging year Presentation of - PowerPoint PPT Presentation

Resilient performance in a challenging year Presentation of financial results for the year ended 31 December 2019 19 FEBRUARY 2020

FY FY 2019 High Highlig ights  Fina Fi nancia ial l Su Summary ry  Segm Segmental l Review  Contents Co  Corp Co rpor orate Go Governance Upd pdate Summary and Su and Out Outlo look   App Appendix  Group Results – Revenue and Net Profit by Segment  Aamal’s Investment Case "Strength Through Diversity" 1

2019 HI HIGHLIGHTS A A year of of str strategic de development and and evo evolution – Resilient response to weaker contracts environment, strong competition and customer ‘price  sensitivity’ Financial Perf Fin erformance  • Revenue up 0.6% to QAR 1,294m Net profit 1 down 28.0% to QAR 322m • Reported EPS 2 down 27.6% at QAR 0.05 •  Div Dividend of of QAR QAR 0.04 0.04 a a sha share pro proposed • Equivalent to 4% of paid-up share capital • Subject to approval at AGM on 1 April 2020 Despite subdued real estate market, pr property segm egment pe performed wel ell versus pe peers  Mixed performance in Trading and Distribution – str strong sa sales les gr growth at at Ebn Ebn Sina Sina offs offset by by mar argin ero erosi sion at at Aam Aamal Med edical  Industrial Manufacturing impacted by slow slowdown in in maj ajor inf infrast structure pr projects s and and inte intense com competition   Further strengthened Aamal’s corporate governance to ensure the Group is well managed to deliver sustainable growth 1 Before the deduction of net profit attributable to non-controlling interests "Strength Through Diversity" 2 2 Restated to reflect the stock split implemented in June 2019 (a QFMA initiative requiring QSE-listed companies to split each of its shares into 10) 3 Internal control over financial reporting

FY FY 2019 High Highlig ights  Fina Fi nancia ial l Su Summary ry   Segm Segmental l Review Contents Co  Corp Co rpor orate Go Governance Upd pdate Summary and Su and Out Outloo ook   App Appendix  Group Results – Revenue and Net Profit by Segment  Aamal’s Investment Case "Strength Through Diversity" 3

FIN INANCIAL SUMMARY Profitability im impacted by: y: QARm 2019 2018 % change  Slowdown in major infrastructure projects affecting Revenue 1,294.1 1,286.6 0.6% Industrial Manufacturing Net profit before share of net profit of associates and  Increased competition driving sales prices down and joint ventures accounted for using the equity method 259.9 347.6 (25.2%) reducing profit margins and FV gains on investment properties Net underlying profit margin % 20.1% 27.0% (6.9 ppts)  Increase in finance costs due to loan agreed in late 2018 Share of net profit of associates and joint ventures 62.3 100.0 (37.8%)  accounted for using the equity method Clearance of obsolete inventory coupled with revenue recognition correction.. Fair value gains on investment properties - - -  Increase in provision balance related to IFRS 9 due to Total Company net profit 322.1 447.6 (28.0%) slow down Less: non controlling interests (0.1) 2.3 (105.9%) Attributable to Aamal shareholders 322.3 445.3 (27.6%) Earnings per share (QR) 0.05 0.07* (27.6%) * Restated to reflect the stock split implemented in June 2019 (a QFMA initiative requiring QSE-listed companies to split each of its shares into 10). Note: there may be slight differences due to rounding. "Strength Through Diversity" 4

FY FY 2019 High Highlig ights  Fina Fi nancia ial l Su Summary ry   Segm Segmental l Review Contents Co  Corp Co rpor orate Go Governance Upd pdate Summary and Su and Out Outloo ook   App Appendix  Group Results – Revenue and Net Profit by Segment  Aamal’s Investment Case "Strength Through Diversity" 5

IN INDUSTRIAL MANUFACT CTURING QARm 2019 2018 % change Revenue 169.1 230.5 (26.6%) Net profit - fully consolidated activities (1.5) 6.9 (121.5%) Net underlying profit margin % (0.9%) 3.0% (3.9 ppts) Share of net profit of associates and joint ventures accounted for using the equity method 54.1 94.6 (42.8%) Total net profit 52.6 101.5 (48.2%) Note: there may be slight differences due to rounding.  Financia ial pe performance attr trib ibutable to to a com ombin inatio ion of of fac actors Slowdown in the Qatari construction sector impacted sales volumes  Market competition pushed sales prices down (impacting margins)   Suc uccessfully lly pr prog ogressed str trategic ic investm tments and nd ope peratio ional pr proje ojects ts  Construction of Senyar Drum and Copper factories progressed (production est. late Q4 2020, benefits expected 2021)  Doha Cables increased production of HV cables, expanded product range and exported to new Asian markets  ACI implemented initiatives to improve processes and production volumes  Imp mprovin ing outlo utlook  Pipeline of major contracts in Industrial Manufacturing (beyond FIFA World Cup Tournament in 2022)  Aamal Readymix awarded iconic projects (Lusail Boulevard and expansion of Doha Port) "Strength Through Diversity" 6

TRADING AND DIS DISTRIBUTION QARm 2019 2018 % change Revenue 799.6 696.4 14.8% Net profit 98.9 125.3 (21.1%) Net profit margin % 12.4% 18.0% (5.6 ppts) Note: there may be slight differences due to rounding.  Pos osit itiv ive sales sales pe performance dr driv iven by by Ebn Ebn Sina Medic ical (up up 25 25% YoY)  Profi ofitabili ility imp mpacted by by one ne-off fac actor ors in in Ebn Ebn Sina Medic dical and nd Aam amal Trad adin ing Ebn Sina Medical - revenue recognition adjustment in respect of unsold inventory QAR 5.8m  Aamal Trading - stock shortfall for fast tyre sizes due to supplier’s system issues; profit margins impacted by clearance of expired tyres and slow-moving stocks of  home appliances; new credit limits imposed on higher credit risk clients  Aam amal Medic ical imp mpacted by by a less favourable le pr prod oduct mix mix. Outlo utlook mor more enc ncouragin ing due due to to ne new su supp pplie lier agreements ts  Olympus: providers of surgical and endoscopy products – broadening diversification in medial technology  Acetech: providers of ambulance tracking systems – in line with strategy to become the leading supplier in Emergency Medical Services and ambulance technology  Imp mproved outlo tlook k for or 20 2020 20 New supplier agreements at Ebn Sina Medical and Aamal Medical   2020 performance expected to be enhanced through partnerships with tier 2 and 3 tyre manufacturers and exiting from home appliances "Strength Through Diversity" 7

PROPERTY QARm 2019 2018 % change Revenue 290.1 295.4 (1.8%) Net profit - fully consolidated activities 218.4 235.7 (7.4%) Net underlying profit margin % 75.3% 79.8% (4.5 ppts) Share of net profit of associates and joint ventures accounted for using the equity method 5.6 5.4 3.1% Total net profit 223.9 241.1 (7.1%) Note: there may be slight differences due to rounding.  Prop operty y se segment pe performin ing well l de despit ite challe hallenging real al estate mar market  Decline in performance at City Center Doha due to rental support provided to tenants, increased bad debt provision, maintenance and insurance costs, and one-off lease termination penalty income of QAR 3.2m in 2018 and not repeated this year  Aamal Real Estate impacted by reduced demand for residential property coupled with an increase in renovation costs  Imp mproved pe performance expec xpected in n 20 2020 20  Corporate rental agreements agreed for residential units, increasing occupancy rates to 95% (benefits expected from Q1 2020)  City Center Doha renovation set to complete in H1 2020 with major corporate clients leasing space (benefits expected from Q4 2020 "Strength Through Diversity" 8

MANAGED SERVICES QARm 2019 2018 % change Revenue 63.2 96.7 (34.7%) Net profit - fully consolidated activities 3.1 8.2 (61.5%) Net underlying profit margin % 5.0% 8.4% (3.5 ppts) Share of net profit of associates and joint ventures accounted for using the equity method 2.6 - 100% Total net profit 5.7 8.2 (29.7%) Note: there may be slight differences due to rounding.  A chal halle lengin ing ye year ar for or the he Man anaged Servic ices se segment • ECCO Gulf reclassified from a subsidiary to a JV (impacting accounting treatment and financial presentation) • Market headwinds from increased competition and customer ‘price sensitivity’ impacted Aamal Services by QAR 1.8m • New business wins helping to offset decline (e.g. Ministry of Justice, Mowasalat) following loss of Al Meera in 2018  Com ompanie ies in in the he se segment are pur pursuin ing initia nitiativ ives to to di differentia iate the hemselv lves as as a qualit quality of offerin ing • ECCO Gulf installed systems to support efficiency and quality of CRM • Aamal Services will focus on small to medium sized business which place a premium on quality  A po posit itive ye year ar for or Aam amal Travel (profit it up up 25 25% YoY) • Agreements established with football playing South American countries and • New Aamal Travel branch to open in 2020 "Strength Through Diversity" 9