Middle East Paper Co. · TADAWUL:1202
Middle East Paper — FY2023 Earnings Presentation
28 slides from Middle East Paper's earnings presentation, Apr 28, 2024
Slide 1: Earnings Release FY 2023
Earnings Release FY 2G
Slide 2: Disclaimer
MEP. CO This presentation is prepared by MEPCO and contains basic information about Company activity as of the latest published results. The information is presented in summary rather than detailed form. This information, including any forward-looking statements, should not be taken as basis for inv
Slide 3: MEPCO's Executives
MEP. CO MEPCO’'s Executives GROUP GROUP CHIEF GROUP CHIEF COMMERCIAL PRESIDENT FINANCIAL OFFIC! OFFICER Over 30 years in the Paper Over 17 years of finance Over 20 years of industry and others. specialized in mobilizing international marketing and Held leadership position for funds and turnaround tr
Slide 4: Outline
MEP CO Outline 44 ® Wo) cil Industry & Market FY 2023 Key Macroeconomic Industry & Market y Tissue review Perfo: e 5 Container board indicators OL | vew 02 waiew O38 04 Exports and Local Findncial Review Management Sales Contai Outlook boordé tissues OS OG . 07
Slide 5: FY 2023 Key Performance Indicators
FY 2023 Key Performance Indicators
Slide 6: FY 2023 Performance
FY 2023 Performance ra & SALES REVENUES SAR 867 M - 27 % YoY (a GROSS PROFIT SAR 85 M - 83 % YoY | pn & EBITDA SAR 52 M - 87% YoY 7) NETLOSS TO PARENT SAR (80) M - 130 % YoY © COST OF SALES SAR 782 M +14% YoY | LP © GROSS PROFIT MARGIN 10 % - 3255 bps YoY = } EBITDA MARGIN 6 % - 2810 bps YoY NET INC
Slide 7: Macro Economic Review
Macro Economic Review www.mepco.biz
Slide 8: Economic Review
yaa Economic Review Saudi Arabia Economy is still growing in the nonoil activities Real GDP Growth Rate ( YoY , % ) 10% 8% 6% 4% 2% 0% -2% -4% -6% -3.60% —@-Real GDP growth rate %, YoY Brent Crude Oil spot price averaged $ 87 /b, +11% QoQ According to estimates by the General Authority for Statistic
Slide 9: Industry & Market Containerboard Review
Os Industry & Market Containerboard Review www.mepco.biz
Slide 10: Industry & Market Review For Containerboard
MEP. CO Industry & Market Review For Containerboard Saudi Arabia Demand for Container Board backed by healthy economy World Container Demand Growth 9 8% eel 6% 4% 3.20% 2% 250% Saudi Arabia Demand Growth per 0% annum 2020 e20el 022 2023 2024 20e5 2026 2027 -2% 10% -4% = Virgin Container Board —*Dema
Slide 11: International Prices For Containerboard
ya International Prices For Containerboard Benchmarking with international prices for test liner 2 (Italy ) and OCC international price (Europe Average ) *, USD/ton 800 l Q 714 700 In 2023 , the prevailing global economic conditions amid concerns globally for So economic recovery which has impacted
Slide 12: PIX Packaging GCC Price Indices For Containerboard
PIX Packaging GCC Price Indices For Containerboard Index was launched on 6 June 2023, we are disclosing the prices on a monthly basis since launch date *, USD/ton 450 440 430 420 410 400 390 380 370 360 350 340 441 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 —PIxX Testliner GCC +—
Slide 13: Industry & Market Tissue Review
O4 Industry & Market Tissue review www.mepco.biz
Slide 14: Tissue Market Review
Tissue Market Review Globally the Tissue demand is reviving , Tissues attractiveness for a local producer V7 THOR 2020 World Tissue Demand Growth 0.70% 20el 2022 2023 2024 —Demand Growth JUTHOR ‘s Targeted Market Share c.24 % in KSA * Company Data , RSI paper & pulp. Products : Kitchen Towels, Facia
Slide 15: International Prices For Tissue Paper
International Prices For Tissue Paper U7 beTHOR Benchmarking with international prices for average of bleached hardwood kraft price and Northern bleached softwood kraft (China) *, usD/ton 1000 300 800 700 600 500 400 2020 2021 * RISI Pulp and Paper , Fast markets price reports 867 2022 QLFY 23 Q2 FY
Slide 16: Exports & Local Sales Review
OS Exports & Local Sales Review www.mepco.biz
Slide 17: Exports and Local Sales - Container Board & Tissues
Exports and Local Sales-Container Board & Tissues Sales Ze Segment Despite the challenging global containerboard demand, Sales volume witnessed an increase YoY which shows MEPCO’'s resilience in challenging year QoQ: Total Sales Volume decreased by 3% YoY : Total Sales Volume Increased by 9% Sales V
Slide 18: Financial Review
OG Financial Review www.mepco.biz
Slide 19: Key Financial Indicators
Key Financial Indicators ales Revenues, sarm ied) 1,187 200 QoQ -2% 1200 YoY as 1000 9 867 150 » ca -27% 100 600 50 400 200 ° ° Qle3 Q2 23 Q3 23 Q4 23 2022 2023 Gross Profit & Profit Margin, sm. He QoQ 600 42% YoY 12% 500 e 10% 400 SS </ 300 - 83% -88% » 200 10% 1% 100 0 =e ° | 85 | 2022 2023 Qle3 Q
Slide 20: Key Financial Indicators: Cost of Sales Breakdown
Key Financial Indicators O= of Sales Breakdown , sar QoQ 120% YoY - 250 800 100% 8% 780 100% 200 80% 760 80% 150 g 719) 14% 60% d b74 } q » 720 ar Low 100 40% 700 680 40% 4 684 50 20% 660 4 20% 7% 6 wr 640 Q123 Q223 Q323 2423 Q123 Q223 Q323 A423 620 0% Fixed Cost Other Varible ore etches) 2022 2023
Slide 21: Key Financial Indicators: EBITDA and Net Income
Key Financial Indicators EBITDA and EBITDA margin, sarm a 12% QoQ 500 34% YoY 25 e 6% e 20 TV% 400 a 1S -112% » 300) 10 200 5 1% -2 6% ie) 100 e 5 a123 Q2 23 Q3 23 aae3 @ 5a =EBITDA — ® EBITDA Margin 2022 2023 Net Income and Net Income Margin sarm.% o QoQ zap) 3% XY | -7_| (4 - 250 Bt 3 5 100 130% -
Slide 22: Key Financial Indicators Q4 vs Q3 Consolidated
ey Financial Indicators Q4 23 vs Q3 23 Consolidated Net profit break down « sarm 2% 8% -2% soles Revove costot es 16 02 Ln! | 5 coetof Stee sols Revue sabe * Consolidated financial statement for FY 2023 Reversal of impairme. 18.7 5 oe -3.2 -5.8 Roversal of Imp losses AR Net Loss (Equity atributable.
Slide 23: Key Financial Indicators 2023 vs 2022 Consolidated
ey Financial Indicators 2023 vs 2022 Consolidated Net profit break down « sarm 141% — “27, mm Ke || -49% -28% -4% 97.5 23 7 “24 =3 -320 * Consolidated financial statement for FY 2023 ther Income 16 ther income Operating Profit -355.5 Operating Profit Net Income / Loss Equity ettibutoble. -350 Net In
Slide 24: Key Financial Indicators: Working Capital and Cash Flow
Key Financial Indicators re Working Capital And Working Capital Ratio sarm 600 Seg -67% 500 400 ©2987 173 Due to the losses in 2023, the cash generation 300 has gone down and liabilities have gone up eo °° mainly short-term bank borrowings by SR 76 M ° & trade and others payable by SR 65 M. 2022 202
Slide 25: Key Financial Indicators: Net Debt
Key Financial Indicators Net Debt to Equity sarm YoY 0.49 2022 2023 KE Net Debt to EBITDA 12.00 10.00 8.00 6.00 4.00 2.00 YoY 0.93 2022 2023 * Consolidated financial statement for FY 2023 Increase in D/E ratio is due to following: * Decrease in equity on account of losses and 2022 dividend of SR 33
Slide 26: Management Outlook
07 Management Outlook www.mepco.biz
Slide 27: Mid Term Outlook
MEP CO Mid Term Outlook e Abiding to the growth strategy for MEPCO as a group of companies in waste and paper sector. e JUTHOR continuous market development for tissues. e Cost Management in an inflationary economy
Slide 28: Investor Relations Contact
Middle East Paper Compar Investor Relations Contact E: [email protected] WWW.mepco.biz +966126380111
Middle East Paper Company (MEPCO) — FY2023 Earnings Presentation on 6ix