investor presentation fourth quarter 2019 - mti-mmgroup.comof the presentation and mti’sliability...

Investor Presentation Fourth Quarter 2019

2

This Presentation is intended for information purposes only and does not constitute or form part of an offer for sale or subscription or an invitation or

solicitation of an offer to subscribe for or purchase securities of any kind and neither this document nor anything contained herein shall form the basis of

any contract or commitment from any party whatsoever. Information, including but not limited to financial information, in this presentation should not be

considered as a recommendation in relation to holding, purchasing or selling shares, securities or any other instruments in or, in entities related to, MTI or

any other company.

This Presentation contains important and privileged information on MTI which is solely owned by MTI and may not be relied on or used by any person

whosoever for any purpose, and therefore shall be kept secret and confidential by any receiving party. This document includes forward-looking

statements. The words "believe", "anticipate", "expect", "intend", "aim", "plan", "predict", "continue", "assume", "positioned", "may", "will", "should",

"shall", "risk" and other similar expressions that are predictions of or indicate future events and future trends identify forward-looking statements. These

forward-looking statements include all matters that are not historical facts. In particular, the statements regarding strategy and other future events or

prospects are forward-looking statements. Recipients of this document should not place undue reliance on forward-looking statements because they

involve known and unknown risks, uncertainties and other factors that are in many cases beyond the control of the Company. By their nature, forward-

looking statements & projections involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in

the future. Forward-looking statements are not guarantees of future performance and the Company's actual results of operations, financial condition and

liquidity, and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-

looking statements contained in this document. The cautionary statements set forth above should be considered in connection with any subsequent

written or oral forward-looking statements that the Company, or persons acting on its behalf, may issue. Various factors could cause actual results to differ

materially from those expressed or implied by the forward-looking statements in this document including worldwide economic trends, the economic and

political climate of Egypt, the Middle East and changes in business strategy and various other factors.

All information contained in this presentation, including but not limited to information relating to the Egyptian consumer and financial markets, are

compiled from sources known to be reliable and/or publicly available data reasonably assumed to be accurate (the “Source Data”). The Source Data may

contain errors and/or inaccuracies; MTI provides no warranties or guarantees of any kind, expressed or implied, and accepts no responsibility whatsoever,

with regard to the accuracy, completeness or correctness of the Source Data used in the Presentation. This disclaimer is to be considered an integral part

of the Presentation and MTI’s liability in respect of this Presentation and is to be governed by Egyptian law under the jurisdiction of Egyptian courts.

Disclaimer

3

MTI at a Glance

34

Employees

128+ Distribution Vehicles

Revenues in 2019

Geographic Footprint90%

95% Population reach

Experience in distribution25+ years

40k+ Accessible points of sale across Egypt

A Leading local Distribution Giant Consolidated Financial Highlights

Ownership Structure

69%

31%

Family members Free floatEGP 9.8bn

1,800+

Distribution Hubs

3 Main Warehouses

EGP mn FY17 FY18 FY19 Y - o - Y

Revenue 6,124 7,626 9,830 28.9%

Gross Profit 428 523 930 77.8%

EBITDA 299 353 644 82.1%

Net Profit 339 271 459 69.4%

4

Line of Business

Product Segment Brand Portfolio

Consumer ElectronicsThe consumer electronics business currently includes distribution of mobile phones, televisions, air conditioners and home appliances.

TelecomThe telecom business includes the operation of Vodafone branded retail franchises and distribution of mobile services andaccessories to individual and business customers, including pre-paid and post-paid, e-top-up terminals/credit recharge. The e payment business has significant growth potential as it taps into almost any online payment service. It is a business that is always cash positive and is a platform from which numerous value-added services can be provided to small retail clients

Automotive

The automotive business is focused on the distribution of luxury cars, namely Jaguar, Land Rover, Bentley, and Maserati and motorcycles Ducati, Victory and Polaris.

Pipes and Tractors

MTI is engaged in the distribution of premium seamless pipes usedin large-scale infrastructure and oil & gas projects as well asthe assembly and distribution of agricultural tractors.

5

History of Growth

1996 2002

Nokia Business collapsed

SIEMENSceases mobile

phone business

2005 2017

MTI becomes Carrier’s Largest Distributer in Egypt

Consumer electronics

Starts trading Siemens cell phones

MTI becomes a non-exclusivedistributor to SIEMENS, becomesone of the major NOKIA dealers

2011 2012

Samsung approached MTI to become a distributor in the

mobile phone business

MTI decides to shift to Vodafone

Telecom 19981996

MTI started distribution on Mobinil

1995 1998 20102003Automotive 1997

Tractors & Pipes 1994

MTI assembles the Belarus tractors

1992

MTI started its seamless pipes trade

2017

MTI successfully inaugurated the new SOLIS tractors assembly line in January2017 to target a more affordable market segment in tractors

MTI started distribution of Huawei mobile phones

2018

MTI Started distribution of Bosch

6

Distribution NetworkConsumer Electronics

11,968 Points of Sale

5 Samsung Retail Stores

4 Branded Stores

8 Service Centers

2 Branded Bosch Stores

Tractor and Pipes

10 Points of Sale

1 Of which owned & operated

Points of Sale

Stores (owned & operated)

27,706

86

Points of Sale

Of which owned & operated

16

4

Telecom

Automotive AutomotiveAutomotive

7

FY2019 Financial Results ReviewSolid Financial growth

Consolidated Financial Results Summary

Revenue | EGP mn Gross Profit & Margin | EGP mn, % EBITDA & Margin | EGP mn, % Net Profit & Margin | EGP mn, %

7,626

9,830

-1000

100 0

300 0

500 0

700 0

900 0

110 00

FY18 FY19

523

930

6.9% 9.5%

-100%

-80%

-60%

-40%

-20%

0%

0

100

200

300

400

500

600

700

800

900

100 0

FY18 FY19

353

644

4.6% 6.6%

-100%

-80%

-60%

-40%

-20%

0%

20%

0

100

200

300

400

500

600

700

800

FY18 FY19

271

4593.6%

4.7%

0%

1%

2%

3%

4%

5%

0

100

200

300

400

500

600

FY18 FY19

YoY 28.9%

Sources: Company Data

Standalone Financial Results Summary


6,820

7,684

620 0

640 0

660 0

680 0

700 0

720 0

740 0

760 0

780 0

800 0

FY18 FY19

492

792

7.2% 10.3%

-100%

-80%

-60%

-40%

-20%

0%

20%

0

100

200

300

400

500

600

700

800

900

FY18 FY19

334

546

4.9% 7.1%

-100%

-80%

-60%

-40%

-20%

0%

20%

0

100

200

300

400

500

600

700

FY18 FY19

258

390

3.8% 5.1%

-400%

-350%

-300%

-250%

-200%

-150%

-100%

-50%

0%

50%

0

50

100

150

200

250

300

350

400

450

500

FY18 FY19

YoY 12.7%

8

4th Quarter 2019 Financial Results ReviewSolid Financial growth

Consolidated Financial Results Summary

Standalone Financial Results Summary


114

195219

8.6% 10.0% 12.5%

-100%

-80%

-60%

-40%

-20%

0%

20%

0

50

100

150

200

250

4Q18 3Q19 4Q19

69

125141

5.2% 6.4% 8.1%

-100%

-80%

-60%

-40%

-20%

0%

20%

0

20

40

60

80

100

120

140

160

180

200

4Q18 3Q19 4Q19

36

88 94

2.8% 4.5% 5.3%

-150%

-130%

-110%

-90%

-70%

-50%

-30%

-10%

10%

0

20

40

60

80

100

120

140

160

4Q18 3Q19 4Q19

1,320

1,9511,752

0

500

100 0

150 0

200 0

250 0

4Q18 3Q19 4Q19

Revenue | EGP mn

2,1262,389

2,093

-300

200

700

120 0

170 0

220 0

270 0

320 0

4Q18 3Q19 4Q19

145

218250

6.8% 9.1% 11.9%

-100%

-60%

-20%

20%

0

50

100

150

200

250

300

4Q18 3Q19 4Q19

Gross Profit & Margin | EGP mn, % EBITDA & Margin | EGP mn, %

88

137161

4.2% 5.8% 7.7%

-100%

-80%

-60%

-40%

-20%

0%

20%

0

50

100

150

200

250

4Q18 3Q19 4Q19

Net Profit & Margin | EGP mn, %

38

104 102

1.8% 4.3% 4.9%

-150%

-130%

-110%

-90%

-70%

-50%

-30%

-10%

10%

0

20

40

60

80

100

120

140

160

180

4Q18 3Q19 4Q19


9

Consolidated Revenue Breakdown by LoB | % Standalone Revenue Breakdown by LoB | %

FY2019 Financial Results ReviewRevenue Breakdown by Line of Business


70.3%

18.9% 10.2%

71.1%

14.2%14.3%

FY18FY19

FY18

EGP 7,625 mn

FY19

EGP 9,830 mn

Tractors & Pipers

AutoTelecom

66.8%

21.1%11.4%

63.1%

18.2%

18.2%

FY18FY19

FY18

EGP 6,820 mn

FY19

EGP 7,684 mn

Tractors & Pipers

AutoTelecom

Consumer Electronics Consumer Electronics

10

Consolidated Gross Profit Breakdown by LoB | % Standalone Gross Profit Breakdown by LoB | %

FY2019 Financial Results ReviewGross Profit by Line of Business

62.2%

12.7%

22.3%

59.6%

10.7%

28.8%

Tractors & Pipers

Auto

Telecom

FY18FY19

FY18

EGP 523 mn

FY19

EGP 930 mn

59.9%

13.3%

23.7%

52.7%

12.5%

33.7%

Tractors & Pipers

Auto

Telecom

FY18FY19

FY18

EGP 492 mn

FY19

EGP 792 mn

Consumer Electronics Consumer Electronics

CONSUMERELECTRONICS

Distribution of & smartphones in the Egyptian market, through Egypt’s largest distribution network, spanning +40,000 points of sale. MTI also offers after-sales services for smartphones.

21.7%

71.1%Of FY19Revenue

+40,000Points of Sale

40%Distributed Smartphones

Market share

13Samsung Service &

Express Centers

Distribution of Consumer Appliances through our network of +12,000 retail outlets, products include , & ACs,

TVs & the entire lineup

2Branded Bosch Stores

4Branded Samsung Stores

+20%MTI

Market share

12

FY2019 Financial Results ReviewMobiles Overview – Global Smart Phone Market

Global Smart Phone Market Share| %

Global Smart phone Users Per Region | # of Users in Mns

687 735 783 851

227 300 375 346354397

441 472279310

342 403483500

518533461

498537

576

-

500 .0

1,00 0.0

1,50 0.0

2,00 0.0

2,50 0.0

3,00 0.0

3,50 0.0

4,00 0.0

2016 2017 2018 2019

Latin and North America

Europe

Middle East and Africa

Asia Pacific

India

China

22% 22% 21% 18% 22% 20% 19% 18% 21% 21% 21% 18%

9% 11% 10% 10%11% 15% 14% 15%

17% 16% 18%14%

14% 11% 12% 18% 14% 11% 12% 17% 12% 10% 12%18%

7% 8% 8% 7% 7% 8% 9%8% 8% 9%

9% 8%

48% 48% 49% 47% 46% 46% 46% 42% 42% 44% 40% 42%

0%

20%

40%

60%

80%

100 %

120 %

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19Samsung Huawei Apple Oppo Others

Sources: Counterpoint Research Market Monitor

2,491

3,1812,995

2,741

FY 2019 Global Smart phone Penetration Rate| %

Sources: Newzoo, Global Mobile Market Report

66%

60%

54%50%

46% 45% 44%

31% 30%25%

16%

0%

10%

20%

30%

40%

50%

60%

70%

Russia China Turkey Mexico Brazil Vitnam Thailand Indonesia Egypt India Pakistan

Sources: Newzoo, Global Mobile Market Report

13

FY2019 Financial Results ReviewMobiles Overview – Egypt Smart Phone Market

Mobile Sales | EGP mns

Mobile Volume Sales & Average Selling Price | # of Units in Mns, USD

2.22.6

3.0 3.0 3.0 3.03.2 3.3 3.3 3.2

3.8 3.6

136 136 141 149 163 170 175 185 185 195 200 200

(3 00.0)

(2 00.0)

(1 00.0)

-

100 .0

200 .0

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19

5,3536,326

7,622 7,9298,732 8,914

10,06411,090 10,557 10,378

12,37611,479

-

2,00 0

4,00 0

6,00 0

8,00 0

10,0 00

12,0 00

14,0 00

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19

Sources: GFK

14

797 927

4,556 4,846

0

1,0 00

2,0 00

3,0 00

4,0 00

5,0 00

6,0 00

4Q18 4Q19 FY18 FY19

1,602 1,271

5,361

6,991

0

1,0 00

2,0 00

3,0 00

4,0 00

5,0 00

6,0 00

7,0 00

8,0 00

4Q18 4Q19 FY18 FY19

FY2019 Financial Results ReviewConsumer Electronics

Consolidated Overview

Standalone Overview

96 125

324

552

6.0% 9.8% 6.0% 7.9%

-500.0%

-400.0%

-300.0%

-200.0%

-100.0%

0.0 %

0

100

200

300

400

500

600

4Q18 4Q19 FY18 FY19

Revenue | EGP mn Gross Profit & Margin | EGP mn, %



Consumer Electronics line of business whichrepresented 71% of the consolidated revenues inFY2019, increased by 30.4% Y-o-Y to reach EGP 6.9billion and the standalone revenues grew by 6.4% Y-o-Yto reach EGP 4.8 billion, mainly on the back of theMobile segment outstanding performance, with itsrevenues recorded an increase of 30.4% Y-o-Y and thehome appliances segment continued to deliver solidgrowth, with its revenues increased by 30.8% Y-o-Y. Themobile segment still representing the majorcontributor with 86% of total consolidated consumerelectronics revenues in FY2019 and the remaining 14%was coming from the home appliances segment.

65 94

293

417

8.2% 10.2% 6.4% 8.6%

-500.0%

-400.0%

-300.0%

-200.0%

-100.0%

0.0 %

0

50

100

150

200

250

300

350

400

450

500

4Q18 4Q19 FY18 FY19

TELECOM


50%Vodafone Distribution

Market share

86Operated Vodafone Stores

Partnership with allowing MTI to act as a distributor for the prepaid scratch cards and electronic top up, as well as operating franchised Express shops

85.0%

14.2%Of FY19Revenue

192Operated Franchise Terminals

16

345 363 347

1,440 1,400

1001031061091121151181211241271301331361391421451481511541571601631661691721751781811841871901931961992022052082112142172202232262292322352382412442472502532562592622652682712742772802832862892922952983013043073103133163193223253283313343373403433463493523553583613643673703733763793823853883913943974004034064094124154184214244274304334364394424454484514544574604634664694724754784814844874904934964995025055085115145175205235265295325355385415445475505535565595625655685715745775805835865895925955986016046076106136166196226256286316346376406436466496526556586616646676706736766796826856886916946977007037067097127157187217247277307337367397427457487517547577607637667697727757787817847877907937967998028058088118148178208238268298328358388418448478508538568598628658688718748778808838868898928958989019049079109139169199229259289319349379409439469499529559589619649679709739769799829859889919949971,0 001,0 031,0 061,0 091,0 121,0 151,0 181,0 211,0 241,0 271,0 301,0 331,0 361,0 391,0 421,0 451,0 481,0 511,0 541,0 571,0 601,0 631,0 661,0 691,0 721,0 751,0 781,0 811,0 841,0 871,0 901,0 931,0 961,0 991,1 021,1 051,1 081,1 111,1 141,1 171,1 201,1 231,1 261,1 291,1 321,1 351,1 381,1 411,1 441,1 471,1 501,1 531,1 561,1 591,1 621,1 651,1 681,1 711,1 741,1 771,1 801,1 831,1 861,1 891,1 921,1 951,1 981,2 011,2 041,2 071,2 101,2 131,2 161,2 191,2 221,2 251,2 281,2 311,2 341,2 371,2 401,2 431,2 461,2 491,2 521,2 551,2 581,2 611,2 641,2 671,2 701,2 731,2 761,2 791,2 821,2 851,2 881,2 911,2 941,2 971,3 001,3 031,3 061,3 091,3 121,3 151,3 181,3 211,3 241,3 271,3 301,3 331,3 361,3 391,3 421,3 451,3 481,3 511,3 541,3 571,3 601,3 631,3 661,3 691,3 721,3 751,3 781,3 811,3 841,3 871,3 901,3 931,3 961,3 991,4 021,4 051,4 081,4 111,4 141,4 171,4 201,4 231,4 261,4 291,4 321,4 351,4 381,4 411,4 441,4 471,4 501,4 531,4 561,4 591,4 621,4 651,4 681,4 711,4 741,4 771,4 801,4 831,4 861,4 891,4 921,4 951,4 98

4Q18 3Q19 4Q19 FY18 FY19

FY2019 Financial Results ReviewTelecommunication

Telecommunication Overview

18 26 28

66

995.2%

7.2% 8.2%

4.6%7.1%

-20.0%

-15.0%

-10.0%

-5.0%

0.0 %

5.0 %

10. 0%

-10

10

30

50

70

90

110

4Q18 3Q19 4Q19 FY18 FY19



The telecom line of business which represents 14.2% of the consolidated revenues in FY2019, showed a slight decrease in revenues by 2.8% Y-o-Y to reach EGP 1.4 billion compared to EGP 1.44 billion in FY2018, on the back of the demand shifting from the scratch cards to

the electronic top up through Bee and Masary electronic payment platforms.

AUTOMOTIVE

16Points of Sale

#1Importer and Distributor of

Luxury cars in Egypt

4Owned & Operated POS

Largest importer and distributor of luxury cars & motorcycles in Egypt, exclusive agent for , , , &

80.0%

14.3%Of FY19Revenue

18

160 369 470

777

1,402

0

200

400

600

800

1,0 00

1,2 00

1,4 00

1,6 00

4Q18 3Q19 4Q19 FY18 FY19

FY2019 Financial Results ReviewAutomotive

Automotive Overview



The automotive line of Business which represents 14.3% of the consolidated revenues in FY2019, continued its positive momentum where the revenues increased by 80.3% Y-o-Y to reach EGP 1.4 billion compared to EGP 777 million in FY2018, while in 4Q19 the revenues increased by 27.4% Q-o-Q to reach EGP 470 million. The sales volume increased 107% Y-o-Y and 30.3% Q-o-Q to reach 262 cars in 4Q19.

25 7394

116

26515.6%

19.8% 20.0%

15.0%

19.0%

0.0 %

2.0 %

4.0 %

6.0 %

8.0 %

10. 0%

12. 0%

14. 0%

16. 0%

18. 0%

20. 0%

0

50

100

150

200

250

300

4Q18 3Q19 4Q19 FY18 FY19

Assembly and distribution of agricultural tractors, namely& ; MTI is also one of the suppliers of seamless steel pipes in Egypt

TRACTORS & PIPES

98.0%

1Tractors Assembly Line

10Points of Sale

1Owned & Operated POS

0.4%Of FY19Revenue

20

19

7 7

46

37

0

5

10

15

20

25

30

35

40

45

50

4Q18 3Q19 4Q19 FY18 FY19

FY2019 Financial Results ReviewTractors & Pipes

Tractors & Pipes Overview



61 1

15

8

32.0%

16.0% 15.0%

33.1%

21.5%

0.0 %

5.0 %

10. 0%

15. 0%

20. 0%

25. 0%

30. 0%

35. 0%

-1

1

3

5

7

9

11

13

15

17

4Q18 3Q19 4Q19 FY18 FY19

The tractors and pipes line of business which represents 0.4% of the consolidated revenues in FY2019, decreased by 21.1% Y-o-Y to reachEGP 37 million compared to EGP 46 million in FY2018.

Kanawat is considered the fastest growing distributor in Egypt with a comprehensive market coverage and is one of the five authorized dealers for Samsung mobile and the second distributor of Nokia mobile phones in the Egyptian market and the exclusive distributor for the Chinese premium mobile accessories brand – Baseus, Japanese TV brand Synix and AC brand Daikin.

+350MBook Value in EGP


+130MPaid in Capital in EGP

70.5%Ownership in Kanawat

15Retail Outlets – K Mobile

15Distribution Hubs

22

FY2019 Financial Results ReviewKanawat Financial Summary


EBITDA & Margin | EGP mns, % Net Profit & Margin | EGP mns, %

Revenue | EGP mns Gross Profit & Margin | EGP mns, %

805439 361

2,685

2,169

-

500 .0

1,00 0.0

1,50 0.0

2,00 0.0

2,50 0.0

3,00 0.0

4Q18 3Q19 4Q19 FY18 FY19

31 22 30

115135

3.8% 5.1% 8.3% 4.3% 6.3%

-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0 %

-

20.0

40.0

60.0

80.0

100 .0

120 .0

140 .0

160 .0

180 .0

4Q18 3Q19 4Q19 FY18 FY19

19 11 19

8595

2.4% 2.6% 5.2% 3.2% 4.4%

-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0 %

-

20.0

40.0

60.0

80.0

100 .0

120 .0

140 .0

4Q18 3Q19 4Q19 FY18 FY19

11 3 9

6355

1.4% 0.7% 2.5% 2.3% 2.5%

-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0 %

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100 .0

4Q18 3Q19 4Q19 FY18 FY19

Investments supporting and complementing MTI’s core distribution business, through which invests in Non-banking Financial Institutions such as , & and .

+340Paid in Capital in EGP mn

+44MTransactions Value per Day in

EGP

10.7%Direct Ownership in Masary

49.9%Ownership in Ebtikar

+120kPoints of Sale

+2BnPortfolio Size in EGP

24

Non Banking Financial Services

MTI B Investments & BPE Partners

Ebtikar for Financial Investment

49.9% 50.1%

Electronic PaymentMortgage Finance , Leasing

& Auto financeMicrofinance

Consumer finance

60% 45.4%

• Ebtikar,TCV and Acquire collectively through a holding company has acquired 87% of Tamweel Group.

• Tamweel Group is a platform of 5 companies that operate in leasing, Mortgage finance, Factoring, Insurance Brokerage, Collection and the most recent established Auto finance company.

100%

• Vitas Egypt received the final license to commence the microfinance operations in January 2019.

• Vitas Egypt aims to capitalizing on Egypt’s widely unbanked population through adopting international best practices.

69.8%

• Masary is a leading company operating in the Electronic Payments sector in Egypt with around 55,800 Points of Sale.

• Bee is a pioneering technology company in the field of payment solutions with around 63,300 Points of Sale.

10.7%

25

FY2019 Financial Results ReviewNon Banking Financial Services

Electronics Payments Overview


Transactions Value | EGP Bn

Revenue & Commission | EGP mn, % Gross Profit & Margin | EGP mn, %

5 7

89

13

16

0

2

4

6

8

10

12

14

16

18

20

FY18 FY19

Bee Masary

YoY 23%

Avg. Daily Transactions Value | EGP mn

446487

3.4% 3.1%

-100%

-80%

-60%

-40%

-20%

0%

20%

0

100

200

300

400

500

600

FY18 FY19

161182

36.0% 37.0%

-200%

-150%

-100%

-50%

0%

50%

0

20

40

60

80

100

120

140

160

180

200

FY18 FY19

Number of POS Terminals | 000’

54 63

6256

116 119

0

20

40

60

80

100

120

140

FY18 FY19

Bee Masary

EBITDA & Margin | EGP mn, %

14 19

2325

3744

0

10

20

30

40

50

60

FY18 FY19

Bee Masary

YoY 19%

15

27

3.5% 5.5%

-200%

-150%

-100%

-50%

0%

50%

0

5

10

15

20

25

30

35

40

FY18 FY19

26


Tamweel Overview


Total Portfolio Size | EGP mn Interest Income & Margin | EGP mn, %

Net Interest Income & Margin | EGP mn, %

1,591

2,083

0

500

100 0

150 0

200 0

FY18 FY19

YoY 31%

New Originations| EGP mn

493

1,114

0

200

400

600

800

100 0

120 0

140 0

FY18 FY19

298

356

30.5% 29.2%

-1000%

-800%

-600%

-400%

-200%

0%

200 %

0

50

100

150

200

250

300

350

400

450

500

FY18 FY19

91104

6.5% 5.9%

-200%

-150%

-100%

-50%

0%

50%

0

20

40

60

80

100

120

140

160

180

200

FY18 FY19

YoY 126%

Debt to Equity | EGP mn, x

1,269

1,681298

3534.3

4.8

-

5.00

0

500

100 0

150 0

200 0

250 0

FY18 FY19Debt Equity

Book Value| EGP mn

304358

0

50

100

150

200

250

300

350

400

450

500

FY18 FY19

27


Vitas Overview


+39MDisbursed Loans in EGP

+38MOutstanding Portfolio in EGP

+25kAverage Ticket Size in EGP

+1500Number of Active Loans

28Sources: Mubasher Pro,

MTI Share PerformanceMTI vs EGX30 Rebased

5

6

7

8

9

10

11

12

13

EGP

per

Sh

are

MTI EGX30 Rebased

29

Investment Highlights

Strong distribution platform

• Strong distribution and retail network with nationwide geographical coverage and access to over ~40,000 points of sale, constituting a high entrybarrier to the market

Diverse portfolio of products

• Multiple lines of business with a diverse portfolio of products at differentstages of maturity leveraging strong brand partners

Responsiveness to rapidly changing environment

• Flexibility in adapting to changes in market dynamics and the ability to changebrand and product affiliations as market trends change course due to shifts intechnology and/or consumer preferences

Promising future prospects

• Future growth plans and healthy prospects across existing and new lines of business

~40kpoints of

sale

Dealerdatabase &

credit scoring

Fleet of128 cars

Strongcredit

controls & follow-up

37 distributionbranches & 108

retail outlets

Tracking & monitoring

systems

30

Management Biographies

Mr. Khaled Mahmoud (Executive Chairman and CEO)

Mr. Khaled Mahmoud has over 30 years of experience in the distribution and retail businesses across various business segments. He is also an experienced investor where he invests

opportunistically in private equity and investment securities across various industries both locally and internationally.

He serves on the board of several family investments of substantial size, such as Egypac, New Finepac, the Egyptian Company for Liner and Fluting Production ‘ELF’, which combined are

the leading producer of linerboard and corrugated packaging products in Egypt. He serves on the board of the Egyptian-Belgium Company for aluminium door and window systems

‘EGYBEL’, a pioneer in the local market.

Previously Mr. Khaled served as a board member of the Chamber of Commerce and the Egyptian National Competitiveness Council (ENCC). Khaled has held other several key positions

throughout his career as a former Board member in the Egyptian Junior Businessmen Association and Beltone Financial.

Mr.Khaled holds a B.S in Commerce and a MBA from Ain Shams University and is proficient in Arabic, English and French.

Mr. Khaled is the Managing Director of the consumer and telecom businesses. He brings over 30 years of experience in the Egyptian distribution industry, He joined MTI in 1992 as a member of

the Tractors and Pipes sales force. In 1998, he became the General Manager of the Telecom Business alongside the Tractors and Pipes business. Mr. Seoudi has been instrumental to the

success MTI as he helped expanding the businesses across various geographies. He has been a critical force in the development of the branch network and in instituting the operational controls

that enabled the growth of the business.

Mr. Khaled holds a BSc. of Commerce from Ain Shams University is proficient in Arabic, English and French.

Mr. Khaled Seoudi (CEO - Consumer Electronics and Telecom)

Eng. Ahmed has spent over 23 years MTI and is currently the Managing Director of the Automotive business. He joined MTI in 1992 with a mandate to launch new projects and new operations.

Ahmed has made valuable contributions in opening new channels of business for MTI with various global manufacturers from Russia, Ukraine and the Czech Republic. His focus shifted towards

the Automotive business in 2001 where he has succeeded in enhancing efficiency and profitability in the last 14 years. Prior to MTI, he was a Service Engineer at Baker & Hughes.

Eng. Ahmed holds a BSc. of Electrical Engineering from Ain Shams University and is proficient in Arabic, English and French.

Eng. Ahmed Gharib (CEO - Automotive)

Mrs. Zakia has over 25 years of experience at MTI. She has headed the Finance and Administration functions overseeing all financial aspects of the business.

Ms. Zakia has added great value to the business in the areas of budgeting, tax planning, costing and conservation/growth in assets. She has a proven track record in capital budgeting for new

projects undertaken by the Group

Mrs. Zakia Abbas (Chief Financial Officer)

31

Management Biographies Cont’d

Mr. Salah Mahmoud (Executive Director– Consumer Electronics)

Mr. Salah has over 8 years of experience at MTI where he has held various positions within the sales and marketing departments including; Mobile Network Operators Sales Manager,

Organized Retail Key Accounts Manager, Assistant Marketing Manager and Director of TV and Mobile business. Mr. Salah currently serves as the Executive Director of Consumer Electronics

business.

Mr. Salah holds a B.A in Economics from the American University in Cairo and is proficient in Arabic, English and French.

Mr. Ashraf EL Ghannam (Head of Investor Relations and Business Development)

Mr. Ashraf has over 13 years of experience in the financial field. He joined MTI in 2017 after the IPO to be responsible for establishing the IR department and to provide strategic insight and

financial assessments of potential growth & partnerships/M&A opportunities, as well as post-alliance analysis and integration capabilities. Before joining he held various positions in a leading

Industrial company and Investment Banks.

Mr. Ashraf holds a B.A in Actuarial Science from Cairo University and is proficient in Arabic and English.

Ms. Sally Kheir (Investor Relations Officer)

Ms. Sally has been with the Company since early 1998 in the beginning of 2016, she became responsible for Investor Relations and the management of information to and from key business

executives in the organization.

Ms. Sally holds a Bachelor of Arts from Helwan University and a Masters of International Business Administration from the École Supérieur Libre des Sciences Commerciales Appliquées

(ESLSCA) in Paris, France.

32

Board of Directors Biographies

Mr. Khaled Mahmoud has over 30 years of experience in the distribution and retail businesses across various business segments. He is also an experienced investor where he invests

opportunistically in private equity and investment securities across various industries both locally and internationally.

He serves on the board of several family investments of substantial size, such as Egypac, New Finepac, the Egyptian Company for Liner and Fluting Production ‘ELF’, which combined are

the leading producer of linerboard and corrugated packaging products in Egypt. He serves on the board of the Egyptian-Belgium Company for aluminium door and window systems

‘EGYBEL’, a pioneer in the local market.

Previously Mr. Khaled served as a board member of the Chamber of Commerce and the Egyptian National Competitiveness Council (ENCC). Khaled has held other several key positions

throughout his career as a former Board member in the Egyptian Junior Businessmen Association and Beltone Financial.

Mr.Khaled holds a B.S in Commerce and a MBA from Ain Shams University and is proficient in Arabic, English and French.

Mr. Khaled Mahmoud (Executive Chairman)

Mr. Hany Mahmoud has over 30 years of experience in the industrial/manufacturing sector. He is the chairman and CEO of MM Group paper and packaging companies, and has been a

primary catalyst of the Group. His expertise in strategic business planning and development has allowed him to grow the businesses exponentially, becoming the largest producer and

supplier in the Egyptian market. Hany has capitalized on a vast network of relationships with neighboring countries in the region to grow and develop the business.

Mr.Hany is a member of the 10th of Ramadan Investors Association.

Mr. Hany holds a B.A in Management and Trading from Ain Shams University.

Mr. Hany Mahmoud (Non-Executive Director)

Ms. Mervat Mahmoud (Non-Executive Director)

Ms. Mervat Mahmoud is a prominent entrepreneur in Egypt with over 26 years of expertise across various industries. She is the Chairman of several Egyptian companies such as

‘GYMAPPAREL’, a leading sportswear company and 2M company for shoes and leather products. She serves on the boards of several family investments of substantial size, such as

Egypac, New Finepac, the Egyptian Company for Liner and Fluting Production ‘ELF’, which combined are the leading producer of linerboard and corrugated packaging products in Egypt.

Mervat also is a Director of the Egyptian-Belgium company for aluminium door and window systems ‘EGYBEL’.

Ms. Mervat is an active member with the Federation of Egyptian Industries, as she is currently a board member for the Chamber of Leather Industries and a member of multiple

committees at the Federation, namely the Technical and Professional Training Development Committee, New and Renewable Energy Committee and the Human Resources Development

Committee.

Ms. Mervat holds a B.S from the Faculty of Arts at Helwan University

33

Board of Directors Biographies Cont’d

Dr. Ali Dayekh has over 30 years of experience in the construction and construction materials sector. He is the President and CEO at Saudi Group for Construction. He is a Member of theAdvisory Board of Gulf Capital, Credit Agricole Bank Egypt and Modern Industries Company and he is investing in a well diversified sectors like trading, banking, manufacturing, fashion and

finance in different countries.

Previously Dr. Ali served as a chairman of several companies in the contracting, construction and glass panels and frames construction industries such as Aleco ( Al Riyadh Electricity Company),

Silver Window Construction, Saudi Aluminum Factory, Al Arif contracting Saudi Arabia and Ali Dayekh Real estate development. In addition, he has been the founding partner in several

successful companies like Al Tayyar travels in KSA, Advanced polypropylene in KSA, Al Salam Bank in Bahrain and Algeria, Masheed Arabia company.

Dr. Ali received his Ph.D. in philosophy and Management research from Kensington University in USA and Bachelor of Business Administration from Richmond University in UK.

Dr. Ali Hassan Dayekh (Non-Executive Director)

Mr. Khaled is the Managing Director of the consumer and telecom businesses. He brings over 30 years of experience in the Egyptian distribution industry, He joined MTI in 1992 as a member of

the Tractors and Pipes sales force. In 1998, he became the General Manager of the Telecom Business alongside the Tractors and Pipes business. Mr. Seoudi has been instrumental to the

success MTI as he helped expanding the businesses across various geographies. He has been a critical force in the development of the branch network and in instituting the operational controls

that enabled the growth of the business.

Mr. Khaled holds a BSc. of Commerce from Ain Shams University is proficient in Arabic, English and French.

Mr. Khaled Seoudi (Executive Director)

Eng. Ahmed has spent over 23 years MTI and is currently the Managing Director of the Automotive business. He joined MTI in 1992 with a mandate to launch new projects and new operations.

Ahmed has made valuable contributions in opening new channels of business for MTI with various global manufacturers from Russia, Ukraine and the Czech Republic. His focus shifted towards

the Automotive business in 2001 where he has succeeded in enhancing efficiency and profitability in the last 14 years. Prior to MTI, he was a Service Engineer at Baker & Hughes.

Eng. Ahmed holds a BSc. of Electrical Engineering from Ain Shams University and is proficient in Arabic, English and French.

Eng. Ahmed Gharib (Executive Director)

Mr. Salah has over 8 years of experience at MTI where he has held various positions within the sales and marketing departments including; Mobile Network Operators Sales Manager,

Organized Retail Key Accounts Manager, Assistant Marketing Manager and Director of TV and Mobile business. Mr. Salah currently serves as the Executive Director of Consumer Electronics

business.

Mr. Salah holds a B.A in Economics from the American University in Cairo and is proficient in Arabic, English and French.

Mr. Salah Mahmoud (Executive Director)

34

Board of Directors Biographies Cont’d

Ms. Yasmin has more than 18 years of experience in the financial services industry, having held positions in regional investment banks including EFG-Hermes and Beltone Financial. During her

tenure at Beltone, where she was Deputy Head of Asset Management, and later, Head of Business Development, she was instrumental in launching innovative products that cater to varying client

risk-return requirements and managing equities. Prior to 2004, at EFG-Hermes, she was responsible for covering the Middle East and North Africa (MENA) markets and managing one of the first

funds investing in the MENA region.

Ms. Yasmin graduated from the American University in Cairo with a BA in Economics.

Ms. Yasmin Aly (Independent Director)

Dr. Ziad has over 30 years of experience in the financial law, governance, compliance, and economic legislation.

He is a former Member of Parliament representing Assiut (2012) and was the Deputy Prime Minister for Economic Development and Minister of International Cooperation (2013-2014),

Executive Chairman of the Egyptian Financial Supervisory Authority (“EFSA”) (2009-2011) and the Executive Chairman of the Egyptian General Authority for Investment and Free Zones

(2004-2007). He is also a former non-executive member of the Board of Directors of the Central Bank of Egypt (2004-2011), the National Bank of Egypt (2005-2010), and a former Senior

Legal Advisor to the Central Bank of Egypt (2011). From 2000 to 2004, Dr. Bahaa-Eldin was a practicing lawyer in Egypt, and from 1997 to 2000 the Senior Legal Advisor to the Minister of

Economy. Prior to this, he was in private legal practice in Cairo and Washington, DC. Dr. Bahaa-Eldin was also an adjunct lecturer at the Faculty of Law at the Cairo University (1998-2004).

He is the founder and member of the Board of Directors of the Ahmed Bahaa-Eldin Cultural Foundation, and is a member of the Board of Trustees of the American University in Cairo.

Dr. Ziad received his Ph.D. in Financial Law from the London School of Economics (1997), an LL.M. in International Business Law from King’s College London (1989), a BA in Economics

from the American University in Cairo (1987) and a Bachelor of Law degree from Cairo University (1986).

Dr. Ziad Bahaa Eldin (Independent Director)

FINANCIALS

36

MTI Standalone Income Statement

Income Statement MTI Standalone | EGP FY18 FY19 YoY 4Q18 4Q19 YoYSales 6,820,352,322 7,684,466,318 12.7% 1,320,423,926 1,752,153,901 32.7%Cost of Sales (6,328,232,986) (6,892,187,206) 8.9% (1,206,354,413) (1,532,689,670) 27.1%Gross Profit 492,119,336 792,279,112 61.0% 114,069,513 219,464,231 92.4%Margin % 7.22% 10.31% 8.64% 12.53%

Sales & Distribution Expenses (153,384,200) (239,863,056) 56.4% (44,159,809) (75,900,617) 71.9%General & Administrative Expenses (5,026,938) (6,037,594) 20.1% (1,264,698) (2,094,110) 65.6%SG&A / Sales % -2.32% -3.20% -3.44% -4.45%

EBITDA 333,708,198 546,378,462 63.7% 68,645,006 141,469,504 106.1%Margin % 4.89% 7.11% 5.20% 8.07%

Depreciation (9,509,476) (8,782,563) -7.6% (3,035,345) (1,799,377) -40.7%EBIT 324,198,722 537,595,899 66.0% 65,609,661 139,670,127 112.9%Margin % 4.75% 6.99% 4.97% 7.97%

Finance Expenses (15,591,566) (29,870,479) 91.6% (9,269,716) (10,085,954) 8.8%Credit Interest 7,263,419 13,058,370 79.8% 2,084,828 2,793,569 34.0%Provisions 9,165,192 (561,157) -106.1% 4,310,627 96,825 -97.8%Capital Gains - 144,881 NA - - NADividends 16,875,000 - NA - - NAIncome from Investment Property 5,989,513 6,853,899 14.4% 1,519,018 1,913,857 26.0%Gains from Sales of Investments at Fair Value (5,081,541) 3,464,643 168.2% (5,019,386) 698,368 -113.9%Gains from Sales of Investments Available for Sale 42,010 (53,341) -227% - - NAImpairments on AR and Inventory (loss)/Gain (1,816,480) (7,156,402) 294% (1,816,480) (7,156,402) 294.0%Solidarity Contribution to Medical Insurance Expense (8,182,905) (16,029,402) 95.9% (8,182,905) (1,111,726) -86.4%FX Gains & Losses (3,424,259) 3,508,154 202.5% (1,463,827) (3,199,519) 118.6%EBT 329,437,105 510,955,065 55.0% 47,771,820 123,618,875 158.8%Margin % 4.83% 6.64% 3.62% 7.06%

Income Tax & Deferred Tax (71,005,063) (120,586,127) 69.8% (11,489,837) (30,074,249) 161.7%Net Profit 258,432,042 390,368,938 51.1% 36,281,983 93,544,626 157.8%Margin % 3.79% 5.08% 2.75% 5.34%

37

MTI Consolidated Income Statement

Income Statement MTI Consolidated | EGP FY18 FY19 YoY 4Q18 4Q19 YoYSales 7,625,721,789 9,830,061,523 28.9% 2,125,793,393 2,096,108,664 -1.4%Cost of Sales (7,102,600,300) (8,899,739,649) 25.3% (1,980,721,727) (1,845,793,238) -6.8%Gross Profit 523,121,489 930,321,874 77.8% 145,071,666 250,315,426 72.5%Margin % 6.9% 9.5% 6.8% 11.9%

Sales & Distribution Expenses (161,772,782) (268,638,407) 66.1% (52,548,391) (83,736,529) 59.4%General & Administrative Expenses (8,149,401) (18,067,632) 121.7% (4,364,375) (5,571,634) 27.7%SG&A / Sales % -2.2% -2.9% -2.7% -4.3%

EBITDA 353,199,306 643,615,835 82.2% 88,158,900 161,007,263 82.6%Margin % 4.6% 6.6% 4.2% 7.7%

Depreciation (10,444,649) (13,921,343) 33.3% (3,970,518) (3,438,531) -13.4%EBIT 342,754,657 626,694,492 82.8% 84,188,382 157,568,732 87.2%Margin % 4.5% 6.4% 3.9% 7.5%

Finance Expenses (15,591,566) (34,895,123) 123.8% (9,269,716) (13,003,328) 40.3%Credit Interest 7,349,051 13,189,872 79.5% 2,170,460 2,818,979 29.9%Provisions 9,165,192 (561,157) -106.1% 4,310,627 96,825 -97.8%Capital Gains - 144,881 NA - - NAInvestment Income 22,774,517 30,748,502 35.0% (5,640,624) 781,878 -113.9%Income from Investment Property 5,989,513 6,853,899 14.4% 1,519,018 1,913,587 26.0%Gains from Sales of Investments at Fair Value (5,081,541) 3,464,643 -168.2% (5,019,386) 698,368 -113.9%Gains from Sales of Investments Available for Sale 42,010 (53,341) -227.0% - - NAImpairments on AR and Inventory (loss)/Gain (1,816,480) (7,640,933) 320.6% (1,816,480) (7,156,402) 294.0%Solidarity Contribution to Medical Insurance Expense (11,391,779) (21,452,994) 88.3% (11,391,779) (2,016,124) -82.3%FX Gains & Losses (3,971,963) (5,169,942) 30.2% (2,011,531) (4,662,091) 131.8%Minority Interest (4,281,107) (16,124,293) 277.0% (4,281,335) (3,317,734) -22.5%EBT 345,940,504 598,198,506 72.9% 52,757,636 133,722,690 153.5%Margin % 4.5% 6.1% 2.5% 6.4%

Income Tax & Deferred Tax (74,694,818) (138,731,654) 85.7% (15,179,592) (31,505,213) 107.5%Net Profit 271,245,686 459,466,852 69.4% 37,578,044 102,217,477 172.0%Margin % 3.6% 4.7% 1.8% 4.9%

38

Balance Sheet MTI Standalone | EGP FY2018 FY2019Inventory 519,959,879 757,032,255 Receivables & Notes Receivable 326,764,400 430,742,988 Due from Related Parties 9,651,016 6,633,822 Advances to Suppliers 250,097,384 177,719,095 Debtors & Other Debit Balances 81,113,848 132,500,846 Investments at Fair Value 89,849,390 50,211,472 Cash & Cash Equivalents 91,420,491 135,706,553 Current Assets 1,368,856,408 1,690,547,031 Fixed Assets 58,721,549 64,335,227 Investment Property 2,298,477 1,841,501 Projects Under Construction 402,350 1,230,624 Deferred Tax Asset 8,938 -Investments in Associates 356,129,270 498,655,795 Investments Available for Sale 133,778 -Non-current Assets 417,694,362 566,063,147 Total Assets 1,786,550,770 2,256,610,178 Provisions 28,955,382 29,516,539 Credit Bank 178,210,205 185,751,425 Due to Related Parties 174,186,172 118,920,152 Customers Advance Payments 118,917,365 162,286,479 Suppliers & Notes Payable 289,505,213 380,964,667 Creditors & Other Credit Balances 48,820,279 38,915,550 Accrued Income Tax 9,849,886 61,058,308 Current Liabilities 848,444,502 977,413,120 Deferred Tax Liability - 663,168Non-current Liabilities - 663,168Total Liabilities 848,444,502 978,076,288 Issued & Paid-up Capital 306,900,000 383,625,000 Legal Reserve 32,294,029 45,215,631 General Reserve 64,462,273 64,462,273 Net Profit 258,432,042 390,368,938 Investments Revaluation Reserve (109,950) -Retained Earnings 276,127,874 394,862,048 Total Equity 938,106,268 1,278,533,890

MTI Standalone Balance Statement

39

MTI Consolidated Balance SheetBalance Sheet MTI Consolidated | EGP FY2018 FY2019Inventory 798,722,808 1,101,305,669 Receivables & Notes Receivable 402,024,044 507,408,742 Due from Related Parties 9,392,660 4,279,957 Advances to Suppliers 397,056,796 314,570,811 Debtors & Other Debit Balances 101,619,578 204,781,102 Investments at Fair Value 89,849,390 50,211,472 Cash & Cash Equivalents 98,040,434 149,381,124 Current Assets 1,896,705,710 2,331,938,877 Fixed Assets 65,011,485 76,496,834 Investment Property 2,298,477 1,841,501 Projects Under Construction 402,350 1,230,624 Deferred Tax Asset 230,413 -Investments in Associates 250,739,867 401,048,237 Investments Available for Sale 133,778 -Non-current Assets 318,816,370 480,617,196 Total Assets 2,215,522,080 2,897,165,088 Provisions 28,955,382 29,516,539 Credit Bank 178,210,205 280,314,215 Due to Related Parties 201,561,175 116,547,206 Customers Advance Payments 155,313,675 187,884,850 Suppliers & Notes Payable 431,262,030 535,961,282 Creditors & Other Credit Balances 54,275,302 48,904,115 Accrued Income Tax 28,657,593 78,479,670 Current Liabilities 1,078,235,362 1,277,607,877 Deferred Tax Liability - 1,165,858 Non-current Liabilities - 1,165,858 Total Liabilities 1,078,235,362 1,278,773,735 Issued & Paid-up Capital 306,900,000 383,625,000 Legal Reserve 32,294,029 45,215,631 General Reserve 64,462,273 64,462,273 Net Profit 271,245,686 459,466,852Non-controlling Interest 113,730,348 104,206,372 Investments Revaluation Reserve (109,950) -Retained Earnings 348,764,332 476,806,210 Total Equity 1,137,286,718 1,533,782,338

Thank you

Investor Relations Contact Information :

Ashraf El Ghannam, Head of Investor Relations and Business Development

Sally Kheir, Investor Relations Officer

Mob. : +2 0100 555 3070

Tel. : +2 (02) 24024332

email: [email protected]

Web site : www.mti-mmgroup.com

investor presentation fourth quarter 2019 - mti-mmgroup.comof the presentation and mti’sliability...

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