investor presentation -...
TRANSCRIPT
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Investor Presentation
Q3 / 9M 2020
www.mepco.biz1
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Shareholding structure and share information
Shareholding structure Share information
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23.23%
7.14%
9.50%60.13%
Abdulkadir AlMuhaidib & Sons Co.
Lafana Holding
Abdullah AlMuammar
Free Float
Share Information
Market Tadawul, Saudi Arabia
Currency SAR
ISIN code SA13Q050IP16
Listing date 3 May 2015
Financial year end 31 December
Authorized capital (SAR) 500,000,000
Issued shares 50,000,000
Paid capital (SAR) 500,000,000
Par value (SAR) 10.00
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The Board of Directors
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Management
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Sami Al Safran – CEO• Over 25 years of professional experience• 19 years in the paper industry• Chemical Engineering graduate of King Fahd
University of Petroleum & Minerals (KFUPM)
Mohamed Saleh Darweesh – CFO• Over 25 years of experience in financial
management• Doctorate in Finance, USA• Certified Public Accountant (CPA), California,
USA
Wadia Malibari – COO• Over 25 years of experience• 10 years of experience with MEPCO and
WASCO• Qualified Chemical Engineer with an MBA
Najib Fakih Ibrahim – President, WASCO• Over 37 years of industry experience• 15 years of experience in waste management• 20 years of experience with Savola Group• Chemical Engineering graduate of KFUPM
Abdul Razik Askalani – Plant Manager• Over 28 years of relevant experience• 14 years of experience with MEPCO• Graduated with a BSc in Geo-Chemistry
Ahmad El Fazary– Chief Commercial Officer• Over 12 years of international marketing
experience• 5 years of experience at MEPCO• Post-Graduate diploma in International
Trading
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Local inputs, global output
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80%
50%
A domestic operation using local components extensively
Around half of production is exported generating c. $ 100 million annually
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Alignment with Saudi Vision 2030
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MEPCO is in complete uniformity with the Saudi 2030 vision by virtue of its operational model. This uniformity is achieved through:
Supporting Local Industry By using 80% local content worth > SAR 400 million in 2019, encouraging local industry
Spreading the Saudi Export Footprint
MEPCO allocates around half of its production to export markets. 2019 annual export sales of SAR 353 million (c. $100 million)
Growing The Non-petrochemical Sector
MEPCO is a non-petrochemical company that produces an international commodity (Containerboard)
Eco-friendly MEPCO’s core operational model is based on recycling, supporting the environmental dimension of the Saudi 2030 vision
Saudization
Reaching close to 50% (platinum level) against the requirement of 20%. MEPCO invested SAR 20 million to establish HIPIT-Higher Institute of Paper & Industrial Technologies that educates Saudi youth the Paper technology. Many of graduates work in MEPCO after graduation
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About MEPCO
• MEPCO is the largest containerboard manufacturer for the secondary packaging industry in MENA region* with backward-integrated operations encompassing raw material sourcing and production.
• With a total installed capacity of 475,000 tons, it accounts for 53% of the Saudi containerboard market. In addition to containerboard, MEPCO also produces coreboard, plasterboard, absorbent Kraft, white top liner, Dual, Kraft liner and Semi Chemical Fluting.
• Waste Collection and Recycling Company (WASCO), is an integrated 100% subsidiary of MEPCO that supplies 85% of its raw material needs of recycled paper.
* MENA definition excludes Turkey and Israel.
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Production MEPCO
Raw Material Sourcing WASCO
Conversion
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Ecology concept
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MEPCO uses recoveredpaper and industriallwaste water as inputs
This saves theenvironment from wastehazards and achieves abalances ecological system
MEPCO produces its ownpower with a capacity of48 MWC
B
A
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Evolution of Installed Capacity
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Key Partners
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An integrated subsidiary of MEPCO, established in 2004 and specialized in management of recyclable waste paper and other materials
An educational institution established in 2013 by MEPCO for Saudi students taking the Academic Diploma in Paper & Industrial Technologies
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Benefits of paper recycling
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Energy conservation• Uses 28-70%
less energy• Uses less water• Puts industrial
waste water to good use
Forest conservation• Preserves
natural ecosystems
Pollution reduction• Reduces the
need for landfills and incinerators
• Prevents water pollution
Recycling paper has a quantifiable impact on the global environment and on industry, replacing polluting manufacturing processes with renewable, greener and more efficient technology, while allowing forests to thrive and grow
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Financial Review
As of September 30, 2020
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Financial performance: KPIs (SAR)
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44,772
25,217
111,712105,603
43,513
31,205
94,775
110,476
11,440
383
2,613
15,947
0
100,000
200,000
300,000
400,000
500,000
600,000
0
20,000
40,000
60,000
80,000
100,000
120,000
Q2 20 Q3 20 9M 19 9M 20
SA
R (0
00
)
SA
R (0
00
)
GP EBITDA NP Revenues
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Financial performance: KPIs (margins)
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23.1%
15.1%
20.7%19.7%
22.5%
18.6%17.6%
20.7%
5.9%
0.2%0.5%
3.0%
0
0.2
0.4
0.6
0.8
1
1.2
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Q2 20 Q3 20 9M 19 9M 20
GPM EBITDAM NM Revenues
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Financial performance: Deleveraging
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431 469
533
603 658
713 722 751 731
810
579 621
474
619
502 482 489 485
141
284 228
328
209 198 217
128 172
2 3 2 3 3 43
5 -
2.21
1.85
1.6
1.341.26
1.04 0.980.82
0.90
0
0.5
1
1.5
2
2.5
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100
200
300
400
500
600
700
800
900
2011 2012 2013 2014 2015 2016 2017 2018 2019
Equity Medium term Borrowings Short term Borrowings Note Payables Debt Equity Ratio
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Address
Al Khumrah Industrial Area,
P.O. Box 32913, Jeddah 21438
Kingdom of Saudi Arabia
Phone
Tel.: +966 (012) 6380111
Fax :+966 (012) 6389111
https://www.linkedin.com/company/middle-east-paper-co-https://twitter.com/MiddleEastPaperhttps://www.facebook.com/MepcoPaper/http://instagram.com/_mepco_
Investor PresentationShareholding structure and share informationThe Board of DirectorsManagementLocal inputs, global outputAlignment with Saudi Vision 2030About MEPCOEcology conceptEvolution of Installed CapacityKey PartnersBenefits of paper recyclingSlide Number 12Financial performance: KPIs (SAR)Financial performance: KPIs (margins)Financial performance: Deleveraging Slide Number 16