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Investor Presentation
9M 2019
07-Nov-19www.mepco.biz1
Shareholding structure and share information
Shareholding structure Share information
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23.2%
12.1%
7.1%
57.5%
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
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
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
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 450 million in 2018, encouraging local industry
Spreading the Saudi Export Footprint
MEPCO allocates around half of its production to export markets. 2018 annual export sales of SAR 360 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
• 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
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
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
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, 2019
Financial performance: KPIs (SAR)
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33,113
39,274
190,303
111,712
27,29931,269
173,62294,775
-4,029
858
87,158
2,613
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
-50,000
0
50,000
100,000
150,000
200,000
250,000
Q2 19 Q3 19 9M 18 9M 19
SA
R (0
00
)
SA
R (0
00
)
GP EBITDA NP Revenues
Financial performance: KPIs (margins)
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18.8%
21.7%
28.9%
20.7%
15.5%17.3%
26.3%
17.6%
-2.3%0.5%
13.2%
0.5%
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
Q2 19 Q3 19 9M 18 9M 19
GPM EBITDAM NM Revenues
Financial performance: capital structure
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431 469
533
603 658
713 722 729
810
579 621
474
619
502 482 521
141
284 228
328
209 198 217
122 2 3 2 3 3
43 5 -
2.21
1.85
1.6
1.341.26
1.04 0.980.88
0
0.5
1
1.5
2
2.5
-
100
200
300
400
500
600
700
800
900
2011 2012 2013 2014 2015 2016 2017 9M'19
Equity Medium term Borrowings Short term Borrowings Note Payables Debt Equity Ratio
Capital Structure (SAR million)
Address
Al Khumrah Industrial Area,
P.O. Box 32913, Jeddah 21438
Kingdom of Saudi Arabia
Phone
Tel.: +966 (012) 6380111
Fax :+966 (012) 6389111
