Aamal Q P S C : Third Quarter 2023 Investor Presentation

Solid results with year-on-year revenue and profit growth

Presentation of financial results for the nine months ended 30 September 2023

24th October 2023

Contents

• 9M 2023 Highlights
• Financial Summary
• Segmental Review
• Summary and Outlook
• Appendix
• • Group Results - Revenue and Net Profit by Segment
  • Aamal's Investment Case

"Strength Through Diversity"	1

Q3 2023 HIGHLIGHTS

• A good performance with revenue and total net profit up 2.4% and 1.6% year-on-year, respectively, despite some operating challenges
• • Trading and Distribution, Property, and Managed Services segments all performed strongly
  • Industrial Manufacturing impacted y-o-y by the slowdown in global shipping rates and the completion of projects related to the FIFA World Cup
• Results demonstrate the benefits of Aamal's diversified business model and the Group's ability to seize new opportunities
• • Significant opportunities across the healthcare sector
  • Continued development and expansion of City Center Doha
  • Positive momentum and new contract wins in Managed Services, supplemented by the acquisition of MMS
• The outlook for Aamal remains positive
• • Aamal continues to expand into new and complementary sectors in Qatar and beyond
  • Qatar expected to be the fastest growing economy in GCC in 2023/24 (World Bank), with significant growth drivers arising from Qatar National Vision 2030 and new infrastructure projects underway across the region

"Strength Through Diversity"

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Contents

• 9M 2023 Highlights
• Financial Summary
• Segmental Review
• Summary and Outlook
• Appendix
• • Group Results - Revenue and Net Profit by Segment
  • Aamal's Investment Case

"Strength Through Diversity"	3

FINANCIAL SUMMARY

QARm	9M 2023	9M 2022	% change
Revenue	1,549.4	1,513.0	2.4%
Gross profit	359.8	358.7	0.3%
Fair value gains/(losses) on investment properties	-	-
Net profit attributable to Aamal shareholders	265.4	256.0	3.7%
Earnings per share (QR)	0.042	0.041	3.7%
Capital expenditure	18.6	34.8	(46.5%)
Gearing	2.80%	4.35%

Note: there may be slight differences due to rounding.

• Performance driven by:
• • Strong performance of Trading and Distribution; revenue up 17%, with Ebn Sina Medical maintaining its market-leading position
  • Rental increases and improved occupancy levels driving performance in the Property Segment
  • Positive momentum in the Managed Services segment; profit up by 22.7%
• Net capital expenditure down by QAR 16.2m, primarily due to the completion of work at City Center Doha
• Sustained financial strength and disciplined cost control
• • Gearing decreased to 2.80% (Q3 22: 4.35%)

"Strength Through Diversity"

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Contents

• 9M 2023 Highlights
• Financial Summary
• Segmental Review
• Summary and Outlook
• Appendix
• • Group Results - Revenue and Net Profit by Segment
  • Aamal's Investment Case

"Strength Through Diversity"	5

INDUSTRIAL MANUFACTURING

QARm	9M 2023	9M 2022	% change
Revenue	323.7	420.4	(23.0%)
Net profit - fully consolidated activities	(5.9)	18.9	(131.2%)
Net underlying profit margin %	(1.8%)	4.5%	(6.3ppts)
Share of net profit of associates and joint ventures accounted for using the equity method	35.7	43.2	(17.3%)
Total net profit	29.8	62.1	(52.0%)

Note: there may be slight differences due to rounding.

• Industrial Manufacturing segment impacted by a slower project pipeline and reduced activity post-FIFA World Cup
• • Aamal Readymix saw a drop in revenue due to project postponement
  • Aamal Cement hit by market volatility and increased competition
  • Aamal Maritime Transportation impacted by lower shipping rates
• Frijns Structural Steel completed work on Lusail International Circuit for the recent 2023 Qatar Grand Prix
• Outlook remains positive with a number of infrastructure projects underway across the region
• • Ashghal and Kahramaa tenders worth a combined $19.2bn

"Strength Through Diversity"

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TRADING AND DISTRIBUTION

QARm	9M 2023	9M 2022	% change
Revenue	970.9	830.1	17.0%
Net profit	90.1	74.8	20.4%
Net profit margin %	9.3%	9.0%	0.3ppts

Note: there may be slight differences due to rounding.

• Positive revenue and profit performance driven by the sustained strong performance of Ebn Sina Medical following successful enhancements to the business model
• Profit stable at Aamal Medical
• • Provided the healthcare sector with its first electrical ambulance as part of efforts to minimise energy waste and extend life of assets
• Revenue in line at Aamal Trading
• • Promotions and price increases offset decline in revenue caused by a slowdown of industrial projects (resulting in a drop in heavy vehicle usage)
  • Profit impacted by increased warehousing costs

"Strength Through Diversity"

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PROPERTY

QARm	9M 2023	9M 2022	% change
Revenue	233.6	222.1	5.2%
Net profit - fully consolidated activities	179.0	176.1	1.7%
Net underlying profit margin %	76.6%	79.3%	(2.7ppts)
Share of net profit of associates and joint ventures accounted for using the equity method	4.1	3.9	4.9%
Total net profit	183.1	180.0	1.7%

Note: there may be slight differences due to rounding.

• Positive performance across City Center and Aamal Real Estate
• Revenue growth at City Center Doha
• • New store openings
  • Rental uplift
  • Increased facilities management costs due to both the opening of new areas and investment in safety and security upgrades causing a marginal decline in net profit
• Aamal Real Estate saw strong revenue growth driven by an increase in occupancy rate to above 95%

"Strength Through Diversity"

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MANAGED SERVICES

QARm	9M 2023	9M 2022	% change
Revenue	63.3	79.4	(20.3%)
Net profit - fully consolidated activities	7.7	5.1	51.7%
Net underlying profit margin %	12.1%	6.4%	5.8ppts
Share of net profit of associates and joint ventures accounted for using the equity method	1.8	2.7	(31.9%)
Total net profit	9.5	7.7	22.7%

Note: there may be slight differences due to rounding.

• Continued positive momentum through several new contract wins and the acquisition of Maintenance & Management Solutions (MMS), a provider of facility services
• Decline in revenue due to slowdown in activity post-FIFA World Cup
• Increase in net profit due to strong performances of Aamal Travel and Family Entertainment Center due to increased demand over summer period

"Strength Through Diversity"

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