Mezzan K S C P : Material Information Disclosure regarding IR call

FY 2023 Earnings

Presentation

March 12, 2024

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Disclaimer

This confidential document is provided for informational purposes only. THE INFORMATION SET OUT IN THIS PRESENTATION AND PROVIDED IN THE DISCUSSION SUBSEQUENT THERETO DOES NOT CONSTITUTE AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES IN ANY JURISDICTION. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS PROVIDED AS INFORMATION ONLY. THIS PRESENTATION DOES NOT CONTAIN ALL THE INFORMATION THAT IS MATERIAL TO AN INVESTOR. THIS PRESENTATION HAS BEEN PREPARED BY AND IS THE SOLE RESPONSIBILITY OF MEZZAN HOLDING COMPANY ("MEZZAN" OR THE "COMPANY").

You must not place any reliance for any purpose whatsoever on the information contained in this document. No representation or warranty, express or implied, is given by or on behalf of Mezzan or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever is accepted by Mezzan or any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith.

The information contained in this document has been obtained from sources prepared by other parties and it may not have been independently verified.

The supply of this document does not imply that the information within is correct at any time subsequent to the date of this document.

The information herein may be amended and supplemented and may not as such be relied upon for the purpose of entering into any transaction. This presentation may not be reproduced in whole or in part, distributed or transmitted to any other person without the Company's prior written consent. The information in this presentation and the views reflected there in are those of the Company and are subject to change without notice. All projections, valuations and statistical analyses are provided to assess the recipient in the evaluation of matters described herein. They maybe based on subjective assessments and assumption and may use one among alternative Methodologies that produce different results and to the extent that they are based on historical information, they should not be relied upon as an accurate prediction of future Performance. These Materials are not intended to provide the basis for any recommendation that any investor should subscribe for or purchase any securities. This presentation does not disclose all the risks and other significant issues related to an investment in any securities / transaction. Past performance is not indicative of future results. The Company is under no obligation to update or keep current the information contained herein. No person shall have any right of action against the Company or any other person in relation to the accuracy or completeness of the information contained in this presentation. No person is authorized to give any information or to make any representation not contained in and not consistent with this presentation and if given or made such information or representation must not be relied upon as having been authorized by or on behalf of the Company. This presentation does not constitute an offer or an agreement, or a solicitation of an offer or an agreement, to enter into any transaction (including the provision of any services). No assurance is given that any such transaction can or will be arranged or agreed. Certain statements in this presentation may constitute forward-looking statements. These statements reflect the company's expectation and are subject to risk and uncertainties that may cause actual result to differ materially and may adversely affect the outcome and financial effects of the plan described herein. You are cautioned not to rely on such forward-looking statements. The Company does not assume any obligation to update its view of such risk and uncertainties or to publicly announce the result of any revision to the forward-looking statements made herein.

This document may contain forward-looking statements which, by their nature, involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by these statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described within this document. In particular, actual results may be adversely affected by future developments affecting inflation, interest rates, taxation, social instability or other economic, political or diplomatic or other matters. Forward-looking statements contained in this document that reference past trends or activities should not be taken as a representation that such trends or activities will continue.

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Agenda

Tailwinds & Headwinds

Q4 & FY23 Highlights

Q4 & FY23 Financial Review

Q&A

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Mezzan Today: Tailwinds	➜
	Margin improvement through effective product/channel mix, and
	localization of manufacturing footprint.
	Benefits from the non-recurrence of the one-off adjustment that adversely
		➜➜
	hit the performance of 2022.
	Good growth momentum in our Pharma and Healthcare business,
			➜
	partially supported by resuming supply to KSA.
	➜			➜
	Acceleration of our business in UAE and Jordan.
	Effective CAPEX management.
	➜➜
	Seeking to expand collaboration with relevant local brands, where our
				➜
	scale and expertise can be leveraged.
	➜

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Mezzan Today: Headwinds
	Additional burden➜yielded from the peak in interest rates.
	Evolving tax environment in the GCC.
		➜
	The "Red Sea crisis" had no material impact so far, thus leading us to
	➜
	maintain critical inventory at high level to avoid business disturbance.
	➜	➜
	➜
	➜		➜
	➜
			➜

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Mezzan Today: Earnings Highlights

	Q4'23		Q4'22
Revenue	65.6	60.6

% Diff

+8.2%

FY'23 FY'22

271.2 255.2

% Diff

+6.3%

KD Millions

FY EBITDA (2020-2023)

KD Millions

EBITDA

8.1

8.5

Net Income	3.7	4.6
Net Profit	3.4	4.6

Attributable to Equity Holders of

Parent Company

-4.9%

-18.6%-26.3%

27.9 11.6

12.7 -1.7

11.5 -2.0

+141.1%

25.4

2020

21.8

2021

11.6

2022

27.9

2023

A 141.1% increase over FY2022, resulting from Gross Profit expansion driven by new product launches.

Note: All figures are rounded. Manual calculations for the variances and percentage difference may not align with the presented figures.

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Mezzan Today: Board Recommendation

The Board of Directors has recommended the distribution of 20 fils per share for FY2023*

*Subject to shareholder approval at Annual General Meeting of Shareholders.

KD Millions

CASH DIVIDEND

PAYOUT RATIO OF 55%

Total Cash Dividend

Payout of KD 6.2 mn.

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Mezzan Today: FY Comparative Performance

FY Revenue		FY Gross Profit

KD Millions

FY Net Profit

246.4	245.1	255.2	271.2	59.3	61.5
	53.0	51.5

10.9

11.5

2020

2021

2022

2023

2020

2021

2022

2023

Significant increase in	Margins improved, achieving an increase of 267 bps
revenue streams.	over last year, to reach 22.7%.

8.4

-2.0

2020 2021 2022 2023

Net Profit attributable to the parent company made a significant recovery from the previous year, exceeded the results of of FY2020 and FY2021.

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