Aamal Q P S C : First Quarter 2024 Investor Presentation

A solid start to 2024 with robust year-on-year growth

Presentation of financial results for the first quarter ended 31st March 2024

25th April 2024

Contents

• Q1 2024 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

Q1 2024 HIGHLIGHTS

• A solid start to the year, with revenue and total net profit up by 6.2% and 8.2% respectively
• • Successful navigation of dynamic market conditions
  • Clear strategy to capitalize on opportunities
  • Solid financial position and robust balance sheet
• Strong performances across Aamal's four divisions
• • Industrial Manufacturing: a good contribution from Aamal's diversified industrial activities led to net profit almost doubling
  • Trading & Distribution: strong revenue growth, driven largely by the performance of Ebn Sina Medical
  • Property: continued high occupancy rates and successful implementation of new initiatives
  • Managed Services: strong revenue growth, largely driven by the positive contribution of Maintenance Management Solutions
• Positive outlook for remainder of 2024 and beyond
• • Ongoing evaluation and pursuit of new opportunities, coupled with the continued enhancement of existing operations
  • A favorable macro environment, with strong growth forecasted in Qatar's non-oil economy and the positive impact of QNV 2030

"Strength Through Diversity"

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Contents

• Q1 2024 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	Q1 2024	Q1 2023	% change
Revenue	543.3	511.4	6.2%
Gross profit	130.4	120.2	8.4%
Fair value gains/(losses) on investment properties	-	-	-
Net profit attributable to Aamal shareholders	94.0	87.5	7.5%
Earnings per share (QR)	0.015	0.014	7.5%
Capital expenditure	10.3	6.9	49%
Gearing	1.22%	2.57%	(1.35) ppts

Note: there may be slight differences due to rounding.

• Robust performance driven by:
• • Revenue increases across Trading & Distribution, Managed Services and Property segments
  • Trading and Distribution revenue up by 22.1%, with Ebn Sina Medical performing particularly strongly
  • Managed Services segment revenue up by 72.7%, benefiting from the contribution of the newly acquired subsidiary MMS
  • Net profit positively impacted by Industrial Manufacturing
• Sustained financial strength and disciplined cost control
• • Gearing remains low at 1.22% (Q1 2023: 2.57%)

"Strength Through Diversity"

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Contents

• Q1 2024 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	Q1 2024	Q1 2023	% change
Revenue	48.4	109.1	(55.7%)
Net profit - fully consolidated activities	2.9	(3.3)	187.3%
Net underlying profit margin %	5.9%	(3.0%)	8.9 ppts
Share of net profit of associates and joint ventures accounted for using the equity method	13.6	11.9	14.9%
Total net profit	16.5	8.6	92.3%

Note: there may be slight differences due to rounding.

• Drop in revenue primarily due to the completion of a major Aamal Cables contract
• Positive contribution from diversified industrial activities (Aamal Readymix, Aamal Cement Industries, Senyar Industries, and Frijns Industrial Steel)
• Increase in revenue at Ci-San
• • Recovery in shipping rates
  • Stable charter occupancy rates
• Significant QAR 1.2 bn contract win for El Sewedy Cables with Kaharamaa
• Outlook remains encouraging with optimism for a recovery in the construction industry in 2024

"Strength Through Diversity"

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TRADING AND DISTRIBUTION

QARm	Q1 2024	Q1 2023	% change
Revenue	396.1	324.4	22.1%
Net profit	27.9	34.2	(18.4%)
Net profit margin %	7.0%	10.5%	(3.5 ppts)

Note: there may be slight differences due to rounding.

• Strong revenue growth driven by the performance of Ebn Sina Medical
• • Change in business model with diversion of supplier direct sales from HMC to Ebn Sina
• Successful product portfolio expansion at Aamal Medical
• • Strategic partnerships with leading healthcare suppliers: Austco Healthcare, Gleamer, and Healthometer Professional Scales
  • Drop in net profit majorly due to slowdown in deliveries as well as delay in signing the service contract renewal
• Increased profit at Aamal Trading due to price increases on renewed contracts and cost optimisation
• Further opportunities for growth based on continued commitment to meeting evolving market demands

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PROPERTY

QARm	Q1 2024	Q1 2023	% change
Revenue	76.1	75.1	1.3%
Net profit - fully consolidated activities	58.2	59.7	(2.5%)
Net underlying profit margin %	76.6%	79.6%	(3.0 ppts)
Share of net profit of associates and joint ventures accounted for using the equity method	1.3	1.3	0.3%
Total net profit	59.5	61.0	(2.5%)

Note: there may be slight differences due to rounding.

• Solid performance driven by:
• • Regular rental uplift at City Center Doha and new tenants
  • Stable occupancy levels at Aamal Real Estate
• Several initiatives undertaken to maintain City Center Doha's market-leading position
• • Inauguration of the Gold Souq with 50% leased area
  • Infrastructure enhancements to improve accessibility and customer experience, such as the direct bridge which will shortly link the metro station to the mall's second floor
• 7 new leases signed in City Center during Q1 2024

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MANAGED SERVICES

QARm	Q1 2024	Q1 2023	% change
Revenue	39.4	22.8	72.7%
Net profit - fully consolidated activities	3.6	3.8	(6.3%)
Net underlying profit margin %	9.1	16.8%	(7.7 ppts)
Share of net profit of associates and joint ventures accounted for using the equity method	0.6	0.6	(8.5.%)
Total net profit	4.2	4.5	(6.6%)

Note: there may be slight differences due to rounding.

• Increased revenue due to:
• • The contribution of the newly acquired subsidiary Maintenance and Management Solutions
  • Successful winning of new contracts at Aamal Services
• Aamal Travel and Aamal Services inevitably impacted year-on-year due to decrease in travel activities post-World Cup 2022
• Ongoing focus on investing in FEC (new attraction rides and video games), optimizing operations and seizing new opportunities across this sector

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