#1MEP CO Middle East Paper Company شركة الشرق الأوسط لصناعة وإنتاج الورق Investor Presentation Q3 / 9M 2020 1 www.mepco.biz#2Shareholding structure and share information Shareholding structure 60.13% 23.23% 7.14% 9.50% Abdulkadir Al Muhaidib & Sons Co. Lafana Holding Abdullah AIMuammar ■Free Float Share information Share Information Market Currency ISIN code Listing date Financial year end Authorized capital (SAR) Issued shares Paid capital (SAR) Par value (SAR) Tadawul, Saudi Arabia SAR SA13Q050IP16 3 May 2015 31 December 500,000,000 50,000,000 500,000,000 10.00 www.mepco.biz လ 2#3The Board of Directors Emad Abdulkadir Al Muhaidib Board Member / Non-executive Mussab Sulaiman Al- Muhaidib Vice Chairman / Non-executive Abdullah Abdul Rahman Almoammar Chairman / Non-executive Abdul-llah Abdullah Abunayyan Board Member / Non-executive Khaled Salem Mohamed Al Rowais Board Member / Independent Ahmed Mubarak Al-Debasi Walid Ibrahim Shukri Omar Mohamed Seraj Najjar Board Member / Independent Board Member / Independent Board Member / Independent www.mepco.biz 3#4Management 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 www.mepco.biz 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 4#5Local inputs, global output www.mepco.biz A domestic operation using local components extensively 80% Around half of production is exported generating c. $ 100 million annually 50% 5#6Alignment with Saudi Vision 2030 MEPCO is in complete uniformity with the Saudi 2030 vision by virtue of its operational model. This uniformity is achieved through: Supporting Local Industry Spreading the Saudi Export Footprint Growing The Non- petrochemical Sector Eco-friendly Saudization By using 80% local content worth > SAR 400 million in 2019, encouraging local industry MEPCO allocates around half of its production to export markets. 2019 annual export sales of SAR 353 million (c. $100 million) MEPCO is a non-petrochemical company that produces an international commodity (Containerboard) MEPCO's core operational model is based on recycling, supporting the environmental dimension of the Saudi 2030 vision 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 www.mepco.biz CO 6#7About 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. www.mepco.biz Conversion Raw Material Sourcing WASCO Production MEPCO 7#8Ecology concept www.mepco.biz A B C MEPCO paper uses recovered and industriall waste water as inputs This saves the environment from waste hazards and achieves a balances ecological system MEPCO produces its own power with a capacity of 48 MW 00 8#9Evolution of Installed Capacity [2002] production Starting with 60,000 tons (PM1) 01 [2010] Capacity increased to 420,000 tons by adding (PM3) 04 02 www.mepco.biz 05 Capacity [2016] increased to 475,000 tons by revamping all machines 03 [2006] Capacity increased to 240,000 tons by adding (PM2) [2004] Capacity increased to 90,000 tons 9#10Key Partners 19 WASCO شركة تجميع وتدوير المخلفات المحدودة Waste Collection & Recycling Co Ltd. An integrated subsidiary of MEPCO, established in 2004 and specialized in management of recyclable waste paper and other materials HIPIT المعهد العالي للتقنيات الورقية والصناعية Higher Institute for Paper & Industrial Technologies An educational institution established in 2013 by MEPCO for Saudi students taking the Academic Diploma in Paper & Industrial Technologies www.mepco.biz 10 10#11Benefits of paper recycling 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 Energy conservation • Uses 28-70% less energy Uses less water • Puts industrial waste water to good use www.mepco.biz Forest conservation ● Preserves natural ecosystems Pollution reduction . • Reduces the need for landfills and incinerators Prevents water pollution 11#12Financial Review As of September 30, 2020 12 www.mepco.biz 2E 23XA2#13SAR (000) Financial performance: KPIs (SAR) 120,000 100,000 80,000 60,000 40,000 20,000 43,513 44,772 11,440 25,217 31,205 111,712 105,603 94,775 383 Q2 20 Q3 20 9M 19 2,613 9M 20 IGP EBITDA NP -Revenues www.mepco.biz 110,476 600,000 500,000 400,000 300,000 200,000 15,947 100,000 SAR (000) 13#14Financial performance: KPIs (margins) 25.0% 23.1% 22.5% 20.0% 15.0% 10.0% 5.0% 0.0% Q2 20 5.9% 18.6% 15.1% GPM Q3 20 20.7% 0.2% EBITDAM 1.2 19.7% 1 20.7% 17.6% 0.8 0.5% 9M 19 INM Revenues www.mepco.biz 3.0% 9M 20 0.6 0.4 0.2 о 14#15Financial performance: Deleveraging 900 2.5 810 800 751 2.21 713 722 731 2 700 658 621 603 619 51785 600 533 502 1.5 1.6 500 469 474 482 489 485 431 1.34 400 1.26 1.04 300 200 328 284 228 0.98 100 141 1 0.90 0.82 209 217 0.5 198 172 43 128 2 טח сл 3 2 3 3 5 2011 2012 2013 2014 2015 2016 2017 2018 2019 Equity Medium term Borrowings Short term Borrowings Note Payables -Debt Equity Ratio www.mepco.biz 15#16MEP CO Middle East Paper Company شركة الشرق الأوسط لصناعة وإنتاج الورق Address Al Khumrah Industrial Area, P.O. Box 32913, Jeddah 21438 Kingdom of Saudi Arabia Phone Tel.: +966 (012) 6380111 Fax:+966 (012) 6389111 > www.mepco.biz f You Tube in g+ +966 12 638 0111