Gulf Cable and Electrical Industries KPSC : العرض التقديمي لمؤتمر المحللين للربع الأول من عام 2024

Q1-2024

Period Ended 31 March 2024

INVESTORS PRESENTATION

Gulf Cables & Electrical Industries Group Co. K.S.C.P	We Build the World Together
ع.ك.م.ش ةيئابرهكلا تاعانصلاو تلاباكلل جيلخلا ةعومجم ةكرش

Gulf Cables & Electrical Industries Group Co. K.S.C.P

Disclaimer

FORWARD-LOOKING STATEMENTS

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. It is solely for use as an investor presentation and is provided as information only. This presentation does not contain all of the information that is material to an investor.

This presentation has been prepared by, and is the sole responsibility of, Gulf Cable & Electrical Industries Co. ("Group"). 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 document is furnished to you solely for your information. You may not reproduce it or redistribute it to any other person.

No person shall have any right of action against the Group or any other person in relation to the accuracy or completeness of the information contained in this presentation. Nothing in this presentation shall form the basis of any contract or commitment whatsoever.

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 Group.

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 Group is under no obligation to update or keep current the information contained herein.

This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. These statements may be identified by such words as "may", "plans", "expects", "believes" and similar expressions or by their context. The Group does not assume any obligation to update its views of such risks and uncertainties or to publicly announce the result of any revisions to the forward-looking statements made herein.

ROUNDING ADJUSTMENTS

Certain monetary amounts, percentages and other figures included in this presentation have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables or charts may not be the arithmetic aggregation of the figures that precede them, and figures expressed as percentages in the text may not total 100% or, as applicable, when aggregated, may not be the arithmetic aggregation of the percentages that precede them.

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Gulf Cables & Electrical Industries Group Co. K.S.C.P

Our Vision

ACHIEVE GCC PRODUCT INNOVATION LEADERSHIP

AND EXPAND OUR PREMIER POSITION IN OUR CORE MARKETS,

WHILE DELIVERING ABOVE-MARKET GROWTH,

SUPERIOR PROFITABILITY AND STRONG CASH FLOW GENERATION

TO PROVIDE SHAREHOLDERS WITH ATTRACTIVE RETURNS,

YET MAINTAIN ABSOLUTE INTEGRITY

AND IN CONFORMITY WITH THE HIGHEST ETHICAL STANDARDS.

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Gulf Cables & Electrical Industries Group Co. K.S.C.P

Contents

• Performance Highlights
• Financial Overview
• Appendix

4

Gulf Cables & Electrical Industries Group Co. K.S.C.P

Performance Highlights

Total Revenue1



-18.3%

35.3m in Q1- 2024

43.2m in Q1- 2023

Assets

• +10.2%

309.2m in Mar.2024

280.6m in Dec.2023

Sales & contracting

revenue



-14.3%

24.6m in Q1- 2024

28.7m in Q1- 2023

Liabilities



-7.5%

46.1m in Mar.2024

49.9m in Dec.2023

EBITDA



-15.7%

11.9m in Q1- 2024

14.1m in Q1- 2023

Loans & Financing

Facilities



-9.9%

28.1m in Mar.2024

31.2m in Dec.2023

Net Profit



-16.2%

10.5m in Q1- 2024

12.5m in Q1- 2023

Equity

• +14.0%

263.1m in Mar.2024

230.8m in Dec.2023

EPS



-16.7%

1. Fils in Q1- 2024

1. Fils in Q1- 2023

Production

Metric Ton ('000')

• 3.0%

13.3MT in Q1- 2024 12.9MT in Q1- 2023

Note: all figures are in KWD

1 Total revenue consist of cable sales, contracting revenue and investment revenue.

5

Gulf Cables & Electrical Industries Group Co. K.S.C.P

Financial Overview - Group

Total Revenue Breakdown

Million - KWD

1.8

10.7Q1-2024

22.8

1.1

14.5Q1-2023

35

30

25

20

15

10

5

Sales & Contracting Revenue

Million - KWD

28.7

24.6

24.218.0

4.56.6

Net Profit- Quarterly Basis

Million - KWD

Q1-2024			10.5
Q4-2023				2.7
Q3-2023			1.7
Q2-2023						4.1
Q1-2023	12.5

27.6

Cable sales

Investments Service contracts

0

Q1-2023Q1-2024 Jordan Kuwait

0

2

4

6

8

10

12

14

In Q1- 2024:

• Total revenue declined by 18.3% compared to Q1- 2023 from KWD 43.2m to KWD 35.3m.
• Total Sales & contracting revenue for the Group saw a 14.3% reduction compared to Q1-2023.
• Sales & contracting revenue amounted to KWD 24.6m consists of revenue from cable sales by KWD 22.8m and service contracts revenue by KWD 1.8m.
• The net profit for the Group also declined, showing a 16.2% decrease compared to Q1-2023.

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Gulf Cables & Electrical Industries Group Co. K.S.C.P

Financial Overview - Gulf Cables Kuwait

Breakdown of Cable Sales by Sector

24

21

18

15

12

9

6

3

0

Million - KWD

21.0

14.6

1.4	0.9					0.7	0.7
Local Public	Local Private	Export Sector
Sector	Sector
				Q1- 2023		Q1- 2024

Q1-2023		Q1-2024
Export	Local Public	Export	Local Public
Sector	Sector	Sector		Sector
3%	6%	5%		6%
Local		Local
Private
	Private
Sector
	Sector
91%
	89%
Description (Million, KWD)	Q1-2023	Q1-2024	Change	% Change
Local Public Sector	1.4	0.9		-0.5	-35.7%
Local Private Sector	21.0	14.6		-6.4	-30.6%
Export Sector	0.7	0.7		0.0	0.0%
Total Sales	23.1	16.2		-6.9	-29.7%

In Q1- 2024:

• Total sales experienced a drop of 29.7% compared to Q1-2023, primarily attributed to the absence of major private sector projects and reduced tenders from MEW and PAHW.
• Both the local public and private sectors saw a decrease in sales compared to Q1-2023.

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Gulf Cables & Electrical Industries Group Co. K.S.C.P

Financial Overview - Group Sales and Production by Weight

Sales Breakdown by Product	Production Breakdown by Material
Quantity in ('000') Metric Ton	Quantity in ('000') Metric Ton

18							16
16.4						14
16
			13.1
14						12
12
9.7						10
10
			7.3			8
8
						6
6
4							4
6.7			5.8
2
						2
0
Q1- 2023			Q1- 2024		0
	Medium Voltage		Low Voltage & Others
Sales Breakdown by Product			Q1- 2023	Q1- 2024	% Change
		MT	MT
Medium Voltage Cables			6,747	5,765	-14.6%
Low Voltage and Other Cables			9,659	7,263	-24.8%
Total Cables				16,406	13,028	-20.6%
Production Breakdown by Material	Q1- 2023	Q1- 2024	% Change
MT	MT
Copper Cables (Low & Medium Voltage)	8,745	9,465	8.2%
Aluminum Cables (Low & Medium Voltage)	4,156	3,818	-8.1%
Total Copper & Aluminum Cables	12,901	13,283	3.0%

12.913.3

4.23.8

8.79.5

Q1- 2023		Q1- 2024
		Copper		Aluminum

In Q1- 2024:

• Total cables sales weight experienced a decrease of 20.6% compared to Q1-2023.
• In production, copper cables saw an increase of 8.2%, whereas aluminum cables displays a decrease of 8.1%.
• Overall, the total cables production rose by 3.0%.

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Gulf Cables & Electrical Industries Group Co. K.S.C.P

Financial Overview - Ratio Analysis

Ratios	Q1- 2023	Q1- 2024	Change	FY2023
Profitability
Gross Profit Margin - %	8.2%	11.5%	 3.3%	12.9%
EBITDA Margin - %	48.9%	48.1%		-0.8%	25.3%
Net Profit Margin - %	43.4%	42.5%		-0.9%	20.6%
ROA on Average Assets - % (with	4.4%	3.5%	-0.8%	7.4%

investment income)
ROE on Average Equity - % (with	5.5%	4.2%		-1.3%	9.2%
investment income)
Leverage
Total Debt Percentage of Total	13.2%	9.3%		-3.9%	11.3%
Assets-%
Debt to Equity Ratio-%	16.5%	10.9%		-5.6%	13.7%
Interest Coverage Ratio	28.0	28.0			0.0	12.7
Liquidity
Current Ratio	3.7	4.1	 0.4	3.8
Quick Ratio	2.2	2.1		-0.1	2.0
Working Capital to Total Assets	0.2	0.2			0.0	0.2

In Q1- 2024:

• The Group's gross profit margin rose from 8.2% to 11.5%, primarily attributed to a decrease in the cost of revenue.
• EBITDA margin shows a slight decrease from 48.9% to 48.1% in Q1-2024. The EBITDA margin was affected mainly by reduced dividend income compared to Q1-2023.
• Total debt percentage of total assets and debt to equity ratios showed improvement compared to Q1-2023.
• Debt to equity ratio saw a notable improvement of 5.6% over the same period.
• The interest coverage ratio remained unchanged at 28.0x.
• The current ratio experienced a nominal increase of 0.4 in Q1-2024.
• Quick ratio displayed a nominal decrease of 0.1 in the same period.
• Working capital to total assets ratio remained consistent without any changes.

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