Estithmar Holding Q.P.S.C. ($IGRD)

Good afternoon, ladies and gentlemen. This is Zeina Fares from EFG Hermes Research speaking, and I'd like to welcome you all to Estithmar Holdings Fourth Quarter Results Conference Call. With us on the line today, we have Mr. Juan Leon, Holding CEO; and Mr. Gabriel Ocho, Holding CFO. Without further delay, I'd like to hand over the call to management.

Thank you. My name is Dr. Gabriel Osho. I've just joined the company last year, took over from Mr. Walid, who has left the group, and I'm taking of as the holding CFO. I'm very happy to present the financial for the year 2025. The company has done excellently performance across all our segments and the company look forward to a better year in the year 2026. So we go to the next slide. As you all know, that I will -- I mean, I will be looking at today the company over view, financial highlights, operational highlights and then we look at if there is any question. Next slide, please. This is just important information that for everyone to know as a disclaimer, and then we'll go through the company overview. As you all know, we have in total, the company has grown. We have about 105 companies across Estithmar Holding. We operate across 4 groups which is our Healthcare, which is Apex Health, Services, which is Elegancia Services, Venture, which is our Ventures section. We also have our contracting and industry, which we call Elegancia contracting & industry. The Board of Directors, you can see that our Board of Directors still remains the same. There is no change to that. Next slide, please. The executive team still remains the same. There is no any change apart from Mr. Walid and I'm taking over as the Holding CFO, the direct reporter, the indirect and also across all of our clusters. We have in total more than 100 nationalities and background in the whole of Estithmar Holding. Next slide. We operate across 10 countries, which is Qatar, KSA, Iraq, Algeria, Modis, Syria, Libya, Jordan, Egypt and Kazakhstan. We are also hoping to also expand in the year 2026 as we go along in the year 2026. Next slide, please. In times of our sustainability, we have driven a sustainable growth and a leading business responsibility. We ensure that we follow the United Nation SDG whereby we look at our businesses. We also have a lot of compliance, governance, compliance and risk management, which is in terms of our employee value proposition. We also uphold responsibility in terms of our procurement and our supply chain. We also comply as required in terms of climate actions, corporate social responsibilities, diversities and inclusion, which is one of the -- some of the areas that we focus on from our ESG point of view. When you look at our agenda distribution, we have across 27% of females and about 73% of males make in our gender distribution. Next slide, where we go to the financial performance of last financials. Our revenue throughout the whole year last year is QAR 6,491 billion, which is compared to QAR 4.216 billion. We grew exponentially about 54%. Our net profit increased by 122%, we did QAR 938 million compared to 2024, which is QAR 422 million. EBITDA as well, our EBITDA is QAR 1.503 million, which is compared to 2024, which is QAR 742 million, which is about 102% in total. The group done very excellently in the year 2024 across all the various parameters of our financials. C&I contributed about 40% of the performance last year. Venture contributed by 4%, Services contributed about 25%, while our Healthcare also contribute about 31%. Down there is the chart that shows the variances and the differences between the growth. Next slide. When you look at our balance sheet as well, our total asset increase, which is we did QAR 13.859 billion compared to 2024, which was QAR 11.304 billion. Our noncurrent assets also increased which is about QAR 7.438 billion. Our current assets also increased QAR 4.569 billion in 2024. And in 2025, it has gone up to QAR 6.421 billion. Our equity increases as well, which is as a result of our performance. It increases from QAR 5,236 billion, which we did in 2024, it has moved up to QAR 6.142 billion. Borrowing increased from QAR 3.447 billion to QAR 4,524 billion, is mainly because of our exposure that we have done across different geographical areas that we are located. When you look at our distribution of our total asset, Holding is about QAR 1.779 billion, Healthcare, which is about QAR 2.633 million. Ventures is about QAR 3.185 billion, Services is holding QAR 2.387 billion and C&I is holding about QAR 3.877 billion, and is holding about 3.875. Altogether it's about QAR 13.859 billion. Our earnings per share has also increased exponentially compared to the past 2 years. In the past 3 years, we were about QAR 0.093. And in 2024, we grew about QAR 0.108, which was a growth of 16%. But when you look at 2025, we grew exponentially to 145%. Our earnings per share to QAR 0.264. Asset liability is evenly distributed. The movement between the current asset also is showing there from QAR 6.735 billion to QAR 7.438 billion, also, which goes to 10%. And so also the other one also increased from QAR 4.69 billion to QAR 6.421 billion, which is an increase of 41%. The current liability also increased by 17% from QAR 5.236 billion to QAR 6.142 million. So also is our noncurrent liability from QAR 2.316 billion to QAR 3.180 billion, a growth of 37%. And our equity, as I mentioned before, also go up by 21% from QAR 3.752 billion in 2024 to QAR 4.538 billion. Across the balance sheet, it is very, very strong balance sheet that we are able -- we have been able to deliver to the shareholder in 2025. We also look forward to 2026 to continue to grow with our expansion under our Holding CFO -- Holding CEO, Mr. Juan from a strategic point of view, to deliver a very strong balance sheet in the year 2026. Next slide, please. Operational highlights. Just like I mentioned earlier before, Apex Health. Apex Health, we continue -- number of our operating hospital still is 8 as of 2025. Number of beds across each of our Apex Health hospital is 2,700 in the whole year in 2025. We have a number of out-patients 2.8 billion across. Apex had, like I mentioned, operation in Qatar, in Nigeria, in Iraq and in Libya in 2025. We are planning to grow these regional expansions to continue to deliver a very strong growth across all of our regions that we are looking towards in 2026. Next slide is Elegancia Services. Elegancia Services was a project of 450 and we operate in 8 countries, which are Qatar, KSA, Syria, Iraq, Libya, Jordan, Kazakhstan and Modis. Next slide, please. Venture is our growing division we still continue to work in the hotel in Baghdad. Rixos Baghdad hotel resident. There is a rapid expansion completion of the project that is currently going on now in our Rixos Baghdad, 50% of it is completed. And we look forward to complete the whole project by October 2026. Rixos Baghdad resident off-plan sales continue to progress with the high demand, 40% of that and Rosewood Modis construction is still going on. About 25% of that is done. We're looking forward to complete this by December 2026. Al Maha Island, still continue to sustain the robust footfall. Last year, we witnessed about 5.2 million of people that visited, that came in into the project in last year. As you all know, that Ventures continue to operate in Qatar, in Iraq and in Modis and in this year 2026, our plan is to continue to expand across the region. Next slide, please. These are the pictures of all the hotels that we are working on. Next slide, please. So we go to contract in an industry, which is our Elegancia contracting and services. In 2025, we were awarded 262 projects. We continue to operate in the 12 countries and safe man hour is about 44-month hour in 2025. We are currently operating in Qatar, KSA, Syria, Iraq, Libya, Egypt, Modis and Algeria and we will continue to look at opportunities across different region in 2026. Next slide, please. Thank you very much. It's a pleasure to deliver this performance in 2025 and we look forward to continuing to deliver a very strong P&L and a very strong balance sheet for all of our shareholders and our investors in the year 2026. Thank you very much.

Thank you, Dr. Gabriel. So now we're going to open the floor for questions. [Operator Instructions] We have our first raised hand from Eranjan. Please unmute locally and ask your question.

I have a couple of questions from my side. Now with regards to your O&M contracts in your Healthcare segment. Now I understand they are very lucrative. So just want to get an understanding of what would happen when these contracts come up for renewal. And I mean do you think it can get renewed at similar terms and conditions where you can maintain the same profitability levels? Or are they like to be renewed that may perhaps less lucrative terms? And the second one is that, is it possible to give us some guidance as to what's your expected profitability and revenue for 2026?

Thank you. That's actually a very good question, Mr. Eranjan. Most of our contracts in the year 2025 still remain the same. And in the year 2026 as well. We are hoping that the situation -- I mean the contract will continue to remain the same going forward. We do not expect any significant change in the year 2026 as we work very closely with all of our shareholders, with all of our clients that we work with in all these contracts. In terms of 2026, we also expect to deliver a very strong numbers for 2026. When you look at our Apex Health, we are looking at almost about a 50% increase in the year 2026 considering the fact that we are -- we want to make sure that this contract, as I said earlier on, we continue to remain. At the same time, we are looking out for more opportunity, better margin, better profitability in the year 2026. The team are working very closely with our Holding CEO to look at the expansion and any opportunities that will come our way in this year 2026. Just to summarize it, the expectation for 2026 is very high compared to 2025. And the team are working very strongly to deliver a very strong number, higher than what we deliver in terms of revenue and also in terms of net profit in the 2026. At this moment, I don't -- I mean, as we go along, I will continue to share what is the numbers that we are looking at for the year 2026 and then we will update the shareholders accordingly as we go along for 2026. Thank you.

We have a question from Phibion.

Hello. Sorry, I was struggling to unmute my message system wasn't responding, sorry. Can you hear me?

Yes very well.

A quick question on the outlook, specifically your Ventures division. I understand that there is a project that you are working on in Maldives. What are your expectations? When do you expect that to start contributing to the group?

Okay. For the project that we have in Maldives which is Rosewood, it's expected to finish in December 2026. However, we are pushing to close that project earlier. But from a market point of view, we are given a very long [indiscernible] When this is completed, we are looking at, from a top line point of view, with the way things are going, an additional 20% and in terms of bottom line, so that might also bringing an additional of 8% to 10% from a net profit point of view. Working very closely to make sure that we'll finish this in 2026.

All right. Just one more question related to your expansion maybe with that project and other projects as well that you have, you're working on. Your debt levels, what's the outlook? How much more are you going to stretch the balance sheet?

Very good question from a financial point of view. Of course, right now, we know from this project that I have mentioned to you. The debt is already included. So we don't expect any stretch or any team on to the balance sheet to be affected as we go along in 2026 rather we expect that we start bringing some income [indiscernible] , our debt exposure. The only thing that might have additional to the debt are potential new opportunities that may come in in terms of our expansion that we are looking at in the year 2026. We've got some capital [indiscernible] coming in terms of our debt to equity and to also ensure that we continue to maintain a very strong balance sheet from an equity point of view, from a debt point of view as well as from a cash flow point of view. So all of these things that we look at and to make sure that we balance it very accurately not to put in an additional debt that will not be sustainable. But in the year 2026, the year 2027, 2028, the balance sheet is very, very strong and we see to continue to sustain any projects that come as we go along. So far, all these projects that we have talked about, we've already factored in the debt there because they are almost at the completion stage. Once the projects are completed, we expect that the ROI, the return on investment and ROA return on assets will start to improve and start to bring in some income to bring in the balance sheet and also a very strong P&L for the investors as we go along.

Dr. Gabriel, if you could please just double check your mic. I believe there was a bit of vibration while you were speaking. And we'll take our next question from Mohit.

Can you hear me?

One moment. I'm sorry Dr. Gabriel, there's still some vibration in the microphone.

I don't know why, what is it's not -- I didn't touch anything, but maybe just the system somehow. Can you hear me right now?

it's still the same. We can still hear you, okay. Please Mohit, ask your question.

I have one question regarding the Apex Health as to what is the contribution, particularly coming from Qatar and the profitability of the company?

Mohit, I mean, please repeat the question. The line is not clear.

Sorry. So my question is regarding the Apex Health segment and specifically within Apex Health, I would like to focus on Qatar. So what has been the contribution of Apex Health Qatar in the overall profitability of IGRD?

We've seen it currently the Apex Health continue to grow in Qatar at the moment. In terms of our expansion, expansion still remain the same. Other geographical locations also contribute to these growth that we are witnessing. But when you look at Qatar market, we benefitted less than or almost 80% to 85% of our revenue is coming from the Qatar market. And then the remaining 15% is partly from other [indiscernible] location. But the Qatar market is a big chunk of our revenue basically from all the contracts that we have, which we still expect to remain in the 2025, 2026, 2027, 2028. Most of them are like 3 to 5 years contracts. So the remaining locally and the remaining 20% is coming from other [indiscernible] locations.

So this is the revenue breakup Apex Health?

Repeat?

So this is the revenue breakup of the Apex Health, right?

Yes. Holistically on the consolidated basis, as you know, we have different hospitals across Qatar. And then we also have some other hospitals in Libya, we also have in [indiscernible] We also, the one also the [indiscernible] in Algeria, which we expect to complete very soon this year 2026. So right now, it's mainly in Baghdad, Algeria, as well as Libya.

And just if I can just add one more. As to the profitability, if we can try to break that up if possible, Apex Health, how much is contributing to the overall profitability, net profit and within that Qatar specifically, how much Qatar is contributing to that?

Thank you. From the presentation, as I said earlier on, in terms of revenue contributing about 31% [Technical Difficulty] from a revenue point of view. In terms of net profit is contributing almost about 40% of revenue point of view. So this is what is contributing from a net profit point of view. Total revenue from Qatar, if you look at that 35%, you will be looking at the revenues coming from [ majorly ] Qatar will be giving us almost about 25%, the remaining 10% will be distributed across all other regions.

All right. I could gather what I could. But I think the team has also mentioned, the voice is a little vibrating. So from what I could gather, so you're seeing 40% contribution was there in the net profit from overall Apex Health and 30% of that is coming from Qatar is that -- is my understanding right?

From a revenue point of view, is [indiscernible]

No, no. I'm talking about the net profit?

Yes, yes.

Net profit, 40% from Apex Health of the overall net profit, consolidated net profit and 30% is coming from Qatar. Okay. Thank you so much.

So it looks like we have no further questions, so I'll hand it back to management for closing remarks.

Thank you, everyone. We want to thank you for trusting us as management in Estithmar. We look forward to continue to grow the company in the year 2026. We want to thank all our investors for believing in us, for your support for investing into our company, and we look forward to a very strong P&L and as well as a strong balance sheet in the 2026. Thank you very much.

Thank you. This concludes today's call. You may now disconnect.