Almarai Company · TADAWUL:2280
Almarai — Q2 2013 Earnings Presentation
29 slides from Almarai's earnings presentation, 2013
Slide 1: Almarai Company 2013 Q2 Earnings Presentation
Almarai Company 2013 Q2 Earnings Presentation
Slide 2: Disclaimer
Disclaimer Information contained in this presentation is subject to change without further notice, its accuracy is not guaranteed and it may not contain all material information concerning the company. Neither we nor our advisors make any representation regarding, and assume no responsibility or lia
Slide 3: Business Highlights
NO an CncloJl Almarai a Business Highlights
Slide 4: Highlights – 1st Half 2013
Highlights – 1st Half 2013 Q2 2013 1st Half 2013 Growth over last Growth over last SAR ' M year SAR ' M year Group Revenue 2,873.9 13.9% 5,284.9 15.8% Net Income 398.2 4.9% 653.3 5.1% Revenue of 5.3B SAR, growth of 15.8% driven by poultry 70%, juice 24%, Bakery 15% and inclusion of IDJ results.
Slide 5: Strong pipeline of innovation continues in 2013
Strong pipeline of innovation continues in 2013 Almarai Company 2013 Q2 Earnings Presentation 5
Slide 6: Sales Highlights
NO an CncloJl Almarai — Sales Highlights
Slide 7: Sales Growth – Geography mix
Sales Growth – Geography mix 1st Half 2012 1st half 2013 All All Others O thers 5 .1% 9.1% G CC G CC 2 6.9% 2 5.4% K SA 68.0% K SA 65.5% 3.46 KSA 11.5% 3.10 1.34 GCC 1.23 9.5% 0.48 1st half 2013 All 0.23 Rev in B SAR Others 105.5% 1st half 2012 Rev in B SAR 5.28 Almarai 15.8% Group % Growth 4.56 Alm
Slide 8: Sales Analysis by Product & Region
Sales Analysis by Product & Region Sales by Product Sales by Country - 1st half 2013 Oman Jordan UAE Egypt Bahrain 5.1% 2.4% Sa les by Pr oduct 1st Ha lf 2.1% 9.1% 4.3% Export / Qatar G r oup SAR M illion 2 013 2 012 % chang e 4.2% Others 2.4% Fresh Dairy 2,100.0 1,836.4 14.4% Kuwait Long-Life Dairy
Slide 9: Change in growth rates and IDJ consolidation results in higher share of poultry, Juice and Long life dairy
Change in growth rates and IDJ consolidation results in higher share of poultry, Juice and Long life dairy 100% 1.3% 2.6% 2.0% 0.7% 0.5% 3.4% 4.7% 4.8% Other Sales 4.7% 6.1% 6.7% 90% 10.5% 7.1% 10.4% 9.4% 10.9% 10.7% 9.1% Poultry 80% 10.2% 13.3% 13.8% 12.5% 11.9% 13.4% 70% 14.4% Long-Life Dairy 11.3
Slide 10: Product mix in different geographical regions highlights revenues growth potential
Product mix in different geographical regions highlights revenues growth potential…. KSA Total Arable and Cheese & Cheese & Bakery Horti Butter Butter 17% 1% Bakery 15% 16% 13% Fruit Juice Arable and Fruit Juice Poultry 13% Horti 11% 10% Poultry 7% 2% Long-Life Long-Life Dairy Dairy 10% 7% Fresh Dai
Slide 11: Expanding presence of Almarai Operations throughout the region
..which can be achieved via expanding presence of Almarai Operations throughout the region Tabarjal Aflaj (Laila) ` Junoob New Depots in 2013 Distribution centre Manufacturi ng facility Almarai Company 2013 Q2 Earnings Presentation 11
Slide 12: Statement of Income
NO an tncloJl Almarai — Statement of Income
Slide 13: Statement of Income
Statement of Income 2nd Quarter 1st Half • GCC Margin over SAR million 2013 2012 Change 2013 2012 Change material has continued to show Net Sales 2,873.9 2,524.1 13.9% 5,284.9 4,564.5 15.8% higher growth than Cost of sales (1,839.4) (1,602.4) 14.8% (3,422.6) (2,935.5) 16.6% revenue in H1 2013. Gross
Slide 14: Segment Reporting
Segment Reporting Dai ry & Arabl e and Other Al marai SAR Mi l l i on Bakery Poul try Jui ce Horti cul ture Acti vi ti es Consol i dated 1st Hal f 2013 Sales 4,123.4 710.4 364.8 200.7 0.9 5,400.1 Third Party Sales 4,110.4 710.4 364.8 98.4 0.9 5,284.9 Depreciation (463.7) (63.4) (60.9) (35.8) (7.6) (
Slide 15: Trend charts
NO an CncloJl Almarai — Trend charts
Slide 16: Robust revenue growth with challenging but anticipated EBITDA & EBIT trend
Robust revenue growth with challenging – but anticipated – EBITDA & EBIT trend Revenue, EBITDA and EBIT Evolution 26.7% 27.2% 25.7% 26.0% 25.6% 25.3% 24.2% 22.3% 21.8% 20.7% 21.0% 21.1% 19.4% 19.1% 9,883 10,603 SAR in Million 16.9% 16.3% CAGR 2006 – 2013: 21.2% (w/o impact of acquisitions 18.4%) 7,9
Slide 17: Quarterly Performance – Net Income
SAR Million 0 50 100 300 200 4 50 150 350 4 00 250 90.6 122.8 Almarai Company 162.2 197.4 234.1 235.2 242.1 255.1 Q1 = 5.4% 121.8 165.3 235.2 287.1 343.1 349.3 379.5 398.2 Q2 = 4 .9% 2013 versus 2012 122.6 2013 Q2 Earnings Presentation 186.1 293.7 363.4 424.5 429.7 450.0 Quarterly Performance – Net
Slide 18: Cash Flows
NO an CncloJl Almarai — Cash Flows
Slide 19: Cash Flow Statement (1st Half 2013)
Cash Flow Statement (1st Half 2013) 2, 500 6 92 1,706 2, 000 Higher revenue growth SAR Million 1,019 1, 500 resulted in positive operating cash flow, which 1, 000 was partially subdued by 500 4 17 1 4 21 working capital 0 expansion,…. C ash at beginning of F rom O perating F rom Financing Activities
Slide 20: Cash Flow Bridge – rolling 12 months
Cash Flow Bridge – rolling 12 months 1,186 (2,737) 2,364 Sukuk / Loan Payments / Others (496) (182) Capex 421 287 Dividend Others Operating Cash Ca sh at 30 Flow Ca sh at 30 Jun 2012 + SAR 134 m Jun 2013 Almarai Company 2013 Q2 Earnings Presentation 20
Slide 21: Balance Sheet
NO an CncloJl Almarai — Balance Sheet
Slide 22: Balance Sheet
Balance Sheet S AR M i l l i on 3 0 /0 6/13 3 0 /0 6/12 Net Operating Working Capital 1,331 1,182 Biological Assets 945 870 Property, Plant and Equipment 14,281 12,426 Net Operating Assets 16,558 14,478 Intangible Assets - Goodwill 1,335 1,383 Investment & Financial Assets, Deferred 413 353 Charges
Slide 23: Net Debt
Net Debt 12,0 00 400% 3 .6x 3 .2x 350% 10 ,000 2.8x 300% 8,0 00 2.3 x 2.4x 2.3 x in million SAR 2.3 x 250% 2.0 x 6,0 00 200% 116% 150% 4,0 00 96% 10 0 % 10 2% 81% 73 % 76% 100% 69% 2,0 00 50% 1,3 15 2,463 3 ,499 3 ,951 4,679 6,749 8,3 05 9,612 0 0% 20 0 6 20 0 7 20 0 8 20 0 9 20 10 20 11 20 12 Last
Slide 24: Debt Profile highlights balanced approach for funding
Debt Profile highlights balanced approach for funding…. 3 .5 3 .0 Debt Maturity by Age and Type 2.5 Isl amic Bonds Govt / Semi Govt Inst. 2.3 , 23% 2.0 S AR Billion Ban ks 1.5 5.9, 59% 1.8, 18% 1.0 0 .5 0 .0 <1y r 1-2 y r 2-3 yr 3 -4 y r 4-5y r >5y r Almarai Company 2013 Q2 Earnings Presentation 24
Slide 25: Capital Expenditure
NO an Ciclo Almarai a Capital Expenditure
Slide 26: Capex spend in line with Guidance
Capex spend in line with Guidance… Capex spend of 1.5B SAR, which is in line for with our earlier forecast of 3.1B SAR for the year 2013. Poultry capex spend for the first half amounted to more than 0.4B SAR. The key highlight for the first half was the commercial production of the first line in
Slide 27: Key Share Data
Key Share Data Key S t at i st i cs for Al marai (26 Ju n e 20 13 ) 3 0 0% C u rren t P /E R at i o (t t m) 19.1 Est i mat ed P /E(12/20 13 ) 17.8 Earn i n gs P er S h are (S AR ) (t t m) 3 .6 M ark et C ap (M S AR ) 27,798 250 % S h ares O u t st an di n g (M ) 40 0 .0 3 0 D ay Average V ol u me 59
Slide 28: Q&A
Q&A Almarai Company 2013 Q1 Earnings Presentation 28
Slide 29: Thank you
Almarai Company Thank you Exit 7, North Circle Road Al Izdihar District P.O. Box 8524 Riyadh, 11492 Saudi Arabia Contact for investor relations matters: Khalid M. Al Nasser +966 11 470 00 05 ext 1280 [email protected]