Almarai Company · TADAWUL:2280
Almarai — FY2010 Earnings Presentation
19 slides from Almarai's earnings presentation, 2011
Slide 1: Almarai Company 2010 Earnings Presentation
Almarai Company 2010: Record results underline an outstanding year 2010 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 assumes no responsibility or li
Slide 3: Highlights: On the right track to SAR 15 billion turnover by 2015
Highlights On the right track to become a SAR 15 billion turnover company by 2015 8, 000 CAGR 1995 - 2004 7.5% CAGR 2004 - 2010 w/o ac quisi tions 20.9% CAGR 2004 - 2010 wi th ac quistions 24.2% 7, 000 6,000 Ac quisi tion of HADCO Net sales in million SAR 5,000 4,000 Ac quisition of WB 3 ,000 IPO 2,
Slide 4: Highlights: 2010 record results underline an outstanding year
Highlights 2010: Record results underline an outstanding year • An excellent set of financial results characterised by – Revenue growth of 18.1% to SAR 6.9 billion – Net income growth of 17.2% to SAR 1,285.4 million – Cash flow from operating activities of SAR 2.0 billion or 28.9% of sales • Key 201
Slide 5: Income Statement
Income Statement Change in million SAR 2010 2009 2010 vs 2009 Net Sales 6,930.9 100.0% 5,868.8 100.0% 18.1% Direct Material Costs (2,891.3) (41.7%) (2,486.4) (42.4%) 16.3% Margin over Material 4,039.6 58.3% 3,382.4 57.6% 19.4% Other GOGS (1,303.7) (18.8%) (1,016.6) (17.3%) 28.2% Gross Profit 2,735.9
Slide 6: Rapid growth with high margins
Almarai continues to realise rapid growth with high margins Revenue and EBIT Margin1 Evolution 1999 - 2010 24.9% 22.7% 23.2% 22.6% 24.4% 21.8% 21.0% 20.7% 21.0% 21.1% 20.1% 19.4% 6,931 5,869 CAGR 1999 – 2010: 17.4% (w/o impact of acquisitions 15.6%) CAGR 2004 – 2010: 24.2% (w/o impact of acquisition
Slide 7: Sales 2010 by Products, Regions & Channels
Sales 2010 by Products, Regions & Channels Bahrain Sales by Regions Qatar UAE S al es by Pr o du ct Year en ded 3 1 Dec emb er 2.3% 10.5% 4.3% Oman G ro u p (SA R M i l l i o n ) 201 0 200 9 % cha nge 5.0% Export Kuwait 0.9% Fresh Dai ry 3,168.7 2,817.6 12.5% 5.8% Long-Life Dairy 658.9 562.6 17.1% F
Slide 8: Revenues growth by product group
Revenues growth by product group 4500 Dairy Fruit Juice 4000 800 3500 3828 in milli on SAR 3380 700 745 in million SAR 3000 2970 600 2500 620 500 2000 2288 484 400 1500 1900 1581 300 340 1000 200 500 207 100 142 0 0 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 1,400 900 Cheese & Butte
Slide 9: Operating Costs
Operating Costs Ope r at in g Co st s Ye ar en de d 31 D ecemb er (S AR M i l li o n) 20 10 % of Sa le s 200 9 % of S al es Ch an ge i n % Direct Material Costs 2,891.3 41.7% 2,486.4 42.4% 16.3% Other Cost of Sales 1,303.7 18.8% 1,016.6 17.3% 28.2% Selling & Distribution Expenses 1,046.0 15.1% 887.1
Slide 10: Historical Performance 2005 – 2010
Historical Performance 2005 – 2010 Margin over Material Gross Profit 4,500 60.0% 3,000 39.5% 45.0% 58.3% 57.5% 57.5% 57.6% 39.6% 39.7% 40.3% 39.0% 4,000 58.0% 40.0% 55.8% 2,500 3,500 56.0% 35.0% 54.0% 3,000 2,000 30.0% in millio n SAR in millio n SAR 52.0% 2,500 25.0% 50.0% 1,500 2,000 20.0% 48.0% 1
Slide 11: Performance 2005-2010 by Quarter
SAR Million 0 50 100 150 200 250 300 350 400 450 78.0 90 .6 12 2.8 16 2.2 ST RICTLY CONFIDENTIAL 1 97 .4 2 34 .1 100 .3 12 1.8 1 65 .3 2 35 .2 2 87.1 34 3.1 10 0.9 12 2.6 2 010 Earnings Presentation 1 86 .1 Performance 2005-2010 by Quarter 29 3.7 36 3.4 42 4.5 1 06.9 13 0.2 1 93.1 219 .2 24 8.8 2 83
Slide 12: Cash Flow Statement
Cash Flow Statement C ash F lows f rom O pe rat in g Activ ities Year en ded 3 1 D ecembe r C as h Fl ow S t at e men t Y ear e nd ed 3 1 De ce mbe r (S AR M illion ) 201 0 20 09 (S AR Mi lli on ) 201 0 2009 Net Income 1,285.4 1 ,096 .7 D epreciation & Disposal of Assets 485.0 36 3.2 From Operating
Slide 13: Balance Sheet
Balance Sheet Key Financial H igh lig ht s Ye ar en de d 3 1 De ce mb er ( SA R Mi llio n) 20 10 20 09 200 8 20 07 20 06 B al an ce Sh ee t Net operating working capital 660 711 837 561 249 Biological assets 770 735 639 488 327 Property, plant and equipment 7,867 6,282 4,704 3,553 2,719 Net operatin
Slide 14: Operating Net Working Capital
Operating Net Working Capital 900 16.6% 18% 800 14.9% 16% 700 12.1% 14% 600 12% in million SAR 9.0% 9.5% 500 10% 400 8% 300 6% 200 4% 100 2% 249 561 837 711 660 ‐ 0% 2006 2007 2008 2009 2010 Net Working Capital in % of sales ST RICTLY CONFIDENTIAL 2 010 Earnings Presentation 14
Slide 15: Net Debts
Net Debts 5,00 0 300 .0 % 2 .6 x 4,50 0 2.4x 2.4x 2 .4 x 250 .0 % 4,00 0 3,50 0 1.9x 200 .0 % 3,00 0 in million SAR 2,50 0 150 .0 % 2,00 0 100 .0 % 1,50 0 96. 4% 8 0.6 % 1,00 0 73 .2% 75. 6% 69. 3% 50 .0% 50 0 1,315 2,4 63 3,499 3,95 1 4 ,679 ‐ 0.0% 2 006 200 7 20 08 2009 20 10 Ne t de bts Ne t deb
Slide 16: Segmental Reporting 2010
Segmental Reporting 2010 Segmetal R eporting Dairy & Arable O ther Almarai Bakery P oultry (SAR M illion) Juice and H orti Activities Group 2010 Sales 5,910.1 873.0 176.1 245.3 - 7,204.5 Third Party Sales 5,885.9 821.2 176.1 47.7 - 6,930.9 Depreciation (278.9) (76.5) (23.7) (45.9) - (425.0) Share of
Slide 17: Key Financial Highlights
Key Financial Highlights K ey Fin an cia l H igh lig ht s Ye ar en ded 3 1 D ec embe r 2 01 0 20 09 20 08 200 7 20 06 K ey Ind ica to rs Return on sales 18.5% 18.7% 18.1% 17.7% 16.9% Return on equity* 22.6% 26.9% 27.2% 24.0% 27.9% Return on Net Operating Assets* 17.1% 18.7% 19.7% 19.8% 18.3% Return
Slide 18: Looking Forward
Looking Forward • We expect 2011 to be a challenging year with feed, packaging, dairy commodities and juice input costs to remain at inflated levels. Almarai will continue to monitor this situation and will attempt to mitigate the impact of these cost increases where possible. • We will continue to
Slide 19: Thank you
Thank you Almarai Company 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 1 470 00 05 ext 1280 [email protected]