Almarai Company · TADAWUL:2280
Almarai — Q3 2016 Earnings Presentation
17 slides from Almarai's earnings presentation, 2016
Slide 1: Almarai Company Interim Results – 3rd Quarter 2016
Almarai Company Interim Results – 3rd Quarter 2016
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
Sa CncloJl Almarai ee ee Business Highlights
Slide 4: Highlights – YTD Q3, 2016
Highlights – YTD Q3, 2016 Net Sales EBITDA Net Income 2016 2016 2016 SAR 11.1 Billion SAR 2.7 Billion SAR 1.6 Billion 2015 2015 2015 SAR 10.22013 Billion +8.6% SAR 2.5 Billion +10.0% SAR 1.4 B +11.2% SAR 11.2 B +12.4% Operating Cash Flow Capital Expenditure Free Cash Flow 2016 2016 2016 SAR 3.0 Bill
Slide 5: Innovation Pipeline for Q3, 2016
Innovation Pipeline for Q3, 2016 1st Quarter 2nd Quarter 3rd Quarter Almarai Company 2016 Q3 Earnings Presentation 5
Slide 6: Sales Highlights
Sa incl ol Almarai ee a Sales Highlights
Slide 7: Sales Analysis by Segment by Product
Sales Analysis by Segment by Product Total 11,088 Net Sales (+878) +8.6% Dairy & Juice Bakery Poultry Others Net Sales 8,577 (77%) 1,385 (13%) 992 (9%) 134 (1%) By Segment (+598) (+234) (+54) (-8) +7.5% +20.3% +5.8% -5.6% Net Sales Fresh Dairy Long-Life Dairy Fruit Juice Cheese & Butter Bakery Poult
Slide 8: Sales Analysis by Region by Country
Sales Analysis by Region by Country Total 11,088 Net Sales (+878) +8.6% Net KSA Other GCC Countries Other Countries Sales 7,016 (63%) 2,890 (26%) 1,182 (11%) By Region (+498) (+213) (+167) +7.6% +8.0% +16.4% Net Sales KSA UAE Oman Qatar Kuwait Bahrain Egypt Jordan Others 7,016 (63%) 1,074 (10%) 555
Slide 9: Operating Performance
YTD Q3, 2016 Results Operating Performance Gross Profit Operating Income Net Income SAR Million SAR Million SAR Million % to Sales 38.6% 39.4% 16.5% 17.0% 14.0% 14.4% 4,373 1,880 3,945 1,690 1,592 +428 +191 1,432 (+10.8%) (+11.3%) +160 (+11.2%) YTD Q3, 2015 YTD Q3, 2016 YTD Q3, 2015 YTD Q3, 2016 YTD
Slide 10: Net Income by Segment
YTD Q3, 2016 Results Net Income by Segment: Basic EPS* (SAR) 1.75 1.95 122 (87) 141 (15) 1,592 1,432 SAR Million YTD Q3, 2015 Dairy & Juice Bakery Poultry Other YTD Q3, 2016 Net Sales Growth 7.5% 20.3% 5.8% -5.6% 8.6% Net Income Growth 8.9% 97.9% 52.9% 13.9% 11.2% Net Income % 20.1% 17.7% -25.4% -92
Slide 11: Almarai remains within the 5 Year Plan CAPEX Investment
Almarai remains within the 5 Year Plan CAPEX Investment CAPEX spend for the three quarters of 2016 was SAR 3.3 Billion which is in line with our annual CAPEX run rate. • Manufacturing and Farming spent CAPEX of SAR ~2.1 Billion for various capacity expansion projects. • Replacement and other CAPEX
Slide 12: Cash Flow Bridge – Rolling 12 Months
Cash Flow Bridge – Rolling 12 Months 4,632 7 (5,240) Loans Issues / Payments / Charges 2,088 Operating Cash Flow (688) CAPEX / Biological (13) 785 Assets Dividend Others Cash at 30 Cash at 30 Sept 2015 (SAR 1,302 Million) Sept 2016 Almarai Company 2016 Q3 Earnings Presentation 12
Slide 13: Net Debt
Net Debt 12,000 350% 3.1x 3.0x 2.8x 2.8x 300% 10,000 2.8x 2.7x 2.3x 2.2x 250% 8,000 SAR Million 200% 6,000 150% 4,000 98% 101% 74% 75% 75% 74% 81% 100% 72% 2,000 50% 3,869 4,606 6,653 8,237 8,053 8,762 9,344 10,906 0 0% 2009 2010 2011 2012 2013 2014 2015 Last 12 Months Net Debt Net Debt / Equity Rat
Slide 14: Quarterly Performance – Net Income
Quarterly Performance – Net Income 2016 versus 2015 Q3 = 10.0% 700 Q2 = 18.5% 655 629 595 600 530 539 500 484 476 450 433 430 425 428 Q1 = 0.7% 398 400 380 369 373 349 363 SAR Million 343 * 306 309 286 300 287 284 274 255 249 234 235 242 197 200 100 0 * Capital gain of SAR 47m in 2012 Almarai Compan
Slide 15: EBIT and EBITDA margins are starting to improve
EBIT and EBITDA margins are starting to improve…… Net Sales, EBITDA and EBIT Evolution CAGR 2009 – 2016: 14.1% (w/o impact of acquisitions 10.7%) 26.7% 27.2% 25.6% 14,672 24.2% 24.4% 24.2% 24.4% 23.9% 21.8% 21.1% 13,795 19.1% 12,606 11,219 SAR Million Net Sales 16.9% 16.7% 16.0% 15.8% 16.4% EBIT % t
Slide 16: Key Share Data
Key Share Data 600% 500% Key Statistics for Almarai (29 September 2016) 400% Share Price (SAR) 53.11 Current P/E Ratio (ttm) 21.03 Earnings Per Share (SAR) (ttm) 2.53 300% Market Cap (SAR Million) 42,488 Shares Outstanding (Million) 800 Dividend Indicated Gross Yield 1.62% 200% 100% 0% Aug-12 Jun-11
Slide 17: Thank you
expand across borders “We will encourage our major corporations to expand QR Code for Almarai IR App. and take across borders theirtheir and take rightful rightful place in global markets” place in global markets. Thank you