Almarai Company · TADAWUL:2280
Almarai — Q2 2014 Earnings Presentation
26 slides from Almarai's earnings presentation, July 2014
Slide 1: Almarai Company 2014 Q2 Earnings Presentation
Almarai Company 2014 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: Key Highlights – Q2 2014
Key Highlights – Q2 2014 2nd Quarter 1st Half SAR Million 2014 2013 Growth 2014 2013 Growth Sales 2013 Revenue 3,287 2,874 14.4% 6,005 5,285 13.6% SAR 5.3 B EBIT 507 484 4.9% 818 785 4.2% Net Income 433 398 8.8% 707 653 8.2% Operating Cashflow 735 878 -16.3% 1,311 1,019 28.7% Capital Expenditure 739
Slide 5: Sales Highlights
NO an CncloJl Almarai — Sales Highlights
Slide 6: Sales Analysis by Product – 6 months
Sales Analysis by Product – 6 months By Product 2013 By Product 2014 10% 10% L ong-Life Dairy 7% L ong-Life Dairy 0.6 8% 0.5 Poultry Poultry 13% 2% 0.4 13% 0.5 1% Fr uit Juice Fr uit Juice O ther Sales O ther Sales 0.7 0.8 0.1 0.1 13% 13% Ba kery SAR 5.3 B Ba kery SAR 6.0 B 0.7 0.8 40% 40% Fr esh Da
Slide 7: Growth Driven by Poultry, Long-Life and Juice – 6 months
Growth Driven by Poultry, Long-Life and Juice – 6 months Revenue in SAR Million Growth % of Total 7,000 2013 v 2014 Growth Fresh Dairy 289 40% 6,005 ( YoY +14%) 6,000 5,285 Cheese & Butter 95 13% ( YoY +12%) 5,000 Bakery 62 9% ( YoY +9%) 4,000 Fruit Juice 98 14% ( YoY +15%) 3,000 Long Life 81 11% (
Slide 8: Sales Analysis by Country – 6 months
Sales Analysis by Country – 6 months By Geography 2013 By Geography 2014 2% Ba hrain 5%Q4% 4% 0.1 5% 5% 2% Ba0.1 hrain a tar E gypt 3% 3% 5% Qa tar E gypt 5% K uwait 0.3 0.2 0.2 Jor dan E xport / Others 5% 0.3 0.3 3% 2% K uwait E xport / Oth O ma n 0.1 0.1 Jor dan 0.3 0.1 9% 0.3 Oma n 0.2 UAE 9% 0.3
Slide 9: Sales Analysis by Country – 6 months
Sales Analysis by Country – 6 months Growth % of Total 2013 v 2014 Growth Revenue in SAR Million 7,000 KSA 409 58% ( YoY +12%) 6,005 UAE 83 11% 6,000 ( YoY +17%) 5,285 Oman 52 7% ( YoY +19%) 5,000 Kuwait 30 4% ( YoY +11%) 4,000 Qatar 63 9% ( YoY +28%) Egypt 58 8% 3,000 ( YoY +25%) Bahrain 16 2% ( Yo
Slide 10: Sales growth via expanding footprints across the region and globe
Sales growth achieved via our expanding footprints across the region…… and resources across the globe… Capital Investment of 1.3 B SAR in Egypt includes setting up a new juice factory, expanding existing facilities, increasing Beyti's fleet of vehicles and sales network, and creating a new dairy far
Slide 11: Financial Performance
NO an Ciclo Almarai a Financial Performance
Slide 12: Strong pipeline of innovation continues in 2014
Strong pipeline of innovation continues in 2014 Almarai Company 2014 Q2 Earnings Presentation 12
Slide 13: Segment Reporting
Segment Reporting Dairy & Other Almarai SAR Million Bakery Poultry Juice Activities Consolidated 1st H al f 20 14 Sales 4,692.9 772.6 461.5 183.0 6,109.9 Third Party Sales 4,673.3 772.6 461.5 98.1 6,005.4 Depreciation (472.4) (67.5) (138.8) (46.2) (725.0) Income / (loss) before NCI 897.9 66.9 (236.4
Slide 14: Statement of Income – Q2 2014
Statement of Income – Q2 2014 2nd Quarter 1st Half SAR million 2014 2013 Change 2014 2013 Change Sales 3,286.5 2,873.9 14.4% 6,005.4 5,284.9 13.6% Cost of sales (2,148.1) (1,839.4) 16.8% (3,955.7) (3,422.6) 15.6% Gross Profit 1,138.4 1,034.5 10.0% 2,049.8 1,862.3 10.1% Selling and Distribution Expen
Slide 15: Balance Sheet & Cash Flows
NO an CncloJl Almarai a Balance Sheet & Cash Flows
Slide 16: Cash Flow Bridge – Rolling 12 months
Cash Flow Bridge – Rolling 12 months 1,700 (222) (3,187) Loans Issues / Payments / 2,878 Charges Equity Issued - Perpetual Sukuk (598) Capex / 71 1,063 Biological Assets 421 Dividend Others Operating Cash Flow Ca sh at 30 Ca sh at 30 June 2013 (SAR 642 m) June 2014 Almarai Company 2014 Q2 Earnings P
Slide 17: Capex spend in line with 5YP guidance
Capex spend in line with 5YP guidance… Capex spend for 1st half of 2014 was 1.5B SAR. Our current year Capex guidance remains at 3.0- 3.2B SAR which is in line with our 5 year capital expenditure guidance of 15.7B SAR. Manufacturing and Farming spent Capex of ~0.6B SAR for various capacity expan
Slide 18: Balance Sheet
Balance Sheet Assets N et Operating Working C apital Assets 20 ,0 00 1,796 20 14 71% 22% 7% 1,3 3 1 1,0 49 Bi ological Assets 20 13 69% 23% 8% 945 15,0 00 20 12 73% 18% 9% SAR Million P roperty, Plant and 20 11 72% 17% 11% 15,923 Equipment 10 ,000 Fixed Assets 14,281 20 10 69% 17% 14% Intangible Ass
Slide 19: Net Debt
Net Debt 10 ,000 3 50 % 3 .1x 3 .0 x 9,0 00 3 .0 x 2.8x 3 0 0% 8,0 00 2.3 x 2.3 x 2.2x 250 % 7,0 00 SAR million 6,0 00 20 0 % 5,0 0 0 150 % 4,0 00 94% 98% 10 1% 3 ,0 00 74% 76% 82% 10 0 % 72% 2,0 00 50 % 1,0 00 3 ,3 98 3 ,869 4,60 6 6,653 8,23 7 8,161 8,994 0 0% 20 0 8 20 0 9 20 10 20 11 20 12 20 13
Slide 20: Debt Profile highlights balanced approach for funding
Debt Profile highlights balanced approach for funding…. 2.5 Debt Maturity by Age and Type 2.0 Isl amic Bonds Govt / Semi Govt Inst. 2 , 23 % 1.5 Ban ks S AR Million 6 , 62% 1 , 15% 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 2014 Q2 Earnings Presentation 20
Slide 21: Trend charts
NO an CncloJl Almarai — Trend charts
Slide 22: Analysts expectations for Q2 2014
Analysts expectations for Q 2 2014 Revenue 3 ,50 0.0 3 ,0 00.0 2,50 0.0 3 ,28 6.5 3 ,235.8 2,0 00.0 1,50 0.0 1,0 00.0 Act ual Results Average Expectations Net Income 450 .0 40 0 .0 3 50 .0 3 0 0.0 43 3 .3 43 0 .6 250 .0 20 0 .0 150 .0 10 0 .0 Act ual Results Average Expectations Almarai Company 2014
Slide 23: Quarterly Performance – Net Income
Quarterly Performance – Net Income 2014 versus 2013 Q2 = 8.8% 450 400 350 * Q1 = 7 .2% 300 475.6 250 SAR Million 450 .0 43 3 .3 429.7 424.5 3 98 .2 3 79.5 3 73 .3 200 3 69.0 3 63 .4 3 49.3 3 43 .1 293 .7 283 .5 287.1 285.5 273 .6 150 248.8 255.1 242.1 23 5.2 23 5.2 23 4.1 219.2 197.4 100 162.2 50 0
Slide 24: Robust revenue growth with challenging EBITDA & EBIT trend
Robust revenue growth with challenging – but anticipated – EBITDA & EBIT trend Revenue, EBITDA and EBIT Evolution 26.7% 27.2% 25.3% 25.6% 24.2% 24.4% 11,940 23.7% 21.8% 11,219 21.0% 21.1% 19.1% 9,883 SAR Million CAGR 2008 – 2014: 17.0% (w/o impact of acquisitions 11.8%) 16.9% 16.0% 15.3% Revenues 7,
Slide 25: Key Share Data
Key Share Data Key S tati sti cs for Al marai (3 0 Ju n e 20 14) Year to date total shareholder's return since S h are P ri ce (S AR ) 70 .0 1 30% l i sting C u rren t P /E R ati o (ttm) 27.8 40 0 % 2 5% 21% Esti mated P /E(12/20 14) 23 .8 Earn i n gs P er S h are (S AR ) (ttm) 2.5 2 0% M ark et C a
Slide 26: 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]