Almarai Company · TADAWUL:2280
Almarai — Q3 2012 Earnings Presentation
23 slides from Almarai's earnings presentation, October 2012
Slide 1: Almarai Company 2012 3rd Quarter Earnings Presentation
Almarai Company 2012 3rd Quarter 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: Performance Highlights – Q3, 2012
Performance Highlights – Q3, 2012 Q3 2012 Year to Date Q3 2012 Growth over last Growth over last SAR ' M year SAR ' M year Group Revenue 2,673.0 27.0% 7,237.5 23.5% Group Revenue 2,491.7 18.4% 6,891.7 17.6% excluding IDJ Net Income 450.0 4.7% 1,071.6 5.7% Revenue growth of 23.5% driven by core bus
Slide 4: Product innovation: Growth driver
Product innovation: Growth driver Almarai Company 2012 Q3 Earnings Presentation 4
Slide 5: Statement of Income
Statement of Income 3rd Quarter Year to Date 3rd Quarter SAR million 2012 2 0 1 1 Change 2012 2011 Change Net Sales 2,673.0 2,105.3 27.0% 7,237.5 5,861.7 23.5% Cost of sales (1,660.8) (1,234.0) 34.6% (4,596.3) (3,589.0) 28.1% Gross Profit 1,012.2 871.3 16.2% 2,641.2 2,272.7 16.2% Selling and Distrib
Slide 6: Sales Analysis by Product & Region
Sales Analysis by Product & Region Sales by Country - YTD Q3 2012 Sales by Product Bahrain UAE Oman Jordan Y T D Q3 2 012 Egypt Sa les by Pr oduct Qatar 2.0% 9.9% 5.2% 3.0% 1.7% 4.1% G r oup SAR M illion 2 012 2 011 % cha nge Export / Others Fresh Dairy 2,996.5 2,601.5 15.2% Kuwait 1.7% Long-Life Da
Slide 7: Sales Revenue Growth by Region
Sales Revenue Growth by Region 7,2 37 23 .5% YOY Growth 16.3% 5 ,862 4,884 4,199 17.5% 1,892 1,610 779.5% 461 52 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 2012 2011 2012 2011 2012 2011 2012 2011 KSA GCC Al l Other Countries Total Almarai Company 2012 Q3 Earnings Presentation 7
Slide 8: Revenue and Net Operating Income Evolution
Robust revenue growth with challenging – but anticipated – EBIT trend Revenue and Net Operating Income Evolution 2 1.8% 2 1.0% 2 1.0% 2 1.1% 9,327 2 0.7% 2 0.1% 19.4% 19.1% 17 . 6% 7 ,951 6 ,931 SAR in Million CAGR 2004 – 2011: 22.8% (w/o impact of acquisitions 19.6%) 16.9% 5,869 5,030 3,770 2,757 2
Slide 9: Quarterly Performance – Net Income
S AR Million 0 50 250 400 100 150 200 300 350 450 500 90.6 Almarai Company 12 2.8 162 .2 197.4 2 34.1 2 35.2 2 42.1 Q1 = 2.9% 12 1.8 165.3 2 35.2 2 87.1 343.1 349.3 379.5 Q2 = 8.7% 2012 versus 2011 12 2.6 2012 Q3 Earnings Presentation 186.1 2 93.7 363.4 42 4.5 42 9.7 45 0.0 Q3 = 4.7% 130.2 Quarterly
Slide 10: Cash Flow Statement (Q3 YTD 2012)
Cash Flow Statement (Q3 YTD 2012) 3,0 00 2 ,500 7 4 2.5 SA R Million 2 ,000 Strong revenue growth 1 ,5 00 2, 208.5 resulted in positive 1 ,000 1, 395.7 operating cash flow…. 50 0 27 2.0 201. 8 0 Cash at beginning Fro m Operating Fro m Financing Us ed in Investing Cash at end of o f period A ctivitie
Slide 11: Cash Flow Bridge (rolling 12 months)
Cash Flow Bridge (rolling 12 months) 1,000 (2,997) 800 Sukuk 2,080 Loans Issues / Others (517) Capex (3 26) 162.0 201.8 Dividend Operating Cash Investment in Flow Subsidiary Ca sh Sept Ca sh Sept 2 011 + SAR 39.8 m 2 012 Almarai Company 2012 Q3 Earnings Presentation 11
Slide 12: Balance Sheet
Balance Sheet SAR Mi l l i on 30.09.12 30.09.11 Net Operating Working Capital 1,381 925 Biological Assets 883 804 Property, Plant and Equipment 12,849 9,577 Net Operating Assets 15,113 11,306 Intangible Assets - Goodwill 1,383 793 Investment and Financial Assets & Deferred 374 929 Charges 16,870 13,
Slide 13: Net Debt
Net Debt 9,000 400% 8,000 350% 7,000 2.8x 3.4x 300% in million SAR 6,000 2.3x 2.3x 2.3x 2.2x 250% 5,000 2.0x 200% 4,000 150% 3,000 96% 100% 107% 81% 73% 76% 100% 2,000 69% 1,000 50% 1,315 2,463 3,499 3,951 4,679 6,749 8,495 0 0% 2006 2007 2008 2009 2010 2011 2012 Net Debt Net Debt / Equity Ratio Net
Slide 14: Segment Reporting
Segment Reporting D ai ry & Arabl e an d O th er Al marai S AR M i l l i on Bak ery P ou l try Ju i ce H orti cu l tu re Acti vi ti es C on sol i dated Q 3 YTD 20 12 Sales 5,880.7 921.3 341.9 288.6 0.0 7,432.6 Third Party Sales 5,870.3 921.3 341.9 103.9 0.0 7,237.5 Net Depreciation (347.3) (82.8) (3
Slide 15: Operational Update
Operational Update Almarai Company 2012 Q2 Earnings Presentation 15
Slide 16: 2012: Key Focus Areas
2012: Key Focus Areas Expand distribution across GCC, with special emphasis on poultry Deliver growth across and bakery 1 all product portfolio Continue exploring new product development revenues Manage procurement process in line with inventory cover Improve group margin requirements. 2 % F
Slide 17: Progress against Key Focus Areas
Progress against Key Focus Areas Almarai Company 2012 Q3 Earnings Presentation 17
Slide 18: Deliver Growth across all product portfolio
1 Deliver Growth across all product portfolio Well underway Still to achieve Strong Q3 results including strong poultry and bakery results buoyed by GCC Full range of bakery to be available across distribution GCC Sales growth is expected to continue for Commissioning of poultry plant by end
Slide 19: Margin areas of focus
2 Margin areas of focus Well underway Still to achieve SMP Cost advantages from purchases earlier in Packaging improvement projects to deliver the year are expected to materialise during quality value to our customers the next few quarters. However increase in Continue to improve our hedging s
Slide 20: Cash Flow Management
3 Cash Flow Management Well underway Still to achieve Inter divisional collaboration Cost control across all categories and Focus on supply chain and streamlining end functional areas to end inventory movement Debt management program to keep funding Continue expanding on “Lean” concept cost
Slide 21: Integration of other business units
4 Integration of other business units Well underway Still to achieve Changes in key management positions Integration of Fondomonte business with Implement operational & control policies in Almarai financial and operational units has both Fondomonte & IDJ continued well in Q3 along with focus on
Slide 22: Q&A
Q&A Almarai Company 2012 Q3 Earnings Presentation 22
Slide 23: 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 1 470 00 05 ext 1280 [email protected]