Almarai Company · TADAWUL:2280
Almarai — H1 2016 Earnings Presentation
17 slides from Almarai's earnings presentation, Jun 30, 2016
Slide 1: Almarai Company Interim results – 1st Half ended 30 June 2016
Almarai Company Interim results – 1st Half ended 30 June 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 Q2, 2016
Highlights – YTD Q2, 2016 Net Sales EBITDA Net Income 2016 2016 2016 SAR 7.5 B SAR 1.7 B SAR 0.9 B 2015 2015 2015 SAR 6.7 2013 B +11.8% SAR 1.5 B +11.9% SAR 0.8 B +12.0% SAR 11.2 B +12.4% Operating Cash Flow Capital Expenditure Free Cash Flow 2016 2016 2016 SAR 1.5 B SAR 2.3 B -1.0 B 2015 -18.7% -46
Slide 5: Innovation pipeline for 1st Half, 2016
Innovation pipeline for 1st Half, 2016 1st Quarter 2nd Quarter Almarai Company 2016 Q2 Earnings Presentation 5
Slide 6: Sales Highlights
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Slide 7: Sales Analysis by Segment by Product
Sales Analysis by Segment by Product Total 7,476 Net Sales (+789) +11.8% Dairy & Juice Bakery Poultry Others Net Sales 5,782 (77%) 916 (12%) 707 (10%) 71 (1%) By Segment (+560) (+164) (+84) (-19) +10.7% +21.8% +13.5% -20.9% Net Sales Fresh Dairy Long-Life Dairy Fruit Juice Cheese & Butter Bakery Pou
Slide 8: Sales Analysis by Region by Country
Sales Analysis by Region by Country Total 7,476 Net Sales (+789) +11.8% Net KSA Other GCC Countries Other Countries Sales 4,766 (64%) 1,976 (26%) 734 (10%) By Region (+491) (+195) (+103) +11.5% +11.0% +16.2% Net Sales KSA UAE Oman Qatar Kuwait Bahrain Egypt Jordan Others 4,766 (64%) 736 (10%) 373 (5
Slide 9: Operating Performance
YTD Q2, 2016 Results Operating Performance Gross Profit Operating Income Net Income in million SAR in million SAR in million SAR % to Sales 37.4% 37.7% 15.2% 15.3% 12.5% 12.5% 2,815 1,145 2,498 937 +316 1,017 +128 837 +100 YTD Q2, 2015 YTD Q2, 2016 YTD Q2, 2015 YTD Q2, 2016 YTD Q2, 2015 YTD Q2, 2016
Slide 10: Net Income by segment
YTD Q2, 2016 Results Net Income by segment: Basic EPS (SAR) 1.02 1.14 80 64 90 6 937 837 SAR Million YTD Q2, 2015 Dairy Bakery Poultry Other YTD Q2, 2016 Net Sales Growth 10.7% 21.8% 13.5% -20.9% 11.8% Net Income Growth 9.4% 113.1% 55.5% 7.5% 12.0% Net Income % 18.1% 16.5% -25.5% -111.2% 12.5% Almar
Slide 11: Almarai prudent approach towards its current investment cycle continues in Q2 2016
Almarai prudent approach towards its current investment cycle continues in Q2 2016. Capex spend for the 1st half of 2016 was 2.3 B SAR which is in line with our annual capex run rate. • Manufacturing and Farming spent Capex of ~1.4 B SAR for various capacity expansion projects. • Replacement and o
Slide 12: Cash Flow Bridge – Rolling 12 Months
Cash Flow Bridge – Rolling 12 Months 1,323 (4,908) 4,588 Loans Issues / Payments / Charges (688) Capex / Biological (280) 527 Assets 564 Dividend Others Operating Cash Flow Cash at 30 Cash at 30 June 2015 SAR 37 M June 2016 Almarai Company 2016 Q2 Earnings Presentation 12
Slide 13: Net Debt
Net Debt 12,000 350% 3.1x 3.0x 3.0x 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% 89% 74% 75% 75% 74% 100% 72% 2,000 50% 3,869 4,606 6,653 8,237 8,053 8,762 9,344 11,270 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 700 Q2 = 18.5% 629 595 600 530 539 500 476 484 450 433 430 428 Q1 = 0.7% 425 398 400 380 373 369 349 363 SAR Million 343 306 309 * 300 287 284 286 274 242 255 249 234 235 197 200 100 0 * Capital gain of SAR 47m in 2012 Almarai Company 2016 Q2 Earni
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% 14,584 24.2% 24.4% 24.2% 24.1% 23.9% 21.8% 21.1% 13,795 19.1% 12,606 11,219 SAR Million Net Sales 16.9% 16.0% 16.4% 16.4% EBIT % to Reve
Slide 16: Key Share Data
Key Share Data Key Statistics for Almarai (30 June 2016) Share Price (SAR) 54.69 Current P/E Ratio (ttm) 22.80 Earnings Per Share (SAR) (ttm) 2.40 Market Cap (M SAR) 43,752 Shares Outstanding (M) 800 Dividend Indicated Gross Yield 1.58% Almarai Company 2016 Q2 Earnings Presentation 16
Slide 17: Thank you
QR Code for Almarai IR App. expand across borders “We will encourage our major corporations to expand and take across borders theirtheir and take rightful rightful place in global markets” place in global markets. Thank you