Almarai Company · TADAWUL:2280
Almarai — FY2012 Earnings Presentation
28 slides from Almarai's earnings presentation, January 2013
Slide 1: Almarai Company 2012 Full Year Earnings Presentation
Almarai Company 2012 Full Year 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 Ciclo Almarai a Business Highlights
Slide 4: Financial Highlights – Full year 2012
Financial Highlights – Full year 2012 Revenue of 9.9B SAR, growth of 24.3% driven by core business (poultry 58%, bakery 34% and juice 21%) and inclusion of IDJ results in the top line. Revenue growth of 17.6% in KSA, 17.1% in all other GCC states and 583.7% in rest of the world including Jordan
Slide 5: Operational Highlights – Full year 2012
Operational Highlights – Full year 2012 Volume growth of 13.9% excluding IDJ. Price & Mix effect accounted for 2.7% of the growth. Strong sales growth experienced across all key product categories. Distribution drive helped achieved higher sales growth, with particular focus for bakery expansion
Slide 6: Strong pipeline of innovation throughout 2012
Strong pipeline of innovation throughout 2012 Almarai Company 2012 Q4 Earnings Presentation 6
Slide 7: Sales Highlights
NO an CncloJl Almarai — Sales Highlights
Slide 8: Sales Growth – Geography mix
Sales Growth – Geography mix Full year 2011 Full year 2012 All All Ot hers Ot hers 7% 1% GCC 28 % GCC 26% KSA KSA 67% 71% 6.7 17. KSA 6% 5.7 2.6 GCC 17.1 2.2 % All 0 .7 584 Others 0 .1 % 2011 Rev in Almarai 9.9 B SAR 24.3 Group 8 .0 % 2012 Rev in B SAR % Growth Almarai Company 2012 Q4 Earnings Prese
Slide 9: Sales Analysis by Product & Region
Sales Analysis by Product & Region Sales by Product Sales by Country - YTD Q4 2012 Bahrain UAE Oman Jordan Egypt 1.9% Sa les by Pr oduct YT D Q 4 Qatar 2.0% 9.8% 5.2% 3.3% 4.2% Export / Gr oup SAR M illion 2 0 12 2 0 11 % chang e Others 1.4% Fresh Dairy 4,0 62.1 3,475.7 16.9% Kuwait 4.9% Long-Life D
Slide 10: Statement of Income
NO an tncloJl Almarai — Statement of Income
Slide 11: Statement of Income – Full Year 2012
Statement of Income – Full Year 2012 Full Year SAR m illion 20 12 20 11 Change Net Sales 9 ,8 8 3.0 7,9 51.0 24 .3% Cost of sales (6,371.9) (4,954.5) 28 .6% Gross Profit 3,511.1 2,9 9 6 .5 17.2% Selling and Distribution Expenses (1,616.7) (1,213.2) 33.3% General and Administration Expenses (221.4) (
Slide 12: Evolution of key financial metrics - during the year 2012
Evolution of key financial metrics - during the year 2012 20 12 Q1 Q2 Q3 Q4 Full Year Net Sales 2,0 40 .3 2,524.1 2,673.0 2,645.5 9,8 8 3.0 Gross Profit 70 7.3 921.7 1,0 12.2 8 69.9 3,511.1 EBIT DA 447.5 60 6.8 699.3 633.5 2,38 7.1 EBIT 292.5 434.6 50 8 .6 437.3 1,672.9 Net Incom e 242.1 379.5 450 .
Slide 13: Segment Reporting
Segment Reporting D airy & Arable and O t her Alm arai SAR M illion Bakery Poult ry Juice H ort icult ure Act ivit ies Consolidat ed YTD Q 4 20 12 Sales 7,98 8 .4 1,290 .6 50 4.4 38 6.0 0 .0 10 ,169.4 Third Part y Sales 7,972.7 1,290 .6 50 4.4 115.3 0 .0 9,8 8 3.0 Net Depreciat ion (48 1.3) (114.2)
Slide 14: Trend charts
NO an CncloJl Almarai — Trend charts
Slide 15: Revenue, EBITDA and EBIT Evolution
Robust revenue growth with challenging – but anticipated – EBITDA & EBIT trend Revenue, EBITDA and EBIT Evolution 26.7% 27.2% 25.7% 26.0% 25.6% 25.3% 24.2% 21.8% 20.7% 21.0% 21.1% 9,883 19.4% 19.1% SAR in Million 7,951 CAGR 2006 – 2012: 23.7% (w/o impact of acquisitions 17.8%) 6,931 16.9% Revenues 5
Slide 16: Quarterly Performance – Net Income
Quarterly Performance – Net Income 2012 versus 2011 500 Q3 = 4.7% 450 Q2 = 8.7% Q4 = 29.2% 400 350 300 Q1 = 2.9% SAR M illion 250 4 50 .0 4 29 .7 4 24 .5 3 79.5 3 6 9.0 200 3 6 3.4 3 4 9.3 3 4 3.1 29 3 .7 28 7.1 28 3.5 150 24 8 .8 24 2.1 23 4 .1 23 5.2 23 5.2 28 5.5 219 .2 19 3.1 19 7.4 18 6.1 100 1
Slide 17: Cash Flows
NO an CncloJl Almarai — Cash Flows
Slide 18: Cash Flow Statement (Full year 2012)
Cash Flow Statement (Full year 2012) 400 3,000 300 2,384 2,500 200 Strong revenue growth SAR Million 264 100 2,000 resulted in positive operating 0 (97) (100) 1,500 cash flow…. (200) (449) (266) 989 (548) 1,000 (300) (400) 500 (500) 526 383 486 (600) Free Cash Flow Operating Cash Flow - Q 4 YTD SAR
Slide 19: Cash Flow Bridge
Cash Flow Bridge 1,0 0 0 (2,9 37) 20 6 2,3 8 4 Sukuk Loans Issues / Others (512) Capex 4 4 17 272 Dividend Operating Cash Investment in Flow Subsidiary Cash Dec Cash Dec 20 11 + SAR 145 m 20 12 Almarai Company 2012 Q4 Earnings Presentation 19
Slide 20: Balance Sheet
NO an CncloJl Almarai — Balance Sheet
Slide 21: Balance Sheet
Balance Sheet S AR M illion 3 1.12.12 3 1.12.11 Net Operat ing Working Capit al 932 805 Biological Asset s 90 1 8 18 Propert y , Plant and Equipment 13,416 10 ,50 8 Net Operat ing Asset s 15,249 12,131 Int angible Asset s - Goodwill 1,335 8 21 Invest ment and Financial Asset s & Deferred 295 90 7 Ch
Slide 22: Net Debt
Net Debt 9 ,0 0 0 3 .2x 350 % 8 ,0 0 0 2.8 x 30 0 % 7,0 0 0 2.3 x 2.3 x 2.3 x 2.2x 250 % 6 ,0 0 0 in m illion 2.0 x 5,0 0 0 20 0 % 4 ,0 0 0 150 % 96% 10 0 % 10 2% 3 ,0 0 0 8 1% 69% 73 % 76 % 10 0 % 2,0 0 0 50 % 1,0 0 0 1,3 15 2,4 6 3 3 ,4 9 9 3 ,9 51 4 ,6 79 6 ,74 9 8 ,3 0 5 0 0% 20 0 6 20 0 7 20 0
Slide 23: Debt Profile highlights balanced approach for funding
Debt Profile highlights balanced approach for funding…. 2.5 Debt Maturity by Age and Type Islamic Bonds 2.0 Govt / Semi Govt Inst. 1.0, Banks 12% 1.5 SAR Billion 1.9, 22% 1.0 5.8, 66% 0.5 0.0 2013 2014 2015 2016 2017 2018 & Beyond Almarai Company 2012 Q4 Earnings Presentation 23
Slide 24: Capital Expenditure
NO an tncloJl Almarai — Capital Expenditure
Slide 25: Capex spend in line with Guidance
Capex spend in line with Guidance… Capex spend of 3.1B SAR in line with earlier forecast provided and on track for our 5 year projection. Poultry capex spend for the year amounted to 1.8B SAR. Poultry plant started commissioning late in Q4 and is expected to be in full swing by mid Q1. General
Slide 26: Key Share Data
Key Share Data Key Statistics for Almarai (19 Jan 2013) Current P/E Ratio (ttm) 21.7 300% Estimated P/E(12/2012) 18.4 Earnings Per Share (SAR) (ttm) 3.0 Market Cap (M SAR) 25,998 Shares Outstanding (M) 400.0 250% 30 Day Average Volume 286,033 Dividend Indicated Gross Yield 2.0% Cash Dividend (SAR) 1
Slide 27: Q & A
Q&A Almarai Company 2012 Q4 Earnings Presentation 27
Slide 28: 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]