Almarai Company · TADAWUL:2280
Almarai — Q1 2021 Earnings Presentation
34 slides from Almarai's earnings presentation, Jan 1, 2021
Slide 1: Almarai Earnings Presentation Q1 2021
— Uncholl Almarai Almarai® Company
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. We do not make any representation regarding, and assume no responsibility or liability for, the a
Slide 3: Contents
Contents resentation-Q1 202
Slide 4: ay i Ly ig)
ay i Ly ig)
Slide 5: Almarai response to COVID-19 Pandemic
Almarai’ response to COVID-19 Pandemic Strategy Almaraito deliver “Quality you can trust” to its consumers whilst being integral to the nation’s food security. Minimize business disruption and execute plan for a post crisis global economy. Protect our consumers and employees from any possible harm.
Slide 6: Speed of recovery from COVID-19
1 “Recovering Economy” GDP 3 “Resurgent Economy” GDP Virus contained but sector damage; lower LT trend growth Virus contained; strong growth rebound TIME TIME Economics Almarai Economics Almarai • Strong GDP Growth • Strong Growth in Revenue and Market Share • Moderate GDP growth • Resize Business •
Slide 7: Leadership in KSA
Leadership in KSA Dec-19 Dec-20 Feb-21 Feb-21 Category Almarai Rank Almarai Value | Almarai Value | Almarai Value Share % Share % Share % Laban 65 64 64 Fresh Milk 67 65 65 UHT Milk 21 19 19 Food 39 38 36 Juice 43 42 42 Bakery 54 53 52 36 35 =/—)/a/a|i np! =| = Poultry (Fresh Chicken) Earnings Prese
Slide 8: Business Performance
Slide 9: 3,70 0%) 3,60 (20 0%) 3,50 0 40 (40 0%) 37 5 45 0
3,70 0 60 39 0 55 0 0%) 38 5 3,60 0 50 (20 0%) 50 0 38 0 3,50 0 40 (40 0%) 37 5 45 0 3,40 0 30 (60 0%) 37 0 3,30 0 40 0 36 5 20 (80 0%) 3,20 0 36 0 35 0 10 (1,00 0%) 3,10 0 35 5 3,00 0 - 30 0 (1,20 0%) 35 0 3,60 0 16 000 % 60 0 60 000 % 30 0 0% 3,40 0 14 000 % 25 0 -10 00% 50 0 50 000 % 3,20 0 12 00
Slide 10: Q1 2021 Sales Bridge
Q1 2021 Sales Bridge ‘a > Reported Growth +1% | 1% 3,645 3,592 (1%) 2% (1%) 0% ———e s = oc fy Like-for-like growth +0% Q1 2020 Volume Price Mix Currency Others Q1 2021 XR S anc trol Almarai’ ;5 YoY %/ (YoY%) Earnings Presentation- Q1 2021
Slide 11: Q1 2021 Revenue Growth
aX; Earnings Presentation- Q1 2021 Q1 2021 Revenue Growth (SAR Million) Revenue % of Revenue Growth Growth % KSA 2,431 67% -2% Other GCC 712 20% -9% Others 501 14% 160 47% Total 3,645 100% 53 1%
Slide 12: Egypt and Jordan led the geographical growth
.. However Egypt an an led the geographical growth Q1 2021 Total Revenue - SAR 3,645 Million Q1 2021 Total Growth -CSAR 53M (+1%) Others| 4% (2%) (12%) 31% (4%) (12%) 43% (2%) 99% Bahrain | 61 66 33 oo Boome a = KSA UAE Egypt = Kuwait Oman Jordan Bahrain Others Total Q12020 8% ™% 16% 22% (7%) 35% 5%
Slide 13: Fresh Dairy and Long Life Dairy contributed the most to topline growth
Fresh Dairy and Long Life Dairy contributed the most to topline growth Q1 2021 Total Revenue - SAR 3,645 Million Q1 2021 Total Growth -CSAR 53M (+1%) Other Sales 3% Fruit Juice: 8% 3% (1%) (1%) (10%) 10% (2%) 49% 39 36 40 | oD In 6) [| — LO Fresh Dairy Food Poultry Bakery LLD Fruit Juice Other Sales
Slide 14: Food Service and Traditional Trade channel growth was a key highlight
Food Service and Traditional Trade channel growth was a key highlight for the quarter Q1 2021 Total Revenue - SAR 3,645 Million Q1 2021 Total Growth -CSAR 53M (+1%) Other / Exports. 9% Food Service 13% SAR Million Traditional Trad nn Traditional Trade © ModemTrade © © FoodService Other /Exports. Tot
Slide 15: Financial Performance
Slide 16: Revenue, Operating Profit, Net Income
Revenue Operating Profit Net Income 3,645 502 + 1 % -2% YoY Growth YoY Growth 385 +1% YoY Growth SAR Million Resilient Financial Performance Despite of Pandemic Earnings Presentation -Q1 2021
Slide 17: Financial Performance - Q1 2021
Financial Performance - Q1 2021 2021 vs.Q12020 Revenue - Resilient post VAT & pandemic General market weakness in GCC countries due to second wave of COVID-19, led by UAE . 1% * Strong performance in Jordan and Egypt in all product 1% categories 2%) con Lower dairy feed subsidy, driven by no subsidy
Slide 18: Results by Segment - Q1 2021
Results by Segment - Q1 2021 7 Dairy &Juice Revenue by Segment (SAR Milton) Stronger long life dairy sales in Egypt. Jordan & Export markets + Weaker foods year on year due to base effect of higher food purchases during COVID-19 in Q1 2020 * Continued weakness in juice segment + Lower subsidy year o
Slide 19: Net Income Bridge - Q1 2021
Net Income Bridge - Q1 2021 383 (62) 21 386 22 a : po 22 a 2 a = < oO T T T , T Q1 2020 Subsidy Impact (Poultry Improvement in IDJ Lower Funding Cost Improvement in Q1 2021 & Dairy) Performance Operational Performance YoY %/(YOY%) Earnings Presentation - Q1 2021 19
Slide 20: 3,60 % 3,40 % 3,20 % 3,00 0 % 2,80 0 80 00% 2,60
3,60 0 16 000 % 3,40 0 14 000 % 3,20 0 12 000 % 3,00 0 10 000 % 2,80 0 80 00% 2,60 0 60 00% 2,40 0 40 00% 2,20 0 20 00% 30 0 0% 2,00 0 0% 25 0 -10 00% 20 0 -20 00% 15 0 -30 00% 10 0 -40 00% 50 -50 00% 0 -60 00% 600 60000% 500 50000% 400 40000% 300 30000% 200 20000% 100 10000% 0 0%
Slide 21: Strategic Management of Working Capital
Strategic Management of Working Capital 20% 21% 22% 19% _ e —e— 10% 9% 10% E eo ° = cc < 7) 1,383 1,318 1,329 2,689 2,668 3,238 3,466 2015 2016 2017 2018 2019 2020 Q1 2021 ma Working Capital -e Working Capital as a % of Net Sales Earnings Presentation- Qi 2021 21
Slide 22: CAPEX continues to trend lower
CAPEX continuous to trend lower Capital Investment 2015 to TTM Q1 2021 29% 30% 20% E 14% 11% = 6% 6% $ 3,986 2,844 1,923 1,650 Ea 2015 2016 2017 2018 2019 2020 TTMQ1 2021 maNet Cash Used in Investing Activities -e- Investment as a % of Net Sales ° Capex cash spend continues to decline in line with c
Slide 23: Free Cash Flow
Free Cash Flow ain OCF = SAR4.6B 48 (0.2) (1.3) —___—_—_ 0.5 Bio Assets (2 2) . mo) 00 Total Facility of | Total Facility of £59 | / 66 | Cash |i} H : i Cash : onnenene 0.2 Fignaar 2020 Liquidity Operating Cash Flow Working Capital Capex Net Payment tor Dividend Others EndQ1 2021 Liquidity 0.3 Fundi
Slide 24: Continues Improvement in Free Cash Flow
Continues Improvement in Free Cash Flow Free Cash Flow 2015 to TTMQ1 2021 Earnings Presentation- Qi 2021 22% 18% 18% —e o— 9% 10% § 4% x -3% <= n 523 1,304 1,332 2,602 2,830 3,343 (509) 2015 2016 2017 2018 2019 2020 TTMQ1 2021 ma Free Cash Flow -e-Free Cash Flow as a % of Net Sales tacholl Almarai 2
Slide 25: Net Debt and EBITDA/EBIT Margins
bt and EBIT A/EBIT Marg Net Debt Trend EBITDA and EBIT Margins 2018 2019 Net Debt (SAR M) Net Debt / Equity Ratio 2020 TTMQ1 2021 Net Debt / EBITDA ——__ 28% 26% 26% — . 19% 16% 13,558 15,410 2018 2019 2020 TTM Q1 2021 mNet Sales (SAR M) EBITDA % to Net Sales EBIT % to Net Sales * Net of Time Deposit
Slide 26: Debt Maturity Profile highlights average debt tenure at 3.77 Years
Debt Maturity Profile highlights average debt tenure at 3.77 Years (SAR Billion) Debt Maturity by Age and Typ: es 0.3 03 Up to 1Yr 1-2Yrs 2-3Yrs 3-4Yrs 4-5Yrs mBanks mGovt/SemiGovt Inst. gg Islamic Bonds 7 >5Yrs gw Banks 24% gw Govt / Semi Govt Inst. = Islamic Bonds Earnings Presentation- Qi 2021 En
Slide 27: Cash Dividend Since Listing
Cash Dividend Since Listing ‘sar mition 50% 471% 45% 42% 43% 41% 42% 42% gy 40% 3506 36% 36% +=«=35% «= 34% a 200 272 381 ; : : 720 750 850 850 2012) 2013) 2014S. 2015. 2016 )=— 2017's 2018 = 2019S 2020 \ SAR Million 2006 2007 2008 2009 2010 2011 miCash Dividends Payout Ratio * Earnings Presentation
Slide 28: SBhbk:
ad SBhbk:
Slide 29: Almarai
Almarai® Earnings Presentation -Q1 2021 | om see 29
Slide 30: Key Share Data
Key e Data Key Statistics for Almarai (31 Mar 2021) m Savola Year to date total shareholder's return since listing sow Share Price (SAR) 52.00 - 25% Current P/E Ratio (ttm) 26.2 m= HHPrince Sultan am | bin Mohammed 14% Earnings Per Share (SAR) (ttm) 1.98 1% 9 m@ PIF 4 Market Cap (SAR Million) 52,000
Slide 31: All countries and categories recorded positive result
All countries and categories recorded positive result Revenue By Geography - SAR Million Revenue By Category - SAR Million Bahrain Others Fruit Juice 1] i] i 79 I 297 Other Sales 2% 1 8% 121 1] H 3% ! Long Life Dair I 414 1 129% I Fresh Dairy ! 1,201 ! 33% a1 2020 Q12021 || Bakery a1 2020 12021 {391
Slide 32: Income statement Q1 2021
YoY %/ (YoY%) 1st Quarter SAR Million 2021 2020 Change Revenue 3.645 100.0% 3,592 100.0% 1.5% Cost of sales (2,410) (66.190 (2,339) (65.1%) (3.0%) Gross Profit 1,235 33.9% 1,253 349% (1.4%) Selling and Distribution Expenses (604) (16.690 (612) (17.05) 12% General and Administration Expenses (97) (2.
Slide 33: Results by Segment
Results by Seg t SAR Million Dairy & Juice Bakery Poultry Others 5 Consolidat YTD Q1 2021 Revenue 2,581 391 552 121 3,645 Depreciation and Amortisation (359) (57) (87) (47) (549) Profit Attributable to Shareholders 290 38 55 3 386 Percent to Revenue of Profit Attributable to Shareholders 11.2% 9.7%
Slide 34: Thank you
Thank you Earnings Presentation - Q1 2021