Almarai Company · TADAWUL:2280
Almarai — Q3 2014 Earnings Presentation
26 slides from Almarai's earnings presentation, 2014
Slide 1: Almarai Company 2014 Q3 Earnings Presentation
Almarai Company 2014 Q3 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
Sa incl ol Almarai ee ee Business Highlights
Slide 4: Key Highlights – Q3 2014
Key Highlights – Q3 2014 3nd Quarter Q3 YTD SAR Million 2014 2013 Growth 2014 2013 Growth Sales Revenue 3,269 2,926 11.7% 9,275 8,211 13.0% EBIT 625 554 12.9% 1,443 1,338 7.8% Net Income 539 476 13.4% 1,246 1,129 10.4% Operating Cashflow 930 773 20.2% 2,241 1,792 25.1% Capital Expenditure 650 690 -5
Slide 5: Sales Highlights
Sa incl ol Almarai ——~__— Sales Highlights
Slide 6: Sales Analysis by Product – 9 months
Sales Analysis by Product – 9 months By Product 2013 By Product 2014 Fresh Dairy 3.4 42% Fresh Dairy 3.9 42% Cheese & Butter 1.2 15% Cheese & Butter 1.3 14% Fruit Juice 1.1 13% Fruit Juice 1.2 13% Bakery 1.0 13% Bakery 1.1 12% Long-Life Dairy 0.8 9% Long-Life Dairy 0.9 10% Poultry 0.6 7% Poultry 0.8
Slide 7: Growth Driven by Poultry, Long-Life and Juice – 9 months
Growth Driven by Poultry, Long-Life and Juice – 9 months Revenue in SAR Million Growth % of Total 10,000 2014 v 2013 Growth 9,275 Fresh Dairy 456 43% 9,000 8,211 ( YoY +13%) 8,000 Cheese & Butter 87 8% ( YoY +7%) 7,000 Fruit Juice 164 15% ( YoY +15%) 6,000 Bakery 103 10% 5,000 ( YoY +10%) Long Life
Slide 8: Sales Analysis by Country – 9 months
Sales Analysis by Country – 9 months By Geography 2013 By Geography 2014 KSA 5.4 66% KSA 6.0 65% UAE 0.7 9% UAE 0.9 9% Oman 0.4 5% Oman 0.5 5% Egypt 0.4 5% Egypt 0.5 5% Kuwait 0.4 5% Kuwait 0.4 5% Qatar 0.3 4% Qatar 0.4 5% Jordan 0.2 2% Jordan 0.2 2% Bahrain 0.2 2% Bahrain 0.2 2% Export / Others 0.2
Slide 9: Sales Analysis by Country – 9 months
Sales Analysis by Country – 9 months Growth % of Total 2014 v 2013 Growth Revenue in SAR Million 10,000 KSA 614 58% 9,275 ( YoY +11%) 9,000 UAE 117 11% 8,211 ( YoY +16%) 8,000 Oman 81 8% ( YoY +19%) 7,000 Egypt 85 8% ( YoY +23%) 6,000 Kuwait 37 3% ( YoY +9%) 5,000 Qatar 88 8% 4,000 ( YoY +26%) Jorda
Slide 10: Financial Performance
Sa incl ol Almarai ee ee Financial Performance
Slide 11: Strong pipeline of innovation continues in 2014
Strong pipeline of innovation continues in 2014 Almarai Company 2014 Q3 Earnings Presentation 11
Slide 12: Segment Reporting
Segment Reporting Dairy & Other Almarai SAR Million Bakery Poultry Juice Activities Consolidated Q 3 YTD 20 14 Sales 7,307 1,139 735 403 9,584 Third Party Sales 7,276 1,139 735 125 9,275 Depreciation (662) (125) (213) (61) (1,060) Income / (loss) before NCI 1,547 * 110 * (325) (74) 1,259 Total Asset
Slide 13: Alyoum (Poultry) Performance – Q3 Update
Alyoum (Poultry) Performance – Q3 Update GCC Poultry Market growth is +11% Fresh chicken market grows 3 times faster than frozen (Fresh chicken market grows 23% Vs Frozen chicken MAT Jul'13 market grows 7%) 3 times faster growth in Fresh chicken MAT Jul'14 market resulting in additional 3% con
Slide 14: Statement of Income – Q3 2014
Statement of Income – Q3 2014 3rd Quarter YTD 3rd Quarter SAR million 2014 2013 Change 2014 2013 Change Sales 3,269.4 2,926.1 11.7% 9,274.8 8,211.0 13.0% Cost of sales (2,018.2) (1,821.1) 10.8% (5,973.9) (5,243.8) 13.9% Gross Profit 1,251.2 1,105.0 13.2% 3,301.0 2,967.2 11.2% Selling and Distributio
Slide 15: Balance Sheet & Cash Flows
Sa incl ol Almarai ee ee Balance Sheet & Cash Flows
Slide 16: Cash Flow Bridge – Rolling 12 months
Cash Flow Bridge – Rolling 12 months 3,035 (526) (3,147) Loans Issues / Payments / Charges 2,274 Operating Cash (598) Flow 77 1,115 Capex / Biological Assets Dividend Others Ca sh at 30 Ca sh at 30 Sept 2013 (SAR 1,159 m) Sept 2014 Almarai Company 2014 Q3 Earnings Presentation 16
Slide 17: Capex spend in line with 5YP guidance…
Capex spend in line with 5YP guidance… Capex spend for the three quarters of 2014 was 2.1B 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 ~0.8B SAR for various capac
Slide 18: Almarai continues to invest in strategic arable assets across the globe
Almarai continues to invest in strategic arable assets across the globe… Poland: Owned land= 2.1K ha Fondomonte Arizona: Owned land= 3.9K ha Ukraine: Rented land= 30.8K ha Fondomonte – Arizona: 8 Planned Shipments till end of year. Fondomonte Argentina: Fondomonte – Argentina: Owned land= 12.3K ha •
Slide 19: Balance Sheet
Balance Sheet Assets Assets 20,000 1,845 Net Operating 22% 2014 71% 7% 1,456 1,0 56 Working Capital 966 2013 69% 23% 8% 15,000 Biological Assets 2012 73% 18% 9% SAR Million 16,218 2011 72% 17% 11% 10,000 Fixed Assets 14,614 2010 69% 17% 14% Property, Plant and Equipment Current Assets 2009 64% 20% 1
Slide 20: Net Debt
Net Debt 10,000 350% 3 .1x 9,000 3 .0 x 2.9x 2.8x 300% 8,000 2.3 x 2.3 x 2.2x 250% 7,000 SAR million 6,000 200% 5,000 150% 4,000 94% 98% 10 1% 3,000 74% 76% 77% 100% 72% 2,000 50% 1,000 3 ,3 98 3 ,869 4,60 6 6,653 8,23 7 8,161 8,782 0 0% 2008 2009 2010 2011 2012 2013 Last 12 Months Net Debt Net Debt
Slide 21: Deferred maturity profile of debt, along with diversification of funding source
Deferred maturity profile of debt, along with diversification of funding source……… 2.5 Debt Maturity by Age and Type 2.0 Islamic Bonds 2 Govt / Semi Govt Inst. 23% 1.5 Banks SAR Billion 6 1 63% 1.0 14% 0.5 0.0 <1yr 1-2 yr 2-3yr 3-4 yr 4-5yr >5yr Almarai Company 2014 Q3 Earnings Presentation 21
Slide 22: Trend charts
Sa incl,oJl Almarai ee a Trend charts
Slide 23: Quarterly Performance – Net Income
Quarterly Performance – Net Income 2014 versus 2013 600 Q3 = 13.4% 500 Q2 = 8.8% 400 Q1 = 7.2% * SAR Million 300 53 9.4 475.6 450 .0 43 3 .3 429.7 424.5 3 98.2 3 79.5 3 73 .3 3 69.0 200 3 63 .4 3 49.3 3 43 .1 293 .7 283 .5 287.1 285.5 273 .6 248 .8 255.1 242.1 23 5.2 23 5.2 23 4.1 219.2 197.4 100 16
Slide 24: Revenue growth continues but EBIT trend yet to stabilise
Revenue growth continues but EBIT trend yet to stabalise…. Revenue, EBITDA and EBIT Evolution 26.7% 27.2% 25.3% 25.6% 12,283 24.2% 24.4% 23.5% 21.8% 11,219 21.0% 21.1% 19.1% 9,883 SAR Million CAGR 2008 – 2014: 16.8% (w/o impact of acquisitions 11.6%) 16.9% 16.0% 15.5% Revenues 7,951 EBIT % to Revenu
Slide 25: Key Share Data
Key Share Data Key S tati sti cs for Al marai (3 0 S ept. 20 14) Year t o date total shareholder's return since 30% 450% S h are P ri ce (S AR ) 80 .25 l i sting C u rren t P /E R ati o (ttm) 3 1.4 25% 22% Esti mated P /E(12/20 14) 27.7 400% 20% Earn i n gs P er S h are (S AR ) (ttm) 2.6 M ark et C
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]