Almarai Company · TADAWUL:2280
Almarai — FY2016 Earnings Presentation
22 slides from Almarai's earnings presentation, 2017
Slide 1: Almarai Company Annual Results – 2016
Almarai Company Annual Results – 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: Industry & Environment Overview
Industry & Environment Overview 2016 First Half Second Half • Increased competition from Brazilian • Improvement in frozen poultry pricing frozen products leading to reduction in poultry losses • Increases in fuel and electricity costs • Lower consumer confidence/sentiment • Reduction in Government
Slide 5: Main events during 2016
Main events during 2016 Purchase of Egyptian Partial and Additional Pound Increase in the Gradual Egyptian Pound Agricultural Devaluation Share Capital Commissioning of Devaluation Land in from 7.8 to 8.9 from SAR 6.0B the New Bakery from 8.9 to ~18.0 California EGP to 1 USD to 8.0B Plant in Hail EG
Slide 6: Market Share - KSA
Market Share - KSA Laban UHT Juices Puffs 68% 66% 69% 20% 47% 60% 18% 45% 2015 2016 2015 2016 2015 2016 2015 2016 Fresh Milk Bread Chicken Jar Cheese 69% 36% 36% 67% 68% 68% 44% 38% 2015 2016 2015 2016 2015 2016 2015 2016 Almarai Company 2016 Earnings Presentation 6
Slide 7: Innovation Pipeline for 2016
Innovation Pipeline for 2016 Q1 Q2 Q4 Q3 Almarai Company 2016 Earnings Presentation 7
Slide 8: Financial Highlights
Sa CncloJl Almarai ee ee Financial Highlights
Slide 9: Highlights – Full Year 2016
Highlights – Full Year 2016 Net Sales EBITDA Net Income 2016 2016 2016 SAR 14.7 Billion SAR 3.7 Billion SAR 2.1 Billion 2015 2015 2015 SAR 13.82013 Billion +6.6% SAR 3.3 Billion +11.5% SAR 1.9 B +8.6% SAR 11.2 B +12.4% Operating Cash Flow Investing Cash Flow Free Cash Flow 2016 2016 2016 SAR 4.4 Bil
Slide 10: Sales Analysis by Segment by Product
Sales Analysis by Segment by Product Total 14,699 Net Sales (+904) +6.6% Dairy & Juice Bakery Poultry Others Net Sales 11,274 (77%) 1,891 (13%) 1,368 (9%) 166 (1%) By Segment (+533) (+265) (+106) (-0) +5.0% +16.3% +8.4% -0.0% Net Sales Fresh Dairy Long-Life Dairy Fruit Juice Cheese&Butter Bakery Pou
Slide 11: Sales Analysis by Region by Country
Sales Analysis by Region by Country Total 14,699 Net Sales (+904) +6.6% Net KSA Other GCC Countries Other Countries Sales 9,283 (63%) 3,880 (26%) 1,536 (11%) By Region (+495) (+216) (+193) +5.6% +5.9% +14.4% Net Sales KSA UAE Oman Qatar Kuwait Bahrain Egypt Jordan Others 9,283 (63%) 1,446 (10%) 742
Slide 12: Operating Performance
Full Year 2016 Results Operating Performance Gross Profit Operating Income Net Income SAR Million SAR Million SAR Million % to Sales 38.3% 39.7% 1.4 pp 16.4% 17.3% 0.9 pp 13.9% 14.2% 0.3 pp 5,834 2,542 5,283 2,080 +550 2,262 1,916 +280 +164 (+10.4%) (+12.4%) (+8.6%) Full Year 2015 Full Year 2016 Ful
Slide 13: Statement of Income
Statement of Income 4th Quarter Full Year SAR million 2015 2016 Change 2015 2016 Change Sales 3,584 3,610 0.7% 13,795 14,699 6.6% Cost of sales (2,246) (2,150) (4.3%) (8,511) (8,865) 4.2% Gross Profit 1,338 1,461 9.2% 5,283 5,834 10.4% Selling and Distribution Expenses (671) (696) 3.7% (2,612) (2,85
Slide 14: Segment Reporting
Segment Reporting Other Almarai SAR Million Dairy & Juice Bakery Poultry Activities Consolidated Q4 YTD 2016 Net Sales 11,274 1,891 1,368 166 14,699 Depreciation (1,207) (178) (295) (114) (1,795) Net Income 2,239 332 (294) (196) 2,080 Net Income % to Sales 19.9% 17.6% (21.5%) (118.4%) 14.2% Total As
Slide 15: Net Income by Segment
Full Year 2016 Results Net Income by Segment: Basic EPS* (SAR) 2.35 2.54 127 (81) (25) 2,080 143 1,916 SAR Million Full Year 2015 Dairy & Juice Bakery Poultry Other Full Year 2016 Net Sales Growth 5.0% 16.3% 8.4% (0.0%) 6.6% Net Income Growth 6.8% 62.0% 37.6% 14.6% 8.6% Net Income % 19.9% 17.6% (21.
Slide 16: Almarai continues 5 Year Plan CAPEX Investment
Almarai continues 5 Year Plan CAPEX Investment CAPEX spend for the year of 2016 was SAR 4.4 Billion. • Manufacturing and Farming spent CAPEX of SAR ~2.7 Billion for various capacity expansion projects. Central Processing Plant 3, Hail Bakery and Cheese Plant A are the highest contributors. • Repla
Slide 17: Cash Flow Bridge
Cash Flow Bridge 4,394 (63) (4,901) Loans Issues / Payments / Charges 2,039 (688) Operating Cash Flow CAPEX / Biological (51) 730 Assets Dividend Others Cash at 31 Cash at 31 Dec 2015 (SAR 1,309 Million) Dec 2016 Almarai Company 2016 Earnings Presentation 17
Slide 18: Net Debt
Net Debt 12,000 350% 3.1x 3.0x 2.8x 300% 10,000 2.8x 2.7x 2.7x 2.3x 2.2x 250% 8,000 SAR Million 200% 6,000 150% 4,000 98% 101% 74% 75% 75% 74% 81% 100% 72% 2,000 50% 3,869 4,606 6,653 8,237 8,053 8,762 9,344 10,889 0 0% 2009 2010 2011 2012 2013 2014 2015 2016 Net Debt Net Debt / Equity Ratio Net Deb
Slide 19: Quarterly Performance – Net Income
Quarterly Performance – Net Income 2016 versus 2015 Q3 = 10.0% 700 Q2 = 18.5% 655 629 595 600 539 Q4 = 1.0% 530 489 500 476 484 450 433 430 425 428 Q1 = 0.7% 398 400 380 369 373 349 363 SAR Million 343 306 309 * 300 287 286 284 274 255 249 234 235 242 197 200 100 0 * Capital gain of SAR 47m in 2012
Slide 20: 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: 13.0% (w/o impact of acquisitions 9.6%) 26.7% 27.2% 25.6% 25.3% 24.2% 24.4% 24.2% 23.9% 21.8% 14,699 21.1% 13,795 19.1% 12,606 11,219 SAR Million Net Sales 17.3% 16.9% 16.0% 15.8% 16.4% EBIT % to
Slide 21: Key Share Data
Key Share Data Key Statistics for Almarai (1 January 2017) Share Price (SAR) 68.50 Current P/E Ratio (ttm) 26.57 Earnings Per Share (SAR) (ttm) 2.53 Market Cap (SAR Million) 54,792 Shares Outstanding (Million) 800 Dividend Indicated Gross Yield 1.31% Almarai Company 2016 Earnings Presentation 21
Slide 22: Thank you
For Investor Relations matters please contact: [email protected] “We will encourage our major corporations to expand across borders and take their rightful place in global markets” expand across borders QR Code for Almarai IR App. and take their rightful place in global markets. Thank y