Afg International Company · TADAWUL:4240
Afg International — Fawaz Abdulaziz Alhokair — Q1 FY2023 Earnings Presentation
32 slides from Afg International's earnings presentation, August 2022
Slide 1: Earnings Presentation Q1-FY23
ALHOKAIR Mf J 24531 Fashion Retail 5p aU clLyjl Earnings Presentation | Q1-FY23 Asat 30 June 2022 / Fawaz Abdulaziz Alhokair Co. | SaudiExchange:4240
Slide 2: Management Review
/ Management Review Ql1-FY23
Slide 3: Q1-FY23 results supported by resumption of Ramadan; international operations and F&B robust
Q1-FY23 results supported by resumption of the Holy month of Ramadan; international operations and F&B exhibit robust performance 82 1,676 484k +10,500 71% Brands Total Number of Stores Gross Floor Area, sqm Employees Saudization Key Leading Franchise Retailer Strong International Differentiators in
Slide 4: Our Brand Portfolio Is Our Competitive Advantage & Transformation Driver
Our Brand Portfolio Is Our Competitive Advantage & Transformation Driver to a Lifestyle Destination 82 Targeting most consumer segments Diversifying F&B offering Successful relationships with partners and Evolving brand mix focused on high brands* through economy and alignment on strategy margin seg
Slide 5: Retail and F&B store openings and closures
Retail F&B Q1-FY23 ▪ 28 stores opened Q1-FY23 F&B ▪ 11 stores opened Retail ▪ 16 stores closed ▪ 15 stores closed ▪ Net 12 openings ▪ Net 4 closures FY23 Retail ▪ c. 80 stores to be FY23 F&B ▪ c. 120 new outlets (inc. opened with Capex of ~ acquisition of sub- SAR 220mn franchises) to be added, with
Slide 6: Vogacloset Monobrand Platforms
Ongoing channel optimization on Vogacloset & via our Monobrand platforms Vogacloset Monobrand Platforms KSA International ▪ 48 Alhokair fashion brands are now live Q1-FY23 ▪ Launched 4 new monobrand sites in KSA: Charles & Keith, La Vie en Rose, FG4 Kids & Women, and Jacadi. The Company currently ▪
Slide 7: Financial Review
/ Financial Review Q1-FY23
Slide 8: Q1-FY23 Revenue, Gross Profit, EBITDA, Net Profit
Q1-FY23 SAR 1,706 mn SAR 278 mn SAR 146 mn SAR 58 mn Revenue Gross Profit EBITDA* Net Profit +0.3% vs Q1-FY22 -16.4% vs Q1-FY22 -3.3% vs Q1-FY22 +26.1% vs Q1-FY22 *EBITDA represents pre-IFRS 16 EBITDA, i.e. EBITDA after deducting depreciation on right-of-use assets and finance cost on lease liabilit
Slide 9: Stable revenue performance in Q1-FY23
Revenue, SAR million LFL consolidated sales growth, % Stable revenue performance in Q1-FY23, at SAR 1,705 million LFL revenue declined 3% YoY, due to Saudi retail, as a result (+0.30% YoY), supported by international operations and of absence of Ramadan ramp-up period F&B 1,701 1,706 190.0% 1,466 1,
Slide 10: Gross Profit and EBITDA
Gross Profit, SAR million – GPM, % EBITDA, SAR million – EBITDA Margin, % Gross profit reached SAR 278 mn in Q1-FY23, with a GPM of EBITDA margin of 8.6% surpasses management guidance 16.3%, due to absence of Ramadan ramp up period and change in discount period adopted by the Company 20% 17% 9% 9% 9
Slide 11: Aggressive inventory management and working capital optimization
Aggressive inventory management and working capital optimization to improve liquidity and increase efficiency Inventory balance (SAR million) Inventory efficiency ratios -17% YTD 1,700 26% 1,411 24% 23% 22% 22% 1,099 1,168 1,021 18.2 18.1 17.3 21.7 18.3 Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 Q1-FY2
Slide 12: Capital restructuring on track; Rights Issue of SAR 1 billion pending CMA approval
Capital restructuring on track, with capital reduction already implemented. Rights Issue of SAR 1 billion is pending CMA approval 1. Share Capital of SAR 1.1 bn 2. Capital reduction 3. Capital increase by with accumulated by 45.3% completed way of a SAR 1.0 bn losses of SAR 21.6 mn as by cancelling
Slide 13: Steady improvement in the bottom line, supported by trading
5. 4. Recapitalization on 3. Ongoing successful track, to provide solid financial position 2. F&B segment on execution of Operational Upgrade supporting growth 1. sustained growth agenda International retail Strategy; Ramping up trajectory, with focus our Digitization and operations report on expand
Slide 14: Thank you
M Thank you
Slide 15: Financial Statements
Financial Statements
Slide 16: Income statement
SAR Million Q1-FY23 Q1-FY22 % Change YoY Revenue 1,706 1,701 0.3% Cost of Revenue (1,428) (1,368) 4.3% Gross Profit 278 333 -16.4% Gross Profit Margin 16.3% 19.6% (3.3) Selling and Distribution Expenses (44) (44) -0.4% General and Administrative Expenses (85) (99) -13.3% Other operating expense (8)
Slide 17: Balance sheet
SAR Million Assets Property, Plant and Equipment 1,420 1,358 5% Right-of-Use Assets 3,306 3,276 1% Goodwill and Intangible Assets 1,094 1,083 1% Investment Property 2 2 0% Equity-accounted investees 63 62 2% Other investments 297 300 -1% Derivative asset 30 30 0% Total Fixed Assets 6,212 6,110 2% In
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Slide 19: Revenue by division, channel and geography
Revenue by division Revenue by channel Revenue by geography 7% 5% 4% 2% 16% 6% 4% 10% 3% 3% 13% 7% 81% 96% 87% 78% 95% 84% Q1-FY23 - Outer circle Q1-FY 23 - Outer circle Q1-FY23 - Outer circle Q1-FY22 - Inner circle Q1-FY 22 - Inner circle Q1-FY22 - Inner circle KSA Retail Int'l Retail F&B Stores On
Slide 20: Store network evolution and sales density
Store network evolution Gross Floor Area, SQM vs Sales Density, SAR Net store openings of 11 stores in Q1-FY23 Q1-FY23 revenue per sqm of SAR 13,283, an increase of 5% YoY on strong international retail performance 1,709 12,687 13,283 1,682 1,684 1,668 1,676 12,331 303 312 322 318 314 317 316 315 31
Slide 21: LFL Saudi and international retail sales growth
LFL Saudi retail sales growth, % LFL international retail sales growth, % Saudi LFL revenues down 6% in Q1-FY23, due to absence of LFL revenues up 21%, due to sustained improvement in performance Ramadan ramp-up, which was fully captured in Q1-FY22 and of the CIS counties and Jordan despite weakness
Slide 22: Saudi retail store network evolution
Q1-FY23 KSA revenue per sqm remained flat on stable performance Saudi retail store network evolution Gross Floor Area, SQM vs Sales Density, SAR 1,089 13,211 13,656 13,627 8,907 48 50 1,054 29 14 25 1,047 1,052 1,042 22 20 24 17 15 345 320 321 330 Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 FY20 FY21 FY
Slide 23: Online sales almost doubled over the last quarter
Online sales almost doubled over the last quarter due to Ramadan trading, and surpassed levels achieved during the pandemic. Contribution to retail revenue exceeds 5% (exc F&B). Online revenues, SAR million E-commerce sales, % of total retail sales 82 84 62 5.6% 55 55 4.4% 5.3% 48 3.9% 4.1% 4.0% 3.8
Slide 24: F&B segment delivers solid performance
F&B segment delivers solid performance, with first income streams from the Subway sub- franchise royalty fees; Focus remains on 3 strategic revenue growth pillars F&B store network evolution Total number of transactions, million 322 3.3 3.3 3.3 318 312 314 17% 303 19 3.0 13 11 5% 7 8 2% -5 -4 2.8 -9
Slide 25: Slide 25
Slide 26: Portfolio optimization, operational excellence, building a lifestyle brand
01 Portfolio optimization Optimize store network 02 Operational excellence IT, finance and other optimization initiatives Exit weak/non-performing markets Revamp inventory & supply chain management Expand portfolio – unique brand experience 1st phase of shared service center live Increase revenue pe
Slide 27: Expand store network of existing brands; onboard new brands
01 Expand store network of existing brands 02 Onboard new brands Expedite the store rollout of leading brands Target new brands that have delivery capabilities, scalability, multi-format and Increase the number of sub franchises adaptability features Improve our cross-selling capabilities 03 Grow ou
Slide 28: International footprint
Return to parent slide Kazakhstan Georgia Balkans Armenia Azerbaijan Lebanon Iraq Morocco Jordan Kuwait Libya Egypt Bahrain Qatar KSA UAE Oman Core market International footprint Market access via Vogacloset * US operations is not represented in the graph Earnings Presentation Q1-FY23 28
Slide 29: Brand portfolio
Return to parent slide * These brands are present in international markets only Brand count as of June 2022. Count excludes newly signed agreements (Fnac Darty & Secrets) Earnings Presentation Q1-FY23 29
Slide 30: Actively addressing our capital structure to boost liquidity
Actively addressing our capital structure to boost liquidity position and operational / strategic flexibility The successful capital restructuring will allow Alhokair to renegotiate the financial terms and ultimately regain full compliance with covenants in FY23 SAR million Jun’22 Mar’22 YTD % chang
Slide 31: Disclaimer
This presentation has been prepared solely for use as an investor presentation for Fawaz Abdulaziz Alhokair Co. (the “Company”). By attending or by reading this presentation, you agree to be bound by the following limitations. The information contained in this presentation is for background purpose
Slide 32: Thank you
M Thank you
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