Savola Group · TADAWUL:2050
Savola — Q4 2019 Earnings Presentation
23 slides from Savola's earnings presentation, 2020
Slide 1: Earnings Presentation Q4 2019
Earnings Presentation Q4 2019 www.savola.com
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements which may be identified by the use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections about
Slide 3: FY2019 Key Highlights
FY2019 Key Highlights • Management focus on delivery of key turnaround milestones in our retail business; Business Highlights whilst managing a challenging macroeconomic environment in foods • Savola Group has witnessed 2.0% growth in topline during 2019 Financial • Net Income stood at SAR 475.6 mn
Slide 4: Snapshot Q4 2019
SNAPSHOT Q4 2019 • Q4 2019 Revenue of SAR 5.5 bn (Q4 2018: SAR 5.3 bn) GROUP • Q4 2019 Net Income of SAR 137.3 mn (Q4 2018: Net Loss of SAR 526.0 mn) • Q4 2019 Revenue of SAR 2.8 bn (Q4 2018: SAR 2.9 bn) RETAIL • Q4 2019 Net loss of SAR 11.3 mn (Q4 2018: Net Loss of SAR 285.4 mn) • Q4 2019 Revenue o
Slide 5: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-18 Q1-19 Q2-18 Q2-19 Q3-18 Q3-19 Q4-18 Q4-19 FY-18 FY-19 5%-2% -2% -2% 2% -2% 3% -2% 2% Sales 5,108 5,388 6,148 6,024 5,212 5,336 5,347 5,496 21,815 22,243 17%-2% 9% -2% 16% -2% 24% -2% 16% - Gross Profit 909 1,065 1,067 1,163 932 1
Slide 6: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-18 Q1-19 Q2-18 Q2-19 Q3-18 Q3-19 Q4-18 Q4-19 FY-18 FY-19 109% -2% 52% -2% 106% +106% 237% 105% +105% 2,585 EBITDA 664 724 692 505 437 1,239 246 351 205 4.8% 9.4% 7.1% 11.0% 6.7% 13.6% 3.8% 12.6% 5.7% 11.6% -22% -2% Net Income 6 222
Slide 7: Group – Revenue Mix, Net Debt & Capex
GROUP – REVENUE MIX, NET DEBT & CAPEX SAR in millions Revenue by Business Revenue by Geography FY-18 FY-19 FY-18 FY-19 5% 6% 10% 1% 2% 8% 5% 10% 44% 41% 9% 9% 50% 51% 73% 76% Food Processing Retail Food Services Frozen Food KSA Egypt Central Asia Others Net Debt and Net Debt to Liquid Assets (%)* CA
Slide 8: Implications of Exceptional Items
SAR in millions Note: Numbers are rounded FY 2018 1,239 reported EBITDA FY-18 FY 2019 2,585 reported EBITDA Store Closure & 18 Project Write-off FY-19 Adjusted EBITDA IFRS16 Net Impact (705) FY 2019 1,898 Adjusted EBITDA FY 2018 (520) reported NI IMPLICATIONS OF EXCEPTIONAL ITEMS (3) Capital gain on
Slide 9: Panda Retail Company
PANDA RETAIL COMPANY Q4 2019 9
Slide 10: Retail - Highlights
RETAIL - HIGHLIGHTS • The performance of our retail business has significantly improved over last year, as Key Highlights management continues to focus on key turnaround milestones • Store count reached 205 stores by end of Q4, including 4 stores in Egypt Store Count • As part of our ongoing portfol
Slide 11: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-18 Q1-19 Q2-18 Q2-19 Q3-18 Q3-19 Q4-18 Q4-19 FY-18 FY-19 3% 12% 1% 4% -2% -1% -2% 11,114 11,497 Sales 2,377 2,671 3,229 3,253 2,645 2,747 2,863 2,826 10% - 11% -2% 3% 13% 13% -2% 2,311 2,544 Gross Profit 500 557 603 624 542 612 666 752 21.0% 20
Slide 12: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-18 Q1-19 Q2-18 Q2-19 Q3-18 Q3-19 Q4-18 Q4-19 FY-18 FY-19 752 320 66 135 231 191 244 EBITDA* (26) 30 49 71 (62) (74) (152) (87) Q1-19 Q2-19 Q3-19 Q4-19 FY19 Adjusted Adjusted Adjusted Adjusted Adjusted EBITDA EBITDA EBITDA EBITDA EBITDA 86 Net l
Slide 13: Retail – Number of Stores by Quarter
RETAIL – NUMBER OF STORES BY QUARTER SAR in millions Super Hyper 153 1 66 145 60 (9) (6) Dec Additions Closures Dec Dec Additions Closures* Dec 2018 2019 2018 2019 Total Dec-18 Dec-19 Selling Area 219 1 Selling Area 689,633 m2 634,399 m2 205 (15) Dec Additions Closures Dec 2018 2019 *Closures includ
Slide 14: Savola Foods Company
SAVOLA FOODS COMPANY Q4 2019 14
Slide 15: Foods - Highlights
FOODS - HIGHLIGHTS • The performance of our foods segment, improved over last year, despite pressure on Key Highlights volumes and top-line on our edible oil business • Strong recovery in margins and profitability of our edible oils and sugar operations • Volume has declined by 1.5% to 3,312 KMT in
Slide 16: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-18 Q1-19 Q2-18 Q2-19 Q3-18 Q3-19 Q4-18 Q4-19 FY-18 FY-19 -6% -2% -13% -2% -5% -2% 5% -2% -5% -2% Sales 2,572 2,408 2,692 2,350 2,311 2,185 2,161 2,266 9,735 9,209 11% -2% -1% -2% 8% -2% 47% -2% 13% -2% 331 367 385 382 295 318 310 1,376 Gross Pro
Slide 17: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-18 Q1-19 Q2-18 Q2-19 Q3-18 Q3-19 Q4-18 Q4-19 FY-18 FY-19 36% -2% 2% -2% 20% -2% 207% -2% 34% -2% EBITDA 207 212 215 167 152 741 152 140 552 49 5.9% 8.6% 7.9% 9.2% 6.0% 7.6% 2.3% 6.7% 5.7% 8.0% -51% C 292 Net Income 112 135 75 65 40 8 (17) (44) (
Slide 18: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues FY-18 FY-19 FY-18 FY-19 -2% -2% -9% -9.4% 1,624 6,589 1,585 Morocco 5% 5% Morocco 6% 3% 5,969 YoY +7% 4% YoY -2% 4% 6% Sudan 10% 9% Sudan YoY -9% 11% 4% YoY +18% Algeria 9% 11% 11% Algeria YoY +14% 11% YoY +13% Turkey 13% Turkey
Slide 19: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues FY-18 FY-19 FY-18 FY-19 -0% 0% 2% +1.5% 1,416 1,414 2,509 2,546 Egypt Egypt YoY -19% 16% 13% 14% YoY -16% 16% KSA KSA YoY +3% YoY +5% 84% 87% 86% 84% Note: Sugar volumes and revenues include only the contribution from our conso
Slide 20: Al Kabeer
(welgaew) UQOLA SAVOLA Al Kabeer Q4 2019 20
Slide 21: Frozen Food – Al Kabeer
FROZEN FOOD – AL KABEER Margin SAR in millions Company Sector Region Revenue by Geography (2019) • UAE KSA • SAUDI ARABIA UAE Frozen food • BAHRAIN • OMAN 66% Others manufacturing & distribution • OTHERS Market Snapshot 21% GCC Frozen Food Market (SAR bn) 2 1 Market Size: SAR 38bn 2 3 13% Saudi Arab
Slide 22: Financial Summary
FINANCIAL SUMMARY 22
Slide 23: Financials – FY 2019
Ls FINANCIALS — FY 2019 gol SAVOLA {all figures are in SAR milions) Emerging Catagerios*** tea : en (32) @ 167 a ea) ay a9) Toral Food 3208 Tae S28 292 Tar as rem 373 7) 352 petal rsa 12,395 2526 2 (230) ns 13,016 2296 (e09) (229) (039) ayet 102 18 2) ‘o) 3 $8 im 27 29) 9) Total Retail 11,497 2,544