Savola Group · TADAWUL:2050
Savola — YTD Q3 2021 Earnings Presentation
30 slides from Savola's earnings presentation, 2021
Slide 1: Savola Group Earnings Presentation YTD Q3 2021
Savola Group www.savola.com Earnings Presentation | YTD Q3 2021
Slide 2: Disclaimer
DISCLAIMER This presentation might contain 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
Slide 3: Group Key Financial Highlights; Performance by Segment
1. Group Key Financial Highlights 2. Performance by Segment 3
Slide 4: Group - Highlights
GROUP - HIGHLIGHTS • The Group witnessed a higher topline performance during YTD & Q3 2021 despite the higher base of last year driven mainly by higher commodity prices and recovery in food services segment Business Highlights • In the foods segment, higher volumes, better pricing of edible oil and
Slide 5: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 Q3-19 Q3-20 Q3-21 YTD-19 YTD-20 YTD-21 +7% +1% +5% +8% Sales 5,214 5,923 5,954 5,813 6,007 5,912 5,148 6,048 16,175 16,517 17,914 4,587 +7% -2% -3% +1% Gross Profit 1,223 1,212 1,163 1,279 1,116 1,08
Slide 6: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 Q3-19 Q3-20 Q3-21 YTD-19 YTD-20 YTD-21 +13% +1% -12% 0% EBITDA 693 641 873 724 725 2,290 505 664 677 564 1,892 1,883 9.7% 11.7% 10.8% 11.4% 14.5% 11.5% 14.1% 15.8% 9.3% 11.7% 13.9% 10.5% Excluding -2
Slide 7: Group – Revenue Mix, Net Debt & Capex
GROUP – REVENUE MIX, NET DEBT & CAPEX SAR in millions Revenue by Business Revenue by Geography YTD-20 YTD-21 YTD-20 YTD-21 5% 5% 11% 3% 3% 5% 11% 38% 10% 2% 47% 13% 45% 54% 71% 77% Food Processing Retail Food Services Frozen Food KSA Egypt Central Asia Others YoY Growth +36% -11% +27% -17% -1% +43%
Slide 8: Group – YTD Net Income Bridge
GROUP – YTD Net Income Bridge SAR in millions Net Income Bridge by Business -45% 866 (320) 24 476 82 (134) (28) (14) YTD 2020 Retail Share of Almarai Frozen Food Food Processing Food Services Others YTD 2021 Note: numbers are rounded 8
Slide 9: Group Key Financial Highlights; Performance by Segment
1. Group Key Financial Highlights 2. Performance by Segment 9
Slide 10: Panda Retail Company
JgbLa SAVOLA Panda Retail Company 10
Slide 11: Retail - Highlights
RETAIL - HIGHLIGHTS • The retail segment reported weaker performance in YTD 2021, driven by weaker Key Highlights consumer sentiment, higher VAT, expat exodus and higher base of last year during lockdown Store Count • Store count is maintained at 205 stores, including 4 stores in Egypt • Our retail
Slide 12: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 Q3-19 Q3-20 Q3-21 YTD-19 YTD-20 YTD-21 +4% -3% -1% 0% COVID-19 COVID-19 COVID-19 impact impact impact Sales 3,099 2,720 3,042 3,463 2,559 2,527 2,532 8,098 9,089 8,095 2,497 2,843 0.4% -3% +1% +4% Gross Profit 8
Slide 13: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 Q3-19 Q3-20 Q3-21 YTD-19 YTD-20 YTD-21 +14% -22% +5% +57% Excluding one-offs* Excluding one-offs* Excluding EBITDA one-offs* 378 177 231 225 844 240 135 163 141 432 481 66 2.6% 7.8% 6.0% 4.4% 10.9% 6.2% 9.0% 8.9
Slide 14: Retail – Number of Stores
RETAIL – NUMBER OF STORES Super Hyper Store converted to fulfillment center 1 145 145 145 60 60 60 (1) Dec Additions Closures Dec Additions Closures Sep Dec Additions Closures Dec Additions Closures Sep 2019 2020 2021 2019 2020 2021 Total Dec-19 Dec-20 Sep-21 Selling Area Selling Area Driven by resi
Slide 15: Savola Foods Company
JgbLa SAVOLA Savola Foods Company ayac il Foods Jgbls SAVOLA 15
Slide 16: Foods - Highlights
FOODS - HIGHLIGHTS • Our foods segment reported resilient performance during YTD despite challenging market dynamics, continued commodity price increases and challenges in overseas Key Highlights markets • Successfully completed the acquisition of Bayara in October 2021 • Volumes increased by about
Slide 17: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 Q3-19 Q3-20 Q3-21 YTD-19 YTD-20 YTD-21 +10% +6% +12% +19% Sales 2,476 2,906 2,350 2,230 2,656 3,083 8,646 2,408 2,185 6,943 6,358 1,653 -4% -7% +1% +13% Gross Profit 466 382 359 349 318 268 278 1,066 1,002 1,092
Slide 18: Foods – Consolidated Financial Highlights
FOODS – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 Q3-19 Q3-20 Q3-21 YTD-19 YTD-20 YTD-21 +5% -4% +5% +12% EBITDA 261 215 228 239 167 172 155 589 620 655 207 221 8.6% 8.9% 9.0% 9.2% 10.2% 9.0% 7.6% 10.4% 5.0% 8.5% 9.8% 7.6% Excluding Excluding -2% on
Slide 19: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues YTD-19 YTD-20 YTD-21 YTD-19 YTD-20 YTD-21 +4% CAGR (’19-’21) 1,255 CAGR (’19-’21) 6% 5,710 Morocco +26% Morocco +6% 1,165 1,159 +13% 6% 6% 7% Sudan +61% Sudan +36% 6% 3% 6% 8% 8% Algeria -19% Algeria -15% 12% 4,447 6% Turkey -2%
Slide 20: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues YTD-19 YTD-20 YTD-21 YTD-19 YTD-20 YTD-21 CAGR (’19-’21) +3% CAGR (’19-’21) YoY Growth 1,135 +7% 2,251 Egypt +21% (YTD ’21 vs. ’20) YoY Growth Egypt +22% 1,068 (YTD ’21 vs. ’20) KSA 0% Egypt KSA +4% 988 20% 1,964 21% 15% Egypt
Slide 21: Recap of Savola Foods Strategy
Recap of Savola Foods Strategy • Health, convenience, and youth driven trends are the fastest-growing and future focus segments in our markets • Savola Foods has activated its strategy to enter large and established categories with attractive prospects via M&A 1) Anchor: 1) Anchor 2) Disrupt 3) Conq
Slide 22: Savola Foods acquisition of Bayara Holding
Savola Foods acquisition of Bayara Holding Key Highlights Overview ▪ Savola Foods successfully completed the acquisition of Bayara Holding for approximately SAR 975 million on October 14, 2021. ▪ The acquisition is pivotal to Savola Foods’ growth strategy focused on expansion into high growth, value
Slide 23: Al Kabeer Group of Companies
Al Kabeer Group of Companies 23
Slide 24: Frozen Food - Highlights
FROZEN FOOD - HIGHLIGHTS • The frozen food segment witnessed YTD decline due to supply chain challenges and changing regulatory environment in Saudi Arabia Key Highlights • The above factors have led to higher input costs for the business segment as well as supply disruptions • Revenues witnessed 17
Slide 25: Frozen Foods – Consolidated Financial Highlights
FROZEN FOODS – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 Q3-19 Q3-20 Q3-21 YTD-19 YTD-20 YTD-21 -7% +17% +2% +3% 192 182 211 181 584 Sales 175 159 142 149 453 483 129 +13% +10% +3% -9% Gross Profit 66 61 96 66 228 48 70 57 44 54 162 172 37.3% 34.5%
Slide 26: Frozen Foods – Consolidated Financial Highlights
FROZEN FOODS – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 Q3-19 Q3-20 Q3-21 YTD-19 YTD-20 YTD-21 +1% +22% +10% +11% EBITDA 29 52 29 25 108 23 26 27 27 67 81 17 18.2% 13.6% 16.4% 14.7% 24.8% 17.3% 11.7% 16.3% 16.7% 14.7% 18.5% 16.8% -2% +6% +4% +11% N
Slide 27: Financial Summary
JgbLa SAVOLA Financial Summary 27
Slide 28: Financials – YTD September 2021
FINANCIALS – YTD September 2021 (all figures are in SAR millions) Segment Wise Financials YTD September 2021 YTD September 2020 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Food* Oil-Mature Markets 4,486 724 329 167 405 3,075 594 285 171 352 Oil-Other Marke
Slide 29: Investor Relations Application
INVESTOR RELATIONS APPLICATION Views Savola Group share price, charts and performance on the go Savola Group Annual & Quarterly figures Savola Group News releases from Tadawul Annual/Quarterly Reports accessible offline http://www.myirapp.com/savola 29
Slide 30: Thank you
JQGoLA SAVOLA Thank you vola.com i}