Almarai Company · TADAWUL:2280
Almarai — Q1 2014 Earnings Presentation
25 slides from Almarai's earnings presentation, April 2014
Slide 1: Almarai Company 2014 Q1 Earnings Presentation
Almarai Company 2014 Q1 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
NO an CncloJl Almarai a Business Highlights
Slide 4: Highlights – Q1 2014
Highlights – Q1 2014 Financial Highlights Sales Revenue EBITDA EBIT 2014 2014 2014 SAR 2.7 B SAR 0.6 B SAR 0.3 B 2013 2013 2013 SAR 2.4 B +12.8% SAR 0.5 B +10.7% SAR 0.3 B +3.2% Operational Highlights Acquisition Road Map • 50% share of IPNC • US Arable Farm Acquisition • 3rd Line of Poultry Work Fo
Slide 5: Sales Highlights
NO an CncloJl Almarai — Sales Highlights
Slide 6: Sales Analysis by Product
Sales Analysis by Product By Product 2013 By Product 2014 14% Ba kery 7% 14% 8% 0.3 Poultry Ba kery 0.2 1% 0.4 Poultry 16% Other Sales 0.2 1% Cheese & O ther Sales Butter 0.0 16% 0.0 0.4 Cheese & Butter 0.4 SAR 2.4 B SAR 2.7 B 12% 12% Fr uit Juice 40% Fr uit Juice 39% 0.3 Fr esh Dairy Fr esh Dairy 0
Slide 7: Growth Driven by Poultry, Long-Life and Fresh Dairy
Growth Driven by Poultry, Long-Life and Fresh Dairy Revenue in SAR Million Growth % of Total 3,000 2,719 2013 v 2014 Growth Fresh Dairy 120 38% 2,411 2,500 ( YoY +13%) Long-Life Dairy 43 14% ( YoY +17%) 2,000 Fruit Juice 34 11% ( YoY +12%) 1,500 Cheese & Butter 28 9% ( YoY +7%) Bakery 32 11% 1,000 (
Slide 8: Sales Analysis by Country
Sales Analysis by Country By Geography 2013 By Geography 2014 5% Q4% a tar 4% 5% K uwait 0.1 2% 5% 5% 5% 2% 0.1 2% Ba hrain3% E xport / Others 5% K uwait Ba hrain E gypt 0.1 2% E gypt 0.1 0.1 0.1 E xport / Others 0.0 Q a tar 9% O ma n 0.1 0.1 O ma n 0.1 2% 0.0 UAE Jor dan 0.1 10% 0.1 Jor dan 0.2 UAE
Slide 9: Sales Analysis by Country
Sales Analysis by Country Growth % of Total 2013 v 2014 Growth Revenue in SAR Million KSA 176 58% 3,000 ( YoY +11%) 2,719 UAE 34 11% 2,411 ( YoY +15%) 2,500 Oman 20 7% ( YoY +16%) 2,000 Kuwait 13 4% ( YoY +10%) Qatar 28 9% ( YoY +28%) 1,500 Egypt 20 6% ( YoY +19%) 1,000 Bahrain 7 2% ( Yoy +13%) Jord
Slide 10: Sales growth achieved via our expanding footprints across the region…
Sales growth achieved via our expanding footprints across the region… Almarai Company 2014 Q1 Earnings Presentation 10
Slide 11: … and resources across the globe…
… and resources across the globe… Milking Parlours Distribution Center Poultry Farming Manufacturing Plant Arable & Horticulture Farms Almarai Company 2014 Q1 Earnings Presentation 11
Slide 12: Financial Performance
NO an Ciclo Almarai a Financial Performance
Slide 13: Segment Reporting
Segment Reporting Almarai SAR Million Dairy & Juice Bakery Poultry Other Activities Consolidated Q 1 20 14 Sales 2,135.0 373.3 211.1 20.4 2,739.8 Third Party Sales 2,125.6 373.3 211.1 8.9 2,718.9 Depreciation (234.0) (33.7) (65.0) (22.3) (355.0) Income/(loss) before NCI 366.0 21.6 (133.0) 19.2 273.8
Slide 14: Statement of Income – Q1 2014
Statement of Income – Q1 2014 1st Quarter SAR million 2014 2013 Change Sales 2,718.9 2,411.0 12.8% Cost of sales (1,807.5) (1,583.2) 14.2% Gross Profit 911.4 827.8 10.1% Selling and Distribution Expenses (512.2) (450.1) 13.8% General and Administration Expenses (88.9) (76.8) 15.7% EBIT 310.4 300.8 3
Slide 15: Balance Sheet & Cash Flows
NO an CncloJl Almarai a Balance Sheet & Cash Flows
Slide 16: Cash Flow Bridge – Rolling 12 months
Cash Flow Bridge – Rolling 12 months 1,700 (1,312) (3,247) 3,021 Loans Equity Issues / Issued - Payments / Perpetual Charges Sukuk 1,794 (499) (297) Capex / 1,160 Operating Cash Biological Flow Dividend Assets Others Ca sh at 31 Ca sh at 31 M a r 2013 (SAR 634 m) M a r 2014 Almarai Company 2014 Q1 E
Slide 17: Capex spend in line with 5YP guidance…
Capex spend in line with 5YP guidance… Capex spend for first quarter 2014 was 0.9B 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. Poultry capex spend for the year reached ~ 0.1B SAR. The key highlight for
Slide 18: Balance Sheet
Balance Sheet Balance Sheet Analysis - Assets 2014 71% 21% 8% 2013 69% 23% 8% S AR M i l l i on 3 1 M ar 20 14 3 1 M ar 20 13 20 12 73% 18% 9% Net Operating Working Capital 1,660 1,373 20 11 72% 17% 11% Biological Assets 1,029 919 Fixed Assets Property, Plant and Equipment 15,585 13,845 2010 69% 17%
Slide 19: Net Debt
Net Debt 10 ,000 3 50 % 3 .1x 3 .0 x 9,0 00 3 .0 x 2.8x 3 0 0% 8,0 00 2.3 x 2.3 x 2.2x 250 % 7,0 00 SAR million 6,0 00 20 0 % 5,0 0 0 150 % 4,0 00 94% 98% 10 1% 3 ,0 00 74% 76% 77% 10 0 % 72% 2,0 00 50 % 1,0 00 3 ,3 98 3 ,869 4,60 6 6,653 8,23 7 8,161 8,590 0 0% 20 0 8 20 0 9 20 10 20 11 20 12 20 13
Slide 20: Debt Profile highlights balanced approach for funding….
Debt Profile highlights balanced approach for funding…. 2.3 , 24% 2.5 Debt Maturity by Age and Type 6.0 , 61% 2.0 Isl amic Bonds 1.4, 15% Govt / Semi Govt Inst. 1.5 Ban ks S AR Million 1.0 0 .5 0 .0 <1y r 1-2 y r 2-3 yr 3 -4 y r 4-5y r >5y r Almarai Company 2013 Q4 Earnings Presentation 20
Slide 21: Trend charts
NO an CncloJl Almarai — Trend charts
Slide 22: Quarterly Performance – Net Income
Quarterly Performance – Net Income 2014 versus 2013 450 400 350 * 300 Q1 = 7 .2% 475.6 250 SAR Million 450 .0 429.7 424.5 3 98.2 3 79.5 200 3 73 .3 3 69.0 3 63 .4 3 49.3 3 43 .1 293 .7 28 7.1 283 .5 28 5.5 150 273 .6 248.8 255.1 242.1 23 4.1 23 5.2 23 5.2 219.2 197.4 100 162.2 50 0 * Q4 income growt
Slide 23: Robust revenue growth with challenging – but anticipated – EBITDA & EBIT trend
Robust revenue growth with challenging – but anticipated – EBITDA & EBIT trend Revenue, EBITDA and EBIT Evolution 26.7% 27.2% 25.3% 25.6% 24.2% 24.2% 24.4% 11,527 21.8% 11,219 21.0% 21.1% 19.1% 9,883 SAR Million CAGR 2008 – 2014: 17.1% (w/o impact of acquisitions 11.6%) 16.9% 16.0% 15.7% Revenues 7,
Slide 24: Key Share Data
Key Share Data Key S tati sti cs for Al marai (3 0 M arch 20 14) Year t o date total shareholder's return 30% S h are P ri ce (S AR ) 64.75 si n ce listing C u rren t P /E R ati o (ttm) 20 .9 25% 21% 3 50 % Esti mated P /E(12/20 14) 21.0 Earn i n gs P er S h are (S AR ) (ttm) 2.5 2 0% M ark et C ap
Slide 25: 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 investor.relations@almarai.com