Slide 1: Earnings Presentation FY2023
Savola Group www.savola.com Earnings Presentation | FY2023
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: FY 2023 Performance Overview; Rights Issue and Distribution
1. FY 2023 Performance Overview 2. Savola Group Rights Issue and Distribution – Transaction Overview 3
Slide 4: Savola Group – FY 2023 Highlights
Savola Group – FY 2023 Highlights Solid Group Performance Continues Healthy Group For FY 2023, Savola Group reported overall healthy performance driven by turnaround in Panda’s results Performance and strong performance of Savola Foods Panda’s FY 2023 positive net income compared to losses last year
Slide 5: Savola Group – Consolidated Financial Highlights
Savola Group – Consolidated Financial Highlights Margin SAR in mn Q1-22 Q1-23 Q2-22 Q2-23 Q3-22 Q3-23 Q4-22 Q4-23 FY-22 FY-23 +4% -4% -12% -10% 0% 28,055 7,489 7,814 6,888 7,072 Revenue 6,093 6,351 6,605 6,583 26,842 +12% +17% +16% +14% 0% 4,874 5,440 1,502 1,381 1,285 1,248 1,247 1,149 1,310 1,192
Slide 6: Savola Group – Consolidated Financial Highlights
Savola Group – Consolidated Financial Highlights Margin SAR in mn Q1-22 Q1-23 Q2-22 Q2-23 Q3-22 Q3-23 Q4-22 Q4-23 FY-22 FY-23 +23% +29% +80% +10% -5% 2,666 3,284 996 829 EBITDA 772 751 710 682 749 462 10.3% 12.7% 10.9% 11.7% 9.6% 11.8% 7.0% 12.6% 9.5% 12.2% +21% +45% +140% -38% -10% 743 899 393 Net
Slide 7: Savola Group – FY 2023 Revenue & Net Income Bridge By Business
Savola Group – FY 2023 Revenue & Net Income Bridge By Business Revenue Bridge by Business Net Income Bridge by Business SAR in mn SAR in mn -4% 28,055 +21% (1,352) 26,842 79 -7% 44 (70) (52) 8 9 (192) 217 899 205 (59) 840 743 47 648 95 FY 2022 SFC Panda Herfy Others / FY 2023 FY 2022 One-Off FY 2022
Slide 8: Savola Group – Revenue Mix, Net Debt & Capex
Savola Group – Revenue Mix, Net Debt & Capex SAR in mn Revenue by Business1 Revenue by Geography FY-22 FY-23 FY-22 FY-23 4% 4% 11% 7% 2% 3% 9% 9% 36% 38% 16% 58% 55% 14% 66% 68% Savola Foods Panda Herfy Al Kabeer Arabia Egypt Central Asia Others3 YoY Growth -8% +2% -6% +7% -1.0% +8.6% -0.3% -43.4% L
Slide 9: Savola Foods Company
UgOLA SAVOLA Savola Foods Company + f quac il Foods —Yy, gots
Slide 10: Savola Foods – FY 2023
Savola Foods – FY 2023 Strong For FY 2023, Savola Foods delivered strong performance in both its core markets of Arabia and Performance Egypt Revenue in FY 2023 declined by 8% in FY 2023 compared to LY mainly due to drop in crude edible Revenue oil prices, lower volume in sugar segment and some oil
Slide 11: Savola Foods – Consolidated Financial Highlights
Savola Foods – Consolidated Financial Highlights Margin SAR in mn Q1-22 Q1-23 Q2-22 Q2-23 Q3-22 Q3-23 Q4-22 Q4-23 FY-22 FY-23 -8% +2% -18% -17% +1% 16,441 4,328 4,398 4,069 4,300 3,744 3,777 Revenue 3,397 3,516 15,089 +19% +36% -10% +42% +13% 1,986 2,356 747 549 561 504 544 562 Gross Profit 481 395
Slide 12: Savola Foods – Consolidated Financial Highlights
Savola Foods – Consolidated Financial Highlights Margin SAR in mn Q1-22 Q1-23 Q2-22 Q2-23 Q3-22 Q3-23 Q4-22 Q4-23 FY-22 FY-23 +21% +55% +85% -23% -3% 1,240 1,506 532 383 EBITDA 343 377 313 303 289 207 7.9% 12.1% 9.3% 8.5% 7.3% 8.6% 5.5% 10.1% 7.5% 10.0% +12% +81% 405 452 -59% -26% 258 +84% Net Incom
Slide 13: Oil, Sugar and Pasta categories saw several B2C innovations in 2023
Oil, Sugar and Pasta categories saw several B2C innovations in 2023 AFIA Canola YUDUM YUDUM Frying Hand Painted Olive Oil Glass Bottles AFIA Olive Oil (UAE) Turmeric Immunity support Improved Pack & Formula (Turkey) (Algeria) (Turkey) (Turkey) Ganna Mix Ganna New Zealand New Maleka Range Italiano Im
Slide 14: Savola Foods – Oil Segment Analysis
Savola Foods – Oil Segment Analysis SAR in mn Volume (MT ‘000) Revenues Gross Profit EBITDA Net Income -12% 11,421 10,015 0% +15% 3,901 1,625 1,716 1,724 3,360 -14% 1,418 +15% 639 +31% 1,020 509 520 +2% 489 890 410 +42% 290 7,520 6,655 +10% 1,207 356 -12% 323 0% 929 986 +6% 600 610 +2% 190 287 +51%
Slide 15: Savola Foods – Sugar Segment Analysis
Savola Foods – Sugar Segment Analysis SAR in mn Volume (MT ‘000) Revenues Gross Profit EBITDA Net Income +12% 3,602 1,358 -6% 3,226 2,958 +7% 1,281 +44% 447 1,182 2,757 +46% 382 -7% 311 1,102 211 +10% 263 169 +17% 193 +146% 645 +37% 144 126 176 179 +2% 470 31 236 +100% 214 +80% 51 -29% 118 119 95 12
Slide 16: Nuts, Spices & Pulses categories continue to innovate and expand
Nuts, Spices & Pulses categories under “Bayara” and “Afia” brands continue to innovate and expand “Bayara World”, Bayara’s retail boutique, Range of Energy Bars launched in 2023 Nuts, Spices, Pulses range launched in UAE in 2023 strengthened in KSA under “Afia” brand name 16
Slide 17: Savola Foods – Nuts, Spices And Pulses Segment Analysis
Savola Foods – Nuts, Spices And Pulses Segment Analysis SAR in mn Revenues Gross Profit EBITDA Net Income +9% 449 411 +33% 151 +49% 77 114 UAE 52 +75% 58 33 +74% 75 KSA 43 +11% (Relaunch 7 -18 6 -22 Segment) -38 NM -45 NM FY-22 FY-23 FY-22 FY-23 FY-22 FY-23 FY-22 FY-23 Bayara UAE demonstrated strong
Slide 18: Panda Retail Company
Panda Retail Company UgOLA SAVOLA — 18
Slide 19: Panda – FY 2023
Panda – FY 2023 Strong Performance Panda’s consolidated revenue reached SAR 10.3bn in FY 2023, higher than LY by 2% which is mainly Strong Revenue and driven by better performance of CXR stores. LFL Growth KSA LFL revenue increased by 5.3% in FY 2023 mainly driven by increase in customer count Gross
Slide 20: Panda – Consolidated Financial Highlights
Panda – Consolidated Financial Highlights Margin SAR in mn Q1-22 Q1-23 Q2-22 Q2-23 Q3-22 Q3-23 Q4-22 Q4-23 FY-22 FY-23 +11% +2% +3% -1% -5% 10,114 10,331 2,806 3,118 2,470 2,436 Revenue 2,431 2,298 2,407 2,479 +9% +14% +8% +6% +8% 2,341 2,558 629 615 638 625 676 Gross Profit 591 567 558 21.1% 20.0%
Slide 21: Panda – Consolidated Financial Highlights
Panda – Consolidated Financial Highlights Margin SAR in mn Q1-22 Q1-23 Q2-22 Q2-23 Q3-22 Q3-23 Q4-22 Q4-23 FY-22 FY-23 +60% +88% +28% +69% +65% 482 774 233 EBITDA 185 173 183 144 124 108 105 5.1% 5.9% 4.3% 7.5% 5.2% 9.4% 4.4% 7.5% 4.8% 7.5% 47 +379% (14) (22) 15 (35) (158) Net Income (72) (66) 69 14
Slide 22: Panda – Number of Stores
Panda – Number of Stores Super Hyper 126 6 -1 131 61 1 0 62 Sep-23 Additions Closures Dec-23 Sep-23 Additions Closures Dec-23 Total Sep-23 Dec-23 Net Selling Area Net Selling Area 527.3k m2* 537.7k m2 187 7 -1 193 Sep-23 Additions Closures Dec-23 Note: 188 Stores KSA and 5 in Egypt September 2023 se
Slide 23: Al Kabeer
Al Kabeer =—Yy (ues Al Kabeer
Slide 24: Al Kabeer – FY 2023
Al Kabeer – FY 2023 During FY 2023, Al Kabeer revenue increased by 7% compared to LY primarily driven by growth in volume and better pricing in some of its key categories. Both its core markets of KSA and UAE witnessed growth Revenue Growth led by better performance in modern trade and HORECA channe
Slide 25: Al Kabeer – Consolidated Financial Highlights
Al Kabeer – Consolidated Financial Highlights Margin SAR in mn Q1-22 Q1-23 Q2-22 Q2-23 Q3-22 Q3-23 Q4-22 Q4-23 FY-22 FY-23 +15% +6% +7% 0% +5% 211 670 714 184 165 164 167 177 Revenue 153 161 +18% +19% +42% +4% +8% 211 249 Gross Profit 66 78 69 52 54 44 48 48 35.5% 36.8% 31.7% 32.9% 29.0% 29.9% 28.9%
Slide 26: Al Kabeer – Consolidated Financial Highlights
Al Kabeer – Consolidated Financial Highlights Margin SAR in mn Q1-22 Q1-23 Q2-22 Q2-23 Q3-22 Q3-23 Q4-22 Q4-23 FY-22 FY-23 +1% +2% -23% +35% -6% 89 32 32 88 EBITDA 22 27 17 14 13 20 17.3% 15.3% 13.2% 10.2% 9.3% 8.3% 11.8% 15.0% 13.1% 12.5% +13% +86% +12% -37% -30% 62 70 26 29 Net Income 23 15 10 8 1
Slide 27: Al Kabeer Revamping Activities
Al Kabeer Revamping Activities Riyadh Boulevard - New Logo Launch in Nov 2023 Consumer Engagement Activities through out the year Old Logo New Logo New New Logo Product Launch and New Packaging Zing Chicken Strips Stuffed Felafel Zing Chicken Fillets Siracha Flavor Non-Spicy 27
Slide 28: Focus Areas - 2024
UgOLA SAVOLA Focus Areas - 2024 + f =—Yy 28
Slide 29: Key Focus Areas in 2024
Key Focus Areas in 2024 Food Retail Frozen Food Processing ▪ Maintain leadership in core categories ▪ Expect the completion of 28 additional ▪ Focus on new product launches and (edible oil and sugar); “Afia” brand stores under CXR wave 4 innovation led growth. Leverage modernization from rebranding
Slide 30: Financial Summary
JgbLa SAVOLA Financial Summary 30
Slide 31: Financials Summary – FY 2023
Financials Summary – FY 2023 (All figures are in SAR mn) 1 Segment Wise Financials FY 2023 FY 2022 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Savola Foods Oil 2 Arabia 3,360 639 354 287 410 3,901 489 231 190 290 Other Markets3 6,773 1,006 524 79 * * 625 8
Slide 32: FY 2023 Performance Overview; Rights Issue and Distribution
1. FY 2023 Performance Overview 2. Savola Group Rights Issue and Distribution – Transaction Overview 32
Slide 33: Disclaimer
Disclaimer This presentation has been prepared solely for use as an investor presentation for the Savola Group Company ("Savola"). 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 purpos
Slide 34: The Transaction Summary
The Transaction Summary 01 02 03 04 SAR 6.0bn Rights Issue Utilize Rights Issue Share Capital Reduction Distribution of Savola’s proceeds to pay down to facilitate the entire 34.52% Debt and to strengthen Distribution-in-kind of shareholding in Almarai Savola’s financial Almarai shares to eligible S
Slide 35: Why? – A Compelling Rationale Behind Proposed Transaction
Why? – A Compelling Rationale Behind Proposed Transaction Unlocking Value Unlock value for Savola’s shareholders - Almarai distribution and rights issue is for Savola shareholders to gain direct exposure to growth potential of both companies Strengthen Financial Position Leverage proceeds from right
Slide 36: Why? – Trapped Equity Value With Potential to Unlock for Our Shareholders
Why? – Trapped Equity Value With Potential to Unlock for Our Shareholders Historically, the market capitalization of Savola has closely tracked the market value of Savola’s stake in Almarai Market capitalization of Savola vs. Market value of Savola’s stake in Almarai (last 5 years) Average (SARbn) 5
Slide 37: How? – The Transaction Has Four Interlinked Components
How? – The Transaction Has Four Interlinked Components • Savola will distribute its entire 34.52% shareholding in Almarai to eligible shareholders, aiming to unlock value for Savola’s shareholders • Distribution will be preceded by a SAR 6.0 billion rights issue, strengthening Savola’s financial pos
Slide 38: How? – Proceeds From The Rights Issue Will Enable The Full Distribution of Almarai
How? – Proceeds From The Rights Issue Will Enable The Full Distribution of Almarai The example below is not made at scale. This is subject to the CMA, EGM and any other regulatory approvals and is subject to change. Impact on Savola’s Shareholders’ Equity Pre Transaction Proceeds from Rights Issue D
Slide 39: The Proposed Transaction Is Intended To Unlock The Value For Savola's Shareholders
The Proposed Transaction Is Intended To Unlock The Value For Savola’s Shareholders Almarai distribution and the preceding rights issue is an opportunity for Savola’s shareholders to gain direct exposure to growth potential of both the companies Pre transaction: Savola shareholder has direct stake in
Slide 40: Savola Group Holdings – Leading Food and Retail Businesses
Savola Group Holdings – Leading Food and Retail Businesses Post transaction, Savola will continue to own and operate leading food and retail businesses in the MENAT region FY 23 Financial Company Vertical Description Strategic Direction Ownership Performance ▪ MENAT region’s largest basic food ▪ Rev
Slide 41: Investor Relations
Investor Relations Refer to the below link for details on Rights Issue and Distribution Savola Group | Rights Issue and Distribution | Overview Investor Relations Email Communications ir@savola.com 41
Slide 42: Thank you
Jgola SAVOLA Thank you vola.com 42