Slide 1: Analysts & Investors Call Q4/FY'21 Results
Analysts & Investors Call Q4/FY’21 Results 9 March 2022
Slide 2: Agenda
Agenda 2025 Strategy Update Business Performance Financial Performance Q&A Appendix 2
Slide 3: Disclaimer
Disclaimer Agthia Group PJSC and its management may make certain statements that constitute “forward-looking statements” with respect to the financial condition, results of operations and business of the Group. These statements can be identified by the fact that they do not relate strictly to histor
Slide 4: 2025 Strategy Update
2025 Strategy Update 4
Slide 5: Delivering on our Strategy pillars
Delivering on our Strategy pillars GROWTH EFFICIENCY CAPABILITY Q4’21 highlights Q4’21 highlights Q4’21 highlights • Consolidated BMB (snacking) on Dec. 31st • Recognized AED 36 MN in cost savings • Continue capitalizing on Route-To-Market • Top-line doubled vs Q4’20 • Agile productivity set-up with
Slide 6: Integration Framework
Integration Framework • The Group’s dedicated transformation office formulated “Integration Framework and Playbook” focused on: Seamless Transition Productivity Value Creation • While integration is a continuous journey, outlined below transformation progress throughout 2021: Al Foah: Al Faysal: BMB
Slide 7: Business Performance
Business Performance 7
Slide 8: FY'21 Performance by Segment
FY’21 Performance by Segment FY’21 vs FY’20 Revenues1 Growth by Segment (y-o-y) 3579% 30% 31% Inner Ring FY’20 revenues of /// AED 2.06bn 45% 48% 433% Outer Ring FY’21 revenues of AED 3.07bn (+49% y-o-y) /// 49% 1% 6% 18% 21% -5% 0% Water & Food Protein & Frozen Veg Water & Protein & Snacking AgriBu
Slide 9: Water & Food
Water & Food Volume1 by category Water & Food (31% of 2021 revenues) 112 118 UAE Water /// • HOD: volumes up with favourable mix management 77 77 • BW: flat sales impacted by weak sales in Q1’21 which 26 32 lagged a strong pre-COVID Q1’20. In Q2 onwards /// 4 4 3 3 sales improved versus last year dr
Slide 10: UAE Water Update
UAE Water Update Retail growth inline with category while Food Service Channel growing at double digit Retail channel (Modern Trade, Traditional Trade, Convenience stores): • Overall Category came in flat vs. last year that was severely impacted by COVID-19: 2021 Value flat y-o-y vs. Volume +2% on p
Slide 11: Protein & Frozen Vegetables
Protein & Frozen Vegetables Volume by category (‘000 tons) 61 Protein & Frozen Veg (21% of 2021 revenues) Protein • Nabil: consolidation since April 1 added AED 304MN 28 26 28 to top-line 17 18 • Atyab: consolidation since Aug. 1 added AED 230MN to top-line, creating fully-focused protein business -
Slide 12: Protein - Pre & Post Acquisition Performance
Protein - Pre & Post Acquisition Performance Nabil1 Atyab1 AED’MN AED’MN +8% 304 +29% 230 30 15% 13% 281 10% 178 9% 26 28 27 20% NCI 25% NCI 2020 2021 2020 2021 2020 2021 2020 2021 Revenues Net profit NPM (%) Revenues Net profit NPM (%) • Higher Revenues versus last year despite continued • Higher r
Slide 13: Snacking
Snacking Volume by category (‘000 tons) 113 Snacking (18% of 2021 revenues) 107 Dates • Al Foah: consolidation since Jan. 1 added AED 446MN to top-line 5 Bakery - 1 1 • Kuwait: Al Faysal consolidation since Jan. 27 added AED 92MN to top-line Dates (Al Foah) Bakery UAE + Kuwait Total Snacking • UAE:
Slide 14: Snacking - Pre & Post Acquisition Performance
Snacking - Pre & Post Acquisition Performance Al Foah1 Al Faysal1 AED’MN AED’MN 438 +2% 446 92 21% 17% 87 +5% 10% 77 12% 19 42 10 2020 2021 2020 2021 2020 2021 2020 2021 Revenues Net profit NPM (%) Revenues Net profit NPM (%) • Slightly higher revenues on higher volumes as we • Higher revenues suppo
Slide 15: Agribusiness
Agribusiness Volume by category (‘000 tons) Agribusiness (30% of 2021 revenues) 764 679 Flour • Lagging last year sales which was driven by World 453 438 Food Program order and wheat trading 311 • Favourable mix with higher pricing significantly 241 reducing the impact of increased raw material / fr
Slide 16: Financial Performance
Financial Performance 16
Slide 17: Group P&L highlights
Group P&L highlights +99% 954 +49% 3,068 Revenues 2,061 Revenues 479 • Sustainable leadership position across key (AED MN) categories • Growth largely driven by the consolidation of Al Q4'20 Q4'21 FY'20 FY'21 Foah, Al Faysal, Nabil & Atyab 35% 333 641 957 Gross Profit Gross Profit 33% 157 31% 31% •
Slide 18: Profitability metrics
Profitability metrics1 +391bps Profitability margins 16.1% EBITDAm 12.2% • On normalized basis, EBITDA margin enhanced normalized by 391bps y-o-y driven by: ✓ consolidation of 4 margin accretive entities FY'20 FY'21 ✓ cost optimization via integration & productivity enhancements +269bps × higher raw
Slide 19: Top line reconciliation
Top line reconciliation Group revenues (AED MN) 3,068 2,061 (63) (7) 1,996 1,072 (32) 37 FY'20 WFP flour order & UAE Water Lower Beverage Others FY'21 Agthia Inorganic growth* FY'21 Agthia grain trading sales Standalone Consolidated Higher base in Discontinuation of Organic growth Al Foah (Jan 1) H1
Slide 20: Bottom line reconciliation
Bottom line reconciliation Group net profit (AED MN) 216 (2) (4) (1) 117 (41) 140 34.5 89 FY'20 One-offs in 2020 UAE Water & Bev Higher grain cost, Others FY'21 Agthia M&A & Newly acquired FY'21 Agthia net of pricing Standalone Transformation companies* Consolidated associated fees AED 82MN Interven
Slide 21: Inorganic growth
Inorganic growth Group revenues (AED MN) Group net profit (AED MN) 3,068 230 304 22 92 (41) 216 22 19 1,996 446 117 77 FY'21 Agthia Al Foah Al Faysal Nabil Atyab FY'21 Agthia FY'21 Agthia Al Foah Al Faysal Nabil Atyab M&A FY'21 Agthia Standalone consolidated Standalone associated consolidated fees 1
Slide 22: Resilient cash flow generation
Resilient cash flow generation 34% 1,107 Operating Cash Flow 704 Net Working Capital1 30% • Robust liquidity position (AED MN) • Focus on WC overhaul (WC% proforma sales improved by 441bps y-o-y) FY'20 FY'21 • Better Cash flow conversion cycle by 15 days versus 498 last year 304 Operating Cash Flow
Slide 23: Robust balance sheet
Robust balance sheet Borrowings Cash & Equivalents Borrowings AED 2.1 BN AED 1.1 BN • Higher borrowings versus last year mainly from minus raising new debt to fund Al Faysal, Nabil, Atyab and BMB acquisitions +284% vs. FY 2020 +45% vs. FY 2020 Net Debt / EBITDA equal • Balance sheet remains robust w
Slide 24: Dividends
Dividends Dividends per Share Semi-Annual Dividends Policy AED Dividend payout ratio1 • Agthia recently adopted a semi-annual dividend policy, in-line with our commitment 32% 35% 44% 43% 66% 102% 58% to maximizing shareholders’ returns 0.165 0.165 0.15 0.15 0.15 0.15 0.125 • On Sept. 27, 2021, share
Slide 25: Q&A
Q&A 25
Slide 26: Appendix
Appendix 26
Slide 27: Strategy Re-Cap: Our Long-Term Ambition
Strategy Re-Cap : Our Long-Term Ambition From… To… UAE centric Footprint MENAP & beyond Becoming a regional F&B Commoditized portfolio Value-add F&B brands leader by 2025 Stable financial performance Superior shareholder returns Local organization mindset Consumer-centric & performance-driven Three
Slide 28: Summary of Acquisitions
Summary of Acquisitions Announcement OCT 2020 DEC 2020 JAN 2021 APR 2021 AUG 2021 100% 100% 80% 75% 100% Consolidation Jan 1, 2021 Jan 27, 2021 April 1, 2021 Aug 1, 2021 Dec 31,2021 Segment Snacking Snacking Protein Protein Snacking Footprint Int’l (GCC & Asia) Kuwait Jordan, GCC, Iraq Egypt KSA, UA
Slide 29: Agthia's Categories of Focus
Agthia’s Categories of Focus Category Water & Food Agribusiness Protein & Frozen Veg. Snacking Assets Key markets 29
Slide 30: Sustainability Highlights: packaging initiatives
Sustainability Highlights: packaging initiatives Implemented projects related to cartons/secondary packaging from 100% recycled paper that resulted in: 15% 7,500 750mt Reduction Fully Grown Trees Paper Waste Saved In Weight Saved from being cut Equivalent to 100 fully loaded trailers Implemented pla
Slide 31: Investor Relations Department
Investor Relations Department March 2022