Savola Group · TADAWUL:2050
Savola — Q3 2020 Earnings Presentation
26 slides from Savola's earnings presentation, 2020
Slide 1: Savola Group Earnings Presentation Q3 2020
Savola Group www.savola.com Earnings Presentation | Q3 2020
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: Key Highlights for Q3 2020
KEY HIGHLIGHTS FOR Q3 2020 SARmn (unless otherwise stated) Margin Net Debt to Liquid Investments Revenue* Gross Profit EBITDA Q3 2020 4,587 Q3 2020 1,064 23.2% Q3 2020 725 15.8% Q3 2019 5,148 (10.9%) Q3 2019 1,084 21.1% (1.8%) Q3 2019 724 14.1% 0.2% Income from associates Net Income Net Debt** Q3 20
Slide 4: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 Q3-19 Q3-20 YTD-19 YTD-20 +2% +14% +3% -11% 16,175 16,517 5,923 5,813 6,007 5,148 Sales 5,214 4,587 +8% +10% +15% -2% 3,313 3,566 Gross Profit 1,223 1,163 1,279 1,084 1,064 1,065 20.4% 20.6% 20.0% 21.3% 21.1% 23
Slide 5: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 Q3-19 Q3-20 YTD-19 YTD-20 +21% +31% +37% 0% 873 2,290 693 724 725 1,892 EBITDA 505 664 9.7% 11.7% 11.4% 14.5% 14.1% 15.8% 11.7% 13.9% +156% +272% +28% 866 Net Income 410 284 173 222 338 110 6 0.1% 2.9% 1.9% 6.8%
Slide 6: Group – Revenue Mix, Net Debt & Capex
GROUP – REVENUE MIX, NET DEBT & CAPEX SAR in millions Revenue by Business* Revenue by Geography YTD-19 YTD-20 YTD-19 YTD-20 6% 5% 11% 3% 3% 5% 11% 42% 38% 9% 10% 2% 49% 54% 75% 77% Food Processing Retail Food Services Frozen Food KSA Egypt Central Asia Others Net Debt and Net Debt to Liquid Investme
Slide 7: Implications of Exceptional Items
SAR in millions YTD 2019 1,892 Reported EBITDA Store Closure & 18 Project Write-off YTD-19 IFRS16 Net Impact (519) YTD 2019 1,391 Adjusted EBITDA YTD 2020 Adjusted EBITDA 2,290 Reported EBITDA IFRS16 Net Impact (527) YTD-20 YTD 2020 Adjusted EBITDA 1,763 IMPLICATIONS OF EXCEPTIONAL ITEMS YTD 2019 33
Slide 8: Panda Retail Company
JgbLa SAVOLA Panda Retail Company
Slide 9: Retail - Highlights
RETAIL - HIGHLIGHTS • In Q3 2020, our business witnessed a relatively flat top-line with a marginal decrease of Key Highlights 1% as consumers have stocked-up prior to the VAT increase in certain categories • Store count decreased to 205 stores by end of Q3, as we have converted one supermarket Stor
Slide 10: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 Q3-19 Q3-20 YTD-19 YTD-20 +12% +14% +24% -1% 8,098 9,089 3,099 3,042 3,463 2,559 2,527 Sales* 2,497 +20% +30% +27% +4% 2,156 814 612 637 1,792 Gross Profit 705 624 557 22.3% 22.8% 20.5% 23.5% 23.9% 25.2% 22.1% 23.7% *Revenu
Slide 11: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS Adjusted metric Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 Q3-19 Q3-20 YTD-19 YTD-20 240 378 231 225 844 EBITDA 66 117 238 118 432 474 135 49 30 53 (26) 2.6% NA 7.8% 3.8% 4.4% 1.0% 10.9% 6.9% 9.0% 1.9% 8.9% 4.7% 5.3% 0.7% 9.3% 5.2% Q1-19 Q1-20 Q2-19 Q2-20 Q3-19 Q3-2
Slide 12: Retail – Number of Stores
RETAIL – NUMBER OF STORES Super Hyper 146 145 (1)* 60 60 Jun Additions Closures Sep Jun Additions Closures Sep 2020 2020 2020 2020 Total Jun-20 Sep-20 Selling Area 206 Selling Area 205 630,275 m2 628,189 m2 (1)* Jun Additions Closures Sep 2020 2020 *a supermarket in Saudi Arabia was converted to a f
Slide 13: Savola Foods Company
gla SAVOLA Savola Foods Company ayac il Foods Jgbls SAVOLA 13
Slide 14: Foods - Highlights
FOODS - HIGHLIGHTS • Despite a challenging macroeconomic, currency and commodity environment Key Highlights impacting top-line across most segments, profitability remained resilient • Volumes slightly decreased by 3% to 2,405 KMT in YTD September 2020, driven Volume primarily by a 7% decline in suga
Slide 15: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 Q3-19 Q3-20 YTD-19 YTD-20 -8% +3% -5% -24% 2,350 6,943 6,358 2,408 2,476 2,230 2,185 Sales 1,653 -6% -16% +2% -6% 1,066 1,002 Gross Profit 367 375 382 359 318 268 15.2% 15.2% 16.2% 16.1% 14.5% 16.2% 15.4% 15.8% Note: numbers
Slide 16: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Adjusted metric Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 Q3-19 Q3-20 YTD-19 YTD-20 +5% +6% +3% +7% 589 620 EBITDA 215 228 167 172 207 221 8.6% 8.9% 9.2% 10.2% 7.6% 10.4% 8.5% 9.8% +81% +39% +39% +5% Net Income* 112 106 75 76 253 256 70 73 66 59 55 185 4.7% 2.9% 3.0
Slide 17: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues YTD-19 YTD-20 YTD-19 YTD-20 0% 1,165 4,447 -10% 1,160 6% 6% 6% Morocco +4% 3% 4% 4,008 Morocco +4% 6% Sudan +60% 7% Sudan +16% 12% 12% 11% 5% Algeria -4% Algeria -13% Turkey -11% 11% 11% Turkey -14% 10% 13% Central Asia -8% Centr
Slide 18: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues YTD-19 YTD-20 YTD-19 YTD-20 -7% -10% 1,068 1,964 Egypt -35% 988 Egypt -29% 15% 16% 1,772 KSA -3% 10% KSA -6% 13% 85% 90% 84% 87% Note: Sugar volumes and revenues include only the contribution from our consolidated sugar operati
Slide 19: Al Kabeer Group of Companies
Al Kabeer Group of Companies 19
Slide 20: Frozen Food - Highlights
FROZEN FOOD - HIGHLIGHTS • Demand for frozen food continued to show a healthy trend during Q3 2020, with Key Highlights topline increasing by 27%, as consumers still showed preference for in-house dining and general preference for longer life products • Revenues increased by 29% reaching SAR 584 mn
Slide 21: Frozen Food – Al Kabeer Financial Highlights
FROZEN FOOD – AL KABEER FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 Q3-19 Q3-20 YTD-19 YTD-20 +16% +29% +49% +27% 211 584 192 182 181 453 Sales 129 142 +41% +38% +51% +38% 228 96 66 161 Gross Profit 66 70 48 44 37.3% 34.5% 38.3% 45.3% 30.7% 36.5% 35.6% 39.0% Note: Revenues fr
Slide 22: Frozen Food – Al Kabeer Financial Highlights
FROZEN FOOD – AL KABEER FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 Q3-19 Q3-20 YTD-19 YTD-20 +96% +62% +77% +12% 52 108 EBITDA 29 26 67 23 27 17 18.2% 13.6% 14.7% 24.8% 11.7% 16.3% 14.7% 18.5% +64% +108% +68% +12% 83 42 20 Net Income 20 50 18 20 12 14.0% 10.5% 11.2% 20.0% 8.
Slide 23: Financial Summary
gla SAVOLA Financial Summary 23
Slide 24: Financials – YTD September 2020
FINANCIALS – YTD September 2020 (all figures are in SAR millions) Segment Wise Financials YTD September 2020 YTD September 2019 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Food* Oil-Mature Markets 3,075 594 285 171 352 3,486 613 214 125 279 Oil-Start-up Ma
Slide 25: 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/ 25
Slide 26: Thank you
JQGoOla SAVOLA Thank you vola.com 26