Obour Land For Food Industries · EGX:OLFI
Obour Land For Food Industries — Investor Presentation (March 2017)
29 slides from Obour Land For Food Industries's investor presentation, March 2017
Slide 1: Obour Land For Food Industries Investor Presentation
Obour Land For Food Industries Investor Presentation March 2017
Slide 2: Disclaimer
Disclaimer This presentation is being provided to you on a confidential basis and may not be distributed or reproduced in any form. This presentation is intended for information purposes only and does not constitute or form part of an offer for sale or subscription or an invitation or solicitation o
Slide 3: Table of Contents
Table of Contents I. Introduction to Obour Land II. Key Investment Highlights III. Appendix IV. Contact IR 3
Slide 4: I. Introduction to Obour Land
I. Introduction to Obour Land
Slide 5: Obour Land at a Glance
Obour Land at a Glance Group Overview Founded in 1997 by Eng. Mohamed Hamed Sherif (Executive Chairman) and Mr. Ashraf Mohamed Hamed Sherif (Vice Chairman and CEO), Obour Land For Food Industries S.A.E ("Obour Land" or the “Company”) is a leading white cheese producer, a traditional and Net Revenu
Slide 6: Corporate Evolution
Corporate Evolution Company Snapshot Corporate Evolution Sponsorship of the Egyptian Football Cup, one of the most viewed sports events in Egypt Sponsorship of the Egyptian Premier League Acquisition of the SAP ERP system to be implemented by 2017 Awarded ISO 14001 quality assurance certific
Slide 7: II. Key Investment Highlights
II. Key Investment Highlights
Slide 8: Key Investment Highlights
Key Investment Highlights 1 Strong Brand Equity Buoyed by a Developing and Vibrant High Quality Product Mix 2 Largest and Fastest Growing White Cheese Producer in Egypt 3 State-of-the-Art Facilities 4 Fully-Funded and Clearly Defined Expansion Plans to be Operational by Q2 2017 5 Strong Supply Chain
Slide 9: Strong Brand Equity Buoyed by a Developing and Vibrant High Quality Product Mix
1 Strong Brand Equity Buoyed by a Developing and Vibrant High Quality Product Mix Product Portfolio Synopsis Key Propositions Product Portfolio Iconic Staple Goods Brand Through its strong brand, Obour Land offers white 80g Feta 125g Feta 125g Olive 125g cheese, which is a Istanbully traditional sta
Slide 10: Largest and Fastest Growing White Cheese Producer in Egypt
2 Largest and Fastest Growing White Cheese Producer in Egypt The Company boasts a robust and efficient Region Population Size1 Carton Pack Value Market Share by Brand Based on Nielsen Retail Audit (%) Audited Revenues (EGP mn) distribution network with a wide 53% 56% 54% 47% 60% geographical cover
Slide 11: State-of-the-Art Facilities
3 State-of-the-Art Facilities State-of-the-art Facilities Production Facility Snapshot Accreditation Strategic Relationship with Tetra Pak Tetra Pak is the sole supplier of the Company’s Total Capacity 134.4 ktpa production lines since 2007 14000 Moreover, Tetra Pak provides the Company with a C
Slide 12: Fully-Funded and Clearly Defined Expansion Plans to be Operational by Q2 2017
4 Fully-Funded and Clearly Defined Expansion Plans to be Operational by Q2 2017 Fully-Owned Land Bank to White Cheese Mozzarella and Processed Cheese Juice & Milk Accommodate for Expansion Plans Obour Land plans to expand its existing In an effort to diversify its cheese Obour Land plans to le
Slide 13: Strong Supply Chain and Sales Network with Unmatched Reach
5 Strong Supply Chain and Sales Network with Unmatched Reach Obour Land’s Sales Breakdown by Channel Robust Distribution Platform management controls the pricing of its 100% Beheira products by: 3% 3% 5% 3% Kafr El Sheikh Dakahlia North Sinai Menoufia - Controlling 90% Qalyubia Sharkia Suez quanti
Slide 14: Large Network of Distributors Allowing Favorable Sales and Collections Terms
Large Network of Distributors Allowing the Company to Perform Its Sales and Collections 6 on Favorable Terms A Market Dominated by Small and Large Grocery Shops Where Obour Land Maintains a Leading Market Position… % of Total White 400+ Sales Channel Cheese Market1 Value Market Share by Brand Distri
Slide 15: Visionary and Cautious Management Team Implementing a Calculated Growth Strategy
7 Visionary and Cautious Management Team Implementing a Calculated Growth Strategy Management Team Mohamed Hamed Sherif Executive Chairman Ashraf Sherif Vice Chairman & CEO Ayman Sherif MD for Sales & Marketing Head of IR & Production Director Quality Control Director Engineering Director Finance Di
Slide 16: Highly Supportive Demographic Profile, Coupled with a Resilient and Rapidly Growing White Cheese Market
Highly Supportive Demographic Profile, Coupled with a Resilient and Rapidly Growing 8 White Cheese Market Population Breakdown by Expenditure Population in Perspective (mn) Egypt Population Age Brackets - 2014 Private Consumption (EGP bn) Brackets 100 3.5% 90 3.1% 2.9% ▲16% 2.8% 2.9% 90 78 3.0% 2.6%
Slide 17: Stellar Financial Performance With Minimal Leverage
9 Stellar Financial Performance With Minimal Leverage Strong and consistent Net Revenues1 (EGP mn) Gross Profit2, Margin (EGP mn, %) EBITDA, Margin (EGP mn, %) revenue growth, driven by the addition of four production lines in the period from 2013 to 2015 ▲40% ▲79% ▲86% with a total capacity of 1,
Slide 18: Well Defined Corporate Strategy
10 Well Defined Corporate Strategy An Attractive Opportunity For Investors Seeking Growth and Value 1. Optimization: Gradually increase prices (over Growth Avenues 2. Organic Growth in Existing Business Lines: 3. New Product Introductions: Expand into the processed cheese + Value Generation The
Slide 19: III. Appendix
III. Appendix
Slide 20: Income Statement Highlights
Income Statement Highlights Strong and consistent revenue growth Net Revenues1, Volume Sold (EGP mn, Tons 000’s) Gross Profit2, Margin (EGP mn, %) supported by the addition of four production lines in the period from 2013 to 2015, with a 39 66 87 97 65 74 total capacity of 40.3 ktpa in addition to
Slide 21: Revenue Build-up
Revenue Build-up Gross Revenue Build Up1 250gm 500gm 125gm 80gm3 Total Carton Pack Cheese Plastic Tubs 47.3 47.3 51.9 47.3 18.0 33.0 36.0 27.0 11.3 11.3 14.1 13.5 1.8 3.2 4.1 4.1 4.1 3.0 90.0 80% 78% 90% 80.0 68% 80% 104 Volume 85% 77% 85% 90% 22% 84% 73% 70.0 70% % 50% 88% 45.0 100% 75% 90% 25.0 10
Slide 22: COGS Build-up
COGS Build-up 1,200 COGS Breakdown (EGP mn) Raw material costs represent the biggest portion of COGS, contributing a steady Cost of Sales Breakdown (EGP mn)1 Raw Materials Breakdown (EGP mn) ~71.5% to sales with the exception of 1,000 2014 due to a hike in raw material prices 1,200 985 0 813 Key R
Slide 23: SG&A Analysis
SG&A Analysis S&M Breakdown1 (EGP mn, % of Sales) Selling and marketing (“S&M”) expenses have increased as a percentage of sales due to higher 3.7% 2.9% 4.0% 4.1% 6.5% advertising expenses by the company 80.0 which is apparent in its increased market campaigns especially the 70.0 4.5 sponsorship o
Slide 24: Working Capital Analysis
Working Capital Analysis The hike in 2015 inventory Assets levels was due to stocking up of raw materials taking Advance to Suppliers, DOH Pre-paid Expenses, DOH Inventory, DoH (EGP mn, Days) Receivables, DoH (EGP mn, Days) advantage of significantly (EGP mn, Days) (EGP mn, Days) lower prices of r
Slide 25: CAPEX Analysis
CAPEX Analysis 2013 CAPEX Breakdown (EGP mn) 2014 CAPEX Breakdown (EGP mn) 2015 CAPEX Breakdown (EGP mn) 86.0 87.6 90.00 38.8 40.0 80.00 50.00 40.00 70.00 23.3 37.4 45.00 35.00 60.00 40.00 30.00 35.00 50.00 25.00 30.00 40.00 20.00 25.00 0.6 30.00 20.00 12.2 1.3 15.00 15.00 20.00 10.00 10.00 5.00 5.0
Slide 26: Income Statement
Income Statement EGP 2013 2014 2015 9M 2015 9M 2016 Revenues 528,868,362 926,979,665 1,169,837,613 846,177,874 1,054,286,976 Cost of sales1 (467,487,279) (835,651,737) (985,062,271) (714,753,096) (827,319,660) Gross Profit 61,381,083 91,327,928 184,775,342 131,424,778 226,967,316 Gross Profit Margin
Slide 27: Balance Sheet
Balance Sheet EGP 2013 2014 2015 9M 2016 Fixed Assets 99,691,781 99,131,395 182,527,661 190,735,439 Projects Under Construction 8,691,932 40,886,437 34,865,836 100,181,733 Total Non-Current Assets 108,383,713 140,017,832 217,393,497 290,917,172 Inventories 74,722,292 55,982,298 131,297,821 250,124,0
Slide 28: IV. Contact IR
GD IV. Contact IR
Slide 29: Contact IR
Contact IR ir@obourland.com Headquarters Ahmed Nour El-Din Hassan Direct: +202 4881 2219 Obour City, 1st Industrial Zone Head of Investor Relations, Investments Block 13012 & Corporate Finance Mobile: +201 000 733337 Greater Cairo, Egypt Fax: +202 4881 2218 Visit our IR website: ir.obourland.com 29
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