Almarai Company · TADAWUL:2280
Almarai — Q1 2015 Earnings Presentation
24 slides from Almarai's earnings presentation, Mar 31, 2015
Slide 1: Interim results – Quarter ended 31 March 2015
Interim results – Quarter ended 31 March 2015 Solid performance paving the way for strategic execution
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
Sa incl ol Almarai ee ee Business Highlights
Slide 4: Highlights – Q1, 2015
Highlights – Q1, 2015 Financial Highlights Sales 2013 Revenue +12.4% EBITDA Net Income SAR 11.2 B 2015 2015 2015 SAR 3.0 B SAR 0.6 B SAR 0.3 B 2014 2014 SAR 2.7 B +11.7% 2014 SAR 0.6 B +8.0% SAR 0.3 B +12.0% Other Highlights Employees Capital Expenditure Operating Cash Flow 2015 2015 2015 39 K SAR 0
Slide 5: Sales Highlights
Sa incl ol Almarai ——~__— Sales Highlights
Slide 6: Growth % driven by Poultry, Juice & Long-Life – 3 Months
Growth % driven by Poultry, Juice & Long-Life – 3 Months Revenue in SAR Million Growth % of Total 3,500 2015 v 2014 Growth 3,037 Fresh Dairy 119 37% ( YoY +11%) 3,000 2,719 Poultry 98 31% ( YoY +46%) 2,500 39% Fruit Juice 70 22% 39% ( YoY +22%) 2,000 Long Life 39 12% ( YoY +13%) 14% 1,500 15% Cheese
Slide 7: Sales Analysis by Country – 3 Months
Sales Analysis by Country – 3 Months Growth % of Total Revenue in SAR Million 2015 v 2014 Growth 3,500 KSA 185 58% ( YoY +11%) 3,037 Egypt 60 19% 3,000 ( YoY +48%) 2,719 UAE 42 13% ( YoY +16%) 2,500 Qatar 23 7% ( YoY +18%) 2,000 Kuwait 13 4% 64% ( YoY +10%) 64% Bahrain 5 2% 1,500 ( Yoy +10%) Oman 3
Slide 8: Financial Performance
Sa incl ol Almarai ee ee Financial Performance
Slide 9: Strong pipeline of innovation continues in 2015
Strong pipeline of innovation continues in 2015 Almarai Company 2015 Q1 Earnings Presentation 9
Slide 10: Operating Performance
Q1 2015 Results Operating Performance Sales of SAR 3,037 million Gross Profit 33.8% 36.6% (2014: SAR 2,719 million) 378 Gross profit of 36.6%, up from 33.8%, driven by solid sales growth from poultry, juice expansion in gulf and Egypt and core Operating Income dairy operations. (in million SAR) Oper
Slide 11: Financing cost & other financing expenses
Q1 2015 Results Financing cost & other financing expenses Financing Cost Exchange gain (net) (in million SAR) (in million SAR) 16 62 56 3 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Financing costs of SAR 62 million are 6M SAR Exchange gain of SAR 16 million is 13M SAR higher than last year (2014: SAR 56M) due
Slide 12: Net Income: increasing by 12% as a result of continued strong performance
Q1 2015 Results Net Income: increasing by 12% as a result of continued strong performance Net income % 10.1% 10.1% Other income & expenses at (7M) SAR is 25M SAR adverse than last year due to a 307 one off gain of 20M SAR on purchase of infant nutrition business in Q1, 2014 Zakat & income tax expens
Slide 13: Statement of Income – 3 Months
Statement of Income – 3 Months 1st Quarter SAR million 2015 2014 Change Sales 3,037.3 2,718.9 11.7% Cost of sales (1,927.0) (1,800.0) 7.1% Gross Profit 1,110.3 919.0 20.8% Selling and Distribution Expenses (623.0) (512.2) 21.6% General and Administration Expenses (109.3) (93.5) 16.8% Operating Incom
Slide 14: Segment Reporting
Segment Reporting D ai ry & O ther Al marai S AR M i l l i on Bakery P oul try Jui ce Acti vi ti es C onsol i dated Q 1 20 15 Sales 2,361.5 355.5 309.0 35.8 3,061.8 Third Party Sales 2,353.4 355.5 309.0 19.4 3,037.3 Depreciation (241.8) (37.7) (68.3) (20.3) (368.1) Income/(loss) before NCI 390.2 26.
Slide 15: Investments & Cash Flows
Sa CncloJl Almarai ee ee Investments & Cash Flows
Slide 16: Cash Flow Bridge – Rolling 12 Months
Cash Flow Bridge – Rolling 12 Months 3,571 (390) (3,191) Loans Issues / Payments / Charges 1,160 (598) Operating Cash Capex / 179 732 Flow Biological Assets Dividend Others Ca sh at 31 Ca sh at 31 M a rch 2014 (SAR 428 m) M a rch 2015 Almarai Company 2015 Q1 Earnings Presentation 16
Slide 17: Capex spend in line with the 5 year plan capex guidance
Capex spend in line with the 5 year plan capex guidance Capex spend for the first quarter of 2015 was 0.9B SAR which is slightly higher than our annual run rate of 3.0 to 3.2B SAR, but still within our total 5 year plan capex guidance of 15.7B. • Manufacturing and Farming spent Capex of ~0.4B SAR
Slide 18: Net Debt
Net Debt 10,000 350% 3 .1x 9,000 3 .0 x 2.9x 2.8x 2.8x 300% 8,000 7,000 2.3 x 2.2x 250% SAR million 6,000 200% 5,000 150% 4,000 98% 10 1% 3,000 74% 75% 75% 75% 100% 72% 2,000 50% 1,000 3 ,869 4,60 6 6,653 8,23 7 8,0 53 8,762 8,800 0 0% 2009 2010 2011 2012 2013 2014 Last 12 Months Net Debt Net Debt /
Slide 19: Deferred maturity profile of debt, along with diversification of funding source
Deferred maturity profile of debt, along with diversification of funding source……… 2.5 Debt Maturity by Age and Type 2 Islamic Bonds 2.0 Govt / Semi Govt Inst. 24% Banks 1.5 SAR Billion 1 6 1.0 14% 62% 0.5 0.0 <1yr 1-2 yr 2-3yr 3-4 yr 4-5yr >5yr 10 100% 2 23 % 24% 25% 8 2 2 80% 2 15% 15% 14% 1 1 6 6
Slide 20: Trend charts
Sa incl,oJl Almarai ee a Trend charts
Slide 21: Quarterly Performance – Net Income
SAR Million 500 200 400 0 600 100 300 162.2 197.4 Almarai Company 23 4.1 23 5.2 242.1 255.1 273 .6 3 0 6.5 Q1 = 12.0% 23 5.2 287.1 3 43 .1 3 49.3 3 79.5 3 98.2 43 3 .3 2015 versus 2014 293 .7 2015 Q1 Earnings Presentation 3 63 .4 424.5 429.7 450 .0 Quarterly Performance – Net Income 475.6 53 9.4 219
Slide 22: EBIT growth is starting to stabilize and is expected to improve further
EBIT growth is starting to stabilize and is expected to improve further in the coming quarters…. Revenue, EBITDA and EBIT Evolution CAGR 2009 – 2015: 16.2% (w/o impact of acquisitions 11.1%) 26.7% 27.2% 12,924 25.6% 12,606 24.2% 24.4% 23.5% 11,219 23.4% 21.8% 21.1% 19.1% 9,883 SAR Million Revenues 1
Slide 23: Key Share Data
Key Share Data Key S tati sti cs for Al marai (3 1 M arch 20 15) Year t o date total shareholder's return since l i sting S h are P ri ce (S AR ) 87.0 1 30% C u rren t P /E R ati o (ttm) 3 1.9 22% 25% Esti mated P /E(12/20 14) 25.8 Earn i n gs P er S h are (S AR ) (ttm) 2.7 20% M ark et C ap (M S AR
Slide 24: 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