Obour Land For Food Industries · EGX:OLFI
Obour Land For Food Industries — IPO Roadshow (November 2016)
32 slides from Obour Land For Food Industries's IPO roadshow presentation, November 2016
Slide 1: Obour Land For Food Industries IPO Roadshow Presentation
Strictly Private & Confidential Obour Land For Food Industries IPO Roadshow Presentation November / December 2016
Slide 2: Table of Contents
Table of Contents I. Transaction Overview II. Introduction to Obour Land III. Key Investment Highlights IV. Appendix 2
Slide 3: Disclaimer (1/2)
Disclaimer (1/2) THIS PRESENTATION IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED OR PUBLISHED (IN WHOLE OR IN PART) OR FURTHER DISTRIBUTED TO ANY PERSON FOR ANY PURPOSE. This presentation has been prepared by Obour Land For Food Industries S.A.E. (the “Company”) with
Slide 4: Disclaimer (2/2)
Disclaimer (2/2) This presentation and any materials distributed in connection with this presentation are not directed or intended for distribution to or use by, any person or entity that is a citizen or resident located in any locality, state, country or other jurisdiction where such distribution,
Slide 5: I. Transaction Overview
«eres Ru Transaction Overview
Slide 6: Offering Structure
Offering Structure Offering Indicative Parameters Issuer Obour Land For Food Industries S.A.E Type of Offering Initial Public Offering Securities Offered Ordinary Shares Listing Venue Egyptian Stock Exchange (EGX) Combined Offering Structure: Offering Structure − International Offering (70
Slide 7: Key Process Dates
Key Process Dates Indicative Transaction Timeline November December Week 1 Week 2 Week 3 Week 4 20th Nov – 26th Nov 27th Nov – 3rd Dec 4th Dec – 10th Dec 11th Dec – 17th Dec 24th Nov – 9th Dec Institutional Offering Management Roadshow – Institutional Book-building 5th Dec – 13th Dec Retail Offering
Slide 8: Management Presentation Team
Management Presentation Team Management Presentation Team Ashraf Sherif Ahmed Hassan Vice Chairman and CEO Head of IR and Investments Joined in: 1997 (co-founder of the Joined in: November 2016 Company) Title: Head of Investor Relations and Title: Vice Chairman and Chief Executive Investments Office
Slide 9: II. Introduction to Obour Land
II. Introduction to Obour Land
Slide 10: 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 11: 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 12: III. Key Investment Highlights
III. Key Investment Highlights
Slide 13: 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 14: 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 15: 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 16: 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 17: 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 18: 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 19: Large Network of Distributors Allowing Sales and Collections on Favorable 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 20: 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 21: Highly Supportive Demographic Profile, Coupled with a 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 22: 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 ▲49% ▲74% ▲86% with a total capacity of 1,
Slide 23: 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 24: Appendix
or RU Vi. Appendix
Slide 25: 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 74 total capacity of 40.3 ktpa in addition to one p
Slide 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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
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