Afg International Company · TADAWUL:4240
Afg International — Fawaz Abdulaziz Alhokair — H1-FY23 Earnings Presentation
32 slides from Afg International's earnings presentation, November 2022
Slide 1: Earnings Presentation H1-FY23
ALHOKAIR ff J 2459 )I Fashion Retail a5j aU eLyjl Earnings Presentation | H1-FY23 As at 30 September 2022 Fawaz Abdulaziz Alhokair Co. | SaudiExchange: 4240
Slide 2: Management Review H1-FY23
Slide 3: H1-FY23 results supported by growing international operations and strong F&B performance
H1-FY23 results supported by growing international operations and strong F&B performance 82 1,659 ~480k +10,500 73% Brands Total Number of Stores Gross Floor Area, sqm Employees Saudization Key Leading Franchise Retailer Strong International Differentiators in KSA Presence ▪ Strong Brand Portfolio b
Slide 4: Our Competitive Advantage & Transformation Driver to becoming a true Lifestyle Destination
Our Competitive Advantage & Transformation Driver to becoming a true Lifestyle Destination 82 Targeting most consumer segments Diversifying F&B offering Successful relationships with partners and Evolving brand mix focused on high brands* through economy and alignment on strategy margin segments fas
Slide 5: Retail and F&B store openings and closures
Retail F&B Q2-FY23 ▪ 13 stores opened Q2-FY23 F&B ▪ 13 stores opened Retail ▪ 41 stores closed ▪ 2 stores closed ▪ 28 net closures ▪ 11 net openings H1-FY23 ▪ 41 stores opened H1-FY23 F&B ▪ 24 stores opened Retail ▪ 57 stores closed ▪ 17 stores closed ▪ 16 net closures ▪ 7 net openings FY23 Retail ▪
Slide 6: Ongoing channel optimization on Vogacloset & via our Monobrand platforms
Ongoing channel optimization on Vogacloset & via our Monobrand platforms Vogacloset Monobrand Platforms KSA International ▪ 52 Alhokair fashion brands are now live H1-FY23 ▪ Launched 4 new monobrand sites in KSA: Charles & Keith, La Vie en Rose, FG4 Kids & Women, and Jacadi. The Company currently ▪
Slide 7: Financial Review H1-FY23
/ Financial Review H1-FY23
Slide 8: Q2 and H1-FY23 financial highlights
SAR 1,373 mn SAR 193 mn SAR 80 mn SAR 23 mn Revenue Gross Profit EBITDA* Net Profit +0.9% vs Q2-FY22 -17% vs Q2-FY22 -31% vs Q2-FY22 +12% vs Q2-FY22 SAR 3,079 mn SAR 471 mn SAR 227 mn SAR 81 mn Revenue Gross Profit EBITDA* Net Profit +0.5% vs H1-FY22 -17% vs H1-FY22 -15% vs H1-FY22 +22% vs H1-FY22 ❖
Slide 9: Revenue and LFL consolidated sales growth
Revenue, SAR million LFL consolidated sales growth, % Steady revenue performance in Q2-FY23, at SAR 1,373 LFL revenue declined 3% YoY , due to softer domestic million (+0.9% YoY), supported by F&B and international operating environment, characterized by inflationary retail pressures and reduction i
Slide 10: Gross Profit and EBITDA
Gross Profit, SAR million – GPM, % EBITDA, SAR million – EBITDA Margin, % 8.5% 8.6% 17.1% 16.7% 16.3% 14.0% 6.9% 6.7% 5.8% 13.1% 278 146 4.4% 232 245 116 181 193 2.0% 102 93 80 52 24 Q2-FY21 Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 Q2-FY23 Q2-FY21 Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 Q2-FY23 ▪ Trading Margin (Rev
Slide 11: Prudent working capital practices through inventory optimization
Prudent working capital practices through inventory optimization, to improve liquidity and efficiency Inventory balance (SAR million) Inventory efficiency ratios 1,700 26.3% 1,441 23.2% 22.5% 23.4% 1,411 21.9% 1,099 1,168 18.1 17.3 21.7 18.3 18.9 Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 Q2-FY23 Q2-FY22 Q3-FY
Slide 12: Capital restructuring on track; Rights Issue of SAR 1 billion pending CMA approval
Capital restructuring on track, with capital reduction already implemented. Rights Issue of SAR 1 billion is pending CMA approval 1. Share Capital of SAR 1.1 bn 2. Capital reduction 3. Capital increase by with accumulated by 45% completed way of a SAR 1.0 bn earnings at SAR 50 mn by cancelling 95.2
Slide 13: Sustained growth in F&B and international operations
5. 4. Capital alteration set 3. Operational upgrade to reinforce financial position and support 2. Disciplined working strategy in progress, to accelerate digital current and future 1. capital management growth initiatives Ongoing store transformation, with optimized improve efficiencies, rationaliz
Slide 14: Thank you
M Thank you
Slide 15: Financial Statements
Financial Statements
Slide 16: Income statement
SAR Million Q2-FY23 Q2-FY22 % Change H1-FY23 H1-FY22 % Change Revenue 1,373 1,361 0.9% 3,079 3,062 0.5% Cost of Revenue (1,180) (1,129) 4.5% (2,608) (2,497) 4.4% Gross Profit 193 232 -17.1% 471 565 -16.7% Gross Profit Margin 14.0% 17.1% (3.0) 15.3% 18.5% (3.2) Selling and Distribution Expenses (46)
Slide 17: Balance sheet
SAR Million Assets Property, Plant and Equipment 1,457 1,358 7.3% Right-of-Use Assets 3,150 3,276 -3.8% Goodwill and Intangible Assets 1,124 1,083 3.8% Investment Property 2 2 0.0% Equity-accounted investees 63 62 1.6% Other investments 298 300 -0.6% Derivative asset 39 30 33.1% Total Fixed Assets 6
Slide 18: Slide 18
Slide 19: Revenue by division, channel and geography
Revenue by division Revenue by channel Revenue by geography 10% 4% 4% 1% 10% 4% 15% 4% 4% 11% 21% 19% 71% 69% 81% 96% 79% 96% Q2-FY23 - Outer circle Q2-FY 23 - Outer circle Q2-FY23 - Outer circle Q2-FY22 - Inner circle Q2-FY 22 - Inner circle Q2-FY22 - Inner circle KSA Retail Int'l Retail F&B Stores
Slide 20: Store network evolution
Return to parent slide Store network evolution Gross Floor Area, SQM vs Sales Density, SAR Net 21 store closures in Q2-FY23 Q2-FY23 revenue per sqm of SAR 12,534 , a decline of 6% YoY 12,687 12,534 1,682 1,684 1,668 1,676 1,659 12,331 312 322 318 314 325 316 315 310 8,135 308 304 1,054 1,047 1,042 1
Slide 21: LFL Saudi and international retail sales growth
LFL Saudi retail sales growth, % LFL international retail sales growth, % Saudi LFL revenues down 6% in Q2-FY23, due to strong International LFL revenues up 8%, due to sustained improvement in rebound in post-Covid travel and inflationary pressures performance of the CIS counties and Jordan leading
Slide 22: Saudi retail store network evolution
Saudi retail store network evolution Gross Floor Area, SQM vs Sales Density, SAR 1,052 13,656 1,054 13,211 12,840 1,047 8,907 50 1,042 29 14 25 33 1,030 22 20 24 15 11 345 320 321 323 Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 Q2-FY23 FY20 FY21 FY22 Annualized H1- FY23* Opened Stores Closed Stores Total No. of
Slide 23: Online revenues and e-commerce share
Online revenues, SAR million E-commerce, % of total retail sales 84 5.6% 55 55 4.4% 4.7% 48 48 4.1% 3.9% 3.8% 5.3% 34 4.0% Q2-FY21 Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 Q2-FY23 Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 Q2-FY23 FY21 FY22 H1-FY23 Earnings Presentation H1-FY23 23
Slide 24: F&B segment continues on growth trajectory
F&B segment continues on growth trajectory, with focus on 3 strategic revenue growth pillars F&B store network evolution Total number of transactions (million) 322 17% 15% 325 3.3 3.3 3.3 19 318 13 11 13 8 2% 3.0 3.5 -4 314 -2% -9 -2 -12 -15 312 -8% Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 Q2-FY23 Q2-FY22 Q3
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Slide 26: Portfolio optimization, operational excellence, building a lifestyle brand
01 Portfolio optimization Optimize store network 02 Operational excellence IT, finance and other optimization initiatives Exit weak/non-performing markets Revamp inventory & supply chain management Expand portfolio – unique brand experience 1st phase of shared service center live Increase revenue pe
Slide 27: Expand store network, onboard new brands, grow digital sales
01 02 03 Expand store network Onboard new brands Grow our digital sales of existing brands footprint ➢ Expedite the store rollout of ➢ Target new brands that ➢ Aggressively grow our current leading brands have delivery capabilities, food delivery sales scalability, multi-format ➢ Enhancement of digi
Slide 28: International footprint
Return to parent slide Kazakhstan Georgia Balkans Armenia Azerbaijan Lebanon Iraq Morocco Jordan Kuwait Libya Egypt Bahrain Qatar KSA UAE Oman Core market International footprint Market access via Vogacloset * US operations is not represented in the graph Earnings Presentation H1-FY23 28
Slide 29: International brands
Return to parent slide * These brands are present in international markets only Brand count as of June 2022. Count excludes newly signed agreements (Fnac Darty & Secrets) Earnings Presentation H1-FY23 29
Slide 30: Actively managing our capital structure to boost liquidity position
Actively managing our capital structure to boost liquidity position and operational / strategic flexibility The successful capital restructuring will allow Alhokair to renegotiate the financial terms and ultimately regain full compliance with covenants in FY23 SAR million Sep’22 Mar’22 YTD % change
Slide 31: Disclaimer
This presentation has been prepared solely for use as an investor presentation for Fawaz Abdulaziz Alhokair Co. (the “Company”). By attending or by reading this presentation, you agree to be bound by the following limitations. The information contained in this presentation is for background purpose
Slide 32: Thank you
M Thank you
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