Savola Group · TADAWUL:2050
Savola — Q3 2017 Earnings Presentation
24 slides from Savola's earnings presentation, 2017
Slide 1: Earnings Presentation Q3 2017
Earnings Presentation Q3 2017 www.savola.com
Slide 2: Disclaimer
DISCLAIMER This presentation contains 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 about
Slide 3: Group – Highlights
GROUP – HIGHLIGHTS • In Q3 2017, the Group reported a net profit of SAR 829 million; with adjusted net profit of SAR 135.1 million after deducting the capital gain of SAR 693.9 million from the sale of 2% of Almarai shares. • Savola’s retail segment recorded a net loss of SAR 218.8 million for the q
Slide 4: Q3 2017 - Snapshot
Q3 2017 - SNAPSHOT » Q3 2017 revenue of SAR 5.7 bn (Q3 2016: SAR 6.2 bn) » Q3 2017 net income SAR 829 mn (Q3 2016: SAR 179.5 mn) GROUP » Adjusted net income of SAR 135.1 mn after gain of sale of Almarai shares » Q3 2017 revenue of SAR 2.7 bn (Q3 2016: SAR 3.2 bn) RETAIL » Q3 2017 net loss of SAR 218
Slide 5: Group – Consolidated Financial Snapshot Q3 YTD
GROUP – CONSOLIDATED FINANCIAL SNAPSHOT Adjusted Gross Net Revenue EBIT Net Profit Income SAR Mn Income Q3 5,663 1,042 280 829 135.1 2017 -8.0% vs. LY -11.9% vs. LY -20.9% vs. LY +361.8% vs. LY -24.7% vs. LY YTD 18,208 3,222 712 1,063 316 2017 -7.7% vs. LY -15.0% vs. LY -38.2% vs. LY +92.5% vs. LY -
Slide 6: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY Sales YTD Sales -8% -6% -8% -9% 19,717 18,208 6,422 7,141 6,711 6,154 5,663 5,833 Q1 2016 Q1 2017 Q2 2016 Q2 2017 Q3 2016 Q3 2017 YTD 2016 YTD 2017 YoY Gross Profit YTD Gross Profit -15% -18% -14% -12% 3,788 1,273 1,333 1,183 3,222 1
Slide 7: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY EBITDA YTD EBITDA -24% -36% -35% +5% 1,683 1,284 512 683 488 512 332 440 Q1 2016 Q1 2017 Q2 2016 Q2 2017 Q3 2016 Q3 2017 YTD 2016 YTD 2017 8.0% 5.7% 9.6% 6.6% 7.9% 9.0% 8.5% 7.1% YoY Net Profit YTD Net Profit +93% +362% -10% -96% 1,0
Slide 8: Group – Consolidated Revenue Mix, Net Debt & Capex
GROUP – CONSOLIDATED REVENUE MIX, NET DEBT & CAPEX SAR Bn Revenue by Business Net Debt YTD 2016 YTD 2017 -18% SAR 19.7 Bn SAR 18.2 Bn 4.4% 4.6% Foods 8,035 43.9% 6,603 Retail 47.7% 51.8% Food Services 47.7% Sep/16 Sep/17 Revenue by Geography CAPEX YTD 2016 YTD 2017 -68% SAR 19.7 Bn SAR 18.2 Bn 8.4%
Slide 9: Implications of Exceptional Items
YTD 2016 reported NI 513 SAR Mn IFRS 39 Adjustment YTD 2016 IFRS adjusted NI 552 Share of 20 associate’s liability SFC FX impact 91 USD sourcing SFC 134 Pandati store 24 closures cost Adjusted YTD 2016 Net Income 7 Panda Egypt losses Panda inventory 36 adjustments IMPLICATIONS OF EXCEPTIONAL ITEMS Y
Slide 10: Panda Retail Company
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Slide 11: Retail – Highlights
RETAIL – HIGHLIGHTS • The transformation exercise initiated last year is ongoing with several initiatives running concurrently. • Six Pandati stores and three supermarkets closed in Q3 2017. Total retail selling space decreased by -0.06% in Q3 2017 from Dec 2016 • LFL sales dropped owing mainly to a
Slide 12: Retail - Snapshot Q3 YTD
RETAIL - SNAPSHOT Gross Adjusted Selling Revenue Net Loss Profit Net Loss Space SAR m Q3 2,708 558 (219) (219) Reduced by 2017 -14.7% vs. LY -15.0% vs. LY Q3 2016 : (142) Q3 2016 : (142) 6,791 m2 YTD 8,818 1,673 (608) (670) Total Space 2017 752,303 m2 -14.6% vs. LY -21.6% vs. LY YTD 2016: (268) YTD
Slide 13: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY Sales YTD Sales -15% -13% -17% -15% 10,320 3,874 8,818 3,389 3,271 3,175 2,708 2,721 Q1 2016 Q1 2017 Q2 2016 Q2 2017 Q3 2016 Q3 2017 YTD 2016 YTD 2017 YoY Gross Profit YTD Gross Profit -22% -29% -20% -15% 2,133 741 735 656 1,673 529 586 558 Q1 2
Slide 14: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS SAR Mn Margin YoY EBITDA YTD EBITDA 99 115 40 (18) (84) (75) (106) (245) Q1 2016 Q1 2017 Q2 2016 Q2 2017 Q3 2016 Q3 2017 YTD 2016 YTD 2017 3.0% -3.1% 1.0% -3.1% -0.6% -2.8% 1.1% -2.8% YoY Net Profit YTD Net Profit (32) (94) (268) (160) (142) (230) (219) (608) Q1 2016 Q1
Slide 15: Retail – Number of Stores by Quarter
RETAIL – NUMBER OF STORES BY QUARTER Super Hyper Hyper 4 in 1 KSA Egypt 1 Egypt KSA Egypt UAE 163 162 Hyper 2 (3) Hyper Hyper 66 67 1 1 (1) Dec Q1 Q2 Q3 Closures YTD Dec Q1 Q2 Q3 Closures YTD 2016 ’17 ’17 ’17 ’17 2016 ’17 ’17 ’17 ’17 Pandati Total Total Selling Area Selling Area 752,784 m2 752,303 m
Slide 16: Savola Foods
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Slide 17: Foods – Highlights
FOODS – HIGHLIGHTS • Q3 2017 total revenue of SAR 2.71 billion is 0.2% below Q3 2016 revenue of SAR 2.72 billion while YTD September 2017 revenue was 8.8 billion vs. YTD September 2016 revenue of 8.7 billion (+0.8%) • Total volume of 2,535 k MT 0.8% below September YTD 2016 attributed to the followi
Slide 18: Foods - Snapshot Q3 YTD
FOODS - SNAPSHOT Adjusted Gross Net Revenue EBIT Net Profit Income Income SAR m Q3 2,712 397 188 106 106 2017 -0.2% vs. LY -8.0% vs. LY -8.5% vs. LY +4.5% vs. LY +4.5% vs. LY YTD 8,812 1,303 641 409 393 2017 +0.8% vs. LY -7.0% vs. LY -9.0% vs. LY +16.6% vs. LY +12.2% vs. LY 18
Slide 19: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY Sales YTD Sales +1% +1% +1% -0.2% 8,745 8,812 3,103 3,146 2,925 2,954 2,717 2,712 Q1 2016 Q1 2017 Q2 2016 Q2 2017 Q3 2016 Q3 2017 YTD 2016 YTD 2017 YoY Gross Profit YTD Gross Profit -7% -5% -8% -8% 1,401 1,303 447 523 481 425 432 397 Q1 2016 Q1 2
Slide 20: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY EBITDA YTD EBITDA -7% -11% -2% -12% 821 759 339 303 232 227 261 229 Q1 2016 Q1 2017 Q2 2016 Q2 2017 Q3 2016 Q3 2017 YTD 2016 YTD 2017 8.9% 7.8% 10.9% 9.6% 8.5% 8.4% 9.4% 8.6% YoY Net Profit YTD Net Profit +5% +34% +5% +17% 106 111 192 101 106 144
Slide 21: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS SAR Mn Volume (MT 000) Revenues +1.9% +0.5% 1,170 1,192 5,949 5,978 5% 5% 4% 4% 4% 5% 5% 6% 4% 8% 9% 7% 11% 10% 9% 9% Morocco Morocco YoY +5% YoY +12% Sudan Sudan 31% 30% YoY +11% 32% 34% YoY +13% Algeria Algeria YoY +14% YoY +20% Turkey Turkey 13% YoY +4% 15% YoY -7% 15
Slide 22: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS SAR Mn Volume (MT ‘000) (1) Revenues (1) KSA KSA YoY -3% YoY +6% Egypt Egypt YoY -4% +6.2% YoY +6% -3.1% 2,515 1,166 2,367 1,130 88% 88% 88% 88% 12% 12% 12% 12% YTD 2016 YTD 2017 YTD 2016 YTD 2017 (1) Sugar volumes and revenues include only the contribution from sugar
Slide 23: Financial Summary
JgoLA FINANCIAL SUMMARY SAVOLA
Slide 24: Financials – YTD September 2017
FINANCIALS – YTD September 2017 (all figures are in SAR millions) Segment Wise Financials YTD - 2017 YTD - 2016 (Represented) Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Food Oil-Mature Markets 5,037 866 383 275 433 5,134 1,029 562 371 610 Oil-Start-up Mar