Savola Group · TADAWUL:2050
Savola — Q4 2021 Earnings Presentation
33 slides from Savola's earnings presentation, 2022
Slide 1: Savola Group Earnings Presentation Q4 2021
Savola Group www.savola.com Earnings Presentation | Q4 2021
Slide 2: Disclaimer
DISCLAIMER This presentation might contain 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
Slide 3: Key Management Highlights for 2021
KEY MANAGEMENT HIGHLIGHTS FOR 2021 • The group delivered strong performance across most segments despite the increase in global Business Highlights food commodity prices and challenging grocery retail landscape in Saudi Arabia • Savola Group reported 13.6% topline growth during 2021; driven by the i
Slide 4: KSA - Macroeconomic Highlights
KSA - MACROECONOMIC HIGHLIGHTS Combined POS and Cash Withdrawals, SAR bn Saudi Unemployment Rate Low base last year due COVID-19 120 70% to lockdown Global Pandemic 100 50% 15.4% 80 14.9% 30% 60 12.6% 12.5% 12.3% 10% 12.0% 12.0% 11.8% 40 11.7% 11.3% 11.3% 20 -10% 0 -30% Jan Feb Mar Apr May Jun Jul A
Slide 5: Selected MENA and Commodities Overview
SELECTED MENA AND COMMODITIES OVERVIEW Real GDP, % change Selected Currency Highlights (rebased) TL IRR EGP Egypt Turkey Central Asia 130.0 120.0 9.0% 110.0 3.4% 2.5% 100.0 90.0 5.6% 80.0 3.6% 70.0 3.3% 1.8% 60.0 0.9% -6.8% Real GDP, % change 50.0 40.0 2019 2020 2021E 2019 2020 2021E 2019 2020 2021E
Slide 6: Group Key Financial Highlights / Performance by Segment
1. Group Key Financial Highlights 2. Performance by Segment 6
Slide 7: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 Q3-19 Q3-20 Q3-21 Q4-19 Q4-20 Q4-21 FY-19 FY-20 FY-21 +7% +1% +8% +7% +14% Sales 5,214 5,923 5,954 5,813 6,007 5,901 6,049 6,746 21,406 21,702 24,660 5,148 4,587 5,232 5,185 +7% -2% -3% 0% -3% Gross
Slide 8: Group – Consolidated Financial Highlights (EBITDA, Net Income)
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 Q3-19 Q3-20 Q3-21 Q4-19 Q4-20 Q4-21 FY-19 FY-20 FY-21 +13% +1% -12% -2% -5% EBITDA 693 641 873 724 725 691 623 2,583 2,832 2,506 505 664 677 564 542 9.7% 11.7% 10.8% 11.4% 14.5% 11.5% 14.1% 15.8% 9.3
Slide 9: Group – Revenue & Net Income Bridge by Business
GROUP – Revenue & Net Income Bridge by Business SAR in millions Revenue Bridge by Business Net Income Bridge by Business* +14% -29% 3,987 238 (35) 24,660 911 21,702 (1,137) (94) 39 648 110 (309) 73 (150) (26) 222 (370) (56) Food Processing Food Processing Food Services Food Services FY 2020 Share of
Slide 10: Group – Revenue Mix, Net Debt & Capex
GROUP – REVENUE MIX, NET DEBT & CAPEX SAR in millions Revenue by Business Revenue by Geography FY-20 FY-21 FY-20 FY-21 5% 5% 11% 14% 3% 3% 5% 39% 10% 2% 50% 12% 42% 53% 69% 77% Food Processing Retail Food Services Frozen Food KSA Egypt Central Asia Others YoY Growth +46% -10% +22% -13% +2% +43% +100
Slide 11: Group Key Financial Highlights / Performance by Segment
1. Group Key Financial Highlights 2. Performance by Segment 11
Slide 12: Panda Retail Company
JgbLa SAVOLA Panda Retail Company 12
Slide 13: Retail - Highlights
RETAIL - HIGHLIGHTS • Panda continued focusing on its turnaround initiatives against the backdrop of a weaker consumer market while maintaining market leadership position Key Highlights • FMCG market in Saudi Arabia for Jan-Nov 2021 period declined by 4.5% YoY (VAT adjusted) wherein Modern Trade cha
Slide 14: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 Q3-19 Q3-20 Q3-21 Q4-19 Q4-20 Q4-21 FY-19 FY-20 FY-21 -1% -3% +4% -1% -4% 10,660 11,613 10,476 Sales 3,099 3,042 3,463 2,497 2,720 2,843 2,559 2,527 2,532 2,562 2,525 2,381 -4% 0.4% -16% +4% -3% 2,544 2,838 814
Slide 15: Retail – Financial Highlights (EBITDA, Net Income)
RETAIL – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 Q3-19 Q3-20 Q3-21 Q4-19 Q4-20 Q4-21 FY-19 FY-20 FY-21 -10% +57% -22% 1,004 +14% -36% 752 EBITDA 610 240 231 225 320 163 378 177 141 160 129 66 135 2.6% 7.8% 6.0% 4.4% 10.9% 6.2% 9.0% 8.9% 5.6% 12.5% 6.3% 5.4% 7.
Slide 16: Retail – Number of Stores
RETAIL – NUMBER OF STORES Super Hyper Store converted to fulfillment center 145 1 145 132 5 63 (1) (5) 60 60 (8) (2) Dec Additions Closures Dec Format Additions Closures Dec Dec Additions Closures Dec Format Additions Closures Dec 2019 2020 Conversion 2021 2019 2020 Conversion 2021 Total Dec-19 Dec-
Slide 17: Recap of Key Focus Areas in 2021
RECAP OF KEY FOCUS AREAS IN 2021 Building Blocks Objectives 1 Fresh Model Reinvention • Re-invent the fresh model to be the undisputed leader in the category Customer Count and Basket Category Management • Implement data enabled, customer centric category management Size Maximization core capabiliti
Slide 18: Panda's Customer Experience Program (CXR)
PANDA’S CUSTOMER EXPERIENCE PROGRAM (CXR) - The detailed CXR program with customer centricity is established on the building blocks that Panda has been implementing and refining over the past year. The program entails: Background - Adopting differentiated concepts across all areas of the business by
Slide 19: Savola Foods Company
JgbLa SAVOLA Savola Foods Company ayac il Foods Jgbls SAVOLA 19
Slide 20: Foods - Highlights
FOODS - HIGHLIGHTS • Savola Foods delivered strong results despite the higher commodity prices and Key Highlights challenging market conditions across various geographies • Savola Foods continued its focus on future growth initiatives • Volumes increased by around 13% in 2021 compared to last year –
Slide 21: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 Q3-19 Q3-20 Q3-21 Q4-19 Q4-20 Q4-21 FY-19 FY-20 FY-21 +17% +10% +33% 12,630 +6% +19% 9,209 8,644 Sales 3,985 2,408 2,476 2,906 2,656 3,083 2,285 2,350 2,230 2,185 1,653 2,266 +7% +13% -4% -7% +25% 1,345 1,528 1,2
Slide 22: Foods – Consolidated Financial Highlights
FOODS – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 Q3-19 Q3-20 Q3-21 Q4-19 Q4-20 Q4-21 FY-19 FY-20 FY-21 +11% +12% +5% -4% +30% 788 910 741 EBITDA 207 221 261 215 228 239 255 167 172 155 152 168 8.6% 8.9% 9.0% 9.2% 10.2% 9.0% 7.6% 10.4% 5.0% 6.7% 7.2
Slide 23: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues FY-19 FY-20 FY-21 FY-19 FY-20 FY-21 +5% CAGR (’19-’21) 1,743 CAGR (’19-’21) 8,683 Morocco +5% 6% Morocco +28% 1,585 +21% 7% 1,514 5% Sudan +116% Sudan +25% 6% 4% 6% 9% 13% Algeria -13% Algeria -9% 11% 6% Turkey +7% Turkey -5% YoY
Slide 24: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues FY-19 FY-20 FY-21 FY-19 FY-20 FY-21 CAGR (’19-’21) +2% CAGR (’19-’21) YoY Growth 1,473 +7% 2,931 Egypt +16% 1,408 (FY ’21 vs. ’20) YoY Growth Egypt +17% (FY ’21 vs. ’20) KSA 0% KSA +6% 1,298 Egypt 16% 2,546 16% 12% 10% 2,406 Eg
Slide 25: Recap of Savola Foods Strategy
RECAP OF SAVOLA FOODS STRATEGY • Health, convenience, and youth driven trends are the fastest-growing and future focus segments in our markets • Savola Foods has activated its strategy to enter large and established categories with attractive prospects via M&A 1) Anchor: 1) Anchor 2) Disrupt 3) Conq
Slide 26: Al Kabeer Group of Companies
Al Kabeer Group of Companies 26
Slide 27: Frozen Food - Highlights
FROZEN FOOD - HIGHLIGHTS • The frozen food continued to demonstrate robust performance compared to 2019 Key Highlights • During 2021, coming off a higher base of 2020, the frozen food segment faced supply chain challenges and changing regulatory environment leading to higher input cost for the segme
Slide 28: Frozen Foods – Consolidated Financial Highlights
FROZEN FOODS – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 Q3-19 Q3-20 Q3-21 Q4-19 Q4-20 Q4-21 FY-19 FY-20 FY-21 +2% -7% +17% +2% -2% 737 620 643 Sales 182 211 192 175 159 181 149 167 160 129 142 153 +2% -9% +13% +10% -2% 265 222 230 Gross Profit 70 9
Slide 29: Frozen Foods – Consolidated Financial Highlights (EBITDA, Net Income)
FROZEN FOODS – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 Q3-19 Q3-20 Q3-21 Q4-19 Q4-20 Q4-21 FY-19 FY-20 FY-21 +6% +1% -2% 141 +11% +22% 115 102 EBITDA 52 35 33 34 23 26 29 27 27 29 25 17 18.2% 13.6% 16.4% 14.7% 24.8% 17.3% 11.7% 16.3% 16.7% 21.0% 2
Slide 30: Financial Summary
JgbLa SAVOLA Financial Summary 30
Slide 31: Financials – FY 2021
FINANCIALS – FY 2021 (all figures are in SAR millions) Segment Wise Financials FY 2021 FY 2020 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Food* Oil-Mature Markets 6,432 1,029 458 230 570 4,097 794 382 235 473 Oil-Other Markets** 2,251 150 48 20 65 1,392 1
Slide 32: Investor Relations Application
INVESTOR RELATIONS APPLICATION Views Savola Group share price, charts and performance on the go Savola Group Annual & Quarterly figures Savola Group News releases from Tadawul Annual/Quarterly Reports accessible offline http://www.myirapp.com/savola 32
Slide 33: Thank you
JQGoLA SAVOLA Thank you vola.com 3