Afg International Company · TADAWUL:4240
Afg International — Fawaz Abdulaziz Al Hokair & — Q3 2021 Earnings Presentation
27 slides from Afg International's earnings presentation, 2021
Slide 1: Earnings Release Presentation Q3-FY2021
AL HOKAIR Fawaz Abdulaziz Al Hokair & Co. Earnings Release Presentation Q3-FY2021 AlHokair Fashion Retail 1 Investor Presentation
Slide 2: At a Glance: Q3-FY2021
At a Glance: Q3-FY2021 SAR 1,349.7 mn SAR 157.4 mn SAR 55.7 mn SAR 128.1 mn Revenues Gross Profit EBITDA Net Loss ▲ 13.8% q-o-q; ▲ 4.6% y-o-y ▲ 203.6% q-o-q; ▼ 39.0% y-o-y ▼ 22.6% q-o-q; ▼ 75.0% y-o-y Q2-FY21: -SAR 98.2 mn; LFL: ▼ 8.4% y-o-y 11.7% Margin 4.1% Margin Q3-FY20: + SAR 36.1 mn SAR 1,108.
Slide 3: At a Glance: 9M-FY2021
At a Glance: 9M-FY2021 SAR 3,100.3 mn SAR 33.4 mn SAR 206.6 mn SAR 761.9 mn Revenues Gross Loss EBITDA Loss Net Loss ▼ 27.2% y-o-y 9M-FY20: + SAR 949.0 mn 9M-FY20: + SAR 812.7 mn 9M-FY20: + SAR 234.3 mn Revenue by Division Revenue by Channel Revenue by Geography SAR 180 mn 3.2% 3.2% Online Sales 5.8
Slide 4: Adjusted Highlights: Q3-FY2021 & 9M-FY2021
Adjusted Highlights*: Q3-FY2021 & 9M-FY2021 Q3-FY2021 9M-FY2021 SAR 248.9 mn 18.4% SAR 360.6 mn 11.6% Gross Profit Gross Profit Margin Gross Profit Gross Profit Margin ▲ 41.9% q-o-q; ▲ 8.2% y-o-y Q2-FY21: 14.8%; Q3-FY20: 17.8% ▼ 58.5% y-o-y 9M-FY20: 20.4% SAR 165.2 mn 12.2% SAR 205.4 mn 6.6% EBITDA
Slide 5: Key Updates
Key Updates Q3-FY21 AlHokair Fashion Retail 5 Investor Presentation
Slide 6: On the Road to Sustainable and Profitable Growth
On the Road to Sustainable and Profitable Growth Key Strategy Pillars Portfolio Operational Building a Lifestyle Commitment to Optimization Excellence Brand Digital Vision Management is continuously Management is enhancing the Building a model that transcends Fully participate in the e-commerce revi
Slide 7: Q3-FY21: Key Developments
Q3-FY21: Key Developments • Alhokair held 90 portfolio brands (inc. F&B) as of Q3-FY21, up from 85 in Q3-FY20. We are in the final stages of Diversified portfolio growth opening our first stores in newly acquired brands: Decathlon, Public Desire, Marie France. • Exploring new F&B acquisition. Buildi
Slide 8: Financial & Operational Performance
Financial & Operational Performance Q3-FY21 AlHokair Fashion Retail 8 Investor Presentation
Slide 9: Top Line Shows Sequential Growth On Gradual Footfall Recovery
Top Line Shows Sequential Growth On Gradual Footfall Recovery… Revenues (SAR mn) Q3 Revenue Breakdown 4,257 -27% 3,100 Non LFL - Stores Closed 2.1% 1,290 1,186 1,350 565 +14% +110% Non LFL - Stores Opened 16.2% Q3-FY20 Q1-FY21 Q2-FY21 Q3-FY21 9M-FY20 9M-FY21 Revenues climbed by 13.8% q-o-q as the op
Slide 10: Despite Ongoing Store Fleet Rationalization
…Despite Ongoing Store Fleet Rationalization Store Network Evolution 1,880 1,848 1,834 1,806 1,609 1,779 295 300 304 314 347 342 336 328 321 1,262 1,243 1,212 1,202 1,171 Q3-FY20 Q4-FY20 Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY21E KSA non-F&B International F&B Total No. of Stores In line with Alhokair’s portfo
Slide 11: KSA Remains Our Core Market and Key Focus
KSA Remains Our Core Market and Key Focus KSA Retail Revenues (SAR mn) KSA Retail Store Network Evolution 1,262 3,489 1,243 -30% 2,458 32 22 13 1,212 13 12 1,202 1,009 916 1,067 -22 467 +92% +16% -47 -41 -44 -44 1,171 Q3-FY20 Q1-FY21 Q2-FY21 Q3-FY21 9M-FY20 9M-FY21 Revenues climbed by 16.5% q-o-q (+
Slide 12: Eyeing Continued Growth in CIS, Egypt; Exit From Other International Operations
Eyeing Continued Growth in CIS, Egypt; Exit From Other International Operations International Revenues (SAR mn) Net International Revenue by Market – 9MFY21 768 2% 1% 6% -48% 398 281 16% Georgia, 164 164 24% 69 -0.2% +136% 50% Armenia, CIS 15% Q3-FY20 Q1-FY21 Q2-FY21 Q3-FY21 9M-FY20 9M-FY21 Egypt, 2
Slide 13: F&B Segment Posting Healthy Growth
F&B Segment Posting Healthy Growth F&B Revenues (SAR mn) F&B Store Network Evolution 119 106 +13% 314 +453% 53 304 15 8 8 - 300 19 -3 -4 - 295 -5 Q4-FY20* Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY20* Q1-FY21 Q2-FY21 Q3-FY21 Alhokair’s F&B segment saw revenues climb by 12.7% q-o-q during Q3-FY21 despite Opened S
Slide 14: Online Sales Expanding Rapidly
Online Sales Expanding Rapidly… Online Revenues (SAR mn) E-Commerce, % of Total Retail Sales 180.0 15.1% 6.3% 7.4% 82.4 +641% 63.3 3.2% 34.4 +84% 24.0 0.9% 0.6% 11.8 Q3-FY20 Q1-FY21 Q2-FY21 Q3-FY21 9M-FY20 9M-FY21 Q3-FY20 Q1-FY21 Q2-FY21 Q3-FY21 9M-FY20 9M-FY21 Alhokair booked SAR 63.3 million in on
Slide 15: Deepening Digital Transformation and Driving Omnichannel Experience
…Deepening Digital Transformation and Driving Omnichannel Experience Creating an unmatched shopping experience for Alhokair’s customers • Added 5 monobrand platforms in Q3-FY21: Stradivarius, Pull & • Continued renovation and Bear, Bershka, Oxxo, and upscaling of Tier Okaidi. 1 Brand stores. • Multi
Slide 16: Intensive Balance Sheet Restructuring
Intensive Balance Sheet Restructuring… Quarterly Inventory Balance (SAR mn) 2,029 -45% 1,656 1,377 1,263 1,108 Q3-FY20 Q4-FY20 Q1-FY21 Q2-FY21 Q3-FY21 Inventory balances booked SAR 1,108.4 million for Q3-FY21, marking a reduction of SAR 98.2 million in 9M-FY21. This decrease follows a physical count
Slide 17: Accompanied By An Aggressive Action Plan
…Accompanied By An Aggressive Action Plan Al-Hokair continues to rationalize its inventory balances and progress toward reaching optimal inventory levels is nearing completion. Restructuring Phase Target Income Statement Impact Q4-FY2020 Asset Impairments SAR 239.4 million Q1-FY2021 Q4-FY2020 Mark t
Slide 18: Gross Profitability Recovers Despite Nonrecurring Outlays
Gross Profitability Recovers Despite Nonrecurring Outlays… Gross Profit (SAR mn) EBITDA (SAR mn) 812.7 949.0 223.3 258.2 157.4 72.1 55.7 51.9 (33.4) (242.7) (206.6) (334.4) Q3-FY20 Q1-FY21 Q2-FY21 Q3-FY21 9M-FY20 9M-FY21 Q3-FY20 Q1-FY21 Q2-FY21 Q3-FY21 9M-FY20 9M-FY21 Gross profit + 204 q-o-q, despi
Slide 19: With Adjusted Figures Suggesting Stronger Operational Recovery
…With Adjusted Figures Suggesting Stronger Operational Recovery Adjusted Gross Profit (SARmn) Adjusted Net Profit (SARmn) AlHokair Fashion Retail 19 Investor Presentation
Slide 20: Debt Management In Focus
Debt Management In Focus Re-financing furthers capital structure optimization with an eye to boosting liquidity position and flexibility to invest in the business. Summary Credit Metrics Debt Management Strategy SAR mn Mar’20 Sep ’20 Dec ’20 Balanced debt position with matched maturity profile Total
Slide 21: Appendix
APPENDIX AlHokair Fashion Retail 21 Investor Presentation
Slide 22: Income Statement
Income Statement Change SAR Million Q3-FY20 Q3-FY21 9M-FY20 9M-FY21 Change y-o-y Revenue 1,290 1,350 4.6% 4,257 3,100 -27.2% Cost of Revenue (1,032) (1,192) 15.6% (3,308) (3,134) -5.3% Gross Profit 258 157 -39.0% 949 (33) - Gross Profit Margin 20.0% 11.7% (8.4) 22.3% -1.1% - Selling and Distribution
Slide 23: Balance Sheet
Balance Sheet SAR Million 31 March 2020 31 December 2020 Change Assets Property, Plant and Equipment 1,514 1,380 -9% Right-of-Use Assets 4,058 3,618 100% Goodwill and Intangible Assets 1,080 1,065 -1% Investment Property 4 4 0% Investment in Associates & Others 232 218 -6% Receivables from Disposal
Slide 24: Group History
Group History Established in 1990 with two operational stores, the Group has since built a track record of introducing global Brands to KSA and entering new markets KSA Armenia, Georgia and Morocco Inditex Egypt, Acquisition Relationship Jordan and of Nesk Company Kazakhstan formation 1990 1997 1999
Slide 25: Our Brand Portfolio
Our Brand Portfolio AlHokair Fashion Retail holds a portfolio of over 102 brand representations and ownership covering all market segments Department Stores Kids Fashion Armenia, Georgia & Kazakhstan Fashion Boutique Shoes & Accessories Lingerie Electronics Jordan AlHokair Fashion Retail 25 Investor
Slide 26: Our Brand Portfolio
Our Brand Portfolio Entertainment and Women’s & Men’s Fashion Food & Beverage Morocco USA Morocco Armenia & Georgia Youth Fashion Cosmetics Home AlHokair Fashion Retail 26 Investor Presentation
Slide 27: Thank you
Thank you AlHokair Fashion Retail 27 Investor Presentation
Fawaz Abdulaziz Al Hokair & — Q3 2021 Earnings Presentation on 6ix