Savola Group · TADAWUL:2050
Savola — Q3 2024 Earnings Presentation
34 slides from Savola's earnings presentation, Nov 3, 2024
Slide 1: Savola Group Earnings Presentation Q3 2024
Savola Group www.savola.com Earnings Presentation | Q3 2024 Date: 03 Nov 2024
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: Savola Group Key Highlights
Savola Group Key Highlights 3
Slide 4: Savola Group – Year to Date 2024 Highlights
Savola Group – Year to Date 2024 Highlights Resilient Performance Savola Group Savola Group overall profitability demonstrated resilience, with notable gains from Panda’s enhanced performance, and improvements in Performance Savola Foods’ sugar segment despite facing challenges in specific regions a
Slide 5: Group Financial Highlights
Group Financial Highlights 5
Slide 6: Savola Group – Consolidated Financial Highlights
Savola Group – Consolidated Financial Highlights Margin SAR in millions Q1-23 Q1-24 Q2-23 Q2-24 Q3-23 Q3-24 YTD-23 YTD-24 -0.4% -5.1% -4.6% -11.8% 7,814 7,782 20,259 19,218 Revenue 6,093 6,351 6,061 5,375 -0.7% +7.8% -2.6% -8.7% 1,619 4,059 4,030 1,502 Gross Profit 1,247 1,215 1,310 1,197 19.2% 20.8
Slide 7: Savola Group – Consolidated Financial Highlights
Savola Group – Consolidated Financial Highlights Margin SAR in millions Q1-23 Q1-24 Q2-23 Q2-24 Q3-23 Q3-24 YTD-23 YTD-24 1.7% 9.4% -8.1% +1.2% 1,090 2,455 2,496 996 710 718 749 EBITDA 689 12.7% 14.0% 11.7% 13.4% 11.8% 11.4% 12.1% 13.0% -11.2% -1.0% +22.8% +2.5% 393 349 672 665 Net Income 181 132 13
Slide 8: Savola Group – YTD Sep 2024 Revenue & Net Income Bridge By Business
Savola Group – YTD Sep 2024 Revenue & Net Income Bridge By Business Revenue Bridge by Business Net Income Bridge by Business SAR in millions SAR in millions +7.7% -5.1% 20,259 -1.0% (1,246) 19,218 700 163 27 (8) 23 650 672 0 665 35 22 (59) 43 (23) (87) 119 Includes SAR 256mn impact of Morocco exit a
Slide 9: Savola Group – Revenue Mix, Net Debt & Capex
Savola Group – Revenue Mix, Net Debt & Capex SAR in millions Revenue by Business1 Revenue by Geography YTD-23 YTD-24 YTD-23 YTD-24 7% 7% 3% 3% 9% 7% 4% 4% 15% 16% 38% 55% 41% 51% 69% 71% Savola Foods Panda Al Kabeer Herfy Arabia Egypt Central Asia Others 3 YoY Growth -11.0% 2.1% 5.0% -0.9% -1.5% -8.
Slide 10: Savola Foods Company
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Slide 11: Savola Foods – Consolidated Financial Highlights
Savola Foods – Consolidated Financial Highlights Margin SAR in millions ▪ YTD Sep 2024 Revenue Q1-23 Q1-24 Q2-23 Q2-24 Q3-23 Q3-24 YTD-23 YTD-24 declined by 11% YoY due to: o Lower crude edible oil -11.0% prices and sold volumes, -3.3% -21.5% -10.5% o Foreign exchange devaluation in Egypt, 11,312 10
Slide 12: Savola Foods – Consolidated Financial Highlights
Savola Foods – Consolidated Financial Highlights Margin SAR in millions ▪ Net Income declined 23% in Q1-23 Q1-24 Q2-23 Q2-24 Q3-23 Q3-24 YTD-23 YTD-24 YTD Sep 2024 compared to last -8.2% year primarily due to: +9.3% -38.6% o FX losses upon EGP -8.4% devaluation amounting to SAR 109mn, 1,124 1,032 EB
Slide 13: Savola Foods – Oil Segment Analysis
Savola Foods – Oil Segment Analysis Margin SAR in millions Volume (MT ‘000) Revenue Gross Profit EBITDA Net Income 17.4% 18.0% 11.5% 11.8% 4.3% 3.0% -17.8% 7,609 6,253 2,613 -14.6% 2,108 -19.3% 1,324 -5.1% 1,131 1,304 -15.7% 1,237 539 875 412 -23.5% 737 397 388 -2.2% 4,995 358 -43.3% 4,144 -17.0% 24
Slide 14: Savola Foods – Sugar Segment Analysis
Savola Foods – Sugar Segment Analysis Margin SAR in millions Volume (MT ‘000) Revenue Gross Profit EBITDA Net Income 9.9% 10.4% 7.2% 8.8% 0.2% 3.2% +10.5% 2,765 2,503 +9.4% 2,341 +11.1% +15.9% 1,012 2,106 925 287 +35.1% 247 244 143 +13.8% 180 15x 812 866 +6.6% 126 113 +0.5% 89 113 59 +154% 425 122 1
Slide 15: Savola Foods – Nuts, Spices And Pulses Segment Analysis
Savola Foods – Nuts, Spices And Pulses Segment Analysis Margin SAR in millions Revenue Gross Profit EBITDA Net Income +8.8% 33.4% 33.1% 16.1% 14.2% 11.9% 9.1% 360 331 -3.7% UAE +8.0% 53 51 110 119 -17.3% 40 33 10.4% 27.% +48.9% 82 KSA 55 +289.6% 22 6 -20 -33 -26 NM -37 NM YTD-23 YTD-24 YTD-23 YTD-24
Slide 16: Panda Retail Company
Panda Retail Company JgOLA SAVOLA — 16
Slide 17: Panda – Consolidated Financial Highlights
Panda – Consolidated Financial Highlights Margin SAR in millions ▪ YTD Sep 2024 Revenue Q1-23 Q1-24 Q2-23 Q2-24 Q3-23 Q3-24 YTD-23 YTD-24 increased YoY by 2% mainly +2.1% driven by performance of completed CXR stores and new +3.2% store openings +2.5% +0.1% ▪ Overall growth is muted by the 7,895 8,0
Slide 18: Panda – Consolidated Financial Highlights
Panda – Consolidated Financial Highlights Margin SAR in millions ▪ EBITDA continues a positive trend Q1-23 Q1-24 Q2-23 Q2-24 Q3-23 Q3-24 YTD-23 YTD-24 in YTD Sep 2024 compared to LY, +24.2% mainly due to higher revenue and improved gross margin +25.1% +21.8% +26.6% ▪ Panda will continue to invest in
Slide 19: Panda CXR Update
Panda CXR Update CXR Update Completed CXR performance YTD Sep 24 vs. LY 13 88 75 Wave 1 +6.4% Wave 2 +8.9% Wave 3 +6.5% Dec Completed Sep 2023 2024 ▪ In Wave 4, Panda completed 13 CXR stores at the end of Wave 4 +0.2% Q3 2024 ▪ The previously completed 75 stores continued to show healthy growth in r
Slide 20: Panda – Store Network YTD 2024
Panda – Store Network YTD 2024 Super Hyper 131 6 - 137 62 - - 62 Dec Additions Closures Sep Dec Additions Closures Sep 2023 2024 2023 2024 Total Dec-23 Sep-24 Net Selling Area Net Selling Area ▪ 5 new stores in KSA 538K m2 541K m2 during Q3 2024 6 - 199 ▪ 1 new store in Egypt 193 during H1 2024 ▪ To
Slide 21: Al Kabeer
Al Kabeer =—Yy (nei Al Kabeer
Slide 22: Al Kabeer – Consolidated Financial Highlights
Al Kabeer – Consolidated Financial Highlights Margin SAR in millions Q1-24 Q2-23 Q2-24 ▪ During YTD Sep 2024, Al Kabeer Q1-23 Q3-23 Q3-24 YTD-23 YTD-24 reported a Revenue growth +4.9% primarily driven by: o Improved volumes in most +9.1% +2.8% +2.0% product categories o Growth in its core KSA 537 56
Slide 23: Al Kabeer – Consolidated Financial Highlights
Al Kabeer – Consolidated Financial Highlights Margin SAR in millions ▪ EBITDA remains flat as Al Q1-23 Q1-24 Q2-23 Q2-24 Q3-23 Q3-24 YTD-23 YTD-24 Kabeer continues to spend -0.2% towards marketing & branding efforts along with product -7.3% innovations +2.2% ▪ YTD Sep 2024 Net Income +14.1% 63 62 32
Slide 24: Rights Issue and Distribution Transaction Update
Rights Issue and Distribution Transaction Update 24
Slide 25: Recap of the Strategic Transaction Rationale
Recap of the Strategic Transaction Rationale Unlocking Value Unlock value for Savola’s shareholders - Almarai distribution and rights issue is for Savola shareholders to gain direct exposure to growth potential of both companies Strengthen Financial Position Leverage proceeds from rights issue to st
Slide 26: The Transaction Summary
The Transaction Summary Way forward Completed (subject to regulatory and other approvals1) 01 02 03 04 SAR 6.0bn Rights Issue Utilize Rights Issue Share Capital Reduction Distribution of Savola’s proceeds to pay down by SAR 8.34bn to facilitate entire 34.52% Debt and to strengthen the Distribution-i
Slide 27: Illustration of Movement in Shareholders’ Equity with Four Interlinked Components
Illustration of Movement in Shareholders’ Equity with Four Interlinked Components This is subject to shareholders approval at the EGM, no objection from creditors and any other regulatory approvals. Actual amounts would be determined on the date of eligibility. Illustrative Impact on Savola’s Shareh
Slide 28: Capital Reduction and Distribution in Kind – How are they connected?
Capital Reduction and Distribution in Kind – How are they connected? As part of this transaction, the Savola (“the Company”) will distribute its entire stake in Almarai partially through reduction of share capital and balance through utilization of retained earnings Illustrative Impact of Almarai Di
Slide 29: Potential Impact of the Proposed Transaction (Illustrative example)
Potential Impact of the Proposed Transaction (Illustrative example) This is subject to shareholders approval at the EGM, satisfactory completion of creditors objection period and any other applicable regulations SAVOLA SHAREHOLDERS’ PERSPECTIVE (ILLUSTRATIVE EXAMPLE) 1,000 shares held in Savola on d
Slide 30: Indicative Timeline Ahead
Indicative Timeline Ahead This is subject to shareholders approval at the EGM, satisfactory completion of creditors objection period and any other applicable regulations Key Milestones and Timeline Milestone Timeline ✓ CMA Approval on Capital Reduction 27 October 2024 ✓ Publication of Capital Reduct
Slide 31: vole
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Slide 32: Financial Summary
JgbLa SAVOLA Financial Summary 32
Slide 33: Financials – Year to Date 2024
Financials – Year to Date 2024 (All figures are in SAR mn) Segment Wise Financials 1 YTD Sep 2024 YTD Sep 2023 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Savola Foods Oil Arabia2 2,108 412 203 159 244 2,613 539 316 260 358 3 Other Markets 4,177 719 401 26
Slide 34: Thank you
Jgola SAVOLA Thank you www.savola.com 34