Slide 1: Investor Presentation FY'23 results
Investor Presentation FY’23 results 11 March 2024
Slide 2: Disclaimer
2 Analyst and Investor Presentation Disclaimer Agthia Group PJSC and its management may make 7. expected financial results; 8. sensitivity to changes in 4. various events which could disrupt operations, certain statements that constitute “forward-looking product prices; 9. sensitivity to key input p
Slide 3: Agenda
3 Analyst and Investor Presentation Agenda 1 2 3 Strategic Segmental Key financials update performance 4 5 Dividends Guidance
Slide 4: Recap: Our strategic vision to become a regional F&B leader by 2025
4 Analyst and Investor Presentation Recap: Our strategic vision to become a regional F&B leader by 2025 From… To… UAE centric Footprint MENA+ & beyond Becoming a Commoditized portfolio Value-add F&B brands regional F&B Stable financial performance Strong shareholder returns leader by 2025 Local orga
Slide 5: Progress on strategic vision
5 Analyst and Investor Presentation Progress on strategic vision Delivering Growth Driving Efficiency Expanding Capabilities • Reported revenue growth +12.1% YoY; • Focus on productivity enhancement: • Investing in innovation: 8.1% from volume1 & 4.1% from pricing • Snacking - launched new brands in
Slide 6: Key Financials
Key Financials
Slide 7: FY'23: Ahead of all external guidance
7 Analyst and Investor Presentation FY’23: Ahead of all external guidance Revenue growth EBITDA margin Underlying1 Group net profit margin 2023 +12.1% +113 bps +80 bps 2023 Guidance +10% to 12% +40 to 60 bps +30 to 50 bps 1 Based on underlying net profit (including minority interests), net of AED 42
Slide 8: FY'23 headlines: Strong and profitable growth led by Snacking, Agri-Business, and Water & Food
8 Analyst and Investor Presentation FY’23 headlines: Strong and profitable growth led by Snacking, Agri-Business, and Water & Food Strong revenue growth… … outpaced by EBITDA Healthy net profit1 growth AED MN AED MN AED MN +12% +25% +21% 4,561 342 689 273 4,067 569 FY'22 FY'23 FY'22 FY'23 FY'22 FY'2
Slide 9: …amidst a challenging backdrop
9 Analyst and Investor Presentation …amidst a challenging backdrop 60% EGP devaluation Rising interest rate Average EGP vs USD FX Rate Average 3M LIBOR1 +300bps 30.7 5.4% 19.2 2.4% FY'22 FY'23 FY'22 FY'23 Devaluation impact vs. last year • Revenue AED 346 MN • EBITDA AED 53 MN • Group net income AED
Slide 10: Continued strengthening of balance sheet
10 Analyst and Investor Presentation Continued strengthening of balance sheet Gross debt, eop Optimization of WC1 allows for… …significantly increase in FCFF AED WC as % of Sales AED MN -35% 4x -846 bps 2.4 794 20.4% 1.6 11.9% 199 FY'22 FY'23 FY'22 FY'23 FY'22 FY'23 * WC is calculated based on the c
Slide 11: Strong balance sheet to fuel future growth and boost shareholder value
11 Analyst and Investor Presentation Strong balance sheet to fuel future growth and boost shareholder value Net debt / EBITDA1 Interest coverage2 1.3x FY Dec’22 - 2.3x 7.6x FY Dec’22 – 7.2x High borrowing capacity 1.8bn Avg Dividend yield3 FY Dec’22 – 1.0bn 4.0% FY’23 DPS = AED 0.185 1 Net debt as o
Slide 12: Strong topline growth driven by Snacking, Agri, Water & Food
12 Analyst and Investor Presentation Strong topline growth driven by Snacking, Agri, Water & Food FY’23 revenue growth +12.1% YoY, with 8.1% from volume1 and 4.1% from pricing; +20.7% pre devaluation Group Group revenue Revenue (AED (AED MN)MN) 97 -125 4,561 204 57 4,067 261 after absorbing Inorgani
Slide 13: EBITDA growth ahead of revenue driven by Snacking, Water & Food, Agri
13 Analyst and Investor Presentation EBITDA growth ahead of revenue driven by Snacking, Water & Food, Agri FY’23 EBITDA growth +21.2% YoY, +30.5% pre devaluation Group EBITDA (AED MN) 689 (32) 46 (22) 33 569 33 64 after absorbing Inorganic EGP devaluation of growth1 AED 53MN FY'22 Snacking acquisiti
Slide 14: Solid net profit growth despite higher interest rate environment
14 Analyst and Investor Presentation Solid net profit growth despite higher interest rate environment FY’23 reported net profit growth +10% YoY, +21% pre devaluation – Underlying net profit2 growth +25.5% YoY Group net profit1 (AED MN) (26) 37 33 (44) 342 38 (43) 300 273 33 after absorbing EGP deval
Slide 15: Segmental performance
Segmental performance
Slide 16: Diversified growing portfolio in large growing scalable markets
16 Analyst and Investor Presentation Diversified growing portfolio in large growing scalable markets Diversified revenue by geography... …and segments 9% 22% 27% 27% 50% 22% 29% 14% UAE Other Arab Countries Protein & Frozen Water & Food RoW Snacking Agri Business GCC excl UAE
Slide 17: Snacking: Strong growth in dates and contribution from Abu Auf
17 Analyst and Investor Presentation Snacking: Strong growth in dates and contribution from Abu Auf Revenue, AED MN EBITDA, AED MN Key highlights EBITDA margin 22.2% (+329 bps) Revenue • LFL growth of 9.3% including Abu Auf FY’22 +38% • Dates: +62% ‒ Al Foah revenue growth of 22% is largely attribut
Slide 18: Protein & Frozen: Revenue +19.3% YoY excluding devaluation impact
18 Analyst and Investor Presentation Protein & Frozen: Revenue +19.3% YoY excluding devaluation impact Revenue, AED MN EBITDA, AED MN Key highlights EBITDA margin 14.3% (-127 bps) Revenue -11% • +19.3% YoY excluding FX devaluation • -10.8% YoY primarily due to EGP 1,151 -18% devaluation • Nabil: Inc
Slide 19: Water & Food: Consistent revenue growth from volume, with EBITDA surpassing
19 Analyst and Investor Presentation Water & Food: Consistent revenue growth from volume, with EBITDA surpassing driven by step up in efficiency Revenue, AED MN EBITDA, AED MN Key highlights EBITDA margin 17.6% (+229 bps) Revenue • +6% YoY on positive growth across local +6% +22% (UAE excl. dairy +3
Slide 20: Agri-Business: Strong volumes in Flour and Feed
20 Analyst and Investor Presentation Agri-Business: Strong volumes in Flour and Feed Revenue, AED MN EBITDA, AED MN Key highlights EBITDA margin 16.3% (-2 bps) Revenue +20% • +19.9% YoY on share gain in Flour, +20% increasing proportion of premium and specialty products and strong volume in 1,227 Fe
Slide 21: Delivering shareholder value
Delivering shareholder value
Slide 22: Improved dividend yield
22 Analyst and Investor Presentation Improved dividend yield Consistent cash dividend payout ratio of 50-60% +5% bonus shares 32% 35% 44% 43% 66% 85%1 58% 53% 56% Dividend payout % 0.185 0.165 0.165 0.165 0.150 0.150 0.150 0.150 0.125 Dividends per share (AED) 2015 2016 2017 2018 2019 2020 2021 2022
Slide 23: Our FY'24 outlook
Our FY’24 outlook
Slide 24: Agthia is on track to achieve 2025 external guidance
24 Analyst and Investor Presentation Agthia is on track to achieve 2025 external guidance Robust revenue growth EBITDA margin improvement Net profit margin growth Significant improvement of RoIC1 to AED 6 BN 15.5-16.5% to 8.5-10.0% to 9-10% in FY 2025 in FY 2025 in FY 2025 in FY 2025 2023 Results: a
Slide 25: FY'24 Guidance
25 Analyst and Investor Presentation FY’24 Guidance1 Revenue growth EBITDA margin improvement Net profit margin improvement* +10% to 12% +40 to 60 bps +30 to 50 bps Assumptions • 100% of Group profit including • FY average FX rate of up to USD / EGP 40 • FY average FX rate of up to USD / EGP 40 mino
Slide 26: A forward-looking company
26 Analyst and Investor Presentation A forward-looking company Market leading position across key categories and geographies Growing portfolio of consumer-centric brands in large, scalable markets Growth-oriented mindset focused on leveraging synergies, innovation and digitization Attractive economi
Slide 27: For The Better
ForThe Better * JaoUI Joi yo
Slide 28: Appendix
ForThe Better * JA0UI Joi yo
Slide 29: Q4'23 Group headlines
29 Analyst and Investor Presentation Q4’23 Group headlines Healthy net profit growth despite Double-digit revenue growth… … outpaced by EBITDA macroeconomic headwind AED MN AED MN AED MN +15% +29% +4% 224 94 1,290 90 1,118 175 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 1Net profit including minority intere
Slide 30: Q4'23 segment performance
30 Analyst and Investor Presentation Q4’23 segment performance Snacking Protein & Frozen Revenue1, AED MN EBITDA1, AED MN Revenue, AED MN EBITDA, AED MN +23.3% y-o-y +47.2% y-o-y, EBITDA margin +435 bps -3.2% y-o-y -15.3% y-o-y, EBITDA margin -202 bps 427 114 269 260 43 347 37 78 Q4'22 Q4'23 Q4'22 Q
Slide 31: Investing in growth: Protein expansion in KSA
31 Analyst and Investor Presentation Investing in growth: Protein expansion in KSA Project overview ▪ Location: Jeddah, KSA ▪ Category: Protein ▪ Capex c. AED 84MN (Phase 1) ▪ Available land 9,436 sqm; Built-up area 6,600 sqm ▪ Capacity ≈ 6,500- 8,700 tons/annum ▪ ≈ 50 SKUs Rationale ▪ Strengthen fo
Slide 32: Over AED 144MN in revenue generated from strategic product innovation
32 Analyst and Investor Presentation Over AED 144MN in revenue generated from strategic product innovation AED 29MN from Water and Food AED 75MN from Snacking AED 29 MN from Protein & Frozen Veg AED 11MN from Agri- Business
Slide 33: 5-year digital roadmap with clear priorities
33 Analyst and Investor Presentation 5-year digital roadmap with clear priorities Priority #1 Priority #2 Best customer / consumer experience Empowered employees in a collaborative environment • Seamless omnichannel experience with optimized • Integrated business planning and cross-domain online and
Slide 34: Progress on digital agenda
34 Analyst and Investor Presentation Progress on digital agenda Accelerate digital transformation by Adopting AI Other achievements Grew our Digital & Technology We signed a Memorandum of Understanding (MoU) with Microsoft UAE competence center with new talents The MoU focusses on: • Revolutionizing
Slide 35: ESG is integral to Agthia's purpose
35 Analyst and Investor Presentation ESG is integral to Agthia’s purpose ENVIRONMENTAL SOCIAL GOVERNANCE Eco-friendly products driving revenue CSR strategy built on community: Commitment and accountability start growth & lowering costs: -Strategic partnerships with with BoD/BU Heads: -PLA and rPET g
Slide 36: Our Sustainability Agenda: adopting a "4 P" approach
36 Analyst and Investor Presentation Our Sustainability Agenda: adopting a “4 P” approach Packaging Processes • Packaging material reduction of 1,200 tons YTD • 3.7% reduction in water usage ratio (FY’23 vs FY’22) • Plant-based bottles: 350% YoY volume growth during FY’23 • 1.0% decrease in electric
Slide 37: Board of Directors
37 Analyst and Investor Presentation Board of Directors Chairman / Vice Chairman Board Member Khalifa Sultan Salmeen Khamis Mohamed Ms. Mariam Ahmed Gil Adotevi Svet Varadzhakov Ms. Caitlin Nguyen Ms. Sharmila Murat Maurizio Patarnello Al Suwaidi Alameri Buharoon Al Shamsi Al Remeithi Chairman Vice
Slide 38: Strong leadership team with track record of value creation
38 Analyst and Investor Presentation Strong leadership team with track record of value creation Group Functions Business Units Alan Sherif Ramy Vandy Dos Hala Abdulla Mubarak Ahmad Declan Nizar Smith Elfaham Merdan Santos Hobeiche Al Marzooqi Al Mansoori Yahya Bennett Kayali Katounas Chief Executive
Slide 39: Summary Profit & Loss Statement
39 Analyst and Investor Presentation Summary Profit & Loss Statement AED'000 FY’23 FY'22 YoY Revenue 4,561,210 4,067,394 12% Cost of sales -3,200,212 -2,909,812 10% Gross profit 1,360,998 1,157,582 18% Selling and distribution expenses -577,499 -507,956 14% General and administrative expenses -352,0
Slide 40: Summary Balance Sheet Statement
40 Analyst and Investor Presentation Summary Balance Sheet Statement AED'000 FY’23 FY’22 Property, plant and equipment 1,460,821 1,446,027 Intangible assets & Goodwill 2,408,106 2,421,885 Others 128,038 104,521 Total non-current assets 3,996,965 3,972,433 Inventories 926,834 847,275 Trade and other
Slide 41: Summary Cash Flow Statement
41 Analyst and Investor Presentation Summary Cash Flow Statement AED'000 FY’23 FY’22 YoY Profit before tax & zakat expenses 382,186 301,325 26.8% Adjustments for: Depreciation & Amortization 228,585 231,383 -1.2% Provisions & Allowances 26,724 29,372 -9.0% Others 72,950 43,068 69.4% Change in: Inven
Slide 42: Thank you
For The Better + JAoUI Joi yo 11 March 2024 as Saas