Almarai Company · TADAWUL:2280
Almarai — Q1 2013 Earnings Presentation
29 slides from Almarai's earnings presentation, April 2013
Slide 1: Almarai Company 2013 Q1 Earnings Presentation
Almarai Company 2013 Q1 Earnings Presentation
Slide 2: Disclaimer
Disclaimer Information contained in this presentation is subject to change without further notice, its accuracy is not guaranteed and it may not contain all material information concerning the company. Neither we nor our advisors make any representation regarding, and assume no responsibility or lia
Slide 3: Business Highlights
NO an Ciclo Almarai a Business Highlights
Slide 4: Highlights – Q1 2013
Highlights – Q1 2013 Revenue of 2.4B SAR, growth of 18.2% driven by poultry 70%, juice 39% and inclusion of IDJ results. Revenue growth of 9.4% in KSA, 9.6% in all other GCC states and 609.8% in rest of the world including Jordan and Egypt, driven by first time consolidation of IDJ. Note that th
Slide 5: Strong pipeline of innovation continues in 2013
Strong pipeline of innovation continues in 2013 Almarai Company 2013 Q1 Earnings Presentation 5
Slide 6: Sales Highlights
NO an CncloJl Almarai — Sales Highlights
Slide 7: Sales Growth – Geography mix
Sales Growth – Geography mix All Q 1 2012 O thers Q 1 2013 1.5 % All O thers GCC 8 .7% 2 7.9 % GCC 2 5 .9% KSA KSA 70 .6 % 6 5 .4 % 1.58 9.4% KSA 1.4 4 0 .6 2 GCC 0 .57 9.6% Q1 2013 Rev All 0 .21 in B SAR 0 .0 3 Others 609.8% Q1 2012 Rev in B SAR 2.4 1 Almarai 18.2% Group 2.0 4 % Growth Almarai Comp
Slide 8: Sales Analysis by Product & Region
Sales Analysis by Product & Region Sales by Product Sales by Count ry - Q1 2013 Oman Jordan UAE Egypt Bahrain 5.2% Sa les by Pr oduct Q1 9.4 % 4 .4 % 2.6% 2.1% Qatar Ex port / Gr oup SAR M illion 2 0 13 2 0 12 % chang e 4 .2% Others 1.8 % Fresh Dairy 953.7 8 0 8 .2 18 .0 % Long-Life Dairy 258 .7 213
Slide 9: Change in growth rates and IDJ consolidation results in higher share of poultry, juice and long life dairy
Change in growth rates and IDJ consolidation results in higher share of poultry , Juice and Long life dairy 10 0 % 1.3 % 0 .5% O t her Sales 4 .7% 6 .7% 90 % 10 .5% 10 .7% Poultry 80% 10 .2% 11.9 % 70 % Long-Life D airy 14 .4 % 14 .1% 60 % Fruit Juice 50 % 19 .4 % 16 .4 % Bakery 40 % 30 % Cheese & B
Slide 10: Product mix in different geographical regions highlights revenues growth potential
Product mix in different geographical regions highlights revenues growth potential…. Total KSA Cheese & Arable and Horti Arable and Butter Cheese & Bakery 0% Horti 16% Bakery Butter 18% 0% Fruit Juice 14% 17% 12% Fruit Juice Poultry Poultry 10% 9% Long-Life 7% Dairy Long-Life 11% Dairy Fresh Dairy 8
Slide 11: Expanding presence of Almarai Operations throughout the region
..which can be achieved via expanding presence of Almarai Operations throughout the region(excl Farms in Argentina) ` Distribution centre Manufacturing facility Almarai Company 2013 Q1 Earnings Presentation 11
Slide 12: Statement of Income
NO an tncloJl Almarai — Statement of Income
Slide 13: Statement of Income
Statement of Income 1st quart er SAR m illion 20 13 20 12 Change • GCC Margin over material has Net Sales 2,4 11.0 2,0 4 0 .3 18 .2% continued to show Cost of sales (1,58 3.2) (1,333.0 ) 18 .8 % higher growth than Gross Profit 8 27.8 70 7.3 17.0 % revenue in Q1 2013, similar to previous Selling and
Slide 14: Segment Reporting
Segment Reporting Dairy & Arable and Other Almarai SAR Million Bakery Poultry Juice Horticulture Activities Consolidated Q1 2013 Sales 1,903.6 340.9 162.1 24.4 0.0 2,431.1 Third Party Sales 1,901.2 340.9 162.1 6.9 0.0 2,411.0 Net Depreciation (140.1) (31.7) (15.9) (17.6) (3.6) (208.9) Income/(loss)
Slide 15: Trend charts
NO an CncloJl Almarai — Trend charts
Slide 16: Robust revenue growth with challenging but anticipated EBITDA & EBIT trend
Robust revenue growth with challenging – but anticipated – EBITDA & EBIT trend Revenue, EBITDA and EBIT Evolution 26 .7% 27.2% 25.7% 26 .0 % 25.6% 25.3% 24 .2% 23.9% 21.8 % 20 .7% 21.0 % 21.1% 19 .4% 10 ,254 19 .1% 9 ,8 8 3 SAR in Million 16 .9% 16 .4% CAGR 20 0 6 – 20 13: 20 .6% (w/o im pact of acq
Slide 17: Quarterly Performance – Net Income
SAR Million 0 50 250 350 100 150 200 300 400 450 90.6 Almarai Company 122.8 162.2 197.4 234.1 235.2 242.1 255.1 Q1 = 5.4% 121.8 165.3 235.2 287.1 343.1 349.3 379.5 2013 versus 2012 122.6 2013 Q1 Earnings Presentation 186.1 293.7 363.4 424.5 429.7 450.0 Quarterly Performance – Net Income 130.2 193.1
Slide 18: Cash Flows
NO an CncloJl Almarai — Cash Flows
Slide 19: Cash Flow Statement (Q1 2013)
Cash Flow Statement (Q1 2013) 3,0 00 2,0 06 2,500 Higher revenue growth SAR Million 2,0 00 1,794 resulted in positive operating 1,500 682 1 cash flow, which was 1,0 00 partially subdued by working 50 0 4 17 54 capital expansion,…. 0 Cash at From From Financing U sed in Currency Cash at end of beginn
Slide 20: Cash Flow Bridge – rolling 12 months
Cash Flow Bridge – rolling 12 months 1,3 0 0 (2,76 7) 1,4 4 7 Sukuk 2,0 55 (512) Capex (17) 1,79 4 Loans Issues / Others Dividend Others 28 8 Operating Cash Flow Ca sh at 31 Ca sh at 31 M a r 20 12 + SAR 1,50 6 m M a r 20 13 Almarai Company 2013 Q1 Earnings Presentation 20
Slide 21: Balance Sheet
NO an CncloJl Almarai — Balance Sheet
Slide 22: Balance Sheet
Balance Sheet S AR M illion 3 1/ 0 3 / 13 3 1/ 0 3 / 12 Net Operat ing Working Capit al 1,373 1,0 37 Biological Asset s 919 8 55 Propert y , Plant and Equipment 13,8 45 11,8 54 Net Operat ing Asset s 16,137 13,746 Int angible Asset s - Goodwill 1,335 1,38 3 Invest ment and Financial Asset s & Deferr
Slide 23: Net Debt
Net Debt 10,000 400% 9,000 3.2x 3.4x 350% 8,000 2.8x 300% 7,000 2.4x in million SAR 2.3x 2.3x 2.3x 6,000 250% 2.0x 5,000 200% 4,000 150% 100% 102% 107% 3,000 96% 81% 73% 76% 100% 69% 2,000 1,000 50% 1,315 2,463 3,499 3,951 4,679 6,749 8,305 8,983 0 0% 2006 2007 2008 2009 2010 2011 2012 Last 12 month
Slide 24: Debt Profile highlights balanced approach for funding
Debt Profile highlights balanced approach for funding…. 4.0 3.5 Debt Maturity by Age and Type 2.3 , 23 % 3.0 Islamic Bonds 1.1, 6 .4 , 12% 6 5% 2.5 Govt / Semi Govt Inst . S AR Billion 2.0 Banks 1.5 1.0 0 .5 0 .0 20 13 20 14 20 15 20 16 20 17 20 18 & Bey ond Almarai Company 2013 Q1 Earnings Presenta
Slide 25: Capital Expenditure
NO an tncloJl Almarai — Capital Expenditure
Slide 26: Capex spend in line with Guidance
Capex spend in line with Guidance… Capex spend of 0.7B SAR, which is in line for with our earlier forecast of 3.1B SAR for the year 2013. Poultry capex spend for the quarter amounted to slightly more than 0.2B SAR. The key highlight for Q1 was the commercial production start of the first of the
Slide 27: Key Share Data
Key Share Data Key S t at ist ics for Alm arai (1 April 20 13 ) 30 0% Current P / E Rat io (t t m ) 18 .9 Est im at ed P / E(12/ 20 13 ) 16 .8 Earnings P er S hare (S AR) (t t m ) 3 .6 M arket Cap (M S AR) 27,19 8 250 % S hares O ut st anding (M ) 4 0 0 .0 3 0 D ay Average V olum e 212,0 20 D ividen
Slide 28: Q&A
Q&A Almarai Company 2013 Q1 Earnings Presentation 28
Slide 29: Thank you
Almarai Company Thank you Exit 7, North Circle Road Al Izdihar District P.O. Box 8524 Riyadh, 11492 Saudi Arabia Contact for investor relations matters: Khalid M. Al Nasser +966 1 470 00 05 ext 1280 investor.relations@almarai.com