Tanmiah Food Company · TADAWUL:2281
Tanmiah Food — H1 2022 Earnings Presentation
20 slides from Tanmiah Food's earnings presentation, Aug 15, 2022
Slide 1: Investor Presentation – 1H 22
TANMIAH Investor Presentation – 1H 22 August 2022
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared solely for use as an investor presentation for Tanmiah Food Company (the “Company”). By attending or by reading this presentation, you agree to be bound by the following limitations. The information contained in this presentation is for background purpo
Slide 3: Table of Contents
TABLE OF CONTENTS 1 Highlights 2 1H 22 Financial Review 3 Tyson Partnership 4 Strategy and Outlook 3
Slide 4: Highlights
01 Highlights
Slide 5: 1H 22 Highlights
1H 22 Highlights Efficient and integrated business model places us in a strong position to unlock value from Vision 2030; sustained growth across all segments in 1H 22 31% 31% 31% 26% YoY revenue growth, Further Processed Products Fresh Poultry revenue Feed and Veterinary to SAR 966 mn revenue growt
Slide 6: Fresh poultry, FPP and Feed & Veterinary segment growth
Fresh poultry segment growth FPP segment growth Segment growth driven by capacity expansion and price revisions Segment growth driven by rising demand and capacity increase Expansion focus areas 31% FPP revenue growth PPL Feed mills Hatcheries Farms • Sales volume increased from 9 million kgs in 1H
Slide 7: Focus on strategic expansion agenda
Focus on strategic expansion agenda Tanmiah continues to make good progress in terms of capex program, to further drive segmental performance going forward Capex Commitments (SAR mn) Capex Additions (SAR mn) Lease Additions (SAR mn) 200 50 200 40 164 153 150 40 150 30 30 100 100 20 50 43 51 10 50 -
Slide 8: Committed to sustainability through our Giving, Earning, Sustaining model
Committed to sustainability through our Giving, Earning, Sustaining model Omnipreneurship award Environmental initiatives Winner announced in Riyadh, for putting forward a creative solution to ▪ One million tree initiative – to be achieved by 2025; trees planted on seasonal convert poultry waste int
Slide 9: 1H 22 Financial Review
¥ WwW 02 1H 22 Financia / SLOLUIC) TANMIAH © 22
Slide 10: 1H 22 Financial Performance – top line
1H 22 Financial Performance – top line Tanmiah delivers robust topline performance supported by capacity expansion and rising demand Revenues (SAR mn) Revenue contribution by segments (%) +44.8% +31.4% 1 9 965.9 21 734.9 530.6 69 366.5 Fresh Poultry Further Processed Products 2Q 21 2Q 22 1H 21 1H 22
Slide 11: 1H 22 Financial Performance – bottom line
1H 22 Financial Performance – bottom line Improvement in both gross and net profit in 1H 22, as a result of continued price increases, as well as volume and capacity expansion Gross Profit and Gross Margin EBITDA and EBITDA Margin Net Income and Net Income Margin 250 28.0% 27.0% 120 25.2% 23.3% 26.0
Slide 12: Prudent balance sheet management
Prudent balance sheet management Balance sheet (SAR mn) Dec 2021 Mar 2022 Jun 2022 716 917 812 833 694 827 277 299 368 494 546 641 378 356 358 Assets Liabilities and Equity Assets Liabilities and Equity Assets Liabilities and Equity Non-current assets Current Assets Equity Non-current Liabilities Cu
Slide 13: Tyson Partnership
¥ WwW 03 Tyson Partner =~ SLOLUIC) TANMIAH © 22
Slide 14: Tyson Partnership – Ownership Structure
Tyson Partnership – Ownership Structure Public Al Dabbagh Group Tyson Foods Inc. Shareholders 30% 70% 100% Cash payment of Tanmiah Food USD 70mn Tyson International Company Holding Company 100% 100% 100% Agriculture 85% Development 15% Gulf Brand for Desert Hills Al Tanmiah Company Fast Foods Veteri
Slide 15: Generating substantial returns to shareholders
Generating substantial returns to shareholders Strategic partnership to create multiple avenues of sustainable value creation Cost Efficiencies •Streamlining operations and processes, leading to cost savings •Tyson Foods’ focus on productivity gains could be used for local process improvement and ef
Slide 16: Strategy and Outlook
¥ WwW 04 Strategy and O =~ ok
Slide 17: Supported by Government Initiatives
Supported by Government Initiatives The Saudi government continues to support the Food sector directly and indirectly as part of the 2030 vision initiatives and programs Government Tariffs 20% on price of imported goods Change of subsidy to weight of chicken Government Subsidy produced instead of fe
Slide 18: Strong Foundation For Future Growth
Strong Foundation For Future Growth We are confident of achieving our aim of becoming a leading producer and distributor of food products, including poultry and meat products in the MENA region Our pathway to further rapid expansion rests on solid ground 01 02 03 04 05 Our excellent Saudi government
Slide 19: 1H 22 Key Takeaways
1H 22 Key Takeaways Tanmiah reports solid set of financial results, amidst continued expansion of volumes and capacity Sustained rise in volumes, driving top line performance Capacity expansion on track, to achieve target of 1.2 millions birds per day by 2025 Continued increase in global grain price
Slide 20: Thank You
THANK YOU Investor Relations & Media Queries Mr. Hussam Al Shareef, Investor Relations Manager ir@tanmiah.com www.tanmiah.com 20