Afg International Company · TADAWUL:4240
Afg International — Fawaz Abdulaziz Alhokair — FY2022 Earnings Presentation
32 slides from Afg International's earnings presentation, 2022
Slide 1: Earnings Presentation FY22
ALHOKAIR Mf J 24531 Fashion Retail jal Lyi Earnings Presentation | FY22 Asat31March 2022 Fawaz Abdulaziz Alhokair Co. | SaudiExchange: 42:
Slide 2: Management Review FY22
Slide 3: FY22 top line at SAR 5.9 bn exceeding pre-pandemic levels
FY22 top line at SAR 5.9 bn exceeding pre-pandemic levels on enhanced macro-economic conditions & successful delivery on strategy; Double digit top-line growth in Q4-FY22 83 1,668 479k +10,500 69% Brands Total Number of Stores Gross Floor Area, sqm Employees Saudization Key Leading Franchise Retaile
Slide 4: Portfolio optimization, operational excellence, building a lifestyle brand
01 Portfolio optimization Optimize store network 02 Operational excellence IT, finance and other optimization initiatives Exit weak/non-performing markets Revamp inventory & supply chain management Expand portfolio – unique brand experience 1st phase of shared service center live Increase revenue pe
Slide 5: Our Brand Portfolio Is Our Competitive Advantage & Transformation Driver
Our Brand Portfolio Is Our Competitive Advantage & Transformation Driver to a Lifestyle Destination 83 Targeting most consumer segments Diversifying F&B offering Successful relationship with partners and Evolving brand mix focused on high brands* through economy and alignment on strategy margin segm
Slide 6: Retail store openings and closures
Q4-FY22 ▪ 23 stores opened Retail ▪ 35 stores closed FY22 ▪ Net 12 closures openings FY22 ▪ 86 stores opened Retail ▪ 174 stores closed FY23 ▪ Net 88 closures openings FY23 ▪ c. 80 stores to be Retail opened with Capex of ~ SAR 220mn Earnings Presentation FY2022 6
Slide 7: F&B segment delivers solid performance, new master franchise agreements
F&B segment delivers solid performance, with 2 new key master franchise agreements set to drive future profitability. Focus remains on 3 strategic revenue growth pillars 01 Expand store network of ▪ Q4-FY22: Opened 8 stores, closed 12 for a net of 4 closures ▪ FY22: Opened 47, closed 30, for a net o
Slide 8: Ongoing channel optimization on Vogacloset & Monobrand platforms
Ongoing channel optimization on Vogacloset & via our Monobrand platforms Vogacloset Monobrand Platforms KSA International ▪ 47 Alhokair fashion brands are Q4-FY22 ▪ Enhanced 3PL and last mile offering with new providers bringing enhanced service execution and unitary economics now live ▪ Scaled last
Slide 9: Financial Review Q4-FY22 and FY22
/ Financial Review Q4-FY22 and FY22
Slide 10: Q4-FY22 and FY22 financial highlights
Q4-FY22 SAR 1,387 mn SAR 181 mn SAR 93 mn SAR 45 mn Revenue Gross Profit EBITDA* Net Loss 22% vs Q4-FY21 Q4-FY21 SAR -55 mn Q4-FY21 SAR -226 mn Q4-FY21 SAR -347 mn FY22 SAR 5,915 mn SAR 991 mn SAR 462 mn SAR 38 mn Revenue Gross Profit EBITDA* Net Profit Exc. SAR 71mn 40% vs FY21 FY21 SAR -88 mn FY21
Slide 11: Revenue and LFL consolidated sales growth
Revenue, SAR million LFL consolidated sales growth, % FY22 revenue +40% Y-o-Y and exceed pre-pandemic levels, as LFL revenue performance on upward trajectory for the pandemic-related restrictions continued to be lifted across fourth consecutive quarter the globe 5,915 190% 4,233 37% 12% 4% 16% -8% -
Slide 12: Gross Profit and EBITDA
Gross Profit, SAR million – GPM, % EBITDA, SAR million – EBITDA Margin, % Gross profit touched SAR 1bn for FY 22 with a GPM of 16.7% FY22 EBITDA margin of 7.8% broadly in line with driven by improvement in revenues and trading activity management guidance 19.6% 16.8% 7.8% 8.9% 8.5% 17.1% 16.7% 6.9%
Slide 13: Aggressive inventory management and working capital optimization
Aggressive inventory management and working capital optimization to improve liquidity and increase efficiency Inventory balance (SAR million) Inventory efficiency ratios +48% 40% 1,701 36% 1,108 1,152 1,168 26% 22% 24.3 24.7 17.3 21.7 Q3-FY21 Q4-FY21 Q3-FY22 Q4-FY22 Q3-FY21 Q4-FY21 Q3-FY22 Q4-FY22 W
Slide 14: Capital alteration on track; Rights Issue of SAR 1 billion
Capital alternation on track with approval of capital reduction. Rights Issue of SAR 1 billion is pending CMA approval 1. Share Capital of SAR 2. Board recommends 3. Capital reduction by 4. Capital increase by 2.1 bn with capital decrease 45.3% completed by way of a SAR 1.0 bn accumulated losses fol
Slide 15: Actively addressing our capital structure to boost liquidity
Actively addressing our capital structure to boost liquidity position and operational / strategic flexibility The successful capital alteration will allow Alhokair to renegotiate the financial terms and ultimately regain full compliance with covenants by FY23 SAR million Mar’22 Mar’21 YTD % change T
Slide 16: Robust rebound in profitability on the back of market return
5. 4. Recapitalization on 3. Successfully delivered track, to provide solid financial position 2. Significant Operational Upgrade Strategy for FY22; supporting growth 1. improvement in agenda Double digit growth in Ramping up our margins, resulting Digitization and the top-line of 40% from enhanced
Slide 17: Thank you
M Thank you
Slide 18: Financial Statements
Financial Statements
Slide 19: Income statement
Q4-FY21 Q4-FY22 % Change y-o-y FY21 FY22 % Change y-o-y Revenue 1,132 1,387 22.5% 4,233 5,915 39.8% Cost of Revenue (1,187) (1,205) 1.5% (4,321) (4,924) 14.0% Gross Profit (55) 181 NM (88.3) 990.8 NM Gross Profit Margin -4.8% 13.1% 17.9 -2.1% 16.8% 18.8 Selling and Distribution Expenses (37) (27) -2
Slide 20: Statement of financial position
SAR Million 31 March 2021 31 March 2022 Change Assets Property, Plant and Equipment 1,327 1,358 2% Right-of-Use Assets 3,402 3,276 -4% Goodwill and Intangible Assets 1,111 1,083 -3% Investment Property 2 2 -8% Equity-accounted investees 3 62 2198% Other investments 300 300 0% Derivative Asset - 30 T
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Slide 22: Revenue by division, channel and geography
Revenue by division Revenue by channel Revenue by geography 8% 4% 8% 5% 17% 13% 87% 10% 6% 83% 3% 3% 3% 79% 4% 75% 95% 96% FY22 - Outer circle FY 22- Outer circle FY 22- Outer circle FY21 - Inner circle FY 21 - Inner circle FY 21 - Inner circle KSA Retail Int'l Retail F&B Stores Online KSA CIS Egypt
Slide 23: LFL Revenue Growth
LFL Revenue Growth International retail Saudi LFL revenues up 12.2% in Q4-FY22, despite partial Covid- Significant yearly LFL increase due to the positive momentum from related restrictions in February CIS counties, Egypt, and Jordan Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22 Q3-FY21 Q4-FY21 Q1
Slide 24: Store network evolution; Gross Floor Area vs Sales Density
Return to parent slide Store network evolution Gross Floor Area, SQM vs Sales Density, SAR Net store contraction of 71 stores in FY22 due to store FY22 revenue per sqm of SAR 12.7K, recording a +56% growth YoY rationalization as we continue to make more with less. 12,687 1,739 12,331 1,709 1,682 1,6
Slide 25: Saudi retail store network evolution
Saudi retail store network evolution Gross Floor Area, SQM vs Sales Density, SAR FY22 KSA revenue per sqm up 53% yoy and +3% compared to FY20 1,120 13,656 13,211 17 22 20 15 8 8,907 1,089 -29 -25 -48 -50 -59 1,054 1,047 1,042 345 320 321 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22 FY20 FY21 FY22 Opened
Slide 26: Online revenues and E-commerce share
Online revenues, SAR million E-commerce, % of total retail sales 218 219 5.6% 4.4% 4.1% 4.0% 3.9% 3.8% 3.7% 62 55 55 38 48 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22 FY21 FY22 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22 FY21 FY22 Ecommerce normalizes: ▪ Online sales declined as the e-commerce market has no
Slide 27: F&B store network evolution
F&B store network evolution Total number of transactions (million) 3.3 3.3 3.3 322 318 2.7 2.8 17% 312 5% 303 2% 19 13 -2% 7 8 -5 -4 -9 -12 -17% Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22 Opened Outlets Closed Outlets Total No. of Outlets Total No. of Transactions QoQ (%
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Slide 29: International footprint
Return to parent slide Kazakhstan Georgia Balkans Armenia Azerbaijan Lebanon Iraq Morocco Jordan Kuwait Libya Egypt Bahrain Qatar KSA UAE Oman Core market International footprint Market access via Vogacloset * US operations is not represented in the graph Earnings Presentation FY2022 29
Slide 30: International brands
Return to parent slide * These brands are present in international markets only Brand count as of March 2022. Count excludes newly signed agreements (Fnac Darty, Subway & Secrets) Earnings Presentation FY2022 30
Slide 31: Disclaimer
This presentation has been prepared solely for use as an investor presentation for Fawaz Abdulaziz Alhokair Co. (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 purpose
Slide 32: Thank you
M Thank you
Fawaz Abdulaziz Alhokair — FY2022 Earnings Presentation on 6ix