Almarai Company · TADAWUL:2280
Almarai — Q4 2013 Earnings Presentation
26 slides from Almarai's earnings presentation, 2014
Slide 1: Almarai Company 2013 Q4 Earnings Presentation
Almarai Company 2013 Q4 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 CncloJl Almarai a Business Highlights
Slide 4: Highlights – 2013
Highlights – 2013 Financial Highlights Sales Revenue EBITDA EBIT 2013 2013 2013 SAR 11.2 B SAR 2.7 B SAR 1.8 B 2012 2012 2012 SAR 9.9 B +13.5% SAR 2.4 B +14.5% SAR 1.7 B +7.4% Operational Achievements Employees Operating Cash Flow Acquisition Road Map 2013 2013 • 25% interest of Teeba • 33% interest
Slide 5: Sales Highlights
NO an CncloJl Almarai — Sales Highlights
Slide 6: Sales Analysis by Product
Sales Analysis by Product By Product 2012 By Product 2013 13% Ba kery 5% 13% 7% Poultry 1% Ba kery Poultry 1.3 0.5 1% O ther Sales 1.4 0.8 0% O ther Sales 16% Cheese & Ar a ble and 0.0 1% 0.0 Ar a ble and Butter Hor ticulture 0.1 15% H or ticulture 1.6 Cheese & Butter 0.1 1.6 13% SAR 9.9 B SAR 11.2
Slide 7: Growth Driven by Poultry, Juice and Fresh Dairy
Growth Driven by Poultry, Juice and Fresh Dairy Revenue in SAR Million Growth % of Total 12,000 2012 v 2013 Growth 11,219 Fresh Dairy 574 43% ( YoY 14%) 10,000 9,883 Long-Life Dairy 54 4% ( YoY 5%) Fruit Juice 213 16% 8,000 ( YoY 17%) Cheese & Butter 47 4% ( YoY 3%) 6,000 Bakery 154 12% ( YoY 12%) 4
Slide 8: Sales Analysis by Country
Sales Analysis by Country By Geography 2012 By Geography 2013 4% 4%E gypt 5% 4% 3% 5% 2% 2% 5% K uwait Q a tar Ba hrain 1% K uwait 0.5 2% 0.5 0.4 E xport / Others 5% 0.6 Ba hrain 0.2 2% 0.2 0.1 3%E xport / Others 10% O ma n E gypt 9% Qa tar Jor dan 0.3 0.5 Jor dan O ma n 0.5 UAE 0.3 0.3 0.2 UAE 0.6
Slide 9: Sales Analysis by Country
Sales Analysis by Country Growth % of Total Revenue in SAR Million 2012 v 2013 Growth 12,000 KSA 11,219 626 47% ( YoY 9%) 9,883 UAE 52 4% 10,000 ( YoY 5%) Oman 68 5% ( YoY 13%) 8,000 Kuwait 71 5% ( YoY 15%) Qatar 75 6% 6,000 ( YoY 18%) Egypt 173 13% ( YoY 53%) 4,000 Bahrain 32 2% ( Yoy 16%) 2,000 Jo
Slide 10: Sales growth achieved via our expanding footprints across the globe…
Sales growth achieved via our expanding footprints across the globe… Farming Distribution Center Manufacturing Plant Milking Parlours Poultry Farming Arable & Horticulture Farms Almarai Company 2013 Q3 Earnings Presentation 10
Slide 11: Financial Performance
NO an Ciclo Almarai a Financial Performance
Slide 12: Segment Reporting – Dairy & Juice
Segment Reporting – Dairy & Juice Dai ry & • In Dec 2013, achieved the 1-billion litres mark on SAR Mi l l i on Jui ce saleable milk. Ful l Year 2013 • First shipment of Fondomonte feed was shipped for Growth Almarai in Q4, 2013 Sales 8,868.2 Third Party Sales 8,835.8 • Market share in nearly all ma
Slide 13: Segment Reporting – Bakery
Segment Reporting – Bakery SAR Mi l l i on Bakery • Continue to expand on bread & bun growth Ful l Year 2013 • NPD are driving volume & revenue growth Growth Sales 1,445.1 • Capacity and GCC expansion are the main driver of Third Party Sales 1,445.1 growth Depreciation (136.7) Income / (loss) before
Slide 14: Segment Reporting – Poultry
Segment Reporting – Poultry SAR Mi l l i on Poul try • Bird sales increased to 65M birds from 35M birds last year Ful l Year 2013 • Doubled the retail shops serve yoy to more than Sales 792.3 Growth 10K Third Party Sales 792.3 • Line 1 and Line 2 were commissioned during Q1 Depreciation (174.6) and
Slide 15: Statement of Income – Full Year 2013
Statement of Income – Full Year 2013 Q4 Full Year SAR million 2013 2012 Change 2013 2012 Change Sales 3,008.2 2,645.5 13.7% 11,219.2 9,883.0 13.5% Cost of sales (2,023.6) (1,775.7) 14.0% (7,267.3) (6,371.9) 14.1% Gross Profit 984.6 869.9 13.2% 3,951.8 3,511.1 12.6% Selling and Distribution Expenses
Slide 16: Balance Sheet & Cash Flows
NO an CncloJl Almarai a Balance Sheet & Cash Flows
Slide 17: Cash Flow Bridge
Cash Flow Bridge 1,300 (301) (3,070) 1,700 Loans Issues / Sukuk Payments / Charges 2,586 (499) Equity (323) Issued - Capex / 1,811 Perpetual Biological Dividend Assets Others Sukuk 417 Operating Cash Ca sh at 31 Flow Ca sh at 31 De c 2012 + SAR 1,393 m De c 2013 Almarai Company 2013 Q4 Earnings Pres
Slide 18: Capex spend in line with 5YP guidance…
Capex spend in line with 5YP guidance… Capex spend for the year 2013 was 2.8B SAR, which is in line with our 5 year capital expenditure guidance. We remain committed to the 15.7B spend over the current 5 year period. Poultry capex spend for the year reached 1.0B SAR. The key highlight for the ye
Slide 19: Balance Sheet
Balance Sheet SAR Mi l l i on 31 Dec 2013 31 Dec 2012 Net Operating Working Capital 1,535 932 Biological Assets 992 901 Property, Plant and Equipment 15,028 13,416 Net Operating Assets 17,555 15,249 Intangible Assets - Goodwill 1,310 1,335 Investment & Financial Assets, Deferred 519 227 Charges and
Slide 20: Net Debt
Net Debt 9,0 00 3 .1x 3 50 % 3 .0 x 8,0 00 2.8x 3 0 0% 7,0 00 2.3 x 2.3 x 2.2x 250 % 6,0 00 in million SAR 1.9x 5,0 0 0 1.7x 20 0 % 4,0 00 150 % 3 ,0 00 94% 98% 10 1% 80 % 72% 74% 76% 10 0 % 70 % 2,0 00 50 % 1,0 00 1,3 20 2,454 3 ,3 98 3 ,869 4,60 6 6,653 8,23 7 8,161 0 0% 20 0 6 20 0 7 20 0 8 20 0
Slide 21: Debt Profile highlights balanced approach for funding….
Debt Profile highlights balanced approach for funding…. 3 .5 Debt Maturity by Age and Type 3 .0 2.3 , 23% 2.5 Isl amic Bonds 6.1, 62% Govt / Semi Govt Inst. S AR Billion 2.0 Banks 1.5, 15% 1.5 1.0 0 .5 0.0 <1yr 1-2 yr 2-3 yr 3 -4 yr 4-5yr >5yr Almarai Company 2013 Q4 Earnings Presentation 21
Slide 22: Trend charts
NO an CncloJl Almarai — Trend charts
Slide 23: Quarterly Performance – Net Income
Quarterly Performance – Net Income 2013 versus 2012 Q3 = 5.7% Q4 = 1.2% 450 Q2 = 4.9% *Q4=16.0% 400 350 300 Q1 = 5.4% 475.6 250 SAR Million 450.0 429.7 424.5 398.2 379.5 373.3 369.0 200 363.4 349.3 343.1 255.1 293.7 287.1 285.5 283.5 150 248.8 242.1 235.2 235.2 234.1 219.2 197.4 193.1 186.1 100 165.
Slide 24: 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% 26.0% 25.6% 25.0% 25.3% 24.4% 24.2% 21.8% 20.7% 21.0% 21.1% 11,219 19.4% 19.1% 9,883 SAR in Million 16.9% 16.0% CAGR 2006 – 2013: 22.2% (w/o impact of acquisitions 16.1%) 7,9
Slide 25: Key Share Data
Key Share Data Key S tati sti cs for Al marai (1 Jan 20 14) Year t o date total shareholder's return 30% si n ce listing C u rren t P /E R ati o (ttm) 20 .9 25% Esti mated P /E(12/20 13 ) 21.0 19% Earn i n gs P er S h are (S AR ) (ttm) 2.5 2 0% 3 0 0% M ark et C ap (M S AR ) 3 1,498 15 % S h ares O
Slide 26: 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 11 470 00 05 ext 1280 investor.relations@almarai.com