Almarai Company · TADAWUL:2280
Almarai — FY2019 Earnings Presentation
36 slides from Almarai's earnings presentation, January 2020
Slide 1: Almarai Company 2019 Earnings Presentation
incholl Almarai Almarai Company 2019 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. We do not make any representation regarding, and assume no responsibility or liability for, the a
Slide 3: Agenda
AGENDA « Welcome * Market Dynamics ¢ Business Performance ¢ Financial Performance * Questions and Answers ¢ Appendix 2019 Earnings Presentation
Slide 4: Welcome
Slide 5: Market Dynamics
Slide 6: Market update - Year 2019
Market update - Year 2019 KSA > Market sentiment & consumer confidence continued to improve during the year resulting ina much better 2" half relative to 1" half > Growth in Food Services category continued to outperform traditional retail channels > Juice Sugar tax reforms from 1st December 2019 ca
Slide 7: 2019: A year of rebound for consumer market in KSA
2019: A year of rebound for consumer market in KSA ...... Market Share Growth* Home Markets Continue to Improve KSA Subscribed categories - MAT Value growth YoY 2.9% 28% 2.9% 0% 25% ud 24 2 % 6% . © Sausi Market Improved tT Other GCC Markets = remained under stress = Egypt Market stabilized <= JAN F
Slide 8: Almarai maintaining Market Share Leadership
...Whilst Almarai maintaining Market Share Leadership December 2017 December 2018 November 2019 Category Almarai Value Rank Almarai Value Rank Almarai Value Rank Share % Share % Share % Laban 68.9 1 64.6 1 64.5 1 Fresh Milk 72.0 1 69.5 1 67.8 1 UHT Milk 24.6 2 19.7 2 21.2 2 Zabadi 68.1 1 66.7 1 65.7
Slide 9: Awards and recognition
Forbes GLOBAL : Vrasesay 2000 Rg is aos 8g association “ IR AWARDS <7 sai GIFA® GLOBAL ISLAMIC FINANCE Mo oo a eg 2019 Forbes GIFA Top Regarded companies 2019 e Best Global Sukuk Pr Meira B U S | Nn e S S (] YouGovBrandindex \) Best Annual Report \\ TOP BRAND 4 HEALTH io ma Performance Wi! yes . i I
Slide 10: Main Events - Year 2019
Main Events - Year 2019 General >» Fresh Dairy in KSA continues to reboundin the normalized 2" half after the price increase in July 2018 > Discountingin the UHT milk continues to stabilize > Volume growth in Bakery helped in generating higher operating profit due to capacity utilization > Poultry g
Slide 11: Almarai growth is resurgent across nearly all Geographies
Almarai growth is resurgent across nearly all Geographies... Full Year 2019 Revenue Growth (SAR in Million) Other Total Revenue 1,450 14,351 % of Revenue 10% 100% Growth 13% 6% (196) +SAR 162M +SAR 793M (6%) elo 2019 Earnings Presentation Almarai t
Slide 12: ,0 7.0% 9,50 6.0% 9,00 5.0% 8,50 8,00 4.0% 7,50 0 3.0% 7,00 0
10 ,0 00 7.0% 9,50 0 6.0% 9,00 0 5.0% 8,50 0 8,00 0 4.0% 7,50 0 3.0% 7,00 0 6,50 0 2.0% 6,00 0 1.0% 5,50 0 5,00 0 0.0% 3,20 0 3.0% 3,10 0 2.5% 3,00 0 2.0% 2,90 0 1.5% 2,80 0 1.0% 2,70 0 0.5% 2,60 0 2,50 0 0.0% 1,50 0 14 .0 % 1,45 0 12 .0 % 1,40 0 10 .0 % 1,35 0 1,30 0 8.0% 1,25 0 6.0% 1,20 0 1,15 0
Slide 13: Revenue growth in the second half was stronger for all products
..the revenue growth in the second half was stronger for all products, ..and even juice category performance improved relative to 15 half...... Fresh Dairy Long Life Dairy Fruit Juice 6.4% 10.2% (4.0%) 15% 16% 4st Half 2019 2nd Half 2019 4st Half 2019 2nd Half 2019 4st Half 2019 2nd Half 2019 | Bake
Slide 14: Poultry and Fresh Dairy led the way for positive revenue growth
shoultry and Fresh Dairy led the way for positive revenue growth during SARin Million a & Full Year 2018 Poultry Fresh Dairy Food Bakery Long Life Dairy ‘Fruit Juice OtherSales ‘Full Year 2019 we choll 2019 Earnings Presentation Almarai 14
Slide 15: Food services channel led the revenue growth contribution
..Whilst Food services channel led the revenue growth contribution 14,351 SAR in Million Others Full Year 2019 T T Full Year 2018 Food Service Traditional Trade Modern Trade Export 2019 Earnings Presentation
Slide 16: Enhanced by Innovation pipeline of New products in 2019
..Enhanced by Innovation pipeline of 39 New products in 2019... 2019 Earnings Presentation 16
Slide 17: Expanded range of Food Services and Export markets
..and expanded range of Food Services and Export markets... Jar Cheese 100g X6 Evaporated Milk 410g X18 Bulk Butter (Full Dairy) 26kg Block & 10g Foil Targeted route to market approach Selected product range for export markets Whole Milk & Skimmed Powder 25kg a taclhyoll Feta White Cheese 16kg Tin A
Slide 18: Our people, the source of our Success
Our people, the source of our Success Gain efficiency through a centralized Human resources operating model.
Slide 19: Financial Performance
Slide 20: Q4 Financial Performance
Q4 Financial Performance Q4 2019 vs. Q4 2018 YoY % /(YoY%) 9.5% (15.9%) Revenue EBIT Net Profit FY 2019 vs. FY 2018 5.9% (10.0%) Revenue EBIT Net Profit Revenue * Market returning to growth * Maintain market leadership in all key categories * Dairy, Poultry & Foods recorded significant growth in 24
Slide 21: Results by Segment - Full Year
Results by Segment - Full Year Revenues by Segment (SAR in Million) Dairy & [PA Juice 7 Bakery ae) Poultry cite) 267 Others fz m@ Full Year 2019 ™ Full Year 2018 Profit Margin By Segments i u ¢ Ld Dairy & EZR Juice 13.5% aren a 12.4% vouy ee m@ FullYear2019 ™ Full Year 2018 (17.7%) | Dairy &Juice ¢
Slide 22: Net Income by Segment
Net Income by Segment Basic EPS* (SAR) 1.98 1.83 2,500 5 > 2,012 (308) g 200] 81 (17) 1,812 S 43 — ta —— 5 1500 + 4000 J Full Year 2018 Dairy & Juice Bakery Poultry Other Full Year 2019 Net Sales Growth 2.9% 6.6% 18.0% 36.1% 5.9% Net Income Growth (17.7%) 22.5% 44.5% (17.7%) (10.0%) Net Income % to
Slide 23: CAPEX
CAPEX Capital Investment 2014 to 2019 (SAR in Billion) 5.0 35% 29% 30% 30% 40 25% 3.0 20% 20 15% 10% 1.0 59% 29 - 0% 2014 2015 2016 2017 2018 2019 ma Net Cash Used in Investing Activities ---Investment as a % of Net Sales * Capex cash spend continues to decline as company’s previous investment cycle
Slide 24: Free Cash Flow more than doubled in 2019
Free Cash Flow more than doubled in 2019 relative to last year Fi Cash FI AR 2.6B OCF = SAR 4.7B 48 (0.1) (2 0.5 Bio Assets 5 a (13) 2 5 10 a (0.8) : a7 (0.5) 0.3 hnmzz a be Cash 31Dec 2018 ‘Operating Cash Flow Working Capital Capex Debt Movement Investment in Time Dividend Others Cash 31 Dec 2019 (
Slide 25: Net Debt and EBIT/EBITDA Margins
Net Debt and EBIT/EBITDA Margins Almarai leverage target is to reach 2.5x-2.7x Net Debt to EBITDA in the next 2-3 years Net Debt Trend EBIT and EBITDA Margins 2017 2018 2019 2017 2018 2019 mNet Debt (SARM) Net Debt/Equity Ratio --Net Debt/ EBITDA mNet Sales (SARM) EBIT%toNetSales --EBITDA% to Net Sa
Slide 26: Debt Maturity profile highlights average debt tenure at 4.25 years
Debt Maturity profile highlights average debt tenure at 4.25 years... 40 5 Debt Maturity by Age and Type SAR Billion <1Year 1-2 Year 2-3Year 3-4 Year 4-5 Year >5 Year im Sukuk @ Govt /Semi GovtInst. im Banks 2019 Earnings Presentation
Slide 27: Key Share Data
Key Share Data Key Statistics for Almarai (31 December 2019) m Savola | Year to date total shareholder's return since listing Share Price (SAR) 49.50 ‘i 2% Current P/E Ratio (ttm) 70 a HiPrifce Sultan bin Mohammed | Earnings Per Share (SAR) (ttm) 183 PIF 7 : Market Cap (SAR Million) 49,500 |e 1% Sha
Slide 28: Q & A
Slide 29: Appendix
@ eeu0 N( = se bene a Forbes GLOBAL 2019 2000 YouGov Brandindex Appendix 2019 2019 GIFA Forbes Best Global Sukuk Programme Top Regarded companies GlobalCapital Piramsse = yg Sscaatn OS Wh % My Vivica easy YG awaros 82 We BEE eions og Neg inn = & | Rg sxeaton 6 “2019 BrandFinance’ ¥% navanws 32 2019
Slide 30: Except Juice, all categories recorded positive results
Except Juice, all categories recorded positive results Revenue By Geography - SAR in Million Revenue By Category - SARin Milion “> 3 Long Lif Dairy - Other Sales £ 3.9% | FreshDairy——__ Caclyoll 2019 Earnings Presentation 30
Slide 31: KSA still led the revenue growth by country
..KSA still led the revenue growth by country SARin Million 14,600 14,400 14.200 14,000 13,800 13,600 13,400 13,200 13,000 3 (3) 39 14,351 13,558 Full Year 2018 KSA Egypt Kuwait Jordan UAE Oman Bahrain Other Full Year 2019 Countries 2019 Earnings Presentation 3
Slide 32: Net Income Evolution by Segment by Quarter
Net Income Evolution by Segment by Quarter NET INCOME GROWTH - POULTRY QI, 2019 Q2, 2019 Q3, 2019 7 16 BH ss || YTD 3 41 Q4, 2019 40 81 J Q1, 2019 NET INCOME GROWTH- DAIRY & JUICE QI, 2019 Q2, 2019 Q3, 2019 — 7 (63) (75) YTD (76) (150) Q4, 2019 (157) (308) a @) | I YTD NET INCOME GROWTH- TOTAL 2,201
Slide 33: ,0 7.0% ,0 6.0% ,0 5.0% ,0 4.0% ,0 00 3.0% 10 ,0 00
15 ,0 00 7.0% 14 ,0 00 6.0% 13 ,0 00 5.0% 12 ,0 00 4.0% 11 ,0 00 3.0% 10 ,0 00 2.0% 9,00 0 1.0% 8,00 0 0.0%
Slide 34: Profit & Loss Statement
Profit & Loss Statement scan 4th Quarter Full Year SAR in Million 2018 2019 Change 2018 2019 Change Revenue 3,381 100.0% 3,704 100.0% 95% 13,558 100.0% 14,351 100.0% 5.9% Cost of sales (2,118) (626%) (2,410) (65.1%) (13.8%) (8,231) (60.7%) (8,985) 626%) (9.2%) Gross Profit 1,263 374% 1,294 349% 24%
Slide 35: Results by Segment
Results by Segment Almarai SAR in Million Dairy & Juice Bakery Poultry Other Activities . Consolidated Full Year 2019 Revenue 10,210 1,749 2,125 267 14,351 Depreciation and Amortisation (1,378) (251) (399) (144) (2,173) Profit Attributable to Shareholders 1,427 236 264 (115) 1,812 Percent to Revenue
Slide 36: Thank you
Zz Uncholl Almarai Thank you Almarai, Investor Relations