Savola Group · TADAWUL:2050
Savola — FY2022 Earnings Presentation
32 slides from Savola's earnings presentation, 2023
Slide 1: Savola Group Earnings Presentation FY2022
Savola Group www.savola.com Earnings Presentation | FY2022
Slide 2: Disclaimer
DISCLAIMER This presentation might contain forward-looking statements which may be identified by the use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections
Slide 3: Group Key Financial Highlights; Performance by Segment
1. Group Key Financial Highlights 2. Performance by Segment 3
Slide 4: Group - Highlights
GROUP - HIGHLIGHTS • For FY 2022, Savola Group reported overall healthy business performance across its portfolio (except the Food Services segment) despite a challenging macro environment • Foods Processing segment led with a strong growth YoY despite higher commodity Business Highlights costs and
Slide 5: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-21 Q1-22 Q2-21 Q2-22 Q3-21 Q3-22 Q4-21 Q4-22 FY-21 FY-22 +26% +17% +14% +17% -2% 7,489 6,888 7,072 24,669 28,055 5,954 5,912 6,048 6,755 6,605 Sales +9% +6% +12% +6% +12% 4,479 4,874 Gross Profit 1,212 1,285 1,116 1,248 1,149 1,128
Slide 6: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-21 Q1-22 Q2-21 Q2-22 Q3-21 Q3-22 Q4-21 Q4-22 FY-21 FY-22 +11% +22% +12% +22% -13% 2,424 2,702 781 759 689 EBITDA 641 677 564 542 474 10.8% 10.4% 11.5% 11.0% 9.3% 9.7% 8.0% 7.2% 9.8% 9.6% +76% +235% +7% +34% 94 271 743 Net Income 200
Slide 7: Group – Revenue Mix, Net Debt & Capex
GROUP – REVENUE MIX, NET DEBT & CAPEX SAR in millions Revenue by Business Revenue by Geography FY-21 FY-22 FY-21 FY-22 5% 4% 14% 14% 3% 2% 5% 9% 50% 35% 12% 42% 58% 14% 63% 69% Foods Processing Retail Food Services Frozen Food KSA Egypt Central Asia Others YoY Growth +30% -3% -5% +4% +5% +27% +119%
Slide 8: Group – Revenue & Net Income Bridge by Business
GROUP – REVENUE & NET INCOME BRIDGE BY BUSINESS Revenue Bridge by Business Net Income Bridge by Business SAR in millions SAR in millions +235% +14% 3,811 428 (161) 83 743 27 28,055 (362) (70) (20) 100 (19) 24,669 89 222 FY-21 Foods Retail Food Frozen Others / FY-22 FY-21 Foods Retail Food Frozen Sha
Slide 9: Selected Commodity Snapshots (FAO)
SELECTED COMMODITY SNAPSHOTS (FAO) FAO Food Price Index (rebased)(1) FAO Vegetable Oils Index (rebased)(2) FAO Sugar Index (rebased)(3) 143 250 140 150 130 140 200 127 120 130 150 120 125 110 110 100 100 100 90 50 90 80 80 0 70 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Feb-23 Jan-20 Jul-20 Jan-21 Ju
Slide 10: Group Key Financial Highlights; Performance by Segment
1. Group Key Financial Highlights 2. Performance by Segment 10
Slide 11: Panda Retail Company
JgbLa SAVOLA Panda Retail Company 11
Slide 12: Retail - Highlights
RETAIL - HIGHLIGHTS • Panda continued its acceleration of CXR program implementation whereby 75 stores performance were impacted in FY 2022 Key Highlights • As at Dec 2022, 45 stores have been completed with remaining expected to be completed in H1 2023 Store Count • Store count declined to 187 stor
Slide 13: Retail – Consolidated Financial Highlights
RETAIL – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-21 Q1-22 Q2-21 Q2-22 Q3-21 Q3-22 Q4-21 Q4-22 FY-21 FY-22 -15% -3% +3% +4% -5% 10,476 10,114 2,720 2,806 2,843 2,431 2,532 2,381 2,470 Sales 2,408 0% -10% +18% -2% -3% 2,339 2,341 Gross Profit 606 591 629 567 576 558 529 625 22.3% 2
Slide 14: Retail – Consolidated Financial Highlights
RETAIL – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-21 Q1-22 Q2-21 Q2-22 Q3-21 Q3-22 Q4-21 Q4-22 FY-21 FY-22 -36% -2% -6% +146% -7% 530 518 163 177 EBITDA 153 141 131 121 113 49 6.0% 5.5% 6.2% 4.7% 5.6% 5.4% 2.1% 4.9% 5.1% 5.1% 14 (35) (27) Net Income (52) (68) (66) (158) (72) (440)
Slide 15: Retail – Number of Stores
RETAIL – NUMBER OF STORES Super Hyper 128 1 126 62 0 61 (3) (1) Sep Additions Closures Dec Sep Additions Closures Dec 2022 2022 2022 2022 Total Sep-22 Dec-22 Net Selling Area Net Selling Area 575.8k m2 561.5k m2 190 187 1 (4) Sep Additions Closures Dec 2022 2022 Note: By 31th December 2022 , total o
Slide 16: Savola Foods Company
JgbLa SAVOLA Savola Foods Company ayac il Foods Jgbls SAVOLA 16
Slide 17: Food Processing – Highlights
FOOD PROCESSING– HIGHLIGHTS • During FY 2022, the Foods Processing segment witnessed strong YoY growth; demonstrating its ability to overcome challenges in the global commodity market and macro environment Key Highlights • Savola Foods Company successfully extended the powerhouse brand, “Afia”, by r
Slide 18: Food Processing – Consolidated Financial Highlights
FOOD PROCESSING – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-21 Q1-22 Q2-21 Q2-22 Q3-21 Q3-22 Q4-21 Q4-22 FY-21 FY-22 +30% +49% +53% +39% -6% 4,328 4,300 16,441 4,069 3,984 12,630 Sales 2,906 3,083 3,744 2,656 +30% +61% +18% +73% -9% 1,986 549 561 481 1,528 Gross Profit 466 436 395
Slide 19: Food Processing – Consolidated Financial Highlights
FOOD PROCESSING – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-21 Q1-22 Q2-21 Q2-22 Q3-21 Q3-22 Q4-21 Q4-22 FY-21 FY-22 +37% +58% +31% +102% -18% 1,240 377 908 EBITDA 343 239 313 253 261 207 155 9.0% 7.9% 9.0% 9.3% 5.0% 7.3% 6.4% 5.5% 7.2% 7.5% +28% +38% +56% +72% -48% 405 Net Income
Slide 20: Food Processing – Oil Segment Analysis
FOOD PROCESSING – OIL SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues FY-21 FY -22 FY-21 FY-22 +1% 1,794 1,809 YoY Growth 12,045 YoY Growth KSA +2% +35% KSA +36% Egypt +25% 28% 28% Egypt +46% Central Asia -15% 32% Central Asia +119% 8,941 Algeria +26% Algeria +24% Sudan -30% Sudan -33% 20
Slide 21: Food Processing – Sugar Segment Analysis
FOOD PROCESSING – SUGAR SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues FY-21 FY -22 FY-21 FY-22 YoY Growth -8% +10% YoY Growth 1,473 3,226 KSA -5% 1,358 2,926 KSA +12% Egypt -24% Egypt -1% 84% 85% 87% 84% 16% 13% 16% 15% Gross Profit / Ton (SAR) 154 229 Note: 1) Sugar volumes and revenue
Slide 22: Al Kabeer Group of Companies
Al Kabeer Group of Companies 22
Slide 23: Frozen Food - Highlights
FROZEN FOOD - HIGHLIGHTS • Al Kabeer maintained a healthy level of overall business performance despite the impact of global geopolitical situation that significantly increased poultry prices and Key Highlights regulatory restrictions which impact certain product categories • The company also witnes
Slide 24: Frozen Food – Consolidated Financial Highlights
FROZEN FOOD – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-21 Q1-22 Q2-21 Q2-22 Q3-21 Q3-22 Q4-21 Q4-22 FY-21 FY-22 +5% +4% +4% +4% +3% 175 184 643 670 159 165 153 160 167 Sales 149 -9% +7% -17% -17% -8% 230 211 Gross Profit 61 66 58 57 52 54 44 48 34.8% 35.5% 36.0% 31.7% 36.1% 29.0%
Slide 25: Frozen Food – Consolidated Financial Highlights
FROZEN FOOD – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-21 Q1-22 Q2-21 Q2-22 Q3-21 Q3-22 Q4-21 Q4-22 FY-21 FY-22 -23% +11% -41% -21% -43% 33 114 29 32 88 EBITDA 27 25 22 20 14 16.4% 17.3% 17.3% 13.2% 16.7% 9.3% 20.8% 11.8% 17.8% 13.1% -40% -23% +6% -23% -38% 26 81 Net Income 22 23
Slide 26: Key Focus Areas in 2023
JgbLa SAVOLA Key Focus Areas in 2023 26
Slide 27: Key Focus Areas in 2023
Key Focus Areas in 2023 Retail Food Frozen Food Processing ▪ Expect completion of ~75 stores under ▪ Maintain leadership in core categories ▪ Continue building capabilities within CXR program during H1 2023 (edible oil and sugar) the company with core focus on innovations ▪ LFL is expected to witnes
Slide 28: Financial Summary
JgbLa SAVOLA Financial Summary 28
Slide 29: Financials Summary – FY 2022
FINANCIALS SUMMARY – FY 2022 (All figures are in SAR millions) Segment Wise Financials FY - 22 FY - 21 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Food Processing* Oil-Mature Markets 9,548 1,266 672 290 787 6,429 1,028 459 229 567 Oil-Other Markets** 2,038
Slide 30: Appendix
Appendix 30
Slide 31: Food Processing – New Product Development and Innovation
FOOD PROCESSING – NEW PRODUCT DEVELOPMENT AND INNOVATION Savola Foods Company’s recent innovations includes launch of 25 new B2C product developments and 11 new B2B products. A few of those innovations are presented here. Afia Corn Plus KSA 5 “immunity boost” Oil Formulae Rawabi Eshta (Egypt) Al Mal
Slide 32: Thank you
Jgola SAVOLA Thank you vola.com 2.