Almarai Company · TADAWUL:2280
Almarai — FY2015 Earnings Presentation
23 slides from Almarai's earnings presentation, 2016
Slide 1: Almarai Company 2015 Earnings Presentation
Almarai Company 2015 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
Sa CncloJl Almarai ee ee Business Highlights
Slide 4: Highlights – Full Year 2015
Highlights – Full Year 2015 • Robust growth across all key products except cheese and within all geographical markets except Jordan • Market share gains across all products categories except UHT Milk • Successful launch of 15 new products • Reducing poultry segment losses by nearly 50% but still mor
Slide 5: Impact of increase in energy costs on Almarai
Impact of increase in energy costs on Almarai Impact As announced earlier, the expected direct impact of increase in energy costs on Almarai is ~200M SAR and the indirect impact is expected to be ~100M SAR. In addition, the expected impact of gradual move towards 100% importation of feed by 2019 wil
Slide 6: Highlights – Full Year 2015
Highlights – Full Year 2015 Sales Revenue EBITDA Net Income 2015 2015 2015 SAR 13.8 B SAR 3.3 B SAR 1.9 B 2014 2014 2014 2013 SAR SAR12.6 B B 11.2 +9.4% +12.4% SAR 3.0 B +10.7% SAR 1.7 B +14.4% Operating Cash Flow Capital Expenditure Free Cash Flow 2015 2015 2015 SAR 4.9 B SAR 523 M SAR 4.0 B 2014 2
Slide 7: Innovation pipeline for 2015
Innovation pipeline for 2015 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Almarai Company 2015 Q4 Earnings Presentation 7
Slide 8: Sales growth was funded by continued investment in key categories
Sales growth was funded by continued investment in key categories Capex spend for the year 2015 was 4.0 B SAR which is inline with our annual capex run rate. • Manufacturing and Farming spent Capex of ~2.1 B SAR for various capacity expansion projects. • Replacement and other capex including IDJ a
Slide 9: Sales Highlights
Sa incl ol Almarai ee a Sales Highlights
Slide 10: Sales Analysis by Segment by Product
Sales Analysis by Segment by Product Total Sales 13.8 Revenue (+1.2) +9.4% Dairy & Juice Bakery Poultry Others Sales Revenue 10.7 (78%) 1.6 (12%) 1.3 (9%) 0.2 (1%) By Segment (+ 0.8) (+0.1) (+0.2) (+0.0) +8.5% +6.1% +23.4% +11.9% Sales Revenue Fresh Dairy Long-Life Dairy Fruit Juice Cheese & Butter
Slide 11: Sales Analysis by Region by Country
Sales Analysis by Region by Country Total Sales 13.8 Revenue (+1.2) +9.4% KSA Other GCC Countries Other Countries Sales Revenue 8.8 (64%) 3.7 (26%) 1.3 (10%) By Region (+0.8) (+0.3) (+0.2) +8.5% +10.3% +13.5% Sales Revenue By Country KSA UAE Oman Qatar Kuwait Bahrain Egypt Jordan Others 8.8 (64%) 1.
Slide 12: Statement of Income
Statement of Income Full Year SAR million 2015 2014 Change Sales 13,795 12,606 9.4% Cost of sales (8,511) (8,013) 6.2% Gross Profit 5,283 4,593 15.0% Selling and Distribution Expenses (2,612) (2,246) 16.3% General and Administration Expenses (409) (349) 17.3% Operating Income 2,262 1,998 13.2% Share
Slide 13: Operating Performance
Full Year Results Operating Performance Gross Profit Operating Income Net Income in million SAR in million SAR in million SAR % to Sales 36.4% 38.3% 15.8% 16.4% 13.3% 13.9% 5,283 1,916 2,262 4,593 +691 1,998 1,674 +241 +264 Full Year Full Year Full Year Full Year Full Year Full Year 2014 2015 2014 2
Slide 14: Net Income by segment
Full Year 2015 Results Net Income by segment: Net Income % 13.3% 13.9% Basic EPS (SAR) 2.72 3.13 183 75 1,916 55 -77.7% 1,674 78 +46.1% +36.2% +3.9% SAR Million Full Year 2014 Dairy Bakery Poultry Other Full Year 2015 Almarai Company 2015 Q4 Earnings Presentation 14
Slide 15: Segment Reporting
Segment Reporting Full Year Dairy & Other Almarai SAR Million Bakery Poultry Juice Activities Consolidated Sales 10,741 1,626 1,262 166 13,795 Depreciation (1,030) (168) (304) (86) (1,588) Net Income 2,096 205 (214) (171) 1,916 Net Income % to Sales 19.5% 12.6% (17.0%) (103.3%) 13.9% Total Assets 17
Slide 16: Cash Flow Bridge
Cash Flow Bridge 1,522 (4,409) 4,932 Loans Issues / Payments / Charges (599) Capex / (204) 2,039 Biological Assets Dividend Others 797 Operating Cash Flow +439 m SAR 523 m Cash at 31 Cash at 31 Net Free Cashflow Dec 2014 SAR 1,242 m Dec 2015 Almarai Company 2015 Q4 Earnings Presentation 16
Slide 17: Net Debt…absolute value is growing but moving within well defined measures
Net Debt…absolute value is growing but moving within well defined measures 10,000 350% 3.1x 9,000 3.0x 2.8x 2.8x 300% 2.7x 8,000 7,000 2.3x 2.2x 250% 6,000 SAR million 200% 5,000 150% 4,000 98% 101% 3,000 100% 72% 74% 75% 75% 74% 2,000 50% 1,000 3,869 4,606 6,653 8,237 8,053 8,762 9,344 0 0% 2009 20
Slide 18: Quarterly Performance – Net Income
Quarterly Performance – Net Income 2015 versus 2014 = 14.4% Q3 = 10.3% 600 Q2 = 22.4% Q4 = 13.0% 500 400 Q1 = 12.0% * SAR Million 300 595 539 530 484 476 450 433 430 428 425 398 200 380 373 369 363 349 343 306 287 286 284 274 255 249 242 235 234 100 197 0 * Capital gain of SAR 47m in 2012 Almarai Co
Slide 19: EBIT and EBITDA margins are starting to improve
EBIT and EBITDA margins are starting to improve…… Revenue, EBITDA and EBIT Evolution CAGR 2009 – 2015: 15.3% (w/o impact of acquisitions 10.7%) 26.7% 27.2% 25.6% +66 Base Point 24.2% 24.4% 24.2% 23.5% 21.8% 21.1% 13,795 19.1% 12,606 11,219 +93 Base Point SAR Million Revenues 16.9% 16.0% 16.4% EBIT %
Slide 20: Key Share Data
Key Share Data Key Statistics for Almarai (31 Dec 2015) Share Price (SAR) 78.24 Current P/E Ratio (ttm) 25.29 Earnings Per Share (SAR) (ttm) 3.09 Market Cap (M SAR) 46,944 Shares Outstanding (M) 600 Dividend Indicated Gross Yield 1.47% Almarai Company 2015 Q4 Earnings Presentation 20
Slide 21: Future Strategy
Sa incl,oJl Almarai ee a Future Strategy
Slide 22: Key Objectives Going Forward
Future Strategy Key Objectives Going Forward 1. Quality you can trust 2. Defend the Fort – ensure the core business of Almarai (Dairy, Juice, Foods, Bakery) continues to deliver above market performance 3. Turn the not yet performing assets into profit, target to achieve cost of capital • Poultry •
Slide 23: Thank you
DOWNLOAD OUR IR APP Almarai MylRApp = : ‘Our new imestor Relations apps now aloe on Tunes App store nd Google Play store! note Download ihe app on your smariphone cr abet today. Almarai Investor Relations IR Awards 2014 Best Company for Investor Relations - Saudi Arabia SA Alnor CncloJl > Almarai —_