Savola Group · TADAWUL:2050
Savola — Q4 2020 Earnings Presentation
30 slides from Savola's earnings presentation, 2021
Slide 1: Savola Group Earnings Presentation Q4 2020
Savola Group www.savola.com Earnings Presentation | Q4 2020
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: Key Management Highlights for 2020
KEY MANAGEMENT HIGHLIGHTS FOR 2020 • Strong performance across majority of segments in 2020, except for foodservices Business Highlights • In KSA, strong H1 followed by pronounced impact of VAT, allowance cuts and expat exodus in H2 • In Foods, earnings quality improved, despite a volatile commodity
Slide 4: 2020 Key Financial Highlights
2020 KEY FINANCIAL HIGHLIGHTS SARmn (unless otherwise stated) Margin Net Debt to Liquid Investments Revenue* Gross Profit EBITDA FY 2020 21,700 FY 2020 4,636 21.4% FY 2020 2,824 13.0% FY 2019 21,406 1.4% FY 2019 4,504 21.0% 2.9% FY 2019 2,583 12.1% 9.3% Income from associates Net Income Net Debt** F
Slide 5: KSA - Macroeconomic Highlights
KSA - MACROECONOMIC HIGHLIGHTS Combined PoS and Cash Withdrawals, SAR bn Saudi Unemployment Rate 120 Pre-VAT increase 40% COVID-19 Global Pandemic 100 15.4% 80 0% 14.9% Total PoS and Cash Withdraws 60 12.5% 12.3% declined by 4% in 12.0% 12.0% 11.8% 2020 compared 40 -40% to last year 20 0 -80% Jan Fe
Slide 6: Selected MENA and Commodities Overview
SELECTED MENA AND COMMODITIES OVERVIEW Real GDP, % change Selected Currency Highlights (rebased) Egypt Turkey Central Asia 160.0 Turkish Lira Iran Rial Egyptian Pound 140.0 5.6% 120.0 0.9% 100.0 80.0 3.5% 60.0 Central Asia in 40.0 Hyperinflation 20.0 -5.0% -5.0% -6.5% Real GDP, % change Mar-20 Jan-2
Slide 7: Savola Group
gla SAVOLA Savola Group
Slide 8: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 Q3-19 Q3-20 Q4-19 Q4-20 FY-19 FY-20 +3% +1% +14% -11% -1% 21,406 21,700 5,923 5,813 6,007 5,148 5,232 5,183 Sales 5,214 4,587 +3% +10% -10% +15% -2% 4,504 4,636 Gross Profit 1,223 1,163 1,279 1,084 1,064 1,192 1
Slide 9: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 Q3-19 Q3-20 Q4-19 Q4-20 FY-19 FY-20 +31% +9% +37% -23% 0% 873 2,583 2,824 EBITDA 693 664 724 725 691 505 534 9.7% 11.7% 11.4% 14.5% 14.1% 15.8% 13.2% 10.3% 12.1% 13.0% +91% +272% +28% -67% 410 911 284 137 Net In
Slide 10: Implications of Exceptional Items
SAR in millions 2019 2,583 Reported EBITDA Store Closure & 18 Project Write-off IFRS16 Net Impact FY 2019 (705) 2019 1,897 Adjusted EBITDA 2020 2,824 Reported EBITDA Adjusted EBITDA Store Closure & 7 +13% Project Write-off FY 2020 IFRS16 Net Impact (697) 2020 Adjusted EBITDA 2,135 IMPLICATIONS OF EX
Slide 11: Group – Revenue Mix, Net Debt & Capex
GROUP – REVENUE MIX, NET DEBT & CAPEX SAR in millions Revenue by Business* Revenue by Geography FY-19 FY-20 FY-19 FY-20 6% 5% 10% 3% 3% 6% 10% 39% 9% 10% 3% 42% 49% 53% 75% 77% Food Processing Retail Food Services Frozen Food KSA Egypt Central Asia Others Net Debt and Net Debt to Liquid Assets (%)**
Slide 12: Panda Retail Company
JgbLa SAVOLA Panda Retail Company 12
Slide 13: Retail - Highlights
RETAIL - HIGHLIGHTS • H1 2020 was positively impacted by increased demand for groceries driven by lockdowns and preference for in-house dining, along with pre-VAT buying Key Highlights • H2 2020 was negatively impacted by increased pressure on consumers income, wave of expat exodus and pre-VAT buyin
Slide 14: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 Q3-19 Q3-20 Q4-19 Q4-20 FY-19 FY-20 +14% +9% +24% -1% -1% 10,660 11,613 3,099 3,042 3,463 2,559 2,527 2,562 2,525 Sales 2,497 +12% +30% +4% +27% -9% 2,544 2,838 814 612 637 752 Gross Profit 705 624 682 557 22.3% 22.8% 20.5%
Slide 15: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 Q3-19 Q3-20 Q4-19 Q4-20 FY-19 FY-20 240 378 231 225 320 1,004 117 238 118 191 752 EBITDA* 66 135 30 160 491 49 25 244 (26) 2.6% NA 7.8% 3.8% 4.4% 1.0% 10.9% 6.9% 9.0% 1.9% 8.9% 4.7% 12.5% 7.5% 6.4% 1.0% 7.1% 2.3% 8.6% 4.2%
Slide 16: Retail – Number of Stores
RETAIL – NUMBER OF STORES Super Hyper Store converted to fulfillment center 1 145 145 60 60 (1) Dec Additions Closures Dec Dec Additions Closures Dec 2019 2020 2019 2020 Total Dec-19 Dec-20 Selling Area 1 Selling Area 205 205 634,399 m2 628,189 m2 (1) Dec Additions Closures Dec 2019 2020 Note: the t
Slide 17: Savola Foods Company
gla SAVOLA Savola Foods Company ayac il Foods Jgbls SAVOLA 17
Slide 18: Foods - Highlights
FOODS - HIGHLIGHTS • The performance of our foods segment improved over last year, despite pressure on Key Highlights volumes from the B2B channel and on revenues from currency and commodity impact • The segment witnessed an improvement in quality of earnings, compared to last year • Volume has decl
Slide 19: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 Q3-19 Q3-20 Q4-19 Q4-20 FY-19 FY-20 +3% -6% -5% -24% +1% 2,350 9,209 8,644 2,408 2,476 2,230 2,185 2,266 2,285 Sales 1,653 -4% -16% +3% +2% -6% 1,345 1,287 367 375 382 359 318 268 278 286 Gross Profit 15.2 15.2% 16.2% 16.1%
Slide 20: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 Q3-19 Q3-20 Q4-19 Q4-20 FY-19 FY-20 +6% +6% +3% +9% +7% 741 785 EBITDA 215 228 167 172 152 165 207 221 8.6% 8.9% 9.2% 10.2% 7.6% 10.4% 6.7% 7.2% 8.0% 9.1% +51% +81% +39% +152% +5% 106 292 311 Net Income* 112 75 76 55 206 70
Slide 21: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues FY-19 FY-20 FY-19 FY-20 -4% -7% 1,585 5,969 6% 1,514 6% 5,566 Morocco +3% 4% 6% 4% Morocco +6% 7% Sudan +49% 11% 6% Sudan +70% 11% 8% Algeria -2% 12% Algeria -12% 11% 11% Turkey -12% 13% Turkey -12% 10% Central Asia -22% 12% Cent
Slide 22: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues FY-19 FY-20 FY-19 FY-20 -8% -9% 1,408 2,546 Egypt -22% 12% 1,298 2,329 Egypt -20% 14% KSA -6% KSA -7% 10% 12% 88% 86% 90% 88% Note: Sugar volumes and revenues include only the contribution from our consolidated sugar operations
Slide 23: Al Kabeer Group of Companies
Al Kabeer Group of Companies 23
Slide 24: Frozen Food - Highlights
FROZEN FOOD - HIGHLIGHTS • The frozen food segment witnessed healthy growth driven by increased consumer Key Highlights demand and preference for the category in light of the COVID-19 pandemic impact • Revenues increased by 23% reaching SAR 762 mn in 2020 compared to SAR 620 mn last year, on an adju
Slide 25: Frozen Food – Al Kabeer Financial Highlights
FROZEN FOOD – AL KABEER FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 Q3-19 Q3-20 Q4-19 Q4-20 FY-19 FY-20 +16% +23% +49% +27% +7% * * 211 737 762 192 182 181 179 620 Sales 129 142 167 153 Q4-20 FY-20 Adjusted* Adjusted* +30% +38% +51% +38% +2% 266 292 96 66 62 64 224 Gross Prof
Slide 26: Frozen Food – Al Kabeer Financial Highlights
FROZEN FOOD – AL KABEER FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 Q3-19 Q3-20 Q4-19 Q4-20 FY-19 FY-20 +39% +96% +77% -5% +12% 52 141 EBITDA 29 35 33 102 23 26 27 17 18.2% 13.6% 14.7% 24.8% 11.7% 16.3% 21.0% 21.8% 16.4% 19.2% +59% +108% +68% +43% +12% 107 42 20 24 Net Income
Slide 27: Financial Summary
gla SAVOLA Financial Summary 27
Slide 28: Financials – FY 2020
FINANCIALS – FY 2020 (all figures are in SAR millions) Segment Wise Financials FY2020 FY2019 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Food* Oil-Mature Markets 4,174 794 379 235 469 4,690 888 359 212 447 Oil-Start-up Markets** 1,392 156 74 33 88 1,279 12
Slide 29: Investor Relations Application
Investor Relations Application Views Savola Group share price, charts and performance on the go Savola Group Annual & Quarterly figures Savola Group News releases from Tadawul Annual/Quarterly Reports accessible offline http://www.myirapp.com/savola/ 29
Slide 30: Thank you
JQGoOla SAVOLA Thank you vola.com 30