Almarai Company · TADAWUL:2280
Almarai — FY2021 Earnings Presentation
45 slides from Almarai's earnings presentation, January 2022
Slide 1: Earnings Presentation - FY 2021
Za CiclhoJl Almarai Almarai® Company Earnings Presentation - FY 2021
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: Earnings Presentation
Earnings Presentation Market Dynamics Business Performance
Slide 4: Market Dynamics
Slide 5: Almarai response to covid-19 Pandemic
Almarai response to covid-19 Pandemic * KSAand GCC travelrestrictionsstillin place, but relaxing. ¢ Vaccinationrates continue to be high across GCC. * KSAhas restricted access to workplaces for unvaccinated employees. * Omicronvariant spreading in GCC. Crisis Management Team monitoring the situation
Slide 6: celholl
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Slide 7: Leadership in KSA category market share
Dec-19 Dec-20 Nov-21 Category Almarai Value | Almarai Value | Almarai Value Share % Share % Share % 65 64 64 67 65 65 21 20 21 39 37 34 43 42 47 54 53 54 34 32 Laban Fresh Milk are Leadership in KSA UHT Milk Food Juice Bakery Poultry (Fresh Chicken) Earnings Presentation - Q4 2021 7
Slide 8: Business Performance
Business Performance Earnings Presentation
Slide 9: 4,500 0% 0% 4,000 0% 0 5 00 3 50 0 0% 2 50
4,500 5 00 0 0% 4 00 4 50 0 0% 6 00 3 50 4,000 4 00 0 0% 3 00 5 00 3 50 0 0% 2 50 3,500 3 00 0 0% 4 00 2 50 0 0% 2 00 3 00 3,000 2 00 0 0% 1 50 1 50 0 0% 2 00 1 00 2,500 1 00 0 0% 1 00 50 5 00 0 % 2,000 0% 0 0 -5 0 -1 00 -1 00 -2 00 3 ,50 0 0% 7 00 4 00 0 0% 1 ,00 0 0% 9 00 -5 00 % 3 50 0 0% -1 00 0
Slide 10: Q4 2021 Sales Bridge
Q4 2021 Sales Bridge 3,820 SAR Million Reported Growth 11% | Q4 2020 Volume 4% 4,257 (0%) 2% 1% Pe | Like-for-like growth 7% Price Mix Currency Others Q4 2021 YoY %/ (YoY%) Earnings Presentation - Q4 2021 10
Slide 11: Almarai topline growth by country
Almarai topline growth by country... Q4 2021 Revenue Growth (SAR Million) KSA Others Total Revenue 2,719 684 4,257 % of Revenue 64% 16% 100% Growth 252 67 119 438 Growth % 10% 21% 11% Yovse/(VoYss) Earnings Presentation - Q4 2021 Almarai ,,
Slide 12: Rebounding growth in GCC for the 4th Quarter
stronger than expected rebounding growth in GCC for the 4" Quarter except Bahrain. Q4 2021 Total Revenue - SAR 4,257 Million Q4 2021 Total Growth- SAR 438 Million or 11% YoY %/(YOY%) 10% 16% 18% 2% 6% 28% (1%) 21% 252 & z 53.49 33 38 3 Te KSA UAE Egypt Kuwait Oman Jordan Bahrain Others Total 12020 8
Slide 13: Growth by all product categories
nby all prod Q4 2021 Total Revenue - SAR 4,257 Million Q4 2021 Total Growth- SAR 438 Million or 11% Other YoY %/(YOY%) Sales Fresh Dairy 12% 7% 8% 22% 12% 7% 17% — 36% 169 Fruit Juice_ 3% 9% Long Life Dairy SAR Million 94 47 48 10% Fresh Dairy Food Poultry Bakery LLD* —FruitJuice OtherSales Total 12
Slide 14: Growth across all channels
..and all channels with Food service still gaining its m Q4 2021 Total Revenue - SAR 4,257 Million Q4 2021 Total Growth- SAR 438 Million or 11% YoY %/(YOY%) r Other / Exports | 9% 1% 8% 33% 75% 174 Traditional 166 Trade & Food 52% z 73 Service ° 24 || 16% —_ Traditional Trade Modern Trade Food Servi
Slide 15: Financial Performance
Slide 16: Financial Performance Q4 2021
Slide 17: Financial Performance - Q4 2021
ncial Performance - Q4 2021 Q4 2021 vs. Q4 2020 Revenue - Return to Growth... * Growth across the board was resurgent, across all channels, products and countries (except Bahrain) * Fresh dairy segment led the growth driven by normalized trading conditions post covid-19 and pricing adjustment. Baker
Slide 18: Net Income Bridge - Q4
Net Income Bridge - Q4 20 SAR Million 336 Q4 2020 Earnings Presentation - Q4 2021 76 i (208) 31 i Es H i 37 Market Trend | Economical & ' External i Factor Volume Favorable mix Net price Commodity Funding and mainly due to price and others Bakery products alfalfa 287 Q4 2021 18
Slide 19: Results by Segment - Q4 2021
Results by Se nt - Q4 2021 Dairy &Juice Revenue by Segment SAR Million Stronger fresh dairy sales in KSA & long life dairy sales in Egypt, Jordan & Export markets. Food and Juice also recorded positive Dairy & growth, driven by a general positive economic effect Juice « Lower subsidy year on year as
Slide 20: Financial Performance
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Slide 21: 7,0 ,80 %) 5,0 (1 0,0 0% ) ,30 0 2 ,50 0 1
1 7,0 0 0 60 0 2 ,80 0 0 %) 1 5,0 0 0 50 0 (1 0,0 0 0% ) 2 ,30 0 2 ,50 0 1 3,0 0 0 40 0 (2 0,0 0 0% ) 1 ,80 0 2 ,00 0 1 1,0 0 0 30 0 (3 0,0 0 0% ) 1 ,50 0 9 ,00 0 1 ,30 0 20 0 (4 0,0 0 0% ) 7 ,00 0 1 ,00 0 8 00 10 0 (5 0,0 0 0% ) 5 ,00 0 5 00 3 ,00 0 - 3 00 (6 0,0 0 0% ) 0 -5 00 -1 ,00 0 1 ,60 0 4 5
Slide 22: Financial Performance - 2021
Financial Performance - 2021 Full Year 2021 vs. Full Year 2020 Revenue - Exiting the year at normal trading conditions... * Fullyear growth was driven by Egypt, other sales (infant nutrition export and crop sales) and Jordan * Food category recorded 8% decline yoy due to de-stocking effect of higher
Slide 23: Net Income Bridge - 2021
Net Income Bridge - 2021 1,984 (108) (79) 125 (153) a — a (420) : : 149 1,564 | : | | 5 Market Trend i Economical & i External Factor 2020 Volume Unfavorable Mix Net price Reductionin Commodity Improvement Funding and 2021 driven by subsidy price and inIDJ others channel and (Poultry & alfalfa perfo
Slide 24: Revenue by Segment 2021
2021 Revenue by Segment SAR Million Dairy &Juice Strong growth in Dairy and Juice was off set by decline in food Dairy& QRPU Juice Ey bakery products due to base effect of higher food purchases during covid-19 + Lower subsidy yoy as subsidy ceased on non-green dairy feed * Higher feed expenses due t
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3 ,70 0 0% 3 ,20 0 -1 00 0 0% 2 ,70 0 -2 00 0 0% 2 ,20 0 -3 00 0 0% 1 ,70 0 -4 00 0 0% 1 ,20 0 -5 00 0 0% 7 00 -6 00 0 0% 2 00 -3 00 -7 00 0 0% 1 ,60 0 4 50 0 0% 4 00 0 0% 1 ,40 0 3 50 0 0% 1 ,20 0 3 00 0 0% 1 ,00 0 2 50 0 0% 2 00 0 0% 8 00 1 50 0 0% 6 00 1 00 0 0% 4 00 5 00 0 % 2 00 0% 3 ,50 0 3 50
Slide 26: Strategic Management of Working Capital
Strategic Management of Working Capital 20% 19% —~O— 10% 9% 10% E ~ ° = Cc < n 1,383 1,318 1,329 2,689 2,668 2,609 2015 2016 2017 2018 2019 2020 2021 maWorking Capital --Working Capital as a % of Revenue clo Earnings Presentation - Q4 2021 Almarai 5,
Slide 27: CAPEX continues to trend lower
APEX continuous to trend lower Capital Investment 2015 to 2021 SAR Million 29% 30% 20% JA 11% 6% 3,986 4,389 2,844 1,923 1,650 | 969 | 1,364 2016 2017 2018 2019 2020 -e-Investment as a % of Revenue 2015 ma Net Cash Used in Investing Activities 9% 2021 Capex cash spend continues to decline in line wi
Slide 28: Free Cash Flow remains strong
Free Cash Flow remains Free Cash Flow = SAR 3.1B 43 0.6 (1.8) (1.8) - De EE 0.6 Bio Assets, . LI mm (02) ; SAR Billion Gash 0.6 Cash » ; 05 End of 2020 Liquidity |Operating Cash Flow Working Capital Capex Net Payment for Dividend ‘Others Funding Cost and Debt SAR 0.1 Billion > 2021 Free Cash Flow =
Slide 29: Continues Improvement in Free Cash Flow
Continues Improvement in Free Cash Flow Free Cash Flow 2015 to 2021 18% 18% 20% 5 4% = Cc < n 523 1,304 1,332 (509) 2015 2016 2017 2018 2019 2020 2021 maFree Cash Flow -e-Free Cash Flow as a % of Revenue SS cncloll Earnings Presentation-Q4 2021 Almarai 5,
Slide 30: Net Debt and EBITDA/EBIT Margins trend
Net Debt and EBITDA/ EBIT Margins trend Net Debt Trend EBITDA and EBIT Margins 3.2x 30% — 30% 2x 26x a 2018 2019 2020 2021 2018 2019 2020 2021 Net Debt(SARM) Net Debt/Equity Ratio Net Debt / EBITDA mRevenue (SAR M) EBITDA % to Revenue EBIT % to Revenue * Net of Time Deposit cachol Earnings Presentat
Slide 31: Debt Maturity Profile highlights average debt tenure at 3.5 Years
Debt Maturity Profile highlights average debt tenure at 3.5 Years SAR Billion Up to1 Yr Debt Maturity by Age and Type 1-2Yrs mBanks =m Govt/ Semi Govt Inst. 10.7) 1.9 0.2 os 0.3 . 1.0 2-3Yrs 3-4 Yrs 4-5Yrs g Islamic Bonds >5Yrs @ Banks 16% ®@ Govt / Semi Govt Inst. m Islamic Bonds Earnings Presentat
Slide 32: Cash Dividends Since Listing
Cash Divid Since Listing SAR Million oe i mL. 720 2011 2012) 2013 2014 2015 2016 2006 2007 2008 2009 2010 maCash Dividends Payout Ratio * B4% 750 2017 2 ew 850 850 2018 2019 2020 2021 Earnings Presentation - Q4 2021 32
Slide 33: Appendix
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Slide 34: Almarai
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Slide 35: Revenue by Geography and by Category - Q4
Revenue by Geography and by Categ SAR Million Revenue By Geography Revenue By Category Bahrain Others Fruit Juice Other Sales 88 378 143 Jordan 2% 9% 3% 148 4% Long Life Dairy, 441 l 1 I I I ! ! ! ! I I I I 10% I I Fresh Dairy . I Kuwait I Bakery 1,548 199 | 529 36% 5% Q4 2020 042021 I Q4 2020 Q4202
Slide 36: Revenue by Geography and by Category - 2021
Revenue by Geography and by Category - 2 SAR Million Revenue By Geography ; Revenue By Category 1] i] Bahrain Others | FruitJuice I 1,510 Other Sales | 10% 618 1] 4% 1 I Long Life Dairy if t 1,634 | 10% ” I Fresh Dairy H 5,723 H 36% | Bakery 2020 1 1,789 | 11% Foods 1 2,274 1 Poultry i "381 65% 2,30
Slide 37: Sales Bridge - 2021
Sales Bridge - 2021 SAR Million 15,357 2020 Reported Growth 321 b.p. re 15b.p. Like-for-like growth 110 b.p. 145 b.p. (50) b.p. (5) bp. Volume Price Mix Currency Others 2021 Earnings Presentation - Q4 2021 37
Slide 38: Full Year 2021 Revenue Growth
Full Year 2021 Revenue Growth one Other (SAR Million) KSA Others Total GCC Revenue 10,223 3,121 2,506 15,850 % of Revenue 64% 20% 16% 100% Growth 633 493 x & Growth % 1% -2% 34% 3% (clyoll YoY %/ Almarai Earnings Presentation - Q4 2021
Slide 39: Growth by Geography - 2021
Growth by Geography - 2021 Full Year 2021 Total Revenue - SAR 15,850 Million Full Year 2021 Total Growth- SAR 493 Million or 3% (1%) (1%) 29% = (3%) (6%) 39% (0%) 39% 283 8 154 196 5 = (63) (13) (21) (42) | (1) ° = — — —_ a KSA UAE Egypt Kuwait Oman Jordan Bahrain Others Total Full Year 2020 6% 2% 1
Slide 40: Growth by Product Category - 2021
owth by Product Category - 2021 Full Year 2021 Total Revenue - SAR 15,850 Million Full Year 2021 Total Growth- SAR 493 Million or 3% Fruit Juice Long Life Dairy. 10%. Other Sales 4% Foods 14% 4% (8%) 222 Fresh Dairy 36% 0% 4% 10% 4% 44% 190 LJ a WW 62 oo se on ——— | || g c > Fresh Dairy Food Poultry
Slide 41: Growth by Channel - 2021
owth by nnel - 2021 Full Year 2021 Total Revenue - SAR 15,850 Million Full Year 2021 Total Growth- SAR 493 Million or 3% Other / Exports Food 9% Service 13% Traditional (3%) (6%) 28% 53% Trade 470 516 ™ i “ _ ] a S c a. Traditional Trade = Modern Trade Food Service Other/Exports Total Full Year 2020
Slide 42: Profit & Loss Statement
t-20 Profit & Loss Statem a 4th Quarter Full Year SAR Million 2021 2020 Change 2021 2020 Change Revenue 4,257 100.0% 3,820 100.0% 11.5% 15,850 100.0% 15,357 100.0% 3.2% Cost of sales (3,065) (72.0%) (2,587) (67.7%) (18.5%) (10,790) (68.1%) (9,821) (64.0%) (9.9%) Gross Profit 1,193 28.0% 1,232 32.3%
Slide 43: Results by Segment
Results by Seg t- 202 Al SAR Million Dairy & Juice Bakery Poultry Ot maral Consolidated Full Year 2021 Revenue 11,141 1,789 2301 618 15,850 Profit Attributable to Shareholders 1,215 218 215 (84) 1,564 Percent to Revenue of Profit Attributable to Shareholders 10.9% 12.2% 9.3% na 9.9% Growth versus 20
Slide 44: Key Share Data
are Data Key Key Statistics for Almarai (31 December 2021) Share Price (SAR) 48.75 Current P/E Ratio (ttm) 31.18 Earnings Per Share (SAR) (ttm) 1.56 Market Cap (SAR Million) 48.750 Shares Outstanding (Million) 1,000 Dividend Yield 2.05% ‘Share Price Trend (Listing Date of Almarai Company) Amaral =TA
Slide 45: Thank you
Thank you Earnings Presentation - Q4 2021