Slide 1: Analysts & Investors Call H1'21 Results
Analysts & Investors Call H1’21 Results 10 August 2021
Slide 2: Disclaimer – Forward Looking Statements
DISCLAIMER – FORWARD LOOKING STATEMENTS Agthia Group PJSC and its management may make certain statements that constitute “forward-looking statements” with respect to the financial condition, results of operations and business of the Group. These statements can be identified by the fact that they do
Slide 3: H1 2021 Operational Highlights
H1 2021 | OPERATIONAL HIGHLIGHTS ❑ Delivering on our Strategy pillars: Growth Efficiency Capability • Expanded into value-add categories via the • Recognized AED 25 MN in cost • Accelerated our transformation via consolidation of 3 companies: Al Foah dates savings (12.5% of 5-years target) establish
Slide 4: H1 2021 Financial Highlights
H1 2021 | FINANCIAL HIGHLIGHTS Revenues (AED MN) H1 2021 1,318 Revenues 21.0% • Sustainable leadership position across key H1 2020 1,090 categories EBITDA (AED MN) • Growth largely driven by the consolidation of Al Foah, Al Faysal & Nabil Foods H1 2021 164 12.5% 241 bps H1 2020 110 10.1% Profitabili
Slide 5: Group Sales Performance
GROUP SALES PERFORMANCE Categories Geographies Channels + 5-gallons HOD + UAE: 5 gallons, Dairy + Food service (HORECA) + Food + KSA + E-commerce + Int’l Bottled Water + Kuwait + Turkey - UAE Bottled Water + Egypt - Retail - Flour - CSD (Municipality) - Beverages - UAE: Bottled Water & Beverages, Ba
Slide 6: Water & Beverage | Growth by Category
WATER & BEVERAGE | GROWTH BY CATEGORY Volume1 by category (MN) UAE - WATER • HOD: healthy growth on gaining new customers • BW: lower volume impacted by lower sales in Q1 2021 which lagged a strong pre-COVID Q1 2020. In 55 52 Q2 2021, higher sales versus Q2 2020 were driven 38 38 by the recovery in
Slide 7: Water | Dive into UAE Bottled Water
WATER | DIVE INTO UAE BOTTLED WATER Retail channel analysis Volume share % Value share % Total Agthia Al Ain Comp 1 Comp 2 Comp 3 Bayan Alpin MAT'20 MAT'21 Voss MAT'20 MAT'21 • Defensive market share- total Agthia, 27.4% volume and 24.7% value (MAT’21) • Al Ain Water leadership position sustains at
Slide 8: Food | Growth by Category
FOOD | GROWTH BY CATEGORY Volume1 by category (MN) In H1 2021, we consolidated each of Al Foah, Al Faysal & Nabil Foods under the Food category. Al Foah dates (Jan 1st 2021) 69 • Consolidation of Al Foah since Q1 2021 contributed 45 AED 187mn to total Food segment top-line • Impacted by Q2 seasonali
Slide 9: Agri | Growth by Category
AGRI | GROWTH BY CATEGORY Volume1 by category (MN) Flour • Lagging last year sales which was driven by a one- time World Food Program order and wheat trading • UAE domestic market sales in line with last year 420 359 234 231 188 Animal Feed 125 • Higher non-subsidized sales overcompensating for lowe
Slide 10: Financial Performance
Financial Performance 10
Slide 11: Segmental Divisions
SEGMENTAL DIVISIONS H1 2021 Revenues1 – AED 1.32 BN y/y growth by category • +170% post Al Foah, Al Faysal in 170% Q1 & Nabil in Q2 • -10% standalone on lower sales Feed from trading items vs last year’s AED 258 MN overstocking 20% W&B AED 390 MN 30% Flour AED 205 MN 15% Food* 21% 7% AED 465 MN 35%
Slide 12: Gross Profit Margin
GROSS PROFIT MARGIN Quarterly Gross Profit Margin % Year on Year GPM: • Lower overall group margins in Q2 2021 of 28.5% vs 31.4% in Q2 2020 on higher grain costs impacting 32.7% agri GPM and higher contribution from the Food 31.4% segment (53% of total consumer sales vs 32% in Q2 30.7% 2020) 30.6% 2
Slide 13: Group Net Profit
GROUP NET PROFIT Group net profits (AED MN) Consolidated Standalone Group net profit in H1 prevailed at ~AED 68 million, recording 61 percent y-o-y growth. The jump versus 42 +61% 68 51 -14% 44 last year was supported by the consolidation of Al Foah, Al Faysal Bakery and Nabil Foods, collectively ad
Slide 14: Top Line Reconciliation
TOP LINE RECONCILIATION Group revenues (AED MN) +310 1,318 1,090 (60) (18) (22) +20 1,009 H1'20 WFP flour UAE Bottled Lower Organic H1'21 Agthia Al Foah, Al H1'21 Agthia order & grain Water Sales Beverage sales Growth Standalone Faysal & Nabil Consolidated trading COVID-19 Capri Sun impact discontin
Slide 15: Bottom Line Reconciliation
BOTTOM LINE RECONCILIATION Group net profits (AED MN) +35 68 (14) +9 +25 44 (12) 42 (19) H1'20 One-off in UAE BW & Bev Higher grain Cost H1'21 Agthia M&A and Al Foah, Al H1'21 Agthia 2020* cost, net of optimization Standalone Transformation Faysal & Nabil Consolidated pricing initiatives Advisory fe
Slide 16: Inorganic Growth
INORGANIC GROWTH Group revenues (AED MN) Group net profit (AED MN) 37 85 1,318 7 (12) 187 7 1,009 68 22 44 H1'21 Agthia Al Foah Al Faysal Nabil H1'21 Agthia H1'21 Agthia Al Foah Al Faysal Nabil M&A and H1'21 Agthia Standalone Transformation Consolidated Standalone Consolidated Advisory fees 1Post co
Slide 17: Robust Balance Sheet
ROBUST BALANCE SHEET CASH & BANK BALANCES BORROWINGS NET CASH POSITION NET DEBT / TTM EBITDA AED 917 MN AED 831 MN AED 86 MN (0.4)x +18% vs. FY 2020 +55% vs. FY 2020 • Balance sheet remains robust with a net cash position even post the acquisitions of 3 new entities • Higher borrowings versus last y
Slide 18: Investor Relations Department
Investor Relations Department August 2021