Almarai Company · TADAWUL:2280
Almarai — Q4 2014 Earnings Presentation
23 slides from Almarai's earnings presentation, Mar 19, 2015
Slide 1: Almarai Company 2014 Q4 Earnings Presentation
Almarai Company 2014 Q4 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 incl ol Almarai ee ee Business Highlights
Slide 4: Highlights – 2014
Highlights – 2014 Financial Highlights Sales Revenue EBITDA EBIT 2014 2014 2014 SAR 12.6 B SAR 3.0 B SAR 2.0 B 2013 2013 2013 SAR 11.2 B +12.4% SAR 2.7 B +8.4% SAR 1.8 B +8.5% Operational Highlights Acquisition & Milestones • 50% share of IPNC • US Arable Farm Acquisition • Free Cashflow positive Wo
Slide 5: Sales Highlights
Sa incl ol Almarai ——~__— Sales Highlights
Slide 6: Sales Analysis by Product – Full Year
Sales Analysis by Product – Full Year By Product 2013 By Product 2014 9% 10% Long-Life Dairy 7% 8% 1.1 Long-Life Dairy Poultry 13% 0.8 1% 1.2 Poultry Ba kery 12% 1.0 1% 1.4 O ther Sales Ba kery 0.1 Other Sales 1.5 0.2 13% Fr uit Juice SAR 11.2 13% 1.5 Billion Fr uit Juice SAR 12.6 1.7 Billion 42% 42
Slide 7: Growth Driven by Poultry, Long-Life and Juice – Full Year
Growth Driven by Poultry, Long-Life and Juice – Full Year Growth % of Total Revenue in SAR Million 2014 v 2013 Growth 14,000 Fresh Dairy 582 42% ( YoY +12%) 12,606 12,000 11,219 Cheese & Butter 74 5% ( YoY +5%) 10,000 Fruit Juice 235 17% ( YoY +16%) 8,000 Bakery 88 6% ( YoY +6%) 6,000 Long Life 169
Slide 8: Sales Analysis by Country – Full Year
Sales Analysis by Country – Full Year By Geography 2013 By Geography 2014 Ba hrain Ba hrain 4% 0.2 5% 5% 0.3 5% Q a tar 4% 5% Qa tar 2% 0.6 2% E xport / Others 5% 0.5 E xport / Others 5% K uwait E gypt K uwait E gypt 0.2 0.6 2% 0.2 O ma n 0.5 0.5 2% Oma n 0.6 0.6 4% 0.6 3% Jor dan 9% Jor dan 9% 0.4
Slide 9: Sales Analysis by Country – Full Year
Sales Analysis by Country – Full Year Growth % of Total 2014 v 2013 Growth Revenue in SAR Million KSA 830 60% ( YoY +11%) 14,000 12,606 UAE 155 11% ( YoY +15%) 12,000 11,219 Oman 92 7% ( YoY +16%) 10,000 Egypt 151 11% ( YoY +30%) 8,000 Kuwait 54 4% ( YoY +10%) Qatar 112 8% 6,000 ( YoY +23%) Jordan (
Slide 10: Financial Performance
Sa incl ol Almarai ee ee Financial Performance
Slide 11: Strong pipeline of innovation continues in 2014
Strong pipeline of innovation continues in 2014 Almarai Company 2014 Q4 Earnings Presentation 11
Slide 12: Segment Reporting
Segment Reporting D ai ry & O ther Al marai SAR M i l l i on Jui ce Bakery P oul try Acti vi ti es C onsol i dated Dairy and Juice: • Market share in nearly all markets Q 4 YTD 2014 either stable or growing • Dairy Herd numbers crossed Sales 9,942.8 1,532.9 1,022.8 514.3 13,012.7 150,000 mark for th
Slide 13: Statement of Income – Full Year 2014
Statement of Income – Full Year 2014 4th Quarter Full Year SAR million 2014 2013 Change 2014 2013 Change Sales 3,330.8 3,008.2 10.7% 12,605.6 11,219.2 12.4% Cost of sales (2,096.7) (2,012.7) 4.2% (8,070.5) (7,256.5) 11.2% Gross Profit 1,234.1 995.5 24.0% 4,535.0 3,962.7 14.4% Selling and Distributio
Slide 14: Investments & Cash Flows
Sa CncloJl Almarai ee ee Investments & Cash Flows
Slide 15: Cash Flow Bridge
Cash Flow Bridge 3,199 (597) (3,169) Loans Issues / Payments / Charges 1,811 (598) Operating Cash Flow 152 797 Capex / Biological Assets Dividend Others Ca sh at 31 Ca sh at 31 Dec 2013 (SAR 1,014 m) Dec 2014 Almarai Company 2014 Q4 Earnings Presentation 15
Slide 16: Capex spend slightly below the annual run rate within 5YP guidance
Capex spend slightly below the annual run rate within 5YP guidance… Capex spend for the four quarters of 2014 was 2.7B SAR which is slightly below our annual run rate of 3.0 to 3.2B SAR stipulated in our total 5 year plan spend of 15.7B. • Manufacturing and Farming spent Capex of ~1.2B SAR for var
Slide 17: Net Debt and Net Debt / EBITDA
Net Debt 3.2x Rolling 12 Months 3.0x 3.0x 3.0x 2.9x 2.8x 2.8x 2.6x Q1, 2014 Q2, 2014 Q3, 2014 Q4, 2014 Net Debt / EBITDA 10,000 350% 3 .1x 9,000 3 .0 x 2.8x 2.8x 300% 8,000 2.3 x 2.3 x 2.2x 250% 7,000 SAR million 6,000 200% 5,000 150% 4,000 94% 98% 10 1% 3,000 74% 75% 75% 100% 72% 2,000 50% 1,000 3
Slide 18: Deferred maturity profile of debt, along with diversification of funding source
Deferred maturity profile of debt, along with diversification of funding source……… 2.5 Debt Maturity by Age and Type 2 2.0 Islamic Bonds 24% Govt / Semi Govt Inst. 1.5 Banks SAR Billion 6 1 61% 1.0 15% 0.5 0.0 <1yr 1-2 yr 2-3yr 3-4 yr 4-5yr >5yr 10 100% 11% 2 23% 24% 8 1 2 80% 22% 2 2 15% 15% 1 6 60
Slide 19: Trend charts
Sa incl,oJl Almarai ee a Trend charts
Slide 20: Quarterly Performance – Net Income
SAR Million 500 200 400 0 600 100 300 162.2 197.4 Almarai Company 23 4.1 23 5.2 242.1 255.1 273 .6 Q1 = 7.2% 23 5.2 287.1 3 43 .1 3 49.3 3 79.5 3 98.2 43 3 .3 Q2 = 8.8% 293 .7 2014 versus 2013 3 63 .4 2014 Q4 Earnings Presentation 424.5 429.7 450 .0 Quarterly Performance – Net Income 475.6 53 9.4 Q3
Slide 21: Revenue growth continues but EBIT trend yet to stabilise
Revenue growth continues but EBIT trend yet to stabalise…. Revenue, EBITDA and EBIT Evolution 26.7% 27.2% 12,606 25.3% 25.6% 24.2% 24.4% 11,219 23.5% 21.8% 21.0% 21.1% 19.1% 9,883 SAR Million CAGR 2008 – 2014: 16.5% (w/o impact of acquisitions 11.9%) 16.9% 16.0% 15.5% Revenues 7,951 EBIT % to Revenu
Slide 22: Key Share Data
Key Share Data Year t o date total shareholder's return si n ce listing Key S tati sti cs for Al marai (3 1 D ec. 20 14) 30% 450% S h are P ri ce (S AR ) 76.72 25% 21% C u rren t P /E R ati o (ttm) 29.1 20% 400% Esti mated P /E(12/20 14) 27.2 Earn i n gs P er S h are (S AR ) (ttm) 2.6 15% M ark et C
Slide 23: Thank you
Almarai Company Thank you Exit 7, North Circle Road Al Izdihar District P.O. Box 8524 Riyadh, 11492 Saudi Arabia Contact for investor relations matters: Khalid M. Al Nasser +966 11 470 00 05 ext 1280 investor.relations@almarai.com