Savola Group · TADAWUL:2050
Savola — Q4 2017 Earnings Presentation
25 slides from Savola's earnings presentation, 2018
Slide 1: Earnings Presentation Q4 2017
Earnings Presentation Q4 2017 www.savola.com
Slide 2: Disclaimer
DISCLAIMER This presentation contains 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 about
Slide 3: Group – Highlights
GROUP – HIGHLIGHTS • In Q4 2017, the Group reported a net loss of SAR 37.5 mn; compared to a loss of SAR 915.7 mn last year due to margins improvement and lower operating expenses, and lower exceptional items. • Savola’s retail segment recorded a net loss of SAR 407.6 mn for Q4 2017 compared to a lo
Slide 4: Q4 2017 – Snapshot
Q4 2017 – SNAPSHOT » Q4 2017 revenue of SAR 5.8 bn (Q4 2016: SAR 6.8 bn) » Q4 2017 net loss SAR 37.5 mn (Q4 2016 net loss : SAR 915.7 mn) GROUP » Q4 2017 adjusted net income is SAR 328 mn » Q4 2017 revenue of SAR 3.0 bn (Q4 2016: SAR 3.4 bn) » Q4 2017 net loss of SAR 407.6 mn (Q4 2016: net loss of S
Slide 5: FY2017 – Snapshot
FY2017 – SNAPSHOT » 2017 revenue of SAR 23.8 bn (2016: SAR 26.3 bn) » 2017 net profit of SAR 1,025.6 mn (2016 net loss : SAR 363.3 mn) GROUP » Capital gain of SAR 693.9 million from the sale of 2% of Almarai shares » 2017 adjusted net income is SAR 645 mn » 2017 revenue of SAR 11.6 bn (2016: SAR 13.
Slide 6: Group – Consolidated Financial Snapshot
GROUP – CONSOLIDATED FINANCIAL SNAPSHOT Adjusted Gross Net Revenue EBIT Net Profit Income SAR Mn Income Q4 5,796 1,152 311 (38) 328 2017 -14.5% vs. LY +25.8% vs. LY vs. (105) LY vs. (916) LY +866% vs. LY 2017 23,832 4,386 1,023 1,026 645 -9.5% vs. LY -6.8% vs. LY -2.3% vs. LY vs. (363) LY -28% vs. L
Slide 7: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY Sales FY Sales -10% -6% -8% -14% -9% 26,331 23,832 6,422 7,141 6,711 5,993 5,492 6,775 5,796 5,833 Q1 2016 Q1 2017 Q2 2016 Q2 2017 Q3 2016 Q3 2017 Q4 2016 Q4 2017 FY 2016 FY 2017 YoY Gross Profit FY Gross Profit -7% -18% -14% -11% +2
Slide 8: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY EBITDA FY EBITDA +3% -36% -35% +5% +589% 1,761 1,817 512 683 488 512 533 332 440 77 Q1 2016 Q1 2017 Q2 2016 Q2 2017 Q3 2016 Q3 2017 Q4 2016 Q4 2017 FY 2016 FY 2017 8.0% 5.7% 9.6% 6.6% 8.1% 9.3% 1.1% 9.2% 6.7% 7.6% YoY Net Profit FY N
Slide 9: Group – Consolidated Revenue Mix, Net Debt & Capex
GROUP – CONSOLIDATED REVENUE MIX, NET DEBT & CAPEX SAR Bn Revenue by Business Net Debt FY 2016 FY 2017 -21% SAR 26.3 Bn SAR 23.8 Bn 4.3% 4.8% Foods 7,659 44.7% Retail 47.1% 6,048 51.0% Food Services 48.1% Dec-16 Dec-17 Revenue by Geography CAPEX FY 2016 FY 2017 -57% SAR 26.3 Bn SAR 23.8 Bn 7.7% 7.2%
Slide 10: Reinstatement: Implications of Exceptional Items
YTD Dec 2016 reported NI (451) IFRS 88 SAR Mn Adjustment YTD 2016 IFRS adjusted NI (363) Non-Core Impairment 272 Loss from Hosoon 20 SFC Impairments 245 FX impact 374 Morocco 26 Reinstatement Adjusted FY 2016 Net Income Inventory Cleanup 343 Pandati store 33 closures cost YTD Dec 2016 normalized NI
Slide 11: Panda Retail Company
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Slide 12: Retail – Highlights
RETAIL – HIGHLIGHTS • In November 2017 Dr. Bandar joined as Panda’s CEO replacing Rayan Fayez who was the acting CEO. • The transformation exercise started end of last year and continued in 2017 with several initiatives being made throughout the year. • One supermarket was closed and one opened duri
Slide 13: Retail - Snapshot
RETAIL - SNAPSHOT Gross Adjusted Selling Revenue Net Loss Profit Net Loss Space SAR m Q4 2,985 652 (408) (106) Reduced by 2017 -12.6% vs. LY +191% vs. LY vs. (543) LY vs. (166) LY 6,617 m2 2017 11,644 2,326 (1,016) (782) Total Space 746,167 m2 -14.2% vs. LY -1.3% vs. LY vs. (811) LY vs. (359) LY 13
Slide 14: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY Sales FY Sales -14% -13% -17% -15% -13% 13,572 3,874 11,644 3,389 3,271 3,014 3,414 2,985 2,721 2,549 Q1 2016 Q1 2017 Q2 2016 Q2 2017 Q3 2016 Q3 2017 Q4 2016 Q4 2017 FY 2016 FY 2017 YoY Gross Profit FY Gross Profit -1% -29% -20% -15% +191% 2,357
Slide 15: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS SAR Mn Margin YoY EBITDA FY EBITDA 99 34 (18) 4 (84) (75) (241) (409) (293) (86) Q1 2016 Q1 2017 Q2 2016 Q2 2017 Q3 2016 Q3 2017 Q4 2016 Q4 2017 FY 2016 FY 2017 3.0% -3.1% 0.9% -2.5% -0.6% -2.8% -12.0% 0.1% -2.2% -2.1% YoY Net Profit FY Net Profit (32) (94) (160) (142)
Slide 16: Retail – Number of Stores by Quarter
RETAIL – NUMBER OF STORES BY QUARTER Super Hyper Hyper 4 in 1 KSA Egypt 1 Egypt KSA Egypt UAE 163 162 Hyper 2 1 (4) Hyper Hyper 66 67 1 1 (1) Dec Q1 Q2 Q3 Q4 Closures YTD Dec Q1 Q2 Q3 Q4 Closures YTD 2016 ’17 ’17 ’17 ’17 ’17 2016 ’17 ’17 ’17 ’17 ’17 Pandati Total Total Selling Area Selling Area 752,
Slide 17: Savola Foods
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Slide 18: Foods – Highlights
FOODS – HIGHLIGHTS • Q4 2017 total revenue of SAR 2.59 billion is 17.7% below Q4 2016 revenue of SAR 3.14 billion while 2017 revenue was 11.38 billion vs. 2016 revenue of 11.89 billion (-4.2%) attributed to the following: • Oil revenues decreased by 3.6% across Arabia, Egypt, Iran and Turkey • Sugar
Slide 19: Foods - Snapshot
FOODS - SNAPSHOT Adjusted Gross Net Revenue EBIT Net Profit Income Income SAR m Q4 2,585 415 266 198 258 2017 -17.7% vs. LY -11.3% vs. LY +1.6% vs. LY vs. (221) LY vs. +138 LY 2017 11,384 1,731 908 607 651 -4.2% vs. LY -7.4% vs. LY -5.8% vs. LY +381% vs. LY vs. +680 LY 19
Slide 20: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY Sales FY Sales -4% +1% +1% -1% -18% 11,887 11,384 3,103 3,146 2,925 2,954 2.717 2.699 3,142 2,585 Q1 2016 Q1 2017 Q2 2016 Q2 2017 Q3 2016 Q3 2017 Q4 2016 Q4 2017 FY 2016 FY 2017 YoY Gross Profit FY Gross Profit -7% -8% -5% -5% -11% 1,869 1,731 44
Slide 21: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY EBITDA FY EBITDA -4% -11% 0% +3% -12% 1,114 1,065 339 303 228 227 297 306 261 229 Q1 2016 Q1 2017 Q2 2016 Q2 2017 Q3 2016 Q3 2017 Q4 2016 Q4 2017 FY 2016 FY 2017 8.9% 7.8% 10.9% 9.6% 8.4% 8.4% 9.4% 11.8% 9.4% 9.4% YoY Net Profit FY Net Profit +5%
Slide 22: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS SAR Mn Volume (MT 000) Revenues +1.6% -3.6% 1,580 1,605 8,166 7,871 5% 5% 4% 5% 4% 4% 6% 4% 5% 8% 9% 7% 11% 9% 10% 11% Morocco Morocco YoY +6% YoY +13% Sudan Sudan 31% 30% YoY +21% 34% YoY +17% Algeria 33% Algeria YoY +14% YoY +18% Turkey Turkey YoY +3% 14% YoY -7% 14% 1
Slide 23: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS SAR Mn Volume (MT ‘000) (1) Revenues (1) KSA KSA YoY -6% YoY -4% Egypt Egypt YoY -9% -3.4% YoY 0% -6.5% 3,184 1,521 3,076 1,422 89% 89% 89% 89% 11% 11% 11% 11% FY 2016 FY 2017 FY 2016 FY 2017 (1) Sugar volumes and revenues include only the contribution from sugar opera
Slide 24: Financial Summary
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Slide 25: Financials – FY 2017
FINANCIALS – FY 2017 (all figures are in SAR millions) Segment Wise Financials FY 2017 FY 2016 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Food Oil-Mature Markets 6,608 1,199 600 463 672 7,070 1,395 777 470 843 Oil-Start-up Markets* 1,275 155 64 42 76 1,09