Almarai Company · TADAWUL:2280
Almarai — Q3 2021 Earnings Presentation
43 slides from Almarai's earnings presentation, September 2021
Slide 1: Earnings Presentation - Q3 2021
— Uncholl Almarai Almarai® Company Earnings Presentation - Q3 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: Agenda: Market Dynamics, Business Performance, Appendix, Q&A
Almarai Q3 2021 Market Dynamics 5) i Appendix _ eS 2 Question & Answer
Slide 4: Market Dynamics
Slide 5: Almarai response to COVID-19 Pandemic - October 1st 2021
Almarai response. to COVID-19 Pandemic - October 1st 2021 Almarai to deliver “Quality you can trust” to its consumers whilst being integral to the nation’s foodsecurity. Minimize business disruption and execute plan for a post crisis globaleconomy. Protect our consumers and employees from any possib
Slide 6: Speed of recovery from COVID-19
1 “Recovering Economy” GDP 3 “Resurgent Economy” GDP Virus contained but sector damage; lower LT trend growth Virus contained; strong growth rebound TIME TIME Economics Almarai Economics Almarai • Strong GDP Growth • Strong Growth in Revenue and Market Share • Moderate GDP growth • Resize Business •
Slide 7: Product Innovation 2021
Slide 8: Leadership in KSA
Dec-19 Dec-20 Aug-21 Aug-21 Category Almarai Rank Almarai Value | Almarai Value | Almarai Value Share % Share % Share % Laban 65 64 63 1 Fresh Milk 67 65 64 UHT Milk 21 19 19 Food 39 38 35 Juice 43 42 45 Bakery 54 53 54 Poultry (Fresh Chicken) 37 36 33 Leadership in KSA =/a/a/a/n/]— Earnings Present
Slide 9: Business Performance
Slide 10: 4,500 00% 00% 4,000 00% 00% 3,500 60 0 50 00% 40 0 40
4,500 90 00% 80 00% 70 0 4,000 80 0 70 00% 60 0 60 00% 50 0 3,500 60 0 50 00% 40 0 40 00% 3,000 40 0 30 0 30 00% 20 0 20 00% 2,500 20 0 10 00% 10 0 2,000 0% 0 0 -10 0 -20 0 -20 0 -30 0 -40 0 3,50 0 40 00% 35 0 14 000 % 90 0 30 00% 35 00% 80 0 30 0 12 000 % 25 00% 3,00 0 70 0 30 00% 25 0 10 000 % 60
Slide 11: Q3 2021 Sales Bridge
Q3 2021 Sales Bridge SAR Million Q3 2020 (1%) 2% Like-for-like growth 1% Reported Growth 2% | 1% 3,942 0% 0% Volume Price Mix Currency Others Q3 2021 YoY %/ (YoY%) Earnings Presentation- Q3 2021 1
Slide 12: Q3 2021 Revenue Growth
se Q3 2021 Revenue Growth . Other (SAR Million) KSA Others Total GCC Revenue 2475 757 709 3,942 % of Revenue 63% 19% 18% 100% Growth 172 79 Growth % 32% 2% (clyoll Almarai Earnings Presentation - Q3 2021 12
Slide 13: Q3 2021 Revenue Growth by Geography
hallenging market condi Q3 2021 Total Revenue - SAR 3,942 Million on in GCC offset by Egypt, Q3 2021 Total Growth- SAR 79M or 2% Bahrain 2% Others 5% SAR Million YoY %/(YOY%) (2%) = (3%) = 31% 85 KSA UAE_ Egypt 49% (1%) 24% Jordan Bahrain Others dan & Alfalfa sales double digit growt Total Q1 2020 8
Slide 14: Decline in Food category partly offset by Bakery growth
Decline in Food category partly offset by Bakery growth due to schools reopenin Q3 2021 Total Revenue - SAR 3,942 Million Q3 2021 Total Growth- SAR 79M or 2% YoY 96/ (YOYS) (2%) (12%) 3% 11% 10% 3% 43% Other Sales. 63 Fruit Juice 3% v7 48 37 11% § (69) 14 = 32 g (32) = mo Fresh Dairy Food Poultry Ba
Slide 15: Rebound in Food Service channel
Rebound in Food Service channel, driven by post COVID-19 conditions..... Q3 2021 Total Revenue - SAR 3,942 Million Q3 2021 Total Growth- SAR 79M or 2% YoY %/(YOY%) (2%) (5%) 25% 24% Other / Exports 10% Food Service 103 13% 72 8 z (50) (47) [| °° Traditional Trade Traditional Trade Modern Trade Food
Slide 16: Financial Performance
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Slide 17: Financial Performance
Financial Performance - Q3 2021 Q3 2021 vs. Q3 2020 Revenue - Back to normalized trading conditions... * _ ...post change in VAT rate for KSA to 15% on 1S July 2020 & COVID- 19 conditions * Core product revenue declined on average by 3% within GCC countries, mainly driven by: 2% (3 1 %) (34%) + Lowe
Slide 18: Net Income Bridge
Net Income Bridge - Q3 2021 eee) 9 9 409 a i = 1 H F < H H 6 i H Market Trend | Economical and External Factor } Q32020 Volume Decline — Unfavorable Mix driven Price / Discount Reduction in Subsidy Commodity Price and —Improvementin IDJ Funding & Other Q32021 by channel (shift to FS) (Poultry & Dair
Slide 19: Results by Segment
Results by Segment - Q3 2021 Dairy &Juice Stronger long life dairy sales in Egypt, Jordan & Export markets + Weaker foods year on year due to base effect of higher food Dairy & purchases during COVID-19in @1 2020 Juice + Lower subsidy year on year as subsidy ceased on non-green a] r dairy feed Reven
Slide 20: 3,50 00% 00% 3,00 00% 00% 2,50 00% 2,00 0 15 00% 10 00%
3,50 0 40 00% 35 00% 3,00 0 30 00% 25 00% 2,50 0 20 00% 2,00 0 15 00% 10 00% 1,50 0 35 0 14 000 % 50 0% 1,00 0 30 0 0% 12 000 % 25 0 10 000 % 20 0 80 00% 15 0 60 00% 10 0 40 00% 50 20 00% 90 0 30 00% 0 0% 80 0 25 00% 70 0 60 0 20 00% 50 0 15 00% 40 0 30 0 10 00% 20 0 50 0% 10 0 0 0%
Slide 21: Strategic Management of Working Capital
Strategic Management of Working Capital 20% 21% 20% 10% 9% 10% 5 oe ° = ira < Do 1,383 1,329 2,689 2,668 3,238 3,088 2015 2016 2017 2018 2019 2020 Q3 2021 maWorking Capital -e Working Capital as a % of Net Sales clo Almarai ,, Earnings Presentation- Q3 2021
Slide 22: CAPEX continuous to trend lower
CAPEX continuous to trend lower Capital Investment 2015 to TTM Q3 2021 29% 30% 20% 8 34% 11% z 6% 1% é 3,986 2,844 1,923 1,650 El 1,013 2018 2019 2020 TTM Q3 2021 2015 2016 2017 maNet Cash Used in Investing Activities -e-Investment as a % of Net Sales Capex cash spend continues to decline in line wi
Slide 23: Cash Flow
e Cash Flow ains Free Cash Flow = SAR 3.2B OCF = SAR 4.7B (1.5) (2.4) SAR Billion Cash Cash 0.5 08 Net Payment for Dividend Others Funding Cost and Debt QperatingCashFlow Working Capital (SAR 0.3 Billion) > TTM Q3 2021 Free Cash Flow = SAR 3.2B * OCF: SAR +4.7 Billion.......Stable business performan
Slide 24: Continues Improvement in Free Cash Flow
Continues Improvement in Free Cash Flow Free Cash Flow 2015 to TTM Q3 2021 ma Free Cash Flow 18% 18% 21% 9% 10% 5 4% & (3%) 523 1,304 1,332 2,602 (EX) 2015 2016 2017 2018 2019 2020 TTM Q3 2021 -e-Free Cash Flow as a % of Net Sales Earnings Presentation- Q3 2021
Slide 25: Net Debt and EBITDA/EBIT Margins trend
Net Debt and EBITDA/ EBIT Margins trend Net Debt Trend EBITDA and EBIT Margins 3.2x 30% Se 2Ix 26x — “ 26% 25% 2018 2019 2020 1TMQ3 2021 2018 2019 2020 TIMQ2 2021 MNetDebt (SAR M) eNetDebt/Equity Ratio Nat Debt / EBITDA mNetSales(SARM) @EBITDA%toNetSales <#EBIT %to Net Sales L J J en * Net of Time D
Slide 26: Debt Maturity Profile highlights average debt tenure at 3.42 Years
Debt Maturity Profile highlights average debt tenure at 3.42 Years (SAR Billion) Debt Maturity by Age and Type 1.5) 1.3) 0.3 1.2 Upto 1Yr 1-2Yrs 2-3Yrs 3-4Yrs 4-5Yrs >5 Yrs gw Banks Govt / Semi Govt Inst. a Islamic Bonds mBanks mg Govt/SemiGovt Inst. mg Islamic Bonds Earnings Presentation - Q3 2021
Slide 27: Dividends
SAR Million 50% 45% 41% 42% 43% gig, 42% 42% gy 40% 36% «36% »=— 35% )=— 34m 35% —— 2015 2016 2017 2018 2019 2020 850 850 #1,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 mi Cash Dividends Payout Ratio Earnings Presentation - Q3 2021 27
Slide 28: Question & Answer
Earning Question” _* & Answer ws
Slide 29: Appendix
We Almarai
Slide 30: Revenue by Geography and Category
Revenue by Geography an Category - Q3 2021 Revenue By Geography - SAR Million Revenue By Category - SAR Million Bahrain Others —— Other Sales 86 193 Fruit Juice 2 Jordan 2% 443 5% 151 4% Fresh Dairy Kuwait 1,352 189 34% 5% 32020 32021 Bakery Q3 2020 Q32021 KSA 467 Egypt 2,475 12% Foods 63% 365 Poult
Slide 31: ,0 2,30 0%) ,0 2,10 (5,00 0%) 2,00 1 ,0 00 1,90 0 (10
13 ,0 00 60 2,30 0 0%) 12 ,0 00 2,10 0 (5,00 0%) 2,00 0 50 11 ,0 00 1,90 0 (10 ,0 00%) 10 ,0 00 1,70 0 40 (15 ,0 00%) 1,50 0 9,00 0 1,50 0 (20 ,0 00%) 8,00 0 30 1,30 0 (25 ,0 00%) 1,00 0 7,00 0 1,10 0 20 (30 ,0 00%) 6,00 0 90 0 (35 ,0 00%) 50 0 5,00 0 70 0 10 (40 ,0 00%) 4,00 0 50 0 3,00 0 - 30 0 (4
Slide 32: YTD Q3 2021 vs. YTD Q3 2020
YTD Q3 2021 vs. YTD Q3 2020 ncial Performance - YTD Q3 2021 Revenue - Back to normal trading conditions... * _ ..after above normal purchases in 2020 due to COVID-19 restrictions * Growth in Egypt, Jordan and non-branded product is offsetting the decline in our core categories in GCC. * Core categor
Slide 33: Net Income Bridge - YTD Q3 2021
Net Income Bridge - YTD Q3 2021 1,648 (159) — 70 (153) a — Ts (212) 112 1,277 | ~ Le as S x g Bs Market Trend Economical and External Factor YTD Q3 2020 Volume Decline Unfavorable Mix _—Price/Discount Reduction in Subsidy Commodity Price Improvementin IDJ Funding & Other YTD Q3 2021 driven by channe
Slide 34: Results by Segment - YTD Q3 2021
Results by Seg t- YTD Q3 2021 Dairy &Juice Stronger long life dairy sales in Egypt, Jordan & Export markets + Weaker foods year on year due to base effect of higher food Revenue by Segment (SAR Million) Dairy & purchases during COVID-19in Q1 2020 Juice * Continued weakness in juice segment, although
Slide 35: Revenue by Geography and Category - YTD Q3 2021
d by Catego Revenue By Geography - SAR Million Revenue By Category - SAR Million Bahrain 252 Others 478 Fruit Juice 1,132 Other Sales 476 I I 1 I I I I Jordan 2% | 10% 397 1 4% 3% i a 11,537 11,592 1_| Long Life Dairy 11,537 11,592 H 1,193 [ I 10% I Z Fresh Dairy Kuwait 1] 4175 I . 385 YTD Q32020 YT
Slide 36: Sales Bridge - YTD Q3 2021
Sales Bridge - YTD Q3 2021 SAR Million YTD Q3 2020 Reported Growth 0% (1%) 1% (0%) 0% 1% Like-for-like growth 0% Volume Price Mix Currency Others 11,592 YoY %/ (YoY%) Earnings Presentation- Q3 2021 36
Slide 37: Growth by Geography - YTD Q3 2021
Growth by Geography - YTD Q3 2021 YTD Q3 2021 Total Revenue - SAR 11,592 Million YTD Q3 2021 Total Growth- SAR 55M or 0% Bahrain NS 2% (4%) (6%) = 33% ~— (4%) (10%) 44% (0%) 49% Others 122 158 < ~ oe ee | Pa < 2) Kuwait 5% KSA UAE Egypt Kuwait Oman Jordan Bahrain Others Total Egypt Q32020 5% 6% 23%
Slide 38: Growth by Product Category - YTD Q3 2021
Growth by Product Category - YTD Q3 2021 YTD Q3 2021 Total Revenue - SAR 11,592 Million YTD Q3 2021 Total Growth- SAR 55M or 0% Other Sales Fruit Juice VA 4% 1% (13%) (2%) (1%) 9% 3% 55% 10% 169 96 c 53 (246) 38 5 = (8) (17) — S Ll ac ~¢ aN ° a Long Life Dairy Fresh Dairy 0% 36% Fresh Dairy Food Pou
Slide 39: Growth by Channel - YTD Q3 2021
Growth by nnel - YTD Q3 2021 YTD Q3 2021 Total Revenue - SAR 11,592 Million YTD Q3 2021 Total Growth- SAR 55M or 0% Other / Exports 9% Food Service 13% Traditional Trade Modern Trade 56% 22% YoY %/(YOY%) (5%) (10%) 26% 46% 304 342 s (307) (284) || | = ira °H BB Traditional Trade Modern Trade Food Se
Slide 40: Profit & Loss Statement - YTD Q3 2021
Profit & Loss Statement - YTD Q3 2021 _ 3rd Quarter YTD 3rd Quarter SAR Million 2021 2020 Change 2021 2020 Change Revenue 3,942 100.0% 3,863 100.0% 2.0% 11,592 100.0% 11,537 100.0% 0.5% Cost of sales (2,666) (67.6%) (2,348) (60.8%) (13.5%) (7,726) (66.6%) (7,234) (62.7%) (6.8%) Gross Profit 1,276 32
Slide 41: Results by Segment - YTD Q3 2021
Results by Segment - YTD Q3 2021 YoY %/(YOY%) Almarai SAR Million Dairy & Juice Bakery Poultry Other: Consolidated YTD Q32021 Revenue 8198 1,259 1,660 476 11,592 Profit Attributable to Shareholders 1,009 149 159 (40) 1,277 Percent to Revenue of Profit Attributable to Shareholders 12.3% 11.8% 9.6% na
Slide 42: Key Share Data
Key e Data Key Statistics for Almarai (30 Sept 2021) m Savola Share Price (SAR) 58.00 m HH Prince Sultan Current P/E Ratio (ttm) 35.99 Bin Mohammed Earnings Per Share (SAR) (ttm) 1.61 mSALIC Market Cap (SAR Million) 58,000 J Shares Outstanding (Million) 1,000 = Others Dividend Yield 1.72% Share Pric
Slide 43: Thank you
Thank you Earnings Presentation – Q3 2021