Almarai Company · TADAWUL:2280
Almarai — H1 2012 Earnings Presentation
22 slides from Almarai's earnings presentation, July 2012
Slide 1: Almarai Company 2012 1st Half Earnings Presentation
Almarai Company 2012 1st Half 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: Performance Highlights – 1st H, 2012
Performance Highlights – 1st H, 2012 Q2 2012 1st Half 2012 Growth over last Growth over last SAR ' M year SAR ' M year Group Revenue 2,524.1 25.4% 4,564.5 21.5% Group Revenue 2,359.6 17.2% 4,399.9 17.1% excluding IDJ Net Income 379.5 8.7% 621.6 6.4% Revenue growth of 21.5% driven by core business
Slide 4: Product innovation: Growth driver
Product innovation: Growth driver Almarai Company 2012 Q2 Earnings Presentation 4
Slide 5: Statement of Income – IDJ Consolidated
Statement of Income – IDJ Consolidated 2nd Quarter 1st Half SAR million 2012 2 0 1 1 Change 2012 2011 Change Net Sales 2,524.1 2,012.9 25.4% 4,564.5 3,756.4 21.5% Cost of sales (1,602.4) (1,236.0) 29.6% (2,935.5) (2,345.5) 25.2% Gross Profit 921.7 776.8 18.7% 1,629.0 1,411.0 15.5% Selling and Distri
Slide 6: Sales Analysis by Product & Region – IDJ Consolidated
Sales Analysis by Product & Region – IDJ Consolidated Sales by Product Sales by CountryUAE – 1st Half 2012 Oman Bahrain 2.1% 10.4% 5.4% Egypt Sa les by Pr oduct 1st Ha lf Qatar 2.4% Jordan 1.2% 4.3% G r oup SAR M illion 2 012 2 011 % cha nge Export / Others Kuwait Fresh Dairy 1,836.4 1,615.4 13.7% 4
Slide 7: Sales Revenue Growth by Region
Sales Revenue Growth by Region 4,564 21.5% YOY Growth 3,756 16.1% 3,102 2,673 17.6% 1,228 1,044 504.6% 2 34 39 H1 2012 H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 KSA GCC All Other Countires Total Almarai Company 2012 Q2 Earnings Presentation 7
Slide 8: Revenue and Net Operating Income Evolution
Robust revenue growth with challenging – but anticipated – EBIT trend Revenue and Net Operating Income Evolution 2 1.8% 2 1.0% 2 0.7% 2 1.0% 2 1.1% 2 0.1% 8,759 19.4% 19.1% 18. 0% 7 ,951 17.7% 6 ,931 SAR in Million CAGR 2004 – 2011: 22.8% (w/o impact of acquisitions 19.6%) 5,869 5,030 3, 770 2,757 2
Slide 9: Quarterly Performance – Net Income
S AR Million 0 50 250 400 100 150 200 300 350 450 500 90.6 Almarai Company 12 2.8 162 .2 197.4 2 34.1 2 35.2 2 42.1 12 1.8 165.3 2 35.2 2 87.1 343.1 349.3 379.5 12 2.6 2012 Q2 Earnings Presentation 186.1 2 93.7 363.4 42 4.5 42 9.7 Quarterly Performance – Net Income 130.2 193.1 2 19.2 2 48.8 2 83.5 2
Slide 10: Cash Flow Statement (1st Half)
Cash Flow Statement (1st Half) 2,000 1,800 1,600 730.2 SA R Million 1,400 1,200 1,584.6 Strong revenue growth 1,000 800 869.3 resulted in positive operating 6 00 cash flow…. 4 00 200 272.0 286.9 0 Cash at beginning From Operating From Financing Used in Investing Cash at end of of period Activities A
Slide 11: Cash Flow Bridge (rolling 12 months)
Cash Flow Bridge (rolling 12 months) 1,000 3,098 1,063 Sukuk 1,890 Loans Issues / Others 512 Capex 299 243.2 286.9 Dividend Operating Cash Investment in Flow Subsidiary Cash June Cash June 2011 + SAR 43.7 m 2012 Almarai Company 2012 Q2 Earnings Presentation 11
Slide 12: Balance Sheet
Balance Sheet S AR M i l l i on 3 0 .0 6.12 3 0 .0 6.11 Net Operating Working Capital 1,182 702 Biological Assets 870 795 Property, Plant and Equipment 12,426 8,997 Net Operating Assets 14,478 10,494 Intangible Assets - Goodwill 1,383 793 Investment and Financial Assets & Deferred 494 958 Charges 16
Slide 13: Segment Reporting
Segment Reporting D ai ry & Arabl e an d O th er Al marai S AR M i l l i on Bak ery P ou l try Ju i ce H orti cu l tu re Acti vi ti es C on sol i dated 1st H al f 20 12 Sales 3,673.6 618.5 214.5 154.2 0.0 4,660.8 Third Party Sales 3,667.2 618.5 214.5 64.3 0.0 4,564.5 Net Depreciation (219.1) (53.9)
Slide 14: Operational Update
Operational Update Almarai Company 2012 Q2 Earnings Presentation 14
Slide 15: 2012: Key Focus Areas
2012: Key Focus Areas Expand distribution across GCC, with special emphasis on poultry Deliver growth across and bakery 1 all product portfolio Continue exploring new product development revenues Manage procurement process in line with inventory cover Improve group margin requirements. 2 % F
Slide 16: Progress against Key Focus Areas
Progress against Key Focus Areas Almarai Company 2012 Q2 Earnings Presentation 16
Slide 17: Deliver Growth across all product portfolio
1 Deliver Growth across all product portfolio Well underway Still to achieve Strong H1 results including strong bakery results buoyed by GCC distribution Launch poultry across all GCC countries. Sales growth is expected to continue for Full range of bakery to be available rest of the year, p
Slide 18: Margin areas of focus
3 Margin areas of focus Well underway Still to achieve SMP Cost of most commodities is showing Product improvement projects to signs of stabilisation / reduction over last continue deliver quality value to our year. This cost advantage is expected to customers materialise in H2, 2012. Strong p
Slide 19: Cash Flow Management
4 Cash Flow Management Well underway Still to achieve Inter divisional collaboration Cost control across all categories and Focus on supply chain and streamlining functional areas end to end inventory movement Debt management program to keep Working capital – creditor management funding cost
Slide 20: Integration of other business units
4 Integration of other business units Well underway Still to achieve Changes in key management positions Integration of Fondomonte business with Implement operational & control Almarai financial and operational units policies in both Fondomonte & IDJ continues well in Q2 Additional focus will
Slide 21: Q&A
Q&A Almarai Company 2012 Q2 Earnings Presentation 21
Slide 22: 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 1 470 00 05 ext 1280 investor.relations@almarai.com