Tanmiah Food Company · TADAWUL:2281
Tanmiah Food — H1 2021 Earnings Presentation
28 slides from Tanmiah Food's earnings presentation, August 2021
Slide 1: Investor Presentation – 1H 2021
TANMIAH Investor Presentation – 1H 2021 August 2021
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared solely for use as an investor presentation for Tanmiah Food Company (the “Company”). By attending or by reading this presentation, you agree to be bound by the following limitations. The information contained in this presentation is for background purpo
Slide 3: Table of Contents
TABLE OF CONTENTS 1 Introduction 2 Strategy and Business Model 3 1H21 Financial Highlights 4 Sustainability 5 Appendix 3
Slide 4: Introduction
01 Introduction
Slide 5: Nearly 60 years of Continuous Growth Supported by Committed Shareholders
Nearly 60 years of Continuous Growth Supported by Committed Shareholders § Established in 1962 § Prominent market position built through decades of experience 100% § Efficient and integrated business 100% 100% 100% model has grown to comprise: 84 Farms 6 Hatcheries 96% 96% 100% 3 Primary Processing
Slide 6: Strong Corporate Identity Developed over Decades since Establishment by Al-Dabbagh Group
Strong Corporate Identity Developed over Decades since Establishment by Al-Dabbagh Group § Increased broiler production volumes to 279k per day § Increased line speed and turnaround times between shifts at PPLs, thus enhancing the ‘killing’ capacity of the machinery § ADC was acknowledged as best br
Slide 7: Strong Production Capabilities Spread Across the GCC Region
Strong Production Capabilities Spread Across the GCC Region Supported by Wide Distribution Network 200,000 tons of feed / year From 1 Feed Mill Geographical footprint 155 eggs / bird / year Across 21 Breeder Farms 384,000 chicks / day Across 6 Hatcheries 24 broiler chicks / sqm Across 63 Broiler Far
Slide 8: Experienced Management and Board Members
Experienced Management and Board Members Tanmiah is led by committed shareholders and experienced management, each of whom has over 25 years of professional experience A competent executive management team A 6-member BoD with rich and diverse expertise and backgrounds Sayed Zulfiqar Al-Hamdani Chief
Slide 9: Operates in a Growing Defensive Sector
Operates in a Growing Defensive Sector … A growing population coupled with strong spending boosted the Saudi Arabian economy Saudi Population (MN) Total Spending (SAR BN) CAGR 14-19 CAGR 16-20 2.4% 1.3% POS Cash Withdrawals 34.2 33.4 981 1,028 986 32.6 936 929 31.8 31.1 30.3 741 629 753 729 748 288
Slide 10: Leading Player in Market Offering Wide Product Range
Leading Player in Market Offering Wide Product Range Supported by its solid sector experience and efficient and integrated business model, Tanmiah will be able to capture potential market growth and increase its local market share Key Market Players By Capacity Market Size (KT) CAGR (Bird’ 000/ Day)
Slide 11: Supported by Government Initiatives
Supported by Government Initiatives The Saudi government continues to support the Food sector directly and indirectly as part of the 2030 vision initiatives and programs 2020 2030 Private Sector GDP Contribution 50% 65% of GDP of GDP 2020 2025 Broiler Self Sufficiency Goals 60% 80% ü Achieved as of
Slide 12: Strategy and Business Model
02 Strategy and Business Model
Slide 13: Fully Integrated Food Producer with Efficient Business Model
Fully Integrated Food Producer with Efficient Business Model With nearly 60 years of sector experience, Tanmiah has built and operates a highly efficient business model to support its wide product range Input Process Final Product Breeders Locally Sourced Breeder Broiler Feed ADC Feed Mill Hatcherie
Slide 14: Subsidiaries Well Positioned to Support Tanmiah's Fully Integrated Business Model
Subsidiaries Well Positioned to Support Tanmiah’s Fully Integrated Business Model Further Processed Meat Animal Feed and Business Unit Broilers Products Veterinary Services Subsidiary 1 Feed Mill 3 Further Processing Plants 21 Breeder Farms Ø Riyadh Ø Jeddah 2 Pharmacies Operating 6 Hatcheries Ø Dub
Slide 15: Strong Foundation For Future Growth
Strong Foundation For Future Growth We are confident of achieving our aim of becoming a leading producer and distributor of food products, including poultry and meat products in the MENA region Our pathway to further rapid expansion rests on solid ground 01 02 03 04 05 Asset-light Our excellent Our
Slide 16: Strong Foundation For Future Growth
Strong Foundation For Future Growth Planned Capex of SAR 733 MN allowing Tanmiah to capture new and emerging growth opportunities. Asset-light business model enables rapid and flexible expansion Planned Capital Expenditure Targeted Capital Structure (SAR MN) (%) 733 Expansion of PPL, Hatcheries, Fee
Slide 17: Strong Foundation For Future Growth
Strong Foundation For Future Growth By 2025, Tanmiah intends to increase primary processing capacity and further processing capacity PPL YE Capacity FPP YE Capacities (Bird’ 000/ day) (KT/ year) 80% 83% 91% 78% 89% 74% 73% 80% 80% 80% 37 37 1,208 31 1,124 26 840 21 651 464 2021 2022 2023 2024 2025 2
Slide 18: 1H21 and 2Q21 Financial Highlights
03 1H21 and 2Q21 Financial Highlights
Slide 19: Financial Performance
Financial Performance Tanmiah recorded strong revenue growth amid resurgence in consumer spending Revenues (SAR mn) Revenue contribution 1H 21 +27.6% 734.9 10% 575.8 +30.8% 366.5 21% 280.1 69% 2Q 20 2Q 21 1H 20 1H 21 2Q 20 2Q 21 1H 20 1H 21 Fresh Poultry Further Processed Products Animal Feed and Ve
Slide 20: Financial Performance – 1H 2021
Financial Performance – 1H 2021 Pressure on margins due to high grain pricing in global markets Gross Profit and Gross Margin EBITDA and EBITDA Margin Net Income and Net Income Margin 24.2% 180 167.5 24.5% 4.6% 90 24.0% 13.5% 16.0%30 5.0% 160 23.7% 80 26.5 139.3 80 77.5 14.0%25 4.5% 140 23.5% 12.7%
Slide 21: Segmental performance
Segmental performance Further Processed Animal Feed & Vet Fresh Poultry Products Services § Fresh poultry was the § 90.2% growth in § Animal feed sales largest contributor to 1H21 on a y-o-y decreased due to Company revenues, basis internal consumption growing by 23% y-o-y § Positive performance at
Slide 22: Prudent balance sheet management
Prudent balance sheet management Balance sheet (SAR mn) 684 840 643 893 231 207 391 370 357 348 Assets Liabilities and Equity Assets Liabilities and Equity Non-current assets Curre nt Assets Equity Non-current Liabilities Curre nt Liabilities 1H2021 Dec 2020 RoIC % 6% 12% Profitability RoE % 6% 21%
Slide 23: Sustainability
04 Sustainability
Slide 24: Committed to environmental and social sustainability
Committed to environmental and social sustainability Tanmiah puts sustainability at the heart of its operations Environmental initiatives Community initiatives § Solid and wastewater recycling – convert water to value § Hiring and training of orphans with the support of Kayan to minimize harmful env
Slide 25: Appendix
05 Appendix
Slide 26: Income statement
Income statement SAR (mn) 2Q 21 2Q 20 1H 21 1H 20 Revenue 366.5 280.1 734.9 575.8 Cost of sales (288.3) (213.9) (567.4) (436.4) Gross profit 78.2 66.3 167.5 139.3 Selling and distribution expenses (47.4) (29.8) (89.9) (61.5) General and administrative expenses (20.1) (16.4) (39.2) (32.6) Impairment
Slide 27: Balance sheet
Balance sheet SAR (mn) 1H 2021 FY 2020 Total non-current assets 391.1 357.4 Total current assets 893.5 840.0 Total assets 1,284.6 1,197.3 Total equity 369.9 347.5 Total non-current liabilities 230.8 206.6 Total current liabilities 683.8 643.2 Total liabilities 914.6 849.8 Total equity and liabilitie
Slide 28: Thank You
THANK YOU Investor Relations & Media Queries Mr. Hussam Al Shareef, Investor Relations Officer ir@tanmiah.com www.tanmiah.com 28