Savola Group · TADAWUL:2050
Savola — Q1 2017 Earnings Presentation
22 slides from Savola's earnings presentation, 2017
Slide 1: Earnings Presentation Q1 2017
Earnings Presentation Q1 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 • First time adoption of IFRS standards - Q1 2016 financials have been re- presented. As such, Herfy has been reclassified as subsidiary • Retail segment turnaround is well underway; the business achieved a negative working capital position and the revised decentralized organizati
Slide 4: Q1 2017 - Snapshot
Q1 2017 - SNAPSHOT » Q1 2017 revenue of SAR 5.8 bn (Q1 2016: SAR 6.4 bn) GROUP » Q1 2017 net income SAR 4.8 mn (Q1 2016: SAR 119.4 mn) » Adjusted net loss of SAR 20.2 mn after adjusting for dilution gain » Q1 2017 revenue of SAR 2.7 bn (Q1 2016: SAR 3.3 bn) RETAIL » Q1 2017 net loss of SAR 229.4 mn
Slide 5: Group – Consolidated Financial Snapshot
GROUP – CONSOLIDATED FINANCIAL SNAPSHOT Adjusted Net Gross Net Revenue EBIT Income / Profit Income / (Loss) (Loss) SAR Mn Q1 5,833 1,040 139 5 (20) 2017 -9.2% vs. LY -18.3% vs. LY -58.9% vs. LY -96.0% vs. LY Q1 2016: 140 5
Slide 6: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY Sales YoY Gross Profit -9% -18% 6,422 5,833 1,273 1,040 Q1 2016 Q1 2017 Q1 2016 Q1 2017 19.8% 17.8% YoY EBITDA YoY Net Income -35% -96% 512 332 119 5 Q1 2016 Q1 2017 Q1 2016 Q1 2017 8.0% 5.7% 1.9% 0.1% 6
Slide 7: Group – Consolidated Revenue Mix, Net Debt & Capex
GROUP – CONSOLIDATED REVENUE MIX, NET DEBT & CAPEX SAR Bn Revenue by Business Q1 2016 Q1 2017 SAR 6.4 Bn SAR 5.8 Bn 4.4% 4.6% Foods 45.1% Retail 49.7% Food Services 45.7% 50.5% Net Debt CAPEX -5% -66% 8,073 7,707 477 160 Q1 2016 Q1 2017 Q1 2016 Q1 2017 7
Slide 8: Implications of Exceptional Items
IMPLICATIONS OF EXCEPTIONAL ITEMS SAR Mn Adjusted Q1 2016 Net Income Adjusted Q1 2017 Net Income -114% 140 20 93 26 5 25 -20 Q1 2016 IFRS Share of Q1 2016 Q1 2017 Dilution Gain Q1 2017 reported NI Adjustment associate’s Adjusted NI reported NI on USCE Adjusted NI (SOCPA) liability 8
Slide 9: Panda Retail Company
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Slide 10: Retail - Snapshot
RETAIL - SNAPSHOT Gross Net Income Selling Revenue Profit / (Loss) Space SAR m Q1 2,721 529 (229) 762,973m2 2017 -16.8% vs. LY -28.6% vs. LY Q1 2016 : (32) 1.4% vs. FY 2016 10
Slide 11: Retail – Highlights
RETAIL – HIGHLIGHTS • The transformation exercise initiated last year is ongoing with several initiatives running concurrently. • Total retail selling space increased by 1.4% in Q1 2017 as 3 new stores were added (2 supers and 1 hyper) out of which 1 super market was opened in Egypt • LFL sales drop
Slide 12: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY Sales YoY Gross Profit -17% 3,271 2,721 -29% 741 529 Q1 2016 Q1 2017 Q1 2016 Q1 2017 22.7% 19.5% YoY EBITDA YoY Net Income 99 -32 (84) -229 Q1 2016 Q1 2017 Q1 2016 Q1 2017 3.0% -3.1% -1.0% -8.4% 12
Slide 13: Retail – Number of Stores by Quarter
RETAIL – NUMBER OF STORES BY QUARTER Super Hyper Hyper 3 in 1 in 1 in Egypt Egypt UAE 163 165 2 66 67 1 Dec Q1 Closures Q1 Dec Q1 Closures Q1 2016 ’17 ’17 2016 ’17 ’17 Pandati Total Total Selling Area Selling Area 752,784 m2 762,973 m2 410 413 3 181 181 Dec Q1 Closures Q1 Dec Q1 Closures Q1 2016 ’17
Slide 14: Retail Transformation – On Going
RETAIL TRANSFORMATION – ON GOING Guiding principles of the future organization Customer driven organization Differentiated value propositions of formats Empowerment of stores P&L ownership aligned with accountability Clear lines of ownership Economies of scale Flexibility and speed of action 14
Slide 15: Savola Foods
Ugola SAVOLA aftoll ELMALEKA >» SAVOLA FOODS JQola SAVOLA
Slide 16: Foods – Highlights
FOODS – HIGHLIGHTS • Q1 2017 total revenue of SAR 2.95 billion is 1% above Q1 2016 revenue of SAR 2.92 billion • Total volume of 838 k MT 3% below Q1 2016 mainly due to weakness in pasta and lower volume in Egypt oil • Finalised the closing of European Bank for Reconstruction and Development (EBRD)’
Slide 17: Foods - Snapshot
FOODS - SNAPSHOT Adjusted Net Gross Net Revenue EBIT Income / Profit Income / (Loss) (Loss) SAR m Q1 2,954 425 188 111 95 2017 +1.0% vs. LY -4.9% vs. LY -16.7% vs. LY +4.7% vs. LY -9.7% vs. LY 17
Slide 18: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY Sales YoY Gross Profit +1% 2,925 2,954 -5% 447 425 Q1 2016 Q1 2017 Q1 2016 Q1 2017 15.3% 14.4% YoY EBITDA YoY Net Income -12% +5% 261 229 106 111 Q1 2016 Q1 2017 Q1 2016 Q1 2017 8.9% 7.8% 3.6% 3.7% 18
Slide 19: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS SAR Mn Volume (MT 000) Revenues -3.2% -5.9% 413 2,054 388 1,989 4% 3% 4% 4% 4% 7% 4% 6% 5% 4% 6% 9% 8% 11% 10% 10% Morocco Morocco YoY +1% YoY +11% Sudan Sudan 32% YoY -5% 32% YoY -10% 36% 34% Algeria Algeria YoY +7% YoY +10% Turkey Turkey 15% YoY +2% 14% YoY -15% 12% Ir
Slide 20: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS SAR Mn Volume (MT 000)* Revenues* KSA +20.7% KSA YoY +1% YoY +24% Egypt 885 Egypt +2.3% 733 YoY +9% YoY -1% 384 393 91% 89% 86% 85% 14% 15% 11% 9% YTD 2016 YTD 2017 YTD 2016 YTD 2017 USCE Volume (MT 000) USCE Revenues +80.4% +34.7% 360 121 163 199 YTD 2016 YTD 2017 YTD
Slide 21: Financial Summary
JgoLA FINANCIAL SUMMARY SAVOLA
Slide 22: Financials – Q1 2017
FINANCIALS – Q1 2017 (all figures are in SAR millions) Segment Wise Financials Q1- 2017 Q1- 2016 (Re-presented) Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Food Oil-Mature Markets 1,707 296 130 91 147 1,780 333 188 147 201 Oil-Start-up Markets* 282 31 9 4