Savola Group · TADAWUL:2050
Savola — Q3 2009 Earnings Presentation
24 slides from Savola's earnings presentation, Oct 18, 2009
Slide 1: The Savola Group Press Conference
The Savola Group Press Conference Group Results for the Three months and The Nine months ended 30/9/2009 Dr. Sami M. Baroum – Managing Director Sunday, 18 October 2009
Slide 2: Contents
2 Contents: Group Strategy and Execution plan Progress and update on strategy execution Results for the Three months and The Nine months ended 30/9/2009 4th Quarter projection
Slide 3: Savola Group Strategy and Execution plan
Savola Group Strategy and Execution plan
Slide 4: Focus & Leverage
“Focus & Leverage” Focus on accelerating the Leverage on our growth in our core strategic assets & businesses core competencies
Slide 5: The Group Strategy: Focus & Leverage
5 The Group Strategy Focus & Leverage Focus on accelerating the growth in Leverage on our strategic assets & our core businesses core competencies Distribution Network Acquiring additional shares in Repeatable success formula the core sectors Branding Power Acquire or merge with rivals O
Slide 6: Acquiring additional shares in the core sectors
6 Acquiring additional shares in the core sectors Additional 10% in Savola Foods to reach 90% shareholding Additional 31% in Savola Behshar to reached a controlling stake of 80% Additional 5% in Afia Egypt to reach 100% Additional 30% in New Marina Plast to reached 100% Started negotiation
Slide 7: Acquire or merge with rivals
7 Acquire or merge with rivals Merger of Giant Stores in Panda Acquisition of key assets of Gèant Stores in Saudi Sales area per square meters 450 403 400 82 350 303 300 67 67 250 200 150 236 254 100 176 50 0 2007 2008 (9 months) 2009 Panda Giant Stores Geant Acquisition of an edible oil opera
Slide 8: Increase Production capacity
8 Increase Production capacity Commissioned the Sugar Refinery in Egypt Completed the technical studies to increase the capacity of Egypt Sugar refinery from 750KMT to 1 million tons by adding a beet sugar line Commissioned edible oil refinery in Algeria Launch of Iran Sugar project Starte
Slide 9: Focus in cost reduction and improve profitability
9 Focus in cost reduction and improve profitability Merging of Oil and Sugar operation has unlocked many synergies that reduced cost in Commodity buying Sales and marketing Advertising and promotion Administration cost Net profit for the food sector (Millions Riyals) 350 250 321 150 252 13
Slide 10: Focus in cost reduction and improve profitability
10 Focus in cost reduction and improve profitability Economy of scale in the retail sector has helped in improving the sector profit margin An outstanding performance in the plastics sector through focusing on cost reduction and improved profitability. The sector profitability is 211% of its 200
Slide 11: The international operation profitability improvement
11 The international operation profitability improvement Net profit from the oil international operation has grown by 375% and it is contributing to an equivalent of 57% of the profit from oil sector 57% 400 3 75% 350 300 250 36% 200 150 100 50 - first 9 months of first 9 months of first 9 months
Slide 12: Conservative approach toward non-core investments
12 Conservative approach toward non-core investments The Group has adopted ambitious strategies of focus and leverage to grow its operating profit from its core activities within and outside the Kingdom Complete liquidation of the group shares portfolio Conservative accounting policy in evalua
Slide 13: The group net profit without capital gains
13 The group net profit without capital gains 750 Net income without capital gain (Millions Riyals) 650 550 3 3 656 450 % 3 350 483 250 311 150 197 50 For the first 9 For the first 9 For the first 9 For the first 9 month period month period month period month period of 2006 of 2007 of 2008 of 2009
Slide 14: Reduction in the Group dependence on capital gains
14 Reduction in the Group dependence on capital gains 70% 1200 79% 1000 28% 4% 800 27 742 600 719 183 400 656 483 200 311 197 0 first 9 months first 9 months first 9 months first 9 months of 2006 of 2007 of 2008 of 2009 Net income before capital gain profit capital gain profit
Slide 15: Summary of the group results for the 3rd Quarter and nine months
Summary of the group results for the 3rd Quarter, and the nine months ended 30 Sep 2009
Slide 16: Comparative analysis for the first nine months period of 2009
16 Comparative analysis for the first nine months period of 2009 SR million Nine months Nine months Growth 2009 2008 % Net revenues 13,096 10,228 28% Gross profit 2,340 1,542 52% GP% 17.90% 15.10% EBIT 1,102 719 53% Capital Gains and 27 183 -185% others Net Profit (loss) 683 666 2.60% EPS 1.37 1.33
Slide 17: Comparative analysis for the 3rd Quarter 2009
17 Comparative analysis for the 3rd Quarter 2009 SR million Nine months Nine months Growth 2009 2008 % Net revenues 5,104 3,919 30% Gross profit 903 511 77% GP% 17.80% 13.00% EBIT 449 242 86% Capital Gains and 0 12 - others Net Profit (loss( 278 158 76% EPS 0.56 0.32
Slide 18: Comparative analysis for the 3rd Quarter 2009: Group net revenue
18 Comparative analysis for the 3rd Quarter 2009 Group net revenue SR million Q3, 2008 Q3, 2009 Nine Nine Growth months months % 2009 2009 Foods 2,864 2,820 7,346 7,631 -3.70% Retail 1,490 1,960 5,415 3,801 42% Plastics 233 206 552 578 -4.30% Others strategic 135 149 389 344 13% minorities and -80
Slide 19: Group's Net revenue
19 Group’s Net revenue 24% increase in Sales volume in the foods sector Despite the increase in volume, net revenue went down by 4% as a result of the reduction in the raw material prices and passing this reduction to the end consumer Net sales (Thousand Riyals) Sales volume (Thousand Tons) 1,94
Slide 20: Group's Net revenue in Plastics
20 Group’s Net revenue In Plastics… 80 600 Net Sales Sales Volume 70 550 500 60 74.8 450 582 552 50 66.7 400 40 350 30 300 For the first 9 For the first 9 For the first 9 month For the first 9 month month of 2009 month of 2009 of 2008 of 2009
Slide 21: Net revenues: an outstanding growth
21 Net revenues: an outstanding growth Net sales 14,000 12,000 ~200% 10,000 8,000 13,095 6,000 10,228 4,000 6,630 7,779 2,000 - 9 months of 9 months of 9 months of 9 months of 2006 2007 2008 2009
Slide 22: Non-managed sectors
22 Non-managed sectors Almarai (28%) Almarai, the leading producer of fresh dairy and juices, grew its net profit to 747.9 SRM (7.78 SR/share) in the 9 months period. A growth of 23% over the same period of last year Herfy (70%) Continued growth in number of outlets and production capacities
Slide 23: 4th Quarter projections for 2009
23 4th Quarter projections for 2009 The Group increases its projection for the year from 800 SRM to 846 SRM. Project a net profit for Q4 of 190 SRM excluding any capital gains that may be released The capital gain of 27 SRM that has been recorded so far is on top of the above projection A di
Slide 24: Thank You
Thank You