Savola Group · TADAWUL:2050
Savola — Q2 2024 Earnings Presentation
34 slides from Savola's earnings presentation, Aug 20, 2024
Slide 1: Savola Group Earnings Presentation Q2 2024
Savola Group www.savola.com Earnings Presentation | Q2 2024 Date: 20 Aug 2024
Slide 2: Disclaimer
DISCLAIMER This presentation might contain 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
Slide 3: Savola Group Key Highlights
Savola Group Key Highlights 3
Slide 4: Savola Group – H1 2024 Highlights
Savola Group – H1 2024 Highlights Solid Performance continues Savola Group Savola Group showed solid performance driven by strong performance in Panda and improvement in Savola Foods‘ Performance sugar segment despite challenges in certain territories and segments Panda’s Profitability Panda reporte
Slide 5: Group Financial Highlights
Group Financial Highlights 5
Slide 6: Savola Group – Consolidated Financial Highlights
Savola Group – Consolidated Financial Highlights Margin SAR in millions Q1-24 Q2-24 YTD-24 Q1-23 Q2-23 YTD-23 -5.4% -0.4% -11.8% 13,908 13,157 Revenue 7,814 7,782 6,093 5,375 +3.1% +7.8% -2.6% 2,749 2,834 Gross Profit 1,502 1,619 1,247 1,215 19.2% 20.8% 20.5% 22.6% 19.8% 21.5% Note: numbers are roun
Slide 7: Savola Group – Consolidated Financial Highlights
Savola Group – Consolidated Financial Highlights Margin SAR in millions Q1-24 Q2-24 YTD-24 Q1-23 Q2-23 YTD-23 +6.0% +9.4% +1.2% 1,706 1,808 EBITDA 996 1,090 718 710 12.7% 14.0% 11.7% 13.4% 12.3% 13.7% -7.8% -11.2% +2.5% 525 484 Net Income 393 349 132 135 5.0% 4.5% 2.2% 2.5% 3.8% 3.7% *Excluding 484*
Slide 8: Savola Group – H1 2024 Revenue & Net Income Bridge By Business
Savola Group – H1 2024 Revenue & Net Income Bridge By Business Revenue Bridge by Business Net Income Bridge by Business SAR in millions SAR in millions -5.4% -7.8% 0.0% 13,908 525 (2) (15) 15 (877) 13,157 484 76 (66) 484 101 23 27 (25) (41) (7) Includes SAR 341mn impact of Morocco exit and suspensio
Slide 9: Group – Revenue Mix, Net Debt & Capex
Group – Revenue Mix, Net Debt & Capex SAR in millions Revenue by Business1 Revenue by Geography YTD-23 YTD-24 YTD-23 YTD-24 3% 3% 7% 6% 4% 9% 6% 4% 16% 38% 52% 16% 55% 41% 68% 71% Savola Foods Panda Al Kabeer Herfy Arabia Egypt Central Asia Others3 YoY Growth -11.3% 1.9% 6.2% 4.8% -1.0% -3.9% -31.3%
Slide 10: Savola Group - Core Portfolio EBITDA Trend
Savola Group - Core Portfolio EBITDA Trend Savola Group’s core portfolio of Foods and Retail has demonstrated growth momentum despite various headwinds SAR in millions ▪ Strong EBITDA growth Foods1 over the years 1,615 1,290 ▪ Performance hinged 983 on strengthening its 882 892 core businesses along
Slide 11: Savola Foods Company
JgOLA SAVOLA Savola Foods Company + f quac il Foods —Yy, gots 11
Slide 12: Savola Foods – Consolidated Financial Highlights
Savola Foods – Consolidated Financial Highlights Margin SAR in millions ▪ During H1 2024, Savola Foods’ Q1-23 Q1-24 Q2-23 Q2-24 YTD-23 YTD-24 Revenue dropped by 11% YoY due to: -11.3% o Drop in edible oil prices, -3.3% o Lower volumes in edible oil -21.5% segment primarily in Egypt, 7,795 6,918 Reve
Slide 13: Savola Foods – Consolidated Financial Highlights
Savola Foods – Consolidated Financial Highlights Margin SAR in millions ▪ Gross Profit and EBITDA improved Q1-23 Q1-24 Q2-23 Q2-24 YTD-23 YTD-24 due to higher contribution margin +3.0% ▪ Net Income declined 16% in H1 2024 compared to LY primarily due +9.3% to: -8.4% 846 o Higher financial charges 82
Slide 14: Selected Commodity Snapshots (FAO)
Selected Commodity Snapshots (FAO) FAO Vegetable Oils Index (rebased)(1) FAO Sugar Index (rebased)(2) 400 600 350 500 300 400 250 July’24 July’24 189.56 334.50 200 300 150 200 100 100 50 0 0 2009 2018 2004 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2014 2015 2016 2017 2019 2019 2020 2021
Slide 15: Savola Foods – Oil Segment Analysis
Savola Foods – Oil Segment Analysis Margin SAR in millions Volume (MT ‘000) Revenue Gross Profit EBITDA Net Income 17.7% 19.9% 12.4% 13.5% 6.2% 4.0% -17.9% 5,275 4,331 1,876 -7.7% 1,455 -22.4% 935 -5.6% 863 -10.8% 896 846 415 293 -29.3% 656 272 586 262 -3.7% 3,399 2,876 -15.4% 303 179 -41.0% -46.6%
Slide 16: Savola Foods – Sugar Segment Analysis
Savola Foods – Sugar Segment Analysis Margin SAR in millions Volume (MT ‘000) Revenue Gross Profit EBITDA Net Income 10.3% 11.4% 8.1% 9.9% NM 3.2% +22.5% 1,862 1,520 +12.7% 658 1,614 +22.3% +34.9% 584 212 +50.7% 1,320 157 185 60 109 +52.5% 123 526 579 +10.2% 72 103 +82.0% 57 43 NM 85 102 +20.1% 82 +
Slide 17: Savola Foods – Nuts, Spices And Pulses Segment Analysis
Savola Foods – Nuts, Spices And Pulses Segment Analysis SAR in millions Revenue Gross Profit EBITDA Net Income +5% 33.0% 33.5% 15.4% 15.4% 11.4% 10.4% 245 233 UAE +7% 77 82 +5% 36 38 -4% 27 25 15.8% 27.6% +31% 55 42 KSA +130% 15 (Relaunch 7 Segment) -15 -19 -22 -20 NM NM YTD-23 YTD-24 YTD-23 YTD-24
Slide 18: Bayara UAE launches new Bayara World Boutiques
Bayara UAE continues to invigorate the brand and business through launch of new Bayara World Boutiques ▪ Bayara UAE continues to roll out its “Bayara World” boutiques in prime locations, enhancing its market positioning and branding 18
Slide 19: Panda Retail Company
Panda Retail Company JgOLA SAVOLA — 19
Slide 20: Panda – Consolidated Financial Highlights
Panda – Consolidated Financial Highlights Margin SAR in millions ▪ H1 2024 Revenue is higher YoY Q1-23 Q1-24 Q2-23 Q2-24 YTD-23 YTD-24 by 2% mainly driven by performance of completed CXR +1.9% stores and new store openings towards the end of Q4 2023 +3.2% +0.1% ▪ Overall growth is muted by the 5,416
Slide 21: Panda – Consolidated Financial Highlights
Panda – Consolidated Financial Highlights Margin SAR in millions ▪ EBITDA improved in H1 2024 Q1-23 Q1-24 Q2-23 Q2-24 YTD-23 YTD-24 compared to the LY, mainly due to higher Revenue and improved gross margin +25.1% +26.6% +25.8% ▪ EBITDA margin is on an increasing trend: EBITDA 231 219 450 o Up by 16
Slide 22: Panda CXR Update
Panda CXR Update CXR Update Completed CXR performance YTD June 24 vs. LY 10 85 75 Wave 1 +7.0% Wave 2 +9.6% Dec Completed June 2023 2024 ▪ In Wave 4, Panda completed 10 CXR stores at the end of H1 Wave 3 +3.2% 2024 with 18 more stores expected to complete by end of 2024 ▪ The previously completed 75
Slide 23: Panda – Number Of Stores
Panda – Number Of Stores Super Hyper 131 1 0 132 62 0 0 62 Dec Additions Closures June Dec Additions Closures June 2023 2024 2023 2024 Total Dec-23 June-24 Net Selling Area Net Selling Area ▪ 1 new store in Egypt 538K m2 541K m2 during H1 2024 193 1 0 194 ▪ Total store count: 188 stores in KSA and 6
Slide 24: Al Kabeer
Al Kabeer =—Yy (nei Al Kabeer
Slide 25: Al Kabeer – Consolidated Financial Highlights
Al Kabeer – Consolidated Financial Highlights Margin SAR in millions ▪ During H1 2024, Al Kabeer reported a Q1-23 Q1-24 Q2-23 Q2-24 YTD-23 YTD-24 healthy Revenue growth primarily driven by: +6.2% o Improved volumes in most product +9.1% categories +2.8% o Growth in its core KSA and UAE 376 399 marke
Slide 26: Al Kabeer – Consolidated Financial Highlights
Al Kabeer – Consolidated Financial Highlights Margin SAR in millions ▪ Al Kabeer has also continued to spend Q1-23 Q1-23 Q2-22 Q2-24 YTD-23 YTD-24 towards marketing & branding efforts along with product innovations -4.1% ▪ H1 2024 Net Income includes impact of -7.3% corporate income tax introduced i
Slide 27: Rights Issue and Distribution Transaction Update
Rights Issue and Distribution Transaction Update 27
Slide 28: The Transaction Has Four Interlinked Components
The Transaction Has Four Interlinked Components • Savola will distribute its entire 34.52% shareholding in Almarai to eligible shareholders • Distribution will be preceded by a SAR 6.0 billion rights issue, strengthening Savola’s financial position and optimizing the capital structure Four component
Slide 29: Capital Increase and Debt Repayment using Rights Issue Proceeds at Savola
Capital Increase and Debt Repayment using Rights Issue Proceeds at Savola The first step of the transaction will involve a rights issue, with the proceeds from this issue being used to settle debt at group level Pro-forma Impact on Balance sheet1 (in SAR m) Share Capital Impact from Rights Issue Rec
Slide 30: Rights Issue Indicative Operations Timeline
Rights Issue Indicative Operations Timeline This is an illustrative timeline subject to receipt of EGM approval as of 25th August 2024, and other regulatory approvals Key milestones and dates Monthly Calendar Milestone Indicative Dates July 2024 S M T W T F S CMA Approval 31 July 28 29 30 31 August
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Slide 32: Financial Summary
JgbLa SAVOLA Financial Summary 32
Slide 33: Financials – H1 2024
Financials – H1 2024 (All figures are in SAR mn) Segment Wise Financials 1 H1 2024 H1 2023 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Savola Foods Oil Arabia2 1,455 293 151 122 179 1,876 415 274 233 303 Other Markets3 2,903 569 367 48 408 3,767 534 303 66
Slide 34: Thank you
Jgola SAVOLA Thank you www.savola.com 34