Slide 1: Investor Presentation FY'22 results
Investor Presentation FY’22 results 08 March 2023
Slide 2: Disclaimer
02 Analyst and Investor Call Disclaimer Agthia Group PJSC and its management may make certain statements that constitute “forward-looking statements” with respect to the financial condition, results of operations and business of the Group. These statements can be identified by the fact that they do
Slide 3: Agenda
03 Analyst and Investor Call Agenda 1 2 3 Strategic Segmental Key financials update performance 4 5 6 Key operational Guidance Appendix highlights
Slide 4: Recap: Our strategic vision to become a regional F&B leader by 2025
04 Analyst and Investor Call Recap: Our strategic vision to become a regional F&B leader by 2025 From… To… UAE centric Footprint MENAP & beyond Becoming a Commoditized portfolio Value-add F&B brands regional F&B Stable financial performance Strong shareholder returns leader by 2025 Local organizatio
Slide 5: Progress on strategic vision – to date
05 Analyst and Investor Call Progress on strategic vision – to date Delivering Growth Driving Efficiency Expanding Capabilities • Consolidated six acquisitions (AED • Focus on productivity enhancement: • Strengthened leadership team 1.8BN acquired revenue) - >AED 130MN since Jan’21 (FY’22 c. • Progr
Slide 6: Doubled the business with significant profitability improvement in 2 years
06 Analyst and Investor Call Doubled the business with significant profitability improvement in 2 years 4,067 14.2% +601bps 59 2X 8.2% 2,061 132 73 FY'20 FY'22 FY'20 FY'22 FY'21 FY'22 to-date AED MN AED MN
Slide 7: Key Financials
Key Financials
Slide 8: FY'22 headlines: Another strong performance year
08 Analyst and Investor Call FY’22 headlines: Another strong performance year 4,067 578 +33% +27% 3,068 455 247 216 +14% FY'21 FY'22 FY'21 FY'22 FY'21 FY'22 +9% -60bps Δmargin -100bps Δmargin LFL growth vs -175bps peers2 vs -370bps peers2 AED MN AED MN AED MN 1Net profit attributed to shareholders 2
Slide 9: FY'22: Ahead of all external guidance
09 Analyst and Investor Call FY’22: Ahead of all external guidance 2022 excl. +31% +14% AED 497MN Abu Auf1 2022 Guidance +25 to 30% +10 to 11% AED 400MN 12022 metrics excluding the contribution and associated costs relating to the acquisition of Abu Auf in Q4’22
Slide 10: …amidst a challenging backdrop
10 Analyst and Investor Call …amidst a challenging backdrop 18.8 2.4% + AED 270 MN 15.7 additional commodity costs 0.16% FY'21 FY'22 FY'21 FY'22 Average EGP vs USD FX rate Average 3M LIBOR
Slide 11: Proactive working capital management underpins good cash conversion
11 Analyst and Investor Call Proactive working capital management underpins good cash conversion 34.2% +13% 24.5% 21.3% >100% FY'20 FY'21 FY'22 1FCF conversion ratio = Free Cash Flow / Group Net Profit incl minority
Slide 12: Strong topline growth driven by key Protein and Snacking segments
12 Analyst and Investor Call Strong topline growth driven by key Protein and Snacking segments 2022 revenue growth +33% YoY, with 22% from volume and 11% from pricing Group Revenue (AED MN) 4,067 129 92 101 10 3,068 363 305 Inorganic growth1 FY'21 Snacking Protein Water & Food AgriBusiness Snacking
Slide 13: EBITDA growth broadly inline with revenue
13 Analyst and Investor Call EBITDA growth broadly inline with revenue 2022 EBITDA growth +27% YoY Group EBITDA (AED MN) 578 1 4 13 (2) 455 1 56 51 Inorganic growth1 FY'21 Snacking Protein Water & Food AgriBusiness Snacking Protein & Frozen Others* FY'22 acquisitions acquisitions 1Snacking acquisiti
Slide 14: Double digit net profit growth despite higher interest rate environment
14 Analyst and Investor Call Double digit net profit growth despite higher interest rate environment 2022 net profit growth +14% YoY Owners Net profit1 (AED MN) 10 (2) 1 23 26 (58) 247 216 31 Inorganic growth3 FY'21 Snacking Protein Water & Food AgriBusiness Snacking Protein & Frozen Interest cost &
Slide 15: Robust balance sheet with low leverage
15 Analyst and Investor Call Robust balance sheet with low leverage Net debt / EBITDA Interest coverage1 2.3x 7.6x Liquidity2 AED 1.9BN Dividend yield3 4.0% FY’22 DPS = AED 0.1652 1Interest coverage = EBITDA / Interest expense 2Liquidity = Cash balance + undrawn portion of credit facilities 3Subject
Slide 16: Improved dividend trend
16 Analyst and Investor Call Improved dividend trend 32% 35% 44% 43% 66% 85%1 58% 55% 51% 53% Dividend Payout % 0.165 0.165 0.165 0.150 0.150 0.150 0.150 0.125 Dividends per Share 0.0825 0.0825 (AED) 2015 2016 2017 2018 2019 2020 2021 H1 2022 H2 2022* 2022* 1Normalized EPS for 2020 *H2’2022 recommen
Slide 17: Segmental performance
Segmental performance
Slide 18: Shift towards high-growth segments in large growing scalable markets
18 Analyst and Investor Call Shift towards high-growth segments in large growing scalable markets 75% 75% 9% 25% 28% 25% 13% 12% 49% 10%10% 24% 17% 23% 1% 1% Protein & Snacking Water & Agribusiness UAE Other Arab Countries Protein & Frozen Frozen Food Water & Food GCC excl UAE RoW Snacking Agri Busi
Slide 19: Protein: Strong and continuing momentum despite FX and commodity headwinds
19 Analyst and Investor Call Protein: Strong and continuing momentum despite FX and commodity headwinds 1,147 179 +75% +62% 656 110 FY'21 FY'22 FY'21 FY'22 AED MN AED MN
Slide 20: Snacking: strong volume growth in dates and contribution from BMB and Auf
20 Analyst and Investor Call Snacking: strong volume growth in dates and contribution from BMB and Auf 946 189 134 +41% +75% 540 FY'21 FY'22 FY'21 FY'22 AED MN AED MN
Slide 21: Water & Food: retained market leadership in UAE water
21 Analyst and Investor Call Water & Food: retained market leadership in UAE water1 145 146 +1% 951 flat 941 FY'21 FY'22 FY'21 FY'22 AED MN AED MN 127.4% value share across retail channel in the UAE based on AC Nielsen retail audit for bottled water excluding mineral water – FY’22 submission
Slide 22: Agri: resilient performance despite significant commodity inflation
22 Analyst and Investor Call Agri: resilient performance despite significant commodity inflation 1,023 +10% 167 167 931 flat FY'21 FY'22 FY'21 FY'22 AED MN AED MN
Slide 23: Key Operational Highlights
Key Operational Highlights
Slide 24: Strengthened leadership team with track record of value creation
24 Analyst and Investor Call Strengthened leadership team with track record of value creation Group Functions Business Unit Functions Alan Sherif Ramy Vandy Dos Mujtaba Abdulla Mubarak Ahmad Ahmad Declan Smith Elfaham Merdan Santos Hussain Al Marzooqi Al Mansoori Yahya Sallakh Bennett Chief Executiv
Slide 25: Sample Product Innovation and Awards
25 Analyst and Investor Call Sample Product Innovation and Awards Water Snacking Protein Innovation Best of Middle East Prime Awards 2022 Prime Awards 2022 Superior Taste Awards Innovation Award Gold for Design & Gold & Silver for from the International Innovation Sustainable Packaging Taste Institu
Slide 26: Investing in growth: Protein expansion in KSA
26 Analyst and Investor Call Investing in growth: Protein expansion in KSA Project overview ▪ Location: Jeddah, KSA ▪ Category: Protein ▪ Capex c. AED 84MN (Phase 1) ▪ Available land 9,436 sqm; Built-up area 6,600 sqm ▪ Capacity ≈ 6,500- 8,700 tons/annum ▪ ≈ 50 SKUs Rationale ▪ Strengthen footprint
Slide 27: 5-year digital roadmap with clear priorities
27 Analyst and Investor Call 5-year digital roadmap with clear priorities Priority #1 Priority #2 • Seamless omnichannel experience with optimised • Integrated business planning and cross-domain online and in-store execution collaboration • Strongest e-commerce brand through digital • Resilient oper
Slide 28: Our Sustainability Agenda: adopting a "4 P" approach
28 Analyst and Investor Call Our Sustainability Agenda: adopting a “4 P” approach Packaging Processes • Target packaging material reduction of 3,000 tons • 2.6% reduction in water usage ratio (2022 vs 2021) • +5x PLA YoY volume growth in 2022 • 4.9% reduction in water usage for Water BU (2022 vs 202
Slide 29: A forward looking company
29 Analyst and Investor Call A forward looking company Market leading position across key categories and geographies Growing portfolio of consumer-centric brands in large, scalable markets Growth-oriented mindset focused on leveraging synergies, innovation and digitization Attractive economics with
Slide 30: Guidance
Guidance
Slide 31: Recap: Doubled the business with significant profitability improvement in 2 years
31 Analyst and Investor Call Recap: Doubled the business with significant profitability improvement in 2 years 4,067 14.2% +601bps 59 2X 8.2% 2,061 132 73 FY'20 FY'22 FY'20 FY'22 FY'21 FY'22 to-date AED MN AED MN
Slide 32: Reigniting 2025 ambition
32 Analyst and Investor Call Reigniting 2025 ambition EBITDA % Net Profit Margin% 8.2% 14.2% 15.5-16.5% 1.7% 6.7% 8.5-10% 9-10% 6.0 4.1 578 6.5% 275 2.1 2.0% 170 36 2020 2022 2025 2020 2022 2025 2020 2022 2025 2020 2022 2025 AED BN AED MN AED MN 1Net income = 100% share of profit including minoritie
Slide 33: FY'25 Outlook
33 Analyst and Investor Call FY’25 Outlook AED 6 BN 15.5-16.5% 8.5 to 10% 9 to 10% Double-digit growth CAGR + +150 to 200bps +200 to 300bps +250 to 350bps Inorganic growth 1Net income = 100% share of profit including minorities Assumed UAE tax law effective starting Jan’24 (TBC)
Slide 34: FY'23 Guidance
34 Analyst and Investor Call FY’23 Guidance +10 to 12% +40 to 60bps +30 to 50bps • Current FX rates for USD / EGP 30.7 • Current FX rates for USD / EGP 30.7 • 100% of Group profit including minorities • No further acquisition • No further acquisition • Current FX rates for USD / EGP 30.7 • No furthe
Slide 35: ForThe Better * JaoUI Joi yo
ForThe Better * JaoUI Joi yo
Slide 36: Q4'22 Results Recap
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Slide 37: Q4'22 Group headlines
37 Analyst and Investor Call Q4’22 Group headlines 1,118 176 88 +17% +19% +15% 954 148 77 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 AED MN AED MN AED MN 1EBITDA and Net profit in Q4’21 exclude a one-off AED 36.2million price rebate 2Net profit attributed to shareholders
Slide 38: Q4'22 Protein headlines
38 Analyst and Investor Call Q4’22 Protein headlines 283 269 -5% 47 -7% 43 Q4'21 Q4'22 Q4'21 Q4'22 AED MN AED MN
Slide 39: Q4'22 Snacking headlines
39 Analyst and Investor Call Q4’22 Snacking headlines 347 +68% +30% 80 206 62 Q4'21 Q4'22 Q4'21 Q4'22 AED MN AED MN
Slide 40: Q4'22 Water & Food headlines
40 Analyst and Investor Call Q4’22 Water & Food headlines 238 40 226 +5% 29 +37% Q4'21 Q4'22 Q4'21 Q4'22 AED MN AED MN
Slide 41: Q4'22 Agri headlines
41 Analyst and Investor Call Q4’22 Agri headlines 264 43 239 38 +11% +14% Q4'21 Q4'22 Q4'21 Q4'22 AED MN AED MN 1EBITDA in Q4’21 excludes a one-off AED 36.2million price rebate
Slide 42: Appendix
ForThe Better * JA0UI Joi yo
Slide 43: Diversification into large, growing and scalable markets
43 Analyst and Investor Call Diversification into large, growing and scalable markets 51% of revenue from international markets (vs 10% FY’20) FY 2020 FY 2021 FY 2022 Revenues AED 2.1BN AED 3.1BN AED 4.1BN (2x FY’20) 9% 3% 9% 0% 7% 18% 25% 49% 58% 90% 15% 17% UAE GCC excl UAE Other Arab Countries Ro
Slide 44: Shift into margin-accretive categories
44 Analyst and Investor Call Shift into margin-accretive categories 75% revenue contribution from focus categories (vs 55% in FY’20) FY 2020 FY 2021 FY 2022 Revenues AED 2.1BN AED 3.1BN AED 4.1BN (2x FY’20) EBITDAm 8.2% 14.8% 14.2% (+601bps vs. FY’20) 6% 21% 25% 1% 30% 28% 45% 48% 18% 31% 24% 23% Pr
Slide 45: A balanced mix of growing brands
45 Analyst and Investor Call A balanced mix of growing brands 24% of sales 25% of sales 28% of sales 23% of sales Category Agribusiness Protein & Water & Food Snacking Frozen Veg. Assets Key markets Staple Discretionary
Slide 46: Leading player across key categories and geographies
46 Analyst and Investor Call Leading player across key categories and geographies Category (Geography) Rank Market volume share (%) Flour B2B (UAE) 1 44% Protein (Egypt) 1 40% Protein (Jordan) 1 37% Animal Feed B2B (UAE) 1 33% Bottled Water (UAE) 1 29% Flour B2C (UAE) 2 27% No market share data for
Slide 47: Al Foah: our blueprint to acquire, integrate and create value
47 Analyst and Investor Call Al Foah: our blueprint to acquire, integrate and create value +27% in 2 years +200% in 2 years 126 555 76 460 438 +5% +21% 42 +81% +66% c.AED 31MN annualized cost YoY YoY YoY YoY efficiencies FY'20 FY'21* FY'22 FY'20 FY'21* FY'22 AED MN AED MN *Jan 1 2021 = consolidation
Slide 48: Al Foah: our blueprint to acquire, integrate and create value (Cont'd)
48 Analyst and Investor Call Al Foah: our blueprint to acquire, integrate and create value (Cont’d) • Refreshed Date Crown brand • Geography: India, Brazil, Europe & USA • Shift to contract farming/harvesting • Innovations in varieties (KSA), sizes • Channel: Retail (B2C) • Focus on yield optimizati
Slide 49: Volume Growth: low elasticity across faster-growing categories
49 Analyst and Investor Call Volume Growth: low elasticity across faster-growing categories Protein & Frozen (‘000 tons) Snacking (‘000 tons) +55% +20% 136 123 113 107 95 61 43 23 26 29 17 18 5 6 0 7 Nabil Atyab TP&FV Protein & FV Dates Bakery UAE + BMB snacks Snacking Kuwait FY'21 FY'22 FY'21 FY'22
Slide 50: Softening of key input costs albeit remaining above historical averages
50 Analyst and Investor Call Softening of key input costs albeit remaining above historical averages Oil prices closed FY’22 down from Apr’22 peak but +14% vs. Avg. 2021 Key commodity prices remain elevated versus history 140 20 USD/barrel USD/bushel 120 15 100 80 10 60 40 5 20 - - Jan-20 Jun-20 Nov
Slide 51: Summary Profit & Loss Statement
51 Analyst and Investor Call Summary Profit & Loss Statement AED'000 Q4'22 Q4'21 YoY FY'22 FY'21 YoY Revenue 1,118,230 954,110 17% 4,067,394 3,067,614 33% Cost of sales -803,895 -621,401 29% -2,909,812 -2,110,937 38% Gross profit 314,335 332,709 -5.5% 1,157,582 956,677 21.0% Selling and distribution
Slide 52: Summary Balance Sheet Statement
52 Analyst and Investor Call Summary Balance Sheet Statement AED'000 FY'22 FY'21 Property, plant and equipment 1,446,027 1,500,436 Intangible assets & Goodwill 2,421,885 2,017,889 Others 104,521 133,695 Total non-current assets 3,972,433 3,652,020 Inventories 847,275 708,241 Trade and other receivab
Slide 53: Summary Cash Flow Statement
53 Analyst and Investor Call Summary Cash Flow Statement AED'000 Q4'22 Q4’21 YoY FY'22 FY'21 YoY Profit before tax & zakat expenses 96,473 128,163 -25% 301,325 248,202 21% Adjustments for: Depreciation & Amortization 61,943 53,882 15% 231,383 200,133 16% Provisions & Allowances 11,013 19,005 -42% 29
Slide 54: Thank you
For The Better + JAoUI Joi yo March 2023 iis