Slide 1: Analyst and Investor Call H1'22 Results
Analyst and Investor Call H1’22 Results August 2022
Slide 2: Agenda
02 Analyst and Investor Call Agenda 01 Strategy Update 04 Financial Performance 02 Acquisitions Update 05 Outlook 03 Business Performance 06 Appendix
Slide 3: A forward-looking company
03 Analyst and Investor Call A forward-looking company With a strategy to become a regional F&B leader by 2025 Dynamic and Unique integrated Organic and Robust financial expanding portfolio business model with acquisitive growth foundations to of value-add brands strong cost discipline throughout ME
Slide 4: Delivering exceptional growth
04 Analyst and Investor Call Delivering exceptional growth H1’22 highlights GROWTH EFFICIENCY CAPABILITY Expansion of the protein H1 Revenues of AED 2BN 73% contribution from business in KSA with the consolidation of focus categories (vs 65% in 5 acquisitions H1’21) 01 02 03 49% of revenues from EBI
Slide 5: Driving efficiency
05 Analyst and Investor Call Driving efficiency H1’22 highlights GROWTH EFFICIENCY CAPABILITY Broad based pricing Delivered H1 cost Synergies: New Simplification: supported by savings and avoidance Protein BU Conducted Revenue growth of AED 23.6MN restructured the strategic asset management leadersh
Slide 6: Expanding our capabilities
06 Analyst and Investor Call Expanding our capabilities H1’22 highlights GROWTH EFFICIENCY CAPABILITY Award winning Recruited new Chief Centralized Procurement products under a Digitalization Officer to focus Strategic thinking to navigate diversified portfolio: on building our Digital and IS supply
Slide 7: Committed to sustainability
07 Analyst and Investor Call Committed to sustainability • Commenced crafting a comprehensive ESG Strategy for the next ESG Strategy development 5 years, in line with the Corporate Strategy • Final Sustainability Strategy to be communicated in Q4 2022 Improvement in ESG ranking 41% Assessment 2018 2
Slide 8: Collaborating to deliver sustainable results
08 Analyst and Investor Call Collaborating to deliver sustainable results Transitioning into a circular business • Agthia is working closely with local authorities on the Circular • RECAPP partnership: innovative digital service developed by Veolia to Economy Policies for the UAE provide a free, doo
Slide 9: Acquisitions Update
Acquisitions Update
Slide 10: Latest acquisition: Abu Auf
10 Analyst and Investor Call Latest acquisition: Abu Auf A specialised healthy snacks and coffee manufacturer and retailer in Egypt Establishment Expansion Implementation of Vision Funded Growth Abu Auf Opening of Opening the Revenue Acquiring 100% Acquiring MICC to produces the first Abu first seas
Slide 11: Abu Auf – Agthia synergies
11 Analyst and Investor Call Abu Auf – Agthia synergies Potential revenue and cost synergies Product Portfolio Product Portfolio Mediterranean sweets, chocolate, healthy foods Dates, value added dates (stuffed and chocolate and ingredients categories coated) and dates-based products Revenue Synergie
Slide 12: Proforma P&L (LTM Jun'22)
12 Analyst and Investor Call Proforma P&L1 (LTM Jun’22) Pro-forma revenue (AED MN) 239 4,110 844 2,072 954 Agthia prior to M&As Protein Snacking excl Auf Auf Group Pro-forma revenue Pro-forma EBITDA (AED MN) 56 658 167 279 156 Agthia prior to M&As Protein Snacking excl Auf Auf Group Pro-forma EBITDA
Slide 13: Proforma margins (LTM Jun'22)
13 Analyst and Investor Call Proforma margins1 (LTM Jun’22) Pro-forma EBITDAm (%) Pro-forma NPM2 (%) 8.5% 16.0% 0.4% 0.4% 1.8% 1.1% 4.8% 1.4% 13.5% 1.0% Agthia prior to Protein Snacking excl Auf Auf Group Pro-forma Agthia prior to Protein Snacking excl Auf Auf Group Pro-forma NPM M&As EBITDAm M&As 1
Slide 14: H1 Business Performance
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Slide 15: Diversification by geography
15 Analyst and Investor Call Diversification by geography H1 2020 H1 2021 H1 2022 6% 3% 1% 6% 13% 13% 26% 51% 14% 67% 83% 17% Revenues AED 1.09BN AED 1.3BN AED 2BN (2x H1’20) RoW UAE GCC excl UAE Other Arab Countries
Slide 16: A shift towards higher margin categories
16 Analyst and Investor Call A shift towards higher margin categories H1 2020 H1 2021 H1 2022 Narrower legacy revenue base Transition to consumer value-add portfolio Towards larger & more diversified revenue base 27% 24% 35% 36% 46% 54% 17% 12% 21% 28% Revenues AED 1.09BN AED 1.3BN AED 2BN (2x H1’20
Slide 17: Water and Food
17 Analyst and Investor Call Water and Food Volume1 by category 59 58 Water & Food (24% of H1’22 revenues) 35 36 UAE Water 20 17 • Category in retail channel growing at 7% with Agthia preserving market leadership at 28.2% in value • Agthia channels (retail, food service, municipality and HOD): Volum
Slide 18: Protein and Frozen Vegetables
18 Analyst and Investor Call Protein and Frozen Vegetables Volume by category (‘000 tons) 44 Protein and Frozen Vegetables (29% of H1’22 revenues) 32 Protein 19 • The consolidation of newly acquired protein businesses in 14 Jordan and Egypt collectively added AED 493 million 12 • The same period las
Slide 19: Protein: Pre- and post-acquisition performance
19 Analyst and Investor Call Protein: Pre- and post-acquisition performance AED MN Protein1 496 Higher Revenues driven by higher volumes 23% 10% 9% (+15% y-o-y) and selling prices (+14% y-o-y) 405 despite the impact (-7% y-o-y) of currency 45 devaluation on the Egyptian operations 42 Slightly lower
Slide 20: Snacking
20 Analyst and Investor Call Snacking Volume by category (‘000 tons) Snacking 59 (21% of H1’22 revenues) 53 45 47 Dates • Recording higher y-o-y top-line growth benefitting from our focus on improving product and channel mix contributing to higher sales during off-season periods 2 3 4 - Bakery Dates
Slide 21: Snacking: Pre- and post-acquisition performance
21 Analyst and Investor Call Snacking: Pre- and post-acquisition performance AED MN Snacking1 421 392 7% Higher Revenues driven by: 17% • Higher dates volumes benefiting from 14% positive pre-Ramadan sales and strong performances in Bulk and Retail channels 66 57 • Higher bakery volumes on opening o
Slide 22: AgriBusiness
22 Analyst and Investor Call AgriBusiness 359 Volume by category (‘000 tons) 327 AgriBusiness (27% of H1’22 revenues) 234 206 Flour 125 • Volume -2% vs. Selling prices / mix +18% y-o-y 122 • Favourable mix with higher pricing significantly reducing the impact of increased raw material / freight cost
Slide 23: Financial Performance
Financial Performance
Slide 24: Group P&L revenues
24 Analyst and Investor Call Group P&L revenues H1’22 vs H1’21 Revenues1 Growth by Segment (y-o-y) 24% 279% 27% 35% Inner Ring 36% H1’21 revenues of AED 1.3BN Outer Ring H1’22 revenues of // AED 2.0BN (+51% y-o-y) 85% 51% 17% 12% 21% 28% -1% 15% Water & Food Protein & Frozen Veg Snacking AgriBusines
Slide 25: Profitability metrics
25 Analyst and Investor Call Profitability metrics 29.6% 28.8% Gross Profit 390 575 Gross Profit (AED MN) • Flat margins (-77bps y-o-y) as we counter the impact of H1'21 H1'22 significantly higher direct raw material costs 13.8% EBITDA EBITDA1 reported 12.7% 275 167 (AED MN) • EBITDA margin enhanced
Slide 26: Top line reconciliation
26 Analyst and Investor Call Top line reconciliation Group revenues (AED MN) 1,996 28 101 1,800 (4) 70 318 1,318 163 Improved water Higher sales performance in Higher despite EGP Favourable dates and UAE devaluation mix Kuwait offset by + bakery Discontinuation Higher sales of Beverage pricing + Low
Slide 27: Group net revenue bridge
27 Analyst and Investor Call Group net revenue bridge Group Net Revenues (AED MN) (28) 1,996 1,800 46 177 1,318 482 H1'21 Inorganic Growth H1'21 PROFORMA Volume/Mix Net pricing Currency H1'22
Slide 28: Bottom line reconciliation
28 Analyst and Investor Call Bottom line reconciliation Net profit1 (AED MN) (5) (1) 131 (7) 28 (27) 118 33 Drop in KSA operational Higher M&A sales efficiencies Higher related costs2 68 30 + + profitability associated pricing from dates restructuring adjustments and bakery costs vs. offset by highe
Slide 29: Group net profit bridge
29 Analyst and Investor Call Group net profit bridge Group Net Profit1 (AED MN) 183 142 16 (198) (2) (12) 5 135 71 71 Market trends Economical & External factors H1'21 Inorganic Growth H1'21 PROFORMA Volume/Mix Net pricing Higher Input costs Currency Higher financing Others H1'22 costs 1Net profit f
Slide 30: Quarter performance
30 AGTHIA | Analyst and Investor Call Quarter performance 942 Revenues 653 +44% Y-o-Y performance (AED MN) (Q2’22 versus Q2’21) Q2'21 Q2'22 | Revenue growth led by improved performance across all verticals augmented by the inclusion of Gross Profit 28.5% 28.3% 267 2 acquisitions (Atyab and BMB) in t
Slide 31: Resilient cash flow generation
31 Analyst and Investor Call Resilient cash flow generation Net Working 27% 23% Capital1 828 1,002 Operating Cash Flow (AED MN) H1'21 H1'22 | Focus on WC overhaul (WC% sales improved by 500bps y-o-y) Operating Cash 18% | Better Cash flow conversion cycle by 21 days versus 244 Flow 7% same period las
Slide 32: Robust balance sheet
32 Analyst and Investor Call Robust balance sheet Borrowings Borrowings AED 2.14 BN | Higher borrowings from raising new debt to fund Net Debt Al Faysal, Nabil, Atyab and BMB acquisitions AED 973 MN | Excluding additional debt to finance the recently announced Auf deal Cash & Equivalents AED 1.17 BN
Slide 33: Dividends
33 Analyst and Investor Call Dividends Dividends per Share (AED) 32% 35% 44% 43% 66% 85% 58% 55% Semi-Annual Dividends Policy 0.165 0.165 0.15 0.15 0.15 0.15 | Agthia adopted a semi-annual dividend policy, in- 0.125 line with our commitment to maximizing 0.0825 shareholders’ returns | Board recommen
Slide 34: Outlook
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Slide 35: 2022 guidance
35 Analyst and Investor Call 2022 guidance1 Free Cash Sales growth EPS growth Flow to Equity +25-30% +10-11% c. AED400MN • Full year consolidation of 5 acquired entities • Sustainable growth despite high raw • Robust FCFE generation despite higher material and freight costs borrowing cost and higher
Slide 36: Q&A
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Slide 37: Appendix
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Slide 38: Agthia at a glance
38 Analyst and Investor Call Agthia at a glance 19 Brands 45 countries 9,300+ Employees 92% of waste generated is in Agthia’s network recycled c.75% revenues from 11 Factories 17% reduction in Direct Scope 1 consumer-based products across the world emissions per ton of production in 2021 H1 2022 Fin
Slide 39: 2025 strategy: Our ambition
39 Analyst and Investor Call 2025 strategy: Our ambition From… To… UAE centric Footprint MENAP & beyond Becoming a Commoditized portfolio Value-add F&B brands regional F&B Stable financial performance Superior shareholder returns leader by 2025 Local organization mindset Consumer-centric & performan
Slide 40: Agthia's action plan
40 Analyst and Investor Call Current market dynamics Input cost inflation Supply chain disruptions Broad-based inflation across various commodities, | Container supply lagging demand packaging materials and transportation costs | Russian / Ukraine war impacting grain availability Agthia’s action pla
Slide 41: Acquisition summary: Snacking portfolio
41 Analyst and Investor Call Acquisition summary: Snacking portfolio Announcement OCT 2020 DEC 2020 AUG 2021 JUL 2022 Beneficial ownership 100% 100% 80% 60% Consolidation Jan 1, 2021 Jan 27, 2021 Dec 31, 2021 Q4, 2022e Chocolate, Mediterranean Coffee, Nuts, Dates, Sub-segment Dates Baked Goods Sweet
Slide 42: Acquisition summary: Protein portfolio
42 Analyst and Investor Call Acquisition summary: Protein portfolio Announcement JAN 2021 APR 2021 Beneficial ownership 80% 75% Consolidation April 1, 2021 Aug 1, 2021 Sub-segment Frozen protein Frozen protein Footprint Jordan, GCC, Iraq Egypt Consideration AED 520 MN AED 564 MN Funding 75% Equity +
Slide 43: Seamlessly integrating acquisitions
43 Analyst and Investor Call Seamlessly integrating acquisitions Integration framework and playbook Coordinated transition Productivity Value creation Protein Snacking Nabil Foods + Atyab: Al Foah • one Protein business unit • unlocking sizable synergies • mapped plan for long-term integration • act
Slide 44: Latest acquisition: Abu Auf key highlights
44 Analyst and Investor Call Latest acquisition: Abu Auf key highlights Financial Highlights Distribution Reach Production & Storage Capacity 64% 34% 21.8k 2021 FY19 – FY21 Gross Profit Margin Points of Sale in 26 Governorates 5,000 Tons 7,000 Tons Revenue CAGR FY21 Annual Coffee Production Capacity
Slide 45: Agthia categories of focus
45 Analyst and Investor Call Agthia categories of focus Category Protein & Water & Food Agribusiness Frozen Veg. Snacking Assets Key markets
Slide 46: Revenue diversification by vertical
46 AGTHIA | Analyst and Investor Call Revenue diversification by vertical 931 23% All new acquisitions + FY21 Abu Auf 1,059 FY21 revenue: AED 3.94bn 27% 823 931 22% 121 25% Including new acquisitions 6% (Al Foah, Al Faysal, Nabil Foods, Atyab and BMB) 931 FY21 revenue: AED 3.71bn 47% Excludes all ac
Slide 47: Sustainability
ForThe Better * JA0UI oi go @) Sustainability
Slide 48: Our approach
48 Analyst and Investor Call Our approach Maintaining Fostering Innovating Preserving Ethical, responsible and profitable business Healthy and safe communities & re-thinking & protecting Product quality the Environment and sustainability
Slide 49: Maintaining an ethical, responsible and profitable business
49 Analyst and Investor Call Maintaining an ethical, responsible and profitable business AED AED 3.07 billion 9.6 million in revenue in R&D expenditure 0 (Zero) 0 (Zero) 0 (Zero) complaints received concerning product recall from markets bribery cases breaches of customer privacy
Slide 50: Fostering healthy and safe communities
50 Analyst and Investor Call Fostering healthy and safe communities 60% 11% 8% 60 15% of newly hired employees turnover rate full-time female different nationalities reduction in Lost Time Injury are under 30 years of age employees work at Agthia Frequency Rate (LTIFR) AED 0.82 million 27,524 hours
Slide 51: Innovating and re-thinking product quality and sustainability
51 Analyst and Investor Call Innovating and re-thinking product quality and sustainability 90.7 96% 19 100% GMP Score lab proficiency supplier site of suppliers are screened on quality, audits conducted social and environmental criteria AED 1.51 billion <1 5 awards in procured goods customer complai
Slide 52: Preserving and protecting the environment
52 Analyst and Investor Call Preserving and protecting the environment 18% 17% 13% 36KG 8% decrease in diesel reduction in Direct reduction in Direct Scope 1 of CO2 per tonne landfilled waste consumption Scope 1 emissions emissions per tonne of production of production from total waste AED 1.07 cubi
Slide 53: Disclaimer – Forward-looking Statements
Disclaimer – Forward-looking Statements: 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 54: Thank you
ForThe Better * JAoUI Joi yo Thank you August 2022