Afg International Company · TADAWUL:4240
Afg International — Al Hokair Fashion Retail — Q2 FY2021 Earnings Presentation
18 slides from Afg International's earnings presentation, November 2020
Slide 1: Investor Presentation Q2-FY21
AL HOKAIR Investor Presentation Q 2 ‐ F Y 2 1 AlHokair Fashion Retail 1 Investor Presentation
Slide 2: Key Developments Q2-FY21
Key Developments Q2‐FY21 AlHokair Fashion Retail 2 Investor Presentation
Slide 3: Recovery Initiated Despite Headwinds
Recovery Initiated Despite Headwinds Strong Quarter‐on‐Quarter Rebound as Conditions Normalize 1,751 Revenues up more than twofold as Alhokair stores in 1,186 1,085 +110% q‐o‐q Saudi Arabia returned to normal, pre‐COVID working hours during the quarter. Operations were ramped COVID impact 565 up as
Slide 4: Food and Beverage: On An Upward Trend
Food and Beverage: On An Upward Trend F&B segment’s performance continues to improve as the economic climate stabilizes Strong quarterly recovery following Q1‐FY21 mall closures… Café/dessert brands leading recovery, with strong LFL growth IUC: Income Statement SAR ‘000 Q1‐FY21 Q2‐FY21 Change Dine‐i
Slide 5: Rapid Progress on Inventory & Supply Chain Management
Rapid Progress on Inventory & Supply Chain Management Alhokair continuously refreshes inventory policies to maintain optimum levels Inventory Progression, Q1‐FY19 – Q2‐FY21 ▼ 38.1% y‐o‐y 2,002 2,039 2,029 Q2‐FY21 Inventory vs Q2‐FY20 1,928 1,778 1,835 1,839 1,656 1,377 1,263 ▼ 8.3% q‐o‐q Q2‐FY21 Inv
Slide 6: COVID Hit to Profitability Concentrated in First Quarter
COVID Hit to Profitability Concentrated in First Quarter Gross profitability up sharply q‐o‐q as stores return to normal hours Adjusted gross profit accounts for one‐time rent discounts 20% Gross profit returned to the Adjusted Gross Profit (SAR mn) Adjusted Gross Profit Margin 8% green after bookin
Slide 7: Network Evolution
Network Evolution KSA International Total # of Stores # of Stores # of Stores Stores as at 30 Jun 2020 1,508 344 1852 New Stores 13 2 15 Closed Stores ‐22 ‐10 ‐32 Net Change ‐9 ‐8 ‐17 Stores as at 30 Sep 2020 1,499 336 1,835 Forecasted Openings 34 10 44 Forecasted Closings ‐21 ‐16 ‐37 Net Changes 13
Slide 8: Focus on International Performance
Focus on International Performance International Segment Key Performance Indicators SAR mn Q2‐FY20 Q2‐FY21 Change International Revenue Breakup by Country Net Revenue 486.5 233.6 ‐52.0% Gross Profit 92.6 (10.7) ‐111.6% Azerbaijan Georgia Egypt 20% 19% Operating Income 29.7 (48.5) 263.3% 1% Jordan Ar
Slide 9: Debt Management In Focus
Debt Management In Focus Re‐financing furthers capital structure optimization with an eye to boosting liquidity position and flexibility to invest in the business. Summary Credit Metrics SAR mn Sep ‘19 Mar’20 Sep ’20 Improved terms and Total Interest‐Bearing Debt 2,719 3,183 3,117 pricing yielding C
Slide 10: Appendix
APPENDIX AlHokair Fashion Retail 10 Investor Presentation
Slide 11: Income Statement
INCOME STATEMENT SAR Million Q2‐FY20 Q2‐FY21 Change H1‐FY20 H1‐FY21 Change Net Revenue 1,234.6 1,185.6 ‐4.0% 2,967.0 1,750.6 ‐41.0% Cost of Revenue (1,051.3) (1,133.7) 7.8% (2,276.2) (1,941.4) ‐14.7% Gross Profit 183.3 51.9 ‐71.7% 690.8 (190.9) ‐ Gross Profit Margin 14.8% 4.4% (10.5) 23.3% ‐10.9% ‐
Slide 12: Balance Sheet
BALANCE SHEET SAR Million Sep ‘19 Mar ’20 Sep ’20 Change vs Sep‐19 Change vs Mar‐20 Assets Property, Plant and Equipment 1,634 1,514 1,390 ‐15% ‐8% Right‐of‐Use Assets 4,448 4,058 3,680 ‐9% Goodwill and Intangible Assets 868 1,080 1,060 22% Investment Property 60 4 4 ‐94% 0% Investment in Associates
Slide 13: Group History
Group History Established in 1990 with two operational stores, the Group has since built a track record of introducing global Brands to KSA and entering new markets KSA Armenia, Georgia and Morocco Inditex Egypt, Acquisition Company Relationship Jordan and of Nesk Kazakhstan formation 1990 1997 1999
Slide 14: Our Current Footprint
Our Current Footprint The Company maintains a presence Country Stores across 13 global markets with 1,834 88% of Saudi Arabia 1,499 Sales: SAR stores 495.5 mn Egypt 80 Growth Markets Georgia 58 8% of Armenia 33 Sales: SAR 46.8 mn Azerbaijan 30 1,700 Jordan 52 Kazakhstan 29 Morocco 22 Presence Countr
Slide 15: Our Primary Market
Our Primary Market Looking beyond macro headwinds in the KSA – recovering consumer environment conducive to growth in the retail sector KSA Consumer Spending Cycle Beyond macro drivers, industry fundamentals such as increased transition to organized retail and women enablement (employment, mobility,
Slide 16: Our Brand Portfolio
OUR BRAND PORTFOLIO AlHokair Fashion Retail holds a portfolio of over 75 brand representations and ownership covering all market segments Department Stores Kids Fashion Fashion Boutique Shoes & Accessories AlHokair Fashion Retail 16 Investor Presentation
Slide 17: Our Brand Portfolio
OUR BRAND PORTFOLIO Women’s & Men’s Fashion Lingerie Cosmetics Youth Fashion Home COMPANYS Entertainment and Food & Beverage Morocco & Spain USA AlHokair Fashion Retail 17 Investor Presentation
Slide 18: Thank you
ALHOKAIR fff } 157 J! Fashion Retail a5j al cL ji Thank you
Al Hokair Fashion Retail — Q2 FY2021 Earnings Presentation on 6ix