Savola Group · TADAWUL:2050
Savola — Non-Deal Roadshow (February 2009)
33 slides from Savola's roadshow presentation, February 2009
Slide 1: Overview of The Savola Group
Overview of The Savola Group February 2009
Slide 2: Group Snapshot
Group Snapshot Established in 1979 with a capital of SR 40 Mil. Ranked among the Top 10 diversified business conglomerates in Saudi Arabia Listed on the Saudi stock exchange Core Businesses include edible oil, sugar, plastics packaging, retail, real estate and strategic investments including
Slide 3: Evolution of Savola Group Across Three Decades
Evolution of Savola Group Across Three Decades In 2004, acquired Iran’s Acquisition of a biggest two edible oils majority stake in Al- Several greenfield projects companies in addition to By 1990, attained more than 70% market Marai dairy group (e.g. dates, chocolate, an oils business in sha
Slide 4: Revenue Growth
Revenue Growth Sales Turnover in SR Million 12,000 10,407 10,000 9,097 8,000 6,800 5,600 6,000 4,100 4,000 2,550 2,900 3,350 3,630 1,700 2,150 1,600 2,000 500 580 760 920 1,030 1,300 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Slide 5: Profitability Growth
Profitability Growth Group's Net Income (SR Mil.) Millions 1,400 1,202 1,1491,230 1,200 1,000 800 600 502 400 301 203 138 153 208 200 114 141 138 0 1997 1996 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Slide 6: Group Structure – Business Sectors
Group Structure – Business Sectors Savola Group Foods Retail Real Estate Packaging Investments Oils Arabia Panda Kinan KSA-Jed Al Marai Supermarkets Sugar, Arabia Panda KAEC KSA-Ryd Herfy Hypermarkets Other Sugar, Egypt KEC Egypt non-managed Taameer International Jordan Mutoun
Slide 7: Overview of Group Businesses
Overview of Group Businesses Foods Retail Plastics (Edible Oils, Sugar, Ambient Foods) (Hypermarkets & Supermarkets) Packaging (Primarily rigid plastics packaging) Real Strategic Estate Investments (Al-Marai, Herfy & Others)
Slide 8: Food Division-Edible Oil
Food Division-Edible Oil Internationally recognized production and quality awards including ISO 9002 and MRPII Savola Group Foods Sector Savola Afia Int’l Saudi Afia Int’l Egypt Behshahr Iran Yudum Turkey Savola Morocco Kazakhstan Savola Sudan Mkt Share 60% Mkt Share 42% Mkt Share 45% Mkt Share 20%
Slide 9: Food Division-Sugar
Food Division-Sugar Savola Group Foods Sector USC-Saudi USC-Egypt Mkt Share 85% Established: 1997 Strategic Partners: Tayte & Lyle (~10%) Refineries: Saudi Arabia and Egypt Production Capacity: 2.0 Million MT per annum (amongst the region’s largest refiners) Sales Revenues: SR 2.5 Billion
Slide 10: Retail Division - Panda
Retail Division - Panda Operates in two formats: Supermarkets and Hypermarkets Established: 1980 & acquired by Savola in 1998 Sales Revenues: SR 5.2 Billion in year 2008 Stores Network: 64 supermarkets and 15 hypermarkets Selling Area: 235,000 m2 Merger with Giant Stores: Panda and Giant
Slide 11: Plastics Division
Plastics Division Savola Group Plastics Division Savola Packaging Al Sharq New Marina Systems (SPS) Plastics Egypt Established: 1980 Manufacturing Facilities: 4 in Saudi Arabia and 2 Egypt Exports Operations: 25 countries Sales Revenues: SR 775 Million in year 2008 (US$ 207 Mil.) Sales Vol
Slide 12: Real Estate Division
Real Estate Division Savola Group Real Estate Division Tameer King Abdullah Knowledge City Kinan Economic City Jordan A Major shareholder in Kinan, among the leading real estate property developers in Saudi Arabia “Best Retail Real Estate Developer” award from Euromoney in 2006 Founding partne
Slide 13: Major New Businesses in 2008
Major New Businesses in 2008 Egypt Sugar Algeria Oils Turkey Oils Sugar Iran (750,000 MT / yr) (200,000 MT / yr) (100,000 MT / yr) (Packaging)
Slide 14: Geographic Footprint
Geographic Footprint KSA Egypt UAE Iran Turkey Kazakhstan Sudan Algeria Morocco Recently added Qatar & Lebanon as well through the recent merger with Giant Stores
Slide 15: Vision
VISION To Be the Most Successful* Publicly Listed Strategic Investment Group in the MENA Region * “Most Successful” implies being the most profitable in terms of sustainable returns on investment to our shareholders, the most ethical and committed in our behavior and actions, and the most sophistica
Slide 16: Savola Group's Growth Strategy
Savola Group’s Growth Strategy
Slide 17: The road to sustainable, profitable growth
The road to sustainable, profitable growth What is the When and how full potential e Fo fin will of our core cu de we need to Define s Re the business? redefine the core? core Expand How do we expand into adjacencies with a repeatable formula?
Slide 18: The choice of "How to Grow" must be consistent with the Group's capabilities
The choice of “How to Grow” must be consistent with the Group’s capabilities Strategic alliance/ Financial Minority financial Low partnership investment investment Internal Market Internal entrepreneurship/ Financial Medium development/ knowledge acquisition/ investment acquisition licensing Interna
Slide 19: Savola's growth strategy has been built with a few key principles
Savola’s growth strategy has been built with a few key principles Don’t build on a weak core Don’t stray too far from home; relatedness matters Follow a repeatable formula for growth Move towards leadership economics Leverage strategic assets
Slide 20: Key Outcome of Growth Strategy Exercise "Focus & Leverage"
Key Outcome of Growth Strategy Exercise “Focus & Leverage” Focus on accelerating Leverage on our the growth in our core strategic assets & businesses core competencies
Slide 21: "Leverage"
“LEVERAGE” The Group’s focus on the core entails that it will strongly leverage on its core competencies & strategic assets: – Rich & Inspiring Corporate Culture – Branding Power – Scale of Buying – Customer knowledge – Operations Excellence – Logistics Infrastructure – Geographical footprint – Huma
Slide 22: The Group's Organizational Transformation
The Group’s Organizational Transformation • Highly centralized structure during the 1990s • From 1998, a gradual move towards a decentralized structure but with continued highly operational focus • From 2007, the Group is: • Gradually moving from an “Operating Holding” to a “Strategic & Investment H
Slide 23: Savola Group's Culture
Savola Group’s Culture PD He Sw0a. Goup
Slide 24: The Group's Ethics Principles
The Group’s Ethics Principles ﻣﺠﺎهﺪة أﻣﺎﻧﺔ Personal Improvement Honesty (Mujahadah) (Amanah) ﺑﺮ ﺗﻘﻮى Caring Justice Conscientiousness (Birr) (Taqwa)
Slide 25: The Group's Values
The Group’s Values Confident Humility Tawado Apprenticeship Iq’tida It’qan Relentless pursuit of perfection Fierce Azm Resolve
Slide 26: Savola's Culture of Learning
Savola’s Culture of Learning What characterizes Savola Group is being an ongoing learning organization that does not shy away from sharing its mistakes and strives to climb the learning curve faster than others
Slide 27: High performers make and execute good decisions quickly
High performers make and execute good decisions quickly Provide Define compelling clear direction decision and accounta- leader- bilities ship Instill a winning culture Develop Excel at and deploy front-line talented execution people
Slide 28: Organizational survey benchmark
»RELIMINARY Guleere Source : Bain & Compeny Nigh performance crgavestion dstabese (4761); J % Vision and priorities Leadership team Decision roles & accountabilities Structure Right people, right jobs Measures and incentives ‘Mission critical’ front-line activities Back office GRA Performance cultur
Slide 29: Recognition for Group's strategic assets
Recognition for Group’s strategic assets The Group winning Best Workplace Practices Award (IIR) The Group recognized as the leading Saudi listed company in Corporate Governance standards and ranked 14th amongst 581 Gulf publicly listed companies (Hawkamah) The Group winning Transparency Award among
Slide 30: Recognition for Group's strategic assets
Recognition for Group’s strategic assets Savola Packaging winning King Abdulaziz Award for Quality Afia ranked amongst the top three Arab brands in the entire region (Forbes Arabia) Panda ranked as one of the top 10 big companies to receive Best Work Environment Award for 2008 (Al Eqtisadiah) Sa'afa
Slide 31: Savola CSR Programs
Savola CSR Programs
Slide 32: Continued Commitment to "Corporate Citizenship"
Continued Commitment to “Corporate Citizenship” The Group will continue to be a pioneer in Corporate Governance and Transparency in the region The Group will continue fulfilling its “Taqwa” Value towards its community through implementing effective CSR programs The Group will strive to create center
Slide 33: Thank You
@ The Savola Croup Thank You