Savola Group · TADAWUL:2050
Savola — Q1 2021 Earnings Presentation
33 slides from Savola's earnings presentation, 2021
Slide 1: Savola Group Earnings Presentation Q1 2021
Savola Group www.savola.com Earnings Presentation | Q1 2021
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: Agenda
1. Group Overview & Business Model 2. Group Key Financial Highlights 3. Performance by Segment 3
Slide 4: Leading Strategic Investment Holding Company
LEADING STRATEGIC INVESTMENT HOLDING COMPANY Our core focus is on the food and retail space across the MENA region Turnover of SAR Countries of 22 billion 1 Operations: 9+ Strong & Diversified +25,000 Employees Shareholder Base +SAR 20bn Market Cap 2 (1) – As of FY2020 (2) - Tadawul, as at 29 April
Slide 5: Business Model and Strategy
BUSINESS MODEL AND STRATEGY How we add value Savola Group is a strategic investment holding with a thematic investment program focused on the food and retail sectors, with the aim of creating value by enabling and accelerating growth levers in the underlying portfolio to achieve scale and profitabil
Slide 6: Expansion History
EXPANSION HISTORY • Made the largest investment of • Launch of corporate SAR 2bn by acquiring additional venture capital program stake of 6.5% in Almarai with two investments • Established with a paid up • Savola merged with Azizia • Launch of Afia olive oil in KSA capital of SAR 40mn Panda United (
Slide 7: Key Strengths and Geographical Presence
KEY STRENGTHS AND GEOGRAPHICAL PRESENCE Broad and diversified Extensive consumer and Turkey geographic footprint and market understanding product offering Morocco Iraq Central Asia Algeria Strong and experienced Difficult to replicate management with Egypt market leadership position outstanding hist
Slide 8: Agenda
1. Group Overview & Business Model 2. Group Key Financial Highlights 3. Performance by Segment 8
Slide 9: Group - Highlights
GROUP - HIGHLIGHTS • Overall stable performance across the group compared to Q1 2020 due to the positive uplift related to COVID-19 related dynamics Business Highlights • In Foods, strong performance led by KSA and Egypt driven by volumes and re-pricing • Retail segment showed some weakness when com
Slide 10: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q1-19 Q1-20 Q1-21 +7% +13% Sales 5,214 5,923 5,954 EBITDA 693 641 505 9.7% 11.7% 10.8% +7% Excluding one-offs* 1,223 1,212 173 154 Gross Profit 1,065 Net Income 6 20.4% 20.6% 20.4% 0.1% 2.9% 2.6%* *In Q1 2021, Savola
Slide 11: Group – Revenue Mix, Net Debt & Capex
GROUP – REVENUE MIX, NET DEBT & CAPEX SAR in millions Revenue by Business Revenue by Geography Q1-20 Q1-21 Q1-20 Q1-21 5% 5% 3% 2% 5% 11% 4% 11% 41% 10% 48% 17% 45% 51% 69% 74% Food Processing Retail Food Services Frozen Food KSA Egypt Central Asia Others YoY Growth +17% -12% +4% -9% -7% +64% -29% 5
Slide 12: Agenda
1. Group Overview & Business Model 2. Group Key Financial Highlights 3. Performance by Segment 12
Slide 13: Panda Retail Company
JgbLa SAVOLA Panda Retail Company 13
Slide 14: Retail - Highlights
RETAIL - HIGHLIGHTS • In Q1 2021, the business witnessed a decline in top-line compared to last year which Key Highlights was abnormally high due to food stocking behavior exhibited in Q1 2020 • 2021 performance was further impacted by higher VAT, expat exodus and downtrading Store Count • Store cou
Slide 15: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q1-19 Q1-20 Q1-21 +57% +4% COVID-19 impact 240 3,099 163 Sales 2,497 2,720 EBITDA 66 2.6% 7.8% 6.0% +4% 11 Gross Profit 705 606 Net Income (52) 557 (193) 22.3% 22.8% 22.3% NA 0.3% NA Note: numbers are rounded 15
Slide 16: Retail – Number of Stores
RETAIL – NUMBER OF STORES Super Hyper Store converted to fulfillment center 1 145 145 145 60 60 60 (1) Dec Additions Closures Dec Additions Closures Mar Dec Additions Closures Dec Additions Closures Mar 2019 2020 2021 2019 2020 2021 Total Dec-19 Dec-20 Mar-20 Selling Area Selling Area Driven by resi
Slide 17: Panda Turnaround Update (1/2)
PANDA TURNAROUND UPDATE (1/2) • Panda is expected to complete the implementation of its turnaround journey by end of 2021 • The key focus is to be the destination for fresh and improve assortment mix for higher visits and basket size through improvement of core retail operations Key Focus Areas for
Slide 18: Panda Turnaround Update (2/2)
PANDA TURNAROUND UPDATE (2/2) Panda has continued to show positive indicators in its turnaround journey across various financial and operational metrics Sales per sqm (SAR’000/sqm) Sales mix by category (% of sales) GET: General Merchandise, Electronics and Textile 18.4 9% GET 15% Grocery Non-food 1
Slide 19: Savola Foods Company
JgbLa SAVOLA Savola Foods Company ayac il Foods Jgbls SAVOLA 19
Slide 20: Foods - Highlights
FOODS - HIGHLIGHTS • The performance of our foods segment improved over last year from a topline and Key Highlights bottom-line perspective mainly driven by our edible oil segment • Volume has grown by ~9% to 965 KMT in Q1 2021, primarily driven by Egypt and KSA Volume • Oil volumes grew by ~8% whil
Slide 21: Foods – Selected Commodity Snapshots (FAO)
FOODS – SELECTED COMMODITY SNAPSHOTS (FAO) FAO Food Price Index (rebased)* FAO Vegetable Oils Index (rebased)** FAO Sugar Index (rebased)*** 198 130 130 127 190 125 125 180 120 121 120 170 115 160 110 115 150 105 110 140 100 105 130 95 120 90 100 110 85 95 100 80 90 90 75 Jan-19 Jul-19 Jan-20 Jul-20
Slide 22: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q1-19 Q1-20 Q1-21 +10% +12% 2,476 2,906 Sales 2,408 EBITDA 261 207 221 8.6% 8.9% 9.0% Excluding +13% one-offs** Excluding one-offs* Gross Profit 375 466 Net Income 112 104 367 73 15.2% 15.2% 16.0% 4.7%* 3.0% 3.6%** *In Q1 2019, Sa
Slide 23: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues Q1-19 Q1-20 Q1-21 Q1-19 Q1-20 Q1-21 +12% CAGR (’19-’21) 483 CAGR (’19-’21) 6% 1,927 Morocco +21% Morocco +11% 448 +13% 5% 6% 6% Sudan +67% Sudan +45% 388 5% 7% 1,654 8% Algeria -15% Algeria -9% 6% 12% 7% 1,509 6% 6% Turkey -9% 4%
Slide 24: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues Q1-19 Q1-20 Q1-21 Q1-19 Q1-20 Q1-21 CAGR (’19-’21) 0% CAGR (’19-’21) +6% YoY Growth 381 712 YoY Growth 714 Egypt +31% (Q1 ’21 vs. ’20) (Q1 ’21 vs. ’20) Egypt +30% KSA +2% 338 346 Egypt 11% KSA -4% 18% 615 Egypt 19% 9% 12% 10% K
Slide 25: Savola Foods Strategy
SAVOLA FOODS STRATEGY • Health, convenience, and youth driven trends are the fastest-growing and future focus segments in our markets • Savola Foods strategy will revolve around four key pillars, including anchoring and defending its existing core business, disrupting the offering in the foodservice
Slide 26: Al Kabeer Group of Companies
Al Kabeer Group of Companies 26
Slide 27: Frozen Food - Highlights
FROZEN FOOD - HIGHLIGHTS • Frozen food segment continued to perform well and managed to maintain strong Key Highlights performance in Saudi Arabia • We continue to see preference and consumer demand for the category • Reported revenues decreased by about 9% reaching SAR 175 mn in Q1 2020 compared to
Slide 28: Frozen Food – Al Kabeer Financial Highlights
FROZEN FOOD – AL KABEER FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q1-19 Q1-20 Q1-21 +17% +11% Impact of IFRS15 Sales 192 175 EBITDA 26 29 129 23 18.2% 13.6% 16.4% +13% +11% 66 20 22 Gross Profit 61 Net Income 18 48 37.3% 34.5% 34.8% 14.0% 10.5% 12.4% Note: numbers are rounded 28
Slide 29: Al Kabeer's Strategy
AL KABEER’S STRATEGY • Al Kabeer will continue building up on healthy growth trends in the category and will focus on key initiatives that were defined in view of consumer intelligence and market dynamics to drive growth in top and bottom-lines • Additionally, in-organic growth opportunities will be
Slide 30: Financial Summary
JgbLa SAVOLA Financial Summary 30
Slide 31: Financials – Q1 2021
FINANCIALS – Q1 2021 (all figures are in SAR millions) Segment Wise Financials Q1 2021 Q1 2020 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Food* Oil-Mature Markets 1,539 299 130 71 154 1,305 242 126 78 146 Oil-Start-up Markets** 387 41 20 12 24 349 34 15 8
Slide 32: Investor Relations Application
INVESTOR RELATIONS APPLICATION Views Savola Group share price, charts and performance on the go Savola Group Annual & Quarterly figures Savola Group News releases from Tadawul Annual/Quarterly Reports accessible offline http://www.myirapp.com/savola/ 32
Slide 33: Thank you
JQGoLA SAVOLA Thank you vola.com 3