Slide 1: Investor Presentation H1'23 results
Investor Presentation H1’23 results 3 August 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 Guidance Appendix
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 – H1'23
05 Analyst and Investor Call Progress on strategic vision – H1’23 Delivering Growth Driving Efficiency Expanding Capabilities • Reported revenue growth +10.3% YoY; • Focus on productivity enhancement: • Accelerating innovation: new gifting and 3.6% from pricing & 6.7% from volume1 travel ranges with
Slide 6: “Agthia Ventures”: USD 54m /AED 200m Corporate Venture Capital fund
06 Analyst and Investor Call “Agthia Ventures”: USD 54m /AED 200m Corporate Venture Capital fund Creating mutual value for investor and investee through fostering innovation, collaboration, and growth Capital ready for deployment USD 54m / AED 200m - funded by Agthia and ADQ Branded products and eme
Slide 7: Key Financials
Key Financials
Slide 8: H1'23 headlines: Strong and profitable growth across the half
08 Analyst and Investor Call H1’23 headlines: Strong and profitable growth across the half Strong revenue growth.. ..outpaced by EBITDA Healthy net profit1 growth.. 2,201 319 144 +10% +18% +7% 1,996 269 135 H1'22 H1'23 H1'22 H1'23 H1'22 H1'23 +3.1% LFL growth +98bps Δmargin -23bps Δmargin after abso
Slide 9: …amidst a challenging backdrop
09 Analyst and Investor Call …amidst a challenging backdrop Commodity inflation EGP devaluation Rising interest rates Average 3M 1.0% 5.2% 30.5 LIBOR 48.6 + AED 17.3 +34MN 46 MN 14.9 additional commodity costs H1'22 H1'23 H1'22 H1'23 Average EGP vs USD FX rate Net Interest cost (AED MN) Devaluation
Slide 10: Strong topline growth driven by increased diversification and optimized mix
10 Analyst and Investor Call Strong topline growth driven by increased diversification and optimized mix H1 2023 revenue growth +10.3% YoY, with 3.6% from pricing and 6.7% from volume1; +20.2% pre devaluation Group Revenue (AED MN) 2,201 49 (75) 63 30 1,996 138 after absorbing Inorganic EGP devaluat
Slide 11: EBITDA growth ahead of revenue driven by Snacking, Protein & Water segments
11 Analyst and Investor Call EBITDA growth ahead of revenue driven by Snacking, Protein & Water segments H1 2023 EBITDA growth +18.3% YoY, +31% pre devaluation Group EBITDA (AED MN) 319 (10) 269 5 23 (13) 10 35 after absorbing Inorganic EGP devaluation of growth1 AED 33MN H1'22 Snacking Water & Food
Slide 12: Net profit growth despite higher interest rate environment
12 Analyst and Investor Call Net profit growth despite higher interest rate environment H1 2023 net profit growth +6.6% YoY, +21% pre devaluation Group Net profit1 (AED MN) (6) 18 5 13 (39) 144 135 18 Inorganic after absorbing growth2 EGP devaluation of AED 20MN H1'22 Snacking Water & Food AgriBusin
Slide 13: Robust balance sheet with low leverage
13 Analyst and Investor Call Robust balance sheet with low leverage Net debt / EBITDA Interest coverage1 1.9x Down from FY’22 of 2.3x 6.6x 7.2x in FY’22 Liquidity2 AED 2.0BN Dividend yield3 3.2% H1’23 recommended DPS + H1’22 actual DPS = AED 0.165 1Interest coverage = H1’23 EBITDA / (interest expens
Slide 14: Segmental performance
Segmental performance
Slide 15: Diversified growing portfolio in large scalable markets
15 Analyst and Investor Call Diversified growing portfolio in large scalable markets Diversified revenue by ..and segments.. ..with positive LFL growth geography.. 45% 7% 27% 23% 21% 26% 12%12% 51% 9% 6% 6% 23% 27% 16% Protein & Snacking* Water & Agribusiness Frozen* Food UAE Other Arab Countries Pr
Slide 16: Snacking: strong growth in dates and contribution from Auf
16 Analyst and Investor Call Snacking: strong growth in dates and contribution from Auf Revenue EBITDA Commentary Revenue 601 • LFL growth of 9% including Auf 126 • Dates: strong growth across key export markets (India, Indonesia, Malaysia, Brazil) on mix shift to retail; market share gain +45% acro
Slide 17: Protein: improved margin despite revenue decline on FX headwinds
17 Analyst and Investor Call Protein: improved margin despite revenue decline on FX headwinds Revenue EBITDA Commentary Revenue • -13% YoY after absorbing FX devaluation 573 84 impact of AED 197MN; +21% YoY excluding 74 FX devaluation -13% 498 -12% • Egypt: strong brand equity and effective tiering;
Slide 18: Water & Food: positive growth with improved profitability
18 Analyst and Investor Call Water & Food: positive growth with improved profitability from cost optimization and SKU premiumization Revenue EBITDA Commentary Revenue 505 83 • +6% YoY on positive growth across international channels (Turkey +55%, +6% KSA +26%, Kuwait +26%) 475 +14% • UAE Bottled Wat
Slide 19: Agri: resilient performance despite significant commodity inflation
19 Analyst and Investor Call Agri: resilient performance despite significant commodity inflation Revenue EBITDA Commentary Revenue 597 • +12% YoY from good in-market 98 execution, strong volume growth and +12% 92 +6% improved product quality in Flour and 534 strong pricing in Feed EBITDA • Margin co
Slide 20: Guidance
Guidance
Slide 21: Reaffirming FY'23 Guidance
21 Analyst and Investor Call Reaffirming FY’23 Guidance Revenue growth EBITDA margin Group net profit margin +10 to 12% +40 to 60bps +30 to 50bps • 100% of Group profit including minorities Assumptions • Current FX rates for USD / EGP 30.7 • Current FX rates for USD / EGP 30.7 • No further acquisiti
Slide 22: A forward-looking company
22 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 23: For The Better
ForThe Better « Cy a> @ 3 2 PD oy
Slide 24: Appendix
ForThe Better * JA0UI Joi yo
Slide 25: Q2'23 Group headlines
25 Analyst and Investor Call Q2’23 Group headlines High mid-single digit ..outpaced by EBITDA ..in line with net profit1 revenue growth.. 1,019 130 942 +8% +17% 47 111 +7% 44 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 AED MN AED MN AED MN 1Net profit including minority interests
Slide 26: Q2'23 Snacking headlines
26 Analyst and Investor Call Q2’23 Snacking headlines Revenue1 EBITDA1 221 38 +38% +208% 161 12 Q2'22 Q2'23 Q2'22 Q2'23 AED MN AED MN 1Q2’23 includes Abu Auf
Slide 27: Q2'23 Protein headlines
27 Analyst and Investor Call Q2’23 Protein headlines Revenue EBITDA 278 -12% 246 40 -13% 35 Q2'22 Q2'23 Q2'22 Q2'23 AED MN AED MN
Slide 28: Q2'23 Water & Food headlines
28 Analyst and Investor Call Q2’23 Water & Food headlines Revenue EBITDA 253 237 +7% 40 -2% 39 Q2'22 Q2'23 Q2'22 Q2'23 AED MN AED MN
Slide 29: Q2'23 Agri headlines
29 Analyst and Investor Call Q2’23 Agri headlines Revenue EBITDA 299 +12% 267 +15% 51 45 Q2'22 Q2'23 Q2'22 Q2'23 AED MN AED MN
Slide 30: Historical dividend trend
30 Analyst and Investor Call Historical dividend trend 32% 35% 44% 43% 66% 85%1 58% 53% 52% Dividend Payout % 0.165 0.165 0.165 0.150 0.150 0.150 0.150 0.125 Dividends per Share 0.0825 (AED) 2015 2016 2017 2018 2019 2020 2021 2022' H1 2023* 1Normalized EPS for 2020 *H1’2023 DPS recommended by Board
Slide 31: A balanced mix of growing brands
31 Analyst and Investor Call A balanced mix of growing brands 23% of sales 27% of sales 23% of sales 27% of sales Category Agribusiness Protein & Water & Food Snacking Frozen Veg. Assets Key markets Staple Discretionary
Slide 32: Strong leadership team with track record of value creation
32 Analyst and Investor Call Strong 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 Executive Chie
Slide 33: Investing in growth: Protein expansion in KSA
33 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 34: 5-year digital roadmap with clear priorities
34 Analyst and Investor Call 5-year digital roadmap with clear priorities Priority #1 Priority #2 Best customer / consumer Empowered employees in a experience collaborative environment • Seamless omnichannel experience with optimized • Integrated business planning and cross-domain online and in-stor
Slide 35: Our Sustainability Agenda: adopting a “4 P” approach
35 Analyst and Investor Call Our Sustainability Agenda: adopting a “4 P” approach Packaging Processes • Target packaging material reduction of 3,120 tons • 2.5% reduction in water usage ratio (H1’23 vs H1’22) • +3x PLA YoY volume growth in H1’23 • 5.2% reduction in water usage for Water BU (H1’23 vs
Slide 36: Summary Profit & Loss Statement
36 Analyst and Investor Call Summary Profit & Loss Statement AED'000 Q2'23 Q2'22 y/y H1'23 H1'22 y/y Revenue 1,018,976 942,481 8% 2,201,333 1,995,621 10% Cost of sales -732,476 -675,559 8% -1,577,356 -1,420,434 11% Gross profit 286,500 266,922 7.3% 623,977 575,187 8.5% Selling and distribution expen
Slide 37: Summary Balance Sheet Statement
37 Analyst and Investor Call Summary Balance Sheet Statement AED'000 H1'23 H1'22 Property, plant and equipment 1,387,889 1,465,257 Intangible assets & Goodwill 2,414,828 2,072,694 Others 120,469 114,639 Total non-current assets 3,923,186 3,652,590 Inventories 697,490 593,790 Trade and other receivab
Slide 38: Summary Cash Flow Statement
38 Analyst and Investor Call Summary Cash Flow Statement AED'000 Q2'23 Q2'22 YoY H1'23 H1'22 YoY Profit before tax & zakat expenses 55,722 51,331 9% 163,092 149,682 9% Adjustments for: Depreciation & Amortization 56,103 55,743 1% 114,338 111,971 2% Provisions & Allowances 4,046 8,312 -51% 10,168 14,
Slide 39: Thank you
For The Better + JAoUI Joi yo August 2023 iis