Savola Group · TADAWUL:2050

Savola — Q2 2023 Earnings Presentation

27 slides from Savola's earnings presentation, 2023

  1. Slide 1: Savola Group Earnings Presentation Q2 2023

    Savola Group www.savola.com Earnings Presentation | Q2 2023

  2. 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

  3. Slide 3: Savola Group Key Highlights

    Savola Group Key Highlights 3

  4. Slide 4: Savola Group – H1 2023 Highlights

    Savola Group – H1 2023 Highlights Continuous improvement in our core operations  For YTD 2023, Savola Group continued its solid performance despite challenges in some of its territories and segments  Savola Foods reported resilient performance, driven by higher gross profit margin in YTD 2023 peri

  5. Slide 5: Group Financial Highlights

    Group Financial Highlights 5

  6. Slide 6: Savola Group – Consolidated Financial Highlights

    Savola Group – Consolidated Financial Highlights Margin SAR in millions  During YTD 2023, Group Q1-22 Q1-23 Q2-22 Q2-23 YTD-22 YTD-23 reported a marginal decline in sales YoY  During Q2 2023, sales declined +4% -12% -3% YoY primarily due to o Drop in edible oil prices Sales 7,489 7,814 6,888 6,093

  7. Slide 7: Savola Group – Consolidated Financial Highlights

    Savola Group – Consolidated Financial Highlights Margin SAR in millions  During YTD 2023, net income Q1-22 Q1-23 Q2-22 Q2-23 YTD-22 YTD-23 witnessed YoY growth of 8% primarily driven by: o Increase in gross profit of +29% +12% -5% Savola Foods and Panda, o Higher share of profit from 996 751 1,706

  8. Slide 8: Savola Group – Revenue & Net Income Bridge By Business

    Savola Group – Revenue & Net Income Bridge By Business Revenue Bridge by Business Net Income Bridge by Business SAR in millions SAR in millions -3% +8% 14,378 (3) -8% 70 (57) 36 (45) 525 601 13,908 485 39 (41) 484 26 56 18 179 YTD June SFC Panda Herfy Others / YTD June Reported SFC Panda Al Kabeer H

  9. Slide 9: Group – Revenue Mix, Net Debt & Capex

    Group – Revenue Mix, Net Debt & Capex SAR in millions Revenue by Business1 Revenue by Geography YTD-22 YTD-23 YTD-22 YTD-23 4% 4% 11% 7% 2% 3% 6% 9% 36% 38% 16% 16% 58% 55% 67% 68% Savola Foods Panda Herfy Al Kabeer Arabia Egypt Central Asia Others YoY Growth -7.2% +3.4% -9.1% +7.6% -1.2% -5.7% +46.

  10. Slide 10: Savola Foods Company

    Jgola SAVOLA y— Savola Foods Company quac il Foods —Yyy ee

  11. Slide 11: Savola Foods – Consolidated Financial Highlights

    Savola Foods – Consolidated Financial Highlights Margin SAR in millions  During YTD 2023, Savola Foods Q1-22 Q1-23 Q2-22 Q2-23 YTD-22 YTD-23 (1) sales dropped by 7% (LFL -4%) primarily as Q2 2023 performance was mainly +2% -17% impacted by: -7% o Drop in edible oil prices, o Supply issues due to fo

  12. Slide 12: Savola Foods – Consolidated Financial Highlights

    Savola Foods – Consolidated Financial Highlights Margin SAR in millions  Net income YoY growth is 14% Q1-22 Q1-23 Q2-22 Q2-23 YTD-22 YTD-23 in YTD 2023 driven by higher gross profit margin in YTD 2023  However, Q2 net income has +55% -23% +14% dropped by 59% mainly due to reasons highlighted on pr

  13. Slide 13: Stability in Vegetable Oils, and Sugar coming off from the peak

    Stability in Vegetable Oils, and Sugar coming off from the peak in last two months FAO Food Price Index (rebased)(1) FAO Vegetable Oils Index (rebased)(2) FAO Sugar Index (rebased)(3) 250 150 170 167 200 160 140 150 130 140 121 150 120 119 130 120 110 100 110 100 100 50 90 90 80 80 0 70 Jan-20 Jul-2

  14. Slide 14: Savola Foods – Oil Segment Analysis

    Savola Foods – Oil Segment Analysis SAR in millions Volume (MT ‘000) Revenues Gross Profit EBITDA Net Income -2% 5,694 5,564 -2% 935 +19% +27% 651 920 938 266 2,608 2,530 -3% 792 512 272 +2% 395 +48% 297 +80% +48% 297 268 165 201 226 +97% 668 647 -3% 3,085 3,035 -2% 115 524 543 +4% 347 355 +2% 86 71

  15. Slide 15: Savola Foods – Sugar Segment Analysis

    Savola Foods – Sugar Segment Analysis SAR in millions Volume (MT ‘000) Revenues Gross Profit EBITDA Net Income 149 -28% -11% -9% 1,708 170 743 -21% 1,519 154 53 107 78 584 69 -11% 41 -23% 1,427 628 1,318 -8% 43 526 -16% 96 48 92 85 -8% 66 -31% 21 -56% -4 -37 NM 115 281 201 -29% 58 -49% -16 YTD-22 YT

  16. Slide 16: Savola Foods – Nuts, Spices And Pulses Segment Analysis

    Savola Foods – Nuts, Spices And Pulses Segment Analysis SAR in millions Revenues Gross Profit EBITDA Net Income +8% 270 +41% 84 250 59 -4% 233 +9% +13% 17 5 213 77 +37% 56 15 5 36 +49% 27 +71% 24 16 36 38 +5% 7 +121% 3 -9 -19 NM -11 -22 NM YTD-22 YTD-23 YTD-22 YTD-23 YTD-22 YTD-23 YTD-22 YTD-23 KSA

  17. Slide 17: Panda Retail Company

    Jgola SAVOLA Panda Retail Company i 4 17

  18. Slide 18: Panda – Consolidated Financial Highlights

    Panda – Consolidated Financial Highlights Margin SAR in millions  YTD 2023 revenue is higher YoY Q1-22 Q1-23 Q2-22 Q2-23 YTD-22 YTD-23 by 3% mainly driven by performance of CXR wave 1, and promotional campaign in +11% +3% Q1 2023 -5%  YTD 2023 performance is showing positive LFL growth at Sales 2,

  19. Slide 19: Panda – Consolidated Financial Highlights

    Panda – Consolidated Financial Highlights Margin SAR in millions  EBITDA and net income Q1-22 Q1-23 Q2-22 Q2-23 YTD-22 YTD-23 improved in YTD 2023 compared to the LY, on the back of a higher revenue base and +28% +64% +43% increase in gross margin EBITDA 185 173 358 144 250 105 5.1% 5.9% 4.3% 7.5%

  20. Slide 20: Panda – Number Of Stores

    Panda – Number Of Stores Super Hyper 126 0 0 126 61 0 0 61 Mar-23 Additions Closures Jun-23 Mar-23 Additions Closures Jun-23 Total Mar-23 Jun-23 Net Selling Area Net Selling Area 561.5k m2 561.5k m2 187 0 0 187 Mar-23 Additions Closures Jun-23 . Note: 182 Stores KSA and 5 in Egypt 20

  21. Slide 21: Al Kabeer

    Al Kabeer =—Y (wnat sana

  22. Slide 22: Al Kabeer – Consolidated Financial Highlights

    Al Kabeer – Consolidated Financial Highlights Margin SAR in millions  During YTD 2023, Al Kabeer Q1-22 Q1-23 Q2-22 Q2-23 YTD-22 YTD-23 reported 8% growth in sales YoY  Both its core markets of KSA +15% +8% 0% and UAE saw growth YoY led by better performance in modern trade channel Sales 184 211 16

  23. Slide 23: Al Kabeer – Consolidated Financial Highlights

    Al Kabeer – Consolidated Financial Highlights Margin SAR in millions  EBITDA dropped by 8% in YTD Q1-22 Q1-23 Q2-22 Q2-23 YTD-22 YTD-23 2023 YoY, mainly due to higher operating costs  Higher operating costs were on +1% -23% -8% account of company’s continued investment in o Brand enhancement, EBIT

  24. Slide 24: Q&A

    Q&A 24

  25. Slide 25: Financial Summary

    Jgola SAVOLA Financial Summary 25

  26. Slide 26: Financials – YTD 2023

    Financials – YTD 2023 (All figures are in SAR millions) Segment Wise Financials1 YTD 2023 YTD 2022 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Savola Foods Oil Arabia2 2,530 395 268 226 297 2,608 268 136 115 165 Other Markets 3 3,153 563 332 80 370 3,425 5

  27. Slide 27: Thank you

    Jgola SAVOLA Thank you www.savola.com 27

Savola Group — Q2 2023 Earnings Presentation on 6ix