Investor presentation FY 2016 · 2016-03-24 · 4 INTRODUCTION SACC Investor presentation FY 2015...

Investor presentation

FY 2016

1SACC Investor presentation FY 2015


Introduction 3

Business overview 10

Financials 26

Table of Content

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3

Introduction

SACC Investor presentation FY 2015



4

INTRODUCTION


• SACC was one of the SBU's of SAUDIA.

SACC was 100% owned by SAUDIA until

the latter divested its shares during the

2008 privatization.

• 49% of SACC shares at that time were

controlled by the consortium of Al-Hokair

Group, Al-Fowzan Group and a French

company Newrest.

• In May 2012, the Capital Market Authority

approved SACC's application for IPO

where 24.6 million shares representing

30% of SACC shares were offered for sale

with an offering size of 1.33 billion Saudi

Riyals. As of 31.12.2015 SACC foreign

ownership was 19%, representing 24

countries.

5

SHAREHOLDERS as of 31/12/2015*)

Strategic Catering Co: Al-Hokair Group, Injaz Holdings, and Newrest Group

*) As of 03/02/2016 percentage of major shareholders SACC, SCCL remains the same. Source: Tadawul


6

BRIEF HISTORY

• SACC was established in 1981

• Started with :

1. Jeddah Catering Unit at King Abdul

Aziz International Airport in 1981

2. Riyadh Catering Unit at King Khalid

International Airport in 1983

3. Cairo Catering Unit at Cairo


4. Dammam Catering Unit at King

Fahad International Airport in 1999

5. Medina Catering Unit at Prince

Mohammed bin Abdul Aziz



BOARD OF DIRECTORS 31.12.2015


Saleh Bin Nasser

Al Jasser

Chairman (Non-executive)

Sami A. Al Hokair

Non-executive

Board Member

Shawgi M. Mushtag

Non-executive

Board Member

Jonathan Stent-Torriani

Non-executive Board MemberRaid Bin Ibrahim

Sulaiman Al-Mudaihem

Non-executive Board Member

Fahd A. Al Rasheed

Non-executive & Independent

Board Member

Abdullah Jameel Taibah

Non-executive & Independent

Board Member

Ayman T. Al-Tayyar

Non-executive

Board Member

Abdulmohsen Al-Yahya

Non-executive

Board Member

8

CORPORATE ORG. CHART


SACC STAFF COUNT

9

2011 2012 2013 2014 2015

Saudi males 849 896 788 758 945

Saudi females 135 165 165 98 105

Total Saudis 984 1,061 953 856 1,050

Expatriates 2098 2416 2549 3025 2807

Total permanent staff 3,082 3,477 3,502 3,881 3,857

• Saudization rate at the end of 2015 was 20.9%, which places SACC in

medium green level in relevant category

• In addition to permanent staff SACC employed 1,295 temporary staff at

the end of 2015

• The total number of permanent and temporary staff at the end of the year

was 5,152



Business Overview



11

PRODUCTS & SERVICES


SAUDIA FLEET DEVELOPMENT


Aircraft Type Family 320

Family 330

33R Family 744

Family 787

Family 777- 200

Family 777- 300

E70 Total

Dec 31, 2015 50 12 - 3 - 22 19 13 119

Phase IN1 2 - 9 - 4 - 9 - 24

Phase OUT - - - 3 - 3 - 13 19

Dec 31, 2016 52 12 9 - 4 19 28 - 124

- Total arrivals of the aircraft in 2016 is expected to be 28, however remaining 4 aircrafts will be operative in 2017.

The state-owned carrier would raise the number of its planes to 200 from 119

now and add new international and domestic routes.

He stressed that Airline’s plan is to purchase more than 100 aircraft during

the next five years. Furthermore, he has announced that 19 planes will be

taken out of service during the upcoming period, of which 15 are the Embraer

type and four ‘747’ jumbo jets.

“

”Saleh Al-Jasser, 2015

FLIGHT CATERING UNITS

13

Location Established

Current

production

pa.

Max

production

capacity pa.

Utilization

rate

JED 1981 14 16 88%

RUH 1983 13 15 87%

DMM 1999 3 6 50%

MED 2001 2 3 62%

CAI 1984 1 3 43%

Total 33 43 77%

CPU 2012 19 27 69%


STATISTICS

14

Particulars 2015

Total number of inflight meals catered 33 million

Total number of flights catered 219,487 flights

Total number of Hi-Loaders 130 units

Total number of Airline clients SAUDIA + 55 other airlines

Total number of Business Lounges 18 (11 Intl & 7 Dom)

Total number of Lounges guests 2 million

Total number of Non-Airline clients 46 (33 Food & 13 Laundry)


15

FLIGHTS AND MEALS

1000 units 2011 2012 2013 2014 2015

Number of flights

Saudia 114 119 120 127 130

Others 25 28 32 51 60

Private 16 20 23 25 30

Total 154 168 175 204 219

Number of meals

Saudia 22,053 23,879 24,917 27,455 27,953

Others 3,446 3,301 3,537 4,299 4,271

Private 612 816 1,002 978 866

Total 26,112 27,997 29,456 32,732 33,091


16

LOUNGE GUESTS


79

98

106

208

444

610

716

797

0

0

0

2

620

672

764

947

1,143

1,380

1,585

1,954

0 500 1000 1500 2000 2500

2012

2013

2014

2015

TOTAL RUH MED JED DMM

17

2015 KINGDOM’S AIRPORT RECORDED 81.9m

PASSENGERS

JED RUH DMM MEDOther

airportsTotal

Arrivals 212,799 172,754 84,803 48,296 127,973 646,693Passengers in millions 30.1 22.5 9.4 6.3 13,6 81.9


• Four main airports:

• 80% of flights

• 83% of passengers

18

DEPENDANCY FROM SAUDIA DECREASES


2011 2012 2013 2014 2015

SV share of net sales

77% 73% 72% 69% 65%

• Besides in-flight catering services, SACC provides Saudia airline

equipment, lounge services and manages SkySales on-board sales

• SACC’s dependency from SV has decreased significantly due to

successful strategy implementation

• Trend is expected to continue also during 2016

19

CENTRAL PRODUCTION UNIT (CPU)

Freezing tunnel using liquid nitrogen

Smoke chambers for various smoked products Pre-cut vegetables and chilling machine


20

BUSINESS LOUNGES

RUH International Lounge RUH Domestic Lounge

DMM International Lounge DMM Domestic Lounge


21

BUSINESS & TRANSIT LOUNGES

RUH Lounge Cafe

MED International Lounge


JED Transit Lounge

22

AIRPORT EXECUTIVE OFFICE

JED Executive Office

RUH Executive Office

DMM Executive Office


23

LOUNGE CAFÉ

RUH TR-3 Lounge Café

JED South Terminal (INT) Lounge Café

JED South Terminal (DOM) Lounge Café


24

RETAIL

RUH TR-3 SkySales Shop

JED South Terminal DOM DEP SkySales Shop JED South Terminal DOM ARR SkySales Shop

JED North Terminal DEP SkySales Shop


25

HAJJ & UMRAH CATERING SERVICES


• Provide catering services to businesses

(B2B) for Hajj and Umrah pilgrims.

• Provide safe, quality, value for money food

based on client needs for consumption of

pilgrims during their stay in the Kingdom.

• Taking part in the Kingdom’s effort in

supporting the visitors of the Two Holy

Mosques during the Pilgrimage Seasons.

26

NON-AIRLINES BUSINESS


• Business & Industry (B&I)

STC, banks, Tasnee, CITC, etc.

• Institutions

British Intl School, American Intl School,

Jeddah Intl School, etc.

• Laundry Services

Various hospitals & hotels

• Rail Catering

Saudi Railways Organization

• Remote Sites Catering

Ma’aden, Nabors, Arabia Drilling Co, etc.

• Accommodation




Financials



28

6,756.99

6,911.76

54.00

123.05

50.00

100.00

150.00

200.00

IPO

9th

Ju

l-1

2Ju

l-1

2D

ec-

12

Jan

-13

Feb

-13

Mar

-13

Ap

r-1

3M

ay-1

3Ju

n-1

3Ju

l-1

3A

ug-

13

Sep

-13

Oct

-13

No

v-1

3D

ec-

13

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4M

ay-1

4Ju

n-1

4Ju

l-1

4A

ug-

14

Sep

-14

Oct

-14

No

v-1

4D

ec-

14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5M

ay-1

5Ju

n-1

5Ju

l-1

5A

ug-

15

Sep

-15

Oct

-15

No

v-1

5D

ec-

15

5,000

10,000

15,000

20,000

Tadawul Index SACC closing share price

SHARE PRICE DEVELOPMENT


29

2015 KEY FINANCIALS

2015

487

560

2011 421

699

2014 654

2012

2013+6,9%

28.9

2015

30.6

2013

28.7

30.9

2011

30.5

2014

2012

5,944,50

2014

2015 8,52

5,506,94

2012

6,75

2013

7,79

Earnings per share before Z&IT Dividends per share

+7,5%

1.318

2012 1.062

981

2015

2013

2014 1.226

1.159

2011

+5,8%1.687

1.465

1.870

2011

2014

2013

2015 2.261

2.136

2012

Note! 2015 final dividend is not yet decided

Net sales increased by 5.8% from 2.136 MSR to 2.261 MSR

Net profit increased by 6.8% from 653 MSR to 699 MSR

Earnings per share before zakat and income tax are 8.52

SAR (7.97 SAR)

Cash and cash equivalents have reduced from 477 MSR to

304 MSR. SACC is currently investing into fixed assets (20

H/L, Dammam staff accommodation, KAEC Laundry project,

Madinah new catering unit) and maintaining high dividend

payout ratio

Company remained debt free after financing all its operating

expenses, CAPEX and dividend from cash flow

Shareholders equity

Net profit %

Net profit


Revenues

REVENUES

• Key businesses experienced solid growth rates

Source: Financial Statements

1.500

1.400

2.300

2.100

2.200

1.300

1.800

2.000

1.900

1.700

1.200

0

4%

2015

2.136

2015 vs. 20142014

75%

10%

+6%

8%

1.867

77%

2.261

+2%

2013

10%

+14%

+48%

2.261

6%

2% -17%

+17%

11%

72%

3% 9%

5%

3%

10%

10%4%

2012

1.687

5%

77%

3%

80%

7%

1.465

3%

4%

4%

2011

SAR (millions)

30

Other Revenues Non-Airline SkysalesLounges Inflight Catering


NET INCOME

• Net income before tax and zakat increased by SAR 45m or +6.8%

Source: Financial Statements

SAR (millions)

• Percentage of net income before tax and zakat to total revenues

699654

569

487

421

0

100

200

300

400

500

600

700

2015

+6,8%

20132011 20142012

28.7%*) 28.9% 30.5% 30.9%30.6%


CASH FLOW

SAR (millions)

32

47

10

25

91

56

Provisions and

accruals, net

304

Dividends paid

CAPEX Cash balance

31.12.2015

-292

Operating cashflow, +649 MSR

-565

Zakat and income tax

Long term investments

Cash balance

31.12.2014

Net income Depr.

477

EOSA paid

699

1,126

Change in WoC

-130

• Operating cash flow was 649 MSAR

• WOC development towards the year end was good. In December we received 300

MSAR from Saudia instead of usual 100 MSAR

• CAPEX was lower than budgeted

• Dividends paid represented the largest single outflow



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