Update on Five Year Plan - Almarai · Highlights – Q1 2014 Almarai Company 2014 Q1 Earnings...

Almarai Company

2014 Q1 Earnings Presentation

Disclaimer

Information contained in this presentation is subject to change without further notice, its accuracy is not guaranteed and it may not contain all material information concerning the company. Neither we nor our advisors make any representation regarding, and assume no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, to any information contained herein. In addition, the information contains projections and forward-looking statements that reflect the company’s current views with respect to future events and financial performance. These views are based on current assumptions which are subject to various risks and may change over time. No assurance can be given that future events will occur, that projections will be achieved, or that the company’s assumptions are correct. Actual results may differ materially from those projected. This presentation is strictly not to be distributed without the explicit consent of Almarai Company management under any circumstances.

Almarai Company 2 2014 Q1 Earnings Presentation

Business Highlights

Highlights – Q1 2014


Sales Revenue

2014

SAR 2.7 B

2013

SAR 2.4 B +12.8%

EBITDA

2014

SAR 0.6 B

2013

SAR 0.5 B +10.7%

EBIT

2014

SAR 0.3 B

2013

SAR 0.3 B +3.2%

Employees

2014

35 K

2013

29 K +21.5%

Capital Expenditure

2014

SAR 0.9 B

2013 SAR 0.7 B

+19.8%

Acquisition Road Map • 50% share of IPNC

• US Arable Farm

Acquisition

• 3rd Line of Poultry

Operating Cash Flow

2014

SAR 0.6 B

2013

SAR 0.1 B +308.9%

Financial Highlights

Operational Highlights

Work Force / Balance Sheet

Sales Highlights

Sales Analysis by Product


By Product 2013 By Product 2014

Fresh Dairy1.0

Long-Life Dairy0.3

Fruit Juice0.3

Cheese & Butter

0.4

Bakery0.3 Poultry

0.2

Other Sales0.0

SAR 2.4 B

14%

16%

12%

11%

40%

1%

7%

Fresh Dairy1.1

Long-Life Dairy0.3

Fruit Juice0.3

Cheese & Butter0.4

Bakery0.4

Poultry0.2

Other Sales0.0

SAR 2.7 B

11%

39%12%

1%

8%14%

16%

Growth Driven by Poultry, Long-Life and Fresh Dairy


-

500

1,000

1,500

2,000

2,500

3,000

2013 2014

Revenue in SAR Million

2,411

2,719

Growth

2013 v 2014

% of Total

Growth

Fresh Dairy( YoY +13% )

120 38%

Long-Life Dairy( YoY +17% )

43 14%

Fruit Juice( YoY +12% )

34 11%

Cheese & Butter( YoY +7% )

28 9%

Bakery( YoY +10% )

32 11%

Poultry( YoY +30% )

49 16%

Other Sales( YoY +15% )

2 1%

Total( YoY +13% )

308 100%

Sales Analysis by Country


By Geography 2013 By Geography 2014

KSA1.6

UAE0.2

Oman0.1

Kuwait0.1

Qatar0.1

Egypt0.1

Bahrain0.1

Jordan0.1

Export / Others0.0

SAR 2.4 B

65%

9%

5%5% 4%

2%4%2%

3%

KSA1.8

UAE0.3

Oman0.1

Kuwait0.1

Qatar0.1

Egypt0.1

Bahrain

0.1

Jordan0.1

Export / Others0.0

SAR 2.7 B

2%

10%

64%

5%5% 5% 5%

2%

2%

Sales Analysis by Country


-

500

1,000

1,500

2,000

2,500

3,000

2013 2014

Revenue in SAR Million

2,411

2,719

Growth

2013 v 2014

% of Total

Growth

KSA( YoY +11% )

176 58%

UAE( YoY +15% )

34 11%

Oman( YoY +16% )

20 7%

Kuwait( YoY +10% )

13 4%

Qatar( YoY +28% )

28 9%

Egypt( YoY +19% )

20 6%

Bahrain( Yoy +13% )

7 2%

Jordan( YoY +6% )

4 1%

Others( YoY +17% )

7 2%

Total( YoY +13% )

308 100%

Sales growth achieved via our expanding footprints across the region…


Distribution Center

Manufacturing Plant

Milking Parlours

Poultry Farming

Arable & Horticulture Farms

… and resources across the globe…


Financial Performance

Segment Reporting


SAR Million Dairy & Juice Bakery Poultry Other ActivitiesAlmarai

Consolidated

Q1 2014

Sales 2,135.0 373.3 211.1 20.4 2,739.8

Third Party Sales 2,125.6 373.3 211.1 8.9 2,718.9

Depreciation (234.0) (33.7) (65.0) (22.3) (355.0)

Income/(loss) before NCI 366.0 21.6 (133.0) 19.2 273.8

Total Assets 14,031.8 1,983.2 5,046.9 2,444.6 23,506.5

Return on Sales 17.2% 5.8% (63.0%) 215.6% 10.1%

Growth versus Q1 2013

- Third Party Sales 11.8% 9.5% 30.2% 30.0% 12.8%

- Income / (loss) before NCI 38.1% 9.5% 188.7% 95.7% 10.2%

Statement of Income – Q1 2014


SAR million 2014 2013 Change

Sales 2,718.9 2,411.0 12.8%

Cost of sales (1,807.5) (1,583.2) 14.2%

Gross Profit 911.4 827.8 10.1%

Selling and Distribution Expenses (512.2) (450.1) 13.8%

General and Administration Expenses (88.9) (76.8) 15.7%

EBIT 310.4 300.8 3.2%

Share of Results of Associates 21.1 (6.0) (452.3%)

Funding and Currency Costs (52.6) (38.8) 35.7%

Income from Main Operations 278.9 256.1 8.9%

Zakat and Income Tax (5.1) (7.6) (32.7%)

Income before Non Controlling

Interest273.8 248.5 10.2%

Non Controlling Interest (0.2) 6.6 (103.2%)

Net Income 273.6 255.1 7.2%

Earnings Per Share 0.44 0.43 3.0%

Net Income % 10.1% 10.6%

1st Quarter

Balance Sheet & Cash Flows

Cash Flow Bridge – Rolling 12 months


1,794

3,021

1,700 (1,312)

(3,247)

(499)(297)

1,160

Cash at 31 Mar 2013

Operating Cash Flow

Capex / Biological

AssetsDividend

Others

Cash at 31 Mar 2014

(SAR 634 m)

Loans Issues /

Payments /

Charges

Equity Issued -

Perpetual

Sukuk

Capex spend in line with 5YP guidance…


Capex spend for first quarter 2014 was 0.9B SAR. Our current year Capex guidance remains at 3.0-

3.2B SAR which is in line with our 5 year capital

expenditure guidance of 15.7B SAR.

Poultry capex spend for the year reached ~ 0.1B

SAR. The key highlight for the quarter is the

availability of 3rd line.

Sales depot and logistics expansion accounted

for ~0.2B SAR for the quarter.

Manufacturing and Farming consumed capex of

~0.2B SAR each for various capacity expansion

projects

Replacement and other capex including IDJ and

US land acquisition, accounted for another

~0.3B SAR.

Balance Sheet


SAR Mi l l ion 31 Mar 2014 31 Mar 2013

1,660 1,373

1,029 919

15,585 13,845

18,273 16,137

1,354 1,335

564 200

20,191 17,672

8,590 8,885

359 302

122 114

11,120 8,371

20,191 17,672

77.3% 106.1%

Net Operating Working Capital

Biological Assets

Property, Plant and Equipment

Net Operating Assets

Total Equity

Net Capital Employed

Net Debt to Equity Ratio

Intangible Assets - Goodwill

Investment & Financial Assets,

Deferred Charges and Derivatives

Net Debt

Employee Benefits

Deferred Tax (Net)

0 5,000 10,000 15,000 20,000 25,000

2008

2009

2010

2011

2012

2013

2014

SAR Million

Balance Sheet Analysis - Assets

Fixed Assets

Current Assets

Other Long Term Assets

71%

69%

21%

23%

8%

8%

73%

72%

69%

64%

65%

18% 9%

17% 11%

17% 14%

20% 16%

22% 13%

0 5,000 10,000 15,000 20,000 25,000

2008

2009

2010

2011

2012

2013

2014

SAR in Million

Balance Sheet Analysis - Equity & Liabilites

Equity

Non Current Liabilities

Current Liabilities

47%

46%

36%

38%

17%

16%

42% 39% 19%

43% 39% 18%

49% 36% 15%

49% 38% 13%

44% 40% 16%

Net Debt


3,398 3,869 4,606 6,653 8,237 8,161 8,590

94%

72% 74%

98% 101%

76% 77%

2.3x 2.3x 2.2x

2.8x

3.1x 3.0x

3.0x

0%

50%

100%

150%

200%

250%

300%

350%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2008 2009 2010 2011 2012 2013 Last 12

Months

Net Debt Net Debt / Equity Ratio Net Debt / EBITDA

SA

R m

illio

n

Debt Profile highlights balanced approach for

funding….


0.0

0.5

1.0

1.5

2.0

2.5

<1yr 1-2 yr 2-3yr 3-4 yr 4-5yr >5yr

SA

R M

illio

n

Debt Maturity by Age and Type

Islamic Bonds

Govt / Semi Govt Inst.

Banks

6.0, 61%

1.4, 15%

2.3, 24%

Trend charts

Quarterly Performance – Net Income


16

2.2

19

7.4

23

4.1

23

5.2

24

2.1

25

5.1

27

3.6

23

5.2

28

7.1

34

3.1

34

9.3

37

9.5

39

8.2

29

3.7

36

3.4

42

4.5

42

9.7

45

0.0

47

5.6

21

9.2

24

8.8

28

3.5

28

5.5

36

9.0

37

3.3

0

50

100

150

200

250

300

350

400

450

SA

R M

illio

n

2014 versus 2013

Q1 = 7.2%

*

* Q4 income growth is 16.0% after excluding the effect of capital gain of SAR 47.2m in Q4 2012

Robust revenue growth with challenging – but

anticipated – EBITDA & EBIT trend


Revenue, EBITDA and EBIT Evolution

5,030

5,869

6,931

7,951

9,883

11,21911,527

21.0%21.8%

21.1%

19.1%

16.9%16.0% 15.7%

25.3%

26.7% 27.2%

25.6%

24.2% 24.4%24.2%

2008 2009 2010 2011 2012 2013 Last 12 Months

SA

R M

illio

n

Revenues

EBIT % to Revenues

EBITDA % to Revenues

CAGR 2008 – 2014: 17.1% (w/o impact of acquisitions 11.6%)

0%

50%

100%

150%

200%

250%

300%

350%

Almarai TASI

Key Share Data


Share Price (SAR) 64.75

Current P/E Rat io (ttm) 20.9

Estimated P/E(12/2014) 21.0

Earnings Per Share (SAR) (ttm) 2.5

Market Cap (M SAR) 31,497.6

Shares Outstanding (M) 600.0

30 Day Average Volume 475,749.0

Dividend Indicated Gross Yield 1.9%

Cash Dividend (SAR) 1.0

5 Year Dividend Growth 11.7%

Key Stat ist ics for Almarai (30 March 2014)

21%

10%

15%

20%

25%

30%Year to date total shareholder's return

since listing

Thank you

Almarai Company

Exit 7, North Circle Road

Al Izdihar District

P.O. Box 8524

Riyadh, 11492

Saudi Arabia

Contact for investor relations matters:

Khalid M. Al Nasser

+966 11 470 00 05 ext 1280

[email protected]

Date post:	17-Jul-2020
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Update on Five Year Plan - Almarai · Highlights – Q1 2014 Almarai Company 2014 Q1 Earnings...

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