Almarai Company

Interim Results – 3rd Quarter 2016

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 2016 Q3 Earnings Presentation 2

Business Highlights

Highlights – YTD Q3, 2016

2016 Q3 Earnings Presentation

2013

SAR 11.2 B +12.4%

EBITDA 2016

SAR 2.7 Billion

2015

SAR 2.5 Billion +10.0%

Net Sales 2016

SAR 11.1 Billion

2015

SAR 10.2 Billion +8.6%

Net Income 2016

SAR 1.6 Billion

2015

SAR 1.4 B +11.2%

Operating Cash Flow 2016

SAR 3.0 Billion

2015

SAR 3.3 Billion -9.2%

4 Almarai Company

Capital Expenditure 2016

SAR 3.3 Billion

2015

SAR 2.7 Billion +22.2%

Free Cash Flow 2016

SAR -0.7 Billion

2015

SAR 0.5 Billion

-238.0%

Employees 2016

44 K

2015

41 k +8.7%

New Products • Dairy – Higher

• Food – Stable

• Bakery - Higher

• Poultry - Stable

Market Share

• 13 New products in three

quarters of 2016

Innovation Pipeline for Q3, 2016

1st Quarter

2nd Quarter

3rd Quarter

2016 Q3 Earnings Presentation 5 Almarai Company

Sales Highlights

2016 Q3 Earnings Presentation 7 Almarai Company

Sales Analysis by Segment by Product

Note: All Amounts in Million Saudi Riyals

Total

Net Sales

+8.6%

Net Sales

By Segment

Bakery

1,385 (13%)

(+234)

Poultry

992 (9%)

(+54)

Others

134 (1%)

(-8)

+20.3% +5.8% -5.6%

Fresh Dairy

4,626 (42%)

(+324)

Long-Life Dairy

1,139 (10%)

(+160)

Fruit Juice

1,514 (14%)

(+72)

Cheese & Butter

1,299 (12%)

(+42)

Bakery

1,385 (13%)

(+234)

Poultry

992 (9%)

(+54)

Other Sales

134 (1%)

(-8)

+7.5% +16.3% +5.0% +3.4% +20.3% +5.8% -5.6%

Net

Sales

By Product

11,088(+878)

Dairy & Juice

8,577 (77%)

(+598)

+7.5%

2016 Q3 Earnings Presentation 8 Almarai Company

Sales Analysis by Region by Country

Note: All Amounts in Million Saudi Riyals

Total

Net Sales

Net

Sales

By Region

KSA

7,016 (63%)

(+498)

+7.6%

KSA

7,016 (63%)

(+498)

UAE

1,074 (10%)

(+100)

Oman

555 (5%)

(+40)

Qatar

537 (5%)

(+39)

Kuwait

499 (4%)

(+21)

Bahrain

226 (2%)

(+12)

Egypt

755 (7%)

(+86)

Jordan

214 (2%)

(+11)

Others

212 (2%)

(+70)

Growth in Saudi Riyals +7.6% +10.3% +7.9% +7.8% +4.4% +5.7% +12.8% +5.3% +49.6%

Growth in Local Currency +10.7% 29.6%

Net

Sales

By Country

11,088(+878)

+8.6%

Other GCC Countries

2,890 (26%)

(+213)

Other Countries

1,182 (11%)

(+167)

+8.0% +16.4%

% to Sales

YTD Q3, 2016 Results

Operating Performance

2016 Q3 Earnings Presentation 9 Almarai Company

38.6% 39.4% 16.5% 17.0% 14.0% 14.4%

3,945

4,373

YTD Q3, 2015 YTD Q3, 2016

SAR Million

Gross Profit

+428

(+10.8%)

1,690

1,880

YTD Q3, 2015 YTD Q3, 2016

SAR Million

Operating Income

+191

(+11.3%)

1,432 1,592

YTD Q3, 2015 YTD Q3, 2016

SAR Million

Net Income

+160

(+11.2%)

YTD Q3, 2016 Results

Net Income by Segment:

2016 Q3 Earnings Presentation 10 Almarai Company

Basic EPS* (SAR) 1.75 1.95

Net Income % 14.4% 20.1% 17.7% -25.4% -92.3%

Net Sales Growth 8.6% 7.5% 20.3% 5.8% -5.6%

Net Income Growth 11.2% 8.9% 97.9% 52.9% 13.9%

1,592 1,432

141 122 (87)

(15)

YTD Q3, 2015 Dairy & Juice Bakery Poultry Other YTD Q3, 2016

SAR Million

*EPS – Earnings Per Share

• Manufacturing and Farming spent CAPEX of SAR ~2.1 Billion for various capacity expansion projects.

• Replacement and other CAPEX including IDJ and US land development, accounted for another SAR ~0.5 Billion.

• Sales depot and logistics expansion accounted for SAR ~0.5 Billion.

• Poultry CAPEX spend for the last 3 quarters reached SAR ~ 0.2 Billion.

Almarai remains within the 5 Year Plan CAPEX Investment

2016 Q3 Earnings Presentation 11 Almarai Company

CAPEX spend for the three quarters of 2016 was SAR 3.3 Billion which

is in line with our annual CAPEX run rate.

40 Mega Watt Power Plant

Accommodation

Blow Molding Machine with Baggers

Cash Flow Bridge – Rolling 12 Months

2016 Q3 Earnings Presentation 12 Almarai Company

2,088

4,632 7 (5,240)

(688)

(13) 785

Cash at 30

Sept 2015

Operating Cash Flow

CAPEX / Biological

Assets Dividend Others

Cash at 30

Sept 2016(SAR 1,302 Million)

Loans Issues /

Payments /

Charges

Net Debt

2016 Q3 Earnings Presentation 13 Almarai Company

3,869 4,606 6,653 8,237 8,053 8,762 9,344 10,906

72% 74%

98% 101%

75% 75% 74% 81%

2.3x 2.2x

2.8x

3.1x 3.0x

2.8x 2.7x 2.8x

0%

50%

100%

150%

200%

250%

300%

350%

0

2,000

4,000

6,000

8,000

10,000

12,000

2009 2010 2011 2012 2013 2014 2015 Last 12

Months

Net Debt Net Debt / Equity Ratio Net Debt / EBITDA

SA

R M

illi

on

Quarterly Performance – Net Income

2016 Q3 Earnings Presentation 14 Almarai Company

* Capital gain of SAR 47m in 2012

197

234 235 242 255 274

306 309 287

343 349

380 398

433

530

629

363

425 430

450

476

539

595

655

249

284 286

369 373

428

484

0

100

200

300

400

500

600

700

SA

R M

illi

on

2016 versus 2015

Q 1 = 0.7%

*

Q2 = 18.5%

Q 3 = 10.0%

EBIT and EBITDA margins are starting to improve……

Net Sales, EBITDA and EBIT Evolution

2016 Q3 Earnings Presentation 15 Almarai Company

5,869

6,931

7,951

9,883

11,21912,606

13,795

14,672

21.8%21.1%

19.1%

16.9%16.0% 15.8% 16.4% 16.7%

26.7% 27.2%

25.6%

24.2% 24.4%23.9%

24.2% 24.4%

2009 2010 2011 2012 2013 2014 2015 Last 12 Months

SA

R M

illio

n

Net Sales

EBIT % to Revenues

EBITDA % to Revenues

CAGR 2009 – 2016: 14.1% (w/o impact of acquisitions 10.7%)

0%

100%

200%

300%

400%

500%

600%

Au

g-0

5

Ma

r-0

6

Oc

t-06

Ma

y-0

7

Dec

-07

Ju

l-0

8

Fe

b-0

9

Se

p-0

9

Ap

r-10

No

v-10

Ju

n-1

1

Jan

-12

Au

g-1

2

Ma

r-13

Oc

t-13

Ma

y-14

Dec

-14

Ju

l-15

Fe

b-1

6

Se

p-1

6

Almarai Tasi Agriculture & Food Industries

Key Share Data

2016 Q3 Earnings Presentation 16 Almarai Company

Share Price (SAR) 53.11

Current P/E Ratio (ttm) 21.03

Earnings Per Share (SAR) (ttm) 2.53

Market Cap (SAR Million) 42,488

Shares Outstanding (Million) 800

Dividend Indicated Gross Yield 1.62%

Key Statistics for Almarai (29 September 2016)

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