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Almarai Company 2013 Q4 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
2013 Q4 Earnings Presentation
2
Business Highlights
Highlights – 2013 Financial Highlights EBITDA
Sales Revenue 2013
2013
SAR 11.2 B 2012 SAR 9.9 B
EBIT 2013
SAR 2.7 B 2012 SAR 2.4 B
+13.5%
SAR 1.8 B 2012 SAR 1.7 B
+14.5%
+7.4%
Operational Achievements Operating Cash Flow
Employees
2013
2013
34 K
2012 29 K
SAR 2.6 B 2012 SAR 2.7 B
+19.8%
Acquisition Road Map • •
-5.5% •
25% interest of Teeba 33% interest in UFHC and 100% acquisition of CFG by UFHC. 50% share of IPNC
Balance Sheet / Market Changes Capital Expenditure 2013
SAR 2.8 B 2012 SAR 3.0 B
Almarai Company
-9.4%
Sukuk Issuance •
•
Sukuk issuance of 1.3B in Apr 2013 Perpetual Sukuk of 1.7B in Sep 2013
2013 Q4 Earnings Presentation
Market Capitalization 2013
SAR 32 B 2012 SAR 25 B
+28.0%
4
Sales Highlights
Sales Analysis by Product By Product 2012 13% Ba kery 1.3
16%
13%
1%
13%
1% O ther Sales
Ba kery 1.4
0.0
10%
41%
Fr esh Dairy 4.1
1%
Ar a ble and H or ticulture 0.1
15%
13%
7%
Poultry 0.8
Cheese & Butter 1.6
SAR 9.9 B
L ong-Life Dairy 1.0
Almarai Company
5%
Poultry 0.5
Ar a ble and Hor ticulture 0.1
Cheese & Butter 1.6
Fr uit Juice 1.2
By Product 2013
0%
O ther Sales 0.0
SAR 11.2 B
41%
Fr uit Juice 1.5
10%
Fr esh Dairy 4.6
L ong-Life Dairy 1.1
2013 Q4 Earnings Presentation
6
Growth Driven by Poultry, Juice and Fresh Dairy Revenue in SAR Million 12,000
10,000
11,219
Growth 2012 v 2013 Fresh Dairy ( YoY 14%)
9,883
Long-Life Dairy ( YoY 5%)
Fruit Juice
8,000
( YoY 17%)
Cheese & Butter ( YoY 3%)
6,000
Bakery ( YoY 12%)
Poultry
4,000
( YoY 57%)
Arable & Horti ( YoY 23%)
2,000
Other Sales ( YoY -43%)
Total
2012
Almarai Company
2013
( YoY 14%)
2013 Q4 Earnings Presentation
% of Total Growth
574
43%
54
4%
213
16%
47
4%
154
12%
288
22%
26
2%
(21)
-2%
1,336
100%
7
Sales Analysis by Country By Geography 2012
5% 4% 3% 2% Q a tar Ba hrain 5% K uwait 0.5 0.4
10% UAE 1.0
O ma n 0.5
0.2
2%
E gypt Jor dan 0.3 0.2
By Geography 2013
1% E xport / Others 0.1
5%
9% UAE 1.0
SAR 9.9 B
0.5 Ba hrain 0.2
K uwait 0.6
O ma n 0.6
Qa tar 0.5
2%
3%E xport / Others
Jor dan 0.3
0.3
SAR 11.2 B
65%
67% K SA 6.7
Almarai Company
5%
4% 4%E gypt 2%
K SA 7.3
2013 Q4 Earnings Presentation
8
Sales Analysis by Country
Growth 2012 v 2013
Revenue in SAR Million 12,000
10,000
11,219
KSA ( YoY 9%)
UAE
9,883
( YoY 5%)
Oman ( YoY 13%)
8,000
Kuwait ( YoY 15%)
Qatar
6,000
( YoY 18%)
Egypt ( YoY 53%)
4,000
Bahrain ( Yoy 16%)
Jordan
2,000
( YoY 67%)
Others ( YoY 79%)
-
2012
2013
Total ( YoY 14%)
Almarai Company
2013 Q4 Earnings Presentation
626
% of Total Growth
47%
52
4%
68
5%
71
5%
75
6%
173
13%
32
2%
126
9%
112
8%
1,336
100%
9
Sales growth achieved via our expanding footprints across the globe…
Farming
Distribution Center Manufacturing Plant Milking Parlours Poultry Farming Arable & Horticulture Farms
Almarai Company
2013 Q3 Earnings Presentation
10
Financial Performance
Segment Reporting – Dairy & Juice Growth
Challenges
Opportunities
• In Dec 2013, achieved the 1-billion litres mark on saleable milk. • First shipment of Fondomonte feed was shipped for Almarai in Q4, 2013 • Market share in nearly all markets either stable or growing • Purchase price of key feed / dairy commodities continue to climb • Dairy segment gain in IDJ entities are yet to contribute significantly • Expansion of SKUs in Juice range • Lower growth in foods category • Gain economies of scale via Lean methodology • Expand source of feed supply via internal resources • Expansion of capacity in both juice and dairy filling lines
SAR Mi l l i on Ful l Year 2013 Sales
8,868.2
Third Party Sales
8,835.8
Depreciation Income / (loss) before Non Controlling Interest Total Assets Return on Sales
1,705.4 13,398.9
19.3%
- Third Party Sales
10.8%
- Income / (loss) before Non Controlling Interest
18.7%
Q4 2013 Sales
2,390.7
Third Party Sales
2,371.3 (240.9)
Income / (loss) before Non Controlling Interest
441.2
Return on Sales
18.6%
Growth versus Q4 2012
2013 Q4 Earnings Presentation
(930.1)
Growth versus Q4 YTD 2012
Depreciation
Almarai Company
Dai ry & Jui ce
0.0%
- Third Party Sales
12.8%
- Income / (loss) before Non Controlling Interest
13.8%
12
Segment Reporting – Bakery SAR Mi l l i on
Growth
Challenges
Opportunities
• Continue to expand on bread & bun growth • NPD are driving volume & revenue growth • Capacity and GCC expansion are the main driver of growth
• Continuous supply of quality raw materials • Managing rollout of full range of bakery in gulf countries • Plant expansion to meet increased demand
• Higher van utilization across GCC • Further expansion of bread & bun line • NPDs to help gain volume share
Bakery
Ful l Year 2013 Sales
1,445.1
Third Party Sales
1,445.1
Depreciation Income / (loss) before Non Controlling Interest Total Assets
Return on Sales
(136.7) 139.4 2,035.1
9.6%
Growth versus Q4 YTD 2012 - Third Party Sales
12.0%
- Income / (loss) before Non Controlling Interest
30.2%
Q4 2013 Sales
410.0
Third Party Sales
410.0
Depreciation
(36.1)
Income / (loss) before Non Controlling Interest
Return on Sales
62.1
15.2%
Growth versus Q4 2012
Almarai Company
2013 Q4 Earnings Presentation
- Third Party Sales
11.0%
- Income / (loss) before Non Controlling Interest
55.8%
13
Segment Reporting – Poultry Growth
Challenges
Opportunities
• Bird sales increased to 65M birds from 35M birds last year • Doubled the retail shops serve yoy to more than 10K • Line 1 and Line 2 were commissioned during Q1 and Q2 • Secure bird supply (in terms of number of birds and optimal weight) • Phased launch in selected GCC markets. • Retain skilled and experienced workforce.
• Expand on NPD launched in 2013 (pictured below) and focus on value added products • Expand geographical expansion for the full suite of poultry range • Commercial production of Line 3 in Q1, 2014
SAR Mi l l i on
Poul try
Ful l Year 2013 Sales
792.3
Third Party Sales
792.3
Depreciation
(174.6)
Income / (loss) before Non Controlling Interest
(338.6)
Total Assets
4,993.9
Return on Sales
(42.7%)
Growth versus Q4 YTD 2012 - Third Party Sales - Income / (loss) before Non Controlling Interest
57.1% 249.8%
Q4 2013 Sales
214.6
Third Party Sales
214.6
Depreciation
(64.5)
Income / (loss) before Non Controlling Interest
Return on Sales
(126.4)
(58.9%)
Growth versus Q4 2012 - Third Party Sales - Income / (loss) before Non Controlling Interest
Almarai Company
2013 Q4 Earnings Presentation
32.1% 285.5%
14
Statement of Income – Full Year 2013 SAR million
2013
Q4 2012
Change
3,008.2 (2,023.6)
2,645.5 (1,775.7)
13.7% 14.0%
Gross Profit Selling and Distribution Expenses General and Administration Expenses
984.6 (492.1) (34.3)
869.9 (450.3) 17.8
EBIT Share of Results of Associates Funding and Currency Costs
458.2 (4.8) (64.5)
Income from Main Operations Zakat and Income Tax
Sales Cost of sales
Income before Non Controlling Interest Non Controlling Interest Net Income Earnings Per Share
Net Income %
Almarai Company
2013
Full Year 2012
Change
11,219.2 9,883.0 (7,267.3) (6,371.9)
13.5% 14.1%
13.2% 9.3% (293.2%)
3,951.8 (1,870.5) (284.8)
3,511.1 (1,616.7) (221.4)
12.6% 15.7% 28.6%
437.3 (3.0) (46.6)
4.8% 61.1% 38.4%
1,796.6 (30.0) (224.3)
1,672.9 (24.6) (157.5)
7.4% 21.9% 42.4%
388.9 (13.5)
387.8 (15.4)
0.3% (12.2%)
1,542.4 (42.0)
1,490.9 (50.9)
3.5% (17.6%)
375.4
372.4
0.8%
1,500.4
1,439.9
4.2%
1.8
0.7
155.6%
1,502.2
1,440.6
4.3%
(2.2)
(3.4)
n.a
373.3
369.0
1.2%
0.63
0.62
2.50
2.41
12.4%
13.9%
13.4%
14.6%
2013 Q4 Earnings Presentation
15
Balance Sheet & Cash Flows
Cash Flow Bridge 1,300
1,700 Sukuk
2,586
417 Operating Cash Flow Ca sh at 31 De c 2012
Almarai Company
(301)
(3,070)
Loans Issues / Payments / Charges
(499)
Equity Issued Perpetual Sukuk
Capex / Biological Assets
+ SAR 1,393 m
2013 Q4 Earnings Presentation
Dividend
(323)
1,811
Others
Ca sh at 31 De c 2013
17
Capex spend in line with 5YP guidance…
Capex spend for the year 2013 was 2.8B SAR, which is in line with our 5 year capital expenditure guidance. We remain committed to the 15.7B spend over the current 5 year period.
Poultry capex spend for the year reached 1.0B SAR. The key highlight for the year was the commercial start of the first line in Q1 and second line in Q2 as well as availability of 3rd line for commercial testing in Q4.
Sales depot and logistics expansion accounted for ~0.8B SAR for the year, resulting in our growing foot print across the GCC.
Manufacturing and Farming consumed capex of ~0.3B SAR each for various capacity expansion projects
Replacement and other capex including IDJ, accounted for another ~0.4B SAR.
Almarai Company
2013 Q4 Earnings Presentation
18
Balance Sheet SAR Mi l l i on
31 Dec 2013
Net Operating Working Capital Biological Assets Property, Plant and Equipment Net Operating Assets Intangible Assets - Goodwill Investment & Financial Assets, Deferred Charges and Derivatives Net Debt Employee Benefits Deferred Tax (Net) Total Equity Net Capital Employed
Net Debt to Equity Ratio
Almarai Company
2013 Q4 Earnings Presentation
31 Dec 2012
1,535 992 15,028 17,555 1,310
932 901 13,416 15,249 1,335
519
227
19,384
16,812
8,161 340 118 10,764 19,384
8,237 287 116 8,171 16,812
75.8%
100.8%
19
Net Debt 9,0 00
3 .1x
8,0 00
in million SAR
2.3 x
6,0 00 1.7x
2.3 x
250 %
2.2x
1.9x
20 0 %
4,0 00
150 %
3 ,0 00 2,0 00 1,0 00 0
70 %
98%
94%
80 %
72%
10 1% 76%
74%
10 0 % 50 %
1,3 20
2,454
3 ,3 98
3 ,869
4,60 6
6,653
8,23 7
8,161
20 0 6
20 0 7
20 0 8
20 0 9
20 10
20 11
20 12
20 13
N e t Debt
Almarai Company
3 50 %
3 0 0%
2.8x
7,0 00
5,0 0 0
3 .0 x
N e t Debt / Equity Ratio
2013 Q4 Earnings Presentation
0%
N e t Debt / EBITDA
20
Debt Profile highlights balanced approach for funding…. 3 .5
Debt Maturity by Age and Type
3 .0
2.3 , 23%
S AR Billion
2.5
6.1, 62%
Isl amic Bonds Govt / Semi Govt Inst.
2.0
1.5, 15%
Banks 1.5 1.0 0 .5 0.0 5yr
21
Trend charts
Quarterly Performance – Net Income 2013 versus 2012 Q3 = 5.7%
450
Q4 = 1.2%
Q2 = 4.9%
*Q4=16.0%
400
350
373.3
369.0
285.5
283.5
248.8
219.2
193.1
130.2
475.6
429.7
424.5
363.4
186.1
122.6
293.7
398.2
379.5
349.3
343.1
287.1
235.2
165.3
242.1
235.2
255.1 121.8
122.8
50
90.6
100
197.4
150
234.1
200
162.2
SAR Million
250
450.0
Q1 = 5.4%
300
0
* Q4 income growth is 16.0% after excluding the effect of capital gain of SAR 47.2m in Q4 2012
Almarai Company
2013 Q4 Earnings Presentation
23
Robust revenue growth with challenging – but anticipated – EBITDA & EBIT trend Revenue, EBITDA and EBIT Evolution
25.0%
SAR in Million
19.4%
26.0%
20.7%
26.7%
27.2% 25.6%
25.3%
21.0%
24.2% 21.8%
21.1%
24.4%
11,219 19.1%
9,883 16.9%
CAGR 2006 – 2013: 22.2% (w/o impact of acquisitions 16.1%)
16.0%
7,951
Revenues
6,931
EBIT % EBITDA %
5,869 5,030
3,770 2,757 2006
Almarai Company
2007
2008
2009
2010
2013 Q4 Earnings Presentation
2011
2012
2013
24
Key Share Data Key S tati sti cs for Al marai (1 Jan 20 14)
3 0 0%
250 %
C u rren t P /E R ati o (ttm) Esti mated P /E(12/20 13 ) Earn i n gs P er S h are (S AR ) (ttm) M ark et C ap (M S AR ) S h ares O u tstan di n g (M ) 3 0 D ay Average V ol u me D i vi den d In di cated Gross Yi el d C ash D i vi den d (S AR ) 5 Year D i vi den d Growth
30%
20 .9 21.0 2.5 3 1,498 60 0 .0 475,749 1.9% 1.0 11.7%
Year t o date total shareholder's return si n ce listing
25%
19%
2 0% 15 % 10%
20 0 %
150 %
10 0 %
50 %
0%
Almarai Almarai Company
TASI
2013 Q4 Earnings Presentation
25
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]
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
2013 Q4 Earnings Presentation
2
Business Highlights
Highlights – 2013 Financial Highlights EBITDA
Sales Revenue 2013
2013
SAR 11.2 B 2012 SAR 9.9 B
EBIT 2013
SAR 2.7 B 2012 SAR 2.4 B
+13.5%
SAR 1.8 B 2012 SAR 1.7 B
+14.5%
+7.4%
Operational Achievements Operating Cash Flow
Employees
2013
2013
34 K
2012 29 K
SAR 2.6 B 2012 SAR 2.7 B
+19.8%
Acquisition Road Map • •
-5.5% •
25% interest of Teeba 33% interest in UFHC and 100% acquisition of CFG by UFHC. 50% share of IPNC
Balance Sheet / Market Changes Capital Expenditure 2013
SAR 2.8 B 2012 SAR 3.0 B
Almarai Company
-9.4%
Sukuk Issuance •
•
Sukuk issuance of 1.3B in Apr 2013 Perpetual Sukuk of 1.7B in Sep 2013
2013 Q4 Earnings Presentation
Market Capitalization 2013
SAR 32 B 2012 SAR 25 B
+28.0%
4
Sales Highlights
Sales Analysis by Product By Product 2012 13% Ba kery 1.3
16%
13%
1%
13%
1% O ther Sales
Ba kery 1.4
0.0
10%
41%
Fr esh Dairy 4.1
1%
Ar a ble and H or ticulture 0.1
15%
13%
7%
Poultry 0.8
Cheese & Butter 1.6
SAR 9.9 B
L ong-Life Dairy 1.0
Almarai Company
5%
Poultry 0.5
Ar a ble and Hor ticulture 0.1
Cheese & Butter 1.6
Fr uit Juice 1.2
By Product 2013
0%
O ther Sales 0.0
SAR 11.2 B
41%
Fr uit Juice 1.5
10%
Fr esh Dairy 4.6
L ong-Life Dairy 1.1
2013 Q4 Earnings Presentation
6
Growth Driven by Poultry, Juice and Fresh Dairy Revenue in SAR Million 12,000
10,000
11,219
Growth 2012 v 2013 Fresh Dairy ( YoY 14%)
9,883
Long-Life Dairy ( YoY 5%)
Fruit Juice
8,000
( YoY 17%)
Cheese & Butter ( YoY 3%)
6,000
Bakery ( YoY 12%)
Poultry
4,000
( YoY 57%)
Arable & Horti ( YoY 23%)
2,000
Other Sales ( YoY -43%)
Total
2012
Almarai Company
2013
( YoY 14%)
2013 Q4 Earnings Presentation
% of Total Growth
574
43%
54
4%
213
16%
47
4%
154
12%
288
22%
26
2%
(21)
-2%
1,336
100%
7
Sales Analysis by Country By Geography 2012
5% 4% 3% 2% Q a tar Ba hrain 5% K uwait 0.5 0.4
10% UAE 1.0
O ma n 0.5
0.2
2%
E gypt Jor dan 0.3 0.2
By Geography 2013
1% E xport / Others 0.1
5%
9% UAE 1.0
SAR 9.9 B
0.5 Ba hrain 0.2
K uwait 0.6
O ma n 0.6
Qa tar 0.5
2%
3%E xport / Others
Jor dan 0.3
0.3
SAR 11.2 B
65%
67% K SA 6.7
Almarai Company
5%
4% 4%E gypt 2%
K SA 7.3
2013 Q4 Earnings Presentation
8
Sales Analysis by Country
Growth 2012 v 2013
Revenue in SAR Million 12,000
10,000
11,219
KSA ( YoY 9%)
UAE
9,883
( YoY 5%)
Oman ( YoY 13%)
8,000
Kuwait ( YoY 15%)
Qatar
6,000
( YoY 18%)
Egypt ( YoY 53%)
4,000
Bahrain ( Yoy 16%)
Jordan
2,000
( YoY 67%)
Others ( YoY 79%)
-
2012
2013
Total ( YoY 14%)
Almarai Company
2013 Q4 Earnings Presentation
626
% of Total Growth
47%
52
4%
68
5%
71
5%
75
6%
173
13%
32
2%
126
9%
112
8%
1,336
100%
9
Sales growth achieved via our expanding footprints across the globe…
Farming
Distribution Center Manufacturing Plant Milking Parlours Poultry Farming Arable & Horticulture Farms
Almarai Company
2013 Q3 Earnings Presentation
10
Financial Performance
Segment Reporting – Dairy & Juice Growth
Challenges
Opportunities
• In Dec 2013, achieved the 1-billion litres mark on saleable milk. • First shipment of Fondomonte feed was shipped for Almarai in Q4, 2013 • Market share in nearly all markets either stable or growing • Purchase price of key feed / dairy commodities continue to climb • Dairy segment gain in IDJ entities are yet to contribute significantly • Expansion of SKUs in Juice range • Lower growth in foods category • Gain economies of scale via Lean methodology • Expand source of feed supply via internal resources • Expansion of capacity in both juice and dairy filling lines
SAR Mi l l i on Ful l Year 2013 Sales
8,868.2
Third Party Sales
8,835.8
Depreciation Income / (loss) before Non Controlling Interest Total Assets Return on Sales
1,705.4 13,398.9
19.3%
- Third Party Sales
10.8%
- Income / (loss) before Non Controlling Interest
18.7%
Q4 2013 Sales
2,390.7
Third Party Sales
2,371.3 (240.9)
Income / (loss) before Non Controlling Interest
441.2
Return on Sales
18.6%
Growth versus Q4 2012
2013 Q4 Earnings Presentation
(930.1)
Growth versus Q4 YTD 2012
Depreciation
Almarai Company
Dai ry & Jui ce
0.0%
- Third Party Sales
12.8%
- Income / (loss) before Non Controlling Interest
13.8%
12
Segment Reporting – Bakery SAR Mi l l i on
Growth
Challenges
Opportunities
• Continue to expand on bread & bun growth • NPD are driving volume & revenue growth • Capacity and GCC expansion are the main driver of growth
• Continuous supply of quality raw materials • Managing rollout of full range of bakery in gulf countries • Plant expansion to meet increased demand
• Higher van utilization across GCC • Further expansion of bread & bun line • NPDs to help gain volume share
Bakery
Ful l Year 2013 Sales
1,445.1
Third Party Sales
1,445.1
Depreciation Income / (loss) before Non Controlling Interest Total Assets
Return on Sales
(136.7) 139.4 2,035.1
9.6%
Growth versus Q4 YTD 2012 - Third Party Sales
12.0%
- Income / (loss) before Non Controlling Interest
30.2%
Q4 2013 Sales
410.0
Third Party Sales
410.0
Depreciation
(36.1)
Income / (loss) before Non Controlling Interest
Return on Sales
62.1
15.2%
Growth versus Q4 2012
Almarai Company
2013 Q4 Earnings Presentation
- Third Party Sales
11.0%
- Income / (loss) before Non Controlling Interest
55.8%
13
Segment Reporting – Poultry Growth
Challenges
Opportunities
• Bird sales increased to 65M birds from 35M birds last year • Doubled the retail shops serve yoy to more than 10K • Line 1 and Line 2 were commissioned during Q1 and Q2 • Secure bird supply (in terms of number of birds and optimal weight) • Phased launch in selected GCC markets. • Retain skilled and experienced workforce.
• Expand on NPD launched in 2013 (pictured below) and focus on value added products • Expand geographical expansion for the full suite of poultry range • Commercial production of Line 3 in Q1, 2014
SAR Mi l l i on
Poul try
Ful l Year 2013 Sales
792.3
Third Party Sales
792.3
Depreciation
(174.6)
Income / (loss) before Non Controlling Interest
(338.6)
Total Assets
4,993.9
Return on Sales
(42.7%)
Growth versus Q4 YTD 2012 - Third Party Sales - Income / (loss) before Non Controlling Interest
57.1% 249.8%
Q4 2013 Sales
214.6
Third Party Sales
214.6
Depreciation
(64.5)
Income / (loss) before Non Controlling Interest
Return on Sales
(126.4)
(58.9%)
Growth versus Q4 2012 - Third Party Sales - Income / (loss) before Non Controlling Interest
Almarai Company
2013 Q4 Earnings Presentation
32.1% 285.5%
14
Statement of Income – Full Year 2013 SAR million
2013
Q4 2012
Change
3,008.2 (2,023.6)
2,645.5 (1,775.7)
13.7% 14.0%
Gross Profit Selling and Distribution Expenses General and Administration Expenses
984.6 (492.1) (34.3)
869.9 (450.3) 17.8
EBIT Share of Results of Associates Funding and Currency Costs
458.2 (4.8) (64.5)
Income from Main Operations Zakat and Income Tax
Sales Cost of sales
Income before Non Controlling Interest Non Controlling Interest Net Income Earnings Per Share
Net Income %
Almarai Company
2013
Full Year 2012
Change
11,219.2 9,883.0 (7,267.3) (6,371.9)
13.5% 14.1%
13.2% 9.3% (293.2%)
3,951.8 (1,870.5) (284.8)
3,511.1 (1,616.7) (221.4)
12.6% 15.7% 28.6%
437.3 (3.0) (46.6)
4.8% 61.1% 38.4%
1,796.6 (30.0) (224.3)
1,672.9 (24.6) (157.5)
7.4% 21.9% 42.4%
388.9 (13.5)
387.8 (15.4)
0.3% (12.2%)
1,542.4 (42.0)
1,490.9 (50.9)
3.5% (17.6%)
375.4
372.4
0.8%
1,500.4
1,439.9
4.2%
1.8
0.7
155.6%
1,502.2
1,440.6
4.3%
(2.2)
(3.4)
n.a
373.3
369.0
1.2%
0.63
0.62
2.50
2.41
12.4%
13.9%
13.4%
14.6%
2013 Q4 Earnings Presentation
15
Balance Sheet & Cash Flows
Cash Flow Bridge 1,300
1,700 Sukuk
2,586
417 Operating Cash Flow Ca sh at 31 De c 2012
Almarai Company
(301)
(3,070)
Loans Issues / Payments / Charges
(499)
Equity Issued Perpetual Sukuk
Capex / Biological Assets
+ SAR 1,393 m
2013 Q4 Earnings Presentation
Dividend
(323)
1,811
Others
Ca sh at 31 De c 2013
17
Capex spend in line with 5YP guidance…
Capex spend for the year 2013 was 2.8B SAR, which is in line with our 5 year capital expenditure guidance. We remain committed to the 15.7B spend over the current 5 year period.
Poultry capex spend for the year reached 1.0B SAR. The key highlight for the year was the commercial start of the first line in Q1 and second line in Q2 as well as availability of 3rd line for commercial testing in Q4.
Sales depot and logistics expansion accounted for ~0.8B SAR for the year, resulting in our growing foot print across the GCC.
Manufacturing and Farming consumed capex of ~0.3B SAR each for various capacity expansion projects
Replacement and other capex including IDJ, accounted for another ~0.4B SAR.
Almarai Company
2013 Q4 Earnings Presentation
18
Balance Sheet SAR Mi l l i on
31 Dec 2013
Net Operating Working Capital Biological Assets Property, Plant and Equipment Net Operating Assets Intangible Assets - Goodwill Investment & Financial Assets, Deferred Charges and Derivatives Net Debt Employee Benefits Deferred Tax (Net) Total Equity Net Capital Employed
Net Debt to Equity Ratio
Almarai Company
2013 Q4 Earnings Presentation
31 Dec 2012
1,535 992 15,028 17,555 1,310
932 901 13,416 15,249 1,335
519
227
19,384
16,812
8,161 340 118 10,764 19,384
8,237 287 116 8,171 16,812
75.8%
100.8%
19
Net Debt 9,0 00
3 .1x
8,0 00
in million SAR
2.3 x
6,0 00 1.7x
2.3 x
250 %
2.2x
1.9x
20 0 %
4,0 00
150 %
3 ,0 00 2,0 00 1,0 00 0
70 %
98%
94%
80 %
72%
10 1% 76%
74%
10 0 % 50 %
1,3 20
2,454
3 ,3 98
3 ,869
4,60 6
6,653
8,23 7
8,161
20 0 6
20 0 7
20 0 8
20 0 9
20 10
20 11
20 12
20 13
N e t Debt
Almarai Company
3 50 %
3 0 0%
2.8x
7,0 00
5,0 0 0
3 .0 x
N e t Debt / Equity Ratio
2013 Q4 Earnings Presentation
0%
N e t Debt / EBITDA
20
Debt Profile highlights balanced approach for funding…. 3 .5
Debt Maturity by Age and Type
3 .0
2.3 , 23%
S AR Billion
2.5
6.1, 62%
Isl amic Bonds Govt / Semi Govt Inst.
2.0
1.5, 15%
Banks 1.5 1.0 0 .5 0.0 5yr
21
Trend charts
Quarterly Performance – Net Income 2013 versus 2012 Q3 = 5.7%
450
Q4 = 1.2%
Q2 = 4.9%
*Q4=16.0%
400
350
373.3
369.0
285.5
283.5
248.8
219.2
193.1
130.2
475.6
429.7
424.5
363.4
186.1
122.6
293.7
398.2
379.5
349.3
343.1
287.1
235.2
165.3
242.1
235.2
255.1 121.8
122.8
50
90.6
100
197.4
150
234.1
200
162.2
SAR Million
250
450.0
Q1 = 5.4%
300
0
* Q4 income growth is 16.0% after excluding the effect of capital gain of SAR 47.2m in Q4 2012
Almarai Company
2013 Q4 Earnings Presentation
23
Robust revenue growth with challenging – but anticipated – EBITDA & EBIT trend Revenue, EBITDA and EBIT Evolution
25.0%
SAR in Million
19.4%
26.0%
20.7%
26.7%
27.2% 25.6%
25.3%
21.0%
24.2% 21.8%
21.1%
24.4%
11,219 19.1%
9,883 16.9%
CAGR 2006 – 2013: 22.2% (w/o impact of acquisitions 16.1%)
16.0%
7,951
Revenues
6,931
EBIT % EBITDA %
5,869 5,030
3,770 2,757 2006
Almarai Company
2007
2008
2009
2010
2013 Q4 Earnings Presentation
2011
2012
2013
24
Key Share Data Key S tati sti cs for Al marai (1 Jan 20 14)
3 0 0%
250 %
C u rren t P /E R ati o (ttm) Esti mated P /E(12/20 13 ) Earn i n gs P er S h are (S AR ) (ttm) M ark et C ap (M S AR ) S h ares O u tstan di n g (M ) 3 0 D ay Average V ol u me D i vi den d In di cated Gross Yi el d C ash D i vi den d (S AR ) 5 Year D i vi den d Growth
30%
20 .9 21.0 2.5 3 1,498 60 0 .0 475,749 1.9% 1.0 11.7%
Year t o date total shareholder's return si n ce listing
25%
19%
2 0% 15 % 10%
20 0 %
150 %
10 0 %
50 %
0%
Almarai Almarai Company
TASI
2013 Q4 Earnings Presentation
25
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]
