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Almarai Company 2014 Q3 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
2014 Q3 Earnings Presentation
2
Business Highlights
Key Highlights – Q3 2014 SAR Million
2014
3nd Quarter 2013 Growth
2014
Q3 YTD 2013
Growth
3,269
2,926
11.7%
9,275
8,211
13.0%
EBIT
625
554
12.9%
1,443
1,338
7.8%
Net Income
539
476
13.4%
1,246
1,129
10.4%
Operating Cashflow
930
773
20.2%
2,241
1,792
25.1%
Capital Expenditure
650
690
-5.8%
2,334
2,256
3.4%
37 K
32 K
15.8%
Net Debt
8,782
7,879
11.5%
Net Debt to Equity
76.8%
75.8%
1.3%
EBITDA (rolling 12 months)
2,892
2,660
8.7%
2.9
3.1
-6.2%
Sales Revenue
Number of Employees
Net Debt to EBITDA
Almarai Company
2014 Q3 Earnings Presentation
4
Sales Highlights
Sales Analysis by Product – 9 months By Product 2013 Fresh Dairy
3.4
Cheese & Butter
By Product 2014
42% 1.2
Fruit Juice
Fresh Dairy 15% 1.1
Bakery
Cheese & Butter 13%
1.0
Long-Life Dairy
13%
Poultry
0.6
Other Sales
0.1
0.0
8.2 SAR Billion
Almarai Company
2.0
4.0
6.0
42%
1.3
Fruit Juice
8.0
14%
1.2
13%
Bakery
1.1
Long-Life Dairy
0.8 9%
All Products
3.9
7%
12%
0.9 10%
Poultry
0.8 8%
1%
Other Sales
0.1 1%
100%
All Products
10.0
2014 Q3 Earnings Presentation
0.0
9.3 SAR Billion 2.0
4.0
6.0
100% 8.0
10.0
6
Growth Driven by Poultry, Long-Life and Juice – 9 months Revenue in SAR Million 10,000
9,000
9,275 8,211
Growth 2014 v 2013 Fresh Dairy ( YoY +13%)
Cheese & Butter
8,000
( YoY +7%)
7,000
Fruit Juice ( YoY +15%)
6,000
Bakery
5,000
( YoY +10%)
Long Life
4,000
( YoY +15%)
Poultry
3,000
( YoY +27%)
2,000
Other Sales ( YoY -15%)
1,000
Total
-
( YoY +13%)
2013
Almarai Company
% of Total Growth
456
43%
87
8%
164
15%
103
10%
118
11%
157
15%
(22)
-2%
1,064
100%
2014
2014 Q3 Earnings Presentation
7
Sales Analysis by Country – 9 months By Geography 2013 KSA
0.7
Oman
KSA
66%
5.4
UAE
5%
0.4
Kuwait
0.4
Qatar
0.2
Export / Others
8.2 SAR Billion
All Countries -
Almarai Company
2.0
4.0
6.0
5%
0.2
0.2
2014 Q3 Earnings Presentation
-
2.0
4.0
6.0
2% 2% 100%
9.3 SAR Billion
All Countries
10.0
2%
0.2
Export / Others
100% 8.0
5%
0.4
Bahrain
2%
5%
0.4
Jordan
2%
5% 0.5
Qatar
2%
0.2
Bahrain
0.5
Kuwait
4%
0.2
9%
Egypt
5%
0.3
Jordan
0.9
Oman
5%
65%
6.0
UAE
9% 0.4
Egypt
By Geography 2014
8.0
10.0
8
Sales Analysis by Country – 9 months Revenue in SAR Million KSA
10,000
9,275
( YoY +11%)
UAE
9,000
8,211
( YoY +16%)
8,000
Oman ( YoY +19%)
7,000
Egypt ( YoY +23%)
6,000
Kuwait ( YoY +9%)
5,000
Qatar 4,000
( YoY +26%)
Jordan
3,000
( YoY +8%)
Bahrain
2,000
( Yoy +15%)
Others
1,000
( YoY 0%)
Total
-
2013
Almarai Company
2014
( YoY +13%)
2014 Q3 Earnings Presentation
Growth 2014 v 2013
% of Total Growth
614
58%
117
11%
81
8%
85
8%
37
3%
88
8%
17
2%
25
2%
(0)
0%
1,064
100%
9
Financial Performance
Strong pipeline of innovation continues in 2014
Almarai Company
2014 Q3 Earnings Presentation
11
Segment Reporting SAR Million Q 3 YTD 20 14 Sales Third Party Sales Depreciation Income / (loss) before NCI Total Assets
Dairy & Juice 7,307 7,276 (662) 1,547 *
Bakery
Poultry
1,139 1,139 (125) 110 *
735 735 (213) (325)
Other Activities 403 125 (61) (74)
Almarai Consolidated 9,584 9,275 (1,060) 1,259
14,557
1,971
5,221
2,471
24,220
21.3%
9.7%
(44.3%)
(59.0%)
13.6%
12.6%
10.0%
27.2%
(6.6%)
13.0%
Q 3 20 14 Sales
2,614
366
274
220
3,474
Third Party Sales
2,603
366
274
27
3,269
(74) (89)
(15) (58)
(335) 546
Return on Sales Growth versus Q3 2013 - Third Party Sales
Depreciation Income / (loss) before NCI Return on Sales
(189) 649 *
(58) 44 *
24.9%
11.9%
(32.5%)
(217.2%)
16.7%
10.6%
12.7%
28.5%
(22.5%)
11.7%
Growth versus Q3 2013 - Third Party Sales
* Income/(loss) before NCI is calculated on proforma basis based on revised cost allocation done in Q3, 2013
Almarai Company
2014 Q3 Earnings Presentation
12
Alyoum (Poultry) Performance – Q3 Update
GCC Poultry Market growth is +11% Fresh chicken market grows 3 times faster than frozen (Fresh chicken market grows 23% Vs Frozen chicken market grows 7%) 3 times faster growth in Fresh chicken market resulting in additional 3% contribution gain
MAT Jul'13 MAT Jul'14
ALYOUM is leading in driving this change in past 3 years. ALYOUM is growing 27% Vs 11% for total Poultry market (Fresh and Frozen Chicken market) Within KSA, Fresh chicken value share for ALYOUM is 42.2% and volume share of 36.8% - market leader.
Total Poultry - GCC Value Contribution
73%
ALYOUM is a market leader in KSA, Qatar and Bahrain.
27%
76% 24%
FROZEN CHILLED
GCC = KSA, UAE, KUW, QAT, BAH Almarai Company
2014 Q3 Earnings Presentation
13
Statement of Income – Q3 2014 SAR million
2014
3rd Quarter 2013 Change
YTD 3rd Quarter 2014 2013 Change
3,269.4 (2,018.2)
2,926.1 (1,821.1)
11.7% 10.8%
9,274.8 (5,973.9)
8,211.0 (5,243.8)
13.0% 13.9%
1,251.2 (553.1) (72.8)
1,105.0 (470.9) (80.5)
13.2% 17.5% (9.6%)
3,301.0 (1,592.4) (265.4)
2,967.2 (1,378.4) (250.4)
11.2% 15.5% 6.0%
Exchange and Currency Gains/(Losses)
625.3 (5.7) (67.7) 16.8
553.6 (3.4) (67.2) 4.3
12.9% 66.2% 0.7% 287.7%
1,443.2 12.7 (191.8) 40.5
1,338.4 (25.2) (179.2) 19.4
7.8% (150.5%) 7.0% 108.4%
Income from Main Operations Zakat and Foreign IncomeTax
568.7 (22.7)
487.3 (8.8)
16.7% 157.2%
1,304.5 (45.9)
1,153.4 (28.5)
13.1% 61.2%
546.0
478.5
14.1%
1,258.6
1,124.9
11.9%
Sales Cost of sales Gross Profit Selling and Distribution Expenses General and Administration Expenses EBIT Share of Results of Associates
Funding Costs
Income before Non Controlling Interest Non Controlling Interest Net Income Earnings Per Share
Net Income %
Almarai Company
(6.6)
(2.9)
129.8%
(12.3)
4.0
n.a
539.4
475.6
13.4%
1,246.3
1,128.9
10.4%
0.88
0.80
10.0%
2.03
1.89
7.4%
16.5%
16.3%
13.4%
13.7%
2014 Q3 Earnings Presentation
14
Balance Sheet & Cash Flows
Cash Flow Bridge – Rolling 12 months
3,035
(526) (3,147) Loans Issues / Payments / Charges
2,274 Operating Cash Flow
Ca sh at 30 Sept 2013
Almarai Company
(598) Capex / Biological Assets
(SAR 1,159 m)
2014 Q3 Earnings Presentation
77 Dividend
1,115
Others
Ca sh at 30 Sept 2014
16
Capex spend in line with 5YP guidance…
Capex spend for the three quarters of 2014 was 2.1B 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.
• • • •
Manufacturing and Farming spent Capex of ~0.8B SAR for various capacity expansion projects. Sales depot and logistics expansion accounted for ~0.5B SAR. Replacement and other capex including IDJ and US land acquisition, accounted for another ~0.4B SAR. Poultry capex spend for the year reached ~ 0.4B SAR.
Almarai Company
2014 Q3 Earnings Presentation
17
Almarai continues to invest in strategic arable assets across the globe… Poland: Owned land= 2.1K ha Fondomonte Arizona: Owned land= 3.9K ha Ukraine: Rented land= 30.8K ha
Fondomonte – Arizona: 8 Planned Shipments till end of year. Fondomonte Argentina: Owned land= 12.3K ha Rented land= 19.7K ha
Fondomonte – Argentina: • 3 Shipments from Jan to Sept 2014 • 1 Planned Shipment till end of year.
Legend: Milking Parlours Poultry Farming Arable & Horticulture Farms Manufacturing Plant Distribution Center
Almarai Company
2014 Q3 Earnings Presentation
18
Balance Sheet Assets 1,845
20,000 1,456 966
1,0 56
Assets Net Operating Working Capital
69%
2013
SAR Million
15,000
Biological Assets 10,000
14,614
Property, Plant and Equipment
5,000
-
1,668
1,608
30 Sept 2013
30 Sept 2014
Other Assets
17%
72% 69%
2010
17%
20%
64%
2009 2008 0
5,000
SAR Million
Net Debt
5,000
43 1
10 ,3 94
25,000
Employee Benefits & Deferred Tax (Net)
2011
49%
Total Equity
44% 0
18%
39%
Equity
36%
49%
2009
38% 40% 5,000
16% 19%
39%
43%
2010
18%
38%
42%
11,440
30 Sept 2014
20,000
35%
46%
2008
30 Sept 2013
15,000
47%
2013
-
Other Long Term Assets 10,000
2014
2012
10,000
Current Assets
16%
Equity & Liabilites
7,8 79
50 5
Fixed Assets
14%
SAR Million
20,000
15,000
9%
11%
22% 13%
65%
Equity & Liabilities 8 ,78 2
18%
7% 8%
23%
73%
2012 2011
16,218
22%
71%
2014
15%
Non Current Liabilities
13%
Current Liabilities
16% 10,000
15,000
20,000
25,000
SAR Million
Almarai Company
2014 Q3 Earnings Presentation
19
Net Debt
10,000 9,000
SAR million
3 .0 x
2.9x 300%
2.8x
8,000 7,000
350%
3 .1x
2.3 x
2.3 x
250%
2.2x
6,000
200%
5,000 150%
4,000 3,000
98%
94% 72%
10 1% 76%
74%
77%
2,000 1,000 0
50% 3 ,3 98
3 ,869
4,60 6
6,653
8,23 7
8,161
8,782
2008
2009
2010
2011
2012
2013
Last 12 Months
Net Debt
Almarai Company
100%
Net Debt / Equity Ratio
2014 Q3 Earnings Presentation
0%
Net Debt / EBITDA
20
Deferred maturity profile of debt, along with diversification of funding source……… 2.5
Debt Maturity by Age and Type Islamic Bonds
2.0
2 23%
SAR Billion
Govt / Semi Govt Inst. Banks
1.5
1 14%
1.0
6 63%
0.5
0.0 5yr
21
Trend charts
Quarterly Performance – Net Income 2014 versus 2013 600
Q3 = 13.4% 500
Q2 = 8.8%
400
3 73 .3
3 69.0
285.5
283 .5
248 .8
219.2
475.6
450 .0
429.7
424.5
3 63 .4
293 .7
43 3 .3
3 98.2
3 79.5
3 49.3
3 43 .1
287.1
23 5.2
273 .6
255.1
242.1
23 5.2
23 4.1
100
197.4
200
53 9.4
*
300
162.2
SAR Million
Q1 = 7.2%
0
* Q4 income growth is 16.0% after excluding the effect of capital gain of SAR 47.2m in Q4 2012
Almarai Company
2014 Q3 Earnings Presentation
23
Revenue growth continues but EBIT trend yet to stabalise…. Revenue, EBITDA and EBIT Evolution 26.7%
27.2% 25.6%
25.3%
SAR Million
21.0%
24.2% 21.8%
21.1% 19.1%
CAGR 2008 – 2014: 16.8% (w/o impact of acquisitions 11.6%) Revenues
24.4%
12,283
11,219
23.5%
16.0%
15.5%
9,883 16.9%
7,951
EBIT % to Revenues EBITDA % to Revenues
6,931
5,869 5,030
2008
Almarai Company
2009
2010
2011
2014 Q3 Earnings Presentation
2012
2013
Last 12 Months
24
Key Share Data Key S tati sti cs for Al marai (3 0 S ept. 20 14) 450%
400%
350%
300%
250%
S h are P ri ce (S AR ) C u rren t P /E R ati o (ttm) Esti mated P /E(12/20 14) 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 ) D i vi den d Ex -D ate 5 Year D i vi den d Growth
80 .25 3 1.4 27.7 2.6 48,150 .0 60 0 .0 647,63 6.0 1.3 % 1.0 4/3 /20 14 8.3 %
30%
Year t o date total shareholder's return since l i sting
25%
22%
20%
15% 10%
200%
150%
100%
50%
0%
Almarai
Almarai Company
TASI
2014 Q3 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
2014 Q3 Earnings Presentation
2
Business Highlights
Key Highlights – Q3 2014 SAR Million
2014
3nd Quarter 2013 Growth
2014
Q3 YTD 2013
Growth
3,269
2,926
11.7%
9,275
8,211
13.0%
EBIT
625
554
12.9%
1,443
1,338
7.8%
Net Income
539
476
13.4%
1,246
1,129
10.4%
Operating Cashflow
930
773
20.2%
2,241
1,792
25.1%
Capital Expenditure
650
690
-5.8%
2,334
2,256
3.4%
37 K
32 K
15.8%
Net Debt
8,782
7,879
11.5%
Net Debt to Equity
76.8%
75.8%
1.3%
EBITDA (rolling 12 months)
2,892
2,660
8.7%
2.9
3.1
-6.2%
Sales Revenue
Number of Employees
Net Debt to EBITDA
Almarai Company
2014 Q3 Earnings Presentation
4
Sales Highlights
Sales Analysis by Product – 9 months By Product 2013 Fresh Dairy
3.4
Cheese & Butter
By Product 2014
42% 1.2
Fruit Juice
Fresh Dairy 15% 1.1
Bakery
Cheese & Butter 13%
1.0
Long-Life Dairy
13%
Poultry
0.6
Other Sales
0.1
0.0
8.2 SAR Billion
Almarai Company
2.0
4.0
6.0
42%
1.3
Fruit Juice
8.0
14%
1.2
13%
Bakery
1.1
Long-Life Dairy
0.8 9%
All Products
3.9
7%
12%
0.9 10%
Poultry
0.8 8%
1%
Other Sales
0.1 1%
100%
All Products
10.0
2014 Q3 Earnings Presentation
0.0
9.3 SAR Billion 2.0
4.0
6.0
100% 8.0
10.0
6
Growth Driven by Poultry, Long-Life and Juice – 9 months Revenue in SAR Million 10,000
9,000
9,275 8,211
Growth 2014 v 2013 Fresh Dairy ( YoY +13%)
Cheese & Butter
8,000
( YoY +7%)
7,000
Fruit Juice ( YoY +15%)
6,000
Bakery
5,000
( YoY +10%)
Long Life
4,000
( YoY +15%)
Poultry
3,000
( YoY +27%)
2,000
Other Sales ( YoY -15%)
1,000
Total
-
( YoY +13%)
2013
Almarai Company
% of Total Growth
456
43%
87
8%
164
15%
103
10%
118
11%
157
15%
(22)
-2%
1,064
100%
2014
2014 Q3 Earnings Presentation
7
Sales Analysis by Country – 9 months By Geography 2013 KSA
0.7
Oman
KSA
66%
5.4
UAE
5%
0.4
Kuwait
0.4
Qatar
0.2
Export / Others
8.2 SAR Billion
All Countries -
Almarai Company
2.0
4.0
6.0
5%
0.2
0.2
2014 Q3 Earnings Presentation
-
2.0
4.0
6.0
2% 2% 100%
9.3 SAR Billion
All Countries
10.0
2%
0.2
Export / Others
100% 8.0
5%
0.4
Bahrain
2%
5%
0.4
Jordan
2%
5% 0.5
Qatar
2%
0.2
Bahrain
0.5
Kuwait
4%
0.2
9%
Egypt
5%
0.3
Jordan
0.9
Oman
5%
65%
6.0
UAE
9% 0.4
Egypt
By Geography 2014
8.0
10.0
8
Sales Analysis by Country – 9 months Revenue in SAR Million KSA
10,000
9,275
( YoY +11%)
UAE
9,000
8,211
( YoY +16%)
8,000
Oman ( YoY +19%)
7,000
Egypt ( YoY +23%)
6,000
Kuwait ( YoY +9%)
5,000
Qatar 4,000
( YoY +26%)
Jordan
3,000
( YoY +8%)
Bahrain
2,000
( Yoy +15%)
Others
1,000
( YoY 0%)
Total
-
2013
Almarai Company
2014
( YoY +13%)
2014 Q3 Earnings Presentation
Growth 2014 v 2013
% of Total Growth
614
58%
117
11%
81
8%
85
8%
37
3%
88
8%
17
2%
25
2%
(0)
0%
1,064
100%
9
Financial Performance
Strong pipeline of innovation continues in 2014
Almarai Company
2014 Q3 Earnings Presentation
11
Segment Reporting SAR Million Q 3 YTD 20 14 Sales Third Party Sales Depreciation Income / (loss) before NCI Total Assets
Dairy & Juice 7,307 7,276 (662) 1,547 *
Bakery
Poultry
1,139 1,139 (125) 110 *
735 735 (213) (325)
Other Activities 403 125 (61) (74)
Almarai Consolidated 9,584 9,275 (1,060) 1,259
14,557
1,971
5,221
2,471
24,220
21.3%
9.7%
(44.3%)
(59.0%)
13.6%
12.6%
10.0%
27.2%
(6.6%)
13.0%
Q 3 20 14 Sales
2,614
366
274
220
3,474
Third Party Sales
2,603
366
274
27
3,269
(74) (89)
(15) (58)
(335) 546
Return on Sales Growth versus Q3 2013 - Third Party Sales
Depreciation Income / (loss) before NCI Return on Sales
(189) 649 *
(58) 44 *
24.9%
11.9%
(32.5%)
(217.2%)
16.7%
10.6%
12.7%
28.5%
(22.5%)
11.7%
Growth versus Q3 2013 - Third Party Sales
* Income/(loss) before NCI is calculated on proforma basis based on revised cost allocation done in Q3, 2013
Almarai Company
2014 Q3 Earnings Presentation
12
Alyoum (Poultry) Performance – Q3 Update
GCC Poultry Market growth is +11% Fresh chicken market grows 3 times faster than frozen (Fresh chicken market grows 23% Vs Frozen chicken market grows 7%) 3 times faster growth in Fresh chicken market resulting in additional 3% contribution gain
MAT Jul'13 MAT Jul'14
ALYOUM is leading in driving this change in past 3 years. ALYOUM is growing 27% Vs 11% for total Poultry market (Fresh and Frozen Chicken market) Within KSA, Fresh chicken value share for ALYOUM is 42.2% and volume share of 36.8% - market leader.
Total Poultry - GCC Value Contribution
73%
ALYOUM is a market leader in KSA, Qatar and Bahrain.
27%
76% 24%
FROZEN CHILLED
GCC = KSA, UAE, KUW, QAT, BAH Almarai Company
2014 Q3 Earnings Presentation
13
Statement of Income – Q3 2014 SAR million
2014
3rd Quarter 2013 Change
YTD 3rd Quarter 2014 2013 Change
3,269.4 (2,018.2)
2,926.1 (1,821.1)
11.7% 10.8%
9,274.8 (5,973.9)
8,211.0 (5,243.8)
13.0% 13.9%
1,251.2 (553.1) (72.8)
1,105.0 (470.9) (80.5)
13.2% 17.5% (9.6%)
3,301.0 (1,592.4) (265.4)
2,967.2 (1,378.4) (250.4)
11.2% 15.5% 6.0%
Exchange and Currency Gains/(Losses)
625.3 (5.7) (67.7) 16.8
553.6 (3.4) (67.2) 4.3
12.9% 66.2% 0.7% 287.7%
1,443.2 12.7 (191.8) 40.5
1,338.4 (25.2) (179.2) 19.4
7.8% (150.5%) 7.0% 108.4%
Income from Main Operations Zakat and Foreign IncomeTax
568.7 (22.7)
487.3 (8.8)
16.7% 157.2%
1,304.5 (45.9)
1,153.4 (28.5)
13.1% 61.2%
546.0
478.5
14.1%
1,258.6
1,124.9
11.9%
Sales Cost of sales Gross Profit Selling and Distribution Expenses General and Administration Expenses EBIT Share of Results of Associates
Funding Costs
Income before Non Controlling Interest Non Controlling Interest Net Income Earnings Per Share
Net Income %
Almarai Company
(6.6)
(2.9)
129.8%
(12.3)
4.0
n.a
539.4
475.6
13.4%
1,246.3
1,128.9
10.4%
0.88
0.80
10.0%
2.03
1.89
7.4%
16.5%
16.3%
13.4%
13.7%
2014 Q3 Earnings Presentation
14
Balance Sheet & Cash Flows
Cash Flow Bridge – Rolling 12 months
3,035
(526) (3,147) Loans Issues / Payments / Charges
2,274 Operating Cash Flow
Ca sh at 30 Sept 2013
Almarai Company
(598) Capex / Biological Assets
(SAR 1,159 m)
2014 Q3 Earnings Presentation
77 Dividend
1,115
Others
Ca sh at 30 Sept 2014
16
Capex spend in line with 5YP guidance…
Capex spend for the three quarters of 2014 was 2.1B 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.
• • • •
Manufacturing and Farming spent Capex of ~0.8B SAR for various capacity expansion projects. Sales depot and logistics expansion accounted for ~0.5B SAR. Replacement and other capex including IDJ and US land acquisition, accounted for another ~0.4B SAR. Poultry capex spend for the year reached ~ 0.4B SAR.
Almarai Company
2014 Q3 Earnings Presentation
17
Almarai continues to invest in strategic arable assets across the globe… Poland: Owned land= 2.1K ha Fondomonte Arizona: Owned land= 3.9K ha Ukraine: Rented land= 30.8K ha
Fondomonte – Arizona: 8 Planned Shipments till end of year. Fondomonte Argentina: Owned land= 12.3K ha Rented land= 19.7K ha
Fondomonte – Argentina: • 3 Shipments from Jan to Sept 2014 • 1 Planned Shipment till end of year.
Legend: Milking Parlours Poultry Farming Arable & Horticulture Farms Manufacturing Plant Distribution Center
Almarai Company
2014 Q3 Earnings Presentation
18
Balance Sheet Assets 1,845
20,000 1,456 966
1,0 56
Assets Net Operating Working Capital
69%
2013
SAR Million
15,000
Biological Assets 10,000
14,614
Property, Plant and Equipment
5,000
-
1,668
1,608
30 Sept 2013
30 Sept 2014
Other Assets
17%
72% 69%
2010
17%
20%
64%
2009 2008 0
5,000
SAR Million
Net Debt
5,000
43 1
10 ,3 94
25,000
Employee Benefits & Deferred Tax (Net)
2011
49%
Total Equity
44% 0
18%
39%
Equity
36%
49%
2009
38% 40% 5,000
16% 19%
39%
43%
2010
18%
38%
42%
11,440
30 Sept 2014
20,000
35%
46%
2008
30 Sept 2013
15,000
47%
2013
-
Other Long Term Assets 10,000
2014
2012
10,000
Current Assets
16%
Equity & Liabilites
7,8 79
50 5
Fixed Assets
14%
SAR Million
20,000
15,000
9%
11%
22% 13%
65%
Equity & Liabilities 8 ,78 2
18%
7% 8%
23%
73%
2012 2011
16,218
22%
71%
2014
15%
Non Current Liabilities
13%
Current Liabilities
16% 10,000
15,000
20,000
25,000
SAR Million
Almarai Company
2014 Q3 Earnings Presentation
19
Net Debt
10,000 9,000
SAR million
3 .0 x
2.9x 300%
2.8x
8,000 7,000
350%
3 .1x
2.3 x
2.3 x
250%
2.2x
6,000
200%
5,000 150%
4,000 3,000
98%
94% 72%
10 1% 76%
74%
77%
2,000 1,000 0
50% 3 ,3 98
3 ,869
4,60 6
6,653
8,23 7
8,161
8,782
2008
2009
2010
2011
2012
2013
Last 12 Months
Net Debt
Almarai Company
100%
Net Debt / Equity Ratio
2014 Q3 Earnings Presentation
0%
Net Debt / EBITDA
20
Deferred maturity profile of debt, along with diversification of funding source……… 2.5
Debt Maturity by Age and Type Islamic Bonds
2.0
2 23%
SAR Billion
Govt / Semi Govt Inst. Banks
1.5
1 14%
1.0
6 63%
0.5
0.0 5yr
21
Trend charts
Quarterly Performance – Net Income 2014 versus 2013 600
Q3 = 13.4% 500
Q2 = 8.8%
400
3 73 .3
3 69.0
285.5
283 .5
248 .8
219.2
475.6
450 .0
429.7
424.5
3 63 .4
293 .7
43 3 .3
3 98.2
3 79.5
3 49.3
3 43 .1
287.1
23 5.2
273 .6
255.1
242.1
23 5.2
23 4.1
100
197.4
200
53 9.4
*
300
162.2
SAR Million
Q1 = 7.2%
0
* Q4 income growth is 16.0% after excluding the effect of capital gain of SAR 47.2m in Q4 2012
Almarai Company
2014 Q3 Earnings Presentation
23
Revenue growth continues but EBIT trend yet to stabalise…. Revenue, EBITDA and EBIT Evolution 26.7%
27.2% 25.6%
25.3%
SAR Million
21.0%
24.2% 21.8%
21.1% 19.1%
CAGR 2008 – 2014: 16.8% (w/o impact of acquisitions 11.6%) Revenues
24.4%
12,283
11,219
23.5%
16.0%
15.5%
9,883 16.9%
7,951
EBIT % to Revenues EBITDA % to Revenues
6,931
5,869 5,030
2008
Almarai Company
2009
2010
2011
2014 Q3 Earnings Presentation
2012
2013
Last 12 Months
24
Key Share Data Key S tati sti cs for Al marai (3 0 S ept. 20 14) 450%
400%
350%
300%
250%
S h are P ri ce (S AR ) C u rren t P /E R ati o (ttm) Esti mated P /E(12/20 14) 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 ) D i vi den d Ex -D ate 5 Year D i vi den d Growth
80 .25 3 1.4 27.7 2.6 48,150 .0 60 0 .0 647,63 6.0 1.3 % 1.0 4/3 /20 14 8.3 %
30%
Year t o date total shareholder's return since l i sting
25%
22%
20%
15% 10%
200%
150%
100%
50%
0%
Almarai
Almarai Company
TASI
2014 Q3 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]
