Almarai Company
Almarai Company Interim results – 2nd Quarter 2017
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
2017 Q2 Earnings Presentation
2
Solid Q2 YTD results underpinned by turnaround of Poultry 1.3
Group Operating Income up 7.0% to SAR 1.2 billion
1.2
Solid Results in Dairy and GCC market
Weakness in Egypt, Export and GCC Juice market continue
SAR in Billion
Group Turnover down 2.1% to SAR 7.1 billion
1.1
1.0
Net Free Cash flow increased to SAR 0.2 billion
Almarai Company
Group Operating Profit Up 7.0%
Q2 YTD 16
2017 Q2 Earnings Presentation
Q2 YTD 17
3
Revenue Variance 7,400
7,300 90
7,20
(171)
SAR in Million
7,000
(78)
12 (41)
(30)
GCC Economic
Export
7,144
61
(8)
6,800
6,600
6,400
6,20
6,000
Q2 YTD 2016
Devaluation in
Juice - GCC
Egypt Currency
Bakery - GCC Infant Nutrition Poultry - GCC Core Category
Q2 YTD 2017
Situation
(SAR 156 M) / (2.1%) Growth --->
Almarai Company
(2.3%)
(1.1%)
(1.4%)
(0.4%)
2017 Q2 Earnings Presentation
(0.1%)
0.2%
0.8%
1.2%
4
Delivered on Key Focus Areas
On track for positive revenue growth in poultry and key dairy segments of Laban and Zabadi
Almarai Company
Delivered positive EBIT results for poultry segment for the first time
Cost saving and rationalization program continue to deliver on expected benefits
2017 Q2 Earnings Presentation
CAPEX program reduction is in line with the revised 5 year plan vision
Key projects including alfalfa importation targets are running in line with expected delivery dates
5
Market Share Laban
Juices
UHT 47.2%
66.2%
18.1% 44.6%
63.8%
2016
2017
Fresh Milk
2016
2017
2016
17.7%
2017
69% 68%
67.7%
36.3%
65.1%
2016
65.7%
2017
Jar Cheese
Chicken
Bread 69.2%
Puffs
36.7%
45.2%
40.1% 2016
Almarai Company
2017
2016
2017
2016
2017 Q2 Earnings Presentation
2017
2016
2017
6
Statement of Profit and Loss SAR million
2nd Quarter 2017
2016
Net Sales
3,926
Cost of sales
(2,405)
Gross Profit
1,521
10 0 .0 % (61.3%) 38 .7%
3,760
Change 10 0 .0 %
(4.2%)
2016 7,300
(2,205)
(58.6%)
(8.3%)
(4,651)
1,555
4 1.4 %
2.2%
2,648
2nd Quarter YTD 2017 10 0 .0 % (63.7%) 36 .3%
7,144 (4,412) 2,732
Change 10 0 .0 %
(2.1%)
(61.8%)
(5.2%)
38 .2%
3.2%
Selling and Distribution Expenses
(627)
(16.0%)
(611)
(16.3%)
(2.4%)
(1,247)
(17.1%)
(1,218)
(17.0%)
(2.4%)
General and Administration Expenses
(123)
(3.1%)
(114)
(3.0%)
(7.9%)
(247)
(3.4%)
(223)
(3.1%)
(9.8%)
(12)
(0.3%)
(42)
(1.1%)
(24)
(0.3%)
(82)
(1.2%)
Other Expense, net Operating Income Exchange Gain / (Loss) Finance Costs - net Share of Results of Associates and Joint Ventures Profit Before Zakat and Income Tax Zakat and Foreign IncomeTax Profit for the Period
759
19 .3%
788
21.0 %
14
0.4%
(1)
(0.0%)
(95)
(2.4%)
(98)
(2.6%)
5
0.1%
(3)
(0.1%)
683
17.4 %
(26)
(0.7%)
686 (21)
18 .2% (0.6%)
241.5% 3.9% n.a 4.0% n.a 0.4% (19.1%)
1,131
15.5%
1,209
16 .9 %
13
0.2%
11
0.2%
(9.6%) 18.5%
(168) 6 981 (40)
(2.3%)
(199)
(2.8%)
0.1%
(2)
(0.0%)
13.4 % (0.5%)
657
16 .7%
664
17.7%
1.1%
942
12.9 %
2
0.0%
10
0.3%
537.7%
5
0.1%
Profit Attributable to Shareholders
658
16 .8 %
674
17.9 %
2.4%
947
13.0 %
Earnings Per Share (Basic)
0.81
1.1%
1.15
Profit Attributable to Non Controlling Interest
Almarai Company
0.82
2017 Q2 Earnings Presentation
249.1%
1,020 (33) 987 16 1,002
1.20
14 .3% (0.5%)
7.0%
n.a 3.9% (16.2%)
13.8 %
4.7%
0.2%
209.1%
14 .0 %
5.8% 4.2%
7
2nd Quarter YTD 2017 Results
Operating Performance Operating Income
Gross Profit % to Sales
2,648
Almarai Company
38.2%
36.3% SAR Million
1.9 pp
15.5%
2,732
16.9%
Profit Attributable to Shareholders 1.4 pp
13.0%
SAR Million
1,131
+79
+3.2%
+7.0%
947
1,002
+55 +5.8%
2nd Qtr YTD
2nd Qtr YTD
2nd Qtr YTD
2nd Qtr YTD
2nd Qtr YTD
2nd Qtr YTD
2016
2017
2016
2017
2016
2017
2017 Q2 Earnings Presentation
1.0 pp
SAR Million
1,209
+84
14.0%
8
Strong Domestic Performance
Turnover SAR Billion
Net Income SAR Billion
Net Income Margin
Dairy & Juice
Bakery
Poultry
Others
Total
5.4 (3.9%)
0.9 (0.8%)
0.7 8.3%
0.1 15.4%
7.1 (2.1%)
0.9 (10.3%)
0.2 0.8%
(0.0) 80.1%
(0.0) 25.1%
1.0 5.8%
17.3%
16.9%
(4.8%)
(63.5%)
14.0%
SAR Billion
Almarai Company
2017 Q2 Earnings Presentation
9
Dairy & Juice o Laban and Zabadi have continued to grow however fresh milk growth has stabilized. o Egypt devaluation impact accounts for 3.0% within D&J segment. o Economic situation in the GCC had an adverse effect on the bottom line for June o Higher cost of alfalfa is significantly impacting profitability growth.
Almarai Company
2017 Q2 Earnings Presentation
1,100.0 1,000.0 900.0 800.0 700.0 600.0 500.0 SAR in Million
1,045.3
Q2 YTD 16
937.6
Q2 YTD 17
Net Income
10
Bakery 153.0
o Revenue down 0.8%, it has however declined by 5.2% in Q2 o Bread, Puff and Croissant growth has stalled o Product revamp for key categories is underway o Margin improvement supported by • Manufacturing efficiencies (mainly Hail plant) • Cost saving • Innovation o Key challenge for next half • Improve profitability and market share
Almarai Company
2017 Q2 Earnings Presentation
152.0
151.0
152.4 151.3
150.0 SAR in Million
Q2 YTD 16
Q2 YTD 17
Net Income
11
Poultry 0.0
Poultry EBIT break even for the first time during the quarter
(35.9)
(100.0) (180.5)
o Revenue up 8.3% driven by strong volume growth o Poultry mortality continues to be within the target range for world best practice. o Q3 is expected to be EBIT negative due to seasonality trends however current operations remain on target to achieve + EBIT for the year before any adverse impact from GCC economic situation.
Almarai Company
2017 Q2 Earnings Presentation
(200.0) SAR in Million
Q2 YTD 16
Q2 YTD 17
Net Income
12
Others 0.0
o IPNC losses are in line with existing business plan. • Losses have reduced by 32% plus from last year o Expansion of Alfalfa operations in both South and North America remains on track. • Operations are still loss making but losses have reduced significantly from last year as the investment cycle reduces
Almarai Company
2017 Q2 Earnings Presentation
(50.0)
(51.8) (69.1)
(100.0) SAR in Million
Q2 YTD 16
Q2 YTD 17
Net Income
13
Sales Analysis by Segment by Product – Q2 YTD 7,144
Total Net Sales
(-156)
(2.1%)
Net Sales
Dairy & Juice
Bakery
Poultry
Others
5,415 (76%)
904 (13%)
744 (10%)
82 (1%)
(-217)
(-7)
(+57)
(+11)
(3.9%)
(0.8%)
+8.3%
+15.4%
By Segment
Net Sales By Product
Fresh Dairy
Long-Life Dairy
Fruit Juice
Cheese&Butter
Bakery
Poultry
Other Sales
2,989 (42%)
722 (10%)
758 (11%)
946 (13%)
904 (13%)
744 (10%)
82 (1%)
(-39)
(-29)
(-167)
(+17)
(-7)
(+57)
(+11)
(1.3%)
(3.8%)
(18.1%)
+1.9%
(0.8%)
+8.3%
15.4%
Note: All Amounts in Million Saudi Riyals
Almarai Company
2017 Q2 Earnings Presentation
14
Sales Analysis by Region by Country – Q2 YTD 7,144
Total Net Sales
(-156)
(2.1%) Net Sales By Region
KSA
Other GCC Countries
Other Countries
4,705 (66%)
1,920 (27%)
519 (7%)
(+49)
(+9)
(-214)
+1.1%
+0.5%
(29.3%)
Net Sales
KSA
UAE
Oman
Qatar
Kuwait
Bahrain
Egypt
Jordan
Others
4,705 (66%)
709 (10%)
372 (5%)
325 (5%)
359 (5%)
155 (2%)
291 (4%)
137 (2%)
91 (1%)
By Country
(+49)
(+9)
(+7)
(-35)
(+21)
(+8)
(-186)
(+2)
(-31)
Growth in Saudi Riyals
+1.1%
+1.3%
+1.9%
(9.8%)
+6.2%
+5.2%
(38.9%)
+1.6%
(25.5%)
33.6%
Growth in Local Currency
Note: All Amounts in Million Saudi Riyals
Almarai Company
2017 Q2 Earnings Presentation
15
Almarai continues 5 Year Plan CAPEX Investment CAPEX spend for the 2nd Quarter Year to Date 2017 was SAR 1.6 Billion. • Manufacturing, Farming and Replacement spent CAPEX of SAR ~0.9 Billion for various capacity expansion projects. • Sales depot, Poultry and Logistics expansion accounted for SAR ~0.4 Billion. • Replacement and other CAPEX including IDJ accounted for another SAR ~0.3 Billion.
Cheese Plant - Transformers
Almarai Company
Cheese Plant Expansion
Transport & Workshop
2017 Q2 Earnings Presentation
40MW Power Plant
16
Cash Flow Bridge – Rolling 12 Months 4,975
66
(4,278)
Loans Issues / Payments / Charges
(718) CAPEX / Biological
364
53
463
Assets Dividend
Operating Cash Flow Cash at 30 June 2016
Almarai Company
Others Cash at 30
+ SAR 99 Million
2017 Q2 Earnings Presentation
June 2017
17
Net Debt 14,000
350% 3.1x
12,000
SAR Million
10,000
3.0x 2.8x
2.8x
2.9x 2.7x
2.7x
2.7x
300% 250%
2.2x
8,000
200%
6,000
150% 98%
4,000
101% 75%
74%
75%
74%
81%
81%
85%
2,000
100% 50%
4,606
6,653
8,237
8,053
8,762
9,344
10,889
10,883
11,668
0
0% 2010
2011
2012
2013
2014
2015
2016
2016
Last 12 Months
IFRS
SOCPA Net Debt
Almarai Company
Net Debt / Equity Ratio
2017 Q2 Earnings Presentation
Net Debt / EBITDA
18
Quarterly Performance – Net Income 2017 versus 2016 800
Q2 = 2.4% 700
658 #
674
655 595
629
600
539
530
SAR Million
500
484
476
433
Q1 = 13.7%
398
400
380 306
300
234
235
242
255
274
309
328
425
343
349
430
450
489
428
369
363
373
* 284
#
286
249
289
200
100
0
# IFRS revaluation adjustments
* Capital gain of SAR 47m in 2012 Almarai Company
2017 Q2 Earnings Presentation
19
EBIT and EBITDA margins are starting to improve… Net Sales, EBITDA and EBIT Evolution CAGR 2010 – 2017: 11.6% (w/o impact of acquisitions 7.7%)
27.2% 25.6%
24.2%
24.4%
23.9%
24.2%
13,795
21.1% Net Sales
16.9%
EBIT % to Net Sales EBITDA % to Net Sales
14,699
14,339
12,606
19.1%
SAR Million
25.3%
25.9%
9,883
11,219 16.0%
15.8%
16.4%
2013
2014
2015
17.3%
17.5%
2016
2016
26.9%
14,183 18.2%
7,951 6,931
2010
2011
2012
IFRS
SOCPA
Almarai Company
Last 12 Months
2017 Q2 Earnings Presentation
20
Key Share Data Key Statistics for Almarai (4 July 2017) Share Price (SAR)
92.00
Current P/E Ratio (ttm)
35.82
Earnings Per Share (SAR) (ttm) Market Cap (SAR Million) Shares Outstanding (Million) Dividend Indicated Gross Yield
Almarai Company
2.59 74,336 800 0.97%
2017 Q2 Earnings Presentation
21
For Investor Relations matters please contact: [email protected]
“We will encourage our major corporations to expand across borders and take their rightful place in global markets”
QR Code for Almarai IR App.
www.almarai.com
Thank you
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
2017 Q2 Earnings Presentation
2
Solid Q2 YTD results underpinned by turnaround of Poultry 1.3
Group Operating Income up 7.0% to SAR 1.2 billion
1.2
Solid Results in Dairy and GCC market
Weakness in Egypt, Export and GCC Juice market continue
SAR in Billion
Group Turnover down 2.1% to SAR 7.1 billion
1.1
1.0
Net Free Cash flow increased to SAR 0.2 billion
Almarai Company
Group Operating Profit Up 7.0%
Q2 YTD 16
2017 Q2 Earnings Presentation
Q2 YTD 17
3
Revenue Variance 7,400
7,300 90
7,20
(171)
SAR in Million
7,000
(78)
12 (41)
(30)
GCC Economic
Export
7,144
61
(8)
6,800
6,600
6,400
6,20
6,000
Q2 YTD 2016
Devaluation in
Juice - GCC
Egypt Currency
Bakery - GCC Infant Nutrition Poultry - GCC Core Category
Q2 YTD 2017
Situation
(SAR 156 M) / (2.1%) Growth --->
Almarai Company
(2.3%)
(1.1%)
(1.4%)
(0.4%)
2017 Q2 Earnings Presentation
(0.1%)
0.2%
0.8%
1.2%
4
Delivered on Key Focus Areas
On track for positive revenue growth in poultry and key dairy segments of Laban and Zabadi
Almarai Company
Delivered positive EBIT results for poultry segment for the first time
Cost saving and rationalization program continue to deliver on expected benefits
2017 Q2 Earnings Presentation
CAPEX program reduction is in line with the revised 5 year plan vision
Key projects including alfalfa importation targets are running in line with expected delivery dates
5
Market Share Laban
Juices
UHT 47.2%
66.2%
18.1% 44.6%
63.8%
2016
2017
Fresh Milk
2016
2017
2016
17.7%
2017
69% 68%
67.7%
36.3%
65.1%
2016
65.7%
2017
Jar Cheese
Chicken
Bread 69.2%
Puffs
36.7%
45.2%
40.1% 2016
Almarai Company
2017
2016
2017
2016
2017 Q2 Earnings Presentation
2017
2016
2017
6
Statement of Profit and Loss SAR million
2nd Quarter 2017
2016
Net Sales
3,926
Cost of sales
(2,405)
Gross Profit
1,521
10 0 .0 % (61.3%) 38 .7%
3,760
Change 10 0 .0 %
(4.2%)
2016 7,300
(2,205)
(58.6%)
(8.3%)
(4,651)
1,555
4 1.4 %
2.2%
2,648
2nd Quarter YTD 2017 10 0 .0 % (63.7%) 36 .3%
7,144 (4,412) 2,732
Change 10 0 .0 %
(2.1%)
(61.8%)
(5.2%)
38 .2%
3.2%
Selling and Distribution Expenses
(627)
(16.0%)
(611)
(16.3%)
(2.4%)
(1,247)
(17.1%)
(1,218)
(17.0%)
(2.4%)
General and Administration Expenses
(123)
(3.1%)
(114)
(3.0%)
(7.9%)
(247)
(3.4%)
(223)
(3.1%)
(9.8%)
(12)
(0.3%)
(42)
(1.1%)
(24)
(0.3%)
(82)
(1.2%)
Other Expense, net Operating Income Exchange Gain / (Loss) Finance Costs - net Share of Results of Associates and Joint Ventures Profit Before Zakat and Income Tax Zakat and Foreign IncomeTax Profit for the Period
759
19 .3%
788
21.0 %
14
0.4%
(1)
(0.0%)
(95)
(2.4%)
(98)
(2.6%)
5
0.1%
(3)
(0.1%)
683
17.4 %
(26)
(0.7%)
686 (21)
18 .2% (0.6%)
241.5% 3.9% n.a 4.0% n.a 0.4% (19.1%)
1,131
15.5%
1,209
16 .9 %
13
0.2%
11
0.2%
(9.6%) 18.5%
(168) 6 981 (40)
(2.3%)
(199)
(2.8%)
0.1%
(2)
(0.0%)
13.4 % (0.5%)
657
16 .7%
664
17.7%
1.1%
942
12.9 %
2
0.0%
10
0.3%
537.7%
5
0.1%
Profit Attributable to Shareholders
658
16 .8 %
674
17.9 %
2.4%
947
13.0 %
Earnings Per Share (Basic)
0.81
1.1%
1.15
Profit Attributable to Non Controlling Interest
Almarai Company
0.82
2017 Q2 Earnings Presentation
249.1%
1,020 (33) 987 16 1,002
1.20
14 .3% (0.5%)
7.0%
n.a 3.9% (16.2%)
13.8 %
4.7%
0.2%
209.1%
14 .0 %
5.8% 4.2%
7
2nd Quarter YTD 2017 Results
Operating Performance Operating Income
Gross Profit % to Sales
2,648
Almarai Company
38.2%
36.3% SAR Million
1.9 pp
15.5%
2,732
16.9%
Profit Attributable to Shareholders 1.4 pp
13.0%
SAR Million
1,131
+79
+3.2%
+7.0%
947
1,002
+55 +5.8%
2nd Qtr YTD
2nd Qtr YTD
2nd Qtr YTD
2nd Qtr YTD
2nd Qtr YTD
2nd Qtr YTD
2016
2017
2016
2017
2016
2017
2017 Q2 Earnings Presentation
1.0 pp
SAR Million
1,209
+84
14.0%
8
Strong Domestic Performance
Turnover SAR Billion
Net Income SAR Billion
Net Income Margin
Dairy & Juice
Bakery
Poultry
Others
Total
5.4 (3.9%)
0.9 (0.8%)
0.7 8.3%
0.1 15.4%
7.1 (2.1%)
0.9 (10.3%)
0.2 0.8%
(0.0) 80.1%
(0.0) 25.1%
1.0 5.8%
17.3%
16.9%
(4.8%)
(63.5%)
14.0%
SAR Billion
Almarai Company
2017 Q2 Earnings Presentation
9
Dairy & Juice o Laban and Zabadi have continued to grow however fresh milk growth has stabilized. o Egypt devaluation impact accounts for 3.0% within D&J segment. o Economic situation in the GCC had an adverse effect on the bottom line for June o Higher cost of alfalfa is significantly impacting profitability growth.
Almarai Company
2017 Q2 Earnings Presentation
1,100.0 1,000.0 900.0 800.0 700.0 600.0 500.0 SAR in Million
1,045.3
Q2 YTD 16
937.6
Q2 YTD 17
Net Income
10
Bakery 153.0
o Revenue down 0.8%, it has however declined by 5.2% in Q2 o Bread, Puff and Croissant growth has stalled o Product revamp for key categories is underway o Margin improvement supported by • Manufacturing efficiencies (mainly Hail plant) • Cost saving • Innovation o Key challenge for next half • Improve profitability and market share
Almarai Company
2017 Q2 Earnings Presentation
152.0
151.0
152.4 151.3
150.0 SAR in Million
Q2 YTD 16
Q2 YTD 17
Net Income
11
Poultry 0.0
Poultry EBIT break even for the first time during the quarter
(35.9)
(100.0) (180.5)
o Revenue up 8.3% driven by strong volume growth o Poultry mortality continues to be within the target range for world best practice. o Q3 is expected to be EBIT negative due to seasonality trends however current operations remain on target to achieve + EBIT for the year before any adverse impact from GCC economic situation.
Almarai Company
2017 Q2 Earnings Presentation
(200.0) SAR in Million
Q2 YTD 16
Q2 YTD 17
Net Income
12
Others 0.0
o IPNC losses are in line with existing business plan. • Losses have reduced by 32% plus from last year o Expansion of Alfalfa operations in both South and North America remains on track. • Operations are still loss making but losses have reduced significantly from last year as the investment cycle reduces
Almarai Company
2017 Q2 Earnings Presentation
(50.0)
(51.8) (69.1)
(100.0) SAR in Million
Q2 YTD 16
Q2 YTD 17
Net Income
13
Sales Analysis by Segment by Product – Q2 YTD 7,144
Total Net Sales
(-156)
(2.1%)
Net Sales
Dairy & Juice
Bakery
Poultry
Others
5,415 (76%)
904 (13%)
744 (10%)
82 (1%)
(-217)
(-7)
(+57)
(+11)
(3.9%)
(0.8%)
+8.3%
+15.4%
By Segment
Net Sales By Product
Fresh Dairy
Long-Life Dairy
Fruit Juice
Cheese&Butter
Bakery
Poultry
Other Sales
2,989 (42%)
722 (10%)
758 (11%)
946 (13%)
904 (13%)
744 (10%)
82 (1%)
(-39)
(-29)
(-167)
(+17)
(-7)
(+57)
(+11)
(1.3%)
(3.8%)
(18.1%)
+1.9%
(0.8%)
+8.3%
15.4%
Note: All Amounts in Million Saudi Riyals
Almarai Company
2017 Q2 Earnings Presentation
14
Sales Analysis by Region by Country – Q2 YTD 7,144
Total Net Sales
(-156)
(2.1%) Net Sales By Region
KSA
Other GCC Countries
Other Countries
4,705 (66%)
1,920 (27%)
519 (7%)
(+49)
(+9)
(-214)
+1.1%
+0.5%
(29.3%)
Net Sales
KSA
UAE
Oman
Qatar
Kuwait
Bahrain
Egypt
Jordan
Others
4,705 (66%)
709 (10%)
372 (5%)
325 (5%)
359 (5%)
155 (2%)
291 (4%)
137 (2%)
91 (1%)
By Country
(+49)
(+9)
(+7)
(-35)
(+21)
(+8)
(-186)
(+2)
(-31)
Growth in Saudi Riyals
+1.1%
+1.3%
+1.9%
(9.8%)
+6.2%
+5.2%
(38.9%)
+1.6%
(25.5%)
33.6%
Growth in Local Currency
Note: All Amounts in Million Saudi Riyals
Almarai Company
2017 Q2 Earnings Presentation
15
Almarai continues 5 Year Plan CAPEX Investment CAPEX spend for the 2nd Quarter Year to Date 2017 was SAR 1.6 Billion. • Manufacturing, Farming and Replacement spent CAPEX of SAR ~0.9 Billion for various capacity expansion projects. • Sales depot, Poultry and Logistics expansion accounted for SAR ~0.4 Billion. • Replacement and other CAPEX including IDJ accounted for another SAR ~0.3 Billion.
Cheese Plant - Transformers
Almarai Company
Cheese Plant Expansion
Transport & Workshop
2017 Q2 Earnings Presentation
40MW Power Plant
16
Cash Flow Bridge – Rolling 12 Months 4,975
66
(4,278)
Loans Issues / Payments / Charges
(718) CAPEX / Biological
364
53
463
Assets Dividend
Operating Cash Flow Cash at 30 June 2016
Almarai Company
Others Cash at 30
+ SAR 99 Million
2017 Q2 Earnings Presentation
June 2017
17
Net Debt 14,000
350% 3.1x
12,000
SAR Million
10,000
3.0x 2.8x
2.8x
2.9x 2.7x
2.7x
2.7x
300% 250%
2.2x
8,000
200%
6,000
150% 98%
4,000
101% 75%
74%
75%
74%
81%
81%
85%
2,000
100% 50%
4,606
6,653
8,237
8,053
8,762
9,344
10,889
10,883
11,668
0
0% 2010
2011
2012
2013
2014
2015
2016
2016
Last 12 Months
IFRS
SOCPA Net Debt
Almarai Company
Net Debt / Equity Ratio
2017 Q2 Earnings Presentation
Net Debt / EBITDA
18
Quarterly Performance – Net Income 2017 versus 2016 800
Q2 = 2.4% 700
658 #
674
655 595
629
600
539
530
SAR Million
500
484
476
433
Q1 = 13.7%
398
400
380 306
300
234
235
242
255
274
309
328
425
343
349
430
450
489
428
369
363
373
* 284
#
286
249
289
200
100
0
# IFRS revaluation adjustments
* Capital gain of SAR 47m in 2012 Almarai Company
2017 Q2 Earnings Presentation
19
EBIT and EBITDA margins are starting to improve… Net Sales, EBITDA and EBIT Evolution CAGR 2010 – 2017: 11.6% (w/o impact of acquisitions 7.7%)
27.2% 25.6%
24.2%
24.4%
23.9%
24.2%
13,795
21.1% Net Sales
16.9%
EBIT % to Net Sales EBITDA % to Net Sales
14,699
14,339
12,606
19.1%
SAR Million
25.3%
25.9%
9,883
11,219 16.0%
15.8%
16.4%
2013
2014
2015
17.3%
17.5%
2016
2016
26.9%
14,183 18.2%
7,951 6,931
2010
2011
2012
IFRS
SOCPA
Almarai Company
Last 12 Months
2017 Q2 Earnings Presentation
20
Key Share Data Key Statistics for Almarai (4 July 2017) Share Price (SAR)
92.00
Current P/E Ratio (ttm)
35.82
Earnings Per Share (SAR) (ttm) Market Cap (SAR Million) Shares Outstanding (Million) Dividend Indicated Gross Yield
Almarai Company
2.59 74,336 800 0.97%
2017 Q2 Earnings Presentation
21
For Investor Relations matters please contact: [email protected]
“We will encourage our major corporations to expand across borders and take their rightful place in global markets”
QR Code for Almarai IR App.
www.almarai.com
Thank you
