Update on Five Year Plan - Almarai
Almarai Company 2013 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
2013 Q1 Earnings Presentation
2
Business Highlights
Highlights – Q1 2013
Revenue of 2.4B SAR, growth of 18.2% driven by poultry 70%, juice 39% and inclusion of IDJ results. Revenue growth of 9.4% in KSA, 9.6% in all other GCC states and 609.8% in rest of the world including Jordan and Egypt, driven by first time consolidation of IDJ. Note that this is the last quarter where consolidation effect of IDJ will impact the growth rate. EBITDA of 509.7 million SAR grew by 13.9%, EBITDA Margin now stands at 21.1% of revenue. EBIT of 300.8 million SAR grew by 2.9% over Q1, 2012. Whilst margin over material are now growing at a higher growth rate than revenue growth, higher labour overheads, higher depreciation and inclusion of IDJ overheads have resulted in lower EBIT growth. Net operating cash flow of 54 million SAR is down by 85.9% over Q1, 2012, mainly driven by working capital expansion, partially due to inventory investment for poultry segment expansion plan. Capital expenditure for the quarter was 0.7B SAR, which is in line with our earlier forecast of 3.1B capex spend for the full year 2013. The second tranche of Sukuk program amounting to 1.3B SAR was successfully completed just prior to Q1, 2013. The Board of Directors proposal for a dividend of SAR 0.5B (SAR 1.25 per share) was approved on 2nd April 2013 and the dividend will be paid on 10th April 2013.
Staff strength stood at more than 30K at the end of Q1, 2013. Growth in headcount accounted for part of the increase of overhead growth, including higher statutory charges, which is running in line with capacity expansion but is growing faster than volume and revenue growth. Within KSA, Almarai ranking still stands at the high end of green band in Nitaqat. Lead the innovation efforts in our selected markets by launching 15 new products during the first quarter of 2013.
Almarai Company
2013 Q1 Earnings Presentation
4
Strong pipeline of innovation continues in 2013
Almarai Company
2013 Q1 Earnings Presentation
5
Sales Highlights
Sales Growth – Geography mix Q 1 2012
All O thers 1.5 %
Q 1 2013 All O thers 8 .7%
GCC 2 7.9 % GCC 2 5 .9%
KSA 70 .6 %
KSA 6 5 .4 %
1.58
KSA
1.4 4
9.4%
0 .6 2
GCC All Others Almarai Group
Almarai Company
9.6%
0 .57
Q1 2013 Rev in B SAR
0 .21 0 .0 3
609.8%
Q1 2012 Rev in B SAR
2.4 1
18.2%
%
2.0 4
2013 Q1 Earnings Presentation
Growth
7
Sales Analysis by Product & Region Sales by Count ry - Q1 2013
Sales by Product Q1
Sa les by Pr oduct Gr oup SAR M illion Fresh Dairy Long-Life Dairy Fruit Juice Cheese & Butter Bakery Poultry Arable and Horticulture Other Sales T ota l Sa les
2 0 13
2 0 12
% chang e
953.7 258 .7 28 8 .0 394.8 340 .9 162.1 6.9 5.9
8 0 8 .2 213.5 20 7.3 394.9 293.5 95.4 15.7 11.8
18 .0 % 21.2% 39.0 % (0 .0 %) 16.1% 69.9% (56.5%) (50 .4%) 18 .2 %
2 ,4 11.0
2 ,0 4 0 .3
Qatar 4 .2%
Bahrain 2.1%
UAE 9.4 %
Oman 5.2%
Egypt 4 .4 %
Jordan 2.6% Ex port / Others 1.8 %
Kuwait 5.0 %
KSA 65.4%
Participation vs Growth – Q1 2013 Participation Q1 20 13
Growth (Q1 20 13 v Q1 20 12)
P oultry
6 .7%
6 9 .9 %
Long-Life D airy
10 .7%
21.2%
Fruit Juice
11.9 %
3 9 .0 %
Bakery
14 .1%
16 .1%
Cheese & Butter
16 .4 %
0 .0 %
Fresh Dairy
3 9 .6 %
18 .0 %
0% 40%
Almarai Company
10% 3 0%
2020% %
10 %30%
0 % 40%
10 %
50% 20 %
2013 Q1 Earnings Presentation
60% 30 %
70% 40 %
80% 50 %
90%
8
Change in growth rates and IDJ consolidation results in higher share of poultry , Juice and Long life dairy 10 0 % 90 %
1.3 %
0 .5%
4 .7%
6 .7%
10 .5%
10 .7%
O t her Sales
Poultry 80%
10 .2%
11.9 % Long-Life D airy
70 % 14 .4 % 60 %
14 .1% Fruit Juice
50 %
19 .4 %
16 .4 % Bakery
40 % 30 % 20 %
Cheese & Butter 3 9 .6 %
3 9 .6 % Fresh Dairy
10 % 0% Q 1 20 12
Almarai Company
Q 1 20 13
2013 Q1 Earnings Presentation
9
Product mix in different geographical regions highlights revenues growth potential…. KSA
Total Cheese & Butter 16% Fruit Juice 12%
Bakery 14%
Arable and Horti 0%
Long-Life Dairy 8%
Fresh Dairy 40%
Arable and Horti 0%
Bakery 18%
Fruit Juice 10%
Poultry 7%
Long-Life Dairy 11%
Cheese & Butter 17%
Poultry 9%
Fresh Dairy 38%
Other Sales 0%
Gulf Fruit Juice 13%
Long-Life Dairy 13%
Almarai Company
All Other Countries Bakery 2%
Cheese & Butter 16%
Bakery 8%
Fresh Dairy 48%
Other Sales 0%
Poultry 2%
Fruit Juice 26%
Cheese & Butter 15%
Arable and Horti 3%
Long-Life Dairy 28% Other Sales 0%
2013 Q1 Earnings Presentation
Fresh Dairy 25%
Other Sales 1%
10
..which can be achieved via expanding presence of Almarai Operations throughout the region(excl Farms in Argentina)
`
Distribution centre
Manufacturing facility
Almarai Company
2013 Q1 Earnings Presentation
11
Statement of Income
Statement of Income 20 13
SAR m illion
1st quart er 20 12 Change
2,4 11.0 2,0 4 0 .3 (1,58 3.2) (1,333.0 )
Net Sales Cost of sales
18 .2% 18 .8 %
Gross Profit Selling and Distribution Expenses General and Administration Expenses
8 27.8 (450 .1) (76.8 )
70 7.3 (344.7) (70 .1)
17.0 % 30 .6% 9.5%
EBIT Share of Results of Associates Bank Charges
30 0 .8 (6.0 ) (38 .8 )
29 2.5 (12.3) (27.4)
2.9 % (51.4%) 41.6%
Incom e from Main and Continuing Operations Zakat and Income Tax
256 .1 (7.6)
Net incom e before Minority Interest Minority Interest
24 8 .5 6.6
252.8 (7.9)
1.3% (3.8 %)
24 4 .9 1.5% (2.8 ) (339.4%)
Net Incom e
255.1
24 2.1
5.4 %
Earnings Per Share
0 .6 4
0 .6 1
5.4 %
Net Incom e %
10 .6 %
11.9 %
• GCC Margin over material has continued to show higher growth than revenue in Q1 2013, similar to previous quarter. However, higher depreciation, IDJ consolidation effect and overhead growth resulted in lower gross profit growth compared to revenue growth. • Similarly, growth in overheads is driven by head count increase and IDJ consolidation, resulting in lower net profit growth relative to revenue growth
• than revenue. Almarai Company
2013 Q1 Earnings Presentation
13
Segment Reporting SAR Million Q1 2013 Sales Third Party Sales Net Depreciation Income/(loss) before Minority Interest Total Assets Total Liabilities Return on Sales Growth versus Q1 2012 - Third Party Sales - Income before Minority Interest
Almarai Company
Dairy & Juice
Bakery
Poultry
Arable and Horticulture
Other Activities
Almarai Consolidated
1,903.6 1,901.2 (140.1)
340.9 340.9 (31.7)
162.1 162.1 (15.9)
24.4 6.9 (17.6)
0.0 0.0 (3.6)
2,431.1 2,411.0 (208.9)
250.4
34.3
(46.1)
26.7
(16.9)
248.5
12,833.2 (11,873.0)
2,023.2 (337.1)
4,127.7 (317.4)
1,683.6 (238.4)
1,004.8 (535.3)
21,672.6 (13,301.2)
13.2%
10.1%
(28.4%)
390.2%
n.a.
10.3%
16.2% (7.5%)
16.1% (2.5%)
69.9% 44.0%
(56.5%) n.a.
n.a. 84.9%
18.2% 1.5%
2013 Q1 Earnings Presentation
14
Trend charts
Robust revenue growth with challenging – but anticipated – EBITDA & EBIT trend Revenue, EBITDA and EBIT Evolution 25.7%
26 .0 %
26 .7%
27.2% 25.6%
25.3%
24 .2%
SAR in Million
20 .7%
21.0 %
21.8 %
23.9%
21.1%
19 .4%
19 .1%
9 ,8 8 3 16 .9%
CAGR 20 0 6 – 20 13: 20 .6% (w/o im pact of acquisitions 19.4%)
10 ,254 16 .4%
7,9 51
Revenues 6 ,9 31
EBIT % EBITDA %
5,8 69 5,0 30 3,770
2,757 20 0 6
20 0 7
20 0 8
20 0 9
20 10
20 11
20 12
Last 12 months
• After excluding the impact of IDJ consolidation in full, Net Operating income % for the last 12 months is revised to 17.6%.
Almarai Company
2013 Q1 Earnings Presentation
16
50
Almarai Company 100
2013 Q1 Earnings Presentation
369.0
285.5
283.5
248.8
219.2
193.1
450.0
429.7
424.5
363.4
293.7
250
130.2
186.1
379.5
349.3
343.1
287.1
200
122.6
255.1
235.2
165.3
121.8
150
242.1
235.2
234.1
197.4
162.2
122.8
90.6
SAR Million
Quarterly Performance – Net Income 450
2013 versus 2012
400
350
300 Q1 = 5.4%
0
17
Cash Flows
Cash Flow Statement (Q1 2013) 3,0 00
2,0 06
Higher revenue growth resulted in positive operating cash flow, which was partially subdued by working capital expansion,….
S AR M illion From Operat ing Act ivit ies Used in Invest ing Act ivit ies Cashflow Av'ble for Dist 'n From Financing Act ivit ies Increase/(Decrease) in Cash Currency Impact on Cash & Cash Equivalent Cash at beginning of period Cash at end of period
Almarai Company
SAR Million
2,500
2,0 00
1,794
1,500
682
1
U sed in Investing Act ivities
Currency Im pact
1,0 00
50 0
4 17
54
Cash at beginning of period
From O perating Act ivities
0
Q1 20 13 54 (68 2) (629) 2,0 0 6 1,377
20 12 38 3 (8 32) (449) 465 16
(1) 417 1,79 4
From Financing Act ivities
Cash at end of period
….but additional capex investment, especially for poultry (0.2B) resulted in negative free cash flow of 0.6B
272 28 8
2013 Q1 Earnings Presentation
19
Cash Flow Bridge – rolling 12 months 1,3 0 0
(2,76 7)
1,4 4 7 Sukuk
(512)
2,0 55
(17)
Capex
Loans Issues / Others
Dividend
1,79 4
Others
28 8
Ca sh at 31 M a r 20 12
Almarai Company
Operating Cash Flow
+ SAR 1,50 6 m
2013 Q1 Earnings Presentation
Ca sh at 31 M a r 20 13
20
Balance Sheet
Balance Sheet S AR M illion Net Operat ing Working Capit al Biological Asset s Propert y , Plant and Equipment Net Operat ing Asset s Int angible Asset s - Goodwill Invest ment and Financial Asset s & Deferred Charges Net Debt Employ ee Terminat ion Benefit s Deferred Tax (Net ) Tot al Equit y Net Capit al Employ ed Net Debt t o Equit y Rat io
Almarai Company
2013 Q1 Earnings Presentation
3 1/ 0 3 / 13 1,373 919 13,8 45 16,137 1,335
3 1/ 0 3 / 12 1,0 37 8 55 11,8 54 13,746 1,38 3
298
596
17,770
15,725
8 ,98 3 30 2 114 8 ,371 17,770
7,450 254 130 7,8 91 15,725
10 7.3%
94.4%
22
Net Debt 10,000
400%
9,000
3.2x
in million SAR
8,000
2.8x
7,000
6,000
3.4x
2.3x
2.3x
2.4x
300%
2.3x
250%
2.0x
5,000
200%
4,000 3,000 2,000 1,000
69%
100%
96%
81%
73%
76%
102%
107%
150% 100% 50%
1,315
2,463
3,499
3,951
4,679
6,749
8,305
8,983
2006
2007
2008
2009
2010
2011
2012
Last 12 months
0
0%
Net Debt
Almarai Company
350%
Net Debt / Equity Ratio
2013 Q1 Earnings Presentation
Net Debt / EBITDA
23
Debt Profile highlights balanced approach for funding…. 4.0
Debt Maturity by Age and Type
3.5
S AR Billion
3.0
2.3 , 23 %
Islamic Bonds
2.5
Govt / Semi Govt Inst .
2.0
Banks
1.1, 12%
6 .4 , 6 5%
1.5 1.0 0 .5 0 .0 20 13
Almarai Company
20 14
20 15
20 16
20 17
2013 Q1 Earnings Presentation
20 18 & Bey ond
24
Capital Expenditure
Capex spend in line with Guidance…
Capex spend of 0.7B SAR, which is in line for with our earlier forecast of 3.1B SAR for the year 2013. Poultry capex spend for the quarter amounted to slightly more than 0.2B SAR. The key highlight for Q1 was the commercial production start of the first of the three lines.
Each of the three main functions of Sales, Manufacturing and Farming consumed capex of ~0.1B SAR. Replacement and other capex accounted for another 0.1B SAR.
Almarai Company
including
IDJ,
2013 Q1 Earnings Presentation
26
Key Share Data Key S t at ist ics for Alm arai (1 April 20 13 ) 30 0%
250 %
20 0 %
Current P / E Rat io (t t m ) Est im at ed P / E(12/ 20 13 ) Earnings P er S hare (S AR) (t t m ) M arket Cap (M S AR) S hares O ut st anding (M ) 3 0 D ay Average V olum e D ividend Indicat ed Gross Yield Cash D ividend (S AR) Last D ividend 5 Year D ividend Growt h
18 .9 16 .8 3 .6 27,19 8 4 0 0 .0 212,0 20 1.8 % 1.3 4 / 3 / 20 13 12.5%
150 %
10 0 %
50 %
0%
Almarai
Almarai Company
TASI
2013 Q1 Earnings Presentation
27
Q&A
Almarai Company
2013 Q1 Earnings Presentation
28
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 1 470 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 Q1 Earnings Presentation
2
Business Highlights
Highlights – Q1 2013
Revenue of 2.4B SAR, growth of 18.2% driven by poultry 70%, juice 39% and inclusion of IDJ results. Revenue growth of 9.4% in KSA, 9.6% in all other GCC states and 609.8% in rest of the world including Jordan and Egypt, driven by first time consolidation of IDJ. Note that this is the last quarter where consolidation effect of IDJ will impact the growth rate. EBITDA of 509.7 million SAR grew by 13.9%, EBITDA Margin now stands at 21.1% of revenue. EBIT of 300.8 million SAR grew by 2.9% over Q1, 2012. Whilst margin over material are now growing at a higher growth rate than revenue growth, higher labour overheads, higher depreciation and inclusion of IDJ overheads have resulted in lower EBIT growth. Net operating cash flow of 54 million SAR is down by 85.9% over Q1, 2012, mainly driven by working capital expansion, partially due to inventory investment for poultry segment expansion plan. Capital expenditure for the quarter was 0.7B SAR, which is in line with our earlier forecast of 3.1B capex spend for the full year 2013. The second tranche of Sukuk program amounting to 1.3B SAR was successfully completed just prior to Q1, 2013. The Board of Directors proposal for a dividend of SAR 0.5B (SAR 1.25 per share) was approved on 2nd April 2013 and the dividend will be paid on 10th April 2013.
Staff strength stood at more than 30K at the end of Q1, 2013. Growth in headcount accounted for part of the increase of overhead growth, including higher statutory charges, which is running in line with capacity expansion but is growing faster than volume and revenue growth. Within KSA, Almarai ranking still stands at the high end of green band in Nitaqat. Lead the innovation efforts in our selected markets by launching 15 new products during the first quarter of 2013.
Almarai Company
2013 Q1 Earnings Presentation
4
Strong pipeline of innovation continues in 2013
Almarai Company
2013 Q1 Earnings Presentation
5
Sales Highlights
Sales Growth – Geography mix Q 1 2012
All O thers 1.5 %
Q 1 2013 All O thers 8 .7%
GCC 2 7.9 % GCC 2 5 .9%
KSA 70 .6 %
KSA 6 5 .4 %
1.58
KSA
1.4 4
9.4%
0 .6 2
GCC All Others Almarai Group
Almarai Company
9.6%
0 .57
Q1 2013 Rev in B SAR
0 .21 0 .0 3
609.8%
Q1 2012 Rev in B SAR
2.4 1
18.2%
%
2.0 4
2013 Q1 Earnings Presentation
Growth
7
Sales Analysis by Product & Region Sales by Count ry - Q1 2013
Sales by Product Q1
Sa les by Pr oduct Gr oup SAR M illion Fresh Dairy Long-Life Dairy Fruit Juice Cheese & Butter Bakery Poultry Arable and Horticulture Other Sales T ota l Sa les
2 0 13
2 0 12
% chang e
953.7 258 .7 28 8 .0 394.8 340 .9 162.1 6.9 5.9
8 0 8 .2 213.5 20 7.3 394.9 293.5 95.4 15.7 11.8
18 .0 % 21.2% 39.0 % (0 .0 %) 16.1% 69.9% (56.5%) (50 .4%) 18 .2 %
2 ,4 11.0
2 ,0 4 0 .3
Qatar 4 .2%
Bahrain 2.1%
UAE 9.4 %
Oman 5.2%
Egypt 4 .4 %
Jordan 2.6% Ex port / Others 1.8 %
Kuwait 5.0 %
KSA 65.4%
Participation vs Growth – Q1 2013 Participation Q1 20 13
Growth (Q1 20 13 v Q1 20 12)
P oultry
6 .7%
6 9 .9 %
Long-Life D airy
10 .7%
21.2%
Fruit Juice
11.9 %
3 9 .0 %
Bakery
14 .1%
16 .1%
Cheese & Butter
16 .4 %
0 .0 %
Fresh Dairy
3 9 .6 %
18 .0 %
0% 40%
Almarai Company
10% 3 0%
2020% %
10 %30%
0 % 40%
10 %
50% 20 %
2013 Q1 Earnings Presentation
60% 30 %
70% 40 %
80% 50 %
90%
8
Change in growth rates and IDJ consolidation results in higher share of poultry , Juice and Long life dairy 10 0 % 90 %
1.3 %
0 .5%
4 .7%
6 .7%
10 .5%
10 .7%
O t her Sales
Poultry 80%
10 .2%
11.9 % Long-Life D airy
70 % 14 .4 % 60 %
14 .1% Fruit Juice
50 %
19 .4 %
16 .4 % Bakery
40 % 30 % 20 %
Cheese & Butter 3 9 .6 %
3 9 .6 % Fresh Dairy
10 % 0% Q 1 20 12
Almarai Company
Q 1 20 13
2013 Q1 Earnings Presentation
9
Product mix in different geographical regions highlights revenues growth potential…. KSA
Total Cheese & Butter 16% Fruit Juice 12%
Bakery 14%
Arable and Horti 0%
Long-Life Dairy 8%
Fresh Dairy 40%
Arable and Horti 0%
Bakery 18%
Fruit Juice 10%
Poultry 7%
Long-Life Dairy 11%
Cheese & Butter 17%
Poultry 9%
Fresh Dairy 38%
Other Sales 0%
Gulf Fruit Juice 13%
Long-Life Dairy 13%
Almarai Company
All Other Countries Bakery 2%
Cheese & Butter 16%
Bakery 8%
Fresh Dairy 48%
Other Sales 0%
Poultry 2%
Fruit Juice 26%
Cheese & Butter 15%
Arable and Horti 3%
Long-Life Dairy 28% Other Sales 0%
2013 Q1 Earnings Presentation
Fresh Dairy 25%
Other Sales 1%
10
..which can be achieved via expanding presence of Almarai Operations throughout the region(excl Farms in Argentina)
`
Distribution centre
Manufacturing facility
Almarai Company
2013 Q1 Earnings Presentation
11
Statement of Income
Statement of Income 20 13
SAR m illion
1st quart er 20 12 Change
2,4 11.0 2,0 4 0 .3 (1,58 3.2) (1,333.0 )
Net Sales Cost of sales
18 .2% 18 .8 %
Gross Profit Selling and Distribution Expenses General and Administration Expenses
8 27.8 (450 .1) (76.8 )
70 7.3 (344.7) (70 .1)
17.0 % 30 .6% 9.5%
EBIT Share of Results of Associates Bank Charges
30 0 .8 (6.0 ) (38 .8 )
29 2.5 (12.3) (27.4)
2.9 % (51.4%) 41.6%
Incom e from Main and Continuing Operations Zakat and Income Tax
256 .1 (7.6)
Net incom e before Minority Interest Minority Interest
24 8 .5 6.6
252.8 (7.9)
1.3% (3.8 %)
24 4 .9 1.5% (2.8 ) (339.4%)
Net Incom e
255.1
24 2.1
5.4 %
Earnings Per Share
0 .6 4
0 .6 1
5.4 %
Net Incom e %
10 .6 %
11.9 %
• GCC Margin over material has continued to show higher growth than revenue in Q1 2013, similar to previous quarter. However, higher depreciation, IDJ consolidation effect and overhead growth resulted in lower gross profit growth compared to revenue growth. • Similarly, growth in overheads is driven by head count increase and IDJ consolidation, resulting in lower net profit growth relative to revenue growth
• than revenue. Almarai Company
2013 Q1 Earnings Presentation
13
Segment Reporting SAR Million Q1 2013 Sales Third Party Sales Net Depreciation Income/(loss) before Minority Interest Total Assets Total Liabilities Return on Sales Growth versus Q1 2012 - Third Party Sales - Income before Minority Interest
Almarai Company
Dairy & Juice
Bakery
Poultry
Arable and Horticulture
Other Activities
Almarai Consolidated
1,903.6 1,901.2 (140.1)
340.9 340.9 (31.7)
162.1 162.1 (15.9)
24.4 6.9 (17.6)
0.0 0.0 (3.6)
2,431.1 2,411.0 (208.9)
250.4
34.3
(46.1)
26.7
(16.9)
248.5
12,833.2 (11,873.0)
2,023.2 (337.1)
4,127.7 (317.4)
1,683.6 (238.4)
1,004.8 (535.3)
21,672.6 (13,301.2)
13.2%
10.1%
(28.4%)
390.2%
n.a.
10.3%
16.2% (7.5%)
16.1% (2.5%)
69.9% 44.0%
(56.5%) n.a.
n.a. 84.9%
18.2% 1.5%
2013 Q1 Earnings Presentation
14
Trend charts
Robust revenue growth with challenging – but anticipated – EBITDA & EBIT trend Revenue, EBITDA and EBIT Evolution 25.7%
26 .0 %
26 .7%
27.2% 25.6%
25.3%
24 .2%
SAR in Million
20 .7%
21.0 %
21.8 %
23.9%
21.1%
19 .4%
19 .1%
9 ,8 8 3 16 .9%
CAGR 20 0 6 – 20 13: 20 .6% (w/o im pact of acquisitions 19.4%)
10 ,254 16 .4%
7,9 51
Revenues 6 ,9 31
EBIT % EBITDA %
5,8 69 5,0 30 3,770
2,757 20 0 6
20 0 7
20 0 8
20 0 9
20 10
20 11
20 12
Last 12 months
• After excluding the impact of IDJ consolidation in full, Net Operating income % for the last 12 months is revised to 17.6%.
Almarai Company
2013 Q1 Earnings Presentation
16
50
Almarai Company 100
2013 Q1 Earnings Presentation
369.0
285.5
283.5
248.8
219.2
193.1
450.0
429.7
424.5
363.4
293.7
250
130.2
186.1
379.5
349.3
343.1
287.1
200
122.6
255.1
235.2
165.3
121.8
150
242.1
235.2
234.1
197.4
162.2
122.8
90.6
SAR Million
Quarterly Performance – Net Income 450
2013 versus 2012
400
350
300 Q1 = 5.4%
0
17
Cash Flows
Cash Flow Statement (Q1 2013) 3,0 00
2,0 06
Higher revenue growth resulted in positive operating cash flow, which was partially subdued by working capital expansion,….
S AR M illion From Operat ing Act ivit ies Used in Invest ing Act ivit ies Cashflow Av'ble for Dist 'n From Financing Act ivit ies Increase/(Decrease) in Cash Currency Impact on Cash & Cash Equivalent Cash at beginning of period Cash at end of period
Almarai Company
SAR Million
2,500
2,0 00
1,794
1,500
682
1
U sed in Investing Act ivities
Currency Im pact
1,0 00
50 0
4 17
54
Cash at beginning of period
From O perating Act ivities
0
Q1 20 13 54 (68 2) (629) 2,0 0 6 1,377
20 12 38 3 (8 32) (449) 465 16
(1) 417 1,79 4
From Financing Act ivities
Cash at end of period
….but additional capex investment, especially for poultry (0.2B) resulted in negative free cash flow of 0.6B
272 28 8
2013 Q1 Earnings Presentation
19
Cash Flow Bridge – rolling 12 months 1,3 0 0
(2,76 7)
1,4 4 7 Sukuk
(512)
2,0 55
(17)
Capex
Loans Issues / Others
Dividend
1,79 4
Others
28 8
Ca sh at 31 M a r 20 12
Almarai Company
Operating Cash Flow
+ SAR 1,50 6 m
2013 Q1 Earnings Presentation
Ca sh at 31 M a r 20 13
20
Balance Sheet
Balance Sheet S AR M illion Net Operat ing Working Capit al Biological Asset s Propert y , Plant and Equipment Net Operat ing Asset s Int angible Asset s - Goodwill Invest ment and Financial Asset s & Deferred Charges Net Debt Employ ee Terminat ion Benefit s Deferred Tax (Net ) Tot al Equit y Net Capit al Employ ed Net Debt t o Equit y Rat io
Almarai Company
2013 Q1 Earnings Presentation
3 1/ 0 3 / 13 1,373 919 13,8 45 16,137 1,335
3 1/ 0 3 / 12 1,0 37 8 55 11,8 54 13,746 1,38 3
298
596
17,770
15,725
8 ,98 3 30 2 114 8 ,371 17,770
7,450 254 130 7,8 91 15,725
10 7.3%
94.4%
22
Net Debt 10,000
400%
9,000
3.2x
in million SAR
8,000
2.8x
7,000
6,000
3.4x
2.3x
2.3x
2.4x
300%
2.3x
250%
2.0x
5,000
200%
4,000 3,000 2,000 1,000
69%
100%
96%
81%
73%
76%
102%
107%
150% 100% 50%
1,315
2,463
3,499
3,951
4,679
6,749
8,305
8,983
2006
2007
2008
2009
2010
2011
2012
Last 12 months
0
0%
Net Debt
Almarai Company
350%
Net Debt / Equity Ratio
2013 Q1 Earnings Presentation
Net Debt / EBITDA
23
Debt Profile highlights balanced approach for funding…. 4.0
Debt Maturity by Age and Type
3.5
S AR Billion
3.0
2.3 , 23 %
Islamic Bonds
2.5
Govt / Semi Govt Inst .
2.0
Banks
1.1, 12%
6 .4 , 6 5%
1.5 1.0 0 .5 0 .0 20 13
Almarai Company
20 14
20 15
20 16
20 17
2013 Q1 Earnings Presentation
20 18 & Bey ond
24
Capital Expenditure
Capex spend in line with Guidance…
Capex spend of 0.7B SAR, which is in line for with our earlier forecast of 3.1B SAR for the year 2013. Poultry capex spend for the quarter amounted to slightly more than 0.2B SAR. The key highlight for Q1 was the commercial production start of the first of the three lines.
Each of the three main functions of Sales, Manufacturing and Farming consumed capex of ~0.1B SAR. Replacement and other capex accounted for another 0.1B SAR.
Almarai Company
including
IDJ,
2013 Q1 Earnings Presentation
26
Key Share Data Key S t at ist ics for Alm arai (1 April 20 13 ) 30 0%
250 %
20 0 %
Current P / E Rat io (t t m ) Est im at ed P / E(12/ 20 13 ) Earnings P er S hare (S AR) (t t m ) M arket Cap (M S AR) S hares O ut st anding (M ) 3 0 D ay Average V olum e D ividend Indicat ed Gross Yield Cash D ividend (S AR) Last D ividend 5 Year D ividend Growt h
18 .9 16 .8 3 .6 27,19 8 4 0 0 .0 212,0 20 1.8 % 1.3 4 / 3 / 20 13 12.5%
150 %
10 0 %
50 %
0%
Almarai
Almarai Company
TASI
2013 Q1 Earnings Presentation
27
Q&A
Almarai Company
2013 Q1 Earnings Presentation
28
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 1 470 00 05 ext 1280 [email protected]
