Earnings Presentation AWS
Earnings Presentation Q3 2017
www.savola.com
DISCLAIMER This presentation contains forward-looking statements which may be identified by the use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, market position, expenditures, and financial results, are forward looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The Savola Group (Savola or Group), its subsidiaries and its affiliates (the “Companies”) referred to in this presentation cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements of the Companies, could thus differ materially from those projected in any such forward-looking statements. The Companies assume no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events, or otherwise. The Q3 2017 numbers are based on interim unaudited financials.
2
GROUP – HIGHLIGHTS • In Q3 2017, the Group reported a net profit of SAR 829 million; with adjusted net profit of SAR 135.1 million after deducting the capital gain of SAR 693.9 million from the sale of 2% of Almarai shares. • Savola’s retail segment recorded a net loss of SAR 218.8 million for the quarter. The turnaround is ongoing; the business has maintained the negative working capital position and cash flow from operations is positive. • Within the food segment, revenues continue to be stable and the segment recorded a net profit of SAR 105.7 million for the quarter. Operationally, Egypt continues to be challenging due to the economic conditions. • Herfy recorded a net income of SAR 56 million for the quarter, a decline of 5.5% compared to the same quarter last year.
• Almarai continues to perform well with a profit of SAR 667 million in Q3, translating into SAR 241.4 million net income contribution to the Group.
3
Q3 2017 - SNAPSHOT
GROUP
RETAIL
FOODS
HERFY
INVESTMENTS
»
Q3 2017 revenue of SAR 5.7 bn (Q3 2016: SAR 6.2 bn)
»
Q3 2017 net income SAR 829 mn (Q3 2016: SAR 179.5 mn)
»
Adjusted net income of SAR 135.1 mn after gain of sale of Almarai shares
»
Q3 2017 revenue of SAR 2.7 bn (Q3 2016: SAR 3.2 bn)
»
Q3 2017 net loss of SAR 218.8 mn (Q3 2016: Net loss of SAR 142.4 mn)
»
Q3 2017 revenue of SAR 2.7 bn (Q3 2016: 2.7 bn)
»
Q3 2017 net income of SAR 105.7 mn (Q3 2016: SAR 101.2 mn)
»
Q3 2017 revenue of SAR 311.7 mn (Q3 2016: SAR 315.2 mn)
»
Q3 2017 net income of SAR 56 mn (Q3 2016: SAR 59.3 mn)
»
Almarai recorded quarterly net income of SAR 667 mn
4
GROUP – CONSOLIDATED FINANCIAL SNAPSHOT
Revenue
Gross Profit
EBIT
Net Income
Adjusted Net Income
SAR Mn
Q3 2017
5,663
1,042
280
829
135.1
-8.0% vs. LY
-11.9% vs. LY
-20.9% vs. LY
+361.8% vs. LY
-24.7% vs. LY
YTD 2017
18,208
3,222
712
1,063
316
-7.7% vs. LY
-15.0% vs. LY
-38.2% vs. LY
+92.5% vs. LY
-44.8% vs. LY
5
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR Mn
YoY Sales
Margin
Growth YTD Sales -8%
-8%
-6%
-9%
6,422
5,833
7,141
6,711
6,154
5,663
Q1 2016
Q1 2017
Q2 2016
Q2 2017
Q3 2016
Q3 2017
YoY Gross Profit
19,717
18,208
YTD 2016
YTD 2017
YTD Gross Profit -15%
-14%
-18%
1,273
1,040
Q1 2016
Q1 2017
19.8%
17.8%
-12%
3,788
1,333
1,140
1,183
1,042
Q2 2016
Q2 2017
Q3 2016
Q3 2017
17.0%
19.2%
18.7%
Note: the figures presented in the charts are rounded
18.4%
3,222
YTD 2016
YTD 2017
19.2%
17.7% 6
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR Mn
YoY EBITDA
Margin
Growth
YTD EBITDA -24%
-36%
-35%
+5% 1,683 1,284
683
512
440
488
512
Q2 2017
Q3 2016
Q3 2017
YTD 2016
YTD 2017
6.6%
7.9%
9.0%
8.5%
7.1%
332 Q1 2016
Q1 2017
8.0%
5.7%
Q2 2016 9.6%
YoY Net Profit
YTD Net Profit +93% +362%
-10%
-96%
1,063
829 119 Q1 2016 1.9%
254 Q1 2017 0.1%
552
229
5
180 Q2 2016 3.6%
Note: the figures presented in the charts are rounded
Q2 2017
Q3 2016
Q3 2017
YTD 2016
YTD 2017
3.4%
2.9%
14.6%
2.8%
5.8% 7
GROUP – CONSOLIDATED REVENUE MIX, NET DEBT & CAPEX SAR Bn
Revenue by Business
YTD 2016 SAR 19.7 Bn
Net Debt
YTD 2017 SAR 18.2 Bn
4.4%
-18%
4.6% 43.9%
51.8%
8,035
Foods Food Services
6,603
47.7%
Retail
47.7% Sep/16
Revenue by Geography
CAPEX
YTD 2017 SAR 18.2 Bn
YTD 2016 SAR 19.7 Bn
8.7%
-68%
7.5%
8.4% 9.6%
Sep/17
KSA
11.1%
Egypt
1,132
8.8%
Iran Others
73.3%
357
72.6% YTD 2016
YTD 2017 8
91
YTD 2017 Adjusted NI
62
Gain on Sale of Marai Shares
1,063
Share of impairment loss from an associate
25
Capital Gain on Sale of Hyper Panda UAE
Dilution Gain on USCE
Adjusted YTD 2016 Net Income
YTD 2017 reported NI
36
YTD 2016 Adjusted NI
7
Panda inventory adjustments
24
Panda Egypt losses
Pandati store closures cost
USD sourcing SFC
20
SFC FX impact
552
Share of associate’s liability
39
YTD 2016 IFRS adjusted NI
513
IFRS Adjustment
YTD 2016 reported NI
IMPLICATIONS OF EXCEPTIONAL ITEMS SAR Mn
Adjusted YTD 2017 Net Income
-63%
34
865
134 694
316
9
PANDA RETAIL COMPANY
RETAIL – HIGHLIGHTS • The transformation exercise initiated last year is ongoing with several initiatives running concurrently. • Six Pandati stores and three supermarkets closed in Q3 2017. Total retail selling space decreased by -0.06% in Q3 2017 from Dec 2016
• LFL sales dropped owing mainly to a reduction in basket size across both hypermarket and supermarket formats. This is mainly attributable to a consumer preference to buy promotional items. • Reported net loss for Q3 2017 for Retail was SAR 219 million, compared to SAR 142 million last year.
11
RETAIL - SNAPSHOT
Revenue
Gross Profit
Net Loss
Adjusted Net Loss
Selling Space
SAR m
Q3 2017 YTD 2017
2,708
558
(219)
(219)
-14.7% vs. LY
-15.0% vs. LY
Q3 2016 : (142)
Q3 2016 : (142)
8,818
1,673
(608)
(670)
-14.6% vs. LY
-21.6% vs. LY
YTD 2016: (268)
YTD 2016: (268)
Reduced by 6,791 m2
Total Space 752,303 m2
12
RETAIL – FINANCIAL HIGHLIGHTS
Margin
Growth
SAR Mn
YoY Sales
YTD Sales -15%
-13% -17%
-15% 10,320
3,874 3,271
3,389
2,721
Q1 2016
Q1 2017
Q2 2016
Q2 2017
3,175
2,708
Q3 2016
Q3 2017
YoY Gross Profit
8,818
YTD 2016
YTD 2017
YTD Gross Profit -22%
-29%
741
-20%
529
Q1 2016
Q1 2017
22.7%
19.5%
735
Q2 2016 19.0%
Note: the figures presented in the charts are rounded
-15% 2,133
1,673
586
656
558
Q2 2017
Q3 2016
Q3 2017
YTD 2016
YTD 2017
17.3%
20.7%
20.6%
20.7%
19.0% 13
RETAIL – FINANCIAL HIGHLIGHTS
Margin
SAR Mn
YoY EBITDA
99
YTD EBITDA 115
40
(18)
(84)
(75) (106) (245)
Q1 2016
Q1 2017
3.0%
-3.1%
Q2 2016 1.0%
Q2 2017
Q3 2016
Q3 2017
YTD 2016
YTD 2017
-3.1%
-0.6%
-2.8%
1.1%
-2.8%
YoY Net Profit
(32)
(94)
(160)
YTD Net Profit
(219)
(230)
Q1 2016 -1.0%
Q1 2017 -8.4%
Q2 2016 -2.4%
Note: the figures presented in the charts are rounded
(268)
(142)
(608)
Q2 2017
Q3 2016
Q3 2017
YTD 2016
YTD 2017
-4.7%
-4.5%
-8.1%
-2.6%
-6.9% 14
RETAIL – NUMBER OF STORES BY QUARTER Hyper Hyper
Super 4 in Egypt
1 KSA 1 Egypt
163
2
(3)
KSA Hyper
162 66
Dec 2016
Q1 ’17
Q2 ’17
Q3 Closures YTD ’17 ’17
Dec 2016
UAE Hyper
Egypt Hyper
67
1
1
(1)
Q1 ’17
Q2 ’17
Q3 Closures YTD ’17 ’17
Total Total
Pandati
Selling Area 752,303 m2
Selling Area 752,784 m2
(YTD Decline: -0.1%)
181
Dec 2016
Q1 ’17
175
1
(7)
Q2 ’17
Q3 Closures YTD ’17 ’17
410
Dec 2016
3
2
Q1 ’17
Q2 ’17
404 (11)
Q3 Closures YTD ’17 ’17 15
SAVOLA FOODS
FOODS – HIGHLIGHTS • Q3 2017 total revenue of SAR 2.71 billion is 0.2% below Q3 2016 revenue of SAR 2.72 billion while YTD September 2017 revenue was 8.8 billion vs. YTD September 2016 revenue of 8.7 billion (+0.8%)
• Total volume of 2,535 k MT 0.8% below September YTD 2016 attributed to the following: • Oil volumes increased by 1.9%
• Sugar volumes decreased by 3.1% • Pasta volumes decreased by 3.1% • Reported net income for Q3 2017 for Food was SAR 106 million.
17
FOODS - SNAPSHOT
Revenue
Gross Profit
EBIT
Net Income
SAR m
Adjusted Net Income
Q3 2017
2,712
397
188
106
106
-0.2% vs. LY
-8.0% vs. LY
-8.5% vs. LY
+4.5% vs. LY
+4.5% vs. LY
YTD 2017
8,812
1,303
641
409
393
+0.8% vs. LY
-7.0% vs. LY
-9.0% vs. LY
+16.6% vs. LY
+12.2% vs. LY
18
FOODS – FINANCIAL HIGHLIGHTS
Margin
Growth
SAR Mn
YoY Sales
YTD Sales +1%
+1% +1% -0.2%
2,925
2,954
Q1 2016
Q1 2017
8,745
8,812
YTD 2016
YTD 2017
3,146
3,103
Q2 2016
Q2 2017
2,717
2,712
Q3 2016
Q3 2017
YoY Gross Profit
YTD Gross Profit -7%
-8%
-5%
-8% 523
481
432
397
1,401
1,303
447
425
Q1 2016
Q1 2017
Q2 2016
Q2 2017
Q3 2016
Q3 2017
YTD 2016
YTD 2017
15.3%
14.4%
16.9%
15.3%
15.9%
14.6%
16.0%
14.8%
Note: the figures presented in the charts are rounded
19
FOODS – FINANCIAL HIGHLIGHTS
Margin
Growth
SAR Mn
YoY EBITDA
YTD EBITDA -7%
-11%
-2%
-12% 339
303
232
227
821
759
261
229
Q1 2016
Q1 2017
Q2 2016
Q2 2017
Q3 2016
Q3 2017
YTD 2016
YTD 2017
8.9%
7.8%
10.9%
9.6%
8.5%
8.4%
9.4%
8.6%
YoY Net Profit
YTD Net Profit
+34%
+5%
+5% +17%
106
111
144
192
101
106
351
409
Q1 2016
Q1 2017
Q2 2016
Q2 2017
Q3 2016
Q3 2017
YTD 2016
YTD 2017
3.6%
3.7%
4.6%
6.1%
3.7%
3.9%
4.0%
4.6%
Note: the figures presented in the charts are rounded
20
FOODS – OIL SEGMENT ANALYSIS SAR Mn
Volume (MT 000)
Revenues
+1.9%
1,170 5%
+0.5%
1,192 5%
5%
4%
8%
9%
9%
9%
31%
15%
28%
5,978
5,949
30%
13%
6%
4% 4%
11%
4%
10%
Morocco YoY +5%
Morocco YoY +12%
Sudan YoY +11%
Sudan YoY +13%
32%
34%
Algeria YoY +14%
Algeria YoY +20%
Turkey YoY +4%
Turkey YoY -7%
15%
Iran YoY -1%
29%
5% 7%
Egypt YoY -9%
28%
11%
29%
KSA YoY +5%
YTD 2016
YTD 2017
Note: the figures presented in the charts are rounded
Iran YoY +6% Egypt YoY -26% KSA YoY +4%
YTD 2016
YTD 2017 21
FOODS – SUGAR SEGMENT ANALYSIS SAR Mn
Volume (MT ‘000) (1)
Revenues (1) KSA YoY -3%
KSA YoY +6%
Egypt YoY -4% -3.1%
1,166
Egypt YoY +6%
+6.2%
2,515 1,130
2,367
88%
88%
88%
12%
12%
12%
12%
YTD 2016
YTD 2017
YTD 2016
YTD 2017
88%
(1) Sugar volumes and revenues include only the contribution from sugar operations (USC and ASC).
22
FINANCIAL SUMMARY
FINANCIALS – YTD September 2017 (all figures are in SAR millions) Segment Wise Financials YTD - 2017 Revenue Food Oil-Mature Markets Oil-Start-up Markets* Total Oil
Gross Profit
EBIT
YTD - 2016 (Represented) Net Income
EBITDA
Revenue
Gross Profit
EBIT
Net Income
EBITDA
5,037 941 5,978
866 109 976
383 41 424
275 23 298
433 50 484
5,134 815 5,949
1,029 103 1,131
562 35 597
371 20 390
610 45 655
Sugar
2,523
285
201
102
249
2,367
169
53
(77)
99
Pasta
310
42
17
9
27
429
100
55
37
67
8,812
1,303
641
409
759
8,745
1,401
705
351
821
8,669 149 8,818
1,657 17 1,673
(609) (19) (627)
(656) 48 (608)
(230) (15) (245)
10,068 252 10,320
2,086 48 2,133
(207) (2) (209)
(264) (4) (268)
114 2 115
163 (26) 607 (47)
152 (26) 607 529
216 (26) 607 (28)
170 16 590 (121)
162 16 590 (299)
235 16 590 (93)
Total Foods Retail KSA Overseas Total Retail Herfy Real Estate Al Marai-Savola Share HQ/Elimination/Impairments Total
859 (281) 18,208
Adjustments Gain on Sale of USCE Share of Associates Liability Gain on Sale of Hyper Panda UAE Gain on Sale of 2% of Al Marai Share of impairment Loss from an Associate Adjusted Profit
252 (7) 3,222
712
1,063 (25) (62) (694) 34 316
1,284
876 (224) 19,717
257 (3) 3,788
1,151
552
1,683
20 573
* Start-up markets include Algeria, Morocco and Sudan Note: YTD 2016 net income has been adjusted for IFRS, whereas Adjusted Profit excludes the impact of both SFC FX impact, USD sourcing and Panda one off items shown earlier in slide 9.
24
www.savola.com
DISCLAIMER This presentation contains forward-looking statements which may be identified by the use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, market position, expenditures, and financial results, are forward looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The Savola Group (Savola or Group), its subsidiaries and its affiliates (the “Companies”) referred to in this presentation cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements of the Companies, could thus differ materially from those projected in any such forward-looking statements. The Companies assume no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events, or otherwise. The Q3 2017 numbers are based on interim unaudited financials.
2
GROUP – HIGHLIGHTS • In Q3 2017, the Group reported a net profit of SAR 829 million; with adjusted net profit of SAR 135.1 million after deducting the capital gain of SAR 693.9 million from the sale of 2% of Almarai shares. • Savola’s retail segment recorded a net loss of SAR 218.8 million for the quarter. The turnaround is ongoing; the business has maintained the negative working capital position and cash flow from operations is positive. • Within the food segment, revenues continue to be stable and the segment recorded a net profit of SAR 105.7 million for the quarter. Operationally, Egypt continues to be challenging due to the economic conditions. • Herfy recorded a net income of SAR 56 million for the quarter, a decline of 5.5% compared to the same quarter last year.
• Almarai continues to perform well with a profit of SAR 667 million in Q3, translating into SAR 241.4 million net income contribution to the Group.
3
Q3 2017 - SNAPSHOT
GROUP
RETAIL
FOODS
HERFY
INVESTMENTS
»
Q3 2017 revenue of SAR 5.7 bn (Q3 2016: SAR 6.2 bn)
»
Q3 2017 net income SAR 829 mn (Q3 2016: SAR 179.5 mn)
»
Adjusted net income of SAR 135.1 mn after gain of sale of Almarai shares
»
Q3 2017 revenue of SAR 2.7 bn (Q3 2016: SAR 3.2 bn)
»
Q3 2017 net loss of SAR 218.8 mn (Q3 2016: Net loss of SAR 142.4 mn)
»
Q3 2017 revenue of SAR 2.7 bn (Q3 2016: 2.7 bn)
»
Q3 2017 net income of SAR 105.7 mn (Q3 2016: SAR 101.2 mn)
»
Q3 2017 revenue of SAR 311.7 mn (Q3 2016: SAR 315.2 mn)
»
Q3 2017 net income of SAR 56 mn (Q3 2016: SAR 59.3 mn)
»
Almarai recorded quarterly net income of SAR 667 mn
4
GROUP – CONSOLIDATED FINANCIAL SNAPSHOT
Revenue
Gross Profit
EBIT
Net Income
Adjusted Net Income
SAR Mn
Q3 2017
5,663
1,042
280
829
135.1
-8.0% vs. LY
-11.9% vs. LY
-20.9% vs. LY
+361.8% vs. LY
-24.7% vs. LY
YTD 2017
18,208
3,222
712
1,063
316
-7.7% vs. LY
-15.0% vs. LY
-38.2% vs. LY
+92.5% vs. LY
-44.8% vs. LY
5
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR Mn
YoY Sales
Margin
Growth YTD Sales -8%
-8%
-6%
-9%
6,422
5,833
7,141
6,711
6,154
5,663
Q1 2016
Q1 2017
Q2 2016
Q2 2017
Q3 2016
Q3 2017
YoY Gross Profit
19,717
18,208
YTD 2016
YTD 2017
YTD Gross Profit -15%
-14%
-18%
1,273
1,040
Q1 2016
Q1 2017
19.8%
17.8%
-12%
3,788
1,333
1,140
1,183
1,042
Q2 2016
Q2 2017
Q3 2016
Q3 2017
17.0%
19.2%
18.7%
Note: the figures presented in the charts are rounded
18.4%
3,222
YTD 2016
YTD 2017
19.2%
17.7% 6
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR Mn
YoY EBITDA
Margin
Growth
YTD EBITDA -24%
-36%
-35%
+5% 1,683 1,284
683
512
440
488
512
Q2 2017
Q3 2016
Q3 2017
YTD 2016
YTD 2017
6.6%
7.9%
9.0%
8.5%
7.1%
332 Q1 2016
Q1 2017
8.0%
5.7%
Q2 2016 9.6%
YoY Net Profit
YTD Net Profit +93% +362%
-10%
-96%
1,063
829 119 Q1 2016 1.9%
254 Q1 2017 0.1%
552
229
5
180 Q2 2016 3.6%
Note: the figures presented in the charts are rounded
Q2 2017
Q3 2016
Q3 2017
YTD 2016
YTD 2017
3.4%
2.9%
14.6%
2.8%
5.8% 7
GROUP – CONSOLIDATED REVENUE MIX, NET DEBT & CAPEX SAR Bn
Revenue by Business
YTD 2016 SAR 19.7 Bn
Net Debt
YTD 2017 SAR 18.2 Bn
4.4%
-18%
4.6% 43.9%
51.8%
8,035
Foods Food Services
6,603
47.7%
Retail
47.7% Sep/16
Revenue by Geography
CAPEX
YTD 2017 SAR 18.2 Bn
YTD 2016 SAR 19.7 Bn
8.7%
-68%
7.5%
8.4% 9.6%
Sep/17
KSA
11.1%
Egypt
1,132
8.8%
Iran Others
73.3%
357
72.6% YTD 2016
YTD 2017 8
91
YTD 2017 Adjusted NI
62
Gain on Sale of Marai Shares
1,063
Share of impairment loss from an associate
25
Capital Gain on Sale of Hyper Panda UAE
Dilution Gain on USCE
Adjusted YTD 2016 Net Income
YTD 2017 reported NI
36
YTD 2016 Adjusted NI
7
Panda inventory adjustments
24
Panda Egypt losses
Pandati store closures cost
USD sourcing SFC
20
SFC FX impact
552
Share of associate’s liability
39
YTD 2016 IFRS adjusted NI
513
IFRS Adjustment
YTD 2016 reported NI
IMPLICATIONS OF EXCEPTIONAL ITEMS SAR Mn
Adjusted YTD 2017 Net Income
-63%
34
865
134 694
316
9
PANDA RETAIL COMPANY
RETAIL – HIGHLIGHTS • The transformation exercise initiated last year is ongoing with several initiatives running concurrently. • Six Pandati stores and three supermarkets closed in Q3 2017. Total retail selling space decreased by -0.06% in Q3 2017 from Dec 2016
• LFL sales dropped owing mainly to a reduction in basket size across both hypermarket and supermarket formats. This is mainly attributable to a consumer preference to buy promotional items. • Reported net loss for Q3 2017 for Retail was SAR 219 million, compared to SAR 142 million last year.
11
RETAIL - SNAPSHOT
Revenue
Gross Profit
Net Loss
Adjusted Net Loss
Selling Space
SAR m
Q3 2017 YTD 2017
2,708
558
(219)
(219)
-14.7% vs. LY
-15.0% vs. LY
Q3 2016 : (142)
Q3 2016 : (142)
8,818
1,673
(608)
(670)
-14.6% vs. LY
-21.6% vs. LY
YTD 2016: (268)
YTD 2016: (268)
Reduced by 6,791 m2
Total Space 752,303 m2
12
RETAIL – FINANCIAL HIGHLIGHTS
Margin
Growth
SAR Mn
YoY Sales
YTD Sales -15%
-13% -17%
-15% 10,320
3,874 3,271
3,389
2,721
Q1 2016
Q1 2017
Q2 2016
Q2 2017
3,175
2,708
Q3 2016
Q3 2017
YoY Gross Profit
8,818
YTD 2016
YTD 2017
YTD Gross Profit -22%
-29%
741
-20%
529
Q1 2016
Q1 2017
22.7%
19.5%
735
Q2 2016 19.0%
Note: the figures presented in the charts are rounded
-15% 2,133
1,673
586
656
558
Q2 2017
Q3 2016
Q3 2017
YTD 2016
YTD 2017
17.3%
20.7%
20.6%
20.7%
19.0% 13
RETAIL – FINANCIAL HIGHLIGHTS
Margin
SAR Mn
YoY EBITDA
99
YTD EBITDA 115
40
(18)
(84)
(75) (106) (245)
Q1 2016
Q1 2017
3.0%
-3.1%
Q2 2016 1.0%
Q2 2017
Q3 2016
Q3 2017
YTD 2016
YTD 2017
-3.1%
-0.6%
-2.8%
1.1%
-2.8%
YoY Net Profit
(32)
(94)
(160)
YTD Net Profit
(219)
(230)
Q1 2016 -1.0%
Q1 2017 -8.4%
Q2 2016 -2.4%
Note: the figures presented in the charts are rounded
(268)
(142)
(608)
Q2 2017
Q3 2016
Q3 2017
YTD 2016
YTD 2017
-4.7%
-4.5%
-8.1%
-2.6%
-6.9% 14
RETAIL – NUMBER OF STORES BY QUARTER Hyper Hyper
Super 4 in Egypt
1 KSA 1 Egypt
163
2
(3)
KSA Hyper
162 66
Dec 2016
Q1 ’17
Q2 ’17
Q3 Closures YTD ’17 ’17
Dec 2016
UAE Hyper
Egypt Hyper
67
1
1
(1)
Q1 ’17
Q2 ’17
Q3 Closures YTD ’17 ’17
Total Total
Pandati
Selling Area 752,303 m2
Selling Area 752,784 m2
(YTD Decline: -0.1%)
181
Dec 2016
Q1 ’17
175
1
(7)
Q2 ’17
Q3 Closures YTD ’17 ’17
410
Dec 2016
3
2
Q1 ’17
Q2 ’17
404 (11)
Q3 Closures YTD ’17 ’17 15
SAVOLA FOODS
FOODS – HIGHLIGHTS • Q3 2017 total revenue of SAR 2.71 billion is 0.2% below Q3 2016 revenue of SAR 2.72 billion while YTD September 2017 revenue was 8.8 billion vs. YTD September 2016 revenue of 8.7 billion (+0.8%)
• Total volume of 2,535 k MT 0.8% below September YTD 2016 attributed to the following: • Oil volumes increased by 1.9%
• Sugar volumes decreased by 3.1% • Pasta volumes decreased by 3.1% • Reported net income for Q3 2017 for Food was SAR 106 million.
17
FOODS - SNAPSHOT
Revenue
Gross Profit
EBIT
Net Income
SAR m
Adjusted Net Income
Q3 2017
2,712
397
188
106
106
-0.2% vs. LY
-8.0% vs. LY
-8.5% vs. LY
+4.5% vs. LY
+4.5% vs. LY
YTD 2017
8,812
1,303
641
409
393
+0.8% vs. LY
-7.0% vs. LY
-9.0% vs. LY
+16.6% vs. LY
+12.2% vs. LY
18
FOODS – FINANCIAL HIGHLIGHTS
Margin
Growth
SAR Mn
YoY Sales
YTD Sales +1%
+1% +1% -0.2%
2,925
2,954
Q1 2016
Q1 2017
8,745
8,812
YTD 2016
YTD 2017
3,146
3,103
Q2 2016
Q2 2017
2,717
2,712
Q3 2016
Q3 2017
YoY Gross Profit
YTD Gross Profit -7%
-8%
-5%
-8% 523
481
432
397
1,401
1,303
447
425
Q1 2016
Q1 2017
Q2 2016
Q2 2017
Q3 2016
Q3 2017
YTD 2016
YTD 2017
15.3%
14.4%
16.9%
15.3%
15.9%
14.6%
16.0%
14.8%
Note: the figures presented in the charts are rounded
19
FOODS – FINANCIAL HIGHLIGHTS
Margin
Growth
SAR Mn
YoY EBITDA
YTD EBITDA -7%
-11%
-2%
-12% 339
303
232
227
821
759
261
229
Q1 2016
Q1 2017
Q2 2016
Q2 2017
Q3 2016
Q3 2017
YTD 2016
YTD 2017
8.9%
7.8%
10.9%
9.6%
8.5%
8.4%
9.4%
8.6%
YoY Net Profit
YTD Net Profit
+34%
+5%
+5% +17%
106
111
144
192
101
106
351
409
Q1 2016
Q1 2017
Q2 2016
Q2 2017
Q3 2016
Q3 2017
YTD 2016
YTD 2017
3.6%
3.7%
4.6%
6.1%
3.7%
3.9%
4.0%
4.6%
Note: the figures presented in the charts are rounded
20
FOODS – OIL SEGMENT ANALYSIS SAR Mn
Volume (MT 000)
Revenues
+1.9%
1,170 5%
+0.5%
1,192 5%
5%
4%
8%
9%
9%
9%
31%
15%
28%
5,978
5,949
30%
13%
6%
4% 4%
11%
4%
10%
Morocco YoY +5%
Morocco YoY +12%
Sudan YoY +11%
Sudan YoY +13%
32%
34%
Algeria YoY +14%
Algeria YoY +20%
Turkey YoY +4%
Turkey YoY -7%
15%
Iran YoY -1%
29%
5% 7%
Egypt YoY -9%
28%
11%
29%
KSA YoY +5%
YTD 2016
YTD 2017
Note: the figures presented in the charts are rounded
Iran YoY +6% Egypt YoY -26% KSA YoY +4%
YTD 2016
YTD 2017 21
FOODS – SUGAR SEGMENT ANALYSIS SAR Mn
Volume (MT ‘000) (1)
Revenues (1) KSA YoY -3%
KSA YoY +6%
Egypt YoY -4% -3.1%
1,166
Egypt YoY +6%
+6.2%
2,515 1,130
2,367
88%
88%
88%
12%
12%
12%
12%
YTD 2016
YTD 2017
YTD 2016
YTD 2017
88%
(1) Sugar volumes and revenues include only the contribution from sugar operations (USC and ASC).
22
FINANCIAL SUMMARY
FINANCIALS – YTD September 2017 (all figures are in SAR millions) Segment Wise Financials YTD - 2017 Revenue Food Oil-Mature Markets Oil-Start-up Markets* Total Oil
Gross Profit
EBIT
YTD - 2016 (Represented) Net Income
EBITDA
Revenue
Gross Profit
EBIT
Net Income
EBITDA
5,037 941 5,978
866 109 976
383 41 424
275 23 298
433 50 484
5,134 815 5,949
1,029 103 1,131
562 35 597
371 20 390
610 45 655
Sugar
2,523
285
201
102
249
2,367
169
53
(77)
99
Pasta
310
42
17
9
27
429
100
55
37
67
8,812
1,303
641
409
759
8,745
1,401
705
351
821
8,669 149 8,818
1,657 17 1,673
(609) (19) (627)
(656) 48 (608)
(230) (15) (245)
10,068 252 10,320
2,086 48 2,133
(207) (2) (209)
(264) (4) (268)
114 2 115
163 (26) 607 (47)
152 (26) 607 529
216 (26) 607 (28)
170 16 590 (121)
162 16 590 (299)
235 16 590 (93)
Total Foods Retail KSA Overseas Total Retail Herfy Real Estate Al Marai-Savola Share HQ/Elimination/Impairments Total
859 (281) 18,208
Adjustments Gain on Sale of USCE Share of Associates Liability Gain on Sale of Hyper Panda UAE Gain on Sale of 2% of Al Marai Share of impairment Loss from an Associate Adjusted Profit
252 (7) 3,222
712
1,063 (25) (62) (694) 34 316
1,284
876 (224) 19,717
257 (3) 3,788
1,151
552
1,683
20 573
* Start-up markets include Algeria, Morocco and Sudan Note: YTD 2016 net income has been adjusted for IFRS, whereas Adjusted Profit excludes the impact of both SFC FX impact, USD sourcing and Panda one off items shown earlier in slide 9.
24
