Earnings Presentation
Earnings Presentation Q2 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 Q2 2017 numbers are based on interim unaudited financials.
2
GROUP – HIGHLIGHTS • In Q2 2017, the Group reported a net profit of SAR 229.3 million; with adjusted net profit of SAR 201.1 million after deducting the capital gain from lease rights of SAR 62.0 million and adding back share of impairment loss of SAR 33.8 million from an associate.
• Savola’s retail segment recorded a net loss of SAR 160 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 192 million for the quarter. Operationally, Egypt continues to be challenging due to the economic conditions • Herfy recorded a net income of SAR 43 million for the quarter, a decline of 12.3% compared to the same quarter last year. • Almarai continues to perform well with a record Q2 profit of SAR 674 million, translating into SAR 246.2 million net income contribution to the Group.
3
Q2 2017 - SNAPSHOT
GROUP
RETAIL
FOODS
HERFY
INVESTMENTS
»
Q2 2017 revenue of SAR 6.7 bn (Q2 2016: SAR 7.1 bn)
»
Q2 2017 net income SAR 229.3 mn (Q2 2016: SAR 253.5 mn)
»
Adjusted net income of SAR 201.1 mn after gain of sale of lease rights and share of impairment loss from an associate
»
Q2 2017 revenue of SAR 3.4 bn (Q2 2016: SAR 3.9 bn)
»
Q2 2017 net loss of SAR 160.2 mn (Q2 2016: Net loss of SAR 93.8 mn)
»
Q2 2017 revenue of SAR 3.15 bn (Q2 2016: 3.1 bn)
»
Q2 2017 net income of SAR 192.3 mn (Q2 2016: SAR 143.6 mn)
»
Q2 2017 revenue of SAR 272.1 mn (Q2 2016: SAR 277.7 mn)
»
Q2 2017 net income of SAR 43.4 mn (Q2 2016: SAR 49.5 mn)
»
Almarai recorded highest quarterly net income on record of SAR 674.1 mn
4
GROUP – CONSOLIDATED FINANCIAL SNAPSHOT
Revenue
Gross Profit
EBIT
Net Income
Adjusted Net Income
SAR Mn
Q2 2017
6,711
1,140
293
229
201
-6.0% vs. LY
-14.5% vs. LY
-36.2% vs. LY
-9.5% vs. LY
Q2 2016: 319
YTD 2017
12,544
2,180
431
234
181
-7.5% vs. LY
-16.3% vs. LY
-45.9% vs. LY
-37.2% vs. LY
YTD 2016: 580
5
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR Mn
YoY Sales
Margin
Growth YTD Sales -8%
-6% -9%
6,422
5,833
Q1 2016
Q1 2017
7,141
6,711
Q2 2016
Q2 2017
YoY Gross Profit
13,563
12,544
YTD 2016
YTD 2017
YTD Gross Profit -14%
-18%
-16% 1,273
1,040
1,333
1,140
Q1 2016
Q1 2017
Q2 2016
Q2 2017
19.8%
17.8%
18.7%
17.0%
Note: the figures presented in the charts are rounded
2,606
2,180
YTD 2016
YTD 2017
19.2%
17.4% 6
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR Mn
YoY EBITDA
Margin
Growth
YTD EBITDA -35%
-36% 1,195
-35%
772
683 512
440
332
Q1 2016
Q1 2017
8.0%
Q2 2016
5.7%
Q2 2017
9.6%
6.6%
YoY Net Profit
YTD 2016
YTD 2017
8.8%
6.1%
YTD Net Profit -10%
-96%
-37% 254
119
229
373
234
5 Q1 2016 1.9%
Q1 2017 0.1%
Note: the figures presented in the charts are rounded
Q2 2016 3.6%
Q2 2017 3.4%
YTD 2016
YTD 2017
2.8%
1.9% 7
GROUP – CONSOLIDATED REVENUE MIX, NET DEBT & CAPEX SAR Bn
Revenue by Business
YTD 2016 SAR 13.6 Bn
Net Debt
YTD 2017 SAR 12.5 Bn
4.1%
-3%
4.3% 43.9%
52.0%
Foods Retail Food Services
7,689
7,456
Jun-16
Jun-17
47.8% 47.9%
Revenue by Geography
YTD 2016 SAR 13.6 Bn
CAPEX
YTD 2017 SAR 12.5 Bn 7.5%
9.3% 9.1%
8.7%
-74%
10.9%
KSA
8.8%
Egypt Iran
72.9%
Others
928 239
72.7% YTD 2016
YTD 2017 8
IMPLICATIONS OF EXCEPTIONAL ITEMS SAR Mn
Adjusted YTD 2017 Net Income
Adjusted YTD 2016 Net Income
-69%
580 98 89 340
33
20
234 (25) (62)
YTD 2016 IFRS Share of reported NI Adjustment associate’s (SOCPA) liability
FX Fee Impact
USD Sourcing
YTD 2016 Adjusted NI
YTD 2017 reported NI
Dilution Gain on USCE
181 34
Capital Share of YTD 2017 Gain on impairment Adjusted Sale of loss from NI Hyper an Panda UAE associate
9
PANDA RETAIL COMPANY
RETAIL - SNAPSHOT
Revenue
Gross Profit
Net Loss
Adjusted Net Loss
Selling Space
SAR m
Q2 2017 YTD 2017
3,389
586
(160)
(228)
-12.5% vs. LY
-20.3% vs. LY
Q2 2016 : (94)
Added 6,310 m2
Q2 2016 : (94)
0.8% vs. FY 2016
6,110
1,115
(390)
(458)
-14.5% vs. LY
-24.5% vs. LY
YTD 2016: (125)
YTD 2016: (125)
Total Space 759,094 m2
11
RETAIL – HIGHLIGHTS • The transformation exercise initiated last year is ongoing with several initiatives running concurrently. • Q2 witnessed the sale of Hyper in UAE and the opening of a new Hyper in Egypt. One Pandati store opened and another closed in Q2 2017. Total retail selling space increased by 0.8% in Q2 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 Q2 2017 for Retail was SAR 160 million, with an adjusted loss of SAR 228 million
12
RETAIL – FINANCIAL HIGHLIGHTS
Margin
Growth
SAR Mn
YoY Sales
YTD Sales -14%
-13% -17%
7,145
3,271
2,721
Q1 2016
Q1 2017
3,874
3,389
Q2 2016
Q2 2017
YoY Gross Profit
6,110
YTD 2016
YTD 2017
YTD Gross Profit -20%
-29%
-24% 741
735
529
586
Q1 2016
Q1 2017
Q2 2016
Q2 2017
22.7%
19.5%
19.0%
17.3%
Note: the figures presented in the charts are rounded
1,476
1,115
YTD 2016
YTD 2017
20.7%
18.2% 13
RETAIL – FINANCIAL HIGHLIGHTS
Margin
SAR Mn
YoY EBITDA
YTD EBITDA
139
99
40 (84)
Q1 2016
(106)
Q1 2017 Q2 2016
3.0%
-3.1%
1.0%
Q2 2017 -3.1%
YoY Net Profit
-8.4%
Note: the figures presented in the charts are rounded
1.9%
-3.1%
(160)
(230)
-1.0%
YTD 2017
(126)
(94)
Q1 2017
YTD 2016
YTD Net Profit
(32)
Q1 2016
(190)
Q2 2016
-2.4%
(390)
Q2 2017
-4.7%
YTD 2016
YTD 2017
-1.7%
-6.4% 14
RETAIL – NUMBER OF STORES BY QUARTER Hyper Hyper
Super 4 in Egypt
1 KSA 1 Egypt
163
165
2
66
Dec 2016
Q1 ’17
Q2 ’17
Closures
Q2 ’17
Dec 2016
KSA Hyper
Egypt Hyper
UAE Hyper
1
1
(1)
Q1 ’17
Q2 ’17
Closures
67
Q2 ’17
Total Total
Pandati
Selling Area 759,094 m2
Selling Area 752,784 m2
(YTD Growth: 0.8%)
410 181
Dec 2016
Q1 ’17
1
(1)
Q2 ’17
Closures
3
2
(2)
Q1 ’17
Q2 ’17
Closures
413
181
Q2 ’17
Dec 2016
Q2 ’17 15
SAVOLA FOODS
FOODS – HIGHLIGHTS • Q2 2017 total revenue of SAR 3.15 billion is 1.4% above Q2 2016 revenue of SAR 3.10 billion while YTD June 2017 revenue was 6.1 billion vs. YTD June 2016 revenue of 6.0 billion (+1.2%) • Total volume of 1,771 k MT 1.9% below June YTD 2016 mainly due to: • overall volume decline in Egypt attributable to seasonal effect and focus on premium oil segment • Marginally lower sugar volumes in KSA due to maintenance down time • Pasta YTD June 2017 volume is 140 k MT, a decrease of 9.1% compared the same period last year. Revenue is SAR 200 million representing a decrease of 33.8%. • Reported net income for Q2 2017 for Food was SAR 192.3 million
17
FOODS - SNAPSHOT
Revenue
Gross Profit
EBIT
Net Income
SAR m
Adjusted Net Income
Q2 2017
3,146
481
266
192
192
+1.4% vs. LY
-8.0% vs. LY
-3.1% vs. LY
+33.9% vs. LY
-36.8% vs. LY
YTD 2017
6,100
906
454
303
278
+1.2% vs. LY
-6.5% vs. LY
-9.2% vs. LY
+21.5% vs. LY
-32.2% vs. LY
18
FOODS – FINANCIAL HIGHLIGHTS
Margin
Growth
SAR Mn
YoY Sales
YTD Sales +1%
+1% +1%
2,925
2,954
Q1 2016
Q1 2017
3,103
3,146
Q2 2016
Q2 2017
YoY Gross Profit
6,028
6,100
YTD 2016
YTD 2017
YTD Gross Profit
-8%
-5%
-7% 447
Q1 2016 15.3%
425
523
481
Q1 2017
Q2 2016
Q2 2017
14.4%
16.9%
15.3%
Note: the figures presented in the charts are rounded
970
906
YTD 2016
YTD 2017
16.1%
14.9% 19
FOODS – FINANCIAL HIGHLIGHTS
Margin
Growth
SAR Mn
YoY EBITDA
YTD EBITDA -11%
-11%
600
-12%
261
229
Q1 2016
Q1 2017
8.9%
339
303
Q2 2016
Q2 2017
10.9%
7.8%
9.6%
YoY Net Profit
532
YTD 2016
YTD 2017
10.0%
8.7%
YTD Net Profit +34%
+5%
+21% 106
Q1 2016 3.6%
111
Q1 2017 3.7%
Note: the figures presented in the charts are rounded
144
Q2 2016 4.6%
192
Q2 2017 6.1%
250
303
YTD 2016
YTD 2017
4.1%
5.0% 20
FOODS – OIL SEGMENT ANALYSIS SAR Mn
Volume (MT 000)
Revenues +0.2%
-0.2%
817 5%
4%
815 5%
7%
8%
9%
9%
29%
16%
29%
4,107 4%
31%
14%
28%
6%
4% 4%
11%
4,115 4%
4%
7% 10%
Morocco YoY +3% Sudan YoY +1%
Morocco YoY +10%
30%
33%
Algeria YoY +14%
Algeria YoY +20%
Turkey YoY +5%
Turkey YoY -9%
17%
12%
Iran YoY +4%
Iran YoY +11%
Egypt YoY -16%
Egypt YoY -27%
29%
30%
KSA YoY -1%
YTD 2016
YTD 2017
Note: the figures presented in the charts are rounded
Sudan YoY 0%
KSA YoY +4%
YTD 2016
YTD 2017 21
FOODS – SUGAR SEGMENT ANALYSIS SAR Mn
Volume (MT ‘000) (1)
Revenues (1) KSA YoY -2%
KSA YoY +16%
Egypt YoY -38% -7.7%
1,779
821 758
85% 90%
15% YTD 2016
Egypt YoY -24%
+10.1%
10% YTD 2017
1,616
85%
89%
15%
11%
YTD 2016
YTD 2017
(1) Sugar volumes and revenues include only the contribution from sugar operations (USC and ASC). Note: USCE has been deconsolidated; YTD June 2017 USCE volume is 352 K MT (+16% YoY) and revenue is SAR 721 Mn (+36% YoY).
22
FINANCIAL SUMMARY
FINANCIALS – YTD JUNE 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
3,492 623 4,115
611 67 678
288 20 308
224 9 232
321 26 347
3,546 561 4,107
720 77 797
409 28 437
286 18 304
451 35 487
Sugar
1,785
200
136
65
169
1,619
99
25
(81)
69
Pasta
200
27
10
5
17
302
73
38
26
45
6,100
906
454
303
532
6,027
969
500
249
600
5,987 123 6,110
1,101 14 1,115
(417) (10) (427)
(447) 57 (390)
(183) (7) (190)
6,978 167 7,145
1,445 31 1,477
(83) (2) (85)
(120) (5) (125)
137 1 138
103 (33) 366 (32)
96 (33) 366 (109)
134 (33) 366 (38)
108 16 348 (89)
103 16 348 (217)
155 16 348 (62)
431
234
771
797
373
Total Foods Retail KSA Overseas Total Retail Herfy Real Estate Al Marai-Savola Share HQ/Elimination/Impairments Total
547 0 0 (213) 12,544
162 0 0 (3) 2,180
561 0 0 (171) 13,563
162 0 0 (2) 2,606
Adjustments Gain on Sale of USCE Share of Associates Liability Gain on Sale of Hyper Panda UAE Share of impairment Loss from an Associate
(25) (62) 34
-
Adjusted Profit
181
393
1,195
20
* 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 FX fees and USD sourcing 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 Q2 2017 numbers are based on interim unaudited financials.
2
GROUP – HIGHLIGHTS • In Q2 2017, the Group reported a net profit of SAR 229.3 million; with adjusted net profit of SAR 201.1 million after deducting the capital gain from lease rights of SAR 62.0 million and adding back share of impairment loss of SAR 33.8 million from an associate.
• Savola’s retail segment recorded a net loss of SAR 160 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 192 million for the quarter. Operationally, Egypt continues to be challenging due to the economic conditions • Herfy recorded a net income of SAR 43 million for the quarter, a decline of 12.3% compared to the same quarter last year. • Almarai continues to perform well with a record Q2 profit of SAR 674 million, translating into SAR 246.2 million net income contribution to the Group.
3
Q2 2017 - SNAPSHOT
GROUP
RETAIL
FOODS
HERFY
INVESTMENTS
»
Q2 2017 revenue of SAR 6.7 bn (Q2 2016: SAR 7.1 bn)
»
Q2 2017 net income SAR 229.3 mn (Q2 2016: SAR 253.5 mn)
»
Adjusted net income of SAR 201.1 mn after gain of sale of lease rights and share of impairment loss from an associate
»
Q2 2017 revenue of SAR 3.4 bn (Q2 2016: SAR 3.9 bn)
»
Q2 2017 net loss of SAR 160.2 mn (Q2 2016: Net loss of SAR 93.8 mn)
»
Q2 2017 revenue of SAR 3.15 bn (Q2 2016: 3.1 bn)
»
Q2 2017 net income of SAR 192.3 mn (Q2 2016: SAR 143.6 mn)
»
Q2 2017 revenue of SAR 272.1 mn (Q2 2016: SAR 277.7 mn)
»
Q2 2017 net income of SAR 43.4 mn (Q2 2016: SAR 49.5 mn)
»
Almarai recorded highest quarterly net income on record of SAR 674.1 mn
4
GROUP – CONSOLIDATED FINANCIAL SNAPSHOT
Revenue
Gross Profit
EBIT
Net Income
Adjusted Net Income
SAR Mn
Q2 2017
6,711
1,140
293
229
201
-6.0% vs. LY
-14.5% vs. LY
-36.2% vs. LY
-9.5% vs. LY
Q2 2016: 319
YTD 2017
12,544
2,180
431
234
181
-7.5% vs. LY
-16.3% vs. LY
-45.9% vs. LY
-37.2% vs. LY
YTD 2016: 580
5
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR Mn
YoY Sales
Margin
Growth YTD Sales -8%
-6% -9%
6,422
5,833
Q1 2016
Q1 2017
7,141
6,711
Q2 2016
Q2 2017
YoY Gross Profit
13,563
12,544
YTD 2016
YTD 2017
YTD Gross Profit -14%
-18%
-16% 1,273
1,040
1,333
1,140
Q1 2016
Q1 2017
Q2 2016
Q2 2017
19.8%
17.8%
18.7%
17.0%
Note: the figures presented in the charts are rounded
2,606
2,180
YTD 2016
YTD 2017
19.2%
17.4% 6
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR Mn
YoY EBITDA
Margin
Growth
YTD EBITDA -35%
-36% 1,195
-35%
772
683 512
440
332
Q1 2016
Q1 2017
8.0%
Q2 2016
5.7%
Q2 2017
9.6%
6.6%
YoY Net Profit
YTD 2016
YTD 2017
8.8%
6.1%
YTD Net Profit -10%
-96%
-37% 254
119
229
373
234
5 Q1 2016 1.9%
Q1 2017 0.1%
Note: the figures presented in the charts are rounded
Q2 2016 3.6%
Q2 2017 3.4%
YTD 2016
YTD 2017
2.8%
1.9% 7
GROUP – CONSOLIDATED REVENUE MIX, NET DEBT & CAPEX SAR Bn
Revenue by Business
YTD 2016 SAR 13.6 Bn
Net Debt
YTD 2017 SAR 12.5 Bn
4.1%
-3%
4.3% 43.9%
52.0%
Foods Retail Food Services
7,689
7,456
Jun-16
Jun-17
47.8% 47.9%
Revenue by Geography
YTD 2016 SAR 13.6 Bn
CAPEX
YTD 2017 SAR 12.5 Bn 7.5%
9.3% 9.1%
8.7%
-74%
10.9%
KSA
8.8%
Egypt Iran
72.9%
Others
928 239
72.7% YTD 2016
YTD 2017 8
IMPLICATIONS OF EXCEPTIONAL ITEMS SAR Mn
Adjusted YTD 2017 Net Income
Adjusted YTD 2016 Net Income
-69%
580 98 89 340
33
20
234 (25) (62)
YTD 2016 IFRS Share of reported NI Adjustment associate’s (SOCPA) liability
FX Fee Impact
USD Sourcing
YTD 2016 Adjusted NI
YTD 2017 reported NI
Dilution Gain on USCE
181 34
Capital Share of YTD 2017 Gain on impairment Adjusted Sale of loss from NI Hyper an Panda UAE associate
9
PANDA RETAIL COMPANY
RETAIL - SNAPSHOT
Revenue
Gross Profit
Net Loss
Adjusted Net Loss
Selling Space
SAR m
Q2 2017 YTD 2017
3,389
586
(160)
(228)
-12.5% vs. LY
-20.3% vs. LY
Q2 2016 : (94)
Added 6,310 m2
Q2 2016 : (94)
0.8% vs. FY 2016
6,110
1,115
(390)
(458)
-14.5% vs. LY
-24.5% vs. LY
YTD 2016: (125)
YTD 2016: (125)
Total Space 759,094 m2
11
RETAIL – HIGHLIGHTS • The transformation exercise initiated last year is ongoing with several initiatives running concurrently. • Q2 witnessed the sale of Hyper in UAE and the opening of a new Hyper in Egypt. One Pandati store opened and another closed in Q2 2017. Total retail selling space increased by 0.8% in Q2 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 Q2 2017 for Retail was SAR 160 million, with an adjusted loss of SAR 228 million
12
RETAIL – FINANCIAL HIGHLIGHTS
Margin
Growth
SAR Mn
YoY Sales
YTD Sales -14%
-13% -17%
7,145
3,271
2,721
Q1 2016
Q1 2017
3,874
3,389
Q2 2016
Q2 2017
YoY Gross Profit
6,110
YTD 2016
YTD 2017
YTD Gross Profit -20%
-29%
-24% 741
735
529
586
Q1 2016
Q1 2017
Q2 2016
Q2 2017
22.7%
19.5%
19.0%
17.3%
Note: the figures presented in the charts are rounded
1,476
1,115
YTD 2016
YTD 2017
20.7%
18.2% 13
RETAIL – FINANCIAL HIGHLIGHTS
Margin
SAR Mn
YoY EBITDA
YTD EBITDA
139
99
40 (84)
Q1 2016
(106)
Q1 2017 Q2 2016
3.0%
-3.1%
1.0%
Q2 2017 -3.1%
YoY Net Profit
-8.4%
Note: the figures presented in the charts are rounded
1.9%
-3.1%
(160)
(230)
-1.0%
YTD 2017
(126)
(94)
Q1 2017
YTD 2016
YTD Net Profit
(32)
Q1 2016
(190)
Q2 2016
-2.4%
(390)
Q2 2017
-4.7%
YTD 2016
YTD 2017
-1.7%
-6.4% 14
RETAIL – NUMBER OF STORES BY QUARTER Hyper Hyper
Super 4 in Egypt
1 KSA 1 Egypt
163
165
2
66
Dec 2016
Q1 ’17
Q2 ’17
Closures
Q2 ’17
Dec 2016
KSA Hyper
Egypt Hyper
UAE Hyper
1
1
(1)
Q1 ’17
Q2 ’17
Closures
67
Q2 ’17
Total Total
Pandati
Selling Area 759,094 m2
Selling Area 752,784 m2
(YTD Growth: 0.8%)
410 181
Dec 2016
Q1 ’17
1
(1)
Q2 ’17
Closures
3
2
(2)
Q1 ’17
Q2 ’17
Closures
413
181
Q2 ’17
Dec 2016
Q2 ’17 15
SAVOLA FOODS
FOODS – HIGHLIGHTS • Q2 2017 total revenue of SAR 3.15 billion is 1.4% above Q2 2016 revenue of SAR 3.10 billion while YTD June 2017 revenue was 6.1 billion vs. YTD June 2016 revenue of 6.0 billion (+1.2%) • Total volume of 1,771 k MT 1.9% below June YTD 2016 mainly due to: • overall volume decline in Egypt attributable to seasonal effect and focus on premium oil segment • Marginally lower sugar volumes in KSA due to maintenance down time • Pasta YTD June 2017 volume is 140 k MT, a decrease of 9.1% compared the same period last year. Revenue is SAR 200 million representing a decrease of 33.8%. • Reported net income for Q2 2017 for Food was SAR 192.3 million
17
FOODS - SNAPSHOT
Revenue
Gross Profit
EBIT
Net Income
SAR m
Adjusted Net Income
Q2 2017
3,146
481
266
192
192
+1.4% vs. LY
-8.0% vs. LY
-3.1% vs. LY
+33.9% vs. LY
-36.8% vs. LY
YTD 2017
6,100
906
454
303
278
+1.2% vs. LY
-6.5% vs. LY
-9.2% vs. LY
+21.5% vs. LY
-32.2% vs. LY
18
FOODS – FINANCIAL HIGHLIGHTS
Margin
Growth
SAR Mn
YoY Sales
YTD Sales +1%
+1% +1%
2,925
2,954
Q1 2016
Q1 2017
3,103
3,146
Q2 2016
Q2 2017
YoY Gross Profit
6,028
6,100
YTD 2016
YTD 2017
YTD Gross Profit
-8%
-5%
-7% 447
Q1 2016 15.3%
425
523
481
Q1 2017
Q2 2016
Q2 2017
14.4%
16.9%
15.3%
Note: the figures presented in the charts are rounded
970
906
YTD 2016
YTD 2017
16.1%
14.9% 19
FOODS – FINANCIAL HIGHLIGHTS
Margin
Growth
SAR Mn
YoY EBITDA
YTD EBITDA -11%
-11%
600
-12%
261
229
Q1 2016
Q1 2017
8.9%
339
303
Q2 2016
Q2 2017
10.9%
7.8%
9.6%
YoY Net Profit
532
YTD 2016
YTD 2017
10.0%
8.7%
YTD Net Profit +34%
+5%
+21% 106
Q1 2016 3.6%
111
Q1 2017 3.7%
Note: the figures presented in the charts are rounded
144
Q2 2016 4.6%
192
Q2 2017 6.1%
250
303
YTD 2016
YTD 2017
4.1%
5.0% 20
FOODS – OIL SEGMENT ANALYSIS SAR Mn
Volume (MT 000)
Revenues +0.2%
-0.2%
817 5%
4%
815 5%
7%
8%
9%
9%
29%
16%
29%
4,107 4%
31%
14%
28%
6%
4% 4%
11%
4,115 4%
4%
7% 10%
Morocco YoY +3% Sudan YoY +1%
Morocco YoY +10%
30%
33%
Algeria YoY +14%
Algeria YoY +20%
Turkey YoY +5%
Turkey YoY -9%
17%
12%
Iran YoY +4%
Iran YoY +11%
Egypt YoY -16%
Egypt YoY -27%
29%
30%
KSA YoY -1%
YTD 2016
YTD 2017
Note: the figures presented in the charts are rounded
Sudan YoY 0%
KSA YoY +4%
YTD 2016
YTD 2017 21
FOODS – SUGAR SEGMENT ANALYSIS SAR Mn
Volume (MT ‘000) (1)
Revenues (1) KSA YoY -2%
KSA YoY +16%
Egypt YoY -38% -7.7%
1,779
821 758
85% 90%
15% YTD 2016
Egypt YoY -24%
+10.1%
10% YTD 2017
1,616
85%
89%
15%
11%
YTD 2016
YTD 2017
(1) Sugar volumes and revenues include only the contribution from sugar operations (USC and ASC). Note: USCE has been deconsolidated; YTD June 2017 USCE volume is 352 K MT (+16% YoY) and revenue is SAR 721 Mn (+36% YoY).
22
FINANCIAL SUMMARY
FINANCIALS – YTD JUNE 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
3,492 623 4,115
611 67 678
288 20 308
224 9 232
321 26 347
3,546 561 4,107
720 77 797
409 28 437
286 18 304
451 35 487
Sugar
1,785
200
136
65
169
1,619
99
25
(81)
69
Pasta
200
27
10
5
17
302
73
38
26
45
6,100
906
454
303
532
6,027
969
500
249
600
5,987 123 6,110
1,101 14 1,115
(417) (10) (427)
(447) 57 (390)
(183) (7) (190)
6,978 167 7,145
1,445 31 1,477
(83) (2) (85)
(120) (5) (125)
137 1 138
103 (33) 366 (32)
96 (33) 366 (109)
134 (33) 366 (38)
108 16 348 (89)
103 16 348 (217)
155 16 348 (62)
431
234
771
797
373
Total Foods Retail KSA Overseas Total Retail Herfy Real Estate Al Marai-Savola Share HQ/Elimination/Impairments Total
547 0 0 (213) 12,544
162 0 0 (3) 2,180
561 0 0 (171) 13,563
162 0 0 (2) 2,606
Adjustments Gain on Sale of USCE Share of Associates Liability Gain on Sale of Hyper Panda UAE Share of impairment Loss from an Associate
(25) (62) 34
-
Adjusted Profit
181
393
1,195
20
* 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 FX fees and USD sourcing shown earlier in slide 9.
24
