Update on Five Year Plan - Almarai
Almarai Company 2013 Q2 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 Q2 Earnings Presentation
2
Business Highlights
Highlights – 1st Half 2013 Q2 2013 Group Revenue Net Income
1st Half 2013
SAR ' M
Growth over last year
SAR ' M
Growth over last year
2,873.9
13.9%
5,284.9
15.8%
398.2
4.9%
653.3
5.1%
Revenue of 5.3B SAR, growth of 15.8% driven by poultry 70%, juice 24%, Bakery 15% and inclusion of IDJ results.
Revenue growth of 11.5% in KSA, 9.5% in all other GCC states and 105.5% in rest of the world including Jordan and Egypt, driven by first time consolidation of IDJ in Q2, 2012.
EBIT of 785 million SAR grew by 7.9% over YTD Q2, 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 1.0 B SAR is 2% behind last year. Whilst operating cashflow prior to working capital were 1.4B SAR, working capital expansion to prepare for the holy month of Ramadan accounted for nearly 400M SAR of additional cash requirement.
Capital expenditure for the first half was 1.5B SAR, 13% lower than first half last year. Our capex spend profile remain in line with our earlier forecast of 3.1B capex spend for the full year 2013.
Staff strength stood at close to 31K at end of Q2, 2013. Growth in headcount accounted for part of the increase in 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.
Other major highlight includes roll out of second line of poultry plant and managing business growth in Egypt amid difficult trading conditions.
Almarai Company
2013 Q2 Earnings Presentation
4
Strong pipeline of innovation continues in 2013
Almarai Company
2013 Q2 Earnings Presentation
5
Sales Highlights
Sales Growth – Geography mix 1st half 2013
1st Half 2012
All Others 9.1%
All O thers 5 .1% G CC 2 6.9%
G CC 2 5.4% K SA 68.0%
3.46
KSA
3.10
1.34 1.23
GCC All Others Almarai Group
Almarai Company
K SA 65.5%
11.5%
9.5%
0.48 0.23
1st half 2013 Rev in B SAR
105.5%
1st half 2012 Rev in B SAR
5.28
15.8% %
4.56
2013 Q2 Earnings Presentation
Growth
7
Sales Analysis by Product & Region
Sales by Country - 1st half 2013
Sales by Product 1st Ha lf
Sa les by Pr oduct G r 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
2 013
2 012
% chang e
2,100.0 520.2 672.7 807.3 710.4 364.8 98.4 11.2
1,836.4 476.9 542.8 782.8 618.5 214.5 64.3 28.3
5 ,2 84.9
4,5 64.5
14.4% 9.1% 23.9% 3.1% 14.9% 70.1% 53.0% (60.5%) 15 .8%
Qatar 4.2%
Bahrain 2.1%
UAE 9.1%
Oman 5.1%
Egypt 4.3%
Jordan 2.4% Export / Others 2.4%
Kuwait 4.9%
KSA 65.5%
Participation vs Growth – 1st Half 2013 Participation 1st Half 2013
Growth 1st Half 2013 v 1st Half 2012)
P ou ltry
6.9%
70 .1%
Lon g-Life D airy
9.8%
9.1%
F ruit Juice
12.7%
23 .9%
Bak ery
13 .4%
14.9%
C h eese & Butter
15.3 %
3 .1%
F resh Dairy
3 9.7% 0% 40%
Almarai Company
10% 30%
20% 20%
10%30%
14.4%
0% 40%
10%
50% 20%
2013 Q2 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 100% 90% 80%
1.3%
2.6%
4.7%
4.7%
10.5%
10.4%
0.7%
0.5%
4.8%
6.1%
6.7%
9.4%
10.9%
10.7%
2.0%
3.4%
Other Sales
7.1% 9.1%
Poultry 10.2%
13.3%
13.8%
12.5%
11.9%
13.4%
70% 14.4%
12.9%
60% 50%
19.4%
15.4%
11.3%
15.3%
Long-Life Dairy 14.0%
14.1%
12.9%
Fruit Juice 15.5%
16.4%
14.4%
40%
Bakery
30% 20%
39.6%
40.7%
43.4%
40.3%
39.6%
39.9%
10%
Cheese & Butter
Fresh Dairy
0% Q1 2012
Almarai Company
Q2 2012
Q3 2012
Q4 2012
Q1 2013
2013 Q2 Earnings Presentation
Q2 2013
9
Product mix in different geographical regions highlights revenues growth potential…. KSA
Total Cheese & Butter 15%
Cheese & Butter 16%
Bakery 13%
Fruit Juice 13%
Arable and Horti Poultry 2% 7%
Long-Life Dairy 10%
Bakery 17%
Fruit Juice 11% Long-Life Dairy 7%
Fresh Dairy 40%
Poultry 10%
Fresh Dairy 38%
Other Sales 0%
Other Sales 0%
All Other Countries
Gulf Fruit Juice 14% Long-Life Dairy 12%
Cheese & Butter 15% Bakery 8%
Fresh Dairy 49%
Almarai Company
Arable and Horti 1%
Poultry 2%
Fruit Juice 26%
Long-Life Dairy 25%
Other Sales 0%
Cheese & Butter 13%
Bakery 1% Arable and Horti 11%
Fresh Dairy 24% Other Sales 0%
10
..which can be achieved via expanding presence of Almarai Operations throughout the region Tabarjal
Aflaj (Laila)
` Junoob
New Depots in 2013 Distribution centre
Manufacturi ng facility
Almarai Company
2013 Q2 Earnings Presentation
11
Statement of Income
Statement of Income SAR million
2013
2nd Quarter 2012 Change
2013
1st Half 2012
Change
Net Sales Cost of sales
2,873.9 (1,839.4)
2,524.1 (1,602.4)
13.9% 14.8%
5,284.9 (3,422.6)
4,564.5 (2,935.5)
15.8% 16.6%
Gross Profit Selling and Distribution Expenses General and Administration Expenses
1,034.5 (457.4) (93.1)
921.7 (403.4) (83.7)
12.2% 13.4% 11.2%
1,862.3 (907.5) (170.0)
1,629.0 (748.1) (153.9)
14.3% 21.3% 10.5%
484.0 (15.8) (58.1)
434.6 (5.4) (42.3)
11.4% 193.2% 37.5%
784.8 (21.8) (96.9)
727.0 (17.7) (69.7)
7.9% 23.1% 39.1%
410.0
386.9
6.0%
666.1
639.7
4.1%
EBIT Share of Results of Associates Bank Charges Income from Main and Continuing Operations Zakat and Income Tax Income before Non Controlling Interest Non Controlling Interest Net Income Earnings Per Share
Net Income % YOY Change in Net Income
Almarai Company
(12.1)
(13.1)
398.0
373.8
0.3
5.7
398.2
379.5
1.00 13.9% (1.2%)
(7.7%)
(21.0)
(6.2%)
646.5
618.7
4.5%
6.9
2.9
134.0%
653.3
621.6
5.1%
0.96
1.64
1.56
15.0%
12.4%
13.6%
(2.3%)
6.5%
(19.7)
n.a 4.9%
(1.3%)
2013 Q2 Earnings Presentation
(1.9%)
• GCC Margin over material has continued to show higher growth than revenue in H1 2013. However, higher depreciation, IDJ consolidation effect in Q1 2013 and higher headcount to manage poultry roll out resulted in lower gross profit growth compared to revenue growth. • Similarly, growth in overheads is driven by head count increase and IDJ consolidation in Q1, resulting in lower net profit growth relative to revenue growth
13
Segment Reporting SAR Mi l l i on 1st Hal f 2013 Sales Third Party Sales Depreciation Income / (loss) before Non Controlling Interest Total Assets Total Liabilities Return on Sales Growth versus 1st Half 2013 - Third Party Sales - Income / (loss) before Non Controlling Interest Q2 2013 Sales Third Party Sales Depreciation Income / (loss) before Non Controlling Interest Return on Sales Growth versus Q2 2013 - Third Party Sales - Income / (loss) before Non Controlling Interest
Almarai Company
Dai ry & Jui ce
Bakery
Poul try
Arabl e and Horti cul ture
Other Acti vi ti es
Al marai Consol i dated
4,123.4 4,110.4 (463.7)
710.4 710.4 (63.4)
364.8 364.8 (60.9)
200.7 98.4 (35.8)
0.9 0.9 (7.6)
5,400.1 5,284.9 (631.5)
663.0
110.4
(137.1)
45.7
(35.5)
646.5
11,735.7 (5,153.3)
2,055.9 (1,722.1)
4,431.3 (4,549.4)
1,829.0 (247.8)
1,036.5 (1,140.8)
21,088.4 (12,813.4)
16.1%
15.5%
(37.6%)
46.4%
n.a.
12.2%
12.1%
14.9%
70.1%
53.0%
n.a.
15.8%
12.5%
35.4%
202.0%
263.8%
81.7%
4.5%
2,219.8 2,209.3 (323.6)
369.5 369.5 (31.8)
202.7 202.7 (45.0)
176.2 91.5 (18.2)
0.9 0.9 (4.0)
2,969.1 2,873.9 (422.5)
412.6
76.1
(91.1)
18.9
(18.6)
398.0
18.7%
20.6%
(44.9%)
20.7%
n.a.
13.8%
8.7%
13.7%
70.3%
88.4%
n.a.
13.9%
29.5%
64.3%
578.0%
(41.9%)
78.8%
6.5%
2013 Q2 Earnings Presentation
14
Trend charts
Robust revenue growth with challenging – but anticipated – EBITDA & EBIT trend Revenue, EBITDA and EBIT Evolution 25.7%
26.0%
SAR in Million
20.7%
26.7%
27.2% 25.6%
25.3%
21.0%
24.2% 21.8%
22.3% 21.1%
19.4%
19.1%
9,883 16.9%
CAGR 2006 – 2013: 21.2% (w/o impact of acquisitions 18.4%)
10,603 16.3%
7,951
Revenues 6,931
EBIT % EBITDA %
5,869 5,030 3,770
2,757 2006
Almarai Company
2007
2008
2009
2010
2013 Q2 Earnings Presentation
2011
2012
L ast 12 months
16
50
100
Almarai Company 2013 Q2 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
398.2
379.5
349.3
343.1
287.1
200
122.6
255.1
235.2
165.3
121.8
150
242.1
300
235.2
234.1
197.4
162.2
122.8
90.6
SAR Million
Quarterly Performance – Net Income 2013 versus 2012
4 50 Q2 = 4 .9%
4 00
350
Q1 = 5.4%
0
17
Cash Flows
Cash Flow Statement (1st Half 2013) 2, 500
6 92
S AR M i l l i on From Operating Activities Used in Investing Activities Cashflow Av'ble for Dist'n From Financing Activities Increase/(Decrease) in Cash Currency Translation Impact on Cash and Cash Equivalents Cash at beginning of period C ash at en d of peri od
Almarai Company
2, 000
SAR Million
Higher revenue growth resulted in positive operating cash flow, which was partially subdued by working capital expansion,….
1,706
1,019
1, 500
1, 000
500
1
4 17
4 21
0
C ash at beginning of period
F rom O perating Activities
1st H al f 20 13 20 12 1,019 1,040 (1,706) (1,755) (687) (715) 692 730 5 15 (1)
0
417 421
272 287
2013 Q2 Earnings Presentation
F rom Financing Activities
Used in In vesting Act ivities
C u rrency Impact
C ash at end of period
….but additional capex investment, especially for poultry (0.4B) resulted in negative free cash flow of 0.7B
19
Cash Flow Bridge – rolling 12 months
1,186
(2,737)
2,364 Sukuk / Loan Payments / Others
(496) (182)
Capex
287
Dividend Ca sh at 30 Jun 2012
Almarai Company
Operating Cash Flow
+ SAR 134 m
2013 Q2 Earnings Presentation
421
Others Ca sh at 30 Jun 2013
20
Balance Sheet
Balance Sheet S AR M i l l i on Net Operating Working Capital Biological Assets Property, Plant and Equipment Net Operating Assets Intangible Assets - Goodwill Investment & Financial Assets, Deferred Charges and Derivatives
3 0 /0 6/13 1,331 945 14,281 16,558 1,335
3 0 /0 6/12 1,182 870 12,426 14,478 1,383
413
353
18,306
16,213
Net Debt End of Service Benefits Deferred Tax (Net) Total Equity Net Capital Employed
9,612 310 109 8,275 18,306
8,244 266 131 7,573 16,213
Net Debt to Equity Ratio
116.2%
108.9%
Almarai Company
2013 Q2 Earnings Presentation
22
Net Debt 12,0 00
3 .6x 3 .2x
350%
10 ,000
in million SAR
2.8x 8,0 00
2.3 x
2.3 x
2.4x
300%
2.3 x
250%
2.0 x 6,0 00
200%
4,0 00 69%
81%
96%
73 %
76%
10 0 %
10 2%
116%
50%
1,3 15
2,463
3 ,499
3 ,951
4,679
6,749
8,3 05
9,612
20 0 6
20 0 7
20 0 8
20 0 9
20 10
20 11
20 12
Last 12 mon ths
N e t Debt
Almarai Company
150% 100%
2,0 00 0
400%
N e t Debt / Equity Ratio
2013 Q2 Earnings Presentation
0%
N e t Debt / EBITDA
23
Debt Profile highlights balanced approach for funding…. 3 .5
Debt Maturity by Age and Type
3 .0
S AR Billion
2.5
Isl amic Bonds Govt / Semi Govt Inst.
2.0
2.3 , 23%
Ban ks
1.5 1.8, 18%
5.9, 59%
1.0
0 .5 0 .0 5y r
24
Capital Expenditure
Capex spend in line with Guidance…
Capex spend of 1.5B SAR, which is in line for with our earlier forecast of 3.1B SAR for the year 2013.
Poultry capex spend for the first half amounted to more than 0.4B SAR. The key highlight for the first half was the commercial production of the first line in Q1 and second line in Q2 as previously communicated.
Each of the three main functions of Sales, Manufacturing and Farming consumed capex of ~0.2B SAR.
Replacement and other capex including IDJ, accounted for another 0.2B SAR.
Almarai Company
2013 Q2 Earnings Presentation
26
Key Share Data Key S t at i st i cs for Al marai (26 Ju n e 20 13 )
3 0 0%
250 %
20 0 %
C u rren t P /E R at i o (t t m) Est i mat ed P /E(12/20 13 ) Earn i n gs P er S h are (S AR ) (t t m) M ark et C ap (M S AR ) S h ares O u t st an di n g (M ) 3 0 D ay Average V ol u me D i vi den d In di cat ed Gross Yi el d C ash D i vi den d (S AR ) Last D i vi den d 5 Year D i vi den d Growt h
19.1 17.8 3 .6 27,798 40 0 .0 596,988 1.8% 1.3 4/3 /20 13 11.7%
150 %
10 0 %
50 %
0%
Almarai Almarai Company
TASI
2013 Q2 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 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
2013 Q2 Earnings Presentation
2
Business Highlights
Highlights – 1st Half 2013 Q2 2013 Group Revenue Net Income
1st Half 2013
SAR ' M
Growth over last year
SAR ' M
Growth over last year
2,873.9
13.9%
5,284.9
15.8%
398.2
4.9%
653.3
5.1%
Revenue of 5.3B SAR, growth of 15.8% driven by poultry 70%, juice 24%, Bakery 15% and inclusion of IDJ results.
Revenue growth of 11.5% in KSA, 9.5% in all other GCC states and 105.5% in rest of the world including Jordan and Egypt, driven by first time consolidation of IDJ in Q2, 2012.
EBIT of 785 million SAR grew by 7.9% over YTD Q2, 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 1.0 B SAR is 2% behind last year. Whilst operating cashflow prior to working capital were 1.4B SAR, working capital expansion to prepare for the holy month of Ramadan accounted for nearly 400M SAR of additional cash requirement.
Capital expenditure for the first half was 1.5B SAR, 13% lower than first half last year. Our capex spend profile remain in line with our earlier forecast of 3.1B capex spend for the full year 2013.
Staff strength stood at close to 31K at end of Q2, 2013. Growth in headcount accounted for part of the increase in 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.
Other major highlight includes roll out of second line of poultry plant and managing business growth in Egypt amid difficult trading conditions.
Almarai Company
2013 Q2 Earnings Presentation
4
Strong pipeline of innovation continues in 2013
Almarai Company
2013 Q2 Earnings Presentation
5
Sales Highlights
Sales Growth – Geography mix 1st half 2013
1st Half 2012
All Others 9.1%
All O thers 5 .1% G CC 2 6.9%
G CC 2 5.4% K SA 68.0%
3.46
KSA
3.10
1.34 1.23
GCC All Others Almarai Group
Almarai Company
K SA 65.5%
11.5%
9.5%
0.48 0.23
1st half 2013 Rev in B SAR
105.5%
1st half 2012 Rev in B SAR
5.28
15.8% %
4.56
2013 Q2 Earnings Presentation
Growth
7
Sales Analysis by Product & Region
Sales by Country - 1st half 2013
Sales by Product 1st Ha lf
Sa les by Pr oduct G r 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
2 013
2 012
% chang e
2,100.0 520.2 672.7 807.3 710.4 364.8 98.4 11.2
1,836.4 476.9 542.8 782.8 618.5 214.5 64.3 28.3
5 ,2 84.9
4,5 64.5
14.4% 9.1% 23.9% 3.1% 14.9% 70.1% 53.0% (60.5%) 15 .8%
Qatar 4.2%
Bahrain 2.1%
UAE 9.1%
Oman 5.1%
Egypt 4.3%
Jordan 2.4% Export / Others 2.4%
Kuwait 4.9%
KSA 65.5%
Participation vs Growth – 1st Half 2013 Participation 1st Half 2013
Growth 1st Half 2013 v 1st Half 2012)
P ou ltry
6.9%
70 .1%
Lon g-Life D airy
9.8%
9.1%
F ruit Juice
12.7%
23 .9%
Bak ery
13 .4%
14.9%
C h eese & Butter
15.3 %
3 .1%
F resh Dairy
3 9.7% 0% 40%
Almarai Company
10% 30%
20% 20%
10%30%
14.4%
0% 40%
10%
50% 20%
2013 Q2 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 100% 90% 80%
1.3%
2.6%
4.7%
4.7%
10.5%
10.4%
0.7%
0.5%
4.8%
6.1%
6.7%
9.4%
10.9%
10.7%
2.0%
3.4%
Other Sales
7.1% 9.1%
Poultry 10.2%
13.3%
13.8%
12.5%
11.9%
13.4%
70% 14.4%
12.9%
60% 50%
19.4%
15.4%
11.3%
15.3%
Long-Life Dairy 14.0%
14.1%
12.9%
Fruit Juice 15.5%
16.4%
14.4%
40%
Bakery
30% 20%
39.6%
40.7%
43.4%
40.3%
39.6%
39.9%
10%
Cheese & Butter
Fresh Dairy
0% Q1 2012
Almarai Company
Q2 2012
Q3 2012
Q4 2012
Q1 2013
2013 Q2 Earnings Presentation
Q2 2013
9
Product mix in different geographical regions highlights revenues growth potential…. KSA
Total Cheese & Butter 15%
Cheese & Butter 16%
Bakery 13%
Fruit Juice 13%
Arable and Horti Poultry 2% 7%
Long-Life Dairy 10%
Bakery 17%
Fruit Juice 11% Long-Life Dairy 7%
Fresh Dairy 40%
Poultry 10%
Fresh Dairy 38%
Other Sales 0%
Other Sales 0%
All Other Countries
Gulf Fruit Juice 14% Long-Life Dairy 12%
Cheese & Butter 15% Bakery 8%
Fresh Dairy 49%
Almarai Company
Arable and Horti 1%
Poultry 2%
Fruit Juice 26%
Long-Life Dairy 25%
Other Sales 0%
Cheese & Butter 13%
Bakery 1% Arable and Horti 11%
Fresh Dairy 24% Other Sales 0%
10
..which can be achieved via expanding presence of Almarai Operations throughout the region Tabarjal
Aflaj (Laila)
` Junoob
New Depots in 2013 Distribution centre
Manufacturi ng facility
Almarai Company
2013 Q2 Earnings Presentation
11
Statement of Income
Statement of Income SAR million
2013
2nd Quarter 2012 Change
2013
1st Half 2012
Change
Net Sales Cost of sales
2,873.9 (1,839.4)
2,524.1 (1,602.4)
13.9% 14.8%
5,284.9 (3,422.6)
4,564.5 (2,935.5)
15.8% 16.6%
Gross Profit Selling and Distribution Expenses General and Administration Expenses
1,034.5 (457.4) (93.1)
921.7 (403.4) (83.7)
12.2% 13.4% 11.2%
1,862.3 (907.5) (170.0)
1,629.0 (748.1) (153.9)
14.3% 21.3% 10.5%
484.0 (15.8) (58.1)
434.6 (5.4) (42.3)
11.4% 193.2% 37.5%
784.8 (21.8) (96.9)
727.0 (17.7) (69.7)
7.9% 23.1% 39.1%
410.0
386.9
6.0%
666.1
639.7
4.1%
EBIT Share of Results of Associates Bank Charges Income from Main and Continuing Operations Zakat and Income Tax Income before Non Controlling Interest Non Controlling Interest Net Income Earnings Per Share
Net Income % YOY Change in Net Income
Almarai Company
(12.1)
(13.1)
398.0
373.8
0.3
5.7
398.2
379.5
1.00 13.9% (1.2%)
(7.7%)
(21.0)
(6.2%)
646.5
618.7
4.5%
6.9
2.9
134.0%
653.3
621.6
5.1%
0.96
1.64
1.56
15.0%
12.4%
13.6%
(2.3%)
6.5%
(19.7)
n.a 4.9%
(1.3%)
2013 Q2 Earnings Presentation
(1.9%)
• GCC Margin over material has continued to show higher growth than revenue in H1 2013. However, higher depreciation, IDJ consolidation effect in Q1 2013 and higher headcount to manage poultry roll out resulted in lower gross profit growth compared to revenue growth. • Similarly, growth in overheads is driven by head count increase and IDJ consolidation in Q1, resulting in lower net profit growth relative to revenue growth
13
Segment Reporting SAR Mi l l i on 1st Hal f 2013 Sales Third Party Sales Depreciation Income / (loss) before Non Controlling Interest Total Assets Total Liabilities Return on Sales Growth versus 1st Half 2013 - Third Party Sales - Income / (loss) before Non Controlling Interest Q2 2013 Sales Third Party Sales Depreciation Income / (loss) before Non Controlling Interest Return on Sales Growth versus Q2 2013 - Third Party Sales - Income / (loss) before Non Controlling Interest
Almarai Company
Dai ry & Jui ce
Bakery
Poul try
Arabl e and Horti cul ture
Other Acti vi ti es
Al marai Consol i dated
4,123.4 4,110.4 (463.7)
710.4 710.4 (63.4)
364.8 364.8 (60.9)
200.7 98.4 (35.8)
0.9 0.9 (7.6)
5,400.1 5,284.9 (631.5)
663.0
110.4
(137.1)
45.7
(35.5)
646.5
11,735.7 (5,153.3)
2,055.9 (1,722.1)
4,431.3 (4,549.4)
1,829.0 (247.8)
1,036.5 (1,140.8)
21,088.4 (12,813.4)
16.1%
15.5%
(37.6%)
46.4%
n.a.
12.2%
12.1%
14.9%
70.1%
53.0%
n.a.
15.8%
12.5%
35.4%
202.0%
263.8%
81.7%
4.5%
2,219.8 2,209.3 (323.6)
369.5 369.5 (31.8)
202.7 202.7 (45.0)
176.2 91.5 (18.2)
0.9 0.9 (4.0)
2,969.1 2,873.9 (422.5)
412.6
76.1
(91.1)
18.9
(18.6)
398.0
18.7%
20.6%
(44.9%)
20.7%
n.a.
13.8%
8.7%
13.7%
70.3%
88.4%
n.a.
13.9%
29.5%
64.3%
578.0%
(41.9%)
78.8%
6.5%
2013 Q2 Earnings Presentation
14
Trend charts
Robust revenue growth with challenging – but anticipated – EBITDA & EBIT trend Revenue, EBITDA and EBIT Evolution 25.7%
26.0%
SAR in Million
20.7%
26.7%
27.2% 25.6%
25.3%
21.0%
24.2% 21.8%
22.3% 21.1%
19.4%
19.1%
9,883 16.9%
CAGR 2006 – 2013: 21.2% (w/o impact of acquisitions 18.4%)
10,603 16.3%
7,951
Revenues 6,931
EBIT % EBITDA %
5,869 5,030 3,770
2,757 2006
Almarai Company
2007
2008
2009
2010
2013 Q2 Earnings Presentation
2011
2012
L ast 12 months
16
50
100
Almarai Company 2013 Q2 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
398.2
379.5
349.3
343.1
287.1
200
122.6
255.1
235.2
165.3
121.8
150
242.1
300
235.2
234.1
197.4
162.2
122.8
90.6
SAR Million
Quarterly Performance – Net Income 2013 versus 2012
4 50 Q2 = 4 .9%
4 00
350
Q1 = 5.4%
0
17
Cash Flows
Cash Flow Statement (1st Half 2013) 2, 500
6 92
S AR M i l l i on From Operating Activities Used in Investing Activities Cashflow Av'ble for Dist'n From Financing Activities Increase/(Decrease) in Cash Currency Translation Impact on Cash and Cash Equivalents Cash at beginning of period C ash at en d of peri od
Almarai Company
2, 000
SAR Million
Higher revenue growth resulted in positive operating cash flow, which was partially subdued by working capital expansion,….
1,706
1,019
1, 500
1, 000
500
1
4 17
4 21
0
C ash at beginning of period
F rom O perating Activities
1st H al f 20 13 20 12 1,019 1,040 (1,706) (1,755) (687) (715) 692 730 5 15 (1)
0
417 421
272 287
2013 Q2 Earnings Presentation
F rom Financing Activities
Used in In vesting Act ivities
C u rrency Impact
C ash at end of period
….but additional capex investment, especially for poultry (0.4B) resulted in negative free cash flow of 0.7B
19
Cash Flow Bridge – rolling 12 months
1,186
(2,737)
2,364 Sukuk / Loan Payments / Others
(496) (182)
Capex
287
Dividend Ca sh at 30 Jun 2012
Almarai Company
Operating Cash Flow
+ SAR 134 m
2013 Q2 Earnings Presentation
421
Others Ca sh at 30 Jun 2013
20
Balance Sheet
Balance Sheet S AR M i l l i on Net Operating Working Capital Biological Assets Property, Plant and Equipment Net Operating Assets Intangible Assets - Goodwill Investment & Financial Assets, Deferred Charges and Derivatives
3 0 /0 6/13 1,331 945 14,281 16,558 1,335
3 0 /0 6/12 1,182 870 12,426 14,478 1,383
413
353
18,306
16,213
Net Debt End of Service Benefits Deferred Tax (Net) Total Equity Net Capital Employed
9,612 310 109 8,275 18,306
8,244 266 131 7,573 16,213
Net Debt to Equity Ratio
116.2%
108.9%
Almarai Company
2013 Q2 Earnings Presentation
22
Net Debt 12,0 00
3 .6x 3 .2x
350%
10 ,000
in million SAR
2.8x 8,0 00
2.3 x
2.3 x
2.4x
300%
2.3 x
250%
2.0 x 6,0 00
200%
4,0 00 69%
81%
96%
73 %
76%
10 0 %
10 2%
116%
50%
1,3 15
2,463
3 ,499
3 ,951
4,679
6,749
8,3 05
9,612
20 0 6
20 0 7
20 0 8
20 0 9
20 10
20 11
20 12
Last 12 mon ths
N e t Debt
Almarai Company
150% 100%
2,0 00 0
400%
N e t Debt / Equity Ratio
2013 Q2 Earnings Presentation
0%
N e t Debt / EBITDA
23
Debt Profile highlights balanced approach for funding…. 3 .5
Debt Maturity by Age and Type
3 .0
S AR Billion
2.5
Isl amic Bonds Govt / Semi Govt Inst.
2.0
2.3 , 23%
Ban ks
1.5 1.8, 18%
5.9, 59%
1.0
0 .5 0 .0 5y r
24
Capital Expenditure
Capex spend in line with Guidance…
Capex spend of 1.5B SAR, which is in line for with our earlier forecast of 3.1B SAR for the year 2013.
Poultry capex spend for the first half amounted to more than 0.4B SAR. The key highlight for the first half was the commercial production of the first line in Q1 and second line in Q2 as previously communicated.
Each of the three main functions of Sales, Manufacturing and Farming consumed capex of ~0.2B SAR.
Replacement and other capex including IDJ, accounted for another 0.2B SAR.
Almarai Company
2013 Q2 Earnings Presentation
26
Key Share Data Key S t at i st i cs for Al marai (26 Ju n e 20 13 )
3 0 0%
250 %
20 0 %
C u rren t P /E R at i o (t t m) Est i mat ed P /E(12/20 13 ) Earn i n gs P er S h are (S AR ) (t t m) M ark et C ap (M S AR ) S h ares O u t st an di n g (M ) 3 0 D ay Average V ol u me D i vi den d In di cat ed Gross Yi el d C ash D i vi den d (S AR ) Last D i vi den d 5 Year D i vi den d Growt h
19.1 17.8 3 .6 27,798 40 0 .0 596,988 1.8% 1.3 4/3 /20 13 11.7%
150 %
10 0 %
50 %
0%
Almarai Almarai Company
TASI
2013 Q2 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 11 470 00 05 ext 1280 [email protected]
